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

Exhibit 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: June 1, 2010

Exhibit 99.1

Concord Medical Announces First Quarter 2010 Financial Results

BEIJING, May 27, 2010 — 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 financial results for the first quarter ended March 31, 2010¹.

First Quarter Fiscal 2010 Highlights

	•		Total net revenues in the first quarter of 2010 were RMB76.2 million ($11.2million), a 36.6% increase from the corresponding period in 2009.
	•		Gross profit in the first quarter of 2010 was RMB49.1 million ($7.2million), a 30.4% increase from the corresponding period in 2009.
	•		Non-GAAP Net income2 in the first quarter of 2010 was RMB24.2 million ($3.5 million), a 10.7% increase from the corresponding period in 2009.
	•		Both Non-GAAP basic and diluted earnings per American Depository Share (“ADS”)3 for the first quarter of 2010 were RMB0.49 ($0.07).
	•		Adjusted EBITDA4 (non-GAAP) in the first quarter of 2010 was RMB57.9 million ($8.5 million), a 19.8% increase from the corresponding period in 2009.
	•		Concord Medical opened one center in the first quarter of 2010, bringing the total number of centers in operation to 89 across 37 cities in China, as of March 31, 2010. To date, the Company has entered into agreements to establish 38 new centers.
	•		The number of treatment patient cases and diagnostic patient cases was 6,868 and 26,562 during the first quarter of 2010, respectively. Treatment patient cases increased by 18.2% from the corresponding period in 2009. Diagnostic patient cases increased by 100.8% from the corresponding period in 2009.

“We are pleased with our solid financial results for the first quarter despite the usual seasonality factor associated with the Chinese New Year holiday,” said Dr. Jianyu Yang, director, president and chief executive officer of Concord Medical. “In addition, we made good

progress toward our goal of operating at least 200 radiotherapy and diagnostic imaging centers by 2012. We opened one new center in the first quarter, acquired four centers in April, and our first specialty hospital, the Chang’an CMS International Cancer Center, is on track to begin operations in June 2010. Looking forward, we will continue to grow both organically and through acquisitions. On top of the four centers acquired in April, we also expect to open eight to ten centers organically in the second quarter, and will continue to explore additional acquisition targets for 2010.”

Dr. Yang added, “We continue to receive encouraging signals from industry regulators. On May 7, 2010, the Chinese State Council issued a new statement reiterating its intention to enhance the scope and quality of healthcare services by attracting more private investments. As the operator of the largest network of radiotherapy and diagnostic imaging centers in China, we are confident that Concord Medical is well positioned to benefit from the favorable market environment supported by medical reform policies and increasing consumer demand for world-class cancer treatment.”

Mr. Boxun Zhang, Concord Medical’s corporate vice president, commented, “In the first quarter of 2010, we achieved strong top line growth and made good progress toward our full year operational and financial targets. For the rest of the year, we will continue to enhance operational and financial efficiency while supporting our network expansion with our strong financial resources. As a newly listed company, we are also committed to fulfilling the requirements of Sarbanes Oxley Section 404 and we are in the process of reviewing our internal control mechanisms accordingly.”

First Quarter Fiscal 2010 Results

Concord Medical reported total net revenues of RMB76.2 million ($11.2 million) for the first quarter of 2010, representing a 36.6% increase from the corresponding period in 2009, primarily due to patient volume growth from established centers as well as from new centers opened in 2009.

Cost of revenues in the first quarter of 2010 was RMB27.0 million ($4.0 million), a 49.8% increase from the corresponding period in 2009, primarily due to increased depreciation expenses related to new centers opened in 2009.

Gross profit margin in the first quarter of 2010 was 64.5% as compared to 67.6% in the corresponding period in 2009. The marginal decrease was primarily due to new centers opened in the second half of 2009 having lower gross profit margin in their ramp-up periods comparing to established centers.

