I find it interesting that Q & M Dental Group (Singapore) Limited (QC7; QNM SP) recognised SGD 15 mn gain on bargain purchase from its acquisition of Aoxin Q & M Dental Group Limited (1D4; AOXIN SP).
Good catch. The S$15M gain on bargain purchase arises because Q&M acquired Aoxin at a price below its net asset value - the market had been discounting Aoxin heavily for its years of losses and legacy profit guarantee shortfalls, so the acquisition price came in below the fair value of the underlying assets. It's non-cash and non-recurring, which is why we stripped it out when looking at core dental earnings. But we should have flagged it explicitly rather than folding it into "consolidation one-offs." Appreciate you pointing that out.
The SEA Analyst,
I find it interesting that Q & M Dental Group (Singapore) Limited (QC7; QNM SP) recognised SGD 15 mn gain on bargain purchase from its acquisition of Aoxin Q & M Dental Group Limited (1D4; AOXIN SP).
Good catch. The S$15M gain on bargain purchase arises because Q&M acquired Aoxin at a price below its net asset value - the market had been discounting Aoxin heavily for its years of losses and legacy profit guarantee shortfalls, so the acquisition price came in below the fair value of the underlying assets. It's non-cash and non-recurring, which is why we stripped it out when looking at core dental earnings. But we should have flagged it explicitly rather than folding it into "consolidation one-offs." Appreciate you pointing that out.