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 nine months ended
September 30, 2021 (“Third Quarter 2021” and “Nine Months 2021”,
respectively).
Third Quarter 2021 and Nine Months 2021
Highlights
- During Third Quarter 2021, student
enrollment remained steady at 1,220, compared with 1,225 in the
prior-year period. Of these students, 625 were enrolled in ACG’s
portfolio training programs. 44,640 credit hours were delivered
during Third Quarter 2021, compared to 44,203 in the prior-year
period.
- Third Quarter 2021 net revenues
increased 31.0% to RMB55.3 million (US$8.6 million), from RMB42.2
million in the prior-year period, primarily driven by increased
contributions from portfolio training and research-based learning
services.
- Third Quarter 2021 net loss
attributable to ACG was RMB26.2 million (US$4.1 million), compared
to net loss attributable to ACG of RMB14.9 million in the
prior-year period, primarily due to increased operating expenses
described in the Third Quarter 2021 Financial Review below.
- Nine Months 2021 net revenues
increased 28.0% to RMB129.6 million (US$20.1 million), from
RMB101.3 million in the prior-year period
- Nine Months 2021 net loss attributable
to ACG improved to RMB31.1 million (US$4.8 million), compared to
net loss attributable to ACG of RMB67.4 million in the prior-year
period
- RMB75.2 million (US$11.7 million) in
cash and cash equivalents as of September 30, 2021
Management Commentary
Mr. Kevin Ma, Chairman and CEO of ACG, stated, “We are
pleased to have achieved over 30% growth on the top line during
Third Quarter 2021, driven primarily by increased contributions
from our portfolio training and research-based learning services,
supported by steady enrollments across our major service lines. We
are pleased to see increasingly positive reception of and interest
in our research-based learning programs and will continue to
explore ways in which we can better support existing and potential
students given the changing education landscape. During Third
Quarter 2021, we continued to invest in the development of new
offerings and our existing IT platform, which we believe will help
drive future growth. We are committed to maintaining our leading
position in creative arts education with a focus on positive
outcomes for our students.”
Outlook
Mr. Jun Zhang, President of ACG, stated, “In recent months,
there has been a great deal of uncertainty in the Chinese education
industry. We have seen some companies close their doors due to
their inability to operate through the challenges of the pandemic,
and others are struggling and offering significant discounts to
attract students. In addition, certain after-school tutoring
institutions have been unable to continue to provide their academic
course tutoring services for K-12 students as a result of the
government’s recently announced Opinions on Further Alleviating the
Burden of Homework and After-School Tutoring for Students in
Compulsory Education (the “Opinion”). While our portfolio training
services and other art-related services are not considered academic
tutoring for K-12 students and thus not subject to the Opinion, the
Opinion appears to have affected certain consumers’ confidence in
the overall education industry. In this environment, students and
parents are hesitant to commit to paying for longer programs. In
response to the foregoing, ACG has been exploring potential
alternative offerings that may be better fit for students’ needs.
With over 20 campus locations nationwide and a proven track record
of our students going on to well-known art schools and institutions
around the world, we remain confident in ACG’s ability to stand out
from our competitors.”
Operating Review
Enrollment Update
ACG student enrollment for Third Quarter 2021 was 1,220, of
which 625 were enrolled in portfolio training programs, which
consisted of time-based programs and project-based programs.
A total of 44,640 credit hours were delivered for portfolio
training programs during Third Quarter 2021, of which 21,290 credit
hours were delivered for time-based programs and 23,350 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 Third Quarter 2021, compared
to those for the prior-year period:
|
|
ThirdQuarter Ended September 30,
2021 |
|
|
ThirdQuarter Ended September 30,
2020 |
|
|
% Change |
|
|
|
No. of Credit Hours |
|
|
No. of Credit Hours |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time-based Program |
|
|
21,290 |
|
|
|
26,117 |
|
|
|
(18.5 |
%) |
|
Project-based Program |
|
|
23,350 |
|
|
|
18,086 |
|
|
|
29.1 |
% |
|
Total |
|
|
44,640 |
|
|
|
44,203 |
|
|
|
1.0 |
% |
|
During Third Quarter 2021, 595 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.
