ATA Creativity Global Reports Second Quarter 2024 Financial Results
ATA Creativity Global (ACG) (Nasdaq: AACG) reported its Second Quarter 2024 financial results, showing improvements in key metrics.
Student enrollment rose 16.8% to 1,084, with 42,841 credit hours delivered, a 49.3% increase from the prior year.
Net revenues increased by 42.8% to RMB51.8 million (US$7.1 million), and the net loss narrowed to RMB16.8 million (US$2.3 million), compared to RMB17.2 million the previous year.
First Half 2024 net revenues were up 27.2% to RMB99.9 million (US$13.7 million), with a corresponding decrease in net loss to RMB34.7 million (US$4.8 million).
ACG reiterated its guidance of total net revenues between RMB233 million and RMB255 million for the fiscal year ending December 31, 2024.
ATA Creativity Global (ACG) (Nasdaq: AACG) ha riportato i risultati finanziari del Secondo Trimestre 2024, mostrando miglioramenti nei principali indicatori.
Le iscrizioni degli studenti sono aumentate del 16,8% raggiungendo 1.084, con 42.841 ore di credito erogate, un incremento del 49,3% rispetto all'anno precedente.
I ricavi netti sono aumentati del 42,8% a RMB51,8 milioni (US$7,1 milioni), e la perdita netta si è ristretta a RMB16,8 milioni (US$2,3 milioni), rispetto ai RMB17,2 milioni dell'anno precedente.
I ricavi netti del primo semestre 2024 sono aumentati del 27,2% a RMB99,9 milioni (US$13,7 milioni), con una corrispondente diminuzione della perdita netta a RMB34,7 milioni (US$4,8 milioni).
ACG ha ribadito la sua stima di ricavi netti totali compresi tra RMB233 milioni e RMB255 milioni per l'anno fiscale che termina il 31 dicembre 2024.
ATA Creativity Global (ACG) (Nasdaq: AACG) informó sus resultados financieros del Segundo Trimestre 2024, mostrando mejoras en métricas clave.
La matrícula estudiantil aumentó un 16.8% alcanzando 1,084, con 42,841 horas de crédito entregadas, un aumento del 49.3% en comparación con el año anterior.
Los ingresos netos crecieron un 42.8% a RMB51.8 millones (US$7.1 millones), y la pérdida neta se redujo a RMB16.8 millones (US$2.3 millones), en comparación con RMB17.2 millones del año anterior.
Los ingresos netos del primer semestre de 2024 aumentaron un 27.2% a RMB99.9 millones (US$13.7 millones), con una disminución correspondiente en la pérdida neta a RMB34.7 millones (US$4.8 millones).
ACG reiteró su guía de ingresos netos totales entre RMB233 millones y RMB255 millones para el año fiscal que finaliza el 31 de diciembre de 2024.
ATA Creativity Global (ACG) (Nasdaq: AACG)은 2024년 2분기 재무 결과를 발표하며 주요 지표에서 개선을 보여주었습니다.
학생 등록 수는 16.8% 증가한 1,084명에 이르렀으며, 제공된 학점 시간은 42,841시간으로 전년 대비 49.3% 증가했습니다.
순수익은 42.8% 증가하여 RMB51.8백만(미화 710만 달러)에 도달했으며, 순손실은 RMB16.8백만(미화 230만 달러)로 좁혀졌고, 이는 전년의 RMB17.2백만과 비교됩니다.
2024년 상반기 순수익은 27.2% 증가한 RMB99.9백만(미화 1,370만 달러)으로, 순손실은 RMB34.7백만(미화 480만 달러)로 감소했습니다.
ACG는 2024년 12월 31일 종료되는 회계연도에 대한 총 순수익 가이드를 RMB233백만에서 RMB255백만 사이로 다시 확인했습니다.
ATA Creativity Global (ACG) (Nasdaq: AACG) a annoncé ses résultats financiers pour le deuxième trimestre 2024, montrant des améliorations dans les indicateurs clés.
