Lotus Holding: The investment target Shanghai Jieyue Xingchen is in a large amount of losses, with the server leasing business expected to report losses in 2025.

Lotus Holdings announced that the closing price of the company's stock has deviated by a total of 20% for three consecutive trading days, which constitutes abnormal fluctuations in stock trading. Through self-inspection, it was found that the recent investment target, Shanghai Jieyue Xingchen Intelligent Technology Co., Ltd., is in a state of large losses; the company's server leasing business revenue for the year 2025 is 1.22 billion yuan, accounting for only 3.53% of total operating income, with a net loss of -28.5786 million yuan. Additionally, there is a situation of large contracts being terminated in the short term, and the business development is not as expected. The above-mentioned investment in the target company accounts for a small proportion of the company's shares and does not have a significant impact on the overall business of the company.