Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Document Transition Report | false |
Document Shell Company Report | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Concord Medical Services Holdings Ltd |
Entity Central Index Key | 0001472072 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | false |
Entity File Number | 001-34563 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Room 2701-05, Tower A, Global Trade Center |
Entity Address, Address Line Two | 36 North Third Ring Road, Dongcheng District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100013 |
Entity Address, Country | CN |
Auditor Name | Shandong Haoxin Certified Public Accountants Co., Ltd. |
Auditor Firm ID | 5035 |
Auditor Location | Weifang, People’s Republic of China |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Mr. Boxun Zhang |
Entity Address, Address Line One | Room 2701-05, Tower A, Global Trade Center |
Entity Address, Address Line Two | 36 North Third Ring Road, Dongcheng District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100013 |
Entity Address, Country | CN |
Local Phone Number | 10) 5903 6688 |
Contact Personnel Fax Number | 5957-5252 |
City Area Code | 86 |
Ordinary shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 130,251,685 |
American Depositary Shares [Member] | |
Document Information [Line Items] | |
Trading Symbol | CCM |
Title of 12(b) Security | American depositary shares, each representing three Class A ordinary shares, par value US$0.0001 per share |
Security Exchange Name | NYSE |
Common Class A | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 84,463,737 |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 per share* |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
Common Class B | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 45,787,948 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 158,283 | $ 22,949 | ¥ 157,386 |
Restricted cash, current portion | 1,060 | 154 | 1,387 |
Accounts receivable (net of allowance of RMB4,932 and RMB7,764 (US$1,126) as of December 31, 2021 and 2022, respectively) | 130,271 | 18,888 | 127,899 |
Prepayments and other current assets (net of reserve of RMB14,853 and RMB17,290 (US$2,507) and including amounts due from related parties amounting to RMB145,692 and RMB169,436 (US$24,566) as of December 31, 2021 and 2022, respectively) | 385,351 | 55,871 | 257,019 |
Inventories | 84,835 | 12,300 | 38,085 |
Net investment in direct financing leases, current portion | 2,699 | ||
Total current assets | 759,800 | 110,162 | 584,475 |
Non-current assets: | |||
Restricted cash, non-current portion | 0 | 138 | |
Property, plant and equipment, net | 3,259,145 | 472,532 | 3,145,025 |
Right-of-use assets, net | 594,897 | 86,252 | 619,536 |
Net investment in direct financing leases, non-current portion | 4,796 | ||
Goodwill | 575,427 | 83,429 | 581,877 |
Intangible assets, net | 353,766 | 51,291 | 657,837 |
Deposits for non-current assets | 8,932 | 1,295 | 224,866 |
Long-term investments | 437,874 | 63,485 | 390,625 |
Other non-current assets | 15,093 | 2,188 | 20,776 |
Total non-current assets | 5,245,134 | 760,472 | 5,645,476 |
Total assets | 6,004,934 | 870,634 | 6,229,951 |
Current liabilities: | |||
Accounts payable | 146,748 | 21,276 | 102,508 |
Accrued expenses and other liabilities | 419,881 | 60,879 | 382,177 |
Income tax payable | 818 | 119 | |
Operating lease liabilities, current | 35,916 | 5,207 | 20,484 |
Short-term bank and other borrowings (including loan from related party of RMB12,108 and RMB13,105 (US$1,900) as of December 31, 2021 and 2022, respectively) | 168,601 | 24,445 | 136,510 |
Long-term bank and other borrowings, current portion (including loan from related party of RMB35,993 and RMB133,856 (US$19,407) as of December 31, 2021 and 2022, respectively) | 343,982 | 49,873 | 162,842 |
Derivative liability | 5,290 | 767 | |
Total current liabilities | 1,121,236 | 162,566 | 804,521 |
Non-current liabilities: | |||
Long-term bank and other borrowings, non-current portion (including loan from related party of RMB83,778 and RMB122,579 (US$17,772) as of December 31, 2020 and 2021, respectively) | 2,471,427 | 358,323 | 2,178,596 |
Deferred tax liabilities | 112,577 | 16,322 | 184,424 |
Derivative liability | 5,863 | ||
Operating lease liabilities, non-current | 199,953 | 28,990 | 214,225 |
Other long-term liabilities | 84,084 | 12,192 | 98,601 |
Total non-current liabilities | 2,868,041 | 415,827 | 2,681,709 |
Total liabilities | 3,989,277 | 578,393 | 3,486,230 |
Contingently redeemable noncontrolling interest | 3,680,782 | ||
Equity (deficit): | |||
Treasury stock (12,101,847 and 12,101,847 shares as of December 31, 2021 and 2022, respectively) | (7) | (1) | (7) |
Additional paid-in capital | 1,930,633 | 279,915 | 1,936,552 |
Accumulated other comprehensive loss | (27,766) | (4,026) | (29,496) |
Accumulated deficit | (3,766,931) | (546,154) | (3,277,270) |
Total Concord Medical Services Holdings Limited shareholders' deficit | (1,863,966) | (270,251) | (1,370,116) |
Noncontrolling interests | 3,879,623 | 562,492 | 433,055 |
Total (deficit)/equity | 2,015,657 | 292,241 | (937,061) |
Total liabilities, mezzanine equity and (deficit)/equity | 6,004,934 | 870,634 | 6,229,951 |
Class A ordinary shares | |||
Equity (deficit): | |||
Ordinary shares | 68 | 10 | 68 |
Class B ordinary shares | |||
Equity (deficit): | |||
Ordinary shares | ¥ 37 | $ 5 | ¥ 37 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares |
Accounts receivable, allowance | ¥ 7,764 | $ 1,126 | ¥ 4,932 |
Reserve for prepayments and other current assets | 17,290 | 2,507 | 14,853 |
Prepayments and other current assets, due from related party | 169,436 | 24,566 | 145,692 |
Short-term bank and other borrowings, loan from related party | 13,105 | 1,900 | 12,108 |
Long-term bank and other borrowings, current portion, loan from related party | 133,856 | 19,407 | 35,993 |
Long-term bank and other borrowings, non-current portion, loan from related party | ¥ 122,579 | $ 17,772 | ¥ 83,778 |
Treasury stock, common shares | 12,101,847 | 12,101,847 | 12,101,847 |
Class A ordinary shares | |||
Ordinary shares, par value per share | $ / shares | $ 0.0001 | ||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 96,565,584 | 96,565,584 | 96,565,584 |
Ordinary shares, shares outstanding | 84,463,737 | 84,463,737 | 84,463,737 |
