Concord Medical Reports Financial Results for the First Half of 2025

Rhea-AI Summary

Concord Medical (NYSE:CCM), a Chinese cancer treatment healthcare provider, reported its H1 2025 financial results showing mixed performance. Total net revenues decreased 8.3% to RMB200.6 million (US$28.0 million), with hospital business revenues increasing 11.1% to RMB153.0 million and network business revenues declining 41.3% to RMB47.6 million.

The company significantly reduced its losses, with net loss attributable to shareholders improving to RMB27.1 million (US$3.8 million) from RMB172.3 million year-over-year. Gross loss margin improved to 2.1% from 19.0%. The improvement was largely driven by the commencement of proton therapy operations at Guangzhou Concord Cancer Hospital and enhanced operational efficiency.

As of June 30, 2025, CCM maintained bank loans and borrowings of RMB3.6 billion (US$508.4 million), while capital expenditures decreased to RMB100.6 million from RMB168.4 million year-over-year.

Positive

• Net loss significantly improved to RMB27.1 million from RMB172.3 million year-over-year
• Hospital business revenue increased 11.1% due to new proton therapy operations
• Gross loss margin improved substantially to 2.1% from 19.0% year-over-year
• General and administrative expenses decreased due to improved operational efficiency
• Capital expenditures reduced by 40.3% to RMB100.6 million

Negative

• Total net revenues declined 8.3% to RMB200.6 million
• Network business revenue dropped 41.3% due to decreased demand
• Company still operating at a gross loss of RMB4.3 million
• Significant debt burden with RMB3.6 billion in bank loans and borrowings

Insights

Healthcare Financial Analyst

Concord Medical's H1 2025 shows narrowing losses and improving efficiency despite revenue decline, with proton therapy operations showing promise.

Concord Medical's financial performance for H1 2025 presents a mixed picture with encouraging signs of operational improvement despite ongoing challenges. While total revenue declined by 8.3% to RMB200.6 million, the company significantly narrowed its gross loss to just RMB4.3 million from RMB41.6 million in the previous year, reducing the gross loss margin from 19.0% to 2.1%.

The hospital business showed positive momentum with an 11.1% increase in revenue to RMB153.0 million, driven by the commencement of proton therapy operations at Guangzhou Concord Cancer Hospital. This growth was counterbalanced by a sharp 41.3% decline in the network business revenue to RMB47.6 million, attributed to delayed business demand in the current macroeconomic environment and a strategic shift away from operating leases.

Most notably, the company reduced its net loss attributable to shareholders by 84.3%, from RMB172.3 million to RMB27.1 million. This substantial improvement resulted from multiple efficiency initiatives, including better human resource utilization, reduced consumables costs, and lower maintenance expenses. The adjusted EBITDA, while still negative at RMB62.2 million, shows a 58% improvement from the previous year's RMB148.0 million negative figure.

The company's disciplined approach to capital expenditure, which decreased from RMB168.4 million to RMB100.6 million, reflects a more cautious investment strategy. However, with total debt of RMB3.6 billion, financial leverage remains a significant consideration for investors.

While Concord Medical continues to operate at a loss, the substantial narrowing of this loss and the improving operational metrics suggest the company is making progress toward financial sustainability, particularly as its proton therapy operations mature. The strategic focus on specialized cancer treatments appears to be yielding clinical benefits, which could translate to improved financial performance if the company can continue to scale these services while maintaining cost discipline.

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' 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				RMB				US$
		(Unaudited)				(Unaudited)				(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				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 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				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.

 

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SOURCE Concord Medical Services Holdings Limited

FAQ

What were Concord Medical's (CCM) key financial results for H1 2025?

CCM reported total revenues of RMB200.6 million (US$28.0 million), an 8.3% decrease YoY, with a net loss of RMB27.1 million, improved from RMB172.3 million loss in H1 2024.

How did CCM's hospital business perform in H1 2025?

The hospital business revenue increased 11.1% to RMB153.0 million, driven by the commencement of proton therapy operations at Guangzhou Concord Cancer Hospital.

What caused the decline in CCM's network business revenue?

Network business revenue fell 41.3% to RMB47.6 million due to decreased demand for medical equipment and software in the current macroeconomic environment and reduced operating lease revenue.

How much debt does Concord Medical (CCM) have as of June 2025?

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

What improvements did CCM show in profitability for H1 2025?

CCM improved its gross loss margin to 2.1% from 19.0% year-over-year, and reduced net loss to RMB27.1 million from RMB172.3 million through enhanced operational efficiency.