UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934

CONCORD MEDICAL SERVICES
HOLDINGS LIMITED

18/F, Tower A, Global Trade Center
36 North Third Ring Road East, Dongcheng District
Beijing 100013
People’s Republic of China
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F þ               Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):o

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o               No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

82-      N/A     

 

 

TABLE OF CONTENTS

EX-99.1-Press Release

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 19, 2010

Exhibit 99.1

Concord Medical Announces Fourth Quarter and Fiscal Year 2009
Financial Results

Dr. Hongbin Cai Appointed as Independent Board Member

BEIJING, March 18 /PRNewswire-Asia-FirstCall/ — 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 announced its unaudited consolidated financial results for the fourth quarter and fiscal year ended December 31, 2009⁽¹⁾, and the appointment of Dr. Hongbin Cai as an independent board member.

     Fourth Quarter and Fiscal Year 2009 Highlights

	—		Total net revenues in the fourth quarter of 2009 were RMB86.8 million ($12.7 million), a 24.3% increase from the corresponding period in 2008. Total net revenues in fiscal year 2009 were RMB292.4 million ($42.8 million), a 70.2% increase from 2008.
	—		Net income in the fourth quarter of 2009 was RMB35.9 million ($5.3 million). Net income in fiscal year 2009 was RMB124.8 million ($18.3 million), a 57.9% increase from the corresponding period in 2008.
	—		Both basic and diluted earnings per American Depository Share (“ADS”)(2) in the fourth quarter of 2009 were RMB0.69 ($0.10). Both basic and diluted earnings per ADS in fiscal year 2009 were RMB1.86 ($0.27).
	—		Adjusted EBITDA(3) (non-GAAP) in the fourth quarter of 2009 was RMB72.1 million ($10.6 million), a 22.3% increase from the corresponding period in 2008. Adjusted EBITDA in fiscal year 2009 was RMB246.6 million ($36.1 million), a 71.0% increase from 2008.
	—		Concord Medical opened five centers in the fourth quarter of 2009, bringing the total number of centers in operation to 88 across 36 cities in China, as of December 31, 2009. To date, the Company has entered into agreements to establish 27 new centers in 2010.
	—		The number of treatment and diagnostic patient cases was 49,088 and 178,658 during the fourth quarter and fiscal year 2009, representing a 23.9% and 62.4% increase from the corresponding period in 2008, respectively.
	—		The Company raised $132.0 million in gross proceeds from its initial public offering (“IPO”) of 12 million ADSs on the New York Stock Exchange on December 11, 2009, which are expected to be used to further expand its existing network of centers, establish two specialty cancer hospitals and for general corporate purposes.

“We were encouraged to end 2009 with a solid quarter of financial performance and operational progress, and we are very excited by the growth opportunities we see in 2010,” said Dr. Jianyu Yang, director, president and chief executive officer of Concord Medical.

“Having established our first radiotherapy center in 1997, Concord Medical’s success has been driven by our outstanding ability to establish and operate these centers effectively. Looking forward, we will continue to expand our leading network by opening new centers and to improve the operational efficiency of existing centers. Our target is to operate at least 200 centers by 2012 and we are moving quickly toward that goal. In addition, the development of our two specialty cancer hospitals is well under way. We expect to open our Chang’an CMS International Cancer Center in June 2010 and our Beijing Proton Medical Center in early 2012.”

Mr. Yang further commented, “Cancer is the leading cause of death in China and the cancer treatment market is one of China’s fastest growing healthcare segments as Chinese people increasingly understand the importance of early-detection and high quality treatment. In addition, the Chinese government has been encouraging private investment in the healthcare sector in order to enhance the scope and quality of medical services provided in the country. With our leading expertise and solid capital position combined with increasing market demand and the Chinese government’s commitment to implementing healthcare reform, we are confident that Concord Medical is well positioned to achieve our growth targets.”

Mr. Boxun Zhang, Concord Medical’s corporate vice president added, “Over the past three years, Concord Medical has consistently achieved strong top and bottom line growth and managing for profitable growth remains a top priority for us. In the future, while supporting our expansion strategies with positive operating cash flow, a strong cash balance and flexible bank credit, we will also continue to improve our operational efficiency and enhance financial management.”

Independent Board Member Appointment

Concord Medical also announced that Dr. Hongbin Cai joined its board as an independent director and replaced Mr. Wai Hung Ku as a member of the audit committee. Mr. Ku will remain on the Company’s board.