Les inscriptions des étudiants ont augmenté de 16,8 % pour atteindre 1 084, avec 42 841 heures de crédit délivrées, soit une augmentation de 49,3 % par rapport à l'année précédente.
Les revenus nets ont augmenté de 42,8 % pour atteindre RMB51,8 millions (7,1 millions de dollars US), et la perte nette s'est réduite à RMB16,8 millions (2,3 millions de dollars US), contre RMB17,2 millions l'année précédente.
Les revenus nets du premier semestre 2024 ont augmenté de 27,2 % pour atteindre RMB99,9 millions (13,7 millions de dollars US), avec une diminution correspondante de la perte nette à RMB34,7 millions (4,8 millions de dollars US).
ACG a réaffirmé ses prévisions de revenus nets totalisant entre RMB233 millions et RMB255 millions pour l'exercice se terminant le 31 décembre 2024.
ATA Creativity Global (ACG) (Nasdaq: AACG) hat die finanziellen Ergebnisse des zweiten Quartals 2024 veröffentlicht und Verbesserungen in den wichtigsten Kennzahlen gezeigt.
Die Einschreibung der Studierenden stieg um 16,8% auf 1.084, bei 42.841 erbrachten Kreditstunden, was einem Anstieg von 49,3% im Vergleich zum Vorjahr entspricht.
Die Nettoumsätze erhöhten sich um 42,8% auf RMB51,8 Millionen (US$7,1 Millionen), und der Nettoverlust verringerte sich auf RMB16,8 Millionen (US$2,3 Millionen), verglichen mit RMB17,2 Millionen im Vorjahr.
Die Nettoumsätze des ersten Halbjahres 2024 stiegen um 27,2% auf RMB99,9 Millionen (US$13,7 Millionen), mit einer entsprechenden Verringerung des Nettoverlusts auf RMB34,7 Millionen (US$4,8 Millionen).
ACG bekräftigte seine Prognose für die Nettoumsätze, die im Geschäftsjahr bis zum 31. Dezember 2024 zwischen RMB233 Millionen und RMB255 Millionen liegen sollen.
- Net revenues for Q2 2024 rose 42.8% to RMB51.8 million (US$7.1 million).
- Student enrollment increased 16.8% to 1,084 in Q2 2024.
- Gross margin improved to 49.6% in Q2 2024, up from 39.5%.
- Net revenues for First Half 2024 increased by 27.2% to RMB99.9 million (US$13.7 million).
- Gross profit for First Half 2024 increased by 44% to RMB47.6 million (US$6.6 million).
- ACG's guidance of net revenues for 2024 is between RMB233 million and RMB255 million.
- Net loss attributable to ACG for Q2 2024 was RMB16.8 million (US$2.3 million).
- Operating expenses for Q2 2024 increased by 30.2% to RMB46.5 million (US$6.4 million).
- Working capital deficit increased to RMB296.1 million (US$40.7 million) as of June 30, 2024.
Insights
ATA Creativity Global's Q2 2024 results show significant improvement in key metrics. Net revenues increased
The company's gross margin expanded to
While still reporting a net loss, ACG narrowed it to
ACG's strategic focus on portfolio training and overseas study counselling is paying off. The
The success of initiatives like the SDG Boot Camp and Arts Education Exhibition shows ACG's commitment to providing unique, value-added experiences. These events not only serve as student acquisition channels but also enhance ACG's brand reputation. The company's ability to adapt to market needs and offer diverse, high-quality programs positions it well for continued growth in the creative education sector.
ACG's performance reflects the recovering demand for international education services in China post-pandemic. The company's focus on creative arts education aligns with the growing interest in diverse career paths among Chinese students. The expansion of research-based learning experiences and international partnerships caters to the trend of seeking unique, experiential learning opportunities.
However, ACG faces challenges in a highly competitive market. The increased operating expenses, particularly in sales and marketing, indicate the need for aggressive student acquisition strategies. The company's ability to maintain growth while improving profitability will be crucial. The reiteration of full-year guidance suggests management's confidence, but investors should watch for consistent execution in the traditionally stronger second half of the year.
