CATALIST-LISTED Aoxin Q& M Dental Group said on Friday that it expects to register an operating loss for FY20 on the back of its close-to-two-month closure of businesses in China.

 

It said that gestation losses from newly opened dental hospitals and clinics, and the possibility of a second wave of infections are likely to weigh on the group' s financial performance. Meanwhile, it will continue to monitor its revenue, cash flow and the evolving situation of Covid-19. 

 

In addition, the implementation of additional safety measures against the virus will result in additional costs, and is likely to impact the group&rsquo s financial results for FY20. It also said that it has no plans to open new hospitals or clinics for the year. 

 

Aoxin Q& M was responding to shareholders' questions through a regulatory filing ahead of its annual general meeting to be held the coming Monday.   . 

 

In response to queries regarding its increased employee benefit expenses, Q& M said that it was due to the six new hospitals and polyclinics opened in FY19. 

 

On whether there are plans to lay off staff if business does not pick up, Q& M said: " Management is actively assessing the operational performance of each hospital and polyclinic on a regular basis, and will fine tune the resources accordingly."