Christina Yao's questions to Concord Medical Services Holdings (CCM) leadership • Q3 2015
Question
On behalf of Isabella Zhao, Christina Yao of Morgan Stanley inquired about the expected revenue contribution from the new Datong Meizhong Jiahe Cancer Hospital, the financial impact of the Concord Cancer Hospital in Singapore, the rationale and plans for listing the Meizhong Jiahe subsidiary on China's New Third Board, and the company's revenue and profit guidance for the upcoming year.
Answer
CEO Dr. Jianyu Yang explained that the Datong hospital will be operational in Q1 2016 and that the Singapore hospital aims to treat 1,000 patients annually once its transformation is complete. He clarified that the New Third Board listing is for brand awareness and domestic capital market exposure, with no current plans to raise capital or delist from the U.S. Chief Investment Officer Adam Sun provided specific Q3 figures for the Singapore hospital, noting a revenue of RMB5.8 million and a net loss of RMB13.2 million due to ongoing transformation costs. Dr. Yang concluded that future growth will be driven by the existing network plus new contributions from the Class-2 hospitals in China and the Singapore facility.