Class B ordinary shares | |||
Ordinary shares, par value per share | $ / shares | $ 0.0001 | ||
Ordinary shares, shares authorized | 45,787,948 | 45,787,948 | 45,787,948 |
Ordinary shares, shares issued | 45,787,948 | 45,787,948 | 45,787,948 |
Ordinary shares, shares outstanding | 45,787,948 | 45,787,948 | 45,787,948 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Revenues, net of value-added tax | ¥ 472,085 | $ 68,446 | ¥ 485,633 | ¥ 223,011 |
Cost of revenues | (624,494) | (90,543) | (542,530) | (209,928) |
Gross profit (loss) | (152,409) | (22,097) | (56,897) | 13,083 |
Operating expenses: | ||||
Selling expenses | (61,479) | (8,914) | (53,675) | (25,761) |
General and administrative expenses | (311,160) | (45,114) | (347,746) | (294,823) |
Impairment of long-lived assets | 0 | 0 | (8,500) | |
Operating loss | (525,048) | (76,125) | (458,318) | (316,001) |
Interest expense (including interest expense to related party amounting to RMB41,918, RMB13,532 and RMB16,790 (US$2,434) for the years ended December 31, 2020, 2021 and 2022, respectively) | (120,357) | (17,450) | (73,789) | (81,359) |
Foreign exchange gain (loss), net | 54,982 | 7,972 | (19,925) | (58,686) |
Gain (loss) on disposal of long-lived assets | (3) | 677 | ||
Interest income (including interest income from related party amounting to RMB127, RMB3,447 and RMB6,946(US$1,007) for the years ended December 31, 2019, 2020 and 2021, respectively) | 10,021 | 1,453 | 5,894 | 8,440 |
Change in fair value of derivative liability | 1,015 | 147 | (39) | 0 |
Income from equity method investments | 17,647 | 2,559 | 18,163 | 6,021 |
Loss on disposal of subsidiaries | (61,546) | (8,923) | 0 | (14,894) |
Other (expenses) income, net | (216,607) | (31,405) | (1,223) | 6,312 |
Gain on disposal of an equity method investment | 0 | 7,837 | ||
Loss before income tax | (839,896) | (121,772) | (529,237) | (441,653) |
Income tax benefit | 70,906 | 10,280 | 6,565 | 37,624 |
Net loss | (768,990) | (111,492) | (522,672) | (404,029) |
Net loss attributable to noncontrolling interests | 279,329 | 40,499 | 251,245 | 94,040 |
Net loss attributable to Concord Medical Services Holdings Limited | ¥ (489,661) | $ (70,993) | ¥ (271,427) | ¥ (309,989) |
Loss per share for Class A and Class B ordinary shares: | ||||
Basic | (per share) | ¥ (3.74) | $ (0.54) | ¥ (6.26) | ¥ (5.11) |
Diluted | (per share) | ¥ (3.74) | $ (0.54) | ¥ (6.26) | ¥ (5.11) |
Weighted average number of class A and class B ordinary shares outstanding: | ||||
Basic | shares | 131,053,858 | 131,053,858 | 131,053,858 | 131,053,858 |
Diluted | shares | 131,053,858 | 131,053,858 | 131,053,858 | 131,053,858 |
Other comprehensive income (loss), net of tax of nil | ||||
Foreign currency translation, net tax of nil | ¥ (53,964) | $ (7,824) | ¥ 14,821 | ¥ 50,856 |
Total other comprehensive income (loss), net of tax | (53,964) | (7,824) | 14,821 | 50,856 |
Comprehensive loss | (822,954) | (119,316) | (507,851) | (353,173) |
Comprehensive loss attributable to noncontrolling interests | (279,329) | (40,499) | (251,245) | (94,040) |
Comprehensive loss attributable to Concord Medical Services Holdings Limited | (543,625) | (78,817) | (256,606) | (259,133) |
Equipment leasing revenues | ||||
Revenues, net of value-added tax | 21,966 | 3,185 | 42,484 | 52,906 |
Cost of revenues | (18,905) | (2,741) | (40,539) | (36,911) |
Services and other revenues | ||||
Revenues, net of value-added tax | 364,412 | 52,835 | 383,828 | 140,050 |
Cost of revenues | (518,500) | (75,175) | (441,510) | (143,443) |
Medicine income | ||||
Revenues, net of value-added tax | 85,707 | 12,426 | 59,321 | 30,055 |
Cost of revenues | ¥ (87,089) | $ (12,627) | ¥ (60,481) | ¥ (29,574) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||
Interest expense to related party | ¥ 16,790 | $ 2,434 | ¥ 13,532 | $ 2,434 | ¥ 41,918 |
Interest income to related party | 6,946 | $ 1,007 | 3,447 | $ 1,009 | 127 |
Foreign currency translation, net of tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net loss | ¥ (768,990) | $ (111,492) | ¥ (522,672) | ¥ (404,029) |
Adjustments to reconcile net loss to net cash generated from operating activities: | ||||
Share-based compensation (note 23) | (5,919) | (858) | 14,680 | 20,621 |
Depreciation of property, plant and equipment (note 9) | 88,692 | 12,859 | 64,288 | 55,030 |
Amortization of intangible assets (note 12) | 34,495 | 5,001 | 30,171 | 15,756 |
Amortization of land lease payments (note 10) | 9,627 | 1,396 | 9,621 | 9,513 |
Lease expense to reduce operating lease ROU | 19,322 | 2,801 | 21,720 | 23,030 |
(Income) loss from equity method investments | (17,647) | (2,559) | (18,163) | (6,021) |
Change in fair value of derivative liability (note 21) | (1,015) | (147) | 39 | 0 |
(Gain) loss on disposal of long-lived assets | 3 | 0 | (677) | |
Deferred tax expense (benefit) | (71,848) | (10,417) | 11,257 | (13,347) |
Allowance for doubtful accounts, net | 5,400 | 783 | 2,555 | 6,058 |
Impairment of long-lived assets | 0 | 0 | 8,500 | |
Interest and consultation expenses | 120,357 | 17,450 | 73,789 | 81,359 |
Loss on disposal of subsidiary (note 4) | 61,546 | 8,923 | 0 | 14,894 |
Gain from disposal of an equity method investment (note 14) | 0 | (7,837) | ||
Loss from agreements termination with a cooperative hospital | 204,250 | 29,613 | 0 | 0 |
Changes in operating assets and liabilities net of effects of acquisition and disposals: | ||||
Accounts receivable | 644 | 93 | (64,450) | (6,167) |
Prepayments and other current assets | (130,156) | (18,871) | (30,908) | (82,497) |
Inventories | (46,750) | (6,778) | (4,352) | (14,446) |
Other non-current assets | (15) | (2) | (175) | 392 |
Accounts payable | 113,743 | 16,491 | 262,842 | 11,119 |
Accrued expenses and other liabilities | 119,055 | 17,261 | (2,515) | 15,171 |
Deferred revenue | 57,168 | 8,289 | (193,464) | 84,543 |
Income tax payable | 818 | 119 | (858) | 105 |
Accrued unrecognized tax benefit | (6,539) | (948) | 621 | (28,012) |
Operating lease liabilities | (2,935) | (426) | (13,339) | (12,824) |
Net cash used in operating activities | (216,694) | (31,419) | (359,313) | (229,766) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of land use right | (215) | (31) | 0 | (7,170) |
Investment in equity method investees | (2,300) | (333) | (61,159) | (163,844) |
Prepayments for long-term investments | 0 | (28,490) | ||
