ATA Creativity Global Files 20-F for Fiscal Year Ended December 31, 2023

TL;DR

<b>ATA Creativity Global has submitted its comprehensive 20-F annual report detailing financial performance and corporate structure for the fiscal year ending December 31, 2023.</b>

AI Summary

ATA Creativity Global (AACG) filed a Foreign Annual Report (20-F) with the SEC on April 10, 2024. ATA Creativity Global (AACG) filed its annual 20-F report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. Key financial statement components such as Retained Earnings, Parent, Noncontrolling Interest, Additional Paid-In Capital, and Accumulated Other Comprehensive Income are detailed for the fiscal years 2020-2023. Information regarding stock options for employees and non-employees is noted for November 2023. The company's business address is listed as RM. 507, BLDG. 3, BINHUZHUOYUECHENG, WENHUAKECHUANGYUAN, HUAYUAN BLVD. 365, BAOHE, HEFEI, ANHUI.

Why It Matters

For investors and stakeholders tracking ATA Creativity Global, this filing contains several important signals. This 20-F filing provides investors with a detailed overview of ATA Creativity Global's financial health, operational structure, and any significant corporate events or changes during the 2023 fiscal year. The report is crucial for understanding the company's financial position, including its equity structure, retained earnings, and other comprehensive income, which are essential for investment analysis and due diligence.

Risk Assessment

Risk Level: medium — ATA Creativity Global shows moderate risk based on this filing. The company's filing is a standard annual report (20-F), which typically contains a broad range of financial and operational information but does not inherently signal immediate positive or negative performance trends without further analysis of the specific figures within.

Analyst Insight

Review the detailed financial statements and disclosures within the 20-F filing to assess the company's financial performance, debt levels, and any potential risks or opportunities for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-04-10 — Filing Date (Filed as of date)
• 177581176 — Total Shares Outstanding (approx) (From filing data)
• 18708316 — Total Assets (approx) (From filing data)
• 196289492 — Total Liabilities (approx) (From filing data)

Key Players & Entities

• ATA Creativity Global (company) — Filer name
• AACG (company) — Ticker symbol
• 20-F (document) — Form type
• December 31, 2023 (date) — Fiscal year end
• April 10, 2024 (date) — Filing date
• 8200 (industry_code) — Standard Industrial Classification
• ATA Inc. (company) — Former company name
• RM. 507, BLDG. 3, BINHUZHUOYUECHENG (address) — Business street 1

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 20-F filing.
• 2024-04-10: Filing Date — Date the 20-F report was officially submitted to the SEC.

Key Financial Figures

• $0.01 — resenting two common shares, par value $0.01 per share AACG Nasdaq Global Market
• $1 — t are made at a rate of RMB 7.0999 to US$1.00, the noon buying rate in effect as o
• $31.2 million — MB 206.8 million and RMB 221.6 million ($31.2 million) in the fiscal years ended December 31,

Filing Documents

• aacg-20231231x20f.htm (20-F) — 4394KB
• aacg-20231231xex2d4.htm (EX-2.4) — 183KB
• aacg-20231231xex8d1.htm (EX-8.1) — 8KB
• aacg-20231231xex12d1.htm (EX-12.1) — 13KB
• aacg-20231231xex12d2.htm (EX-12.2) — 12KB
• aacg-20231231xex13d1.htm (EX-13.1) — 5KB
• aacg-20231231xex13d2.htm (EX-13.2) — 5KB
• aacg-20231231xex15d1.htm (EX-15.1) — 3KB
• aacg-20231231xex15d2.htm (EX-15.2) — 3KB
• aacg-20231231xex15d3.htm (EX-15.3) — 6KB
• aacg-20231231xex15d4.htm (EX-15.4) — 42KB
• aacg-20231231xex15d5.htm (EX-15.5) — 11KB
• aacg-20231231xex97.htm (EX-97) — 55KB
• aacg-20231231x20f007.jpg (GRAPHIC) — 98KB
• aacg-20231231x20f008.gif (GRAPHIC) — 34KB
• aacg-20231231x20f012.jpg (GRAPHIC) — 68KB
• aacg-20231231xex15d3001.jpg (GRAPHIC) — 10KB
• 0001104659-24-045459.txt (&nbsp;) — 17386KB
• aacg-20231231_def.xml (EX-101.DEF) — 482KB
• aacg-20231231_lab.xml (EX-101.LAB) — 804KB
• aacg-20231231_pre.xml (EX-101.PRE) — 708KB
• aacg-20231231.xsd (EX-101.SCH) — 114KB
• aacg-20231231_cal.xml (EX-101.CAL) — 80KB
• aacg-20231231x20f_htm.xml (XML) — 2948KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No (APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS) Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No Table of Contents TABLE OF CONTENTS Page Introduction 1

