SCHEDULE: Apollo Wise Investment Takes 9.9% Stake in ATA Creativity Global

Apollo Wise Investment Limited, controlled by Jie Cheng, has acquired a 9.9% beneficial ownership stake in ATA Creativity Global for medium to long-term investment.

Summary

• Apollo Wise Investment Limited, a British Virgin Islands entity, has acquired 8,559,434 common shares of ATA Creativity Global.
• This acquisition represents 9.9% of the total class of common shares, with a par value of $0.01 per share.
• Jie Cheng, a citizen of Hong Kong, is the sole beneficial owner of Apollo Wise Investment Limited.
• The shares were acquired through a registered direct offering where ATA Creativity Global sold 11,067,547 ADSs at $0.8 per ADS (equivalent to $0.4 per common share).
• The total amount of funds used for the acquisition was USD 3,423,774, sourced from banks.
• The stated purpose of the transaction is for investment in the medium to long term, subject to market conditions, volatility, and liquidity requirements.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, as a significant new investor taking a nearly 10% stake for the medium to long term suggests confidence in the company's value and prospects.

Positives

• A significant 9.9% stake acquisition by Apollo Wise Investment Limited indicates confidence in ATA Creativity Global's future prospects.
• The investment is intended for the medium to long term, suggesting a stable, strategic interest rather than short-term speculation.

Risks

• The investment's success is subject to market situations post-transaction, including market volatility and liquidity requirements.

Future Outlook

Apollo Wise Investment Limited intends to hold its stake in ATA Creativity Global for investment in the medium to long term, with future decisions dependent on market conditions, volatility, and liquidity needs.

Management Comments

• Jie Cheng serves as a Director for Apollo Wise Investment Limited and is the sole beneficial owner of the entity.

Industry Context

StockSavvy.ai notes that a significant stake acquisition by an investment holding company like Apollo Wise Investment Limited can signal a belief in the long-term value proposition of ATA Creativity Global within the education technology sector. Such an investment, particularly from an entity controlled by an individual, often reflects a strategic alignment or confidence in the company's direction, potentially differentiating it from purely passive institutional investments.

Stakeholder Impact

• Shareholders: The entry of a new significant investor holding 9.9% of the common shares could be viewed positively, potentially signaling increased investor confidence and stability.

Key Dates

Keywords

ATA Creativity Global, Apollo Wise Investment, Jie Cheng, Schedule 13D, Beneficial Ownership, Common Shares, Registered Direct Offering, Investment Holding, Education Technology