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, 2020 (“Fourth Quarter 2020” and “Fiscal Year 2020”,
respectively).
2020 Fourth Quarter and Annual Highlights
- During Fourth Quarter 2020, student enrollment was 1,122,
compared to 1,042 in the prior-year period. Of these students, 636
were enrolled in ACG’s portfolio training programs. Approximately
45,434 credit hours were delivered during Fourth Quarter 2020,
compared to 52,202 in the prior-year period.
- Fourth Quarter 2020 net revenues of RMB60.8 million (US$9.3
million), primarily driven by revenues from portfolio training
services, compared to RMB54.1 million in the prior-year period
- Fourth Quarter 2020 net loss attributable to ACG improved to
RMB24.8 million (US$3.8 million), compared to RMB70.9 million in
the prior-year period
- Fiscal Year 2020 net revenues of RMB162.2 million (US$24.9
million), driven by full-year contributions from the Huanqiuyimeng
business
- Fiscal Year 2020 net loss attributable to ACG improved to
RMB92.2 million (US$14.1 million), compared to RMB122.3 million in
the prior year
- Throughout Fiscal Year 2020, the Company repurchased 450,337
ADSs at an average stock price of US$1.2631.
- RMB112.7 million (US$17.3 million) in cash and cash equivalents
as of December 31, 2020
Management Commentary
Mr. Kevin Ma, Chairman and CEO of ACG, stated, “2020
presented businesses and people all over the world with a public
health crisis that nobody could have foreseen. When the seriousness
of the pandemic became apparent at the beginning of 2020, ACG moved
quickly to prioritize the health and safety of students and staff
by ceasing all in-person instruction by early February and
transitioning offline course delivery to online course delivery.
While we did see some enrollment deferrals and a more significant
impact on our international research-based learning services,
formerly educational travel, business in the summer, we are pleased
that the majority of our students continued to pursue their studies
despite the challenges that came with adjusting to a remote
learning method. During the fourth quarter of 2020, enrollment in
our portfolio training programs remained strong at 636, which was
an increase of 8.7% from the prior-year period, despite a decrease
in credit hours delivered by approximately 13% to 45,434 mainly due
to the ongoing COVID-19 pandemic.
“In 2020, ACG took the opportunity to upgrade technology systems
that support the daily operations of Beijing Huanqiuyimeng
Education Consultation Corp. (‘Huanqiuyimeng’). ACG leveraged its
own experience in internal finance, management and analysis to help
Huanqiuyimeng improve its accounting controls and management
efficiencies during the integration process. These efforts enabled
us to continue providing our students with the quality creative
education they have come to expect from ACG while strengthening the
growth prospects of the Company in the years to come. Several of
our students have begun receiving acceptance letters from overseas
institutions with more expected in the coming months.”
Outlook
Mr. Jun Zhang, President of ACG, stated, “For Fourth Quarter
2020, we are pleased to report strong enrollment numbers, which
were supported by continued demand for out-of-classroom
experiences, new enrollments from students of smaller institutions
that have had to close their businesses during the pandemic, and
the need for students to complete their portfolios before year-end
application deadlines. With the public health situation in China
effectively contained, we continue to offer in-person courses with
an option to take some courses online. As an alternative to
international educational travel, we offered domestic educational
tours this past year, one of which took place in Sichuan, and
offered camps that gave students an opportunity to study historical
art pieces and practice classic art techniques in small groups. We
also offered online bootcamps, which included academic educational
learning and workshop programs as well as transferrable credit
courses for undergraduate or graduate students already studying at
overseas art schools we partner with. We will continue to explore
the potential of new offerings and are proud to have found
opportunities to increase our growth prospects in the extremely
unusual year of 2020. We believe we have established a solid
framework for future growth.”
Operating Review
Enrollment Update
ACG student enrollment for Fourth Quarter 2020 was 1,122, of
which 636 were enrolled in its portfolio training programs, which
consist of time-based programs and project-based programs.
