Concord Medical Reports Financial Results for the First Half of 2025

BEIJING, Sept. 26, 2025 /PRNewswire/ -- Concord Medical Services Holdings Limited ("Concord Medical" or the "Company") (NYSE: CCM), a healthcare provider specialized in cancer treatment, research, education and prevention in China, today announced its unaudited consolidated financial results for the six months ended June 30, 2025 [1].

2025 First Half Highlights

[1] This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations of RMB into U.S. dollars are made at a rate of RMB7.1636 to US$1.00, the noon buying rate in New York City for cable transfers payable in RMB, as certified for customs purposes by the Federal Reserve Bank of New York on June 30, 2025.

[2] Adjusted EBITDA is defined as net income/(loss) plus interest expenses, net, income tax expenses, depreciation and amortization and other adjustments. Other adjustments include foreign exchange loss, net, other income, net, gain on disposal of equity method investment, gain on disposal of subsidiaries, change in fair value of derivative liability, changes in fair value of short-term investments and gain on disposal of long-lived equipment.

Dr. Jianyu Yang, Chairman and Chief Executive Officer of Concord Medical, commented, "The precision of proton therapy helps prevent long-term damage to critical functional areas—including the brain, heart, and rectum—while allowing clinicians to safely escalate radiation doses to target sites to improve efficacy in refractory cancers. With minimal impact on surrounding normal tissues, patients benefit from fewer side effects and faster recovery, making proton therapy an optimal treatment option in cases where balancing efficacy and safety is critical.

As the first proton therapy center in South mainland China to commence clinical operations, Guangzhou Concord Cancer Hospital has developed specialized treatment protocols for a range of malignancies. In patients with nasopharyngeal carcinoma, aged between 10 and 71, we observed significant tumor regression, with elderly patients experiencing only mild mucosal reactions. For central nervous system tumors, the hospital achieved successful functional preservation even in extensive irradiation fields such as whole-brain and whole-spine treatments. In pediatric care, as of June 30, the Company treated its youngest proton therapy patient, a child of just over one year old. Through advanced radiotherapy techniques and careful anesthetic management, the hospital was able to provide effective protection and treatment.

These results highlight the clinical value of proton therapy in improving outcomes for challenging cancers while preserving function in critical organs. Looking forward, the Company will remain committed to advancing proton therapy, enhancing public understanding of precision radiotherapy, strengthening patient confidence, and expanding patient access to internationally advanced diagnostic and therapeutic technologies, innovative medications, and patient-centered care."

2025 First Half Financial Results

Net Revenues

Hospital Business

Net revenues from the hospital business were RMB153.0 million (US$21.4 million) in the first half of 2025, representing a 11.1% increase from net revenues of RMB137.8 million in the first half of 2024, mainly because of the commencement of proton therapy operations at Guangzhou Concord Cancer Hospital.

Network Business

Net revenues from the network business were RMB47.6 million (US$6.6 million), representing a 41.3% decrease from net revenues of RMB81.0 million in the first half of 2024, mainly because (1) demand for medical equipment and software decreased under the current macroeconomic environment, leading to delayed overall business demand, and (2) operating lease revenue decreased since this is no longer the Company's main business and expired contracts were not renewed.

Cost of Revenues

Hospital Business

Cost of revenues of the hospital business in the first half of 2025 was RMB157.2 million (US$21.9 million), representing a 9.6% decrease from cost of revenues of RMB174.0 million in the first half of 2024, mainly because (1) efficiency of human resources improved as the Company implemented a strategy focused on enhancing operational efficiency and reducing costs, (2) consumables cost, maintenance cost and lease cost decreased along with the development of the hospital business.

Network Business

Cost of revenues of the network business was RMB47.7million (US$6.7 million), representing a 44.8% decrease from RMB86.4 million in the first half of 2024, mainly because of the decrease in cost as a result of the decrease in revenue generated from sales and installation of medical equipment and software, and from management and technical support services.

Gross Loss and Gross Loss Margin

Gross loss from the operating business was RMB4.3million (US$0.6 million) in the first half of 2025, compared to RMB41.6 million in the same period last year. The gross loss margin for the first half of 2025 was 2.1%, compared to the gross loss margin of 19.0% for the same period last year. The improvement in gross loss margin of the operating business was mainly because of adjustments in the Company's revenue structure, with the commencement of the proton therapy business bringing efficiency improvements, and the strategic focus on enhancing operational efficiency and reducing costs.

