Horizon Land Metaverse Project Is Launching Beta Version on Website

Singapore, August 12, 2022 – (SEAPRWire) – Horizon Land, an immersive virtual world for gamers built on blockchain is launching their beta version on website. It was launched to demo Horizon Land Metaverse products announced to community to satisfy user waiting. Then initializing games, programs, event and campaign metaverse combined with partners following the road map.

In this version, users can play directly on the website with each feature per centers, by character incarnation of Horizon Land Metaverse, players can experience as physical but follow virtual reality way:

  • Play in hundred games in the game center and can get secret gifts, scholarships or getting items randomly during that time such as Heroarena, Tokenplay or AXS…Moreover, players can become an anonymous streamers with a 3D avatar to show talents or join game guilds to explore more.
  • Experience virtual reality learning center: VR Learning Center is the long-term campaign of Horizon Land Metaverse. Horizon Land partnered with Greenwich Viet Nam and signed MOU in June to build VR centers within and will co-organize workshops, seminars, minigames, and school events…for students and users next time. Since that it all, studying, learning, or researching will be modernized by technological tools integrated and blow new teaching & studying wind to education background.
  • Gathering in the square, joining community activities, dancing parties, hunting rewards from events, minigames, and immersive Horizon festival with friends…and more. Other centers will launch after the Beta Version campaign ends such as the Finance center, Shopping center, or Music center…(multi-majors as in physical)

By joining, users are free to select any identity: a player, a landowner, a creator, or a partner with different involvement upon their interests and demands. They are given rights and tools to own territory, create own assets (as NFTs), monetize creativity, and utilize fascinating services under a transparent and reliable blockchain governance system.

About Horizon Land Metaverse

Horizon Land Metaverse is an immersive virtual world, a complete ecosystem built on blockchain which provides an entertaining experience and means to help players monetize their ownership of virtual properties.

As an owner of LANDS, users can build, decorate, rent, or exchange. The better place one’s LANDS is in the metaverse, the more valuable that LANDS will be. A Landowner will also become creators who are able to create and monetize new assets (NFTs) and gameplays.

Construction of public works in Horizon’s public areas includes museums, central parks, and squares. Details:

  • Public works: museum, finance center, …
  • Public events: exhibitions, entertainments, …
  • Transportations: Cars, buses, …
  • Gaming events: arenas, game launches, etc.
  • Ticket box
  • VR Mode

Backers Of Horizon Land Metaverse

Horizon Land Metaverse has passed the strictest security audit of CertiK and will partner to detail analyzing codes and testing crypto applications. Other backers of Horizon Land Metaverse are CoinMarketCap, HG Venture, Minted Labs, University Of Greenwich, Supra Oracles, Texas Blockchain Council…This cooperation and supporting will bring multi-benefit to users from platforms, minting, exchanges, blockchain, wallet…and affirm the metaverse value of Horizon Land.

Experience this Beta Version at: https://meta.horizonland.app/

Explore more Horizon Land Metaverse at: https://twitter.com/HorizonLandMeta

Media Contact

Brand: Horizon Land Metaverse

Contact: Anna Pham

Email: contact@horizonland.app

Website: https://horizonland.app/

SOURCE: Horizon Land Metaverse

The article is provided by a third-party content provider. SEAPRWire ( https://www.seaprwire.com/ ) makes no warranties or representations in connection therewith. Any questions, please contact cs/at/SEAPRWire.com

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source https://netdace.com/top-story/horizon-land-metaverse-project-is-launching-beta-version-on-website/

Ping An rejects HSBC’s defence against spin-off

HONG KONG (BLOOMBERG) – Ping An Insurance Group is not convinced by HSBC Holdings’ case against a proposed spin-off of its Asia operations, arguing the lender is in need of urgent and radical change, according to a person familiar with its views.

The insurer estimates that a spin-off would generate additional market value of US$25 billion to US$35 billion (S$34 billion to S$48 billion), release US$8 billion in capital requirements, and save on headquarters and infrastructure costs, the person said. It believes that HSBC has emphasised only the downsides and challenges of spinning off the business.

The Chinese firm’s position underlines the continuing gulf between HSBC and its largest shareholder. It indicates that Ping An is unlikely to relent in its campaign for change, heralding months of more uncertainty and turmoil for Europe’s largest lender.

Ping An also argues that as HSBC Holdings will remain a major shareholder of HSBC Asia, both parties will continue to benefit from a global network, the person said. The insurer’s view is that the cross-border wholesale banking revenues that HSBC says are at risk from any split include significant intra-Asia business, which would not be affected by a spin-off.

