BEIJING, CN / ACCESS Newswire / November 18, 2025 / ATA Creativity Global ("ACG" or the "Company") (Nasdaq:AACG), an international educational services company focused on providing quality learning experiences that cultivate and enhance students' creativity, today announced that, on November 17, 2025, it entered into a subscription agreement (the "Subscription Agreement", which is attached hereto as Exhibit 99.1) with three purchasers (the "Purchasers") for a registered direct offering of 11,067,547 of its ...

ATA CREATIVITY GLOBAL UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | | | Nine-month Period Ended | | | --- | --- | --- | --- | | | September 30, | September 30, | September 30, | | | 2024 | 2025 | 2025 | | | RMB | RMB | USD | | Net revenues | 167,144,553 | 178,985,729 | 25,141,976 | | Cost of revenues | 89,543,642 | 98,916,478 | 13,894,715 | | Gross profit | 77,600,911 | 80,069,251 | 11,247,261 | | Operating expenses: | | | | | Research and development | 2,924,091 | 2,359,214 | 331,397 | ...

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Core Points - The conference call is focused on ATA Creativity Global's third quarter 2025 financial results and operational achievements [1][5] - The call includes discussions on forward-looking statements, which may involve risks and uncertainties affecting actual results [3] - The CFO will present key operational achievements and financial highlights for the third quarter and nine months of 2025, along with expectations for the full year [5] Financial Highlights - The CFO, Mr. Ruobai Sima, will provide an overview of the financial and operating results for the third quarter and nine months of 2025 [5] - The presentation will include a discussion on the company's long-term growth strategy by President Mr. Jun Zhang [5]

Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 were RMB 67.3 million, relatively stable compared to Q3 2024 [6] - Gross margin for Q3 2025 was RMB 26.4 million, down from RMB 30 million in Q3 2024, resulting in a gross margin percentage of 39.2% compared to 44.6% in the prior year [7] - Net income attributed to ACG in Q3 2025 was RMB 2.4 million, a significant improvement from a net loss of RMB 14.7 million in the prior year [8] - For nine months 2025, total net revenues increased by 7.1% to RMB 179 million from RMB 167.1 million in the prior year [9] - Net loss attributed to ACG for nine months 2025 was RMB 21.7 million, compared to RMB 49.4 million in the prior year [10] Business Line Data and Key Metrics Changes - Portfolio training services accounted for 71.9% of total net revenues, with project-based program credit hours delivered increasing by 22.9% compared to Q3 2024 [4] - Revenues from research-based learnings and overseas study counseling increased during the period due to more services delivered [4] - Total student enrollment for Q3 2025 was 1,052, down from 1,289 in the prior year period, reflecting normalized demand [10] Market Data and Key Metrics Changes - The company anticipates total net revenues for the full year 2025 to be between RMB 276 million and RMB 281 million, representing a year-over-year increase of around 3-5% from 2024 [11] - The company is focusing on expanding its services to cater to a growing student population with diverse arts backgrounds [13] Company Strategy and Development Direction - The company plans to consolidate select campuses in less active markets while expanding online classroom capacity [14] - New online master classes co-developed with prestigious universities are being introduced to enhance educational offerings [15] - The company aims to balance expansion with operating efficiency to strengthen market position and enhance student outcomes [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in ongoing investments in strategic growth initiatives and a strong focus on cost management to drive sustainable value creation [16] - The company is committed to delivering high-quality educational services while maintaining financial resilience in a competitive market [16] Other Important Information - Total operating expenses for Q3 2025 were RMB 37 million, a decrease of 22.4% from RMB 47.7 million in Q3 2024 [7] - The company has a cash and cash equivalents balance of RMB 96.8 million as of September 30, 2025 [10] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded with an invitation for future inquiries [17][18]

Financial Performance (Q3 2025) - Net revenues remained stable at RMB673 million (or $95 million) compared to Q3 2024[20] - Gross profit decreased to RMB264 million (or $37 million) from RMB300 million in Q3 2024[20] - Gross margin decreased to 392% from 446% in Q3 2024[20] - Total operating expenses decreased to RMB370 million (or $52 million) from RMB477 million in Q3 2024[20] - Net income attributable to ACG was RMB24 million (or $03 million), a significant improvement from a loss of RMB147 million in Q3 2024[20] Financial Performance (9M 2025) - Net revenues increased by 71% to RMB1790 million (or $251 million) compared to 9M 2024[16, 22] - Gross profit increased by 32% to RMB801 million (or $112 million) compared to 9M 2024[16, 23] - Gross margin decreased to 447% from 464% compared to 9M 2024[24] - Net loss attributable to ACG decreased to RMB(217) million (or $(31) million) from RMB(494) million compared to 9M 2024[24] Operational Highlights (Q3 2025) - Portfolio Training Services remained the main revenue contributor, accounting for 719% of total net revenues[19] - Project-based programs credit hours increased 229% year-over-year, accounting for 811% of total credit hours delivered[19] FY 2025 Guidance - The company is on track to achieve FY 2025 revenue guidance of approximately RMB276 million – RMB281 million, representing approximately +3% to +5% growth vs FY 2024[35]

