ATA Creativity Global (AACG) 2024 Q4 法說會逐字稿

Greetings. Welcome to ATA Creativity Global fourth quarter and year-end 2024 financial results. (Operator Instructions). As a reminder, this conference is being recorded. It is now my pleasure to introduce Alice Zhang with The Equity Group. Thank you. You may begin.

問候。歡迎閱讀 ATA Creativity Global 第四季和 2024 年年終財務表現。（操作員指令）。提醒一下，本次會議正在錄製中。現在我很高興向大家介紹 The Equity Group 的 Alice Zhang。謝謝。你可以開始了。

Thank you, operator. Good morning to all of you joining us from China, and good evening to all of you joining us from the United States. Please be advised that the discussion on today's call may include forward-looking statements.

謝謝您，接線生。來自中國的朋友早安，來自美國的朋友晚上好。請注意，今天電話會議的討論可能包括前瞻性陳述。

Such forward-looking statements 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.

此類前瞻性陳述涉及某些風險和不確定性，可能導致實際結果與前瞻性陳述中的結果有重大差異。請參閱該公司最新的美國證券交易委員會 (SEC) 文件，以獲得可能影響這些預測和假設的風險因素的更完整描述。

The company assumes no obligation to update forward-looking statements as a result of new information, future events or otherwise.

本公司不承擔因新資訊、未來事件或其他原因而更新前瞻性陳述的義務。

Regarding the disclaimer language, I would also like to refer you to slide 2 of the conference call presentation, which is accessible via the IR section of ACG's website. A simultaneous audio webcast is also accessible via the IR section of ACG's website, including the replay, which will be available for the next 90 days.

關於免責聲明語言，我還想請您參閱電話會議簡報的第 2 張投影片，您可以透過 ACG 網站的 IR 部分存取該投影片。還可以透過 ACG 網站的 IR 部分存取同步音訊網路廣播，包括重播，重播將在接下來的 90 天內提供。

ACG's Chairman and CEO, Mr. Kevin Ma, will start this call highlighting the company's fourth quarter and full year key operational and financial achievements. CFO, Mr. Ruobai Sima, will provide an overview of financial and operating results for fourth quarter and year-end 2024, and briefly discuss 2025 full-year guidance. President, Mr. Jun Zhang, will conclude the prepared remarks with an update on the company's long-term growth strategy before opening the floor for questions. For those of you following the accompanying slide presentation, please refer to the slides for further details.

ACG董事長兼執行長馬凱文先生將在電話會議上重點介紹公司第四季和全年的主要營運和財務成就。財務長司馬若柏先生將概述 2024 年第四季和年末的財務和經營業績，並簡要討論 2025 年全年指引。總裁張軍先生將在回答提問之前介紹公司的長期發展策略，以此結束他的發言。對於那些關注隨附幻燈片演示的人來說，請參閱幻燈片以了解更多詳細資訊。

With that, I'll turn the call over to ACG's Chairman and CEO, Mr. Kevin Ma. Please go ahead, Mr. Ma.

接下來，我將把電話轉給 ACG 董事長兼執行長 Kevin Ma 先生。馬先生，請講。

Thank you, Alice. Welcome everyone (technical difficulty) America. We appreciate everyone's time. As Alice mentioned, please refer to our earnings deck available on the IR site of our website as we go through our prepared remarks.

謝謝你，愛麗絲。歡迎大家（技術困難）美國。我們感謝大家的時間。正如愛麗絲所提到的，在我們準備發言時，請參閱我們網站 IR 網站上提供的收益簡報。

During 2024, with the mission of driving positive student outcomes in mind, ACG continued to concentrate their own making quality educational service available to our students. Our investments in the teaching team allows us to introduce relevant and customized offerings and our efforts to [experience] and maintain institutional partnerships, and the access to world-class educational resources.

