Form: 6-K

Report of foreign issuer [Rules 13a-16 and 15d-16]

March 26, 2026

 

Exhibit 99.1

 

 

 

ATA Creativity Global Reports Q4 and FY 2025 Financial Results

 

Conference Call Scheduled for Wednesday, March 25, at 9:00 p.m. Eastern Time (Thursday, March 26, at 9:00 a.m. Beijing Time) with Accompanying Audio and Slide Webcast

 

Beijing, China, March 25, 2026 — ATA Creativity Global (“ACG” or the “Company”, Nasdaq: AACG), an international educational services company focused on providing quality learning experiences that cultivate and enhance students’ creativity, today announced preliminary unaudited financial results for the fourth quarter (“Q4 2025”) and twelve-month (“FY 2025”) periods ended December 31, 2025.

 

All amounts presented in U.S. dollars ($) in this news release are based on a conversion rate of RMB6.9931 to $1.00 for both reporting periods ended December 31, 2025.

 

Q4 2025 Financial Highlights

 

·Net revenues for Q4 2025 of RMB89.1 million (or $12.7 million), compared to RMB100.9 million in Q4 2024.
·Gross profit for Q4 2025 of RMB50.2 million (or $7.2 million), compared to RMB63.7 million in Q4 2024. Q4 2025 gross margin was 56.4% during the current period, compared to 63.1% in the prior-year period.
·Net loss attributable to ACG for Q4 2025 of RMB26.3 million (or $3.8 million), compared to net income attributable to ACG of RMB13.3 million in Q4 2024.
·Cash and cash equivalents were RMB85.2 million (or $12.2 million) as of December 31, 2025.

 

Full Year 2025 Financial Highlights

 

·Net revenues for FY 2025 of RMB268.1 million (or $38.3 million), consistent with RMB268.1 million in FY 2024.
·Gross profit for FY 2025 of RMB130.3 million (or $18.6 million), from RMB141.3 million during FY 2024. Gross margin was 48.6% during the current period, compared to 52.7% during FY 2024.
·Net loss attributable to ACG for FY 2025 was RMB48.0 million (or $6.9 million), compared to net loss attributable to ACG of RMB36.1 million in FY 2024.

 

Q4 2025 Operational Highlights

 

·Student enrollment during Q4 2025 was 921, compared to 1,038 in Q4 2024.

-61.7% of students were enrolled in ACG’s portfolio training programs, which consisted of time-based programs and project-based programs.
-38.3% of students were enrolled in ACG’s other programs, which mainly consisted of overseas study counselling services and research-based learning services.

·Credit hours delivered during Q4 2025 were 58,806, representing a decrease of 10.5% compared to Q4 2024.

 

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The following is a summary of the credit hours delivered for ACG’s portfolio training programs for Q4 2025, compared to those for the prior-year period:

 

   Q4 2025   Q4 2024     
   No. of Credit Hours   No. of Credit Hours   % Change 
Time-based Program   14,787    21,781    (32.1)%
Project-based Program   44,019    43,898    0.3%
Total   58,806    65,679    (10.5)%

 

Management Commentary

 

Mr. Kevin Ma, Chairman and CEO of ACG, stated, “We closed the year with revenues remaining consistent with last year. While performance for our portfolio training business line was impacted by increased market competition, we reported strong growth in all other business lines. During the year, we made continuous efforts to streamline our operations and improve efficiency.”

 

Mr. Ma continued, “We are pleased that our various value-added services have continued to gain momentum among ACG students. During Q4 2025, we hosted ten online Master Classes co-developed and lectured by instructors from Carnegie Mellon University, Harvard University, as well as University of Arts London, Royal College of Art, and a number of winter camps, as well as the Open Hack Shanghai Fashion Week project. In October, we organized the 2025 ACG Expert Tour in several cities including Shanghai, Wuhan, Chengdu, Chongqing, and Suzhou, giving over 1,000 students the opportunity to interact with both academia and industry experts. We also strategically redirected internal resources to provide ACG students with world-class educational and academic support. During Q4 2025, we established ACG’s first music preparatory center in association with Leeds Conservatoire in Chengdu, and implemented a series of service enhancements to our ACG Japan Center, which now hosts Master Class projects and provides improved class offerings and course customization, working in collaboration with more Japanese arts schools.”

