ATA Creativity Global Q4 FY2024 earnings call

• In 2024, concentrated on making college educational service available, invested in teaching team, expanded institutional partnerships, and explored improving operation efficiencies including integrating AI. - Fourth quarter 2024 had significant growth in net revenues and bottom line, net revenues up over 20%, gross profit improved similarly, portfolio trading programs credit hours delivered up over 35%, net income attributable to ATA Creativity Global grew by 54.9%. - Full year 2024 net revenue growth exceeded high end of guidance, gross profit up 23.2%, student enrollment rates grew, core business aerial training facilities had decreased error rates and more deliveries. - Fourth quarter operation highlights: Portfolio Credit Service was majority revenue, demand for portfolio trading service strong, organized small group classes, revenues from overseas study and other educational services up over 46%, strategic decision to discontinue junior Arc service to lower G&A expense. - 2025 application season students received early admission results from prestigious schools, expanded partnership base to two additional higher education institutions.

Fourth quarter 2024 total net revenue was RMB109 million, an increase of 20.7% from RMB83.6 million in the fourth quarter of 2023. Full year 2024 total net revenues increased by 21% to RMB268.1 million from RMB221.6 million in the prior year period. Portfolio Credit Service accounted for the majority of revenues in the fourth quarter, with project-based programs contributing to 66.8% total credit in delivery. For full year 2024, portfolio training student enrollment increased by 12.9% to 2,807 and all other program student enrollment increased by 20.2% to 1,974. Full year 2024 credit hours delivered significantly increased by 30.8%, with time-based program credit hours increasing by 32% and project-based program credit hours increasing by 30.2%.

• ATA Creativity Global anticipates total net revenues for the year ending December 31, 2025 to be between approximately RMB276 million to RMB281 million, representing a year-over-year increase of around 3% to 5% from 2024. - Growth is primarily driven by portfolio training services, which is a significant student acquisition channel for other businesses.

Q: Are there any questions at this time?

A: There are no questions at this time.