ATA Creativity Global Q1 FY2025 earnings call

• Q1 2025 was highlighted by approximately 16% increase in net revenue and gross profit, driven by increased contribution from portfolio training and research-based learning service. - Portfolio training services continued to account for the majority of revenue. Total credit hours delivered increased by 5.8% with project-based programs contributing about 74% of total credit hours delivered, translating into an 11.5% growth in revenue from portfolio training programs. - Combined revenues from research-based learning, overseas study counselling, and other educational services increased by more than 28% and became responsible for nearly 30% of total net revenues. - During Q1 2025, various in-person and online research-based learning projects were brought to students, including themed camps, AI training camps, tours, and fashion week projects. - ACG students received numerous admissions from prestigious overseas institutions. - ACG was awarded the 2025 Forbes China Studying Abroad leading brand. - In March, ACG toured five key cities in China for the Spring Art Education Exhibition.

In Q1 2025, net revenue and gross profit respectively increased by approximately 16%. Portfolio training services accounted for the majority of revenue. Total credit hours delivered increased by 5.8%, with project-based programs contributing about 74% of total credit hours delivered, translating into an 11.5% growth in revenue from portfolio training programs. Combined revenues from research-based learning, overseas study counselling, and other educational services increased by more than 28% and became responsible for nearly 30% of total net revenues. Total net revenues for Q1 2025 were RMB55.8 million, gross profit was RMB25.4 million, gross margin was 45.5%, total operating expenses were RMB42.2 million, loss from operations was RMB16.8 million, and net loss attributable to ATA Creativity Global was RMB13.3 million. Total student enrollment in Q1 2025 was 1,104, a decrease of 19.4% from the prior year period, with portfolio training student enrollment at 626 and enrollment for other programs at 478. Credit hours delivery slightly increased by 5.8% driven by a 15.5% increase in project-based programs.

• Expected to report total net revenues of between approximately RMB276 million to RMB281 million for the year ended December 31, 2025, representing a year-over-year increase of around 3% to 5% for full year of 2024. - Growth is primarily driven by portfolio training services and supported by all other lines of business.

Q: A: Q: A: