BEIJING, June 18, 2012 /PRNewswire-Asia-FirstCall/ -- Concord Medical Services Holdings Limited ("Concord Medical" or the "Company") (NYSE: CCM), a leading specialty hospital management solution provider and operator of the largest network of radiotherapy and diagnostic imaging centers in China, announced today that it has closed the acquisition of 52% equity ownership in Chang'an Hospital, a leading non-public general hospital located in Xi'an, Shaanxi Province.
The acquisition will help the Company become a leading hospital management group in China, with over 1000 hospital beds and 130 radiotherapy and diagnostic centers nationwide. The Company expects to add more specialty oncology hospitals in the near future, and the Company has already submitted applications for relevant licenses for two planned hospitals which are currently under government review.
The company announced the signing of a definite agreement in connection with the acquisition of 52% equity ownership in Chang'an Hospital on March 22, 2012. Since then, the Company has received all necessary government approvals including New Business License of Chang'an Hospital, and completed all registration procedures, including Capital Verification Report, Share Ownership Report, and Business Registration Change Report. Chang'an Hospital will convene a board meeting, at which the board will appoint the new directors selected by the Company effective as of July 1, 2012. The financial results of Chang'an Hospital will then be subject to consolidation by the company starting from the third quarter of 2012.
"The successful closing of this transaction is a significant accomplishment and an important milestone in the Company's history. It is the first step in the Company's strategic transformation into a hospital management company," said Dr. Jianyu Yang, CCM's Chairman and CEO. "The current healthcare reform in China has provided us with great development opportunities. We appreciate the support and advice of our investors and shareholders to help us achieve the strategic transformation."The Company expects to achieve revenue from lease and management services between RMB118 million to RMB125 million ( US$18.7 million to US$19.8 million) in the second quarter of 2012, compared to RMB101.7 million (excluding revenue contribution from Chang'an Hospital) during the same quarter of 2011, representing 16% to 23% year-over-year growth. The Company also reiterates its revenue target of RMB590 million to RMB630 million for the 2012 fiscal year.