 

Mr. Jun Zhang, President of ACG, added “In Q1, our flagship initiative has been the Finland Sustainable Design & Art Research Program, which offers students the opportunity to visit Aalto University in Finland, one of the world’s leading institutions in design, architecture and engineering, and participate in Arctic Center sustainable development workshops to learn about Arctic and Sámi culture. In parallel, in order to support students in strengthening their application portfolios, we are hosting the 2026 Competition Winter Camp in January through a hybrid format of online and in-person classes. The camp targets students specializing in architecture, interaction design, interior design, landscape design, game design and digital media, and focuses on helping students on preparing interdisciplinary portfolios for participation in various international and national competitions in their respective areas of focus. We remained committed to helping our students pursue their aspirations in creative arts.”

 

Mr. Zhang continued, “Our goal in 2026 is to maintain our leading position in China’s creative arts education industry amidst increasing competition. We will leverage our skilled and experienced teaching team, high-quality existing and new offerings, and an extensive network of global partnerships with arts institutions to achieve this objective. At the same time, we expect to build on our existing operational efficiency initiatives and take additional steps to manage operating and administrative expenses in order to improve our profitability. Key priorities include optimizing our services, improving classroom utilization, strategically allocating teaching resources to larger campus locations, streamlining sales organization and prioritizing cost-effective and proven student acquisition channels.”

 

Registered Direct Offering of the Company’s ADSs

 

On November 17, 2025, the Company entered into a subscription agreement (the “Subscription Agreement”) with three purchasers for a registered direct offering of 11,067,547 of its American Depositary Shares (“ADSs”) at the price of $0.8 per ADS (equivalent to $0.4 per common share) (the “Registered Direct Offering”). The closing of the Registered Direct Offering occurred on January 28, 2026. The Company received gross proceeds of approximately US$8.85 million from the issuance and sale of the ADSs before deducting the offering expenses payable by the Company.

 

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Conference Call and Webcast Information (With Accompanying Presentation)

 

ACG will host a conference call at 9:00 p.m. Eastern Time on Wednesday, March 25 (9:00 a.m. Beijing Time on Thursday, March 26), during which management will discuss Q4 2025 and Fiscal Year 2025 results.

 

To participate in the conference call, please use the following dial-in numbers about 10 minutes prior to the scheduled conference call time:

 

U.S. & Canada (Toll-Free):   +1 (877) 407-9122
International (Toll):   +1 (201) 493-6747
China (Local Access):   (400) 120 2840
Hong Kong (Local Access):   (800) 965561

 

A simultaneous audio webcast including accompanying slides may be accessed via the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=cBJYYCSw, or via the investor relations section of the Company’s website https://ir.atai.net.cn/.

 

For those unable to listen to the live webcast, the replay will be available on the Company’s website shortly after the conclusion of the call.

 

Q4 2025 Financial Review – GAAP Results

 

ACG’s total net revenues for Q4 2025 of RMB89.1 million (or $12.7 million), decreased by 11.7% as compared to RMB100.9 million in Q4 2024, primarily due to decreased revenue contributions from portfolio training programs and overseas study counselling services, partially offset by increased revenue contributions from research-based learning services and other educational services. Specifically:

 

-Net revenues from portfolio training programs of RMB61.3 million (or $8.8 million) decreased by 17.5% as compared to Q4 2024 and accounted for 68.8% of total net revenues. Decrease in portfolio training revenues was primarily due to an adjustment of portfolio training offerings and fee structure in response to increased market competition during the period.
-Net revenues from overseas study counselling services, research-based learning services and other educational services of RMB27.8 million (or $4.0 million) increased by 4.6% as compared to Q4 2024 and accounted for 31.2% of total net revenues. Increase in revenues was primarily attributable to increased contribution from other educational services related to in-school art classes in partnership schools, and was partially offset by deceased contribution from overseas study counselling services.

 

Gross profit for Q4 2025 of RMB50.2 million (or $7.2 million) decreased by 21.1%, from RMB63.7 million in Q4 2024, mainly as a result of lower net revenues and higher research-based learning services outsourcing costs and part-time teacher costs. As a result, gross margin decreased to 56.4%, compared to 63.1% in the prior-year period.