A total of 45,434 credit hours were delivered for portfolio
training programs during Fourth Quarter 2020, of which 25,165
credit hours were delivered for time-based programs and 20,269
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 2020, compared
to those for the prior-year period:
|
FourthQuarter EndedDec. 31,
2020 |
|
|
FourthQuarter EndedDec. 31,
2019 |
|
|
% Change |
|
No. of CreditHours |
|
|
No. of CreditHours |
|
|
|
|
|
|
|
|
|
|
|
Time-based Program |
25,165 |
|
|
34,434 |
|
|
(26.9 |
%) |
Project-based Program |
20,269 |
|
|
17,768 |
|
|
14.1 |
% |
Total |
45,434 |
|
|
52,202 |
|
|
(13.0 |
%) |
During Fourth Quarter 2020, 486 students were enrolled in ACG’s
other programs, which consists of overseas study counselling and
foreign language training services enrollments as well as
enrollments for other educational services.
GAAP Results
Notes: Impact of Huanqiuyimeng Acquisition on and Certain
Adjustments to the Company’s Financial Statements
Following the completion of the Huanqiuyimeng business
acquisition whereby Huanqiuyimeng became a wholly owned subsidiary
of the Company in 2019, the financial results presented in this
press release incorporated financial contributions from
Huanqiuyimeng for Fourth Quarter 2020 and Fiscal Year 2020. Please
note that the prior-year period comparisons in the below financial
reviews include approximately five months of contributions from the
Huanqiuyimeng business as control of Huanqiuyimeng transitioned to
ACG on August 6, 2019. In addition, the Company has
applied acquisition accounting and made purchase price
allocation (“PPA”) adjustments to various assets acquired and
liabilities assumed from the Huanqiuyimeng business
acquisition.
Impact of Certain Adjustments to the Company’s Financial
Statements for the Quarter Ended September 30, 2020
During the annual financial reporting process for the year ended
December 31, 2020, the Company reversed an RMB 34.1 million
investment gain from a fair value change in one of the Company’s
strategic long-term investments recorded in the unaudited condensed
consolidated statements of comprehensive income (loss) for the
quarter ended September 30, 2020, to better reflect relevant
accounting rules. As a result, certain line items in the
accompanying unaudited financial statements for the year ended
December 31, 2020, in this press release have been adjusted
accordingly.
Fourth Quarter 2020 Financial Review
ACG’s total net revenues for Fourth Quarter 2020 increased 12.4%
to RMB60.8 million (US$9.3 million), from RMB54.1 million in the
prior-year period. Net revenues for this quarter include a negative
adjustment of RMB6.0 million resulting from amortization of the
difference between the carrying value of deferred revenues in
Huanqiuyimeng’s book and the fair value of deferred revenues
assessed from the PPA process applied to the Huanqiuyimeng business
acquisition (“PPA Adjustment to Net Revenues”). Revenues from
portfolio training programs were RMB40.8 million, or 67.1% of total
net revenues, during the period. Revenues from overseas study
counselling services, other educational services and the K-12
business were RMB20.0 million, or 32.9% of total net revenues
during the period.
Gross profit for Fourth Quarter 2020 increased 41.1% to RMB29.5
million (US$4.5 million), from RMB20.9 million in the prior-year
period. Gross margin improved to 48.5% during the period, compared
to 38.6% in the prior-year period. Excluding the PPA Adjustment to
Net Revenues stated above, gross margin for Fourth Quarter 2020
would have been 53.1%.
Total operating expenses for Fourth Quarter 2020 were RMB55.4
million (US$8.5 million), compared to RMB77.0 million in the
prior-year period. This decrease was primarily driven by an RMB5.8
million decrease in impairment charges related to intangible
assets, as well as lower general and administrative costs due to
reductions in headcount and office space made as part of a general
expense savings plan launched in response to COVID-19.
Loss from operations for Fourth Quarter 2020 was RMB26.0 million
(US$4.0 million), compared to RMB56.0 million in the prior-year
period, primarily as a result of the increased gross profit and
decreased operating expenses mentioned above.
