Concord Medical Reports Financial Results for the First Half of 2024
Concord Medical Services Holdings (NYSE: CCM) reported its financial results for the first half of 2024. Total net revenues decreased by 23.1% to RMB218.8 million (US$30.1 million) compared to the same period last year. The company experienced a gross loss of RMB41.6 million (US$5.7 million) and a net loss attributable to ordinary shareholders of RMB172.3 million (US$23.7 million). The hospital business saw a 13.2% decrease in net revenues, while the network business experienced a 35.6% decrease. Despite these challenges, Concord Medical's Guangzhou Hospital obtained a license for proton equipment, which is expected to boost future revenue. The company remains optimistic about its growth potential in the oncology care sector.
Concord Medical Services Holdings (NYSE: CCM) ha riportato i suoi risultati finanziari per il primo semestre del 2024. Il fatturato netto totale è diminuito del 23,1% a RMB218,8 milioni (US$30,1 milioni) rispetto allo stesso periodo dell'anno scorso. L'azienda ha subito una perdita lorda di RMB41,6 milioni (US$5,7 milioni) e una perdita netta attribuibile agli azionisti ordinari di RMB172,3 milioni (US$23,7 milioni). Il settore ospedaliero ha registrato un calo del 13,2% nei ricavi netti, mentre il settore della rete ha subito una diminuzione del 35,6%. Nonostante queste sfide, l'ospedale di Concord Medical a Guangzhou ha ottenuto una licenza per l'attrezzatura a protoni, che si prevede possa aumentare i ricavi futuri. L'azienda rimane ottimista riguardo al suo potenziale di crescita nel settore della cura oncologica.
Concord Medical Services Holdings (NYSE: CCM) informó sus resultados financieros para la primera mitad de 2024. Los ingresos totales netos disminuyeron un 23,1% a RMB218,8 millones (US$30,1 millones) en comparación con el mismo período del año pasado. La empresa experimentó una pérdida bruta de RMB41,6 millones (US$5,7 millones) y una pérdida neta atribuible a los accionistas ordinarios de RMB172,3 millones (US$23,7 millones). El negocio hospitalario vio una disminución del 13,2% en los ingresos netos, mientras que el negocio de la red experimentó una disminución del 35,6%. A pesar de estos desafíos, el Hospital de Guangzhou de Concord Medical obtuvo una licencia para equipo de protones, lo que se espera impulse los ingresos futuros. La empresa se mantiene optimista sobre su potencial de crecimiento en el sector del cuidado oncológico.
Concord Medical Services Holdings (NYSE: CCM)는 2024년 상반기 재무 결과를 발표했습니다. 총 순수익은 RMB218.8백만(US$30.1백만)으로 23.1% 감소했습니다 작년 같은 기간과 비교하여. 회사는 RMB41.6백만(US$5.7백만)의 총 손실과 RMB172.3백만(US$23.7백만)의 보통주주에게 귀속되는 순손실을 겪었습니다. 병원 사업은 순수익이 13.2% 감소했으며, 네트워크 사업은 35.6% 감소했습니다. 이러한 도전에도 불구하고, Concord Medical의 광저우 병원은 양성자 장비에 대한 라이센스를 획득하여 향후 수익을 증가시킬 것으로 기대됩니다. 회사는 온콜로지 케어 분야에서의 성장 가능성에 대해 낙관적입니다.
Concord Medical Services Holdings (NYSE: CCM) a publié ses résultats financiers pour le premier semestre 2024. Les revenus nets totaux ont diminué de 23,1 % pour atteindre 218,8 millions de RMB (30,1 millions de dollars américains) par rapport à la même période l'an dernier. L'entreprise a connu une perte brute de 41,6 millions de RMB (5,7 millions de dollars américains) et une perte nette attribuable aux actionnaires ordinaires de 172,3 millions de RMB (23,7 millions de dollars américains). L'activité hospitalière a enregistré une baisse de 13,2 % de ses revenus nets, tandis que l'activité réseau a connu une diminution de 35,6 %. Malgré ces défis, l'hôpital de Guangzhou de Concord Medical a obtenu une licence pour du matériel de protons, ce qui devrait stimuler les revenus futurs. L'entreprise reste optimiste quant à son potentiel de croissance dans le secteur des soins oncologiques.