Many of its calculations have already appeared in a June 8 report by In Toto Consulting, which said the analysis was commissioned by “an independent third party”. Other analysts have generally questioned the benefits of a split, citing issues like the likely complexity and costs involved.

“Debate about HSBC’s structure rumbles on, stoked by largest shareholder Ping An, but as previously, we believe regulatory and strategic complications will prevent any material change,” Bloomberg Intelligence analyst Jonathan Tyce wrote last week following HSBC’s second-quarter results.

HSBC chairman Mark Tucker and chief executive officer Noel Quinn last week said the Chinese insurer’s Asian carve-out plan was unworkable and posed a major risk to the London-headquartered company.

It would also put Hong Kong’s place as a global financial centre at risk, with a break-up of HSBC potentially having a “negative impact” on the former British colony, Mr Quinn warned.

HSBC set out 14 reasons why changing the bank’s structure was a bad idea, ranging from the length of time it would take – the bank reckons it to be as long as five years – to the loss of direct access to United States dollars.

The bank has also brought in advisers from investment banks Goldman Sachs and Robey Warshaw to advise on its options as it tries to rebuff Ping An’s campaign.

Ping An’s call to split up Europe’s biggest bank has won some support among Hong Kong’s retail investor base, which owns about a third of the bank. Some see it as a sure-fire way of preventing a steady stream of payouts from being cut off as it was during the height of the pandemic.

A testy meeting on Aug 2 with Hong Kong shareholders featured protests outside the meeting, calling on the bank to agree to a spin-off.



source https://netdace.com/latest-news/ping-an-rejects-hsbcs-defence-against-spin-off/

Nanofilm first-half profit up 5% to $18.8 million

SINGAPORE (THE BUSINESS TIMES) – Mainboard-listed Nanofilm Technologies posted a 5.1 per cent year-on-year increase in first-half net profit to $18.8 million from $17.9 million previously, according to its results filing on Thursday (Aug 11).

Revenue for the six months to June rose 15.2 per cent to $111.3 million, up from $96.6 million in the year-ago period.

Earnings per share stood at 2.86 cents, up from 2.71 cents previously.

The provider of nanotechnology solutions has proposed an interim dividend of 1.1 cents per share after considering its well-capitalised balance sheet and cash-generating operations.

“The group’s strong financial position makes it uniquely positioned to select and expand its business in areas with attractive returns, including tie-ups in joint ventures or mergers and acquisitions, navigate the macroeconomic environment and deliver continuing sustainable growth,” the filing noted.

In the first half of 2022, the group’s production capacity in Shanghai was hampered by a lack of labour and logistics flow and, as a result, there was an estimated $8 million revenue loss from these restrictions.

Nanofilm noted that despite the challenging operating environment caused by Shanghai’s Covid-19 lockdown, the group was still able to grow its revenue and profit, underscoring its unique deep-technologies reach in multiple growth avenues across vast industries and its strong business foundations put in place by management.

“We continue to focus our energies on our business unit-driven strategy that will fuel our growth for the longer term. Indeed, our strategy is delivering positive results, with deeper and wider application expansion of our nanotechnology solutions with existing and new customers across different industrial verticals,” said Mr Gary Ho, Nanofilm’s chief executive officer.

The counter closed five cents, or 2.4 per cent, higher at $2.11 on Thursday before the results announcement.



source https://netdace.com/latest-news/nanofilm-first-half-profit-up-5-to-18-8-million/

ThaiBev defers brewery unit’s Singapore IPO plans once again

SINGAPORE (BLOOMBERG) – Thai Beverage has deferred the initial public offering (IPO) of its brewery unit in Singapore once again, citing “prolonged challenging market conditions” for its decision.

The maker of Chang Beer said it will continue to monitor market conditions and explore opportunities to maximise shareholders’ value, including potentially reviewing the proposed spin-off listing “at an appropriate time”.

The announcement on Thursday night (Aug 11) comes just months after the firm said it intended to resume the listing of BeerCo and conduct a public offering of as much as about 20 per cent of the unit. ThaiBev, controlled by Thai tycoon Charoen Sirivadhanabhakdi, was seeking about US$800 million to US$1 billion (S$1.1 billion to S$1.37 billion) in the unit’s IPO, people familiar with the matter previously said.

