# EDGAR Filing Document

**Accession Number:** 0001420529
**File Stem:** 0001104659-25-113200
**Filing Date:** 2025-11
**Character Count:** 194427
**Document Hash:** 445c7ae3cec5033b7fee6cb20cc6cfbf
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-113200.hdr.sgml**: 20251117

**ACCESSION NUMBER**: 0001104659-25-113200

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 103

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251117

**DATE AS OF CHANGE**: 20251117

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ATA Creativity Global
- **CENTRAL INDEX KEY:** 0001420529
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-EDUCATIONAL SERVICES [8200]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33910
- **FILM NUMBER:** 251491282

**BUSINESS ADDRESS:**
- **STREET 1:** RM. 507, BLDG. 3, BINHUZHUOYUECHENG
- **STREET 2:** WENHUAKECHUANGYUAN, HUAYUAN BLVD. 365
- **CITY:** BAOHE, HEFEI, ANHUI
- **STATE:** F4
- **ZIP:** 230051
- **BUSINESS PHONE:** 8610-6518-1133

**MAIL ADDRESS:**
- **STREET 1:** 1/F EAST GATE, BLDG. NO.2, JIAN WAI SOHO
- **STREET 2:** NO.39 DONG SAN HUAN ZHONG ROAD,
- **CITY:** CHAO YANG DISTRICT, BEIJING
- **STATE:** F4
- **ZIP:** 100022

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ATA Inc.
- **DATE OF NAME CHANGE:** 20071207

?xml version='1.0' encoding='ASCII'? ATA Creativity Global_2025-09-30

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**United States**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE**

**SECURITIES EXCHANGE ACT OF 1934**

**For the month of November 2025**

**Commission File Number: 001-33910**

**ATA Creativity Global**

**c/o Rm. 507, Bldg. 3, BinhuZhuoyueCheng, WenhuaKechuangYuan, Huayuan Blvd. 365, Baohe, Hefei, Anhui 230051, China**

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F&nbsp;&nbsp;&nbsp;&nbsp; ☒ Form 40-F&nbsp;&nbsp;&nbsp;&nbsp; ☐

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EXPLANATORY NOTE

Exhibit 99.1 and Exhibit 99.2 to this Report on Form 6-K, are incorporated by reference into the Company's Registration Statement on Form F-3 (File No. 333-278921), filed with the Securities and Exchange Commission on April 25, 2024, to be a part thereof from the date on which this Report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.

EXHIBIT INDEX

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| | |
|:---|:---|
| Exhibit No. | Description |
| 99.1 | [Management's Discussion and Analysis of Financial Condition and Results of Operations for the Nine Months ended September 30, 2024 and 2025](aacg-20251117xex99d1.htm) |
| 99.2 | [Unaudited Interim Condensed Consolidated Financial Statements for the Nine Months ended September 30, 2024 and 2025](aacg-20251117xex99d2.htm) |

---

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | |
|:---|:---|
| ATA Creativity Global | ATA Creativity Global |
| By: | /s/ Ruobai Sima |
| Name: | Ruobai Sima |
| Title: | Chief Financial Officer |

---

Date: November 17, 2025

## Exhibit 99.1

**Exhibit 99.1**

**Management's Discussion and Analysis**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes that appear in Exhibit 99.2 of this Form 6-K. In addition to historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms including "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "will," "would," or the negative of these terms or other similar expressions. Our actual results could differ materially from those discussed in the forward-looking statements due to certain factors, including, without limitation, the risks set forth under the caption "Risk Factors" in our most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission, or the SEC, on April 10, 2025, which are incorporated herein by reference as well as those business risks and factors described elsewhere in this report and in our other filings with the SEC. All forward-looking statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.*

**A. Operating Results**

**Overview**

***Our Business***

We generated revenues primarily from our portfolio training services, research-based learning services, overseas study counselling services and other educational services. Our services are conducted primarily through Beijing Huanqiuyimeng Education Consultation Corp., or Huanqiuyimeng, and its subsidiaries.

Our net revenues were RMB167.1 million and RMB179.0 million ($25.1 million) in the nine-month period ended September 30, 2024 and 2025, respectively. We had net loss of RMB49.4 million and RMB21.7 million ($3.1 million) in the nine-month period ended September 30, 2024 and 2025, respectively.

***Factors Affecting Our Results of Operations***

The key factors affecting our results of operations presented herein are:

● overall economic growth and rising income levels in China contributing to the increasing spending on education and related services;

● potential changes in regulations and policies that may directly or indirectly impact the scope and credibility of services we could deliver;

● our capability to develop and create content that can accommodate needs of potential students, in the classroom, online and in hybrid settings;

● our ability to provide effective creative arts-related international education services and control sales and marketing expenses;

● recognition in the marketplace for services we deliver and branding we have established; and

● competition from both established brands and new entrants, and our ability to maintain our market share in the face of increasing competition.

In addition, our results of operations have been, and may continue to be, significantly affected by the following factors:

● our share-based compensation;

● the impacts of PRC tax policies, including certain preferential tax rates;

● the relative proportion of our net revenues derived from higher- and lower-gross margin service offerings;

● the impacts of strategic investments and acquisitions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● our ability to maintain similar margins, locate students, etc.;

● the impact of political tensions between the United States and China;

● the impact of international tensions and conflicts generally; and

● the impact of public health epidemic or pandemic or natural disasters.

**Net Revenues**

We derived revenues primarily from our portfolio training services, research-based learning services, overseas study counselling services and other educational services in the nine-month period ended September 30, 2024 and 2025. Our net revenues are presented net of PRC VAT. The following table sets forth our net revenues from our continuing operations for the periods presented.

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| | | | |
|:---|:---|:---|:---|
|  | **For the nine-month period ended**  | **For the nine-month period ended**  | **For the nine-month period ended**  |
|  | **September 30,** | **September 30,** | **September 30,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
|  | **(in thousand)** | **(in thousand)** | **(in thousand)** |
| Net Revenues |  |  |  |
| Portfolio training services | 125041 | 125934 | 17690 |
| Research-based learning services | 12555 | 17218 | 2419 |
| Overseas study counselling services | 20389 | 25182 | 3537 |
| Other educational services | 9159 | 10651 | 1496 |
| Total net revenues | 167145 | 178986 | 25142 |

---

*Portfolio Training Services*

We derive portfolio training services revenues primarily from fees charged to our students, mainly high school and undergraduate students, in the form of delivering training programs. Our portfolio training programs consist of time- based programs and project-based programs. Students who elect the time-based programs enroll in a certain number of consulting/training hours, whereas students who elect the project-based programs have no consulting/training hour constraint but will be guided through a certain number of projects needed to complete a portfolio. Under project-based programs, the number of credit hours required to complete a project may vary depending on the background and requirements of the students. In association with and as an extension to our portfolio training services, we also provide undergraduate foundation course programs which are recognized by certain overseas art universities or colleges for students who need to take foundation courses before formal admission to such overseas universities or colleges.

The most significant factors that affect our revenues from portfolio training services include the amount of credit hours for portfolio training we deliver to our students, the number of individual students who enroll in our portfolio training services and the unit price level that we charge our students.

*Research-based Learning Services*

We derive research-based learning services revenues primarily from research-based learning services fees charged to our students, who mainly consist of our portfolio training students and other students interested in educational travels and research-based learning projects. Our research-based learning services primarily include academic educational learning, workshop programs and themed educational travel services. Currently, research-based learning services are conducted mainly in summer with a lesser amount in winter and the other seasons during the year.

The most significant factors that affect our revenues from research-based learning services include the number of individual students who enroll in our research-based learning services, the volume of services rendered and the unit price level that we charge our students.

*Overseas Study Counselling Services*

We derive overseas study counselling services revenues primarily from overseas study counselling services fees charged to students who intend to pursue overseas art and creativity education through providing relevant consulting services in the following aspects: timetable customization, university and program selection, paperwork writing, interview simulation and enrollment documents preparation, etc.

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The most significant factors that affect our revenues from overseas study counselling services include the number of individual students who enroll in our counselling services, the unit price level that we charge our students and measurement of progress for services delivered during the reporting period.

*Other Educational Services*

We derived our other educational services revenues primarily from services provided to students for in-school classes, junior art education, and certain other education related services. In-school classes are designed to partner with international schools to provide professional art courses in the in-school art-related classes. Junior art education services are designed to provide art-related tutoring courses for junior students from ages three to 12. We disposed of all of the junior art education business in October 2024 to focus on growing our core art-related international education services business.

The most significant factors that affect our other educational services revenues include the unit price level of the various other educational services that we charge our customers, the amount of credit hours we deliver to our customers and the measurement of progress for various services delivered during reporting periods.

*Seasonality*

We have experienced and expect to continue to experience slight seasonal fluctuations in our revenues and results of operations, with the quarter ending March 31 typically having relatively lower revenues compared with the other quarters. This is primarily because fewer students take classes in January and February due to spring festival holidays in China and because some students complete their application for overseas art programs in December of the previous year. We expect quarterly fluctuations in our revenues and results of operations to continue.

**Cost of Revenues**

Our cost of revenues consists primarily of payroll and compensation to our teachers, salary and compensation to other operational staffs, rental cost of our training centers and offices, cost of teaching materials and outsourcing services costs, all of which are directly attributable to the rendering of various services. The following table shows our cost of revenues and gross profit from our continuing operations for the periods presented:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the nine-month period ended September 30,** | **For the nine-month period ended September 30,** | **For the nine-month period ended September 30,** | **For the nine-month period ended September 30,** | **For the nine-month period ended September 30,** |
|  | **2024** | **2024** | **2025** | **2025** | **2025** |
|  | **RMB** | **%** | **RMB** | **US$** | **%** |
|  | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** | **(in thousands, except for percentages)** |
| Net Revenues | 167145 | 100.0% | 178986 | 25142 | 100.0% |
| Cost of Revenues | 89544 | 53.6% | 98916 | 13895 | 55.3% |
| Gross Profit | 77601 | 46.4% | 80069 | 11247 | 44.7% |

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Cost of revenues primarily consists of (1) teaching fees, payroll and compensation to teaching support staff and administrative staff from training centers, performance-linked bonuses paid to teachers and rental payments for training centers as well as costs of course materials and teaching aids for portfolio training services, (2) payroll compensation, outsourcing service costs, lodging and transportation expenses, overseas expenses, and other related costs which are directly attributable to the provision of research-based learning services and overseas study counselling services, and (3) teaching fees, payroll compensation, content development costs, and other related costs, which are directly attributable to the rendering of other educational services and other services.

***Factors Affecting Gross Margin***

Our gross margin is primarily affected by unit price and the number of credit hours delivered for our portfolio training and other educational services, pricing and volume of our other services rendered mainly for the research- based learning and overseas art study counselling services, payroll and compensation to our teachers, salary and compensation to other operational staffs, costs paid to service providers, the rental costs of our training centers and offices, as well as costs of teaching materials and teaching supporting fees.

**Operating Expenses**

Our operating expenses consist of general and administrative expenses, sales and marketing expenses and research and development expenses.

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***General and Administrative Expenses***

Our general and administrative expenses consist primarily of salaries and benefits, traveling expenses, administration and share-based compensation expenses for our administrative, management and finance personnel, as well as other expenses including professional fees, office expenses and rental costs.

***Sales and Marketing Expenses***

Our sales and marketing expenses consist primarily of salaries and benefits and share-based compensation expenses for our sales and marketing personnel, as well as other expenses including meeting and conference expenses, advertising and promotional expenses, commissions for sales channels, online channel platform expenses, traveling and entertainment expenses and other sales and marketing expenses.

***Research and Development Expenses***

Our research and development expenses consist primarily of salaries and benefits for our research and development personnel, outsourcing services costs and other costs relating to the design, development, testing and enhancement of the technology systems in support for the rendering of our products and services. Research and development costs are expensed as incurred. Research and development cost incurred over software developed was primarily for internal use.

***Investment incomes***

For equity method investments, we recognize an impairment loss when there is a decline in value below the carrying value of the equity method investment that is considered to be other than temporary. The process of assessing and determining whether impairment on an investment is other than temporary requires significant amount of judgment. To determine whether an impairment is other than temporary, management considers whether it has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the decline in value, any change in value subsequent to the period end, and forecasted performance of the investee.

For other equity investments without a readily determinable fair value, we make a qualitative assessment considering the impairment indicators to evaluate whether an equity investment without a readily determinable fair value is impaired at each reporting period, and write it down to its fair value if a qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than its carrying value.

**Other Operating Income, Net**

We recorded nil rental income for the nine-month period ended September 30, 2024 and 2025.

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**Results of Operations**

The following table and period to period comparison and discussion set forth a summary, for the periods presented, of our consolidated results of operations and with each item expressed as a percentage of our total net revenues. Our historical results presented below are not necessarily indicative of the results that may be expected for any future period.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nine-month Period** | **Nine-month Period** | **Nine-month Period** | **Nine-month Period** | **Nine-month Period** |
| | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** | **Ended September 30,** |
| | **2024** | **2024** | **2025** | **2025** | **2025** |
| <br>(In thousands, except for percentages) | <br>**RMB** | **% of net**<br>**revenues** | <br>**RMB** | <br>**USD** | **% of net**<br>**revenues** |
| Net revenues | 167145 | 100.0% | 178986 | 25142 | 100.0% |
| Cost of revenues | 89544 | 53.6% | 98916 | 13895 | 55.3% |
| **Gross profit** | **77601** | **46.4%**  | **80069** | **11247** | **44.7%** |
| Operating expenses: |  |  |  |  |  |
| Research and development | 2924 | 1.7% | 2359 | 331 | 1.3% |
| Sales and marketing | 72387 | 43.3% | 62574 | 8790 | 35.0% |
| General and administrative | 62415 | 37.3% | 60131 | 8447 | 33.6% |
| Provision for loan receivable and other receivables |  |  | (3782) | (531) | (2.1)% |
| **Total operating expenses** | **137726** | **82.4%**  | **121283** | **17036** | **67.8%** |
| Other operating income, net | 87 | 0.1% | 119 | 17 | 0.1% |
| **Loss from operations** | **(60038)** | **(35.9)%**  | **(41095)** | **(5773)** | **(23.0)%** |
| Gain on disposal of PPE | 18 | —% |  |  |  |
| Investments income |  |  | 11933 | 1676 | 6.7% |
| Interest income, net of interest expenses Foreign currency exchange gains (losses),net | 868 | 0.5% | 189 | 27 | 0.1% |
| Foreign currency exchange losses, net | (8) | —% | (18) | (2) | —% |
| **Loss before income taxes** | **(59161)** | **(35.4)%**  | **(28990)** | **(4072)** | **(16.2)%** |
| Income tax benefit | (9824) | (5.9)% | (7247) | (1018) | (4.0)% |
| **Net loss** | **(49337)** | **(29.5)%** | **(21744)** | **(3054)** | **(12.1)%** |
| Net loss attributable to ATA Creativity Global | (49337) | (29.5)% | (21744) | (3054) | (12.1)% |

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| | | |
|:---|:---|:---|
|  | **Nine-month Period Ended** | **Nine-month Period Ended** |
|  | **September 30,** | **September 30,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Basic and diluted loss per common share | (0.78) | (0.34) |

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**Nine-month Period Ended September 30, 2025 Compared to Nine-month Period Ended September 30, 2024**

***Net Revenues***

Our total net revenues increased by RMB11.9 million, or 7.1%, to RMB179.0 million ($25.1 million) in the nine-month period ended September 30, 2025 from RMB167.1 million in the nine-month period ended September 30, 2024. This was primarily due to increased revenue contributions from overseas study counselling services and research-based learning services, and other educational services.

***Cost of revenues***

Our cost of revenues increased by RMB9.4 million, or 10.5%, to RMB98.9 million ($13.9 million) in the nine-month period ended September 30, 2025 from RMB89.5 million in the nine-month period ended September 30, 2024, primarily due to an increase in teaching costs and outsourcing costs mainly attributable to research-based learning services.

***Gross Profit***

Our gross profit increased by RMB2.5 million, or 3.2%, to RMB80.1 million ($11.2 million) in the nine-month period ended September 30, 2025 from RMB77.6 million in the nine-month period ended September 30, 2024.

***Operating Expenses***

General and Administrative Expenses. Our general and administrative expenses decreased by RMB2.3 million, or 3.7%, to RMB60.1 million ($8.4 million) in the nine-month period ended September 30, 2025 from RMB62.4 million in the nine-month period ended September 30, 2024, mainly as a result of accounting impact of purchase price allocation from a previously completed acquisition.

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Sales and Marketing Expenses. Our sales and marketing expenses decreased by RMB9.8 million, or 13.6%, to RMB62.6 million ($8.8 million) in the nine-month period ended September 30, 2025 from RMB72.4 million in the nine-month period ended September 30, 2024, primarily driven by lower headcount in sales personnel and decreased sales incentives.

Research and Development Expenses. Our research and development expenses decreased by RMB0.6million, or 19.3%, to RMB2.4 million ($0.3 million) in the nine-month period ended September 30, 2025 from RMB2.9 million in the nine-month period ended September 30, 2024, primarily due to the decrease in system development fee, which development was completed in the second quarter of 2024.

***Interest Income, Net of Interest Expense***

Our interest income, net of interest expenses, remained RMB0.19 million ($0.03million) in the nine-month period ended September 30, 2025, compared to RMB0.87 million in the nine-month period ended September 30, 2024.

***Foreign Currency Exchange Losses, Net***

Our net foreign currency exchange gains or losses primarily reflect the foreign exchange fluctuation effects of exchanging between U.S. dollar and Renminbi. We recorded a net foreign currency exchange loss of RMB17,670 ($2,482) in the nine-month period ended September 30, 2025, compared to a net loss of RMB7,668 in the nine-month period ended September 30, 2024.

