Concord Medical Reports First Quarter 2013 Financial Results BEIJING

Concord Medical Reports First Quarter 2013 Financial Results

BEIJING, May 21, 2013 /PRNewswire-Asia-FirstCall/ 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 and the parent of Chang an Hospital, today reported

its unaudited consolidated financial results for the first quarter ended March 31, 2013[1].

First Quarter 2013 Highlights

Dr. Jianyu Yang, Chairman and Chief Executive Officer of Concord Medical, stated, I am pleased with the financial results of first quarter of

2013, especially the strong revenue growth, healthy gross profit and Adjusted EBITDA compared with the first quarter of 2012. During the quarter, we benefited from the continuously increasing demand from the general population for high-quality and

affordable healthcare services. We saw a positive momentum in patient number growth in both our network and hospital businesses.

Since 2012, we have increased our investment in the telemedicine and web business units. In telemedicine, we are building a network based on data

transmission and storage technology that will enable doctors and physicists in our network to more easily communicate and consult with each other on cases. We are also setting up telemedicine centers in hospitals in remote areas so that the doctors

there can benefit from the knowledge and expertise of other doctors in the CCM network. We have also invested in web-based and mobile marketing business units that will helped our centers targeting new patients more effectively. We believe that

these new business units will bring incremental future revenues to the company. We plan to continue investing in these business units.

Based on our estimates of the business environment and progress so far in 2013, we are confident that

we will achieve the 2013 revenue targets of RMB930 million to RMB975 million issued in the first quarter.

we announced the signing of a $50 million loan package with International Finance Corporation ( IFC ). We will use the loan to expand our network of radiotherapy centers in China as well as to build the planned specialty hospitals in

Beijing and Guangzhou. These hospitals represent crucial components of our growth strategy to create a nationwide network of oncology centers and specialty hospitals, providing high-quality radiotherapy services to all of our patients in

We plan to start construction of our specialty cancer hospital in Guangzhou during the second half of 2013. Also, we have

made progress towards obtaining the necessary administrative approvals related to the Beijing hospital project, in cooperation with Sino-Japanese Friendship Hospital. Once both hospitals are open, they will provide high-end radiotherapy services,

based on international standard of quality assurance and planning.

IFC loan Agreement On May 15, 2013, the Company announced that it had signed a US$50 million loan package agreement with IFC, a member

of the World Bank Group focusing on private sector development in emerging markets.

Share repurchase program On October 9,

2012, the Company announced that its board of directors has approved the extension of its share repurchase program originally approved by the board of directors on September 30, 2011. During the first quarter of 2013, the Company repurchased

105,067 ADSs, representing 315,201 ordinary shares for a total $0.4 million, including commissions.

Through March 31, 2013, the Company

has repurchased 2,293,808 ADSs, representing 6,881,424 ordinary shares, in the open market, for a total consideration of $8,068,225 (including commissions) under the share repurchase program. As of March 31, 2013, the Company had

18.9 million ADSs outstanding, representing 56.7 million ordinary shares.

First quarter 2013 results by segment

The Company added one radiotherapy center in the first quarter of 2013, bringing the total number of centers in operation to 137 in 54 cities in China as of March 31, 2013. As of the same date, the

Company had entered into agreements to establish 11 additional centers.

Net revenues from the network business were RMB111.7 million ($18.0 million) for the

first quarter of 2013, representing an increase of 4.6% from the first quarter of 2012, primarily due to increase in number of patients in our existing centers as well as contribution from the new centers opened during 2012.

Gross profit margin of the network business was 55.4% for the first quarter of 2013, as compared with 58.4% for the first quarter of 2012. The lower

gross profit margin was primarily due to increased compensation and operating cost at our centers.

Capital expenditure of the network

business was RMB33.8 million ($5.4 million) for the first quarter of 2013, compared with RMB36.0 million in the first quarter of 2012.

Selling expenses in the network business were RMB16.5 million ($2.7 million) for the first quarter of 2013, representing an increase of 106% from the

first quarter of 2012. The increase was mainly due to selling expenses relating to our telemedicine and web business of RMB4.5 million ($0.7 million). The Company also incurred higher marketing and promotion expenses relating to newly opened

General and administrative expenses in the network business were RMB20.8 million ($3.4 million), representing an increase of 22.9%

from the first quarter of 2012. The increase was mainly due to general and administrative expenses relating to the telemedicine and web business of RMB2.1 million ($0.3 million).

