ATA Creativity Global (AACG) stock declined in the intraday session following the announcement of second-quarter 2021 financial results yesterday. AACG stock saw a decline of 5.00% to drop at $2.66 a share as of this writing. The stock was also gloomy in the previous trading session and went down by 4.76% at closing. ATA Creativity Global is an educational services provider to individual students in China.
Second Quarter 2021 Financial Results:
- AACG stock reported net revenue of RMB36.8 million in Q2,2021, 39.4% higher as compared to RMB26.4 million in Q2,2020.
- Gross profit for the profit significantly increased by 142.4% to reach RMB16.0 million as compared to RMB6.6 million in Q2,2020.
- ACG stock spent RMB39.8 million in operating expenses, 11.9% lower than RMB45.2 million in the same period of the prior year.
- Loss from operation in the reported quarter improved to RMB23.8 million while it was RMB38.5 million in Q2,2020.
- AACG stock reported a net income of RMB14.1 million as compared to a net loss of RMB32.1 million in the same prior-year quarter.
- ACG stock reported RMB0.21 (US$0.03) for both basic and diluted earnings per share in the reported quarter. In the previous year same quarter, basic and diluted losses per common share were RMB0.54
Financial Review of First half 2021:
- Total revenues for the first half were RMB74.4 million, 25.9% higher than the same period of the previous year.
- Gross profit for AACG stock increased by 67.4% to reach RMB30.8 million as compared to Q1,2020.
- ACG stock reported RMB77.9 million operating expenses in the first half of 2021, 6.9% lower than the same period of the previous year.
- AACG stock suffered an RMB47.1 million loss from operations for the first half, lower than RMB65.0 million in the same prior-year period.
- Net loss significantly improved to RMB4.9 million from RMB52.5 million in the first half of 2020.
- ACG stock’s basic and diluted losses per common share were both RMB0.11 in the first half of 2021. In the first half of 2020, ACG stock reported RMB0.89 for basic and diluted losses per common share
Enrollment Update of AACG stock:
1051 students enrolled in the second quarter of 2021 as compared to 772 in the same period of the prior year. Out of these 1051, 561 students did enroll in portfolio programs of ACG stock that comprises time-based programs and project-based programs. Delivered credit hours in the second quarter were 28,445 as compared to 27,933 in the same quarter last year.
Balance Sheet of AACG stock:
AACG stock reported RMB91.4 million in cash and cash equivalents as of June 30, 2021. The working capital deficit of the stock was RMB183.4 million and the total equity of shareholders was RMB220.3 million.
Wrap Up:
AACG stock is passing through hard days despite the increased revenue and gross profit in the second quarter of 2021. The management says that they are vigilant to follow the guideline and rules which Chinese government has imposed on the education sector. Still investors must be aware of all facts and figures before adding this stock to their portfolio.
