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ATA Creativity Global Reports 2019 Third Quarter Financial Results, Delivered Credit Hour Growth of 16.1% Year over Year

November 14, 2019

BEIJING, Nov. 14, 2019 (GLOBE NEWSWIRE) -- ATA Creativity Global (“ACG” or the “Company”, Nasdaq: AACG), a company focused on providing students with quality educational experiences and services in China and abroad, today announced preliminary unaudited financial results for the three months ended September 30, 2019.

2019 Third Quarter and Subsequent Operating Highlights and Certain Events

-- On August 6, 2019, the Company announced that it had closed the acquisition of 87.46% equity interest in Beijing Huanqiuyimeng Education Consultation Corp. (“Huanqiuyimeng”), a leading provider of educational services for students in China interested in applying for overseas art study. On the same day, control of Huanqiuyimeng transitioned to ACG. On October 17, 2019, the Company announced that it had closed the acquisition of the remaining 12.54% equity interest in Huanqiuyimeng. As a result, Huanqiuyimeng is now a wholly owned subsidiary of ACG. Details of the Huanqiuyimeng acquisition can be found in the Forms 6-K filed by ACG on August 6, 2019, and October 17, 2019. -- At the Annual General Meeting of Shareholders held on September 12, 2019, shareholders approved the change of the Company’s name to ATA Creativity Global. The Company’s stock ticker symbol also changed to “AACG” with its American Depositary Shares commencing trading under the new symbol as of market open on October 17, 2019. These changes mark a new beginning for the Company with its recent acquisition of Huanqiuyimeng. -- For the period beginning August 6, 2019, when control of Huanqiuyimeng transitioned to ACG, to September 30, 2019 (the “Partial Third Quarter Period”), student enrollment was 838, of which 550 were enrolled in the Portfolio Training Program (as defined below). Approximately 35,000 credit hours (i.e., the standard unit measuring educational credit for the Portfolio Training Program; each credit hour roughly equals to one hour of time committed) were delivered during the Partial Third Quarter Period. -- Net revenues of RMB42.4 million (US$5.9 million), driven by revenue contributions from Huanqiuyimeng’s portfolio training and other education services businesses -- Net loss from continuing operations attributable to ACG of RMB24.4 million (US$3.4 million), compared to RMB8.9 million in the prior-year period, due to increased operating expenses -- RMB105.1 million (US$14.7 million) in cash and cash equivalents as of September 30, 2019

Management CommentaryMr. Kevin Ma, Chairman and CEO, stated, “We are pleased that Huanqiuyimeng is now a wholly owned subsidiary of ATA Creativity Global, our Company’s new name that reflects the direction in which we are heading. Our third quarter 2019 results incorporate about two months of operating and financial results from Huanqiuyimeng. The acquisition of Huanqiuyimeng marks the first major step forward in our long-term strategy of becoming a leading international education service provider with a special focus on the rapidly expanding art and creativity education market. Huanqiuyimeng has earned its reputation for excellence in this particular area, and we look forward to serving more students all over China who are passionate about pursuing a future in art and other creative fields.”

OutlookMr. Jun Zhang, President of ACG, stated, “In the fourth quarter of 2019, we are focused on integrating Huanqiuyimeng operations and personnel into the listed company (i.e., ACG) with a goal of accelerating enrollment in 2020. We continue working closely with Huanqiuyimeng management on prioritizing growth initiatives and look forward to using our resources to help Huanqiuyimeng efficiently scale its operations through geographic expansion, new product offerings, and new partnerships. We are well positioned to take advantage of the growing demand from Chinese students and young professionals focused on art and creative fields, as well as overseas educational experiences.”

Operating Review

Enrollment Update

Please note that the following information reflects enrollment information for the Partial Third Quarter Period beginning from August 6, 2019, to September 30, 2019, as control of Huanqiuyimeng transitioned to ACG on August 6, 2019.

Huanqiuyimeng student enrollment for the Partial Third Quarter Period was 838, of which 550 were enrolled in the portfolio training program, Huanqiuyimeng’s main line of business that primarily consists of one-on-one training for students focused in arts and creative studies (the “Portfolio Training Program”). The Portfolio Training Program consists of time-based programs, for which revenue is recognized per credit hour delivered, and project-based programs, for which projects are carried out through the delivery of credit hours but revenue is recognized per project milestone completed within the contract term. Students who elect the time-based program enroll in a certain number of consulting/training hours over the contract term, whereas students who elect the project-based program have no consulting/training hour constraint over the contract term but will be guided through a certain number of projects needed to complete a portfolio, which will be predetermined and agreed upon the signing of a contract. 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.

