The board of directors of Aoxin Q&M Dental Group says minimal impact is expected on the operations and financials of the company as a result of the resignation of its executive director and chief executive Shao Yongxin.
The Catalist-listed company, which is a Chinese spin-off from mainboard listed Q&M Dental, filed responses to SGX’s queries in relation to the resignation on July 22.
Ex-CEO Shao announced his resignation from the company after a whistle-blower report against him was made by the company’s audit committee (AC) on July 21.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 Shao’s resignation.
As such, the SGX has raised several queries about the matter. This includes clarification on the differences in opinion and matter between Shao and the board of directors.
“The AC, upon receipt of the first whistle-blowing report and documents, commenced its preliminary investigations and initial fact gathering. Given that the whistle-blowing reports are received only a few days ago, internal investigations are still ongoing. The AC is currently in discussion with relevant professionals and official appointments are targeted to be made by next week,” reads Aoxin’s reply.
It also notes that as the healthcare industry in the People’s Republic of China is undergoing major transformation, differences arose between Shao and Q&M Dental in respect of the future direction of the group.
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SGX also asked for the board to clarify if this cessation will have an impact on the company’s operations and financials.
In response, the board notes that at this preliminary stage of investigations, it does not forsee any significant impact to the group as the whistle-blowing case relates to Shao’s past personal actions and is unrelated to the group’s operations. The AC targets to complete the investigation within three months.
Meanwhile, Aoxin’s board notes that they are currently sourcing for an appropriate candidate for the role of executive director of the group, while the business operations continue to be managed by general manager Bai Yi.
Shares in Q&M Dental closed 0.5 cents lower or 1.205% down at 41 cents on July 25.
