ATA Creativity (AACG)

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ATA Creativity (AACG) - 2025 Q2 - Earnings Call Transcript
2025-08-07 02:00
Financial Data and Key Metrics Changes - Total net revenues for Q2 2025 were RMB 55.9 million, an increase of 8% from RMB 51.8 million in Q2 2024, primarily due to increased contributions from overseas study counseling programs and other educational services [9][10] - Gross profit for Q2 2025 was RMB 28.3 million, an increase of 10.2% from RMB 25.7 million in Q2 2024, driven by higher net revenues [9][10] - Gross margin improved to 50.6% in Q2 2025 from 49.6% in the prior year period [10] - Net loss attributable to ACG in Q2 2025 was RMB 10.8 million, compared to RMB 16.8 million in the prior year period [11] Business Line Data and Key Metrics Changes - Portfolio training services accounted for 68% of total net revenues, with project-based programs credit hours delivered increasing by 25.7% compared to Q2 2024 [6][9] - Revenues from research-based learning, overseas study counseling, and other educational services grew by 54.2% compared to the prior year period [6][9] Market Data and Key Metrics Changes - Total student enrollment for Q2 2025 was 1,050, a decrease of 3.1% from the prior year period, attributed to normalized demand in 2025 [14] - Credit hours delivered slightly increased by 0.3% compared to the prior year period, with a significant increase in project-based programs [14][15] Company Strategy and Development Direction - The company aims to drive organic growth across all business lines while enhancing cost discipline and overall efficiency [18][22] - ACG plans to expand its geographic footprint and international partnership network, particularly in regions with growing student interest [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's market position despite intensified competition, emphasizing the focus on organic growth and improving service offerings [18][20] - For full year 2025, the company expects total net revenues to be between RMB 276 million to RMB 281 million, representing a year-over-year increase of around 3% to 5% from 2024 [16] Other Important Information - The company recorded significant revenue growth in overseas study counseling services, with students receiving over 4,000 offers from prestigious institutions [7][8] - The company has introduced new programs and experiences to align with evolving student interests, including career-oriented disciplines [21][22] Q&A Session Summary Question: Are there any questions at this time? - There were no questions during the Q&A session [24]
ATA Creativity (AACG) - 2025 Q2 - Earnings Call Presentation
2025-08-07 01:00
Financial Performance - Q2 2025 - Net revenue increased by 80% to RMB559 million (or $78 million) compared to Q2 2024[20] - Gross profit increased by 102% to RMB283 million (or $40 million) compared to Q2 2024[20] - Revenues from Overseas Study Counselling, Research-based Learning and Other Educational Services increased by 542% compared to Q2 2024[12] - Net loss attributable to ACG was RMB108 million (or $15 million) in Q2 2025, compared to RMB168 million in Q2 2024[20] Financial Performance - H1 2025 - Net revenue increased by 118% to RMB1117 million (or $156 million) compared to H1 2024[21] - Gross profit increased by 128% to RMB537 million (or $75 million) compared to H1 2024[21] - Revenues from Overseas Study Counselling, Research-based Learning and Other Educational Services increased by 408% compared to H1 2024[15] - Net loss attributable to ACG was RMB241 million (or $34 million) in H1 2025, compared to RMB347 million in H1 2024[21] Operational Highlights - Q2 2025 - Portfolio Training Services accounted for 680% of total revenues[18] - Project-based programs accounted for 767% of total credit hours delivered within portfolio training services, compared to 612% in Q2 2024[18] - Research-Based Learning Services comprised 320% of Q2 2025 total net revenues, compared to 224% in Q2 2024[18] FY 2025 Guidance - Revenue is projected to grow by approximately 3% to 5% versus FY 2024, reaching RMB276 million – RMB281 million[33]
美股异动丨中概股华米科技大涨34%




Ge Long Hui A P P· 2025-08-05 00:33
Group 1 - The top five gaining Chinese concept stocks at the close were Lichen International, ATA Creativity Global, Huami Technology, Puhua Biotechnology, and Feitian Zhaoye, with respective gains of 48.81%, 36.11%, 34%, 24.45%, and 23.46% [1] - Lichen International's latest price was 5.610, with a gain of 1.840 and a trading volume of 14.39 million [1] - ATA Creativity Global's latest price was 1.470, with a gain of 0.390 and a trading volume of 7.29 million [1] Group 2 - Huami Technology's latest price was 17.420, with a gain of 4.420 and a trading volume of 22.89 million [1] - Puhua Biotechnology's latest price was 0.8199, with a gain of 0.1611 and a trading volume of 1.36 million [1] - Feitian Zhaoye's latest price was 1.0000, with a gain of 0.1900 and a trading volume of 16.93 million [1]


美股异动丨707 Cayman Holdings涨41.31%,为涨幅最大的中概股




Ge Long Hui· 2025-07-31 00:29