Operating expenses, consisting of selling expenses and general and administrative expenses, were RMB17.6 million ($2.6 million) in the first quarter of 2010, compared to RMB13.3 million in the previous quarter and RMB7.1 million in the corresponding period in

2009. The increase in operating expenses was mainly due to additional accrued expenses associated with post-IPO professional service charges, such as legal and auditing fees, and share-based compensation expenses, which are amortized through the year using the straight line method.

Operating Income was RMB31.5 million ($4.6 million), representing a 2.9% increase from the corresponding period in 2009. Operating profit excluding share-based compensation expenses (non-GAAP) was RMB34.1 million ($5.0 million), an 11.4% increase from the corresponding period in 2009.

Income tax expense was RMB8.5 million ($1.2 million), compared to an income tax expense of RMB6.7 million in the corresponding period in 2009. The effective tax rate for the first quarter of 2010 was 28.3% as compared to 22.9% in the previous quarter and 23.5% in the corresponding period in 2009. The increase in the effective tax rate was in relation to share-based compensation expenses and professional service expenses paid by off-shore subsidiaries being not directly tax deductable at on-shore entities.

Net income was RMB21.6 million ($3.2 million), representing a 1.2% decrease from the corresponding period in 2009. Both basic and diluted earnings per ADS for the first quarter of 2010 amounted to RMB0.44 ($0.06).

Net income excluding share-based compensation expenses (non-GAAP) was RMB24.2million ($3.5 million), a 10.7% increase from the corresponding period in 2009. Both Basic and diluted earnings per ADS excluding share-based compensation expenses (non-GAAP) for the first quarter of 2010 amounted to RMB0.49 ($0.07).

Adjusted EBITDA (non-GAAP), was RMB57.9 million ($8.5 million) for the first quarter of 2010, representing a 19.8% increase from the corresponding period in 2009.

Capital expenditure for the first quarter of 2010 was RMB81.4 million ($11.9 million). Total depreciation expenses were RMB17.1 million ($2.5 million). In addition, amortization of acquired intangibles was RMB6.7 million ($1.0 million). The Company expects amortization of acquired intangibles to be approximately RMB26.8 million ($3.9 million) in 2010, assuming no additional intangibles are acquired through potential acquisitions.

As of March 31, 2010, the Company had total fixed assets with a net book value of RMB592.3 million ($86.8 million) and cash of RMB993.6 million ($145.6 million).

As of March 31, 2010, the Company had bank credit lines totaling RMB2.1 billion (US$314.2 million).

Accounts receivable was RMB112.5 million ($16.5 million) as of March 31, 2010, similar to RMB111.3 million as of December 31, 2009.

Outlook for Fiscal Year 2010

Taking into consideration the projected contribution from the four recently acquired centers, Concord Medical raises the estimated range of total net revenues for 2010 to RMB367 million to RMB398 million, which would represent a 25.5% to 36.1% increase from 2009.

Also as a result of the recent acquisition, the Company raises its network expansion target to 34 to 39 radiotherapy and diagnostic imaging centers in 2010, and the range of expected total capital expenditures related to these new centers to RMB400 million to RMB450 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 AM on May 27, 2010 U.S. Eastern Time (8 PM on May 27, 2010 Beijing/Hong Kong time).

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

US:		+1 866.730.5766
China:		+ 10.800.152.1490 (North) / 10.800.130.0399 (South)
Hong Kong:		+ 800.96.3844
International:		+1 857.350.1590
Passcode:		87425784

A replay of the conference call may be accessed by phone at the following number until June 3, 2010:

US:		+ 1.888.286.8010
International:		+ 1.617.801.6888
Passcode:		58084651

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 89 centers spanning 37

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. 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.

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.

For investor and media inquiries please contact:

China

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

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

U.S.

