Core Points - ATA Creativity Global has regained compliance with the minimum bid price requirement under Nasdaq Listing Rules, with its American depositary shares (ADSs) closing at $1.00 or greater from November 1 to November 25, 2024 [2] - The company received a notification regarding a deficiency in minimum stockholders' equity, indicating that it does not meet the required $10,000,000 in stockholders' equity as per Nasdaq Listing Rule 5450(b)(1)(A) [3][4] - The company has 45 calendar days to submit a plan to regain compliance with the minimum stockholders' equity requirement, with a potential extension of up to 180 days if the plan is accepted [5] - The Stockholders' Equity Letter does not have an immediate effect on the company's listing, and its ADSs will continue to trade on Nasdaq during the compliance period [6] Company Overview - ATA Creativity Global is an international educational services company focused on providing quality learning experiences that enhance students' creativity, offering services such as portfolio training, research-based learning, and overseas study counseling [7]

Financial Data and Key Metrics Changes - Total net revenue for Q3 2024 was RMB 67.3 million, an increase of 13.1% from RMB 59.5 million in Q3 2023, primarily due to increased revenue contributions from research-based learning and portfolio training services [16] - Gross profit for Q3 2024 was RMB 30 million, a 2.6% increase from RMB 29.2 million in Q3 2023, with a gross margin of 44.6%, down from 49.2% in the prior year [17] - For the nine months of 2024, total net revenues increased by 21.1% to RMB 167.1 million from RMB 138 million in the prior year [20] - Net loss attributable to ACG for Q3 2024 was RMB 14.7 million, compared to RMB 7.3 million in the prior year [19] Business Line Data and Key Metrics Changes - Portfolio training services contributed more than 70% of total revenues for both Q3 2024 and the nine months of 2024, with project-based programs accounting for 70% of total credit hours delivered in Q3 [12] - Student enrollments for research-based learning and overseas study counseling increased by more than 20% compared to Q3 2023 [13] - Credit hours delivered for portfolio training services increased by 28.5% for the nine months of 2024, with time-based programs increasing by 29% [25] Market Data and Key Metrics Changes - Total student enrollment increased by 20% for the nine months of 2024 compared to the same period in 2023, with portfolio training enrollment up by 20.7% [24] - The company expanded its training center coverage in existing cities, including the opening of the ACG London Center to support students studying in the UK [31] Company Strategy and Development Direction - The company's growth strategy focuses on organic growth, geographic expansion, new service launches, and potential M&A opportunities [28] - ACG aims to enhance its offerings by integrating AI technologies through a partnership with Oasis Star Educational Technology [35] - The company continues to invest in infrastructure and teaching staff to maintain high-quality offerings for students [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2024 revenue guidance of RMB 233 million to RMB 255 million, representing a year-over-year increase of 5% to 15% [26] - The strong enrollment trend and the ability to expand services are seen as key drivers for future growth [27] Other Important Information - Total operating expenses for Q3 2024 were RMB 47.7 million, an increase of 28.4% from RMB 37.1 million in Q3 2023, primarily due to increased sales and administrative expenses [18] - As of September 30, 2024, the company had RMB 39.4 million in cash and cash equivalents, total assets of RMB 459.4 million, and total liabilities of RMB 393.2 million [23] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the call concluded without a detailed Q&A segment [39]

| --- | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------|-------|-------|-------|---------| | | | | | | | | | | | | | | | | | | | ATA Creativity Global | | | | | | NASDAQ: AACG | | | | | | 2024 THIRD QUARTER EARNINGS CALL | | | | | | | | | | | | November 7, 2024 Speakers: Kevin Ma, Chairman & CEO Ruobai Sima, CFO Jun Zhang, President | | | | P A G E | Safe Harbor Statement This presentation was developed by ATA Creativity Global ("ACG" or ...

Financial Data and Key Metrics Changes - Total net revenue for Q2 2024 was RMB41.8 million, a 42.8% increase from RMB36.2 million in Q2 2023 [9] - Gross margin improved to 49.6% in Q2 2024 from 39.5% in the prior year period [9] - Net loss attributable to ACG was RMB15.8 million in Q2 2024, compared to RMB17.2 million in Q2 2023 [10] - For the first half of 2024, total net revenues increased 27.2% to RMB99.9 million compared to RMB78.6 million in the prior year period [10] Business Line Data and Key Metrics Changes - Revenue from portfolio training services was RMB40.2 million in Q2 2024, representing a 41.9% year-over-year increase [8] - Enrollment in portfolio training programs increased to 612 students in Q2 2024 from 540 in the same period last year [8] - Portfolio training credit hours delivered rose by 49.3% year-over-year to 42,841 hours [8] Market Data and Key Metrics Changes - The company reported a working capital deficit of $40.7 million at the end of Q2 2024, compared to a deficit of $34.4 million at the end of 2023 [11] - Total shareholders' equity decreased to $11 million at June 30, 2024, from $15.9 million at December 31, 2023 [11] Company Strategy and Development Direction - The company aims to grow its student base and expand its current business while exploring potential acquisition opportunities [14] - ACG is focused on enhancing its portfolio of offerings to meet students' needs in a creative environment [14] - The company plans to continue investing in operational infrastructure to provide exceptional education and support [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2024, historically being stronger than the first half [13] - The company reiterated its revenue expectations for the year, projecting total revenue in the range of RMB230 million to RMB235 million, a 5% to 50% increase from fiscal year 2023 [13] - Management highlighted the positive trend in offers received by ACG students from prestigious institutions, indicating increased demand for overseas study opportunities [17] Other Important Information - ACG hosted the ACG Arts Education Exhibition in April across five major cities in China, which attracted significant interest [15] - The company successfully conducted the second session of the United Nations Sustainable Development Goals Arts Boot Camp, engaging 70 students [16] - ACG has established collaborative relationships with world-renowned institutions to enhance educational resources for students [21] Q&A Session Summary Question: Are there any questions from participants? - There were no questions during the Q&A session [24]

2024 SECOND QUARTER EARNINGS CALL August 7, 2024 Speakers: Mr. Kevin Ma, Chairman & CEO Mr. Jun Zhang, President Mr. Ruobai Sima, CFO Safe Harbor This presentation was developed by ATA Creativity Global ("ACG" or the "Company") and is intended to be used solely in connection with ACG's earnings call for the second quarter and six months ended June 30, 2024. This presentation is not to be construed as an offer to sell or the solicitation of an offer to buy the Company's securities. This presentation is based ...