Conference Call on Wednesday, August 7, 2024, at 9:00 p.m. ET with Accompanying Investor Presentation
BEIJING, Aug. 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 second quarter and six months ended June 30, 2024 (“Second Quarter 2024” and “First Half 2024”, respectively).
Second Quarter 2024 and First Half 2024 Highlights
- During Second Quarter 2024, student enrollment was 1,084, representing an increase of
16.8% from 928 in the prior-year period. Of the 1,084 students, 612 were enrolled in ACG’s portfolio training programs. 42,841 credit hours were delivered during Second Quarter 2024, an increase of49.3% compared to 28,698 in the prior-year period. - Second Quarter 2024 net revenues increased
42.8% to RMB51.8 million (US$7.1 million ), from RMB36.2 million in the prior-year period. - Second Quarter 2024 net loss attributable to ACG narrowed to RMB16.8 million (US
$2.3 million ), from net loss attributable to ACG of RMB17.2 million in the prior-year period. - First Half 2024 net revenues increased
27.2% to RMB99.9 million (US$13.7 million ), from RMB78.6 million in the prior-year period. - First Half 2024 net loss attributable to ACG was RMB34.7 million (US
$4.8 million ), compared to net loss attributable to ACG of RMB35.0 million in the prior-year period. - RMB40.1 million (US
$5.5 million ) in cash and cash equivalents as of June 30, 2024.
Management Commentary
Mr. Kevin Ma, Chairman and CEO of ACG, stated, “We are pleased to see that our recruitment efforts have continued to yield positive results in our core portfolio training services business, driving student enrollment growth and increasing total credit hours delivered by
Mr. Ma continued, “Following the successful execution and overwhelmingly positive feedback from our 70 participating students and teaching staff in May, we hosted a second session of the United Nations Sustainable Development Goals Arts Boot Camp (the ‘SDG Boot Camp’) in July. The SDG Boot Camp was once again well received by students, and we were pleased to have another opportunity to partner with the UN and UNESCO on this project. During Second Quarter 2024, we hosted the ACG Arts Education Exhibition across five major cities in China, sharing our knowledge of the options available to students interested in a creative arts education, as well as bringing in admission committee officers from prestigious overseas arts institutions to provide insights on the application process. We believe these events increase ACG’s market exposure and serve as a student acquisition channel while providing a valuable opportunity for prospective students to gain a better understanding of a range of schools and their programs and philosophies. Through our diversified portfolio of offerings, we remain committed to enabling positive outcomes for our students.”
Outlook
Mr. Jun Zhang, President of ACG, stated, “This summer we launched a variety of research-based learning experiences for students across different creative disciplines and abilities. In addition to our in-person Master Class projects and Chinese intangible cultural heritage-themed camps in Dunhuang, Gansu Province and west Sichuan Province, we are hosting two campus tours in Tokyo and multiple cities in the United States, providing participating students with an immersive on-campus experience and the opportunity to get a glimpse of the inner workings of global enterprises in industries such as fashion, gaming and animation production. We are also collaborating with University of The Arts London (‘UAL’) on a summer school project where students take classes at the UAL campus and experience European history and culture in one of the world’s most vibrant cities. In July, ACG partnered with University College London (‘UCL’) Bartlett Development Planning Unit to host a two-week summer lab in Chengdu, Sichuan Province. Through a series of lectures and a design workshop led by UCL staff, the summer lab focused on sustainable urban development and the potential of citizen participation, providing students an opportunity to reflect on real day-to-day local life from a practical and sustainable urban design perspective. We are pleased to see so many students, both returning and new, taking advantage of these learning experiences this summer and will continue striving to provide these types of valuable and memorable experiences in the future. The second half of the year has historically been stronger for ACG, and we anticipate this to be true in 2024 as well. We remain on track to meet revenue guidance for the year and are pleased to be reiterating the previously provided guidance range.”
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
Operating Review
Enrollment Update
ACG student enrollment for Second Quarter 2024 was 1,084, of which 612 were enrolled in its portfolio training programs, which consist of time-based programs and project-based programs.
