ATA Creativity Global

Greetings. Welcome to ATA Creativity Global fourth quarter and year-end 2025 financial results call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Allison for the equity group. Please proceed.

Thank you, operator. Good evening to all of you joining us from the United States, and good morning to all of you joining us from China. 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 risk factors that could affect these projections and assumptions. The company assumes no obligation to update forelooking 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. 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 by highlighting the company's fourth quarter 2025 key operational achievements and financial highlights. Therefore, Mr. Rob Aitsuma will provide an overview of financial and operating results for fourth quarter 2025 and four-year 2025. 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 accompanying slide presentation, please refer to the slides for further details. With that, I'll turn the call over to ACG's Chairman and CEO, Mr. Kevin Ma. Please go ahead, Mr. Ma.

Thank you, Alice. And welcome, everyone. Good evening to the seeing Americans. We appreciate everyone's time. As Alice mentioned, please refer to our early stick available on the IR site of our website. as we go through our prepared remarks. As we have discussed in previous quarters, 2025 overall students demand to normalize the following student elements in the previous year, while we report lower total revenues during fourth quarter 2025 as compared to the same period of last year. Revenues from research-based learning and other educational services increased year over year, primarily as we hosted more projects and provided more service to institutional partners in fourth quarter 2025 due to cost saving initiatives we have been implementing and resulting streamlined operations compared to fourth quarter 2024. We reported 15.7% lower operating expenses, including a one-time goodwill impairment charge in Q4 2025. For fiscal year 2025, despite the overall normalized the marked demand, the total revenues were stable, supported by our core portfolio training services, and increased the contribution from research-based learning, overseas study concerning and other educational service. Full year 2025 was also marked by lowered operating expenses as compared to full year 2024. During fourth quarter 2025, our main revenue contributor remained the portfolio training service, accounting for 68.8% of total net revenue. Project-based programs have become the main choice for our students, accounting for 74.9% of total credit hours delivered. with 66.8% in fourth quarter 2024. Revenues from research-based learning and overseas study concerning increased by 4.6% during fourth quarter 2025 as a result of more service delivered for in-school art classes in partnership with schools. During fourth quarter 2025, our highly divided by research-based learning services continued to get student interest, especially during the winter vacation when students have the time to participate in more intensive projects, either in person or online. As usual, in addition to our open-hug Shanghai Fashion Week project, we hosted 10 online masterclasses covering a wide area of art topics, given by lecturers from top universities, including Carnegie Mellon University, Harvard University, as well as the University of London Royal College of Art. We also made continuous investments to ensure ACG students had access to world-class educational infrastructure and academic resources, when preparing for Overseas Studies Journals. In October, we hosted the 2025 ACG Experts Tour in several cities, bringing academia and industry experts to Shanghai, Wuhan, Chengdu, Chongqing, and Suzhou to site a face-to-face with over 1,000 students. Experts gave lectures on industrial and academic trends interdisciplinary design and main leader with 30 students one-on-one, providing feedback on their artwork and application portfolios, and sharing their input in career planning. During quarter four, 2025, we established the SAG's first music preparatory center in Tendu, Working in exclusive partnership with Leeds Conservatory, which is the first and only music-focused preparatory center in collaboration with overseas institutes to provide a one-year intensive study program before students head to the UK to finish their bachelor degree. We also implemented a series of service enhancements to our existing SEG Japan Center, which now hosts more master class projects and provides improved class offerings and courses, customization, working in collaboration with more Japanese arts schools. Additionally, we began providing services to more institutional partners, contributing to increased revenues from other educational services. With that, I hand over the call to Sima for a detailed overview of our financial and operating results for fourth quarter and the full year 2025.