Singapore DSO eyes China expansion

According to the memorandum, the proposed transaction, which remains subject to due diligence and final agreements, involves a target company with around 30 clinics, 80 dentists and a medical technology business. The deal, valued at RMB 150 million (€19 million^*), would be funded through a mix of cash and new shares and would include a five-year profit guarantee from the seller.

Aoxin Q & M explained in the document: “The proposed acquisition is part of the steps taken by the group in achieving its long-term strategic objectives of expanding its footprint in the People’s Republic of China and deepening its business presence in the China region.” It added that the target company’s interests in Class I and II medical device development and distribution could provide operational and supply chain benefits.

As reported by Singaporean daily the Business Times, one important caveat to the proposed expansion is an existing non-compete arrangement between Q & M Dental Group and Aoxin Q & M that restricts the latter’s provision of dental services to the northern part of China. This restriction would need to be amended before the deal proceeds.

Q & M Dental Group’s 2025 earnings report outlined a growing business in Singapore, Malaysia and China. In Singapore, it owns 110 dental clinics and one dental college, as well as dental technology and dental equipment and supplies distribution companies. Its Malaysian business includes 37 dental clinics and one dental equipment and supplies distribution company. Its China business comprises seven dental polyclinics, seven dental hospitals and five dental training centres, as well as two dental equipment and supplies distribution companies and three dental laboratories. The company stated in the report: “In the People’s Republic of China, the group’s expansion efforts will be anchored by its subsidiary, Aoxin Q & M, leveraging its established operating platform, deep local expertise and regulatory familiarity.”

Aoxin Q & M’s proposed move reflects a Chinese dental market in which large, centrally managed clinic groups remain relatively limited, but are becoming more visible. Arrail Group, one of China’s larger private dental providers, operates 118 clinics and hospitals across 15 cities nationwide. A successful cross-regional acquisition by Aoxin Q & M would point to a further shift towards scale, consolidation and more sophisticated multi-site management in China’s private dental sector.

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