ATA Creativity (US:AACG)2020-03-31 18:07Company Overview - ATA Creativity Global (ACG) focuses on providing integrated educational experiences for students in China and abroad[9] - The company aims to offer online, on-campus, and other education programs through a network of global education partners[9] - As of March 26, 2020, the market capitalization was $31.2 million, with 31.2 million ADSs outstanding and a book value per ADS of $1.41[8,9] Key Operating Highlights - Huanqiuyimeng became a wholly-owned subsidiary of ACG in the second half of 2019, leading to a change in the company's name and ticker symbol[12] - Portfolio training programs saw a year-over-year (YoY) growth of 19.3% in credit hours delivered, indicating Huanqiuyimeng's business performance[14] - A private placement is expected to bring in approximately $10.0 million in gross proceeds[13] Enrollment Update (Q4 2019) - Total credit hours for time-based programs decreased by 3.0%, from 35,490 to 34,434[17] - Total credit hours for project-based programs increased significantly by 115.0%, from 8,263 to 17,768[17] - Overall, total credit hours increased by 19.3%, from 43,753 to 52,202[17] Financial Highlights (Q4 2019) - Total net revenues increased to RMB54.1 million, a significant rise from RMB0.2 million in Q4 2018, driven by the Huanqiuyimeng acquisition[18] - Gross margin was 38.6% (47.5% adjusted), a substantial improvement from the negative gross margin of -10.5% in Q4 2018[19] - Net loss from continuing operations attributable to ACG was RMB70.8 million, compared to a net loss of RMB23.8 million in the prior-year period[21] Financial Highlights (Year-End 2019) - Total net revenues increased to RMB97.8 million, up from RMB1.3 million in 2018, due to the Huanqiuyimeng acquisition[20] - Gross margin was 36.7% (45.2% adjusted), a significant improvement from the negative gross margin of -217.6% in 2018[21] - Net loss from continuing operations attributable to ACG was RMB127.0 million, compared to a net loss of RMB63.7 million in the prior year[21] Balance Sheet Highlights (as of December 31, 2019) - Cash and cash equivalents amounted to $22.1 million (RMB154.2 million)[27] - Total assets were $95.9 million (RMB667.7 million)[27] - Shareholders' equity was $43.9 million (RMB305.7 million)[27]