Concord Medical Reports Financial Results for the First Half of 2016 BEIJING

Concord Medical Reports Financial Results

for the First Half of 2016

BEIJING, August 24, 2016 /PRNewswire/ --

Concord Medical Services Holdings Limited ("Concord Medical" or the "Company") (NYSE: CCM), a leading specialty

hospital management solution provider and operator of the largest network of radiotherapy and diagnostic imaging centers in China,

today announced its unaudited consolidated financial results for the six months ended June 30, 2016[1].

2016 First Half Highlights

Jianyu Yang, Chairman and Chief Executive Officer of Concord Medical, commented, "Due to the uncertainties in the regulatory

environment and closure of cooperative centers, our revenue and profit were still under pressure during the second quarter of 2016.

However, we are glad to see our initiatives in cutting the cost and administrative expenses of cooperative centers are paying off

and the net loss has apparently decreased in the second quarter compared to the first quarter of this year."

the second quarter, we have made great effort in improving the oncology services provided by our Concord Cancer Hospital in Singapore.

We kept upgrading the hospital under the guidance of MD Anderson Cancer Center, a linear accelerator is promised to be set up and

more initiatives in immunotherapy have been developed to help more patients from Southeast Asia and mainland China."

first cancer hospital under our Meizhongjiahe brand, Datong Meizhongjiahe Cancer Hospital, was opened preliminarily in May. Equipped

with MRI and advanced linear accelerator, the 100-bed high-end hospital will provide advanced imaging diagnosis and radiotherapy

to patients in Datong and nearby cities in Shanxi Province. Also, the pace of developing the Meizhongjiahe network of wholly-owned

specialty cancer hospitals and imaging diagnosis centers around China was accelerated. Our next step is to expand the Meizhongjiahe

network in second-tier and third-tier cities, where there is a strong patient demand for advanced cancer diagnosis and treatments

but there is a lack of resources and services. As part of the Company's comprehensive development strategy, the hospitals in Meizhongjiahe

brand will join our planned premium hospitals in Beijing, Shanghai and Guangzhou to expand the Company's domestic coverage."

2016 First Half Financial Results

Net revenues from the network business

were RMB246.7 million ($37.1 million), a 22.2% decrease from net revenues of RMB317.0 million in the first half of 2015, primarily

attributable to the closure of certain cooperative centers in our network of centers during the past year and changes to the revenue-sharing

split arrangements under the contracts between the Company and our public hospital partners. As of June 30, 2016, with two centers

closed in the second quarter, the Company operated a network of 123 cooperative centers in 52 cities in China and had entered into

agreements to establish one additional center.

Cost of revenue of the network business

was RMB137.9 million ($20.7 million), a 12.7% decrease from RMB157.8 million in the first half of 2015.

Gross profit from the network business

was RMB108.8 million ($16.4 million), representing a 31.7% decrease from RMB159.2 million in the first half of 2015. The gross

profit margin for the first half of 2016 was 44.1%, compared to 50.2% for the same period last year. The decrease was mainly due

to the closure of certain cooperative centers in our network of centers during the past year and the changes in the revenue-sharing

split according to the contracts signed between the Company and our public hospital partners, bringing more significant decrease

in net revenue compared to decrease in cost.

Selling expenses of the network business

were RMB41.1 million ($6.2 million), representing a 22.0% decrease from RMB52.7 million in the first half of 2015. Selling expenses

as a percentage of total net revenues was 16.7% in the first half of 2016, same as the first half of 2015. The decrease in selling

expenses of the network business was mainly due to reduced marketing, conference, office and travel expenses.

General and administrative expenses of

the network business were RMB52.7 million ($7.9 million), representing a 12.7% increase from RMB46.8 million in the first half

of 2015. General and administrative expenses as a percentage of total net revenues were 21.4% in the first half of 2016, compared

to 14.8% in the same period last year. The increases were mainly due to higher rental expenses, bank charges and professional fees

as compared to the same period last year, as well as expenses occurred in setting up new domestic subsidiaries.

Comparing to RMB65.8 million in the same

period last year, capital expenditures decreased to RMB30.9 million ($4.6 million) in the first half of 2016, of which RMB16.1

million was related to the development of new hospital projects in China.