***Income Tax Benefit***

Income tax benefit decreased by RMB2.6 million, or 26.2%, to RMB7.2 million ($1.0 million) in the nine-month period ended September 30, 2025 from RMB9.8 million in the nine-month period ended September 30, 2024, primarily due to the decrease in valuation allowance and the reduction of entities not subject to income tax. The effective income tax rate was 25% in the nine-month period ended September 30, 2025 compared to 15% in the nine-month period ended September 30, 2024.

***Net Loss***

As a result of the above factors, we had a net loss of RMB21.7 million ($3.1 million) in the nine-month period ended September 30, 2025, compared to a net loss of RMB49.4 million in the nine-month period ended September 30, 2024.

We had basic and diluted loss per common share of RMB0.34 ($0.05) in the nine-month period ended September 30, 2025, compared to basic and diluted loss per common share of RMB0.78 in the nine-month period ended September 30, 2024.

**B. Liquidity and Capital Resources**

**Cash Flows for the Nine-month Period Ended September 30, 2025 and Nine-month Period Ended September 30, 2024**

Our working capital and capital expenditure were primarily from cash generated from operating activities.

As of September 30, 2025, we had RMB96.8 million ($13.6 million) in cash. Our cash and cash equivalents were primarily deposited with reputable banks in China and Hong Kong. We intend to finance our future working capital and capital expenditure needs principally from cash generated from future operating activities and possible plans of financings from outside sources including public offerings or private placements.

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We believe our expected future cash flows from our operating activities, which are mainly generated from the Huanqiuyimeng business, are sufficient to meet our working capital requirements for at least the next 12 months from the date of this filing. Nevertheless, we may require additional sources of liquidity in the event of changes in business conditions or other future developments. Factors affecting our sources of liquidity include our sales performance and changes in working capital. Any changes in the significant factors affecting our revenues from the creative arts-related international education services may cause material fluctuations in our cash generated from operations. Changes in working capital, including any significant shortening or lengthening of our accounts receivable cycle or client prepayment cycles, may also cause fluctuations in our cash generated from operations. If our sources of liquidity are insufficient to satisfy our cash requirements, we may seek to sell additional equity or debt securities or obtain a credit facility to meet our cash needs. The sale of convertible debt securities or additional equity securities could result in dilution to our shareholders. The incurrence of indebtedness would result in debt service obligations and could result in operating and financial covenants that would restrict our operations. We cannot assure you that financing will be available in amounts or on terms acceptable to us, if at all.

The following table summarizes our net cash flows with respect to operating activities, investing activities and financing activities in the nine-month period ended September 30, 2024 and 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **Nine-month Period Ended September 30** | **Nine-month Period Ended September 30** | **Nine-month Period Ended September 30** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Net cash used in operating activities | (3767) | (19771) | (2777) |
| Net cash provided by (used in) investing activities | (18824) | 47539 | 6677 |
| Net cash provided by financing activities | 1877 | 32403 | 4551 |
| Effect of foreign exchange rate changes on cash | (62) | 112 | 15 |
| Net (decrease) increase in cash | (20776) | 60283 | 8467 |
| Cash and cash equivalents at beginning of the year | 60167 | 36524 | 5130 |
| Cash and cash equivalents at end of the year | 39391 | 96807 | 13598 |

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***Operating Activities***

Net cash used in operating activities was RMB19.8 million ($2.8 million) in the nine-month period ended September 30, 2025, mainly attributable to cash collection from sales of RMB130.7 million, partially offset by cash paid for payroll and compensation expenses of RMB129.1 million and cash paid for other cost and operating expenses of RMB21.4 million.

Net cash used in operating activities was RMB3.8 million ($0.5 million) in the nine-month period ended September 30, 2024, mainly attributable to cash collection from sales of RMB221.88 million, partially offset by cash paid for payroll and compensation expenses of RMB130.70 million and cash paid for other cost and operating expenses of RMB140.48 million.

***Investing Activities***

Net cash provided by investing activities in the nine-month period ended September 30, 2025 of RMB47.5 million ($6.7 million) was primarily attributable to proceeds from disposal of affiliates and partial business.

Net cash used in investing activities in the nine-month period ended September 30, 2024 of RMB18.8 million ($2.8 million) was primarily attributable to cash paid for property and equipment.

***Financing Activities***

Net cash provided by financing activities in the nine-month period ended September 30, 2025 of RMB32.4 million ($4.6 million) was primarily attributable to cash received from short-term loan

Net cash used in financing activities in the nine-month period ended September 30, 2024 of RMB1.9 million ($0.27 million) was primarily attributable to ash paid for repurchase of common shares.

**Indebtedness**

In November 2024, we mortgaged the 16th floor of Gongyuan Real Estate Property to Shanghai Pudong Development Bank Co., Ltd. Beijing Branch for a general credit line of RMB17.0 million. On September 25, 2025, we mortgaged the 8th floor of Gongyuan Real Estate Property to Huaxia Bank Co., LTD. Beijing Shili Pu Branch. to apply for a loan with a general credit line of RMB17.0 million, and repaid the outstanding loan to Shanghai Pudong Development Bank Co., Ltd. Beijing Branch in full. As of September 30, 2025, we have drawn down RMB16.03 million of the aforementioned credit line. As of September 30, 2025, other than the foregoing mortgage, we do not have any outstanding debt securities, contingent liabilities, other mortgages, or liens.

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**Capital Expenditures**

The following table sets forth our historical capital expenditures for the periods presented. Actual future capital expenditures may differ from the amounts presented below.

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| | | | |
|:---|:---|:---|:---|
|  | **Nine-month Period Ended September 30** | **Nine-month Period Ended September 30** | **Nine-month Period Ended September 30** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Capital Expenditures | 18581 | 2408 | 338 |

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Historically, our capital expenditures have been made primarily for leasehold improvements, computers and office equipment.

**Contractual Obligations**

Our contractual obligations comprise operating lease commitments and other commitments. The following table sets forth our contractual obligations as of September 30, 2025:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Payment Due | Payment Due | Payment Due | Payment Due | Payment Due | Payment Due |
|  | Total | Within 1 Year | 1-3 Years | 3-5 Years | More than 5 Years |
|  | (In thousands of RMB) | (In thousands of RMB) | (In thousands of RMB) | (In thousands of RMB) | (In thousands of RMB) |
| Operating Lease Obligations (1) | 36794 | 4613 | 26702 | 5479 |  |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Our operating lease obligations comprise office and training center lease obligations for our offices and training centers in China. These leases expire at different times over the period from the date hereof through June 2029 and will become subject to renewal. We will evaluate the need to renew each lease on a case-by-case basis prior to its expiration.

**Off-Balance Sheet Arrangements**

In August 2021, Huanqiuyimeng entered into an agreement with two third parties to invest in a new company, pursuant to which Huanqiuyimeng shall invest RMB110.0 million in cash representing 55% equity interests of the new company. The agreement was subsequently amended in March 2022 and October 2022. Pursuant to the amendments, the capital contribution by Huanqiuyimeng decreased to RMB30.0 million, representing 15% equity interests of the new company, while ATA Learning (Beijing) Inc., a company controlled by Xiaofeng Ma, our Chairman and CEO, shall invest RMB80.0 million as a new investor, representing 40% equity interests in the new company. The capital contribution obligations of Huanqiuyimeng amounting to RMB30.0 million is due on December 31, 2031. In October 2024, Huanqiuyimeng transferred its 15% equity interests in the new company to a third party, upon which, Huanqiuyimeng may still have supplementary liability for the remaining investment commitment if the transferee fails to make the capital contribution before the due date, which is June 2032.

In March 2025, Huanqiuyimeng invested in another new company, pursuant to which Huanqiuyimeng shall invest RMB0.3 million in cash representing 30% equity interests of the new company. The capital contribution obligations of Huanqiuyimeng amounting to RMB0.3 million is due in March 2030.

Other than as described above, we do not currently have, and do not expect in the future to have, any other off- balance sheet arrangements or commitments. In our ongoing business, we do not plan to enter into transactions involving, or otherwise form relationships with, unconsolidated entities or financial partnerships established for the purpose of facilitating off-balance sheet arrangements or commitments.

**C. Research and Development, Patents and Licenses, Etc.**

Research and development are important to our continued success. We have devoted significant resources to continuous research and curriculum development. We have a dedicated and experienced research and curriculum development team based at our headquarters consisting of 10 permanent staff and supplemented by professional art teachers as subject experts to analyze market demand, study cutting-edge developments and techniques, and develop the most appropriate curriculum and teaching methods that can help us achieve our goals for providing up-to-date and high quality international educational services. We will continue to look selectively for experienced research and development talents to further increase our research and development capabilities.

**D. Trend Information**

Other than as disclosed elsewhere herein, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material adverse effect on our revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**E. Critical Accounting Estimates**

We prepare our consolidated financial statements in conformity with U.S. GAAP, which requires us to make judgments, estimates and assumptions that affect the reported amount of our assets and liabilities, and disclose contingent assets and liabilities on the date of each set of consolidated financial statements and the reported amount of revenues and expenses during each financial reporting period. We continually evaluate these estimates and assumptions based on the most recently available information, our own historical experience and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates as a result of changes in our estimates or changes in the facts or circumstances underlying our estimates and assumptions.

An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time such estimate is made, if different accounting estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the consolidated financial statements. Some of our accounting policies require higher degrees of judgment than others in their application. We consider the policies discussed below to be critical to an understanding of our consolidated financial statements as their application places the most significant demands on our management's judgment. When reviewing our consolidated financial statements, you should take into account:

● our critical accounting policies discussed below;

● the related judgments made by us and other uncertainties affecting the application of these policies; and

● the sensitivity of our reported results to changes in prevailing facts and circumstances and our related estimates and assumptions;

***Goodwill***

Goodwill is not amortized, but tested annually for impairment on a qualitative or quantitative basis for the reporting unit as of December 31, or more frequently when events or circumstances indicate an impairment may exist at the reporting unit level. When performing the annual impairment test, the Company has the option of first performing a qualitative assessment to determine the existence of events and circumstances that would lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, the overall financial performance of the reporting unit, and other specific information related to the operations. If such a conclusion is reached, the Company would then be required to perform a quantitative impairment assessment of goodwill. However, if the assessment leads to a determination that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then no further assessments are required. A quantitative assessment for the determination of impairment is made by comparing the carrying amount of the reporting unit with its fair value, which is generally calculated using the discounted cash flow method.

Our goodwill of RMB196,289,492 ($27,572,621) as of September 30, 2025 was related to the overseas art study services reporting unit and other educational services reporting unit. For the periods presented, we elected to bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment testing. The fair value of the above two reporting units were based on the estimated price a willing buyer would pay and were determined using an income approach with future cash flow estimates supported by estimated revenue growth rates, operating margins, as well as the selection of an appropriate discount rate based on weighted-average cost of capital which includes a company-specific risk premium. These estimates are highly subjective, and our ability to achieve the forecasted cash is affected by factors such as changes in our operating performance, unexpected changes in future economic and market conditions, as well as regulatory requirements. As of September 30, 2025, the estimated fair value of overseas art study services reporting unit is RMB157.2 million, which exceeds its carrying value of RMB27.8 million, and the estimated fair value of the other educational services reporting unit is RMB17.9 million, which exceeds its carrying value of RMB7.6 million. The discounted cash flows were projected based on financial forecasts developed by management for planning purposes. Cash flows beyond the forecast periods were estimated using a terminal value calculation, which incorporated historical and forecasted financial trends for each reporting unit. Specifically, the income approach valuation included a cash flow discount rate at 19.0% and a terminal growth rate at 3.0%. We did not record any impairment loss for the nine-month period ended September 30, 2025, as the fair value of the reporting unit is in excess of its carrying value.

The valuations are based on information available as of the impairment review date and are based on expectations and assumptions that have been deemed reasonable by the management. Any changes in key assumptions, including unanticipated events and circumstances, may affect the accuracy or validity of such estimates and could potentially result in impairment charges.

***Revenue Recognition***

We generated revenue primarily from our portfolio training services, research-based learning services, overseas study counselling services, and other educational services through our training center network mainly in China.

In accordance with ASC 606, *Revenue from Contracts with Customers*, revenues were recognized upon the satisfaction of its performance obligation (upon transfer of control of promised goods or services to customers) in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services, excluding amounts collected on behalf of third parties (for example, value-added taxes).

------

Under ASC 606, we are also required to estimate variable consideration, the determination of stand-alone selling prices ("SSP") of performance obligations, and measurement of progress towards completion in revenue recognition.

In making the estimate of variable consideration, we apply judgments which are inherently subjective. This includes the assessment of the final outcome of the performance targets and our historical experience and performance. The amount of estimated variable consideration included in the transaction price is limited only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable condition is subsequently resolved. We review these estimates on a regular basis. Any changes in these factors which affect the estimated variable consideration and revenue recognized are applied prospectively.

The contracts with customers also include promises to transfer multiple services. Judgment is required to determine the SSP for each distinct performance obligation. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. For contracts with variable consideration, we determine that variable consideration is allocated according to the method as described above, because variable consideration is attributable to all of the performance obligations in a contract.

For each performance obligation satisfied over time, revenues were recognized over time by measuring the progress toward complete satisfaction of that performance obligation, including:

● Portfolio training services. Revenue is recognized over a period of time based on the number of training hours expended and total hours of training under the contracts with the students. Under project-based programs, the number of hours of trainings required to complete a project is not pre-determined and varies depending on the background and requirements of individual students. We reassess the total hours of training pursuant to each contract of project-based program with individual students on a quarterly basis. Any adjustments arising from the changes of estimated training hours are applied prospectively.

● Research-based learning services. Revenue is recognized when control of promised services is transferred to the customers in an amount of consideration to which we expect to be entitled in exchange for those services.

● Overseas study counselling services. Revenue is recognized over the service period on the basis of costs incurred to date to the total estimated costs.

● Other educational services. Revenue is recognized proportionately when the services are delivered.

● Other services. Revenue is recognized based on the nature of the services.

***Business Combination***

Business combinations are recorded using the acquisition method of accounting in accordance with ASC topic 805 ("ASC 805"): *Business Combinations*. The acquisition method of accounting requires an acquirer to determine the identifiable acquired assets, the liabilities assumed and any non-controlling interest in the acquiree at the acquisition date, measured at their fair values as of that date. The consideration transferred for an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities assumed, equity instruments issued as well as the contingent considerations as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total cost of the acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree, is recorded as goodwill. If the cost of the acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in earnings.

***Long-term Investments***

In accordance with ASC 321 *Investment- Equity Security*, we have elected to apply the measurement alternative to measure the equity investments that do not have readily determinable fair values at cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. We consider information in periodic financial statements and other documentation provided by the investees to determine whether observable price changes have occurred.

------

We make a qualitative assessment considering impairment indicators to evaluate whether the equity investments without a readily determinable fair value are impaired at each reporting period, and write down to its fair value if a qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than its carrying value. If an equity security without a readily determinable fair value is impaired, we include an impairment loss in net income equal to the difference between the fair value of the investment and its carrying amount.

***Recent Accounting Pronouncements***

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The FASB is issuing the amendments to enhance the transparency and decision usefulness of income tax disclosures. Investors currently rely on the rate reconciliation table and other disclosures, including total income taxes paid, to evaluate income tax risks and opportunities. While investors find these disclosures helpful, they suggested possible enhancements to better (1) understand an entity's exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities to increase future cash flows. The FASB decided that the amendments should be effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted. The adoption of this guidance did not have a material impact on the Company's financial position, results of operations and cash flows.

In March 2024, the FASB issued ASU 2024-02, "Codification Improvements — Amendments to Remove References to the Concepts Statements." This update contains amendments to the Codification that remove references to various FASB Concepts Statements. These changes remove references to various Concepts Statements, and the amendments apply to all reporting entities within the scope of the affected accounting guidance. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2024. Early application of the amendments in this Update is permitted for any fiscal year or interim period for which financial statements have not yet been issued (or made available for issuance). The Company believes the future adoption of this ASU is not expected to have a material impact on its financial statements

In November 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income— Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses." The amendments in this ASU are intended to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements for interim and annual reporting periods. For interim and annual reporting periods, an entity shall disaggregate, in a tabular format disclosure in the notes to financial statements, all relevant expense captions presented on the face of the income statement in continuing operations into the purchases of inventory, employee compensation, depreciation, amortization, and depletion. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this Update should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this Update or (2) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact the adoption of ASU 2024-03 will have on its consolidated financial statements and related disclosures.

