Concord Medical Reports Financial Results for the First Half of 2025

Core Viewpoint - Concord Medical Services Holdings Limited reported its unaudited consolidated financial results for the first half of 2025, highlighting a decrease in total net revenues but improvements in gross loss and operational efficiency due to the commencement of proton therapy operations [1][8][9]. Financial Results - Total net revenues for the first half of 2025 were RMB200.6 million (US$28.0 million), an 8.3% decrease from RMB218.8 million in the same period last year [8]. - Net revenues from the hospital business increased by 11.1% to RMB153.0 million (US$21.4 million) due to the launch of proton therapy operations [9]. - Net revenues from the network business decreased by 41.3% to RMB47.6 million (US$6.6 million) due to reduced demand for medical equipment and software [10]. - The gross loss was RMB4.3 million (US$0.6 million), significantly improved from a gross loss of RMB41.6 million in the first half of 2024, with a gross loss margin of 2.1% compared to 19.0% the previous year [8][13]. - Net loss attributable to ordinary shareholders was RMB27.1 million (US$3.8 million), a substantial reduction from RMB172.3 million in the same period last year [8]. Operational Highlights - The Guangzhou Concord Cancer Hospital, as the first proton therapy center in South mainland China, has developed specialized treatment protocols for various malignancies, demonstrating significant tumor regression in nasopharyngeal carcinoma patients [6][7]. - The hospital achieved successful functional preservation in central nervous system tumors, even with extensive irradiation fields [6]. - The youngest patient treated with proton therapy was just over one year old, showcasing the hospital's capability in pediatric care [6]. Cost Management - Cost of revenues for the hospital business decreased by 9.6% to RMB157.2 million (US$21.9 million), attributed to improved operational efficiency and reduced costs [11]. - Cost of revenues for the network business decreased by 44.8% to RMB47.7 million (US$6.7 million), reflecting the decline in revenue from medical equipment and software sales [12]. Operating Expenses - Selling expenses were RMB21.0 million (US$2.9 million), down from RMB25.0 million in the first half of 2024, representing 10.5% of net revenues [14]. - General and administrative expenses decreased to RMB119.4 million (US$16.7 million) from RMB131.2 million, primarily due to reduced staff costs and listing expenses [15]. Capital Expenditures - Capital expenditures for the first half of 2025 were RMB100.6 million (US$14.0 million), a decrease from RMB168.4 million in the same period last year, mainly due to reduced deposits for equipment and construction fees [16]. Debt Position - As of June 30, 2025, the company had bank loans and other borrowings totaling RMB3.6 billion (US$508.4 million) [18].