Third Quarter 2021 Financial Review – GAAP
Results
ACG’s total net revenues for Third Quarter 2021 increased 31.0%
to RMB55.3 million (US$8.6 million), from RMB42.2 million in the
prior-year period, driven primarily by portfolio training and
research-based learning services as a result of ACG’s continuous
efforts in shifting students into project-based programs from
time-based programs and developing various research-based learning
programs to better meet market demand. Revenues from portfolio
training programs were RMB44.2 million, or 80.0% of total net
revenues, during the period. Revenues from overseas study
counselling services, research-based learning services and other
educational services were RMB11.1 million, or 20.0% of total net
revenues, during the period.
Gross profit for Third Quarter 2021 increased 80.2% to RMB28.4
million (US$4.4 million), from RMB15.8 million in the prior-year
period. Gross margin improved to 51.4% during the period, compared
to 37.4% in the prior-year period. The improvement was primarily
contributed by the increased revenues and operating efficiencies
gained from the ongoing shift of ACG’s portfolio training program
mix toward project-based programs and related cost optimization
efforts.
Total operating expenses for Third Quarter 2021 increased to
RMB50.6 million (US$7.9 million), from RMB32.4 million in the
prior-year period, primarily as a result of increased selling
expenses related to higher sales performance bonuses, as well as
increased G&A expenses related to the final RMB10.0 million to
fund ACG’s research project with the Research Institute of Future
Education and Assessment of Tsinghua University this year, which
was deferred from the prior sequential quarter, and increased legal
and professional expenses.
Loss from operations for Third Quarter 2021 was RMB22.2 million
(US$3.4 million), compared to RMB16.5 million in the prior-year
period.
Net loss attributable to ACG for Third Quarter 2021 was RMB26.2
million (US$4.1 million), compared to net loss attributable to ACG
of RMB14.9 million in the prior-year period.
For Third Quarter 2021, basic and diluted losses per common
share attributable to ACG were both RMB0.42 (US$0.07), compared to
basic and diluted losses per common share of RMB0.26 for the
prior-year period. Basic and diluted losses per ADS attributable to
ACG were both RMB0.84 (US$0.14), compared to basic and diluted
losses per ADS of RMB0.52 in the prior-year period.
Nine Months 2021 Financial Review – GAAP
Results
ACG’s total net revenues for Nine Months 2021 increased 28.0% to
RMB129.6 million (US$20.1 million), from RMB101.3 million in the
prior-year period, driven primarily by increased contributions from
portfolio training, research-based learning and foreign language
training services. Revenues from portfolio training programs were
RMB97.2 million, or 75.0% of total net revenues, during the period.
Revenues from overseas study counselling services, research-based
learning services and other educational services were RMB32.4
million, or 25.0% of total net revenues, during the period.
Gross profit for Nine Months 2021 increased 73.6% to RMB59.3
million (US$9.2 million), from RMB34.1 million in the prior-year
period. Gross margin improved to 45.7% during the period, compared
to 33.7% in the prior-year period.
Total operating expenses for Nine Months 2021 increased to
RMB128.5 million (US$19.9 million), from RMB116.1 million in the
prior-year period, primarily as a result of an RMB10.7 million
increase in selling expenses mainly related to higher sales
performance bonuses and marketing and promotion expenses, as well
as increased G&A expenses related to higher legal and
professional fees as noted above.
Loss from operations for Nine Months 2021 improved to RMB69.3
million (US$10.7 million), from RMB81.5 million in the prior-year
period.
Net loss attributable to ACG for Nine Months 2021 improved to
RMB31.1 million (US$4.8 million), compared to net loss attributable
to ACG of RMB67.4 million in the prior-year period.
