Annual Report 2020
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Aoxin Q & M Dental Group Limited ANNUAL REPORT 2020 Steadfast and Resilient Contents 01 VISION | MISSION | CORE VALUES 02 AT A GLANCE 04 CORPORATE MILESTONES 06 MESSAGE TO SHAREHOLDERS 08 BOARD OF DIRECTORS 12 EXECUTIVE OFFICERS 13 GROUP STRUCTURE 14 FY2020 KEY FIGURES 15 FINANCIAL REVIEW 17 CORPORATE SOCIAL RESPONSIBILITY 18 CORPORATE INFORMATION 19 FINANCIAL CONTENTS Steadfast and Resilient Despite multiple disruptions throughout the year, Aoxin Q & M has remained steadfast and resilient, swiftly responding to the COVID-19 pandemic in order to mitigate its effects on the Group’s business, while steadily continuing to work towards the Group’s long-term goal of establishing itself as a reputable provider of quality dental services in the Liaoning Province This annual report has been reviewed by the Company’s Sponsor, SAC Capital Private Limited. This annual report has not been examined or approved by the Singapore Exchange Securities Trading Limited (the“SGX-ST” ) and the SGX-ST assumes no responsibility for the contents of this annual report, including the correctness of any of the statements or opinions made or reports contained in this annual report. The contact person for the Sponsor is Mr Ong Hwee Li (Tel: (65) 6232 3210) at 1 Robinson Road, #21-00 AIA Tower, Singapore 048542. AOXIN Q & M DENTAL GROUP LIMITED Annual Report 2020 Vision I Mission I Core Values Vision 愿景 Mission 使命 Becoming the leading dental medical Business growth, contribution to group in Northern China the society, and providing quality 成为中国北部领先的牙科医疗集团 healthcare 发展事业、造福社会、呵护健康 Core values 核心价值观 To be kind, dedicated, hardworking and ambitious 厚德、精业、勤诚、致远 AOXIN Q & M DENTAL GROUP LIMITED 1 Annual Report 2020 At A Glance ABOUT AOXIN Q & M Aoxin Q & M Dental Group Limited (“Aoxin Q & M”, and together Additionally, the Group is engaged in the provision of dental with its subsidiaries, the “Group”) is a leading provider of private laboratory services, as well as the distribution and sale of dental dental services in the Liaoning Province, Northern PRC. The Group equipment and supplies in the Liaoning, Heilongjiang and Jilin operates 16 dental centres, comprising 10 dental polyclinics and 6 Provinces in Northern PRC. dental hospitals, located across 8 cities in Liaoning Province, namely Shenyang, Huludao, Panjin, Gaizhou, Zhuanghe, Jinzhou, Dalian and Anshan. We currently have 400 dental professionals, including 170 dentists, 180 dental surgery assistants and 50 laboratory technicians. A majority of our dental centres are accredited as Designated Medical Institutions of Medical Insurance. 1 10 6 4 1 Dental Dental Dental Training Dental Distribution Polyclinics Hospitals Centres Laboratory & Supplies 沈阳市 (2) Shenyang (3) (1) (1) (1) (2) (1) (1) (1) (1) (1) 锦州 盘锦 鞍山 Jinzhou Panjin Anshan (1) 葫芦岛 (1) (2) Huludao (1) 盖州 Gaizhou 庄河 (1) Zhuanghe 大连市 (1) Dalian Note: Based on the general classification code by PRC’s Ministry of Health, dental polyclinics must have at least 4 dental chairs, and dental hospitals must have 20 or more dental chairs. AOXIN Q & M DENTAL GROUP LIMITED Annual Report 2020 2 COLLABORATION WITH JINZHOU MEDICAL UNIVERSITY As part of its commitment towards dental training and education, There are four dental centres within the Group that are accredited the Group collaborates with Jinzhou Medical University to provide by Jinzhou Medical University and designated as training centres to training to dental students and dental professionals. Aoxin Q & carry out practical training, namely: M is the only corporation in Northern PRC to be accredited by a university to provide training in dentistry. • Shenyang Aoxin Q & M Stomatology Hospital Co., Ltd • Panjin Aoxin Quanmin Stomatology Hospital Co., Ltd • Jinzhou Aoxin Youxin Dental Clinic Co., Ltd • Huludao Aoxin Q & M Stomatology Hospital Co., Ltd Stomatology and General Dentistry Endodontics Orthodontics Periodontics List of Prosthodontics Dental Services Dental Implantology Oral and Maxillofacial Surgery Aesthetic Dentistry Paedodontics AOXIN Q & M DENTAL GROUP LIMITED 3 Annual Report 2020 Corporate Milestones 1997 Dr Shao Yongxin, Executive Director and Group Chief Executive Officer, established Shenyang Aoxin 2009 Stomatology Polyclinic, Shenyang Hospital was our first dental polyclinic awarded the ISO 9001:2008 in Shenyang City Certificate of Approval (Quality Management Systems) certification 2014 Acquired 3 dental hospitals and 3 dental polyclinics in Shenyang City and Huludao City 2015 • Acquired 4 dental polyclinics in Panjin City and a dental hospital in Gaizhou City • Collaboration with Jinzhou Medical University to provide training and internship opportunities to its students 2005 • Diversified into the distribution of dental equipment and