Core Viewpoint - ATA Creativity Global (ACG) is set to release its financial results for the third quarter and nine-month periods ending September 30, 2025, on November 12, 2025, after market close [1] Financial Results Announcement - The financial results will be disclosed after the close of the stock market on November 12, 2025 [1] - A conference call to discuss the results and management's outlook is scheduled for 8:00 p.m. on the same day [1]

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]

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]

Financial Performance - Q2 2025 net revenues increased by 8.0% to RMB55.9 million (or $7.8 million) compared to RMB51.8 million in Q2 2024[5] - Q2 2025 gross profit rose by 10.2% to RMB28.3 million (or $4.0 million), with a gross margin improvement to 50.6% from 49.6% in the prior year[5] - Net loss attributable to ACG for Q2 2025 decreased to RMB10.8 million (or $1.5 million), down from RMB16.8 million in Q2 2024[5] - ACG's net revenues for Q2 2025 increased to RMB55.9 million (or $7.8 million), compared to RMB51.8 million in Q2 2024, representing a growth of approximately 7.3%[42] - The gross profit for Q2 2025 was RMB28.3 million (or $3.9 million), up from RMB25.7 million in Q2 2024, indicating a gross margin improvement[42] - Net revenues for the six-month period ended June 30, 2025, increased to RMB 111,681,289, representing a growth of 11.8% compared to RMB 99,889,746 in the same period of 2024[43] - Gross profit for the same period rose to RMB 53,695,025, reflecting a gross margin improvement from 47.6% to 48.0%[43] - The net loss attributable to ACG for the six-month period narrowed to RMB 24,113,077, a reduction of 30.6% compared to RMB 34,702,264 in the same period of 2024[45] - Non-GAAP net loss attributable to ACG for the six-month period was RMB 23,819,928, compared to RMB 32,813,079 in the same period of 2024[45] Enrollment and Operations - Student enrollment in Q2 2025 was 1,050, a slight decrease from 1,084 in Q2 2024, with 53.0% in portfolio training programs[5] - Total credit hours delivered in Q2 2025 were 42,983, a 0.3% increase from 42,841 in Q2 2024[5] Expenses and Losses - Total operating expenses for Q2 2025 decreased by 9.4% to RMB42.1 million (or $5.9 million) from RMB46.5 million in Q2 2024[15] - Basic and diluted losses per common share for Q2 2025 were RMB0.17 (or $0.02), compared to RMB0.27 for Q2 2024[16] - Adjusted net loss for Q2 2025 was RMB10.6 million (or $1.5 million), compared to an adjusted net loss of RMB15.9 million in Q2 2024[23] - For Q2 2025, basic and diluted losses per common share attributable to ACG were RMB0.17 (or $0.02) and RMB0.34 (or $0.04) per ADS, respectively[24] - Total operating expenses for Q2 2025 were RMB42.1 million (or $5.9 million), a decrease from RMB46.5 million in Q2 2024[42] - Basic and diluted losses per common share attributable to ACG improved to RMB (0.38) from RMB (0.55) year-over-year[45] - Research and development expenses decreased to RMB 1,598,301, down 26.7% from RMB 2,184,042 in the previous year[43] - Sales and marketing expenses also declined to RMB 42,792,521, a decrease of 8.0% compared to RMB 46,643,677 in the prior year[43] Cash and Equity - As of June 30, 2025, ACG's cash and cash equivalents were RMB34.7 million (or $4.8 million), down from RMB36.5 million as of December 31, 2024[27] - The working capital deficit increased to RMB304.0 million (or $42.4 million) as of June 30, 2025, compared to RMB287.9 million as of December 31, 2024[27] - Total shareholders' equity attributable to ACG decreased to RMB55.9 million (or $7.8 million) as of June 30, 2025, from RMB79.6 million as of December 31, 2024[27] Future Outlook - For FY 2025, ACG expects total net revenues between RMB276 million and RMB281 million, representing a year-over-year increase of approximately 3% to 5%[8] - ACG's future growth strategy includes plans for mergers and acquisitions and enhancing its portfolio training programs[30] Other Financial Metrics - Interest income for the six-month period was RMB 95,510, a significant decrease from RMB 643,219 in the previous year[43] - The company reported a foreign currency translation adjustment of RMB 4,281 for the six-month period ended June 30, 2025[43]