BeerCo received conditional approval from the Singapore Exchange for a listing and started gauging investor demand for the offering in June.

ThaiBev previously halted plans for the IPO in May 2020 due to Singapore’s lockdown in the early days of Covid-19. A second effort was thwarted by the worst wave of the country’s outbreak.

The IPO was set to potentially be Singapore’s biggest since NetLink NBN Trust’s US$1.7 billion offering in 2017, according to data compiled by Bloomberg.



source https://netdace.com/latest-news/thaibev-defers-brewery-units-singapore-ipo-plans-once-again/

US stocks end mixed as Wall Street loses momentum

NEW YORK (AFP) – A rally in US stocks petered out Thursday (Aug 11), with markets ending mixed as analysts weighed encouraging inflation news against expectations that the Federal Reserve will continue to raise interest rates.

Americans received a much-welcomed sign that some inflation relief is in store early in the day when a Labour Department report showed that wholesale prices cooled sharply in July.

The producer price index (PPI) fell 0.5 per cent compared to June, on a nine percent drop in energy prices.

The news came just a day after data showed consumer price inflation also slowed last month, pulling back from a 40-year high that has left many families struggling to make ends meet.

The widely anticipated CPI report prompted a Wall Street rally that carried over into Thursday. But the upward momentum had mostly ebbed by the session’s close.

“The market is sending a signal that the Fed is going to continue to raise rates, but the question mark is will they be aggressive, overly aggressive or will they continue on the path of the unknown?” said Peter Cardillo of Spartan Capital.

The broad-based S&P 500 closed down 0.1 per cent at 4,207.27.

But the Dow Jones Industrial rose 0.1 per cent to end the day at 33,336.67, while the tech-rich Nasdaq Composite Index dropped 0.6 per cent to end at 12,779.91.

While “the market has been on a tear,” eventually the “reality does settle in” that the Fed will continue to lift interest rates based on persistently high inflation, said Patrick O’Hare of Briefing.com.

As for individual stocks, news that activist investor ValueAct Capital Partners has taken a 6.7 per cent stake in The New York Times lifted shares of the newspaper company by 10.6 per cent.

Disney, meanwhile, was up 4.7 per cent after reporting better-than-expected quarterly earnings, as well as a leap in paying subscribers for its streaming service.



source https://netdace.com/latest-news/us-stocks-end-mixed-as-wall-street-loses-momentum/

How healthtech start-up Doctor Anywhere is redefining Southeast Asia’s healthcare scene with the organisation’s 2.5 million users

As the first company in Singapore to launch online supervised antigen rapid testing (ART) or tele-ART services in January, technology-led healthcare company Doctor Anywhere was quick to fill a need in the market. 

With the launch, the unprecedented surge in demand for the service came as a surprise for founder and chief executive officer Lim Wai Mun and his team.  

Using live data available on its platform, he could see that demand far outstripped what Doctor Anywhere could supply.

The astute businessman instantly knew that the firm had to rapidly scale up its resources to meet the demand, which was increasing day by day – which included hiring more medical staff, purchasing new laptops, and rapidly training tele-ART supervisors to keep up with the exponential demand. 

“When I saw the live data, the urgency to scale up our operations became apparent. It was because we had this data, we were able to act on it quickly and grow the business,” he says. 

Without this data, he believes they would not have been able to cope and get ahead of its competitors, which were rolling out the same service. As a result of his speedy action, Doctor Anywhere has since recorded close to 100,000 tele-ART transactions to date. 

As a fast-growing regional healthcare company, there is a need for agility, efficiency, and visibility of its operations. Its tele-ART strategy marks precisely this nimbleness and readiness to quickly identify market opportunities and roll out new innovations to meet consumers’ needs.   

Mr Lim recalls his original idea for Doctor Anywhere – to deliver medical aid without patients having to leave their homes – did not take off immediately. People were hesitant to entrust something as personal as healthcare to an online service provider. To overcome this, he knew they had to tap an “omni-channel” approach so the team set up physical clinics to provide a face-to-face presence where consumers could grow to know and trust the brand. 



source https://netdace.com/latest-news/how-healthtech-start-up-doctor-anywhere-is-redefining-southeast-asias-healthcare-scene-with-the-organisations-2-5-million-users/

ATA Creativity Global Reports 2022 Second Quarter Financial Results

Conference Call on Thursday, August 11, 2022, at 9 p.m. ET with Accompanying Investor Presentation

BEIJING, Aug. 11, 2022 (GLOBE NEWSWIRE via SEAPRWire.com) — ATA Creativity Global (“ACG” or the “Company”, Nasdaq: AACG), an international educational services company focused on providing quality learning experiences that cultivate and enhance students’ creativity, today announced preliminary unaudited financial results for the quarter and six months ended June 30, 2022 (“Second Quarter 2022” and “First Half 2022”, respectively).