Group 1 - The top five gainers among Chinese concept stocks include 707 Cayman Holdings with a rise of 41.31%, ATA Creativity Global increasing by 33.36%, and RCON (研控科技) up by 20.35% [1] - 707 Cayman Holdings closed at a price of 5.935, with a gain of 1.735 and a trading volume of 2.7565 million [1] - ATA Creativity Global's latest price is 1.700, showing an increase of 0.425 and a trading volume of 0.8189 million [1] Group 2 - RCON (研控科技) reached a price of 2.720, with a rise of 0.460 and a trading volume of 20.0451 million [1] - 康乃德生物 (CNTB) closed at 2.100, reflecting a gain of 0.350 and a trading volume of 0.5651 million [1] - I-Mab (IMAB) saw its price at 2.030, with an increase of 0.330 and a trading volume of 3.7652 million [1]



美股异动丨Rich Sparkle Holdings涨43.06%,为涨幅最大的中概股



Ge Long Hui· 2025-07-30 00:42
Group 1 - The top five gainers among Chinese concept stocks include Rich Sparkle Holdings, which rose by 43.06%, and Shangao Life Sciences, which increased by 42.07% [1] - Rich Sparkle Holdings' latest price is 37.210 with a gain of 11.200 million in trading volume of 12.3123 million [1] - Shangao Life Sciences' latest price is 0.2185, with a gain of 0.0647 million in trading volume of 41.2418 million [1] Group 2 - Other notable gainers include Meihua Chuangfu, which rose by 25.88%, Mercurity Fintech with a 22.73% increase, and ATA Creativity Global, which gained 12.81% [1] - Meihua Chuangfu's latest price is 2.870, with a gain of 0.590 million in trading volume of 4.4662 million [1] - Mercurity Fintech's latest price is 4.320, with a gain of 0.800 million in trading volume of 6.8082 million [1] - ATA Creativity Global's latest price is 1.275, with a gain of 0.145 million in trading volume of 0.4046 million [1]


ATA Creativity (AACG) - 2025 Q1 - Earnings Call Transcript
2025-05-16 14:02
Financial Data and Key Metrics Changes - The company reported a 16% increase in net revenue and gross profit for Q1 2025, driven by portfolio training and research-based learning services [7] - Total net revenues for Q1 2025 were RMB 48.1 million, a 15.9% increase from RMB 41.5 million in Q1 2024 [13] - Gross profit for Q1 2025 was RMB 25.4 million, also a 15.9% increase from RMB 21.9 million in Q1 2024, with a gross margin of 45.5% [13][14] - Operating expenses decreased slightly, leading to a reduced loss from operations of RMB 16.8 million compared to RMB 21.7 million in the prior year [14] Business Line Data and Key Metrics Changes - Portfolio training services accounted for the majority of revenue, with total credit hours delivered increasing by 5.8% [8] - Revenue from portfolio training programs grew by 11.5%, while combined revenues from research-based learning and consulting services increased by over 28% [8] - Student enrollment for Q1 2025 was 1,104, a decrease of 19.4% from the prior year, attributed to normalized demand [15] Market Data and Key Metrics Changes - The company hosted various in-person and online projects, engaging over 100 students in Q1 2025 [10] - ACG was awarded the 2025 Forbes China Studying Abroad Leading Brand, indicating strong market recognition [11] Company Strategy and Development Direction - The company aims to drive organic expansion, control expenses, and improve operational efficiency in 2025 [19] - ACG is focusing on enhancing classroom utilization and providing higher value programs by strategically allocating marketing resources [19] - The company plans to broaden its international partnership network to expand access to global resources and increase student enrollment in various destinations [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the creative arts education market in China, emphasizing the value of their services [20] - The company anticipates total net revenues for 2025 to be between RMB 276 million to RMB 280 million, representing a year-over-year increase of around 3% to 5% [18] Other Important Information - The company is actively developing new project-based programs and expects to launch more research-based learning experiences in the upcoming quarters [21][22] - ACG continues to receive positive feedback from students regarding admission results from prestigious overseas institutions [10] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with an invitation for investors to reach out directly for any inquiries [24][26]
ATA Creativity (AACG) - 2025 Q1 - Earnings Call Transcript
2025-05-16 14:00
Financial Data and Key Metrics Changes - The company reported a 16% increase in net revenue and gross profit for Q1 2025, driven by portfolio training and research-based learning services [6][7] - Total operating expenses slightly decreased, contributing to improved bottom line results compared to Q1 2024 [7] - The net loss attributable to the company for Q4 2025 was RMB 13.3 million, an improvement from RMB 17.9 million in the prior year period [12] Business Line Data and Key Metrics Changes - Portfolio training services accounted for the majority of revenue, with project-based programs contributing approximately 74% of total credit hours delivered, resulting in an 11.5% growth in revenue from these programs [7] - Combined revenues from research-based learning and other educational services increased by over 28%, contributing nearly 30% of total net revenue [7] Market Data and Key Metrics Changes - Total student enrollment for Q4 2025 was 1,104, representing a 19.4% decrease from the prior year, attributed to normalized demand [13] - Credit hours delivered increased by 5.8%, driven by a 15.5% increase in project-based programs [14] Company Strategy and Development Direction - The company aims to drive organic expansion, control expenses, and