------

## Exhibit 99.2

?xml version='1.0' encoding='ASCII'? ATA Creativity Global_2025-09-30

#### Exhibit 99.2

#### ATA CREATIVITY GLOBAL
UNAUDITED INTERIM CONSOLIDATED BALANCE SHEETS

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Note** | **December 31,** <br>**2024** | **September 30,**<br>**2025** | **September 30,**<br>**2025** |
|  |  |  |  | **USD** |
|  |  | **RMB** | **RMB** | **(Note 2(d))** |
| **ASSETS** |  |  |  |  |
| ***Current assets:*** |  |  |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | (1) | 36523995 | 96807261 | 13598435 |
| &nbsp;&nbsp;Accounts receivable, net |  | 2712845 | 298376 | 41913 |
| &nbsp;&nbsp;Prepaid expenses and other current assets | (4) | 27402834 | 29433191 | 4134456 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** |  | **66639674** | **126538828** | **17774804** |
| &nbsp;&nbsp;Long-term investments | (5) | 38000000 |  |  |
| &nbsp;&nbsp;Property and equipment, net | (7) | 38698086 | 33808663 | 4749075 |
| &nbsp;&nbsp;Intangible assets, net | (8) | 46236111 | 34491667 | 4845016 |
| &nbsp;&nbsp;Goodwill | (8) | 196289492 | 196289492 | 27572621 |
| &nbsp;&nbsp;Other non-current assets |  | 35156141 | 34606874 | 4861199 |
| &nbsp;&nbsp;Right-of-use assets | (9) | 35907761 | 35214706 | 4946580 |
| &nbsp;&nbsp;Deferred income tax assets |  |  | 1581981 | 222220 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** |  | **456927265** | **462532211** | **64971515** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |  |
| ***Current liabilities:*** |  |  |  |  |
| &nbsp;&nbsp;Accrued expenses and other payables (including accrued expenses and other payables of the consolidated VIE without recourse to the Company of RMB117,920 and RMB69,988 as of December 31, 2024 and September 30, 2025, respectively) | (11) | 56372960 | 45416644 | 6379639 |
| &nbsp;&nbsp;Short-term loan |  |  | 32063829 | 4503979 |
| &nbsp;&nbsp;Lease liabilities-current | (9) | 18085643 | 16238233 | 2280971 |
| &nbsp;&nbsp;Deferred revenues | (12) | 280036806 | 292413743 | 41075115 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** |  | **354495409** | **386132449** | **54239704** |
| &nbsp;&nbsp;Lease liabilities-non-current | (9) | 17120842 | 17579017 | 2469310 |
| &nbsp;&nbsp;Deferred income tax liabilities | (13) | 5664822 |  |  |
| &nbsp;&nbsp;Other non-current assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** |  | **377281073** | **403711466** | **56709014** |
| ***Shareholders' equity:*** |  |  |  |  |
| Common shares: |  |  |  |  |
| &nbsp;&nbsp;Par value USD 0.01, authorized: 500,000,000 shares |  |  |  |  |
| &nbsp;&nbsp;Issued: 64,581,140 and 64,505,252 shares as of December 31, 2024 and September 30, 2025, respectively |  |  |  |  |
| &nbsp;&nbsp;Outstanding: 63,249,096 and 63,509,024 shares as of December 31, 2024 and September 30, 2025, respectively |  | 4755623 | 4764603 | 669280 |
| Treasury shares—585,358 common shares as of December 31, 2024 and September 30, 2025, at cost |  | (8201046) | (8201046) | (1151994) |
| Additional paid-in capital |  | 547915003 | 548711589 | 77077060 |
| Accumulated other comprehensive loss |  | (36952183) | (36839527) | (5174818) |
| Accumulated deficit |  | (427806949) | (449550590) | (63147997) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity attributable to ATA Creativity Global** |  | **79710448** | **58885029** | **8271531** |
| Non-controlling interests |  | (64256) | (64284) | (9030) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity** |  | **79646192** | **58820745** | **8262501** |
| Commitments and contingencies | (19) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** |  | **456927265** | **462532211** | **64971515** |

---

See accompanying notes to consolidated financial statements.

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

---

| | | | |
|:---|:---|:---|:---|
|  | **Nine-month Period Ended** | **Nine-month Period Ended** | **Nine-month Period Ended** |
|  | **September 30,**<br>**2024** | **September 30,**<br>**2025** | **September 30,**<br>**2025** |
|  | **RMB** | **RMB** | **USD** |
| Net revenues | 167144553 | 178985729 | 25141976 |
| Cost of revenues | 89543642 | 98916478 | 13894715 |
| &nbsp;&nbsp;**Gross profit** | **77600911** | **80069251** | **11247261** |
| ***Operating expenses:*** |  |  |  |
| Research and development | 2924091 | 2359214 | 331397 |
| Sales and marketing | 72387180 | 62573843 | 8789696 |
| General and administrative | 62414642 | 60131363 | 8446602 |
| Provision for loan receivable and other receivables |  | (3781662) | (531207) |
| &nbsp;&nbsp;**Total operating expenses** | **137725913** | **121282758** | **17036488** |
| Other operating income, net | 86586 | 118602 | 16660 |
| &nbsp;&nbsp;**Loss from operations** | **(60038416)** | **(41094905)** | **(5772567)** |
| **Other income (expense):** |  |  |  |
| Gain on disposal of PPE | 17699.00 |  |  |
| Investments income |  | 11932630 | 1676167 |
| Interest income, net of interest expenses | 867865 | 189473 | 26615 |
| Foreign currency exchange losses, net | (7668) | (17670) | (2482) |
| Loss before income taxes | (59160520) | (28990472) | (4072267) |
| &nbsp;&nbsp;**Income tax benefit** | **(9823637)** | **(7246803)** | **(1017952)** |
| &nbsp;&nbsp;**Net loss** | **(49336883)** | **(21743669)** | **(3054315)** |
| Net loss attributable to non-controlling interests | (72) | (28) | (4) |
| **Net loss attributable to ACG** | **(49336811)** | **(21743641)** | **(3054311)** |
| **Other comprehensive income (loss):** |  |  |  |
| Foreign currency translation adjustment, net of nil income taxes | (61945) | 112656 | 15825 |
| **Comprehensive loss attributable to ACG** | **(49398756)** | **(21630985)** | **(3038486)** |
| Basic and diluted losses per common share attributable to ACG | (0.78) | (0.34) | (0.05) |
| Basic and diluted losses per ADS attributable to ACG | (1.56) | (0.68) | (0.1) |

---

See accompanying notes to consolidated financial statements.

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common shares** | **Common shares** | | | | | | | |
|  | **Number of**<br>**Outstanding**<br>**shares** | <br>**Amount** | <br>**Treasury**<br>**Shares** | <br>**Additional**<br>**paid-in**<br>**capital** | <br>**Accumulated**<br>**other**<br>**comprehensive**<br>**loss** | <br>**Accumulated**<br>**deficit** | **Total**<br>**shareholders'**<br>**equity attributable**<br>**to ATA Creativity**<br>**Global** | <br>**Non-controlling**<br>**interests** | <br>**Total**<br>**shareholders'**<br>**equity** |
|  |  | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** | **RMB** |
| **Balance as of December 31, 2023** | **62893960** | **4730128** | **(8201046)** | **545222465** | **(37004507)** | **(391709172)** | **113037868** | **(64161)** | **112973707** |
| Net loss |  |  |  |  |  | (49336811) | (49336811) | (72) | (49336883) |
| Foreign currency translation adjustment, net of nil income tax |  |  |  |  | (61945) |  | (61945) |  | (61945) |
| Share-based compensation |  |  |  | 2653050 |  |  | 2653050 |  | 2653050 |
| Payments of individual income tax in connection with shares directly withheld from employees | 53788 | 3833 |  | (10065) |  |  | (6232) |  | (6232) |
| Cash collected upon exercise of share options |  |  |  |  |  |  |  |  |  |
| Acquisition of non-redeemable non-controlling interests |  |  |  |  |  |  |  |  |  |
| Disposal of subsidiaries |  |  |  |  |  |  |  |  |  |
| Settlement of vested share options and vested shares using treasury shares |  |  |  |  |  |  |  |  |  |
| **Balance as of September 30, 2024** | **62947748** | **4733961** | **(8201046)** | **547865450** | **(37066452)** | **(441045983)** | **66285930** | **(64234)** | **66221696** |
| **Balance as of September 30, 2024-USD** | **—** | **674584** | **(1168640)** | **78070202** | **(5281927)** | **(62848550)** | **9445669** | **(9153)** | **9436516** |
| **Balance as of December 31, 2024** | **63249096** | **4755623** | **(8201046)** | **547915003** | **(36952183)** | **(427806949)** | **79710448** | **(64256)** | **79646192** |
| Net loss |  |  |  |  |  | (21743641) | (21743641) | (28) | (21743669) |
| Foreign currency translation adjustment, net of nil income tax |  |  |  |  | 112656 |  | 112656 |  | 112656 |
| Share-based compensation |  |  |  | 466276 |  |  | 466276 |  | 466276 |
| Issuance of common shares with net-settlement of employee individual income tax | 259928 | 8980 |  | (36383) |  |  | (27403) |  | (27403) |
| Exercise of share options |  |  |  | 366693 |  |  | 366693 |  | 366693 |
| Acquisition of non-redeemable non-controlling interests |  |  |  |  |  |  |  |  |  |
| Settlement of vested share options and vested shares using treasury shares |  |  |  |  |  |  |  |  |  |
| **Balance as of September 30, 2025** | **63509024** | **4764603** | **(8201046)** | **548711589** | **(36839527)** | **(449550590)** | **58885029** | **(64284)** | **58820745** |
| **Balance as of September 30, 2025-USD** |  | **669280** | **(1151994)** | **77077060** | **(5174818)** | **(63147997)** | **8271531** | **(9030)** | **8262501** |

---

See accompanying notes to consolidated financial statements.

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | | |
|:---|:---|:---|:---|
|  | **Nine-month period September 30,** | **Nine-month period September 30,** | **Nine-month period September 30,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **USD** |
| **Cash flows from operating activities:** |  |  |  |
| Net loss | (49336883) | (21743669) | (3054315) |
| *Adjustments to reconcile net loss to net cash used in operating activities:* |  |  |  |
| Gain from disposal of long-term investments  |  | (11932630) | (1676167) |
| Depreciation & amortization | 17786367 | 18953220 | 2662343 |
| Loss (gain) from disposal of property and equipment | (51177) | 75817 | 10650 |
| Share based compensation | 769733 | 466276 | 65497 |
| Deferred income tax expense (benefit) | (9823637) | (7246803) | (1017952) |
| Foreign currency exchange loss (gain) | 1 | 501 | 70 |
| Accounts receivable | 1086428 | 2414469 | 339158 |
| *Prepaid expenses and other current assets* | (12406932) | (1974656) | (277378) |
| Other non-current assets | (2650849) | 549267 | 77155 |
| Accrued expenses and other payables | 2075530 | (11709906) | (1644881) |
| Deferred revenues | 48346006 | 12376937 | 1738578 |
| Loss (gain) on deconsolidation of subsidiaries and others, net | 438153 |  |  |
| **Net cash used in operating activities** | **(3767260)** | **(19771177)** | **(2777242)** |
| **Cash flows from investing activities:** |  |  |  |
| **Cash paid for property and equipment** | (18581054) | (2408489) | (338318) |
| Cash receipt from property and equipment disposal | 44970 | 15052 | 2114 |
| Proceeds from disposal of affiliates and partial business | (89543) | 49932630 | 7013995 |
| Cash paid for liabilities assumed in relation to acquisition of Youru | (198333) |  |  |
| Net cash (used in) provided by investing activities | (18823960) | 47539193 | 6677791 |
| Cash flows from financing activities: |  |  |  |
| Cash paid for employee individual income tax for net-settlement of vested shares | **(6232)** | **(27403)** | **(3849)** |
| **Cash received from short-term loan**  | **—** | **32063829** | **4503979** |
| **Cash received for exercise of share options** |  | 366693 | 51509 |
| Cash paid for repurchase of common shares | 1883317 |  |  |
| Net cash provided by (used in) financing activities | **1877085** | **32403119** | **4551639** |
| **Effect of foreign exchange rate changes on cash and cash equivalents** | (61969) | 112132 | 15751 |
| Net increase (decrease) in cash and cash equivalents | **(20776105)** | **60283266** | **8467940** |
| **Cash and cash equivalents at beginning of year** | **60167232** | **36523995** | **5130495** |
| **Cash and cash equivalents at end of year** | **39391127** | **96807261** | **13598435** |
| *Supplemental disclosures of cash flow information:* |  |  |  |
| Cash paid for income tax |  |  |  |
| Cash refunded for income tax | (4) |  |  |
| *Non-cash investing and financing activities:* |  |  |  |
| Disposal of net liabilities of subsidiaries, excluding cash | (348610) |  |  |
| Lease liability arising from obtaining Right-of-use assets | 27278207 | 24471216 | 3437451 |

---

See accompanying notes to consolidated financial statements.

Notes to the Consolidated Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;**(1)** **DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS** 

*Description of Business and Organization* 

ATA Creativity Global (the "Company" or "ACG", formerly known as ATA Inc.), through its subsidiaries, variable interest entity ("VIE") and VIE's subsidiary (collectively referred to as the "Group"), offers a range of educational services consisting primarily of portfolio training service, research-based learning service, overseas study counselling service and other educational services primarily to individual students in person or online mainly through its training centers in the People's Republic of China.

*VIE Agreements*

PRC regulations prohibit direct foreign ownership of business entities that engage in internet content provision ("ICP'') services in the PRC. The Company and its subsidiaries are foreign owned business entities under the PRC law and accordingly are restricted from providing ICP services in the PRC, including having more than 50% ownership of entities engaged in providing such services. ATA Intelligent Learning (Beijing) Technology Limited ("ATA Intelligent Learning" or "VIE") is engaged to provide, but not limited to, ICP services, such as providing online trainings and platforms in PRC. The Company has no legal ownership interest in ATA Intelligent Learning. The legal ownership interests of ATA Intelligent Learning are 90% owned by Mr. Xiaofeng Ma, the chairman of the board and chief executive officer of the Company, and 10% owned by Mr. Haichang Xiong, general counsel of the Company prior to August 12, 2020 and by Mr. Jun Zhang, president and director of the Company effective from August 12, 2020. Mr. Ma, Mr. Xiong and Mr. Zhang are PRC citizens. All individuals are nominee shareholders of ATA Intelligent Learning and holding their equity interests on behalf of the Company. Through a series of contractual agreements, including loan agreements, a call option and cooperation agreement, an equity interest pledge agreement, an exclusive technical consulting and services agreement and a power of attorney (collectively, the "VIE Agreements") among ATA Education Technology (Beijing) Limited ("ATA Education"), ATA Intelligent Learning, and their nominee shareholders, the nominee shareholders of ATA Intelligent Learning have granted all their legal rights including voting rights and disposition rights of their equity interests in ATA Intelligent Learning to ATA Education. The nominee shareholders of ATA Intelligent Learning do not participate significantly in income and loss and do not have the power to direct the activities of ATA Intelligent Learning that most significantly impact its economic performance. Accordingly, ATA Intelligent Learning is considered a variable interest entity. The Company entered into the VIE Agreements to preserve the flexibility to operate, invest in or hold businesses that are restricted from receiving foreign investments.

Although the Company does not have an equity investment in ATA Intelligent Learning, the Company has other variable interests in ATA Intelligent Learning through its wholly-owned subsidiary, ATA Education, including (i) ATA Education's subordinated loans to Mr. Xiaofeng Ma, Mr. Haichang Xiong and Mr. Jun Zhang (used by them to finance their equity investment in ATA Intelligent Learning) and other subordinated loans to ATA Intelligent Learning, (ii) ATA Education's right, under the loan agreement, to receive all the dividends declared by ATA Intelligent Learning through its nominee shareholders, (iii) ATA Education's exclusive purchase option, under the call option and cooperation agreement, to acquire (or to have ATA Education's designee acquire) 100% of the equity interest or assets in ATA Intelligent Learning for a consideration equal to the loans provided by ATA Education to Mr. Xiaofeng Ma, Mr. Haichang Xiong and Mr. Jun Zhang, to the extent permitted under PRC law and (iv) ATA Education, under the call option and cooperation agreement, is obligated to provide financial support to ATA Intelligent Learning's operation to which ATA Education has no recourse right if ATA Intelligent Learning cannot repay such financing due to its losses.

In accordance with Accounting Standards Codification ("ASC") 810-10-25-38A, the Company has a controlling financial interest in ATA Intelligent Learning through its wholly-owned subsidiary, ATA Education, because the Company (i) has the power to direct activities of ATA Intelligent Learning that most significantly impact the economic performance of ATA Intelligent Learning; and (ii) the obligation to absorb the losses and the right to receive benefits of ATA Intelligent Learning that could potentially be significant to ATA Intelligent Learning. Thus, the Company is the primary beneficiary of ATA Intelligent Learning.

Accordingly, the financial statements of ATA Intelligent Learning are consolidated in the Company's consolidated financial statements. Under the terms of the VIE Agreements, ATA Intelligent Learning's nominee shareholders have no rights to the net assets nor have the obligations to fund the deficit, and such rights and obligations have been vested to the Company. All of the equity (net assets) and net incomes or losses of ATA Intelligent Learning are attributed to the Company.

The key terms of these VIE Agreements are as follows:

Loan agreements: ATA Education lent to ATA Intelligent Learning's nominee shareholders, Mr. Xiaofeng Ma and Mr. Haichang Xiong, interest free loans in the amount of RMB 10.0 million, out of which RMB 1.0 million and RMB 9.0 million were stipulated to lend on March 15, 2018 and December 28, 2018, respectively, for the sole purpose of investing in ATA Intelligent Learning as ATA Intelligent Learning's registered capital. The nominee shareholders of ATA Intelligent Learning can only repay the loans by transferring all of their legal ownership interest in ATA Intelligent Learning to ATA Education or to a party designated by ATA Education. The nominee shareholders of ATA Intelligent Learning are required to pay to ATA Education all dividends received from ATA Intelligent Learning. In the event that the nominee shareholders of ATA Intelligent Learning transfer their equity interests to the ATA Education or its designee at a price equivalent to or less than the principal amount of the loans, the loans will be interest free. If the price is higher than the principal amount of the loan, the excess amount will be paid to ATA Education as loan interest. The initial terms of the loans are ten years, which may be extended upon the written agreement of ATA Education and ATA Intelligent Learning's nominee shareholders. The approval of ATA Intelligent Learning is not required for the renewal of the loan agreements nor can ATA Intelligent Learning terminate the loan agreement during the contract term. On March 19, 2019 and April 20, 2019, ATA Education, ATA Intelligent Learning and each of the nominee equity shareholders of ATA Intelligent Learning entered into two supplementary agreements to the VIE agreements, pursuant to which the aggregate amount of loans made by ATA Education to the nominee shareholders of ATA Intelligent Learning for the capitalization of ATA Intelligent Learning was increased from RMB 10.0 million to RMB 50.0 million with all other terms and conditions under the VIE Agreements remain unchanged. According to the supplementary agreements, ATA Education lent additional RMB 40.0 million to the nominee shareholders in 2019 for the sole purpose of investing in ATA Intelligent Learning as ATA Intelligent Learning's registered capital. On August 12, 2020, the loan agreement entered by Mr. Haichang Xiong with ATA Education, and the rights and obligations of Mr. Haichang Xiong under the two supplementary agreements terminated as a result of the equity interest in ATA Intelligent Learning transferred by Mr. Haichang Xiong to Mr. Jun Zhang, and Mr. Haichang Xiong repaid his borrowing of RMB 5.0 million under such agreements to ATA Education on August 17, 2020. On August 12, 2020, Mr. Jun Zhang, as the new shareholder of ATA Intelligent Learning, entered into a new loan agreement with ATA Education on the same terms as the loan agreement and the two supplementary agreements previously entered by Mr. Haichang Xiong and borrowed RMB 5.0 million from ATA Education on August 17, 2020 pursuant to aforementioned loan agreement.