Concord Medical Services Holdings (NYSE: CCM) hat seine finanziellen Ergebnisse für das erste Halbjahr 2024 veröffentlicht. Der gesamte Nettoumsatz ging um 23,1 % auf RMB218,8 Millionen (US$30,1 Millionen) zurück im Vergleich zum selben Zeitraum des Vorjahres. Das Unternehmen verzeichnete einen Bruttoverlust von RMB41,6 Millionen (US$5,7 Millionen) und einen Nettoverlust von RMB172,3 Millionen (US$23,7 Millionen), der den ordentlichen Aktionären zuzurechnen ist. Das Krankenhausgeschäft sah einen Rückgang der Nettoumsätze um 13,2 %, während das Netzwerkgeschäft einen Rückgang von 35,6 % erlebte. Trotz dieser Herausforderungen erhielt das Guangzhou Krankenhaus von Concord Medical eine Lizenz für Protonenanlagen, die voraussichtlich die zukünftigen Einnahmen steigern wird. Das Unternehmen bleibt optimistisch hinsichtlich seines Wachstumspotenzials im Bereich der onkologischen Versorgung.
- Guangzhou Concord Cancer Center obtained a large medical equipment procurement license for proton equipment
- Proton therapy services are expected to significantly boost revenue upon implementation
- The company is focusing on improving operational efficiency and reducing costs
- Total net revenues decreased by 23.1% to RMB218.8 million (US$30.1 million)
- Gross loss increased to RMB41.6 million (US$5.7 million)
- Net loss attributable to ordinary shareholders widened to RMB172.3 million (US$23.7 million)
- Hospital business net revenues decreased by 13.2%
- Network business net revenues decreased by 35.6%
- Gross loss margin increased to 19.0% from 13.2% in the same period last year
- General and administrative expenses as a percentage of net revenues increased to 59.9% from 52.8%
Insights
Concord Medical's H1 2024 results show significant challenges. Total net revenues decreased 23.1% year-over-year to
The hospital business saw a
While the company is making efforts to improve operational efficiency, the significant increase in capital expenditures to
2024 First Half Highlights
- Total net revenues were
RMB218.8 million (US ) in the first half of 2024, representing a$30.1 million 23.1% decrease from total net revenues ofRMB284.5 million in the same period last year. Total net revenues included the net revenues from the hospital business ofRMB137.8 million (US ) and the net revenues from the network business of$19.0 million RMB81.0 million (US ).$11.1 million - Gross loss was
RMB41.6 million (US ) in the first half of 2024, compared to the gross loss of$5.7 million RMB37.4 million in the first half of 2023. The gross loss margin was19.0% for the first half of 2024, compared to13.2% for the same period last year. - Net loss attributable to ordinary shareholders in the first half of 2024 was
RMB172.3 million (US ), compared to$23.7 million RMB91.0 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 2024 were both
RMB1.31 (US ), compared to$0.18 RMB0.69 in the same period last year. - Non-GAAP[2] net loss in the first half of 2024 was
RMB328.7 million (US ), compared to non-GAAP net loss of$45.2 million RMB210.3 million in the same period last year. Non-GAAP basic and diluted loss per share for Class A and Class B ordinary shares in the first half of 2024 were bothRMB1.31 (US ), compared to$0.18 RMB0.69 in the same period last year. - Adjusted EBITDA[3] (non-GAAP) was negative
RMB148.0 million (US ) in the first half of 2024, compared to negative$20.4 million RMB148.4 million in the same period last year.
[1] This announcement contains translations of certain RMB amounts into |
[2] Non-GAAP net loss and non-GAAP basic and diluted loss per share for Class A and Class B ordinary shares are defined as their most directly comparable GAAP measures excluding the impact of share-based compensation expenses. |
[3] Adjusted EBITDA is defined as net income/(loss) plus interest expenses, net, income tax expenses, depreciation and amortization, share-based compensation expenses 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, "In the past few years, Concord Medical has been actively building a solid foundation for its business development, as well as looking to the future by profoundly enhancing its expertise in oncology care and strengthening the competitiveness of its international diagnosis and treatment services. Concurrently, Concord Medical has been continually exploring the untapped potential of its network business, striving for growth and expansion.
We are delighted to announce that, Guangzhou Concord Cancer Center ("Guangzhou Hospital"), a PRC subsidiary of our Company offering comprehensive cancer care services, has obtained the large medical equipment procurement license for its proton equipment, as announced by the National Health Commission of the PRC on September 14, 2024. Proton therapy services stand as a pivotal segment within Concord Medical's hospital business, anticipated to deliver a significant boost to our revenue base upon its successful implementation. This endeavor will concurrently elevate Guangzhou Hospital's profile and reputation. Looking ahead, we maintain a positive outlook on the growth potential of this sector, expecting continued development and expansion through 2025 and beyond."