Commenting on the appointment, Dr. Yang said, “We are delighted for Dr. Cai to join Concord Medical’s board and audit committee. As a nationally renowned academic leader and business advisor, Dr. Cai brings in-depth knowledge of corporate finance and economics. We also thank Mr. Ku for his valuable contributions to the Company during his tenure. This change in our board composition demonstrates our commitment to observing best practices in corporate governance as a newly listed company.”

Dr. Hongbin Cai is currently a professor in economics and an associate dean at Peking University’s Guanghua School of Management. Since 2006, he has been serving as a director of the Mirrlees Institute of Economic Policy Research and an associate director of the Institute of Poverty Research at Peking University. Prior to returning to Peking University as a professor, he served as an assistant professor of the economics department at the University of California, Los Angeles from 1997 to 2005. From 2000 to 2001, he served as a visiting assistant professor at the economics department and the Cowles Foundation of Yale University. Dr. Cai holds a Ph.D. in Economics and an M.A. in Statistics from Stanford University, an M.A. in Economics from Peking University and a B.A. in Mathematics from Wuhan University. He has received various national recognitions in China, including being named as a National Chang Jiang Scholar and a National Outstanding Young Researcher and his academic papers have been published in renowned journals such as the American Economic Review, the Rand Journal of Economics, the Journal of Public Economics, the Journal of Economic Theory, and the Economic Journal.

Fourth Quarter 2009 Results

Concord Medical reported total net revenues of RMB86.8 million ($12.7 million) for the fourth quarter of 2009, a 24.3% increase from the corresponding period in 2008, primarily due to an increase in patient cases from existing centers and the opening of new centers.

Cost of revenues in the fourth quarter of 2009 was RMB25.0 million (US$3.7 million), a 45.2% increase from the corresponding period in 2008, primarily due to an increase in depreciation costs related to new equipment installation in 2009.

Gross profit margin in the fourth quarter of 2009 was 71.2% as compared to 71.4% in the previous quarter and 75.3% in the corresponding period in 2008. The year-over-year decrease was primarily due to sale of equipments, which had a higher margin, accounting for a higher portion of total net revenues in the fourth quarter of 2008.

Operating expenses, consisting of selling expenses and general and administrative expenses, were RMB13.3 million ($2.0 million) in the fourth quarter of 2009 as compared to RMB9.7 million in the previous quarter and RMB8.6 million in the corresponding period in 2008. The quarter-over-quarter increase was mainly due to an increase in salary and compensation expenses related to business expansion, and

RMB1.0 million in share-based compensation expenses associated with certain option grants in November 2009.

Operating income was RMB48.4 million ($7.1 million) in the fourth quarter of 2009, representing a 10.2% increase from the corresponding period in 2008. Operating income excluding share-based compensation expenses (non-GAAP) was RMB49.4 million ($7.2 million), a 12.5% increase from the corresponding period in 2008.

Income tax expense was RMB10.7 million ($1.6 million), compared to an income tax expense of RMB10.7 million in the corresponding period in 2008. The effective tax rate for the fourth quarter of 2009 was 22.9% as compared to 23.0% in the third quarter of 2009 and 21.5% for the corresponding period in 2008.

Net income was RMB35.9 million ($5.3 million), representing an 8.2% decrease from the corresponding period in 2008. This decrease was primarily due to a RMB7.7 million one-time gain recognized as other income in the fourth quarter of 2008. Both basic and diluted earnings per ADS for the fourth quarter of 2009 amounted to RMB0.69 ($0.10).

Net income excluding share-based compensation expenses (non-GAAP) was RMB36.9 million ($5.4 million), a 5.6% decrease from the corresponding period in 2008. Both basic and diluted earnings per ADS excluding share-based compensation expenses (non-GAAP) for the fourth quarter of 2009 amounted to RMB0.72 ($0.11).

Adjusted EBITDA (non-GAAP), was RMB 72.1 million ($10.6 million) for the fourth quarter of 2009, representing a 22.3% increase from the corresponding period in 2008.

As of December 31, 2009, the Company had total fixed assets valued at RMB584.9 million ($85.7 million) and cash and cash equivalents of RMB1, 037.2 million ($152.0 million).

As of December 31, 2009, the Company had bank credit lines totaling RMB2,145 million (US$314.2 million).

