ATA Creativity (US:AACG)2025-08-06 21:00Financial 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]