 

Total operating expenses for Q4 2025 were RMB73.3 million (or $10.5 million), representing an increase of 56.8% from RMB46.8 million in Q4 2024. The increase was mainly due to a one-time goodwill impairment charge of RMB33.9 million (or $4.8 million) recorded in Q4 2025 which was not recorded in Q4 2024, and partially offset by decreased selling expenses during the period. Excluding goodwill impairment charge, total operating expenses for Q4 2025 decreased by 15.7% as compared to Q4 2024. Furthermore, for Q4 2025:

 

-Selling expenses of RMB20.1 million (or $2.9 million) decreased by RMB7.4 million or 27.1% from Q4 2024, mainly as a result of decreased sales and a decreased number of sales personnel.

 

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-General & administrative expenses of RMB18.6 million (or $2.7 million), slightly increased by RMB0.1 million or 0.9% from Q4 2024.
-Research and development expenses of RMB0.7 million (or $0.1 million), slightly decreased by RMB0.1 million or 8.6% from Q4 2024.

 

Thus in Q4 2025, loss from operations for Q4 2025 was RMB23.0 million (or $3.3 million), compared to income from operations of RMB17.0 million in Q4 2024. Net loss attributable to ACG for Q4 2025 was RMB26.3 million (or $3.8 million), compared to net income attributable to ACG of RMB13.3 million in Q4 2024.

 

Basic and diluted losses per common share attributable to ACG for Q4 2025 were RMB0.42 (or $0.06), compared to basic and diluted earnings per common share of RMB0.21 for Q4 2024. Basic and diluted losses per ADS attributable to ACG were RMB0.84 or (or $0.12), compared to basic and diluted earnings per ADS of RMB0.42 in Q4 2024.

 

FY 2025 Financial Review – GAAP Results

 

ACG’s total net revenues for FY 2025 was RMB268.1 million (or $38.3 million), consistent with RMB268.1 million during FY 2024. Specifically:

 

-Net revenues from portfolio training programs of RMB187.2 million (or $26.8 million) decreased by 6.1% as compared to FY 2024 and accounted for 69.8% of total net revenues.
-Net revenues from overseas study counselling services, research-based learning services and other educational services of RMB81.0 million (or $12.0 million) increased by 17.8% as compared to FY 2024 and accounted for 30.2% of total net revenues.

 

Gross profit for FY 2025 was RMB130.3 million (or $18.6 million), representing a decrease of 7.8% from RMB141.3 million during FY 2024, while gross margin was 48.6% during the period, compared to 52.7% during FY 2024, decreased primarily due to increased cost of revenues related to research-based learning services outsourcing costs and part-time teacher costs.

 

Total operating expenses for FY 2025 were RMB194.6 million (or $27.8 million), representing an increase of 5.5% from RMB184.5 million in FY 2024. The increase was primarily due to a one-time goodwill impairment charge of RMB33.9 million (or $4.8 million) recorded in Q4 2025, and partially offset by overall lowered operating expenses as well as an RMB3.8 million (or $0.5 million) collection of previously impaired loans and other receivables recorded in Q1 2025. Excluding goodwill impairment charge and the collection of previously impaired loans and other receivables, total operating expenses for FY 2025 decreased by 10.8% as compared to FY 2024. Furthermore, for FY 2025:

 

-Selling expenses of RMB82.6 million (or $11.8 million) decreased by RMB17.3 million or 17.3% from FY 2024, due to lower headcount in sales personnel and decreased sales incentives compared to FY 2024.
-General & administrative expenses of RMB78.8 million (or $11.3 million) decreased by RMB2.1 million or 2.6% from FY 2024, mainly as a result of decreased administrative personnel expenses and a decrease in amortization expenses related to purchase price accounting from a previously completed acquisition.
-Research and development expenses of RMB3.1 million (or $0.4 million) decreased by RMB0.6 million or 17.1% from FY 2024, as ACG’s system development was completed in Q2 2024.

 

Thus loss from operations for FY 2025 was RMB64.1 million (or $9.2 million), compared to loss of RMB43.0 million during FY 2024. Net loss attributable to ACG for FY 2025 was RMB48.0 million (or $6.9 million), compared to net loss attributable to ACG of RMB36.1 million during FY 2024, as a result of widened operating loss, and was partially offset by a one-time investment gain from previous investment.

 

For FY 2025, basic and diluted losses per common share attributable to ACG were RMB0.76(or $0.11), compared to RMB0.57 during FY 2024. Basic and diluted losses per ADS attributable to ACG were RMB1.52 (or $0.22), compared to RMB1.14 during FY 2024.