Accounts receivable was RMB111.3 million ($16.3 million) as of December 31, 2009, compared to RMB119.1 million as of September 30, 2009 and RMB92.8 million as of December 31, 2008. The sequential decrease was mainly due to enhanced cash flow management. Days sales outstanding decreased to approximately 120 days in the fourth quarter of 2009 from approximately 128 days in the previous quarter.

Fiscal Year 2009 Results

Total net revenues in 2009 were RMB292.4 million ($42.8 million), representing a 70.2% increase from RMB171.8 million in 2008, primarily due to (i) an increase in patient cases from existing centers and the opening of new centers, and (ii) consolidation of China Medstar’s revenues for the entire fiscal year 2009 as compared to for the last five months of 2008, as a result of the acquisition of China Medstar being completed in July 2008.

Cost of revenues in 2009 was RMB87.6 million (US$12.8 million), representing a 92.0% increase from RMB45.6 million in 2008, primarily due to the an increase depreciation cost related to the opening of new centers and the resulting increase in salaries and benefits to additional personnel employed and assigned to the new centers.

Gross profit margin in 2009 was 70.1%, compared to 73.5% in 2008. This decrease was primarily due to (i) higher operating costs associated with having a bigger number of new centers in their ramp-up periods, and (ii) an increase in the number of centers that offered diagnostic imaging services, which generally have a lower margin than radiotherapy treatment services.

Selling expenses in 2009 were RMB7.7 million ($1.1 million), representing a 39.6% increase from RMB5.5 million in 2008, which was primarily due to increases in headcount and marketing and other expenses to support increased business development efforts. Selling expenses as a percentage of total net revenues decreased to 2.6% in 2009 from 3.2% in 2008 mainly due to economies of scale.

General and administrative expenses in 2009 were RMB29.8 million ($4.4 million), representing a 58.0% increase from RMB18.9 million in 2008, which was primarily due to (i) increases in headcount and travel expenses, and (ii) increases in auditing expenses and share based compensation charges. General and administrative expenses as a percentage of total net revenues decreased to 10.2% in 2009 from 11.0% in 2008 mainly due to economies of scale.

Share-based compensation expenses, which were allocated to related operating expense items, were RMB1.0 million ($0.1 million) in 2009, compared to RMB4.2 million in 2008.

Operating income in 2009 was RMB167.4 million ($24.5 million), a 64.4% increase from RMB101.8 million in 2008. Operating income excluding share-based compensation expenses (non-GAAP) in 2009 was RMB168.4 million ($24.7 million), representing a 58.8% increase from 2008.

Income tax expense was RMB36.4 million ($5.3 million), compared to an income tax expense of RMB23.3 million in 2008. The effective tax rate for 2009 was 22.6% as compared to 22.8% in 2008.

Net income in 2009 was RMB124.8 million ($18.3 million), representing a 57.9% increase from RMB79.1 million in 2008. Both basic and diluted earnings per ADS for 2009 amounted to RMB1.86 ($0.27).

Net income excluding share-based compensation expenses (non-GAAP) in 2009 was RMB125.8 million ($18.4 million), reflecting a 51.1% increase from RMB83.3 million in 2008. Both basic and diluted earnings per ADS excluding share-based compensation expenses (non-GAAP) in 2009 were RMB1.92 ($0.28).

Capital expenditures were RMB168.8 million ($24.7 million) in 2009, compared to RMB31.6 million in 2008. The increase was primarily due to the opening of new centers.

Adjusted EBITDA (non-GAAP) was RMB246.6 million ($36.1 million) in 2009, representing a 71.0% increase from RMB144.2 million in 2008.

Outlook for Fiscal Year 2010

Concord Medical expects to generate total net revenues in an estimated range of RMB360 million to RMB390 million in 2010, which would represent a 23.1% to 33.4% increase from 2009.

The Company intends to open 30 to 35 new radiotherapy and diagnostic imaging centers in 2010. The Company expects total capital expenditures related to these new centers to be in the range of RMB350 million to RMB400 million.

This forecast reflects Concord Medical’s current and preliminary view, which is subject to change.

Conference Call Information

Concord Medical’s management will hold an earnings conference call at 8:00 AM on March 18, 2010 U.S. Eastern Time (8:00 PM on March 18, 2010 Beijing/Hong Kong time).

