ATA Creativity Global Reports 2023 Fourth Quarter and Year-end Financial Results
- Increased student enrollment by 11.3% in Fourth Quarter 2023 compared to the prior year period.
- Net revenues for Fourth Quarter 2023 increased by 6.5% to RMB83.6 million.
- Net income attributable to ACG surged by 324.1% to RMB8.6 million in Q4 2023.
- Fiscal Year 2023 net revenues increased by 7.2% to RMB221.6 million.
- Net loss attributable to ACG narrowed to RMB33.7 million in Fiscal Year 2023.
- Closed 2023 with $8.5 million in cash and cash equivalents, up 9.4% from the end of 2022.
- Management focused on growth in core portfolio training services and overseas study counseling services.
- ACG aims to enhance financial performance in 2024 through diversification and expansion of course offerings and institutional partnerships.
- None.
Insights
The reported increase in student enrollment and portfolio training credit hours for ATA Creativity Global (ACG) is a positive indicator of the company's growth trajectory in the education sector. The 11.3% rise in enrollment suggests a robust demand for ACG's services, which is critical as the education industry is highly sensitive to student numbers. This growth aligns with broader industry trends where personalized and career-focused education programs are gaining popularity.
The substantial jump in net income for the fourth quarter, a 324.1% increase year-over-year, is significant as it demonstrates the company's ability to convert revenue growth into profit. This is particularly noteworthy given that operating expenses did not rise substantially, indicating improved operational efficiency. Investors may interpret these results as a sign of a strong management team capable of driving profitability while expanding services.
However, the reported net loss for the fiscal year, despite narrowing from the previous year, still raises concerns. While the company is on a path to recovery, the lingering losses indicate that challenges remain in achieving sustained profitability. The market will be watching closely to see if the positive trends in quarterly results can translate into annual gains in the coming fiscal years.
ACG's financial performance, particularly the increased net revenues and narrowed losses, reflects a company that is potentially on the cusp of a turnaround. The reported 7.2% increase in net revenues for the fiscal year is a modest yet steady growth, which is a good sign for investors. The gross margin improvement, from 60.6% to 62.6% in the fourth quarter, suggests that ACG is not only increasing its revenues but also becoming more efficient in its cost structure.
From a financial perspective, the increase in cash and cash equivalents by 9.4% to $8.5 million provides ACG with a safety net and the ability to invest in future growth opportunities. However, investors should be mindful of the company's net loss position, as it indicates that ACG has not yet achieved a stable financial footing. The management's focus on operating efficiencies and the expectation of enhanced financial performance in 2024 will be critical factors in evaluating the company's investment potential.
It's worth noting that the company's use of both GAAP and non-GAAP measures provides a more nuanced view of its financial health. The exclusion of share-based compensation and foreign exchange losses in the non-GAAP measures suggests that these factors are significant enough to warrant separate consideration when assessing the company's core operating performance.
ACG's strategic expansion into portfolio training and overseas study counselling services is timely, as there is an increasing global trend toward international education and creative arts. The company's focus on diversifying its course offerings and tailoring them to different student needs is indicative of a responsive business model that adapts to market demands.
The introduction of the ACG International Arts Foundation Program Center and the diploma program in cooperation with Raffles College of Higher Education in Singapore are strategic moves that could potentially create new revenue streams and strengthen the company's market position. By offering a pathway from junior high school to a bachelor’s degree, ACG is positioning itself as a comprehensive education provider, which could attract a broader student base.
However, the education industry is highly competitive and ACG's initiatives will need to be effectively marketed and delivered to capitalize on these opportunities. The success of these programs and partnerships will be critical in determining ACG's ability to sustain and accelerate its growth in the long term.
Conference Call on Tuesday, March 26, 2024, at 9 p.m. ET with Accompanying Investor Presentation
BEIJING, China, March 26, 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 preliminary unaudited financial results for the quarter and year ended December 31, 2023 (“Fourth Quarter 2023” and “Fiscal Year 2023”, respectively).
