Is the computing power business being rolled out as expected? Challenges remain behind Lotus Holdings' performance growth

On the evening of April 7th, Lotus Holdings released its 2025 performance quick report and its first quarter 2026 earnings forecast.
The 2025 performance quick report shows that Lotus Holdings achieved revenue of 3.45B yuan last year, a year-on-year increase of 30.45%; net profit attributable to the parent was 309 million yuan, a year-on-year increase of 52.59%.
The first quarter is expected to realize net profit attributable to the parent of 135 million to 155 million yuan, a year-on-year increase of 33.66% to 53.46%.

Dual-wheel drive drives performance growth but challenges remain

Rapid expansion of computing power business brings funding pressure and regulatory attention

For the 2025 performance growth, Lotus Holdings stated that it mainly benefits from the “dual-wheel drive” development pattern of consumer + technology that has already taken shape.
Specifically, in addition to its main business of amino acid flavorings and a series of new products driving performance growth, Lotus Holdings has also achieved new development results in the computing power technology sector, which has become a second growth curve for operational development.

Among them, regarding the “series of new products,” according to Lotus Holdings’ explanation on the investor interaction platform in mid-2022, it mainly refers to its launch of multiple beverage products, including natural soda water series, natural mineral water series, natural spring water series, plant beverage series, soda water drinks series, and sports drinks series.

In terms of the computing power technology sector, it is understood that since entering the intelligent computing power business in 2023, Lotus Holdings has taken Lotus Zixing as the main entity, promoting the construction of intelligent computing centers and deployment of computing resources, and has successively launched products such as Lotus Zixing Cloud Platform, Lotus Intelligent Body, and Lotus Intelligent Body DeepSeek all-in-one machine, dedicated to providing industry-specific integrated solutions.

Although Lotus Holdings has not yet disclosed its full-year revenue and profit figures for its computing power business in 2025, based on past data and recent performance, this business has shown significant growth.
In 2023, its computing power service revenue was 764k yuan, which increased to 80.64 million yuan in 2024. By the third quarter of 2025, this business revenue had reached 97.67 million yuan, surpassing the total for 2024.
Based on this, it is estimated that the computing power business revenue in 2025 may account for more than 3% of the company’s total revenue.

However, it is worth noting that although the revenue scale of Lotus Holdings’ computing power sector continues to rise, the latest progress disclosed at the end of March shows that the company still faces increasing funding pressure.
From 2023 to 2025, the company has raised approximately 650 million yuan externally for its computing power business, with a loan balance of 343 million yuan as of December 31, 2025.
Among these, the remaining loan balance from Chouzhou Bank is 212 million yuan, and the total loan balance from institutions such as Great Wall Guoxing Leasing exceeds 100 million yuan.

In this context, Lotus Holdings also received a regulatory work letter from the Shanghai Stock Exchange titled “Regulatory Work Letter Regarding Matters Related to Lotus Holdings’ Computing Power Business” (hereinafter referred to as “the Work Letter”).

Multiple Terminations in Top Ten Contracts Indicate Underperformance

Leading to the Underperformance of the Computing Power Business

In Lotus Holdings’ reply to the Work Letter, regarding loan financing and other situations, the Shanghai Stock Exchange required an explanation of the reasonableness of Lotus Holdings conducting computing power business through financing despite having sufficient own funds.

In response, Lotus Holdings explained that although the company’s available current funds at the end of 2025 are relatively large, they include temporary supplementary funds limited to daily operations of flavoring products and external loans that need to be repaid.
If these restricted-use funds are deducted, the remaining freely disposable funds for computing power business are actually less than the external financing needs of that business.

Lotus Holdings also stated that the asset realization cycle for computing power business is relatively long, and external financing helps balance the company’s asset structure.
“The flavoring segment mainly relies on self-owned funds and supplementary working capital; the computing power business initially depends mainly on external financing. Once it enters a stable operational stage, it will gradually repay the initial loans with operational surpluses. Therefore, given the current restrictions on fund use and the significant need for daily operations and debt repayment, conducting computing power business through financing aligns with the company’s actual situation.”

Additionally, according to the performance targets set in Lotus Holdings’ equity incentive plan, its main responsible person for the computing power business, controlling shareholder Lotus Zixing, has a 2025 revenue target of 400 million yuan.
However, as mentioned above, by the end of the third quarter last year, its computing power revenue was only 97.67 million yuan, far below the target.

In response, Lotus Holdings explained that there are still cases where large sales contracts are signed but not executed in the short term and then terminated, with terminated contract amounts totaling about 570 million yuan, accounting for 82.67% of total sales contracts, leading to underperformance in the computing power business.

“Regarding specific business operations, Lotus Zixing signed 61 new contracts in 2025, totaling about 695 million yuan.
Among them, 9 contracts were terminated, involving about 579 million yuan, including some large contracts that were terminated before execution.”

Specifically, in the top ten sales contracts by amount, multiple terminations occurred.
Lotus Holdings stated that the main reasons include upstream server supply shortages preventing delivery, customer demand changes not matching company equipment models, and compatibility issues between equipment and customer systems, including a 555 million yuan computing power service contract with a state-owned enterprise in Shanghai that was terminated, and legal proceedings have been initiated to recover related prepayments.

However, regarding the obstacles in contract execution, Lotus Holdings said that its existing computing resources still maintain high utilization.
“By the end of 2025, Lotus Zixing’s equipment leasing rate was about 86.5%, and capacity utilization was about 90%. The existing computing resources are nearly saturated. To ensure business continuity and meet potential market demand, the company believes it is necessary to continue hardware procurement to expand capacity and stabilize the business foundation.”

“For the newly purchased acceleration card products, the company plans to purchase supporting servers and assemble them based on customer-specific application scenarios, providing solutions through computing power leasing or complete machine sales.
Lotus Holdings also stated that these products have not yet signed specific sales or leasing contracts, and whether they can be successfully implemented externally remains uncertain.”

Written by: Qiu Kangzheng, Southern Metropolis Daily · Wancai Society Reporter