Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | ATA Creativity Global |
Entity Central Index Key | 0001420529 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Entity Common Stock, Shares Outstanding | 63,459,214 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Title of 12(b) Security | American Depositary Shares, each representing two common shares, par value $0.01 per share |
Trading Symbol | AACG |
Security Exchange Name | NASDAQ |
Entity File Number | 001-33910 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 1/F East Gate, Building No. 2 |
Entity Address, Address Line Two | Jian Wai Soho |
Entity Address, Address Line Three | No. 39 Dong San Huan Zhong Road |
Entity Address, City or Town | Chao Yang District, Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100022 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 1/F East Gate, Building No. 2 |
Entity Address, Address Line Two | Jian Wai Soho |
Entity Address, Address Line Three | No. 39 Dong San Huan Zhong Road |
Entity Address, City or Town | Chao Yang District, Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100022 |
Contact Personnel Name | Amy Tung |
City Area Code | 8610 |
Local Phone Number | 8610-6518-1133 |
Contact Personnel Fax Number | 8610-5869-8106 |
Consolidated Balance Sheets
Consolidated Balance Sheets | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 154,197,758 | $ 22,149,122 | ¥ 190,586,342 |
Accounts receivable, net | 214,591 | 30,824 | 439,783 |
Subscription receivable | 8,530,931 | 1,225,392 | |
Prepaid expenses and other current assets | 16,490,369 | 2,368,693 | 7,836,092 |
Loan receivable, net | 4,126,502 | 592,735 | 14,532,685 |
Total current assets | 183,560,151 | 26,366,766 | 213,394,902 |
Long-term investments | 45,726,391 | 6,568,185 | 66,390,898 |
Property and equipment, net | 42,070,794 | 6,043,091 | 37,430,741 |
Intangible assets, net | 135,599,770 | 19,477,688 | 17,122,578 |
Goodwill | 200,478,795 | 28,796,977 | 0 |
Other non-current assets | 16,402,750 | 2,356,108 | 799,652 |
Right-of-use assets | 40,786,291 | 5,858,584 | |
Deferred income tax assets | 11,464,891 | 1,646,829 | |
Total assets | 676,089,833 | 97,114,228 | 335,138,771 |
Current liabilities: | |||
Accrued expenses and other payables (including accrued expenses and other payables of VIE without recourse to the Company of RMB 455,577 and nil as of December 31, 2018 and 2019, respectively) | 47,747,054 | 6,858,437 | 18,111,939 |
Short-term loan | 4,991,000 | 716,912 | |
Payable for business acquisition (including payable for business acquisition of VIE without recourse to the Company of nil and RMB 19,642,082 as of December 31, 2018 and 2019, respectively) | 19,642,082 | 2,821,409 | |
Lease liabilities-current | 20,556,017 | 2,952,687 | |
Deferred revenues | 171,880,131 | 24,689,036 | 1,633,976 |
Total current liabilities | 264,816,284 | 38,038,481 | 19,745,915 |
Other non-current liabilities | 12,500,120 | 1,795,530 | |
Deferred income tax liabilities | 48,241,809 | 6,929,502 | |
Total liabilities | 325,558,213 | 46,763,513 | 19,745,915 |
Mezzanine equity-redeemable non-controlling interests | 44,896,428 | 6,448,968 | 39,208,619 |
Shareholders’ equity: | |||
Common shares: Par value USD 0.01, authorized: 500,000,000 shares Issued: 48,177,742 and 64,044,572 shares as of December 31, 2018 and 2019,respectively Outstanding:45,796,886 and 62,357,078 shares as of December 31, 2018 and 2019 | 4,692,312 | 674,008 | 3,534,871 |
Treasury shares—585,358 common shares as of December 31, 2018 and 2019, at cost | (27,737,073) | (3,984,181) | (27,737,073) |
Additional paid-in capital | 560,814,066 | 80,555,900 | 410,195,990 |
Accumulated other comprehensive loss | (37,478,167) | (5,383,402) | (38,288,364) |
Accumulated deficits | (200,151,065) | (28,749,902) | (71,888,585) |
Total shareholders’ equity attributable to ATA Creativity Global | 300,140,073 | 43,112,423 | 275,816,839 |
Non-redeemable non-controlling interests | 5,495,119 | 789,324 | 367,398 |
Total shareholders’ equity | 305,635,192 | 43,901,747 | 276,184,237 |
Commitments and contingencies | |||
Total liabilities, mezzanine equity and shareholders’ equity | ¥ 676,089,833 | $ 97,114,228 | ¥ 335,138,771 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018$ / shares |
Statement Of Financial Position [Abstract] | ||||
Accrued expenses and other payables of VIE without recourse to the Company | ¥ | ¥ 455,577 | |||
Payable for business acquisition of VIE without recourse to the Company | ¥ | ¥ 19,642,082 | |||
Common shares, Par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Common shares, authorized shares | 500,000,000 | 500,000,000 | ||
Common shares, Issued shares | 64,044,572 | 48,177,742 | ||
Common shares, Outstanding shares | 62,357,078 | 45,796,886 | ||
Treasury shares, number of common shares | 585,358 | 585,358 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017CNY (¥)¥ / shares | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018CNY (¥)¥ / shares | |
Income Statement [Abstract] | ||||
Net revenues | ¥ 5,185,822 | ¥ 97,770,167 | $ 14,043,806 | ¥ 1,338,592 |
Cost of revenues | 3,785,865 | 61,914,502 | 8,893,462 | 4,251,451 |
Gross profit (loss) | 1,399,957 | 35,855,665 | 5,150,344 | (2,912,859) |
Operating expenses: | ||||
Research and development | 15,415,780 | 11,817,255 | 1,697,442 | 19,594,484 |
Sales and marketing | 4,539,473 | 34,112,212 | 4,899,913 | 5,570,169 |
General and administrative | 40,132,709 | 81,923,516 | 11,767,577 | 43,507,856 |
Impairment loss of intangible assets and other non-current assets | 8,932,439 | 1,283,065 | ||
Provision for loan receivable and other receivables | 17,430,825 | 2,503,781 | ||
Total operating expenses | 60,087,962 | 154,216,247 | 22,151,778 | 68,672,509 |
Other operating income, net | 588,147 | 84,482 | 3,793,418 | |
Loss from continuing operations | (58,688,005) | (117,772,435) | (16,916,952) | (67,791,950) |
Other income (loss): | ||||
Share of losses of equity method investments | (1,395,234) | (7,850) | (1,128) | |
Impairment loss of long-term investments | (15,216,510) | (26,814,507) | (3,851,663) | (6,380,802) |
Change in fair value of long-term investment | 2,750,000 | |||
Interest income, net of interest expenses | 608,405 | 3,281,701 | 471,387 | 2,409,090 |
Foreign currency exchange gains (losses), net | (221,605) | 51,476 | 7,394 | 960,188 |
Total other loss, net | (16,224,944) | (23,489,180) | (3,374,010) | (261,524) |
Loss from continuing operations before income taxes | (74,912,949) | (141,261,615) | (20,290,962) | (68,053,474) |
Income tax benefit | (2,109,096) | (7,149,119) | (1,026,907) | |
Loss from continuing operations, net of income taxes | (72,803,853) | (134,112,496) | (19,264,055) | (68,053,474) |
Discontinued operations: | ||||
Income (loss) from operations of discontinued operations, net of income taxes | 100,640,933 | (18,950,969) | ||
Gain from disposal of discontinued operations, net of income taxes | 4,894,197 | 703,007 | 937,605,948 | |
Income from discontinued operations, net of income taxes | 100,640,933 | 4,894,197 | 703,007 | 918,654,979 |
Net income (loss) | 27,837,080 | (129,218,299) | (18,561,048) | 850,601,505 |
Net loss attributable to redeemable non-controlling interests from continuing operations | (1,444,363) | (2,820,682) | (405,166) | (3,181,199) |
Net loss attributable to non-redeemable non-controlling interests from continuing operations | (4,143,628) | (595,195) | (1,132,602) | |
Net loss attributable to non-redeemable non-controlling interests from discontinued operations | (352,101) | (10,608) | ||
Net income (loss) attributable to ATA Creativity Global | 29,633,544 | (122,253,989) | (17,560,687) | 854,925,914 |
Net loss from continuing operations attributable to ATA Creativity Global | (71,359,490) | (127,148,186) | (18,263,694) | (63,739,673) |
Net income from discontinued operations attributable to ATA Creativity Global | 100,993,034 | 4,894,197 | 703,007 | 918,665,587 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment, net of nil income tax | (2,335,054) | 810,197 | 116,378 | (11,437,409) |
Reclassification adjustment for loss on available-for-sale investment included in net income, net of nil income tax | 553,870 | |||
Total other comprehensive income (loss) | (1,781,184) | 810,197 | 116,378 | (11,437,409) |
Comprehensive income (loss) | 26,055,896 | (128,408,102) | (18,444,670) | 839,164,096 |
Comprehensive loss attributable to redeemable non-controlling interests from continuing operations | (1,444,363) | (2,820,682) | (405,166) | (3,181,199) |
Comprehensive loss attributable to non-redeemable non-controlling interests from continuing operations | (4,143,628) | (595,195) | (1,132,602) | |
Comprehensive loss attributable to non- redeemable non-controlling interests from discontinued operations | (352,101) | (10,608) | ||
Comprehensive income (loss) attributable to ATA Creativity Global | ¥ 27,852,360 | ¥ (121,443,792) | $ (17,444,309) | ¥ 843,488,505 |
Basic and diluted earnings (losses) per common share attributable to ATA Creativity Global | (per share) | ¥ 0.48 | ¥ (2.52) | $ (0.36) | ¥ 18.25 |
Basic and diluted losses from continuing operations per common share attributable to ATA Creativity Global | (per share) | (1.72) | (2.62) | (0.37) | (1.81) |
Basic and diluted earnings from discontinued operations per common share attributable to ATA Creativity Global | (per share) | ¥ 2.20 | ¥ 0.10 | $ 0.01 | ¥ 20.06 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (loss) (Parenthetical) - CNY (¥) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Income tax on foreign currency translation adjustment | ¥ 0 | ¥ 0 | ¥ 0 |
Income tax on reclassification adjustment for loss on available-for-sale investment included in net income | ¥ 0 | ¥ 0 | ¥ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity | CNY (¥)shares | USD ($)shares | Private PlacementCNY (¥) | Total shareholders' equity attributable to ATA Creativity GlobalCNY (¥) | Total shareholders' equity attributable to ATA Creativity GlobalUSD ($) | Total shareholders' equity attributable to ATA Creativity GlobalPrivate PlacementCNY (¥) | Common sharesCNY (¥)shares | Common sharesUSD ($)shares | Common sharesPrivate PlacementCNY (¥)shares | Treasury SharesCNY (¥) | Treasury SharesUSD ($) | Additional paid-in capitalCNY (¥) | Additional paid-in capitalUSD ($) | Additional paid-in capitalPrivate PlacementCNY (¥) | Accumulated other comprehensive lossCNY (¥) | Accumulated other comprehensive lossUSD ($) | Retained earnings (accumulated deficit)CNY (¥) | Retained earnings (accumulated deficit)USD ($) | Non-redeemable non-controlling interestsCNY (¥) | Non-redeemable non-controlling interestsUSD ($) |
Balance at Mar. 31, 2017 | ¥ 392,457,228 | ¥ 391,377,300 | ¥ 3,533,912 | ¥ (27,737,073) | ¥ 402,631,430 | ¥ (25,069,771) | ¥ 38,018,802 | ¥ 1,079,928 | ||||||||||||
Balance (in shares) at Mar. 31, 2017 | shares | 45,782,724 | 45,782,724 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||
Net income (loss) | 29,281,443 | 29,633,544 | 29,633,544 | (352,101) | ||||||||||||||||
Foreign currency translation adjustment, net of nil income tax | (2,335,054) | (2,335,054) | (2,335,054) | |||||||||||||||||
Reclassification adjustment for loss on available-for-sale investment included in net income, net of nil income tax | 553,870 | 553,870 | 553,870 | |||||||||||||||||
Share-based compensation | 15,135,646 | 15,135,646 | 15,135,646 | |||||||||||||||||
Issuance of common shares with net-settlement of employee individual income tax | (188,658) | (188,658) | ¥ 959 | (189,617) | ||||||||||||||||
Issuance of common shares with net-settlement of employee individual income tax (in shares) | shares | 14,162 | 14,162 | ||||||||||||||||||
Special cash dividend (Note 20) | (65,698,571) | (65,698,571) | (27,679,769) | (38,018,802) | ||||||||||||||||
Acquisition of non-redeemable non-controlling interests | 350,000 | 350,000 | ||||||||||||||||||
Disposal of non-redeemable non-controlling interests | (734,531) | (734,531) | ||||||||||||||||||
Redeemable non-controlling interests redemption value accretion (Note 16) | (3,748,639) | (3,748,639) | (3,748,639) | |||||||||||||||||
Balance at Dec. 31, 2017 | 365,072,734 | 364,729,438 | ¥ 3,534,871 | (27,737,073) | 389,897,690 | (26,850,955) | 25,884,905 | 343,296 | ||||||||||||
Balance (in shares) at Dec. 31, 2017 | shares | 45,796,886 | 45,796,886 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||
Net income (loss) | 853,782,704 | 854,925,914 | 854,925,914 | (1,143,210) | ||||||||||||||||
Foreign currency translation adjustment, net of nil income tax | (11,437,409) | (11,437,409) | (11,437,409) | |||||||||||||||||
Share-based compensation | 20,591,899 | 20,591,899 | 20,591,899 | |||||||||||||||||
Issuance of common shares with net-settlement of employee individual income tax | (1,727,040) | (1,727,040) | (1,727,040) | |||||||||||||||||
Exercise of share options | 1,433,441 | 1,433,441 | 1,433,441 | |||||||||||||||||
Special cash dividend (Note 20) | (946,613,862) | (946,613,862) | (946,613,862) | |||||||||||||||||
Disposal of discontinued operations | (332,688) | (332,688) | ||||||||||||||||||
Redeemable non-controlling interests redemption value accretion (Note 16) | (6,085,542) | (6,085,542) | (6,085,542) | |||||||||||||||||
Sale of non-controlling interests (Note 16) | 1,500,000 | 1,500,000 | ||||||||||||||||||
Balance at Dec. 31, 2018 | ¥ 276,184,237 | 275,816,839 | ¥ 3,534,871 | (27,737,073) | 410,195,990 | (38,288,364) | (71,888,585) | 367,398 | ||||||||||||
Balance (in shares) at Dec. 31, 2018 | shares | 45,796,886 | 45,796,886 | 45,796,886 | 45,796,886 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||
Net income (loss) | ¥ (126,397,617) | (122,253,989) | (122,253,989) | (4,143,628) | ||||||||||||||||
Foreign currency translation adjustment, net of nil income tax | 810,197 | $ 116,378 | 810,197 | 810,197 | ||||||||||||||||
Share-based compensation | 4,809,454 | 4,809,454 | 4,809,454 | |||||||||||||||||
Issuance of common shares with net-settlement of employee individual income tax | (126,723) | (126,723) | ¥ 103,697 | (230,420) | ||||||||||||||||
Issuance of common shares with net-settlement of employee individual income tax (in shares) | shares | 1,537,558 | 1,537,558 | ||||||||||||||||||
Issuance of common shares for acquisition of Huanqiuyimeng (Note 3) | 76,868,663 | 76,868,663 | ¥ 656,997 | 76,211,666 | ||||||||||||||||
Issuance of common shares for acquisition of Huanqiuyimeng (Note 3) (in shares) | shares | 9,360,000 | 9,360,000 | ||||||||||||||||||
Redeemable non-controlling interests redemption value accretion (Note 16) | (6,008,491) | (6,008,491) | (6,008,491) | |||||||||||||||||
Issuance of common shares upon private placement | ¥ 70,224,123 | ¥ 70,224,123 | ¥ 396,747 | ¥ 69,827,376 | ||||||||||||||||
Issuance of common shares upon private placement (in shares) | shares | 5,662,634 | |||||||||||||||||||
Non-redeemable non-controlling interests resulting from acquisition of Huanqiuyimeng (Note 3) | 6,771,349 | 6,771,349 | ||||||||||||||||||
Capital contributed by non-redeemable non-controlling interests (Note 16) | 2,500,000 | 2,500,000 | ||||||||||||||||||
Balance at Dec. 31, 2019 | ¥ 305,635,192 | $ 43,901,747 | ¥ 300,140,073 | $ 43,112,423 | ¥ 4,692,312 | $ 674,008 | ¥ (27,737,073) | $ (3,984,181) | ¥ 560,814,066 | $ 80,555,900 | ¥ (37,478,167) | $ (5,383,402) | ¥ (200,151,065) | $ (28,749,902) | ¥ 5,495,119 | $ 789,324 | ||||
Balance (in shares) at Dec. 31, 2019 | shares | 62,357,078 | 62,357,078 | 62,357,078 | 62,357,078 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Cash flows from operating activities: | |||||
Net income (loss) | ¥ 27,837,080 | ¥ (129,218,299) | $ (18,561,048) | ¥ 850,601,505 | ¥ (26,076,225) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||
Gain from disposal of long-term investments | (3,244,457) | ||||
Provision for doubtful accounts | 1,363,506 | 3,611,845 | |||
Gain from disposal of discontinued operations | (4,894,197) | (703,007) | (1,126,543,946) | ||
Depreciation and amortization | 9,179,835 | 17,545,060 | 2,520,190 | 13,331,272 | |
Loss (gain) from disposal of property and equipment | (507) | 893 | |||
Share-based compensation | 15,135,646 | 4,809,454 | 690,835 | 20,591,899 | |
Deferred income tax expense (benefit) | 1,454,773 | (8,054,197) | (1,156,913) | (25,969,955) | |
Share of losses of equity method investments | 1,878,172 | 7,850 | 1,128 | ||
Impairment loss of long-term investments | 15,216,510 | 26,814,507 | 3,851,663 | 6,380,802 | |
Provision for loan receivable and other receivables | 17,430,825 | 2,503,781 | |||
Impairment loss of intangible assets and other non-current assets | 8,932,439 | 1,283,065 | |||
Change in fair value of long-term investment (Note 6) | (2,750,000) | ||||
Foreign currency exchange loss (gain) | (653,103) | (56,630) | (8,134) | 42,887 | |
Changes in operating assets and liabilities, net of effect of acquisition: | |||||
Accounts receivable | (45,307,278) | 225,192 | 32,347 | 41,133,635 | |
Prepaid expenses and other current assets | (3,315,799) | (3,615,775) | (519,375) | (13,568,373) | |
Other non-current assets | 309,497 | (10,066,863) | (1,446,014) | (649,463) | |
Income tax payable | 14,953,642 | 679,961 | 97,670 | (14,953,642) | |
Accrued expenses and other payables | 60,115,517 | 14,737,959 | 2,116,975 | (67,205,665) | |
Deferred revenues | 682,605 | 6,846,155 | 983,389 | 3,320,001 | |
Net cash provided by (used in) operating activities | 95,605,639 | (57,876,559) | (8,313,448) | (312,626,305) | |
Cash flows from investing activities: | |||||
Cash paid for property and equipment | (4,957,034) | (1,284,816) | (184,552) | (7,110,298) | |
Loan lent to Beijing Biztour | (13,745,856) | ||||
Cash receipt from property and equipment disposal | 1,060 | 2,760 | |||
Proceeds from disposal of affiliates | 4,603,550 | ||||
Proceeds received from the sale of non-redeemable non-controlling interests (Note 16) | 1,500,000 | ||||
Proceeds from disposal of a subsidiary, less cash of the subsidiary | 1,996,848 | ||||
Cash received from shareholder (Note 22) | 10,000,000 | ||||
Payment for acquisition of a subsidiary, less cash acquired | (645,492) | (34,554,702) | (4,963,472) | ||
Proceeds from acquisition of a subsidiary, less cash paid | 215,000 | ||||
Cash paid for long-term investments (Note 6) | (5,500,000) | (6,000,000) | (861,846) | ||
Proceeds from disposal of discontinued operations, net of cash disposed in the amount of RMB 147,738,996 and nil for the years ended December 31, 2018 and 2019 | 4,894,197 | 703,007 | 1,223,119,391 | ||
Net cash provided by (used in) investing activities | (20,604,329) | (36,945,321) | (5,306,863) | 1,201,735,714 | |
Cash flows from financing activities: | |||||
Cash paid for employee individual income tax for net-settlement of vested shares | (188,658) | (126,723) | (18,203) | (1,727,040) | |
Cash contributed by non-controlling interest holder of Muhua Shangce | 5,000,000 | 718,205 | |||
Cash received from short-term loans | 15,000,000 | ||||
Repayment of short-term loans | (3,449,650) | (9,000,000) | (1,292,769) | (15,000,000) | |
Principal payments on capital lease obligations | (811,830) | (2,988,587) | |||
Cash received upon private placement | 61,693,192 | 8,861,673 | |||
Cash received for exercise of share options | 1,433,441 | ||||
Special cash dividend (Note 20) | (65,698,571) | (946,611,803) | |||
Net cash provided by (used in) financing activities | (70,148,709) | 57,566,469 | 8,268,906 | (949,893,989) | |
Effect of foreign exchange rate changes on cash | (1,210,072) | 866,827 | 124,512 | (4,720,020) | |
Net increase (decrease) in cash | 3,642,529 | (36,388,584) | (5,226,893) | (65,504,600) | |
Cash, cash equivalents and restricted cash at beginning of period | 252,448,413 | 190,586,342 | 27,376,015 | 256,090,942 | |
Cash, cash equivalents and restricted cash at end of period | 256,090,942 | 154,197,758 | 22,149,122 | 190,586,342 | ¥ 256,090,942 |
Supplemental disclosures of cash flow information: | |||||
Cash paid for income tax | 13,189,525 | 209,697 | 30,121 | 232,402,067 | |
Cash refunded for income tax | (189,691) | ||||
Cash paid for interest expenses | 57,367 | 231,722 | 33,285 | 249,683 | |
Non-cash investing and financing activities: | |||||
Acquisition of property and equipment by capital lease | 1,323,527 | ||||
Issuance of common shares as the consideration of Huanqiuyimeng Acquisition | 76,868,663 | 11,041,493 | |||
Consideration payable for business acquisition | 19,642,082 | $ 2,821,409 | |||
Education assessment caseware | |||||
Cash flows from investing activities: | |||||
Cash paid for intangible assets | (2,584,558) | ||||
Software platform of Project Shuang Chuang | |||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||
Impairment loss of intangible assets and other non-current assets | 0 | ¥ 8,932,439 | 0 | ||
Cash flows from investing activities: | |||||
Cash paid for intangible assets | (8,599,056) | ¥ (2,245,283) | |||
ACT license | |||||
Cash flows from investing activities: | |||||
Cash paid for intangible assets | ¥ (14,919,647) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Statement Of Cash Flows [Abstract] | |
Cash disposed from disposal of discontinued operations | ¥ 147,738,996 |
Description of Business, Organi
Description of Business, Organization and Significant Concentrations and Risks | 12 Months Ended |
Dec. 31, 2019 | |
Description Of Business Organization Significant Concentrations And Risks [Abstract] | |
Description of Business, Organization and Significant Concentrations and Risks | (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, consolidated variable interest entity (“VIE”) and VIE’s subsidiaries (collectively referred to as the “Group”), offers a range of educational services consisting primarily of portfolio training service, educational travel service, overseas study counseling service and other educational services primarily to individual students through its training center network in the People’s Republic of China and abroad. Prior to the consummation of the ATA Online Sale Transaction as described below, the Company, through its wholly-owned subsidiaries, including ATA Learning (Beijing) Inc. (“ATA Learning”), Zhongxiao Zhixing Education Technology (Beijing) Limited (“Zhongxiao Zhixing”), ATA Online (Beijing) Education Technology Co., Ltd. (“ATA Online”) and its subsidiaries (collectively, referred to as “ATA Online Business”), primarily provided computer-based testing services. On February 6, 2018, the Company entered into a share purchase agreement (the “Share Purchase Agreement”) with a group of investors to sell all of the outstanding equity interests of ATA Online Business (“ATA Online Sale Transaction” or the “Transaction”). In connection with the completion of the Transaction in August 2018, ATA Learning, Zhongxiao Zhixing, ATA Online and its subsidiaries are no longer consolidated into the Company’s consolidated financial statements. As a result of the Transaction, the Company no longer conducts the computer-based testing services and other testing related services previously operated by ATA Online. The Company acquired 100% equity interests of Beijing Huanqiuyimeng Education Consultation Corp. (“Huanqiuyimeng”), a leading provider of educational services for students in China who are interested in applying for overseas art study in the year of 2019 (“Huanqiuyimeng Acquisition”). The Company obtained control of Huanqiuyimeng and its subsidiaries on August 6, 2019 (the “Acquisition Date”). See Note 3. 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 prohibited from providing ICP services in the PRC, including having ownership of entities engaged in providing such services. ATA Intelligent Learning plans 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. Kevin 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. Mr. Ma and Mr. Xiong are PRC citizens. Both 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, 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. 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. Kevin Xiaofeng Ma and Mr. Haichang Xiong (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 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. Kevin Xiaofeng Ma and Mr. Haichang Xiong, to the extent permitted under PRC law and (iv) ATA Education 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. As a result of these variable interests, ACG has the obligation to absorb the expected losses and the right to receive expected residual returns of ATA Intelligent Learning. 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 expected losses and the right to receive expected residual return 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. Kevin 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 third 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. 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. Exclusive technical consulting and services agreement: ATA Education has the sole and exclusive right to provide specified technology consulting and services to ATA Intelligent Learning. The Parties agree that the intellectual property rights created by ATA Education in the course of performing this agreement, including without limitation any copyrights, trademarks or logos registered or not, patents and proprietary technology, shall belong to ATA Education. The consulting fee payable by ATA Intelligent Learning to ATA Education shall be confirmed by ATA Education in writing and be calculated based on the actual time spent by ATA Education in providing services to ATA Intelligent Learning on a quarterly basis. The consulting fee shall be settled on a quarterly basis, and at the end of each year, ATA Education shall confirm the total consulting and other fees incurred for the year in writing and ATA Intelligent Learning shall settle any outstanding on a timely basis. This agreement was entered in on March 15, 2018 and shall continue for a period of 30 years from thenon and shall be automatically extended for another 10 years unless ATA Education gives its written notice terminating this agreement 3 months before the expiration of this 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 principles 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 over 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 dispose 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 should not be suspended or hampered by the nominee shareholders, their successors or their designates. During the term of the equity interest pledge agreement, 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 Administration for Industry and Commerce 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. 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: • revoke the Company’s business and operating licenses; • levy fines on the Company; • confiscate any of the Company’s income that they deem to be obtained through illegal operations; • shut down a portion or all of the Company’s servers or block a portion or all of the Company’s website; • discontinue or restrict the Company’s operations in PRC; • impose conditions or requirements with which the Company may not be able to comply; • require the Company to restructure its corporate and contractual structure; • 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 and Mr. Xiong as nominee shareholders on behalf of ACG. Mr. Ma is chairman of the board and director of ACG and Mr. Xiong is general counsel of ACG. Mr. Ma holds over 50% of the total ordinary shares issued and outstanding as of December 31, 2019. 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 and 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 Company’s involvement with ATA Intelligent Learning under the VIE Agreements affected the Company’s consolidated financial position, results of operations and cash flows as presented below. The following financial statement amounts and balances of ATA Intelligent Learning were included in the accompanying consolidated financial statements of the Company as of and for the years ended December 31, 2018 and 2019. December 31, 2018 December 31, 2019 RMB RMB Cash 25,369,355 435,122 Prepaid expenses and other current assets 32,860 4,180 Total current assets 25,402,215 439,302 Long-term investments (i) 5,919,198 89,605,550 Property and equipment, net 8,382 11,972 Other non-current assets — 2,590 Total assets 31,329,795 90,059,414 Accrued expenses and other payables 455,577 — Payable for business acquisition — 19,642,082 Amounts due to a related party (ii) 28,000,000 42,000,000 Total current liabilities 28,455,577 61,642,082 Total liabilities 28,455,577 61,642,082 Year ended December 31, 2018 Year ended December 31, 2019 RMB RMB Net revenues — — Net loss (7,125,782 ) (14,456,886) Year ended December 31, 2018 Year ended December 31, 2019 RMB RMB Net cash used in operating activities (172,145 ) (1,441,360) Net cash used in investing activities (iii) (12,458,500 ) (77,492,873) Net cash received from financing activities (iii) 38,000,000 54,000,000 (i) Long-term investments as of December 31, 2019 include investment cost and share of loss of 30.96% equity interest investment in Huanqiuyimeng, which is eliminated on consolidation. ( ii ) Amounts due to a related party represent the amount due to ATA Education, which are eliminated on consolidation. (ii i ) For the year ended December 31, 2018, RMB 12,450,000 of net cash used in investing activities and RMB 38,000,000 of net cash received from financing activities were related to the transactions with ACG subsidiaries, which are eliminated on consolidation. For the year ended December 31, 2019, RMB 54,000,000 of net cash received from financing activities were related to the transactions with ACG subsidiaries, which are eliminated on consolidation. In addition, RMB71,483,973 of net cash used in investing activities were related to payments made for Huanqiuyimeng Acquisition. In accordance with the VIE Agreements, the Company has the power to direct the activities of ATA Intelligent Learning and can have assets transferred out of ATA Intelligent Learning. Therefore, the Company considers that there are no assets in ATA Intelligent Learning that can be used only to settle obligations of ATA Intelligent Learning, except for the registered capital amounting RMB 50.0 million as of December 31, 2019. None of the assets of ATA Intelligent Learning has been pledged or collateralized. The creditors of ATA Intelligent Learning 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: December 31, 2018 December 31, 2019 RMB RMB Financial institutions in the mainland of the PRC — Denominated in Renminbi (“RMB”) 143,760,647 47,224,436 — Denominated in U.S. Dollar (“USD”) 34 12,292,950 Total cash balances held at mainland PRC financial institutions 143,760,681 59,517,386 Financial institutions in Hong Kong Special Administrative Region (“HKSAR”) of the PRC — Denominated in RMB 672 — — Denominated in Hong Kong Dollar (“HKD”) 8,064,121 2,875,819 — Denominated in USD 38,358,069 91,793,594 — Denominated in Great Britain Pound 402,799 2 Total cash and cash equivalents balances held at HKSAR financial institutions 46,825,661 94,669,415 Total cash and cash equivalents balances held at financial institutions 190,586,342 154,186,801 The bank deposits with financial institutions in the PRC are insured by the government authority up to RMB 500,000. The bank deposits with financial institutions in the HKSAR are insured by the government authority up to HKD 500,000. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (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, or VIE for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. 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”). On June 1, 2017, the Company declared a change in the fiscal year end from March 31 to December 31. As a result, the Group has presented the nine-month period ended December 31, 2017 as its transition period, which impacts the comparability of the Group’s results between the transition period and the full years ended December 31, 2018 and 2019. Due to the ATA Online Sale Transaction, which represented a strategic shift and had a major effect on the Group’s result of operations, revenues, costs and expenses related to ATA Online Business have been reclassified in the accompanying consolidated financial statements as discontinued operations for all the periods presented. See note 1 and note 26. (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 available-for-sale investment, 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 standalone 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. (d) Foreign currency The accompanying consolidated financial statements have been expressed in RMB, the Company’s reporting currency. The Company, ATA BVI and Xing Wei’s functional currency is USD. The functional currency of the Company’s PRC subsidiaries 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 and Xing Wei 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. The resulting foreign currency translation adjustments are recognized as a separate component of accumulated other comprehensive 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 2019 RMB amounts included in the accompanying consolidated financial statements have been translated into USD at the rate of USD 1.00 = RMB 6.9618, 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 December 31, 2019. 