Audit reveals former Aoxin Q&M CEO obtained $2.7m through improper loans and share sales

He resigned in July after whistleblowing reports were lodged against him.

The audit committee of Aoxin Q&M Dental has found “reasonable evidence to suggest” that the company’s former chief executive officer Shao Yongxin has obtained $2.7m (RMB15m) for his personal use from employees and minority shareholders.

Four separate whistleblowing reports, two written and two verbal, were lodged against Shao.

Shao was accused of obtaining $359,527 (RMB2m) in or around 2017 by purporting to sell 2.8 million shares in the company that he claimed to own. He also allegedly obtained $2.34m (RMB13m) through personal loans from certain whistleblowers between 2017 and 2022.

In a bourse filing on 8 September, Aoxin Q&M said that the audit committee found the claims made in the whistleblowing reports credible and that whistleblowers provided copies of the signed share entrustment and loan agreements.

Shao also did not respond to the Audit Committee’s email queries seeking clarification of the allegations raised against him. Instead, Shao abruptly and unilaterally resigned as executive director and group CEO on 21 July 2025.

Legal counsels from Singapore and China are advising the company on the possible criminal liabilities of Shao.

The audit committee also hired a commercial investigator firm to conduct background checks on Shao’s other business interests and dealings. The investigation found no other adverse issues or evidence of financial distress, aside from a previously disclosed matter involving Aoxin Q&M Dental.

$1 = RMB5.56