ATA Creativity Global Q3 FY2024 earnings call

• During the third quarter of 2024, ACG focused on providing quality service to students and parents, developing tailored product and service offerings. There was double-digit growth in net revenues and student enrollment. - For the nine months of 2024, net revenues, overall enrollment rate, and credit hour deliveries all increased by over 20% compared to the prior year. - Portfolio training service contributed over 70% of total revenues in both the third quarter and nine months of 2024. - Student enrollments for research-based learning and overseas study counseling increased by over 20% in the third quarter of 2024 compared to the prior year. - Expanded partnership network by establishing new strategic partnerships, such as with Leeds Conservatoire in the UK. - Growth strategy includes organic growth, strengthening and expanding geographic footprint, launch of new services, and potential M&A opportunities. - Encouraged students to enroll in portfolio training services' project-based track, with students showing interest in value-added offerings. - Expanded training center coverage in existing cities, opened ACG London Center, and introduced new research-based learning programs.

For the third quarter of 2024, total net revenue was RMB67.3 million, an increase of 13.1% from RMB59.5 million in the third quarter of 2023. Portfolio training service contributed more than 70% of total revenues. Gross profit for the third quarter of 2024 was RMB30 million, an increase of 2.6% from RMB29.2 million in the prior year period. For the nine months of 2024, total net revenues increased 21.1% to RMB167.1 million from RMB138 million in the prior year period. Portfolio training, research-based learning, and overseas study counseling services contributed to the revenue increase. Gross profit for the nine months of 2024 was RMB77.6 million, an increase of 24.6% from RMB52.3 million in the prior year period. Portfolio training service remained the main revenue source, accounting for over 70% of total revenues in both the third quarter and nine months of 2024.

• Believes it is on track to achieve full year 2024 revenue guidance of RMB233 million to RMB255 million, representing a year-over-year increase of 5% to 15%. - Portfolio training services will continue to be the primary growth driver for the business and an important student acquisition channel for other businesses in the remainder of 2024.