Aoxin Q & M Dental Group swung to a net profit of RMB6.9 million for the year ended 31 December 2025, reversing a RMB8.0 million loss a year earlier, helped largely by a sharp reduction in losses from its associate and tighter cost controls.
Revenue slipped 3.6% year-on-year to RMB171.0 million, reflecting softer demand in China’s private healthcare market. The company did not declare a dividend.
Segmentally, primary healthcare remained the largest contributor but fell 8.8% YoY to RMB103.0 million, as consumers curbed discretionary dental spending amid a subdued macro-economic backdrop. Distribution of dental equipment and supplies rose 6.0% to RMB44.1 million, buoyed by higher sales to government hospitals, while laboratory services inched up 4.6% to RMB23.9 million on stronger orders from Singapore.
Other income and gains jumped 66.2% to RMB5.9 million, supported by higher government incentives. At the bottom line, the share of associate losses narrowed to just RMB29,000 from RMB14.2 million, underpinning the turnaround.
Cash and cash equivalents rose to RMB148.7 million after the group completed a rights issue in 4Q 2025 that raised net proceeds of RMB82.8 million, lifting net assets to RMB349.3 million.
Looking ahead, management sees continued pricing pressure from China’s centralised procurement for dental implants and tighter regulatory oversight under the national medical-insurance framework. The board plans to deploy roughly RMB43.7 million of the rights-issue proceeds to pursue acquisitions of clinic chains outside its home base in Liaoning, aiming to diversify geographically and capture economies of scale. About RMB27.3 million has been earmarked for new property, plant and equipment, while the balance will serve as working capital.
Chairman Chua Ser Miang noted that the return to profitability was achieved “notwithstanding regulatory changes affecting the dental industry,” and attributed the result to efforts by staff and management to streamline operations. He added that the group will focus on cost controls, digital dentistry and AI-driven efficiency to cushion margin pressure, while expanding laboratory services in Southeast Asia.
The company said the overall operating environment is expected to remain challenging over the next 12 months but does not foresee any material adverse changes to current industry conditions.