Call option and cooperation agreement: Pursuant to the call option and cooperation agreement entered into among ATA Education, ATA Intelligent Learning and its nominee shareholders, when permitted by applicable laws, ATA Education (or any eligible party designated by ATA Education) shall have the right to acquire, at any time, all of ATA Intelligent Learning's assets or its share equity owned by the nominee shareholders of ATA Intelligent Learning, at a price equal to the sum of the principal amounts of the loans from ATA Education to the nominee shareholders of ATA Intelligent Learning. If ATA Education elects to purchase a portion of ATA Intelligent Learning's share equity or assets, the exercise price for such purpose shall be adjusted accordingly based on the percentage of such share equity or assets to be purchased relative to the total share equity or assets. Without the prior written consent of ATA Education, ATA Intelligent Learning may not sell or otherwise dispose its assets or beneficial interests, create or allow any encumbrance on its assets or other beneficial interests, enter into any material contracts (except those contracts entered into in the ordinary course of business), or distribute dividends to the nominee shareholders. ATA Education is also obligated to provide financial support to ATA Intelligent Learning's operation to which ATA Education has no recourse right if ATA Intelligent Learning cannot repay such financing due to its losses. This agreement shall be effective upon the execution date and remain effective thereafter. This agreement can only be terminated with the unanimous consent of all parties, except that ATA Education may terminate this agreement with 30 days prior notice to the other parties.

Equity interest pledge agreement: To secure the payment obligations of ATA Intelligent Learning, ATA Intelligent Learning's nominee shareholders have pledged to ATA Education their entire equity ownership interests in ATA Intelligent Learning to guarantee his and ATA Intelligent Learning's performance of obligations under, where applicable, the exclusive technical consulting and services agreement and the call option and cooperation agreement. If ATA Intelligent Learning or the nominee shareholders of ATA Intelligent Learning breach their contractual obligations under these agreements, ATA Education, as pledgee, will have the right to acquire the pledged equity interests. The nominee shareholders of ATA Intelligent Learning agree that, during the term of the equity interest pledge agreements, they will not dispose the pledged equity interests or create or allow any encumbrance on the pledged equity interests, and they also agree that ATA Education's rights relating to the equity pledge shall not be suspended or hampered by the nominee shareholders, their successors or their designates. During the term of the equity interest pledge agreements, ATA Education has the right to receive all of the dividends and profits distributed on the pledged equity. The term of the equity interest pledge agreement shall commence on March 15, 2018 and shall expire on the earlier of (a) the date on which all outstanding secured obligations are paid in full or otherwise satisfied (as applicable); (b) ATA Education enforces the equity interest pledge agreement pursuant to the terms and conditions, to satisfy its rights under the secured obligations and pledged collateral in full, or (c) the nominee shareholders of ATA Intelligent Learning complete their transfer of the equity interest to another party (individual or legal entity) pursuant to the Call Option and Cooperation Agreement and no longer holds any equity interest in ATA Intelligent Learning. ATA Intelligent Learning has registered these equity interest pledge agreements with the competent State Administration for Market Regulation (SAMR, previously known as State Administration for Industry and Commerce, or SAIC) on April 27, 2018. The registration of the equity pledge enables ATA Education to enforce the equity pledge against third parties who acquire the equity interests of ATA Intelligent Learning in good faith. According to the equity transfer agreement entered into by Mr. Haichang Xiong and Mr. Jun Zhang, on August 12, 2020, Mr. Haichang Xiong transferred all his equity interest in ATA Intelligent Learning to Mr. Jun Zhang, as well as his obligations and rights under the equity interest pledge agreement entered into by himself. On the same day, Mr. Jun Zhang, as the new shareholder of ATA Intelligent Learning, entered into a new equity interest pledge agreement with ATA Education and ATA Intelligent Learning on the same terms as the equity pledge agreement previously entered by Mr. Haichang Xiong. The term of the equity interest pledge agreements entered by Mr. Jun Zhang shall commence on the date of August 12, 2020 and shall expire on the earlier of the Expiration Conditions. ATA Intelligent Learning has registered the equity interest pledge agreement entered by Mr. Jun Zhang with SAMR, on February 26, 2021.

Power of attorney: Pursuant to the irrevocable powers of attorney, each of the nominee shareholders of ATA Intelligent Learning, who signed the power of attorney on March 15, 2018, appointed ATA Education or any eligible person designated by ATA Education as his attorney-in-fact to exercise all voting rights and other nominee shareholders rights of ATA Intelligent Learning, including but not limited to appointing or electing on their directors and executive officers. The person designated by ATA Education is entitled to sign the transfer documents necessary for the fulfilment of the exclusive technical consulting and services agreement and the call option and cooperation agreement, and to join the liquidation group and participate in the liquidation of ATA Intelligent Learning. The term of the powers of attorney shall be consistent with the term of the equity interest pledge agreements and call option and cooperation agreement and shall be extended along with the equity interest pledge agreements and call option and cooperation agreement.

The Company relies on the VIE Agreements to operate and control ATA Intelligent Learning. However, these contractual arrangements may not be as effective as direct equity ownership in providing the Company with control over ATA Intelligent Learning. Any failure by ATA Intelligent Learning or its nominee shareholders to perform their obligations under the VIE Agreements would have a material adverse effect on the financial position and financial performance of the Company. All the VIE Agreements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal system in the PRC is not as developed as some other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit the Company's ability to enforce these contractual arrangements. In addition, if the legal structure and the VIE Agreements were found to be in violation of any existing or future PRC laws and regulations, the Company may be subject to fines or other legal or administrative sanctions.

In the opinion of management, based on the legal opinion of Jincheng Tongda & Neal Law Firm, the Company's PRC legal counsel, the above contractual arrangements are legally binding and enforceable and do not violate current PRC laws and regulations. However, there are uncertainties regarding the interpretation and application of existing and future PRC laws and regulations. The Company cannot assure that the PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the current ownership structure of the Company and the contractual arrangements with ATA Intelligent Learning are found to be in violation of any existing or future PRC laws and regulations, the PRC government could:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●revoke the Company's business and operating licenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●levy fines on the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●confiscate any of the Company's income that they deem to be obtained through illegal operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●shut down a portion or all of the Company's servers or block a portion or all of the Company's website;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●discontinue or restrict the Company's operations in PRC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●impose conditions or requirements with which the Company may not be able to comply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●require the Company to restructure its corporate and contractual structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●take other regulatory or enforcement actions that could be harmful to the Company's business.

If the imposition of any of these government actions, or any inability to enforce the contractual arrangements upon a breach, causes the Company to lose its ability to direct the activities of ATA Intelligent Learning or receive substantially all the economic benefits and residual returns from ATA Intelligent Learning and the Company is not able to restructure its ownership structure and operations in a satisfactory manner, the Company would no longer be able to consolidate the financial results of ATA Intelligent Learning in the Company's consolidated financial statements. Total assets, total liabilities, equity, revenues, net income and cash flows of the Company would be significantly less than the reported amount in the consolidated financial statements of the Company. In the opinion of management, the likelihood of deconsolidation of ATA Intelligent Learning is remote based on current facts and circumstances.

The equity interests of ATA Intelligent Learning are legally held by Mr. Ma, Mr. Xiong and Mr. Zhang as nominee shareholders on behalf of ACG. Mr. Ma is chairman of the board and director of ACG, Mr. Xiong was general counsel of ACG and Mr. Zhang is president and director of ACG. Mr. Ma holds approximately 40% of the total ordinary shares of the Company issued and outstanding as of September 30, 2024 and 2025. The Company cannot assure that when conflicts of interest arise, either the nominee shareholders will act in the best interests of the Company or such conflicts will be resolved in the Company's favour. Currently, the Company does not have any arrangements to address potential conflicts of interest between the nominee shareholders and the Company, except that ATA Education could exercise the purchase option under the exclusive option agreement with the nominee shareholders to request them to transfer all of their equity ownership in ATA Intelligent Learning to a PRC entity or individual designated by ATA Education. The Company relies on the nominee shareholders, who are ACG's director and general counsel, who owe fiduciary duties to ACG, to comply with the terms and conditions of the contractual arrangements. Such fiduciary duty requires the nominee shareholders to act in good faith and in the best interests of ACG and not to use their positions for personal gains. If the Company cannot resolve any conflict of interest or dispute between the Company and the nominee shareholders of ATA Intelligent Learning, the Company would have to rely on legal proceedings, which could result in disruption of the Company's business and subject the Company to substantial uncertainty as to the outcome of any such legal proceedings.

The nominee shareholder of ATA Intelligent Learning was changed from Mr. Haichang Xiong to Mr. Jun Zhang on August 12, 2020. There are no substantive changes on terms of the VIE agreements.

ATA Intelligent Learning holds 70% equity interests of Beijing Zhenwu Technology Development Co., Ltd., or Beijing Zhenwu, a PRC company newly established in August 2021. Beijing Zhenwu was mainly engaged in conducting some of the Group's short-term project-based art learning services and terminated its business since early 2022.

The Company's involvement with ATA Intelligent Learning and its subsidiary, or the consolidated VIE, under the VIE Agreements affected the Company's consolidated financial position, results of operations and cash flows as presented below.

The following assets and liabilities information of the Group's consolidated VIE as of December 31, 2024 and September 30, 2025 and net revenues, net loss and cash flows for the nine months ended September 30, 2024 and 2025, were included in the accompanying consolidated financial statements of the Company.

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| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **September 30,**<br>**2025** |
|  | **RMB** | **RMB** |
| Cash | 360788 | 392676 |
| Prepaid expenses and other current assets |  |  |
| &nbsp;&nbsp;**Total current assets** | **360788** | **392676** |
| Long-term investments (i) | 42537827 | 32958456 |
| Other non-current assets | 10000 | 10000 |
| &nbsp;&nbsp;**Total assets** | **42908615** | **33361132** |
| Accrued expenses and other payables | 117920 | 69988 |
| Amounts due to related parties (ii) | 66217253 | 67417253 |
| &nbsp;&nbsp;**Total current liabilities** | **66335173** | **67487241** |
| &nbsp;&nbsp;**Total liabilities** | **66335173** | **67487241** |

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| | | |
|:---|:---|:---|
|  | **Nine-month period September 30,** | **Nine-month period September 30,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Net revenues | 4236 |  |
| Net loss | (12711699) | (10699551) |

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| | | |
|:---|:---|:---|
|  | **Nine-month period September 30,** | **Nine-month period September 30,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Net cash used in operating activities | (1145142) | (1168112) |
| Net cash used in investing activities |  |  |
| Net cash provided by financing activities (iii) | 1200000 | 1200000 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Long-term investments as of December 31, 2024 and September 30, 2025 include investment cost and share of losses derived from the 30.96 % equity interests investment in Beijing Huanqiuyimeng Education Consultation Corp. ("Huanqiuyimeng") in the amount of RMB 42,537,827 and RMB32,958,456, respectively, which is eliminated on consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Amounts due to related parties represent the amounts due to the Company's subsidiaries, which are eliminated on consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) RMB1,200,000 of net cash provided by financing activities for Nine-month period ended September 30, 2024 and 2025 respectively were related to the transactions with the Company's subsidiaries, which are eliminated on consolidation.

In accordance with the VIE Agreements, the Company has the power to direct the activities of the consolidated VIE and can have assets transferred out of the consolidated VIE. Therefore, the Company considers that there are no assets in the consolidated VIE that can be used only to settle obligations of the consolidated VIE, except for the registered capital amounting RMB 50.0 million as of September 30, 2025. None of the assets of the consolidated VIE has been pledged or collateralized. The creditors of the consolidated VIE do not have recourse to the general credit of ATA Education or the Company.

*Significant Concentrations and Risks*

The Group is subject to the following significant concentration and risks:

*Concentration of cash and cash equivalents balances held at financial institutions*

Cash and cash equivalents consist of cash on hand and cash at bank. Cash at bank are deposited in financial institutions at below locations:

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| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **September 30,**<br>**2025** |
|  | **RMB** | **RMB** |
| Financial institutions in the mainland of the PRC |  |  |
| &nbsp;&nbsp;— Denominated in Renminbi ("RMB") | 27548189 | 40300890 |
| &nbsp;&nbsp;— Denominated in U.S. Dollar ("USD") | 150 | 157 |
| &nbsp;&nbsp;**Total cash balances held at mainland PRC financial institutions** | **27548339** | **40301047** |
| Financial institutions in Hong Kong Special Administrative Region ("HKSAR") of the PRC |  |  |
| &nbsp;&nbsp;— Denominated in Hong Kong Dollar ("HKD") | 581 | 355 |
| &nbsp;&nbsp;— Denominated in USD | 8975075 | 56246401 |
| &nbsp;&nbsp;— Denominated in GBP |  | 259458 |
| &nbsp;&nbsp;**Total cash and cash equivalents balances held at HKSAR financial institutions** | **8975656** | **56506214** |
| &nbsp;&nbsp;**Total cash and cash equivalents balances held at financial institutions** | **36523995** | **96807261** |

---

The bank deposits with financial institutions in the PRC are insured by the government authority up to RMB500,000. The bank deposits with financial institutions in the HKSAR are insured by the government authority up to HKD500,000. To limit exposure to credit risk, the Company primarily places bank deposits with large financial institutions in the PRC and HKSAR with acceptable credit rating.

*Geographic concentration*

A substantial portion of the Company's net revenues were generated from educational services in China. The regulatory regime for educational services industry in China continues to rapidly evolve and the relevant laws, regulations or interpretations may change in the future. Any changes that adversely affect the Company's business in China will have a material adverse effect on the Company's financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;**(2)** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

(a)***Principles of consolidation***

The consolidated financial statements include the financial statements of the Company and its subsidiaries, in which ACG, directly or indirectly, has a controlling financial interest and its variable interest entity and its subsidiary, or the consolidated VIE for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. The results of subsidiaries acquired or disposed of are recorded in the consolidated income statements from the effective date of acquisition or up to the effective date of disposal, as appropriate.

A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meetings of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders.

Non-redeemable non-controlling interests are separately presented as a component of equity in the consolidated financial statements.

(b)***Basis of presentation***

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(c)***Use of estimates***

The preparation of financial statements in conformity with U.S. GAAP requires management of the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include the fair value determinations of identifiable assets acquired and liabilities assumed, the fair values of share-based payments and other equity investments, the collectability of loan receivable and other receivables, the realizability of deferred income tax assets, the estimate for useful lives and residual values of long-lived assets, the recoverability of long-lived assets, goodwill and long-term investments, determination of estimated stand-alone selling prices of performance obligations, variable consideration and measurement of progress towards completion in revenue recognition. Actual results could differ from those estimates. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions.

&nbsp;&nbsp;&nbsp;&nbsp;***(d)***  ***Foreign currency*** 

The accompanying consolidated financial statements have been expressed in RMB, the Company's reporting currency.

The Company, ATA Testing Authority (Holdings) Limited ("ATA BVI"), ATA Creativity Global (Hong Kong) Limited ("ACG HK") (formerly known as Xing Wei Institute (Hong Kong) Limited ("Xing Wei") and ACG International Group Limited ("ACGIGL")'s functional currency is USD. The functional currency of the Company's PRC subsidiaries, VIE and VIE's subsidiary is RMB.

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting foreign exchange gains and losses are included in the consolidated statements of comprehensive income (loss) in the line item "*Foreign currency exchange gains (losses), net*."

Assets and liabilities of the Company, ATA BVI, ACG HK and ACGIGL are translated into RMB using the applicable exchange rate at each balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the year. Equity accounts other than retained earnings (accumulated deficit) generated in the current period are translated into RMB using the appropriate historical rates. The resulting foreign currency translation adjustments are recognized as a separate component of accumulated other comprehensive income (loss) within equity. Since RMB is not a fully convertible currency, all foreign exchange transactions involving RMB must take place either through the People's Bank of China (the "PBOC") or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC.

For the convenience of the readers, the 2025 Q3 RMB amounts included in the accompanying consolidated financial statements have been translated into USD at the rate of USD 1.00 = RMB 7.1190, the noon buying rate in New York cable transfers of RMB per USD as set forth in the H.10 weekly statistical release of Federal Reserve Board, as of September 30, 2025. No representation is made that the RMB amounts could have been, or could be, converted into USD at that rate or at any other rate on September 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;***(e)***  ***Commitments and contingencies*** 

In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed.