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

	US:		+ 1.866.700.7477
	China:		+ 10.800.152.1490 (North) / 10.800.130.0399 (South)
	Hong Kong:		+ 800.96.3844
	International:		+ 1.617.213.8840
	Passcode: 27971809

A replay of the conference call may be accessed by phone at the following number until March 25, 2010:

	US:		+ 1.888.286.8010
	International:		+ 1.617.801.6888
	Passcode: 36785545

Additionally, a live and archived webcast of this conference call will be available at http://ir.cmsholdings.com/ .

About Concord Medical

Concord Medical operates the largest network of radiotherapy and diagnostic imaging centers in China in terms of revenues and the total number of centers in operation per available statistics. The Company currently operates a network of more than 80 centers spanning 36 cities and 21 provinces and administrative regions in China. Under long-term arrangements with top-tier hospitals in China, the Company provides radiotherapy and diagnostic imaging equipments and manages the daily operations of these centers located on its hospital partners’ premises. The Company also provides

ongoing training to doctors and other medical personnel in its network of centers to ensure a high level of clinical care for patients.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “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. In particular, many of the statements from management in this press release and the section under “Outlook for First Quarter 2010” are forward-looking in nature. 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; and technological or therapeutic changes affecting the field of cancer treatment and diagnostic imaging. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission at www.sec.gov. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Statement Regarding Unaudited Financial Information

The Company’s independent auditors are in the process of completing an audit of the Company’s U.S. GAAP financial statements for 2009. These unaudited 2009 numbers disclosed in this announcement are, therefore, subject to change.

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 non-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 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 (loss) income plus interest, taxes, depreciation and amortization, share-based compensation expenses and other adjustments. Other adjustments include change in fair value of convertible notes, foreign exchange loss and other income. Furthermore, Adjusted EBITDA eliminates the impact of items that the Company does not consider indicative of the performance of its network of centers. 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 statements.

Concord Medical Services Holdings Co., Ltd.

Unaudited Condensed Consolidated Balance Sheets

(in thousand)

		December 31,				September 30,
		2008*				2009				December 31, 2009
		RMB				RMB				RMB				US$
ASSETS
Current assets
Cash			353,991				285,703				1,037,239				151,956
Restricted cash, current portion			—				2,012				293				43
Accounts receivable			92,772				119,127				111,328				16,310
Prepayment and other current assets			43,566				56,869				83,926				12,295
Deferred tax assets, current portion			2,649				2,776				3,168				464
Total current assets			492,978				466,487				1,235,954				181,068
Non-current assets
Property, plant and equipment, net			349,121				557,433				584,869				85,684
Goodwill			300,163				300,163				300,163				43,974
Acquired intangible assets, net			181,838				161,450				155,345				22,758
Deposits for non-current assets			167,200				147,851				131,881				19,321
Deferred tax assets, non-current portion			12,650				12,648				19,700				2,886
Other non-current assets			10,445				10,782				11,532				1,689
Deferred initial public offering expense			—				11,207				—				—
Restricted cash, non-current portion			—				5,233				4,421				648
Total non-current assets			1,021,417				1,206,767				1,207,911				176,960
Total assets			1,514,395				1,673,254				2,443,865				358,028

		December 31,				September 30,
		2008*				2009				December 31, 2009
		RMB				RMB				RMB				US$
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term bank borrowing			20,800				30,000				11,500				1,685
Long-term bank borrowings, current portion			39,840				44,880				35,647				5,222
Accounts payable			9,741				9,744				9,759				1,430
Accrual for purchase of property, plant and equipment			1,881				25,839				12,043				1,764
Obligations under capital leases, current portion			3,719				3,582				3,582				525
Accrued expenses and other liabilities			42,444				44,221				48,663				7,128
Income tax payable			17,041				22,864				14,642				2,145
Deferred revenue, current portion			12,656				13,395				10,401				1,524
Payable for acquisition of a subsidiary and business components			28,016				6,500				—				—
Dividends payable			10,788				35,428				—				—
Amounts due to related parties			3,607				1,607				1,546				226
Total current liabilities			190,533				238,060				147,783				21,649
Non-current liabilities
Long-term bank borrowings, non-current portion			52,120				104,912				102,755				15,054
Deferred revenue, non-current portion			6,314				5,470				5,188				760
Obligations under capitalized leases, non-current portion			11,656				8,719				8,074				1,183
Lease deposit			3,215				3,269				1,000				147
Deferred tax liabilities, non-current portion			20,078				18,189				25,317				3,709
Total non-current liabilities			93,383				140,559				142,334				20,853
Total liabilities			283,916				378,619				290,117				42,502
Commitments and contingencies
Mezzanine equity
Series A contingently redeemable convertible preferred shares			254,358				269,017				—				—
Series B contingently redeemable convertible preferred shares			411,101				434,036				—				—
Shareholders’ equity
Ordinary shares			55				55				108				16