Fourth Quarter 2023 and Fiscal Year 2023 Highlights
- During Fourth Quarter 2023, student enrollment was 1,011, an increase of
11.3% from 908 in the prior-year period. Of the 1,011 students, 648 were enrolled in ACG’s portfolio training programs, compared to 574 in the prior-year period. 48,421 portfolio training credit hours were delivered during Fourth Quarter 2023, an increase of3.3% compared to 46,894 in the prior-year period. - Fourth Quarter 2023 net revenues increased
6.5% to RMB83.6 million (US$11.8 million ), from RMB78.5 million in the prior-year period. - Fourth Quarter 2023 net income attributable to ACG increased
324.1% to RMB8.6 million (US$1.2 million ), from RMB2.0 million in the prior-year period. - Fiscal Year 2023 net revenues increased
7.2% to RMB221.6 million (US$31.2 million ), from RMB206.8 million in the prior year. - Fiscal Year 2023 net loss attributable to ACG narrowed to RMB33.7 million (US
$4.7 million ), from net loss attributable to ACG of RMB47.9 million in the prior year. - RMB60.2 million (US
$8.5 million ) in cash and cash equivalents as of December 31, 2023.
Management Commentary
Mr. Kevin Ma, Chairman and CEO of ACG, stated, “We were pleased to have completed a full year of on-campus class delivery in 2023 while continuing to offer certain courses online. We saw steady improvement in our performance in the second half of the year due to growth in our core portfolio training services business and concluded 2023 on a positive note, reporting a modest increase in net revenues and narrowing losses by
Mr. Ma continued, “We were pleased to see student enrollment for Fourth Quarter 2023 grow
Outlook
Mr. Jun Zhang, President of ACG, stated, “In 2024, ACG remains focused on serving a diverse population of students coming from different backgrounds with different needs, providing an extensive portfolio of relevant course offerings, quality instruction and unending support. In the first few months of 2024, aside from our usual online Master Class programs and the Shanghai Fashion Week 2024 project, we also hosted the 2024 Arts Study Tour to U.S. universities, taking students who aim to continue their creative studies at American arts institutions to visit the campuses of eight prestigious schools in New York, Rhode Island and Los Angeles. Designed to accommodate students interested in various art genres, we had hosted this popular program for seven years prior to the COVID-19 pandemic. Students benefit from its immersive experience and opportunities to communicate with professors face to face. This is the first year we have hosted this tour since the pandemic, and we are pleased that it continues to be valuable to students. We launched the ACG International Arts Foundation Program Center (the ‘Foundation Center’) in 2021, which has been delivering accredited international arts and introductory curriculum to students. At the start of the 2023-24 school year, the Foundation Center introduced a diploma program in cooperation with Raffles College of Higher Education in Singapore, which enables junior high school graduates to continue their education through a one-year foundation program in Beijing followed by a three-year bachelor’s program in Singapore, upon the completion of which they can receive a bachelor’s degree. We are working to expand our institutional partnerships and teaching resources as we continue growing our portfolio training and other lines of business. We expect to continue improving our operating efficiencies, which will drive enhanced financial performance in 2024.”
Operating Review
Enrollment Update
ACG student enrollment for Fourth Quarter 2023 was 1,011, of which 648 were enrolled in portfolio training programs, which consisted of time-based programs and project-based programs.
A total of 48,421 credit hours were delivered for portfolio training programs during Fourth Quarter 2023, of which 15,737 credit hours were delivered for time-based programs and 32,684 credit hours were delivered for project-based programs. These courses were delivered either in person through ACG’s nationwide training center network or via online platform.
The following is a summary of the credit hours delivered for ACG’s portfolio training programs for Fourth Quarter 2023, compared to those for the prior-year period:
| Fourth Quarter Ended December 31, 2023 | Fourth Quarter Ended December 31, 2022 | % Change | |||||||||||
| No. of Credit Hours | No. of Credit Hours | ||||||||||||
| Time-based Program | 15,737 | 15,780 | (0.3 | %) | |||||||||
| Project-based Program | 32,684 | 31,114 | 5.0 | % | |||||||||
| Total | 48,421 | 46,894 | 3.3 | % | |||||||||
During Fourth Quarter 2023, 363 students were enrolled in ACG’s other programs, which primarily consisted of overseas study counselling services and research-based learning services.