Second Quarter 2022 and First Half 2022 Highlights

  • During Second Quarter 2022, student enrollment was 1,018, compared to 1,051 in the prior-year period. Of these students, 547 were enrolled in ACG’s portfolio training programs. 25,387 credit hours were delivered during Second Quarter 2022, compared to 28,445 in the prior-year period
  • Second Quarter 2022 net revenues of RMB34.0 million (US$5.1 million), compared to RMB36.8 million in the prior-year period, due to decreased revenue contributions from portfolio training and research-based learning services, which were primarily impacted by temporary training center closures in major cities including Shanghai and Beijing as a result of local COVID-19 resurgences and citywide lockdowns
  • Second Quarter 2022 net loss attributable to ACG of RMB22.1 million (US$3.3 million), compared to net income attributable to ACG of RMB14.1 million in the prior-year period, primarily as a result of a one-time RMB33.5 million investment gain relates to the disposal of the K-12 education assessment business in the prior-year period
  • First Half 2022 net revenues of RMB76.2 million (US$11.4 million), compared to RMB74.4 million in the prior-year period
  • First Half 2022 net loss attributable to ACG of RMB37.9 million (US$5.7 million), compared to RMB4.9 million in the prior-year period
  • RMB60.5 million (US$9.0 million) in cash and cash equivalents as of June 30, 2022

Management Commentary

Mr. Kevin Ma, Chairman and CEO of ACG, stated, “During Second Quarter 2022, we remained focused on supporting our students in their creative arts studies, particularly those who had to shift to a distance learning delivery method due to local COVID-19 resurgences and subsequent lockdowns. Those restrictions in major cities such as Beijing and Shanghai have since been lifted, but our top and bottom line results were impacted by the decreased contributions from our portfolio training and research-based learning services during the period as our training centers in those core cities had to temporarily close in compliance with mandatory lockdown procedures. We did see modest increases in revenues from overseas study counselling service, which gives us confidence that there continues to be strong demand for overseas study opportunities and students are looking to take advantage of these opportunities in the near future. ACG continued to provide quality programs to students while closely monitoring the pandemic situation in China. One of our online offerings, the ACG Overseas Master program, has continued to be well received by participating students since we initially introduced it in 2020 in response to the COVID-19 pandemic. The ACG Overseas Master program provides small classes within specialized areas of fine and applied arts, architecture, and industrial and interactive design, all of which are taught by professors from prestigious overseas arts schools including the University of the Arts London, Parsons School of Design and others.”

Outlook

Mr. Jun Zhang, President of ACG, stated, “We continue to strive to provide superior course offerings and support for ACG’s students despite the uncertainties caused by the recent resurgence of COVID-19 in some of our core cities. As the public health situation across the nation gradually improves, ACG and our staff are committed to guiding our students through the upcoming application process this fall and winter as a next step in their creative arts education journey. We plan to continue developing hands-on programs that cater to the interests of our students, including a new series of online courses focused on current topics such as the metaverse and non-fungible tokens (NFTs) as well as the on-site learnings tours that feature visits to cultural heritage sites in China. ACG is also working to streamline our organizational structure by integrating full-time teachers in more active roles in internal management including sales, marketing and product development, key areas that drive the Company’s growth that will enable us to seize potential opportunities that may occur in the market. We remain confident in the value we bring to students as a leading provider of creative arts education and are continuously exploring ways in which we can meet the needs of our evolving student population.”

Operating Review

Enrollment Update

ACG student enrollment for Second Quarter 2022 was 1,018, of which 547 were enrolled in portfolio training programs, which consisted of time-based programs and project-based programs.

A total of 25,387 credit hours were delivered for portfolio training programs during Second Quarter 2022, of which 10,710 credit hours were delivered for time-based programs and 14,677 credit hours were delivered for project-based programs. These courses were delivered either in person through ACG’s nationwide training center network or via online platform.