2024 年，ACG 秉持著推動學生取得正面成果的使命，持續致力於為學生提供優質的教育服務。我們對教學團隊的投資使我們能夠推出相關的、客製化的課程，並努力[體驗]和維持機構合作夥伴關係，以及獲得世界一流的教育資源。

We also actively explored new ways to improve overall efficiency. [We're almost receiving] operations and locating regional resources to initiating the integration of AI technologies into our services which we believe will continue to drive long-term value to our operations.

我們也積極探索提高整體效率的新方法。 [我們幾乎正在接收] 運作並定位區域資源，以啟動將人工智慧技術整合到我們的服務中，我們相信這將繼續為我們的營運帶來長期價值。

The fourth quarter of 2024 was highlighted by significant growth in net revenues and the bottom line results. We reported a more than 20% increase in net revenues, driving a similar level of improvement in our gross profit.

2024 年第四季的亮點是淨收入和獲利業績的顯著成長。我們的淨收入成長了 20% 以上，帶動毛利也實現了類似程度的成長。

Portfolio training programs credited hours delivered to ACG students increased by over 35% during the fourth quarter of 2024. As a result of increased revenues, net income attributable to ACG grew by 54.9% to RMB13.3 million. Similarly, for full-year 2024, we reported a strong net revenue growth of 21%, exceeding in the high end of our full-year guidance, which resulted in a 23.2% increase in gross profit for the year.

2024 年第四季度，為 ACG 學生提供的投資組合培訓計畫學分時間增加了 35% 以上。由於收入增加，歸屬於ACG的淨利成長54.9%至人民幣1,330萬元。同樣，對於 2024 年全年，我們報告了強勁的 21% 淨收入增長，超過了全年預期的高端，導致全年毛利潤增長了 23.2%。

Overall student enrollment rates continue to grow and our core business, portfolio training service recorded a significant increase in student enrollment as well as creating our deliveries.

整體學生入學率持續成長，我們的核心業務－投資組合培訓服務的學生入學人數和交付量均顯著增加。

Moving on to fourth quarter operational highlights. Portfolio trading service accounted for the majority of our revenues for the quarter, with project-based programs contributing to 66.8% of total credit in our deliveries. The demand for our portfolio trading service demand is strong, and we were pleased that we have been able to address those demands with the teaching team that student trust. We organized more group classes, which allows more students to take lessons for popular teachers has increased credited hours delivered with enhancing teaching efficiency at the same time.

接下來介紹第四季的營運亮點。投資組合交易服務占我們本季收入的大部分，其中基於專案的計劃占我們交付總信貸的 66.8%。我們的投資組合交易服務需求強勁，我們很高興能夠與學生信任的教學團隊一起滿足這些需求。組織更多小組課，讓更多學生選修熱門教師的課程，增加學分，同時提升教學效率。

Revenues from research-based learning, overseas study consultant and other educational services all increased by more than 40%. We hosted October session of the United Nations Sustainable Development Goals Arts Boot Camp, our Shanghai Fashion Week program and a standalone master classes covering our character animation, visual communication and interior design.

研修、留學諮詢、其他教育服務收入均成長40%以上。我們主辦了十月聯合國永續發展目標藝術訓練營、上海時裝週計畫以及涵蓋角色動畫、視覺傳達和室內設計的獨立大師班。

As we turn it to the 2025 application season, and many of our students have submitted to the application portfolio to overseas schools, we are glad to share that our students has started to receive favorable early admission results.

隨著我們進入2025年申請季，我們的許多學生已經向海外學校提交了申請資料，我們很高興地告訴大家，我們的學生已經開始獲得有利的提前錄取結果。

So far, our student has received offers and scholarships for schools such as Harvard University, Columbia University, Rhode Island School of Design in the United States and the University of the Arts London, University College London in the UK as well as prestigious art schools in Japan, Hong Kong and Australia. At the same time, we continue to expand our partnership base and we began providing educational service to two additional higher education institutions, The Central Academy of Drama and the Nanjing University of Arts.