Fourth Quarter 2023 Financial Review – GAAP Results
ACG’s total net revenues for Fourth Quarter 2023 were RMB83.6 million (US
Gross profit for Fourth Quarter 2023 was RMB52.4 million (US
Total operating expenses for Fourth Quarter 2023 were RMB43.3 million (US
Income from operations for Fourth Quarter 2023 was RMB9.1 million (US
Net income attributable to ACG for Fourth Quarter 2023 increased
For Fourth Quarter 2023, basic and diluted earnings per common share attributable to ACG were both RMB0.14 (US
Fiscal Year 2023 Financial Review – GAAP Results
ACG’s total net revenues for Fiscal Year 2023 was RMB221.6 million (US
Gross profit for Fiscal Year 2023 was RMB114.7 million (US
Total operating expenses for Fiscal Year 2023 decreased to RMB156.2 million (US
Loss from operations for Fiscal Year 2023 narrowed to RMB41.5 million (US
Net loss attributable to ACG for Fiscal Year 2023 narrowed to RMB33.7 million (US
For Fiscal Year 2023, basic and diluted losses per common share attributable to ACG were both RMB0.54 (US
Non-GAAP Measures
Adjusted net loss attributable to ACG for Fiscal Year 2023, which excludes share-based compensation expense and foreign currency exchange losses (gains), net (non-GAAP), was RMB30.6 million (US
Basic and diluted losses per common share attributable to ACG excluding share-based compensation expense and foreign currency exchange losses (gains), net (non-GAAP) for Fiscal Year 2023, were RMB0.49 (US
Please see the note about non-GAAP measures and the reconciliation table at the end of this press release.
Other Data
The number of weighted average ADSs used to calculate basic and diluted earnings per ADS for Fourth Quarter 2023 were 31.4 million and 31.7 million, respectively. The number of weighted average ADSs used to calculate basic and diluted losses per ADS for Fiscal Year 2023 were both 31.4 million. Each ADS represents two common shares.
Balance Sheet Highlights
As of December 31, 2023, ACG’s cash and cash equivalents were RMB60.2 million (US
Guidance for Fiscal Year 2024
ACG expects to achieve total net revenues of between RMB233 million and RMB255 million for the year ending December 31, 2024, representing a year-over-year increase of
Conference Call and Webcast Information (With Accompanying Presentation)
ACG will host a conference call at 9 p.m. Eastern Time on Tuesday, March 26, 2024 (9 a.m. Beijing time on Wednesday, March 27, 2024), during which management will discuss the results of the fourth quarter and year ended December 31, 2023.
To participate in the conference call, please use the following dial-in numbers about 10 minutes prior to the scheduled conference call time:
| U.S. & Canada (Toll-Free): | +1 (877) 407-9122 | |
| International (Toll): | +1 (201) 493-6747 |
| Local Access | ||||
| China: | (400) 120 2840 | |||
| Hong Kong: | (800) 965561 | |||
A live webcast of the conference call can be accessed at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=F3ofUV5e.
An accompanying slide presentation will also be made available 30 minutes prior to the conference call at the investor relations section of ACG’s website (https://ir.atai.net.cn/). To listen to the webcast, please visit ACG’s website a few minutes prior to the start of the call to register, download, and install any necessary audio software.
A replay will be available shortly after the call and will remain available for 90 days.
About ATA Creativity Global
ATA Creativity Global is an international educational services company focused on providing quality learning experiences that cultivate and enhance students’ creativity. ATA Creativity Global offers a wide range of education services consisting primarily of portfolio training, research-based learning services, overseas study counselling and other educational services through its training center network. For more information, please visit ACG’s website at www.atai.net.cn.
Cautionary Note Regarding Forward-looking Statements
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “future,” “intend,” “look forward to,” “outlook,” “guidance,” “plan,” “should,” “will,” and similar terms and include, among other things, statements regarding ACG’s future growth and results of operations; ACG’s plans for mergers and acquisitions generally; ACG’s growth strategy, anticipated growth prospects and subsequent business activities; ACG’s 2024 guidance; market demand for, and market acceptance and competitiveness of, ACG’s portfolio training programs and other education services.
The factors that could cause the Company’s actual financial and operating results to differ from what the Company currently anticipates may include its ability to develop and create content that could accommodate needs of potential students, its ability to provide effective creative related international education services and control sales and marketing expenses, its recognition in the marketplace for services it delivered and branding it established, its ability to maintain market share amid increasing competition, its ability to identify and execute on M&A opportunities within the education sector and its ability to integrate the acquired business, the economy of China, uncertainties with respect to China’s legal and regulatory environments, the impact of the political tensions between the United States and China or other international tensions, and the impact of actual or potential international trade or military conflicts, and other factors stated in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”).
