Latest news with #KevinMa
Yahoo
19-05-2025
- Business
- Yahoo
ATA Creativity Global (AACG) Q1 2025 Earnings Call Highlights: Revenue Growth Amid Enrollment ...
Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ATA Creativity Global (NASDAQ:AACG) reported a 16% increase in net revenue and gross profit for Q1 2025, driven by portfolio training and research-based learning services. The portfolio training program saw a 5.8% increase in delivery, contributing to an 11.5% growth in revenue from these programs. Research-based learning and overseas study counseling services increased revenue by more than 28%, accounting for nearly 30% of total net revenues. AACG received positive feedback from students regarding 2025 admission results, with students gaining admission to prestigious institutions like Cambridge University and the University of Southern California. AACG was recognized as a leading brand in China for studying abroad, alongside New Oriental Education, at the 2025 International Education Leaders Annual Conference. Total student enrollment for Q1 2025 decreased by 19.4% compared to the prior year period, attributed to normalized demand. Despite increased revenues, AACG reported a loss from operations of RMB16.8 million for Q1 2025, though this was an improvement from the previous year's loss. General and administrative expenses increased due to professional fees and new project development, offsetting some of the gains from reduced selling and R&D expenses. The company faces challenges in maintaining growth momentum amidst changing domestic and international market conditions. AACG's cash and cash equivalents stood at RMB39.4 million, which may limit flexibility in pursuing aggressive expansion or new initiatives. Warning! GuruFocus has detected 3 Warning Signs with AACG. Q: Can you provide more details on the financial performance for Q1 2025? A: Kevin Ma, Chairman and CEO, highlighted a 16% increase in net revenue and gross profit, driven by portfolio training and research-based learning services. The portfolio training program saw a 5.8% increase in delivery, contributing to improved bottom-line results compared to Q1 2024. Q: What were the key operational highlights for the first quarter of 2025? A: Kevin Ma noted that trading services accounted for the majority of revenue, with project-based programs contributing 74% of total credits delivered. Revenue from research-based learning and other educational services increased by over 28%, making up nearly 30% of total net revenues. Q: How did the company perform in terms of student admissions and recognition? A: Kevin Ma reported positive feedback on admissions, with students receiving offers from prestigious institutions like Cambridge University and UC Berkeley. ACG was also recognized as a leading brand in studying abroad at the 2025 International Education Leaders Annual Conference. Q: What are the expectations for the full year 2025? A: Robi Sima, CFO, stated that ACG expects total net revenues of RMB 276 million to RMB 281 million, representing a 3-5% year-over-year increase. Growth is anticipated to be driven by portfolio training services and supported by other business lines. Q: What are the company's long-term growth strategies? A: Junjiang, President, emphasized a focus on organic expansion, controlling expenses, and improving operational efficiency. The company aims to increase classroom utilization and provide higher value programs, leveraging its teaching resources to cater to a broader student base. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Associated Press
16-05-2025
- Business
- Associated Press
ATA Creativity Global Reports Q1 2025 Financial Results
Reports Q1 2025 Results with Net Revenues and Gross Profit Increases of 15.9% Respectively, as Compared to Q1 2024 Conference Call Scheduled for Friday, May 16, at 9:00 a.m. Eastern Time (Friday, May 16, at 9:00 p.m. Beijing Time) with Accompanying Audio and Slide Webcast BEIJING, CHINA / ACCESS Newswire / May 16, 2025 / 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 first quarter ('Q1 2025") ended March 31, 2025. All amounts presented in U.S. dollars ($) in this news release are based on a conversion rate of RMB7.2567 to $1.00 for reporting period ended March 31, 2025. Q1 2025 Financial Highlights Q1 2025 Operational Highlights The following is a summary of the credit hours delivered for ACG's portfolio training programs for Q1 2025, compared to those for the prior-year period: Management Commentary Mr. Kevin Ma, Chairman and CEO of ACG, stated, 'We are pleased with the approximately 16% increase in both net revenues and gross profits in Q1 2025, driven by increased contribution from our portfolio training and research-based learning services, as we delivered more services and hosted a variety of research-based learning projects during the quarter. Despite normalized student enrollment rates during Q1 2025 compared to the same periods of 2024 and 2023, total credit hours delivered increased by 5.8%, driven by a 15.5% rise in credit hours delivered for our project-based programs. Higher net revenues and slightly reduced operating expenses contributed to improved bottom-line results during the quarter as compared to Q1 2024.' Mr. Ma continued, 'In Q1 2025, we continued to launch new research-based projects and organized multiple in-person and online classes. In-person projects included a themed camp to Hainan Province,an AI training camp at Alibaba, tours to the United States and Japan, and a Milan Fashion Week project in Italy, accommodating more than 100 students in total. Apart from our usual Master Class projects, which were held in an online group class form, we also delivered a creative art therapy training program, providing insights into art therapy through practical case sharing in interactive live online sessions. At the same time, ACG students continued to report favorable admission results, with offer letters and scholarships received from Ivy League and other reputable colleges around the world. Due to our continued investments and focus on providing state-of-the-art educational services, we remain a trusted partner to our growing student population in their pursuit of overseas arts education.' Guidance for FY 2025 ACG expects to report total net revenues of between RMB276 million and RMB281 million for the year ending December 31, 2025, which represents a year-over-year increase of around 3% to 5%. This guidance assumption is based on the Company's existing business, initiatives underway for the year ending December 31, 2025 and the current and preliminary view of existing domestic and international market conditions, which are subject to change. Mr. Jun Zhang, President of ACG, added, 'We anticipate ACG's core portfolio training services and all other services designed to help students create a compelling