Lotus Health Group to replenish capital, changes auditor, unlocks stock

Lotus Health Group Company will temporarily use 300,000,000 yuan of idle raised funds to replenish working capital for up to 12 months, effective November 21, 2025. This board-approved action aims to improve capital efficiency without impacting investment projects. The company also approved the write-off of 817,351,741.07 yuan in long-term receivables deemed uncollectible, having been fully provided for as bad debt in previous years.

The company will change its auditing firm from Zhongxingcai Guanghua Certified Public Accountants to Tianjian Certified Public Accountants (Special General Partnership) for the 2025 financial year, citing nine years of continuous service by the former. This change is pending approval at the fourth extraordinary general meeting on December 9, 2025.

Additionally, 61 incentive recipients in the 2023 Stock Option and Restricted Stock Incentive Plan will unlock 1,807,500 shares of restricted stock on November 26, 2025, following the achievement of performance targets. The company’s 2024 revenue growth of 56.73% compared to 2022 met the 100% release target for the second restricted period.