Raffles Education Faces Potential Government Acquisition of Key Land Asset in China

Raffles Education Limited (“the Company”), a Singapore-incorporated education group, has disclosed a major potential development concerning a significant landholding in the People’s Republic of China. The Board of Directors announced that its subsidiary, Langfang Hezhong Education Consulting Co., Ltd. (“Hezhong”), has received a formal notice from the Langfang Economic and Technological Development Zone Natural Resources and Planning Bureau (“Langfang Planning Bureau”) regarding a possible government acquisition of land owned by the Group.

Key Points of the Announcement

• The Langfang Planning Bureau has issued a notice to Hezhong, invoking Article 58(1) of the Land Administration Law of the People’s Republic of China, stating the government’s intention to re-possess land for urban planning and development purposes.
• The land in question comprises approximately 499 mu (about 332,666 square meters), located on both sides of Li Siguang Road, Gu’an County, Langfang City, Hebei Province.
• The notice, referred to as the “Proposed Government Acquisition”, does not specify terms, compensation, or other material details at this stage.
• Hezhong responded on 27 January 2026 confirming its commitment to cooperate fully in accordance with Chinese laws and regulations, and to engage further with the Langfang Planning Bureau regarding specific details.

Financial Implications and Price-Sensitive Information

• As of the last audited financial statements for the financial year ended 30 June 2025, the book value of the Land was reported at RMB 639,225,229 (approximately SGD 113,783,369).
• The size and value of this landholding represent a significant asset on the Group’s balance sheet, and any forced acquisition by the government could have a material impact on the Company’s financial position and future operations.
• At present, no further details have been received from the authorities. The Company is unable to assess or disclose the financial impact until additional information is provided.

Shareholder Guidance and Risks

• This announcement is potentially price sensitive as it involves a major asset and could influence the Company’s valuation, cash position, and future prospects.
• Shareholders and potential investors are strongly advised to exercise caution when trading in the Company’s shares until further updates are provided.
• The Board has committed to keeping shareholders informed and will make further announcements as more details become available.
• Shareholders are encouraged to consult their stockbrokers, solicitors, or other professional advisors if they have any concerns or require guidance on actions to take.

Conclusion

The potential government acquisition of Raffles Education’s large landholding in Hebei Province is a significant corporate development. While the final terms, compensation, and impact on the Group remain uncertain, the situation is evolving and may materially affect the Company’s financial status and share price. Investors should monitor future announcements closely for updates on negotiations, compensation, and the strategic implications for Raffles Education Limited.

Disclaimer: This article is prepared for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with qualified professionals before making investment decisions. The situation remains fluid, and new information may materially change the outlook or impact described herein.

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