AACG

Kevin Ma mentioned that in 2025 overall student demand normalized, with lower total revenues in fourth quarter 2025 compared to same period last year but revenues from research-based learning and other educational services increased year over year. Rob Aitsuma provided an overview of financial and operating results for fourth quarter 2025 and full year 2025. Jun Zhang concluded with an update on the company's long-term growth strategy, stating the goal is to maintain leading position in creative art education in China, leveraging excellent teaching team, high-quality service product combinations, global cooperation network; plans to optimize service group, expand online courses, integrate sales and teaching resources into larger schools, merge lower-level schools, and use effective student acquisition channels

Continue executing existing operational initiatives, introduce measures to drive cost savings and reduce operating expenses, optimize service portfolio, enhance classroom utilization by expanding online course offerings and increasing student capacity, strategically allocate sales and teaching resources to larger campus locations, consolidate select campuses in less active markets, streamline sales organization and prioritize cost-effective student acquisition channels

For fourth quarter 2025, total net revenue was RMB 89.1 million, decreased 11.7% as compared to the fourth quarter of 2024. The decrease was primarily due to decreased revenue contributions from portfolio trading programs and overseas study counseling services, partially offset by increased revenue contributions from research-based learning services and other educational services. Gross profit for fourth quarter 2025 was RMB 60.2 million, compared to RMB 63.7 million in fourth quarter 2024. Growth margin was 56.4% during the fourth quarter of 2025, compared to 63.1% in the prior year period. Total operating expenses was RMB 73.3 million in fourth quarter 2025, compared to RMB 46.8 million in fourth quarter 2024. Increased primarily as a result of one-time goodwill impairment charge for RMB 33.9 million recorded in Q4 2025. Net loss attributed to ACG during the fourth quarter 2025 was RMB 26.3 million, compared to the net income attributed to ACG of RMB 13.3 million in the prior year period. For full year 2025, total net revenue was RMB 268.1 million, flat from prior year period. Gross profit for full year 2025 was RMB 130.3 million, a decrease of 7.8% from RMB 141.3 million in full year 2024. Total operating expenses for RMB 194.6 million in full year 2025, an increase of 5.5% from RMB 184.5 million in full year 2024. Net loss attributed to ACG in full year 2025 was RMB 48 million compared to RMB 36.1 million. During fourth quarter 2025, the main revenue contributor remained the portfolio training service, accounting for 68.8% of total net revenue. Project-based programs have become the main choice for our students, accounting for 74.9% of total credit hours delivered. Revenues from research-based learning and overseas study counseling increased by 4.6% during fourth quarter 2025

Discussions on risks and uncertainties that may cause actual results to differ materially from those contained in forward-looking statements, including factors that could affect projections and assumptions such as market demand changes, ability to control operating costs

There are no questions at this time.

Q: None, A: None