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 six months ended
June 30, 2022 (“Second Quarter 2022” and “First Half 2022”,
respectively).
Second Quarter 2022 and First Half 2022
Highlights
- During Second Quarter 2022, student enrollment was 1,018,
compared to 1,051 in the prior-year period. Of these students, 547
were enrolled in ACG’s portfolio training programs. 25,387 credit
hours were delivered during Second Quarter 2022, compared to 28,445
in the prior-year period
- Second Quarter 2022 net revenues of RMB34.0 million (US$5.1
million), compared to RMB36.8 million in the prior-year period, due
to decreased revenue contributions from portfolio training and
research-based learning services, which were primarily impacted by
temporary training center closures in major cities including
Shanghai and Beijing as a result of local COVID-19 resurgences and
citywide lockdowns
- Second Quarter 2022 net loss attributable to ACG of RMB22.1
million (US$3.3 million), compared to net income attributable to
ACG of RMB14.1 million in the prior-year period, primarily as a
result of a one-time RMB33.5 million investment gain relates to the
disposal of the K-12 education assessment business in the
prior-year period
- First Half 2022 net revenues of RMB76.2 million (US$11.4
million), compared to RMB74.4 million in the prior-year period
- First Half 2022 net loss attributable to ACG of RMB37.9 million
(US$5.7 million), compared to RMB4.9 million in the prior-year
period
- RMB60.5 million (US$9.0 million) in cash and cash equivalents
as of June 30, 2022
Management Commentary
Mr. Kevin Ma, Chairman and CEO of ACG, stated,
“During Second Quarter 2022, we remained focused on supporting our
students in their creative arts studies, particularly those who had
to shift to a distance learning delivery method due to local
COVID-19 resurgences and subsequent lockdowns. Those restrictions
in major cities such as Beijing and Shanghai have since been
lifted, but our top and bottom line results were impacted by the
decreased contributions from our portfolio training and
research-based learning services during the period as our training
centers in those core cities had to temporarily close in compliance
with mandatory lockdown procedures. We did see modest increases in
revenues from overseas study counselling service, which gives us
confidence that there continues to be strong demand for overseas
study opportunities and students are looking to take advantage of
these opportunities in the near future. ACG continued to provide
quality programs to students while closely monitoring the pandemic
situation in China. One of our online offerings, the ACG Overseas
Master program, has continued to be well received by participating
students since we initially introduced it in 2020 in response to
the COVID-19 pandemic. The ACG Overseas Master program provides
small classes within specialized areas of fine and applied arts,
architecture, and industrial and interactive design, all of which
are taught by professors from prestigious overseas arts schools
including the University of the Arts London, Parsons School of
Design and others.”
Outlook
Mr. Jun Zhang, President of ACG, stated, “We
continue to strive to provide superior course offerings and support
for ACG’s students despite the uncertainties caused by the recent
resurgence of COVID-19 in some of our core cities. As the public
health situation across the nation gradually improves, ACG and our
staff are committed to guiding our students through the upcoming
application process this fall and winter as a next step in their
creative arts education journey. We plan to continue developing
hands-on programs that cater to the interests of our students,
including a new series of online courses focused on current topics
such as the metaverse and non-fungible tokens (NFTs) as well as the
on-site learnings tours that feature visits to cultural heritage
sites in China. ACG is also working to streamline our
organizational structure by integrating full-time teachers in more
active roles in internal management including sales, marketing and
product development, key areas that drive the Company’s growth that
will enable us to seize potential opportunities that may occur in
the market. We remain confident in the value we bring to students
as a leading provider of creative arts education and are
continuously exploring ways in which we can meet the needs of our
evolving student population.”
Operating Review
Enrollment Update
ACG student enrollment for Second Quarter 2022 was
1,018, of which 547 were enrolled in portfolio training programs,
which consisted of time-based programs and project-based
programs.
A total of 25,387 credit hours were delivered for
portfolio training programs during Second Quarter 2022, of which
10,710 credit hours were delivered for time-based programs and
14,677 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
2022, compared to those for the prior-year period:
|
|
|
|
|
|
|
SecondQuarter Ended June 30,
2022 |
|
SecondQuarter Ended June 30,
2021 |
|
% Change |
|
No. of Credit Hours |
|
No. of Credit Hours |
|
|
|
|
|
|
|
|
Time-based Program |
10,710 |
|
14,224 |
|
(24.7%) |
Project-based Program |
14,677 |
|
14,221 |
|
3.2% |
Total |
25,387 |
|
28,445 |
|
(10.8%) |
|
|
|
|
|
|
|
|
|
|
|
|
During Second Quarter 2022, 471 students were
enrolled in ACG’s other programs, which primarily consisted of
overseas study counselling services, research-based learning
services, as well as foreign language training services.
Second Quarter 2022 Financial Review – GAAP
Results
ACG’s total net revenues for Second Quarter 2022
were RMB34.0 million (US$5.1 million), compared to RMB36.8 million
in the prior-year period, primarily due to revenue decreases from
the portfolio training and research-based learning service
businesses caused by local COVID-19 resurgences and subsequent
lockdowns in major cities such as Shanghai and Beijing. Revenues
from portfolio training programs were RMB26.4 million, or 77.6% of
total net revenues, during the period. Revenues from overseas study
counselling services, research-based learning services and other
educational services were RMB7.6 million, or 22.4% of total net
revenues, during the period.
Gross profit for Second Quarter 2022 was RMB12.1
million (US$1.8 million), compared to RMB16.0 million in the
prior-year period. Gross margin was 35.6% during the period,
compared to 43.4% in the prior-year period. The decrease was
primarily caused by the revenue decline described above.
Total operating expenses for Second Quarter 2022
decreased to RMB38.6 million (US$5.8 million), from RMB39.8 million
in the prior-year period.
Loss from operations for Second Quarter 2022 was
RMB26.4 million (US$3.9 million), compared to RMB23.8 million in
the prior-year period.
Net loss attributable to ACG for Second Quarter
2022 was RMB22.1 million (US$3.3 million), compared to net income
attributable to ACG of RMB14.1 million in the prior-year period,
primarily due to a one-time RMB33.5 million investment gain
resulting from the disposal of the Company’s K-12 education
assessment business in June 2021.
For Second Quarter 2022, basic and diluted losses
per common share attributable to ACG were both RMB0.35 (US$0.05),
compared to basic and diluted earnings per common share of RMB0.21
for the prior-year period. Basic and diluted losses per ADS
attributable to ACG were both RMB0.70 (US$0.10), compared to basic
and diluted earnings per ADS of RMB0.42 in the prior-year
period.
First Half 2022 Financial Review – GAAP
Results
ACG’s total net revenues for First Half 2022 was
RMB76.2 million (US$11.4 million), compared to RMB74.4 million in
the prior-year period. Revenues from portfolio training programs
were RMB53.1 million, or 69.7% of total net revenues, during the
period. Revenues from overseas study counselling services,
research-based learning services and other educational services
were RMB23.1 million, or 30.3% of total net revenues, during the
period.
Gross profit for First Half 2022 was RMB31.4
million (US$4.7 million), compared to RMB30.8 million in the
prior-year period. Gross margin was 41.2% during the period,
compared to 41.5% in the prior-year period.
Total operating expenses for First Half 2022
decreased to RMB76.6 million (US$11.4 million), from RMB77.9
million in the prior-year period.
Loss from operations for First Half 2022 was
RMB45.2 million (US$6.7 million), compared to RMB47.1 million in
the prior-year period.
Net loss attributable to ACG for First Half 2022
was RMB37.9 million (US$5.7 million), compared to RMB4.9 million in
the prior-year period, primarily due to the one-time investment
gain noted in the Second Quarter 2022 Financial Review.
For First Half 2022, basic and diluted losses per
common share attributable to ACG were both RMB0.60 (US$0.09),
compared to RMB0.11 for the prior-year period. Basic and diluted
losses per ADS attributable to ACG were both RMB1.20 (US$0.18),
compared to RMB0.22 in the prior-year period.
Non-GAAP Measures
Adjusted net loss attributable to ACG for Second
Quarter 2022, which excludes share-based compensation expense and
foreign currency exchange gain (loss), net (non-GAAP), was RMB21.6
million (US$3.2 million), compared to adjusted net income of
RMB14.7 million in the prior-year period.