For Nine Months 2021, basic and diluted losses per common share
attributable to ACG were both RMB0.53 (US$0.08), compared to basic
and diluted losses per common share of RMB1.14 for the prior-year
period. Basic and diluted losses per ADS attributable to ACG were
both RMB1.06 (US$0.16), compared to basic and diluted losses per
ADS of RMB2.28 in the prior-year period.
Non-GAAP Measures
Adjusted net loss attributable to ACG for Third Quarter 2021,
which excludes share-based compensation expense and foreign
currency exchange gain (non-GAAP), was RMB25.9 million (US$4.0
million), compared to adjusted net loss of RMB14.4 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 (non-GAAP) for Third Quarter 2021, were RMB0.41
(US$0.06). Basic and diluted losses per ADS attributable to ACG
excluding share-based compensation expense and foreign currency
exchange loss (non-GAAP) for Third Quarter 2021 were RMB0.82
(US$0.12).
Please see the note about non-GAAP measures and the
reconciliation table at the end of this press release.
Other Data
The number of weighted average ADSs used to calculate basic and
diluted earnings per ADS for Third Quarter 2021 were both 31.4
million. Each ADS represents two common shares.
Balance Sheet Highlights
As of September 30, 2021, ACG’s cash and cash equivalents were
RMB75.2 million (US$11.7 million), working capital deficit was
RMB201.5 million (US$31.3 million), and total shareholders’ equity
was RMB194.1 million (US$30.1 million); compared to cash and cash
equivalents of RMB112.7 million, working capital deficit of
RMB153.9 million, and total shareholders’ equity of RMB199.2
million, respectively, as of December 31, 2020.
Conference Call and Webcast Information (With
Accompanying Presentation)
ACG will host a conference call at 8 p.m. Eastern Time
on Wednesday, November 10, 2021 (9 a.m. Beijing time on Thursday,
November 11, 2021), during which management will discuss the
results of the quarter ended September 30, 2021.
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/47185/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, and market acceptance and
competitiveness of ACG’s portfolio training programs and other
education services; the impact of the COVID-19 pandemic and the
Opinion 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 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, 2020,
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,
2020.
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 ended September
30, 2021, into U.S. dollars are included solely for the convenience
of readers and have been made at the rate of RMB6.4434 to US$1.00,
the noon buying rate as of September 30, 2021, 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 loss excluding share-based compensation
expense and foreign currency exchange gain or loss, and basic and
diluted 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 loss excluding share-based
compensation expense and foreign currency exchange gain or loss and
basic and diluted 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
SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS
|
|
December 31, |
|
|
September 30, |
|
|
September 30, |
|
|
|
|
2020 |
|
|
2021 |
|
|
2021 |
|
|
|
|
RMB |
|
|
RMB |
|
|
USD |
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
112,723,433 |
|
|
75,232,602 |
|
|
11,675,917 |
|
|
Accounts receivable, net |
|
2,245,194 |
|
|
500,000 |
|
|
77,599 |
|
|
Prepaid expenses and other current assets |
|
5,970,973 |
|
|
4,607,987 |
|
|
715,148 |
|
|
Total current assets |
|
120,939,600 |
|
|
80,340,589 |
|
|
12,468,664 |
|
|
|
|
|
|
|
|
|
|
Long-term investments |
|
44,000,000 |
|
|
38,000,000 |
|
|
5,897,508 |
|
|
Goodwill |
|
194,754,963 |
|
|
194,754,963 |
|
|
30,225,496 |
|
|
Property and equipment, net |
|
38,119,216 |
|
|
36,616,838 |
|
|
5,682,844 |
|
|
Intangible assets, net |
|
110,586,111 |
|
|
97,661,111 |
|
|
15,156,767 |
|
|
Right-of-use assets |
|
41,779,086 |
|
|
47,974,936 |
|
|
7,445,593 |
|
|
Deferred income tax assets |
|
2,491,792 |
|
|
2,665,776 |
|
|
413,722 |
|
|
Other non-current assets |
|
22,950,264 |
|
|
26,036,351 |
|
|
4,040,778 |
|
|
Total assets |
|
575,621,032 |
|
|
524,050,564 |
|
|
81,331,372 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accrued expenses and other payables |
|
47,020,182 |
|
|
40,508,329 |
|
|
6,286,795 |
|
|
Short-term loans |
|
6,801,000 |
|
|
— |
|
|
— |
|
|
Payable for business acquisition |
|
4,642,082 |
|
|
— |
|
|
— |
|
|
Lease liabilities-current |
|
16,972,187 |
|
|
18,162,734 |
|
|
2,818,812 |
|
|
Deferred revenues |
|
199,448,112 |
|
|
223,142,487 |
|
|
34,631,171 |
|
|
Total current liabilities |
|
274,883,563 |
|
|
281,813,550 |
|
|
43,736,778 |
|
|
|
|
|
|
|
|
|
|
Lease liabilities-non-current |
|
24,005,765 |
|
|
26,934,026 |
|
|
4,180,095 |
|
|
Deferred income tax liabilities |
|
28,985,472 |
|
|
21,171,739 |
|
|
3,285,802 |
|
|
Total liabilities |
|
327,874,800 |
|
|
329,919,315 |
|
|
51,202,675 |
|
|
|
|
|
|
|
|
|
|
Mezzanine equity-redeemable non-controlling
interests |
|
48,498,368 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
Common shares |
|
4,716,675 |
|
|
4,720,147 |
|
|
732,555 |
|
|
Treasury shares |
|
(11,625,924 |
) |
|
(10,043,516 |
) |
|
(1,558,729 |
) |
|
Additional paid-in capital |
|
541,272,503 |
|
|
540,513,460 |
|
|
83,886,374 |
|
|
Accumulated other comprehensive loss |
|
(37,424,722 |
) |
|
(37,430,740 |
) |
|
(5,809,160 |
) |
|
Accumulated deficit |
|
(298,533,669 |
) |
|
(307,606,020 |
) |
|
(47,739,706 |
) |
|
Total shareholders’ equity attributable to
ACG |
|
198,404,863 |
|
|
190,153,331 |
|
|
29,511,334 |
|
|
Non-redeemable non-controlling interests |
|
843,001 |
|
|
3,977,918 |
|
|
617,363 |
|
|
Total shareholders’ equity |
|
199,247,864 |
|
|
194,131,249 |
|
|
30,128,697 |
|
|
Commitments and contingencies |
|
— |
|
|
— |
|
|
— |
|
|
Total liabilities, mezzanine equity and shareholders’
equity |
|
575,621,032 |
|
|
524,050,564 |
|
|
81,331,372 |
|
|
ATA CREATIVITY GLOBAL AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
|
Three-month Period Ended |
|
|
|
September 30, |
|
|
|
September 30, |
|
|
|
September 30, |
|
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
