BEIJING, CN / ACCESS Newswire / January 28, 2026 / 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 the closing of its previously announced registered direct offering for the sale and purchase of 11,067,547 American Depositary Shares ("ADSs"), each representing two common shares of the Company, with a par value of US$0.01 per share (the ...

Core Viewpoint - ATA Creativity Global (ACG) has announced a registered direct offering of American Depositary Shares (ADSs) to raise approximately $8.85 million before expenses [1] Group 1: Offering Details - ACG entered into a subscription agreement with three purchasers for a total of 11,067,547 ADSs [1] - Each ADS represents two common shares of the company, priced at $0.8 per ADS, which is equivalent to $0.4 per common share [1] - The offering is expected to generate gross proceeds of approximately $8.85 million for the company [1]

Financial Performance - Net revenues for the nine-month period ended September 30, 2025, were RMB 178,985,729, representing an increase from RMB 167,144,553 in the same period of 2024, a growth of approximately 11%[3] - Gross profit for the nine-month period ended September 30, 2025, was RMB 80,069,251, compared to RMB 77,600,911 for the same period in 2024, reflecting a gross margin improvement[3] - The net loss attributable to ATA Creativity Global for the nine-month period ended September 30, 2025, was RMB 21,743,641, a decrease from RMB 49,336,811 in the same period of 2024, showing an improvement of approximately 56%[3] - The company reported a basic and diluted loss per common share attributable to ATA Creativity Global of RMB 0.34 for the nine-month period ended September 30, 2025, compared to RMB 0.78 for the same period in 2024, indicating a reduction in losses per share[3] - Net loss for the nine-month period ended September 30, 2024, was RMB 49,336,883, compared to RMB 21,743,669 for the same period in 2025, indicating a significant reduction in losses[7] Assets and Liabilities - The total current assets decreased to RMB 66,639,674 as of December 31, 2024, from RMB 126,538,828 as of September 30, 2025, indicating a significant reduction of approximately 47%[2] - Total liabilities decreased to RMB 377,281,073 as of December 31, 2024, from RMB 403,711,466 as of September 30, 2025, a reduction of about 7%[2] - Cash and cash equivalents as of December 31, 2024, were RMB 36,523,995, a significant decrease from RMB 96,807,261 as of September 30, 2025, reflecting a decline of approximately 62%[2] - Total shareholders' equity attributable to ATA Creativity Global increased to RMB 79,710,448 as of December 31, 2024, from RMB 58,885,029 as of September 30, 2025, an increase of approximately 35%[2] Cash Flow and Investments - The company recorded an investment income of RMB 11,932,630 for the nine-month period ended September 30, 2025, which was not present in the same period of 2024, indicating new revenue streams[3] - Cash paid for property and equipment was RMB 2,408,489 in 2025, a significant decrease from RMB 18,581,054 in 2024, indicating reduced capital expenditures[7] - The company received RMB 32,063,829 from short-term loans in 2025, enhancing liquidity[7] Expenses and Cost Management - Research and development expenses for the nine-month period ended September 30, 2025, were RMB 2,359,214, down from RMB 2,924,091 in the same period of 2024, a decrease of about 19%[3] - Employee benefit expenses for the nine-month period ended September 30, 2025, totaled RMB 12,323,801, a decrease of 5.56% from RMB 13,046,270 in 2024[92] - Sales and marketing expenses decreased significantly to RMB 2,948,340 in 2025, down 25.1% from RMB 3,930,139 in 2024[92] - General and administrative expenses for the nine-month period ended September 30, 2025, were RMB 2,447,738, a decrease of 3.43% from RMB 2,534,935 in 2024[92] Regulatory and Legal Matters - The Company faces potential regulatory actions that could adversely affect its business and financial position, including fines and operational restrictions[28] - The Supreme People's Court ruled that shareholder approval was not required for the sale of the ATA Online Business, dismissing all claims from the plaintiffs[187] Shareholder and Equity Information - As of September 30, 2024, Mr. Ma holds approximately 40% of the total ordinary shares of the Company[24] - The total accrued expenses and other payables as of September 30, 2025, amounted to RMB 45,416,644, down from RMB 56,372,960 as of December 31, 2024[133] Taxation - The Company has been granted a preferential income tax rate of 15% as a high-and-new technology enterprise (HNTE) effective from January 1, 2020, to December 31, 2022[141] - The Company has not accrued income taxes on earnings of RMB 76,559 generated by its PRC consolidated entities as of September 30, 2025, planning to reinvest these earnings indefinitely in the PRC[142] Share-Based Compensation - The share-based compensation plan allows for the issuance of up to 6,965,846 shares, with a vesting schedule generally providing for 25% vesting on the first anniversary of the grant date[154] - The total share-based compensation expense for the year ended December 31, 2024, was RMB 1,016,353, with significant allocations to general and administrative expenses[175]

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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]