Basic and diluted losses per common share
attributable to ACG excluding share-based compensation expense and
foreign currency exchange gain, net (non-GAAP) for Second Quarter
2022, were RMB0.34 (US$0.05). Basic and diluted losses per ADS
attributable to ACG excluding share-based compensation expense and
foreign currency exchange gain, net (non-GAAP) for Second Quarter
2022 were RMB0.68 (US$0.10).
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 losses per ADS for Second Quarter 2022
were both 31.4 million. Each ADS represents two common shares.
Balance Sheet Highlights
As of June 30, 2022, ACG’s cash and cash
equivalents were RMB60.5 million (US$9.0 million), working capital
deficit was RMB223.9 million (US$33.4 million), and total
shareholders’ equity was RMB153.3 million (US$22.9 million);
compared to cash and cash equivalents of RMB71.3 million, working
capital deficit of RMB192.6 million, and total shareholders’ equity
of RMB190.9 million, respectively, as of December 31,
2021.
Conference Call and Webcast Information
(With Accompanying Presentation)
ACG will host a conference call at
9 p.m. Eastern Time on Thursday, August 11, 2022 (9 a.m.
Beijing time on Friday, August 12, 2022), during which management
will discuss the results of the second quarter and six months ended
June 30, 2022.
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=vjOLXGDR.
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,” “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; market demand for, and market
acceptance and competitiveness of ACG’s portfolio training programs
and other education services; the impact of the COVID-19 pandemic
on ACG and its operations; and ACG’s plan and anticipated benefits
of the measures implemented in response to the COVID-19
pandemic.
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 integrate the acquired
business, its ability to maintain market share amid increasing
competition, its ability to identify and execute on M&A
opportunities within the education sector, the economy of China,
uncertainties with respect to China’s legal and regulatory
environments, the impact of the COVID-19 pandemic, 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, 2021, 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, 2021.
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, 2022, into U.S. dollars are included solely for the
convenience of readers and have been made at the rate of RMB6.6981
to US$1.00, the noon buying rate as of June 30, 2022, in New York
for cable transfers in RMB per U.S. dollar as set forth in the H.10
weekly statistical release of the Federal Reserve Board. Such
translations should not be construed as representations that RMB
amounts could be converted into U.S. dollars at that rate or any
other rate, or to be the amounts that would have been reported
under U.S. generally accepted accounting principles (“GAAP”).
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 |
415-568-2255 |
simaruobai@acgedu.cn |
csohn@equityny.com |
|
|
|
Alice Zhang, Investor Relations
Analyst |
|
212-836-9610 |
|
azhang@equityny.com |
|
|
|
|
|
|
ATA CREATIVITY GLOBAL AND
SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
December 31, |
|
|
June 30, |
|
|
June 30, |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
71,339,361 |
|
|
60,516,273 |
|
|
9,034,842 |
|
Accounts receivable |
938,189 |
|
|
405,869 |
|
|
60,595 |
|
Prepaid expenses and other current assets |
3,129,600 |
|
|
6,097,072 |
|
|
910,269 |
|
Total current assets |
75,407,150 |
|
|
67,019,214 |
|
|
10,005,706 |
|
|
|
|
|
|
|
Long-term investments |
38,000,000 |
|
|
38,000,000 |
|
|
5,673,251 |
|