|
RMB |
|
|
RMB |
|
|
USD |
|
Net revenues |
|
|
42,220,208 |
|
|
|
|
55,297,492 |
|
|
|
|
8,582,036 |
|
|
Cost of revenues |
|
|
26,440,055 |
|
|
|
|
26,860,241 |
|
|
|
|
4,168,644 |
|
|
Gross profit |
|
|
15,780,153 |
|
|
|
|
28,437,251 |
|
|
|
|
4,413,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
1,968,166 |
|
|
|
|
3,490,188 |
|
|
|
|
541,669 |
|
|
Sales and marketing |
|
|
14,426,538 |
|
|
|
|
16,640,530 |
|
|
|
|
2,582,570 |
|
|
General and administrative |
|
|
16,023,050 |
|
|
|
|
30,499,054 |
|
|
|
|
4,733,379 |
|
|
Total operating expenses |
|
|
32,417,754 |
|
|
|
|
50,629,772 |
|
|
|
|
7,857,618 |
|
|
Other operating income, net |
|
|
125,020 |
|
|
|
|
5,384 |
|
|
|
|
836 |
|
|
Loss from operations |
|
|
(16,512,581 |
) |
|
|
|
(22,187,137 |
) |
|
|
|
(3,443,390 |
) |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Investment loss |
|
|
(655,016 |
) |
|
|
|
— |
|
|
|
|
— |
|
|
Impairment loss from investments |
|
|
(1,576,391 |
) |
|
|
|
(6,000,000 |
) |
|
|
|
(931,185 |
) |
|
Interest income, net of interest expenses |
|
|
233,578 |
|
|
|
|
292,710 |
|
|
|
|
45,428 |
|
|
Foreign currency exchange gain (loss), net |
|
|
(65,748 |
) |
|
|
|
15,654 |
|
|
|
|
2,429 |
|
|
Loss before income taxes |
|
|
(18,576,158 |
) |
|
|
|
(27,878,773 |
) |
|
|
|
(4,326,718 |
) |
|
Income tax benefit |
|
|
(2,559,069 |
) |
|
|
|
(1,569,847 |
) |
|
|
|
(243,636 |
) |
|
Net loss |
|
|
(16,017,089 |
) |
|
|
|
(26,308,926 |
) |
|
|
|
(4,083,082 |
) |
|
Net loss attributable to redeemable non-controlling interests |
|
|
(467,589 |
) |
|
|
|
— |
|
|
|
|
— |
|
|
Net loss attributable to non-redeemable non-controlling
interests |
|
|
(697,873 |
) |
|
|
|
(107,953 |
) |
|
|
|
(16,754 |
) |
|
Net loss attributable to ACG |
|
|
(14,851,627 |
) |
|
|
|
(26,200,973 |
) |
|
|
|
(4,066,328 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil income
taxes |
|
|
(869,831 |
) |
|
|
|
36,873 |
|
|
|
|
5,723 |
|
|
Comprehensive loss attributable to ACG |
|
|
(15,721,458 |
) |
|
|
|
(26,164,100 |
) |
|
|
|
(4,060,605 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted losses per
common share attributable to ACG |
|
|
(0.26 |
) |
|
|
|
(0.42 |
) |
|
|
|
(0.07 |
) |
|
Basic and diluted losses per ADS
attributable to ACG |
|
|
(0.52 |
) |
|
|
|
(0.84 |
) |
|
|
|
(0.14 |
) |
|
ATA CREATIVITY GLOBAL AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
|
Nine-month Period Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
|
RMB |
|
|
RMB |
|
|
USD |
|
Net revenues |
|
|
101,319,831 |
|
|
|
|
129,647,987 |
|
|
|
|
20,121,052 |
|
|
Cost of revenues |
|
|
67,184,166 |
|
|
|
|
70,385,064 |
|
|
|
|
10,923,591 |
|
|
Gross profit |
|
|
34,135,665 |
|
|
|
|
59,262,923 |
|
|
|
|
9,197,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
6,374,836 |
|
|
|
|
8,736,780 |
|
|
|
|
1,355,927 |
|
|
Sales and marketing |
|
|
35,872,541 |
|
|
|
|
46,612,135 |
|
|
|
|
7,234,090 |
|
|
General and administrative |
|
|
73,842,659 |
|
|
|
|
73,189,402 |
|
|
|
|
11,358,817 |
|
|
Total operating expenses |
|
|
116,090,036 |
|
|
|
|
128,538,317 |