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

Concord Medical Services Holdings Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
(in thousand)

		March 31, 2009				December 31, 2009								March 31, 2010
		RMB				RMB				RMB				RMB				US$
ASSETS
Current assets
Cash			294,493				1,037,239				285,702,579				993,597				145,565
Restricted cash, current portion			—				293				2,012,302				593				87
Accounts receivable			97,086				111,328				119,127,052				112,527				16,486
Prepayment and other current assets			56,632				100,484				56,869,100				119,552				17,516
Deferred tax assets, current portion			2,557				3,168				2,775,844				2,788				408
Total current assets			450,768				1,252,512				466,486,877				1,229,057				180,062
Non-current assets
Property, plant and equipment, net			371,109				584,869				557,432,618				592,265				86,769
Goodwill			300,163				300,163				300,163,213				300,163				43,975
Acquired intangible assets, net			174,963				155,345				161,450,046				148,641				21,776
Deposits for non-current assets			193,866				115,323				147,850,620				144,480				21,167
Deferred tax assets, non-current portion			12,479				19,700				12,647,625				20,531				3,008
Net investment in financing lease							—								23,176				3,395
Other non-current assets			10,109				11,532				10,782,461				50,149				7,347
Restricted cash, non-current portion			2144				4,421				5,233,292				6,564				962
Total non-current assets			1,064,833				1,191,353				1,206,766,678				1,285,969				188,399
Total assets			1,515,601				2,443,865				1,673,253,555				2,515,026				368,461
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term bank borrowing			20,800				11,500				30,000,000				27,000				3,956
Long-term bank borrowings, current portion			36,300				35,647				44,879,927				31,424				4,604
Accounts payable			9,667				9,759				9,743,599				9,822				1,439
Accrual for purchase of property, plant and equipment			8,641				12,043				25,838,700				10,120				1,483
Obligations under capital leases, current portion			3,993				3,582				3,581,924				3,582				525
Accrued expenses and other liabilities			41,397				48,663				44,221,091				47,486				6,957
Income tax payable			5,570				14,642				22,863,907				14,996				2,197
Deferred revenue, current portion			12,351				10,401				13,394,781				12,012				1,760
Amounts due to related parties			3,607				1,546				1,606,809				1,617				237
Total current liabilities			142,326				147,783				238,057,822				158,059				23,158
Non-current liabilities
Long-term bank borrowings, non-current portion			62,440				102,755				104,911,770				132,009				19,340
Deferred revenue, non-current portion			6,033				5,188				5,469,942				12,964				1,899
Obligations under capitalized leases, non-current portion			9,963				8,074				8,719,115				7,412				1,086
Lease deposit			3,233				1,000				3,269,250				1,000				147
Deferred tax liabilities, non-current portion			19,333				25,317				18,189,281				25,920				3,797
Total non-current liabilities			101,002				142,334				140,559,358				179,304				26,269
Total liabilities			243,328				290,117				378,617,180				337,363				49,427
Commitments and contingencies
Shareholders’ equity
Ordinary shares			55				108				55,444				108				16
Additional paid-in capital			1,113,177				2,671,910				1,113,204,368				2,674,496				391,822
Accumulated other comprehensive loss			(4,682	)			(3,987	)			(4,038,051	)			(4,237	)			(621	)
Accumulated deficit			(543,271	)			(514,283	)			(517,638,930	)			(492,704	)			(72,183	)
Total shareholders’ equity			565,279				2,153,748				591,582,831				2,177,663				319,034
Total liabilities and shareholders’ equity		#REF!					2,443,865				1,673,253,552				2,515,026				368,461

