Raffles Education Expects to Receive Approximately RMB270.68 Million (S$50 Million) in Net Cash Proceeds from Compulsory Acquisition of Land by the PRC Government
- As announced on 30 January 2026, the Group received a notification from the relevant authorities to implement the reclamation of its land located on both sides of Li Siguang Road, Gu'an County, Langfang City, Hebei Province, the People’s Republic of China (“PRC”) with an area of approximately 499 mu (the “Land”) for urban planning needs of Langfang Development Zone.
- Designated for educational and scientific purpose, the Land was acquired by the Group in 2008 for approximately RMB 190 million, and has appreciated in value over the years.
- After taking into account the estimated corporate income taxes and professional costs, the net cash proceeds from the Compensation Agreement are estimated at RMB270.68 million.
- The net cash proceeds are expected to materially strengthen the Group’s net cash position and represent a meaningful portion of the Company’s market capitalisation of approximately S$206 million as at 17 August 2026.
Chairman and CEO of RafflesEducation, Mr. Chew Hua Seng（周华盛）said,
“This represents a pragmatic and value-accretive outcome for the Group, particularly against the backdrop of the challenging property market conditions in China.
We acquired the Land approximately 18 years ago and the value of the Land has appreciated over the long term, as reflected through our annual mark-to-market assessments.
While the book value of the Land is higher than the agreed sale price, it is important to recognise that even if sold at book value, the sale would have to take into consideration all the applicable taxes and transaction costs, as well as the availability of a credible buyer with the financial means, and ability to complete the transaction on acceptable terms.
Given the prevailing conditions in China’s property market, we view the agreed sale price of RMB293 million as a positive outcome for the Group, providing greater certainty over the timely receipt of cash proceeds and further strengthening our net cash position.”