Concord Medical Reports Financial Results for the Second Quarter of 2015 BEIJING

Concord Medical Reports Financial Results for the Second Quarter of 2015

BEIJING, August 17, 2015 /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 interim consolidated financial results for the second quarter

of 2015[1]. The financial results of Fortis Surgical Hospital were consolidated in this quarter. Please note that for the second quarter of 2014, the financial contribution from Chang an

Hospital is reflected as the Net income from discontinued operations.

Second Quarter 2015 Highlights

Dr. Jianyu Yang, Chairman and Chief Executive Officer of Concord Medical, commented, During the second quarter of 2015, we have

achieved several important strategic goals. First, the revenue from the network business increased 3.4% to RMB166.3 million compared to the same period last year. We expect ongoing strong operating cash flow from our network business to support the

expansion of our planned hospital projects. Second, we have successfully integrated Fortis Surgical Hospital in Singapore into our operations. Their financial results were consolidated into our financial results the second quarter.

Thirdly, we have strengthened our strategic partnership with MD Anderson Cancer Center (MDACC) by acquiring additional ownership in the MDACC Proton Therapy

Center (MDACC PTCH) in August 2015. Concord Medical has become the controlling shareholder of the management company of MDACC PTCH. We aim to assist MDACC and MCACC PTCH to expand their business and market reach in China, the fastest growing

healthcare market in the world. Concord Medical plans to build and operate multiple proton centers in China. This transaction will help Concord Medical to consolidate its leadership position in the radiotherapy industry and to build an exchange

platform for academics and doctors in both China and the U.S.

Additionally, in order to take advantage of the current capital market enthusiasm for

healthcare companies and in an effort to fully unleash the value in our business, the Company has decided to seek listing of its wholly owned subsidiary Beijing Concord Hospital Management Co., Ltd on the National Equities Exchange and Quotations

( NEEQ ) in China, also known as the New Third Board in China. The goal is to maximize returns to the current shareholders. Beijing Concord Hospital Management Co. Ltd focuses on providing management services to the Company s existing

network centers and the secondary hospitals projects in the future.

2015 Second Quarter Financial Results by Segment

The Company closed three

radiotherapy centers in the second quarter of 2015. As of June 30, 2015, the Company operated a network of 129 centers in 53 cities in China and had entered into agreements to establish two additional centers.

Net revenue from the network business increased by 3.4% to RMB166.3 million ($26.8 million) in the second quarter of 2015 from net revenue from the

network business of RMB160.8 million in the second quarter of 2014. The increase in net revenue from the network business was primarily attributable to improvement in product mix, especially increased contribution from PET-CT and Cyber Knife centers

Cost of revenue of the network business was RMB81.5 million ($13.1 million) in the second quarter of 2015, compared to RMB67.2

million in the second quarter of 2014. The increase in cost of revenue was mainly due to the increased medical consumable expenses and maintenance expenses for the network.

Gross profit from the network business was RMB84.8 million ($13.7 million) in the second quarter of 2015, compared to RMB93.6 million in the second

quarter of 2014. The gross profit margin of the network business for the second quarter of 2015 was 51.0%, compared to 58.2% for the second quarter of 2014. The decrease in gross profit was mainly due to higher cost of revenue attributable to the

increased medical consumable expenses and maintenance expenses for the network.

Selling expenses of the network business were RMB26.8

million ($4.3 million) in the second quarter of 2015, compared to RMB20.6 million in the second quarter of 2014. Selling expenses as a percentage of total net revenue increased to 16.1% in the second quarter of 2015 from 12.8% in the second quarter

of 2014. The increase in selling expenses was mainly due to increased conference, advertising and travel expenses.

General and administrative expenses

of the network business were RMB25.4 million ($4.1 million) in the second quarter of 2015, compared to RMB20.5 million in the second quarter of 2014. General and administrative expenses as a percentage of total net revenue was 15.3% in the

second quarter of 2015, compared to 12.8% in the second quarter of 2014. The increase general and administrative expenses were mainly due to higher travel, rental and office expenses incurred in the quarter.

Capital expenditures of the network business were RMB26.9 million ($4.3 million) in the second quarter of 2015, compared with RMB2.5 million in the

second quarter of 2014.

Accounts receivable from the network business increased to RMB285.8 million ($46.1 million) as of June 30,

2015 from RMB265.0 million as of December 31, 2014. The average period of sales outstanding for accounts receivable (also known as Days Sales Outstanding) was 167 days in the second quarter of 2015.

As of June 30, 2015, the Company, excluding Fortis Surgical Hospital which was acquired in April 2015, had bank credit lines totaling RMB3.2

billion (US$513.6 million), of which RMB1.1 billion ($175.4 million) were utilized.

During the second quarter of 2015, the Company handled 6,584 patient

treatment cases and 84,136 patient diagnostic cases, representing 4.9% decrease and 2.5% decrease from the second quarter of 2014, respectively, mainly due to the closure of 3 centers during the quarter.

Fortis Surgical Hospital is a leading private-owned for-profit surgical hospital in Singapore. The Company closed the acquisition of Fortis Surgical Hospital

in April 2015 and is now transforming it into a cancer specialty hospital.

Net revenues from the hospital business were RMB8.2 million ($1.3

million or S$1.8 million [4]) for the second quarter of 2015 which were comprised of:

Cost of service of the hospital business for the second quarter of 2015 was RMB13.8 million ($2.2 million or S$3.0 million).

