ATA Creativity Global Reports Q3 2024 Financial Results
ATA Creativity Global (AACG) reported Q3 2024 financial results with net revenues increasing 13.1% to RMB67.3 million ($9.6 million) compared to Q3 2023. Student enrollment grew 17.9% to 1,289, with 57.8% in portfolio training programs. Despite revenue growth, the company reported a net loss of RMB14.7 million ($2.1 million), wider than the RMB7.3 million loss in Q3 2023. Gross margin decreased to 44.6% from 49.2% year-over-year. The company reiterated its fiscal year 2024 net revenue guidance of RMB233-255 million, representing 5-15% year-over-year growth.
ATA Creativity Global (AACG) ha riportato i risultati finanziari del terzo trimestre 2024, con ricavi netti in aumento del 13,1% a RMB67,3 milioni (9,6 milioni di dollari) rispetto al terzo trimestre 2023. Le iscrizioni degli studenti sono aumentate del 17,9% a 1.289, con il 57,8% in programmi di formazione portfolio. Nonostante la crescita dei ricavi, l'azienda ha registrato una perdita netta di RMB14,7 milioni (2,1 milioni di dollari), più ampia rispetto alla perdita di RMB7,3 milioni nel terzo trimestre 2023. Il margine lordo è diminuito al 44,6% dal 49,2% rispetto all'anno precedente. L'azienda ha ribadito le sue previsioni di ricavi netti per l'anno fiscale 2024 tra RMB233 e 255 milioni, rappresentando una crescita del 5-15% rispetto all'anno precedente.
ATA Creativity Global (AACG) informó los resultados financieros del tercer trimestre de 2024, con ingresos netos aumentando un 13,1% a RMB67,3 millones (9,6 millones de dólares) en comparación con el tercer trimestre de 2023. La matrícula de estudiantes creció un 17,9% hasta alcanzar 1.289, con un 57,8% en programas de formación de cartera. A pesar del crecimiento de los ingresos, la empresa reportó una pérdida neta de RMB14,7 millones (2,1 millones de dólares), más amplia que la pérdida de RMB7,3 millones en el tercer trimestre de 2023. El margen bruto disminuyó al 44,6% desde el 49,2% en comparación con el año anterior. La empresa reiteró su guía de ingresos netos para el año fiscal 2024 entre RMB233 y 255 millones, lo que representa un crecimiento del 5-15% en comparación con el año anterior.
ATA Creativity Global (AACG)은 2024년 3분기 재무 결과를 보고하였으며, 순수익은 13.1% 증가하여 RMB67.3백만(960만 달러)에 이르렀습니다. 이는 2023년 3분기와 비교한 수치입니다. 학생 등록은 17.9% 증가하여 1,289명에 도달하였으며, 포트폴리오 교육 프로그램에 대한 비율은 57.8%입니다. 수익이 증가했음에도 불구하고, 회사는 RMB14.7백만(210만 달러)의 순손실을 보고하였으며, 이는 2023년 3분기의 RMB7.3백만 손실보다 넓은 수치입니다. 총 이익률은 지난해 49.2%에서 44.6%로 감소하였습니다. 회사는 2024 회계연도 순수익 가이던스를 RMB233-255백만으로 재확인하였으며, 이는 지난해 대비 5-15% 이익 성장을 나타냅니다.
ATA Creativity Global (AACG) a annoncé ses résultats financiers du troisième trimestre 2024, avec des revenus nets en hausse de 13,1 % pour atteindre 67,3 millions RMB (9,6 millions USD) par rapport au troisième trimestre 2023. Les inscriptions des étudiants ont augmenté de 17,9 % pour atteindre 1 289, dont 57,8 % dans des programmes de formation par portefeuille. Malgré la croissance des revenus, l'entreprise a enregistré une perte nette de 14,7 millions RMB (2,1 millions USD), plus importante que la perte de 7,3 millions RMB au cours du troisième trimestre 2023. La marge brute a diminué, passant de 49,2 % à 44,6 % d'une année sur l'autre. L'entreprise a réaffirmé ses prévisions de revenus nets pour l'exercice 2024, qui devraient se situer entre 233 et 255 millions RMB, représentant une croissance de 5 à 15 % par rapport à l'année précédente.