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 December 31, 2019. (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, then 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. • 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, educational travel services, overseas study counseling services and other educational services through its network in China and abroad as a result of Huanqiuyimeng Acquisition on August 6, 2019. See Note 3. Prior to the consummation of the ATA Online Sale Transaction as described in Note 1, the Group primarily provided computer-based testing services and online education services, which have been classified and reported under discontinued operations for all the periods presented. See Note 26. The Group’s 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. Periods commencing January 1, 2018 Since the adoption of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”) 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 considered 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. 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 compiles 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 trainings 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 trainings required to complete a project is not pre-determined and varies depending on the background and requirements of individual students. The Group reassesses 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. ii) 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. The Group accounts for the educational travel services as one performance obligation, as individual activities within a contract are not distinct within the context of the contract. The Group recognizes revenue over the educational travel service period as the students simultaneously receive and consume the benefits of these services throughout the service period on the basis of costs incurred to-date to the total estimated costs. 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 counseling 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 iv) Other educational services Other educational services mainly consist of language training services, junior art education services and in-school classes. Revenue is recognized when control of promised services are transferred to the customers in an amount of consideration to which the Group expects to be entitled to in exchange for those services. v) K12 education assessment and other services The Group derives revenues by providing the assessment reports for the test takers to customers. Revenues from education assessment services are recognized when the Group delivers the reports to customers, which is when the control over the report has been transferred to customers. Fees received in advance are recorded as deferred revenue when the Group has an obligation to transfer goods or services to a customer for which the Group has received consideration. The Group derives content development revenue by designing test model and providing the developed content to customers. Revenues from content development are recognized when the Group delivers the developed content to customers, which is when the control over the content has been transferred to customers. Revenues generated from ATA Online Business, which primarily include testing services and online education services have been classified and reported under discontinued operations for all the periods presented. See Note 26. vi) Testing services The Group derives revenues by providing testing services to the test takers for customers. Testing services revenues are recognized upon the completion of the exam by the test takers when the control over the service has been transferred to customers. vii) Online education services The Group provides an online platform for students to conduct continuing education. The platform entitles students to access online education services during a specified service period (the “subscription period”). The Group determines that the customer simultaneously receives and consumes benefits provided by the Group’s performance as the Group performs during the term of the contract. Service fees are initially recorded as deferred revenue and are recognized as revenue on a straight-line basis over the subscription period. The Group adopted ASC 606, Revenue from Contracts with Customers Results for reporting periods after January 1, 2018 are presented in accordance with the new revenue guidance, while prior period amounts are not adjusted and continue to be reported in accordance with ASC 605, Revenue Recognition For the nine months ended December 31, 2017, RMB 4,041,142 of rental income was recorded under net revenues. For the year ended December 31, 2018 and 2019, rental income of RMB 5,943,984 and RMB 1,580,270, after netting off relevant costs, was classified as “other operating income, net” as a result of the adoption of new revenue guidance ASC 606, effective January 1, 2018. Net revenues for the years ended December 31, 2018 and 2019 would have increased by RMB 5,943,984 and RMB 1,580,270 if the Group had not adopted ASC 606, Revenue from Contracts with Customers. Periods prior to January 1, 2018 Prior to January 1, 2018, the Group’s revenues are principally derived from the provision of testing services and online education services. The Group recognizes revenues when all of the following have occurred: • persuasive evidence of an agreement with the customer exists; • services have been performed and/or delivery of goods has occurred; • the fees for services performed and/or price of goods sold are fixed or determinable; and • collectability of the fees and/or sales proceeds is reasonably assured. Application of the above criteria for revenue recognition for each type of service or product i) Testing services Fees for testing services are recognized upon the completion of the exam by the test taker since the Group has no significant future involvement after the completion of the examination. Fees received in advance of test delivery are recorded as deferred revenue. ii) Online education services The Group provides an online platform for students to conduct continuing education. The platform entitles students to access online education services during a specified service period (the “subscription period”). Service fees are initially recorded as deferred revenue and are recognized as revenue on a straight-line basis over the subscription period. iii) Other revenue a) Licensing fees from authorized test centers The Group receives a fixed fee for a perpetual license that provides authorized test centers the right to use the Group’s brand name and e-testing platform. The Group is obligated to provide training and support to authorized test centers’ staff. Fixed fees for perpetual licenses are recognized on a straight-line basis over the expected licensing period of 10 years, which is the period the Group is expected to have continuing involvement with the authorized test centers. Management estimates the expected licensing period based on its historical retention experience, factoring in the expected level of future competition, the risk of technological obsolescence, technological innovation, and expected changes in the education training environment. b) Test development services Test development service fees are recognized upon the acceptance of the developed tests by the customer. The period to develop the tests is short, generally within two to six months from commencement of development. c) Test administration products Test administration products sales are recognized upon delivery and when collectability is reasonably assured. d) Operating leases The Group recognized the revenue from operating lease on a straight-line basis over the lease term. (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). ( i ) Cost of revenues Prior to the Huanqiuyimeng Acquisition,cost of revenues consists primarily of content development costs, amortized expenses of education assessment caseware, payroll compensation, and other related costs, which are directly attributable to the rendering of various services. As a result of Huanqiuyimeng Acquisition, cost of revenues primarily consist of (1) teaching fees, payroll compensation for teaching support and administrative employees, 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 educational travel 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 K12 education assessment and other services. ( j ) Research and development costs Research and development costs primarily consist of cost incurred over software developed for internal use and software developed for sale. i) Software developed for internal use 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. ii) Software developed for sale Costs incurred internally in researching and developing a computer software product are charged to expense as research and development costs prior to technological feasibility being established for the product. Once technological feasibility is established, all computer software costs are capitalized until the product is available for general release to customers. Technological feasibility is established upon completion of all the activities that are necessary to substantiate that the computer software product can be produced in accordance with its design specifications, including functions, features, and technical performance requirements. ( k ) Lease The Group is a lessee in a number of non - Periods prior to January 1, 2019 Operating lease The Group leases offices under non-cancellable operating leases. Leases with escalated rent provisions are recognized on a straight-line basis commencing with the beginning of the lease term. There is no contingent rent in the lease agreements. The lease terms range between 12 and 36 months. Capital lease On initial recognition, assets held under capital leases are recorded as property and equipment. At inception of the lease, capital leases are recorded at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. Minimum lease payments under capital leases are apportioned between finance expense and reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Periods commencing January 1, 2019 From January 1, 2019, the Group accounts for leases in accordance with ASC Topic 842, Leases 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. • The lease term for all of the Group’s leases includes the non-cancellable period of the lease plus any additional periods covered by either the Group’s option to extend (or not to terminate) the lease that the Group is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. • Lease payments included in the measurement of the lease liability comprise the following: – Fixed payments, including in-substance fixed payments, owed over the lease term (which includes termination penalties the Group would owe if the lease term assumes the Group to exercise a termination option); – Variable lease payments that depend on an index or rate, initially measured using the index or rate at the lease commencement date; – Amounts expected to be payable under the Group-provided residual value guarantee; and – The exercise price of the Group’s option to purchase the underlying asset if the Group is reasonably certain to exercise the option. 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. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus 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 income 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 The Group monitors for events or changes in circumstances that require a reassessment of one 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 other non-current liabilities on the consolidated balance sheet. 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, 2019, the Company did not have any finance leases. The Company adopted the new lease accounting standard since January 1, 2019, and elected to apply the transition provisions of the standard on the date of adoption. Accordingly, the Company didn’t restate prior year comparative periods for the impact of the new lease accounting standard. The Company also elected the package of practical expedients permitted under the transition guidance within the new lease accounting standard, including: (1) the Group didn’t reassess whether any expired or existing contracts are or contain leases; (2) the Group combined lease and non-lease components for facilities leases, which primarily relate to ancillary expenses such as common area maintenance charges and management fees of its operating leases. In addition, for leases with a term of 12 months or less, an election was made not to recognize lease assets and lease liabilities. Upon the adoption of the new lease accounting standard ASC 842, the Company recognized right-of-use assets and lease liabilities of approximately RMB 3.5 million and RMB 3.0 million, respectively, at January 1, 2019, consisting primarily of operating leases relating to office space. ( 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). ( 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. 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 o |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | ( 3 ) BUSINESS ACQUISITION Acquisition of Huanqiuyimeng In 2019, the Company entered into share purchase agreements with all of the selling shareholders of Huanqiuyimeng to acquire 100% equity interests of Huanqiuyimeng in exchange for 9,360,000 ordinary shares of the Company and RMB 91.1 million consideration in cash. The control of Huanqiuyimeng business transitioned to the Group on August 6, 2019. As of December 31, 2019, the consideration payable for business acquisition was RMB 19,642,082 and expected to be paid within one year. The Company accounted for the acquisition of Huanqiuyimeng under the acquisition method of accounting in accordance with ASC 805, Business Combinations RMB Purchase consideration: Cash 91,126,055 Fair value of 9,360,000 76,868,663 167,994,718 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash 36,785,802 Prepaid expenses and other current assets 26,333,563 Long-term investments 157,850 Property and equipment, net 8,505,683 Intangible assets Trademark 79,000,000 Non-compete arrangements 56,000,000 Order backlogs 4,000,000 Other non-current assets 881,926 Right-of-use assets 32,089,416 Deferred revenues (163,400,000) Short-term loan (13,991,000) Lease liabilities-current (18,728,346) Deferred income tax liabilities (45,659,880) Accrued expense and other payables (14,326,672) Other non-current liabilities (13,361,070) Total identifiable assets acquired and liabilities assumed (25,712,728) Fair value of non-redeemable non-controlling interests in Huanqiuyimeng (6,771,349) Goodwill 200,478,795 The intangible assets consist of trademark, non-compete arrangements and order backlogs. The fair values of trademark of RMB 79,000,000 56,000,000 4,000,000 The appraiser adopted relief from royalty method to estimate the fair value of trademark as at August 6, 2019.This approach is based on the assumption that, if an intangible asset has to be licensed from a third-party owner, a royalty rate on turnover will be charged for the privilege of using the asset. The significant inputs for the valuation model include, but not limited to, projected revenue, remaining useful life and discount rates. The appraiser adopted with and without method to estimate the fair value of non-compete arrangements as at August 6, 2019. The fair value of non-compete arrangements were derived by comparing the discounted cash flow models under the income approach for the two scenarios – one is based on the scenario where the non-compete arrangements are in place and the other is where it is not in place. The significant inputs for the valuation model include, but not limited to, remaining useful life, financial forecasts for the scenario without non-compete arrangements in place, discount rate and probability of competition. The appraiser adopted discounted cash flow method to estimate the fair value of deferred revenues as at August 6, 2019.The fair value of the deferred revenues was estimated based on the costs of fulfilling the obligations plus a normal profit margin. The significant inputs for the valuation model include, but not limited to, projected direct cost, savings on selling effort, profit margin and discount rate. The appraiser adopted price-to-sales method to estimate fair value of the non-controlling interests as at August 6, 2019. The price-to-sales multiple is referred to the purchase consideration and the revenue of Huanqiuyimeng. Considering the comparability of each entity with non-controlling interests, the appraiser adopted such multiple in deriving the non-controlling interests. As of the acquisition date, the goodwill acquired in the business combination was assigned to overseas art study services segment of RMB 176,046,647 and to other educational services segment of RMB 24,432,148 based on the excess of the fair value of each acquired reporting unit over the fair value of individual assets acquired and liabilities assumed that are assigned to each reporting unit. The following summarized unaudited pro forma results of operations for the years ended December 31, 2018 and 2019 assuming that the acquisition of Huanqiuyimeng occurred as of January 1, 2018. The unaudited pro forma financial information is supplemental information only and is not necessarily indicative of the results of operations which actually would have been had the acquisitions occurred as of January 1, 2018, nor is it indicative of future operating results. For the years ended December 31, 2018 2019 RMB RMB (Unaudited) (Unaudited) Pro forma net revenues 105,071,457 201,416,606 Pro forma net income (loss) attributable to ATA Creativity Global 757,139,789 (174,265,822) The amounts of net revenues and net loss of the acquiree since the acquisition date included in the consolidated statement of comprehensive income (loss) for the year ended December 31, 2019 is RMB 91,422,138 and RMB 24,291,035, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | (4) PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: December 31, 2018 December 31, 2019 RMB RMB Amount due from Beijing Biztour 3,713,166 1,960,403 VAT-input deductible 2,675,486 1,893,650 Income tax refundable — 2,800,622 Advances to employees 13,919 1,605,908 Other current assets 1,433,521 8,229,786 Total prepaid expenses and other current assets 7,836,092 16,490,369 Other current assets primarily consist of advances to suppliers for deposits, advertising fee and prepaid cost for educational travel services. |
Loan Receivable
Loan Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Loan Receivable | ( 5 ) LOAN RECEIVABLE, NET On March 26, 2018, the Company entered into a framework agreement with the selling shareholders of Beijing Biztour International Travel Service Co., Ltd. (“Beijing Biztour”) in order to acquire Beijing Biztour. Pursuant to the framework agreement, the Company provided a one-year loan of US$2 million at an annual interest rate of 8.0% to Beijing Biztour. The Company had also advanced RMB 7.5 million to fund the operation of Beijing Biztour from August 2018. On March 6, 2019, The Company terminated the acquisition of Beijing Biztour because Beijing Biztour and the selling shareholders of Beijing Biztour did not satisfy certain closing conditions for such acquisition. The loan receivable became overdue on April 6, 2019. On April 30, 2019, the due dates of loan receivable and other receivables due from Beijing Biztour were extended to September 30, 2019. The controlling shareholder of Beijing Biztour made a personal guarantee and agreed with certain real estate property mortgage. The loan receivable and other receivables due from Beijing Biztour became overdue again since October 1, 2019. Management assessed the collectability of loan receivable and other receivables due from Beijing Biztour and used the fair value of real estate adjusted by the estimated costs to sell to measure impairment and recorded a provision of RMB 17.4 million for the year ended December 31, 2019. |
Long-term Investments
Long-term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Long Term Investments [Abstract] | |
Long-term Investments | (6) LONG-TERM INVESTMENTS Equity method investments In September 2015, ATA BVI entered into an agreement to purchase 2,156,721 Series AA Preferred Shares issued by Brilent Inc. (“Brilent”) at a price of $0.6955 per Series AA Preferred Shares with a total consideration of USD 1.5 million. Brilent is a service provider with an easy to use SaaS (Software as a Service) based in the United States. ATA BVI held 15.47% equity interest of Brilent and one board seat out of six. The investment is accounted for under the equity method as ATA BVI is able to exercise significant influence through its board seat. The Company recognized its share of loss from this equity investment of RMB 1,395,234, nil and RMB nil for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019, respectively. Management evaluated whether there was other than temporary impairment based on the facts, including recent financing activities, projected and historical financial performance. Brilent encountered severe shortage of working capital resulted from continuous negative operating cash flows and turnover of key personnel in the fourth quarter of 2017. Management considered there was other than temporary impairment for the investments in Brilent and recognized the impairment loss of RMB 4,757,972 for the nine-month period ended December 31, 2017 to reduce the investment to zero, therefore, the investment balance in Brilent was nil as of December 31, 2018 and 2019. Other equity investments December 31, 2018 December 31, 2019 RMB RMB Beijing Empower Education Online Co., Ltd. 38,000,000 38,000,000 ApplySquare Education & Technology Co., Ltd. 22,471,700 1,576,391 Beijing GlobalWisdom Information Technology Co., Ltd. 5,919,198 — Beijing Xiaozhi Education & Technology Co., Ltd. — 6,000,000 Beijing Futou Technology Co., Ltd. — 150,000 Total other equity investments 66,390,898 45,726,391 During the year ended March 31, 2017, the Group entered into shares purchase agreements to acquire 8.33% equity interest of Beijing Empower Education Online Co., Ltd. ("EEO"), 9% equity interest of ApplySquare Education & Technology Co., Ltd ("ApplySquare"), and 8.2% equity interest of Beijing GlobalWisdom Information Technology Co., Ltd. ("GlobalWisdom"), by paying cash consideration of RMB 32,500,000, USD 3,000,000 (equivalent to RMB 19,721,700), and RMB 12,300,000 respectively. ACG accounted for these investments as other equity investments using the cost method of accounting prior to January 1, 2018 in accordance with Investments—Others In April 2017, ACG entered into a capital increase agreement to make an additional investment of RMB 5,500,000 in EEO. The consideration has been paid to EEO in June 2017. After this additional investment, ACG invested a total of RMB 38,000,000 in EEO, and accounted for the investment under cost method in accordance with ASC325, Investments—Others On July 26, 2017, GlobalWisdom entered into a new financing agreement with new investors. After GlobalWisdom’s new financing, ACG’s equity shares decreased to 6.8345% and ACG still has the right to appoint one director. Because these investment terms contain substantive liquidation preference over common stock that are not available to common shareholders, these investments are not substantially similar to common stock and ACG accounted for the investment under cost method in accordance with ASC325, Investments—Others In connection with adoption of ASC321 Investment—Equity securities On June 20, 2018, ApplySquare entered into a new financing agreement with a group of new investors. After Applysquare’s new financing, ACG’s equity shares decreased from 9% to 7.95% and ACG still has the right to appoint one director. The new financing provided the observable price for ACG’s investment and ACG engaged a third party appraiser to evaluate this investment’s carrying amount based on the observable price, and recognized a gain of RMB 2,750,000 from the change in fair value. ACG accounts for the investment in ApplySquare at cost adjusted for observable price changes for the year ended December 31, 2018. 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 indicates that impairment exists. ACG engaged a third-party appraiser to evaluate 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. ACG did not identify any observable price changes requiring an adjustment to the investment in EEO for the year ended December 31, 2018 and 2019. As of December 31, 2018, ACG made a qualitative assessment and identified that GlobalWisdom failed to meet the expected milestones and operation forecasts and encountered shortage of working capital resulted from continuous negative operating cash flows, which indicates that impairment exists. ACG engaged a third-party appraiser to evaluate the fair value of the investment in GlobalWisdom as of December 31, 2018 and recorded an impairment of RMB 6,380,802 based on the valuation result. Due to its severe shortage of working capital and negative market impact on its business in the third quarter of 2019, the Group recognized the impairment loss of RMB 5,919,198 to reduce the investment to zero. In December 2018, ACG entered into shares purchase agreement to acquire 20% equity interest 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 Group accounted for investment in Xiaozhi as other equity investments since these investments are not in-substance common stock due to the liquidation preference feature, and do not have readily determinable fair value. The Group elected to measure other equity investments without a 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. Long-term investment in Beijing Futou Technology Co., Ltd (“Futou Technology”) was acquired in connection with the acquisition of Huanqiuyimeng, which held 15% equity interests in Futou Technology. ACG did not identify any observable price changes requiring an adjustment to the investment in Futou Technology for the year ended December 31, 2019. Available-for-sale investment On March 24, 2016, ATA BVI entered into a convertible promissory note (“the Notes”) purchase agreement with Brilent pursuant to which Brilent will issue up to USD 2,500,000 of the Notes to certain investors including ATA BVI. On March 30, 2016 and April 28, 2016, Brilent issued the Notes to ATA BVI in the principal amount of USD 300,000 and USD 1,200,000 at a 6% interest rate per annum, in exchange for cash of USD 1,500,000. The Notes are due and redeemable 24 months from issuance. If a qualified financing occurs on or prior to the maturity date of the Notes, the Notes and all accrued and unpaid interest thereon shall convert, at ATA BVI’s option, into qualified financing securities at 75% of the qualified financing security purchase price subject to certain adjustment. For the year ended March 31, 2017, RMB 568,320 was recognized as interest income in consolidated statements of comprehensive income (loss). The investment is classified as available-for-sale investment and is measured at fair value as of the balance sheet date. Unrealized holding loss of RMB 553,870 was reported in other comprehensive income (loss) for the year ended March 31, 2017. The Company determined the fair value of the Notes as of March 31, 2017 to be USD 1,504,000 (RMB 10,376,547). As a result of recent development of Brilent Inc., management considered that there was other than temporary impairment of this investment and recorded an impairment loss of the Notes of USD 1,504,000 (RMB 10,458,538) as of December 31, 2017. The unrealized loss of the Notes of RMB 553,870 has been reclassified to profit and loss correspondingly. Due to the above impairment recognized in the nine months ended December 31, 2017, the net book value of this investment is nil as of December 31, 2018 and 2019. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | ( 7 ) The following table presents a roll-forward of the fair value of Level 3 available-for-sale investment for nine months ended December 31, 2017 and the years ended December 31, 2018 and 2019, respectively: Available-for-sale investment RMB Ending balance as of March 31, 2017 10,376,547 Total gain or losses: Included in net income (10,458,538) Reclassification adjustment for loss on available-for-sale investment included in net income, net of nil income tax 553,870 Foreign currency translation adjustment (471,879) Ending balance as of December 31, 2017, 2018 and 2019 — The following tables present the placement in the fair value hierarchy of assets that are measured at fair value on a non-recurring basis at December 31, 2018 and 2019: Fair value disclosure or measurement at December 31, 2018 using December 31, 2018 Level 1 Level 2 Level 3 RMB RMB RMB RMB Other equity investments ApplySquare Education & Technology Co., Ltd. 22,471,700 — — 22,471,700 Beijing GlobalWisdom Information Technology Co., Ltd. 5,919,198 — — 5,919,198 Fair value disclosure or measurement at December 31, 2019 using December 31, 2019 Level 1 Level 2 Level 3 RMB RMB RMB RMB Other equity investments ApplySquare Education & Technology Co., Ltd. 1,576,391 — — 1,576,391 Beijing GlobalWisdom Information Technology Co., Ltd. — — — — 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. ApplySquare entered into a new financing agreement with a group of new investors in 2018, which provided the observable price for ACG’s investment and the fair value adjustments are determined primarily based on the market approach as of the transaction date. As a result, the Group recognized a gain of RMB 2,750,000 from the change in fair value for the year ended December 31, 2018. To estimate the fair value of investment in Applysquare as of December 31, 2019, the Group used Discounted Cash Flow Model ("DCF Model"), which is based on the fair value of the entire invested capital of Applysquare 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. As a result, the Group recorded an impairment loss of RMB 20,895,309 for the year ended December 31, 2019. To estimate the fair value of investment in GlobalWisdom, the Group used Discounted Cash Flow Model ("DCF Model"), which is based on the fair value of the entire invested capital of GlobalWisdom 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. As a result, the Group recorded impairment losses of RMB 6,380,802 for the year ended December 31, 2018 and RMB 5,919,198 for the year ended December 31, 2019. 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, 2018 and December 31, 2019, respectively. The Group’s 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, subscription receivable, 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. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | (8) Property and equipment, net consist of the following: December 31, 2018 December 31, 2019 RMB RMB Building 53,049,213 53,049,213 Computer equipment 599,992 3,491,575 Furniture, fixtures and office equipment 1,437,949 1,890,013 Motor vehicles 1,986,506 1,986,506 Software 1,156,779 1,797,197 Leasehold improvements 695,185 14,419,590 58,925,624 76,634,094 Less: accumulated depreciation and amortization (21,494,883 ) (34,563,300) Property and equipment, net 37,430,741 42,070,794 Total depreciation expense recognized for nine months ended December 31, 2017, the years ended December 31, 2018 and 2019 is allocated to the following expense items: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Cost of revenues 1,384,157 3,802 28,389 Research and development 641,793 640,372 226,173 Sales and marketing 111,226 122,199 35,343 General and administrative 626,395 417,295 4,491,492 Other operating income, net — 1,782,454 369,048 Total depreciation expense 2,763,571 2,966,122 5,150,445 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | ( 9 ) (a) Goodwill Goodwill balance before the ATA Online Sale Transaction consisted of RMB 6,880,123 recognized from the acquisition of 5% equity shares of ATA Education in 2002, RMB 16,542,727 recognized from the acquisition of Beijing Jindixin Software Technology Company Limited (“Beijing JDX”) and JDX Holdings Limited (“JDX BVI”) in February 2009, RMB 7,589,052 recognized from the acquisition of Xing Wei in November 2013 and RMB 997,123 recognized from the acquisition of Beijing Qihuang Huizhi Technology Co., Limited ("Qihuang Huizhi"), majority owned subsidiary of ATA Online acquired in December 2017. The above goodwill represents the benefits and synergies that the acquired businesses are expected to bring to the Company in relation to the computer-based testing services and expand the Company’s customer base and product offering of testing services. In December 2017, ATA Online acquired 65% equity interest in Qihuang Huizhi, with a total consideration of RMB 650,000, which was fully paid on December 13, 2017. This acquisition was accounted for under the acquisition method and the excess of cost of acquisition and fair value of the non-controlling interests over the fair value of the identifiable net assets of Qihuang Huizhi, is recorded as goodwill of RMB 997,123. In December 2017, the Company sold the entire 60% equity interest in Beijing Puhua Huitong Education Technology Co., Limited (“Puhua Technology”) for RMB 2,000,000 in cash, and the goodwill of RMB 1,512,081 recognized from the acquisition of Puhua Technology has been disposed correspondingly. 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. The change in the carrying amount of goodwill is as follows: RMB Balance as of December 31, 2017 32,009,025 Less: Disposal of discontinued operations (Note 26) (32,009,025 ) Balance as of December 31, 2018 — Add: Acquisition of Huanqiuyimeng 200,478,795 Balance as of December 31, 2019 200,478,795 (b) Intangible assets The following table summarizes the Company’s intangible assets, as of December 31, 2018 and 2019. December 31, 2018 Gross carrying amount Accumulated amortization /deduction Impairment Net carrying amount Weighted average amortization period RMB RMB RMB RMB Years Education assessment caseware (i) 9,251,887 (2,430,708 ) — 6,821,179 5 Software platform of Project Shuang Chuang (ii) 10,844,339 (542,940 ) — 10,301,399 5 Total intangible assets 20,096,226 (2,973,648 ) — 17,122,578 December 31, 2019 Gross carrying amount Accumulated amortization /deduction Impairment Net carrying amount Weighted average amortization period RMB RMB RMB RMB Years Trademark (iii) 79,000,000 (3,291,667) — 75,708,333 10 Non-compete arrangements (iii) 56,000,000 (3,888,889) — 52,111,111 6 Order backlogs (iii) 4,000,000 (1,190,476) — 2,809,524 1.4 Education assessment caseware (i) 9,251,887 (4,281,085) — 4,970,802 5 Software platform of Project Shuang Chuang (ii) 10,844,339 (2,716,145) (8,128,194) — 5 Total intangible assets 159,096,226 (15,368,262) (8,128,194) 135,599,770 Total amortization expense recognized for nine months ended December 31, 2017, the years ended December 31, 2018 and 2019 is allocated to the following expense items: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Cost of revenues 753,114 1,468,726 2,031,478 Sales and marketing — 542,940 1,992,105 General and administrative — — 8,371,032 Total amortization expense 753,114 2,011,666 12,394,615 (i) Education assessment caseware is the test content purchased for the Company’s strategic K-12 academic assessment business, which includes three subjects of Literature, Mathematics and English over six grades of junior and senior high school. (ii) Software platform of Project Shuang Chuang is the software platform purchased from a third party for providing vocational assessment and training services that focuses on the innovation related competencies of college students. As of December 31, 2019, the Company conducted impairment test on intangible assets and identified that no cash inflows nor feasibility use is anticipated from the intangible assets and other non-current assets recorded relating to the software platform developed under Project Shuang Chuang. As a result, RMB 8,932,439 of impairment loss relating to intangible assets and other non-current assets for software platform of Project Shuang Chuang (iii) Trademark, Non-compete arrangements and Order backlogs were recorded as a result of Huanqiuyimeng Acquisition. See note 3 for details. As of December 31, 2019, the estimated amortization expense for the next five years is as follows: December 31 RMB 2020 21,893,234 2021 19,083,711 2022 18,121,730 2023 17,614,984 2024 17,233,333 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Leases | ( 10 ) The Company adopted new lease accounting standards ASC 842 since January 1, 2019. The primary leases that the Group entered into were for training center and office spaces. Information as of and for the year ended December 31, 2019: As of December 31, 2019, the Company has 61 operating leases for training center and office spaces with remaining terms expiring from 2 through 39 months and a weighted average remaining lease term of 1.67 years. Weighted average discount rates used in the calculation of the lease liability is 5.88%. 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. Rent expense for the year ended December 31, 2019 was RMB13,903,991. There was no variable lease costs or sublease income for leased assets for the year ended December 31, 2019. The impact of ASC 842 on the December 31, 2019 consolidated balance sheet was as follows: December 31, 2019 RMB Operating leases: Right-of-use lease assets 40,786,291 Lease liabilities-current 20,556,017 Other non-current liabilities 12,500,120 Other information related to leases is presented below: December 31, 2019 RMB Supplemental cash flow information: Cash paid for amounts included in measurement of operating leases liabilities 12,850,734 Right-of-use assets acquired in exchange for operating lease obligations 8,696,875 Right-of-use assets acquired in connection with Huanqiuyimeng Acquisition 32,089,416 Weighted average remaining lease term 1.67 Weighted average discount rate 5.88% Maturities of lease liabilities under non-cancellable leases as of December 31, 2019 are as follows: Operating leases RMB 2020 21,869,242 2021 10,956,342 2022 2,601,561 2023 359,048 2024 — Thereafter — Total undiscounted lease payments 35,786,193 Less: Imputed interest (2,730,056) Total lease liabilities 33,056,137 Amounts due within 12 months 20,556,017 Non-current lease liability 12,500,120 Short-term lease expense, with a lease term of 12 months or less, for the year ended December 31, 2019 was RMB 2,125,616 and short-term lease commitments as of December 31, 2019 are as follows: Short-term Lease Commitments Amount RMB Year ended December 31: 2020 1,506,677 1,506,677 Information as of and for the year ended December 31, 2018: As previously disclosed in the consolidated financial statements for the year ended December 31, 2018 and under the previous lease standards (ASC 840), future minimum annual lease payments for the years subsequent to December 31, 2018 and in aggregate are as follows: Minimum Lease Payments RMB Year ended December 31: 2019 2,959,829 2020 346,745 2021 — 2022 — 2023 — 3,306,574 Rental expense for operating leases for nine months ended December 31, 2017 and the year ended December 31, 2018 were RMB 4,772,679 and RMB 2,717,234 respectively. |
Short-term Loans
Short-term Loans | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-term Loans | (11) SHORT-TERM LOAN In June 2018, the prior president and director of ACG, Jack Huang, entered into a three-year Commercial Loan Facility (the “Facility”) with China Minsheng Bank Beijing Branch to borrow up to RMB 15,000,000 to support the working capital of ATA Education. The Facility is pledged by the real estate property of Gongyuan 16th floor owned by ATA Education, pursuant to which a corresponding three-year pledge agreement has been entered into between ATA Education and China Minsheng Bank Beijing Branch. Jack Huang and ATA Education also signed an agreement, pursuant to which all drawdowns received from China Minsheng Bank should be transferred to ATA Education and the interests of these drawdowns will be fully paid by ATA Education. ATA Education shall pay interest at 6.525% per annum on the commencement date for each drawdown. The interest rate is subject to potential adjustment based on premium interest rate stipulated by the People’s Bank of China. In June and July 2018, ATA Education has received a total of RMB 15,000,000 drawdowns and this loan has been fully repaid on October 15, 2018. On April 12, 2019, the real estate property of Gongyuan 16th floor was released from pledge and the Facility was terminated correspondingly. The Group assumed several bank borrowings in the amount of short-term loan balance of RMB 13,991,000 in connection with Huanqiuyimeng Acquisition, among which RMB 9,000,000 was repaid during the period from August 6, 2019 to December 31, 2019. Interest expense of RMB 164,930 accrued from these bank borrowings was recognized for the same period in 2019. The outstanding short-term loan balance was RMB 4,991,000 as of December 31, 2019. |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Payables | (12) ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables consist of the following: December 31, 2018 December 31, 2019 RMB RMB Refund liability* — 8,919,239 Accrued payroll and welfare 8,934,828 22,821,689 Accrued test monitoring fees 2,432,153 2,432,153 Accrued professional services expenses 755,849 3,489,512 Income taxes payable — 679,961 Other current liabilities 5,989,109 9,404,500 Total accrued expenses and other payables 18,111,939 47,747,054 Other current liabilities as of December 31, 2018 and 2019 mainly include lessees’ rental deposits, accrued traveling, meeting and other operating expenses. *Refund liability represents the estimated amount of refund if a student decides to withdraw from the Group’s programs or services and is estimated based on historical experience. |
Change in Fiscal Year End
Change in Fiscal Year End | 12 Months Ended |
Dec. 31, 2019 | |
Change In Fiscal Year End [Abstract] | |
Change in Fiscal Year End | ( 1 3 ) During the nine-month period ended December 31, 2017, the Group changed its fiscal year end to December 31, effective December 31, 2017. The consolidated financial statements for the nine-month period ended December 31, 2017 is not comparable to that as of and for the twelve months ended December 31, 2018. For comparison purposes, the Group included the selected data from unaudited consolidated income statement for the twelve-month period ended December 31, 2017 per below: Twelve months ended December 31, 2017 2018 RMB RMB Net revenues 7,389,371 1,338,592 Cost of revenues 4,957,647 4,251,451 Gross profit (loss) 2,431,724 (2,912,859 ) Operating expenses 74,104,081 68,672,509 Other operating income, net — 3,793,418 Loss from operations (71,672,357 ) (67,791,950 ) Other loss, net (16,427,003 ) (261,524 ) Loss from continuing operations before income taxes (88,099,360 ) (68,053,474 ) Income tax benefit (591,290 ) — Loss from continuing operations, net of income taxes (87,508,070 ) (68,053,474 ) Income from discontinued operations, net of income taxes 61,431,845 918,654,979 Net income (loss) (26,076,225 ) 850,601,505 |
Net Revenues
Net Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Net Revenues Disclosure [Abstract] | |
Net Revenues | ( 1 4 ) The components of net revenues for nine months ended December 31, 2017, the years ended December 31, 2018 and 2019, are as follows: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Portfolio training services — — 63,828,907 Educational travel services — — 10,456,269 Overseas study counselling services — — 8,091,551 Other educational services — — 9,045,411 K12 education assessment and other services 5,185,822 1,338,592 6,348,029 Net Revenues 5,185,822 1,338,592 97,770,167 K12 education assessment and other services revenues primarily include rental income and K-12 education assessment service revenues for nine-months ended December 31, 2017 and K12 education assessment services and content development services for reporting periods after January 1, 2018. Deferred revenue is recorded when the Group has an obligation to transfer goods or services to a customer for which the Group has received consideration from the customer. Part of the balances as of January 1, 2018 and 2019 were recognized as revenues during the years ended December 31, 2018 and 2019. In addition, changes in the deferred revenue balances during the year ended December 31, 2019 included RMB163,400,000 of deferred revenue acquired in connection with the Huanqiuyimeng Acquisition. See Note 3. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (1 5 ) 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 Xing Wei did not derive any income that is subject to Hong Kong profits tax for the nine months ended December 31, 2017, the taxable years ended December 31, 2018 and 2019. Accordingly, no provision for Hong Kong profits tax was required. PRC income tax arising from disposal of investment in a prior subsidiary, Zhongxiao Zhixing, which was previously operating in PRC, was filed and paid during the taxable year ended December 31, 2018. The payment of dividends by Hong Kong companies is not subject to any Hong Kong withholding tax. 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, 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, 2014 to December 31, 2016. In October 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 retroactively from January 1, 2017 to December 31, 2019. ATA Education is currently in the process of renewing their HNTE certificates for another three years. Upon successful renewal, ATA Education would be entitled to a preferential tax rate of 15% retroactively from January 1, 2020. In December 2009, Muhua Shangce received approvals from the tax authority that it qualified as an HNTE. The certificate entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2009 to December 31, 2011. In July 2012, Muhua Shangce 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, 2012 to December 31, 2014. In November 2015, Muhua Shangce 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, 2015 to December 31, 2017. In October 2018, Muhua Shangce 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, 2018 to December 31, 2020. The EIT Law and its relevant regulations impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC for earnings generated beginning January 1, 2008. Undistributed earnings generated prior to January 1, 2008 are exempt from withholding tax. As a result of the ATA Online Sale Transaction, the withholding tax of RMB 22.8 million accrued from ATA Online Business in the PRC has been recorded under discontinued operations. See note 26. As of December 31, 2018 and 2019, the Company has not provided for income taxes on earnings of RMB 71,323,502 and RMB 6,233,021 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 RMB 7,132,350 and RMB 623,302, respectively as of December 31, 2018 and 2019. Loss from continuing operations before income taxes were generated in the following jurisdictions: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Cayman Islands and British Virgin Islands (39,725,254 ) (29,296,296 ) (23,094,955) PRC (35,150,223 ) (39,680,573 ) (118,145,074) Hong Kong (37,472 ) 923,395 (21,586) Loss before continuing operations before income taxes (74,912,949 ) (68,053,474 ) (141,261,615) Income tax expense recognized in the consolidated statements of comprehensive income (loss) consists of the following: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB PRC Current income tax expense — — 905,078 Deferred income tax benefit (2,109,096 ) — (8,054,197) Total income tax benefit (2,109,096 ) — (7,149,119) 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 each of nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019 to earnings before income taxes due to the following: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Computed “expected” income tax benefit (18,728,237 ) (17,013,369 ) (35,315,404) Increase (decrease) in valuation allowance 9,261,477 (14,570,083 ) 23,171,671 Entities not subject to income tax 8,244,168 4,896,732 4,576,771 Non-deductible expenses Entertainment 98,299 255,843 394,380 Share-based compensation 1,696,514 2,427,342 1,202,364 Bad debt loss (96,683 ) 25,206 — Additional deduction of research and development costs (951,062 ) (447,525 ) (240,404) Withholding tax related to undistributed earnings (2,109,096 ) — — Gain from discharge of intercompany payables (a) — 25,594,493 — Investment loss from sale of non-redeemable non-controlling interests (b) — (1,725,000 ) — Other 475,524 556,361 (938,497) Actual income tax benefit (2,109,096 ) — (7,149,119) (a) The gain from discharge of intercompany payables represents the gain recognized from the discharge of payables of ATA Education due to ATA Learning, Zhongxiao Zhixing and ATA BVI. These payables were waived in accordance with the terms agreed in the ATA Online Sale Transaction. (b) The investment loss from sale of non-redeemable non-controlling interests represents the investment loss recognized from the transfer of 24% equity shares of Muhua Shangce to a limited partnership named Ningbo Meishan Bonded Port Area Zunming Investment Management Center (Limited Partnership) (“Limited Partnership”) from ATA Education for the year ended December 31, 2018. See note 16. The applicable PRC statutory income tax rate is used since the Group’s taxable income is generated in the PRC. The tax effects of the Group’s temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are as follows: December 31, 2018 December 31, 2019 RMB RMB Deferred income tax assets: Tax loss carry forwards 14,082,622 28,153,853 Impairment loss of long-term investments 4,132,700 10,148,827 Lease liability — 8,264,034 Impairment loss of intangible assets and other non-current assets — 2,233,110 Provision for other receivables — 1,396,914 Accrued expenses and other payables 2,946,135 4,213,877 Property and equipment, net 551,634 702,523 Donation 250,000 2,768,750 Total gross deferred income tax assets 21,963,091 57,881,888 Less: valuation allowance (21,275,591 ) (44,713,570) Total deferred income tax assets, net 687,500 13,168,318 Deferred income tax liabilities: Intangible assets — 32,657,242 Right-of-use assets — 10,196,572 Deferred revenues — 7,091,422 Change in fair value of long-term investment 687,500 — Total gross deferred income tax liabilities 687,500 49,945,236 Net deferred income tax assets — 11,464,891 Net deferred income tax liabilities — 48,241,809 The movements of the valuation allowance are as follows: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Balance at the beginning of the period 26,584,197 35,845,674 21,275,591 Additions 9,261,477 11,024,410 23,437,979 Reduction due to gain from discharge of intercompany payables — (25,594,493 ) — Balance at the end of the period 35,845,674 21,275,591 44,713,570 As of December 31, 2019, the valuation allowance of RMB 44,713,570 was related to the deferred income tax assets of PRC entities which were in loss position. As of December 31, 2019, management believes it is more likely than not that the Group will realize the deferred income tax assets, net of the valuation allowance. As of December 31, 2019, the Group had tax loss carry forwards for PRC income tax purpose of RMB 112,615,412 of which RMB 82,264,RMB5,770,566 , RMB 13,051,292 , RMB 1,593,134, RMB 10,761,200, RMB 24,885,644, RMB 14,047,874 and RMB 42,423,438 will expire if unused by December 31,2022, 2023, 2024, 2025, 2026, 2027, 2028 and 2029, respectively. For nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019, 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 2015. |
Non-Controlling Interests
Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interests | (1 6 ) NON-CONTROLLING INTERESTS (a) Redeemable non-controlling interests In February 2017, two third-party investors (“the investors”) acquired 20% of the equity interest of Muhua Shangce at a consideration of RMB 34,000,000. The investors have the right to ask Muhua Shangce to purchase back part or all of the equity interest if Muhua Shangce does not achieve a qualified IPO within 6 years, as defined by the investment agreement, at the redemption price of RMB 34,000,000 plus 8% of interest for the period from February 2017 to the date of redemption. The redeemable non-controlling interest was recorded outside permanent equity as mezzanine equity- redeemable non-controlling interests On September 26, 2019, Muhua Shangce entered into a new financing agreement with its redeemable non-controlling interests holder, Muhua Investment, and received cash of RMB 5,000,000 on September 29, 2019. After Muhua Shangce’s new financing, ACG’s equity shares decreased from 56% to 54.6% and ACG still has control of Muhua Shangce. The investor who made this new investment, has the right to ask Muhua Shangce to purchase back up to 50% of the new equity interests if Muhua Shangce does not achieve a qualified IPO within 5 years, as defined by the investment agreement, at the redemption price of RMB 2,500,000 plus 8% of interest for the period from September 2019 to the date of redemption. The redeemable non-controlling interest was recorded outside permanent equity as mezzanine equity- redeemable non-controlling interests in the consolidated balance sheets and initially recorded at the carrying value of RMB 2,500,000. The amount presented in redeemable non-controlling interest should be the greater of the non-controlling interest balance after attribution of net income or loss of the subsidiary and related dividends to the non-controlling interest or the amount of redemption value. RMB Balance as of April 1, 2017 — Add: Capital contribution 34,000,000 Less: Comprehensive loss (1,444,363 ) Accretion of redeemable non-controlling interests 3,748,639 Balance as of December 31, 2017 36,304,276 Less: Comprehensive loss (3,181,199 ) Accretion of redeemable non-controlling interests 6,085,542 Balance as of December 31, 2018 39,208,619 Add: Capital contribution 2,500,000 Less: Comprehensive loss (2,820,682 ) Accretion of redeemable non-controlling interests 6,008,491 Balance as of December 31, 2019 44,896,428 (b) Non-redeemable non-controlling interests On October 26, 2018, Board of Directors approved that 24% of the equity shares of Muhua Shangce was transferred to a limited partnership named Ningbo Meishan Bonded Port Area Zunming Investment Management Center (Limited Partnership) (“Limited Partnership”) from ATA Education at a consideration of RMB 1,500,000. The consideration has been fully paid to ATA Education by the Limited Partnership on December 26, 2018. As a result of the new investment made in 2019 to Muhua Shangce as stated above, 50% of the new investment, amounting to RMB 2,500,000, which does not represent redeemable non-controlling interests, was recorded under non-redeemable non-controlling interests. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | (1 7 ) 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. Prior to Huanqiuyimeng acquisition on August 6, 2019, the Group’s operations were organized into one operating segment. As a result of the Huanqiuyimeng Acquisition as described in Note 1, the Group classified the operating segments for the year ended December 31, 2019 into (i) Overseas art study services (ii) Other educational services and (iii) K12 education assessment and other services. The Group had one operating segment which was K12 education assessment and other services for the nine months ended December 31, 2017 and for the year ended December 31, 2018. Overseas art study services has been identified as one reportable segment. Other educational services and K12 education assessment and other services were aggregated as others because individually they do not exceed the 10% quantitative threshold. 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 were 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 to or evaluate the performance of the segments. The following table presents selected financial information relating to the Group’s segments: For the year ended December 31, 2019: Overseas art study services Others Consolidated RMB RMB RMB Net revenues 82,376,727 15,393,440 97,770,167 Operating cost and expenses: Cost of revenues 50,365,985 11,548,517 61,914,502 Research and development — 11,817,255 11,817,255 Selling and marketing 27,859,200 6,253,012 34,112,212 Unallocated corporate — — 81,923,516 Impairment loss of intangible assets and other non-current assets — 8,932,439 8,932,439 Provision for loan receivable and other receivables — 17,430,825 17,430,825 Total operating cost and expenses 78,225,185 55,982,048 216,130,749 Other operating income, net — 588,147 588,147 Income (loss) from continuing operations 4,151,542 (40,000,461) (117,772,435) For the year ended December 31, 2018: Others Consolidated RMB RMB Net revenues 1,338,592 1,338,592 Operating cost and expenses: Cost of revenues 4,251,451 4,251,451 Research and development 19,594,484 19,594,484 Selling and marketing 5,570,169 5,570,169 General and administrative 43,507,856 43,507,856 Total operating cost and expenses 72,923,960 72,923,960 Other operating income, net 3,793,418 3,793,418 Loss from continuing operations (67,791,950) (67,791,950) For nine months ended December 31, 2017: Others Consolidated RMB RMB Net revenues 5,185,822 5,185,822 Operating cost and expenses: Cost of revenues 3,785,865 3,785,865 Research and development 15,415,780 15,415,780 Selling and marketing 4,539,473 4,539,473 General and administrative 40,132,709 40,132,709 Total operating cost and expenses 63,873,827 63,873,827 Other operating income, net — — Loss from continuing operations (58,688,005) (58,688,005) *Unallocated corporate expenses represent the general and administrative expenses for the year ended December 31, 2019. Substantially all of the Group’s operations, customers and long-lived assets are located in the PRC. Consequently, no geographic information is presented. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | (1 8 ) SHARE-BASED COMPENSATION 2005 Share incentive plan In April 2005, the Company adopted a share incentive plan (the “2005 Plan”), pursuant to which the Company is authorized to issue options to officers, employees, directors and consultants of the Group to purchase up to 2,894,000 of its common shares. In October 2007, the Company’s board of directors approved an increase in the number of shares reserved for issuance under the 2005 Plan to 3,310,300 shares. The 2005 Plan expired in April 2015. Options awards provide for accelerated vesting if there is a change in control (as defined in the 2005 Plan). 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, 2019, 7,423,815 shares were reserved for issuance under the Second Amendment and Restatement of 2008 Plan. Under both the 2005 Plan and 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. 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 share options and 20,000 share options were granted to employees and officers, among which 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. A summary of the share options activities for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019 is presented below: Weighted Weighted Aggregate average remaining intrinsic Number of exercise contractual value shares USD years USD Outstanding as of March 31, 2017 2,451,067 2.21 Granted 50,000 2.35 Exercised — — Forfeited (50,000 ) 1.71 Expired (74,000 ) 3.60 Outstanding as of December 31, 2017 2,377,067 2.18 Granted 1,053,150 0.58 Exercised (119,792 ) 1.77 Forfeited (123,438 ) 1.71 Cancelled (1,901,752 ) 2.13 Expired (143,023 ) 3.89 Outstanding as of December 31, 2018 1,142,212 0.67 Granted 70,000 0.50 Exercised — — Forfeited (809,712) 0.61 Cancelled — — Expired — — Outstanding as of December 31, 2019 402,500 0.75 Vested and expected to vest as of December 31, 2019 402,500 0.75 8.59 35,753 Exercisable as of December 31, 2019 122,082 0.90 8.33 8,879 The aggregate intrinsic value of options outstanding and exercisable at December 31, 2019, was determined based on the closing price of the Company’s common shares on December 31, 2019. Information relating to options outstanding and exercisable as of December 31, 2019 is as follows: Options outstanding as of December 31, 2019 Options exercisable as of December 31, 2019 Exercise Remaining Exercise Remaining Number of Price Contractual Number Price Contractual Shares per Share Life of Shares per Share Life USD Years USD Years 62,500 1.71 7.05 35,416 1.71 7.05 320,000 0.58 8.85 86,666 0.58 8.85 20,000 0.53 9.21 — — — 402,500 0.75 8.59 122,082 0.90 8.33 The Company calculated the fair value of the share options on the grant date, for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019, using the Black-Scholes-Merton pricing valuation model. The assumptions used in the valuation model are summarized as follows: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 Expected dividend yield 8.7% 0% 0% Expected volatility 60% 57% 55%/54% Expected term 6.08 5.11/6.11 6.08 Risk-free interest rate (per annum) 1.96% 3.05%/3.10% 2.53%/2.45% 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 non-vested share options for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019 is allocated to the following expense items: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Research and development 476,994 157,355 68,016 Sales and marketing 272,568 70,915 — General and administrative 2,353,681 2,024,940 345,991 Total share-based compensation expense 3,103,243 2,253,210 414,007 As of December 31, 2019, RMB 331,885 of total unrecognized compensation expense related to non-vested share options is expected to be recognized over a weighted average period of a p Non-vested shares A summary of the non-vested shares activities for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019 is presented below: Weighted average Number grant date of shares fair value USD Outstanding at March 31, 2017 2,700,000 1.661 Granted — — Vested (60,000) 2.145 Forfeited (15,000) 1.650 Outstanding at December 31, 2017 2,625,000 1.650 Granted 2,572,584 0.537 Vested (2,068,586) 0.872 Forfeited (71,250) 1.650 Cancelled (1,262,250) 1.650 Outstanding at December 31, 2018 1,795,498 0.951 Granted — — Vested (693,362) 0.885 Forfeited — — Cancelled — — Outstanding at December 31, 2019 1,102,136 0.993 The total fair value of shares vested during nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019 was USD 148,500, USD 2,591,875 and USD 461,309 respectively. Upon vesting of the non-vested shares, the Company withholds shares issued to the employees to meet the relevant minimum tax withholding requirements. For nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019, the Company withheld 11,252, 93,496 and 28,456 vested shares upon vesting of the non-vested shares to satisfy the minimum tax withholding obligation. Compensation expense recognized for non-vested shares for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019 is allocated to the following expense items: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Cost of revenues — — — Research and development 516,339 240,441 367,313 Sales and marketing 258,170 96,058 — General and administrative 2,908,303 7,119,658 4,028,134 Total share-based compensation expense 3,682,812 7,456,157 4,395,447 As of December 31, 2019, RMB 2,077,009 of total unrecognized compensation expense related to non-vested shares is expected to be recognized over a weighted average period of approximately 2.17 years. |
Common Shares
Common Shares | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Common Shares | (1 9 ) 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 payment term of the subscription agreement. The rest of the proceeds of $1.2 million (RMB 8.5 million) was received on April 10, 2020. |
Cash Dividends
Cash Dividends | 12 Months Ended |
Dec. 31, 2019 | |
Cash Dividends Disclosure [Abstract] | |
