Concord Medical Reports Fourth Quarter and Full Year 2013 Financial Results BEIJING

Concord Medical Reports Fourth Quarter and Full Year 2013 Financial Results

BEIJING, March 31, 2014 /PRNewswire/ Concord Medical Services Holdings Limited ( Concord Medical or the Company ) (NYSE:

CCM), a leading hospital management company and operator of the largest network of radiotherapy and diagnostic imaging centers in China, today announced its unaudited consolidated financial results for the fourth quarter and full year ended

December 31, 2013[1].

Fourth Quarter Highlights

Full Year 2013 Highlights

In 2013, we have achieved steady growth in

our network business, which now covers 55 cities in China. The total revenue from the network business reached RMB 557.1 million, an increase of 17.4% compared to 2012. Said Dr. Jianyu Yang, Chairman and Chief Executive Officer

of Concord Medical. We are very glad to see that our network business is demonstrating accelerating growth, benefiting from the overall increase in healthcare spending in China as well as our internal measures to improve the overall

performance of our network business adapted since 2012.

Chang an Hospital is further strengthening its position as a leading general hospital

in northwestern region of China. The wider coverage of government medical insurance policy leads to steady patient traffic in Chang an Hospital.

During the past year, we have strengthened our cooperation and strategic partnership with many international leading medical institutions, including

MDACC, the famous cancer hospital in the US. We have established regular business and academic exchange and communication programs with MDACC. Concord Medical will leverage the international partnership to bring the most advanced medical

expertise and management experience to the Chinese market.

Our strategic goal is to transform CCM into a leading hospital group, with both premium

cancer hospitals in major cities and secondary cancer hospital and free-standing radiotherapy centers around the nation. In 2014, we will commence construction on our first premium cancer specialty hospital, the Guangzhou Concord Cancer

Hospital. We believe that based on our rich experience in the radiotherapy industry, devoted management team as well as the most favorable government policy regarding private investment in the healthcare sector, we will achieve our strategic

goals and provide international-standard cancer treatment to patients in China.

2013 Fourth Quarter Financial Results

Total net revenues were RMB282.6 million ($46.7 million)(a), a 32.7% increase from the fourth

Cost of revenue was RMB159.5 million ($26.4 million), as compared to RMB128.7 million for the fourth

quarter of 2012. The increase is mainly related to increased revenue during the quarter. Total Cost of revenue is composed of:

Gross profit was RMB123.1 million ($20.3 million), representing a 46.0% increase from the fourth quarter of 2012. The gross profit margin for the

fourth quarter of 2013 was 43.6%, compared to 39.6% for the fourth quarter of 2012. Gross profit for the fourth quarter of 2013 consisted of:

Operating expenses were RMB72.7 million ($12.0 million) for the fourth quarter of 2013.

Operating income was RMB50.5 million ($8.3 million) for the fourth quarter of 2013, compared to RMB57.4 million.

Income tax expense was RMB34.4 million ($5.7 million) for the fourth quarter of 2013, compared to RMB23.6 million. The effective tax rate for the

fourth quarter of 2013 was 71.9%, partially due to RMB14.6 million in withholding income tax expenses related to special dividend declared on January 7th.

Net income attributable to ordinary shareholders was RMB13.1 million ($2.2 million) for the fourth quarter of 2013, compared to RMB31.8 million ($5.1

million) in the fourth quarter of 2012. The net profit margin in the fourth quarter of 2013 was 4.6%, compared to 14.9% in the fourth quarter of 2012. The decrease was mainly due to higher operating expenses and income tax expenses during the fourth

Basic and diluted earnings per American depositary share ( ADS ) for the fourth quarter of 2013 were both RMB0.29

($0.05). Each ADS represents three ordinary shares.

Adjusted EBITDA(c) (non-GAAP) was

RMB106.2 million ($17.5 million) for the fourth quarter of 2013, representing a 2.5% decrease from the fourth quarter of 2012.

2013, the Company had RMB283.0 million ($46.8 million) in cash and RMB422.1 million ($69.7 million) in current portion of restricted cash.

Fourth quarter 2013 results by segment

net revenues consist of net revenues generated from the network business and hospital business.

The Company added two centers and closed two centers due to contract expiration in the fourth quarter of 2013, bringing the total number of centers in

operation to 144 in 55 cities in China as of December 31, 2013. As of the same date, the Company had entered into agreements to establish seven additional centers.

Net revenues from the network business were RMB168.7 million ($27.9 million) for the fourth quarter of 2013, which consisted primarily of (i) net

revenues from lease and management services of RMB151.9 million ($25.1 million), representing an 60.2% increase from the fourth quarter of 2012; (ii) net revenues from management services of RMB16.1 million, representing an 467.9% increase from

the fourth quarter of 2012; and (iii) net revenues from others services of RMB0.8 million, representing an 92.0% decrease from the fourth quarter of 2012.

Gross profit margin of the network business was 65.7% for the fourth quarter of 2013, as compared to 64.2% for the fourth quarter of 2012.

Capital expenditure of the network business was RMB23.1 million ($3.8 million) for the fourth quarter of 2013.

Accounts receivable from the network business was RMB266.0 million ($43.9 million) as of December 31, 2013, as compared to RMB168.3 million as of

December 31, 2012, mainly due to higher revenues during the fourth quarter of 2013. The average period of sales outstanding for accounts receivable (also known as Days Sales Outstanding) was 130 days for the fourth quarter of 2013, as compared

to 154 days for the third quarter of 2013, reflecting improved collection by the company during the quarter.