The following is a summary of the credit hours delivered for ACG’s portfolio training programs for Second Quarter 2022, compared to those for the prior-year period:

           
  Second
Quarter Ended June 30, 2022
  Second
Quarter Ended June 30, 2021
  % Change
  No. of Credit Hours   No. of Credit Hours    
           
Time-based Program 10,710   14,224   (24.7%)
Project-based Program 14,677   14,221   3.2%
Total 25,387   28,445   (10.8%)
           
           

During Second Quarter 2022, 471 students were enrolled in ACG’s other programs, which primarily consisted of overseas study counselling services, research-based learning services, as well as foreign language training services.

Second Quarter 2022 Financial Review – GAAP Results

ACG’s total net revenues for Second Quarter 2022 were RMB34.0 million (US$5.1 million), compared to RMB36.8 million in the prior-year period, primarily due to revenue decreases from the portfolio training and research-based learning service businesses caused by local COVID-19 resurgences and subsequent lockdowns in major cities such as Shanghai and Beijing. Revenues from portfolio training programs were RMB26.4 million, or 77.6% of total net revenues, during the period. Revenues from overseas study counselling services, research-based learning services and other educational services were RMB7.6 million, or 22.4% of total net revenues, during the period.

Gross profit for Second Quarter 2022 was RMB12.1 million (US$1.8 million), compared to RMB16.0 million in the prior-year period. Gross margin was 35.6% during the period, compared to 43.4% in the prior-year period. The decrease was primarily caused by the revenue decline described above.

Total operating expenses for Second Quarter 2022 decreased to RMB38.6 million (US$5.8 million), from RMB39.8 million in the prior-year period.

Loss from operations for Second Quarter 2022 was RMB26.4 million (US$3.9 million), compared to RMB23.8 million in the prior-year period.

Net loss attributable to ACG for Second Quarter 2022 was RMB22.1 million (US$3.3 million), compared to net income attributable to ACG of RMB14.1 million in the prior-year period, primarily due to a one-time RMB33.5 million investment gain resulting from the disposal of the Company’s K-12 education assessment business in June 2021.

For Second Quarter 2022, basic and diluted losses per common share attributable to ACG were both RMB0.35 (US$0.05), compared to basic and diluted earnings per common share of RMB0.21 for the prior-year period. Basic and diluted losses per ADS attributable to ACG were both RMB0.70 (US$0.10), compared to basic and diluted earnings per ADS of RMB0.42 in the prior-year period.

First Half 2022 Financial Review – GAAP Results

ACG’s total net revenues for First Half 2022 was RMB76.2 million (US$11.4 million), compared to RMB74.4 million in the prior-year period. Revenues from portfolio training programs were RMB53.1 million, or 69.7% of total net revenues, during the period. Revenues from overseas study counselling services, research-based learning services and other educational services were RMB23.1 million, or 30.3% of total net revenues, during the period.

Gross profit for First Half 2022 was RMB31.4 million (US$4.7 million), compared to RMB30.8 million in the prior-year period. Gross margin was 41.2% during the period, compared to 41.5% in the prior-year period.

Total operating expenses for First Half 2022 decreased to RMB76.6 million (US$11.4 million), from RMB77.9 million in the prior-year period.

Loss from operations for First Half 2022 was RMB45.2 million (US$6.7 million), compared to RMB47.1 million in the prior-year period.

Net loss attributable to ACG for First Half 2022 was RMB37.9 million (US$5.7 million), compared to RMB4.9 million in the prior-year period, primarily due to the one-time investment gain noted in the Second Quarter 2022 Financial Review.

For First Half 2022, basic and diluted losses per common share attributable to ACG were both RMB0.60 (US$0.09), compared to RMB0.11 for the prior-year period. Basic and diluted losses per ADS attributable to ACG were both RMB1.20 (US$0.18), compared to RMB0.22 in the prior-year period.

Non-GAAP Measures

Adjusted net loss attributable to ACG for Second Quarter 2022, which excludes share-based compensation expense and foreign currency exchange gain (loss), net (non-GAAP), was RMB21.6 million (US$3.2 million), compared to adjusted net income of RMB14.7 million in the prior-year period.

Basic and diluted losses per common share attributable to ACG excluding share-based compensation expense and foreign currency exchange gain, net (non-GAAP) for Second Quarter 2022, were RMB0.34 (US$0.05). Basic and diluted losses per ADS attributable to ACG excluding share-based compensation expense and foreign currency exchange gain, net (non-GAAP) for Second Quarter 2022 were RMB0.68 (US$0.10).

Please see the note about non-GAAP measures and the reconciliation table at the end of this press release.