2024 First Half Financial Results
Net Revenues
Hospital Business
Net revenues from the hospital business were
Network Business
Net revenues from the network business were
Cost of Revenues
Hospital Business
Cost of revenues of the hospital business in the first half of 2024 was
Network Business
Cost of revenues of the network business was
Gross Loss and Gross Loss Margin
Hospital Business
Gross loss from the hospital business was
Network Business
Gross loss from the network business was
Operating Expenses
Selling expenses were
General and administrative expenses were
Capital Expenditures
Comparing to
Accounts Receivable
As of June 30, 2024, accounts receivable were
Bank Loans and Other Borrowings
As of June 30, 2024, the Company had bank loans and other borrowings totaling
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 expenses, such as non-GAAP net loss and non-GAAP basic and diluted loss per share for Class A and Class B ordinary shares. The Company believes excluding share-based compensation expenses from its 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 current cash earnings. Concord Medical also believes these non-GAAP measures excluding share-based compensation expenses 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 plus interest expenses, net, income tax expenses, depreciation and amortization, share-based compensation expenses 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
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 | ||||||
December 31, | ||||||
2023 | June 30, 2024 | |||||
RMB | RMB | US$ | ||||
(Audited) | (Unaudited) | (Unaudited) | ||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | 58,139 | 115,667 | 15,916 | |||
Short-term investment | - | 211,238 | 29,067 | |||
Restricted cash, current portion | 32,280 | 10,116 | 1,392 | |||
Accounts receivable, net | 73,496 | 78,222 | 10,764 | |||
Prepayments and other current assets, net | 412,946 | 574,330 | 79,030 | |||
Inventories | 40,347 | 39,832 | 5,481 | |||
Total current assets | 617,208 | 1,029,405 | 141,650 | |||
Non-current assets | ||||||
Property, plant and equipment, net | 3,546,873 | 3,555,860 | 489,303 | |||
Right-of-use assets, net | 580,365 | 538,514 | 74,102 | |||
Goodwill | 575,427 | 572,216 | 78,740 | |||
Intangible assets, net | 323,287 | 300,569 | 41,360 | |||
Deposits for non-current assets | 4,646 | 139,085 | 19,139 | |||
Long-term investments | 394,711 | 480,873 | 66,170 | |||
Other non-current assets | 11,426 | 6,171 | 849 | |||
Total non-current assets | 5,436,735 | 5,593,288 | 769,663 | |||
Total assets | 6,053,943 | 6,622,693 | 911,313 | |||
LIABILITIES AND EQUITY | ||||||
Current liabilities | ||||||
Accounts payable | 129,236 | 127,334 | 17,522 | |||
Accrued expenses and other liabilities | 731,793 | 740,827 | 101,940 | |||
Income tax payable | 1,522 | 1,581 | 218 | |||
Operating lease liabilities, current | 46,492 | 35,700 | 4,912 | |||
Short-term bank and other borrowings | 319,625 | 363,446 | 50,012 | |||
Long-term bank and other borrowings, current portion | 722,563 | 793,760 | 109,225 | |||
Derivative liability | 163 | 109,632 | 15,086 | |||
Total current liabilities | 1,951,394 | 2,172,280 | 298,915 | |||
Non-current liabilities | ||||||
Long-term bank and other borrowings, non-current portion | 1,994,014 | 2,211,862 | 304,362 | |||
Deferred tax liabilities | 99,538 | 92,807 | 12,771 | |||
Operating lease liabilities, non-current | 193,007 | 159,461 | 21,943 | |||
Other long-term liabilities | 69,003 | 65,397 | 9,000 | |||
Total non-current liabilities | 2,355,562 | 2,529,527 | 348,076 | |||
Total liabilities |
4,306,956 |
4,701,807 |
646,991 | |||
EQUITY | ||||||
Class A ordinary shares | 68 | 68 | 9 | |||
Class B ordinary shares | 37 | 37 | 5 | |||
Treasury stock | (7) | (7) | (1) | |||
Additional paid-in capital | 2,007,965 | 2,169,695 | 298,560 | |||
Accumulated other comprehensive loss | (65,419) | (71,694) | (9,865) | |||
Accumulated deficit | (4,064,589) | (4,236,847) | (583,010) | |||
Total Concord Medical Services Holdings Limited shareholders' deficit | (2,121,945) | (2,138,748) | (294,302) | |||
Noncontrolling interests | 3,868,932 | 4,059,634 | 558,624 | |||
Total equity | 1,746,987 | 1,920,886 | 264,322 | |||
Total liabilities and equity | 6,053,943 | 6,622,693 | 911,313 | |||
