ATA Creativity Global

Greetings. Welcome to ATA Creativity Global's third quarter 2024 financial results call. At this time, all participants are in a listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Alice Zhang with the Equity Group. Thank you, Alice. You may begin.

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 discussions on today's call may include forward-looking statements. 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 various factors that could affect these projections and assumptions. The company assumes no obligation to update for looking statements as a result of new information, future events, or otherwise. Regarding the disclaimer language, I would also like to refer you to slide two 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. ACG's Chairman and CEO, Mr. Kevin Ma, will start this call highlighting the company's third quarter and nine-month key operational and financial achievements. CFO Mr. Robert Sima will provide an overview of financial and operating results for third quarter and nine-month 2024, expectations for the remainder of 2024, and four-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 company's slide presentation, please refer to the slides for further details. With that, I'll turn the call over to ACC's Chairman and CEO, Mr. Kevin Ma. Please go ahead, Mr. Ma.

Thank you, Alice. Welcome, everyone. Evening to those in America. I appreciate everyone's time. As Alice mentioned, this refers to our early available on the IR site of our website as we go through our prepared remarks. During the third quarter of 2024, ACG continued to focus on providing quality service to our various students and parents, developing product and service offerings to attend to our students' growing and evolving needs. new partnerships with institutions within the art industry, as well as seeking collaboration opportunities across different industries. As a last term, the third quarter of 2024 was a strong quarter for SEG in terms of net revenues and student earnings. We reported a double-digit growth in net revenues and overall student This is highlighted by strong student elements for our portfolio training programs as well as increased credit hours delivered during that period. For 9 months 2024, we saw equal strong year-over-year improvements as net revenue overall elements rate and credit hours delivered. or increased by more than 20% compared to 9 months 2023. Portfolio Trading Services remains our main source of revenues, contributing more than 70% of our total revenues for both third quarter 2024 and 9 months 2024. Within this part of the service, we continued to encourage students to sign up for project-based programs. As a result, this segment continues to account for the majority of our portfolio training service, responsible for 70% of total credit in our university course. Thanks to our continuous effort in developing various programs and offerings, We are also seeing a growing interest in other parts of our service. Student elements for research-based learning and overseas study concerning increased by more than 20% compared to the third quarter of 2023. For this summer, our highest projects include the second session of the United Nations sustainable development goals of both campuses. Two integrable culture heritage campuses in China, one U.S. campus in Seoul, and two summer campuses in London and Tokyo. In addition, for the first time since the pandemic, apart from our usually online master classes, we also hosted the ACG Summer Lab providing students with the opportunity to study in person with lecturers joining us from British art institutions and the art field in general. We believe the capability to provide those various experiences is one of APJ's core competences in the British art market, which is due to our continuous investment and close monitoring of the art students in the academia and the industry, as well as the strong global partnership network that allows us to produce world-class resources. During the third quarter of 2024, we continued to expand our partnership network by establishing new strategic partnerships with leaders and service areas in the U.S. which dreams will extend our lives. With that, I will hand over the call to Suma for a detailed overview of our financial and office results for the quarter of 9 March 2024 and our guidance for fiscal year 2024.