Aoxin Q&M Dental CEO resigns after whistle-blower report is lodged
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Catalist-listed Aoxin Q&M Dental is the Chinese subsidiary of Singapore's Q&M Dental Group.
PHOTO: ST FILE
SINGAPORE – Catalist-listed Aoxin Q&M Dental announced the resignation of its executive director and chief executive Shao Yongxin in a bourse filing on July 22.
This comes after the company’s audit committee (AC) received a whistle-blower report against Dr Shao on July 21. The committee has launched an investigation into the matter, it said.
“The board, on the recommendation of the AC, will update shareholders as soon as (the) investigation is complete,” said Aoxin.
Aoxin cited “differences in views and opinions” with its parent, mainboard-listed Q&M Dental Group, regarding the strategic direction of the dental business as the reason for Dr Shao’s resignation.
Aoxin’s general manager, Dr Bai Yi, and deputy general manager, Mr Huang Zhen Xing will subsume the role and scope of the CEO.
Dr Shao has held his positions since 2017 and will now work together with his successors to hand over his duties.
The Chinese spin-off of Singapore’s Q&M Dental requested a trading halt on the morning of July 22, pending the release of an announcement.
Aoxin operates dental hospitals and polyclinics in four cities in Liaoning province in northern China. It also distributes dental equipment and supplies.
Q&M Dental had issued a letter of demand to Dr Shao in April for about 72.3 million yuan (S$12.9 million).
It had cited an October 2016 circular, where it said Dr Shao “had provided certain profit guarantees” in relation to an acquisition made by its subsidiary. This followed Shanghai Q&M Investment Management & Consulting’s acquisition of Shenyang Xinao Hospital Management from Dr Shao.
In May, Q&M Dental made a mandatory unconditional cash offer for all the shares in Aoxin Q&M it did not already own.
Shares of Aoxin Q&M Dental closed 8 per cent or 0.4 cent lower at 4.6 cents on July 21. The company called for a trading halt before the market opened on July 22 and requested its lifting late in the session, after announcing Dr Shao’s resignation. THE BUSINESS TIMES
