ATA Creativity Global Q2 FY2025 earnings call

• Second quarter 2025 was marked by year-over-year increase in net revenues and gross profit. Growth in net revenues was mainly from overseas study counseling services, other educational services, and research-based learning services, combined revenue up over 50%.
• First half 2025 delivered strong growth with double-digit increase in net revenues and gross profit. Value-added offerings were primary drivers.
• Q2 2025 operational highlights: Portfolio training accounted for 68% of net revenues; project-based programs credit hours up 25.7%; revenues from research-based learnings, etc., grew 54.2% y-o-y. Delivered high-quality research-based learning projects, film festival tour, and 4000+ offers for 2025 admissions.
• Q2 2025 key financial metrics: Net revenues RMB 55.9M (+8% y-o-y), gross profit RMB 28.3M (+10.2% y-o-y), gross margin 50.6%. H1 2025: Net revenues RMB 111.7M (+11.8% y-o-y), gross profit RMB 53.7M (+12.8% y-o-y), gross margin 48.1%.
• Enrollment: Q2 2025 total student enrollment 1050 (-3.1% y-o-y), portfolio training 553, other programs 494. Credit hours delivered slightly up 0.3% y-o-y, project-based up 25.7%, time-based down.

In second quarter 2025, portfolio training services were the main revenue contributor, accounting for 68% of total net revenues. Project-based programs credit hours delivered increased by 25.7% compared to Q2 2024 and contributed to about 76.7% of total credit hours delivered. Revenues from research-based learnings, overseas study counseling, and other educational services grew by 54.2% compared to the prior year period. For first half 2025, total net revenues increased to 11.8% to RMB 111.7 million from RMB 99.9 million in the prior year period, with growth mainly attributed to research-based learnings, overseas study counseling, and other educational services.

• Expect total net revenues for full year 2025 between RMB 276 million to RMB 281 million, a year-over-year increase of around 3% to 5% from full year 2024.
• Anticipate portfolio training to remain the main pillar of revenues with increased contributions from other lines of business.

The discussions on today's call may include forward-looking statements which involve certain risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Please refer to the company's most recent SEC filings for a more complete description of risk factors that could affect these projections and assumptions. The company assumes no obligation to update forward-looking statements as a result of new information, future events or otherwise.

Q: Are there any questions?

A: There are no questions at this time