improve operational efficiency in 2025 [17] - There is a focus on increasing classroom utilization and providing higher value programs by strategically allocating marketing resources [17] - The company plans to broaden its international partnership network to expand access to global resources and increase student interest in studying abroad [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the creative arts education market in China and expects organic growth to lead the company's long-term momentum [18] - The company anticipates total net revenues for 2025 to be between RMB 276 million to RMB 2 billion, representing a year-over-year increase of around 3% to 5% [15] Other Important Information - ACG was awarded the 2025 Forbes China Studying Abroad Leading Brand, recognizing its positive outcomes for students [9] - The company hosted a spring arts education exhibition in five key cities in China, providing opportunities for students and parents to engage with professors from prestigious institutions [10] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator indicated that there were no questions at this time [22] - The company encouraged participants to reach out directly for any inquiries [23]
ATA Creativity (AACG) - 2025 Q1 - Earnings Call Presentation
2025-05-16 12:07
Financial Performance - ATA Creativity Global (ACG) reported a 15.9% increase in total net revenue for Q1 2025 compared to Q1 2024[11, 16] - Gross profit also increased by 15.9% year-over-year, reaching RMB25.4 million (approximately $3.5 million)[11, 16] - Net loss attributable to ACG improved from RMB17.9 million in Q1 2024 to RMB13.3 million in Q1 2025[11, 16] - The company's revenue guidance for FY 2025 is approximately RMB276 million to RMB281 million, representing a growth of approximately 3% to 5% compared to FY 2024[29] Operational Highlights - Portfolio Training Services remained the main revenue contributor, accounting for 70.8% of Q1 2025 total net revenues[13] - Research-Based Learning Services comprised 29.2% of Q1 2025 total net revenues, growing by 28.4% compared to Q1 2024[13] - Project-based programs accounted for 73.9% of total portfolio training services credit hours delivered in Q1 2025, compared to 67.7% in Q1 2024[13] - Total credit hours delivered increased by 5.8% in Q1 2025 compared to Q1 2024, with project-based credit hours increasing by 15.5% and time-based credit hours decreasing by 14.5%[26] Balance Sheet - As of March 31, 2025, ACG had cash and cash equivalents of RMB39.4 million (approximately $5.4 million)[17, 37] - Total assets were RMB457.3 million (approximately $63.0 million), and total liabilities were RMB390.9 million (approximately $53.9 million)[17, 37]
ATA Creativity (AACG) - 2025 Q1 - Quarterly Report
2025-05-16 11:00
[Q1 2025 Earnings Announcement Overview](index=1&type=section&id=Q1%202025%20Earnings%20Announcement) [Headline Summary](index=1&type=section&id=1.1%20Headline%20Summary) ATA Creativity Global (ACG) announced unaudited Q1 2025 financial results, with net revenues and gross profit both increasing by 15.9%, focusing on providing quality learning experiences to foster student creativity - ACG announced Q1 2025 financial results, with **net revenues and gross profit both increasing by 15.9%**[2](index=2&type=chunk) - The company is dedicated to providing international education services that cultivate and enhance students' creativity[2](index=2&type=chunk) [Currency Conversion Rate](index=1&type=section&id=1.2%20Currency%20Conversion%20Rate) All USD amounts in this press release are based on the exchange rate of RMB 7.2567 to USD 1.00 as of March 31, 2025 - All USD amounts are converted at an exchange rate of **RMB 7.2567 to USD 1.00** as of March 31, 2025[3](index=3&type=chunk) [Q1 2025 Highlights](index=1&type=section&id=Q1%202025%20Highlights) [Financial Highlights](index=1&type=section&id=2.1%20Financial%20Highlights) In Q1 2025, ACG achieved a 15.9% increase in both net revenues and gross profit, with net loss narrowing year-over-year, while cash and cash equivalents slightly increased Q1 2025 Financial Highlights | Metric | Q1 2025 (RMB) | Q1 2024 (RMB) | Change (%) | | :--------------------------- | :------------ | :------------ | :------- | | Net Revenues | 55.8 million | 48.1 million | 15.9% | | Gross Profit | 25.4 million | 21.9 million | 15.9% | | Gross Margin | 45.5% | 45.5% | 0.0% | | Net Loss Attributable to ACG | (13.3) million | (17.9) million | -25.7% | | Cash and Cash Equivalents (End of Period) | 39.4 million | 36.5 million (Q4 2024) | 8.0% (vs Q4 2024) | [Operational Highlights](index=1&type=section&id=2.2%20Operational%20Highlights) Despite a decrease in student enrollment, total instructional hours grew by 5.8% year-over-year, primarily driven by a significant increase in project-based program hours, which now represent a larger share of total hours Q1 2025 Instructional Hours Comparison | Program Type | Q1 2025 (Instructional Hours) | Q1 2024 (Instructional Hours) | Change (%) | | :------------------- | :-------------------- | :-------------------- | :------- | | Time-based Programs | 9,250 | 10,825 | (14.5)% | | Project-based Programs | 26,222 | 22,702 | 15.5% | | **Total** | **35,472** | **33,527** | **5.8%** | | Student Enrollment | 1,104 | 1,370 | (19.4)% | - In Q1 2025, **56.7% of students participated in ACG's combined training programs** (time-based and project-based), while **43.3% enrolled in other programs** including overseas study consulting and research-based learning services[8](index=8&type=chunk) [Management Commentary and Business Outlook](index=1&type=section&id=Management%20Commentary%20and%20Business%20Outlook) [CEO's Remarks](index=1&type=section&id=3.1%20CEO's%20Remarks) CEO Kevin Ma expressed satisfaction with Q1 2025 net revenue and gross profit growth, driven by increased contributions from combined training and research-based learning services, as the company continues to invest in advanced educational offerings and achieve strong admission results - The CEO expressed satisfaction with the approximately **16% growth in Q1 2025 net revenues and gross profit**, primarily contributed by combined training and research-based learning services[7](index=7&type=chunk) - In Q1 2025, the company launched new research-based programs, including a Hainan-themed camp, Alibaba AI training camp, US-Japan study tours, and Milan Fashion Week projects, alongside creative art therapy training courses[10](index=10&type=chunk) - ACG students consistently receive admission offers and scholarships from Ivy League and other prestigious universities, reflecting the company's commitment to providing advanced educational services[10](index=10&type=chunk) [FY 2025 Guidance](index=3&type=section&id=3.2%20FY%202025%20Guidance) ACG anticipates total net revenues for fiscal year 2025 to range between RMB 276 million and RMB 281 million, representing a year-over-year growth of approximately 3% to 5% FY 2025 Net Revenue Guidance | Metric | Projected Amount (RMB) | Year-over-Year Growth | | :----------- | :--------------------- | :-------------------- | | Total Net Revenues | 276 million - 281 million | 3% - 5% | [President's Remarks & Strategic Initiatives](index=3&type=section&id=3.3%20President's%20Remarks%20%26%20Strategic%20Initiatives) President Jun Zhang expects continued growth in core combined training and portfolio preparation services in 2025, with plans for more research-based learning programs, expanded international collaborations, and a strategic focus on organic expansion, cost control, operational efficiency, and attracting diverse student demographics - Core combined training services and other services assisting students in creating compelling application portfolios are expected to continue expanding in 2025[12](index=12&type=chunk) - The company has expanded international collaborations beyond US and UK colleges and universities, observing growing student interest in creative arts programs in Europe, Japan, and Singapore[12](index=12&type=chunk) - Strategic priorities include driving organic expansion, controlling expenses, enhancing overall operational efficiency, and attracting broader interest in art learning, workshops, and themed trips among older and younger generations through new programs[12](index=12&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) ACG will host a conference call on Friday, May 16, 2025, at 9:00 AM ET (9:00 PM Beijing Time) to discuss Q1 2025 results, with a simultaneous audio webcast and slides available - The conference call is scheduled for **Friday, May 16, 2025, at 9:00 AM ET**, to discuss Q1 2025 results[13](index=13&type=chunk) - A simultaneous audio webcast and slides will be available via the company's investor relations website[14](index=14&type=chunk) [Detailed Q1 2025 Financial Review (GAAP)](index=4&type=section&id=Detailed%20Q1%202025%20Financial%20Review%20(GAAP)) [Net Revenues and Gross Profit](index=4&type=section&id=5.1%20Net%20Revenues%20and%20Gross%20Profit) Q1 2025 net revenues increased by 15.9% year-over-year to RMB 55.8 million, driven by higher contributions from combined training and research-based learning services, with gross profit also growing by 15.9% and gross margin remaining at 45.5% Net Revenues and Gross Profit Comparison | Metric | Q1 2025 (RMB) | Q1 2024 (RMB) | Change (%) | | :----------- | :------------ | :------------ | :------- | | Net Revenues | 55.8 million | 48.1 million | 15.9% | | Gross Profit | 25.4 million | 21.9 million | 15.9% | | Gross Margin | 45.5% | 45.5% | 0.0% | - The increase in net revenues was primarily attributable to higher revenues from combined training programs and research-based learning services[15](index=15&type=chunk) [Revenue by Program Type](index=4&type=section&id=5.1.1%20Revenue%20by%20Program%20Type) Combined training program revenues increased by 11.5% year-over-year, accounting for 70.8% of total net revenues, while overseas study consulting, research-based learning, and other education services revenues grew by 28.4%, representing 29.2% of the total Net Revenues by Program Type | Program Type | Q1 2025 (RMB) | Percentage of Total | Year-over-Year Change (%) | | :------------------------------------------------- | :------------ | :------------------ | :------------------------ | | Combined Training Programs | 39.5 million | 70.8% | 11.5% | | Overseas Study Consulting, Research-based Learning, and Other Education Services | 16.3 million | 29.2% | 28.4% | [Operating Expenses](index=4&type=section&id=5.2%20Operating%20Expenses) Total operating expenses in Q1 2025 slightly decreased by 3.2% to RMB 42.2 million, with its percentage of net revenues falling from 90.6% to 75.6%, primarily due to reduced selling