Cash Dividends | ( 20 ) CASH DIVIDENDS On June 1, 2017, the Company’s board of directors declared a special cash dividend of USD 0.205 per common share, or USD 0.41 per ADS. The total amount of dividend was RMB 65,698,571 and was paid in cash in June and July 2017. On August 7, 2018, the Company’s board of directors declared a special cash dividend of USD 3.00 per common share, or USD 6.00 per ADS, subject to the completion of the ATA Online Sale Transaction. The total amount of dividend was approximately RMB 946.6 million and was paid in cash on August 24, 2018 in connection with the final closing of the Transaction. |
Statutory Reserves
Statutory Reserves | 12 Months Ended |
Dec. 31, 2019 | |
Statutory Reserves Disclosure [Abstract] | |
Statutory Reserves | (2 1 ) 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 distribution of dividends can be made. As of December 31, 2018 and December 31, 2019, the PRC consolidated entities had accumulated balances of statutory reserve of RMB 25,557,266 and RMB 25,671,341, respectively, which is restricted for distribution to the Company. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | ( 2 2 ) RELATED PARTY TRANSACTIONS Expenses paid to a Related Company on Behalf of Huanqiuyimeng From the Acquisition Date to December 31, 2019, Huanqiuyimeng prepaid RMB 1,038,494 to Shanghai Aixue Culture Communication Co., Ltd. (“Shanghai Loan Facility In June 2018, the prior president and director of ATA Creativity Global, Jack Huang, entered into a three-year Commercial Loan Facility (the “Facility”) with China Minsheng Bank Beijing Branch to borrow up to RMB 15,000,000 to support the working capital of ATA Education. The Facility is pledged by the real estate property of Gongyuan 16th floor owned by ATA Education, pursuant to which a corresponding three-year pledge agreement has been entered into between ATA Education and China Minsheng Bank Beijing Branch. Jack Huang and ATA Education also signed an agreement, pursuant to which all drawdowns received from China Minsheng Bank should be transferred to ATA Education and the interests of these drawdowns will be fully paid by ATA Education. ATA Education shall pay interest at 6.525% per annum on the commencement date for each drawdown. The interest rate is subject to potential adjustment based on premium interest rate stipulated by the People’s Bank of China. In June and July 2018, ATA Education has received a total of RMB 15,000,000 drawdowns and this loan has been fully paid back on October 15, 2018. The interest expenses incurred and paid by ATA Education for the year ended December 31, 2018 was RMB 249,683. On April 12, 2019, the real estate property of Gongyuan 16th floor was released from pledge and the Facility was terminated correspondingly. Disposal of ATA Online to entities controlled by Management On August 16, 2018, ACG completed the ATA Online Sale Transaction, among which, 67.5% of the equity interest of ATA Online was transferred to the entity controlled by ACG’s Chairman and Chief Executive Officer Mr. Kevin Xiaofeng Ma and the companies controlled by certain management members of ATA Online. See note 1 and note 26. Receivable due from shareholder In May 2015, the Group terminated the VIE agreements with the nominee shareholders of ATA Online. The entire equity interests of ATA Online were transferred from the nominee shareholders to ATA Learning and Zhongxiao Zhixing for a consideration of RMB 10.0 million, equivalent to the amount of the registered capital of ATA Online. As a result, ATA Online became a wholly owned subsidiary of the Group. The consideration was paid to the nominee shareholders. Mr. Haichang Xiong, has transferred his consideration of RMB 1.0 million to Mr. Kevin Xiaofeng Ma on March 29, 2016. The Group received RMB 10.0 million in cash from Mr. Kevin Xiaofeng on June 7, 2017. Sublease of Jianwai SOHO office to Master Mind ATA Education subleased Jianwai SOHO office to an equity investee, Master Mind Education Company (“Master Mind”), with a contract term from May 17, 2015 to May 16, 2020. Since June 2017, Master Mind has encountered severe cash flow and going concern issues and stopped making rent payment to the Company. In February 2018, the sublease agreement was terminated. The Company recognized a total sublease income of RMB 207,346, RMB nil and RMB nil, for nine months ended December 31, 2017, the years ended December 31, 2018 and 2019, respectively. Disposal of equity interest in ZhiShang to Tianjin Zhishang On June 27, 2017, ATA Online entered into an agreement to sell a 15% equity interest in Beijing Zhishang Education Technology Ltd. (“Zhishang”) to Tianjin Zhishang Education Technology Limited Partnership (“Tianjin Zhishang”) for a total cash consideration of RMB 1,253,550. The Executive Partner of Tianjin Zhishang is the CEO and a director of ATA Online. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | ( 2 3 ) COMMITMENTS AND CONTINGENCIES On April 27, 2017, the Group entered into a five-year agreement with Tsinghua University, under which ACG will support the research of the Research Institute of Future Education and Assessment at Tsinghua University under certain circumstances with funding support of RMB 50.0 million, out of which RMB 20.0 million will be paid in the following two years. The future minimum payments under the non-cancelable agreements as of December 31, 2019 are: Required Payments Amount RMB Year ended December 31: 2020 10,000,000 2021 10,000,000 2022 — 2023 — 2024 — 20,000,000 |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating Leases | ( 2 4 ) OPERATING LEASES Minimum rental income under operating lease is recognized on a straight-line basis over the term of the lease, including any periods of free rent. Property on Operating Lease December 31, 2018 December 31, 2019 RMB RMB Building 53,049,213 53,049,213 Less: Accumulated depreciation (16,932,130 ) (18,714,584) 36,117,083 34,334,629 For the major rental contracts terminated during the year ended December 31, 2019, future minimum rental income under non-cancelable operating lease as of December 31, 2019 is immaterial. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | ( 2 5 ) EARNINGS (LOSS) PER COMMON SHARE Basic and diluted earnings (loss) per common share are calculated as follows: Nine months ended December 31, Twelve months ended December 31, Twelve months ended December 31, 2017 2018 2019 RMB RMB RMB Numerator: Net earnings (loss) attributable to ATA Creativity Global 29,633,544 854,925,914 (122,253,989) Dividends paid to participating securities (3,749,630 ) (13,249,006 ) — Redeemable non-controlling interest redemption value accretion (3,748,639 ) (6,085,542 ) (6,008,491) Net earnings (loss) available to common shareholders 22,135,275 835,591,366 (128,262,480) Denominator: Denominator for basic earnings (loss) per share: Weighted average common shares outstanding 45,793,127 45,796,886 50,915,710 Denominator for diluted earnings (loss) per share 45,793,127 45,796,886 50,915,710 Basic loss per common share from continuing operations (1.72 ) (1.81 ) (2.62) Diluted loss per common share from continuing operations (1.72 ) (1.81 ) (2.62) Basic earnings per common share from discontinued operations 2.20 20.06 0.10 Diluted earnings per common share from discontinued operations 2.20 20.06 0.10 Basic earnings (loss) per common share attributable to ATA Creativity Global 0.48 18.25 (2.52) Diluted earnings (loss) per common share attributable to ATA Creativity Global 0.48 18.25 (2.52) The following table summarizes potential common shares outstanding excluded from the calculation of diluted earnings (loss) per share for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019, because their effect is anti-dilutive: Nine months ended December 31, Twelve months ended December 31, Twelve months ended December 31, 2017 2018 2019 Shares issuable under share options 2,377,067 1,142,212 402,500 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | ( 2 6 ) DISCONTINUED OPERATIONS On August 16, 2018, ACG completed the ATA Online Sale Transaction, among which, 17.5% of the equity interest of ATA Online was transferred directly and indirectly to two entities affiliated with funds managed by CDH Investments, a major Chinese alternative asset management firm based in Beijing (the “CDH Entities”), for a consideration of USD 35.0 million, 16.5% of the equity interest of ATA Online was transferred to three holding companies controlled by certain management members of ATA Online (the “Management Entities”), for a consideration of USD 33.0 million, 15% of the equity interest of ATA Online was transferred to Zhuhai Lihonghuaying Equity Investment Partnership (Limited Partnership), a China-based entity principally engaged in private equity investments, or the LHHY Entity, for a consideration of USD 30.0 million, and 51% of the equity interest of ATA Online was transferred indirectly to New Beauty Holdings Limited, a company controlled by Kevin Xiaofeng Ma, for a consideration of USD 102.0 million. Upon the final closing of the ATA Online Sale Transaction, a special cash dividend of approximately RMB 946.6 million was distributed on August 24, 2018. Due to the closing of the Transaction, balance sheet items related to the disposed business lines will no longer be consolidated into ACG’s financial statements since the completion date of the Transaction. For the periods presented, the results of discontinued operations, less applicable income taxes, prior to the disposal date are reported as two separate components of income (loss) on the consolidated statements of comprehensive income (loss) as applicable: 1) Income (loss) from operations of discontinued operations, net of income taxes, and 2) gain from disposal of discontinued operations, net of income taxes. The major classes of line items constituting operating results of discontinued operations included in the Company’s consolidated statements of comprehensive income (loss) were as follows for the nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019. The gain from disposal of discontinued operations, net of income taxes, recorded for the year ended December 31, 2019, was to account for the reimbursement of legal and consulting expenses from the buyer in relation to the sale of ATA Online business. Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Net revenues 484,873,277 194,939,146 — Cost of revenues 255,263,889 116,432,436 — Operating expenses 101,413,368 104,587,110 — Other income (loss) 3,962,257 6,929,814 — Income (loss) from operations of discontinued operations, before income taxes 132,158,277 (19,150,586) — Income tax expense (benefit) 31,517,344 (199,617) — Income (loss) from operations of discontinued operations, net of income taxes 100,640,933 (18,950,969) — Gain from disposal of discontinued operations, net of income taxes — 937,605,948 4,894,197 Income from discontinued operations, net of income taxes 100,640,933 918,654,979 4,894,197 Net loss attributable to non-redeemable non-controlling interests from discontinued operations (352,101) (10,608) — Net Income from discontinued operations attributable to ATA Creativity Global 100,993,034 918,665,587 4,894,197 The condensed cash flows of the discontinued operations were as follows for the nine months ended December 31, 2017, and the years ended December 31, 2018 and 2019. Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Net cash provided by (used in) operating activities 133,225,150 (25,108,520 ) 4,894,197 Net cash used in investing activities (22,052,885 ) (8,666,299 ) — Net cash used in financing activities (93,811,830 ) (21,098,633 ) — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | (2 7 ) SUBSEQUENT EVENTS Coronavirus Impact Due to the outbreak and global spreading of the Coronavirus (“COVID-19”) since January 2020, the Group’s sales have been and expected to continue being negatively impacted primarily due to the restrictions on international travels and temporary closures of overseas schools for safety considerations. In particular, substantially all of the Company’s training centers were closed since the Spring Festival Holiday and certain restrictions were imposed for full re-opening as of the annual report date. Students with any on-campus training have been given the option to take their classes online since the COVID-19 outbreak, although some of them prefer the traditional classroom format and have postponed their training, which have adverse impact on the Company’s net revenues to be recognized from portfolio training services. Enrollment from offline training centers have also been adversely affected due to temporary closure of training centers. The Group is relying primarily on online sales channels and referrals to recruit new customers during this time and expects to resume enrolling students from offline training centers once the COVID-19 is under control. In addition, the educational travel services are materially affected by delays and cancellations of tours due to COVID-19. The Group will continue to monitor the situation and act upon proactively. Given the uncertainty and dynamic nature of these circumstances, resulting in reduced enrollment for various services, the related financial impact cannot be reasonably estimated at this time but a material adverse impact is expected on the Company’s results of operations, cash flows and financial position for 2020. Legal Proceedings In March 2020, two of the Company’s shareholders, Alpha Advantage Global Limited (“Alpha”) and Dynamic Fame Limited (“Dynamic”) filed separate lawsuits with the Beijing Intermediate Court against the Company and Mr. Kevin Xiaofeng Ma, the chairman and chief executive officer of the Company relating to ATA Online Sale Transaction. The lawsuits claim that the board of the directors of the Company did not have the right to approve ATA Online Sale Transaction, because the approval by unrelated shareholders is required, and that the ATA Online Business was worth more than the total consideration of US$200.0 million. As a result, the sale has resulted in loss to the plaintiffs. The plaintiffs requested the overturn of all board resolutions of the Company regarding ATA Online Sale Transaction, Mr. Kevin Xiaofeng Ma to compensate RMB 95.0 million and RMB 5.0 million, respectively for the loss incurred by Alpha and Dynamic as a result of ATA Online Sale Transaction, and the Company and Mr. Kevin Xiaofeng Ma jointly bear the attorney’s fees of RMB 1.5 million and RMB 0.5 million respectively for Alpha and Dynamic, and other litigation costs incurred. In addition, Alpha and Dynamic jointly filed a lawsuit with Ningbo Intermediate Court against Mr. Kevin Xiaofeng Ma, certain entities controlled by management members of ATA Online which were members of the buyer group, New Beauty Holdings Limited, a director of the Company, ChineseAll Digital Publishing Group Co., Ltd. and ATA Learning in connection with ATA Online Sale Transaction, and listed the Company and ATA Online as interested third parties. The plaintiffs requested the overturn of all related party transactions between the defendants and the Company relating to ATA Online Sale Transaction, and Mr. Kevin Xiaofeng Ma, the entities controlled by management members of ATA Online and ChineseAll Digital Publishing Group Co., Ltd. to return the equity interest of ATA Online and ATA Learning they acquired to ATA Learning and ATA BVI, as the case may be, and all defendants and the Company to jointly bear the attorney’s fees of the plaintiffs in the amount of RMB 15.0 million and other litigation cost. As of the annual report date, the Company has filed an application for jurisdiction objection with the Beijing Intermediate Court for the lawsuits. While it is premature at this stage of the litigations to evaluate the likelihood of favorable or unfavorable outcomes, the Company believes that the plaintiffs’ claims lack merits and shall defend itself against those allegations. In accordance with ASC Topic 450, no accrual of loss contingency was accrued as of December 31, 2019 since it is not probable that a liability has been incurred and the amount of loss cannot be reasonably estimated. |
ATA Creativity Global (_Parent
ATA Creativity Global (“Parent Company”) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
ATA Creativity Global (“Parent Company”) | ( 2 8 ) ATA CREATIVITY GLOBAL (“PARENT COMPANY”) The following presents condensed financial information of the Parent Company only. Condensed Balance Sheets December 31, 2018 December 31, 2019 December 31, 2019 RMB RMB USD Cash and cash equivalents 15,396,381 77,996,136 11,203,444 Prepaid expenses and other current assets 3,104 13,154 1,888 Subscription receivable — 8,530,931 1,225,392 Loan receivable, net 14,532,685 4,126,502 592,735 Investments in subsidiaries 247,870,563 213,391,690 30,651,798 Total assets 277,802,733 304,058,413 43,675,257 Accrued expenses and other current liabilities 1,985,894 3,918,340 562,834 Total liabilities 1,985,894 3,918,340 562,834 Common shares 3,534,871 4,692,312 674,008 Treasury shares (27,737,073 ) (27,737,073) (3,984,181) Additional paid in capital 410,195,990 560,814,066 80,555,900 Accumulated other comprehensive loss (38,288,364 ) (37,478,167) (5,383,402) Accumulated deficit (71,888,585 ) (200,151,065) (28,749,902) Total shareholders’ equity 275,816,839 300,140,073 43,112,423 Total liabilities and shareholders’ equity 277,802,733 304,058,413 43,675,257 Condensed Statements of Comprehensive Income (Loss) Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 2019 RMB RMB RMB USD Operating expenses (14,273,099 ) (4,963,891 ) (6,928,823) (995,263) Provision for loan receivable — — (11,843,167) (1,701,164) Investment income (loss) 40,802,611 852,782,280 (110,881,674) (15,927,156) Interest expense (52,074 ) (446 ) — — Interest income 15,394 1,306,567 1,391,183 199,831 Foreign currency exchange gains (losses), net (607,927 ) (284,138 ) 1 — Earnings (loss) before income taxes 25,884,905 848,840,372 (128,262,480) (18,423,752) Income tax expense — — — — Net income (loss) 25,884,905 848,840,372 (128,262,480) (18,423,752) Other comprehensive income (loss) (1,781,184 ) (11,437,409 ) 810,197 116,378 Comprehensive income (loss) 24,103,721 837,402,963 (127,452,283) (18,307,374) Condensed Statements of Cash Flows Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 2019 RMB RMB RMB USD Net cash used in operating activities (5,003,772 ) (29,996,291 ) (4,797,830) (689,165) Cash flows from investing activities : Cash received from subsidiaries 73,178,416 1,001,941,215 — — Loan lent to Beijing Biztour — (13,745,856 ) — — Proceeds from disposal of discontinued operations — — 4,894,197 703,007 Net cash provided by investing activities 73,178,416 988,195,359 4,894,197 703,007 Cash flows from financing activities : Private placement — — 61,693,192 8,861,673 Cash received for exercise of share options — 1,433,441 — — Special cash dividend (65,698,571 ) (946,611,803 ) — — Net cash used in financing activities (65,698,571 ) (945,178,362 ) 61,693,192 8,861,673 Effect of foreign exchange rate changes on cash (1,173,526 ) 568,046 810,196 116,377 Net increase in cash 1,302,547 13,588,752 62,599,755 8,991,892 Cash at beginning of period 505,082 1,807,629 15,396,381 2,211,552 Cash at end of period 1,807,629 15,396,381 77,996,136 11,203,444 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of consolidation | (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, or VIE for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. Non-redeemable non-controlling interests are separately presented as a component of equity in the consolidated financial statements. |
Basis of presentation | (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”). On June 1, 2017, the Company declared a change in the fiscal year end from March 31 to December 31. As a result, the Group has presented the nine-month period ended December 31, 2017 as its transition period, which impacts the comparability of the Group’s results between the transition period and the full years ended December 31, 2018 and 2019. Due to the ATA Online Sale Transaction, which represented a strategic shift and had a major effect on the Group’s result of operations, revenues, costs and expenses related to ATA Online Business have been reclassified in the accompanying consolidated financial statements as discontinued operations for all the periods presented. See note 1 and note 26. |
Use of estimates | (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 available-for-sale investment, 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 standalone 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. |
Foreign currency | (d) Foreign currency The accompanying consolidated financial statements have been expressed in RMB, the Company’s reporting currency. The Company, ATA BVI and Xing Wei’s functional currency is USD. The functional currency of the Company’s PRC subsidiaries 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 and Xing Wei 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. The resulting foreign currency translation adjustments are recognized as a separate component of accumulated other comprehensive 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 2019 RMB amounts included in the accompanying consolidated financial statements have been translated into USD at the rate of USD 1.00 = RMB 6.9618, 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 December 31, 2019. 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 December 31, 2019. |
Commitments and contingencies | (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, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. |
Fair value measurements | (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. • 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. |
Revenue recognition | (g) Revenue recognition The Group’s revenue is primarily generated from portfolio training services, educational travel services, overseas study counseling services and other educational services through its network in China and abroad as a result of Huanqiuyimeng Acquisition on August 6, 2019. See Note 3. Prior to the consummation of the ATA Online Sale Transaction as described in Note 1, the Group primarily provided computer-based testing services and online education services, which have been classified and reported under discontinued operations for all the periods presented. See Note 26. The Group’s 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. Periods commencing January 1, 2018 Since the adoption of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”) 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 considered 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. 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 compiles 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 trainings 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 trainings required to complete a project is not pre-determined and varies depending on the background and requirements of individual students. The Group reassesses 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. ii) 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. The Group accounts for the educational travel services as one performance obligation, as individual activities within a contract are not distinct within the context of the contract. The Group recognizes revenue over the educational travel service period as the students simultaneously receive and consume the benefits of these services throughout the service period on the basis of costs incurred to-date to the total estimated costs. 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 counseling 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 iv) Other educational services Other educational services mainly consist of language training services, junior art education services and in-school classes. Revenue is recognized when control of promised services are transferred to the customers in an amount of consideration to which the Group expects to be entitled to in exchange for those services. v) K12 education assessment and other services The Group derives revenues by providing the assessment reports for the test takers to customers. Revenues from education assessment services are recognized when the Group delivers the reports to customers, which is when the control over the report has been transferred to customers. Fees received in advance are recorded as deferred revenue when the Group has an obligation to transfer goods or services to a customer for which the Group has received consideration. The Group derives content development revenue by designing test model and providing the developed content to customers. Revenues from content development are recognized when the Group delivers the developed content to customers, which is when the control over the content has been transferred to customers. Revenues generated from ATA Online Business, which primarily include testing services and online education services have been classified and reported under discontinued operations for all the periods presented. See Note 26. vi) Testing services The Group derives revenues by providing testing services to the test takers for customers. Testing services revenues are recognized upon the completion of the exam by the test takers when the control over the service has been transferred to customers. vii) Online education services The Group provides an online platform for students to conduct continuing education. The platform entitles students to access online education services during a specified service period (the “subscription period”). The Group determines that the customer simultaneously receives and consumes benefits provided by the Group’s performance as the Group performs during the term of the contract. Service fees are initially recorded as deferred revenue and are recognized as revenue on a straight-line basis over the subscription period. The Group adopted ASC 606, Revenue from Contracts with Customers Results for reporting periods after January 1, 2018 are presented in accordance with the new revenue guidance, while prior period amounts are not adjusted and continue to be reported in accordance with ASC 605, Revenue Recognition For the nine months ended December 31, 2017, RMB 4,041,142 of rental income was recorded under net revenues. For the year ended December 31, 2018 and 2019, rental income of RMB 5,943,984 and RMB 1,580,270, after netting off relevant costs, was classified as “other operating income, net” as a result of the adoption of new revenue guidance ASC 606, effective January 1, 2018. Net revenues for the years ended December 31, 2018 and 2019 would have increased by RMB 5,943,984 and RMB 1,580,270 if the Group had not adopted ASC 606, Revenue from Contracts with Customers. Periods prior to January 1, 2018 Prior to January 1, 2018, the Group’s revenues are principally derived from the provision of testing services and online education services. The Group recognizes revenues when all of the following have occurred: • persuasive evidence of an agreement with the customer exists; • services have been performed and/or delivery of goods has occurred; • the fees for services performed and/or price of goods sold are fixed or determinable; and • collectability of the fees and/or sales proceeds is reasonably assured. Application of the above criteria for revenue recognition for each type of service or product i) Testing services Fees for testing services are recognized upon the completion of the exam by the test taker since the Group has no significant future involvement after the completion of the examination. Fees received in advance of test delivery are recorded as deferred revenue. ii) Online education services The Group provides an online platform for students to conduct continuing education. The platform entitles students to access online education services during a specified service period (the “subscription period”). Service fees are initially recorded as deferred revenue and are recognized as revenue on a straight-line basis over the subscription period. iii) Other revenue a) Licensing fees from authorized test centers The Group receives a fixed fee for a perpetual license that provides authorized test centers the right to use the Group’s brand name and e-testing platform. The Group is obligated to provide training and support to authorized test centers’ staff. Fixed fees for perpetual licenses are recognized on a straight-line basis over the expected licensing period of 10 years, which is the period the Group is expected to have continuing involvement with the authorized test centers. Management estimates the expected licensing period based on its historical retention experience, factoring in the expected level of future competition, the risk of technological obsolescence, technological innovation, and expected changes in the education training environment. b) Test development services Test development service fees are recognized upon the acceptance of the developed tests by the customer. The period to develop the tests is short, generally within two to six months from commencement of development. c) Test administration products Test administration products sales are recognized upon delivery and when collectability is reasonably assured. d) Operating leases The Group recognized the revenue from operating lease on a straight-line basis over the lease term. |
Contract cost | (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). |
Cost of revenues | ( i ) Cost of revenues Prior to the Huanqiuyimeng Acquisition,cost of revenues consists primarily of content development costs, amortized expenses of education assessment caseware, payroll compensation, and other related costs, which are directly attributable to the rendering of various services. As a result of Huanqiuyimeng Acquisition, cost of revenues primarily consist of (1) teaching fees, payroll compensation for teaching support and administrative employees, 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 educational travel 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 K12 education assessment and other services. |
Research and development costs | ( j ) Research and development costs Research and development costs primarily consist of cost incurred over software developed for internal use and software developed for sale. i) Software developed for internal use 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. ii) Software developed for sale Costs incurred internally in researching and developing a computer software product are charged to expense as research and development costs prior to technological feasibility being established for the product. Once technological feasibility is established, all computer software costs are capitalized until the product is available for general release to customers. Technological feasibility is established upon completion of all the activities that are necessary to substantiate that the computer software product can be produced in accordance with its design specifications, including functions, features, and technical performance requirements. |
