Concord Medical Reports Third Quarter 2011 Financial Results BEIJING

Concord Medical Reports Third Quarter 2011 Financial Results

BEIJING, Nov. 14, 2011

Concord Medical Services Holdings Limited ( Concord Medical or the Company ) (NYSE: CCM), the operator of the largest network of radiotherapy and diagnostic imaging centers in China, today reported its unaudited

consolidated financial results for the third quarter ended September 30, 2011.

Third Quarter 2011 Highlights

Dr. Jianyu Yang, Director, President, and Chief Executive Officer of Concord Medical, said, We

delivered a strong quarter of solid financial growth, in both revenues and net income, as a result of higher patient volumes at existing centers and centers we have added since September 30, 2010.

We have established 9 new centers in the first three quarters of this year and we expect to add more centers in the fourth quarter.

Our long-term strategy is to develop new radiotherapy and diagnostic imaging centers with hospital partners, to increase utilization and efficiency

at existing centers, to establish new specialty hospitals and stand-alone centers, and to pursue prudent strategic acquisitions. We believe our long-term strategy has been working well and should continue to add value for our shareholders.

Given our good results for the first nine months, we are maintaining our revenue outlook for 2011.

Acting CFO Appointment On September 1, 2011, Mr. Adam Jigang Sun was appointed as Acting Chief Financial

Officer. Mr. Adam Sun oversees the Company s finance and reporting functions, as well as assists in managing the Company s network expansion and strategic acquisitions.

Mr. Adam Sun has more than 10 years of experience in finance and management. He received a M.B.A. degree from The University of Chicago Booth School of Business in 1998 and a Bachelor

of Arts degree in English from China Foreign Affairs College in 1990.

Mr. Steve Sun, who had been our Chief Financial Officer, continues

to serve as Co-chairman of the Board of Directors (the Board ) and is focusing on leading the Company s network expansion and strategic acquisitions, in addition to other duties as a member of the Board. Mr. Adam

Sun and Mr. Steve Sun are not related.

Special dividend On September 30, the Company paid a special dividend of $0.18 per ADS to

shareholders of record at the close of business on August 31, 2011.

Share repurchase program On September 30, the

Board approved a share repurchase program of up to $20 million of the Company s outstanding ADSs. Through November 11, 2011, Concord Medical has repurchased 140,623 ADSs, representing 421,869 ordinary shares, in the open market.

Pending acquisition The acquisition of the Chang an Hospital is still pending the conclusion of the due diligence and the

required government approval. Concord Medical will endeavor to complete the acquisition by the end of 2011.

Third Quarter 2011 Results

Net revenues were RMB124.7 million ($19.6 million) (A) in the third quarter 2011, up 23.4% from the third quarter 2010, primarily due to an increase in patient cases at

existing centers and centers we have added since September 30, 2010.

Cost of revenues was RMB41.8 million ($6.6 million) in the third

quarter 2011, up 22.4% from the third quarter 2010, primarily due to higher consumables and equipment maintenance charges in support of higher revenues.

Gross profit margin was 66.5% in the third quarter of 2011 compared with 66.2% in the third quarter 2010. The higher gross profit margin was primarily due to higher net revenues, which more than offset

the increase in consumables and equipment maintenance charges as a result of effective cost control.

Operating expenses, consisting of

general and administrative expenses and selling expenses, were RMB25.0 million ($3.9 million) in the third quarter 2011, up 44.8% from RMB17.3 million in the third quarter 2010. The increase was primarily due to increases in office and travel

expenses related to new centers opened during the year and in selling expenses in support of higher revenues.

Operating income was RMB57.9 million ($9.1 million) in the third quarter of 2011, up 16.7% from RMB49.6

million in the third quarter 2010.

Operating income excluding share-based compensation expenses (non-GAAP) (B) was RMB60.2 million ($9.4 million) in the third quarter 2011, up

15.3% from RMB52.2 million in the third quarter 2010.

Income tax expense was RMB16.6 million ($2.6 million) in the third quarter 2011, up

34.5% from RMB12.4 million in the third quarter 2010. The effective tax rate for the third quarter 2011 was 30.3% compared with 27.0% for the third quarter 2010.

Net income was RMB38.3 million ($6.0 million) in the third quarter of 2011, up 14.7% from RMB33.4 million in the third quarter 2010.

Basic and diluted earnings per ADS for the third quarter of 2011 were RMB0.81 ($0.13), up 17.7% from RMB0.69 ($0.10) for the third quarter 2010.

Non-GAAP net income (B) was RMB40.6 million ($6.4 million) in the third quarter 2011, up 12.9% from RMB36.0 million in the third quarter

Non-GAAP basic and diluted earnings per ADS were RMB0.86 ($0.13) in the third quarter of 2011, up 15.8% from RMB0.74 ($0.11) in the

third quarter of 2010.