Other Data

The number of weighted average ADSs used to calculate basic and diluted losses per ADS for Second Quarter 2022 were both 31.4 million. Each ADS represents two common shares.

Balance Sheet Highlights

As of June 30, 2022, ACG’s cash and cash equivalents were RMB60.5 million (US$9.0 million), working capital deficit was RMB223.9 million (US$33.4 million), and total shareholders’ equity was RMB153.3 million (US$22.9 million); compared to cash and cash equivalents of RMB71.3 million, working capital deficit of RMB192.6 million, and total shareholders’ equity of RMB190.9 million, respectively, as of December 31, 2021.

Conference Call and Webcast Information (With Accompanying Presentation)

ACG will host a conference call at 9 p.m. Eastern Time on Thursday, August 11, 2022 (9 a.m. Beijing time on Friday, August 12, 2022), during which management will discuss the results of the second quarter and six months ended June 30, 2022.

To participate in the conference call, please use the following dial-in numbers about 10 minutes prior to the scheduled conference call time:

   
U.S. & Canada (Toll-Free): +1 (877) 407-9122
International (Toll): +1 (201) 493-6747
   
  Local Access
China: (400) 120 2840
Hong Kong: (800) 965561
   

A live webcast of the conference call can be accessed at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=vjOLXGDR.     

An accompanying slide presentation will also be made available 30 minutes prior to the conference call at the investor relations section of ACG’s website (https://ir.atai.net.cn/). To listen to the webcast, please visit ACG’s website a few minutes prior to the start of the call to register, download, and install any necessary audio software.

A replay will be available shortly after the call and will remain available for 90 days.

About ATA Creativity Global

ATA Creativity Global is an international educational services company focused on providing quality learning experiences that cultivate and enhance students’ creativity. ATA Creativity Global offers a wide range of education services consisting primarily of portfolio training, research-based learning services, overseas study counselling and other educational services through its training center network. For more information, please visit ACG’s website at www.atai.net.cn.

Cautionary Note Regarding Forward-looking Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995.

These forward-looking statements can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “future,” “intend,” “look forward to,” “outlook,” “plan,” “should,” “will,” and similar terms and include, among other things, statements regarding ACG’s future growth and results of operations; ACG’s plans for mergers and acquisitions generally; ACG’s growth strategy, anticipated growth prospects and subsequent business activities; market demand for, and market acceptance and competitiveness of ACG’s portfolio training programs and other education services; the impact of the COVID-19 pandemic on ACG and its operations; and ACG’s plan and anticipated benefits of the measures implemented in response to the COVID-19 pandemic.

The factors that could cause the Company’s actual financial and operating results to differ from what the Company currently anticipates may include its ability to develop and create content that could accommodate needs of potential students, its ability to provide effective creative related international education services and control sales and marketing expenses, its recognition in the marketplace for services it delivered and branding it established, its ability to integrate the acquired business, its ability to maintain market share amid increasing competition, its ability to identify and execute on M&A opportunities within the education sector, the economy of China, uncertainties with respect to China’s legal and regulatory environments, the impact of the COVID-19 pandemic, the impact of the political tensions between the United States and China or other international tensions, and the impact of actual or potential international trade or military conflicts, and other factors stated in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”).

The financial information contained in this release should be read in conjunction with the consolidated financial statements and related notes included in the Company’s annual report on Form 20-F for its fiscal year ended December 31, 2021, and other filings that ACG has made with the SEC. The filings are available on the SEC’s website at www.sec.gov and at ACG’s website at www.atai.net.cn. For additional information on the risk factors that could adversely affect the Company’s business, financial conditions, results of operations, and prospects, please see the “Risk Factors” section of the Company’s Form 20-F for the fiscal year ended December 31, 2021.

The forward-looking statements in this release involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates, and projections about ACG and the markets in which it operates. The Company undertakes no obligation to update forward-looking statements, which speak only as of the date of this release, to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that its expectations and assumptions expressed in these forward-looking statements are reasonable, the Company cannot assure you that its expectations and assumptions will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

Currency Convenience Translation

The Company’s financial information is stated in Renminbi (“RMB”), the currency of the People’s Republic of China. The translations of RMB amounts for the quarter and six months ended June 30, 2022, into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB6.6981 to US$1.00, the noon buying rate as of June 30, 2022, in New York for cable transfers in RMB per U.S. dollar as set forth in the H.10 weekly statistical release of the Federal Reserve Board. Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under U.S. generally accepted accounting principles (“GAAP”).