ATA Creativity Global (AACG) berichtete über die Finanzzahlen des dritten Quartals 2024, mit einem Anstieg der Nettoerlöse um 13,1 % auf RMB67,3 Millionen (9,6 Millionen USD) im Vergleich zum dritten Quartal 2023. Die Einschreibung der Schüler stieg um 17,9 % auf 1.289, wobei 57,8 % in Portfoliotraining-Programmen lagen. Trotz des Umsatzwachstums meldete das Unternehmen einen Nett Verlust von RMB14,7 Millionen (2,1 Millionen USD), was größer ist als der Verlust von RMB7,3 Millionen im dritten Quartal 2023. Der Bruttogewinn fiel von 49,2 % auf 44,6 % im Vergleich zum Vorjahr. Das Unternehmen bekräftigte seine Umsatzprognose für das Geschäftsjahr 2024 von RMB233-255 Millionen, was einem Wachstum von 5-15 % im Jahresvergleich entspricht.
- Net revenues increased 13.1% YoY to RMB67.3 million in Q3 2024
- Student enrollment grew 17.9% to 1,289 students
- Credit hours delivered increased 19.6% compared to Q3 2023
- Portfolio training program revenues grew 7.2% YoY
- Net loss widened to RMB14.7 million from RMB7.3 million in Q3 2023
- Gross margin declined to 44.6% from 49.2% YoY
- Operating expenses increased 28.4% YoY
- Working capital deficit increased to RMB310.7 million from RMB244.0 million in December 2023
Insights
The Q3 2024 results show mixed signals for ATA Creativity Global. While net revenues increased 13.1% to
Concerning trends include declining gross margins (from
Despite revenue growth driven by portfolio training and research-based services, the expanding losses and deteriorating margins suggest operational inefficiencies that need addressing. The company's guidance for
Reports Q3 2024 Net Revenues Increase of
Reiterates Fiscal Year 2024 Net Revenue Guidance of Between RMB233 Million and RMB255 Million
Conference Call Scheduled for Thursday, November 7, at 8:00 p.m. Eastern Time (Friday, November 8, at 9:00 a.m. Beijing Time) with Accompanying Audio and Slide Webcast
BEIJING, Nov. 07, 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 third quarter (“Q3 2024”) and nine-months (“9M 2024”) periods ended September 30, 2024.
All amounts presented in U.S. dollars ($) in this news release are based on a conversion rate of RMB7.0176 to
Q3 2024 Financial Highlights
- Net revenues for Q3 2024 increased
13.1% to RMB67.3 million (or$9.6 million ), from RMB59.5 million (or$8.1 million ) in Q3 2023. - Gross profit for Q3 2024 increased
2.6% to RMB30.0 million (or$4.3 million ), from RMB29.2 million (or$4.0 million ) in Q3 2023. Gross margin was44.6% during the current period, compared to49.2% in the prior-year period. - Net loss attributable to ACG for Q3 2024 was RMB14.7 million (or
$2.1 million ), compared to net loss attributable to ACG of RMB7.3 million (or$1.0 million ) in Q3 2023.
9M 2024 Financial Highlights
- Net revenues for 9M 2024 increased
21.1% to RMB167.1 million (or$23.8 million ), from RMB138.0 million (or$18.9 million ) in 9M 2023. - Gross profit for 9M 2024 increased
24.6% to RMB77.6 million (or$11.1 million ), from RMB62.3 million (or$8.5 million ) during 9M 2023. Gross margin was46.4% during the current period, compared to45.1% during 9M 2023. - Net loss attributable to ACG for 9M 2024 was RMB49.4 million (or
$7.0 million ), compared to net loss attributable to ACG of RMB42.2 million (or$5.8 million ) in 9M 2023. - Cash and cash equivalents were RMB39.4 million (or
$5.6 million ) as of September 30, 2024.
