ATA Creativity Global Q2 FY2024 earnings call

• Core business: Student demand for portfolio training services continued, with portfolio training services revenue at RMB40.2 million in Q2 2024, a 41.9% y-o-y increase. Enrollment in portfolio training programs was 612 in Q2 2024 vs 540 in the prior year, and credit hours delivered were up 49.3% y-o-y.
• Expansion: Continued expansion in research-based learning and overseas study counseling services. Hosted ACG Arts Education Exhibition in April, UN Sustainable Development Goals Arts Boot Camp in Q2 2024, and intangible cultural heritage-themed camps.
• Student outcomes: Many ACG students received offers from top institutions worldwide, indicating strong student demand for overseas study opportunities.

The core product segment is portfolio training services. In second quarter 2024, portfolio training services contributed RMB40.2 million in revenue, a 41.9% year-over-year increase. Total net revenue for second quarter 2024 was RMB41.8 million, an increase of 42.8% from the second quarter of 2023. Gross margin improved to 49.6% during second quarter 2024 from 39.5% in the prior year period. Net loss attributable to ATA Creativity Global was RMB15.8 million during second quarter 2024 compared to RMB17.2 million in the prior year period. For the first half of 2024, total net revenues increased 27.2% to RMB99.9 million compared to RMB78.6 million in the prior year period. Gross margin improved to 47.7% from 42.1% in the prior year period. Net loss attributable to ATA Creativity Global was RMB34.7 million compared to RMB35 million.

• Reiterated revenue expectation for 2024: Anticipates total revenue to be in the range of RMB230 million to RMB235 million, a 5% to 50% increase from fiscal year 2023.
• Focus: Focus on growing student base, expanding current business, and exploring potential acquisition opportunities.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from projections. Information about risks associated with investing in ATA Creativity Global is included in its filings with the Securities and Exchange Commission.

Q: Are there any questions?

A: There are no questions at this time.