Lease | ( k ) Lease The Group is a lessee in a number of non - Periods prior to January 1, 2019 Operating lease The Group leases offices under non-cancellable operating leases. Leases with escalated rent provisions are recognized on a straight-line basis commencing with the beginning of the lease term. There is no contingent rent in the lease agreements. The lease terms range between 12 and 36 months. Capital lease On initial recognition, assets held under capital leases are recorded as property and equipment. At inception of the lease, capital leases are recorded at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. Minimum lease payments under capital leases are apportioned between finance expense and reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Periods commencing January 1, 2019 From January 1, 2019, the Group accounts for leases in accordance with ASC Topic 842, Leases 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. • The lease term for all of the Group’s leases includes the non-cancellable period of the lease plus any additional periods covered by either the Group’s option to extend (or not to terminate) the lease that the Group is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. • Lease payments included in the measurement of the lease liability comprise the following: – Fixed payments, including in-substance fixed payments, owed over the lease term (which includes termination penalties the Group would owe if the lease term assumes the Group to exercise a termination option); – Variable lease payments that depend on an index or rate, initially measured using the index or rate at the lease commencement date; – Amounts expected to be payable under the Group-provided residual value guarantee; and – The exercise price of the Group’s option to purchase the underlying asset if the Group is reasonably certain to exercise the option. 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. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus 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 income 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 The Group monitors for events or changes in circumstances that require a reassessment of one 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 other non-current liabilities on the consolidated balance sheet. 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, 2019, the Company did not have any finance leases. The Company adopted the new lease accounting standard since January 1, 2019, and elected to apply the transition provisions of the standard on the date of adoption. Accordingly, the Company didn’t restate prior year comparative periods for the impact of the new lease accounting standard. The Company also elected the package of practical expedients permitted under the transition guidance within the new lease accounting standard, including: (1) the Group didn’t reassess whether any expired or existing contracts are or contain leases; (2) the Group combined lease and non-lease components for facilities leases, which primarily relate to ancillary expenses such as common area maintenance charges and management fees of its operating leases. In addition, for leases with a term of 12 months or less, an election was made not to recognize lease assets and lease liabilities. Upon the adoption of the new lease accounting standard ASC 842, the Company recognized right-of-use assets and lease liabilities of approximately RMB 3.5 million and RMB 3.0 million, respectively, at January 1, 2019, consisting primarily of operating leases relating to office space. |
Income taxes | ( 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). |
Share-based payment | ( 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. 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 have been 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. |
Cash and cash equivalents | ( 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. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted cash |
Accounts receivable | ( o ) Accounts receivable Accounts receivable are recognized at invoiced amounts, less an allowance for uncollectible accounts, if any. The allowance for doubtful accounts is the management’s best estimate of the amount of probable credit losses resulting from the inability of the Group’s customers to make required payments. The allowance for doubtful accounts is based on a review of specifically identified accounts, aging data and historical collection pattern. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. |
Long-term investments | ( 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 share of income (losses) of equity method investments 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 Prior to January 1, 2018, the Group accounted for other equity investments without a readily determinable fair value using the cost method. In connection with the adoption of ASC321 Investment—Equity securities 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. Available-for-sale investment The Group’s investment in convertible notes are classified as available-for-sale investments which are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. An impairment loss on the available-for-sale investment is recognized in profit and loss when the decline in value is determined to be other than temporary. |
Property and equipment, net | ( 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 5 years Software 3 to 5 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. |
Intangible assets | ( r ) Intangible assets Intangible assets mainly consist of externally purchase text content and software platform and acquired intangible assets resulting from the acquisitions of entities 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 1.4 to 10 years. The Group has no intangible assets with indefinite useful lives. |
Impairment of long-lived assets, excluding goodwill | ( 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. |
Goodwill | ( t ) Goodwill Goodwill represents the excess purchase price over the estimated fair value of net assets acquired in a business combination. Goodwill is reviewed for impairment at least annually based on the Group’s reporting units, which are defined as reportable segments or groupings of businesses one level below the reportable segment level. The Group performs a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. If the two-step goodwill impairment test is required, first, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit’s goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. Annual impairment review over goodwill was performed at March 31 before the change of fiscal year end and was performed at December 31 after the change of fiscal year end, and when a triggering event occurs between annual impairment tests. |
Employee benefit plans | ( 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 nine months ended December 31, 2017, the years ended December 31, 2018 and 2019 are allocated to the following expense items: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Cost of revenues 78,381 79,280 2,363,553 Research and development 2,296,392 3,232,457 2,468,898 Sales and marketing 334,628 771,479 2,077,128 General and administrative 810,713 1,530,096 3,301,256 Total expense due to employee benefit plans 3,520,114 5,613,312 10,210,835 |
Earnings per share | ( v ) Earnings per share Basic earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding during the year using the two-class method. Under the two-class method, net income is allocated between common shares and other participating securities based on their participating rights in undistributed earnings. The Company’s 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). Diluted earnings per share is calculated by dividing net earnings 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 the exercise of outstanding share options (using the treasury stock method). Common equivalent shares in the diluted earnings per share computation are excluded to the effect that they would be anti-dilutive. The Group uses income (loss) from continuing operations as the control number in determining whether the potential common shares are dilutive or anti-dilutive. |
Segment reporting | ( 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 its performance in determining the Group’s operating segments. As a result of the Huanqiuyimeng Acquisition as described in Note 1, the Group classified the operating segments for the year ended December 31, 2019 into (i) Overseas art study services (ii) Other educational services and (iii) K12 education assessment and other services. The Group had one operating segment which included K12 education assessment and other services for the nine months ended December 31, 2017 and for the year ended December 31, 2018. Substantially all of the Group’s operations, customers and long-lived assets are located in the PRC. Consequently, no geographic information is presented. |
Discontinued operations | ( x ) Discontinued operations When a component of the Group’s business is sold or expected to be sold during the year, the Group considers whether the criteria of ASC 205-20, Discontinued Operations When a discontinued operation is disposed of before being classified as held for sale, the Company presents the assets and liabilities of the discontinued operation separately from other assets and liabilities on the consolidated balance sheet before the period that includes the disposal. |
Business combination | ( y ) Business combination Business combinations are recorded using the acquisition method of accounting in accordance with ASC topic 805 (“ASC 805”): Business Combinations |
Recently issued accounting standards | ( z ) Recently issued accounting standards In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820); Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”) In December 2019, the FASB issued ASU 2019-12, Income Tax (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) |
Description of Business, Orga_2
Description of Business, Organization and Significant Concentrations and Risks (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Credit concentration risk, customers or financial institutions | Cash and cash equivalents | |
Significant Concentrations and Risks | |
Schedule of Significant Concentrations and Risks | Cash and cash equivalents consist of cash on hand and cash at bank. Cash at bank are deposited in financial institutions at below locations: December 31, 2018 December 31, 2019 RMB RMB Financial institutions in the mainland of the PRC — Denominated in Renminbi (“RMB”) 143,760,647 47,224,436 — Denominated in U.S. Dollar (“USD”) 34 12,292,950 Total cash balances held at mainland PRC financial institutions 143,760,681 59,517,386 Financial institutions in Hong Kong Special Administrative Region (“HKSAR”) of the PRC — Denominated in RMB 672 — — Denominated in Hong Kong Dollar (“HKD”) 8,064,121 2,875,819 — Denominated in USD 38,358,069 91,793,594 — Denominated in Great Britain Pound 402,799 2 Total cash and cash equivalents balances held at HKSAR financial institutions 46,825,661 94,669,415 Total cash and cash equivalents balances held at financial institutions 190,586,342 154,186,801 |
ATA Intelligent Learning | |
Significant Concentrations and Risks | |
Schedule of Financial Statement Amounts and Balances of Vie Included in Accompanying Consolidated Financial Statements | The following financial statement amounts and balances of ATA Intelligent Learning were included in the accompanying consolidated financial statements of the Company as of and for the years ended December 31, 2018 and 2019. December 31, 2018 December 31, 2019 RMB RMB Cash 25,369,355 435,122 Prepaid expenses and other current assets 32,860 4,180 Total current assets 25,402,215 439,302 Long-term investments (i) 5,919,198 89,605,550 Property and equipment, net 8,382 11,972 Other non-current assets — 2,590 Total assets 31,329,795 90,059,414 Accrued expenses and other payables 455,577 — Payable for business acquisition — 19,642,082 Amounts due to a related party (ii) 28,000,000 42,000,000 Total current liabilities 28,455,577 61,642,082 Total liabilities 28,455,577 61,642,082 Year ended December 31, 2018 Year ended December 31, 2019 RMB RMB Net revenues — — Net loss (7,125,782 ) (14,456,886) Year ended December 31, 2018 Year ended December 31, 2019 RMB RMB Net cash used in operating activities (172,145 ) (1,441,360) Net cash used in investing activities (iii) (12,458,500 ) (77,492,873) Net cash received from financing activities (iii) 38,000,000 54,000,000 (i) Long-term investments as of December 31, 2019 include investment cost and share of loss of 30.96% equity interest investment in Huanqiuyimeng, which is eliminated on consolidation. ( ii ) Amounts due to a related party represent the amount due to ATA Education, which are eliminated on consolidation. (ii i ) For the year ended December 31, 2018, RMB 12,450,000 of net cash used in investing activities and RMB 38,000,000 of net cash received from financing activities were related to the transactions with ACG subsidiaries, which are eliminated on consolidation. For the year ended December 31, 2019, RMB 54,000,000 of net cash received from financing activities were related to the transactions with ACG subsidiaries, which are eliminated on consolidation. In addition, RMB71,483,973 of net cash used in investing activities were related to payments made for Huanqiuyimeng Acquisition. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Property and Equipment, Net | 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 5 years Software 3 to 5 years Motor vehicles 5 years Leasehold improvements The shorter of lease terms and estimated useful lives |
Employee Benefit Plans | Employee benefit expenses recognized under these plans for nine months ended December 31, 2017, the years ended December 31, 2018 and 2019 are allocated to the following expense items: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Cost of revenues 78,381 79,280 2,363,553 Research and development 2,296,392 3,232,457 2,468,898 Sales and marketing 334,628 771,479 2,077,128 General and administrative 810,713 1,530,096 3,301,256 Total expense due to employee benefit plans 3,520,114 5,613,312 10,210,835 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Identifiable Assets Acquired and Liabilities Assumed in Connection with Acquisition | A summary of identifiable assets acquired and liabilities assumed in connection with the acquisition is as follows: RMB Purchase consideration: Cash 91,126,055 Fair value of 9,360,000 76,868,663 167,994,718 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash 36,785,802 Prepaid expenses and other current assets 26,333,563 Long-term investments 157,850 Property and equipment, net 8,505,683 Intangible assets Trademark 79,000,000 Non-compete arrangements 56,000,000 Order backlogs 4,000,000 Other non-current assets 881,926 Right-of-use assets 32,089,416 Deferred revenues (163,400,000) Short-term loan (13,991,000) Lease liabilities-current (18,728,346) Deferred income tax liabilities (45,659,880) Accrued expense and other payables (14,326,672) Other non-current liabilities (13,361,070) Total identifiable assets acquired and liabilities assumed (25,712,728) Fair value of non-redeemable non-controlling interests in Huanqiuyimeng (6,771,349) Goodwill 200,478,795 |
Summarized Unaudited Pro Forma Results of Operations | The following summarized unaudited pro forma results of operations for the years ended December 31, 2018 and 2019 assuming that the acquisition of Huanqiuyimeng occurred as of January 1, 2018. The unaudited pro forma financial information is supplemental information only and is not necessarily indicative of the results of operations which actually would have been had the acquisitions occurred as of January 1, 2018, nor is it indicative of future operating results. For the years ended December 31, 2018 2019 RMB RMB (Unaudited) (Unaudited) Pro forma net revenues 105,071,457 201,416,606 Pro forma net income (loss) attributable to ATA Creativity Global 757,139,789 (174,265,822) |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: December 31, 2018 December 31, 2019 RMB RMB Amount due from Beijing Biztour 3,713,166 1,960,403 VAT-input deductible 2,675,486 1,893,650 Income tax refundable — 2,800,622 Advances to employees 13,919 1,605,908 Other current assets 1,433,521 8,229,786 Total prepaid expenses and other current assets 7,836,092 16,490,369 |
Long-term Investments (Tables)
Long-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long Term Investments [Abstract] | |
Schedule of Other Equity Investments | Other equity investments December 31, 2018 December 31, 2019 RMB RMB Beijing Empower Education Online Co., Ltd. 38,000,000 38,000,000 ApplySquare Education & Technology Co., Ltd. 22,471,700 1,576,391 Beijing GlobalWisdom Information Technology Co., Ltd. 5,919,198 — Beijing Xiaozhi Education & Technology Co., Ltd. — 6,000,000 Beijing Futou Technology Co., Ltd. — 150,000 Total other equity investments 66,390,898 45,726,391 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Roll-forward of Fair Value of Level 3 (Significant Unobservable Inputs) Assets | The following table presents a roll-forward of the fair value of Level 3 available-for-sale investment for nine months ended December 31, 2017 and the years ended December 31, 2018 and 2019, respectively: Available-for-sale investment RMB Ending balance as of March 31, 2017 10,376,547 Total gain or losses: Included in net income (10,458,538) Reclassification adjustment for loss on available-for-sale investment included in net income, net of nil income tax 553,870 Foreign currency translation adjustment (471,879) Ending balance as of December 31, 2017, 2018 and 2019 — |
Schedule of Fair Value Hierarchy of Assets That Are Measured at Fair Value on Non-recurring Basis | The following tables present the placement in the fair value hierarchy of assets that are measured at fair value on a non-recurring basis at December 31, 2018 and 2019: Fair value disclosure or measurement at December 31, 2018 using December 31, 2018 Level 1 Level 2 Level 3 RMB RMB RMB RMB Other equity investments ApplySquare Education & Technology Co., Ltd. 22,471,700 — — 22,471,700 Beijing GlobalWisdom Information Technology Co., Ltd. 5,919,198 — — 5,919,198 Fair value disclosure or measurement at December 31, 2019 using December 31, 2019 Level 1 Level 2 Level 3 RMB RMB RMB RMB Other equity investments ApplySquare Education & Technology Co., Ltd. 1,576,391 — — 1,576,391 Beijing GlobalWisdom Information Technology Co., Ltd. — — — — |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consist of the following: December 31, 2018 December 31, 2019 RMB RMB Building 53,049,213 53,049,213 Computer equipment 599,992 3,491,575 Furniture, fixtures and office equipment 1,437,949 1,890,013 Motor vehicles 1,986,506 1,986,506 Software 1,156,779 1,797,197 Leasehold improvements 695,185 14,419,590 58,925,624 76,634,094 Less: accumulated depreciation and amortization (21,494,883 ) (34,563,300) Property and equipment, net 37,430,741 42,070,794 |
Schedule of Allocation of Depreciation Expense Recognized | Total depreciation expense recognized for nine months ended December 31, 2017, the years ended December 31, 2018 and 2019 is allocated to the following expense items: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Cost of revenues 1,384,157 3,802 28,389 Research and development 641,793 640,372 226,173 Sales and marketing 111,226 122,199 35,343 General and administrative 626,395 417,295 4,491,492 Other operating income, net — 1,782,454 369,048 Total depreciation expense 2,763,571 2,966,122 5,150,445 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Change in the Carrying Amount of Goodwill | The change in the carrying amount of goodwill is as follows: RMB Balance as of December 31, 2017 32,009,025 Less: Disposal of discontinued operations (Note 26) (32,009,025 ) Balance as of December 31, 2018 — Add: Acquisition of Huanqiuyimeng 200,478,795 Balance as of December 31, 2019 200,478,795 |
Summary of Company's Intangible Assets | The following table summarizes the Company’s intangible assets, as of December 31, 2018 and 2019. December 31, 2018 Gross carrying amount Accumulated amortization /deduction Impairment Net carrying amount Weighted average amortization period RMB RMB RMB RMB Years Education assessment caseware (i) 9,251,887 (2,430,708 ) — 6,821,179 5 Software platform of Project Shuang Chuang (ii) 10,844,339 (542,940 ) — 10,301,399 5 Total intangible assets 20,096,226 (2,973,648 ) — 17,122,578 December 31, 2019 Gross carrying amount Accumulated amortization /deduction Impairment Net carrying amount Weighted average amortization period RMB RMB RMB RMB Years Trademark (iii) 79,000,000 (3,291,667) — 75,708,333 10 Non-compete arrangements (iii) 56,000,000 (3,888,889) — 52,111,111 6 Order backlogs (iii) 4,000,000 (1,190,476) — 2,809,524 1.4 Education assessment caseware (i) 9,251,887 (4,281,085) — 4,970,802 5 Software platform of Project Shuang Chuang (ii) 10,844,339 (2,716,145) (8,128,194) — 5 Total intangible assets 159,096,226 (15,368,262) (8,128,194) 135,599,770 (i) Education assessment caseware is the test content purchased for the Company’s strategic K-12 academic assessment business, which includes three subjects of Literature, Mathematics and English over six grades of junior and senior high school. (ii) Software platform of Project Shuang Chuang is the software platform purchased from a third party for providing vocational assessment and training services that focuses on the innovation related competencies of college students. As of December 31, 2019, the Company conducted impairment test on intangible assets and identified that no cash inflows nor feasibility use is anticipated from the intangible assets and other non-current assets recorded relating to the software platform developed under Project Shuang Chuang. As a result, RMB 8,932,439 of impairment loss relating to intangible assets and other non-current assets for software platform of Project Shuang Chuang (iii) Trademark, Non-compete arrangements and Order backlogs were recorded as a result of Huanqiuyimeng Acquisition. See note 3 for details. |
Summary of Total Amortization Expense Recognized | Total amortization expense recognized for nine months ended December 31, 2017, the years ended December 31, 2018 and 2019 is allocated to the following expense items: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Cost of revenues 753,114 1,468,726 2,031,478 Sales and marketing — 542,940 1,992,105 General and administrative — — 8,371,032 Total amortization expense 753,114 2,011,666 12,394,615 |
Schedule of Estimated Amortization Expense | As of December 31, 2019, the estimated amortization expense for the next five years is as follows: December 31 RMB 2020 21,893,234 2021 19,083,711 2022 18,121,730 2023 17,614,984 2024 17,233,333 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Schedule on Impact of ASC 842 on Consolidated Balance Sheet | The impact of ASC 842 on the December 31, 2019 consolidated balance sheet was as follows: December 31, 2019 RMB Operating leases: Right-of-use lease assets 40,786,291 Lease liabilities-current 20,556,017 Other non-current liabilities 12,500,120 |
Summary of Other Information Related to Leases | Other information related to leases is presented below: December 31, 2019 RMB Supplemental cash flow information: Cash paid for amounts included in measurement of operating leases liabilities 12,850,734 Right-of-use assets acquired in exchange for operating lease obligations 8,696,875 Right-of-use assets acquired in connection with Huanqiuyimeng Acquisition 32,089,416 Weighted average remaining lease term 1.67 Weighted average discount rate 5.88% |
Schedule on Maturities of Lease Liabilities under Non-Cancellable Leases | Maturities of lease liabilities under non-cancellable leases as of December 31, 2019 are as follows: Operating leases RMB 2020 21,869,242 2021 10,956,342 2022 2,601,561 2023 359,048 2024 — Thereafter — Total undiscounted lease payments 35,786,193 Less: Imputed interest (2,730,056) Total lease liabilities 33,056,137 Amounts due within 12 months 20,556,017 Non-current lease liability 12,500,120 |
Summary of Short-term Lease Commitments | Short-term lease expense, with a lease term of 12 months or less, for the year ended December 31, 2019 was RMB 2,125,616 and short-term lease commitments as of December 31, 2019 are as follows: Short-term Lease Commitments Amount RMB Year ended December 31: 2020 1,506,677 1,506,677 |
Schedule on Future Minimum Annual Lease Payments under (ASC 840) Operating Leases | As previously disclosed in the consolidated financial statements for the year ended December 31, 2018 and under the previous lease standards (ASC 840), future minimum annual lease payments for the years subsequent to December 31, 2018 and in aggregate are as follows: Minimum Lease Payments RMB Year ended December 31: 2019 2,959,829 2020 346,745 2021 — 2022 — 2023 — 3,306,574 |
Accrued Expenses And Other Pa_2
Accrued Expenses And Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Payables | Accrued expenses and other payables consist of the following: December 31, 2018 December 31, 2019 RMB RMB Refund liability* — 8,919,239 Accrued payroll and welfare 8,934,828 22,821,689 Accrued test monitoring fees 2,432,153 2,432,153 Accrued professional services expenses 755,849 3,489,512 Income taxes payable — 679,961 Other current liabilities 5,989,109 9,404,500 Total accrued expenses and other payables 18,111,939 47,747,054 *Refund liability represents the estimated amount of refund if a student decides to withdraw from the Group’s programs or services and is estimated based on historical experience. |
Change in Fiscal Year End (Tabl
Change in Fiscal Year End (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Change In Fiscal Year End [Abstract] | |
Schedule of Consolidated Income Statement | The consolidated financial statements for the nine-month period ended December 31, 2017 is not comparable to that as of and for the twelve months ended December 31, 2018. For comparison purposes, the Group included the selected data from unaudited consolidated income statement for the twelve-month period ended December 31, 2017 per below: Twelve months ended December 31, 2017 2018 RMB RMB Net revenues 7,389,371 1,338,592 Cost of revenues 4,957,647 4,251,451 Gross profit (loss) 2,431,724 (2,912,859 ) Operating expenses 74,104,081 68,672,509 Other operating income, net — 3,793,418 Loss from operations (71,672,357 ) (67,791,950 ) Other loss, net (16,427,003 ) (261,524 ) Loss from continuing operations before income taxes (88,099,360 ) (68,053,474 ) Income tax benefit (591,290 ) — Loss from continuing operations, net of income taxes (87,508,070 ) (68,053,474 ) Income from discontinued operations, net of income taxes 61,431,845 918,654,979 Net income (loss) (26,076,225 ) 850,601,505 |
Net Revenues (Tables)
Net Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Revenues Disclosure [Abstract] | |
Schedule of Net Revenues | The components of net revenues for nine months ended December 31, 2017, the years ended December 31, 2018 and 2019, are as follows: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Portfolio training services — — 63,828,907 Educational travel services — — 10,456,269 Overseas study counselling services — — 8,091,551 Other educational services — — 9,045,411 K12 education assessment and other services 5,185,822 1,338,592 6,348,029 Net Revenues 5,185,822 1,338,592 97,770,167 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss from Continuing Operations before Income Taxes Generated in Jurisdictions | Loss from continuing operations before income taxes were generated in the following jurisdictions: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Cayman Islands and British Virgin Islands (39,725,254 ) (29,296,296 ) (23,094,955) PRC (35,150,223 ) (39,680,573 ) (118,145,074) Hong Kong (37,472 ) 923,395 (21,586) Loss before continuing operations before income taxes (74,912,949 ) (68,053,474 ) (141,261,615) |
Schedule of Income Tax Expense | Income tax expense recognized in the consolidated statements of comprehensive income (loss) consists of the following: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB PRC Current income tax expense — — 905,078 Deferred income tax benefit (2,109,096 ) — (8,054,197) Total income tax benefit (2,109,096 ) — (7,149,119) |
Schedule of Difference Between Actual Income Tax Expense and Amount Computed by Applying PRC Statutory Income Tax Rate to Earnings before Income Taxes | 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 each of nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019 to earnings before income taxes due to the following: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Computed “expected” income tax benefit (18,728,237 ) (17,013,369 ) (35,315,404) Increase (decrease) in valuation allowance 9,261,477 (14,570,083 ) 23,171,671 Entities not subject to income tax 8,244,168 4,896,732 4,576,771 Non-deductible expenses Entertainment 98,299 255,843 394,380 Share-based compensation 1,696,514 2,427,342 1,202,364 Bad debt loss (96,683 ) 25,206 — Additional deduction of research and development costs (951,062 ) (447,525 ) (240,404) Withholding tax related to undistributed earnings (2,109,096 ) — — Gain from discharge of intercompany payables (a) — 25,594,493 — Investment loss from sale of non-redeemable non-controlling interests (b) — (1,725,000 ) — Other 475,524 556,361 (938,497) Actual income tax benefit (2,109,096 ) — (7,149,119) (a) The gain from discharge of intercompany payables represents the gain recognized from the discharge of payables of ATA Education due to ATA Learning, Zhongxiao Zhixing and ATA BVI. These payables were waived in accordance with the terms agreed in the ATA Online Sale Transaction. (b) The investment loss from sale of non-redeemable non-controlling interests represents the investment loss recognized from the transfer of 24% equity shares of Muhua Shangce to a limited partnership named Ningbo Meishan Bonded Port Area Zunming Investment Management Center (Limited Partnership) (“Limited Partnership”) from ATA Education for the year ended December 31, 2018. See note 16. |
Schedule of Components of Deferred Income Tax Assets and Liabilities | The tax effects of the Group’s temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are as follows: December 31, 2018 December 31, 2019 RMB RMB Deferred income tax assets: Tax loss carry forwards 14,082,622 28,153,853 Impairment loss of long-term investments 4,132,700 10,148,827 Lease liability — 8,264,034 Impairment loss of intangible assets and other non-current assets — 2,233,110 Provision for other receivables — 1,396,914 Accrued expenses and other payables 2,946,135 4,213,877 Property and equipment, net 551,634 702,523 Donation 250,000 2,768,750 Total gross deferred income tax assets 21,963,091 57,881,888 Less: valuation allowance (21,275,591 ) (44,713,570) Total deferred income tax assets, net 687,500 13,168,318 Deferred income tax liabilities: Intangible assets — 32,657,242 Right-of-use assets — 10,196,572 Deferred revenues — 7,091,422 Change in fair value of long-term investment 687,500 — Total gross deferred income tax liabilities 687,500 49,945,236 Net deferred income tax assets — 11,464,891 Net deferred income tax liabilities — 48,241,809 |
Summary of Movements of Valuation Allowance | The movements of the valuation allowance are as follows: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Balance at the beginning of the period 26,584,197 35,845,674 21,275,591 Additions 9,261,477 11,024,410 23,437,979 Reduction due to gain from discharge of intercompany payables — (25,594,493 ) — Balance at the end of the period 35,845,674 21,275,591 44,713,570 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Summary of Redeemable Non-Controlling Interest Activities | RMB Balance as of April 1, 2017 — Add: Capital contribution 34,000,000 Less: Comprehensive loss (1,444,363 ) Accretion of redeemable non-controlling interests 3,748,639 Balance as of December 31, 2017 36,304,276 Less: Comprehensive loss (3,181,199 ) Accretion of redeemable non-controlling interests 6,085,542 Balance as of December 31, 2018 39,208,619 Add: Capital contribution 2,500,000 Less: Comprehensive loss (2,820,682 ) Accretion of redeemable non-controlling interests 6,008,491 Balance as of December 31, 2019 44,896,428 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Selected Financial Information Relating to Group’s Segments | The following table presents selected financial information relating to the Group’s segments: For the year ended December 31, 2019: Overseas art study services Others Consolidated RMB RMB RMB Net revenues 82,376,727 15,393,440 97,770,167 Operating cost and expenses: Cost of revenues 50,365,985 11,548,517 61,914,502 Research and development — 11,817,255 11,817,255 Selling and marketing 27,859,200 6,253,012 34,112,212 Unallocated corporate — — 81,923,516 Impairment loss of intangible assets and other non-current assets — 8,932,439 8,932,439 Provision for loan receivable and other receivables — 17,430,825 17,430,825 Total operating cost and expenses 78,225,185 55,982,048 216,130,749 Other operating income, net — 588,147 588,147 Income (loss) from continuing operations 4,151,542 (40,000,461) (117,772,435) For the year ended December 31, 2018: Others Consolidated RMB RMB Net revenues 1,338,592 1,338,592 Operating cost and expenses: Cost of revenues 4,251,451 4,251,451 Research and development 19,594,484 19,594,484 Selling and marketing 5,570,169 5,570,169 General and administrative 43,507,856 43,507,856 Total operating cost and expenses 72,923,960 72,923,960 Other operating income, net 3,793,418 3,793,418 Loss from continuing operations (67,791,950) (67,791,950) For nine months ended December 31, 2017: Others Consolidated RMB RMB Net revenues 5,185,822 5,185,822 Operating cost and expenses: Cost of revenues 3,785,865 3,785,865 Research and development 15,415,780 15,415,780 Selling and marketing 4,539,473 4,539,473 General and administrative 40,132,709 40,132,709 Total operating cost and expenses 63,873,827 63,873,827 Other operating income, net — — Loss from continuing operations (58,688,005) (58,688,005) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of the Share Options Activities | A summary of the share options activities for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019 is presented below: Weighted Weighted Aggregate average remaining intrinsic Number of exercise contractual value shares USD years USD Outstanding as of March 31, 2017 2,451,067 2.21 Granted 50,000 2.35 Exercised — — Forfeited (50,000 ) 1.71 Expired (74,000 ) 3.60 Outstanding as of December 31, 2017 2,377,067 2.18 Granted 1,053,150 0.58 Exercised (119,792 ) 1.77 Forfeited (123,438 ) 1.71 Cancelled (1,901,752 ) 2.13 Expired (143,023 ) 3.89 Outstanding as of December 31, 2018 1,142,212 0.67 Granted 70,000 0.50 Exercised — — Forfeited (809,712) 0.61 Cancelled — — Expired — — Outstanding as of December 31, 2019 402,500 0.75 Vested and expected to vest as of December 31, 2019 402,500 0.75 8.59 35,753 Exercisable as of December 31, 2019 122,082 0.90 8.33 8,879 |