 

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Non-GAAP Measures

 

Adjusted net loss attributable to ACG for FY 2025, which excludes share-based compensation expense and foreign currency exchange losses, net, was RMB47.5million (or $6.8 million), compared to adjusted net loss of RMB33.3 million in FY 2024.

 

Basic and diluted losses per common share attributable to ACG excluding share-based compensation expense and foreign currency exchange losses, net for FY 2025, were RMB0.75(or $0.011). Basic and diluted losses per ADS attributable to ACG excluding share-based compensation expense and foreign currency exchange losses, net for FY 2025 were RMB1.50 (or $0.22).

 

Please see the note about non-GAAP measures and the reconciliation table at the end of this press release.

 

Other Data

 

The number of weighted average ADSs used to calculate basic and diluted earnings per ADS for Q4 2025 were both 31.6 million, respectively. The number of weighted average ADSs used to calculate basic and diluted losses per ADS for FY 2025 were both 31.7 million. Each ADS represents two common shares.

 

Balance Sheet Highlights

 

As of December 31, 2025, ACG’s cash and cash equivalents were RMB85.2 million (or $12.2 million), working capital deficit was RMB233.2 million (or $33.3 million), and total shareholders’ equity was RMB32.0 million (or $4.6 million); compared to cash and cash equivalents of RMB36.5 million, working capital deficit of RMB287.9 million, and total shareholders’ equity of RMB79.6 million, respectively, as of December 31, 2024.

 

About ATA Creativity Global

 

ATA Creativity Global is an international educational services company focused on providing quality learning experiences that cultivate and enhance students’ creativity. ATA Creativity Global offers a wide range of education services consisting primarily of portfolio training, research-based learning services, overseas study counselling and other educational services through its training center network. For more information, please visit ACG’s website at www.atai.net.cn.

 

Cautionary Note Regarding Forward-looking Statements

 

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995.

 

These forward-looking statements can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “future,” “intend,” “look forward to,” “outlook,” “guidance,” “plan,” “should,” “will,” and similar terms and include, among other things, statements regarding ACG’s future growth and results of operations; ACG’s plans for financing, mergers and acquisitions generally; ACG’s growth strategy, anticipated growth prospects and subsequent business activities; ACG’s 2025 guidance; market demand for, and market acceptance and competitiveness of, ACG’s portfolio training programs and other education services.

 

The factors that could cause the Company’s actual financial and operating results to differ from what the Company currently anticipates may include its ability to develop and create content that could accommodate needs of potential students, its ability to provide effective creative related international education services and control sales and marketing expenses, its recognition in the marketplace for services it delivered and branding it established, its ability to maintain market share amid increasing competition, its ability to identify and execute on M&A opportunities within the education sector and its ability to integrate the acquired business, the economy of China, uncertainties with respect to China’s legal and regulatory environments, the impact of the political tensions between the United States and China or other international tensions, and the impact of actual or potential international trade or military conflicts, and other factors stated in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”).

 

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The financial information contained in this release should be read in conjunction with the consolidated financial statements and related notes included in the Company’s annual report on Form 20-F for its fiscal year ended December 31, 2024, and other filings that ACG has made with the SEC. The filings are available on the SEC’s website at www.sec.gov and at ACG’s website at www.atai.net.cn. For additional information on the risk factors that could adversely affect the Company’s business, financial conditions, results of operations, and prospects, please see the “Risk Factors” section of the Company’s Form 20-F for the fiscal year ended December 31, 2024.

 

The forward-looking statements in this release involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates, and projections about ACG and the markets in which it operates. The Company undertakes no obligation to update forward-looking statements, which speak only as of the date of this release, to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that its expectations and assumptions expressed in these forward-looking statements are reasonable, the Company cannot assure you that its expectations and assumptions will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

 

Currency Convenience Translation

 

The Company’s financial information is stated in Renminbi (“RMB”), the currency of the People’s Republic of China. The translations of RMB amounts for the quarter and year ended December 31, 2025, into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB6.9931 to $1.00, the noon buying rate as of December 31, 2025, in New York for cable transfers in RMB per U.S. dollar as set forth in the H.10 weekly statistical release of the Federal Reserve Board. Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under U.S. generally accepted accounting principles (“GAAP”).