The financial information contained in this release should be read in conjunction with the consolidated financial statements and related notes included in the Company’s annual report on Form 20-F for its fiscal year ended December 31, 2022, and other filings that ACG has made with the SEC. The filings are available on the SEC’s website at www.sec.gov and at ACG’s website at www.atai.net.cn. For additional information on the risk factors that could adversely affect the Company’s business, financial conditions, results of operations, and prospects, please see the “Risk Factors” section of the Company’s Form 20-F for the fiscal year ended December 31, 2022.
The forward-looking statements in this release involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates, and projections about ACG and the markets in which it operates. The Company undertakes no obligation to update forward-looking statements, which speak only as of the date of this release, to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that its expectations and assumptions expressed in these forward-looking statements are reasonable, the Company cannot assure you that its expectations and assumptions will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
Currency Convenience Translation
The Company’s financial information is stated in Renminbi (“RMB”), the currency of the People’s Republic of China. The translations of RMB amounts for the quarter and year ended December 31, 2023, into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB7.0999 to US
About Non-GAAP Financial Measures
To supplement ACG’s consolidated financial information presented in accordance with U.S. GAAP, ACG uses the following non-GAAP financial measures: net income (loss) excluding share-based compensation expense and foreign currency exchange gain or loss, and basic and diluted earnings (losses) per common share and ADS excluding share-based compensation expense and foreign currency exchange gain or loss.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. ACG believes these non-GAAP financial measures provide meaningful supplemental information about its performance by excluding share- based compensation expense and foreign currency exchange gain or loss, which may not be indicative of its operating performance.
ACG believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to ACG’s historical performance. ACG computes its non-GAAP financial measures using a consistent method from period to period. ACG believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP net income (loss) excluding share-based compensation expense and foreign currency exchange gain or loss and basic and diluted earnings (losses) per common share and per ADS excluding share-based compensation expense and foreign currency exchange gain or loss is that share-based compensation charges and foreign currency exchange gain or loss have been, and are expected to continue to be for the foreseeable future, a significant recurring expense in ACG’s business.
Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The table captioned “Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures” shown at the end of this news release has more details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures used by ACG.
For more information on our company, please contact the following individuals:
| At the Company | Investor Relations | |
| ATA Creativity Global | The Equity Group Inc. | |
| Ruobai Sima, CFO | Carolyne Y. Sohn, Vice President | |
| +86 10 6518 1133 x 5518 | 408-538-4577 | |
| simaruobai@acgedu.cn | csohn@equityny.com | |
| Alice Zhang, Associate | ||
| 212-836-9610 | ||
| azhang@equityny.com |
| ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| December 31, | December 31, | December 31, | ||||||||
| 2022 | 2023 | 2023 | ||||||||
| RMB | RMB | USD | ||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | 54,980,199 | 60,167,232 | 8,474,377 | |||||||
| Accounts receivable | 5,852,038 | 2,235,490 | 314,862 | |||||||