Net loss attributable to ACG for Fourth Quarter 2020 improved to
RMB24.8 million (US$3.8 million), from RMB70.9 million in the
prior-year period, primarily as a result of the RMB30.0 million
decrease in loss from operations mentioned above and an RMB20.7
million decrease in impairment loss of long-term investments.
For Fourth Quarter 2020, basic and diluted losses per common
share attributable to ACG were both RMB0.43 (US$0.07), compared to
RMB1.27 for the prior-year period. Basic and diluted losses per ADS
attributable to ACG were both RMB0.86 (US$0.14), compared to
RMB2.54 in the prior-year period.
Year-end 2020 Financial Review
ACG’s total net revenues for Fiscal Year 2020 were RMB162.2
million (US$24.9 million), compared to RMB97.8 million in the prior
year. This increase was driven primarily by the full-year
contributions from the Huanqiuyimeng business compared to
approximately five months of contributions in 2019. Net revenues
for the period include a negative adjustment of RMB24.0 million
resulting from the PPA Adjustment to Net Revenues, as noted above.
Revenues from portfolio training programs were RMB113.2 million, or
69.8% of total net revenues, during the period. Revenues from other
education services and the K-12 business were RMB49.0 million, or
30.2% of total net revenues, during the period.
Gross profit for Fiscal Year 2020 was RMB63.6 million (US$9.8
million), compared to RMB35.9 million in the prior year. Gross
margin was 39.2% during the period, compared to 36.7% in the prior
year. Excluding the PPA Adjustment to Net Revenues stated above,
gross margin for Fiscal Year 2020 would have been 47.1%, compared
to 45.2% in the prior year. The margin improvement is a reflection
of the results yielded by the Company’s internal cost restructuring
and expense savings initiatives to increase overall operational
efficiencies under the COVID-19 pandemic circumstances.
Total operating expenses for Fiscal Year 2020 were RMB171.5
million (US$26.3 million), compared to RMB154.2 million in the
prior year, which included only five months of expenses related to
Huanqiuyimeng operations as control transitioned to ACG on August
6, 2019.
Loss from continuing operations for Fiscal Year 2020 was
RMB107.5 million (US$16.5 million), compared to RMB117.8 million in
the prior year.
Net loss attributable to ACG for Fiscal Year 2020 improved to
RMB92.2 million (US$14.1 million), from RMB122.3 million in the
prior year. The operation performance improvement was primarily
driven by the RMB10.3 million decrease in loss from continuing
operations mentioned above and an RMB25.1 million decrease in
long-term investment impairment.
For Fiscal Year 2020, basic and diluted losses per common share
attributable to ACG were both RMB1.57 (US$0.24), compared to
RMB2.52 for the prior year. Basic and diluted losses per ADS
attributable to ACG were both RMB3.14 (US$0.48), compared to
RMB5.04 in the prior year.
Non-GAAP Measures
Adjusted net loss attributable to ACG for Fiscal Year 2020,
which excludes share-based compensation expense and foreign
currency exchange loss (non-GAAP), was RMB89.4 million (US$13.7
million), compared to adjusted net loss of RMB117.5 million in the
prior year.
Basic and diluted earnings per common share attributable to ACG
excluding share-based compensation expense and foreign currency
exchange loss (non-GAAP) for Fiscal Year 2020, were RMB1.52
(US$0.23). Basic and diluted earnings per ADS attributable to ACG
excluding share-based compensation expense and foreign currency
exchange loss (non-GAAP) for Fiscal Year 2020 were RMB3.04
(US$0.46).
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 Fourth Quarter 2020 and Fiscal
Year 2020 were 31.4 million and 31.3 million, respectively. Each
ADS represents two common shares.