目前，本校學生已獲得美國哈佛大學、哥倫比亞大學、羅德島設計學院，英國倫敦藝術大學、倫敦大學學院等學校以及日本、香港、澳洲等國家知名藝術院校的錄取通知書及獎學金。同時，我們繼續擴大合作夥伴基礎，並開始為另外兩所高等教育機構——中央戲劇學院和南京藝術學院提供教育服務。

During the quarter, we made this strategic decision to discontinue our junior arts service aiming to increase the overall efficiency of our operations, which contributed to lower the G&A expense during the quarter.

在本季度，我們做出了這項策略決策，停止我們的青少年藝術服務，旨在提高我們營運的整體效率，這有助於降低本季的 G&A 費用。

With that, I will hand over the call to Sima for an overview of our financial and operating results for fourth quarter and full-year 2024 and provide some color on our guidance for fiscal-year 2025.

接下來，我將把電話交給 Sima，讓他概述我們 2024 年第四季和全年的財務和營運業績，並對 2025 財年的指引提供一些說明。

Thank you, Kevin, and I will start with the fourth quarter and full year 2024 key financial metrics. Total net revenue for the fourth quarter of 2024 was RMB100.9 million, an increase of 20.7% from RMB83.6 million in the fourth quarter of 2023, which was primarily due to increased revenue contribution from portfolio training programs, research-based learnings and overseas study consulting services.

謝謝凱文，我將從 2024 年第四季和全年的關鍵財務指標開始。2024年第四季總淨收入為人民幣1.009億元，較2023年第四季的人民幣8,360萬元成長20.7%，主要由於組合培訓計畫、研究型學習和出國留學諮詢服務的收入貢獻增加。

Gross profit for fourth-quarter 2024 was RMB63.7 million, an increase of 21.6% from RMB52.4 million in fourth-quarter 2023, primarily due to higher net revenues. Gross margin slightly increased to 63.1% during fourth-quarter 2024 compared to 62.6% in the prior year period, mainly as a result of higher net revenue despite an increase in costs associated with more teaching staff hired as compared to fourth quarter 2023 to accommodate increased numbers of students.

2024年第四季毛利為人民幣6,370萬元，較2023年第四季的人民幣5,240萬元成長21.6%，主要由於淨收入增加。2024 年第四季毛利率略微上升至 63.1%，而去年同期為 62.6%，這主要是由於儘管與 2023 年第四季相比，為容納更多學生而僱用更多教學人員導致成本增加，但淨收入仍然增加。

Total operating expenses was RMB46.8 million in fourth quarter 2024, an increase of 8% from RMB43.3 million in fourth-quarter 2023. The increase was primarily due to a RMB6.8 million increase in sales selling expenses related to increased number of sales personnel and marketing events in various different channels, which was partially offset by RMB2.4 million decrease in general and administrative expenses mainly as a result of the disposal of ACGs junior art services in fourth quarter 2024, and RMB0.9 million decrease in R&D expenses, as SCP system development was completed in Q2 2024.

2024年第四季總營運費用為人民幣4,680萬元，較2023年第四季的人民幣4,330萬元成長8%。成長的主要原因是銷售費用增加了人民幣 680 萬元，這主要與銷售人員數量增加和不同管道的營銷活動有關，但被一般及行政費用減少人民幣 240 萬元（主要由於 2024 年第四季度處置 ACG 的青少年藝術服務）和研發費用減少人民幣 90 萬元（由於 SCP 4 年完成第二部分完成 20 萬元）（由於 SCP 20 20 20 萬元）。

Income from operating in fourth quarter 2024 was RMB17 million compared to RMB9.1 million in fourth quarter 2023. Net income attributable to ACG during fourth quarter 2024 was RMB13.3 million compared to RMB8.6 million in the prior year period.

2024 年第四季營業收入為人民幣 1,700 萬元，而 2023 年第四季為人民幣 910 萬元。2024年第四季歸屬於ACG的淨收入為人民幣1,330萬元，去年同期為人民幣860萬元。

Turning to full-year 2024. Total net revenues increased to 21% to RMB268.1 million from RMB221.6 million in the prior year period. The increase was primarily attributable to increased contribution from portfolio training, research-based learning and overseas study counseling services.

