Concord Medical Reports Financial Results for the First Half of 2021 BEIJING

Concord Medical Reports Financial Results for

the First Half of 2021

BEIJING, December 10, 2021 /PRNewswire/ -- Concord

Medical Services Holdings Limited ("Concord Medical" or the "Company") (NYSE: CCM), a healthcare provider specializing

in cancer care, research, and prevention by operating a network of medically advanced comprehensive cancer hospitals and standalone radiotherapy

and diagnostic imaging centers in China, today announced its unaudited consolidated financial results for the six months ended June 30,

2021 First Half Highlights

Total net revenues were RMB192.9 million

($29.9 million) in the first half of 2021, representing a 132.4% increase from total net revenues of RMB83.0 million in the same period

last year. Total net revenues included the net revenues from the network business of RMB128.7 million ($20.0 million) and the net revenues

from the hospital business of RMB64.2 million ($9.9 million).

Gross profit was RMB2.4 million ($0.4

million) in the first half of 2021, compared to the gross loss of RMB3.5 million in the first half of 2020. The gross profit margin was

1.23% for the first half of 2021, compared to the gross loss margin of 4.2% for the same period last year.

Net loss attributable to ordinary shareholders

in the first half of 2021 was RMB90.3 million ($14.0 million), compared to RMB128.8 million in the same period last year.

Basic and diluted loss per share for

Class A and Class B ordinary shares[2] in the first half of 2021 were both RMB2.53 ($0.39), compared to RMB2.23, respectively,

in the same period last year.

Non-GAAP net loss in the first half

of 2021 was RMB163.0 million ($25.3 million), compared to non-GAAP net loss of RMB155.0 million in the same period last year. Non-GAAP

basic and diluted loss per share for Class A and Class B ordinary shares in the first half of 2021 were both RMB2.46 ($0.38), compared

to RMB2.15 in the same period last year.

Adjusted EBITDA[3] (non-GAAP)

was negative RMB127.7 million ($19.8 million) in the first half of 2021, compared to negative RMB113.1 million in the same period last

Dr. Jianyu Yang, Chairman and Chief Executive

Officer of Concord Medical, commented, "Our performance in the first half of 2021 is highlighted by very strong revenue growth across

regions and business sections. These results represent a remarkable recovery from the impact of the pandemic on our business, demonstrating

the resilience of our people, as well as their commitment to each other and our clients. We believe that the opening of our new hospital

will continuously shift our income structure from network business to hospital business with higher income potential."

"The Company's Guangzhou Concord Cancer

Center (the "Guangzhou Hospital") was officially opened in June 2021. We believe that this will expand the Company's

income from hospital business."

"The Company also officially opened an internet

hospital in May 2021. The internet hospital aims to provide a series of cancer care services, ranging from cancer prevention to post-treatment

recovery, on the Company's online platforms. We believe that the internet hospital will expand the influence of the Company's brand

among the prime target groups of patients."

"We have cultivated our Cloud System Solutions

business for our network business and recently-established internet hospital. Besides, the preparation of the proton therapy system at

the Guangzhou Hospital is nearly competed, which is expected to be the only proton therapy system in the Southern China in the next few

years. With the gradual operation of the proton center to the mature stage, we believe that the Company's revenue can be improved in the

2021 First Half Financial Results

Net revenues from the network business were RMB128.7

million ($20.0 million), representing a 241.4% increase from net revenues of RMB37.7 million in the first half of 2020, primarily attributable

to the Company's development of Cloud System Solutions of medical devices for its existing medical equipment and consumable sales

services. With three centers closed in the first half of 2021, the Company operated a network of 24 centers in 18 cities in China as of

Cost of revenues of the network business was RMB95.7

million ($14.8 million), representing a 555.5% increase from RMB14.6 million in the first half of 2020, primarily attributable to the

Company's business expansion on consumable sales services.

Gross profit from the network business was RMB33.0

million ($5.1 million), representing a 42.9% increase from RMB23.1 million in the first half of 2020. The gross profit margin of the network

business for the first half of 2021 was 25.6%, compared to the gross profit margin of 61.3% for the same period last year.