 

About Non-GAAP Financial Measures

 

To supplement ACG’s consolidated financial information presented in accordance with U.S. GAAP, ACG uses the following non-GAAP financial measures: net income (loss) excluding share-based compensation expense and foreign currency exchange gain or loss, and basic and diluted earnings (losses) per common share and ADS excluding share-based compensation expense and foreign currency exchange gain or loss.

 

The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. ACG believes these non-GAAP financial measures provide meaningful supplemental information about its performance by excluding share-based compensation expense and foreign currency exchange gain or loss, which may not be indicative of its operating performance.

 

ACG believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to ACG’s historical performance. ACG computes its non-GAAP financial measures using a consistent method from period to period. ACG believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP net income (loss) excluding share-based compensation expense and foreign currency exchange gain or loss and basic and diluted earnings (losses) per common share and per ADS excluding share-based compensation expense and foreign currency exchange gain or loss is that share-based compensation charges and foreign currency exchange gain or loss have been, and are expected to continue to be for the foreseeable future, a significant recurring expense in ACG’s business.

 

Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The table captioned “Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures” shown at the end of this news release has more details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures used by ACG.

 

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For more information on our company, please contact the following individuals:

 

At the Company Investor Relations
ATA Creativity Global The Equity Group Inc.
Ruobai Sima, CFO Lena Cati, Senior Vice President
+86 10 6518 1133 x 5518 212-836-9611
simaruobai@acgedu.cn lcati@equityny.com
   
  Alice Zhang, Associate
  212-836-9610
  azhang@equityny.com

 

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ATA CREATIVITY GLOBAL AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

   December 31,   December 31,   December 31, 
   2024   2025   2025 
   RMB   RMB   USD 
ASSETS               
Current assets:               
Cash and cash equivalents   36,523,995    85,236,288    12,188,627 
Accounts receivable   2,712,845    298,377    42,667 
Prepaid expenses and other current assets   27,402,834    25,832,459    3,693,993 
Total current assets   66,639,674    111,367,124    15,925,287 
                
Long-term investments   38,000,000         
Property and equipment, net   38,669,283    32,139,682    4,595,913 
Intangible assets, net   46,264,914    32,482,513    4,644,938 
Goodwill   196,289,492    162,380,773    23,220,142 
Other non-current assets   35,156,141    39,288,983    5,618,250 
Right-of-use assets   35,907,761    30,638,920    4,381,307 
Total assets   456,927,265    408,297,995    58,385,837 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY               
Current liabilities:               
Accrued expenses and other payables   56,372,960    56,493,791    8,078,505 
Short-term loan       1,000,000    142,998 
Lease liabilities-current   18,085,643    15,303,799    2,188,414 
Deferred revenues   280,036,806    271,781,907    38,864,296 
Total current liabilities   354,495,409    344,579,497    49,274,213 
                
Lease liabilities-non-current   17,120,842    14,617,119    2,090,220 
Long term loans       15,031,900    2,149,533 
Deferred income tax liabilities   5,664,822    2,086,619    298,383 
Total liabilities   377,281,073    376,315,135    53,812,349 
                
Shareholders’ equity:               
Common shares   4,755,623    4,780,117    683,548 
Treasury shares   (8,201,046)   (8,201,046)   (1,172,734)
Additional paid-in capital   547,915,003    548,769,331    78,472,970 
Accumulated other comprehensive loss   (36,952,183)   (37,446,814)   (5,354,823)
Accumulated deficit   (427,806,949)   (475,854,443)   (68,046,280)
Total shareholders’ equity attributable to ACG   79,710,448    32,047,145    4,582,681 
Non-redeemable non-controlling interests   (64,256)   (64,285)   (9,193)
Total shareholders’ equity   79,646,192    31,982,860    4,573,489 
Commitments and contingencies              
Total liabilities and shareholders’ equity   456,927,265    408,297,995    58,385,837 

 

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ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

 

   Three-month Period Ended 
   December 31   December 31,   December 31, 
   2024   2025   2025 
   RMB   RMB   USD 
Net revenues   100,915,609    89,127,147    12,745,013 
Cost of revenues   37,251,567    38,885,048    5,560,488 
Gross profit   63,664,042    50,242,099    7,184,525 
                