supplies through Shenyang Polyclinic was upgraded into our the acquisition of 60.0% of first dental hospital and renamed Shenyang Maotai Q & M Medical Shenyang Aoxin Stomatology Hospital Equipment Co., Ltd. (“SY Maotai”) (“Shenyang Hospital”) AOXIN Q & M DENTAL GROUP LIMITED Annual Report 2020 4 2019 • Acquired 3 dental polyclinics in Jinzhou City and Shenyang City • Opened 2 dental clinics in Huludao City and Anshan City, and a dental hospital in Dalian City 2017 • Listed on the Catalist Board of the Singapore Exchange Securities Trading Limited • Acquired a dental laboratory in Shenyang City • Acquired a dental polyclinic in Zhuanghe City 2018 2020 Official opening of a dental hospital in Became the first dental institution to Panjin City and a dental polyclinic in join the Shenyang Citizen Card’s list of Shenyang City service providers X X X AOXIN Q & M DENTAL GROUP LIMITED 5 Annual Report 2020 Message To Shareholders DEAR SHAREHOLDERS, and adopting industry-leading disinfection equipment such as a Neusoft Disinfection Safety Guard Robot. Additionally, all of the We are pleased to present our annual report for the financial year Group’s dental hospitals and polyclinics strictly complied with the ended 31 December 2020 (“FY2020”). Chinese Health Commission’s epidemic prevention and control requirements, and we continued to take all necessary measures During the year in review, we have had to contend with the to ensure employee and patient safety, including requiring all COVID-19 pandemic and its effects, which have ranged from employees to put on face masks at work, conducting temperature economic uncertainties, to disruptions to our operations. In some checks, implementing contact tracing of patients, and intensifying instances, some of our dental centres had to suspend operations the cleaning and disinfecting of common areas. We intend to more than once. continue these precautionary measures as we believe they are instrumental in ensuring the health and safety of our patients and By end of January 2020, all of our dental hospitals and dental staff. polyclinics were temporarily closed in accordance with directives from the Chinese government and local dental health authorities, In May 2020, we officially closed Shenyang Aoxin Jinfeng Dental till March 2020 when the Group was able to resume operations and Clinic Co., Ltd. in Huanggu District, Shenyang City, Liaoning Province commence dental treatments at all of our 6 dental hospitals and 10 (“Jinfeng”). In light of the uncertain global economic outlook dental polyclinics. brought on by the pandemic, we believe that the closure of Jinfeng would help the Group to minimise our overall gestation losses However, in July 2020, our Group had to temporarily suspend and conserve financial resources for working capital use, thereby operations at its dental centres in Dalian due to a fresh coronavirus allowing us to focus on strengthening the operations of our existing cluster detected in the city. In accordance with a directive from the dental centres. Health Commission of Dalian City in which non-emergency medical treatments, including dental services, were to be suspended. We Despite these disruptions, our Group had some positive highlights temporarily halted our Dalian operations, consisting of Dalian during the year. In September 2020, Aoxin Q & M became the first Aoxin Quanmin Stomatology Hospital Co., Ltd. and Zhuanghe City dental services provider in Shenyang to join the Shenyang Citizen Aoxin Dawei Dental Co., Ltd., from late-July to mid-August 2020. Card platform. The Shenyang Citizen Card is a centralised card which In December 2020, we had to suspend part of our operations can be used by residents of Shenyang City to access different services, in the cities of Shenyang and Dalian due to the re-emergence of such as banking and public transport. Through our participation, domestically transmitted asymptomatic COVID-19 cases. By end of card users will have access to all of our 3 dental polyclinics and February 2021, we were able to resume operations for all of our 2 dental hospitals in Shenyang City. As the first dental institution dental centres in Shenyang and Dalian after meeting the reopening on the list of providers, we believe we will have access to a wider criteria set by the Health Commission of Shenyang City and Dalian outreach of potential patients across the city, while differentiating City. ourselves as a reputable provider of quality dental services. Throughout the year, we were vigilant about implementing the Additionally, in November 2020, some students from our training necessary safety precautions throughout our operations, including collaboration with Jinzhou Medical University won first place in a during periods of temporary closure when our dental centres may dental medicine skills