Investment in equity investments without readily determinable fair value | (6,439) | 0 | ||
Acquisitions of business, net of cash acquired | 1,569 | (8,336) | ||
Acquisitions of property, plant and equipment | (222,980) | (32,329) | (278,977) | (168,023) |
Acquisitions of intangible assets | (818) | (119) | (19,712) | (1,028) |
Deposits for the purchases of property, plant and equipment | (160,793) | (23,313) | (481,604) | (336,681) |
Proceeds from disposal of equity method investment | 0 | 33,020 | ||
Proceeds from disposal of property, plant and equipment | 5,635 | 817 | 212,975 | 271 |
Proceed from agreements termination with a cooperative hospital | 238,093 | 34,520 | 0 | 0 |
Proceeds from principal portion of direct financing leases | 7,536 | 1,093 | 31,525 | 24,842 |
Proceeds from disposal of a subsidiary | 0 | 201,554 | ||
Cash distribution from equity method investments | 5,101 | 740 | 15,863 | 0 |
Purchase of available-for-sale debt securities | 0 | (80,000) | ||
Redemption of available-for-sale debt securities | 11,949 | 1,732 | 19,978 | 0 |
Net cash used in investing activities | (118,792) | (17,223) | (565,981) | (533,885) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from short-term bank borrowings | 217,470 | 31,530 | 126,112 | 740,434 |
Proceeds from long-term bank and other borrowings | 422,765 | 61,295 | 386,635 | 857,110 |
Proceeds from convertible note (note 22) | 20,000 | 0 | ||
Borrowings from related parties (note 25) | 220,369 | 31,951 | 24,432 | 26,560 |
Repayment to related parties (note 25) | (82,915) | (12,022) | (80,886) | 0 |
Repayment of short-term bank and other borrowings | (197,598) | (28,649) | (24,706) | (1,029,176) |
Repayment of long-term bank and other borrowings | (197,003) | (28,563) | (206,057) | (241,825) |
Purchase of subsidiary shares from noncontrolling interests | (4,581) | (25,653) | ||
Capital injection from a noncontrolling interests in a subsidiary | 0 | 1,500 | 110,852 | |
Proceeds from issuance of contingently redeemable noncontrolling interests of a subsidiary | 400,000 | 700,000 | ||
Net cash generated from financing activities | 383,088 | 55,542 | 642,449 | 1,138,302 |
Effect of foreign exchange rate changes on cash and cash equivalent and restricted cash | (47,170) | (6,837) | (4,639) | (2,563) |
Net increase (decrease) in cash | 432 | 63 | (287,484) | 372,088 |
Cash and cash equivalents and restricted cash at beginning of the year | 158,911 | 23,040 | 446,395 | 74,307 |
Cash and cash equivalents and restricted cash at end of the year | 159,343 | 23,103 | 158,911 | 446,395 |
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets | ||||
Cash and cash equivalents | 158,283 | 22,949 | 157,386 | 334,264 |
Restricted cash, current portion | 1,060 | 154 | 1,387 | 4,661 |
Restricted cash, noncurrent portion | 138 | 107,470 | ||
Total cash and cash equivalents and restricted cash | 159,343 | 158,911 | 446,395 | |
Supplemental schedule of major cash flows information: | ||||
Income tax paid | (3,013) | (437) | (3,259) | |
Interest paid | (145,257) | (21,060) | (134,180) | (73,848) |
Supplemental schedule of major non-cash activities: | ||||
Acquisition of investment through effective settlement in other receivables, advance to suppliers and other payables (note 4) | 602 | |||
Acquisition of property, plant and equipment, construction in progress and other intangible assets through utilization of deposits | 257,440 | 37,325 | 460,078 | 704,312 |
Acquisition of property, plant and equipment, construction in progress and other intangible assets included in accrued expense and other liabilities | ¥ 2,181 | $ 316 | ¥ 99,406 | ¥ 50,736 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) ¥ in Thousands, $ in Thousands | Ordinary shares CNY (¥) shares | Ordinary shares USD ($) shares | Treasury stock CNY (¥) | Treasury stock USD ($) | Additional paid-in capital CNY (¥) | Additional paid-in capital USD ($) | Accumulated other comprehensive income (loss) CNY (¥) | Accumulated other comprehensive income (loss) USD ($) | Accumulated deficit Cumulative effect, period of adoption, adjustment CNY (¥) | Accumulated deficit CNY (¥) | Accumulated deficit USD ($) | Noncontrolling interests CNY (¥) | Noncontrolling interests USD ($) | Contingently redeemable noncontrolling Interest CNY (¥) | Cumulative effect, period of adoption, adjustment CNY (¥) | CNY (¥) | USD ($) |
Cumulative adjustments for changes in accounting principles | ¥ 105 | ¥ (8) | ¥ 1,759,941 | ¥ (97,285) | ¥ (1,785,517) | ¥ 102,396 | ¥ 1,909,606 | ¥ (20,368) | |||||||||
Balance at Dec. 31, 2019 | ¥ 105 | (8) | 1,759,941 | (97,285) | (1,785,517) | 102,396 | 1,909,606 | (20,368) | |||||||||
Balance, shares at Dec. 31, 2019 | shares | 130,241,995 | 130,241,995 | |||||||||||||||
Net loss | (309,989) | (94,040) | (404,029) | ||||||||||||||
Other comprehensive income | 50,856 | 50,856 | |||||||||||||||
Accretion of contingently redeemable noncontrolling interests | (359,920) | 87,266 | 272,654 | (272,654) | |||||||||||||
Share-based compensation | 20,621 | 20,621 | |||||||||||||||
Contribution from noncontrolling interest | 59,464 | 51,410 | 110,874 | ||||||||||||||
Contribution from contingently redeemable noncontrolling interests | 731,415 | ||||||||||||||||
Acquisition of additional shares of non-wholly owned subsidiaries | 3,078 | 3,078 | |||||||||||||||
Restricted shares vested (in shares) | shares | 9,690 | 9,690 | |||||||||||||||
Balance at Dec. 31, 2020 | ¥ 105 | (8) | 1,840,026 | (46,429) | ¥ (1,223) | (2,456,649) | 150,110 | 2,913,675 | ¥ (1,223) | (512,845) | |||||||
Balance, shares at Dec. 31, 2020 | shares | 130,251,685 | 130,251,685 | |||||||||||||||
Cumulative adjustments for changes in accounting principles | ¥ 105 | (8) | 1,840,026 | (46,429) | ¥ (1,223) | (2,456,649) | 150,110 | 2,913,675 | ¥ (1,223) | (512,845) | |||||||
Net loss | (271,427) | (251,245) | (522,672) | ||||||||||||||
Other comprehensive income | 1 | 16,933 | 16,934 | ||||||||||||||
Accretion of contingently redeemable noncontrolling interests | (549,194) | 182,087 | 367,107 | (367,107) | |||||||||||||
Share-based compensation | 14,680 | 14,680 | |||||||||||||||
Contribution from noncontrolling interest | 1,500 | 1,500 | |||||||||||||||
Contribution from contingently redeemable noncontrolling interests | 400,000 | ||||||||||||||||