Selling expenses of the hospital business were RMB0.05 million ($0.01 million or S$0.01 million) for the second quarter of 2015.

General and administrative expenses of the hospital business were RMB7.3 million ($1.2 million or S$1.6 million) for the second quarter of 2015, of

which the employee benefit expenses were RMB5.3 million ($0.9 million or S$1.2 million).

There were no capital expenditures for the hospital

business for the second quarter of 2015.

As of June 30, 2015, Fortis Surgical Hospital had accounts receivable of RMB2.8 million ($0.5 million or

S$0.7 million). The number of day sales outstanding was 40 days. The accounts receivable balance was mainly related to outstanding balances to be collected from patients.

Fortis Surgical Hospital operated 31 beds and had 80 medical and non-medical staff as of June 30, 2015.

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 million of its outstanding American depositary shares ( ADSs ) from time to time for cash in

open market transactions or by other means as long as the price per ADS is no more than $8.00, depending on market conditions and other factors.

Additional Ownership Interest in MD Anderson Cancer Center Proton Therapy Center- On August 12, 2015, the Company

closed the acquisition of additional ownership interest of The University of Texas MD Anderson Cancer Center ( MD Anderson ) Proton Therapy Center ( MD Anderson Proton Therapy Center ) from an existing owner of the general

partner. After the closing, Concord Medical is now the controlling shareholder of PTC-Houston Management, LP (PTCHM), the general partner of the center, and will consolidate its financial results beginning in the third quarter of 2015.

Conference Call Information

Concord Medical s management will hold an earnings conference call at 8:00 a.m. Eastern Time on August 18, 2015 (8:00 p.m. Beijing/Hong Kong time on

Dial-in details for the earnings conference call are as follows:

A replay of the conference call may be accessed by phone at the following numbers for 7 days:

Additionally, a live and archived webcast of this conference call will be available at http://ir.concordmedical.com/.

About Concord Medical

Services Holdings Limited is a leading specialty hospital management solution provider and operator of the largest network of radiotherapy and diagnostic imaging centers in China. As of June 30, 2015, the Company operated a network of 129

centers with 76 hospital partners that spanned 53 cities and 25 provinces and administrative regions in China. Under long-term arrangements with top-tier hospitals in China, the Company provides radiotherapy and diagnostic imaging equipment and

manages the daily operations of these centers, which are located on the premises of its hospital partners. The Company also provides ongoing training to doctors and other medical professionals in its network of centers to ensure a high level of

clinical care for patients. As part of its high-end cancer hospital development strategy and oversea business extension, the Company acquired Fortis Surgical Hospital, a private hospital in Singapore in April, 2015. For more information, please see

http://ir.concordmedical.com.

Safe Harbor Statement

This news release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended,

and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as anticipate, believe, estimate, expect,

forecast, intend, may, plan, project, predict, should and will and similar expressions. These forward looking statements are based upon management s

current views and expectations with respect to future events and are not a guarantee of future performance. Furthermore, these statements are by their nature, subject to a number of risks and uncertainties that could cause actual performance and

results to differ materially from those discussed in the forward-looking statements as a result of a number of factors. Such factors include: the number of new radiotherapy and diagnostic imaging centers opened; the increase in the number of

patients in existing centers; the establishment of specialty cancer hospitals; changes in the healthcare industry in China, including changes in the healthcare policies and regulations of the PRC government; technological or therapeutic changes

affecting the field of cancer treatment and diagnostic imaging; and possible effects on consumers and hospitals, hospital construction, and suppliers, as a result of inflation and the Chinese government s policies and actions to control

inflation. Further information regarding these and other risks is included in the Company s filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. The Company does not assume any obligation to

update any forward-looking statement, except as required by law.

About Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles ( GAAP ),

Concord Medical uses certain non-GAAP measures. The Company presents certain of its financial information that is adjusted from results based on GAAP to exclude the impact of share-based compensation expense and changes in fair value of derivatives.

The Company believes excluding share-based compensation expense and changes in fair value of derivatives from its GAAP financial measures is useful for its management and investors to assess and analyze the Company s core operating results, as

such expense is not directly attributable to the underlying performance of the Company s business operations and do not impact its current cash earnings. Concord Medical also believes these non-GAAP measures excluding share-based compensation

expense and changes in fair value of derivatives are important in helping investors to understand the Company s current financial performance and future prospects and to compare business trends among different reporting periods on a consistent

basis. In addition, Concord Medical also presents the non-GAAP measure of Adjusted EBITDA, which is defined in this announcement as net income plus interest, taxes, depreciation and amortization, and share-based compensation expenses and other

adjustments. Other adjustments include foreign exchange gain (loss), loss from disposal of property, plant and equipment, gain from disposal and acquisition of subsidiaries and other income or expense. Furthermore, Adjusted EBITDA eliminates the

impact of items that the Company does not consider to be indicative of the performance of the network business and hospital business. The Company believes investors will similarly use Adjusted EBITDA as one of the key metrics to evaluate its

financial performance and to compare its current operating results with corresponding historical periods and with other companies in the healthcare services industry. The presentation of these additional measures should not be considered a

substitute for or superior to GAAP results or as being comparable to results reported or forecasted by other companies. The non-GAAP measures have been reconciled to GAAP measures in the attached financial information.

For more information, please contact:

Mr. Adam J. Sun (Chinese and English)

Ms. Fang Liu (Chinese and English)

+86 10 5903 6688 (ext.