Balance Sheet Highlights
As of December 31, 2020, ACG’s cash and cash equivalents were
RMB112.7 million (US$17.3 million), working capital deficit was
RMB153.9 million (US$23.6 million), and total shareholders’ equity
was RMB199.2 million (US$30.5 million); compared to cash and cash
equivalents of RMB154.2 million, working capital deficit of RMB81.3
million, and total shareholders’ equity of RMB305.6 million,
respectively, as of December 31, 2019.
Update on Share Repurchase Program
In May 2020, ACG’s Board of Directors approved a share
repurchase plan authorizing the Company to repurchase up to US$1.0
million of its issued and outstanding ADSs from the open market and
through privately negotiated transactions. By December 31, 2020,
the date at which the plan expired, the Company had repurchased
450,337 ADSs at an average stock price of US$1.2631.
Conference Call and Webcast Information (With
Accompanying Presentation)
ACG will host a conference call at 9 p.m. Eastern Time
on Monday, March 29, 2021 (9 a.m. Beijing time on Tuesday, March
30, 2021), during which management will discuss the results of the
quarter and year ended December 31, 2020.
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://78449.themediaframe.com/dataconf/productusers/atac/mediaframe/43684/indexl.html.
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 ability to operate efficiently and maintain
continued financial strength under unusual circumstances; ACG’s
growth strategy, anticipated growth prospects and subsequent
business activities; market demand for ACG’s portfolio training
programs and other education services; the impact of the COVID-19
outbreak on ACG and its operations; and ACG’s plan and
anticipated benefits of the measures implemented in response to the
COVID-19 outbreak.
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
outbreak 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, 2019,
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,
2019.
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 December 31, 2020, into U.S. dollars are included solely for
the convenience of readers and have been made at the rate of
RMB6.5250 to US$1.00, the noon buying rate as of December 31, 2020,
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. |
Amy Tung, CFO |
|
Carolyne Y. Sohn, Vice
President |
+86 10 6518 1133 x 5518 |
|
415-568-2255 |
amytung@acgedu.cn |
|
csohn@equityny.com |
|
|
|
|
|
Adam Prior, Senior Vice
President |
|
|
212-836-9606 |
|
|
aprior@equityny.com |
|
ATA CREATIVITY GLOBAL AND SUBSIDIARIES |
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
2019 |
|
|
2020 |
|
|
2020 |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
154,197,758 |
|
|
112,723,433 |
|
|
17,275,622 |
|
Accounts receivable, net |
214,591 |
|
|
2,245,194 |
|
|
344,091 |
|
Subscription receivable |
8,530,931 |
|
|
— |
|
|
— |
|
Prepaid expenses and other current assets |
16,490,369 |
|
|
5,970,973 |
|
|
915,092 |
|
Loan receivable, net |
4,126,502 |
|
|
— |
|
|
— |
|
Total current assets |
183,560,151 |
|
|
120,939,600 |
|
|
18,534,805 |
|
|
|
|
|
|
|
Long-term investments |
45,726,391 |
|
|
44,000,000 |
|
|
6,743,295 |
|
Goodwill |
200,478,795 |
|
|
194,754,963 |
|