Accounts receivable from the network business was RMB185.9 million ($29.9 million) as of March 31, 2013, as compared to RMB168.3 million as of December 31, 2012. The average period of sales

outstanding for accounts receivable, or Days Sales Outstanding (DSO) was 155 days for the first quarter of 2013, as compared to 153 days for the fourth quarter of 2012.

As of March 31, 2013, the Company, not including Chang an Hospital, had bank credit lines of RMB2,217 million ($357.1 million), of which RMB912.0 million ($146.8 million) was utilized.

During the first quarter of 2013, the Company handled 7,517 patient treatment cases and 71,084 patient diagnostic cases in the center

network, representing a 4.4% decrease and 59.6% increase from the first quarter of 2012, respectively.

Financial results of Chang an Hospital were consolidated into our results of operations since the third quarter of 2012 after

we consummated the acquisition of 52% equity interest in Chang an Hospital. Net revenues from the hospital business were RMB92.3 million ($14.9 million) for the first quarter of 2013, which consisted of:

Cost of service for the hospital business for the first quarter of 2013 was RMB82.6 million ($13.3 million), of which the medicine cost was RMB33.9

million ($5.5 million) and the medical service cost was RMB48.7 million ($7.8 million).

Gross profit margin of the hospital business was

10.5% for the first quarter of 2013.

Capital expenditure of the hospital business was RMB9.8 million ($1.6 million) for the first quarter of

General and administrative expenses in the hospital business were RMB4.6 million ($0.7 million).

As of March 31, 2013, Chang an Hospital had accounts receivable of RMB30.8 million ($5.0 million), representing days sales outstanding of 36

days, as compared to 34 days for the fourth quarter of 2012. The accounts receivable was mainly from medical revenues covered by various government-sponsored insurance programs. Chang an Hospital settles the balance with the local social

insurance bureau on a periodic basis.

Chang an Hospital received 117,773 outpatients and 7,530 inpatients for the first quarter of 2013.

The average bed utilization for the quarter was 89.2%. The average days of hospital stay was 10.0 days per patient for the quarter. Chang an Hospital operated 1,015 beds as of March 31, 2013.

Chang an Hospital is a leading private-owned, general service, for-profit hospital, located in Xi an, Shanxi Province. Established in 2002,

Chang an Hospital had 57 departments with over 1,250 medical and non-medical staff as of March 31, 2013.

Based on current market and operating conditions, estimated business expansion and forecasted Chang an Hospital financial

results, Concord Medical expects to generate total net revenues in an estimated range of RMB930 million to RMB975 million in 2013, which would represent a 40% to 47% increase from 2012. The revenues from network business and hospital business as

percentages to total revenues are expected to be approximately 55% and 45% in 2013, respectively. Finally, the Company is targeting to start construction of the specialty cancer oncology hospital in Guangzhou in 2013.

These estimates are based on current market and operating conditions, are subject to change, and may be

impacted positively or negatively by factors outside the Company s control, including but not limited to macroeconomic events in the markets in which the Company operates. See Safe Harbor Statement below for additional information

regarding forward-looking statements.

Conference Call Information

Concord Medical s management will hold an earnings conference call at 8:00 a.m. Eastern Daylight Time on May 22, 2013 (8:00 p.m. Beijing/Hong Kong time on May 22,

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

U.S. Toll Free: 1-866-519-4004

U.K. Toll Free: 08082346646

International: 65 67239381

400-620-8038 / 800-819-0121

Hong Kong Toll Free: 800-930-346

A replay of the conference call may be accessed by phone at the following numbers

U.S. Toll Free: 1-855-452-5696

International: +61 2 8199 0299

Conference ID: 71197242

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

About Concord Medical

Medical Services Holdings Limited operates the largest network of radiotherapy and diagnostic imaging centers in China, measured by revenues and the number of centers in operation and is the parent of Chang an Hospital. As of March 31,

2013, the Company operated a network of 137 centers with 77 hospital partners that spanned 54 cities and 24 provinces and administrative regions in China. Under long-term arrangements with top-tier hospitals in China, Concord Medical 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. 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

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. The Company believes excluding share-based compensation expense 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 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, share-based compensation expenses, and other adjustments. Other adjustments include foreign exchange losses and other expense income. Furthermore, Adjusted EBITDA eliminates the impact of items that the Company does