ATA Creativity Global Q4 FY2023 earnings call

• 2023 was a year of resuming in-person class deliveries after COVID-19, with renewed student interest in portfolio training, overseas study consulting, and research-based learning services.
• Fourth quarter 2023 student enrollment increased 11.3% year over year, driven by portfolio training and overseas study counseling services. Portfolio training credit hours delivered increased 3.3% to 48,421.
• In 2024, portfolio training services remain the core component, with proactive exploration of partnerships with creative arts institutions worldwide. Successfully hosted winter programs like Master Class, Shanghai Fashion Week program, etc.
• As of March 2024, many students received favorable admission results from renowned arts institutions, inspiring continued efforts to help students achieve academic goals.

For the full year 2023, ATA Creativity Global achieved RMB221.6 million in revenue, a 7.2% increase year over year. The fourth quarter of 2023 saw total net revenues increase 6.5% to RMB83.6 million compared to Q4 2022. Portfolio training services represented 77.4% of total net revenues during the fourth quarter of 2023. Full-year gross margin improved to 51.7% from 49.6% in the prior year, and net loss attributed to ACG narrowed to RMB33.7 million compared to RMB47.9 million in the prior year.

• For fiscal year 2024, the company expects total net revenue of between RMB233 million to RMB255 million, representing a 5% to 15% increase from fiscal year 2023.
• Revenue guidance for fiscal year 2024 does not consider potential acquisitions or other business transactions in 2024.

Q: Are there any questions?

A: There are no further questions at this time