Schedule of Information Relating to Options Outstanding and Exercisable | Information relating to options outstanding and exercisable as of December 31, 2019 is as follows: Options outstanding as of December 31, 2019 Options exercisable as of December 31, 2019 Exercise Remaining Exercise Remaining Number of Price Contractual Number Price Contractual Shares per Share Life of Shares per Share Life USD Years USD Years 62,500 1.71 7.05 35,416 1.71 7.05 320,000 0.58 8.85 86,666 0.58 8.85 20,000 0.53 9.21 — — — 402,500 0.75 8.59 122,082 0.90 8.33 |
Summary of Assumptions Used in the Valuation Model | The Company calculated the fair value of the share options on the grant date, for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019, using the Black-Scholes-Merton pricing valuation model. The assumptions used in the valuation model are summarized as follows: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 Expected dividend yield 8.7% 0% 0% Expected volatility 60% 57% 55%/54% Expected term 6.08 5.11/6.11 6.08 Risk-free interest rate (per annum) 1.96% 3.05%/3.10% 2.53%/2.45% |
Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of Compensation Expense Recognized for Non-vested Shares | Compensation expense recognized for non-vested share options for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019 is allocated to the following expense items: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Research and development 476,994 157,355 68,016 Sales and marketing 272,568 70,915 — General and administrative 2,353,681 2,024,940 345,991 Total share-based compensation expense 3,103,243 2,253,210 414,007 |
Non-vested shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of Compensation Expense Recognized for Non-vested Shares | Compensation expense recognized for non-vested shares for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019 is allocated to the following expense items: Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Cost of revenues — — — Research and development 516,339 240,441 367,313 Sales and marketing 258,170 96,058 — General and administrative 2,908,303 7,119,658 4,028,134 Total share-based compensation expense 3,682,812 7,456,157 4,395,447 |
Summary of the Non-vested Shares Activities | A summary of the non-vested shares activities for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019 is presented below: Weighted average Number grant date of shares fair value USD Outstanding at March 31, 2017 2,700,000 1.661 Granted — — Vested (60,000) 2.145 Forfeited (15,000) 1.650 Outstanding at December 31, 2017 2,625,000 1.650 Granted 2,572,584 0.537 Vested (2,068,586) 0.872 Forfeited (71,250) 1.650 Cancelled (1,262,250) 1.650 Outstanding at December 31, 2018 1,795,498 0.951 Granted — — Vested (693,362) 0.885 Forfeited — — Cancelled — — Outstanding at December 31, 2019 1,102,136 0.993 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Commitments | The future minimum payments under the non-cancelable agreements as of December 31, 2019 are: Required Payments Amount RMB Year ended December 31: 2020 10,000,000 2021 10,000,000 2022 — 2023 — 2024 — 20,000,000 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Property on Operating Lease | December 31, 2018 December 31, 2019 RMB RMB Building 53,049,213 53,049,213 Less: Accumulated depreciation (16,932,130 ) (18,714,584) 36,117,083 34,334,629 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings (Loss) Per Common Share | Basic and diluted earnings (loss) per common share are calculated as follows: Nine months ended December 31, Twelve months ended December 31, Twelve months ended December 31, 2017 2018 2019 RMB RMB RMB Numerator: Net earnings (loss) attributable to ATA Creativity Global 29,633,544 854,925,914 (122,253,989) Dividends paid to participating securities (3,749,630 ) (13,249,006 ) — Redeemable non-controlling interest redemption value accretion (3,748,639 ) (6,085,542 ) (6,008,491) Net earnings (loss) available to common shareholders 22,135,275 835,591,366 (128,262,480) Denominator: Denominator for basic earnings (loss) per share: Weighted average common shares outstanding 45,793,127 45,796,886 50,915,710 Denominator for diluted earnings (loss) per share 45,793,127 45,796,886 50,915,710 Basic loss per common share from continuing operations (1.72 ) (1.81 ) (2.62) Diluted loss per common share from continuing operations (1.72 ) (1.81 ) (2.62) Basic earnings per common share from discontinued operations 2.20 20.06 0.10 Diluted earnings per common share from discontinued operations 2.20 20.06 0.10 Basic earnings (loss) per common share attributable to ATA Creativity Global 0.48 18.25 (2.52) Diluted earnings (loss) per common share attributable to ATA Creativity Global 0.48 18.25 (2.52) |
Summary of Potential Common Shares Outstanding Excluded From the Calculation of Diluted Earnings (Loss) Per Share | The following table summarizes potential common shares outstanding excluded from the calculation of diluted earnings (loss) per share for nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019, because their effect is anti-dilutive: Nine months ended December 31, Twelve months ended December 31, Twelve months ended December 31, 2017 2018 2019 Shares issuable under share options 2,377,067 1,142,212 402,500 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Financial Information of Discontinued Operations | The major classes of line items constituting operating results of discontinued operations included in the Company’s consolidated statements of comprehensive income (loss) were as follows for the nine months ended December 31, 2017, the year ended December 31, 2018 and the year ended December 31, 2019. The gain from disposal of discontinued operations, net of income taxes, recorded for the year ended December 31, 2019, was to account for the reimbursement of legal and consulting expenses from the buyer in relation to the sale of ATA Online business. Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Net revenues 484,873,277 194,939,146 — Cost of revenues 255,263,889 116,432,436 — Operating expenses 101,413,368 104,587,110 — Other income (loss) 3,962,257 6,929,814 — Income (loss) from operations of discontinued operations, before income taxes 132,158,277 (19,150,586) — Income tax expense (benefit) 31,517,344 (199,617) — Income (loss) from operations of discontinued operations, net of income taxes 100,640,933 (18,950,969) — Gain from disposal of discontinued operations, net of income taxes — 937,605,948 4,894,197 Income from discontinued operations, net of income taxes 100,640,933 918,654,979 4,894,197 Net loss attributable to non-redeemable non-controlling interests from discontinued operations (352,101) (10,608) — Net Income from discontinued operations attributable to ATA Creativity Global 100,993,034 918,665,587 4,894,197 The condensed cash flows of the discontinued operations were as follows for the nine months ended December 31, 2017, and the years ended December 31, 2018 and 2019. Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 RMB RMB RMB Net cash provided by (used in) operating activities 133,225,150 (25,108,520 ) 4,894,197 Net cash used in investing activities (22,052,885 ) (8,666,299 ) — Net cash used in financing activities (93,811,830 ) (21,098,633 ) — |
ATA Creativity Global (_Paren_2
ATA Creativity Global (“Parent Company”) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Consolidated Income Statement | The consolidated financial statements for the nine-month period ended December 31, 2017 is not comparable to that as of and for the twelve months ended December 31, 2018. For comparison purposes, the Group included the selected data from unaudited consolidated income statement for the twelve-month period ended December 31, 2017 per below: Twelve months ended December 31, 2017 2018 RMB RMB Net revenues 7,389,371 1,338,592 Cost of revenues 4,957,647 4,251,451 Gross profit (loss) 2,431,724 (2,912,859 ) Operating expenses 74,104,081 68,672,509 Other operating income, net — 3,793,418 Loss from operations (71,672,357 ) (67,791,950 ) Other loss, net (16,427,003 ) (261,524 ) Loss from continuing operations before income taxes (88,099,360 ) (68,053,474 ) Income tax benefit (591,290 ) — Loss from continuing operations, net of income taxes (87,508,070 ) (68,053,474 ) Income from discontinued operations, net of income taxes 61,431,845 918,654,979 Net income (loss) (26,076,225 ) 850,601,505 |
ATA Creativity Global | |
Schedule of Condensed Balance Sheets | Condensed Balance Sheets December 31, 2018 December 31, 2019 December 31, 2019 RMB RMB USD Cash and cash equivalents 15,396,381 77,996,136 11,203,444 Prepaid expenses and other current assets 3,104 13,154 1,888 Subscription receivable — 8,530,931 1,225,392 Loan receivable, net 14,532,685 4,126,502 592,735 Investments in subsidiaries 247,870,563 213,391,690 30,651,798 Total assets 277,802,733 304,058,413 43,675,257 Accrued expenses and other current liabilities 1,985,894 3,918,340 562,834 Total liabilities 1,985,894 3,918,340 562,834 Common shares 3,534,871 4,692,312 674,008 Treasury shares (27,737,073 ) (27,737,073) (3,984,181) Additional paid in capital 410,195,990 560,814,066 80,555,900 Accumulated other comprehensive loss (38,288,364 ) (37,478,167) (5,383,402) Accumulated deficit (71,888,585 ) (200,151,065) (28,749,902) Total shareholders’ equity 275,816,839 300,140,073 43,112,423 Total liabilities and shareholders’ equity 277,802,733 304,058,413 43,675,257 |
Schedule of Consolidated Income Statement | Condensed Statements of Comprehensive Income (Loss) Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 2019 RMB RMB RMB USD Operating expenses (14,273,099 ) (4,963,891 ) (6,928,823) (995,263) Provision for loan receivable — — (11,843,167) (1,701,164) Investment income (loss) 40,802,611 852,782,280 (110,881,674) (15,927,156) Interest expense (52,074 ) (446 ) — — Interest income 15,394 1,306,567 1,391,183 199,831 Foreign currency exchange gains (losses), net (607,927 ) (284,138 ) 1 — Earnings (loss) before income taxes 25,884,905 848,840,372 (128,262,480) (18,423,752) Income tax expense — — — — Net income (loss) 25,884,905 848,840,372 (128,262,480) (18,423,752) Other comprehensive income (loss) (1,781,184 ) (11,437,409 ) 810,197 116,378 Comprehensive income (loss) 24,103,721 837,402,963 (127,452,283) (18,307,374) |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Nine months ended December 31 Twelve months ended December 31 Twelve months ended December 31 2017 2018 2019 2019 RMB RMB RMB USD Net cash used in operating activities (5,003,772 ) (29,996,291 ) (4,797,830) (689,165) Cash flows from investing activities : Cash received from subsidiaries 73,178,416 1,001,941,215 — — Loan lent to Beijing Biztour — (13,745,856 ) — — Proceeds from disposal of discontinued operations — — 4,894,197 703,007 Net cash provided by investing activities 73,178,416 988,195,359 4,894,197 703,007 Cash flows from financing activities : Private placement — — 61,693,192 8,861,673 Cash received for exercise of share options — 1,433,441 — — Special cash dividend (65,698,571 ) (946,611,803 ) — — Net cash used in financing activities (65,698,571 ) (945,178,362 ) 61,693,192 8,861,673 Effect of foreign exchange rate changes on cash (1,173,526 ) 568,046 810,196 116,377 Net increase in cash 1,302,547 13,588,752 62,599,755 8,991,892 Cash at beginning of period 505,082 1,807,629 15,396,381 2,211,552 Cash at end of period 1,807,629 15,396,381 77,996,136 11,203,444 |
Description of Business, Orga_3
Description of Business, Organization and Significant Concentrations and Risks - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019CNY (¥) | Dec. 31, 2019HKD ($) | |
PRC | Maximum | ||
Variable Interest Entity | ||
Amount insured by government authority | ¥ | ¥ 500,000 | |
HKSAR | Maximum | ||
Variable Interest Entity | ||
Amount insured by government authority | $ | $ 500,000 | |
Huanqiuyimeng | ||
Variable Interest Entity | ||
Acquisition date | Aug. 6, 2019 | |
Percentage of equity interest acquired | 100.00% | 100.00% |
Description of Business, Orga_4
Description of Business, Organization and Significant Concentrations and Risk - VIE Agreements - Additional Information (Details) - CNY (¥) | Mar. 15, 2018 | Dec. 31, 2019 | Mar. 19, 2019 | Dec. 28, 2018 | Mar. 31, 2018 |
ATA Education | ATA Intelligent Learning's nominee shareholders, Mr. Kevin Xiaofeng Ma, and Mr. Haichang Xiong | |||||
Variable Interest Entity | |||||
Loan amount | ¥ 10,000,000 | ¥ 50,000,000 | ¥ 10,000,000 | ||
Term of loan | 10 years | ||||
ATA Education | ATA Intelligent Learning's nominee shareholders, Mr. Kevin Xiaofeng Ma, and Mr. Haichang Xiong | Loan on March 15, 2018 | |||||
Variable Interest Entity | |||||
Loan amount | ¥ 1,000,000 | ||||
ATA Education | ATA Intelligent Learning's nominee shareholders, Mr. Kevin Xiaofeng Ma, and Mr. Haichang Xiong | Loan on December 28, 2018 | |||||
Variable Interest Entity | |||||
Loan amount | ¥ 9,000,000 | ||||
ATA Education | ATA Intelligent Learning's nominee shareholders, Mr. Kevin Xiaofeng Ma, and Mr. Haichang Xiong | Loan Agreement On March192019 | |||||
Variable Interest Entity | |||||
Loan amount | ¥ 40,000,000 | ||||
ATA Intelligent Learning | |||||
Variable Interest Entity | |||||
Registered capital | 50,000,000 | ||||
Assets pledged or collateralized | ¥ 0 | ||||
ATA Intelligent Learning | ATA Education | |||||
Variable Interest Entity | |||||
Percentage of equity interest that can be acquired as per exclusive purchase option | 100.00% | ||||
Term of agreement | 30 years | ||||
Notice period prior to expiration of agreement | 30 days | ||||
ATA Intelligent Learning | ATA Education | Exclusive technical consulting and services agreement | |||||
Variable Interest Entity | |||||
Automatic renewal term of the agreement | 10 years | ||||
Notice period prior to expiration of agreement | 3 months | ||||
Mr. Kevin Xiaofeng Ma | ATA Intelligent Learning | Minimum | |||||
Variable Interest Entity | |||||
Legal ownership | 50.00% | ||||
Mr. Kevin Xiaofeng Ma | ATA Intelligent Learning | |||||
Variable Interest Entity | |||||
Legal ownership interest (as a percent) | 90.00% | ||||
Mr. Haichang Xiong | ATA Intelligent Learning | |||||
Variable Interest Entity | |||||
Legal ownership interest (as a percent) | 10.00% |
Description of Business, Orga_5
Description of Business, Organization and Significant Concentrations and Risk - VIE Financial Statements (Details) | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | |
Financial statement amounts and balances of VIE included in the accompanying consolidated financial statements | ||||||
Prepaid expenses and other current assets | ¥ 16,490,369 | ¥ 7,836,092 | $ 2,368,693 | |||
Total current assets | 183,560,151 | 213,394,902 | 26,366,766 | |||
Long-term investments | 45,726,391 | 66,390,898 | 6,568,185 | |||
Property and equipment, net | 42,070,794 | 37,430,741 | 6,043,091 | |||
Other non-current assets | 16,402,750 | 799,652 | 2,356,108 | |||
Total assets | 676,089,833 | 335,138,771 | 97,114,228 | |||
Accrued expenses and other payables | 47,747,054 | 18,111,939 | 6,858,437 | |||
Payable for business acquisition | 19,642,082 | 2,821,409 | ||||
Total current liabilities | 264,816,284 | 19,745,915 | 38,038,481 | |||
Total liabilities | 325,558,213 | 19,745,915 | $ 46,763,513 | |||
Net revenues | ¥ 5,185,822 | 97,770,167 | $ 14,043,806 | 1,338,592 | ¥ 7,389,371 | |
Net income (loss) | 27,837,080 | (129,218,299) | (18,561,048) | 850,601,505 | ¥ (26,076,225) | |
Net cash used in operating activities | 95,605,639 | (57,876,559) | (8,313,448) | (312,626,305) | ||
Net cash used in investing activities | (20,604,329) | (36,945,321) | (5,306,863) | 1,201,735,714 | ||
Net cash received from financing activities | ¥ (70,148,709) | 57,566,469 | $ 8,268,906 | (949,893,989) | ||
ATA Intelligent Learning | ||||||
Financial statement amounts and balances of VIE included in the accompanying consolidated financial statements | ||||||
Cash | 435,122 | 25,369,355 | ||||
Prepaid expenses and other current assets | 4,180 | 32,860 | ||||
Total current assets | 439,302 | 25,402,215 | ||||
Long-term investments | 89,605,550 | 5,919,198 | ||||
Property and equipment, net | 11,972 | 8,382 | ||||
Other non-current assets | 2,590 | |||||
Total assets | 90,059,414 | 31,329,795 | ||||
Accrued expenses and other payables | 455,577 | |||||
Payable for business acquisition | 19,642,082 | |||||
Amounts due to a related party | 42,000,000 | 28,000,000 | ||||
Total current liabilities | 61,642,082 | 28,455,577 | ||||
Total liabilities | 61,642,082 | 28,455,577 | ||||
Net income (loss) | (14,456,886) | (7,125,782) | ||||
Net cash used in operating activities | (1,441,360) | (172,145) | ||||
Net cash used in investing activities | (77,492,873) | (12,458,500) | ||||
Net cash received from financing activities | ¥ 54,000,000 | ¥ 38,000,000 |
Description of Business, Orga_6
Description of Business, Organization and Significant Concentrations and Risk - VIE Financial Statements (Parenthetical) (Details) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Variable Interest Entity | ||||
Net cash used in investing activities | ¥ (20,604,329) | ¥ (36,945,321) | $ (5,306,863) | ¥ 1,201,735,714 |
Net cash received from financing activities | ¥ (70,148,709) | 57,566,469 | $ 8,268,906 | (949,893,989) |
ATA Intelligent Learning | ||||
Variable Interest Entity | ||||
Net cash used in investing activities | (77,492,873) | (12,458,500) | ||
Net cash received from financing activities | 54,000,000 | 38,000,000 | ||
ATA Intelligent Learning | Eliminations | Subsidiaries | ||||
Variable Interest Entity | ||||
Net cash used in investing activities | 71,483,973 | 12,450,000 | ||
Net cash received from financing activities | ¥ 54,000,000 | ¥ 38,000,000 | ||
ATA Intelligent Learning | Huanqiuyimeng | Eliminations | Subsidiaries | ||||
Variable Interest Entity | ||||
Percentage of equity interest | 30.96% | 30.96% |
Description of Business, Orga_7
Description of Business, Organization and Significant Concentrations and Risks - Country Risk and Cash Concentration (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Significant Concentrations and Risks | |||
Cash and cash equivalents balances | ¥ 154,197,758 | $ 22,149,122 | ¥ 190,586,342 |
Cash and cash equivalents | Credit concentration risk, customers or financial institutions | |||
Significant Concentrations and Risks | |||
Cash and cash equivalents balances | 154,186,801 | 190,586,342 | |
Cash and cash equivalents | Credit concentration risk, customers or financial institutions | PRC | |||
Significant Concentrations and Risks | |||
Cash and cash equivalents balances | 59,517,386 | 143,760,681 | |
Cash and cash equivalents | Credit concentration risk, customers or financial institutions | PRC | Denominated in Renminbi ("RMB") | |||
Significant Concentrations and Risks | |||
Cash and cash equivalents balances | 47,224,436 | 143,760,647 | |
Cash and cash equivalents | Credit concentration risk, customers or financial institutions | PRC | Denominated in U.S. Dollar ("USD") | |||
Significant Concentrations and Risks | |||
Cash and cash equivalents balances | 12,292,950 | 34 | |
Cash and cash equivalents | Credit concentration risk, customers or financial institutions | HKSAR | |||
Significant Concentrations and Risks | |||
Cash and cash equivalents balances | 94,669,415 | 46,825,661 | |
Cash and cash equivalents | Credit concentration risk, customers or financial institutions | HKSAR | Denominated in Renminbi ("RMB") | |||
Significant Concentrations and Risks | |||
Cash and cash equivalents balances | 672 | ||
Cash and cash equivalents | Credit concentration risk, customers or financial institutions | HKSAR | Denominated in U.S. Dollar ("USD") | |||
Significant Concentrations and Risks | |||
Cash and cash equivalents balances | 91,793,594 | 38,358,069 | |
Cash and cash equivalents | Credit concentration risk, customers or financial institutions | HKSAR | Denominated in Hong Kong Dollar ("HKD") | |||
Significant Concentrations and Risks | |||
Cash and cash equivalents balances | 2,875,819 | 8,064,121 | |
Cash and cash equivalents | Credit concentration risk, customers or financial institutions | HKSAR | Denominated in Great Britain Pound | |||
Significant Concentrations and Risks | |||
Cash and cash equivalents balances | ¥ 2 | ¥ 402,799 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Foreign Currency - Additional Information (Details) | Dec. 31, 2019 |
Foreign currency translation and risks | |
Rate for translation of balances of financial statements from RMB to US$ | 6.9618 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue Recognition - Additional Information (Details) | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Jan. 01, 2018CNY (¥) | |
Revenue recognition | |||||||
Retained earnings | ¥ (200,151,065) | ¥ (71,888,585) | $ (28,749,902) | ||||
Net revenues | ¥ 5,185,822 | 97,770,167 | $ 14,043,806 | 1,338,592 | ¥ 7,389,371 | ||
Rental income | |||||||
Revenue recognition | |||||||
Net revenues | ¥ 4,041,142 | ||||||
Other revenue - licensing fees from authorized test centers | |||||||
Revenue recognition | |||||||
Licensing period (in years) | 10 years | ||||||
Test development services | Minimum | |||||||
Revenue recognition | |||||||
Period for development of tests | 2 months | ||||||
Test development services | Maximum | |||||||
Revenue recognition | |||||||
Period for development of tests | 6 months | ||||||
ASU 2014-09 | Adjustment | |||||||
Revenue recognition | |||||||
Retained earnings | ¥ 0 | ||||||
ASU 2014-09 | Adjustment | Rental income | Other operating income, net | |||||||
Revenue recognition | |||||||
Net revenues | 1,580,270 | 5,943,984 | |||||
ASU 2014-09 | Not adopted ASC 606 | |||||||
Revenue recognition | |||||||
Net revenues | ¥ 1,580,270 | ¥ 5,943,984 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Research and Development Costs - Additional Information (Details) - CNY (¥) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Software developed for internal use | |||
Research and development costs | |||
Capitalized costs for the period | ¥ 0 | ¥ 0 | ¥ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Lease - Additional Information (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
Operating lease | ||
Contingent rent | ¥ 0 | |
Finance lease liability | ¥ 0 | |
Lease practical expedients package | true | |
Operating lease right-of-use assets | ¥ 40,786,291 | |
Operating lease liabilities | ¥ 33,056,137 | |
ASC 842 | ||
Operating lease | ||
Operating lease right-of-use assets | ¥ 3,500,000 | |
Operating lease liabilities | ¥ 3,000,000 | |
Minimum | ||
Operating lease | ||
Operating lease term | 12 months | |
Maximum | ||
Operating lease | ||
Operating lease term | 36 months |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Cash and cash equivalents - Additional Information (Details) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Cash, cash equivalents, restricted cash and short term loan | ||||
Net cash received from financing activities | ¥ (70,148,709) | ¥ 57,566,469 | $ 8,268,906 | ¥ (949,893,989) |
ASU 2016-18 | Adjustment | ||||
Cash, cash equivalents, restricted cash and short term loan | ||||
Restricted cash | 30,000,000 | |||
Net cash received from financing activities | ¥ (30,000,000) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Property and Equipment, Net (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Property and equipment, net | |
Leasehold improvements | The shorter of lease terms and estimated useful lives |
Building | |
Property and equipment, net | |
Useful lives | 30 years |
Computer equipment | Minimum | |
Property and equipment, net | |
Useful lives | 3 years |
Computer equipment | Maximum | |
Property and equipment, net | |
Useful lives | 5 years |
Furniture, fixtures and office equipment | |
Property and equipment, net | |
Useful lives | 5 years |
Software | Minimum | |
Property and equipment, net | |
Useful lives | 3 years |
Software | Maximum | |
Property and equipment, net | |
Useful lives | 5 years |
Motor vehicles | |
Property and equipment, net | |
Useful lives | 5 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Intangible Assets - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Intangible assets | |
Intangible assets with indefinite useful lives | ¥ 0 |
Minimum | |
Intangible assets | |
Estimated useful lives | 1 year 4 months 24 days |
Maximum | |
Intangible assets | |
Estimated useful lives | 10 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Employee Benefit Plans (Details) - CNY (¥) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee benefit plans | |||
Expense due to employee benefit plans | ¥ 3,520,114 | ¥ 10,210,835 | ¥ 5,613,312 |
Cost of revenues | |||
Employee benefit plans | |||
Expense due to employee benefit plans | 78,381 | 2,363,553 | 79,280 |
Research and development | |||
Employee benefit plans | |||
Expense due to employee benefit plans | 2,296,392 | 2,468,898 | 3,232,457 |
Sales and marketing | |||
Employee benefit plans | |||
Expense due to employee benefit plans | 334,628 | 2,077,128 | 771,479 |
General and administrative | |||
Employee benefit plans | |||
Expense due to employee benefit plans | ¥ 810,713 | ¥ 3,301,256 | ¥ 1,530,096 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Segment Reporting - Additional Information (Details) - Segment | Aug. 05, 2019 | Dec. 31, 2017 | Dec. 31, 2018 |
Accounting Policies [Abstract] | |||
Number of operating segments | 1 | 1 | 1 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) - Huanqiuyimeng - CNY (¥) | Aug. 06, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||
Percentage of equity interest acquired | 100.00% | |
Shares issued for acquisition | 9,360,000 | 9,360,000 |
Cash consideration | ¥ 91,126,055 | ¥ 91,100,000 |
Consideration payable for business acquisition | 19,642,082 | |
Revenues of acquiree since acquisition date | 91,422,138 | |
Net loss of acquiree since acquisition date | ¥ 24,291,035 | |
Overseas art study services segment | ||
Business Acquisition [Line Items] | ||
Goodwill acquired | 176,046,647 | |
Other educational services segment | ||
Business Acquisition [Line Items] | ||
Goodwill acquired | 24,432,148 | |
Trademarks | ||
Business Acquisition [Line Items] | ||
Intangible assets | ¥ 79,000,000 | |
Amortization period of intangible assets | 10 years | |
Non-compete arrangements | ||
Business Acquisition [Line Items] | ||
Intangible assets | ¥ 56,000,000 | |
Amortization period of intangible assets | 6 years | |
Order backlogs | ||
Business Acquisition [Line Items] | ||
Intangible assets | ¥ 4,000,000 | |
Amortization period of intangible assets | 1 year 4 months 24 days |
Business Acquisition - Summary
Business Acquisition - Summary of Identifiable Assets Acquired and Liabilities Assumed in Connection with Acquisition (Details) | Aug. 06, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||
Goodwill | ¥ 200,478,795 | $ 28,796,977 | ¥ 0 | ¥ 32,009,025 | |
Huanqiuyimeng | |||||
Purchase consideration: | |||||
Cash | ¥ 91,126,055 | ¥ 91,100,000 | |||
Fair value of 9,360,000 ordinary shares | 76,868,663 | ||||
Purchase consideration | 167,994,718 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||
Cash | 36,785,802 | ||||
Prepaid expenses and other current assets | 26,333,563 | ||||
Long-term investments | 157,850 | ||||
Property and equipment, net | 8,505,683 | ||||
Other non-current assets | 881,926 | ||||
Right-of-use assets | 32,089,416 | ||||
Deferred revenues | (163,400,000) | ||||
Short-term loan | (13,991,000) | ||||
Lease liabilities-current | (18,728,346) | ||||
Deferred income tax liabilities | (45,659,880) | ||||
Accrued expense and other payables | (14,326,672) | ||||
Other non-current liabilities | (13,361,070) | ||||
Total identifiable assets acquired and liabilities assumed | (25,712,728) | ||||
Fair value of non-redeemable non-controlling interests in Huanqiuyimeng | (6,771,349) | ||||
Goodwill | 200,478,795 | ||||
Huanqiuyimeng | Trademark | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||
Intangible assets | 79,000,000 | ||||
Huanqiuyimeng | Order backlogs | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||
Intangible assets | 4,000,000 | ||||
Huanqiuyimeng | Non-compete arrangements | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||
Intangible assets | ¥ 56,000,000 |
Business Acquisition - Summar_2
Business Acquisition - Summary of Identifiable Assets Acquired and Liabilities Assumed in Connection with Acquisition (Parenthetical) (Details) - shares | Aug. 06, 2019 | Dec. 31, 2019 |
Huanqiuyimeng | ||
Business Acquisition [Line Items] | ||
Purchase consideration in ordinary shares | 9,360,000 | 9,360,000 |
Business Acquisition - Summariz
Business Acquisition - Summarized Unaudited Pro Forma Results of Operations (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Pro forma net income (loss) attributable to ATA Creativity Global | ¥ (174,265,822) | ¥ 757,139,789 |
Huanqiuyimeng | ||
Business Acquisition [Line Items] | ||
Pro forma net revenues | ¥ 201,416,606 | ¥ 105,071,457 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Amount due from Beijing Biztour | ¥ 1,960,403 | ¥ 3,713,166 | |
VAT-input deductible | 1,893,650 | 2,675,486 | |
Income tax refundable | 2,800,622 | ||
Advances to employees | 1,605,908 | 13,919 | |
Other current assets | 8,229,786 | 1,433,521 | |
Total prepaid expenses and other current assets | ¥ 16,490,369 | $ 2,368,693 | ¥ 7,836,092 |
Loan Receivable - Additional In
Loan Receivable - Additional Information (Details) ¥ in Millions, $ in Millions | Mar. 26, 2018USD ($) | Dec. 31, 2019CNY (¥) | Aug. 31, 2018CNY (¥) |
Loans And Leases Receivable Disclosure [Line Items] | |||
Loan agreement due date description | The loan receivable became overdue on April 6, 2019. On April 30, 2019, the due dates of loan receivable and other receivables due from Beijing Biztour were extended to September 30, 2019. The controlling shareholder of Beijing Biztour made a personal guarantee and agreed with certain real estate property mortgage. The loan receivable and other receivables due from Beijing Biztour became overdue again since October 1, 2019. | ||
Beijing Biztour | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Term of loan (in years) | 1 year | ||
Loan receivable | $ 2 | ¥ 7.5 | |
Fixed annual interest | 8.00% | ||
Provision for loan receivable | ¥ 17.4 |
Long-term Investments - Equity
Long-term Investments - Equity Method Investments - Additional Information (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($)item$ / sharesshares | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Equity method investments | |||||
Share of loss recognized | ¥ 1,395,234 | ¥ 7,850 | $ 1,128 | ||
Brilent Inc. ("Brilent") | |||||
Equity method investments | |||||
Share of loss recognized | 1,395,234 | 0 | ¥ 0 | ||
Impairment loss | ¥ 4,757,972 | ||||
Equity method investments | ¥ 0 | ¥ 0 | |||
Brilent Inc. ("Brilent") | ATA BVI | |||||
Equity method investments | |||||
Percentage of equity interest | 15.47% | ||||
Number of board seat held | item | 1 | ||||
Total number of board seat | item | 6 | ||||
Brilent Inc. ("Brilent") | ATA BVI | Preferred Shares | |||||
Equity method investments | |||||
Number of shares purchased | shares | 2,156,721 | ||||
Purchase price (USD per share) | $ / shares | $ 0.6955 | ||||
Total consideration | $ | $ 1,500,000 |
Long-term Investments - Schedul
