Aoxin Universal Dental intends to acquire a dental medical devices group in Central China for 150 million RMB.

Source: Non-binding Memorandum of Understanding signed by Aoxin Quanmin Dental Group

DentalGoodNews｜Aoxin Q & M Dental Group Limited (hereinafter referred to as "Aoxin") signed a non-binding Memorandum of Understanding on March 25, 2026, and disclosed the matter in an announcement on March 27, 2026, proposing to acquire 100% equity of a dental and medical services group (hereinafter referred to as the "Target Group") in Central China for RMB 150 million.

The Target Group operates two business lines: approximately 30 dental clinics located in Central China, staffed by about 80 dentists, offering services including dental implants, Orthodontic treatment, restoration, and periodontics; it is also engaged in the technology research and development, as well as wholesale and retail, of Class I and Class II Medical Devices.

The total consideration for this acquisition is RMB 150 million (final amount to be confirmed after financial due diligence), with a mixed payment structure of 50% cash and 50% shares. The cash portion totals RMB 75 million, of which RMB 56.25 million will be paid upon completion of the transaction, RMB 7.5 million will be deposited into an escrow account (RMB 3 million released upon achieving profit targets in the first two years, and RMB 4.5 million released upon achieving the target in the third year), and the remaining RMB 11.25 million will be paid one year after completion, subject to meeting the first-year profit guarantee target. The share portion totals RMB 75 million, to be paid by issuing new shares: RMB 30 million will be subscribed at a price of SGD 0.30 per share, and the remaining RMB 45 million will be issued at a price referencing the volume-weighted average price over the seven trading days prior to completion. All consideration shares are subject to a 15-year Lock-up Period.

Source: Non-binding Memorandum of Understanding signed by Aoxin Quanmin Dental Group

Regarding the profit guarantee mechanism, the seller must ensure that the Target Group achieves a total Net Profit After Tax of RMB 71 million within five years after completion, with annual targets of RMB 12 million, RMB 13 million, RMB 14 million, RMB 15 million, and RMB 17 million, respectively.

This acquisition also involves existing non-compete commitments between Aoxin and its parent company, Q & M Dental Group (Singapore) Limited (hereinafter referred to as "Q & M Dental Group"). Since its listing on April 26, 2017, Aoxin has been subject to this commitment, restricting its business scope to Northern China. The proposed Target Group is located in Central China, which falls outside this scope. The parties are currently negotiating to remove or relax this commitment, with the outcome pending announcement. Additionally, in a March 2026 announcement, Q & M Dental Group stated its intention to position Aoxin as its dedicated China business platform to integrate existing and future acquisition resources in the country.

According to previous reports by DENTALGOODNEWS (Leading Dental Industry Media, DGN), on March 11, 2026, Q & M Dental Group announced a proposal to acquire 100% equity of an Australian dental group operating over 40 clinics for AUD 144.5 million (approximately RMB 708 million), with the transaction also at the Memorandum of Understanding stage.

This transaction will proceed only after the completion of formal agreement negotiations and the passing of legal, financial, and operational due diligence. As of the date of the announcement, the name of the Target Group has not been disclosed.