ATA Creativity Global $(ACG.UK)$, an international educational services company, reported its financial results for Q1 2025, ending March 31, 2025. The company experienced a 15.9% increase in net revenues, reaching RMB55.8 million ($7.7 million), compared to RMB48.1 million in Q1 2024. Gross profit also rose by 15.9% to RMB25.4 million ($3.5 million), aligning with the increase in net revenues. However, the gross margin remained stable at 45.5%, consistent with the previous year. Despite improvements in revenue and gross profit, ACG reported a net loss of RMB13.3 million ($1.8 million) for Q1 2025, which is a reduction from the net loss of RMB17.9 million in Q1 2024. The company's cash and cash equivalents stood at RMB39.4 million ($5.4 million) as of March 31, 2025. In terms of operational performance, student enrollment decreased by 19.4% to 1,104 in Q1 2025 from 1,370 in the same quarter of the previous year. The company attributes revenue growth primarily to increased contributions from portfolio training programs and research-based learning services.
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