Property and equipment, net |
36,503,984 |
|
|
34,669,945 |
|
|
5,176,087 |
|
Intangible assets, net |
93,352,778 |
|
|
84,856,111 |
|
|
12,668,684 |
|
Goodwill |
194,754,963 |
|
|
194,754,963 |
|
|
29,076,150 |
|
Other non-current assets |
26,739,026 |
|
|
25,407,110 |
|
|
3,793,182 |
|
Right-of-use assets |
42,417,409 |
|
|
37,652,210 |
|
|
5,621,327 |
|
Total assets |
507,175,310 |
|
|
482,359,553 |
|
|
72,014,387 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accrued expenses and other payables |
48,174,095 |
|
|
46,601,405 |
|
|
6,957,409 |
|
Lease liabilities-current |
17,351,427 |
|
|
17,287,128 |
|
|
2,580,900 |
|
Deferred revenues |
202,453,092 |
|
|
227,056,775 |
|
|
33,898,684 |
|
Total current liabilities |
267,978,614 |
|
|
290,945,308 |
|
|
43,436,993 |
|
|
|
|
|
|
|
Lease liabilities-non-current |
23,365,840 |
|
|
19,390,844 |
|
|
2,894,977 |
|
Deferred income tax liabilities |
24,931,322 |
|
|
18,696,687 |
|
|
2,791,342 |
|
Total liabilities |
316,275,776 |
|
|
329,032,839 |
|
|
49,123,312 |
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
Common shares |
4,720,147 |
|
|
4,720,147 |
|
|
704,699 |
|
Treasury shares |
(9,818,754 |
) |
|
(9,270,884 |
) |
|
(1,384,107 |
) |
Additional paid-in capital |
540,583,564 |
|
|
540,765,380 |
|
|
80,734,146 |
|
Accumulated other comprehensive loss |
(37,559,847 |
) |
|
(37,235,569 |
) |
|
(5,559,124 |
) |
Accumulated deficit |
(310,156,018 |
) |
|
(348,079,921 |
) |
|
(51,966,964 |
) |
Total shareholders’ equity attributable to
ACG |
187,769,092 |
|
|
150,899,153 |
|
|
22,528,650 |
|
Non-redeemable non-controlling interests |
3,130,442 |
|
|
2,427,561 |
|
|
362,425 |
|
Total shareholders’ equity |
190,899,534 |
|
|
153,326,714 |
|
|
22,891,075 |
|
Commitments and contingencies |
— |
|
|
— |
|
|
— |
|
Total liabilities and shareholders’ equity |
507,175,310 |
|
|
482,359,553 |
|
|
72,014,387 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATA CREATIVITY GLOBAL AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
|
|
|
Three-month Period Ended |
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
Net revenues |
36,760,950 |
|
|
34,045,045 |
|
|
5,082,791 |
|
Cost of revenues |
20,808,818 |
|
|
21,921,238 |
|
|
3,272,755 |
|
Gross profit |
15,952,132 |
|
|
12,123,807 |
|
|
1,810,036 |
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
Research and development |
2,729,866 |
|
|
1,854,064 |
|
|
276,804 |
|
Sales and marketing |
16,648,618 |
|
|
19,826,163 |
|
|
2,959,968 |
|
General and administrative |
20,426,090 |
|
|
16,887,923 |
|
|
2,521,301 |
|
Total operating expenses |
39,804,574 |
|
|
38,568,150 |
|
|
5,758,073 |
|
Other operating income, net |
5,625 |
|
|
5,505 |
|
|
822 |
|
Loss from operations |
(23,846,817 |
) |
|
(26,438,838 |
) |
|
(3,947,215 |
) |
Other income
(expense): |
|
|
|
|
|
Investment income |
33,542,154 |
|
|
— |
|
|
— |
|
Interest income, net of interest expenses |
294,033 |
|
|
163,305 |
|
|
24,381 |
|
Foreign currency exchange gain (loss), net |
(244,406 |
) |
|
8,702 |
|
|
1,299 |
|
Income (loss) before income taxes |
9,744,964 |
|
|
(26,266,831 |
) |
|
(3,921,535 |
) |
Income tax benefit |
(3,687,455 |
) |
|
(4,071,305 |
) |
|
(607,830 |
) |
Net income (loss) |
13,432,419 |
|
|
(22,195,526 |
) |
|
(3,313,705 |
) |
Net loss attributable to redeemable non-controlling interests |
(277,089 |
) |
|
— |
|
|
— |
|
Net loss attributable to non-redeemable non-controlling
interests |
(435,626 |
) |
|
(125,499 |
) |
|
(18,737 |
) |
Net income (loss) attributable to ACG |
14,145,134 |
|
|
(22,070,027 |
) |
|
(3,294,968 |
) |
|
|
|
|
|
|
Other comprehensive
income (loss): |
|
|
|
|
|
Foreign currency translation adjustment, net of nil income
