Concord Medical Reports Third Quarter 2015 Financial Results BEIJING

Concord Medical Reports Third Quarter 2015 Financial Results

BEIJING, November 18, 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 consolidated financial results for the third quarter ended

September 30, 2015[1].

Third Quarter 2015 Highlights

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

achieved several important strategic milestones. First, we actively expanded our free-standing radiotherapy and diagnostic centers in China. The first free-standing radiotherapy center, Datong Meizhong Jiahe Cancer Hospital is at the final stage of

equipment installation and internal decoration. It is expected to open and receive and treat patients by early 2016. We also have a strong pipeline of free-standing centers which will open to patients gradually. We are very glad to see that our

strategic transformation is making solid progress. Secondly, Concord Cancer Hospital has received the approval from Singapore Ministry of Health to operate under the new name and will provide oncology as its main service, including medical oncology

and surgical oncology. Our team is currently working with The University of Texas MD Anderson Cancer Center ( MDACC ) to install the medical protocol and hire a qualified medical team to be in compliance with MDACC standards. We expect to

see patient inflow improvement in 2016. Finally, Concord Medical has acquired an additional equity interest in the management company of MDACC Proton Therapy Center ( MDACC PTC ) and become the majority shareholder of the management

company of MDACC PTC. As a result, the company also acquired an additional interest in the MDACC Proton Therapy Center.

Additionally, the Company plans

to list its indirectly wholly-owned subsidiary, CMS Hospital Management Co., Ltd, on the National Equities Exchange and Quotations ( NEEQ ) in China, which is also known as the New Third Board in China. This is an effort to fully unlock

the value in our business. We have submitted the listing application to the NEEQ and we expect the listing to be approved by the end of 2015.

forward, Concord Medical is making concrete progress to establish a leading cancer hospitals network in China. Our premium cancer hospitals in Beijing, Shanghai and Guangzhou are all expected to start construction in 2016. Once completed, these

hospitals are expected to become prime destinations for cancer treatment and diagnostics and our patients are expected to receive MDACC-standard Multiple Disciplinary Treatment ( MDT ).

2015 Third Quarter Financial Results by Segment

Net revenue from the network

business increased by 3.7% to RMB148.5 million ($23.4 million) in the third quarter of 2015 from RMB143.2 million in the third quarter of 2014. The increase was primarily attributable to improvement in product mix, especially increased

contribution from Cyber Knife centers in the network.

As of September 30, 2015, the Company operated a network of 127 centers in 53 cities in China

and had entered into agreements to establish one additional center. The Company closed two radiotherapy centers in the third quarter of 2015.

revenue of the network business was RMB83.5 million ($13.1 million) in the third quarter of 2015, compared to RMB69.1 million in the third quarter of 2014. The increase was mainly due to the increased high-value medical consumable expenses and

maintenance expenses for the network.

Gross profit from the network business was RMB65.0 million ($10.2 million) in the third quarter of 2015,

compared to RMB74.1 million in the third quarter of 2014. The gross profit margin of the network business for the third quarter of 2015 was 43.8%, compared to 51.7% for the third quarter of 2014. The decrease in gross profit was mainly due to higher

cost of revenue attributable to the increased high-value medical consumable expenses and maintenance expenses for the network.

expenses of the network business were RMB30.8 million ($4.9 million) in the third quarter of 2015, compared to RMB27.5 million in the third quarter of 2014. Selling expenses as a percentage of net revenue from network business was 20.8% in the

third quarter of 2015, compared to 19.2% in the third quarter of 2014. The increase in selling expenses was mainly due to increased conference, office and travel expenses.

General and administrative expenses of the network business were RMB21.7million ($3.5 million) in the third quarter of 2015, compared to RMB20.1

million, excluding the gain from collection of bad debts of RMB20.0 million, in the third quarter of 2014. General and administrative expenses as a percentage of net revenue from network business was 14.6% in the third quarter of 2015, compared to

14.0% in the third quarter of 2014.