Forward-looking Statements

Forward-looking Statements 2 Part I. 3

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers 3

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable 3

Key Information

Item 3. Key Information 3

Information on the Company

Item 4. Information on the Company 70

Unresolved Staff Comments

Item 4A. Unresolved Staff Comments 101

Operating and Financial Review and Prospects

Item 5. Operating and Financial Review and Prospects 101

Directors, Senior Management and Employees

Item 6. Directors, Senior Management and Employees 117

Major Shareholders and Related Party Transactions

Item 7. Major Shareholders and Related Party Transactions 126

Financial Information

Item 8. Financial Information 127

The Offer and Listing

Item 9. The Offer and Listing 129

Additional Information

Item 10. Additional Information 129

Quantitative and Qualitative Disclosures About Market Risk

Item 11. Quantitative and Qualitative Disclosures About Market Risk 136

Description of Securities Other Than Equity Securities

Item 12. Description of Securities Other Than Equity Securities 137 Part II. 139

Defaults, Dividend Arrearages and Delinquencies

Item 13. Defaults, Dividend Arrearages and Delinquencies 139

Material Modifications to the Rights of Security Holders and Use of Proceeds

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 139

Controls and Procedures

Item 15. Controls and Procedures 139

Reserved

Item 16. Reserved 140

Audit Committee Financial Expert

Item 16A. Audit Committee Financial Expert 140

Code of Ethics

Item 16B. Code of Ethics 140

Principal Accountant Fee and Services

Item 16C. Principal Accountant Fee and Services 140

Exemptions from the Listing Standards for Audit Committees

Item 16D. Exemptions from the Listing Standards for Audit Committees 140

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 140

Change in Registrant's Certifying Accountant

Item 16F. Change in Registrant's Certifying Accountant 141

Corporate Governance

Item 16G. Corporate Governance 141

Mine Safety Disclosure

Item 16H. Mine Safety Disclosure 141

Disclosure regarding Foreign Jurisdictions that Prevent Inspections

Item 16I. Disclosure regarding Foreign Jurisdictions that Prevent Inspections 141

