Raffles Education Limited posted net profit of S$3.11 million for the six months ended Dec 31 2025, down 58 per cent year-on-year, as markedly lower foreign-exchange gains offset stable operating performance.

Basic earnings per share slipped to 0.24 Singapore cents from 0.56 cents a year earlier. The board did not declare an interim dividend; a special cash-and-scrip payout of S$0.004 per share approved at the 23 January 2026 EGM will be announced separately.

Revenue was broadly flat at S$56.63 million (1H FY25: S$56.55 million). By segment, education services remained the core contributor, generating S$51.91 million, up 0.6 per cent YoY. Education facilities rental income was marginally softer at S$4.05 million, while education real-estate investment and development revenue eased to S$0.67 million.

Segment profit before tax showed a mixed picture: • Education: S$20.77 million (+10% YoY) • Education Facilities Rental Service: S$0.46 million (vs loss of S$0.00 million) • Education Real Estate Investment & Development: loss widened to S$2.48 million • Corporate & Others: loss deepened to S$14.61 million

Group finance costs fell 11 per cent to S$7.83 million on lower average borrowing rates and bank-debt repayments, but the decline was outweighed by a 59 per cent drop in foreign-exchange gains to S$13.27 million. Personnel expenses edged up 2 per cent, while other operating expenses declined 5 per cent, reflecting lower disposal losses and tighter cost controls.

Cash from operations improved to S$22.53 million (1H FY25: S$17.02 million). Net gearing moderated to 29 per cent, aided by S$5.2 million in debt repayments and a S$3.0 million issue of non-convertible bonds. Cash and cash equivalents rose to S$35.11 million from S$32.06 million a year earlier.

Headwinds persist from currency volatility—particularly Singapore dollar weakness against the renminbi—and heightened competition in key education markets. Management also cited uncertain macroeconomic and geopolitical conditions as potential constraints on international student recruitment.

To shore up liquidity and streamline its portfolio, the group is: • Converting S$11.75 million of outstanding bonds and a RMB 21.2 million shareholder loan into equity, following EGM approval in January 2026. • Proceeding with the S$10 million issue of 10.5 per cent unsecured bonds, of which S$4 million has been subscribed. • Targeting completion of the S$76 million divestment of Hefei Yuren Education Management and the sale of its Singapore property at 51 Merchant Road by end-February 2026. • Continuing operational restructuring to enhance cost efficiency across its regional education network.

Raffles Education said these initiatives, along with recurring deferred income of S$41.8 million from prepaid course and rental fees, are expected to support its going-concern position over the next 12 months despite a current-liability overhang.