展望 2024 年全年。總淨收入由去年同期的2.216億元成長21%，達到人民幣2.681億元。成長主要歸因於投資組合培訓、基於研究的學習和海外學習諮詢服務的貢獻增加。

Gross profit for full-year 2024 was RMB141.3 million, an increase of 23.2% from RMB114.7 million in full-year 2023. As a result of increased revenues during full-year 2024, gross margin slightly improved to 52.7% from 51.7% in full-year 2023.

2024年全年毛利為人民幣1.413億元，較2023年全年人民幣1.147億元成長23.2%。由於 2024 年全年收入增加，毛利率從 2023 年全年的 51.7% 小幅提高至 52.7%。

Total operating expenses were RMB184.5 million in full-year 2024, an increase of 18.1% from RMB156.2 million in full-year 2023. The increase was primarily due to a [RMB21.2 million] increase in sales selling expenses as a result of the extension of our sales team and an increase in marketing events such as the art education equation and fusion art exhibition, as well as RMB8.1 million increase in general and administrative expenses related to increased professional fees and business expansion-related investments and was slightly offset by lower research and development expenses, which decreased by RMB0.9 million.

2024年全年總營業費用為人民幣1.845億元，較2023年全年人民幣1.562億元成長18.1%。成長的主要原因是，由於銷售團隊的擴大以及藝術教育方程式和融合藝術展等行銷活動的增加，銷售費用增加了[2120萬元人民幣]，以及與專業費用增加和業務擴展相關投資相關的一般及行政費用增加了810萬元人民幣，但研發費用的減少（減少了90萬元人民幣）略有抵消。

Loss from operations in full-year 2024 was RMB43 million compared to RMB41.5 million in the full-year 2023. Net loss attributable to ACG full-year 2024 was RMB36.1 million compared to RMB33.7 million.

2024年全年營業虧損為人民幣4,300萬元，而2023年全年營業虧損為人民幣4,150萬元。2024年全年歸屬於ACG的淨虧損為人民幣3,610萬元，去年同期為人民幣3,370萬元。

Moving to the balance sheet highlights. As of December 31, 2024, we had RMB36.5 million in cash and cash equivalents. Total assets of RMB456.9 million, total liabilities of RMB377.3 million, and total shareholders' equity of RMB79.6 million.

轉向資產負債表重點。截至2024年12月31日，我們擁有現金及現金等價物人民幣3,650萬元。總資產4.569億元，總負債3.773億元，股東權益合計7,960萬元。

Moving on to year-to-date enrollment trends. For full-year 2024, total student enrollments increased by 15.8% as compared to full-year 2023, supported by strong student interest growth in both ACG's portfolio training and other programs. Portfolio training students enrollment for full year 2024 increased by 12.9% to 2,807. And all other program students enrollment for full-year 2024 increased by 20.2% to 1,974. For full-year 2024, continue to record higher credit hours delivered from the second half of the year, similar to prior year results as our students started to prepare for portfolio work.

繼續討論年初至今的入學趨勢。2024 年全年，學生總入學人數與 2023 年全年相比增加了 15.8%，這得益於學生對 ACG 投資組合培訓和其他計畫的興趣強勁增長。2024年全年投資組合培訓學生入學人數增加12.9%，達2,807人。2024 年全年所有其他課程的學生入學人數將增加 20.2%，達到 1,974 人。對於 2024 年全年而言，隨著我們的學生開始為作品集工作做準備，從下半年開始，學分將繼續增加，與去年的成績相似。

For full-year 2024, credit hours delivered significantly increased by 30.8%, whereby time-based program credit hours increased by 32% and project-based programs credit hours increased by 30.2%.

2024 年全年，提供的學分顯著增加了 30.8%，其中基於時間的課程學分增加了 32%，基於計畫的課程學分增加了 30.2%。

With that, let's move to guidance for the full-year 2025. ACG expects to achieve total net revenues of between approximately RMB276 million to RMB281 million for the year-end at December 31, 2025, which represents a year-over-year increase of around 3% to 5% from the full-year 2024. We anticipate that the growth to be primarily driven by; our portfolio training services, which is also significantly student acquisition channels for all of our other business as more students sign up for our services.