Acquisition of additional shares of non-wholly owned subsidiaries | 81,846 | 355,184 | 437,030 | ||||||||||||||
Redemption of 15% equity of GMI held by GE to reduce minority shareholders' equity | (4,581) | (4,581) | |||||||||||||||
Balance at Dec. 31, 2021 | ¥ 105 | (7) | 1,936,552 | (29,496) | (3,277,270) | 433,055 | 3,680,782 | (937,061) | |||||||||
Balance, shares at Dec. 31, 2021 | shares | 130,251,685 | 130,251,685 | |||||||||||||||
Cumulative adjustments for changes in accounting principles | ¥ 105 | (7) | 1,936,552 | (29,496) | (3,277,270) | 433,055 | 3,680,782 | (937,061) | |||||||||
Net loss | (489,661) | (279,329) | (768,990) | $ (111,492) | |||||||||||||
Other comprehensive income | 1,730 | 1,730 | |||||||||||||||
Accretion of contingently redeemable noncontrolling interests | 3,680,782 | ¥ (3,680,782) | 3,680,782 | ||||||||||||||
Share-based compensation | (5,919) | (5,919) | |||||||||||||||
Investment in equity instrusment(Note 14) | 45,115 | 45,115 | |||||||||||||||
Balance at Dec. 31, 2022 | ¥ 105 | $ 15 | (7) | $ (1) | 1,930,633 | $ 279,915 | (27,766) | $ (4,026) | (3,766,931) | $ (546,154) | 3,879,623 | $ 562,492 | 2,015,657 | 292,241 | |||
Balance, shares at Dec. 31, 2022 | shares | 130,251,685 | 130,251,685 | |||||||||||||||
Cumulative adjustments for changes in accounting principles | ¥ 105 | $ 15 | ¥ (7) | $ (1) | ¥ 1,930,633 | $ 279,915 | ¥ (27,766) | $ (4,026) | ¥ (3,766,931) | $ (546,154) | ¥ 3,879,623 | $ 562,492 | ¥ 2,015,657 | $ 292,241 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (Parenthetical) | Dec. 31, 2021 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) | |
Percentage of equity redeemed to reduce minority shareholders equity | 15 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND BASIS OF PRESENTATION | |
ORGANIZATION AND BASIS OF PRESENTATION | 1. ORGANIZATION AND BASIS OF PRESENTATION The accompanying consolidated financial statements include the financial statements of Concord Medical Services Holdings Limited (the “Company”) and its subsidiaries, which are collectively referred to as the “Group”. The Company was incorporated under the laws of the Cayman Islands on November 27, 2007. The Group is principally engaged in the leasing of radiotherapy and diagnostic imaging equipment, provision of management services to hospitals, medicine sales and provision of premium cancer and proton treatment services. (a) Percentage of Date of Place of ownership by Entities establishment/acquisition establishment the Company Principal activities Subsidiaries Ascendium Group Limited (“Ascendium”) September 10, 2007 British Virgin Islands (“BVI”) 100 % Investment holding China Medical Services Holdings Limited (“CMS Holdings”) July 18, 2008 Hong Kong 100 % Investment holding King Cheers Holdings Limited (“King Cheers”) May 18, 2001 Hong Kong 100 % Investment holding Shenzhen Aohua Medical Technology Development Co., Ltd. (“Aohua Technology ”) ** February 21, 2008 PRC 43.90 % Leasing of medical equipment and provision of management services Shanghai Medstar Financial Leasing Company Limited ("Shanghai Medstar") March 21, 2003 PRC 98.19 % Leasing of medical equipment and provision of management services Meizhong Jiahe Medical Technology Development Group Co., Ltd. (“MHM”) * July 23, 2008 PRC 43.90 % Provision of management services Beijing Yundu Internet Technology Co., Ltd. (“Yundu”) ** July 26, 2007 PRC 43.90 % Provision of management services Tianjin Concord Medical Technology Limited (“Tianjin Concord Medical”) April 22, 2010 PRC 98.19 % Leasing of medical equipment and provision of management services Guangzhou Concord Cancer Center Co., Ltd ("Guangzhou Concord Cancer Hospital") ** June 29, 2011 PRC 35.12 % Medical treatment and service business CCM (Hong Kong) Medical Investments Limited (“CCM (HK)”) June 03, 2013 Hong Kong 100 % Investment holding Shanghai Concord Cancer Center Co., Ltd (“SHC”) ** March 17, 2014 PRC 44.18 % Medical treatment and service business Datong Meizhong Jiahe Cancer Center (“DTMZ”) ** October 23, 2014 PRC 43.90 % Medical treatment and service business Wuxi Concord Medical Development Ltd. ("Wuxi Concord”) December 29, 2015 PRC 100 % Provision of management services Percentage of Date of Place of ownership by Entities establishment/acquisition establishment the Company Principal activities Beijing Concord Medical Technology Ltd.(“BJCMT”) January 4, 2016 PRC 100 % Provision of management services Beijing Century Friendship Science & Technology Development Co., Ltd (“Beijing Century Friendship”)** October 8, 2018 PRC 98.19 % Provision of management services and investment holding Beijing Proton Medical Center Co., Ltd (“BPMC”) October 8, 2018 PRC 79.01 % Medical treatment and service business Shanghai Meizhong Jiahe Cancer Center Co., Ltd. (“CMCC”)** October 8, 2018 PRC 41.50 % Medical treatment and service business Shanghai Meizhong Jiahe Imaging Diagnostic Center Co., Ltd. ("SH MZJH") ** November 18,2019 PRC 15.68 % Medical treatment and service business Wuxi Meizhong Jiahe Cancer Center Co., Ltd. ("Wuxi MZJH") November 18,2019 PRC 98.50 % Medical treatment and service business Yinchuan Meizhong Jiahe Internet Hospital Ltd. (“YCIH”) ** October 18, 2020 PRC 43.90 % Medical treatment and service business US Proton Therapy Holdings Limited (“Proton BVI”) May 16, 2011 BVI 100 % Investment holding US Proton Therapy Holdings Limited (“US Proton”) June 29, 2011 United States of America 100 % Investment holding Guangzhou Concord Hospital Management Co., Ltd. ("GCHM") (formerly known as Guangzhou New Spring Hospital Management Ltd.) (note 4) ** April 21, 2020 China 30.73 % Investment holding Guangzhou Concord Medical Cancer Ltd. ("GCMC") (formerly known as Guangzhou New Spring Medical Cancer Ltd) (note 4) ** April 21, 2020 China 30.73 % Medical treatment and service business Beijing Healthingkon Technology Co., Ltd. (“Healthingkon”) (note 4) ** January 4, 2021 China 11.56 % Leasing of medical equipment and technical service Guangzhou Concord Medical Technology Innovation Center Co., Ltd ("GCMTIC") ** April 22, 2021 China 43.90 % Technical service * On March 26, 2018, July 10, 2018 and on April 7, 2020, the Group entered into agreements with CICC Capital Management Company Limited (“CICC Capital”), a wholly-owned subsidiary of China International Capital Corporation Limited (“CICC”), together with six other investors (“Other Investors”) and CITIC