AOXIN Q&M Dental Group Launches Strategic Joint Venture in Digital Dental Services — Potential Game Changer for Investors

Key Highlights

• Aoxin Q & M Dental Group Limited, via its wholly-owned subsidiary Q & M Dental (Shenyang) Pte. Ltd. (QMSY), has entered into a memorandum of understanding (MOU) with Singapore Dental Cadcam Laboratory Pte. Ltd. (SDCL), a subsidiary of its controlling shareholder Q & M Dental Group (Singapore) Limited.
• The MOU sets the stage for a joint venture aimed at providing advanced laboratory services including porcelain crown, bridge, denture processing, and the development of dental inlay technology.
• A new joint venture company, Dental Excellence Digital Services Centre Pte. Ltd. (“JVCo”), has already been incorporated in Singapore, with QMSY holding 49% and SDCL holding 51% of its share capital.
• The initial funding for JVCo is S\$100, sourced from internal resources, and the move is not expected to materially impact Aoxin’s net tangible assets or earnings per share for the current financial year ending 31 December 2025.
• The agreement is classified as an “interested person transaction” under Chapter 9 of the Catalist Rules, but falls under the exception of Rule 916(2).
• Key directors with potential conflicts of interest have abstained from decision-making, ensuring good governance and transparency.

Shareholder-Critical Information and Price Sensitivity

• Potential for Industry Upside: The venture into digital dental laboratory services positions Aoxin Q&M at the forefront of dental technology, which could drive future growth and margin expansion. Investors should monitor follow-up announcements for material developments, especially as digital dentistry and lab services are high-growth segments globally.
• Governance and Interested Person Transaction: The transaction involves related parties (subsidiaries and directors of Q&M Dental Group, the controlling shareholder), raising governance considerations. However, the Audit Committee has confirmed that risks and rewards are proportionate to each shareholder’s equity, and terms are not prejudicial to minority shareholders. This transparency may reassure investors about potential conflicts.
• Directors Abstaining from Vote: Dr. Ng Chin Siau (deemed interested in 53.15% of Aoxin’s shares), Professor Chew Chong Yin, and Ms. Ng Sook Hwa have all abstained from board decisions related to the JV, highlighting governance best practices.
• Uncertainty Remains: The JV is in its early stages with the shareholders’ agreement still under negotiation. There is no certainty the deal will be completed, so investors should remain cautious.
• Material Announcements to Follow: The company commits to making further disclosures as developments unfold, which could be price sensitive depending on the scale and execution of the JV’s operations.

Detailed Analysis and Strategic Implications

The announcement by Aoxin Q & M Dental Group Limited marks a significant strategic step into digital dental laboratory services, partnering with SDCL, a subsidiary of its controlling shareholder. The formation and incorporation of Dental Excellence Digital Services Centre Pte. Ltd. signal a concrete move towards providing advanced dental laboratory solutions, focusing on high-demand areas such as porcelain crowns, bridges, dentures, and dental inlay technology.

With QMSY and SDCL holding 49% and 51% of JVCo respectively, the structure ensures that both parties share risks and rewards proportionally. The initial capital investment is nominal (S\$100), suggesting that the JV is in its incubation stage, but it could scale rapidly depending on market acceptance and execution.

As this transaction involves key directors and related parties, it triggers Chapter 9 of the Catalist Rules. However, the exception under Rule 916(2) applies, as confirmed by the Audit Committee, reassuring minority shareholders about fair treatment and proportionality.

For investors, this move could be transformational—digital dental labs have the potential to unlock new revenue streams, operational efficiencies, and technological leadership. However, execution risk remains, as the JV’s operational and financial impact is yet to be seen. Any further developments, particularly regarding large-scale adoption or expansion, could be highly price sensitive.

Shareholders should exercise caution in trading and watch for follow-up announcements, as the JV may or may not reach full fruition. If successful, the strategic alliance could reposition Aoxin Q&M as a leader in the next wave of dental technology.

Contacts and Further Information

• For more details, contact Financial Controller Loo Keat Choon at Tel: 6235 1188, Email: [email protected]
• The announcement has been reviewed by the company’s sponsor, PrimePartners Corporate Finance Pte. Ltd., but not by the Singapore Exchange.

Disclaimer

This article is for informational purposes only and does not constitute financial advice or an offer to buy or sell securities. Investors should consult their stockbrokers, bank managers, solicitors, or other professional advisors before making any investment decisions. The information herein is based on company disclosures as of 12 September 2025 and may be subject to change. No assurance is provided regarding the completion or success of the joint venture.

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