Operating Expenses

Selling expenses were RMB21.0 million (US$2.9 million) in the first half of 2025, compared to RMB25.0 million in the first half of 2024. Selling expenses as a percentage of net revenues was 10.5% in the first half of 2025, compared to 11.4% in the first half of 2024.

General and administrative expenses were RMB119.4 million (US$16.7 million) in the first half of 2025, of which employee benefit expenses were RMB51.0 million (US$7.1 million). In the same period of last year, general and administrative expenses were RMB131.2 million. The decrease was mainly attributable to the decrease in staff cost and listing expenses, and the strategic focus on enhancing operational efficiency and reducing costs. General and administrative expenses as a percentage of net revenues were 59.5% in the first half of 2025, compared to 59.9% in the first half of 2024.

Capital Expenditures

Comparing to RMB168.4 million in the first half of 2024, capital expenditures were RMB100.6 million (US$14.0 million) in the first half of 2025, mainly due to the decrease in deposit for equipment and construction fees for our hospital business.

Bank Loans and Other Borrowings

As of June 30, 2025, the Company had bank loans and other borrowings totaling RMB3.6 billion (US$508.4 million).

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. Concord Medical presents the non-GAAP measure of adjusted EBITDA, which is defined in this announcement as net loss plus interest expenses, net, income tax expenses, depreciation and amortization and other adjustments. Other adjustments include foreign exchange loss, net, other income, net, gain on disposal of equity method investment, gain on disposal of subsidiaries, change in fair value of derivative liability, changes in fair value of short-term investments and gain on disposal of long-lived equipment. 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 GAAP measures in the attached financial information.

About Concord Medical

Concord Medical Services Holdings Limited is a healthcare provider featuring a full cycle of premium oncology services including cancer diagnosis, treatment, education and prevention. The Company focuses on providing multidisciplinary cancer care in all aspects of oncology healthcare services in its cancer hospitals and equipping them with technologically advanced equipment such as the state-of-the-art proton therapy system. The Company is striving to improve the quality and accessibility of cancer care through its network of self-owned cancer hospitals and clinics as well as partnered hospitals across China. For more information, please see http://ir.ccm.cn.

Safe Harbor Statement

This announcement contains forward-looking statements. These forward-looking statements can be identified by words or phrases such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions. Forward-looking statements are inherently subject to uncertainties and contingencies beyond the Company's control and based upon premises with respect to future business decisions, which are subject to change. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Concord Medical Services Holdings Co., Ltd.

Consolidated Balance Sheets

(in thousands)

December 31,

2024

June 30, 2025

RMB

US$

(Audited)

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

216,224

177,389

24,763

Short-term investment

134,621

Restricted cash, current portion

20,758

20,216

2,822

Accounts receivable, net

51,168

57,360

8,007

Prepayments and other current assets, net

527,760

756,672

105,627

Inventories

33,441

13,691

1,911

Total current assets

983,972

1,025,328

143,130

Non-current assets

Property, plant and equipment, net

3,704,325

3,684,147

514,287

Right-of-use assets, net

520,817

507,849

70,893

Goodwill

572,216

79,878

Intangible assets, net

292,142

273,976

38,246

Deposits for non-current assets

174,883

210,055

29,323

Long-term investments

472,166

457,016

63,797

Other non-current assets

5,867

2,878

402

Total non-current assets

5,742,416

5,708,137

796,826

Total assets

6,726,388

6,733,465

939,956

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

199,394

112,190

15,661

Accrued expenses and other liabilities

846,194

904,149

126,214

Income tax payable

1,623

16,416

2,292

Operating lease liabilities, current

45,448

47,061

6,569

Short-term bank and other borrowings

649,680

611,708

85,391

Long-term bank and other borrowings, current portion

383,016

762,772

106,479

Total current liabilities

2,125,355

2,454,296

342,606

Non-current liabilities

Long-term bank and other borrowings, non-current portion

2,693,693

2,267,655

316,554

Deferred tax liabilities

82,870

80,134

11,186

Operating lease liabilities, non-current

138,894

133,332

18,612

Other long-term liabilities

67,827

76,028

10,613

Total non-current liabilities

2,983,284

2,557,149

356,965

Total liabilities

5,108,639

5,011,445

699,571

EQUITY

Class A ordinary shares

Class B ordinary shares

Treasury stock

(7)