and R&D expenses and recovery of previously impaired loans, partially offset by increased G&A expenses for new project development Total Operating Expenses Comparison | Metric | Q1 2025 (RMB) | Q1 2024 (RMB) | Change (%) | | :--------------------------- | :------------ | :------------ | :------- | | Total Operating Expenses | 42.2 million | 43.6 million | (3.2)% | | Percentage of Net Revenues | 75.6% | 90.6% | -15.0% | | Provision for Loans and Other Receivables | (3.78) million | — | N/A | - The decrease in operating expenses was primarily due to reduced selling and R&D expenses, along with the recovery of previously impaired loans and other receivables, partially offset by increased general and administrative expenses[16](index=16&type=chunk) [Selling Expenses](index=4&type=section&id=5.2.1%20Selling%20Expenses) Selling expenses decreased by 5.8% year-over-year to RMB 21.3 million Selling Expenses Comparison | Metric | Q1 2025 (RMB) | Q1 2024 (RMB) | Change (%) | | :------------- | :------------ | :------------ | :------- | | Selling Expenses | 21.3 million | 22.6 million | (5.8)% | [Research and Development Expenses](index=4&type=section&id=5.2.2%20Research%20and%20Development%20Expenses) Research and development expenses decreased by 27.4% year-over-year to RMB 0.7 million, primarily because ACG's system development was completed in Q2 2024 Research and Development Expenses Comparison | Metric | Q1 2025 (RMB) | Q1 2024 (RMB) | Change (%) | | :----------------------- | :------------ | :------------ | :------- | | Research and Development Expenses | 0.7 million | 1.0 million | (27.4)% | - The decrease in R&D expenses was primarily due to the completion of ACG's system development in Q2 2024[23](index=23&type=chunk) [General and Administrative Expenses](index=4&type=section&id=5.2.3%20General%20and%20Administrative%20Expenses) General and administrative expenses increased by 19.8% year-over-year to RMB 24.0 million, mainly due to increased investment in new project development and higher professional service fees General and Administrative Expenses Comparison | Metric | Q1 2025 (RMB) | Q1 2024 (RMB) | Change (%) | | :-------------------------- | :------------ | :------------ | :------- | | General and Administrative Expenses | 24.0 million | 20.0 million | 19.8% | - The increase in general and administrative expenses was primarily due to increased investment in new project development and higher professional service fees[23](index=23&type=chunk) [Loss from Operations and Net Loss](index=4&type=section&id=5.3%20Loss%20from%20Operations%20and%20Net%20Loss) Both operating loss and net loss attributable to ACG narrowed year-over-year in Q1 2025, primarily due to increased net revenues and operational leverage Operating Loss and Net Loss Comparison | Metric | Q1 2025 (RMB) | Q1 2024 (RMB) | Change (%) | | :--------------------------- | :------------ | :------------ | :------- | | Loss from Operations | (16.8) million | (21.7) million | -22.6% | | Net Loss Attributable to ACG | (13.3) million | (17.9) million | -25.7% | - The narrowing of losses was primarily due to increased net revenues and operational leverage[17](index=17&type=chunk) [Basic and Diluted Losses Per Share](index=5&type=section&id=5.4%20Basic%20and%20Diluted%20Losses%20Per%20Share) Basic and diluted loss per share attributable to ACG for Q1 2025 narrowed to RMB 0.21 (or USD 0.03) from RMB 0.29 in the prior year, with basic and diluted loss per ADS at RMB 0.42 (or USD 0.06) Basic and Diluted Losses Per Share Comparison | Metric | Q1 2025 (RMB) | Q1 2024 (RMB) | Change (RMB) | | :----------------------------------- | :------------ | :------------ | :----------- | | Basic and Diluted Loss Per Share (Ordinary Shares) | (0.21) | (0.29) | 0.08 | | Basic and Diluted Loss Per Share (ADS) | (0.42) | (0.58) | 0.16 | - The weighted average number of ADSs used in calculating basic and diluted loss per ADS was **31.6 million**, with each ADS representing two ordinary shares[24](index=24&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) [Adjusted Net Loss and EPS](index=4&type=section&id=6.1%20Adjusted%20Net%20Loss%20and%20EPS) Excluding share-based compensation and foreign exchange gains/losses, adjusted net loss attributable to ACG for Q1 2025 narrowed to RMB 13.3 million (or USD 1.8 million) from RMB 16.9 million in the prior year, with adjusted basic and diluted loss per ordinary share at RMB 0.21 and per ADS at RMB 0.42 Adjusted Net Loss and EPS Comparison | Metric | Q1 2025 (RMB) | Q1 2024 (RMB) | Change (RMB) | | :----------------------------------- | :------------ | :------------ | :----------- | | GAAP Net Loss Attributable to ACG | (13,344,642) | (17,948,776) | 4,604,134 | | Share-based Compensation Expenses | 81,532 | 1,072,616 | (991,084) | | Net Foreign Exchange Gains (Losses) | 2,726 | 564 | 2,162 | | Non-GAAP Adjusted Net Loss Attributable to ACG | (13,260,384) | (16,875,596) | 3,615,212 | | Non-GAAP Adjusted Basic and Diluted Loss Per Share (Ordinary Shares) | (0.21) | (0.27) | 0.06 | [Explanation of Non-GAAP Measures](index=6&type=section&id=6.2%20Explanation%20of%20Non-GAAP%20Measures) ACG uses non-GAAP financial measures, excluding share-based compensation and foreign exchange gains/losses, to supplement GAAP information, providing more meaningful performance insights for management and investors to evaluate the