Adjusted EBITDA (non-GAAP) (C) was RMB93.0 million ($14.6 million) for the third quarter 2011, up 14.4% from RMB81.3 million for the third quarter

In the third quarter 2011, capital expenditures were RMB95.4 million ($14.8 million), depreciation expense was RMB26.2 million ($4.1

million), and amortization of acquired intangibles was RMB6.3 million ($1.0 million).

As of September 30, 2011, the Company had total fixed assets of RMB978.7 million ($153.5 million), cash

of RMB388.1 million ($60.8 million), and current and noncurrent restricted cash of RMB24.7 million ($3.9 million).

Accounts receivable was

RMB242.8 million ($38.1 million) as of September 30, 2011, compared with RMB169.4 million as of December 31, 2010. The average period of sales outstanding for accounts receivable (also known as days sales outstanding) was 170 days in the

third quarter 2011, up from 149 days in the second quarter of 2011 primarily due to higher accounts receivable balances with several parties.

As of September 30, 2011, the Company had bank credit lines of RMB2.1 billion ($323.8 million), of which RMB85.4 million ($13.4 million) were drawn

The Company believes that its existing cash and available bank borrowing capacity are sufficient to finance its capital investments in

new facilities and working capital needs over the next 12 months.

First Nine Months of 2011 Results

Net revenues were RMB336.0 million ($52.7 million) (A) in the first nine months 2011, up 21.4% from the first nine months 2010, primarily due to an increase in patient

cases at existing centers and the centers we have added since last year.

Cost of revenues was RMB114.6 million ($18.0 million) in the first

nine months 2011, up 25.5% from the first nine months 2010, primarily due to higher consumables and equipment maintenance charges in support of higher revenues.

Gross profit margin was 65.9% in the first nine months 2011 compared with 67.0% in the first nine months 2010. The lower gross profit margin was primarily due to the higher consumables and equipment

maintenance charges as compared to the increase in net revenues.

Operating expenses, consisting of general and administrative expenses and

selling expenses, were RMB73.5 million ($11.5 million) in the first nine months 2011, up 28.9% from RMB57.1 million in the first nine months 2010. The increase was primarily due to increases in office and travel expenses and higher selling expenses

in support of higher revenues.

Operating income was RMB147.8 million ($23.2 million) in the first nine months 2011, up 15.3% from RMB128.2

million in the first nine months 2010.

Income tax expense was RMB39.5 million ($6.2 million) in the first nine months 2011, up 17.2% from

RMB33.7 million in the first nine months 2010, mainly due to the higher pretax income. The effective tax rate for the first nine months 2011 was 28.6% compared with 27.9% in the first nine months 2010.

Net income was RMB98.7 million ($15.5 million) in the first nine months 2011, up 13.1% from RMB87.2 million in the first nine months 2010.

Basic and diluted earnings per ADS for the first nine months 2011 were RMB2.08 ($0.33), up 16.2% from basic and diluted earnings per ADS of RMB1.79 in

the first nine months 2010.

Adjusted EBITDA (non-GAAP)(C) was RMB243.9 million ($38.2) million for the first nine months 2011, up 12.8% from

RMB216.3 million for the same period 2010.

In the first nine months 2011, capital expenditures were RMB212.6 million ($33.3 million),

depreciation expense was RMB69.2 million ($10.7 million), and amortization of acquired intangibles was RMB19.1 million ($3.0 million).

Revenue Outlook Maintained for 2011

Based on current market and operating conditions, planned business expansion, and estimated patient volume, Concord Medical is maintaining its prior

revenue outlook for the year 2011, as shown below.

The Company expects to generate net revenues in an estimated range of RMB480 million to

RMB520 million for the year 2011, which would be an increase of approximately 23% to 33% in net revenues from 2010. This estimated range includes revenues from the Chang an CMS International Cancer Center ( CCICC ) preliminary

operations but excludes any potential future revenue from the Chang an Hospital, as the acquisition of Chang an Hospital s equity interests is currently pending. The Company notes that any unanticipated delays in completing the

acquisition of Chang an Hospital, any failure to obtain CCICC s clinical license, and other uncertainties may result in CCICC not achieving its expected contribution to the Company, which in turn could have a material adverse effect on the

Company s business, financial condition, and results of operations in 2011 and future periods.

Conference Call on November 15

Concord Medical will hold an earnings conference call at 8:00 a.m. Eastern Standard Time (New York) on November 15, 2011, which is

also 9:00 p.m. in Beijing and Hong Kong on the same day.

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

A live webcast of the conference call will be available on the investor relations section of the Company s website

at http://ir.concordmedical.com. A replay of the webcast will be available for one month.

A telephone replay of the call will be

available for seven days after the conclusion of the conference call. The dial-in details for the replay are as follows:

About Concord Medical

Concord 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. As of

September 30, 2011, the Company operated a network of 128 centers with 70 hospital partners that spanned 48 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.