Raffles Education Corporation has reported earnings of $1.5 million in the 3QFY2022 ended March, reversing from the loss of $2.7 million it posted in the corresponding period the year before.
In the 9MFY2022, however, the company posted a 69% y-o-y decline in earnings to $10.3 million.
Earnings per share (EPS) for the 3QFY2022 stood at 0.11 cents, up from the loss per share of 0.19 cents in the same period the year before.
9MFY2022 EPS stood at 0.74 cents, down from the 2.40 cents in the 9MFY2021.
3QFY2022 revenue increased by 7% y-o-y to $26.7 million mainly due to revenue from the company’s colleges in China and Asean. Of the four reportable segments within the company, only the education and education real estate investment & development posted y-o-y increases.
Other operating income plunged by 92% y-o-y to $83,000 due to the absence of accrued interest income arising from deferment of receivables in relation to the disposal of the company’s stake in Langfang Development Zone Oriental University City Sino-Singapore Education Investment Co., Ltd.
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According to Raffles Education, its management has been in negotiations with the buyer over this.
Share of results of joint ventures surged to around 25.7 times to $3.2 million, while share of results of associates fell into a loss of $174,000 from the $430,000 in the same period the year before.
In the 9MFY2022, revenue increased by 9% y-o-y to $79.9 million due to revenue from the colleges in China.
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Other operating income increased by 6% y-o-y to $38.5 million, mainly due to the gain on disposal of the property plant and equipment f $28.1 million arising from the compulsory land acquisition by Hefei City Authority for the land owned by Hefei Lanjing Science and Trade Co., Ltd. The higher other operating income was also from the net bargain purchase of additional equity interest of 35.9% in Langfang Hezhong Real Estate Development Co., Ltd, the interest income of $1.2 million and government grants received by its subsidiaries.
There was no fair value gain on investment properties compared to the $9.5 million posted in the 9MFY2021.
Share of results of joint ventures increased by 19% y-o-y to $3.3 million.
Share of results of associates fell by 25% y-o-y to $825,000.
As at end-March, cash and cash equivalents stood at $20.1 million.
No dividend was declared for the period.
Shares in Raffles Education closed 0.1 cent lower or 1.54% down at 6.4 cents on May 9.