application portfolio to continue to expand in 2025. In addition to the regular Master Classes in line for Q2 2025, we have an exciting pipeline of research-based learning projects for the summer, which are expected to generate meaningful net revenues. Furthermore, we have expanded our international partnerships with colleges and universities beyond the U.S. and the U.K., and have observed a growing interest among students in applying for creative arts programs in Europe, Japan and Singapore.' Mr. Zhang continued, 'We remain focused on driving organic expansion, controlling expenses and improving overall operational efficiency, as we have strategically allocated marketing resources to higher-performing campus locations, aiming to increase classroom utilization, while at the same time providing higher-value programs. We are helping students complete their portfolio creation projects more efficiently through mindful planning and intensified coaching. The variety of new project-based programs we are offering are gaining traction, as we are fostering creative thinking via an interactive learning environment and providing flexibility as many of these programs can be completed in-person and / or online. We are enthusiastic about China's creative arts education market, and our goal is to expand our student population by leveraging our existing teaching resources, and also introducing new programs to older adults and younger generation interested in art studies, workshops and themed travels. We believe ACG's long-term domestic and international partnership base, our competitive and highly experienced teaching team, and the investments we have made and continue to make in new programs, allow us to stand out from our competitors.' Conference Call and Webcast Information (With Accompanying Presentation) ACG will host a conference call at 9:00 a.m. Eastern Time on Friday, May 16 (9:00 p.m. Beijing Time on Friday, May 16), during which management will discuss Q1 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: A simultaneous audio webcast including accompanying slides may be accessed via the following link: or via the investor relations section of the Company's website 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. Q1 2025 Financial Review - GAAP Results ACG's total net revenues for Q1 2025 of RMB55.8 million (or $7.7 million), increased 15.9% as compared to RMB48.1 million in Q1 2024, primarily due to increased revenue contributions from portfolio training programs and research-based learning services. Specifically: Gross profit for Q1 2025 of RMB25.4 million (or $3.5 million) increased 15.9%, from RMB21.9 million in Q1 2024, mainly as a result of higher net revenues. Gross margin remained unchanged at 45.5%, compared to the prior-year period. Total operating expenses for Q1 2025 were RMB42.2 million (or $5.8 million), representing a slight decrease of 3.2% from RMB43.6 million in Q1 2024, while as a percentage of net revenues, the total operating expenses decreased to 75.6%, compared to 90.6% in Q1 2024. The slight decrease in total operating expenses for Q1 2025 was mainly related to lower selling expenses and research and development expenses, and the collection of previously impaired loans and other receivables, offset by increased general & administrative expenses related to professional fees and development of new projects. Specifically, for Q1 2025: Loss from operations for Q1 2025 decreased to RMB16.8 million (or $2.3 million), as compared to loss from operations of RMB21.7 million in Q1 2024, mainly as a result of higher net revenues and operating leverage. Similarly, net loss attributable to ACG for Q1 2025 was RMB13.3 million (or $1.8 million), as compared to net loss attributable to ACG of RMB17.9 million in Q1 2024. Basic and diluted losses per common share attributable to ACG for Q1 2025 were RMB0.21 (or $0.03), compared to basic and diluted losses per common share of RMB0.29 for Q1 2024. Non-GAAP Measures Adjusted net loss attributable to ACG for Q1 2025, which excludes share-based compensation expense and foreign currency exchange losses, net, was RMB13.3 million (or $1.8 million), compared to adjusted net loss of RMB16.9 million in Q1 2024. Basic and diluted losses per common share attributable to ACG excluding share-based compensation expense and foreign currency exchange losses, net for Q1 2025, were RMB0.21 (or $0.03). Basic and diluted losses per ADS attributable to ACG excluding share-based compensation expense and foreign currency exchange losses, net for Q1 2025 were RMB0.42 (or $0.06). 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 losses per ADS for Q1 2025 were both 31.6 million. Each ADS represents two common shares. Balance Sheet Highlights As of March 31, 2025, ACG's cash and cash equivalents were RMB39.4million (or $5.4 million), working capital deficit was RMB298.5 million (or $41.1 million), and total shareholders' equity was RMB66.4million (or $9.1 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 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 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'). 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 and at ACG's website at 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 ended March 31, 2025, into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB7.2567 to $1.00, the noon buying rate as of March 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. For more information on our company, please contact the following individuals: ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES SOURCE: ATA Creativity Global press release
Yahoo
22-04-2025
- Business
- Yahoo
Positive Signs As Multiple Insiders Buy Kalo Gold Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Kalo Gold Corp. (CVE:KALO), it sends a favourable message to the company's shareholders. While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. The Executive VP of Capital Markets Kevin Ma made the biggest insider purchase in the last 12 months. That single transaction was for CA$91k worth of shares at a price of CA$0.03 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.05. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices. While Kalo Gold insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction! See our latest analysis for Kalo Gold Kalo Gold is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket. Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Kalo Gold insiders own about CA$3.7m worth of shares. That equates to 38% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. It doesn't really mean much that no insider has traded Kalo Gold shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Kalo Gold insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 4 warning signs for Kalo Gold and we suggest you have a look. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