A total of 42,841 credit hours were delivered for portfolio training programs during Second Quarter 2024, of which 16,611 credit hours were delivered for time-based programs and 26,230 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 Second Quarter 2024, compared to those for the prior-year period:
| Second Quarter Ended June 30, 2024 | Second Quarter Ended June 30, 2023 | % Change | |||||||||||
| No. of Credit Hours | No. of Credit Hours | ||||||||||||
| Time-based Program | 16,611 | 10,428 | | ||||||||||
| Project-based Program | 26,230 | 18,270 | | ||||||||||
| Total | 42,841 | 28,698 | 49.3% | ||||||||||
During Second Quarter 2024, 472 students were enrolled in ACG’s other programs, which mainly consisted of overseas study counselling services and research-based learning services.
Second Quarter 2024 Financial Review – GAAP Results
ACG’s total net revenues for Second Quarter 2024 were RMB51.8 million (US
Gross profit for Second Quarter 2024 was RMB25.7 million (US
Total operating expenses for Second Quarter 2024 were RMB46.5 million (US
Loss from operations for Second Quarter 2024 was RMB20.8 million (US
Net loss attributable to ACG for Second Quarter 2024 narrowed to RMB16.8 million (US
For Second Quarter 2024, basic and diluted losses per common share attributable to ACG were both RMB0.27 (US
First Half 2024 Financial Review – GAAP Results
ACG’s total net revenues for First Half 2024 was RMB99.9 million (US
Gross profit for First Half 2024 was RMB47.6 million (US
Total operating expenses for First Half 2024 were RMB90.1 million (US
Loss from operations for First Half 2024 was RMB42.4 million (US
Net loss attributable to ACG for First Half 2024 narrowed to RMB34.7 million (US
For First Half 2024, basic and diluted losses per common share attributable to ACG were both RMB0.55 (US
Non-GAAP Measures
Adjusted net loss attributable to ACG for First Quarter 2024, which excludes share-based compensation expense and foreign currency exchange losses, net, was RMB15.9 million (US
Basic and diluted losses per common share attributable to ACG excluding share-based compensation expense and foreign currency exchange losses, net for Second Quarter 2024, were RMB0.25 (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 both basic and diluted earnings per ADS for Second Quarter 2024 were 31.5 million. Each ADS represents two common shares.
Balance Sheet Highlights
As of June 30, 2024, ACG’s cash and cash equivalents were RMB40.1 million (US
Conference Call and Webcast Information (With Accompanying Presentation)
ACG will host a conference call at 9:00 p.m. Eastern Time on Wednesday, August 7, 2024 (9:00 a.m. Beijing time on Thursday, August 8, 2024), during which management will discuss the results of the second quarter and six months ended June 30, 2024.
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=wHIotZxS.
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 Q&A session will follow management’s prepared remarks. We welcome investor questions submitted by email in advance to the investor contacts listed below and ask individuals to please specify whether they would like to have their names and/or firms shared during the live Q&A session.