company's performance, despite acknowledging these are important recurring expenses - Non-GAAP financial measures aim to provide supplemental information regarding the company's performance by excluding share-based compensation expenses and foreign exchange gains or losses[33](index=33&type=chunk)[34](index=34&type=chunk) - Both management and investors benefit from these non-GAAP measures to assess performance, plan and forecast future periods, and facilitate internal comparisons of historical performance[35](index=35&type=chunk) - A limitation of using non-GAAP measures is that share-based compensation expenses and foreign exchange gains or losses are important recurring expenses in the company's business[35](index=35&type=chunk) [Balance Sheet Highlights](index=5&type=section&id=Balance%20Sheet%20Highlights) As of March 31, 2025, ACG's cash and cash equivalents increased to RMB 39.4 million from year-end 2024, though working capital deficit and total shareholders' equity both decreased Balance Sheet Key Metrics Comparison | Metric | March 31, 2025 (RMB) | December 31, 2024 (RMB) | Change (RMB) | | :--------------------------- | :--------------------- | :---------------------- | :----------- | | Cash and Cash Equivalents | 39.4 million | 36.5 million | 2.9 million | | Working Capital Deficit | (298.5) million | (287.9) million | (10.6) million | | Total Shareholders' Equity | 66.4 million | 79.6 million | (13.2) million | [Company Information](index=5&type=section&id=Company%20Information) [About ATA Creativity Global](index=5&type=section&id=8.1%20About%20ATA%20Creativity%20Global) ATA Creativity Global is an international education services company dedicated to fostering and enhancing student creativity through its network of training centers, offering combined training, research-based learning, overseas study consulting, and other educational services - ATA Creativity Global is an international education services company focused on providing quality learning experiences that cultivate and enhance students' creativity[26](index=26&type=chunk) - The company offers combined training, research-based learning services, overseas study consulting, and other educational services through its network of training centers[26](index=26&type=chunk) [Cautionary Note Regarding Forward-looking Statements](index=5&type=section&id=8.2%20Cautionary%20Note%20Regarding%20Forward-looking%20Statements) This announcement contains forward-looking statements regarding ACG's future growth, operating results, M&A plans, growth strategies, market demand, and FY 2025 guidance, which are based on current expectations and assumptions but are subject to various known and unknown risks and uncertainties that could cause actual results to differ materially - This announcement contains forward-looking statements concerning ACG's future growth, operating results, M&A plans, growth strategies, market demand, and FY 2025 guidance[27](index=27&type=chunk)[28](index=28&type=chunk) - Forward-looking statements are based on current expectations, assumptions, estimates, and projections, but are subject to various known and unknown risks and uncertainties that could cause actual results to differ materially from expectations[29](index=29&type=chunk)[31](index=31&type=chunk) - Risk factors include the ability to develop content meeting student needs, provide effective services, control sales and marketing expenses, market acceptance, maintain market share, integrate acquisitions, the Chinese economic and regulatory environment, and US-China political tensions[29](index=29&type=chunk) [Currency Convenience Translation](index=6&type=section&id=8.3%20Currency%20Convenience%20Translation) The company's financial information is presented in RMB, and for reader convenience, RMB amounts as of March 31, 2025, have been translated into USD at an exchange rate of 7.2567 to 1.00 USD, which should not be construed as a representation that RMB amounts could be converted at this or any other rate - The company's financial information is presented in RMB, with USD conversions provided solely for reader convenience at an exchange rate of **RMB 7.2567 to USD 1.00** as of March 31, 2025[32](index=32&type=chunk) - This translation should not be construed as a representation that RMB amounts could be converted at this or any other rate[32](index=32&type=chunk) [Investor Relations Contact](index=6&type=section&id=8.4%20Investor%20Relations%20Contact) Investor relations contact information for ATA Creativity Global and The Equity Group Inc., including phone and email, is provided - Investors can contact **Ruobai Sima, CFO of ATA Creativity Global**, or **Lena Cati and Alice Zhang of The Equity Group Inc.