Insider trading policies

Item 16J. Insider trading policies 142

Cybersecurity

Item 16K. Cybersecurity 142 Part III. 143

Financial Statements

Item 17. Financial Statements 143

Financial Statements

Item 18. Financial Statements 143

Exhibits

Item 19. Exhibits 144 Signature 148 Table of Contents INTRODUCTION Except where the context otherwise requires and for purposes of this annual report only: unless otherwise noted, all references to years are to the calendar years from January 1 to December 31 and references to our fiscal year or years are to the fiscal year or years ended December 31. the "Company" refers to ATA Creativity Global, formerly known as ATA Inc. "we," "us," "our company," "our" and "ACG" refer to the Company and its subsidiaries, as the context requires. the "VIE" refers to ATA Intelligent Learning (Beijing) Technology Limited, our variable interest entity based in China, and its subsidiary, as the context requires. the "WFOE" refers to ATA Education Technology (Beijing) Limited, formerly known as ATA Testing Authority (Beijing) Limited. "Huanqiuyimeng" refers to Beijing Huanqiuyimeng Education Consultation Corp., 100% equity interests of which were acquired by the VIE and us in 2019 (the "Huanqiuyimeng Acquisition"). "ATA Online" refers to ATA Online (Beijing) Education Technology Co., Ltd., which was a wholly owned subsidiary of us and was disposed of by us on August 16, 2018. "ATA Online Business" refers to, collectively, ATA Online and its subsidiaries, ATA Learning (Beijing) Inc., or ATA Learning, and Zhongxiao Zhixing Education Technology (Beijing) Limited, which were former subsidiaries of the Company incorporated under the laws of mainland China and holding companies of ATA Online, which we disposed of on August 16, 2018. "China," "Chinese" and "PRC" refer to the People's Republic of China. all references to "Renminbi" or "RMB" are to the legal currency of mainland China, and all references to "U.S. dollars," "dollars," "$" or "US$" are to the legal currency of the United States. "U.S. GAAP" refers to generally accepted accounting principles in the United States. "PRC GAAP" refers to generally accepted accounting principles in mainland China. "PRC law(s) and

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This annual report on Form 20-F contains forward-looking statements within the meaning of the US. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on our current expectations, assumptions, estimates and projections about us and our industry. All statements other than statements of historical facts in this annual report are forward-looking statements. In some cases, these forward-looking statements can be identified by words and phrases such as "may," "should," "intend," "predict," "potential," "continue," "will," "expect," "anticipate," "estimate," "plan," "believe," "aim," "is /are likely to" or the negative form of these words and phrases or other comparable expressions. The forward-looking statements included in this annual report relate to, among others: our goals and strategies; our future prospects and market acceptance of our products and services; our future business development and results of operations; our plans for mergers and acquisitions; the impact of the Huanqiuyimeng Acquisition; projected revenues, profits, earnings and other estimated financial information; our plans to expand and enhance our products and services; the potential market size and growth of our products and services; competition in the market for our products and services; PRC laws, regulations and policies, including those applicable to the education industry, internet content providers, variable interest entity and foreign exchange; the impact of the political tensions between the United States and China or other countries, and the impact of actual or potential international military actions; the impact of the coronavirus disease, or COVID-19, and other pandemics or natural disasters; and assumptions underlying or related to any of the foregoing. These forward-looking statements involve various risks, assumptions and uncertainties. Although we believe that our expectations expressed in these forwa

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not applicable.

KEY INFORMATION

ITEM 3. KEY INFORMATION Overview We are an international educational services provider focusing on providing quality international educational experiences related to the cultivation and improvement of students' creativity. Currently, our principal product and service are portfolio training services which we provide to students in China who are interested in studying art overseas. We believe we are one of the leading players in the portfolio training market in many regards, including geographic coverage, product breadth and student enrollment, among others. To achieve our one-stop service strategy, we also provide research-based learning services, overseas study counselling services, in-school art classes through cooperation with high schools and training organizations, junior art education and other educational services to our students. We have successfully helped thousands of students in China gain entry into art universities and colleges in the U.S., UK, Europe, Japan, Australia and other countries, among which quite some have gained entry into top art universities and colleges in such countries. While working on developing new international education related products and services, we are also exploring acquisition opportunities in the international education sector to broaden our service spectrum. For the fiscal year ended December 31, 2023, we had 4,129 students enrolled, of which 60.2% were enrolled in our portfolio training programs and the remainder were enrolled in our other programs. Our net revenues were RMB 202.2 million, RMB 206.8 million and RMB 221.6 million ($31.2 million) in the fiscal years ended December 31, 2021, 2022 and 2023, respectively. The Company is not a Chinese operating company but a Cayman Islands holding company with operations conducted primarily through its PRC subsidiary Huanqiuyimeng and its subsidiaries. The Company, through its wholly owned subsidiary ACG International Group Limited, or ACGIGL, holds 69.04% of the equity int

View Full Filing

View this 20-F filing on SEC EDGAR