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, 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 six months ended June 30, 2024, into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB7.2672 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, | June 30, | June 30, | ||||||||
| 2023 | 2024 | 2024 | ||||||||
| RMB | RMB | USD | ||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | 60,167,232 | 40,106,501 | 5,518,838 | |||||||
| Accounts receivable | 2,235,490 | 1,357,395 | 186,784 | |||||||
| Prepaid expenses and other current assets | 8,042,169 | 22,222,582 | 3,057,929 | |||||||
| Total current assets | 70,444,891 | 63,686,478 | 8,763,551 | |||||||
| Long-term investments | 38,000,000 | 38,000,000 | 5,228,974 | |||||||
| Property and equipment, net | 30,235,985 | 35,086,840 | 4,828,110 | |||||||
| Intangible assets, net | 58,886,111 | 55,102,778 | 7,582,395 | |||||||
| Goodwill | 196,289,492 | 196,289,492 | 27,010,333 | |||||||
| Other non-current assets | 31,691,417 | 36,415,285 | 5,010,910 | |||||||
| Right-of-use assets | 23,391,247 | 40,075,823 | 5,514,617 | |||||||
| Total assets | 448,939,143 | 464,656,696 | 63,938,890 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accrued expenses and other payables | 49,146,103 | 50,169,191 | 6,903,510 | |||||||
| Lease liabilities-current | 13,110,449 | 19,209,965 | 2,643,379 | |||||||
| Deferred revenues | 252,145,949 | 290,402,679 | 39,960,739 | |||||||
| Total current liabilities | 314,402,501 | 359,781,835 | 49,507,628 | |||||||
| Lease liabilities-non-current | 9,496,422 | 19,689,898 | 2,709,420 | |||||||
| Deferred income tax liabilities | 12,066,513 | 4,982,362 | 685,596 | |||||||
| Total liabilities | 335,965,436 | 384,454,095 | 52,902,644 | |||||||
| Shareholders’ equity: | ||||||||||
| Common shares | 4,730,128 | 4,733,961 | 651,415 | |||||||
| Treasury shares | (8,201,046) | (8,201,046) | (1,128,501) | |||||||
| Additional paid-in capital | 545,222,465 | 547,095,716 | 75,282,876 | |||||||
| Accumulated other comprehensive loss | (37,004,507) | (36,968,082) | (5,086,977) | |||||||
| Accumulated deficit | (391,709,172) | (426,393,737) | (58,673,731) | |||||||
| Total shareholders’ equity attributable to ACG | 113,037,868 | 80,266,812 | 11,045,082 | |||||||
| Non-redeemable non-controlling interests | (64,161) | (64,211) | (8,836) | |||||||
| Total shareholders’ equity | 112,973,707 | 80,202,601 | 11,036,246 | |||||||
| Commitments and contingencies | — | — | — | |||||||
| Total liabilities and shareholders’ equity | 448,939,143 | 464,656,696 | 63,938,890 | |||||||
ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
| Three-month Period Ended | |||||||||||||||
| June 30, | June 30, | June 30, | |||||||||||||
| 2023 | 2024 | 2024 | |||||||||||||
| RMB | RMB | USD | |||||||||||||
| Net revenues | 36,241,790 | 51,763,927 | 7,122,953 | ||||||||||||
| Cost of revenues | 21,934,342 | 26,071,829 | 3,587,603 | ||||||||||||
| Gross profit | 14,307,448 | 25,692,098 | 3,535,350 | ||||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 817,931 | 1,153,780 | 158,765 | ||||||||||||
| Sales and marketing | 19,132,664 | 24,081,769 | 3,313,762 | ||||||||||||
| General and administrative | 15,740,080 | 21,235,504 | 2,922,103 | ||||||||||||
| Total operating expenses | 35,690,675 | 46,471,053 | 6,394,630 | ||||||||||||
| Other operating income, net | 1,553 | 20,692 | 2,847 | ||||||||||||
| Loss from operations | (21,381,674 ) | (20,758,263) | (2,856,433) | ||||||||||||
| Other income (expense): | |||||||||||||||
| Interest income, net of interest expenses | 240,246 | 310,074 | 42,668 | ||||||||||||
| Foreign currency exchange losses, net | (330) | (5,304) | (730) | ||||||||||||
| Loss before income taxes | (21,141,758 ) | (20,453,493) | (2,814,495) | ||||||||||||
| Income tax benefit | (3,911,579) | (3,699,983) | (509,135) | ||||||||||||
| Net loss | (17,230,179 ) | (16,753,510) | (2,305,360) | ||||||||||||
