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Concord Medical Reports Third Quarter 2013 Financial Results and Reiterates Financial Year Guidance Forecast
Date:11/12/2013

a as of September 30, 2013. As of September 30, 2013, the Company had agreements to establish nine additional centers, which are scheduled to open in the first half of 2014.

Net revenue from the network business was RMB131.1 million ($21.4 million) for the third quarter of 2013, representing an increase of 14.6% from the third quarter of 2012, primarily due to an increase in the number of patients in the Company's existing centers and from the contribution of new centers opened during the past 12 months.

Gross profit margin in the network business was 56.0% for the third quarter of 2013, compared to 61.3% for the third quarter of 2012 and 59.7% in the second quarter of 2013. The lower year-over-year gross profit margin was primarily due to increased consumable cost, compensation and operating cost at the Company's centers.

Capital expenditure of the network business was RMB20.9 million ($3.4 million) for the third quarter of 2013, compared with RMB131.4 million in the third quarter of 2012. The capital expenditure during the third quarter of 2013 was mainly relating to ancillary equipment spending with the Company's network centers. The capital expenditure during the third quarter of 2012 was mainly composed of deposits for equipment for new centers.

Selling expenses in the network business were RMB24.7 million ($4.0 million) for the third quarter of 2013, representing an increase of 39.0% from RMB17.7 million in the third quarter of 2012. The increase was mainly due to higher selling expenses related to the Company's telemedicine and web businesses, which amounted to RMB4.2 million ($0.7 million). The Company also incurred higher marketing and promotion expenses at its existing centers.

General and administrative expenses in the network business were RMB13.3 million ($2.2 million), representing a decrease of 44.9% from RMB24.3 million in the second quarter of 2013. During the third quarter of 2013, the Company spent RMB1.7 million
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SOURCE Concord Medical Services Holdings Limited
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