During the Partial Third Quarter, 288 students were enrolled in Huanqiuyimeng’s other programs, which mainly consist of educational travel and language preparation programs.

A total of 34,988 credit hours were delivered during the Partial Third Quarter Period, of which 22,708 credit hours were delivered for time-based programs and 12,280 credit hours were delivered for project-based programs.

The following is a summary of the credit hours delivered for the Portfolio Training Program, for the period beginning August 6, 2019, to September 30, 2019, compared to those for the prior-year period:

Aug. 6, 2019 – Aug. 6, 2018 – Sept. 30, 2018 % Growth Sept. 30, 2019 -------------- ----------------------------- -------- No. of Credit No. of Credit Hours Hours --------------------- -------------- ----------------------------- -------- Time-based Program 22,708 25,336 (10.4%) Project-based Program 12,280 4,798 155.9% Total 34,988 30,134 16.1%

2019 Third Quarter Financial Review

Note: Impact of Huanqiuyimeng Acquisition on and Certain Adjustments to the Company’s Financial StatementsFollowing the completion of the acquisition whereby Huanqiuyimeng became a wholly owned subsidiary of the Company, the financial results presented in this press release incorporate financial contributions from Huanqiuyimeng for the Partial Third Quarter Period.

Certain line items in the condensed consolidated statements of comprehensive income (loss) for the three months and nine months ended September 30, 2018, in this press release have been revised as a result of adjustments made in the Company’s annual report for the fiscal year ended December 31, 2018. These revisions were mainly made pursuant to the accounting treatment of discontinued operations, under which the Company accounted for the sale of business of ATA Online (Beijing) Education Technology Co., Ltd, or ATA Online, a former subsidiary of the Company. The income from discontinued operations, net of income taxes, recorded in the three months ended September 30, 2019, was to account for the contingencies that arose pursuant to terms in the sale of business of ATA Online.

GAAP Results ACG’s total net revenues for the third quarter of 2019 were RMB42.4 million (US$5.9 million), compared to RMB1.0 million in the prior-year period, driven primarily by revenue contributions from the recently completed acquisition of Huanqiuyimeng. Revenues from the portfolio training segment were RMB29.3 million, or 69.0% of total net revenues, during the period. Revenues from the other education services segment and K-12 business were RMB13.1 million, or 31.0% of total net revenues.

Gross profit for the third quarter of 2019 was RMB16.6 million (US$2.3 million), compared to gross loss of RMB0.5 million in the prior-year period. Gross margin was 39.1% during the period, compared to negative gross margin of 46.0% in the prior-year period, prior to the acquisition of Huanqiuyimeng.

Total operating expenses for the third quarter of 2019 were RMB41.0 million (US$5.7 million), compared to RMB11.4 million in the prior-year period, primarily due to increased selling, general and administrative (SG&A) expenses of RMB26.8 million related to the newly acquired Huanqiuyimeng operations. The Company also incurred increased operating expense, which primarily consisted of professional and consulting fees of RMB1.5 million related to the acquisition of Huanqiuyimeng as well as higher share-based compensation expense of RMB1.8 million related to new options granted during the period.

Loss from continuing operations for the third quarter of 2019 was RMB24.3 million (US$3.4 million), compared to RMB10.9 million in the prior-year period as a result of the increased operating expenses mentioned above.

Net loss from continuing operations attributable to ACG for the third quarter of 2019 was RMB24.4 million (US$3.4 million), compared to RMB8.9 million in the prior-year period.

For the three months ended September 30, 2019, basic and diluted losses from continuing operations per common share attributable to ACG were both RMB0.49 (US$0.07), compared to RMB0.52 for the prior-year period. Basic and diluted losses from continuing operations per ADS attributable to ACG were both RMB0.98 (US$0.14), compared to RMB1.04 in the prior-year period.

Non-GAAP Measures

Adjusted net loss attributable to ACG for the third quarter of 2019, which excludes share-based compensation expense and foreign currency exchange gain (non-GAAP), was RMB22.5 million (US$3.1 million), compared to adjusted net income of RMB1.0 billion 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 (non-GAAP) for the third quarter of 2019, were both RMB0.46 (US$0.06). Basic and diluted losses per ADS attributable to ACG excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for the third quarter of 2019 were both RMB0.92 (US$0.12), compared to basic and diluted earnings per ADS attributable to ACG (non-GAAP) of RMB44.00 in the prior-year period.