About Non-GAAP Financial Measures

To supplement ACG’s consolidated financial information presented in accordance with U.S. GAAP, ACG uses the following non-GAAP financial measures: net income (loss) excluding share-based compensation expense and foreign currency exchange gain or loss, and basic and diluted earnings (losses) per common share and ADS excluding share-based compensation expense and foreign currency exchange gain or loss.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. ACG believes these non-GAAP financial measures provide meaningful supplemental information about its performance by excluding share- based compensation expense and foreign currency exchange gain or loss, which may not be indicative of its operating performance.

ACG believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to ACG’s historical performance. ACG computes its non-GAAP financial measures using a consistent method from period to period. ACG believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP net income (loss) excluding share-based compensation expense and foreign currency exchange gain or loss and basic and diluted earnings (losses) per common share and per ADS excluding share-based compensation expense and foreign currency exchange gain or loss is that share-based compensation charges and foreign currency exchange gain or loss have been, and are expected to continue to be for the foreseeable future, a significant recurring expense in ACG’s business.

Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The table captioned “Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures” shown at the end of this news release has more details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures used by ACG.

For more information on our company, please contact the following individuals:

At the Company Investor Relations
ATA Creativity Global The Equity Group Inc.
Ruobai Sima, CFO Carolyne Y. Sohn, Vice President
+86 10 6518 1133 x 5518 415-568-2255
simaruobai@acgedu.cn csohn@equityny.com
   
  Alice Zhang, Investor Relations Analyst
  212-836-9610
  azhang@equityny.com
   
   
   

ATA CREATIVITY GLOBAL AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

           
  December 31,     June 30,     June 30,  
  2021     2022     2022  
  RMB     RMB     USD  
ASSETS          
Current assets:          
Cash and cash equivalents 71,339,361     60,516,273     9,034,842  
Accounts receivable 938,189     405,869     60,595  
Prepaid expenses and other current assets 3,129,600     6,097,072     910,269  
Total current assets 75,407,150     67,019,214     10,005,706  
           
Long-term investments 38,000,000     38,000,000     5,673,251  
Property and equipment, net 36,503,984     34,669,945     5,176,087  
Intangible assets, net 93,352,778     84,856,111     12,668,684  
Goodwill 194,754,963     194,754,963     29,076,150  
Other non-current assets 26,739,026     25,407,110     3,793,182  
Right-of-use assets 42,417,409     37,652,210     5,621,327  
Total assets 507,175,310     482,359,553     72,014,387  
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current liabilities:          
Accrued expenses and other payables 48,174,095     46,601,405     6,957,409  
Lease liabilities-current 17,351,427     17,287,128     2,580,900  
Deferred revenues 202,453,092     227,056,775     33,898,684  
Total current liabilities 267,978,614     290,945,308     43,436,993  
           
Lease liabilities-non-current 23,365,840     19,390,844     2,894,977  
Deferred income tax liabilities 24,931,322     18,696,687     2,791,342  
Total liabilities 316,275,776     329,032,839     49,123,312  
           
Shareholders’ equity:          
Common shares 4,720,147     4,720,147     704,699  
Treasury shares (9,818,754 )   (9,270,884 )   (1,384,107 )
Additional paid-in capital 540,583,564     540,765,380     80,734,146  
Accumulated other comprehensive loss (37,559,847 )   (37,235,569 )   (5,559,124 )
Accumulated deficit (310,156,018 )   (348,079,921 )   (51,966,964 )
Total shareholders’ equity attributable to ACG 187,769,092     150,899,153     22,528,650  
Non-redeemable non-controlling interests 3,130,442     2,427,561     362,425  
Total shareholders’ equity 190,899,534     153,326,714     22,891,075  
Commitments and contingencies          
Total liabilities and shareholders’ equity 507,175,310     482,359,553     72,014,387  
                 
                 

ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

   
  Three-month Period Ended
  June 30,
    June 30,     June 30,  
  2021     2022     2022  
  RMB     RMB     USD  
Net revenues 36,760,950     34,045,045     5,082,791  
Cost of revenues 20,808,818     21,921,238     3,272,755  
Gross profit 15,952,132     12,123,807     1,810,036  
           