|
|
|
|
19,948,834 |
|
|
Other operating income, net |
|
|
471,955 |
|
|
|
|
17,247 |
|
|
|
|
2,677 |
|
|
Loss from operations |
|
|
(81,482,416 |
) |
|
|
|
(69,258,147 |
) |
|
|
|
(10,748,696 |
) |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Investment income (loss) |
|
|
(1,779,478 |
) |
|
|
|
33,542,154 |
|
|
|
|
5,205,661 |
|
|
Impairment loss from investments |
|
|
(1,576,391 |
) |
|
|
|
(6,000,000 |
) |
|
|
|
(931,185 |
) |
|
Interest income, net of interest expenses |
|
|
884,670 |
|
|
|
|
867,482 |
|
|
|
|
134,631 |
|
|
Foreign currency exchange loss, net |
|
|
(126,772 |
) |
|
|
|
(141,132 |
) |
|
|
|
(21,903 |
) |
|
Loss before income taxes |
|
|
(84,080,387 |
) |
|
|
|
(40,989,643 |
) |
|
|
|
(6,361,492 |
) |
|
Income tax benefit |
|
|
(10,732,321 |
) |
|
|
|
(7,976,998 |
) |
|
|
|
(1,238,011 |
) |
|
Net loss |
|
|
(73,348,066 |
) |
|
|
|
(33,012,645 |
) |
|
|
|
(5,123,481 |
) |
|
Net loss attributable to redeemable non-controlling interests |
|
|
(1,615,454 |
) |
|
|
|
(714,121 |
) |
|
|
|
(110,830 |
) |
|
Net loss attributable to non-redeemable non-controlling
interests |
|
|
(4,343,933 |
) |
|
|
|
(1,198,928 |
) |
|
|
|
(186,071 |
) |
|
Net loss attributable to ACG |
|
|
(67,388,679 |
) |
|
|
|
(31,099,596 |
) |
|
|
|
(4,826,580 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil income
taxes |
|
|
703,629 |
|
|
|
|
(6,018 |
) |
|
|
|
(934 |
) |
|
Comprehensive loss attributable to ACG |
|
|
(66,685,050 |
) |
|
|
|
(31,105,614 |
) |
|
|
|
(4,827,514 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted losses per
common share attributable to ACG |
|
|
(1.14 |
) |
|
|
|
(0.53 |
) |
|
|
|
(0.08 |
) |
|
Basic and diluted losses per ADS
attributable to ACG |
|
|
(2.28 |
) |
|
|
|
(1.06 |
) |
|
|
|
(0.16 |
) |
|
RECONCILIATIONS OF NON-GAAP
MEASURESTO THE MOST COMPARABLE GAAP
MEASURES
|
|
|
Three-month Period Ended |
|
|
|
Nine-month Period Ended |
|
|
|
|
September 30, |
|
|
|
|
September 30, |
|
|
|
|
September 30, |
|
|
|
|
September 30, |
|
|
|
|
|
2020 |
|
|
|
|
2021 |
|
|
|
|
2020 |
|
|
|
|
2021 |
|
|
|
|
|
RMB |
|
|
|
RMB |
|
|
|
RMB |
|
|
|
RMB |
|
GAAP net loss attributable to
ACG |
|
|
(14,851,627 |
) |
|
|
|
(26,200,973 |
) |
|
|
|
(67,388,679 |
) |
|
|
|
(31,099,596 |
) |
|
Share-based compensation
expenses |
|
|
388,208 |
|
|
|
|
308,150 |
|
|
|
|
1,384,300 |
|
|
|
|
797,448 |
|
|
Foreign currency exchange loss
(gain), net |
|
|
65,748 |
|
|
|
|
(15,654 |
) |
|
|
|
126,772 |
|
|
|
|
141,132 |
|
|
Non-GAAP net loss attributable
to ACG |
|
|
(14,397,671 |
) |
|
|
|
(25,908,477 |
) |
|
|
|
(65,877,607 |
) |
|
|
|
(30,161,016 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP losses per common share
attributable to ACG |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
(0.26 |
) |
|
|
|
(0.42 |
) |
|
|
|
(1.14 |
) |
|
|
|
(0.53 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP losses per common
share attributable to ACG |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
(0.25 |
) |
|
|
|
(0.41 |
) |
|
|
|
(1.12 |
) |
|
|
|
(0.52 |
) |
|
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