Q3 2024 Operational Highlights
- Student enrollment during Q3 2024 was 1,289, an increase of
17.9% from 1,093 in Q3 2023.57.8% of students were enrolled in ACG’s portfolio training programs, which consist of time-based programs and project-based programs.42.2% of students were enrolled in ACG’s other programs, which mainly consist of overseas study counselling services and research-based learning services.
- Credit hours delivered during Q3 2024 were 53,492, an increase of
19.6% compared to Q3 2023.
The following is a summary of the credit hours delivered for ACG’s portfolio training programs for Q3 2024, compared to those for the prior-year period:
Third Quarter Ended September 30, 2024 | Third Quarter Ended September 30, 2023 | % Change | |||||
No. of Credit Hours | No. of Credit Hours | ||||||
Time-based Program | 16,186 | 13,624 | 18.8 | % | |||
Project-based Program | 37,306 | 31,099 | 20.0 | % | |||
Total | 53,492 | 44,723 | 19.6 | % | |||
Management Commentary
Mr. Kevin Ma, Chairman and CEO of ACG, stated, “Q3 2024 was a strong quarter for ACG in terms of net revenues and student enrollment. The
Mr. Ma continued, “During Q3 2024, we continued to expand our international exposure by hosting a variety of courses, including summer camps in London and Tokyo and a Campus Tour Trip in U.S. universities. We also offered multiple online and offline Master Classes covering various topics such as visual communication, innovation design engineering, and illustration & animation, amongst other projects. These value-adding experiences target a diversified student population, from junior high school to college students interested in studying abroad in the future. We look forward to continuing expanding our portfolio of offerings and helping students achieve positive outcomes.”
Reiterates Guidance for Fiscal Year 2024
ACG is reiterating its previously provided guidance of total net revenues of between RMB233 million and RMB255 million for the year ending December 31, 2024, which represents a year-over-year increase of
Mr. Jun Zhang, President of ACG, stated, “As we are approaching the end of the year, we believe we are on the right track to achieve our previously announced full year 2024 net revenue guidance of RMB233 million to RMB255 million. We expect portfolio training services to continue driving the overall business growth for the remainder of 2024. We continue to focus on innovation and have made substantial investments in designing and introducing new research-based learning programs and other services that reflect the trends in the arts industry and academia. Furthermore, as we continue to expand coverage in existing cities by concentrating our resources on managing larger learning centers, we are also focused on increasing the number of partnerships, domestically and internationally. We believe we are well positioned to continue to grow our business in 2025 and beyond.”
Conference Call and Webcast Information (With Accompanying Presentation)
ACG will host a conference call at 8:00 p.m. Eastern Time on Thursday, November 7 (9:00 a.m. Beijing Time on Friday, November 8), during which management will discuss Q3 2024 and 9M 2024 results.
To participate in the conference call, please connect using 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 |
China (Local Access): | (400) 120 2840 |
Hong Kong (Local Access): | (800) 965561 |
A simultaneous audio webcast including accompanying slides may be accessed via the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=tCUjiKgZ, or via the investor relations section of the Company’s website https://ir.atai.net.cn/.
For those unable to listen to the live webcast, the replay will be available on the Company’s website shortly after the conclusion of the call.
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Q3 2024 Financial Review – GAAP Results
ACG’s total net revenues for Q3 2024 of RMB67.3 million (or
- Net revenues from portfolio training programs of RMB49.4 million (or
$7.0 million ) increased7.2% as compared to Q3 2023 and accounted for73.5% of total net revenues. - Net revenues from overseas study counselling services, research-based learning services and other educational services of RMB17.9 million (or
$2.6 million ) increased33.6% as compared to Q3 2023 and accounted for26.5% of total net revenues.