		December 31,				September 30,
		2008*				2009				December 31, 2009
		RMB				RMB				RMB				US$
Additional paid-in capital			1,113,150				1,113,204				2,671,910				391,437
Accumulated other comprehensive (loss) income			(3,822	)			(4,037	)			(3,987	)			(584	)
Accumulated deficit			(544,363	)			(517,640	)			(514,283	)			(75,343	)
Total shareholders’ equity			565,020				591,582				2,153,748				315,526
Total liabilities, preferred shares and shareholders’ equity			1,514,395				1,673,254				2,443,865				358,028

Concord Medical Services Holdings Co., Ltd.
Unaudited Condensed Consolidated Statements of Income
(in thousand, except per ADS data)

		For the Three Months Ended
		December 31,				September 30,
		2008				2009				December 31, 2009
		RMB				RMB				RMB				US$
Revenue, net of business tax, value-added tax and related surcharges
Lease and management services			60,765				70,892				75,225				11,021
Management services			5,158				6,689				8,643				1,266
Other, net			3,873				408				2,911				426
Total net revenues			69,796				77,989				86,779				12,713
Cost of revenues
Lease and management services			(10,375	)			(15,703	)			(18,793	)			(2,753	)
Amortisation of acquired intangibles			(6,826	)			(6,624	)			(6,105	)			(894	)
Management services			(35	)			(2	)			(122	)			(18	)
Total cost of revenues			(17,236	)			(22,329	)			(25,020	)			(3,665	)
Gross profit			52,560				55,660				61,759				9,048
Operating expenses
Selling expenses			(2,222	)			(1,476	)			(3,212	)			(470	)
General and administrative expenses			(6,401	)			(8,211	)			(10,134	)			(1,485	)
Operating income			43,937				45,973				48,413				7,094
Interest expense			(2,162	)			(1,671	)			(2,011	)			(295	)

		For the Three Months Ended
		December 31,				September 30,
		2008				2009				December 31, 2009
		RMB				RMB				RMB				US$
Foreign exchange (loss) income			(312	)			(97	)			5				1
Gain from disposal of equipment			266				—				—				—
Interest income			314				176				125				18
Other income			7,734				—				—				—
Income before income taxes			49,777				44,381				46,532				6,818
Income tax expense			(10,724	)			(10,199	)			(10,662	)			(1,562	)
Net income			39,053				34,182				35,870				5,256
Accretion of Series A contingently redeemable convertible preferred shares			(8,057	)			(7,948	)			(6,199	)			(908	)
Accretion of Series B contingently redeemable convertible preferred shares			(304,763	)			(12,791	)			(9,976	)			(1,461	)
Net (loss) income attributable to ordinary shareholders			(273,767	)			13,443				19,695				2,886
(Loss) income per ADS
Basic /Diluted			(11.66	)			0.57				0.69				0.10
Weighted average number of ADS outstanding:
Basic /Diluted			23,476,033				23,476,033				29,057,729				29,057,729

Concord Medical Services Holdings Co., Ltd.
Unaudited Condensed Consolidated Statements of Income
(in thousand, except per ADS data)

		Twelve
		months ended
		December 31,				Twelve months ended
		2008				December 31, 2009
		RMB				RMB				US$
Revenue, net of business tax, value-added tax and related surcharges
Lease and management services			155,061				260,162				38,114
Management services			12,677				28,739				4,210
Other, net			4,051				3,535				518
Total net revenues			171,789				292,436				42,842
Cost of revenues