Capital expenditures of the network business were RMB105.4 million ($16.6 million) in the third

quarter of 2015, compared to RMB16.7 million in the third quarter of 2014 due to the increase in deposits for Property, Plant and Equipment for our secondary hospital.

Accounts receivable from the network business was RMB257.7 million ($40.6 million) as of September 30, 2015, compared to RMB265.0 million as of

December 31, 2014. The average number of days sales outstanding was 168 in the third quarter of 2015, compared to 173 days in the third quarter of 2014.

As of September 30, 2015, the Company, excluding Concord Cancer Hospital which was acquired in April 2015, had bank credit lines totaling RMB3.2

billion ($507.5 million), of which RMB1.2 billion ($185.2 million) were utilized.

During the third quarter of 2015, the Company handled 6,100 patient

treatment cases and 78,766 patient diagnostic cases, representing a 0.4% decrease and 0.1% decrease, respectively, from the third quarter of 2014, mainly due to the closure of two radiotherapy centers during the third quarter of 2015.

Concord Cancer Hospital[4] is a leading privately-owned, for-profit oncology hospital in Singapore. The

Company acquired Concord Cancer Hospital, formerly known as Foritis Surgical Hospital, in April 2015 and is now transforming it into a specialty cancer hospital.

Net revenue from the hospital business was RMB5.8 million ($0.9 million or S$1.3 million [5]),

which were comprised of:

Cost of service of the hospital business for the third quarter of 2015 was RMB8.9 million ($1.4 million or S$2.0 million).

Selling expenses of the hospital business were RMB0.03 million ($4618.8 or S$0.01 million) for the third quarter of 2015.

General and administrative expenses of the hospital business were RMB9.9 million ($1.6 million or S$2.2 million) for the third quarter of 2015, of

which employee benefit expenses were RMB5.7 million ($0.9 million or S$1.3 million).

Capital expenditures of the hospital business was RMB0.8

million ($0.1 million or S$0.1 million) for the third quarter of 2015.

As of September 30, 2015, Concord Cancer Hospital had accounts

receivable of RMB3.8 million ($0.6 million or S$0.8 million). The number of days sales outstanding was 52. The accounts receivable balance was mainly related to outstanding balances to be collected from local insurance program.

Concord Cancer Hospital operated 31 beds and had 85 medical and non-medical staff as of September 30, 2015.

Receives name change

approval for Singapore hospital On October 14, 2015, Concord Medical received approval from the Singapore Ministry of Health to change the name of its acquired hospital in Singapore, Fortis Surgical Hospital, to Concord Cancer

Hospital which will provide oncology as its main service, including medical oncology and surgical oncology.

Announces Establishment of Beijing Allcure

Medical Information Technology Ltd. On September 8, 2015, the Company announced that it span off its current telemedicine business and jointly set up Allcure with strategic investors. Concord Medical injected its telemedicine-related

assets and staff into Allcure and brought in a professional management team.

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 MDACC Proton Therapy Center from an existing owner of the general partner.

Share Repurchase Program On August 10, 2015, the Company announced a share repurchase program,

under which Concord Medical is authorized to repurchase up to $20.0 million of its outstanding ADSs for cash in open market transactions or by other means as long as the price per ADS is no more than $7.99, depending on market conditions and other

factors. As of November 17, 2015, Concord Medical has repurchased 330,730 ADSs, representing 992,190 ordinary shares, for an aggregate consideration of $1.7 million, including commissions. As of September 30, 2015, the Company had total

44.9 million outstanding ADSs.

Conference Call Information

Concord Medical s management will hold an earnings conference call at 8:00 a.m. Eastern Time on November 19, 2015 (9:00 p.m. Beijing/Hong Kong time

on November 19, 2015).

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 September 30, 2015, the Company operated a network of 127

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 Concord Cancer 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. 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, and share-based compensation expenses and other adjustments. Other adjustments include foreign exchange gain (loss), loss from disposal of property,

plant and equipment, 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