taxes |
(133,390 |
) |
|
358,766 |
|
|
53,562 |
|
Comprehensive income (loss) attributable to
ACG |
14,011,744 |
|
|
(21,711,261 |
) |
|
(3,241,406 |
) |
|
|
|
|
|
|
Basic and diluted earnings
(losses) per common share attributable to ACG |
0.21 |
|
|
(0.35 |
) |
|
(0.05 |
) |
Basic and diluted earnings
(losses) per ADS attributable to ACG |
0.42 |
|
|
(0.70 |
) |
|
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATA CREATIVITY GLOBAL AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
|
|
|
Six-month Period Ended |
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
Net revenues |
74,350,495 |
|
|
76,183,674 |
|
|
11,373,923 |
|
Cost of revenues |
43,524,823 |
|
|
44,788,476 |
|
|
6,686,743 |
|
Gross profit |
30,825,672 |
|
|
31,395,198 |
|
|
4,687,180 |
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
Research and development |
5,246,592 |
|
|
3,537,134 |
|
|
528,080 |
|
Sales and marketing |
29,971,605 |
|
|
34,478,427 |
|
|
5,147,494 |
|
General and administrative |
42,690,348 |
|
|
38,601,411 |
|
|
5,763,039 |
|
Total operating expenses |
77,908,545 |
|
|
76,616,972 |
|
|
11,438,613 |
|
Other operating income, net |
11,863 |
|
|
11,010 |
|
|
1,644 |
|
Loss from operations |
(47,071,010 |
) |
|
(45,210,764 |
) |
|
(6,749,789 |
) |
Other income
(expense): |
|
|
|
|
|
Investment income |
33,542,154 |
|
|
— |
|
|
— |
|
Interest income, net of interest expenses |
574,772 |
|
|
372,470 |
|
|
55,608 |
|
Foreign currency exchange gain (loss), net |
(156,786 |
) |
|
9,893 |
|
|
1,477 |
|
Loss before income taxes |
(13,110,870 |
) |
|
(44,828,401 |
) |
|
(6,692,704 |
) |
Income tax benefit |
(6,407,151 |
) |
|
(6,201,617 |
) |
|
(925,877 |
) |
Net loss |
(6,703,719 |
) |
|
(38,626,784 |
) |
|
(5,766,827 |
) |
Net loss attributable to redeemable non-controlling interests |
(714,121 |
) |
|
— |
|
|
— |
|
Net loss attributable to non-redeemable non-controlling
interests |
(1,090,975 |
) |
|
(702,881 |
) |
|
(104,937 |
) |
Net loss attributable to ACG |
(4,898,623 |
) |
|
(37,923,903 |
) |
|
(5,661,890 |
) |
|
|
|
|
|
|
Other comprehensive
income (loss): |
|
|
|
|
|
Foreign currency translation adjustment, net of nil income
taxes |
(42,891 |
) |
|
324,278 |
|
|
48,413 |
|
Comprehensive loss attributable to ACG |
(4,941,514 |
) |
|
(37,599,625 |
) |
|
(5,613,477 |
) |
|
|
|
|
|
|
Basic and diluted losses per
common share attributable to ACG |
(0.11 |
) |
|
(0.60 |
) |
|
(0.09 |
) |
Basic and diluted losses per ADS
attributable to ACG |
(0.22 |
) |
|
(1.20 |
) |
|
(0.18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS OF NON-GAAP
MEASURESTO THE MOST COMPARABLE GAAP
MEASURES
|
|
|
|
|
Three-month Period Ended |
|
Six-month Period Ended |
|
June 30, |
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
2021 |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
RMB |
|
RMB |
|
RMB |
|
RMB |
GAAP net income (loss)
attributable to ACG |
14,145,134 |
|
(22,070,027 |
) |
|
(4,898,623 |
) |
|
(37,923,903 |
) |
Share-based compensation
expenses |
264,067 |
|
504,444 |
|
|
489,298 |
|
|
739,134 |
|
Foreign currency exchange loss
(gain), net |
244,406 |
|
(8,702 |
) |
|
156,786 |
|
|
(9,893 |
) |
Non-GAAP net income (loss)
attributable to ACG |
14,653,607 |
|
(21,574,285 |
) |
|
(4,252,539 |
) |
|
(37,194,662 |
) |
|
|
|
|
|
|
|
|
GAAP earnings (losses) per
common share attributable to ACG |
|
|
|
|
|
|
|
Basic and diluted |
0.21 |
|
(0.35 |
) |
|
(0.11 |
) |
|
(0.60 |
) |
|
|
|
|
|
|
|
|
Non-GAAP earnings (losses) per
common share attributable to ACG |
|
|
|
|
|
|
|
Basic and diluted |
0.22 |
|
(0.34 |
) |
|
(0.10 |
) |
|
(0.59 |
) |
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