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The audit committee has ‘reasonable evidence’ that four whistleblower reports received by the board are credible
[SINGAPORE] The audit committee of Aoxim Q&M Dental has found “reasonable evidence” that the company’s former chief executive officer, Dr Shao Yongxin, obtained some 15 million yuan (S$2.7 million) for personal use from employees and minority shareholders.
The findings, which stem from an investigation into four separate whistleblowing reports, were released by Aoxim Q&M in a bourse filing on Monday (Sep 8).
Dr Shao was accused of obtaining two million yuan in or around 2017, by purporting to sell 2.8 million company shares that he had claimed to own. Additionally, he allegedly obtained another 13 million yuan through personal loans from certain whistleblowers between 2017 and 2022.
The audit committee found the claims made in the reports credible, after whistleblowers provided copies of the signed share entrustment and loan agreements. In contrast, Dr Shao did not respond to the committee’s e-mail queries and resigned abruptly on Jul 21, 2025, shortly after the board first learned of the allegations.
The committee’s legal counsel advised that the share sale is not enforceable against the company because the shares were already pledged as security to Q&M Dental Group, meaning Dr Shao lacked unencumbered ownership.
His conduct also likely breached the Companies Act and the Securities and Futures Act, for failing to disclose changes to his shareholding interests. The committee concluded that these actions, constituting a potential abuse of power over employees, rendered him not “fit and proper” as a director under the Singapore Exchange’s Catalist Rules.
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The company has also sought legal advice from its lawyers in China, on the potential legal liabilities there arising from Dr Shao’s purported share sale agreement.
The lawyers have advised that any liabilities will mainly relate to “the potential criminal and/or civil liabilities he may face (in China) due to his conduct of inducing the whistleblowers to buy the purported sale shares”.
To check for other potential issues, the audit committee hired a commercial investigator to run background checks on Dr Shao. The goal, the company said, was to see if he was in financial troubles or if there were other warning signs of improper conduct that might affect the company.
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The investigation found no other adverse issues or evidence of financial distress, aside from a previously disclosed matter involving Q&M Dental Group. The report noted his four current business interests are his roles within the company’s Chinese subsidiaries.
The company also clarified that it would have fired Dr Shao over his conduct, even if he had not resigned. It added that it will take action to recover the salary he owes for failing to serve his required six-month notice period.
Aoxin operates dental hospitals and polyclinics in four different cities in Liaoning province in Northern China. It also distributes dental equipment and supplies.
Shares of Aoxim Q&M closed flat at S$0.066 on Monday, before the bourse filing was released.
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