(f)***Fair value measurements***

The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in an orderly transaction and principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

● Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

● Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.

The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects management's own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by management based on the best information available in the circumstances.

(g)***Revenue recognition***

The Group's revenue is primarily generated from portfolio training services, research-based learning services, overseas study counselling services and other educational services through its training centers in China. Revenue is recognized net of Value Added Tax ("VAT"). VAT collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until paid to the tax authorities.

The Group recognizes revenues upon the satisfaction of its performance obligation (upon transfer of control of promised goods or services to customers) in an amount that reflects the consideration to which the Group expects to be entitled to in exchange for those goods or services, excluding amounts collected on behalf of third parties (for example, value added taxes).

The transaction price includes variable consideration where the Company's performance may result in full or partial return of the service fees based on the final outcome of the performance targets. The Company estimates the transaction price at contract inception based on expected value method, which the Company believes to be better predict with the amount of consideration to which it will be entitled in the contract. In making the estimate of variable consideration, the Company applies judgments which are inherently subjective. This includes the assessment of the final outcome of the performance targets and its historical experience and performance. The amount of estimated variable consideration included in the transaction price is limited only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable condition is subsequently resolved. Management reviews these estimates on a regular basis. Any changes in these factors which affect the estimated variable consideration and revenue recognized are applied prospectively.

For each performance obligation satisfied over time, the Group recognizes revenue over time by measuring the progress toward complete satisfaction of that performance obligation. If the Group does not satisfy a performance obligation over time, the performance obligation is satisfied at a point in time.

The Group's contracts with customers also include promises to transfer multiple services. For these contracts, the Group accounts for individual performance obligations separately if they are capable of being distinct and distinct within the context of the contract. Determining whether products and services are distinct performance obligations may require significant judgment. Judgment is also required to determine the stand-alone selling price ("SSP") for each distinct performance obligation. In instances where SSP is not directly observable, such as when the Group does not sell the product or service separately, the Group determines the SSP using information that may include market conditions and other observable inputs. For these contracts with variable consideration, the Group determines that variable consideration is allocated according to the method as described above, because variable consideration is attributable to all of the performance obligations in a contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Portfolio training services

Portfolio training services primarily consist of one-on-one or small-group training at the training centers or online platform in which the teachers provide guidance to students to practice observational drawing or other forms of art work and finally compile the selected pieces to form a portfolio.

Individual students select to enroll either in time-based program in which they can take a pre-determined number of hours of training or in a project-based program in which they are guided to complete a portfolio that usually consists of three to five art projects. Revenue is recognized over a period of time based on the number of training hours expended and total hours of training under the contract with the student since the individual student simultaneously receives and consumes the benefits of the portfolio training services as the Group performs. Under project-based programs, the number of hours of training required to complete a project is not pre-determined and varies depending on the background and requirements of individual student. The Group reassesses the total hours of training pursuant to each contract of project-based program with individual student on a quarterly basis. Any adjustments arising from the changes of estimated training hours are applied prospectively.

ii) Research-based learning services (formerly known as the educational travel services)

The Group provides educational travel services for individual students to bring them art-related experience by providing integration of both travel and study activities in each educational service contract according to the background of individual students. In 2020, the Group introduced new services under the "research-based learning services", which mainly consist of domestic educational travel services, academic educational learning services, workshop experience services and transferrable credit courses. Revenue is recognized when control of the promised services is transferred to customers in an amount of consideration which the Group expects to be entitled to in exchange for those services.

iii) Overseas study counselling services

The Group provides overseas study counselling services to students who intend to study abroad on the following aspects, including but not limited to, customized timetable for applicants, university and program selection, developing paperwork for applications, interview simulation and enrollment documents preparation.

The Group provides integration and customization of the promised services in each overseas study counselling service contract depending on the background and requirements of the students and aims to deliver a combined output for counselling service to cover both academic and practical aspects during the entire process of application. The promised services are highly interdependent and interrelated and are accounted as one performance obligation, as the promised services in a contract are not distinct within the context of the contract. Since the students simultaneously receive and consume the benefits of these services throughout the service period as the Group performs, the Group recognizes revenue over the counselling service period on the basis of costs incurred to-date to the total estimated costs.

iv) Other educational services

Other educational services mainly consist of language training services, junior art education services and in-school classes The Group recognizes revenues from the other educational services proportionately when the services are delivered.

&nbsp;&nbsp;&nbsp;&nbsp;***(h)***  ***Contract cost*** 

Sales commissions to sales personnel and third-party agents, and incentives to existing students for referred customers are accounted for as incremental cost of obtaining sales contracts from customers and are initially recognized as an amortizable asset in other non-current assets. Contract cost assets are amortized on the basis consistent with the pattern of the transfer of services to which the assets relate and are included in "sales and marketing expenses" in the consolidated statements of comprehensive income (loss). The amortization expenses of contract cost assets were RMB 18,085,480 and RMB 19,466,548, for the periods ended September 30, 2024 and 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;***(i)***  ***Cost of revenues*** 

Cost of revenues primarily consist of (1) teaching fees, payroll compensation for teaching support and administrative staff from the training centers, performance-linked bonuses paid to teachers, rental payments for training centers, as well as costs of course materials and teaching aids for portfolio training services, (2) payroll compensation, outsourcing service costs, lodging and transportation expenses, overseas expenses, and other related costs which are directly attributable to the provision of research-based learning services and overseas study counselling services, and (3) teaching fees, payroll compensation, content development costs, and other related costs, which are directly attributable to the rendering of other educational services and other services.

&nbsp;&nbsp;&nbsp;&nbsp;***(j)***  ***Research and development costs*** 

Research and development costs primarily consist of salaries and benefits for the Group's research and development personnel, outsourcing services costs and other costs relating to the design, development, testing and enhancement of the technology systems

in support for the rendering of the Group's products and services. Research and development costs are expensed as incurred. Research and development cost incurred over software developed was primarily for internal use and treated as follows.

The Group expenses all costs that are incurred in connection with the planning and implementation phases of the development of software. Costs incurred in the development phase are capitalized and amortized over the estimated product life. No costs were capitalized for any of the periods presented.

&nbsp;&nbsp;&nbsp;&nbsp;***(k)***  ***Lease*** 

The Group is a lessee in a number of non-cancellable operating leases, primarily for training center and office spaces.

The Group accounts for leases in accordance with ASC Topic 842, *Leases* (see Note 9) The Group determines if an arrangement is or contains a lease at contract inception. The Group recognizes a right-of-use (ROU) asset and a lease liability at the lease commencement date.

For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date.

Key estimates and judgments include how the Group determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) lease term and (3) lease payments.

● ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Group cannot determine the interest rate implicit in the lease because it does not have access to the lessor's estimated residual value or the amount of the lessor's deferred initial direct costs. Therefore, the Group generally uses its incremental borrowing rate as the discount rate for the lease. The Group's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because the Group does not generally borrow on a collateralized basis, it uses the interest rate it pays on its non-collateralized borrowings as an input to deriving an appropriate incremental borrowing rate, adjusted for the amount of the lease payments, the lease term and the effect on that rate of designating specific collateral with a value equal to the unpaid lease payments for that lease.

● Lease payments included in the measurement of the lease liability are comprised of fixed payments, including in-substance fixed payments, owed over the lease term, which includes termination.

The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. The leases entered into within the Group do not incur initial direct costs or lease incentives. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease cost is recognized on a straight-line basis over the lease term.

Variable lease payments associated with the Group's leases are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs. Variable lease payments are presented as operating expense in the Group's consolidated statements of comprehensive income (loss) in the same line item as expense arising from fixed lease payments for operating leases.

ROU assets for operating lease are periodically reduced by impairment losses. The Group uses the long-lived assets impairment guidance in ASC Subtopic 360-10, *Property, Plant, and Equipment – Overall*, to determine whether a ROU asset is impaired, and if so, the amount of the impairment loss to recognize.

The Group monitors for events or changes in circumstances that require reassessment of its leases. When a reassessment results in the re-measurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in profit or loss.

Operating lease ROU assets are presented as operating lease right of use assets on the consolidated balance sheet. The current portion of operating lease liabilities is included in lease liabilities-current and the long-term portion is presented separately as lease liabilities-non-current on the consolidated balance sheets.

The Group has elected not to recognize ROU assets and lease liabilities for short-term leases of training centers and offices that have a lease term of 12 months or less. The Group recognizes the lease payments associated with its short-term training centers and offices leases as an expense on a straight-line basis over the lease term.

As of December 31, 2024 and September 30, 2025, the Company did not have any finance leases.

&nbsp;&nbsp;&nbsp;&nbsp;***(l)***  ***Income taxes*** 

Income taxes are accounted for under the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax status is recognized in income in the period that includes the enactment date or the date of change in tax status. A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized.

A deferred tax liability is not recognized for the excess of the Company's financial statement carrying amount over the tax basis of its investment in a foreign subsidiary, if there exists specific plans for reinvestment of undistributed earnings of a subsidiary which demonstrates that remittance of the earnings will be postponed indefinitely.

The Group recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group's accounting policy is to accrue interest and penalties related to unrecognized tax benefits, if and when required, as interest expense and a component of general and administrative expenses, respectively in the consolidated statements of comprehensive income (loss).

&nbsp;&nbsp;&nbsp;&nbsp;***(m)***  ***Share-based payment*** 

The Group measures the cost of employee share options and non-vested shares based on the grant date fair value of the award and recognizes that cost over the period during which an employee is required to provide services in exchange for the award, which generally is the vesting period. For the graded vesting share options and non-vested shares, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. Awards granted to employees with performance conditions are measured at fair value on the grant date and are recognized as compensation expenses in the period and thereafter when the performance goal becomes probable to achieve. We elect to recognize the effect of forfeitures as compensation cost when they occur. To the extent the required vesting conditions are not met which leads to the forfeiture of the share-based awards, previously recognized compensation expenses relating to such awards will be reversed.

When there is a modification of the terms and conditions of an award of equity instruments, the Group calculates the incremental compensation cost of a modification as the excess of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the share price and other pertinent factors at the modification date. For vested options, the Group recognizes incremental compensation cost in the period the modification occurred. For unvested options, the Group recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. Cancellations in the vesting period are treated as an acceleration of vesting, and recognized immediately for the amount that would otherwise be recognized for services over the vesting period.

When there is a change in the grantee status from an employee to a non-employee, if grantee retains the awards on a change in status and continues to provide substantive services to the Group, the change in status results in a new measurement date for the unvested awards with compensation costs measured as if the awards were newly issued to the grantee on the date of the change in status. If grantee retains the awards on a change in status and is not required to provide substantive services to the grantor subsequent to that change in status, the change in status is, in substance, an acceleration of the vesting of the arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;***(n)***  ***Cash and cash equivalents*** 

Cash and cash equivalents consist of cash on hand, cash in banks and highly liquid investments with original maturity less than three months and readily convertible to known amount of cash.

&nbsp;&nbsp;&nbsp;&nbsp;***(o)***  ***Accounts receivable*** 

Accounts receivable are recognized at invoiced amounts, less an allowance for uncollectible accounts, if any.

In connection with the adoption of *ASC 326 Financial Instruments-Credit Losses* (the "ASC 326") on January 1, 2020, the new accounting standard replaced the incurred loss impairment methodology for recognizing credit losses with a new methodology that requires recognition of lifetime expected credit losses when a financial asset is originated or purchased, even if the risk of loss is remote, which results in losses being recognized earlier. The new methodology (referred to as the current expected credit losses model, or "CECL") applies to most financial assets measured at amortized cost, including accounts receivables, and requires consideration of a broader range of reasonable and supportable information to estimate expected credit losses.

&nbsp;&nbsp;&nbsp;&nbsp;***(p)***  ***Long-term investments*** 

#### Equity method investments
The Group applies the equity method to account for an equity interest in an investee over which the Group has significant influence but does not own a majority equity interest or otherwise control.

Under the equity method of accounting, the Group's share of the investee's results of operations is reported as investment income (loss) in the consolidated statements of comprehensive income (loss).

The Group recognizes an impairment loss when there is a decline in value below the carrying value of the equity method investment that is considered to be other than temporary. The process of assessing and determining whether impairment on an investment is other than temporary requires a significant amount of judgment. To determine whether an impairment is other than temporary, management considers whether it has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the decline in value, any change in value subsequent to the period end, and forecasted performance of the investee.

#### Other equity investments
In connection with the adoption of ASC321 *Investment—Equity Securities* as of January 1, 2018, the Group have elected to apply the measurement alternative to measure the equity investments that do not have readily determinable fair values at cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. The Group considers information in periodic financial statements and other documentation provided by the investees to determine whether observable price changes have occurred.

The Group makes a qualitative assessment considering impairment indicators to evaluate whether the equity investments without a readily determinable fair value is impaired at each reporting period, and write down to its fair value if a qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than its carrying value. If an equity security without a readily determinable fair value is impaired, the Group includes an impairment loss in net income equal to the difference between the fair value of the investment and its carrying amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;***(q)***  ***Property and equipment, net*** 

Property and equipment is stated at historical cost.

Depreciation is recognized over the following useful lives in straight-line method, taking into consideration the assets' estimated salvage value:

---

| | |
|:---|:---|
| Building | 30 years |
| Computer equipment | 3 to 5 years |
| Furniture, fixtures and office equipment | 3 to 5 years |
| Software | 3 to 10 years |
| Motor vehicles | 5 years |
| Leasehold improvements | The shorter of lease terms and estimated useful lives |

---

Ordinary maintenance and repairs are charged to expenses as incurred, while replacements and betterments are capitalized. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value of the item disposed and proceeds realized thereon.

&nbsp;&nbsp;&nbsp;&nbsp;***(r)***  ***Intangible assets*** 

Intangible assets mainly consist of externally acquired intangible assets resulting from the acquisitions of entities and accounted for using the acquisition method of accounting, which are estimated by management based on the fair value of assets acquired at the acquisition date. Intangible assets are amortized on a straight-line basis over their respective estimated useful lives, which range from 6 to 10 years.

The Group has no intangible assets with indefinite useful lives.

&nbsp;&nbsp;&nbsp;&nbsp;***(s)***  ***Impairment of long-lived assets, excluding goodwill*** 

Long-lived assets, including property and equipment, intangible assets, other non-current assets subject to amortization and right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary.

&nbsp;&nbsp;&nbsp;&nbsp;***(t)***  ***Goodwill*** 

In connection with the adoption of *ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment* as of January 1, 2020, the goodwill impairment test was simplified by comparing the fair value of a reporting unit with its carrying amount and an impairment charge is measured as the amount by which the carrying amount exceeds the reporting unit's fair value. Goodwill is not amortized, but tested annually for impairment on a qualitative or quantitative basis for the reporting unit as of December 31, or more frequently when events or circumstances indicate an impairment may exist at the reporting unit level. When performing the annual impairment test, the Company has the option of first performing a qualitative assessment to determine the existence of events and circumstances that would lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, the overall financial performance of the reporting unit, and other specific information related to the operations. If such a conclusion is reached, the Company would then be required to perform a quantitative impairment assessment of goodwill. However, if the assessment leads to a determination that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then no further assessments are required. A quantitative assessment for the determination of impairment is made by comparing the carrying amount of the reporting unit with its fair value, which is generally calculated using the discounted cash flow method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;***(u)***  ***Employee benefit plans*** 

As stipulated by the regulations of the PRC, the Company's PRC subsidiaries are required to contribute to various defined contribution plans, organized by municipal and provincial governments on behalf of their employees. The contributions to these plans are based on certain percentages of the employee's standard salary base as determined by the local Social Security Bureau. The Group has no other obligation for the payment of employee benefits associated with these plans beyond the annual contributions described above.

Employee benefit expenses recognized under these plans for the nine-month periods September 30, 2024 and 2025 are allocated to the following expense items.

---

| | | |
|:---|:---|:---|
|  | **Nine-month period September 30,** | **Nine-month period September 30,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Cost of revenues | 6384006 | 6735460 |
| Research and development | 197190 | 192263 |
| Sales and marketing | 3930139 | 2948340 |
| General and administrative | 2534935 | 2447738 |
| &nbsp;&nbsp;**Total expense due to employee benefit plans** | **13046270** | **12323801** |

---

&nbsp;&nbsp;&nbsp;&nbsp;***(v)***  ***Earnings (losses) per share*** 

Basic earnings (losses) per share is computed by dividing net income (losses), considering the accretions to redemption value of the redeemable non-controlling interests, by the weighted average number of common shares outstanding during the year using the two-class method. Under the two-class method, any net income (losses) is allocated between common shares and other participating securities based on their participating rights in undistributed earnings (losses). Net losses are not allocated to participating securities when the participating securities does not have contractual obligation to share losses. The Company's certain non-vested shares relating to the share-based awards under the share incentive plan were considered participating securities since the holders of these securities have non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid). The non-vested shares do not have a contractual obligation to fund or otherwise absorb the Group's losses. Accordingly, any net income is allocated on a pro rata basis to the common shares and the non-vested shares that were considered participating securities, whereas net loss is allocated to common shares only.

Diluted earnings (losses) per share is calculated by dividing net income (losses) adjusted for the effect of dilutive common equivalent shares, if any, by the weighted average number of common and dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of common shares issuable upon vesting of the non-vested shares or exercise of outstanding share options (using the treasury stock method). Common equivalent shares are not included in the denominator of the diluted earnings (losses) per share computation when inclusion of such shares would be anti-dilutive.

The Group uses net loss as the control number in determining whether the potential common shares are dilutive or anti-dilutive.

