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Concord Medical Reports Third Quarter 2011 Financial Results
Date:11/14/2011

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 ResultsNet 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
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SOURCE Concord Medical Services Holdings Limited
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