Aoxin Q&M announced on June 25, that it will no longer proceed with the “possible transaction” involving its stake with Panjin Aoxin Quanmin Stomatology Hospital.
This comes after subsequent discussions with the hospital following its first announcement dated Sept 30, 2020.
Panjin Hospital has, instead, entered into a five-year cooperation agreement with Panjin Oilfield Gem Flower Hospital on June 25.
Gem Flower Hospital is a private non-profit organisation established by Gem Flower (Liaoning) Medical and Health Management.
Gem Flower (Liaoning) is, in turn, jointly owned by Gem Flower Medical Health Investment Holding Group Co and Liaohe Petroleum Exploration Bureau. Both companies are affiliated to China National Petroleum Corporation.
Under the cooperation agreement, Panjin Hospital will offer advanced dental facilities and a high-quality support team.
Gem Flower Hospital will offer experienced dentists. It will also come with a pool of high-end patients from its oil field customers.
This, says Aoxin, will enable the group to achieve greater market share and accelerated patient growth.
The cooperation agreement is also in line with Aoxin’s business strategy of “actively seeking business opportunities” that will generate returns in the long run, provide a stable source of cash flow and mitigate the gestation loss of Panjin Hospital.
The agreement is not expected to have a material impact on Aoxin’s earnings per share (EPS) or net tangible assets (NTA) per share in the financial year ending Dec 31.
Shares in Aoxin Q&M closed flat at 16 cents on June 25.
Photo: Aoxin Q&M