&nbsp;&nbsp;&nbsp;&nbsp;***(w)***  ***Segment reporting*** 

The Group's chief operating decision maker has been identified as the Chief Executive Officer who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Group. The Group uses the management approach in determining operating segments. The management approach considers the internal reporting used by the chief operating decision maker for making operating decisions about the allocation of resources and the assessment of performance in determining the Group's operating segments. The Group classified the operating segments for the periods ended September 30, 2024 and 2025 into (i) Overseas art study services (ii) Other educational services and (iii) Other services. Substantially all of the Group's operations, customers and long-lived assets are located in the PRC. Consequently, no geographic information is presented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;***(x)***  ***Business combination*** 

Business combinations are recorded using the acquisition method of accounting in accordance with ASC topic 805 ("ASC 805"): Business Combinations. The acquisition method of accounting requires an acquirer to determine the identifiable acquired assets, the liabilities assumed and any non-controlling interest in the acquiree at the acquisition date, measured at their fair values as of that date. The consideration transferred for an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities assumed, equity instruments issued as well as the contingent considerations as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total cost of the acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree, is recorded as goodwill. If the cost of the acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in earnings.

&nbsp;&nbsp;&nbsp;&nbsp;***(y)***  ***Recent accounting pronouncements*** 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The FASB is issuing the amendments to enhance the transparency and decision usefulness of income tax disclosures. Investors currently rely on the rate reconciliation table and other disclosures, including total income taxes paid, to evaluate income tax risks and opportunities. While investors find these disclosures helpful, they suggested possible enhancements to better (1) understand an entity's exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities to increase future cash flows. The FASB decided that the amendments should be effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted. The adoption of this guidance did not have a material impact on the Company's financial position, results of operations and cash flows.

In March 2024, the FASB issued ASU 2024-02, "Codification Improvements — Amendments to Remove References to the Concepts Statements". This update contains amendments to the Codification that remove references to various FASB Concepts Statements. These changes remove references to various Concepts Statements and the amendments apply to all reporting entities within the scope of the affected accounting guidance. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2024. Early application of the amendments in this Update is permitted for any fiscal year or interim period for which financial statements have not yet been issued (or made available for issuance). The Company believes the future adoption of this ASU is not expected to have a material impact on its financial statements.

In November 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses". The amendments in this ASU are intended to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements for interim and annual reporting periods. For interim and annual reporting periods, an entity shall disaggregate, in a tabular format disclosure in the notes to financial statements, all relevant expense captions presented on the face of the income statement in continuing operations into the purchases of inventory, employee compensation, depreciation, amortization, and depletion. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this Update should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this Update or (2) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact the adoption of ASU 2024-03 will have on its consolidated financial statements and related disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;**(3)** **PREPAID EXPENSES AND OTHER CURRENT ASSETS** 

Prepaid expenses and other current assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **September 30,**<br>**2025** |
|  | **RMB** | **RMB** |
| VAT-input deductible | 837896 | 667881 |
| Income tax refundable | 15463 | 15463 |
| Amount due from Beijing Shouyiren (i) | 1696285 | 1696285 |
| Amount due from Beijing Kamo (ii) | 2800000 | 2800000 |
| Amount due from Beijing Huimei (iii) | 9824724 | 10859923 |
| Advances to employees | 4580000 | 4648147 |
| Prepaid marketing fee | 1783457 | 886630 |
| Advances to suppliers | 3666957 | 3231093 |
| Other current assets | 2198052 | 4627769 |
| &nbsp;&nbsp;**Total prepaid expenses and other current assets** | **27402834** | **29433191** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**(4)** **LONG-TERM INVESTMENTS** 

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **September 30,**<br>**2025** |
|  | **RMB** | **RMB** |
| EEO Group | 38000000 |  |
| &nbsp;&nbsp;**Total other equity investments** | **38000000** | **—** |

---

The Group accounts for its equity investments that do not have readily determinable fair value in accordance with ASC321 *Investment—Equity Securities* effective on January 1, 2018, and elected to measure these investments without readily determinable fair value at cost adjusted for changes resulting from impairments, if any, and observable price changes in orderly transactions for the identical or similar securities of the same issuer.

Prior to January 1, 2019, the Group acquired 7.95% equity interests of ApplySquare Education & Technology Co., Ltd ("ApplySquare") in exchange for USD 3,000,000 (equivalent to RMB 19,721,700) in cash. As of January 1, 2019, the carrying amount of the investment in ApplySquare was RMB 22,471,700. As of December 31, 2019, ACG made a qualitative assessment and identified that Applysquare failed to meet the expected milestones and operation forecasts and encountered shortage of working capital resulted from continuous negative operating cash flows, which indicated that impairment existed. With the assistance of an independent appraiser, the Company evaluated the fair value of the investment in Applysquare as of December 31, 2019 and recorded an impairment loss of RMB 20,895,309 based on the valuation result. Due to the severe shortage of working capital and negative market impact on its business in the year ended December 31, 2020, the Group recognized an impairment loss of RMB 1,576,391 to reduce the investment to zero. In 2024, due to new investments of other parties, the Group's equity interests of ApplySquare were diluted to 7.6442%.

Prior to January 1, 2019, the Group acquired 20% equity interests of Beijing Xiaozhi Education Technology Co., Ltd. ("Xiaozhi") in exchange for RMB 6,000,000 in cash. According to the shares purchase agreement, ACG has the right to appoint one director. The Company paid RMB 6,000,000 in cash to Xiaozhi in January 2019. The investment is not in-substance common stock due to the liquidation preference feature. During the year ended December 31, 2021, ACG made a qualitative assessment and identified that Xiaozhi failed to meet the expected milestones and operation forecasts and encountered shortage of working capital resulted from continuous negative operating cash flows, which indicated that impairment existed. The Group recognized an impairment loss of RMB 6,000,000 to reduce the investment to zero.

Long-term investment in Beijing Futou Technology Co., Ltd ("Futou Technology") was acquired in connection with the acquisition of Huanqiuyimeng in 2019, which held 15% equity interests in Futou Technology. Due to the severe shortage of working capital and negative market impact on its business in the year ended December 31, 2020, the Group recognized an impairment loss of RMB 150,000 to reduce the investment to zero.

Prior to January 1, 2019, the Group acquired 8.33% equity interests of Beijing Empower Education Online Co., Ltd. ("EEO") in exchange for RMB 38,000,000 in cash.

In July 2020, EEO underwent an internal reorganization pursuant to which the Company exchanged its equity interest in EEO to EEO Group, a newly established holding company incorporated in Cayman Islands. The equity interests in EEO Group are substantially equivalent to the exchanged equity interests in EEO. EEO Group also entered into two rounds of financing agreements with certain new investors in July and November 2020, respectively. After the internal reorganization and new financings in 2020, ACG's equity interest in EEO Group decreased from 8.33% to 4.822%. Since the securities issued during new financing arrangements are not identical or similar in terms of rights and obligations to the equity securities held by the Company, the Company did not adjust the carrying amount of the long-term investments in EEO Group.

On March 30, 2021, EEO Group entered into a financing agreement with a group of new investors. After EEO Group's new financing, ACG's equity shares decreased from 4.822% to 4.433%. Since the securities issued during this new financing arrangements are not identical or similar in terms of rights and obligations to the equity securities held by the Company, the Company did not adjust the carrying amount of the long-term investments in EEO Group.

Long-term investment in Beijing Quanouyimeng Culture Communication Co., Ltd. ("Quanouyimeng"), an entity that mainly delivers foreign language training services, was acquired in connection with the acquisition of Huanqiuyimeng in 2019, which held 100 % equity interests in Quanouyimeng.

On June 10, 2022, the Group entered into a loan agreement with Quanouyimeng and committed to provide an interest free loan up to RMB0.95 million to Quanouyimeng, pursuant to which, the Group paid RMB0.65 million before September 30, 2022 and the remaining RMB0.30 million in October 2022.

On July 1, 2022, Huanqiuyimeng sold 70 % equity interests in Quanouyimeng to its management employee at nil consideration. As a result, the Group deconsolidated Quanouyimeng as of July 1, 2022 when the Company no longer has a controlling financial interest in Quanouyimeng, by removing its net liabilities, writing-off the receivables due from Quanouyimeng and recognizing a disposal gain of RMB682,996 according to ASC 810-10, with the remaining 30 % equity interests of Quanouyimeng remeasured at nil fair value.

&nbsp;&nbsp;&nbsp;&nbsp;**(5)** **FAIR VALUE MEASUREMENT** 

The other equity investments without readily determinable fair value are recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. If an impairment or observable price adjustment is recognized on the equity securities during the period, the Company will classify these assets as Level 3 within the fair value hierarchy based on the nature of the fair value inputs.

To estimate the fair value of investment in Quanouyimeng as of July 1, 2022, the Group used DCF Model, which is based on the fair value of the entire invested capital of Quanouyimeng using an income approach. The significant inputs for the valuation model include, but not limited to, future cash flows, discount rate, and the comparable selection set of companies operating in similar businesses. The Group recorded a gain on disposal of equity interests in Quanouyimeng amounting to RMB 682,996 for the year ended December 31, 2022.

The Group's other financial instruments consist of cash and cash equivalents, accounts receivable, advances to third parties, employees and suppliers, which are included in the prepaid expenses and other current assets, loan receivable, net, accrued expenses and other payables and short-term loans, all of which have a carrying amount that approximate fair value because of the short maturity of these instruments.

The Group did not have any non-financial assets and liabilities that are measured at fair value on a non-recurring basis as of December 31, 2023 and 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;**(6)** **PROPERTY AND EQUIPMENT, NET** 

Property and equipment, net consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **September 30,** <br>**2025** |
|  | **RMB** | **RMB** |
| Building (i) | 53049213 | 53049212 |
| Computer equipment | 3687643 | 3041144 |
| Furniture, fixtures and office equipment | 3933670 | 3946778 |
| Motor vehicles | 1667222 | 1667222 |
| Software | 1565195 | 1654860 |
| Leasehold improvements | 12428593 | 11561752 |
|  | 76331536 | 85765308 |
| Less: accumulated depreciation and amortization | (37633450) | (51956645) |
| &nbsp;&nbsp;**Property and equipment, net** | **38698086** | **33808663** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In November 2024, Beijing Miusi Education Consultation Co., Ltd. (Beijing Miusi), a wholly-owned subsidiary of Huanqiuyimeng entered into a one-year Commercial Loan Facility with Shanghai Pudong Development Bank Co., Ltd. Beijing Branch, which is pledged by the real estate property owned by ATA Education, see Note 10 for details.

Total depreciation expense recognized for the periods ended September 30, 2024 and 2025 is allocated to the following expense items:

---

| | | |
|:---|:---|:---|
|  | **Nine - month September 30,** | **Nine - month September 30,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Cost of revenues | 383820 | 142429 |
| Research and development | 13808 |  |
| Sales and marketing | 30788 | 12704 |
| General and administrative | 4141284 | 7053643 |
| &nbsp;&nbsp;**Total depreciation expense** | **4569700** | **7208776** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**(7)** **GOODWILL AND INTANGIBLE ASSETS, NET** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a)***  ***Goodwill*** 

ACG acquired 100% equity interests of Huanqiuyimeng and its subsidiaries in the year of 2019. This acquisition was accounted for under the acquisition method of accounting and the excess of fair values of the consideration and non-controlling interests over the fair value of the identifiable net assets of Huanqiuyimeng is recorded as goodwill of RMB 200,478,795.

In May and August 2020, the Group disposed three campuses in relation to the junior art education service to third parties. A decrease in goodwill of RMB 5,723,832 allocated to these campuses within the junior art education service was recognized based on the relative fair values of the campuses being disposed of and the portion of the reporting unit retained.

In July 2022, the Group disposed 70 % equity interests of Quanouyimeng in relation to majority of the foreign language training services to a third party, see Note 5 for details. Nil goodwill was allocated to the disposal group, of which the fair value is determined as nil.

In September 2022, the Group entered into an agreement with Youru. This acquisition was accounted for under the acquisition method and the company recognized a goodwill amounting to RMB1,534,529 accordingly, see Note 3 for details.

The carrying amount of goodwill by reporting unit is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | |  | |  | |
|  |  | **Overseas art study**<br>**services** |  | **Other Educational**<br>**Services** |  | <br>**Consolidate** |
|  |  | **RMB** |  | **RMB** |  | **RMB** |
| **Balance as of December 31, 2024 and September 30, 2025** |  | **177,581,176** |  | **18,708,316** |  | **196,289,492** |

---

The Company performs goodwill impairment testing on an annual basis and whenever events or changes in circumstances indicate that the carrying value of a reporting unit likely exceeds its fair value. This involves estimating the fair value of the reporting units using discounted cash flow models and the key assumptions used in the valuation models include forecasted revenue growth rates, forecasted operating margins and the discount rate. No impairment was identified and recorded for the periods ended September 30, 2024 and 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b)***  ***Intangible assets*** 

The following table summarizes the Company's intangible assets, as of December 31, 2024 and September 30, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | <br>**Gross**<br>**carrying**<br>**amount** | <br>**Accumulated**<br>**amortization**<br>**/deduction** | <br>**Impairment** | <br>**Net**<br>**carrying**<br>**amount** | **Weighted**<br>**average**<br>**amortization**<br>**period** |
|  | **RMB** | **RMB** | **RMB** | **RMB** | **Years** |
| Trademark (i) | 84000000 | (43208333) |  | 40791667 | 10 |
| Non-compete arrangements (ii) | 56000000 | (50555556) |  | 5444444 | 6 |
| &nbsp;&nbsp;**Total intangible assets** | **140000000** | **(93763889)** | **—** | **46236111** |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | <br>**Gross**<br>**carrying**<br>**amount** | <br>**Accumulated**<br>**amortization**<br>**/deduction** | <br>**Impairment** | <br>**Net**<br>**carrying**<br>**amount** | **Weighted**<br>**average**<br>**amortization**<br>**period** |
|  | **RMB** | **RMB** | **RMB** | **RMB** | **Years** |
| Trademark (i) | 84000000 | (49508333) |  | 34491667 | 10 |
| Non-compete arrangements (ii) | 56000000 | (56000000) |  |  | 6 |
| &nbsp;&nbsp;**Total intangible assets** | **140000000** | **(105508333)** | **—** | **34491667** |  |

---

Total amortization expense recognized for the periods ended September 30, 2024 and 2025 is allocated to the following expense items:

---

| | | |
|:---|:---|:---|
|  | **Nine - month September 30,** | **Nine - month September 30,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| General and administrative | 13216667 | 11744444 |
| **Total amortization expense** | **13216667** | **11744444** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Trademark was recorded as a result of the acquisition of Huanqiuyimeng businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Non-compete arrangements were recorded as a result of the acquisition of Huanqiuyimeng businesses.

As of September 30, 2025, the estimated amortization expense for the next five years and thereafter are as follows:

---

| | |
|:---|:---|
|  | **September 30** |
|  | **RMB** |
| Remaining three months of 2025 | 2100000 |
| 2026 | 8400000 |
| 2027 | 8400000 |
| 2028 | 8400000 |
| 2029 | 5108333 |
| 2030 | 500000 |
| Thereafter | 1583334 |
| **Total estimated amortization expense**  | **34491667** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;**(8)** **LEASES** 

The primary leases that the Group entered into were for training centers and office spaces. Certain leases include renewal options and/or termination options, which are factored into the Group's determination of lease payments when appropriate.

As of December 31, 2023, the Company has 25 operating leases for training center and office spaces with remaining terms expiring from 1 through 54 months and a weighted average remaining lease term of 2.17 years. Weighted average discount rates used in the calculation of the lease liability is 6.56%. As of December 31, 2024, the Company has 25 operating leases for training center and office spaces with remaining terms expiring from 2 through 54 months and a weighted average remaining lease term of 3.55 years. Weighted average discount rates used in the calculation of the lease liability is 6.51%. The discount rates reflect the estimated incremental borrowing rate, which includes an assessment of the credit rating to determine the rate that the Company would have to pay to borrow, on a collateralized basis for a similar term, an amount equal to the lease payments in a similar economic environment.

Operating lease costs for the years ended December 31, 2022, 2023 and 2024 were RMB 18,456,989, RMB 18,600,344 and RMB 19,889,910, respectively, which excluded cost of short-term contracts. Short-term lease expense, with a lease term of 12 months or less, for the years ended December 31, 2022, 2023 and 2024 were RMB 3,412,129, RMB 3,950,259 and RMB 5,617,080, respectively. Short-term lease commitments as of December 31, 2024 was RMB 427,475. There were no variable lease costs or sublease income for leased assets for the years ended December 31, 2022, 2023 and 2024.

The impact of ASC 842 on the consolidated balance sheets as of December 31, 2023 and 2024 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31,** |  | **September 30,** |
|  |  | **2024** |  | **2025** |
|  |  | **RMB** |  | **RMB** |
| Operating leases: |  |  |  |  |
| Right-of-use assets |  | 35,907,761 |  | 35,347,613 |
| Lease liabilities-current |  | 18,085,643 |  | 16,238,233 |
| Lease liabilities-non-current |  | 17,120,842 |  | 17,579,017 |

---

Other information related to leases is presented below:

---

| | | |
|:---|:---|:---|
|  | **Nine-month period September 30,** | **Nine-month period September 30,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Supplemental cash flow information: |  |  |
| Cash paid for amounts included in measurement of operating leases liabilities | 14546175 | 15757738 |
| Lease liability arising from obtaining Right-of-use assets | 28487903 | 25971623 |

---

Maturities of lease liabilities under non-cancellable leases as of December 31, 2024 are as follows:

---

| | |
|:---|:---|
|  | **Operating leases** |
|  | **RMB** |
| 2025 | 4411850 |
| 2026 | 15985030 |
| 2027 | 10717193 |
| 2028 | 5101789 |
| 2029 | 377318 |
| Total undiscounted lease payments | 36593180 |
| Less: Imputed interest | (2775930) |
| **Total lease liabilities** | **33817250** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**(9)** **SHORT-TERM LOANS**

#### Loan Facility
In May 2022, Huanqiuyimeng entered into a two-year Commercial Loan Facility (the "Facility") with China Minsheng Bank Beijing Branch to borrow up to RMB 20,000,000 at an interest rate, which is subject to potential adjustment based on premium interest rate stipulated by the People's Bank of China at the time upon drawing of credit lines to support the working capital need of Huanqiuyimeng. The Facility is pledged by the real estate property owned by ATA Education under a two-year pledge agreement among ATA Education, Huanqiuyimeng and China Minsheng Bank Beijing Branch. The Group did not withdraw any line of credit from this loan facility throughout the two-year time.