有了這些，我們來看看 2025 年全年的指導。ACG預計，截至2025年12月31日的年度總淨收入約為人民幣2.76億元至人民幣2.81億元，較2024年全年年增約3%至5%。我們預期成長主要由以下因素推動：我們的投資組合培訓服務也成為我們所有其他業務的重要學生獲取管道，因為越來越多的學生註冊我們的服務。

Revenue full-year 2024, we saw double-digit revenue growth and overall increased demand across our business lines following the COVID-19 international traveling recovery. We expect full-year 2025 growth to return to normalized levels, and we expect our business to record continuous growth and believe that strategy initiatives that we are implementing, [which will expand on a bit]. We will drive our long-term growth and beyond 2025.

2024 年全年營收方面，隨著新冠疫情導致的國際旅遊復甦，我們的各業務線營收均實現了兩位數成長，整體需求也隨之增加。我們預計 2025 年全年成長將恢復正常水平，我們預計我們的業務將持續成長，並相信我們正在實施的策略舉措，[將會稍微擴充一下]。我們將推動我們的長期成長以及 2025 年以後的發展。

I'd like to turn it to Jun Zhang, who will expand upon our long-term growth strategy. Jun, please go ahead.

我想把這個機會交給張軍，他將詳細說明我們的長期成長策略。俊，請繼續。

(spoken in foreign language)

（用外語說）

Thank you, Sima. For 2025 and beyond, our goal remains to be a leading provider of creative arts education services and products in China to students interested in a creative arts education and career. We believe our long-term growth is fueled by organic growth, strengthening and expanding geographic footprint, launch of new services and potential M&A opportunities.

謝謝你，司馬。展望2025年及以後，我們的目標仍然是成為中國領先的創意藝術教育服務和產品提供者，為有志於創意藝術教育和職業的學生提供服務。我們相信，我們的長期成長源於有機成長、加強和擴大地理覆蓋範圍、推出新服務以及潛在的併購機會。

The strong growth trend we observed in student enrollment and services delivered as well as in our internal sales records have reinforced our confidence in the ACG's business and the market potential of the creative arts education in China.

我們在學生入學人數、提供的服務以及內部銷售記錄方面觀察到的強勁成長趨勢增強了我們對ACG業務和中國創意藝術教育市場潛力的信心。

We expect our organic growth to be supported by higher fee and higher margin services. For one, encouraging students interested in our portfolio training services to enroll in a project-based track, which offers higher value services compared to time-based programs due to its flexibility and customizability. Furthermore, we expect positive student feedback on our core portfolio training services to drive increased interest in our other services, such as research-based learning and overseas study counseling services.

我們預計，更高的費用和更高的利潤服務將支持我們的有機成長。首先，鼓勵對我們的投資組合培訓服務感興趣的學生參加基於專案的課程，由於其靈活性和可自訂性，與基於時間的課程相比，該課程提供更高價值的服務。此外，我們預期學生對我們的核心投資組合培訓服務的正面回饋將推動他們對我們的其他服務的興趣增加，例如基於研究的學習和海外學習諮詢服務。

With our frontline teachers and sales teams input into designing our course offerings, we believe our capabilities to introduce new and unique research-based learning experiences and a growing student interest in our overseas study counseling services will continue to fuel revenue growth and gross margin improvement. For 2025, to strengthen and expand our geographic footprint, ACG will continue to expand coverage in existing cities, and strategically locate our regional resources to maximize operations at larger centers.