Gross profit for Q3 2024 of RMB30.0 million (or
Total operating expenses for Q3 2024 were RMB47.7 million (or
- Selling expenses of RMB25.7 million (or
$3.7 million ) increased by RMB5.4 million or26.8% from Q3 2023, mainly as a result of increased number of sales personnel and other sales/marketing/event related expenses. - General & administrative expenses of RMB21.2 million (or
$3.0 million ), increased by RMB 5.6 million or35.7% from Q3 2023, mainly as a result of an increase in professional fees and business expansion-related investments. - Research and development expenses of RMB0.7 million (or
$0.1 million ), decreased by RMB0.5 million or38.6% from Q3 2023, as ACG’s system development was completed in Q2 2024.
As a result, loss from operations for Q3 2024 was RMB17.6 million (or
Basic and diluted losses per common share attributable to ACG for Q3 2024 were RMB0.23 (or
9M 2024 Financial Review – GAAP Results
ACG’s total net revenues for 9M 2024 was RMB167.1 million (or
- Net revenues from portfolio training programs of RMB125.0 million (or
$17.8 million ) increased22.9% as compared to 9M 2023 and accounted for74.8% of total net revenues. - Net revenues from overseas study counselling services, research-based learning services and other educational services of RMB42.1 million (or
$6.0 million ) increased16.1% as compared to 9M 2023 and accounted for25.2% of total net revenues.
Gross profit for 9M 2024 was RMB77.6 million (or
Total operating expenses for 9M 2024 were RMB137.7 million (or
- Selling expenses of RMB72.4 million (or
$10.3 million ) increased by RMB14.4 million or24.8% from 9M 2023, mainly as a result of higher number of sales personnel contributing to the increase in sales. - General & administrative expenses of RMB62.4 million (or
$8.9 million ) increased by RMB10.5 million or20.2% from 9M 2023, mainly as a result of higher professional fees and business expansion investments. - Research and development expenses of RMB2.9 million (or
$0.4 million ) decreased by RMB0.1 million or1.8% from 9M 2023.
As a result, loss from operations for 9M 2024 was RMB60.0 million (or
For 9M 2024, basic and diluted losses per common share attributable to ACG were RMB0.78 (or
Non-GAAP Measures
Adjusted net loss attributable to ACG for Q3 2024, which excludes share-based compensation expense and foreign currency exchange losses, net, was RMB13.9 million (or
Basic and diluted losses per common share attributable to ACG excluding share-based compensation expense and foreign currency exchange losses, net for Q3 2024, were RMB0.22 (or
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 both basic and diluted earnings per ADS for Q3 2024 were 31.5 million. Each ADS represents two common shares.
Balance Sheet Highlights
As of September 30, 2024, ACG’s cash and cash equivalents were RMB39.4 million (or
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, 2023, 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, 2023.
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 nine months ended September 30, 2024, into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB7.0176 to
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 | Lena Cati, Senior Vice President |
+86 10 6518 1133 x 5518 | 212-836-9611 |
simaruobai@acgedu.cn | lcati@equityny.com |
Alice Zhang, Associate | |
212-836-9610 | |
azhang@equityny.com | |
ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
December 31, | September 30, | September 30, | |||||||
2023 | 2024 | 2024 | |||||||
RMB | RMB | USD | |||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 60,167,232 | 39,391,127 | 5,613,191 | ||||||
