CEO's Message

 

Dear Shareholders,

 

On behalf of the Board of Directors (the “Board”), I am pleased to present the Annual Report and Audited Accounts of Raffles Education Corporation Limited (the “Company”, and together with its subsidiaries, the “Group”) for the financial year ended 30 June 2020 (“FY2020”).

 

Uncertainties around the evolution of the COVID-19 pandemic will continue to persist, and the business environment is expected to remain extremely challenging.

 

The restricted border movements in the locations of all the colleges we operate in, which rely on foreign student intake, is impacting our recruitment and retention of foreign students.

 

That being said, the People’s Republic of China (“PRC”) remains the key bright spot in our business. Owing to tensions between China and the West – even before the coronavirus pandemic – middle-class parents in China had become increasingly concerned about the safety of, and possible discrimination against, their children abroad and would prefer their children to study in domestic universities, which translates into a positive impact on the education sector in the PRC.

 

We are taking actions to seize the tremendous opportunities in the PRC and will make sure our business remains strong throughout this period. We are cautiously confident that we will emerge from this crisis in a position to deliver our longterm growth strategy.

 

I believe long-term thinking has never been more critical than it is today. And I believe companies and investors with a strong sense of purpose and a long-term approach will be better able to navigate this crisis and its aftermath.

 

Operational Highlights

 

The Group’s revenue increased by $2.6 million to $100.5 million for FY2020 compared to $97.9 million in the previous financial year, FY2019. The increase was partially due to the ASEAN revenue increased by $4.3 million to $38.8 million in FY2020 from $34.5 million in FY2019.

 

We will continue to take efforts to make timely adjustments to our strategies, improve internal operational efficiency, adopt measures to reduce costs and manage our cash flows to ensure the sustainability of our businesses during the COVID-19 crisis and beyond.

 

Appreciation

 

To conclude, I would like to thank the Board of Directors and all staff members for their unwavering dedication, their consummate professionalism, and their invaluable contributions to the Group throughout an incredibly challenging period.

 

Please stay healthy and safe.

 

 

Mr Chew Hua Seng

Chairman and CEO

 

CEO’s Message was extracted from Annual Report 2020 publication. Information is correct at the point of print.