Concord Medical Services Holdings Co., Ltd. | |||||
Consolidated Profit & Loss | |||||
(in thousands, except for number of shares and per share data) | |||||
June 30, | June 30, 2024 | ||||
RMB | RMB | US$ | |||
(Unaudited) | (Unaudited) | (Unaudited) | |||
Revenues, net of business tax, value-added tax and related | |||||
Hospital | 158,707 | 137,772 | 18,958 | ||
Network | 125,806 | 81,038 | 11,151 | ||
Total net revenues | 284,513 | 218,810 | 30,109 | ||
Cost of revenues: | |||||
Hospital | (204,433) | (173,963) | (23,938) | ||
Network | (117,503) | (86,443) | (11,895) | ||
Total cost of revenues | (321,936) | (260,406) | (35,833) | ||
Gross loss | (37,423) | (41,596) | (5,724) | ||
Operating expenses: | |||||
Selling expenses | (26,362) | (24,975) | (3,437) | ||
General and administrative expenses | (150,240) | (131,173) | (18,050) | ||
Operating loss | (214,025) | (197,744) | (27,211) | ||
Interest expense | (84,374) | (68,668) | (9,449) | ||
Foreign exchange loss, net | (2,444) | (30,269) | (4,165) | ||
Gain on disposal of long-lived equipment | 62 | - | - | ||
Interest income | 5,800 | 5,990 | 824 | ||
Change in fair value of derivative liability | - | (108,777) | (14,968) | ||
Income from equity method investments | 10,099 | 6,070 | 835 | ||
Gain on disposal of subsidiaries | - | 47,997 | 6,605 | ||
Other income, net | 13,623 | 1,388 | 191 | ||
Gain on disposal of equity method investment | 37,498 | - | - | ||
Changes in fair value of short-term investments | - | 6,631 | 912 | ||
Loss before income tax | (233,761) | (337,382) | (46,426) | ||
Income tax expenses | 23,417 | 8,674 | 1,194 | ||
Net loss | (210,344) | (328,708) | (45,232) | ||
Net loss attributable to noncontrolling interests | (119,359) | (156,450) | (21,528) | ||
Net loss attributable to Concord Medical Services Holdings | (90,985) | (172,258) | (23,704) | ||
Loss per share for Class A and Class B ordinary shares | |||||
Basic | (0.69) | (1.31) | (0.18) | ||
Diluted | (0.69) | (1.31) | (0.18) | ||
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 of tax of nil | (17,371) | (6,273) | (863) | ||
Total other comprehensive loss, net of tax | (17,371) | (6,273) | (863) | ||
Comprehensive loss | (227,715) | (334,981) | (46,095) | ||
Comprehensive loss attributable to noncontrolling interests | (119,359) | (156,450) | (21,528) | ||
Comprehensive loss attributable to Concord Medical Services | (108,356) | (178,531) | (24,567) | ||
Reconciliations of non-GAAP results of operations measures to the | ||||||||||||
(in RMB thousands, except per share data unaudited) | ||||||||||||
For the six months ended | For the six months ended | |||||||||||
June 30, 2023 | June 30, 2024 | |||||||||||
Non- | Non- | |||||||||||
GAAP | GAAP | GAAP | GAAP | |||||||||
Measure | Adjustment | Measure | Measure | Adjustment | Measure | |||||||
Operating loss | (214,025) | - | (214,025) | (197,744) | - | (197,744) | ||||||
Net loss | (210,344) | - | (210,344) | (328,708) | - | (328,708) | ||||||
Basic loss per share for Class B ordinary | (0.69) | - | (0.69) | (1.31) | - | (1.31) | ||||||
Diluted loss per share Class B ordinary | (0.69) | - | (0.69) | (1.31) | - | (1.31) | ||||||
Reconciliation from net income to adjusted EBITDA(*) (in RMB | |||
For the six months ended | For the six months ended | ||
June 30, 2023 | June 30, 2024 | ||
Net loss | (210,344) | (328,708) | |
Interest expenses, net | 78,574 | 62,678 | |
Income tax expenses | (23,417) | (8,674) | |
Depreciation and amortization | 55,537 | 43,654 | |
Share-based compensation | - | - | |
Other adjustments | (48,739) | 83,030 | |
Adjusted EBITDA | (148,389) | (148,020) | |
EBITDA margin | -52 % | -68 % | |
(*) Definition of adjusted EBITDA: Adjusted EBITDA is defined as net loss plus interest expenses, net, income tax expenses, | |||
View original content:https://www.prnewswire.com/news-releases/concord-medical-reports-financial-results-for-the-first-half-of-2024-302260885.html
SOURCE Concord Medical Services Holdings Limited
FAQ
What was Concord Medical's (CCM) total net revenue for the first half of 2024?
How did Concord Medical's (CCM) hospital business perform in the first half of 2024?
What was Concord Medical's (CCM) net loss for the first half of 2024?
Did Concord Medical (CCM) achieve any significant milestones in 2024?
