About COCOON HOLDINGS Company

The Group recorded a turnover of HK$3,477,510 for the year ended December 31, 2014, compared with HK$7,637,209 last year, a decrease of 54%. The decrease in turnover was due to a decrease in interest income received this year and unlisted investments did not generate dividend income. The Group's listed securities recorded realised income of HK$836,245 (HK$3,094,469 in 2013). Affected by the poor performance of a number of publicly traded securities held by the Group during the year, the Group recorded a total loss of HK$20,272,531 along with turnover, other income and other income and losses, compared to a loss last year. The Group recorded a loss of HK$36,569,431 before deducting employee welfare expenses, depreciation and other operating expenses of HK$16,296,900 (2013: HK$17,854,334), compared to HK$38,961,850 last year. Losses attributable to the owners of the Company were HK$36,569,431 compared to HK$38,961,850 in 2013. Prospects and future plans 2014 was a very volatile year for investors across all asset classes. Dragged down by the US Federal Reserve's gradual scaling down of its quantitative easing program, affected by the sharp rise and fall of emerging market currencies, and under pressure from geopolitical tension in Eastern Europe, the outlook for global markets appears to be poor. However, the price of global stocks soon rebounded in the second half of the year following a sharp drop in oil prices. The US economy has recovered steadily, with no signs of inflation, and US stock prices have broken records time and time again. The valuation of US stocks is high. Whether the upward trend will continue in 2015, and whether the US interest rate hike will trigger the return of capital from emerging markets to the US. We have no crystal ball that can provide an answer, but we can objectively predict. Since Federal Reserve Chairman Yellen is already preparing to raise interest rates around the middle of the year, she will end the period of maintaining close to zero interest rates for almost seven years. This change. The changes will at least be disturbing. After decades of average growth of 10%, China's outlook for 2015 is not necessarily as optimistic as before. Most commentators say the growth rate will fall to its new economic growth target of 7%. Rebalancing an economy of 1.4 billion people to rely on more local consumption is both difficult and challenging. However, we see this challenge as a positive development, as reforms in state-owned enterprises may allow some companies to be re-rated and open the door to opportunities in unlisted private capital markets. The government is committed to deregulation and is already promoting private capital participation in designated state-owned enterprises. The Board will keep a close eye on these macros. Watch trends and seek investment opportunities in China.