RAFFLES EDUCATION LIMITED 
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- Revenue of S$131.1 million
- Other operating income of S$126.6 million
- Net Loss of S$84.8 million
- EPS at (8.98) cents
- Net Asset Value per share of 58.56 cents
- Cash position of S$42.1 million
- Net gearing ratio of 0.35 times
Singapore, 24 August 2012 - Raffles Education Corporation
Limited ("RafflesEducationCorp" or "the Group"), the largest
private education provider in the Asia Pacific region, today
reported a revenue of S$131.1million and a net loss of S$84.8
million for the financial year ended 30 June 2012
("FY2012").
Revenue for FY2012 decreased from S$146.4 million in FY2011
to S$131.1 million due mainly to a decline in PRC revenues as
a result of lower enrolments and the reduced 50% contribution
from Zhongfa College following the disposal of 50% interest
in Value Vantage Pte Ltd. This was offset by an increase in
Asia Pacific (Ex- People's Republic of China "PRC") revenues
notwithstanding the suspension of the Group's operations in
Vietnam as disclosed in the Group's prior announcements.
The Group recorded other operating income of S$126.6 million
in FY2012 due mainly to gains on disposal of 50% equity
interests in Value Vantage Pte Ltd, gains on disposal of
available-for-sale financial assets in Langfang Development
Bank as well as a government grant receivable from Langfang
Development Zone Treasury
Authority to offset land restructuring costs in Oriental
University City ("OUC").
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FY2012 net loss was S$84.8 million from a net profit of
S$51.3 million reported in FY2011 due primarily to the
non-cash impairment of goodwill arising from certain past
acquisitions, a non-cash provision for the loss on disposal
of the land use rights of approximately 670 mu of land in OUC
resulting from the difference between the book value of the
Land and the consideration for the disposal (as announced on
20 April
2012 and 21 June 2012) and cash expenses incurred as a result
of the restructuring of its Vietnam operations. This is
notwithstanding that the disposal of the Land has not been
completed and is subject to, among others, the approval of
shareholders of RafflesEducationCorp during the Extraordinary
General Meeting to be convened on 31
August 2012.
Chew Hua Seng, Chairman and CEO of RafflesEducationCorp,
said, "From June 2011, the Group has been systematically
realising approximately RMB 1.511 billion in the value of its
non-core assets. The divestment of these non-core assets,
particularly in OUC, is in line with the Group's intention to
streamline its assets and realise returns on investments for
redeployment into our core education business and to
strengthen our balance sheet."
"We have seen encouraging results from our expansion strategy
in the Asia Pacific (Ex-PRC) region. These investments in the
region have diversified our portfolio, expanded our footprint
and will generate returns in the future," added Mr Chew.
The launch of Raffles University Iskandar ("RUI") and Raffles
American School ("RAS") in July 2012 demonstrate the Group's
focused efforts to grow its education business. RUI as a
full-fledged university, raises the profile of the Group. The
formation of RAS marks the Group's entry into the
international school business and
opens a new demographic market for the Group.
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Outlook and ProspectsThe Group will continue to build on its strong fundamentals including building depth at its existing colleges, expanding its network of institutions, developing its university group, value creation of OUC, education asset enhancement and strengthening its academic capability.
About Raffles Education Corporation LimitedRaffles Education Corporation Limited ("RafflesEducationCorp") is the largest private education group in Asia- Pacific. Since establishing its first college in Singapore in 1990, the Group has grown to operate 33 colleges in 30 cities across 13 countries in Asia Pacific: Australia, Bangladesh, Cambodia, China, India, Indonesia, Malaysia, Mongolia, New Zealand, Philippines, Singapore, Sri Lanka and Thailand.
More than 21,300 students enrolled in RafflesEducationCorp's tertiary programmes benefit from a quality education that provides graduates with a well-rounded hands-on experience relevant to the industry.
The Group also owns the Oriental University City in Langfang, Hebei Province, China - a 2.8 million square metre self-contained campus. Within this campus, Oriental University City provides education services to seven colleges with an additional student population of over 24,000.
Headquartered in Singapore, RafflesEducationCorp employs close to 2,300 academic and administrative staff, and is listed on the Mainboard of the Singapore Exchange. For more information on the Group, please visit the RafflesEducationCorp's website at www.raffles-education-corporation.com
CONTACT INFORMATIONMs Elaine Ang
Director, Investor Relations
Raffles Education Corporation Limited
Tel : 9125-5889
Email: elaineang@raffles-education-corporation.com
Ms Tan Poh Lay
Manager, Corporate Communications Raffles Education Corporation Limited Tel : 6336-2270 (Ext : 342)
Email : tanpohlay@raffles-education-corporation.com
24 August 2012
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