Accounts receivable | 2,235,490 | 1,149,062 | 163,740 | ||||||
Prepaid expenses and other current assets | 8,042,169 | 19,733,110 | 2,811,946 | ||||||
Total current assets | 70,444,891 | 60,273,299 | 8,588,877 | ||||||
Long-term investments | 38,000,000 | 38,000,000 | 5,414,957 | ||||||
Property and equipment, net | 30,235,985 | 39,261,010 | 5,594,649 | ||||||
Intangible assets, net | 58,886,111 | 50,669,444 | 7,220,338 | ||||||
Goodwill | 196,289,492 | 196,289,492 | 27,971,029 | ||||||
Other non-current assets | 31,691,417 | 34,342,266 | 4,893,734 | ||||||
Right-of-use assets | 23,391,247 | 40,613,651 | 5,787,399 | ||||||
Total assets | 448,939,143 | 459,449,162 | 65,470,983 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
Current liabilities: | |||||||||
Accrued expenses and other payables | 49,146,103 | 51,063,959 | 7,276,558 | ||||||
Lease liabilities-current | 13,110,449 | 19,652,848 | 2,800,508 | ||||||
Deferred revenues | 252,145,949 | 300,274,793 | 42,788,816 | ||||||
Total current liabilities | 314,402,501 | 370,991,600 | 52,865,882 | ||||||
Lease liabilities-non-current | 9,496,422 | 19,992,990 | 2,848,978 | ||||||
Deferred income tax liabilities | 12,066,513 | 2,242,876 | 319,607 | ||||||
Total liabilities | 335,965,436 | 393,227,466 | 56,034,467 | ||||||
Shareholders’ equity: | |||||||||
Common shares | 4,730,128 | 4,733,961 | 674,584 | ||||||
Treasury shares | (8,201,046 | ) | (8,201,046 | ) | (1,168,640 | ) | |||
Additional paid-in capital | 545,222,465 | 547,865,450 | 78,070,202 | ||||||
Accumulated other comprehensive loss | (37,004,507 | ) | (37,066,452 | ) | (5,281,927 | ) | |||
Accumulated deficit | (391,709,172 | ) | (441,045,983 | ) | (62,848,550 | ) | |||
Total shareholders’ equity attributable to ACG | 113,037,868 | 66,285,930 | 9,445,669 | ||||||
Non-redeemable non-controlling interests | (64,161 | ) | (64,234 | ) | (9,153 | ) | |||
Total shareholders’ equity | 112,973,707 | 66,221,696 | 9,436,516 | ||||||
Commitments and contingencies | — | — | — | ||||||
Total liabilities and shareholders’ equity | 448,939,143 | 459,449,162 | 65,470,983 | ||||||
ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||
Three-month Period Ended | |||||||||||
September 30, | September 30, | September 30, | |||||||||
2023 | 2024 | 2024 | |||||||||
RMB | RMB | USD | |||||||||
Net revenues | 59,450,108 | 67,254,807 | 9,583,733 | ||||||||
Cost of revenues | 30,225,251 | 37,256,461 | 5,309,003 | ||||||||
Gross profit | 29,224,857 | 29,998,346 | 4,274,730 | ||||||||
Operating expenses: | |||||||||||
Research and development | 1,204,485 | 740,049 | 105,456 | ||||||||
Sales and marketing | 20,297,200 | 25,743,503 | 3,668,420 | ||||||||
General and administrative | 15,603,290 | 21,172,200 | 3,017,014 | ||||||||
Total operating expenses | 37,104,975 | 47,655,752 | 6,790,890 | ||||||||
Other operating income, net | 1,104 | 42,806 | 6,100 | ||||||||
Loss from operations | (7,879,014 | ) | (17,614,600 | ) | (2,510,060 | ) | |||||
Other income (expense): | |||||||||||
Interest income, net of interest expenses | 241,534 | 224,646 | 32,012 | ||||||||
Foreign currency exchange gains (losses), net | 2 | (1,800 | ) | (256 | ) | ||||||
Loss before income taxes | (7,637,478 | ) | (17,391,754 | ) | (2,478,304 | ) | |||||
Income tax benefit | (335,902 | ) | (2,739,486 | ) | (390,374 | ) | |||||
Net loss | (7,301,576 | ) | (14,652,268 | ) | (2,087,930 | ) | |||||
Net loss attributable to non-controlling interests | (50,714 | ) | (22 | ) | (3 | ) | |||||
