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
- Total net revenues were RMB200.6 million (US$28.0 million) in the first half of 2025, representing a 8.3% decrease from total net revenues of RMB218.8 million in the same period last year. Total net revenues included the net revenues from the hospital business of RMB153.0 million (US$21.4 million) and the net revenues from the network business of RMB47.6 million (US$6.6 million).
- Gross loss was RMB4.3 million (US$0.6 million) in the first half of 2025, compared to the gross loss of RMB41.6 million in the first half of 2024. The gross loss margin was 2.1% for the first half of 2025, compared to 19.0% for the same period last year.
- Net loss attributable to ordinary shareholders in the first half of 2025 was RMB27.1 million (US$3.8 million), compared to RMB172.3 million in the same period last year.
- Basic and diluted loss per share for Class A and Class B ordinary shares in the first half of 2025 were both RMB0.21 (US$0.03), compared to RMB1.31 in the same period last year.
- Adjusted EBITDA[2] was negative RMB62.2 million (US$8.7 million) in the first half of 2025, compared to negative RMB148.0 million in the same period last year.
[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 | RMB | US$ | |||||||||
(Audited) | (Unaudited) | (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 | 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 | 68 | 68 | 10 | ||||||||
Class B ordinary shares | 37 | 37 | 5 | ||||||||
Treasury stock | (7) | (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' | (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 | RMB | US$ | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Revenues, net of business tax, value-added tax and related | |||||||||||
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 | (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 | |||||||||||
Basic | 131,053,858 | 131,053,858 | 131,053,858 | ||||||||
Diluted | 131,053,858 | 131,053,858 | 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 | (178,531) | (20,190) | (2,818) | ||||||||
Reconciliation from net income to adjusted EBITDA(*) (in RMB thousands, unaudited) | |||||||
For the six months ended | 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 | |||||||
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