In November 2024, Beijing Miusi entered into a one-year Commercial Loan Facility (the "2024 Facility") with Shanghai Pudong Development Bank Co., Ltd. Beijing Branch to borrow up to RMB 17,000,000 at an interest rate, which is subject to potential adjustment based on premium interest rate stipulated by the People's Bank of China at the time upon drawing of credit lines to support the working capital need of the Group. The 2024 Facility is pledged by the real estate property owned by ATA Education under a three-year pledge agreement among ATA Education, Beijing Miusi and Shanghai Pudong Development Bank Co., Ltd. Beijing Branch. For the year ended December 31, 2024, the Group has not withdrawn any line of credit from this loan facility.

**(10)** **ACCRUED EXPENSES AND OTHER PAYABLES**

Accrued expenses and other payables consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** <br>**2024** | **September 30,**<br>**2025** |
|  | **RMB** | **RMB** |
| Refund liability\* | 23923454 | 24895971 |
| Accrued payroll and welfare | 19185023 | 13030823 |
| Accrued professional services expenses | 3237079 | 977664 |
| Other current liabilities | 10027404 | 6512186 |
| &nbsp;&nbsp;**Total accrued expenses and other payables** | **56372960** | **45416644** |

---

Other current liabilities as of December 31, 2024 and September 30, 2025 mainly include accrued advertising and outsourcing fees, value-added tax and other taxes payable, and other operating expense payable.

\*Refund liability represents the estimated amount of refund if a student decides to withdraw from the Group's programs or services or a full or partial return of the service fees are repaid to students based on the final outcome of the performance targets and is estimated based on historical experience and performance.

**(11)** **NET REVENUES**

The components of net revenues for the periods ended September 30, 2024 and 2025, are as follows:

---

| | | |
|:---|:---|:---|
|  | **Nine - month September 30,** | **Nine - month September 30,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Portfolio training services | 125041473 | 125934123 |
| Research-based learning services | 12555036 | 17217662 |
| Overseas study counselling services | 20388702 | 25182446 |
| Other educational services | 9159342 | 10651498 |
| &nbsp;&nbsp;**Net Revenues** | **167144553** | **178985729** |

---

**(12)** **INCOME TAXES**

*Cayman Islands and British Virgin Islands*

Under the current laws of the Cayman Islands and the British Virgin Islands, the Group is not subject to any income tax in these jurisdictions.

*Hong Kong*

ACG HK did not derive any income that is subject to Hong Kong profits tax for the taxable years ended December 31, 2024 and nine -month September 30, 2025. Accordingly, no provision for Hong Kong profits tax was required.

*People's Republic of China*

The Company's consolidated PRC entities file separate income tax returns.

Under the Enterprise Income Tax Law ("EIT Law"), the statutory income tax rate is 25% effective from January 1, 2008. Entities that qualify as "high-and-new technology enterprises eligible for key support from the State" ("HNTE") are entitled to a preferential income tax rate of 15%. If an HNTE enterprise no longer satisfies the related accreditation criteria, its certificate will be cancelled and it will cease to be entitled to the related tax incentives.

The Company's PRC entities are subject to income tax at 25%, unless otherwise specified.

In December 2008, ATA Education received approval from the tax authority that it qualified as an HNTE. The certificate entitled ATA Education to the preferential income tax rate of 15 % effective retroactively from January 1, 2008 to December 31, 2010. In October 2011, ATA Education received approval from the tax authority on its renewal as an HNTE which entitled it to the preferential income tax rate of 15 % effective retroactively from January 1, 2011 to December 31, 2013. In October 2014 and 2017, ATA Education received approval from the tax authority on its renewal as an HNTE, which entitled it to the preferential income tax rate of 15 % effective from January 1, 2014 to December 31, 2016 and from January 1, 2017 to December 31, 2019, respectively. In December 2020, ATA Education received approval from the tax authority on its renewal as an HNTE, which entitled it to the preferential income tax rate of 15 % effective retroactively from January 1, 2020 to December 31, 2022.

The EIT Law and its relevant regulations impose a withholding tax at 10% for earnings generated beginning January 1, 2008, unless reduced by a tax treaty or agreement, for dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC. Undistributed earnings generated prior to January 1, 2008 are exempt from withholding tax. As of December 31, 2024 and September 30, 2025, the Company has not accrued income taxes on earnings of RMB 1,966,439 and RMB 76,559 respectively, generated by its PRC consolidated entities, as the Company plans to reinvest these earnings indefinitely in the PRC. The unrecognized deferred income tax liability related to these earnings was RMB196,644 and RMB7,656, respectively as of December 31, 2024 and September 30, 2025.

Income tax expense (benefit) recognized in the consolidated statements of comprehensive income (loss) consists of the following:

---

| | | |
|:---|:---|:---|
|  | **Nine - month September 30,** | **Nine - month September 30,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| **PRC** |  |  |
| Current income tax expense |  |  |
| Deferred income tax benefit | (9823637) | (7246803) |
| &nbsp;&nbsp;**Total income tax benefit** | (9823637) | (7246803) |

---

The actual income tax expense (benefit) reported in the consolidated statements of comprehensive income (loss) differs from the respective amount computed by applying the PRC statutory income tax rate of 25% for nine -month September 30, 2024 and 2025 to earnings before income taxes due to the following:

---

| | | |
|:---|:---|:---|
|  | **Nine - month September 30,** | **Nine - month September 30,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| **Computed "expected" income tax benefit** | (14794555) | (7247618) |
| Increase in valuation allowance | 3508598 | 2710017 |
| Entities not subject to income tax | 619706 | (3024388) |
| Non-deductible expenses |  |  |
| Entertainment | 260507 | 198627 |
| Share-based compensation | 663262 | 116569 |
| Other non-deductible expenses |  |  |
| Disposal of equity interests in subsidiaries |  |  |
| Other | (81155) | (10) |
| **Actual income tax benefit** | (9823637) | (7246803) |

---

The applicable PRC statutory income tax rate is used since the Group's taxable income is generated in the PRC.

For the years ended December 31, 2024 and for the nine -month September 30, 2025, the Group had no unrecognized tax benefits, and thus no related interest and penalties were recorded. Also, the Group does not expect that the amount of unrecognized tax benefits will significantly increase within the next twelve months.

According to the PRC Tax Administration and Collection Law, the statute of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more than RMB 100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. The income tax return of each of the Company's PRC consolidated entities is subject to examination by the relevant tax authorities for the calendar tax years beginning 2018.

**(13)** **SEGMENT INFORMATION**

The Group's chief operating decision maker has been identified as the Chief Executive Officer who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. The Group uses the management approach to determine the operating segments. The management approach considers the internal organization and reporting used by the Group's chief operating decision maker for making decisions, allocating resources and assessing the performance. There are no inter-segment revenue transactions and, therefore, revenues are only generated from external customers. The accounting policies of the segments are the same as those used by the Group.

For nine months ended September 30, 2024 and 2025, the Group classified the operating segments into (i) Overseas art study services (ii) Other educational services and (iii) Other services.

Overseas art study services and Other educational services have been identified as two separate reportable segments, as the two operating segments have met the quantitative threshold of 10 percent to be considered reportable respectively. Other services are reported as others because revenue from reportable segments of Overseas art study services and Other educational services exceeds 75 percent of the total consolidated net revenues and management determines that no further reportable segments need to be identified and disclosed.

Furthermore, the Group's chief operating decision maker evaluates performance based on each reporting segment's net revenue, operating cost and expenses, and income (loss) from operations. There are no separate segment assets and segment liabilities information provided to the Group's Chief Executive Officer, as he does not use this information to allocate resources or evaluate the performance of the segments.

The following table presents selected financial information relating to the Group's segments:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Overseas art study** | **Other educational**  |  |  |
| For nine months ended September 30, 2025: | **services** | **services** | **Others** | **Consolidated** |
|  | **RMB** | **RMB** | **RMB** | **RMB** |
| Net revenues | 168334231 | 10651498 |  | 178985729 |
| Operating cost and expenses: |  |  |  |  |
| Cost of revenues | 88774573 | 10076345 | 65560 | 98916478 |
| Research and development | 2345997 | 10887 | 2330 | 2359214 |
| Selling and marketing | 60099090 | 2451100 | 23653 | 62573843 |
| Unallocated corporate expenses\*  |  |  |  | 60131363 |
| Impairment loss of intangible assets and other non-current assets |  |  |  |  |
| Provision for loan receivable and other receivables |  |  | (3781662) | (3781662) |
| **Total operating cost and expenses** | **151219660** | **12538332** | **(3690119)** | **220199236** |
| Other operating income, net | 62187 |  | 56415 | 118602 |
| **Income (Loss) from operations** | **17176758** | **(1886834)** | **3746534** | **(41094905)** |
| Unallocated other income, net |  |  |  | 12104433 |
| **Loss before income taxes** |  |  |  | **(28990472)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Overseas art study**  | **Other educational** |  |  |
| For nine months ended September 30, 2024: | **services** | **services** | **Others** | **Consolidated** |
|  | **RMB** | **RMB** | **RMB** | **RMB** |
| Net revenues | 157985211 | 9159342 |  | 167144553 |
| Operating cost and expenses: |  |  |  |  |
| Cost of revenues | 84521064 | 4915758 | 106820 | 89543642 |
| Research and development | 2703386 | 59066 | 161639 | 2924091 |
| Selling and marketing | 67002262 | 5323802 | 61116 | 72387180 |
| Unallocated corporate expenses\* |  |  |  | 62414642 |
| Impairment loss of intangible assets and other non-current assets |  |  |  |  |
| Provision for loan receivable and other receivables |  |  |  |  |
| **Total operating cost and expenses** | **154226712** | **10298626** | **329575** | **227269555** |
| Other operating income, net | 36439 |  | 50147 | 86586 |
| **Income (Loss) from operations** | **3794938** | **(1139284)** | **(279428)** | **(60038416)** |
| Unallocated other income, net |  |  |  | 860197 |
| **Loss before income taxes** |  |  |  | **(59178219)** |

---

\* Unallocated corporate expenses represent the general and administrative expenses for nine months ended September 30, 2024 and 2025.

Majority of the Group's operations, customers and long-lived assets are located in the PRC. Consequently, no geographic information is presented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**(14)** **SHARE-BASED COMPENSATION**

#### 2008 Share incentive plan
On January 7, 2008, the Company adopted a share incentive plan (the "2008 Plan"), pursuant to which the Company is authorized to issue options and other share-based awards to officers, employees, directors and consultants of the Group to purchase up to 336,307 of its common shares, plus, unless the board of directors determines a lesser amount, an annual increase on January 1 of each calendar year beginning in 2009 equal to the lesser of 1) one percent of the number of shares issued and outstanding on December 31 of the immediately preceding calendar year, and 2) 336,307 shares (the "replenish terms"). The 2008 Plan expires in ten years. Options awards provide for accelerated vesting if there is a change in control (as defined in the 2008 Plan). On December 30, 2016, the Company amended the 2008 Plan to increase the number of Common Shares of the Company reserved for issuance to 5,726,763 shares and extend the plan together with the replenish terms for ten years from December 30, 2016 (the "Amendment and Restatement of 2008 Plan"). On October 26, 2018, the Company amended and restated the Amendment and Restatement of 2008 Plan to increase the number of Common Shares the Company reserved for issuance to 6,965,846 shares, extend its terms to last till October 25, 2028 and change the number of common shares automatically added to the option pool on each calendar year during its term to an amount equal to the lesser of (i) one percent of the total number of common shares issued and outstanding on December 31 of the immediately preceding calendar year, or (ii) such number of common shares as may be established by the board of directors (the "Second Amendment and Restatement of 2008 Plan"). As of December 31, 2024, 10,558,411 shares were reserved for issuance under the Second Amendment and Restatement of 2008 Plan.

Under the 2008 Plan (including the original and both versions of the Amendment and Restatement), share options are generally granted with 25% vesting on the first anniversary of the grant date and the remaining 75% vesting ratably over the following 36 months, unless a shorter or longer duration is established at the time of the option grant. Share options are granted at an exercise price equal to or as an average over a certain number of trading days of the fair market value of the Company's share at the date of grant and expire 10 years from the grant date, unless a shorter or longer expiration period is specified.

Under the 2008 Plan (including the original and both versions of the Amendment and Restatement), non-vested shares are generally granted with a graded vesting as to 25% at the end of each year from the grant date over 4 years, or with certain percentage vesting on the grant date or first anniversary of the grant date and the remaining portion vesting ratably over the following 36 months, unless a shorter or longer duration is established at the time of the grant.

For the graded vesting share options and non-vested shares, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards.

In January 2017, 2,700,000 non-vested shares were granted to employees and officers with a graded vesting as to 25% at the end of each year from the grant date over 4 years and 900,000 share options were granted to Company's employees and officers, 25% of the options vest on the first anniversary of the grant date with the remaining 75% vesting evenly over the following 36 months. The exercise price of these options is USD 1.705 per common share.

In August 2017, 50,000 share options were granted to an employee, 25% of the options vest on the first anniversary of the grant date with the remaining 75% vesting evenly over the following 36 months. The exercise price of these options is USD 2.35 per common share.

In July 2018, 129,168 share options and 1,262,250 non-vested shares were cancelled in connection with the ATA Online Sale Transaction. RMB 6,753,771 compensation costs were accelerated and recognized for the year ended December 31, 2018.

In November 2018, 1,772,584 share options, including 1,215,114 vested share options and 557,470 non-vested share options were cancelled in accordance with the board of directors' resolutions. RMB 877,321 of compensation costs were accelerated and recognized for the year ended December 31, 2018.

In November 2018, 1,452,600 share options were issued to certain employees and officers with 4 years' service condition and annual performance targets for the year 2018, 2019, 2020 and 2021, among which 363,150 share options were granted in November 2018 and the remaining portion will be granted when the employee knows the specific performance target. As the performance condition for the year 2018 was not achieved, no compensation cost was recognized for these share options. In addition, 690,000 share options were granted to employees and officers, with 25% vesting on the first anniversary of the grant date and the remaining 75% vesting ratably over the following 36 months. The exercise price of these options is USD 0.578 per common share. In addition, 800,000 non-vested shares were granted to directors, with 25% vesting on the first anniversary of the grant date and the remaining 75% vesting ratably over the following 36 months.

In December 2018, 1,772,584 shares were granted to employees and officers, among which 1,412,336 shares vested immediately on the grant date and the remaining shares vested for a period from January 1, 2019 to September 1, 2021.

In January and March 2019, 50,000 and 20,000 share options were granted to employees and officers, with 25% vesting on the first anniversary of the grant date and the remaining 75% vesting ratably over the following 36 months. The exercise prices of these two tranches options are USD 0.4868 and USD 0.532 per common share respectively.

In 2019, 1,698,790 share options with exercise price at USD 1.2611 per common share were issued to certain officer with service condition and specific performance target, among which 424,698 share options (the "First Tranche") were granted on March 25, 2020 and vested on April 1, 2022; 424,698 share options (the "Second Tranche") were granted on March 15, 2022 and vested on April 1, 2023; 424,697 share options (the "Third Tranche") were granted on May 5, 2023 and vested on April 1, 2024; 424,697 share options (the "Fourth Tranche") were granted on March 19, 2024, none vested on April 1, 2024 due to failure to meet the specific performance target.

In November 2020, 842,000 share options with exercise price at USD 0.5697 per common share were issued to certain employees with service condition and specific performance target, among which 181,750 share options (the "First Tranche -A"), 173,002 share options (the "Second Tranche-A"), 158,000 share options (the "Third Tranche-A"), and 149,250 share options (the "Fourth Tranche-A") were granted on April 15, 2021, April 15, 2022, April 15, 2023, and April 15, 2024, respectively. 46,050 share options among the First Tranche-A has met the performance condition set forth in the grant agreements and vested on June 30, 2022. 57,250 share options among the Second Tranche-A has met the performance condition set forth in the grant agreements and has vested on April 1, 2023. 83,400 share options among the Third Tranche-A has met the performance condition set forth in the grant agreements and has vested on April 1, 2024. 71,950 share options among the Fourth Tranche-A has met the performance condition set forth in the grant agreements and has vested on April 1, 2025.

In November 2020, 310,000 restricted shares were issued to certain employees with service condition and specific performance target, among which 77,500 shares (the "First Tranche- B"), 77,500 shares (the "Second Tranche-B"), 72,500 shares (the "Third Tranche-B"), and 71,250 shares (the "Fourth Tranche-B") were granted on April 15, 2021, April 15, 2022, April 15, 2023, and April 15, 2024, respectively. 16,000 shares among the First Tranche-B has met the performance condition set forth in the grant agreements and vested on June 30, 2022, 24,750 shares among the Second Tranche-B has met the performance condition set forth in the grant agreements and vested on April 1, 2023, 43,250 shares among the Third Tranche - B has met the performance condition set forth in the grant agreements and vested on April 1, 2024, and 38,750 shares among the Fourth Tranche-B has met the performance condition set forth in the grant agreements and vested on April 1, 2025.

