The proposed JV will be 49 per cent owned by Q&M Dental (Shenyang) and 51 per cent owned by Singapore Dental Cadcam Laboratory
[SINGAPORE] Two subsidiaries of Q&M Dental are looking to enter a joint venture (JV) to offer lab services, said Aoxin Q&M Dental on Friday (Sep 12).
The Catalist-listed group said that its wholly owned subsidiary, Q&M Dental (Shenyang), entered a memorandum of understanding (MOU) with Singapore Dental Cadcam Laboratory (SDCL) on Sep 11.
SDCL is a wholly owned subsidiary of Q&M Dental, the parent and controlling shareholder of Aoxin Q&M Dental. Q&M Dental held a 50.5 per cent stake in Aoxin Q&M Dental as at May 2025.
The MOU relates to the formation of a JV to provide laboratory services including processing of porcelain crown, bridges and dentures, and development of dental inlay technology, said Aoxin Q&M Dental.
Under the proposed JV, Q&M Dental (Shenyang) will own a 49 per cent stake and SDCL will hold 51 per cent.
The parties are discussing terms of the proposed JV and have agreed to enter a definitive agreement within a period of six months starting from Sep 11 or any other agreed date, said Aoxin Q&M Dental.
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The proposed JV will operate through Dental Excellence Digital Services Centre, which was incorporated on Aug 4, Aoxin Q&M Dental said.
The JV company will have an issued and paid-up share capital of S$100, comprising 100 ordinary shares.
Its incorporation is funded through internal resources and is not expected to have material impact on Aoxin Q&M Dental’s net tangible assets and earnings per share for the current financial year ending Dec 31, 2025, the company said.
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It also said that there is no certainty or assurance that the proposed JV will be completed.
The proposed JV is deemed to be an interested person transaction, Aoxin Q&M Dental said. This comes as several of its directors hold positions in other parties involved in or associated with the JV.
Dr Ng Chin Siau, a non-executive non-independent director of the company, is also a director at its unit Q&M Dental (Shenyang). He holds a 53.2 per cent deemed interest in Aoxin Q&M Dental’s total issued share capital and is the chief executive officer and a non-independent executive director at its parent, Q&M Dental.
His sister Ng Sook Hwa is a non-executive non-independent director of Aoxin Q&M Dental and chief financial officer of Q&M Dental. Meanwhile, Professor Chew Chong Yin is an independent non-executive director at both companies.
Dr Ng, his sister and Prof Chew will not be involved in any decision made by the board of Aoxin Q&M Dental in relation to the proposed JV.
Shares of Q&M Dental finished Friday 3.2 per cent or S$0.015 higher at S$0.49; shares of Aoxin Q&M ended Friday flat at S$0.063, before the news.