| Prepaid expenses and other current assets | 4,430,285 | 8,042,169 | 1,132,716 | |||||||
| Total current assets | 65,262,522 | 70,444,891 | 9,921,955 | |||||||
| Long-term investments | 38,000,000 | 38,000,000 | 5,352,188 | |||||||
| Property and equipment, net | 32,760,976 | 30,235,985 | 4,258,649 | |||||||
| Intangible assets, net | 76,119,444 | 58,886,111 | 8,293,935 | |||||||
| Goodwill | 196,289,492 | 196,289,492 | 27,646,797 | |||||||
| Other non-current assets | 28,415,794 | 31,691,417 | 4,463,643 | |||||||
| Right-of-use assets | 37,616,541 | 23,391,247 | 3,294,588 | |||||||
| Total assets | 474,464,769 | 448,939,143 | 63,231,755 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accrued expenses and other payables | 55,904,510 | 49,146,103 | 6,922,083 | |||||||
| Lease liabilities-current | 16,920,429 | 13,110,449 | 1,846,568 | |||||||
| Deferred revenues | 219,717,574 | 252,145,949 | 35,514,014 | |||||||
| Total current liabilities | 292,542,513 | 314,402,501 | 44,282,665 | |||||||
| Lease liabilities-non-current | 19,528,763 | 9,496,422 | 1,337,543 | |||||||
| Deferred income tax liabilities | 18,879,303 | 12,066,513 | 1,699,533 | |||||||
| Total liabilities | 330,950,579 | 335,965,436 | 47,319,741 | |||||||
| Shareholders’ equity: | ||||||||||
| Common shares | 4,720,147 | 4,730,128 | 666,225 | |||||||
| Treasury shares | (8,626,894 | ) | (8,201,046 | ) | (1,155,093 | ) | ||||
| Additional paid-in capital | 542,058,092 | 545,222,465 | 76,792,978 | |||||||
| Accumulated other comprehensive loss | (37,003,085 | ) | (37,004,507 | ) | (5,211,976 | ) | ||||
| Accumulated deficit | (358,048,927 | ) | (391,709,172 | ) | (55,171,083 | ) | ||||
| Total shareholders’ equity attributable to ACG | 143,099,333 | 113,037,868 | 15,921,051 | |||||||
| Non-redeemable non-controlling interests | 414,857 | (64,161 | ) | (9,037 | ) | |||||
| Total shareholders’ equity | 143,514,190 | 112,973,707 | 15,912,014 | |||||||
| Commitments and contingencies | — | — | — | |||||||
| Total liabilities and shareholders’ equity | 474,464,769 | 448,939,143 | 63,231,755 | |||||||
| ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||
| Three-month Period Ended | |||||||||||||||
| December 31, | December 31, | December 31, | |||||||||||||
| 2022 | 2023 | 2023 | |||||||||||||
| RMB | RMB | USD | |||||||||||||
| Net revenues | 78,537,296 | 83,608,695 | 11,776,038 | ||||||||||||
| Cost of revenues | 30,929,463 | 31,242,849 | 4,400,463 | ||||||||||||
| Gross profit | 47,607,833 | 52,365,846 | 7,375,575 | ||||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 2,407,234 | 1,651,359 | 232,589 | ||||||||||||
| Sales and marketing | 20,262,743 | 20,721,614 | 2,918,578 | ||||||||||||
| General and administrative | 20,041,141 | 20,909,931 | 2,945,102 | ||||||||||||
| Total operating expenses | 42,711,118 | 43,282,904 | 6,096,269 | ||||||||||||
| Other operating income, net | — | 28,208 | 3,973 | ||||||||||||
| Income from operations | 4,896,715 | 9,111,150 | 1,283,279 | ||||||||||||
| Other income (expense): | |||||||||||||||
| Gain on deconsolidation of a subsidiary and others, net | 625,631 | — | — | ||||||||||||
| Interest income, net of interest expenses | 203,113 | 270,599 | 38,113 | ||||||||||||
| Foreign currency exchange gains (losses), net | 8,764 | (4,496 | ) | (633 | ) | ||||||||||
| Income before income taxes | 5,734,223 | 9,377,253 | 1,320,759 | ||||||||||||
| Income tax expense | 3,967,852 | 823,327 | 115,963 | ||||||||||||
| Net income | 1,766,371 | 8,553,926 | 1,204,796 | ||||||||||||
| Net loss attributable to non-redeemable non-controlling interests | (250,790 | ) | (1,676 | ) | (236 | ) | |||||||||
| Net income attributable to ACG | 2,017,161 | 8,555,602 | 1,205,032 | ||||||||||||
| Other comprehensive loss: | |||||||||||||||
| Foreign currency translation adjustment, net of nil income taxes | (100,062 | ) | (72,568 | ) | (10,221 | ) | |||||||||
| Comprehensive income attributable to ACG | 1,917,099 | 8,483,034 | 1,194,811 | ||||||||||||
| Basic and diluted earnings per common share attributable to ACG | 0.03 | 0.14 | 0.02 | ||||||||||||
