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Singapore - Aoxin Q&M Dental, listed on Catalist, announced the resignation of its executive director and chief executive Shao Yongxin, in a bourse filing on July 22.

This decision came after the company's audit committee (AC) received a whistle-blower report against Dr Shao on July 21. The committee has initiated an investigation into the matter, the company stated. "Aoxin will update shareholders as soon as the investigation is complete, based on the AC's recommendation," the company said

Aoxin mentioned "differences in views and opinions " with its parent, company, Q&M Dental Group, listed on the mainboard, as the reeson for Dr.Shao's resignation regarding the strategic direction of the dental business. Dr.Bai Yi, Aoxin's general manager, and Mr Huang Zen Xing, deputy general manager,  will assume the role and responsibilities of the CEO.

Dr Shao has held his positions since 2017 and will now work  with his successors to transition his duties.

The Chinese  oofshoot Singapore's Q&M Dental requested a trading halt on the morning of July 22, pending an announcement release

Aoxin operates dental hospitals and polyclinics in four cities in Liaoning province in northern China, as well as distributing dental equipment and supplies.

In April, Q&M Dental issued a letter of demand to Dr Shao for approximately 72.3 million yuan (S$12.9 million).

This demand was based on an October 2016 circular, where  Dr Shao "had provided certain profit guarantees"  in connection with an acquisition made by its subsidiary. This followed Shanghai Q&M Investment Management & Consulting's acquisition of Shenyang Xinao Hospital Management from Dr Shao.

In May, Q&M Dental made a mandatory unconditional cash offer for all the shares in Aoxin Q&M that it did not already own.

Shares of Aoxin Q&M Dental closed 8 percent or 0.4 cents lower, at 4.6 cents on July 21. The company called for a trading halt before the market opened on July 22 and requested its lifting late in the session, following the announcement of Dr Shao's resignation.