透過我們第一線教師和銷售團隊對課程設計的投入，我們相信我們推出新的、獨特的基於研究的學習體驗的能力以及學生對我們的海外學習諮詢服務日益增長的興趣將繼續推動收入增長和毛利率的提高。到2025年，為了加強和擴大我們的地理覆蓋範圍，ACG將繼續擴大現有城市的覆蓋範圍，並策略性地定位我們的區域資源，以最大限度地提高大型中心的運作。

In January 2025, ACG announced the grand opening of our ACG Japan Center, which focuses on Japanese language training and arts education. At the ACG Japan center, we provide both online and in-person language training services and help students settle down after they arrive for their future study, as well as tutoring students on their application portfolios and hosting various arts events.

2025年1月，ACG宣布盛大開幕ACG日本中心，專注於日語培訓和藝術教育。在ACG日本中心，我們提供線上和麵對面的語言培訓服務，幫助學生在抵達後適應未來的學習，同時輔導學生的申請作品集並舉辦各種藝術活動。

The opening of the ACG Japan Center follows the opening of our London Center in September 2024, which has since been actively serving students in London and surrounding areas. We're committed to helping students achieve their goals as a trusted partner throughout their journey with ACG.

ACG日本中心的開幕是繼2024年9月倫敦中心開幕後的另一個舉措，倫敦中心自開幕以來一直積極為倫敦及週邊地區的學生提供服務。作為學生在 ACG 學習期間值得信賴的合作夥伴，我們致力於幫助學生實現他們的目標。

We have invested in the innovation and introduction of new research-based learning projects, which have become an increasingly substantial part of our revenue source. Since the beginning of 2025, we have introduced various experiences in both in-person and online formats, serving students of different age groups and with various arts backgrounds and majors.

我們投資於創新和引進新的基於研究的學習項目，這些項目已經成為我們收入來源中越來越重要的一部分。自 2025 年初以來，我們推出了線下和線上兩種形式的各種體驗，為不同年齡、不同藝術背景和專業的學生提供服務。

These programs included creative arts healing training program, led by University of London [Lectures] Japanese classic animation study tour in Tokyo. The Island environmental protection creative arts camp in Sanya, Hainan province, Safari photography creation camp in East Africa, Milan Fashion Week internship program, Ivy League, our campus tour in East Coast of the US and Alibaba Artificial Intelligence Training camp.

這些項目包括創意藝術療癒訓練計畫、由倫敦大學領銜的【講座】日本經典動畫東京遊學等。海南三亞海島環保創意藝術營、東非Safari攝影創作營、米蘭時裝週實習計畫、常春藤盟校、美國東岸校園遊學、阿里巴巴人工智慧訓練營。

Last but not least, ACG remains diligent in actively exploring potential M&A opportunities in 2025 to supplement our service portfolio of high-quality creative arts education products to our students.

最後但同樣重要的一點是，ACG 將繼續努力在 2025 年積極探索潛在的併購機會，以補充我們為學生提供的高品質創意藝術教育產品的服務組合。

Serving our students with the best offering is at the core of our business, especially as we continue to expand our student population and address the evolving needs of our students. We're excited about our growth in 2025, and believe our investment in our teaching team and the strategic initiatives we take to improve operating efficiency will continue to drive results for ACG and our shareholders.

為我們的學生提供最好的服務是我們業務的核心，特別是當我們繼續擴大學生人數並滿足學生不斷變化的需求時。我們對 2025 年的成長感到興奮，並相信我們對教學團隊的投資以及我們為提高營運效率而採取的策略性舉措將繼續為 ACG 和股東帶來績效。

With that, operator, let's open it up for question.

接線員，好了，讓我們開始提問。

(Operator Instructions) There are no questions at this time. I would like to turn the conference back over to Kevin for closing remarks.

（操作員指示）目前沒有問題。我想將會議交還給凱文，請他作最後發言。

Thanks again to all of you for joining us. If anyone has questions for us, please feel free to reach out directly to our Investor Relations firm, The Equity Group. We are always available to speak to investors and look forward to speaking with you during our next earnings call. Thank you.

再次感謝大家的參與。如果有人對我們有任何疑問，請隨時直接聯繫我們的投資者關係公司 The Equity Group。我們隨時可以與投資者交談，並期待在下次收益電話會議期間與您交談。謝謝。

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開您的線路，感謝您的參與。