Long-term Investments - Schedule of Other Equity Investments (Details) - CNY (¥) | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2017 |
Other equity investments | |||
Other equity investments | ¥ 45,726,391 | ¥ 66,390,898 | |
Beijing Empower Education Online Co., Ltd. ("EEO") | |||
Other equity investments | |||
Other equity investments | 38,000,000 | 38,000,000 | ¥ 38,000,000 |
ApplySquare Education & Technology Co., Ltd. ("ApplySquare") | |||
Other equity investments | |||
Other equity investments | 1,576,391 | 22,471,700 | |
Beijing GlobalWisdom Information Technology Co., Ltd. ("GlobalWisdom") | |||
Other equity investments | |||
Other equity investments | ¥ 5,919,198 | ||
Beijing Xiaozhi Education & Technology Co., Ltd. (''Xiaozhi Education") | |||
Other equity investments | |||
Other equity investments | 6,000,000 | ||
Beijing Futou Technology Co., Ltd. ("Futou Technology") | |||
Other equity investments | |||
Other equity investments | ¥ 150,000 |
Long-term Investments - Other E
Long-term Investments - Other Equity Investments - Additional Information (Details) | Jun. 20, 2018director | Jul. 26, 2017director | Jan. 31, 2019CNY (¥) | Apr. 30, 2017CNY (¥) | Sep. 30, 2019CNY (¥) | Dec. 31, 2018CNY (¥)director | Mar. 31, 2017CNY (¥) | Mar. 31, 2017USD ($) | Dec. 31, 2019CNY (¥) |
Other equity investments | |||||||||
Other equity investments | ¥ 66,390,898 | ¥ 45,726,391 | |||||||
Gain from change in fair value | 2,750,000 | ||||||||
Beijing Empower Education Online Co., Ltd. ("EEO") | |||||||||
Other equity investments | |||||||||
Percentage of equity interest | 8.33% | 8.33% | |||||||
Cash consideration paid for other equity investments | ¥ 5,500,000 | ¥ 32,500,000 | |||||||
Other equity investments | ¥ 38,000,000 | 38,000,000 | 38,000,000 | ||||||
ApplySquare Education & Technology Co., Ltd. ("ApplySquare") | |||||||||
Other equity investments | |||||||||
Percentage of equity interest | 7.95% | 9.00% | 9.00% | ||||||
Cash consideration paid for other equity investments | ¥ 19,721,700 | $ 3,000,000 | |||||||
Other equity investments | 22,471,700 | 1,576,391 | |||||||
Right to number of director | director | 1 | ||||||||
Gain from change in fair value | 2,750,000 | ||||||||
Impairment loss recorded | 20,895,309 | ||||||||
Beijing GlobalWisdom Information Technology Co., Ltd. ("GlobalWisdom") | |||||||||
Other equity investments | |||||||||
Percentage of equity interest | 6.8345% | 8.20% | 8.20% | ||||||
Cash consideration paid for other equity investments | ¥ 12,300,000 | ||||||||
Other equity investments | 5,919,198 | ||||||||
Right to number of director | director | 1 | ||||||||
Impairment loss recorded | ¥ 6,380,802 | ||||||||
Impairment loss | ¥ 5,919,198 | ||||||||
Beijing Xiaozhi Education & Technology Co., Ltd. (''Xiaozhi Education") | |||||||||
Other equity investments | |||||||||
Percentage of equity interest | 20.00% | ||||||||
Other equity investments | 6,000,000 | ||||||||
Right to number of director | director | 1 | ||||||||
Total exchange amount | ¥ 6,000,000 | ||||||||
Cash paid | ¥ 6,000,000 | ||||||||
Beijing Futou Technology Co., Ltd. ("Futou Technology") | |||||||||
Other equity investments | |||||||||
Other equity investments | ¥ 150,000 | ||||||||
Beijing Futou Technology Co., Ltd. ("Futou Technology") | Huanqiuyimeng | |||||||||
Other equity investments | |||||||||
Percentage of equity interest | 15.00% |
Long-term Investments - Availab
Long-term Investments - Available-for-sale Investment - Additional Information (Details) | Apr. 28, 2016USD ($) | Mar. 30, 2016USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Mar. 31, 2017USD ($) | Mar. 24, 2016USD ($) |
Available-for-sale investment | |||||||||
Interest income | ¥ | ¥ 568,320 | ||||||||
Unrealized holding loss of available-for-sale investment reported in other comprehensive income (loss) | ¥ | 553,870 | ||||||||
Net book value | ¥ | ¥ 0 | ¥ 0 | |||||||
Convertible promissory note ("the Notes") | |||||||||
Available-for-sale investment | |||||||||
Aggregate fair value | ¥ 10,376,547 | $ 1,504,000 | |||||||
Impairment loss of convertible bond | ¥ 10,458,538 | $ 1,504,000 | |||||||
Available-for-sale investment | Brilent Inc. ("Brilent") | Convertible promissory note ("the Notes") | |||||||||
Available-for-sale investment | |||||||||
Maximum amount of investments allowed for purchase | $ | $ 2,500,000 | ||||||||
ATA BVI | Available-for-sale investment | Brilent Inc. ("Brilent") | Convertible promissory note ("the Notes") | |||||||||
Available-for-sale investment | |||||||||
Principal amount of investments | $ | $ 1,200,000 | $ 300,000 | |||||||
Interest rate per annum (as a percent) | 6.00% | 6.00% | |||||||
Cash consideration | $ | $ 1,500,000 | ||||||||
Term of investments | 24 months | 24 months | |||||||
Amount converted to, as a percentage of qualified financing security purchase price | 75.00% | 75.00% |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Roll-forward of Fair Value of Level 3 (Significant Unobservable Inputs) Assets (Details) | 9 Months Ended |
Dec. 31, 2017CNY (¥) | |
Roll-forward of the fair value of Level 3 (significant unobservable inputs) assets | |
Reclassification adjustment for loss on available-for-sale investment included in net income, net of nil income tax | ¥ 553,870 |
Available-for-sale investment | |
Roll-forward of the fair value of Level 3 (significant unobservable inputs) assets | |
Beginning balance | 10,376,547 |
Total gain or losses included in net (loss) income | (10,458,538) |
Reclassification adjustment for loss on available-for-sale investment included in net income, net of nil income tax | 553,870 |
Foreign currency translation adjustment | ¥ (471,879) |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Fair Value Hierarchy of Assets That Are Measured at Fair Value on Non-recurring Basis (Details) - CNY (¥) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurement | ||
Other equity investments | ¥ 45,726,391 | ¥ 66,390,898 |
ApplySquare Education & Technology Co., Ltd. ("ApplySquare") | ||
Fair Value Measurement | ||
Other equity investments | 1,576,391 | 22,471,700 |
ApplySquare Education & Technology Co., Ltd. ("ApplySquare") | Fair Value, Nonrecurring | ||
Fair Value Measurement | ||
Other equity investments | 1,576,391 | 22,471,700 |
ApplySquare Education & Technology Co., Ltd. ("ApplySquare") | Level 3 | Fair Value, Nonrecurring | ||
Fair Value Measurement | ||
Other equity investments | ¥ 1,576,391 | 22,471,700 |
Beijing GlobalWisdom Information Technology Co., Ltd. ("GlobalWisdom") | ||
Fair Value Measurement | ||
Other equity investments | 5,919,198 | |
Beijing GlobalWisdom Information Technology Co., Ltd. ("GlobalWisdom") | Fair Value, Nonrecurring | ||
Fair Value Measurement | ||
Other equity investments | 5,919,198 | |
Beijing GlobalWisdom Information Technology Co., Ltd. ("GlobalWisdom") | Level 3 | Fair Value, Nonrecurring | ||
Fair Value Measurement | ||
Other equity investments | ¥ 5,919,198 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Measurement | ||
Gain from change in fair value | ¥ 2,750,000 | |
ApplySquare Education & Technology Co., Ltd. ("ApplySquare") | ||
Fair Value Measurement | ||
Gain from change in fair value | 2,750,000 | |
Impairment loss recorded | ¥ 20,895,309 | |
Beijing GlobalWisdom Information Technology Co., Ltd. ("GlobalWisdom") | ||
Fair Value Measurement | ||
Impairment loss recorded | ¥ 5,919,198 | ¥ 6,380,802 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Property and equipment, net | |||
Property and equipment, gross | ¥ 76,634,094 | ¥ 58,925,624 | |
Less: accumulated depreciation and amortization | (34,563,300) | (21,494,883) | |
Property and equipment, net | 42,070,794 | $ 6,043,091 | 37,430,741 |
Building | |||
Property and equipment, net | |||
Property and equipment, gross | 53,049,213 | 53,049,213 | |
Computer equipment | |||
Property and equipment, net | |||
Property and equipment, gross | 3,491,575 | 599,992 | |
Furniture, fixtures and office equipment | |||
Property and equipment, net | |||
Property and equipment, gross | 1,890,013 | 1,437,949 | |
Motor vehicles | |||
Property and equipment, net | |||
Property and equipment, gross | 1,986,506 | 1,986,506 | |
Software | |||
Property and equipment, net | |||
Property and equipment, gross | 1,797,197 | 1,156,779 | |
Leasehold Improvements | |||
Property and equipment, net | |||
Property and equipment, gross | ¥ 14,419,590 | ¥ 695,185 |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of Depreciation Expense Recognition (Details) - CNY (¥) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property and equipment, net | |||
Total depreciation expense | ¥ 2,763,571 | ¥ 5,150,445 | ¥ 2,966,122 |
Cost of revenues | |||
Property and equipment, net | |||
Total depreciation expense | 1,384,157 | 28,389 | 3,802 |
Research and development | |||
Property and equipment, net | |||
Total depreciation expense | 641,793 | 226,173 | 640,372 |
Sales and marketing | |||
Property and equipment, net | |||
Total depreciation expense | 111,226 | 35,343 | 122,199 |
General and administrative | |||
Property and equipment, net | |||
Total depreciation expense | ¥ 626,395 | 4,491,492 | 417,295 |
Other operating income, net | |||
Property and equipment, net | |||
Total depreciation expense | ¥ 369,048 | ¥ 1,782,454 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Goodwill - Additional Information (Details) | Nov. 30, 2013CNY (¥) | Feb. 28, 2009CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2002CNY (¥) | Dec. 31, 2019USD ($) |
Goodwill | |||||||
Goodwill | ¥ 32,009,025 | ¥ 200,478,795 | ¥ 0 | $ 28,796,977 | |||
Disposal of goodwill | ¥ 32,009,025 | ||||||
ATA Education | |||||||
Goodwill | |||||||
Goodwill acquired | ¥ 6,880,123 | ||||||
Percentage of equity interest acquired | 5.00% | ||||||
Beijing JDX and JDX BVI | |||||||
Goodwill | |||||||
Goodwill acquired | ¥ 16,542,727 | ||||||
Xing Wei | |||||||
Goodwill | |||||||
Goodwill acquired | ¥ 7,589,052 | ||||||
Qihuang Huizhi | |||||||
Goodwill | |||||||
Goodwill acquired | ¥ 997,123 | ||||||
Qihuang Huizhi | ATA Online | |||||||
Goodwill | |||||||
Percentage of equity interest acquired | 65.00% | ||||||
Total consideration | ¥ 650,000 | ||||||
Goodwill | 997,123 | ||||||
Puhua Technology | |||||||
Goodwill | |||||||
Percentage of equity interest sold | 60.00% | ||||||
Total consideration | ¥ 2,000,000 | ||||||
Disposal of goodwill | ¥ 1,512,081 | ||||||
Huanqiuyimeng | |||||||
Goodwill | |||||||
Goodwill acquired | ¥ 200,478,795 | ||||||
Percentage of equity interest acquired | 100.00% | 100.00% | |||||
Goodwill | ¥ 200,478,795 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Change in the Carrying Amount of Goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Change in the carrying amount of goodwill | |||
Balance at beginning of the year | ¥ 0 | ¥ 32,009,025 | |
Less: Disposal of discontinued operations (Note 26) | (32,009,025) | ||
Balance at end of the year | 200,478,795 | $ 28,796,977 | ¥ 0 |
Huanqiuyimeng | |||
Change in the carrying amount of goodwill | |||
Balance at end of the year | 200,478,795 | ||
Goodwill acquired | ¥ 200,478,795 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Summary of Company's Intangible Assets (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible assets | ||
Gross carrying amount | ¥ 159,096,226 | ¥ 20,096,226 |
Accumulated amortization/deduction | (15,368,262) | (2,973,648) |
Impairment | (8,128,194) | |
Net carrying amount | 135,599,770 | 17,122,578 |
Non-compete arrangements | ||
Intangible assets | ||
Gross carrying amount | 56,000,000 | |
Accumulated amortization/deduction | (3,888,889) | |
Net carrying amount | ¥ 52,111,111 | |
Weighted average amortization period | 6 years | |
Order backlogs | ||
Intangible assets | ||
Gross carrying amount | ¥ 4,000,000 | |
Accumulated amortization/deduction | (1,190,476) | |
Net carrying amount | ¥ 2,809,524 | |
Weighted average amortization period | 1 year 4 months 24 days | |
Education assessment caseware | ||
Intangible assets | ||
Gross carrying amount | ¥ 9,251,887 | 9,251,887 |
Accumulated amortization/deduction | (4,281,085) | (2,430,708) |
Net carrying amount | ¥ 4,970,802 | ¥ 6,821,179 |
Weighted average amortization period | 5 years | 5 years |
Software platform of Project Shuang Chuang | ||
Intangible assets | ||
Gross carrying amount | ¥ 10,844,339 | ¥ 10,844,339 |
Accumulated amortization/deduction | (2,716,145) | (542,940) |
Impairment | ¥ (8,128,194) | |
Net carrying amount | ¥ 10,301,399 | |
Weighted average amortization period | 5 years | 5 years |
Trademarks | ||
Intangible assets | ||
Gross carrying amount | ¥ 79,000,000 | |
Accumulated amortization/deduction | (3,291,667) | |
Net carrying amount | ¥ 75,708,333 | |
Weighted average amortization period | 10 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Summary of Total Amortization Expense Recognized (Details) - CNY (¥) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | |||
Total amortization expense | ¥ 753,114 | ¥ 12,394,615 | ¥ 2,011,666 |
Cost of revenues | |||
Finite Lived Intangible Assets [Line Items] | |||
Total amortization expense | ¥ 753,114 | 2,031,478 | 1,468,726 |
Sales and marketing | |||
Finite Lived Intangible Assets [Line Items] | |||
Total amortization expense | 1,992,105 | ¥ 542,940 | |
General and administrative | |||
Finite Lived Intangible Assets [Line Items] | |||
Total amortization expense | ¥ 8,371,032 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net - Intangible Assets - Additional Information - (Details) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Intangible assets | ||||
Impairment loss relating to intangible assets and other non-current assets | ¥ 8,932,439 | $ 1,283,065 | ||
Software platform of Project Shuang Chuang | ||||
Intangible assets | ||||
Impairment loss relating to intangible assets and other non-current assets | ¥ 0 | ¥ 8,932,439 | ¥ 0 |
Goodwill and Intangible Asset_8
Goodwill and Intangible Assets, Net - Summary of Company's Intangible Assets (Parenthetical) (Details) - Education assessment caseware | 12 Months Ended |
Dec. 31, 2019itemgrade | |
Intangible assets | |
Number of subjects included | item | 3 |
Number of grades of junior and senior high school included | grade | 6 |
Goodwill and Intangible Asset_9
Goodwill and Intangible Assets, Net - Schedule of Estimated Amortization Expense (Details) | Dec. 31, 2019CNY (¥) |
Estimated amortization expense | |
2020 | ¥ 21,893,234 |
2021 | 19,083,711 |
2022 | 18,121,730 |
2023 | 17,614,984 |
2024 | ¥ 17,233,333 |
Leases - Additional Information
Leases - Additional Information (Details) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥)Lease | Dec. 31, 2018CNY (¥) | |
Lessee Lease Description [Line Items] | |||
Number of operating leases | Lease | 61 | ||
Weighted average remaining lease term | 1 year 8 months 1 day | ||
Weighted average discount rate | 5.88% | ||
Operating lease, rental expense | ¥ 13,903,991 | ||
Variable cost | 0 | ||
Sublease income | 0 | ||
Short term lease expense | ¥ 2,125,616 | ||
Rental expense for operating leases | ¥ 4,772,679 | ¥ 2,717,234 | |
Minimum | |||
Lessee Lease Description [Line Items] | |||
Operating lease remaining term of contract | 2 months | ||
Maximum | |||
Lessee Lease Description [Line Items] | |||
Operating lease remaining term of contract | 39 months |
Leases - Schedule on Impact of
Leases - Schedule on Impact of ASC 842 on Consolidated Balance Sheet (Details) - Dec. 31, 2019 | CNY (¥) | USD ($) |
Operating leases: | ||
Right-of-use lease assets | ¥ 40,786,291 | |
Lease liabilities-current | 20,556,017 | |
Other non-current liabilities | ¥ 12,500,120 | $ 1,795,530 |
Leases - Summary of Other Infor
Leases - Summary of Other Information Related to Leases (Details) | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Supplemental disclosures of cash flow information: | |
Cash paid for amounts included in measurement of operating leases liabilities | ¥ 12,850,734 |
Right-of-use assets acquired in exchange for operating lease obligations | 8,696,875 |
Right-of-use assets acquired in connection with Huanqiuyimeng Acquisition | ¥ 32,089,416 |
Weighted average remaining lease term | 1 year 8 months 1 day |
Weighted average discount rate | 5.88% |
Leases - Schedule on Maturities
Leases - Schedule on Maturities of Lease Liabilities under Non-Cancellable Leases (Details) | Dec. 31, 2019CNY (¥) |
Lessee Disclosure [Abstract] | |
2020 | ¥ 21,869,242 |
2021 | 10,956,342 |
2022 | 2,601,561 |
2023 | 359,048 |
Total undiscounted lease payments | 35,786,193 |
Less: Imputed interest | (2,730,056) |
Total lease liabilities | 33,056,137 |
Amounts due within 12 months | 20,556,017 |
Non-current lease liability | ¥ 12,500,120 |
Leases - Summary of Short-term
Leases - Summary of Short-term Lease Commitments (Details) | Dec. 31, 2019CNY (¥) |
Lessee Disclosure [Abstract] | |
2020 | ¥ 1,506,677 |
Short-term lease commitments | ¥ 1,506,677 |
Leases - Schedule on Future Min
Leases - Schedule on Future Minimum Annual Lease Payments under (ASC 840) Operating Leases (Details) | Dec. 31, 2018CNY (¥) |
Year ended December 31: | |
2019 | ¥ 2,959,829 |
2020 | 346,745 |
Minimum Lease Payments Amount | ¥ 3,306,574 |
Short-Term Loan - Additional In
Short-Term Loan - Additional Information (Details) | 1 Months Ended | 5 Months Ended | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Aug. 06, 2019CNY (¥) | Jul. 31, 2018CNY (¥) | |
Short Term Debt [Line Items] | ||||||
Short-term borrowings from bank | ¥ 4,991,000 | ¥ 4,991,000 | $ 716,912 | |||
Short-Term Loan | Huanqiuyimeng | ||||||
Short Term Debt [Line Items] | ||||||
Short-term borrowings from bank | ¥ 13,991,000 | |||||
Repayment of short-term borrowings | 9,000,000 | |||||
Interest expense accrued | ¥ 164,930 | |||||
Short-term borrowings outstanding amount | ¥ 4,991,000 | |||||
Jack Huang | Commercial Loan Facility (the "Facility") | ||||||
Short Term Debt [Line Items] | ||||||
Term of commercial loan facility | 3 years | |||||
Maximum borrowing capacity | ¥ 15,000,000 | |||||
ATA Education | Commercial Loan Facility (the "Facility") | ||||||
Short Term Debt [Line Items] | ||||||
Pledge agreement period | 3 years | |||||
Interest rate (as a percent) | 6.525% | |||||
Short-term borrowings from bank | ¥ 15,000,000 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables - Schedule of Accrued Expenses and Other Payables (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Payables And Accruals [Abstract] | |||
Refund liability | ¥ 8,919,239 | ||
Accrued payroll and welfare | 22,821,689 | ¥ 8,934,828 | |
Accrued test monitoring fees | 2,432,153 | 2,432,153 | |
Accrued professional services expenses | 3,489,512 | 755,849 | |
Income taxes payable | 679,961 | ||
Other current liabilities | 9,404,500 | 5,989,109 | |
Total accrued expenses and other payables | ¥ 47,747,054 | $ 6,858,437 | ¥ 18,111,939 |
Change in Fiscal Year End - Sch
Change in Fiscal Year End - Schedule of Consolidated Income Statement (Details) | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Change In Fiscal Year End [Abstract] | |||||
Net revenues | ¥ 5,185,822 | ¥ 97,770,167 | $ 14,043,806 | ¥ 1,338,592 | ¥ 7,389,371 |
Cost of revenues | 3,785,865 | 61,914,502 | 8,893,462 | 4,251,451 | 4,957,647 |
Gross profit (loss) | 1,399,957 | 35,855,665 | 5,150,344 | (2,912,859) | 2,431,724 |
Operating expenses | 60,087,962 | 154,216,247 | 22,151,778 | 68,672,509 | 74,104,081 |
Other operating income, net | 3,793,418 | ||||
Loss from continuing operations | (58,688,005) | (117,772,435) | (16,916,952) | (67,791,950) | (71,672,357) |
Other loss, net | (16,224,944) | (23,489,180) | (3,374,010) | (261,524) | (16,427,003) |
Loss from continuing operations before income taxes | (74,912,949) | (141,261,615) | (20,290,962) | (68,053,474) | (88,099,360) |
Income tax benefit | (2,109,096) | (7,149,119) | (1,026,907) | (591,290) | |
Loss from continuing operations, net of income taxes | (72,803,853) | (134,112,496) | (19,264,055) | (68,053,474) | (87,508,070) |
Income from discontinued operations, net of income taxes | 100,640,933 | 4,894,197 | 703,007 | 918,654,979 | 61,431,845 |
Net income (loss) | ¥ 27,837,080 | ¥ (129,218,299) | $ (18,561,048) | ¥ 850,601,505 | ¥ (26,076,225) |
Net Revenues - Schedule of Net
Net Revenues - Schedule of Net Revenues (Details) | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
NET REVENUES | |||||
Net revenues | ¥ 5,185,822 | ¥ 97,770,167 | $ 14,043,806 | ¥ 1,338,592 | ¥ 7,389,371 |
Portfolio training services | |||||
NET REVENUES | |||||
Net revenues | 63,828,907 | ||||
Educational travel services | |||||
NET REVENUES | |||||
Net revenues | 10,456,269 | ||||
Overseas study counselling services | |||||
NET REVENUES | |||||
Net revenues | 8,091,551 | ||||
Other educational services segment | |||||
NET REVENUES | |||||
Net revenues | 9,045,411 | ||||
K12 education assessment and other services | |||||
NET REVENUES | |||||
Net revenues | ¥ 5,185,822 | ¥ 6,348,029 | ¥ 1,338,592 |
Net Revenues - Additional Infor
Net Revenues - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Huanqiuyimeng | |
NET REVENUES | |
Changes in deferred revenue due to acquisition | ¥ 163,400,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - CNY (¥) | Jan. 01, 2020 | Jan. 01, 2008 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 |
Income Taxes | |||||||||||||
Statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | ||||||||||
Undistributed earnings generated by the PRC consolidated entities | ¥ 6,233,021 | ¥ 71,323,502 | ¥ 6,233,021 | ||||||||||
Unrecognized deferred income tax liability | 623,302 | ¥ 7,132,350 | 623,302 | ||||||||||
Withholding tax related to distributable earnings | ¥ 22,800,000 | 22,800,000 | |||||||||||
PRC statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | ||||||||||
Movements of the valuation allowance | |||||||||||||
Balance at the end of the period | ¥ 35,845,674 | ¥ 44,713,570 | ¥ 21,275,591 | 44,713,570 | ¥ 35,845,674 | ||||||||
Additional disclosures | |||||||||||||
Unrecognized tax benefits | 0 | 0 | 0 | 0 | ¥ 0 | ||||||||
Interest and penalties recorded | ¥ 0 | ¥ 0 | ¥ 0 | ||||||||||
Period of statute of limitations, if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent | 3 years | ||||||||||||
Period of statute of limitations, if the underpayment is more than RMB 100,000 | 5 years | ||||||||||||
Minimum amount of underpayment of taxes for statute of limitations to be extended to five years | ¥ 100,000 | 100,000 | |||||||||||
Period of statute of limitations for transfer pricing issues | 10 years | ||||||||||||
PRC | |||||||||||||
Income Taxes | |||||||||||||
Statutory income tax rate (as a percent) | 25.00% | 25.00% | |||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | ||||||||||||
Withholding tax rate for dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC (as a percent) | 10.00% | ||||||||||||
PRC statutory income tax rate (as a percent) | 25.00% | 25.00% | |||||||||||
Movements of the valuation allowance | |||||||||||||
Tax loss carry forwards for PRC income tax purpose | ¥ 112,615,412 | 112,615,412 | |||||||||||
PRC | December 31, 2022 | |||||||||||||
Movements of the valuation allowance | |||||||||||||
Tax loss carry forwards for PRC income tax purpose | 82,264 | 82,264 | |||||||||||
PRC | December 31, 2023 | |||||||||||||
Movements of the valuation allowance | |||||||||||||
Tax loss carry forwards for PRC income tax purpose | 5,770,566 | 5,770,566 | |||||||||||
PRC | December 31, 2024 | |||||||||||||
Movements of the valuation allowance | |||||||||||||
Tax loss carry forwards for PRC income tax purpose | 13,051,292 | 13,051,292 | |||||||||||
PRC | December 31, 2025 | |||||||||||||
Movements of the valuation allowance | |||||||||||||
Tax loss carry forwards for PRC income tax purpose | 1,593,134 | 1,593,134 | |||||||||||
PRC | December 31, 2026 | |||||||||||||
Movements of the valuation allowance | |||||||||||||
Tax loss carry forwards for PRC income tax purpose | 10,761,200 | 10,761,200 | |||||||||||
PRC | December 31, 2027 | |||||||||||||
Movements of the valuation allowance | |||||||||||||
Tax loss carry forwards for PRC income tax purpose | 24,885,644 | 24,885,644 | |||||||||||
PRC | December 31, 2028 | |||||||||||||
Movements of the valuation allowance | |||||||||||||
Tax loss carry forwards for PRC income tax purpose | 14,047,874 | 14,047,874 | |||||||||||
PRC | December 31, 2029 | |||||||||||||
Movements of the valuation allowance | |||||||||||||
Tax loss carry forwards for PRC income tax purpose | ¥ 42,423,438 | ¥ 42,423,438 | |||||||||||
PRC | ATA Education | |||||||||||||
Income Taxes | |||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | |||||||||
PRC | ATA Education | Subsequent Events | |||||||||||||
Income Taxes | |||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | ||||||||||||
Preferential tax rate as a high and new technology enterprise expected renewal period | 3 years | ||||||||||||
PRC | Muhua Shangce | |||||||||||||
Income Taxes | |||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | 15.00% | 15.00% | ||||||||||
PRC | Muhua Shangce | Future | |||||||||||||
Income Taxes | |||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss from Continuing Operations before Income Taxes Generated in Jurisdictions (Details) | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Taxes | |||||
Loss before continuing operations before income taxes | ¥ (74,912,949) | ¥ (141,261,615) | $ (20,290,962) | ¥ (68,053,474) | ¥ (88,099,360) |
Cayman Islands and British Virgin Islands | |||||
Income Taxes | |||||
Loss before continuing operations before income taxes | (39,725,254) | (23,094,955) | (29,296,296) | ||
PRC | |||||
Income Taxes | |||||
Loss before continuing operations before income taxes | (35,150,223) | (118,145,074) | (39,680,573) | ||
HKSAR | |||||
Income Taxes | |||||
Loss before continuing operations before income taxes | ¥ (37,472) | ¥ (21,586) | ¥ 923,395 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Details) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2017CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | ¥ 905,078 | |||
Deferred income tax benefit | ¥ (2,109,096) | (8,054,197) | ||
Total income tax benefit | ¥ (2,109,096) | ¥ (7,149,119) | $ (1,026,907) | ¥ (591,290) |
Income Taxes - Schedule of Diff
Income Taxes - Schedule of Difference Between Actual Income Tax Expense and Amount Computed by Applying PRC Statutory Income Tax Rate to Earnings before Income Taxes (Details) | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Difference between actual income tax expense and amount computed by applying the PRC statutory income tax rate to earnings (loss) before income taxes | |||||
Computed “expected” income tax benefit | ¥ (18,728,237) | ¥ (35,315,404) | ¥ (17,013,369) | ||
Increase (decrease) in valuation allowance | 9,261,477 | 23,171,671 | (14,570,083) | ||
Entities not subject to income tax | 8,244,168 | 4,576,771 | 4,896,732 | ||
Non-deductible expenses | |||||
Entertainment | 98,299 | 394,380 | 255,843 | ||
Share-based compensation | 1,696,514 | 1,202,364 | 2,427,342 | ||
Bad debt loss | (96,683) | 25,206 | |||
Additional deduction of research and development costs | (951,062) | (240,404) | (447,525) | ||
Withholding tax related to undistributed earnings | (2,109,096) | ||||
Gain from discharge of intercompany payables | 25,594,493 | ||||
Investment loss from sale of non-redeemable non-controlling interests | (1,725,000) | ||||
Other | 475,524 | (938,497) | ¥ 556,361 | ||
Total income tax benefit | ¥ (2,109,096) | ¥ (7,149,119) | $ (1,026,907) | ¥ (591,290) |
Income Taxes - Schedule of Di_2
Income Taxes - Schedule of Difference Between Actual Income Tax Expense and Amount Computed by Applying PRC Statutory Income Tax Rate to Earnings before Income Taxes (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
ATA Education | Limited Partnership | Muhua Shangce | |
Percentage of equity interest sold | 24.00% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Income Tax Assets and Liabilities (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Mar. 31, 2017CNY (¥) |
Deferred income tax assets: | |||||
Tax loss carry forwards | ¥ 28,153,853 | ¥ 14,082,622 | |||
Impairment loss of long-term investments | 10,148,827 | 4,132,700 | |||
Lease liability | 8,264,034 | ||||
Impairment loss of intangible assets and other non-current assets | 2,233,110 | ||||
Provision for other receivables | 1,396,914 | ||||
Accrued expenses and other payables | 4,213,877 | 2,946,135 | |||
Property and equipment, net | 702,523 | 551,634 | |||
Donation | 2,768,750 | 250,000 | |||
Total gross deferred income tax assets | 57,881,888 | 21,963,091 | |||
Less: valuation allowance | (44,713,570) | (21,275,591) | ¥ (35,845,674) | ¥ (26,584,197) | |
Total deferred income tax assets, net | 13,168,318 | 687,500 | |||
Deferred income tax liabilities: | |||||
Intangible assets | 32,657,242 | ||||
Right-of-use assets | 10,196,572 | ||||
Deferred revenues | 7,091,422 | ||||
Change in fair value of long-term investment | 687,500 | ||||
Total gross deferred income tax liabilities | 49,945,236 | ¥ 687,500 | |||
Deferred income tax assets | 11,464,891 | $ 1,646,829 | |||
Deferred income tax liabilities | ¥ 48,241,809 | $ 6,929,502 |
Income Taxes - Summary of Movem
Income Taxes - Summary of Movements of Valuation Allowance (Details) - CNY (¥) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movements of the valuation allowance | |||
Balance at the beginning of the period | ¥ 26,584,197 | ¥ 21,275,591 | ¥ 35,845,674 |
Additions | 9,261,477 | 23,437,979 | 11,024,410 |
Reduction due to gain from discharge of intercompany payables | (25,594,493) | ||
Balance at the end of the period | ¥ 35,845,674 | ¥ 44,713,570 | ¥ 21,275,591 |
Non-Controlling Interests - Add
Non-Controlling Interests - Additional Information (Details) | Sep. 29, 2019CNY (¥) | Sep. 26, 2019CNY (¥) | Oct. 26, 2018CNY (¥) | Feb. 28, 2017CNY (¥) | Feb. 28, 2017CNY (¥)item | Dec. 31, 2019CNY (¥) |
Muhua Investment | ||||||
NON-CONTROLLING INTERESTS | ||||||
Cash consideration for new financing agreement with Muhua investment | ¥ 5,000,000 | |||||
Muhua Investment | Maximum | ||||||
NON-CONTROLLING INTERESTS | ||||||
Percentage of equity interest | 56.00% | |||||
Muhua Investment | Minimum | ||||||
NON-CONTROLLING INTERESTS | ||||||
Percentage of equity interest | 54.60% | |||||
Muhua Shangce | ||||||
NON-CONTROLLING INTERESTS | ||||||
Equity interest acquired | 50.00% | |||||
Redemption value | ¥ 2,500,000 | |||||
The investors | ||||||
NON-CONTROLLING INTERESTS | ||||||
Number of investors | item | 2 | |||||
Equity interest acquired | 50.00% | 20.00% | ||||
Redemption period | 5 years | 6 years | ||||
Redemption value | ¥ 2,500,000 | ¥ 34,000,000 | ¥ 34,000,000 | ¥ 2,500,000 | ||
Redemption value interest rate | 8.00% | 8.00% | 8.00% | |||
ATA Education | Muhua Shangce | Limited Partnership | ||||||
NON-CONTROLLING INTERESTS | ||||||
Percentage of equity interest sold | 24.00% | 24.00% | ||||
Total consideration | ¥ 1,500,000 |
Non-Controlling Interests - Sum
Non-Controlling Interests - Summary of Redeemable Non-Controlling Interest Activities (Details) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Noncontrolling Interest [Abstract] | ||||
Balance at the beginning of the period | ¥ 39,208,619 | ¥ 36,304,276 | ||
Add: Capital contribution | ¥ 34,000,000 | 2,500,000 | ||
Less: Comprehensive loss | (1,444,363) | (2,820,682) | (3,181,199) | |
Accretion of redeemable non-controlling interests | 3,748,639 | 6,008,491 | 6,085,542 | |
Balance at the end of the period | ¥ 36,304,276 | ¥ 44,896,428 | $ 6,448,968 | ¥ 39,208,619 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - Segment | Aug. 05, 2019 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | 1 | 1 | 1 | |
Number of reportable segments | 1 | |||
Product Concentration Risk | Revenue Benchmark | ||||
Segment Reporting Information [Line Items] | ||||
Quantitative threshold, percentage | 10.00% |
Segment Information - Summary o
Segment Information - Summary of Selected Financial Information Relating to Group's Segments (Details) | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Segment Reporting Information [Line Items] | |||||
Net revenues | ¥ 5,185,822 | ¥ 97,770,167 | $ 14,043,806 | ¥ 1,338,592 | ¥ 7,389,371 |
Operating cost and expenses: | |||||
Cost of revenues | 3,785,865 | 61,914,502 | 8,893,462 | 4,251,451 | 4,957,647 |
Research and development | 15,415,780 | 11,817,255 | 1,697,442 | 19,594,484 | |
Sales and marketing | 4,539,473 | 34,112,212 | 4,899,913 | 5,570,169 | |
Unallocated corporate expenses* | 81,923,516 | ||||
General and administrative | 40,132,709 | 81,923,516 | 11,767,577 | 43,507,856 | |