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 both basic and diluted earnings per ADS for the third quarter ended September 30, 2019, was 26.4 million. Each ADS represents two common shares.

Balance Sheet Highlights

As of September 30, 2019, ACG’s cash and cash equivalents were RMB105.1 million (US$14.7 million), working capital deficit was RMB141.0 million (US$19.7 million), and total shareholders’ equity was RMB309.9 million (US$43.4 million); compared to RMB190.6 million, working capital of RMB193.6 million, and RMB276.2 million, respectively, as of December 31, 2018.

Conference Call and Webcast Information (With Accompanying Presentation)

ACG will host a conference call at 8 p.m. Eastern Time on Thursday, November 14, 2019, during which management will discuss the results of the quarter ended September 30, 2019. Investors are welcome to send any questions in advance of the conference call either through the webcast portal or via email to the Company’s contacts listed below.

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 (888) 339-2688 International (Toll): +1 (617) 847-3007

Toll-Free Local Access China: (800) 990 1344 (400) 881 1630 Hong Kong: 3002 1672 Participant Passcode: 76809102

A live webcast of the conference call can be accessed at the investor relations section of ACG’s website at www.atai.net.cn or by clicking the following link: https://www.webcaster4.com/Webcast/Page/274/32208.

An accompanying slide presentation in PDF format will also be made available 30 minutes prior to the conference call on the same investor relations section of ACG’s website. 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 on the investor relations section of ACG’s website and will remain available for 90 days.

About ATA Creativity Global

ATA Creativity Global is focused on providing quality educational experiences and services for students throughout China and abroad. ACG aims to offer online, on-campus, and other education programs through a network of global education partners. 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 strategy of becoming a leading international education service provider; ACG’s plans for mergers and acquisitions generally; ACG’s plan and anticipated benefits to develop international education services and carry out new business; intended benefits of ACG’s acquisition of Huanqiuyimeng; the market potential of international art and creativity education; ACG’s plan for geographic expansion, new product offerings and new partnerships; the ability of ACG and Huanqiuyimeng to cooperate and integrate effectively; and ACG’s growth strategy and subsequent business activities.

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 leverage its existing competency-focused assessment and education service capabilities, its ability to integrate the acquired business, 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, 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, 2018, 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, 2018.

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 ended September 30, 2019, into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB7.1477 to US$1.00, the noon buying rate as of September 30, 2019, 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. Amy Tung, CFO Carolyne Y. Sohn, Vice President +86 10 6518 1133 x 5518 415-568-2255 amytung@atai.net.cn csohn@equityny.com Adam Prior, Senior Vice President 212-836-9606 aprior@equityny.com

ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS December 31, September 30, September 30, 2018 2019 2019 ------------ - ------------- - ------------- - RMB RMB USD ASSETS Current assets: Cash and cash equivalents 190,586,342 105,100,214 14,704,061 Accounts receivable, net 439,783 879,279 123,016 Prepaid expenses and other current assets 7,836,092 33,927,390 4,746,616 Loan receivable 14,532,685 15,751,832 2,203,762 Total current assets 213,394,902 155,658,715 21,777,455 ------------ - ------------- - ------------- - Long-term investments 66,390,898 66,621,699 9,320,718 Goodwill — 237,325,488 33,203,057 Property and equipment, net 37,430,741 42,933,839 6,006,665 Intangible assets, net 17,122,578 154,718,798 21,645,956 Right-of-use assets — 36,543,284 5,112,593 Deferred income tax assets — 1,030,738 144,206 Other non-current assets 799,652 4,598,474 643,350 Total assets 335,138,771 699,431,035 97,854,000 ------------ - ------------- - ------------- - LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other payables 18,111,939 37,888,563 5,300,804 Short-term loan — 4,991,000 698,267 Purchase consideration payable — 19,642,082 2,748,028 Lease liabilities-current — 19,761,001 2,764,666 Deferred revenues 1,633,976 214,418,771 29,998,289 Total current liabilities 19,745,915 296,701,417 41,510,054 ------------ - ------------- - ------------- - Other non-current liabilities — 11,053,791 1,546,482 Deferred income tax liabilities — 37,738,982 5,279,878 ------------ - ------------- - ------------- - Total liabilities 19,745,915 345,494,190 48,336,414 ------------ - ------------- - ------------- - Mezzanine equity-redeemable non-controlling interests 39,208,619 44,031,794 6,160,274 Shareholders’ equity: Common shares 3,534,871 4,290,814 600,307 Treasury shares (27,737,073 ) (27,737,073 ) (3,880,559 ) Additional paid-in capital 410,195,990 491,028,196 68,697,371 Accumulated other comprehensive loss (38,288,364 ) (36,391,218 ) (5,091,319 ) Retained earnings (accumulated deficit) (71,888,585 ) (126,712,456 ) (17,727,724 ) ------------ - ------------- - ------------- - Total shareholders’ equity attributable to ACG 275,816,839 304,478,263 42,598,076 ------------ - ------------- - ------------- - Non-redeemable non-controlling interests 367,398 5,426,788 759,236 ------------ - ------------- - ------------- - Total shareholders’ equity 276,184,237 309,905,051 43,357,312 ------------ - ------------- - ------------- - Commitments and contingencies Total liabilities, mezzanine equity and shareholders’ 335,138,771 699,431,035 97,854,000 equity ------------ - ------------- - ------------- -

ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME (LOSS) Three-month Period Ended ------------------------------------------------- September 30, September 30, September 30, 2018 2019 2019 ------------- - ------------- - ------------- - RMB RMB USD Net revenues 1,008,018 42,417,782 5,934,466 Cost of revenues 1,471,567 25,830,568 3,613,829 ------------- - ------------- - ------------- - Grossprofit (loss) (463,549 ) 16,587,214 2,320,637 Operating expenses: Research and development 3,912,298 2,993,183 418,762 Sales and marketing 1,396,596 14,024,707 1,962,129 General and administrative 6,099,254 23,981,216 3,355,095 Total operating expenses 11,408,148 40,999,106 5,735,986 ------------- - ------------- - ------------- - Other operating income, net 961,613 105,184 14,716 ------------- - ------------- - ------------- - Lossfrom continuing operations (10,910,084 ) (24,306,708 ) (3,400,633 ) Other income (expense): Investment loss — (7,850 ) (1,098 ) Impairment loss from investment — (5,919,198 ) (828,126 ) Interest income, net of interest expenses 634,102 504,420 70,571 Foreign currency exchange gain (loss), net 572,019 (35,926 ) (5,026 ) Loss from continuing operationsbefore income taxes (9,703,963 ) (29,765,262 ) (4,164,312 ) Income tax expense (benefit) — (2,317,889 ) (324,285 ) ------------- - ------------- - ------------- - Loss from continuing operations, net of income taxes (9,703,963 ) (27,447,373 ) (3,840,027 ) Discontinued operations: Income from discontinued operations, net of income taxes 1,024,563,840 — — Net income (loss) 1,014,859,877 (27,447,373 ) (3,840,027 ) ------------- - ------------- - ------------- - Net loss attributable to redeemable non-controlling interests from (760,628 ) continuing operations (832,022 ) (116,404 ) Net loss attributable to non-redeemable non-controlling interests from continuing operations — (2,210,921 ) (309,319 ) Net income attributable to non-redeemable non-controlling 174,113 — — interests from discontinued operations Net income (loss)attributable to ACG 1,015,446,392 (24,404,430 ) (3,414,304 ) Net loss from continuing operationsattributable to ACG (8,943,335 ) (24,404,430 ) (3,414,304 ) Net income from discontinued operationsattributable to 1,024,389,727 — — ACG Other comprehensive income (loss): Foreign currency translation adjustment, net of nil (11,041,461 ) 1,767,000 247,212 income taxes Comprehensive income (loss) attributable to ACG 1,004,404,931 (22,637,430 ) (3,167,092 ) ------------- - ------------- - ------------- - Basic and diluted earnings (losses) per common share 21.85 (0.49 ) (0.07 ) attributable to ACG Basic and diluted earnings (losses) per ADS attributable 43.70 (0.98 ) (0.14 ) to ACG Basic and diluted losses from continuing operations (0.52 ) (0.49 ) (0.07 ) per common share attributable to ACG Basic and diluted earnings from discontinued operations 22.37 — — per common share attributable to ACG Basic and diluted losses from continuing operations (1.04 ) (0.98 ) (0.14 ) per ADS attributable to ACG Basic and diluted earnings from discontinued operations 44.74 — — per ADS attributable to ACG

ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME (LOSS) Nine-month Period Ended ------------------------------------------------- September 30, September 30, September 30, 2018 2019 2019 ------------- - ------------- - ------------- - RMB RMB USD Net revenues 1,149,441 45,400,375 6,351,746 Cost of revenues 4,042,455 28,429,582 3,977,445 ------------- - ------------- - ------------- - Grossprofit (loss) (2,893,014 ) 16,970,793 2,374,301 Operating expenses: Research and development 12,473,241 9,354,972 1,308,809 Sales and marketing 3,671,177 17,203,718 2,406,889 General and administrative 30,744,473 50,870,428 7,117,035 Total operating expenses 46,888,891 77,429,118 10,832,733 ------------- - ------------- - ------------- - Other operating income, net 2,814,544 562,085 78,639 ------------- - ------------- - ------------- - Lossfrom continuing operations (46,967,361 ) (59,896,240 ) (8,379,793 ) Other income (expense): Investment income — (7,850 ) (1,098 ) Impairment loss from investment — (5,919,198 ) (828,126 ) Change in fair value of long-term investment 2,750,000 — — Interest income, net of interest expenses 1,086,783 2,604,551 364,390 Foreign currency exchange gain (loss), net 990,459 (21,174 ) (2,962 ) Loss from continuing operationsbefore income taxes (42,140,119 ) (63,239,911 ) (8,847,589 ) Income tax expense (benefit) — (2,317,889 ) (324,285 ) ------------- - ------------- - ------------- - Loss from continuing operations, net of income taxes (42,140,119 ) (60,922,022 ) (8,523,304 ) Discontinued operations: Income from discontinued operations, net of income taxes 918,654,979 4,894,198 684,723 ------------- - ------------- - ------------- - Net income (loss) 876,514,860 (56,027,824 ) (7,838,581 ) ------------- - ------------- - ------------- - Net loss attributable to redeemable non-controlling interests from continuing operations (2,237,364 ) (1,928,861 ) (269,858 ) Net loss attributable to non-redeemable non-controlling interests from continuing operations — (3,527,129 ) (493,463 ) Net loss attributable to non-redeemable non-controlling (10,608 ) — — interests from discontinued operations Net income (loss)attributable to ACG 878,762,832 (50,571,834 ) (7,075,260 ) Net loss from continuing operationsattributable to ACG (39,902,755 ) (55,466,032 ) (7,759,983 ) Net income from discontinued operationsattributable to 918,665,587 4,894,198 684,723 ACG Other comprehensive income (loss): Foreign currency translation adjustment, net of nil (11,282,972 ) 1,897,146 265,420 income taxes ------------- - ------------- - ------------- - Comprehensive income (loss) attributable to ACG 867,479,860 (48,674,688 ) (6,809,840 ) ------------- - ------------- - ------------- - Basic and diluted earnings (losses) per common share 18.80 (1.12 ) (0.16 ) attributable to ACG Basic and diluted earnings (losses) per ADS attributable 37.60 (2.24 ) (0.32 ) to ACG Basic and diluted losses from continuing operations (1.26 ) (1.22 ) (0.17 ) per common share attributable to ACG Basic and diluted earnings from discontinued operations 20.06 0.10 0.01 per common share attributable to ACG Basic and diluted losses from continuing operations (2.52 ) (2.44 ) (0.34 ) per ADS attributable to ACG Basic and diluted earnings from discontinued operations 40.12 0.20 0.02 per ADS attributable to ACG

Three-month Period Ended Nine-monthPeriod Ended ------------------------------ --------------------------- September30, September30, September30, September30, 2018 2019 2018 2019 -------------- ------------- ------------ ------------- RMB RMB RMB RMB GAAP net income (loss) attributable to ACG 1,015,446,392 (24,404,430) 878,762,832 (50,571,834) Share-based compensation expenses 8,301,400 1,880,228 13,605,254 4,782,335 Foreign currency exchange gain (loss), net (1,493,037) 35,926 (6,250,539) 21,174 ------------- ------------ ----------- ------------ Non-GAAP net income (loss) attributable to ACG 1,022,254,755 (22,488,276) 886,117,547 (45,768,325) GAAP earnings (losses) per common share attributable to ACG Basic and diluted 21.85 (0.49) 18.80 (1.12) Non-GAAP earnings (losses) per common share attributable to ACG Basic and diluted 22.00 (0.46) 18.96 (1.02)