ATA Creativity (US:AACG)2020-05-15 16:12Financial Performance - Total net revenues increased to RMB32703000 from RMB1616000, driven by Huanqiuyimeng business contributions[15, 17] - Gross margin was 358%, compared to 253% in Q1 2019[15, 17] - Net loss attributable to ACG was RMB20456000, compared to a net loss of RMB12899000 in the prior-year period, mainly due to increased operating expenses from Huanqiuyimeng[15, 17] - As of March 31, 2020, cash and cash equivalents were USD$216 million[19] Operational Highlights - Huanqiuyimeng coursework was successfully transitioned to an online format due to COVID-19[12] - All in-person coursework was ceased since the beginning of February to prioritize safety[12] - Portfolio training programs experienced an 87% year-over-year decrease in credit hours delivered[12, 14] - Time-based program credit hours decreased by 256%, from 22398 to 16655[14] - Project-based program credit hours increased by 494%, from 6529 to 9755[14] Growth Strategy - ACG plans to scale the growth of well-established education enterprises to expand its presence in China and beyond[26] - The company aims to increase outreach to students seeking overseas study experiences, those looking to enhance capabilities outside academics, and those seeking out-of-classroom learning experiences[26] - ACG will continue exploring M&A opportunities within the education sector[26]