|
29,847,504 |
|
Property and equipment, net |
42,070,794 |
|
|
38,119,216 |
|
|
5,842,025 |
|
Intangible assets, net |
135,599,770 |
|
|
110,586,111 |
|
|
16,948,063 |
|
Right-of-use assets |
40,786,291 |
|
|
41,779,086 |
|
|
6,402,925 |
|
Deferred income tax assets |
11,464,891 |
|
|
2,491,792 |
|
|
381,884 |
|
Other non-current assets |
16,402,750 |
|
|
22,950,264 |
|
|
3,517,282 |
|
Total assets |
676,089,833 |
|
|
575,621,032 |
|
|
88,217,783 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accrued expenses and other payables |
47,747,054 |
|
|
47,020,182 |
|
|
7,206,160 |
|
Short-term loans |
4,991,000 |
|
|
6,801,000 |
|
|
1,042,299 |
|
Payable for business acquisition |
19,642,082 |
|
|
4,642,082 |
|
|
711,430 |
|
Lease liabilities-current |
20,556,017 |
|
|
16,972,187 |
|
|
2,601,101 |
|
Deferred revenues |
171,880,131 |
|
|
199,448,112 |
|
|
30,566,760 |
|
Total current liabilities |
264,816,284 |
|
|
274,883,563 |
|
|
42,127,750 |
|
|
|
|
|
|
|
Lease liabilities-non-current |
12,500,120 |
|
|
24,005,765 |
|
|
3,679,044 |
|
Deferred income tax liabilities |
48,241,809 |
|
|
28,985,472 |
|
|
4,442,218 |
|
Total liabilities |
325,558,213 |
|
|
327,874,800 |
|
|
50,249,012 |
|
|
|
|
|
|
|
Mezzanine equity-redeemable non-controlling
interests |
44,896,428 |
|
|
48,498,368 |
|
|
7,432,700 |
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
Common shares |
4,692,312 |
|
|
4,716,675 |
|
|
722,862 |
|
Treasury shares |
(27,737,073 |
) |
|
(11,625,924 |
) |
|
(1,781,751 |
) |
Additional paid-in capital |
560,814,066 |
|
|
541,272,503 |
|
|
82,953,640 |
|
Accumulated other comprehensive loss |
(37,478,167 |
) |
|
(37,424,722 |
) |
|
(5,735,590 |
) |
Retained earnings (accumulated deficit) |
(200,151,065 |
) |
|
(298,533,669 |
) |
|
(45,752,286 |
) |
Total shareholders’ equity attributable to
ACG |
300,140,073 |
|
|
198,404,863 |
|
|
30,406,875 |
|
Non-redeemable non-controlling interests |
5,495,119 |
|
|
843,001 |
|
|
129,196 |
|
Total shareholders’ equity |
305,635,192 |
|
|
199,247,864 |
|
|
30,536,071 |
|
Commitments and contingencies |
|
|
|
|
|
Total liabilities, mezzanine equity and shareholders’
equity |
676,089,833 |
|
|
575,621,032 |
|
|
88,217,783 |
|
|
ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED
CONSOLIDATEDSTATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
|
|
Three-month Period Ended |
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
2019 |
|
|
2020 |
|
|
2020 |
|
|
RMB |
|
RMB |
|
USD |
Net revenues |
54,138,667 |
|
|
|
60,847,715 |
|
|
|
9,325,320 |
|
Cost of revenues |
33,239,851 |
|
|
|
31,336,861 |
|
|
|
4,802,584 |
|
Gross profit |
20,898,816 |
|
|
|
29,510,854 |
|
|
|
4,522,736 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and development |
2,462,282 |
|
|
|
2,457,651 |
|
|
|
376,651 |
|
Sales and marketing |
17,067,130 |
|
|
|
17,627,511 |
|
|
|
2,701,534 |
|
General and administrative |
31,066,678 |
|
|
|
26,255,189 |
|
|
|
4,023,784 |
|
Impairment loss of intangible assets and other non-current
assets |
8,932,439 |
|
|
|
3,120,425 |
|
|
|
478,226 |
|
Provision for loan receivable and other receivables |
17,430,825 |
|
|
|
5,904,305 |
|
|
|
904,874 |
|
Total operating expenses |
76,959,354 |