Selling expenses of the network business were

RMB8.3 million ($1.3 million), representing a 57.2% decrease from RMB19.4 million in the first half of 2020. Selling expenses as a percentage

of net revenues from the network business was 6.5% in the first half of 2021, compared to 51.5% in the first half of 2020. The decrease

in selling expenses of the network business was mainly due to the decrease in staff cost and advertisement and promotion expenses.

General and administrative expenses of the network

business were RMB72.3 million ($11.2 million), representing a 27.1% increase from RMB56.9 million in the first half of 2020. General and

administrative expenses as a percentage of net revenues from the network business were 56.2% in the first half of 2021, compared to 150.9%

in the same period last year.

Comparing to RMB3.9 million in the same period

last year, capital expenditures decreased to RMB103.8 million ($16.1 million) in the first half of 2021, primarily for procuring equipment

for network centers.

Accounts receivable were RMB73.7 million ($11.4

million) as of June 30, 2021, compared to RMB61.9 million as of December 31, 2020. The average period of sales outstanding for accounts

receivable (also known as "Days Sales Outstanding") was 219 days in the first half of 2021.

During the first half of 2021, the Company handled

4,230 patient treatment cases and 31,204 patient diagnostic cases, representing a 10.2% increase and a 22.9% decrease from the same period

last year, respectively. The decreases in diagnostic and overall cases were mainly due to the influence of the COVID-19 pandemic.

Net revenues from the hospital business were RMB64.2

million ($9.9 million) in the first half of 2021, representing a 41.7% increase from net revenues of RMB45.3 million in the first half

of 2020, mainly because the Company's operation of self-owned hospitals has gradually recovered from the adverse impact of the COVID-19 pandemic.

Cost of revenues of the hospital business in the

first half of 2021 was RMB94.9 million ($14.7 million), representing a 32.2% increase from cost of revenues of RMB71.8 million in the

first half of 2020, mainly because the labor cost increased for the preparation of the opening of Guangzhou Hospital, which has been in

operation since June 2021.

Gross loss from the hospital business was RMB30.7

million ($4.8 million) in the first half of 2021, compared to RMB26.5 million in the same period last year. The gross loss margin of the

hospital business for the first half of 2021 was 47.8%, compared to the gross loss margin of 58.5% for the same period last year.

Selling expenses of the hospital business were

RMB5.4 million ($0.8 million) in the first half of 2021, representing an 100.0% increase from selling expenses of RMB2.7 million in the

first half of 2020. Selling expenses as a percentage of net revenues from the hospital business was 8.3% in the first half of 2021, compared

to 6.0% in the first half of 2020.

General and administrative expenses of the hospital

business were RMB101.7 million ($15.7 million) in the first half of 2021, of which employee benefit expenses were RMB73.2 million ($11.3

million). In the same period of last year, general and administrative expenses of the hospital business were RMB77.5 million. The increase

was mainly due to the increase in salary and rental fees for hospitals. General and administrative expenses as a percentage of net revenues

from the hospital business was 158.5% in the first half of 2021, compared to 171.1% in the first half of 2020.

Comparing to RMB364.9 million in the first half

of 2020, capital expenditures of the hospital were RMB310.6 million ($48.1 million) in the first half of 2021. The decrease was mainly

related to the decrease in construction fees and medical equipment payment.

As of June 30, 2021, accounts receivable from

hospital business were RMB12.5 million ($1.9 million), representing an 19.4% decrease] from accounts receivable of RMB15.5 million as

of December 31, 2020. The number of Days Sales Outstanding was 76 days in the first half of 2021.

As of June 30, 2021, the Company had bank loans

and other borrowings totaling RMB2.2 billion ($338.8 million).

The Guangzhou Hospital commenced operation in

June 2021. The Guangzhou Hospital is situated in Sino-Singapore Guangzhou Knowledge City (the "Knowledge City"), Guangzhou's newest

modern development district. The Guangzhou Hospital provides high-quality diagnostic imaging and treatment services, such as radiology,

ultrasound and nuclear medicine, diagnosis and remote consultation, education and training, to all the medical institutions, premium clinics