Form: 6-K

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

July 2, 2026

Documents

 

Exhibit 99.1

 

ATA CREATIVITY GLOBAL

 

UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

 

The pro forma consolidated balance sheet of ATA Creativity Global (the “Company”, “we”, “us” or “our”) as of December 31, 2025 has been prepared to give effect to the disposition of certain operating subsidiaries and related business assets of the Company (the “Disposition”), as if the Disposition had been consummated on December 31, 2025. The pro forma consolidated statements of operations for the year ended December 31, 2025 have been prepared as if the Disposition had occurred on January 1, 2025.

 

The Company’s latest publicly filed consolidated balance sheet is as of December 31, 2025. No interim financial statements have been filed with the SEC subsequent to such date. Accordingly, the pro forma financial information is prepared based on the latest filed annual financial statements in compliance with SEC Financial Reporting Manual Topic 3220.1.

 

The Disposition represents the sale of certain operating subsidiaries and related business assets of the Company to an unrelated third party for nominal consideration of RMB 1. Following the Disposition, the Company will continue to maintain its corporate legal status and existing corporate governance structure, with adjusted operational arrangements aligned with the post-transaction asset and liability scale.

 

All pro forma adjustments are based on the definitive disposition agreement and management’s reasonable assumptions consistent with Regulation S-X Article 11. All adjustments necessary to fairly present the pro forma effects of the Disposition have been included.

 

This pro forma information is presented for illustrative purposes only. It does not purport to reflect the actual financial results that would have occurred had the transaction closed on the assumed dates, nor is it indicative of future operating results or financial condition. The actual accounting effects upon final closing may differ from these pro forma estimates.

 

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties and assumptions. Actual future results may differ materially. The Company undertakes no obligation to update any forward-looking statements.

 

 

 

UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET

 

As of December 31, 2025
(In Renminbi (RMB Yuan))

 

See accompanying notes to the unaudited pro forma consolidated financial statements.

 

Description  Historical  Pro Forma
Adjustments		  Note  Pro Forma  Pro Forma 
            RMB  USD 
ASSETS                
Current assets:                
Cash and cash equivalents  85,236,288  83,880,681  2(b)  1,355,607  193,849 
Accounts receivable, net  298,377  298,377  2(a)  -  - 
Prepaid expenses and other current assets  25,832,459  25,793,824  2(a)  38,635  5,525 
Total current assets  111,367,124  109,972,882  2(a)  1,394,242  199,374 
Property and equipment, net  32,139,682  32,139,682     -  - 
Intangible assets, net  32,482,513  32,482,513     -  - 
Goodwill  162,380,773  162,380,773     -  - 
Other non-current assets  39,288,983  39,257,316  2(a)  31,667  4,528 
Right-of-use assets  30,638,920  30,514,430  2(a)  124,490  17,802 
Total assets  408,297,995  406,747,597  2(a)  1,550,398  221,704 
LIABILITIES AND SHAREHOLDERS’ EQUITY               
Current liabilities:               
Accrued expenses and Other Payables  56,493,791  52,539,462  2(a)  3,954,329  565,461 
Short-term loan  1,000,000  1,000,000  2(a)  -  - 
Lease liabilities-current  15,303,799  15,303,799  2(a)  -  - 
Deferred revenues  271,781,907  271,781,907  2(a)  -  - 
Total current liabilities  344,579,497  340,625,168  2(a)  3,954,329  565,461 
Other non-current liabilities  14,617,119  14,617,119  2(a)  -  - 
Long term loans  15,031,900  15,031,900  2(a)  -  - 
Deferred income tax liabilities  2,086,619  2,086,619  2(a)  -  - 
Total liabilities  376,315,135  372,360,806  2(a)  3,954,329  565,461 
Shareholders’ equity:               
Common shares  4,780,117  -     4,780,117  683,548 
Treasury shares  (8,201,046) -     (8,201,046) (1,172,734)
Additional paid-in capital  548,769,331  140,164,326     408,605,005  58,429,739 
Accumulated other comprehensive loss  (37,446,814) 38,207,395     (75,654,209) (10,818,408)
Retained earnings (accumulated deficit)  (475,854,443) (143,920,646)    (331,933,797) (47,465,902)
Total shareholders’ equity attributable to ATA Inc.  32,047,145  34,451,075     (2,403,930)  (343,757) 
Non-redeemable non-controlling interests  (64,285) (64,285)    -  - 
Total shareholders’ equity  31,982,860  34,386,790     (2,403,930)  (343,757) 
Total liabilities, mezzanine equity and shareholders’ equity  408,297,995  406,747,597     1,550,398  221,704 