Accounts receivable was RMB217.7 million

($32.8 million) as of June 30, 2016, compared to RMB215.8 million as of December 31, 2015. The average period of sales outstanding

for accounts receivable (also known as Days Sales Outstanding) was 160 days in the first half of 2016.

As of June 30, 2016, the Company had bank

credit lines totaling RMB3.5 billion ($524.6 million), of which RMB1.1 billion ($168.9 million) was utilized.

During the first half of 2016, the Company

handled 10,700 patient treatment cases and 141,408 patient diagnostic cases, representing a 19.4% decrease and a 10.4% decrease

from the same period last year, respectively, mainly due to the closure of certain cooperative centers during the past year.

Concord Cancer Hospital[4] is

a leading privately-owned, for-profit oncology hospital in Singapore. The Company acquired Concord Cancer Hospital, formerly known

as Fortis Surgical Hospital, in April 2015 and is now transforming it into a premium cancer hospital.

Net revenues from the hospital business

were RMB8.0 million ($1.2 million or S$1.6 million [5]) in the first half of 2016.

Cost of service of the hospital business

in the first half of 2016 was RMB15.2 million ($2.3 million or S$3.1 million).

Gross loss from the hospital business was

RMB7.2 million ($1.1 million or S$1.5 million) in the first half of 2016.

Selling expenses of the hospital business

were RMB0.3 million ($0.05 million or S$0.04 million) in the first half of 2016.

General and administrative expenses of

the hospital business were RMB22.8 million ($3.4 million or S$4.6 million) in the first half of 2016, of which employee benefit

expenses were RMB13.9 million ($2.1 million or S$2.8 million).

Capital expenditures of the hospital were

RMB5.9 million ($0.9 million or S$1.2 million) in the first half of 2016, which was mainly related to the newly added diagnostic

equipment in Concord Cancer Hospital.

As of June 30, 2016, Concord Cancer Hospital

had accounts receivable of RMB1.2 million ($0.2 million or S$0.2 million). The number of Days Sales Outstanding was 42 days.

Concord Cancer Hospital operated 31 beds

and had 77 medical and non-medical staff as of June 30, 2016.

Share Repurchase Program

On August 10, 2015, the Company announced

a share repurchase program, under which Concord Medical is authorized to repurchase up to $20.0 million of its outstanding ADSs

for cash in open market transactions or by other means as long as the price per ADS is no more than $7.99, depending on market

conditions and other factors. As of August 23, 2016, Concord Medical had repurchased 1,581,441 ADSs, representing 4,744,323 ordinary

shares, for an aggregate consideration of $7.7 million, including commissions. As of June 30, 2016, the Company had a total of

43.4 million outstanding ADSs.

"Going Private" Proposal Letter

The Company announced that its board of

directors (the "Board") has received a non-binding proposal letter, dated July 11, 2016, from Mr. Jianyu Yang, Chairman

and Chief Executive Officer of the Company, Morgancreek Investment Holdings Limited, an investment vehicle controlled by Mr. Yang

("Morgancreek"), and Blue Ocean Management Limited (together with Mr. Yang and Morgancreek, the "Buyer Parties"),

pursuant to which the Buyer Parties proposed to acquire all of the outstanding Class A ordinary shares and ADSs of the Company,

in both cases, that are not beneficially owned by the Buyer Parties and their affiliates, at a price of $1.73 per Class A ordinary

share or $5.19 per ADS, as the case may be, in cash, in a "going private" transaction, subject to certain conditions.

Consistent with its fiduciary duties, the Board, in consultation with its legal and financial advisors, will carefully review the

proposal from the Buyer Parties to determine the course of action that it believes is in the best interests of the Company's shareholders.

[1] This announcement contains translations

of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all

translations of RMB into U.S. dollars are made at a rate of RMB6.6459 to $1.00, the noon buying rate in New York City for cable

transfers payable in RMB, as certified for customs purposes by the Federal Reserve Bank of New York on June 30, 2016.

[2] Each ADS represents three Class A ordinary

shares of the Company.