2022 FIRST QUARTER EARNINGS CALL

May 12, 2022

Speakers
Mr. Kevin Ma, Chairman and CEO
Mr. Jun Zhang, President
Mr. Ruobai Sima, CFO
SAFE HARBOR
• This presentation was developed by ATA Creativity Global (“ACG” or the “Company”) and is intended to be used solely in connection with
ACG’s earnings call for the three months ended March 31, 2022. This presentation is not to be construed as an offer to sell or the solicitation
of an offer to buy the Company’s securities. This presentation is based upon information available to the public, as well as other information
from sources which management believes to be reliable, but is not guaranteed by the Company as being accurate nor does it purport to be
complete. The forward-looking statements contained in this presentation are made only of this date, and ACG is under no obligation to revise
or update these forward-looking statements.
• This presentation may contain forward-looking statements, and management may make additional forward-looking statements in response
to your questions. Such written and oral disclosures are made pursuant to the Safe Harbor provision of the Private Securities Litigation
Reform Act of 1995.
• All statements other than statements of historical fact in this presentation are forward-looking statements, including but not limited to 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 ACG’s portfolio training programs and other education services mainly
including research-based learning and overseas study counselling services; the impact of COVID-19 on ACG and its operations; and ACG’s
plan and anticipated benefits of the measures implemented in response to COVID-19.
• Although we believe our expectations expressed in such forward-looking statements are reasonable, we cannot assure you that they will be
realized. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to
differ materially from the anticipated results, and therefore we refer you to a more detailed discussion of the risks and uncertainties in the
Company’s filings with the Securities & Exchange Commission.

Note: All U.S. dollar amounts in this presentation, relating to the financial results for the three months ended March 31, 2022, are converted from RMB using an
exchange rate of 6.3393 RMB:1 USD. All historical conversions are accurate as of the time reported, unless otherwise noted. The Company reports its financial results
under U.S. GAAP in RMB, and all percentages calculated in the presentation are based on RMB unless otherwise noted.

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OVERVIEW
ATA Creativity Global (ACG) is an international educational services company focused on providing
quality learning experiences that cultivate and enhance students’ creativity. ACG offers a wide
range of education services consisting primarily of portfolio training, research-based learning,
overseas study counselling and other educational services through its training center network.

ACG At-A-Glance
Over 20 years of experience in testing technologies
Ticker NASDAQ: AACG
and delivery services, unrivaled knowledge of
China’s assessment/education market IPO January 2008
(Underwriters: Merrill Lynch, Piper Jaffray)

Auditor KPMG (since IPO)

Possesses industry relationships with educational
institutions and enterprises all over China Fiscal Year End December 31

Recent Stock Price $1.08 (as of 5/10/2022)

Established reputation in learning technologies, Market Cap $33.7 million (as of 5/10/2022)
committed to providing students with quality
educational opportunities ADSs Outstanding 31.4 million

Book Value Per ADS $0.88

All information as of 3/31/2022 unless otherwise noted.

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FIRST
QUARTER
2022
HIGHLIGHTS
Ruobai Sima, Chief Financial Officer

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ENROLLMENT UPDATE
• Portfolio training programs are ACG’s main line of business, consisting of time-based
programs and project-based programs.
• Revenue is recognized proportionately per credit hour delivered.

First Quarter First Quarter

%
Ended Ended
Change
March 31, 2022 March 31, 2021
No. of No. of
Credit Hours Credit Hours
Time-based Program 13,070 16,135 (19.0%)
Project-based Program 14,424 11,730 23.0%
Total 27,494 27,865 (1.3%)

Total student enrollment was 997, out of which 537 were enrolled in portfolio training
programs, during the first quarter of 2022.

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KEY FINANCIAL HIGHLIGHTS

RMB42.1 Million
Total net revenues, up 12.1% from RMB37.6 million in Q1 2021
Driven primarily by growth in portfolio training and overseas study counselling services

45.7%
Gross margin, compared to 39.6% in Q1 2021
Improvement attributable to improved operating efficiencies from the ongoing shift of ACG’s portfolio
training program mix toward project-based programs and related cost optimization efforts

RMB15.9 Million
Net loss attributable to ACG, compared to RMB19.0 million in Q1 2021

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SUMMARY FINANCIAL RESULTS – Q1

Q1 2021 Q1 2022 Q1 2021 Q1 2022

In 000s except margin and per ADS data RMB USD

Net Revenues 37,590 42,139 $5,737 $6,647

Cost of Revenues 22,716 22,868 $3,467 $3,607

Gross Profit 14,874 19,271 $2,270 $3,040

Gross Margin 39.6% 45.7% 39.6% 45.7%

Operating Expenses 38,104 38,049 $5,816 $6,002

Loss from Operations (23,224) (18,772) ($3,545) ($2,961)

Net Loss Attributable to ACG (19,044) (15,854) ($2,907) ($2,501)

Diluted Losses per ADS Attributable to ACG (0.66) (0.50) ($0.10) ($0.08)

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BALANCE SHEET HIGHLIGHTS

A solid balance sheet will allow ACG to execute its growth strategy.

12/31/2021 3/31/2022 12/31/2021 3/31/2022

In 000s RMB USD
Cash and Cash Equivalents 71,339 62,414 $11,195 $9,846
Total Current Assets 75,407 69,396 $11,833 $10,947
Total Assets 507,175 493,814 $79,587 $77,897
Total Current Liabilities 267,979 274,275 $42,052 $43,266
Total Liabilities 316,275 319,149 $49,631 $50,344
Shareholders’ Equity 190,900 174,665 $29,956 $27,553

Total Liabilities & Shareholders’ Equity 507,175 493,814 $79,587 $77,897

USD$9.8 million in cash and cash equivalents as of 3/31/2022

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2022
OUTLOOK &
GROWTH
STRATEGY
Kevin Ma, Chairman and CEO
Jun Zhang, President

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GLOBAL GROWTH INITIATIVES

Geographic ‒ Domestic: Accelerate growth of existing centers, open new centers

1
growth ‒ Overseas: Establish overseas centers

‒ Research-based Learning Services: Themed art educational

tours (overseas and domestic), online and offline academic
2 Product workshops, bootcamps, etc.
expansion
‒ Institutional Partnerships: Art classes in partnership schools
‒ Overseas Study Counselling Services: Assist students during
the admission process
‒ Other Educational Services: Language training, junior art
education, in-school classes and other related services

Business model ‒ Increase/establish partnerships

3
expansion ‒ Establish overseas study centers

Investment ‒ Launch collaborations and M&A

4
growth
‒ Establish synergies with valuable companies

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GROWTH STRATEGY
ACG plans to leverage its expertise in assessment/education technologies and services, as well as
extensive industry relationships, to scale the growth of well-established education enterprises to
expand its presence in China and beyond

Increase outreach to support a growing population of students:

‒ Those seeking overseas study experiences to whom we can offer portfolio training and overseas study
counselling services (particularly those applying for art majors)
‒ Those looking to enhance their capabilities outside academics, using art as a tool
‒ Those seeking out-of-classroom learning experiences to whom we can offer research-based learning programs

Continue exploring M&A opportunities within the education sector

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 At ATA Creativity Global
Ruobai Sima, CFO
+86 (10) 6518 1133 x 5518
[email protected]

Investor Relations Counsel:

The Equity Group
Carolyne Y. Sohn
(415) 568-2255
[email protected]

Alice Zhang
(212) 836-9610
[email protected]