(1)

Additional paid-in capital

2,169,693

2,230,839

311,413

Accumulated other comprehensive loss

(77,349)

(70,404)

(9,828)

Accumulated deficit

(4,372,832)

(4,399,967)

(614,212)

Total Concord Medical Services Holdings Limited shareholders'

deficit

(2,280,390)

(2,239,434)

(312,613)

Noncontrolling interests

3,898,139

3,961,454

552,998

Total equity

1,617,749

1,722,020

240,385

Total liabilities and equity

6,726,388

6,733,465

939,956

Concord Medical Services Holdings Co., Ltd.

Consolidated Profit & Loss

(in thousands, except for number of shares and per share data)

June 30,

2024

June 30, 2025

RMB

US$

(Unaudited)

Revenues, net of business tax, value-added tax and related

surcharges

Hospital

137,772

153,007

21,359

Network

81,038

47,608

6,646

Total net revenues

218,810

200,615

28,005

Cost of revenues:

Hospital

(173,963)

(157,192)

(21,943)

Network

(86,443)

(47,706)

(6,660)

Total cost of revenues

(260,406)

(204,898)

(28,603)

Gross loss

(41,596)

(4,283)

(598)

Operating expenses:

Selling expenses

(24,975)

(21,006)

(2,932)

General and administrative expenses

(131,173)

(119,361)

(16,662)

Operating loss

(197,744)

(144,650)

(20,192)

Interest expense

(68,668)

(87,660)

(12,237)

Foreign exchange loss, net

(30,269)

(1,906)

(266)

Interest income

5,990

4,574

639

Change in fair value of derivative liability

(108,777)

Income from equity method investments

6,070

7,477

1,044

Gain on disposal of subsidiaries

47,997

Other expenses, net

1,388

(894)

(125)

Gain on disposal of equity method investment

37,471

5,231

Changes in fair value of short-term investments

6,631

Loss before income tax

(337,382)

(185,588)

(25,906)

Income tax expenses

8,674

(19,784)

(2,762)

Net loss

(328,708)

(205,372)

(28,668)

Net loss attributable to noncontrolling interests

(156,450)

(178,237)

(24,881)

Net loss attributable to Concord Medical Services Holdings

Limited

(172,258)

(27,135)

(3,787)

Loss per share for Class A and Class B ordinary shares

Basic

(1.31)

(0.21)

(0.03)

Diluted

(1.31)

(0.21)

(0.03)

Weighted average number of class A and class B ordinary shares

outstanding:

Basic

131,053,858

Diluted

131,053,858

Other comprehensive loss, net of tax of nil

Foreign currency translation, net tax of nil

(6,273)

6,945

969

Total other comprehensive loss, net of tax

(6,273)

6,945

969

Comprehensive loss

(334,981)

(198,427)

(27,699)

Comprehensive loss attributable to noncontrolling interests

(156,450)

(178,237)

(24,881)

Comprehensive loss attributable to Concord Medical Services

Holdings Limited's shareholders

(178,531)

(20,190)

(2,818)

Reconciliation from net income to adjusted EBITDA(*) (in RMB thousands, unaudited)

For the six months ended

June 30, 2024

June 30, 2025

Net loss

(328,708)

(205,372)

Interest expenses, net

62,678

83,086

Income tax expenses

(8,674)

19,784

Depreciation and amortization

43,654

74,985

Other adjustments

83,030

(34,671)

Adjusted EBITDA

(148,020)

(62,188)

EBITDA margin

-68 %

-31 %

(*) Definition of adjusted EBITDA: Adjusted EBITDA is defined as net loss plus interest expenses, net, income tax

expenses, depreciation and amortization, and other adjustments. Other adjustments include foreign exchange loss, net,

other income, net, gain on disposal of equity method investment, gain on disposal of subsidiaries, change in fair value

of derivative liability, changes in fair value of short-term investments and gain on disposal of long-lived equipment.

SOURCE Concord Medical Services Holdings Limited