** for further information[37](index=37&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Balance Sheets](index=7&type=section&id=9.1%20Balance%20Sheets) As of March 31, 2025, the company reported total assets of RMB 457.3 million, total liabilities of RMB 390.9 million, and shareholders' equity of RMB 66.4 million, with cash and cash equivalents slightly increasing but total shareholders' equity decreasing compared to December 31, 2024 Condensed Consolidated Balance Sheets (Summary) | Metric | March 31, 2025 (RMB) | December 31, 2024 (RMB) | | :----------------------------------- | :-------------------- | :---------------------- | | Cash and Cash Equivalents | 39,410,928 | 36,523,995 | | Total Current Assets | 73,240,281 | 66,639,674 | | Total Assets | 457,343,460 | 456,927,265 | | Total Current Liabilities | 371,709,247 | 354,495,409 | | Total Liabilities | 390,948,947 | 377,281,073 | | Shareholders' Equity Attributable to ACG | 66,458,797 | 79,710,448 | [Statements of Comprehensive Income (Loss)](index=8&type=section&id=9.2%20Statements%20of%20Comprehensive%20Income%20(Loss)) In Q1 2025, the company achieved net revenues of RMB 55.8 million and gross profit of RMB 25.4 million, with operating loss at RMB 16.8 million and net loss attributable to ACG at RMB 13.3 million, both showing improvement from the prior year Condensed Consolidated Statements of Comprehensive Income (Loss) (Summary) | Metric | March 31, 2025 (RMB) | March 31, 2024 (RMB) | | :----------------------------------- | :-------------------- | :-------------------- | | Net Revenues | 55,790,906 | 48,125,819 | | Cost of Revenues | 30,402,595 | 26,215,352 | | Gross Profit | 25,388,311 | 21,910,467 | | Operating Expenses | 42,196,714 | 43,599,108 | | Loss from Operations | (16,789,598) | (21,665,553) | | Net Loss | (13,344,670) | (17,948,804) | | Net Loss Attributable to ACG | (13,344,642) | (17,948,776) | | Basic and Diluted Loss Per Share (Ordinary Shares) | (0.21) | (0.29) | | Basic and Diluted Loss Per Share (ADS) | (0.42) | (0.58) | [Reconciliations of Non-GAAP Measures](index=9&type=section&id=9.3%20Reconciliations%20of%20Non-GAAP%20Measures) Reconciliation tables are provided for GAAP net loss to non-GAAP adjusted net loss and GAAP loss per share to non-GAAP adjusted loss per share, with key adjustments for share-based compensation expenses and foreign exchange gains or losses Reconciliations of Non-GAAP Measures | Metric | March 31, 2025 (RMB) | March 31, 2024 (RMB) | | :----------------------------------- | :-------------------- | :-------------------- | | GAAP Net Loss Attributable to ACG | (13,344,642) | (17,948,776) | | Share-based Compensation Expenses | 81,532 | 1,072,616 | | Net Foreign Exchange Gains (Losses) | 2,726 | 564 | | Non-GAAP Adjusted Net Loss Attributable to ACG | (13,260,384) | (16,875,596) | | GAAP Basic and Diluted Loss Per Share (Ordinary Shares) | (0.21) | (0.29) | | Non-GAAP Adjusted Basic and Diluted Loss Per Share (Ordinary Shares) | (0.21) | (0.27) |
ATA Creativity (AACG) - 2024 Q4 - Annual Report
2025-04-10 10:06
Enrollment and Revenue - For the fiscal year ended December 31, 2024, the company had 4,781 students enrolled, with 58.7% in portfolio training programs[22] - Net revenues for the fiscal years ended December 31 were RMB206.8 million, RMB221.6 million, and RMB268.1 million ($36.7 million) for 2022, 2023, and 2024 respectively, indicating a growth of approximately 21% from 2023 to 2024[22] - For the fiscal year ended December 31, 2024, the Company reported net revenues of RMB268,060,162, with subsidiaries contributing RMB268,055,926 and the VIE contributing RMB4,236[66] - The total cost and expenses for the same period were RMB311,279,249, resulting in a loss from operations of RMB43,044,156[66] - The net loss attributable to ATA Creativity Global for the year ended December 31, 2024, was RMB36,097,777[67] - For the fiscal year ended December 31, 2023, the Company reported net revenues of RMB221,618,968, with total cost and expenses amounting to RMB263,145,737, leading to a loss from operations of RMB41,495,904[66] - The net loss attributable to ATA Creativity Global for the year ended December 31, 2023, was RMB33,660,245[67] - Net revenues for the year ended December 31, 2022, were RMB 206,820,874[68] - Total cost and expenses amounted to RMB 263,423,953, resulting in a loss from operations of RMB 56,586,564[68] - The net loss attributable to ATA Creativity Global was RMB 47,892,909 for the year ended December 31, 2022[68] Regulatory Environment - The company is subject to evolving PRC laws and regulations, which could impact its ability to offer securities and conduct business operations[24] - The company has obtained legal opinions confirming the necessary permissions and approvals for its operations, but future changes in regulations may require additional licenses[29] - The company is subject to evolving regulations regarding private education institutions, which may require additional licenses in the future[36] - The CAC and the State Administration for Market Regulation issued new rules for personal information protection certification, effective June 1, 2023, impacting data transfer regulations[42] - The Company believes it is not required to obtain permission from the CSRC for its Nasdaq listing, but future compliance with evolving regulations remains uncertain[44] - The CSRC's Overseas Offering and Listing Measures, effective March 31, 2023, require filings for new overseas offerings but exempt completed listings prior to this date[45] - The Company has not received any inquiries or regulatory objections from the CAC regarding compliance with personal information protection laws as of the report date[42] - The Company has not received any notice requiring it to undergo cybersecurity reviews as of the report date[46] - The Company has not received any inquiries, notices, warnings, sanctions, or regulatory objections from the CAC or any other regulatory authority regarding personal information protection compliance[175] - The