ATA Creativity Global (AACG) stock gained a humungous 114.29% during the regular session on January 04. Investors seem to have flocked towards the stock while there was no news from the company behind the move. Resultantly, the stock fell under corrections in the after-hours session.
AACG closed the regular session at $2.55 with a huge gain of $1.36 on Tuesday. Consequently, the stock fell and went down to $2.22 with a loss of 12.94% at 6.31 million shares in the after hours.
What is happening?
On January 04, AACG stock was driven up by a heavy volume of 14.93 million shares. The day’s volume was 6,474% of its 65-day average. While there was no news from the company, the stock reached a high of $2.59 during regular trading. The stock was able to reach such a high after more than seventy days. The huge gain of the day added to the high price attained in the session led the stock towards its fall in the after hours. Consequently, the stock succumbed to corrections in the after-hours on Tuesday.
Moreover, AACG stock has added a huge 117.95% in the past five days alone. The stock has gained 66.67% last month with a year-to-date gain of 138.21%.
AACG’s AGM Results
On December 03, the company announced the results of its 2021 Annual General Meeting of Shareholders. The AGM was held on the same day, i.e. Friday, December 03, 2021. According to the results, all the proposals were approved in the AGM including:
- The re-election of Zhilei Tong as class A Director of AACG.
- And the re-appointment of KPMG Huazhen LLP as the fiscal year 2021’s independent auditor of AACG. Furthermore, the board of directors and its audit committee were also authorized for determining the remuneration of KPMG Huazhen LLP.
AACG’s Financial Analysis
The company disclosed its financial results for the third quarter of 2021, on November 10. Further, the company’s third quarter of 2021 ended on September 30, 2021.
In the third quarter of 2021, AACG had net revenues of RMB55.3 million (US$8.6 million), against RMB42.2 million in Q3 of 2020. This shows an increase of 31.0% year over year.
AACG incurred a net loss of RMB26.2 million (US$4.1 million) in Q3 of 2021, against RMB14.4 million in the year-ago quarter. This increase was essentially due to increased operating expenses in the quarter.