In February 2022, 200,000 share options with exercise price at USD 0.79 per common share were granted to certain officer with service condition, with one fourth of the total number vesting on each of the first, second, third and fourth anniversary date of the grant date.

273,000 restricted shares were granted to an employee with service condition on October 27, 2022, among which 40% of the shares shall vest on October 27, 2023, 40% on October 27, 2024 and the remaining on October 27, 2025.

In November 2023, 20,000 share options with exercise price at USD 0.48 per common share were issued with service condition and specific performance target, among which 5,000 shares (the "First Tranche-C") and 5,000 shares (the "Second Tranche-C") were granted on November 1, 2023 and April 15, 2024, respectively. The remaining portion will be granted when the specific performance target is established and there is mutual understanding of the terms of the award. 5,000 shares among the First Tranche-C has met the performance condition set forth in the grant agreements and vested on April 1, 2024. 3,000 shares among the Second Tranche-C has met the performance condition set forth in the grant agreements and vested on April 1, 2025.

800,000 non-vested shares were granted to directors in November 2023, with 25% vesting on the first anniversary of the grant date and the remaining 75% vesting ratably over the following 36 months.

In April 2024, 585,000 share options with exercise price at USD 0.43 per common share were issued with service condition and specific performance target, among which 146,250 shares (the "First Tranche-D") were granted on April 15, 2024. The remaining portion will be granted when the specific performance target is established and there is mutual understanding of the terms of the award. 96,250 shares among the First Tranche-C has met the performance condition set forth in the grant agreements and vested on April 1, 2025.

In April 2024, 100,000 restricted shares were issued to certain employees with service condition and specific performance target, among which 25,000 shares (the "First Tranche-E") and 12,500 shares (the "Second Tranche-E") were granted on April 15, 2024 and April 15, 2024, respectively. The remaining portion will be granted when the specific performance target is established and there is mutual understanding of the terms of the award. 12,500 shares among the First Tranche-E has met the performance condition set forth in the grant agreements and vested on May 15, 2024; 5,000 shares among the Second Tranche-E has met the performance condition set forth in the grant agreements and vested on April 1, 2025.

Other than the restricted shares issued in November 2020 and October 2022, the restricted shares were awarded with non-forfeitable dividend rights before vesting.

A summary of the share options activities for ended December 31, 2022, 2023 and 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Number of**<br>**shares** | **Weighted**<br>**average**<br>**exercise**<br>**USD** | **Aggregate**<br>**Intrinsic**<br>**Value**<br>**USD** |
| **Outstanding as of December 31, 2024** | **1832918** | **1.07** |  |
| Granted | 147500 | 0.43 |  |
| Exercised | (12410) | 0.45 |  |
| Forfeited | (625) | 1.06 |  |
| Cancelled |  |  |  |
| Expired |  |  |  |
| **Outstanding as of September 30, 2025** | **1967383** | **1.02** |  |
| Vested and expected to vest as of December 31, 2024 | 1967383 | 1.02 |  |
| **Exercisable as of September 30, 2025** | **1697933** | **1.10** | **—** |

---

The aggregate intrinsic value of options outstanding and exercisable at December 31, 2024, was determined based on the closing price of the Company's common shares on December 31, 2024.

Information relating to options outstanding and exercisable as of December 31, 2024 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Options outstanding as of September 30, 2025** | **Options outstanding as of September 30, 2025** | **Options outstanding as of September 30, 2025** | **Options exercisable as of September 30, 2025** | **Options exercisable as of September 30, 2025** | **Options exercisable as of September 30, 2025** |
| <br>**Number of**<br>**Shares** | **Exercise**<br>**Price**<br>**per Share** | **Remaining**<br>**Contractual**<br>**Life** | <br>**Number**<br>**of Shares** | **Exercise**<br>**Price**<br>**per Share** | **Remaining**<br>**Contractual**<br>**Life** |
|  | **USD** | **Years** |  | **USD** | **Years** |
| 16800 | 0.53 | 3.46 | 16800 | 0.53 | 3.46 |
| 1274093 | 1.26 | 3.85 | 1274093 | 1.26 | 3.85 |
| 237150 | 0.57 | 5.25 | 165200 | 0.57 | 5.25 |
| 200000 | 0.79 | 6.36 | 150000 | 0.79 | 6.36 |
| 9215 | 0.48 | 8.26 | 4215 | 0.48 | 8.26 |
| 230125 | 0.43 | 9.26 | 87625 | 0.43 | 9.26 |
| **1967383** | **1.02** | **4.23** | **1697933** | **1.10** | **4.49** |

---

The Company calculated the fair value of the share options on the grant date, for nine-month periods September 30, 2024 and 2025, using the Black-Scholes-Merton pricing valuation model. The assumptions used in the valuation model are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31 and September 30, 2025** | **Year Ended December 31 and September 30, 2025** |
|  | **December 31, 2024** | **September 30, 2025** |
| Expected dividend yield | 0%/0%/0%/0 | 0%/0 |
| Expected volatility | 69%/70%/70%/70 | 73%/73 |
| Expected term | 3.17/3.79/5.29/5.46 | 4.96/4.79 |
| Risk-free interest rate (per annum) | 4.46%/4.73%/4.65%/4.65 | 3.90%/3.89 |

---

The expected volatility was based on the historical volatilities of the Company. The expected term was related to the period of time the options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the United States treasury yield curve in effect at the time of grant.

Compensation expense recognized for share options for the year ended December 31, 2022, 2023 and 2024 is allocated to the following expense items:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31 and September 30, 2025** | **Year Ended December 31 and September 30, 2025** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Cost of revenues | 52345 | 54493 |
| Research and development |  |  |
| Sales and marketing | 36325 | 16200 |
| General and administrative | 927683 | 127369 |
| &nbsp;&nbsp;**Total share-based compensation expense** | **1016353** | **198062** |

---

#### Non-vested shares
A summary of the non-vested shares activities for the year ended December 31, 2022, 2023 and 2024 is presented below:

---

| | | |
|:---|:---|:---|
|  | <br>**Number**<br>**of shares** | **Weighted**<br>**average**<br>**grant**<br>**date fair**<br>**value** |
|  |  | **USD** |
| **Outstanding at December 31, 2024** | **681683** | **0.49** |
| Granted | 6250 | 0.43 |
| Vested | (125820) | 0.64 |
| Forfeited |  | 0.43 |
| Cancelled |  |  |
| **Outstanding as of September 30, 2025** | **562113** | **0.50** |

---

Compensation expense recognized for non-vested shares for the years ended December 31, 2024 and nine-month period ended September 30, 2025 is allocated to the following expense items:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31 and September 30, 2025** | **Year Ended December 31 and September 30, 2025** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Cost of revenues | 54475 | 11068 |
| Sales and marketing | 24191 | 7453 |
| General and administrative | 1558031 | 249693 |
| &nbsp;&nbsp;**Total share-based compensation expense** | **1636697** | **268214** |

---

As of September 30, 2025, RMB 795,541 of total unrecognized compensation expense related to non-vested shares is expected to be recognized over a weighted average period of approximately 2.07 years.

**(15)** **COMMON SHARES**

On December 18, 2019, the Company entered into a subscription agreement with CL-TCC, a company focusing on investments in culture and education industry, in connection with a private placement for the Company's common shares. ACG completed this private placement with CL-TCC on December 24, 2019, under which it issued 5,662,634 common shares of the Company for gross proceeds of approximately $10.0 million. As of December 31, 2019, ACG has received cash consideration of $8.8 million (RMB 61.7 million) in accordance with the payment terms of the subscription agreement. The rest of the proceeds of $1.2 million (RMB 8.5 million) was received on April 10, 2020.

In May 2020, ACG's Board of Directors approved a share repurchase plan authorizing the Company to repurchase up to US$1.0 million of its issued and outstanding ADSs from the open market and through privately negotiated transactions, effective through December 31, 2020. By December 31, 2020, the Company had repurchased 450,337 ADSs at an average stock price of US$1.2631 for a total cash consideration of $0.6 million (RMB 4.0 million). This share repurchase plan expired on December 31, 2020. The Company has cumulatively used 1,124,626 ADSs and 1,124,626 ADSs purchased from the open market for settlement of vested share options and restricted shares vesting as of December 31, 2023 and 2024 respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**(16)** **STATUTORY RESERVES**

In accordance with the relevant laws and regulations of the PRC, the Company's PRC consolidated entities are required to transfer 10% of their respective after-tax profit, as determined in accordance with PRC accounting standards and regulations to a general reserve fund until the balance of the fund reaches 50% of the registered capital of the respective entity. The transfer to this general reserve fund must be made before any distribution of dividends. As of December 31, 2023 and 2024, the PRC consolidated entities had accumulated statutory reserve balances of RMB 25,671,341 and RMB 25,671,341, respectively, which is restricted for distribution to the Company.

**(17)** **RELATED PARTY TRANSACTIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(1) Purchase of equity interest from a Related Party***

In 2023, we acquired 100% equity interests of Jinan Nuobi. The equity interest was transferred from Jun Zhang, the President and Director of the Company, and a consideration of RMB 0.5 million was paid in August, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(2) Purchase of Office Sharing Service and System Development and Data Services from an Affiliate Company***

In October 2021, Huanqiuyimeng entered into an agreement for utilizing certain office space of ApplySquare with a term from October 16, 2021 to October 15, 2022. The total amount of the agreement was RMB1.2 million and expense of RMB 275,967 was recorded for the year ended December 31, 2021. In June 2022, Huanqiuyimeng entered into a supplementary agreement with Applysquare to increase the contract amount by RMB 22,000 for certain expense incurred. In September 2022, Huanqiuyimeng extended the above office space agreement for another year to October 15, 2023 and a total expense of RMB1,128,016 was recorded for the year ended December 31, 2022 in accordance with the above agreements. The office space agreement was terminated in March 2023 due to certain changes in operations. A total expense of RMB 236,960 was recorded for the year ended December 31, 2023.

In January 2022, Huanqiuyimeng entered into an agreement with Applysquare, pursuant to which ApplySquare shall develop system platforms and provide related data services to support Huanqiuyimeng's operations and service delivery. The total amount of the agreement was RMB 6.5 million, which includes a one-year charge of data and system maintenance services. RMB 3.7 million expense was recorded for the year ended December 31, 2022 in accordance with the development progress. In March 2023, Huanqiuyimeng entered into a supplementary agreement with Applysquare, under which the contract amount was reduced to RMB 6.3 million due to cost optimization. RMB 1.8 million and RMB 0.6 million expenses were recorded for the year ended December 31, 2023 and 2024. As of December 31, 2024, the system development has been completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(3) Purchase of video services from an Affiliate Company*

In September 2022, Huanqiuyimeng entered into an agreement with ATA Learning Inc., pursuant to which ATA Learning Inc. provided professional videography and production of video services to Huanqiuyimeng. The total amount of the agreement was USD10,000. Majority of the services were completed in December 2022 and expense of RMB 49,579 and RMB 21,248 was recorded accordingly for the years ended December 31, 2022 and 2023, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(4) Purchase of outsourcing services from an Affiliate Company***

Huanqiuyimeng recorded an expense of RMB 259,083 for the year ended December 31, 2024 for outsourcing services purchased from ATA Learning Inc. The services were mainly in relation to master classes.

**(18)** **COMMITMENTS AND CONTINGENCIES**

#### Legal Proceedings
In March 2020, Mr. Xiaofeng Ma, our chairman and chief executive officer, received copies of the civil complaints with respect to a lawsuit filed by our two shareholders Alpha Advantage Global Limited ("Alpha") and Dynamic Fame Limited ("Dynamic"), respectively with the Beijing Fourth Intermediate People's Court (the "Beijing Intermediate Court") relating to the Company's sale of the ATA Online Business. The Company was also listed as a defendant and ATA Online was listed as an interested third party in such lawsuits. Alpha was a holder of 4,529,100 common shares of the Company and Dynamic was a holder of 188,000 common shares of the Company at the time of the completion of the sale of ATA Online Business.

The plaintiffs claimed that the sale of the ATA Online Business was a related-party transaction or a self-dealing transaction, for which approval by unrelated shareholders is required and the board of the directors of the Company did not have the right to approve such transaction; the plaintiffs also claimed that the ATA Online Business was worth more than the consideration of US$200.0 million paid by the buyer group, and thus the sale of ATA Online Business has caused losses to the plaintiffs as shareholders of the Company. The plaintiffs are requesting that the Beijing Intermediate Court rule that (i) all board resolutions of the Company regarding the sale of the ATA Online Business are invalid; (ii) Mr. Xiaofeng Ma shall compensate the loss incurred by Alpha and Dynamic from the Company's sale of the ATA Online Business for RMB 95.0 million and RMB 5.0 million, respectively; and (iii) the Company and Mr. Xiaofeng Ma shall jointly bear the attorney's fees of Alpha and Dynamic for RMB 1.5 million and RMB 0.5 million, respectively, and other litigation costs.

The Company filed an application for jurisdiction objection for each of the foregoing two cases, which was not supported by court order. As a result, Beijing Intermediate Court had jurisdiction over these two cases. On March 18, 2022, the Supreme People's Court issued (2022) Supreme People's Court Ruling No. 48 and No. 49, holding that these two cases are international commercial cases of great influence and typical significance, and should be tried by the Second International Commercial Court of the Supreme People's Court. On June 20, 2024, the Supreme People's Court rendered the final judgment holding that shareholder approval was not required for the sale of the ATA Online Business and the board of the directors of the Company had the right to approve such transaction, and the consideration paid by the buyer group for the sale of the ATA Online Business was not unreasonable, therefore the all of the claims raised by Alpha and Dynamic were dismissed.

In addition, Alpha and Dynamic jointly filed a lawsuit with the Ningbo City Intermediate People's Court (the "Ningbo Intermediate Court") against Mr. Xiaofeng Ma, certain entities controlled by management members of ATA Online which were members of the buyer group, New Beauty Holdings Limited, the Company's director Zhilei Tong, ChineseAll Digital Publishing Group Co., Ltd. and ATA Learning in connection with the Company's sale of the ATA Online Business, and listed the Company and ATA Online as interested third parties. The plaintiffs are requesting that the Ningbo Intermediate Court rule that (i) all related party transactions between the defendants and the Company relating to the sale of ATA Online Business are invalid; (ii) Mr. Xiaofeng Ma, the entities controlled by the management members of ATA Online and ChineseAll Digital Publishing Group Co., Ltd. shall return the equity interest of ATA Online and ATA Learning they acquired to ATA Learning and ATA BVI, a wholly owned subsidiary of the Company, as the case may be; and (iii) all defendants and the Company shall jointly bear the attorney's fees of the plaintiffs for RMB 15.0 million and other litigation costs.

The case was transferred by the Ningbo Intermediate Court to Beijing Intermediate Court for further proceeding. On January 18, 2023, the Beijing Intermediate Court issued an order of nonsuit which dismissed the case. On February 17, 2023, the plaintiffs appealed such order to Beijing High People's Court and Beijing High People's Court later accepted such appeal. On July 30, 2024, the Beijing Intermediate Court accepted this case. On August 15, 2024, Alpha and Dynamic filed a withdrawal application and the Beijing Intermediate Court approved such withdrawal application on August 27, 2024.

In accordance with ASC Topic 450, no accrual of loss contingency was accrued as of December 31, 2023 and 2024.

#### Investment commitments
In August 2021, Huanqiuyimeng entered into an agreement with two third parties to invest in a new company, pursuant to which Huanqiuyimeng will invest RMB110.0 million in cash representing 55 % equity interests of the new company. The agreement was subsequently amended in March 2022 and October 2022. Pursuant to the amendments, the capital contribution by Huanqiuyimeng decreased to RMB30.0 million, representing 15% equity interests of the company, while a new investor ATA Learning (Beijing) Inc., a company controlled by Mr. Xiaofeng Kevin Ma, CEO and Chairman of the Group, will invest RMB 80.0 million, representing 40% equity interests in the new company. The capital contribution obligations of Huanqiuyimeng amounting to RMB30.0 million is due on December 31, 2031. In October 2024, Huanqiuyimeng transferred its 15% equity interests in the new company to a third party, upon which, Huanqiuyimeng may still have supplementary liability for the remaining investment commitment if the transferee fails to make the capital contribution before the due date, which is June 2032.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**(19)** **EARNINGS (LOSSES) PER COMMON SHARE**

Basic and diluted losses per common share are calculated as follows:

---

| | | |
|:---|:---|:---|
|  | **Nine-month Period Ended September,30** | **Nine-month Period Ended September,30** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Numerator: |  |  |
| &nbsp;&nbsp;Net loss attributable to ATA Creativity Global | (49354510) | (21743641) |
| &nbsp;&nbsp;Net loss available to common shareholders | (49354510) | (21743641) |
| Denominator: |  |  |
| &nbsp;&nbsp;Denominator for basic loss per share: |  |  |
| &nbsp;&nbsp;Weighted average common shares outstanding | 49354510 | 63359691 |
| &nbsp;&nbsp;Denominator for diluted loss per share | 49354510 | 63359691 |
| Basic loss per common share attributable to ATA Creativity Global | (0.78) | (0.34) |
| Diluted loss per common share attributable to ATA Creativity Global | (0.78) | (0.34) |

---

The following table summarizes potential common shares outstanding excluded from the calculation of diluted losses per share for the year ended December 31, 2024 and September 30, 2025, because their effect is anti-dilutive:

---

| | | |
|:---|:---|:---|
|  | **Nine-month Period Ended September,30** | **Nine-month Period Ended September,30** |
|  | **2024** | **2025** |
| Shares issuable under restricted shares and share options | 2514601 | 2529496 |

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