Industrial Investment Group Limited (“CITIC Industrial”). Pursuant to the agreements, CICC Capital, Other Investors and CITIC Industrial make a strategic investment and subscribe new issued 60,000,000, 40,000,000 and 38,888,888 shares of the Group’s subsidiary MHM, with total consideration of RMB1,500,000 and RMB700,000. In April 2021, the Group entered into an investment agreement with five legal entities and one natural individual (“2021 Investors”). Pursuant to which, these investors subscribed new issued 18,805,826 shares of the Group’s subsidiary MHM with total consideration of RMB400,000. Pursuant to these agreements, CCIC Capital, Other Investors, CITIC Industrial and 2021 Investors can request the Group to redeem their interests in MHM upon the occurrence of certain events (i.e. failure to complete a qualified IPO by June 30, 2024). The same right is also given to the existing noncontrolling interest shareholder. Given these events are not solely within the control of MHM, the noncontrolling interests of CCIC Capital, Other Investors, CITIC Industrial and 2021 Investors are contingently redeemable noncontrolling interests and are classified as mezzanine equity. The noncontrolling interests of other existing noncontrolling interests’ holders are also reclassified from permanent equity to mezzanine equity as contingently redeemable noncontrolling interests. Upon submission of MHM's prospectus to Hong Kong Stock Exchange ("qualified IPO") on May 30, 2022, the rights of the Investors to request the Company to repurchase the interests held by the Investors no longer exists, according to the agreement signed on May 19 among shareholders of MHM. The existing carrying amount of the equity instrument should be reclassified to permanent equity at the date of the event that caused the reclassification. Therefore, contingently redeemable noncontrolling interests was nil as of December 31, 2022. In March 2022, the Group, established Shanghai Xinhe Enterprise Management Center (Limited Partnership) ("Shanghai Xinhe") with Shanghai Xinfu Enterprise Management Center (Limited Partnership), and acted as a limited partner. The Group obtained 99% shares of Shanghai Xinhe in the consideration of 2.05% shares in MHM. After the completion of all transactions mentioned above, the Group’s equity shares in MHM had been diluted from 49.44% to 46.56% as of December 31, 2021 and 43.90% as of December 31, 2022 respectively. On December 1, 2020, the Group obtained declaration from one of the noncontrolling shareholder of MHM, pursuant to which the noncontrolling shareholder delegates its 2.36% voting rights in the general meeting of shareholders of MHM to the Group irrevocably during the period it owns the share interest in MHM, which was diluted to 2.22% after the transaction mentioned above in April 2021. In April 2021 and April 2022, the Group successively obtained declaration from another two of the noncontrolling shareholders of MHM, pursuant to which the noncontrolling shareholder delegates its 2.06% and 2.05% voting rights, respectively, in the general meeting of shareholders of MHM to the Group irrevocably during the period it owns the share interest in MHM. The Group remained control of MHM since it is entitled to 50.84% and 50.23% of the voting right of MHM as of December 31, 2021 and 2022. ** Aohua Technology, Yundu, Guangzhou Concord Cancer Hospital, SHC, DTMZ, Beijing Century Friendship, CMCC, SH MZJH, YCIH, GCHM, GCMTIC, GCMC and Healthingkon are subsidiaries of MHM. The Group accounts for the changes in accretion to the redemption value in accordance with ASC Topic 480, Distinguishing Liabilities from Equity. (b) Establishment of Onshore Fund and Offshore Fund Establishment of onshore fund In January 2016, the Group and Zhongrong Guofu Investment Management Company Limited (“ZR Guofu”) established an onshore fund, namely Guofu Huimei (Tianjin) Investment Management Partnership Firm (LP) (“Guofu Huimei”). The registered capital of Guofu Huimei is RMB1,009,000, of which RMB746,001and RMB262,999 were subscribed by ZR Guofu and the Group, for 73.93% and 26.07% equity interest, respectively. General partners of the Guofu Huimei are Shanghai Medstar and ZR Guofu. Further in April 2017, the Group and ZR Guofu entered into a supplemental contract to the framework agreement, pursuant to which, Guofu Huimei will be used as the platform to invest and provide loans to some domestic entities engaging in hospital business. During 2017, Guofu Huimei acquired 78.31% equity interest of Beijing Century Friendship which holds 55% equity interest of BPMC at consideration of RMB388,500, 54.8% equity interest of CMCC at consideration of RMB182,100, 28.77% equity interest of Tianjin Jiatai Entity Management Limited Partnership ("Tianjin Jiatai") at consideration of RMB106,500 and established Shanghai Rongchi Medical Management Limited (“SH Rongchi”) with share capital of RMB695,305 with Tianjin Jiatai. The profit or loss of these domestic entities engaging in hospital business is shared proportionally among investors based on the percentage of their respective subscribed share capital. In addition, the Group’s share in Beijing Century Friendship, certain construction in progress and certain prepaid land lease payments are pledged to secure the capital contribution from ZR Guofu. Establishment of offshore fund In November 2016, the Company entered into a framework agreement with ZR Guofu to establish an offshore fund Zhongrong International Growth Fund SPC-ZR Concord Healthcare Investment Fund SP ("SP"), for the purpose of acquiring several hospital businesses of the Group, including 100% shares of CHS through China Medstar, 70% shares of Guangzhou Concord Cancer Hospital through CMS Holdings and 59.51% shares of PTC-Houston Management, LP (“PTC”) through Proton (BVI), collectively the “CCM Hospital Businesses”. ZR Guofu will provide management and consultation services on the funds and the Group will continue to manage the CCM Hospital Businesses. ZR Guofu subscribes Class A shares of SP with a consideration of RMB521,396, while the Group subscribes Class B shares of the SP using 1) creditor’s rights of RMB166,299 due from CCM Hospital Business and 2) RMB7,500 cash as consideration. Pursuant to the supplemental contract, the 75% equity interest in SP held by the ZR Guofu is contractually