Net loss attributable to ACG | (7,250,862 | ) | (14,652,246 | ) | (2,087,927 | ) | |||||
Other comprehensive loss: | |||||||||||
Foreign currency translation adjustment, net of nil income taxes | (19,253 | ) | (98,370 | ) | (14,018 | ) | |||||
Comprehensive loss attributable to ACG | (7,270,115 | ) | (14,750,616 | ) | (2,101,945 | ) | |||||
Basic and diluted losses per common share attributable to ACG | (0.12 | ) | (0.23 | ) | (0.03 | ) | |||||
Basic and diluted losses per ADS attributable to ACG | (0.24 | ) | (0.46 | ) | (0.06 | ) | |||||
ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||
Nine-month Period Ended | |||||||||||
September 30, | September 30, | September 30, | |||||||||
2023 | 2024 | 2024 | |||||||||
RMB | RMB | USD | |||||||||
Net revenues | 138,010,273 | 167,144,553 | 23,817,908 | ||||||||
Cost of revenues | 75,718,910 | 89,543,642 | 12,759,867 | ||||||||
Gross profit | 62,291,363 | 77,600,911 | 11,058,041 | ||||||||
Operating expenses: | |||||||||||
Research and development | 2,978,521 | 2,924,091 | 416,680 | ||||||||
Sales and marketing | 58,015,878 | 72,387,180 | 10,315,091 | ||||||||
General and administrative | 51,906,675 | 62,414,642 | 8,894,015 | ||||||||
Total operating expenses | 112,901,074 | 137,725,913 | 19,625,786 | ||||||||
Other operating income, net | 2,657 | 86,586 | 12,338 | ||||||||
Loss from operations | (50,607,054 | ) | (60,038,416 | ) | (8,555,407 | ) | |||||
Other income (expense): | |||||||||||
Interest income, net of interest expenses | 707,931 | 867,865 | 123,670 | ||||||||
Foreign currency exchange losses, net | (380 | ) | (7,668 | ) | (1,093 | ) | |||||
Loss before income taxes | (49,899,503 | ) | (59,178,219 | ) | (8,432,830 | ) | |||||
Income tax benefit | (7,635,036 | ) | (9,823,637 | ) | (1,399,857 | ) | |||||
Net loss | (42,264,467 | ) | (49,354,582 | ) | (7,032,973 | ) | |||||
Net loss attributable to non-controlling interests | (48,620 | ) | (72 | ) | (10 | ) | |||||
Net loss attributable to ACG | (42,215,847 | ) | (49,354,510 | ) | (7,032,963 | ) | |||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustment, net of nil income taxes | 71,146 | (61,945 | ) | (8,827 | ) | ||||||
Comprehensive loss attributable to ACG | (42,144,701 | ) | (49,416,455 | ) | (7,041,790 | ) | |||||
Basic and diluted losses per common share attributable to ACG | (0.67 | ) | (0.78 | ) | (0.11 | ) | |||||
Basic and diluted losses per ADS attributable to ACG | (1.34 | ) | (1.56 | ) | (0.22 | ) | |||||
RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES | |||||||||||||||
Three-month Period Ended | Nine-month Period Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||
2023 | 2024 | 2023 | 2024 | ||||||||||||
RMB | RMB | RMB | RMB | ||||||||||||
GAAP net loss attributable to ACG | (7,250,862 | ) | (14,652,246 | ) | (42,215,847 | ) | (49,354,510 | ) | |||||||
Share-based compensation expenses | 818,922 | 769,733 | 2,029,817 | 2,653,050 | |||||||||||
Foreign currency exchange losses (gains), net | (2 | ) | 1,800 | 380 | 7,668 | ||||||||||
Non-GAAP net loss attributable to ACG | (6,431,942 | ) | (13,880,713 | ) | (40,185,650 | ) | (46,693,792 | ) | |||||||
GAAP losses per common share attributable to ACG | |||||||||||||||
Basic and diluted | (0.12 | ) | (0.23 | ) | (0.67 | ) | (0.78 | ) | |||||||
Non-GAAP losses per common share attributable to ACG | |||||||||||||||
Basic and diluted | (0.10 | ) | (0.22 | ) | (0.64 | ) | (0.74 | ) | |||||||
FAQ
What was AACG's revenue growth in Q3 2024?
How much did AACG's student enrollment grow in Q3 2024?
What is AACG's revenue guidance for fiscal year 2024?