Operating expenses:               
Research and development   779,087    712,444    101,878 
Sales and marketing   27,505,624    20,057,984    2,868,254 
General and administrative   18,473,416    18,636,043    2,664,919 
Goodwill impairment        33,908,719    4,848,882 
Total operating expenses   46,758,127    73,315,190    10,483,933 
Other operating income, net   88,345    57,296    8,193 
Income (loss) from operations   16,994,260    (23,015,795)   (3,291,215)
Other income (expense):               
Investments income   (438,153)   (51,928)   (7,426)
Interest income, net of interest expenses   133,870    434,200    62,090 
Foreign currency exchange losses, net   (11,321)   (1,731)   (248)
Income (loss) before income taxes   16,678,656    (22,635,254)   (3,236,799)
Income tax benefit   3,421,946    3,668,600    524,603 
Net income (loss)   13,256,710    (26,303,854)   (3,761,402)
Net income (loss) attributable to non-controlling interests   (23)   (1)   0 
Net income (loss) attributable to ACG   13,256,733    (26,303,853)   (3,761,402)
                
Other comprehensive income (loss):               
Foreign currency translation adjustment, net of nil income taxes   114,269    (607,287)   (86,841)
Comprehensive income (loss) attributable to ACG   13,371,002    (26,911,140)   (3,848,243)
                
Basic and diluted earnings (losses) per common share attributable to ACG   0.21    (0.42)   (0.06)
Basic and diluted earnings (losses) per ADS attributable to ACG   0.42    (0.84)   (0.12)

 

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ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

 

   Year Ended 
   December 31,   December 31,   December 31, 
   2024   2025   2025 
   RMB   RMB   USD 
Net revenues   268,060,162    268,112,876    38,339,631 
Cost of revenues   126,795,209    137,801,526    19,705,356 
Gross profit   141,264,953    130,311,350    18,634,275 
                
Operating expenses:               
Research and development   3,703,178    3,071,659    439,241 
Sales and marketing   99,892,804    82,631,826    11,816,194 
General and administrative   80,888,058    78,767,406    11,263,589 
Goodwill impairment       33,908,719    4,848,882 
Reversal of provision for loan receivable and other receivables       (3,781,662)   (540,770)
Total operating expenses   184,484,040    194,597,948    27,827,136 
Other operating income, net   174,931    175,898    25,153 
Loss from operations   (43,044,156)   (64,110,700)   (9,167,708)
Other income (expense):               
Investments income   (438,153)   11,880,702    1,698,918 
Interest income, net of interest expenses   1,001,735    623,673    89,184 
Foreign currency exchange losses, net   (18,989)   (19,401)   (2,774)
Loss before income taxes   (42,499,563)   (51,625,726)   (7,382,379)
Income tax benefit   (6,401,691)   (3,578,203)   (511,676)
Net loss   (36,097,872)   (48,047,523)   (6,870,703)
Net loss attributable to non-controlling interests   (95)   (29)   (4)
Net loss attributable to ACG   (36,097,777)   (48,047,494)   (6,870,699)
                
Other comprehensive income (loss):               
Foreign currency translation adjustment, net of nil income taxes   52,324    (494,631)   (70,731)
Comprehensive loss attributable to ACG   (36,045,548)   (48,542,125)   (6,941,431)
                
Basic and diluted losses per common share attributable to ACG   (0.53)   (0.76)   (0.11)
Basic and diluted losses per ADS attributable to ACG   (1.06)   (1.52)   (0.22)

 

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RECONCILIATIONS OF NON-GAAP MEASURES

TO THE MOST COMPARABLE GAAP MEASURES

 

   Three-month Period Ended   Year Ended 
   December 31,   December 31,   December 31,   December 31, 
   2024   2025   2024   2025 
   RMB   RMB   RMB   RMB 
GAAP net income (loss) attributable to ACG   13,256,733    (26,303,853)   (36,097,777)   (48,047,494)
Share-based compensation expenses   158,682    103,432    2,811,732    569,708 
Foreign currency exchange losses, net   11,321    1,731    18,989    19,401 
Non-GAAP net income (loss) attributable to ACG   13,426,736    (26,198,690)   (33,267,056)   (47,458,385)
                     
GAAP earnings (losses) per common share attributable to ACG                    
Basic and diluted   0.21    (0.42)   (0.57)   (0.76)
                     
Non-GAAP earnings (losses) per common share attributable to ACG                    
Basic and diluted   0.21    (0.41)   (0.53)   (0.75)

 

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