ATA Creativity (US:AACG)2025-05-16 14:02Financial Data and Key Metrics Changes - The company reported a 16% increase in net revenue and gross profit for Q1 2025, driven by portfolio training and research-based learning services [7] - Total net revenues for Q1 2025 were RMB 48.1 million, a 15.9% increase from RMB 41.5 million in Q1 2024 [13] - Gross profit for Q1 2025 was RMB 25.4 million, also a 15.9% increase from RMB 21.9 million in Q1 2024, with a gross margin of 45.5% [13][14] - Operating expenses decreased slightly, leading to a reduced loss from operations of RMB 16.8 million compared to RMB 21.7 million in the prior year [14] Business Line Data and Key Metrics Changes - Portfolio training services accounted for the majority of revenue, with total credit hours delivered increasing by 5.8% [8] - Revenue from portfolio training programs grew by 11.5%, while combined revenues from research-based learning and consulting services increased by over 28% [8] - Student enrollment for Q1 2025 was 1,104, a decrease of 19.4% from the prior year, attributed to normalized demand [15] Market Data and Key Metrics Changes - The company hosted various in-person and online projects, engaging over 100 students in Q1 2025 [10] - ACG was awarded the 2025 Forbes China Studying Abroad Leading Brand, indicating strong market recognition [11] Company Strategy and Development Direction - The company aims to drive organic expansion, control expenses, and improve operational efficiency in 2025 [19] - ACG is focusing on enhancing classroom utilization and providing higher value programs by strategically allocating marketing resources [19] - The company plans to broaden its international partnership network to expand access to global resources and increase student enrollment in various destinations [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the creative arts education market in China, emphasizing the value of their services [20] - The company anticipates total net revenues for 2025 to be between RMB 276 million to RMB 280 million, representing a year-over-year increase of around 3% to 5% [18] Other Important Information - The company is actively developing new project-based programs and expects to launch more research-based learning experiences in the upcoming quarters [21][22] - ACG continues to receive positive feedback from students regarding admission results from prestigious overseas institutions [10] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with an invitation for investors to reach out directly for any inquiries [24][26]