| Basic and diluted earnings per ADS attributable to ACG | 0.06 | 0.28 | 0.04 | ||||||||||||
| ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||||||||||
| Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | ||||||||||||||
| 2022 | 2023 | 2023 | ||||||||||||||
| RMB | RMB | USD | ||||||||||||||
| Net revenues | 206,820,874 | 221,618,968 | 31,214,379 | |||||||||||||
| Cost of revenues | 104,315,856 | 106,961,759 | 15,065,249 | |||||||||||||
| Gross profit | 102,505,018 | 114,657,209 | 16,149,130 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 6,790,791 | 4,629,880 | 652,105 | |||||||||||||
| Sales and marketing | 75,265,726 | 78,737,492 | 11,089,944 | |||||||||||||
| General and administrative | 77,051,580 | 72,816,606 | 10,256,004 | |||||||||||||
| Total operating expenses | 159,108,097 | 156,183,978 | 21,998,053 | |||||||||||||
| Other operating income, net | 16,515 | 30,865 | 4,347 | |||||||||||||
| Loss from operations | (56,586,564 | ) | (41,495,904 | ) | (5,844,576 | ) | ||||||||||
| Other income (expense): | ||||||||||||||||
| Gain on deconsolidation of subsidiaries and others, net | 1,308,627 | — | — | |||||||||||||
| Interest income, net of interest expenses | 756,886 | 978,530 | 137,823 | |||||||||||||
| Foreign currency exchange gains (losses), net | 5,436 | (4,876 | ) | (687 | ) | |||||||||||
| Loss before income taxes | (54,515,615 | ) | (40,522,250 | ) | (5,707,440 | ) | ||||||||||
| Income tax benefit | (5,921,384 | ) | (6,811,709 | ) | (959,409 | ) | ||||||||||
| Net loss | (48,594,231 | ) | (33,710,541 | ) | (4,748,031 | ) | ||||||||||
| Net loss attributable to non-redeemable non-controlling interests | (701,322 | ) | (50,296 | ) | (7,084 | ) | ||||||||||
| Net loss attributable to ACG | (47,892,909 | ) | (33,660,245 | ) | (4,740,947 | ) | ||||||||||
| Other comprehensive income (loss): | ||||||||||||||||
| Foreign currency translation adjustment, net of nil income taxes | 556,762 | (1,422 | ) | (200 | ) | |||||||||||
| Comprehensive loss attributable to ACG | (47,336,147 | ) | (33,661,667 | ) | (4,741,147 | ) | ||||||||||
| Basic and diluted losses per common share attributable to ACG | (0.76 | ) | (0.54 | ) | (0.08 | ) | ||||||||||
| Basic and diluted losses per ADS attributable to ACG | (1.52 | ) | (1.08 | ) | (0.16 | ) | ||||||||||
| RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES | |||||||||||||
| Three-month Period Ended | Year Ended | ||||||||||||
| December 31, | December 31, | December 31, | December 31, | ||||||||||
| 2022 | 2023 | 2022 | 2023 | ||||||||||
| RMB | RMB | RMB | RMB | ||||||||||
| GAAP net income (loss) attributable to ACG | 2,017,161 | 8,555,602 | (47,892,909 | ) | (33,660,245 | ) | |||||||
| Share-based compensation expenses | 355,063 | 1,038,224 | 1,459,755 | 3,068,041 | |||||||||
| Foreign currency exchange losses (gains), net | (8,764 | ) | 4,496 | (5,436 | ) | 4,876 | |||||||
| Non-GAAP adjusted net income (loss) attributable to ACG | 2,363,460 | 9,598,322 | (46,438,590 | ) | (30,587,328 | ) | |||||||
| GAAP earnings (losses) per common share attributable to ACG | |||||||||||||
| Basic and diluted | 0.03 | 0.14 | (0.76 | ) | (0.54 | ) | |||||||
| Non-GAAP adjusted earnings (losses) per common share attributable to ACG | |||||||||||||
| Basic and diluted | 0.04 | 0.15 | (0.74 | ) | (0.49 | ) | |||||||
FAQ
What was the percentage increase in student enrollment for ATA Creativity Global (AACG) in Fourth Quarter 2023 compared to the prior year period?
How much did net revenues increase in Fourth Quarter 2023 for ATA Creativity Global (AACG)?
What was the percentage increase in net income attributable to ACG in Fourth Quarter 2023 compared to the prior year period?
How much did net revenues increase for Fiscal Year 2023 for ATA Creativity Global (AACG)?
What was the net loss attributable to ACG in Fiscal Year 2023?
How much cash and cash equivalents did ATA Creativity Global (AACG) have as of December 31, 2023?
What is ATA Creativity Global (AACG) focusing on to enhance financial performance in 2024?