Core Viewpoint - ATA Creativity Global (ACG) is set to release its financial results for the second quarter and six months ended June 30, 2024, on August 7, 2024, after market close, followed by a conference call to discuss the results [1]. Group 1 - The conference call will take place at 9:00 p.m. ET on the same day as the financial results release [1]. - Participants can join the call using specific dial-in numbers provided for U.S., Canada, and international callers, including a local access number for China and Hong Kong [2]. - A live webcast of the call will be available, along with an accompanying slide presentation on the company's investor relations website [2]. Group 2 - A Q&A session will follow the management's prepared remarks, allowing participants to submit questions via email if preferred [3]. - ATA Creativity Global focuses on providing quality educational services aimed at enhancing students' creativity through various offerings, including portfolio training and overseas study counseling [4].

Core Points - ATA Creativity Global (ACG) has received a notification from Nasdaq indicating that it no longer meets the minimum bid price requirement of US$1.00 for continued listing, as its American depositary shares (ADSs) have been below this threshold for 30 consecutive business days [1][2] - The company has until November 25, 2024, to regain compliance with the minimum bid price requirement, and if the bid price closes at or above US$1.00 for at least 10 consecutive business days before this date, compliance will be restored [2][3] - If compliance is not achieved by the deadline, ACG may qualify for additional time to regain compliance if it meets other listing requirements, excluding the minimum bid price [3] Company Overview - ACG is an international educational services company that focuses on providing quality learning experiences aimed at enhancing students' creativity [4] - The company offers a variety of educational services, including portfolio training, research-based learning services, and overseas study counseling through its training center network [4]

Financial Data and Key Metrics Changes - Total net revenues for Q1 2024 were RMB 48.1 million, a 13.7% increase from RMB 42.3 million in Q1 2023, primarily driven by portfolio training services [11][12] - Gross margin improved to 45.5% in Q1 2024 from 44.3% in the prior year period, indicating increased operational efficiencies [11] - Net loss attributed to ACG was RMB 17.9 million in Q1 2024, slightly higher than RMB 17.8 million in the prior year, mainly due to increased sales expenses [12] Business Line Data and Key Metrics Changes - Total student enrollment for Q1 2024 was 1,370, up nearly 25% from about 1,097 in the prior year period [10] - Enrollment in core portfolio training programs increased more than 33%, with 863 students enrolled in Q1 2024 compared to 648 in the prior year [10] - Portfolio training credit hours delivered were 33,527, reflecting a 21.3% year-over-year increase [10] Market Data and Key Metrics Changes - The demand for nontraditional pathways to higher education in China has improved the visibility of arts education institutions [15] - The company hosted the Open Hack Shanghai Fashion Week program, which was well-received and contributed to student portfolios for overseas applications [16] Company Strategy and Development Direction - The company aims to continue growing its core portfolio training service business while exploring potential acquisitions [14][20] - ACG is focused on enhancing research-based learning and overseas study counseling services to provide a comprehensive educational offering [10][20] - The introduction of new projects like the United Nations art bootcamp aims to empower students and enhance their overseas study applications [18][19] Management's Comments on Operating Environment and Future Outlook - Management reiterated revenue expectations for 2024 to be between RMB 233 million to RMB 255 million, representing a 5% to 15% increase from 2023 [14] - The company remains optimistic about its prospects for 2024 and is committed to supporting students academically and emotionally [22] Other Important Information - The company has a solid financial position with US$ 8 million in cash and cash equivalents, despite a working capital deficit of US$ 36.9 million [12] - Management emphasized the importance of student outcomes and the role of dedicated instructors and institutional partnerships in achieving these goals [20] Q&A Session Summary Question: Thoughts on enrollment in portfolio training and its trajectory - Management noted strong growth in Q1 with nearly 50% revenue increase in the previous quarter, driven by student enrollment and credit hours delivered [25] - They believe ongoing investment in teaching resources will support sustainable growth in portfolio training services [26] Question: Additional color on revenue guidance and growth sources - Management indicated that core business and portfolio training will see sustainable growth in the next two to three quarters, with additional revenue from project-based learning and overseas study companies [30]

2024 FIRST QUARTER EARNINGS CALL May 15, 2024 Speakers: Mr. Kevin Ma, Chairman & CEO Mr. Ruobai Sima, CFO Safe Harbor This presentation was developed by ATA Creativity Global (“ACG” or the “Company”) and is intended to be used solely in connection with ACG’s earnings call for the three months ended March 31, 2024. This presentation is not to be construed as an offer to sell or the solicitation of an offer to buy the Company’s securities. This presentation is based upon information available to the public, a ...

BEIJING, May 08, 2024 (GLOBE NEWSWIRE) -- 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 it will release financial results for the first quarter ended March 31, 2024, after the close of the stock market on Tuesday, May 14, 2024. The Company will discuss those results in a conference call the following day, Wednesday, May 1 ...