RAFFLES EDUCATION LIMITED ANNUAL

Letter to Shareholders

LETTER TO SHAREHOLDERS 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 2019 (“FY2019”). FY 2019 has been another challenging year for the Company, with competition from alternative education providers, ever changing education policies and regulations in the various countries that we operate our colleges and schools and currency fluctuations. Nonetheless, the Company has remained focused on its core mission of inspiring learners to discover their potential, achieve their goals and prepare them for a dynamic world. On 26 April 2019, the Group has disposed of its entire stake in Langfang Development Zone Oriental University City Sino-Singapore Education Investment Co., Ltd. (“Langfang Development”) to realise cash return and strengthen the Group’s financial position. Performance Review The Group’s revenue increased from $96.8 million for FY 2018 to $97.9 million for FY2019. The Group recorded a net profit of about $41 million, as compared to a net profit of about $23 million in FY2018, resulting in earnings per share of $0.0292, up nearly 224% from FY2018. With careful management of our working capital needs, we generated operating cash flow surplus of about $16 million in FY2019. The Group remains committed to effectively managing operating costs and business risks to stay competitive. We believe that our experience and capabilities in the education and education related property management and development businesses will help us ride out any challenging times ahead. Appreciation and Acknowledgment I would like to thank our Board of Directors for their guidance and wise counsel in the last financial year. I would also like to take this opportunity to welcome Joseph He Jun, a senior partner in law firm, Wong Partnership, who joined the Board with effect from 5 November 2018 as a non-independent and non-executive director. I would also like to thank our management and staff for their dedication and contributions to the Company. Last but not least, I would like to extend our appreciation to our shareholders for their strong support and our students for entrusting us with their education. Mr Chew Hua Seng Chairman and Chief Executive Office