company believes it currently does not require permission from the PRC government for its operations, but future regulatory changes could impose new compliance requirements[194] Financial Performance and Cash Flow - The company relies on dividends and distributions from its PRC subsidiaries for cash requirements, subject to foreign exchange restrictions[48] - Internal controls are in place for cash flow management, although written cash management policies have not been established[50] - Cash and cash equivalents increased significantly from RMB 1,068,177 in 2023 to RMB 4,608,462 in 2024[71] - The company reported cash and cash equivalents at the end of 2024 amounting to RMB 36,523,995, down from RMB 60,167,232 at the end of 2023, indicating a decrease of approximately 39.4%[75] - For the fiscal year ended December 31, 2024, net cash provided by operating activities was RMB (3,345,170) compared to RMB 8,751,473 in 2023, indicating a significant decrease in operational cash flow[75] - The net cash used in operating activities for the year ended December 31, 2022, was RMB (14,613,887), highlighting a trend of increasing cash outflows from operations over the years[77] - The company received RMB 9,934,336 from inter-company cash flows in 2024, while cash paid to inter-companies was RMB (2,540,662), indicating active inter-company financial transactions[75] Operational Challenges and Risks - The company may face challenges in generating sufficient net income to sustain continued expansion[92] - A decline in market acceptance for creative arts-related international education services could negatively impact revenue growth[99] - The ability to attract students to portfolio training services without significantly decreasing course fees is critical for maintaining revenue and profitability[100] - The outbreak of COVID-19 and similar public health developments may disrupt business operations and adversely affect financial results[97] - The company faces risks related to geopolitical uncertainty and economic slowdown, which could discourage student enrollment[92] - The company faces increasing competition from established brands and new entrants, which may negatively affect revenues and market share[123] - The company has limited insurance coverage for business disruptions and litigation, exposing it to substantial costs in case of incidents[121] - Unauthorized use of the company's intellectual property by third parties is a significant risk, with potential adverse effects on business and reputation[127] - The company is subject to potential legal claims regarding intellectual property infringement, which could result in substantial legal expenses and disrupt business operations[128] Corporate Structure and Governance - The company operates primarily through its PRC subsidiary Huanqiuyimeng, which provides most of its educational services[28] - The VIE structure allows the company to consolidate its operations under U.S. GAAP, despite the VIE having no business operations of its own as of the report date[23] - The company relies on contractual arrangements with the VIE, which may not provide the same level of operational control as direct ownership[96] - The VIE is 90% owned by the Chairman and 10% by the President, with contractual arrangements enabling the company to direct the VIE's activities[215] - The shareholders of the VIE may have conflicts of interest with the company, potentially breaching existing contractual arrangements, which could adversely affect the company's ability to control the VIE[223] - The contractual arrangements with the VIE are governed by PRC laws, which may complicate enforcement and resolution of disputes[222] Compliance and Legal Risks - The company may incur substantial costs and resources to enforce contractual arrangements if the VIE's shareholders fail to perform their obligations[222] - The legal system in the PRC presents uncertainties that could limit the company's ability to enforce contractual arrangements with the VIE, affecting financial consolidation[222] - The company may face material and adverse tax consequences if the PRC tax authorities determine that the contractual arrangements were not entered into on an arm's length basis, leading to potential adjustments in the VIE's income[226] - The company faces uncertainty in obtaining necessary government approvals for future loans or capital contributions to PRC subsidiaries, which may restrict business strategy execution[158] Strategic Initiatives and Future Outlook - The company is exploring acquisition opportunities in the international education sector to broaden its service spectrum[21] - The company is considering expanding its online courses and services, which may require an internet content provision license under PRC law[23] - The company is focusing on developing and expanding its small-sized class model and online-merge-offline model to improve margins[110] - The company has established 20 training centers in China as of April 3, 2025, with plans for further expansion[108] - The company relies on maintaining strong relationships with overseas schools and institutions to enhance its brand and service offerings[112] - The company is monitoring the evolving regulatory environment and may change its business model or dispose of certain services to ensure compliance with new regulations[182]