|
|
|
55,365,081 |
|
|
|
8,485,069 |
|
Other operating income, net |
26,062 |
|
|
|
(141,731 |
) |
|
|
(21,721 |
) |
Loss from operations |
(56,034,476 |
) |
|
|
(25,995,958 |
) |
|
|
(3,984,054 |
) |
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
Investment gain |
— |
|
|
|
11,678 |
|
|
|
1,790 |
|
Impairment loss from long-term investments |
(20,895,309 |
) |
|
|
(150,000 |
) |
|
|
(22,989 |
) |
Interest income, net of interest expenses |
677,395 |
|
|
|
287,167 |
|
|
|
44,011 |
|
Foreign currency exchange gain (loss), net |
72,650 |
|
|
|
(926,083 |
) |
|
|
(141,928 |
) |
Loss before income taxes |
(76,179,740 |
) |
|
|
(26,773,196 |
) |
|
|
(4,103,170 |
) |
Income tax benefit |
(3,753,894 |
) |
|
|
463,485 |
|
|
|
71,032 |
|
Net loss |
(72,425,846 |
) |
|
|
(27,236,681 |
) |
|
|
(4,174,202 |
) |
|
|
|
|
|
|
|
|
Net loss attributable to redeemable non-controlling interests |
(891,820 |
) |
|
|
(967,178 |
) |
|
|
(148,227 |
) |
Net loss attributable to non-redeemable non-controlling
interests |
(680,746 |
) |
|
|
(1,460,152 |
) |
|
|
(223,778 |
) |
Net loss attributable to ACG |
(70,853,280 |
) |
|
|
(24,809,351 |
) |
|
|
(3,802,197 |
) |
|
|
|
|
|
|
|
|
Other comprehensive
loss: |
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil income
taxes |
(1,086,949 |
) |
|
|
(650,184 |
) |
|
|
(99,645 |
) |
Comprehensive loss attributable to ACG |
(71,940,229 |
) |
|
|
(25,459,535 |
) |
|
|
(3,901,842 |
) |
|
|
|
|
|
|
|
|
Basic and diluted losses per
common share attributable to ACG |
(1.27 |
) |
|
|
(0.43 |
) |
|
|
(0.07 |
) |
Basic and diluted losses per ADS
attributable to ACG |
(2.54 |
) |
|
|
(0.86 |
) |
|
|
(0.14 |
) |
|
ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED
CONSOLIDATEDSTATEMENTS OF COMPREHENSIVE INCOME
(LOSS) |
|
|
Twelve-month Period Ended |
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
2019 |
|
|
2020 |
|
|
2020 |
|
|
RMB |
|
RMB |
|
USD |
Net revenues |
97,770,167 |
|
|
|
162,167,547 |
|
|
|
24,853,264 |
|
Cost of revenues |
61,914,502 |
|
|
|
98,521,027 |
|
|
|
15,099,008 |
|
Gross profit |
35,855,665 |
|
|
|
63,646,520 |
|
|
|
9,754,256 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and development |
11,817,255 |
|
|
|
8,832,488 |
|
|
|
1,353,638 |
|
Sales and marketing |
34,112,212 |
|
|
|
53,500,051 |
|
|
|
8,199,242 |
|
General and administrative |
81,923,516 |
|
|
|
100,097,849 |
|
|
|
15,340,667 |
|
Impairment loss of intangible assets and other non-current
assets |
8,932,439 |
|
|
|
3,120,425 |
|
|
|
478,226 |
|
Provision for loan receivable and other receivables |
17,430,825 |
|
|
|
5,904,305 |
|
|
|
904,874 |
|
Total operating expenses |
154,216,247 |
|
|
|
171,455,118 |
|
|
|
26,276,647 |
|
Other operating income, net |
588,147 |
|
|
|
330,224 |
|
|
|
50,609 |
|
Loss from continuing operations |
(117,772,435 |
) |
|
|
(107,478,374 |
) |
|
|
(16,471,782 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
Investment loss |
(7,850 |
) |
|
|
(1,767,800 |
) |
|
|
(270,927 |
) |
Impairment loss of long-term investments |
(26,814,507 |
) |
|
|
(1,726,391 |
) |
|
|
(264,581 |
) |
Interest income, net of interest expenses |
3,281,701 |
|
|
|
1,171,837 |
|
|
|
179,592 |
|
Foreign currency exchange gain (loss), net |