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

		For The Three Months Ended
		March 31, 2009				September 30, 2009				March 31, 2010
		RMB				RMB				RMB				US$
Revenue, net
Lease and management services			47,349				70,892				71,707				10,505
Management services			8,323				6,689				2,721				399
Other, net			79				408				1,753				257
Total net revenues			55,751				77,989				76,181				11,161
Cost of revenues
Lease and management services			(11,171	)			(15,703	)			(20,336	)			(2,979	)
Amortisation of acquired intangibles			(6,882	)			(6,624	)			(6,704	)			(982	)
Management services			(3	)			(2	)			(1	)			(0	)
Total cost of revenues			(18,056	)			(22,329	)			(27,041	)			(3,962	)
Gross profit			37,695				55,660				49,140				7,199
Operating expenses
Selling expenses			(1,316	)			(1,476	)			(2,093	)			(307	)
General and administrative expenses			(5,754	)			(8,211	)			(15,529	)			(2,275	)
Operating income			30,625				45,973				31,518				4,617
Interest expense			(1,638	)			(1,671	)			(1,980	)			(290	)
Foreign exchange loss			(663	)			(97	)			(776	)			(114	)
Gain from disposal of equipment			—				—				344				50
Interest income			224				176				975				143
Income before income taxes			28,548				44,381				30,081				4,407
Income tax expense			(6,709	)			(10,199	)			(8,503	)			(1,246	)
Net income			21,839				34,182				21,578				3,161
Accretion of Series A contingently redeemable convertible preferred shares			(7,951	)			(7,948	)			—				—
Accretion of Series B contingently redeemable convertible preferred shares			(12,796	)			(12,791	)			—				—
Net income attributable to ordinary shareholders			1,092				13,443				21,578				3,161
Earnings per ADS
Basic /Diluted			0.05				0.57				0.44				0.06
Weighted average number of ADS outstanding:
Basic /Diluted			23,476,033				23,476,033				49,151,833				49,151,833

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

		Twelve months ended				Twelve months ended
		December 31, 2008*				December 31, 2009
		RMB				RMB				US$
Revenue, net of business tax, value-added tax and related surcharges
Lease and management services			155,061				266,162				38,993
management services			12,677				22,739				3,331
Other, net			4,051				3,535				518
Total net revenues			171,789				292,436				42,842
Cost of revenues
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(loss)			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) income			(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
earnings (Loss) per ADS
Basic/Diluted			(8.63	)			0.62				0.09
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 Mar 31, 2009												Three months ended March 31, 2010												Three months ended December 31, 2009												Twelve months ended December 31, 2008												Twelve months ended December 31, 2009
		GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Results				Adjustment				Non-GAAP Results
Operating profit			30,625				—				30,625				31,518				2,586				34,104				48,413				1,007				49,420				101,826				4,215				106,041				167,379				1,007				168,386
Net income			21,839				—				21,839				21,578				2,586				24,164				35,870				1,007				36,877				79,067				4,215				83,282				124,827				1,007				125,834
Net income attributable to ordinary shareholders
Basic (Loss) earning per ADS			0.05				—				0.05				0.44				0.05				0.49				0.68				0.03				0.71				(8.63	)			0.07				(8.56	)			0.62				0.02				0.64
Diluted (Loss) earning per ADS			0.05				—				0.05				0.44				0.05				0.49				0.68				0.25				0.93				(8.63	)			0.07				(8.56	)			0.62				0.02				0.64

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

		Three months ended				Three months ended				Three months ended				Twelve months ended				Twelve months ended
		March 31, 2009				March 31, 2010				December 31, 2009				December 31, 2009				December 31, 2008
Net income			21,839				21,578				35,870				124,827				79,069
Interest expense, net			1,414				1,005				1,886				5,943				7,025
Income taxes expense (benefit)			6,709				8,503				10,662				36,396				23,335
Depreciation and amortization			17,753				23,842				22,685				78,174				38,126
Share-based compensation			—				2,586				1,007				1,007				4,215
Other adjustments			663				432				(5	)			213				(7,603	)
Adjusted EBITDA			48,378				57,946				72,105				246,560				144,167

		2008.12.31												2009.12.31								2009Q1				2010 Q1				2009Q4								2008Q4
Numerator
Net income (loss) attributable to ordinary shareholders			(496,037	)											46,418								1,092				21,579				19,695								(273,767	)
Less:
Undistributed (loss) earnings allocated to participating preferred shares
Net income (loss) allocated to ordinary shares for computing net (loss) income per ordinary share — basic			(496,037	)											46,418								1,092				21,579				19,695								(273,767	)
Add: Interst on the convertible notes			—
Accretion of contingently redeemable convertible preferred shares — Series A			253,317												—								7,951				—
Accretion of cumulative dividends — Series A			17,026												30,050																6,199								8057
Accretion of contingently redeemable convertible preferred shares — Series B			295,019												—								12,796				—
Accretion of cumulative dividends — Series B			9,744												48,359								—								9,976								304,763
Net income (loss) allocated to ordinary shares for computing net (loss) income per ordinary share - diluted			79,069												124,827								21,839				21,579				35,870								39,053
Denominator
Weighted average number of ordinary shares outstanding used in calculating basic (loss) earnings per share			57,481,400			NB1-2008									74,648,779			NB1-2009					70,428,100				147,455,500				87,173,187			NB1-2009					70,428,100
Add:
Dilutive effect of share options			10,163,844												—			NB2-2009													—			NB2-2009
Convertible notes			4,474,860			NB2-2008
Covertible redeemable Series A Preferred shares															16,724,655			NB3-2009					17,694,200				—				13,847,635			NB3-2009					17,694,200
Covertible redeemable Series B Preferred shares															22,054,668			NB4-2009					23,333,200				—				18,260,765			NB4-2009					17,753,522
Weighted average number of ordinary shares outstanding used in calculating diluted (loss) earnings per share			72,120,104												113,428,103								111,455,500				147,455,500				119,281,587								105,875,822
Basic earning per ADS			(8.63	)											0.62								0.05				0.44				0.68								(3.89	)
Diluted earning per ADS			(8.63	)											0.62			anti-dilutive					0.05				0.44				0.68								(3.89	)
NB1-2008
										Duration
Beginning			50,000,000			1-Jan					168
Redesignation			(756,500	)		18-Jun					104
Exercise of option			21,184,600			18-Aug					43
			70,428,100			30-Sep									273
NB2-2008
Terms of the contingent conversion option do not permit the Company to compute the number of shares that the holder would receive if the contingent event occurs and the conversion price is adjusted, an issuer should wait until the contingent event occurs and then compute the resulting number of shares that would be received pursuant to the new conversion price.
Because the conversion ratio is contingent on the # of Series A Shares to be issued in the future. So there is no reference to determine the # of ordinary shares to be issued.
Weighted no.			60,621,730

NB1-2009
Movement of ordinary shares										Duration																												Duration
Beginning			70,428,100				1/1/2009				345																147,455,500				70,428,100				10/1/2009				72
Initial public offering of ordinary shares			36,000,000				12/11/2009				20																				36,000,000				12/11/2009				20
Conversion of Series A contingently redeemable convertible preferred shares to ordinary shares			17,694,200				12/11/2009				20																				17,694,200				12/11/2009				20
Conversion of Series B contingently redeemable convertible preferred shares to ordinary shares			23,333,200				12/11/2009				20																				23,333,200				12/11/2009				20
Ending			147,455,500				12/31/2009				365																147,455,500				147,455,500				12/31/2009				92
Weighted average number of ordinary shares			74,648,779																								147,455,500				87,173,187
NB2-2009
On November 27,2009, the comapny granted options to purchase an aggregate of 4,765,800 ordinary shares under its 2008 share incentive plan. As the marketing price since then to December 31,2009 was lower than the exercie price, the options effect on calculating dilutive EPS is anti-dilutive.
NB3-2009
										Duration
Series A issued at April 10, 2008			89,517			10-Apr					265
Series A issued at July 31, 2008			87,425			31-Jul					153
			176,942			31-Dec
Weighted no.			101,638
NB4-2009
										Duration
Series B issued at October 22, 2008			233,332			22-Oct					70
			233,332			31-Dec
Weighted no.			44,749
NB3-2009
										Duration																												Duration
Pre-conversion basis:							1/1/2009																												10/1/2009
Conversion of Series A contingently redeemable convertible preferred shares to ordinary shares			17,694,200				12/11/2009				345																				17,694,200				12/11/2009				72
							12/31/2009				365																								12/31/2009				92
			16,724,655																												13,847,635
Conversion of Series B contingently redeemable convertible preferred shares to ordinary shares			23,333,200				12/11/2009				345																				23,333,200				12/11/2009				72
							12/31/2009				365																								12/31/2009				92
			22,054,668																												18,260,765