Operating expenses:          
Research and development 2,729,866     1,854,064     276,804  
Sales and marketing 16,648,618     19,826,163     2,959,968  
General and administrative 20,426,090     16,887,923     2,521,301  
Total operating expenses 39,804,574     38,568,150     5,758,073  
Other operating income, net 5,625     5,505     822  
Loss from operations (23,846,817 )   (26,438,838 )   (3,947,215 )
Other income (expense):          
Investment income 33,542,154          
Interest income, net of interest expenses 294,033     163,305     24,381  
Foreign currency exchange gain (loss), net (244,406 )   8,702     1,299  
Income (loss) before income taxes 9,744,964     (26,266,831 )   (3,921,535 )
Income tax benefit (3,687,455 )   (4,071,305 )   (607,830 )
Net income (loss) 13,432,419     (22,195,526 )   (3,313,705 )
Net loss attributable to redeemable non-controlling interests (277,089 )        
Net loss attributable to non-redeemable non-controlling interests (435,626 )   (125,499 )   (18,737 )
Net income (loss) attributable to ACG 14,145,134     (22,070,027 )   (3,294,968 )
           
Other comprehensive income (loss):          
Foreign currency translation adjustment, net of nil income taxes (133,390 )   358,766     53,562  
Comprehensive income (loss) attributable to ACG 14,011,744     (21,711,261 )   (3,241,406 )
           
Basic and diluted earnings (losses) per common share attributable to ACG 0.21     (0.35 )   (0.05 )
Basic and diluted earnings (losses) per ADS attributable to ACG 0.42     (0.70 )   (0.10 )
                 
                 

ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

   
  Six-month Period Ended
  June 30,     June 30,     June 30,  
  2021     2022     2022  
  RMB     RMB     USD  
Net revenues 74,350,495     76,183,674     11,373,923  
Cost of revenues 43,524,823     44,788,476     6,686,743  
Gross profit 30,825,672     31,395,198     4,687,180  
           
Operating expenses:          
Research and development 5,246,592     3,537,134     528,080  
Sales and marketing 29,971,605     34,478,427     5,147,494  
General and administrative 42,690,348     38,601,411     5,763,039  
Total operating expenses 77,908,545     76,616,972     11,438,613  
Other operating income, net 11,863     11,010     1,644  
Loss from operations (47,071,010 )   (45,210,764 )   (6,749,789 )
Other income (expense):          
Investment income 33,542,154          
Interest income, net of interest expenses 574,772     372,470     55,608  
Foreign currency exchange gain (loss), net (156,786 )   9,893     1,477  
Loss before income taxes (13,110,870 )   (44,828,401 )   (6,692,704 )
Income tax benefit (6,407,151 )   (6,201,617 )   (925,877 )
Net loss (6,703,719 )   (38,626,784 )   (5,766,827 )
Net loss attributable to redeemable non-controlling interests (714,121 )        
Net loss attributable to non-redeemable non-controlling interests (1,090,975 )   (702,881 )   (104,937 )
Net loss attributable to ACG (4,898,623 )   (37,923,903 )   (5,661,890 )
           
Other comprehensive income (loss):          
Foreign currency translation adjustment, net of nil income taxes (42,891 )   324,278     48,413  
Comprehensive loss attributable to ACG (4,941,514 )   (37,599,625 )   (5,613,477 )
           
Basic and diluted losses per common share attributable to ACG (0.11 )   (0.60 )   (0.09 )
Basic and diluted losses per ADS attributable to ACG (0.22 )   (1.20 )   (0.18 )
                 
                 

RECONCILIATIONS OF NON-GAAP MEASURES
TO THE MOST COMPARABLE GAAP MEASURES

       
  Three-month Period Ended   Six-month Period Ended
  June 30,   June 30,     June 30,     June 30,
  2021   2022     2021     2022  
  RMB   RMB   RMB   RMB
GAAP net income (loss) attributable to ACG 14,145,134   (22,070,027 )   (4,898,623 )   (37,923,903 )
Share-based compensation expenses 264,067   504,444     489,298     739,134  
Foreign currency exchange loss (gain), net 244,406   (8,702 )   156,786     (9,893 )
Non-GAAP net income (loss) attributable to ACG 14,653,607   (21,574,285 )   (4,252,539 )   (37,194,662 )
               
GAAP earnings (losses) per common share attributable to ACG              
Basic and diluted 0.21   (0.35 )   (0.11 )   (0.60 )
               
Non-GAAP earnings (losses) per common share attributable to ACG              
Basic and diluted 0.22   (0.34 )   (0.10 )   (0.59 )



source https://netdace.com/globenewswire/ata-creativity-global-reports-2022-second-quarter-financial-results/