Aidite's proposed delisting not part of restructuring, says Q&M

Q&M Dental Group said the proposed delisting of its associated company, Aidite (Qinhuangdao) Technology, from a Chinese stock exchange is not part of a restructuring exercise.

Aidite, which makes dental supplies, was spun off from Q&M Dental in 2016 and listed on China's National Equities Exchange and Quotations, or the New Third Board, that year.

Q&M Dental said yesterday in response to Singapore Exchange queries that Aidite had announced it was exploring "certain strategic business development opportunities" but did not provide details.

It added: "The (Q&M Dental) board is not in a position to disclose information not disclosed by Aidite in its own announcement."

Separately, part of Q&M Dental's acquisition of Aidite in 2014 included a profit guarantee clause stating that Q&M China will receive dividends of at least 159 million yuan (S$31.6 million) over 12 years.

This guarantee was discharged when Aidite was listed on the New Third Board.

Q&M Dental said yesterday in response to Singapore Exchange queries that Aidite had announced it was exploring "certain strategic business development opportunities" but did not provide details.

Q&M Dental noted at the time that this would allow Aidite to utilise new funds for its expansion, without being restrained by the profit guarantee.

It also added that Aidite had "significantly exceeded the guaranteed amount under the profit guarantee" for the financial years 2014 and 2015.

Nonetheless, Q&M Dental noted in its exchange filing yesterday that it is not proposing to reinstate this profit guarantee after Aidite's delisting, and that it is "satisfied with Aidite's recent performance and its business plans".

Q&M shares closed flat at 50.5 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on September 26, 2018, with the headline 'Aidite's proposed delisting not part of restructuring, says Q&M'. Print Edition | Subscribe