Other operating income, net | 588,147 | 84,482 | 3,793,418 | ||
Impairment loss of intangible assets and other non-current assets | 8,932,439 | 1,283,065 | |||
Provision for loan receivable and other receivables | 17,430,825 | 2,503,781 | |||
Total operating cost and expenses | 63,873,827 | 216,130,749 | 72,923,960 | ||
Other operating income, net | 588,147 | 84,482 | 3,793,418 | ||
Loss from continuing operations | (58,688,005) | (117,772,435) | $ (16,916,952) | (67,791,950) | ¥ (71,672,357) |
Overseas Art Study Services | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 82,376,727 | ||||
Operating cost and expenses: | |||||
Cost of revenues | 50,365,985 | ||||
Sales and marketing | 27,859,200 | ||||
Total operating cost and expenses | 78,225,185 | ||||
Loss from continuing operations | 4,151,542 | ||||
Others | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 5,185,822 | 15,393,440 | 1,338,592 | ||
Operating cost and expenses: | |||||
Cost of revenues | 3,785,865 | 11,548,517 | 4,251,451 | ||
Research and development | 15,415,780 | 11,817,255 | 19,594,484 | ||
Sales and marketing | 4,539,473 | 6,253,012 | 5,570,169 | ||
General and administrative | 40,132,709 | 43,507,856 | |||
Other operating income, net | 588,147 | 3,793,418 | |||
Impairment loss of intangible assets and other non-current assets | 8,932,439 | ||||
Provision for loan receivable and other receivables | 17,430,825 | ||||
Total operating cost and expenses | 63,873,827 | 55,982,048 | 72,923,960 | ||
Other operating income, net | 588,147 | 3,793,418 | |||
Loss from continuing operations | ¥ (58,688,005) | ¥ (40,000,461) | ¥ (67,791,950) |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) | Oct. 26, 2018shares | Dec. 30, 2016shares | Jan. 07, 2008shares | Mar. 31, 2019$ / sharesshares | Jan. 31, 2019$ / sharesshares | Dec. 31, 2018shares | Nov. 30, 2018$ / sharesshares | Jul. 31, 2018shares | Aug. 31, 2017$ / sharesshares | Jan. 31, 2017$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Oct. 31, 2007shares | Apr. 30, 2005shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Compensation costs accelerated and recognized | ¥ | ¥ 877,321 | ||||||||||||||||
ATA Online | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Compensation costs accelerated and recognized | ¥ | ¥ 6,753,771 | ||||||||||||||||
Options | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Granted (in shares) | 50,000 | 70,000 | 1,053,150 | 1,053,150 | |||||||||||||
Granted (in dollars per share) | $ / shares | $ 2.35 | $ 0.50 | $ 0.58 | ||||||||||||||
Options cancelled (in shares) | 1,772,584 | 1,901,752 | 1,901,752 | ||||||||||||||
Vested cancelled (in shares) | 1,215,114 | ||||||||||||||||
Total unrecognized compensation expense | ¥ | ¥ 331,885 | ||||||||||||||||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 2 years 9 months 10 days | ||||||||||||||||
Options | ATA Online | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Options cancelled (in shares) | 129,168 | ||||||||||||||||
Options | Employees and officers | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Vesting rate (as a percent) | 75.00% | 75.00% | 75.00% | 75.00% | |||||||||||||
Vesting period for remaining 75% shares | 36 months | 36 months | 36 months | 36 months | |||||||||||||
Vesting rate on the first anniversary (as a percent) | 25.00% | ||||||||||||||||
Granted (in shares) | 20,000 | 50,000 | 1,772,584 | 690,000 | 900,000 | ||||||||||||
Granted (in dollars per share) | $ / shares | $ 0.532 | $ 0.4868 | $ 0.578 | $ 1.705 | |||||||||||||
Vesting rate at the end of each year from the grant date over 4 years (as a percent) | 25.00% | 25.00% | 25.00% | ||||||||||||||
Vested immediately on the grant date (in shares) | 1,412,336 | ||||||||||||||||
Options | Employee | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Vesting rate (as a percent) | 75.00% | ||||||||||||||||
Vesting period for remaining 75% shares | 36 months | ||||||||||||||||
Vesting rate on the first anniversary (as a percent) | 25.00% | ||||||||||||||||
Granted (in shares) | 363,150 | 50,000 | |||||||||||||||
Granted (in dollars per share) | $ / shares | $ 2.35 | ||||||||||||||||
Options | Certain employee and officer | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Vesting period | 4 years | ||||||||||||||||
Share options issued (in shares) | 1,452,600 | ||||||||||||||||
Non-vested shares | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Non-vested shares granted | 2,572,584 | 2,572,584 | |||||||||||||||
Nonvested cancelled (in shares) | 557,470 | 1,262,250 | 1,262,250 | ||||||||||||||
Total unrecognized compensation expense | ¥ | ¥ 2,077,009 | ||||||||||||||||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 2 years 2 months 1 day | ||||||||||||||||
Additional disclosures | |||||||||||||||||
Total fair value of shares vested | $ | $ 148,500 | $ 461,309 | $ 2,591,875 | ||||||||||||||
Number of vested shares withheld upon vesting to satisfy the minimum tax withholding obligation | 11,252 | 28,456 | 93,496 | 93,496 | |||||||||||||
Non-vested shares | ATA Online | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Nonvested cancelled (in shares) | 1,262,250 | ||||||||||||||||
Non-vested shares | Employees and officers | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Vesting period | 4 years | ||||||||||||||||
Non-vested shares granted | 2,700,000 | ||||||||||||||||
Non-vested shares | Directors | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Vesting rate (as a percent) | 75.00% | ||||||||||||||||
Vesting period for remaining 75% shares | 36 months | ||||||||||||||||
Non-vested shares granted | 800,000 | ||||||||||||||||
Vesting rate on the first anniversary (as a percent) | 25.00% | ||||||||||||||||
Grant date over 4 years | Non-vested shares | Employees and officers | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Vesting rate (as a percent) | 25.00% | ||||||||||||||||
2005 Share incentive plan | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Shares authorized | 3,310,300 | 2,894,000 | |||||||||||||||
2005 Share incentive plan | Options | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Expiration term | 10 years | ||||||||||||||||
2005 Share incentive plan | Vesting on first anniversary | Options | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Vesting rate (as a percent) | 25.00% | ||||||||||||||||
2005 Share incentive plan | Vesting ratably over following 36 months | Options | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Vesting rate (as a percent) | 75.00% | ||||||||||||||||
2008 Share incentive plan | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Shares authorized | 5,726,763 | 336,307 | |||||||||||||||
Annual increase in shares reserved (as a percent) | 1.00% | ||||||||||||||||
Annual increase in shares reserved (in shares) | 336,307 | ||||||||||||||||
Expiration term | 10 years | 10 years | |||||||||||||||
2008 Share incentive plan | Options | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Expiration term | 10 years | ||||||||||||||||
2008 Share incentive plan | Non-vested shares | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Vesting period for remaining 75% shares | 36 months | ||||||||||||||||
Vesting period | 4 years | ||||||||||||||||
2008 Share incentive plan | Vesting on first anniversary | Options | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Vesting rate (as a percent) | 25.00% | ||||||||||||||||
2008 Share incentive plan | Vesting ratably over following 36 months | Options | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Vesting rate (as a percent) | 75.00% | ||||||||||||||||
2008 Share incentive plan | Grant date over 4 years | Non-vested shares | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Vesting rate (as a percent) | 25.00% | ||||||||||||||||
Amendment and Restatement of 2008 Plan | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Annual increase in shares reserved (as a percent) | 1.00% | ||||||||||||||||
Common shares reserved for issuance | 6,965,846 | ||||||||||||||||
Second Amendment and Restatement of 2008 Plan | |||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||
Common shares reserved for issuance | 7,423,815 |
Share-based Compensation - Summ
Share-based Compensation - Summary of the Share Options Activities (Details) - Options - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of shares | ||||
Outstanding at the beginning of the period (in shares) | 2,451,067 | 1,142,212 | 2,377,067 | |
Granted (in shares) | 50,000 | 70,000 | 1,053,150 | |
Exercised (in shares) | (119,792) | |||
Forfeited (in shares) | (50,000) | (809,712) | (123,438) | |
Cancelled (in shares) | (1,772,584) | (1,901,752) | ||
Expired (in shares) | (74,000) | (143,023) | ||
Outstanding at the end of the period (in shares) | 2,377,067 | 402,500 | 1,142,212 | |
Vested and expected to vest at the end of the period (in shares) | 402,500 | |||
Exercisable at the end of the period (in shares) | 122,082 | |||
Weighted average exercise | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 2.21 | $ 0.67 | $ 2.18 | |
Granted (in dollars per share) | 2.35 | 0.50 | 0.58 | |
Exercised (in dollars per share) | 1.77 | |||
Forfeited (in dollars per share) | 1.71 | 0.61 | 1.71 | |
Cancelled (in dollars per share) | 2.13 | |||
Expired (in dollars per share) | 3.60 | 3.89 | ||
Outstanding at the end of the period (in dollars per share) | $ 2.18 | 0.75 | $ 0.67 | |
Vested and expected to vest at the end of the period (in dollars per share) | 0.75 | |||
Exercisable at the end of the period (in dollars per share) | $ 0.90 | |||
Weighted remaining contractual Years | ||||
Vested and expected to vest at the end of the period | 8 years 7 months 2 days | |||
Exercisable at the end of the period | 8 years 3 months 29 days | |||
Aggregate intrinsic value | ||||
Vested and expected to vest at the end of the period (in dollars) | $ 35,753 | |||
Exercisable at the end of the period (in dollars) | $ 8,879 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Information Relating to Options Outstanding and Exercisable (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Exercise price one | |
Options outstanding as of December 31, 2019 | |
Number of Shares | shares | 62,500 |
Exercise Price per Share | $ / shares | $ 1.71 |
Remaining Contractual Life | 7 years 18 days |
Options exercisable as of December 31, 2019 | |
Number of Shares | shares | 35,416 |
Exercise Price per Share | $ / shares | $ 1.71 |
Remaining Contractual Life | 7 years 18 days |
Exercise price two | |
Options outstanding as of December 31, 2019 | |
Number of Shares | shares | 320,000 |
Exercise Price per Share | $ / shares | $ 0.58 |
Remaining Contractual Life | 8 years 10 months 6 days |
Options exercisable as of December 31, 2019 | |
Number of Shares | shares | 86,666 |
Exercise Price per Share | $ / shares | $ 0.58 |
Remaining Contractual Life | 8 years 10 months 6 days |
Exercise price three | |
Options outstanding as of December 31, 2019 | |
Number of Shares | shares | 20,000 |
Exercise Price per Share | $ / shares | $ 0.53 |
Remaining Contractual Life | 9 years 2 months 15 days |
Exercise price four | |
Options outstanding as of December 31, 2019 | |
Number of Shares | shares | 402,500 |
Exercise Price per Share | $ / shares | $ 0.75 |
Remaining Contractual Life | 8 years 7 months 2 days |
Options exercisable as of December 31, 2019 | |
Number of Shares | shares | 122,082 |
Exercise Price per Share | $ / shares | $ 0.90 |
Remaining Contractual Life | 8 years 3 months 29 days |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Assumptions Used in the Valuation Model (Details) - Options | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assumptions used in the valuation model | |||
Expected dividend yield | 8.70% | 0.00% | 0.00% |
Expected volatility | 60.00% | 57.00% | |
Expected term | 6 years 29 days | 6 years 29 days | |
Risk-free interest rate | 1.96% | ||
Minimum | |||
Assumptions used in the valuation model | |||
Expected volatility | 54.00% | ||
Expected term | 5 years 1 month 9 days | ||
Risk-free interest rate | 2.45% | 3.05% | |
Maximum | |||
Assumptions used in the valuation model | |||
Expected volatility | 55.00% | ||
Expected term | 6 years 1 month 9 days | ||
Risk-free interest rate | 2.53% | 3.10% |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of Compensation Expense Recognized for Non-vested Shares (Details) - CNY (¥) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options | |||
Share-based Compensation | |||
Total-share based compensation expense | ¥ 3,103,243 | ¥ 414,007 | ¥ 2,253,210 |
Options | Research and development | |||
Share-based Compensation | |||
Total-share based compensation expense | 476,994 | 68,016 | 157,355 |
Options | Sales and marketing | |||
Share-based Compensation | |||
Total-share based compensation expense | 272,568 | 70,915 | |
Options | General and administrative | |||
Share-based Compensation | |||
Total-share based compensation expense | 2,353,681 | 345,991 | 2,024,940 |
Non-vested shares | |||
Share-based Compensation | |||
Total-share based compensation expense | 3,682,812 | 4,395,447 | 7,456,157 |
Non-vested shares | Research and development | |||
Share-based Compensation | |||
Total-share based compensation expense | 516,339 | 367,313 | 240,441 |
Non-vested shares | Sales and marketing | |||
Share-based Compensation | |||
Total-share based compensation expense | 258,170 | 96,058 | |
Non-vested shares | General and administrative | |||
Share-based Compensation | |||
Total-share based compensation expense | ¥ 2,908,303 | ¥ 4,028,134 | ¥ 7,119,658 |
Share-based Compensation - Su_3
Share-based Compensation - Summary of the Non-vested Shares Activities (Details) - Non-vested shares - $ / shares | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of shares | ||||
Outstanding at the beginning of the period (in shares) | 2,700,000 | 1,795,498 | 2,625,000 | |
Granted (in shares) | 2,572,584 | |||
Vested (in shares) | (60,000) | (693,362) | (2,068,586) | |
Forfeited (in shares) | (15,000) | (71,250) | ||
Cancelled (in shares) | (557,470) | (1,262,250) | ||
Outstanding at the end of the period (in shares) | 2,625,000 | 1,102,136 | 1,795,498 | |
Weighted average grant date fair value | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 1.661 | $ 0.951 | $ 1.650 | |
Granted (in dollars per share) | 0.537 | |||
Vested (in dollars per share) | 2.145 | 0.885 | 0.872 | |
Forfeited (in dollars per share) | 1.650 | 1.650 | ||
Cancelled (in dollars per share) | 1.650 | |||
Outstanding at the end of the period (in dollars per share) | $ 1.650 | $ 0.993 | $ 0.951 |
Common Shares - Additional Info
Common Shares - Additional Information (Details) - Private Placement ¥ in Millions, $ in Millions | Apr. 10, 2020CNY (¥) | Apr. 10, 2020USD ($) | Dec. 24, 2019CNY (¥)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
Common shares | |||||
Issuance of common shares upon private placement (in shares) | 5,662,634 | ||||
Proceeds from issuance of common stock | ¥ 10 | ¥ 61.7 | $ 8.8 | ||
Subsequent Events | |||||
Common shares | |||||
Proceeds from issuance of common stock | ¥ 8.5 | $ 1.2 |
Cash Dividends - Additional Inf
Cash Dividends - Additional Information (Details) | Aug. 24, 2018CNY (¥) | Aug. 07, 2018$ / shares | Jun. 01, 2017$ / shares | Jul. 31, 2017CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018CNY (¥) |
Cash dividend | ||||||
Total amount of cash distributed in the dividend | ¥ | ¥ 65,698,571 | ¥ 65,698,571 | ¥ 946,611,803 | |||
Discontinued operation, disposal by sale | ATA Online and its direct shareholding companies, ATA Learning and Zhongxiao Zhixing | ||||||
Cash dividend | ||||||
Total amount of cash distributed in the dividend | ¥ | ¥ 946,600,000 | |||||
Common share | ||||||
Cash dividend | ||||||
Special cash dividend declared per share (in dollars per share) | $ / shares | $ 3 | $ 0.205 | ||||
ADS | ||||||
Cash dividend | ||||||
Special cash dividend declared per share (in dollars per share) | $ / shares | $ 6 | $ 0.41 |
Statutory Reserves - Additional
Statutory Reserves - Additional Information (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Reserves Disclosure [Abstract] | ||
Required percentage of after tax profit transferred to general reserve fund | 10.00% | |
Percentage of registered capital limit for transfer of after tax profit to general reserve fund | 50.00% | |
Accumulated of after tax profit to statutory reserve fund | ¥ 25,671,341 | ¥ 25,557,266 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | Aug. 16, 2018 | Jun. 27, 2017CNY (¥) | Jun. 07, 2017CNY (¥) | Mar. 29, 2016CNY (¥) | Jun. 30, 2018CNY (¥) | May 31, 2015CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | Jul. 31, 2018CNY (¥) |
RELATED PARTY TRANSACTIONS | ||||||||||||
Drawdowns | ¥ 4,991,000 | ¥ 4,991,000 | $ 716,912 | |||||||||
Total sublease income | 0 | |||||||||||
Jack Huang | Commercial Loan Facility (the "Facility") | ||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||
Term of commercial loan facility | 3 years | |||||||||||
Maximum borrowing capacity | ¥ 15,000,000 | |||||||||||
ATA Education | Commercial Loan Facility (the "Facility") | ||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||
Pledge agreement period | 3 years | |||||||||||
Interest rate (as a percent) | 6.525% | |||||||||||
Drawdowns | ¥ 15,000,000 | |||||||||||
Interest expenses | ¥ 249,683 | |||||||||||
Entities controlled by Chairman, Chief Executive Officer and certain management members | Disposal of ATA Online to entities controlled by Management | ||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||
Equity interest transferred (in percent) | 67.50% | |||||||||||
ATA Learning and Zhongxiao Zhixing | Equity interest of ATA Online transferred from nominee shareholders | ||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||
Consideration for sale of equity interest | ¥ 10,000,000 | |||||||||||
Consideration transferred by General Counsel to CEO | ¥ 1,000,000 | |||||||||||
ATA Learning and Zhongxiao Zhixing | Mr. Kevin Xiaofeng Ma | Equity interest of ATA Online transferred from nominee shareholders | ||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||
Cash received | ¥ 10,000,000 | |||||||||||
Master Mind | Sublease of Jianwai SOHO office | ||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||
Total sublease income | ¥ 207,346 | 0 | ¥ 0 | |||||||||
Executive Partner of Tianjin Zhishang is the CEO and director of ATA Online | Disposal of equity interest in ZhiShang to Tianjin Zhishang by ATA Online | ||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||
Equity interest to be sold (as a percent) | 15.00% | |||||||||||
Consideration of disposal | ¥ 1,253,550 | |||||||||||
Huanqiuyimeng | Shanghai Aixue Culture Communication Co., Ltd. | President | ||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||
Expenses prepaid on behalf of related party | 1,038,494 | |||||||||||
Payment made from related party's operating expenses | 1,037,126 | |||||||||||
Due from related parties | ¥ 1,368 | ¥ 1,368 |
Commitments and Contingencies -
Commitments and Contingencies - Additional information (Details) - Agreement with Tsinghua University ¥ in Millions | Apr. 27, 2017CNY (¥) |
Long Term Purchase Commitment [Line Items] | |
Period covered by the purchase agreement | 5 years |
Maximum amount of funding support under certain circumstances | ¥ 50 |
Amount of funding support to be paid in next three years | ¥ 20 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments Under Commitments (Details) - Agreement with Tsinghua University | Dec. 31, 2019CNY (¥) |
Long Term Purchase Commitment [Line Items] | |
2020 | ¥ 10,000,000 |
2021 | 10,000,000 |
Total | ¥ 20,000,000 |
Operating Leases - Schedule of
Operating Leases - Schedule of Property on Operating Lease (Details) - Building - CNY (¥) | Dec. 31, 2019 | Dec. 31, 2018 |
Property Subject To Or Available For Operating Lease [Line Items] | ||
Building | ¥ 53,049,213 | ¥ 53,049,213 |
Less: Accumulated depreciation | (18,714,584) | (16,932,130) |
Property on Operating Lease, net | ¥ 34,334,629 | ¥ 36,117,083 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share - Schedule of Basic and Diluted Earnings (Loss) Per Common Share (Details) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net earnings (loss) attributable to ATA Creativity Global | ¥ 29,633,544 | ¥ (122,253,989) | $ (17,560,687) | ¥ 854,925,914 |
Dividends paid to participating securities | ¥ | 3,749,630 | 13,249,006 | ||
Redeemable non-controlling interest redemption value accretion | ¥ | 3,748,639 | 6,008,491 | 6,085,542 | |
Net earnings (loss) available to common shareholders | ¥ | ¥ 22,135,275 | ¥ (128,262,480) | ¥ 835,591,366 | |
Denominator for basic earnings (loss) per share: | ||||
Weighted average common shares outstanding | shares | 45,793,127 | 50,915,710 | 50,915,710 | 45,796,886 |
Denominator for diluted earnings (loss) per share | shares | 45,793,127 | 50,915,710 | 50,915,710 | 45,796,886 |
Basic loss per common share from continuing operations | ¥ (1.72) | ¥ (2.62) | ¥ (1.81) | |
Diluted loss per common share from continuing operations | (1.72) | (2.62) | (1.81) | |
Basic earnings per common share from discontinued operations | 2.20 | 0.10 | 20.06 | |
Basic and diluted earnings from discontinued operations per common share attributable to ATA Creativity Global | (per share) | 2.20 | 0.10 | $ 0.01 | 20.06 |
Basic earnings (loss) per common share attributable to ATA Creativity Global | 0.48 | (2.52) | 18.25 | |
Diluted earnings (loss) per common share attributable to ATA Creativity Global | ¥ 0.48 | ¥ (2.52) | ¥ 18.25 |
Earnings (Loss) Per Common Sh_4
Earnings (Loss) Per Common Share - Summary of Potential Common Shares Outstanding Excluded From the Calculation of Diluted Earnings (Loss) Per Share (Details) - shares | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Shares issuable under share options (in shares) | 2,377,067 | 402,500 | 1,142,212 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) $ in Millions | Aug. 24, 2018CNY (¥) | Aug. 16, 2018USD ($)entity | Dec. 31, 2017CNY (¥) | Dec. 31, 2018CNY (¥) |
DISCONTINUED OPERATIONS | ||||
Special cash dividend | ¥ | ¥ 946,600,000 | ¥ 65,698,571 | ¥ 946,613,862 | |
ATA Online and its direct shareholding companies, ATA Learning and Zhongxiao Zhixing | Discontinued operation, disposal by sale | Entities Affiliated With Funds Managed By CDH Investments | ||||
DISCONTINUED OPERATIONS | ||||
Equity interest transferred (in percent) | 17.50% | |||
Equity interest transferred to number of entities | entity | 2 | |||
Consideration of disposal | $ 35 | |||
ATA Online and its direct shareholding companies, ATA Learning and Zhongxiao Zhixing | Discontinued operation, disposal by sale | Holding Companies Controlled By Certain Managements | ||||
DISCONTINUED OPERATIONS | ||||
Equity interest transferred (in percent) | 16.50% | |||
Equity interest transferred to number of entities | entity | 3 | |||
Consideration of disposal | $ 33 | |||
ATA Online and its direct shareholding companies, ATA Learning and Zhongxiao Zhixing | Discontinued operation, disposal by sale | the LHHY entity | ||||
DISCONTINUED OPERATIONS | ||||
Equity interest transferred (in percent) | 15.00% | |||
Consideration of disposal | $ 30 | |||
ATA Online and its direct shareholding companies, ATA Learning and Zhongxiao Zhixing | Discontinued operation, disposal by sale | New Beauty Holding Limited | ||||
DISCONTINUED OPERATIONS | ||||
Equity interest transferred (in percent) | 51.00% | |||
Consideration of disposal | $ 102 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Financial Information of Discontinued Operations (Details) | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Operating results of discontinued operations | |||||
Net revenues | ¥ 484,873,277 | ¥ 194,939,146 | |||
Cost of revenues | 255,263,889 | 116,432,436 | |||
Operating expenses | 101,413,368 | 104,587,110 | |||
Other income (loss) | 3,962,257 | 6,929,814 | |||
Income (loss) from operations of discontinued operations, before income taxes | 132,158,277 | (19,150,586) | |||
Income tax expense (benefit) | 31,517,344 | (199,617) | |||
Income (loss) from operations of discontinued operations, net of income taxes | 100,640,933 | (18,950,969) | |||
Gain from disposal of discontinued operations, net of income taxes | ¥ 4,894,197 | $ 703,007 | 937,605,948 | ||
Income from discontinued operations, net of income taxes | 100,640,933 | 4,894,197 | 703,007 | 918,654,979 | ¥ 61,431,845 |
Net loss attributable to non-redeemable non-controlling interests from discontinued operations | (352,101) | (10,608) | |||
Net Income from discontinued operations attributable to ATA Creativity Global | 100,993,034 | 4,894,197 | $ 703,007 | 918,665,587 | |
Cash flows of discontinued operations | |||||
Net cash provided by (used in) operating activities | 133,225,150 | ¥ 4,894,197 | (25,108,520) | ||
Net cash used in investing activities | (22,052,885) | (8,666,299) | |||
Net cash used in financing activities | ¥ (93,811,830) | ¥ (21,098,633) |
Subsequent Events - Additional
Subsequent Events - Additional information (Details) - ATA Online Sale Transaction $ in Millions | 1 Months Ended | ||
Mar. 31, 2020CNY (¥) | Mar. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Subsequent Event [Line Items] | |||
Loss contingency accrued | ¥ 0 | ||
Subsequent Events | |||
Subsequent Event [Line Items] | |||
Total consideration | $ | $ 200 | ||
Subsequent Events | Alpha Advantage Global Limited and Dynamic Fame Limited | |||
Subsequent Event [Line Items] | |||
Attorney’s fees and other litigation costs | ¥ 15,000,000 | ||
Subsequent Events | Mr. Kevin Xiaofeng Ma | Alpha Advantage Global Limited | |||
Subsequent Event [Line Items] | |||
Loss contingency, damages sought, value | 95,000,000 | ||
Attorney’s fees and other litigation costs | 1,500,000 | ||
Subsequent Events | Mr. Kevin Xiaofeng Ma | Dynamic Fame Limited | |||
Subsequent Event [Line Items] | |||
Loss contingency, damages sought, value | 5,000,000 | ||
Attorney’s fees and other litigation costs | ¥ 500,000 |
ATA Creativity Global ("Parent
ATA Creativity Global ("Parent Company") - Condensed Balance Sheets (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Condensed Financial Statements Captions [Line Items] | |||
Cash and cash equivalents | ¥ 154,197,758 | $ 22,149,122 | ¥ 190,586,342 |
Prepaid expenses and other current assets | 16,490,369 | 2,368,693 | 7,836,092 |
Subscription receivable | 8,530,931 | 1,225,392 | |
Loan receivable, net | 4,126,502 | 592,735 | 14,532,685 |
Total assets | 676,089,833 | 97,114,228 | 335,138,771 |
Accrued expenses and other payables | 47,747,054 | 6,858,437 | 18,111,939 |
Total liabilities | 325,558,213 | 46,763,513 | 19,745,915 |
Common shares | 4,692,312 | 674,008 | 3,534,871 |
Treasury shares | (27,737,073) | (3,984,181) | (27,737,073) |
Additional paid-in capital | 560,814,066 | 80,555,900 | 410,195,990 |
Accumulated other comprehensive loss | (37,478,167) | (5,383,402) | (38,288,364) |
Accumulated deficit | (200,151,065) | (28,749,902) | (71,888,585) |
Total shareholders’ equity attributable to ATA Creativity Global | 300,140,073 | 43,112,423 | 275,816,839 |
Total liabilities, mezzanine equity and shareholders’ equity | 676,089,833 | 97,114,228 | 335,138,771 |
ATA Creativity Global | |||
Condensed Financial Statements Captions [Line Items] | |||
Cash and cash equivalents | 77,996,136 | 11,203,444 | 15,396,381 |
Prepaid expenses and other current assets | 13,154 | 1,888 | 3,104 |
Subscription receivable | 8,530,931 | 1,225,392 | |
Loan receivable, net | 4,126,502 | 592,735 | 14,532,685 |
Investments in subsidiaries | 213,391,690 | 30,651,798 | 247,870,563 |
Total assets | 304,058,413 | 43,675,257 | 277,802,733 |
Accrued expenses and other payables | 3,918,340 | 562,834 | 1,985,894 |
Total liabilities | 3,918,340 | 562,834 | 1,985,894 |
Common shares | 4,692,312 | 674,008 | 3,534,871 |
Treasury shares | (27,737,073) | (3,984,181) | (27,737,073) |
Additional paid-in capital | 560,814,066 | 80,555,900 | 410,195,990 |
Accumulated other comprehensive loss | (37,478,167) | (5,383,402) | (38,288,364) |
Accumulated deficit | (200,151,065) | (28,749,902) | (71,888,585) |
Total shareholders’ equity attributable to ATA Creativity Global | 300,140,073 | 43,112,423 | 275,816,839 |
Total liabilities, mezzanine equity and shareholders’ equity | ¥ 304,058,413 | $ 43,675,257 | ¥ 277,802,733 |
ATA Creativity Global ("Paren_2
ATA Creativity Global ("Parent Company") - Condensed Statements of Comprehensive Income (Loss) (Details) | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Condensed Financial Statements Captions [Line Items] | |||||
Operating expenses | ¥ 60,087,962 | ¥ 154,216,247 | $ 22,151,778 | ¥ 68,672,509 | ¥ 74,104,081 |
Foreign currency exchange gains (losses), net | (221,605) | 51,476 | 7,394 | 960,188 | |
Loss from continuing operations before income taxes | (74,912,949) | (141,261,615) | (20,290,962) | (68,053,474) | (88,099,360) |
Income tax expense | 2,109,096 | 7,149,119 | 1,026,907 | ¥ 591,290 | |
Net income (loss) attributable to ATA Creativity Global | 29,633,544 | (122,253,989) | (17,560,687) | 854,925,914 | |
Comprehensive income (loss) attributable to ATA Creativity Global | 27,852,360 | (121,443,792) | (17,444,309) | 843,488,505 | |
ATA Creativity Global | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Operating expenses | 14,273,099 | 6,928,823 | 995,263 | 4,963,891 | |
Provision for loan receivable | 11,843,167 | 1,701,164 | |||
Investment income (loss) | 40,802,611 | (110,881,674) | (15,927,156) | 852,782,280 | |
Interest expense | 52,074 | 446 | |||
Interest income | 15,394 | 1,391,183 | 199,831 | 1,306,567 | |
Foreign currency exchange gains (losses), net | (607,927) | 1 | (284,138) | ||
Loss from continuing operations before income taxes | 25,884,905 | (128,262,480) | (18,423,752) | 848,840,372 | |
Net income (loss) attributable to ATA Creativity Global | 25,884,905 | (128,262,480) | (18,423,752) | 848,840,372 | |
Other comprehensive income (loss) | (1,781,184) | 810,197 | 116,378 | (11,437,409) | |
Comprehensive income (loss) attributable to ATA Creativity Global | ¥ 24,103,721 | ¥ (127,452,283) | $ (18,307,374) | ¥ 837,402,963 |
ATA Creativity Global ("Paren_3
ATA Creativity Global ("Parent Company") - Condensed Statements of Cash Flows (Details) | 2 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jul. 31, 2017CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | |
Condensed Financial Statements Captions [Line Items] | |||||
Net cash used in operating activities | ¥ 95,605,639 | ¥ (57,876,559) | $ (8,313,448) | ¥ (312,626,305) | |
Cash flows from investing activities : | |||||
Proceeds from disposal of discontinued operations | 4,894,197 | 703,007 | 1,223,119,391 | ||
Net cash provided by (used in) investing activities | (20,604,329) | (36,945,321) | (5,306,863) | 1,201,735,714 | |
Cash flows from financing activities : | |||||
Private placement | 61,693,192 | 8,861,673 | |||
Cash received for exercise of share options | 1,433,441 | ||||
Special cash dividend | ¥ (65,698,571) | (65,698,571) | (946,611,803) | ||
Net cash provided by (used in) financing activities | (70,148,709) | 57,566,469 | 8,268,906 | (949,893,989) | |
Effect of foreign exchange rate changes on cash | (1,210,072) | 866,827 | 124,512 | (4,720,020) | |
Net increase (decrease) in cash | 3,642,529 | (36,388,584) | (5,226,893) | (65,504,600) | |
ATA Creativity Global | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Net cash used in operating activities | (5,003,772) | (4,797,830) | (689,165) | (29,996,291) | |
Cash flows from investing activities : | |||||
Cash received from subsidiaries | 73,178,416 | 1,001,941,215 | |||
Loan lent to Beijing Biztour | (13,745,856) | ||||
Proceeds from disposal of discontinued operations | 4,894,197 | 703,007 | |||
Net cash provided by (used in) investing activities | 73,178,416 | 4,894,197 | 703,007 | 988,195,359 | |
Cash flows from financing activities : | |||||
Private placement | 61,693,192 | 8,861,673 | |||
Cash received for exercise of share options | 1,433,441 | ||||
Special cash dividend | (65,698,571) | (946,611,803) | |||
Net cash provided by (used in) financing activities | (65,698,571) | 61,693,192 | 8,861,673 | (945,178,362) | |
Effect of foreign exchange rate changes on cash | (1,173,526) | 810,196 | 116,377 | 568,046 | |
Net increase (decrease) in cash | 1,302,547 | 62,599,755 | 8,991,892 | 13,588,752 | |
Cash at beginning of period | 505,082 | 15,396,381 | 2,211,552 | 1,807,629 | |
Cash at end of period | ¥ 1,807,629 | ¥ 77,996,136 | $ 11,203,444 | ¥ 15,396,381 |