Dental Corp's 2025 Annual Report: Revenue Up 9%, Net Profit Attributable to Shareholders of the Parent Company Down 35%

Image Source: Q&M Financial Statements and Related Announcement

Core Dental Business Net Profit Up 16.47% YoY / Consolidation of Aoxin Q&M Marks Entry into China / Issued S$130 Million Medium-Term Note

DentalGoodNews | Q&M Dental Group released its full-year results for the period ended December 31, 2025. During the reporting period, the Group achieved revenue of S$197.2 million (approximately RMB 1.066 billion), a year-on-year increase of 9.16%. Net Profit Attributable to Shareholders of the Parent Company was S$9.312 million (approximately RMB 50.3599 million), a decrease of 34.71% compared to S$14.264 million (approximately RMB 77.1406 million) in the previous year.

On a half-yearly basis, the Group's revenue for the second half of 2025 was S$108.8 million (approximately RMB 588 million), a year-on-year increase of 19.02%. Net Profit Attributable to Shareholders of the Parent Company was S$5.456 million (approximately RMB 29.5064 million), an increase of 18.30% year-on-year. Excluding one-off gains/losses, interest on the medium-term note, and share-based compensation expenses, the full-year Net Profit Attributable to Shareholders of the Parent Company would be approximately S$17.01 million (approximately RMB 91.9912 million), remaining largely flat compared to the previous year (+0.70%).

The Group disclosed that the net profit from its core dental business reached S$30.426 million (approximately RMB 165 million), a year-on-year increase of 16.47%. The decline in overall profit was primarily attributed to two one-off factors: firstly, a deemed disposal loss of S$4.156 million (approximately RMB 22.4759 million) arising from the consolidation of Aoxin Q&M Dental from an associate to a subsidiary; secondly, interest expense of S$2.449 million (approximately RMB 13.2444 million) from the S$130 million (approximately RMB 703 million) medium-term note issued in July 2025 with a 3.95% interest rate. Excluding these non-recurring items, core operating profit remained largely stable year-on-year.

Furthermore, the Group's total employee benefits expense for the full year was S$115 million (approximately RMB 622 million), an increase of 8.57% year-on-year, accounting for 58.29% of revenue, a decrease of 0.31 percentage points compared to the same period last year.

Image Source: Q&M Financial Statements and Related Announcement

During the reporting period, the Group's core dental business revenue was S$195 million (approximately RMB 1.055 billion), a year-on-year increase of 12.21%, accounting for 98.87% of total revenue. The growth was mainly driven by two factors: increased revenue contribution from dental clinics in Singapore, and new revenue from China following the consolidation of Aoxin Q&M in May 2025.

The Group's cost of sales was S$24.933 million (approximately RMB 135 million), an increase of 35.71% year-on-year, accounting for 12.79% of core dental revenue, up from 10.57% in the previous year, primarily due to changes in the cost structure following the consolidation of Aoxin Q&M. In contrast, revenue from other businesses was S$2.224 million (approximately RMB 12.0275 million), a decrease of 67.71% year-on-year, mainly due to the cessation of the medical laboratory business in September 2024 after its clinical laboratory service license expired.

Image Source: Q&M Financial Statements and Related Announcement

Geographically, the Group's revenue sources for 2025 were: Singapore S$167 million (approximately RMB 903 million), a decrease of 0.44% year-on-year; Malaysia S$12.712 million (approximately RMB 68.7473 million), a decrease of 4.81% year-on-year; and China S$17.924 million (approximately RMB 96.9342 million), representing a new contribution.

The Group stated that the China revenue stems from the consolidation of Aoxin Q&M Dental. In April 2025, pursuant to the profit guarantee agreement with Dr. Shao Yongxin, the Group acquired approximately 87.97 million shares in Aoxin Q&M, increasing its shareholding from 33.33% to 50.53%. Subsequently, a mandatory unconditional cash offer was completed in June, resulting in a final shareholding of 52.65%, and Aoxin Q&M officially became a subsidiary of the Group. Consequently, the Group added 7 multi-disciplinary dental clinics, 7 dental hospitals, 5 training centers, 2 distribution companies, and 3 dental laboratories in Liaoning Province, China.

Furthermore, due to a self-inspection requirement by China's National Healthcare Security Administration, two hospitals under Aoxin Q&M were found to have overclaimed approximately RMB 6.2 million for medical insurance material costs in 2024. This matter was retrospectively restated in the 2025 financial statements, resulting in an adjustment reducing the Group's previously recognized share of profits from the associate by S$373,000 (approximately RMB 2.0172 million).

Image Source: Q&M Financial Statements and Related Announcement

In July 2025, the Group issued a S$130 million (approximately RMB 703 million) medium-term note with a coupon rate of 3.95%. The proceeds were used to repay bank loans and for general working capital purposes. As of the end of 2025, the Group's bank borrowings decreased to S$12.723 million (approximately RMB 68.8068 million) from S$73.209 million (approximately RMB 396 million) at the end of the previous year. However, including the medium-term note, total financial liabilities increased to S$143.4 million (approximately RMB 776 million) from S$73.743 million (approximately RMB 399 million). Cash and cash equivalents increased to S$117.1 million (approximately RMB 633 million) from S$34.342 million (approximately RMB 186 million). Net interest-bearing debt decreased to S$26.343 million (approximately RMB 142 million) from S$39.401 million (approximately RMB 213 million).

The Group's cash flow from operating activities in 2025 was S$36.697 million (approximately RMB 198 million), a decrease of 8.48% compared to S$40.098 million (approximately RMB 217 million) in the previous year, mainly affected by a decrease in trade payables and an increase in other non-financial assets. Total assets increased by 42.45% to S$352.4 million (approximately RMB 1.906 billion) from S$247.4 million (approximately RMB 1.338 billion). Goodwill increased to S$75.151 million (approximately RMB 406 million) from S$52.357 million, with the increment mainly arising from the consolidation of Aoxin Q&M and the business acquisitions of Citizen Dental Surgery and Bedok Dental Surgery.

As of the end of 2025, the Group operates 110 dental clinics (net increase of 4), 5 medical clinics, 1 dental college (Q&M College), 1 dental AI technology company, and 1 dental equipment and Consumables distribution company in Singapore. In Malaysia, it operates 37 dental clinics (a decrease of 1) and 1 distribution company.

Additionally, the Group's AI company, EM2AI Pte. Ltd., became a wholly-owned subsidiary again in April 2025. It has now obtained medical device licenses in Thailand, the Philippines, Vietnam, and Indonesia, and is expanding into the Southeast Asian market.

In the previous fiscal year, the Group stated it "plans to enter the Chinese market," which was formally realized this year through the consolidation of Aoxin Q&M. For the full year, the Group declared a dividend of 1.1 Singapore cents per share, totaling S$10.426 million (approximately RMB 56.3845 million) in dividends paid, an increase of 18.42% year-on-year.