 

 

 

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

 

For the Year Ended December 31, 2025
(In Renminbi (RMB Yuan))

 

   Historical  Pro Forma
Adjustments		  Note  Pro Forma  Pro Forma 
            RMB  USD 
Net revenues  268,112,876  268,112,876  2(c)  -  - 
Cost of revenues  137,801,526  137,801,526  2(c)  -  - 
Gross profit (loss)  130,311,350  130,311,350  2(c)  -  - 
Operating expenses:                
Research and development  3,071,659  3,023,806  2(c)  47,853  6,843 
Sales and marketing  82,631,826  81,996,763  2(c)  635,063  90,813 
General and administrative  78,767,406  71,832,542  2(c)  6,934,864  991,672 
Goodwill impairment  33,908,719  33,908,719  2(c)  -  - 
Provision for loan receivable and other receivables  (3,781,662) (1,296,313) 2(c)  (2,485,349) (355,400)
Total operating expenses  194,597,948  189,465,517  2(c)  5,132,431  733,928 
Other operating income, net  175,898  175,898  2(c)  -  - 
Loss from operations  (64,110,700) (58,978,269) 2(c)  (5,132,431) (733,928)
Other income (loss):              
Investments loss  11,880,702  11,880,702  2(c)  -  - 
Interest income, net of interest expenses  623,673  597,832  2(c)  25,841  3,695 
Foreign currency exchange gains (losses), net  (19,401) (550) 2(c)  (18,851) (2,696)
Income (Loss) before income taxes  (51,625,726) (46,500,285) 2(c)  (5,125,441) (732,928)
Income tax expense (benefit)  (3,578,203) (3,578,203) 2(c)  -  - 
Net income (loss)  (48,047,523) (42,922,082) 2(c)  (5,125,441) (732,928)
Net loss attributable to non-redeemable non-controlling interests  (29) (29) 2(c)  -  - 
Net loss attributable to ACG  (48,047,494) (42,922,053) 2(c)  (5,125,441) (732,928)

 

 

 

NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

 

Note 1 — Basis of Presentation and Transaction Overview

 

The unaudited pro forma consolidated financial statements are derived from the Company’s audited consolidated financial statements as of and for the year ended December 31, 2025, which represent the latest financial statements filed with the SEC. No interim financial statements have been filed subsequent to December 31, 2025. The pro forma balance sheet gives effect to the disposition of certain operating subsidiaries and related business assets and liabilities, as if the transaction closed on December 31, 2025. The pro forma statement of operations gives effect to the transaction as if the disposition occurred on January 1, 2025.

 

The Company completed the disposal of certain operating subsidiaries and related operating assets and liabilities for nominal consideration of RMB 1. Following the closing of the transaction, the Company maintains its parent corporate entity and normal corporate management arrangements, with adjusted operational scope corresponding to the remaining retained assets and liabilities.

 

Note 2 — Pro Forma Adjustments Explanation

 

(a) Elimination of operating assets and operating liabilities related to the disposed subsidiaries

 

All tangible assets, intangible assets, operating receivables, operating payables, operating lease obligations and other business-related balances held by the disposed operating subsidiaries are fully eliminated, as such subsidiaries will no longer be included in the Company’s consolidated financial statements following the completion of the Disposition. Only corporate-level assets and corporate-level liabilities held by the parent entity are retained.

 

(b) Recognition of nominal cash proceeds

 

Adjustment reflects the minimal cash consideration received at closing, being RMB 1 in total, added to corporate cash balances.

 

(c) Elimination of revenue and operating expenses attributable to the disposed subsidiaries

 

All operating revenue, direct operating costs, sales expenses and other operational administrative expenses generated by the disposed subsidiaries are fully eliminated for the full-year period presented, to reflect the exclusion of such subsidiaries from the consolidated operating results after the transaction.

 

Note 3 — Post-Transaction Company Profile

 

After completion of the Disposition, the Company will adjust its daily operational arrangements in accordance with the remaining retained assets, liabilities and corporate management needs, and continue to perform relevant corporate compliance and information disclosure obligations in accordance with applicable regulatory requirements.