During the fourth quarter of 2013, the

Company handled 8,128 patient treatment cases, representing 23.3% decreases from the fourth quarter of 2012 mainly due to closed centers during the quarter, and 82,249 patient diagnostic cases, representing 16.6% increases from the fourth quarter of

the hospital business were RMB113.9 million ($18.8 million) for the fourth quarter of 2013. Total medical revenues were RMB62.2 million ($10.3 million), which consisted of:

Cost of service for the hospital business for the fourth quarter of 2013 was RMB101.7 million ($16.8 million).

Gross profit margin of the hospital business was 10.7% for the fourth quarter of 2013.

As of December 31, 2013, Chang an Hospital had accounts receivable of RMB41.6 million ($6.9 million), representing days sales outstanding of 32

days. 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.

The intangible assets of Chang an Hospital include prepaid land lease payment, healthcare qualification and oncology operation licenses. The

resulting amortization expense in the fourth quarter of RMB1.3 million ($0.2 million) was included in Chang an Hospital s cost of revenue and operating expenses.

Chang an Hospital treated 151,695 outpatients and 8,156 inpatients for the fourth quarter of 2013. The average bed utilization rate for the fourth

quarter of 2013 was 96.1%. The average days of hospital stay was 9.9 days per patient for the fourth quarter of 2013. Chang an Hospital operated 1,015 beds as of December 31, 2013.

Fiscal 2013 Full Year Results

revenues in 2013 were RMB974.6 million ($161.0 million), representing a 47.1% increase from RMB662.3 million in 2012, of which Network revenues were RMB557.1 million, Chang an Hospital s net revenues were RMB417.5 million.

Cost of revenues in 2013 was RMB587.0 million ($97.0 million), representing a 74.1% increase from RMB337.2 million in 2012.

Gross profit margin in 2013 was 39.8%, compared to 49.1% in 2012. This decrease reflected the consolidation of the financial results of Chang an

Hospital for the full year of 2013, which has a lower gross margin than the network business. The gross margin for the network business and hospital business was 59.8% and 13.1%, respectively.

Selling expenses in 2013 were RMB107.8 million ($17.8 million), representing a 100.0% increase from RMB53.9 million in 2012. Selling expenses as a

percentage of total net revenues increased to 11.1% in 2013 from 8.1% in 2012. The increase was primarily due to higher selling expenses related to promoting new centers by the company during 2013.

General and administrative expenses in 2013 were RMB105.1 million ($17.4 million), representing a 46.5% increase from RMB71.8 million in 2012. General

and administrative expenses as a percentage of total net revenues is 10.8% in 2013, compared to 10.8% in 2012.

Operating income in 2013 was

RMB174.7 million ($28.9 million), a 15.4% decrease from RMB206.6 million in 2012 mainly due to higher selling expenses in 2013. Operating income excluding share-based compensation expenses (non-GAAP) in 2013 was RMB185.0 million ($30.6

million), representing a 15.5% decrease from 2012.

Net income in 2013 was RMB93.7 million ($15.5 million). Both basic and diluted earnings per

ADS for 2013 amounted to RMB1.96 ($0.32).

Net income excluding share-based compensation expenses and bad debt provision (non-GAAP) in 2013 was

RMB104.0 million ($17.2 million). Both basic and diluted earnings per ADS excluding share-based compensation expenses and bad debt provision (non-GAAP) in 2013 were RMB2.19 ($0.36).

Adjusted EBITDA (non-GAAP) was RMB396.7 million ($65.5 million) in 2013, representing a 5.7% increase from RMB375.4 million in 2012.

Share-based compensation expenses, which were allocated to related operating expense items, were RMB8.8 million ($1.5 million) in 2013, compared to

RMB9.1 million in 2012.

Income tax expense in 2013 was RMB75.6 million ($12.5 million), compared to an income tax expense of RMB62.2 million in

2012. The effective tax rate for 2013 was 44.7% as compared to 31.6% in 2012.

As of December 31, 2013, the Company had total Property,

plant & equipment, net valued at RMB1,492.6 million ($246.6 million), cash and cash equivalents of RMB283.0 million ($46.8 million), and restricted cash of RMB422.1 million ($69.7 million).

Capital expenditures were RMB159.8 million ($26.4 million) in 2013, compared to RMB491.9 million in 2012.

As of December 31, 2013, the Company had bank credit lines totaling RMB2,513 million (US$415.1 million), of which RMB1,004 million ($165.8

million) were utilized.

Accounts receivable was RMB307.5 million ($50.8 million) as of December 31, 2013, compared to RMB210.3 million as of

December 31, 2012. Days sales outstanding (DSO) was approximately 97 days in 2013 down from 125 days in 2012. The improved DSO was mainly due to the strengthened efforts during 2013 to accelerate collection from hospital partners,

as well as the shorter DSO of Chang an Hospital.

As of December 31, 2013, the Company had 18.8 million ADSs outstanding, representing

56.4 million ordinary shares, The weighted average number of ordinary shares outstanding was 135,077,172.

For the whole year of 2014, the Company expects earnings in the range of $0.45 to $0.50 per ADS, or $20.3 million to $22.5 million in Net Income Attributable

to Ordinary Shareholders. This forecast reflects CCM s current and preliminary view, which is subject to change.

Finally, the Company is targeting

to start construction of one specialty oncology hospital in 2014.

Conference Call Information

Concord Medical s management will hold an earnings conference call at 8:00 a.m. Eastern Daylight Time on April 1, 2014 (8:00 p.m. Beijing/Hong Kong

time on April 1, 2014).

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

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

International: 65-67239381