| Net loss attributable to non-redeemable non-controlling interests | (17,210) | (22) | (3) | ||||||||||||
| Net loss attributable to ACG | (17,212,969 ) | (16,753,488) | (2,305,357) | ||||||||||||
| Other comprehensive income: | |||||||||||||||
| Foreign currency translation adjustment, net of nil income taxes | 140,021 | 23,614 | 3,249 | ||||||||||||
| Comprehensive loss attributable to ACG | (17,072,948 ) | (16,729,874) | (2,302,108) | ||||||||||||
| Basic and diluted losses per common share attributable to ACG | (0.27) | (0.27) | (0.04) | ||||||||||||
| Basic and diluted losses per ADS attributable to ACG | (0.54) | (0.54) | (0.08) | ||||||||||||
ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
| Six-month Period Ended | |||||||||||||||
| June 30, | June 30, | June 30, | |||||||||||||
| 2023 | 2024 | 2024 | |||||||||||||
| RMB | RMB | USD | |||||||||||||
| Net revenues | 78,560,165 | 99,889,746 | 13,745,286 | ||||||||||||
| Cost of revenues | 45,493,659 | 52,287,181 | 7,194,956 | ||||||||||||
| Gross profit | 33,066,506 | 47,602,565 | 6,550,330 | ||||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 1,774,036 | 2,184,042 | 300,534 | ||||||||||||
| Sales and marketing | 37,718,678 | 46,643,677 | 6,418,384 | ||||||||||||
| General and administrative | 36,303,385 | 41,242,442 | 5,675,149 | ||||||||||||
| Total operating expenses | 75,796,099 | 90,070,161 | 12,394,067 | ||||||||||||
| Other operating income, net | 1,553 | 43,780 | 6,024 | ||||||||||||
| Loss from operations | (42,728,040) | (42,423,816) | (5,837,713) | ||||||||||||
| Other income (expense): | |||||||||||||||
| Interest income, net of interest expenses | 466,397 | 643,219 | 88,510 | ||||||||||||
| Foreign currency exchange losses, net | (382) | (5,868) | (807) | ||||||||||||
| Loss before income taxes | (42,262,025) | (41,786,465) | (5,750,010) | ||||||||||||
| Income tax benefit | (7,299,134) | (7,084,151) | (974,812) | ||||||||||||
| Net loss | (34,962,891) | (34,702,314) | (4,775,198) | ||||||||||||
| Net income (loss) attributable to non-redeemable non-controlling interests | 2,094 | (50) | (7) | ||||||||||||
| Net loss attributable to ACG | (34,964,985) | (34,702,264) | (4,775,191) | ||||||||||||
| Other comprehensive income: | |||||||||||||||
| Foreign currency translation adjustment, net of nil income taxes | 90,399 | 36,425 | 5,012 | ||||||||||||
| Comprehensive loss attributable to ACG | (34,874,586) | (34,665,839) | (4,770,179) | ||||||||||||
| Basic and diluted losses per common share attributable to ACG | (0.56) | (0.55) | (0.08) | ||||||||||||
| Basic and diluted losses per ADS attributable to ACG | (1.12) | (1.10) | (0.16) | ||||||||||||
RECONCILIATIONS OF NON-GAAP MEASURES
TO THE MOST COMPARABLE GAAP MEASURES
| Three-month Period Ended | Six-month Period Ended | |||||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||||
| RMB | RMB | RMB | RMB | |||||||||||||||||
| GAAP net loss attributable to ACG | (17,212,969) | (16,753,488) | (34,964,985) | (34,702,264) | ||||||||||||||||
| Share-based compensation expenses | 657,611 | 810,701 | 1,210,895 | 1,883,317 | ||||||||||||||||
| Foreign currency exchange losses, net | 330 | 5,304 | 382 | 5,868 | ||||||||||||||||
| Non-GAAP net loss attributable to ACG | (16,555,028) | (15,937,483) | (33,753,708) | (32,813,079) | ||||||||||||||||
| GAAP losses per common share attributable to ACG | ||||||||||||||||||||
| Basic and diluted | (0.27) | (0.27) | (0.56) | (0.55) | ||||||||||||||||
| Non-GAAP losses per common share attributable to ACG | ||||||||||||||||||||
| Basic and diluted | (0.26) | (0.25) | (0.54) | (0.52) | ||||||||||||||||
FAQ
What were the net revenues for ATA Creativity Global in Q2 2024?
How did student enrollment change for ATA Creativity Global in Q2 2024?
What was the net loss for ATA Creativity Global in Q2 2024?
What is the guidance for ATA Creativity Global's net revenues for 2024?
What were the total credit hours delivered by ATA Creativity Global in Q2 2024?