51,476 |
|
|
|
(1,052,856 |
) |
|
|
(161,357 |
) |
Loss from continuing operations before income
taxes |
(141,261,615 |
) |
|
|
(110,853,584 |
) |
|
|
(16,989,055 |
) |
Income tax benefit |
(7,149,119 |
) |
|
|
(10,268,836 |
) |
|
|
(1,573,768 |
) |
Loss from continuing operations, net of income
taxes |
(134,112,496 |
) |
|
|
(100,584,748 |
) |
|
|
(15,415,287 |
) |
Discontinued
operations: |
|
|
|
|
|
|
|
Income from discontinued operations, net of income
taxes |
4,894,197 |
|
|
|
— |
|
|
|
— |
|
Net loss |
(129,218,299 |
) |
|
|
(100,584,748 |
) |
|
|
(15,415,287 |
) |
Net loss attributable to redeemable non-controlling interests from
continuing operations |
(2,820,682 |
) |
|
|
(2,582,632 |
) |
|
|
(395,806 |
) |
Net loss attributable to non-redeemable non-controlling interests
from continuing operations |
(4,143,628 |
) |
|
|
(5,804,084 |
) |
|
|
(889,515 |
) |
Net loss attributable to ACG |
(122,253,989 |
) |
|
|
(92,198,032 |
) |
|
|
(14,129,966 |
) |
Net loss from continuing operations attributable to
ACG |
(127,148,186 |
) |
|
|
(92,198,032 |
) |
|
|
(14,129,966 |
) |
Net income from discontinued operations attributable to
ACG |
4,894,197 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss): |
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil income
taxes |
810,197 |
|
|
|
53,445 |
|
|
|
8,191 |
|
Comprehensive loss attributable to ACG |
(121,443,792 |
) |
|
|
(92,144,587 |
) |
|
|
(14,121,775 |
) |
|
|
|
|
|
|
|
|
Basic and diluted losses per
common share attributable to ACG |
(2.52 |
) |
|
|
(1.57 |
) |
|
|
(0.24 |
) |
Basic and diluted losses per ADS
attributable to ACG |
(5.04 |
) |
|
|
(3.14 |
) |
|
|
(0.48 |
) |
Basic and diluted losses from
continuing operations per common share attributable to ACG |
(2.62 |
) |
|
|
(1.57 |
) |
|
|
(0.24 |
) |
Basic and diluted earnings from
discontinued operations per common share attributable to ACG |
0.10 |
|
|
|
— |
|
|
|
— |
|
Basic and diluted losses from
continuing operations per ADS attributable to ACG |
(5.24 |
) |
|
|
(3.14 |
) |
|
|
(0.48 |
) |
Basic and diluted earnings from
discontinued operations per ADS attributable to ACG |
0.20 |
|
|
|
— |
|
|
|
— |
|
|
RECONCILIATIONS OF NON-GAAP MEASURES |
TO THE MOST COMPARABLE GAAP MEASURES |
|
|
Three-month Period Ended |
|
Twelve-month Period Ended |
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
RMB |
|
RMB |
|
RMB |
|
RMB |
GAAP net loss attributable to
ACG |
(70,853,280 |
) |
|
(24,809,351 |
) |
|
(122,253,989 |
) |
|
(92,198,032 |
) |
Share-based compensation
expenses |
27,118 |
|
|
392,483 |
|
|
4,809,453 |
|
|
1,776,783 |
|
Foreign currency exchange loss
(gain), net |
(72,650 |
) |
|
926,083 |
|
|
(51,476 |
) |
|
1,052,856 |
|
Non-GAAP net loss attributable to
ACG |
(70,898,812 |
) |
|
(23,490,785 |
) |
|
(117,496,012 |
) |
|
(89,368,393 |
) |
|
|
|
|
|
|
|
|
GAAP losses per common share
attributable to ACG |
|
|
|
|
|
|
|
Basic and diluted |
(1.27 |
) |
|
(0.43 |
) |
|
(2.52 |
) |
|
(1.57 |
) |
|
|
|
|
|
|
|
|
Non-GAAP losses per common share
attributable to ACG |
|
|
|
|
|
|
|
Basic and diluted |
(1.27 |
) |
|
(0.40 |
) |
|
(2.43 |
) |
|
(1.52 |
) |
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