		Twelve
		months ended
		December 31,				Twelve months ended
		2008				December 31, 2009
		RMB				RMB				US$
Lease and management services			(25,046	)			(60,937	)			(8,927	)
Amortisation of acquired intangibles			(20,497	)			(26,493	)			(3,881	)
Management services			(54	)			(131	)			(19	)
Total cost of revenues			(45,597	)			(87,561	)			(12,828	)
Gross profit			126,192				204,875				30,014
Operating expenses:
Selling expenses			(5,497	)			(7,675	)			(1,124	)
General and administrative expenses			(18,869	)			(29,821	)			(4,369	)
Operating income			101,826				167,379				24,521
Interest expense			(7,455	)			(6,891	)			(1,010	)
Change in fair value of convertible notes			(464	)			—				—
Foreign exchange loss			(325	)			(213	)			(31	)
Gain from disposal of equipment			658				—				—
Interest income			430				948				139
Other income			7,734				—				—
Income before income taxes			102,404				161,223				23,619
Income tax expense			(23,335	)			(36,396	)			(5,332	)
Net income			79,069				124,827				18,287
Accretion of Series A contingently redeemable convertible preferred shares			(270,343	)			(30,050	)			(4,402	)
Accretion of Series B contingently redeemable convertible preferred shares			(304,763	)			(48,359	)			(7,085	)
Net (loss) income attributable to ordinary shareholders			(496,037	)			46,418				6,800
(Loss) income per ADS
Basic/Diluted			(25.89	)			1.86				0.27
Weighted average number of ADS outstanding:
Basic/Diluted			19,160,467				24,882,926				24,882,926

Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (*) (in RMB thousands, unaudited)

		Three months ended December 31, 2008
						Non-GAAP
		GAAP Result				Adjustment				Results
Operating profit			43,937				—				43,937
Net income			39,053				—				39,053
Net income attributable to ordinary shareholders			—				—				—
Basic (Loss) earning per ADS			(11.66	)			—				(11.66	)
Diluted (Loss) earning per ADS			(11.66	)			—				(11.66	)

		Three months ended September 30, 2009
						Non-GAAP
		GAAP Result				Adjustment				Results
Operating profit			45,973				—				45,973
Net income			34,182				—				34,182
Net income attributable to ordinary shareholders			—				—				—
Basic (Loss) earning per ADS			0.57				—				0.57
Diluted (Loss) earning per ADS			0.57				—				0.57

		Three months ended December 31, 2009
						Non-GAAP
		GAAP Result				Adjustment				Results
Operating profit			48,413				1,007				49,420
Net income			35,870				1,007				36,877
Net income attributable to ordinary shareholders			—				—				—
Basic (Loss) earning per ADS			0.69				0.03				0.72
Diluted (Loss) earning per ADS			0.69				0.03				0.72

		Twelve months ended December 31, 2008
						Non-GAAP
		GAAP Result				Adjustment				Results
Operating profit			101,826				4,215				106,041
Net income			79,067				4,215				83,282
Net income attributable to ordinary shareholders			—				—				—
Basic (Loss) earning per ADS			(25.89	)			0.22				(25.67	)
Diluted (Loss) earning per ADS			(25.89	)			0.22				(25.67	)

		Twelve months ended December 31, 2009
						Non-GAAP
		GAAP Result				Adjustment				Results
Operating profit			167,379				1,007				168,386
Net income			124,827				1,007				125,834

		Twelve months ended December 31, 2009
						Non-GAAP
		GAAP Result				Adjustment				Results
Net income attributable to ordinary shareholders			—				—				—
Basic (Loss) earning per ADS			1.86				0.06				1.92
Diluted (Loss) earning per ADS			1.86				0.06				1.92

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

		Three				Three				Three				Twelve				Twelve
		months				months				months				months				months
		ended				ended				ended				ended				ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2008				2009				2009				2009				2008
Net income			39,053				34,182				35,870				124,827				79,069
Interest expense, net			1,848				1,495				1,886				5,943				7,025
Income taxes expense (benefit)			10,724				10,199				10,662				36,396				23,335
Depreciation and amortization			15,042				19,132				22,685				78,174				38,126
Share-based compensation			—				—				1,007				1,007				4,215
Other adjustments			(7,688	)			97				(5	)			213				(7,603	)
Adjusted EBITDA			58,979				65,105				72,105				246,560				144,167

For investor and media inquiries please contact:

China

Stephanie Song
Concord Medical Services
Phone: +86-10-5957-5287
Email: stephanie.song@cmsholdings.com

Lilian Wong
Brunswick Group, LLC
Phone: +86-10-6566-2256
Email: lwong@brunswickgroup.com

U.S.

Nicki Kahner
Brunswick Group, LLC
Phone: +1-212-333-3810
Email: nkahner@brunswickgroup.com

SOURCE Concord Medical Services Holdings Limited