required to be repurchased by the Group at the end of four years from the establishment of SP in November 2016 at a consideration equivalent to the investment cost of RMB521,396. ZR Guofu is also entitled to an annual premium at 15% for its capital contribution of RMB521,396 in SP in the form of interest expense and consultation expense. The offshore fund SP was determined as a variable interest entity as the cash injection from ZR Guofu of RMB521,396 was not equity at risk. As the Company maintains the power to direct the activities that most significantly affect SP’s economic performances through supplemental contracts agreed terms and absorbs the expected losses of SP, the Company is the primary beneficiary of SP and consolidates SP and its subsidiaries under by ASC 810-10 Consolidation: Overall The 75% equity interest held by the ZR Guofu in SP is accounted for as a liability recorded as “Mandatorily redeemable noncontrolling interests” in the Company’s consolidated balance sheets as a result of the mandatory redemption feature and is carried at the redemption value at the end of each reporting date as determined in accordance with the contract terms from the day of on which control is transferred to the Company. The 15% annual premium is accrued as an interest expense and consultation expense during each reporting period. In November 2017, ZR Guofu transferred its rights to the mandatorily redeemable noncontrolling interest in SP to Tianjin Jiatai. In December 2017, CMS Holdings redeemed the mandatory redeemable noncontrolling interest from ZR Guofu of RMB97,106 to withdraw the CCM Hospital Businesses. On November 29, 2018, the PTC business had been disposed by Proton (BVI). On November 19, 2020, CHS had been disposed by China Medstar (note 4). Repurchase of onshore fund In June 2018, MHM entered into agreements with Guofu Huimei to purchase its 78.31% equity interests in Beijing Century Friendship which holds 55% equity interest of BPMC and 54.8% equity interest in CMCC at a consideration of RMB388,500 and RMB182,100 respectively. Meanwhile, ZR Guofu and Guofu Huimei reached an agreement pursuant to which ZR Guofu will withdraw its original investments in Guofu Huimei, amounting to RMB746,000. Therefore, MHM hold 100% equity interest of Beijing Century Friendship, 80% equity interest of BPMC and 90% equity interests of CMCC upon execution and closing of the agreement and the Group became the sole shareholder of Guofu Huimei. After the withdrawal, ZR Guofu is no longer part of the onshore fund Guofu Huimei and the domestic hospital businesses. Repurchase of offshore fund During 2019, Tianjin Jiatai made total capital injections of RMB34,540 (US$5,105) to SH MZJH, leading to an increase in Tianjin Jiatai’s holding interest from 56.77% to 78.34%.On July 22, 2019, Wuxi Concord entered into an agreement with Tianjin Jiatai, to purchase all its 90% equity interests in Wuxi MZJH at a consideration of RMB27,000. After the acquisition, Wuxi MZJH became a wholly owned subsidiary of the Group. On August 23, 2019, Wuxi Concord further injected capital of RMB82,100 to Wuxi MZJH. On November 13, 2019, Guofu Huimei entered into agreements with ZR Guofu, pursuant to which ZR Guofu would withdraw its investment of 77.18% equity interests in Tianjin Jiatai at a consideration of RMB421,730. As a result of ZR Guofu’s withdrawal, the Group became the sole shareholder of Tianjin Jiatai and its subsidiaries, SH MZJH, Heze Meizhong Jiahe Cancer Center Co., Ltd., SH Rongchi and Oriental Light Group Limited ("Oriental"), including Wuxi MZJH (collectively, the “Tianjin Jiatai Group”). The transaction is accounted for as a business acquisition of Tianjin Jiatai Group by the Group. Immediately prior to the acquisition of Tianjin Jiatai Group on November 18, 2019, the mandatory redeemable to noncontrolling interest in SP held by Tianjin Jiatai was amounted to RMB434,216. The mandatorily redeemable noncontrolling interest, being a preexisting relationship between the parties, was settled as a result of the business combination. Upon the completion of the acquisition and the settlement of mandatorily redeemable noncontrolling interest, SP is no longer a VIE. On September 25, 2020, SP terminated all its business and completed its cancellation of business registration. On December 26, 2022, Guofu Huimei and its subsidiaries,mainly including Tianjin Jiatai, SH Rongchi, Oriental, and China Medstar, had been disposed by the Group (note 4). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Going Concern The Company experienced net loss from continuing operations of RMB404,029, RMB522,672, RMB768,990 (US$111,492) for the years ended December 31, 2020, 2021 and 2022, respectively, and negative cash flows from operating activities of approximately RMB359,313 and RMB216,694 (US$31,419) for the years ended December 31, 2021 and 2022, respectively. As of December 31, 2022, the Company had cash position of RMB158,283 (US$22,949), negative working capital of RMB361,436 (US$52,404), an accumulated deficit of RMB3,766,931 (US$546,154). These adverse conditions indicate that there is substantial doubt about the Company’s ability to continue as a going concern. In January and March 2023, the Company entered into two loan contracts with the amount of RMB68.5 million (US$9.9 million) received as of the date of this annual report. Meanwhile, the Group will focus on the following activities: (1) the Group plans to seek additional equity and debt financing from new investors into the hospital and network business operation and extend the terms of current loans; (2) the Group plans to improve the profitability of network business and hospital business through upgrading cloud system solutions, developing internet hospital business, accelerating the transformation of scientific research and training achievements into clinical application and so on; (3) the Group is currently focusing on improving operation efficiency and cost reduction to standardize operations, enhance internal controls, and create synergy of the Company’s resources. Therefore, management believed that the substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued has been alleviated. Based on cash flows projection from operating and financing activities and existing balance of cash and cash equivalents, management concludes that the Company has sufficient funds for sustainable operations and it will be able to meet its payment obligations from operations and debt related commitments for the next twelve months from the issuance of the consolidated financial statements. Based on the above considerations, the accompanying financial statements have been prepared in accordance with U.S. GAAP, on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of asset and amounts and classification of liabilities that may be necessary should the Company be unable to continue as a going concern. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in the Company’s financial statements include, but are not limited to, impairment of long-lived assets and goodwill, expected credit losses for accounts receivable and other receivables included in prepayments and other current assets, purchase price allocation, fair value measurement of retained noncontrolling interest after losing control of subsidiary, measurement of available for sale debt securities, unrecognized tax benefits, realization of deferred tax assets, share-based compensation expenses, incremental borrowing rate of right-of-use assets and related lease obligation, and fair value measurement of derivative liability. Actual results could materially differ from those estimates. Principles of consolidation The consolidated financial statements of the Group include the financial statements of the Company, its subsidiaries and the VIE and its subsidiaries for which the Company or a subsidiary of the Company is the primary beneficiary. All transactions and balances between the Company, subsidiaries and VIE and its subsidiaries have been eliminated upon consolidation. Results of acquired subsidiaries and its VIE and its subsidiaries are consolidated from the date on which control is transferred to the Company. Foreign currency translation and transactions The Company’s PRC subsidiaries determine their functional currencies to be the Chinese Renminbi (“RMB”) based on the criteria of ASC 830, Foreign Currency Matters Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are remeasured at the exchange rates prevailing at the balance sheet date. Exchange gains and losses are included in the consolidated statements of comprehensive loss. Accumulated other comprehensive loss represents the cumulative foreign currency translation adjustments at each balance sheet date. Convenience translation Amounts in U.S. dollars are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.8972 to US$1.00 on December 30, 2022 as published on the website of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. Business combination and noncontrolling interests The Group accounts for business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations The Group derives estimates of the fair value of assets acquired and liabilities assumed using reasonable assumptions based on historical experiences and on the information obtained from management of the acquired companies. Critical estimates in valuing certain of the intangible assets and pre-existing agreements included but were not limited to the following: deriving estimates of future expected cash flows from the acquired business, the determination of an appropriate discount rate, deriving assumptions regarding the period of time that the related benefits would continue and the initial measurement and recognition of any contingent consideration arrangements and the evaluation of whether contingent consideration arrangement is in substance compensation for future services. Unanticipated events may occur which may affect the accuracy or validity of such assumptions or estimates. In a business combination achieved in stages, the Group re-measures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated income statements. For the Company’s non-wholly owned subsidiaries, a noncontrolling interest is recognized to reflect portion of equity that is not attributable, directly or indirectly, to the Company. When the noncontrolling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Company, the noncontrolling interest is classified as mezzanine equity. The Company accretes changes in the redemption value over the period from the date that it becomes probable that the mezzanine equity will become redeemable to the earliest redemption date using the effective interest method. When the noncontrolling interest is mandatory redeemable on a fixed or determinable date, the noncontrolling interest is classified as liabilities. If a transaction does not meet the definition of a business, the transaction is recorded as an asset acquisition. Accordingly, the identifiable assets acquired and liabilities assumed are measured at the fair value of the consideration paid, based on their relative fair values at the acquisition date. Acquisition-related costs are included in the consideration paid and capitalized. Any contingent consideration payable that is dependent on the purchaser’s future activity is not included in the consideration paid until the activity requiring the payment is performed. Any resulting future amounts payable are recognized in profit or loss when incurred. No goodwill and no deferred tax asset or liability arising from the assets acquired and liabilities assumed are recognized upon the acquisition of assets. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits placed with banks which are unrestricted as to withdrawal and use and have original maturities less than three months. All highly liquid investments with a stated maturity of 90 days or less from the date of purchase are classified as cash equivalents. Restricted cash Restricted cash represents cash deposits pledged as security for the Group’s daily operation, such as performance of contracts, and proceeds from specialized bank borrowings for hospital construction. Such restricted cash is not available to fund the general liquidity needs of the Group. And the restriction will lapse when the of obligation of contracts has been performed or the bank borrowings has been used for construction of hospital. The Group’s long-term investments consist of equity investments without readily determinable fair value,equity method investments and available-for-sale debt securities. The Group adopted ASC 321, Investments-Equity Securities, (“ASC 321”) on January 1, 2018 and the cumulative effect of adopting the new standard on opening accumulated deficit was not material. Pursuant to ASC 321, equity investments, except for those accounted for under the equity method and those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures Investments in equity investees represent investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Subtopic 323-10, Investments-Equity Method and Joint Ventures: Overall Debt securities that the Group has the intent to hold the security for a long period or may sell the security in response to the changes in economic conditions are classified as available-for-sale. The Company reported it at fair value which was estimated using the net asset value in accordance with ASC 820-10-15-4 and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. Upon sale, realized gains and losses are reported in net income. Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. In accordance with ASC Topic 350, Goodwill and Other Intangible Assets In accordance with ASC 350, the Group assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. After the disposal of the CHS in 2020, the Group divided its business into two reporting units, including network business and hospital business as of December 31, 2020 and 2021. Goodwill resulted from the acquisitions of subsidiaries during the years ended December 31, 2020 was assigned to hospital business reporting unit. And the goodwill resulted from the acquisitions of subsidiaries during the years ended December 31, 2021 was assigned to network business reporting unit. As of December 31, 2022, there are still two reporting units after the disposal of the GFHM, which was divided into hospital business before disposal(Note 4). The Group early adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment For the year ended December 31, 2021 and 2022, the Company elected to bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment testing. The Company considered the future discounted cash flows expected to be generated by the hospital business and network business respectively to determine the fair value of each reporting unit. In determine the fair value of each reporting unit, the Company estimated significant assumptions including revenue growth rate, operating margin, capital expenditure, terminal growth rate and discount rate. The assumptions may be significantly affected by unexpected changes in future economic and market conditions, as well as regulatory requirements. The Company did not record any impairment loss for the years ended December 31, 2021 and 2022 as the fair value of the reporting unit is in excess of its carrying value. Accounts receivable and credit losses for doubtful accounts Accounts receivable are recognized and carried at the original carrying amount less allowance for credit losses. The Group maintains an allowance for credit losses for accounts receivable and other receivables included in prepayments and other current assets, which is recorded as an offset to accounts receivable and other receivables included in prepayments and other current assets, and the estimated credit losses charged to the allowance is classified as “General and administrative expenses” in the consolidated statements of comprehensive loss. When similar risk characteristics exist, the Group assesses collectability and measure expected credit losses on a collective basis for a pool of assets, whereas if similar risk characteristics do not exist, the Group assesses collectability and measures expected credit losses on an individual asset basis. The provision for expected credit losses is estimated based on the types of receivables and relevant customers, management’s experience with collection trends and the current and expected economic and business conditions. The Group evaluates the provision for expected credit losses on a regular basis and adjusts the provision based on changes in the customers’ circumstances and other available information. In determining the amount of the allowance for credit losses, the Group considers historic collection experience, the age of the accounts receivable and other receivables included in prepayments and other current assets, credit quality of the Group’s customers or creditors, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the customer’s ability to pay. The significant assumptions used includes the disaggregation criteria and the estimated loss rates related to account receivables, and the credit rating of debtors’ probability of default and loss rates given default related to other receivables. The receivable balances are written off when they are deemed uncollectible. The Group generally does not require collateral from its customers. Inventories Inventories, consisting of medicine, medical supplies and low-value consumables, are accounted for using the individual pricing method, and are valued at the lower of cost or market. Loan receivables Loan receivables represented the loans to related parties and third parties, which were measured at amortized cost and reported in the consolidated balance sheets at outstanding principle. Loan receivables with collection period within one year are classified as prepayments and other current assets in the consolidated balance sheets. Cash paid for loan originations and cash received from loan repayments are classified as operating activities in the consolidated statements of cash flows. Leases Lessee Accounting The Group leases office space, and land use rights. The Group’s offices leases generally have lease terms between 1 to 20 years. The Group’s lease agreements include fixed and variable lease payments and do not contain material residual value guarantees. The Group’s leases do not contain restrictions or covenants that restrict the Group from incurring other financial obligation. The Group also makes upfront payments to acquire the leased land from the owners, with lease periods of 50 years (“land use right”). There is no ongoing payment under the terms of these land use rights. The Group determines if an arrangement is a lease at inception and classifies leases as operating or finance leases in accordance with the recognition criteria in ASC 842 20 a. The lease transfers ownership of the underlying asset to the lessee by the end of the lease term. b. The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise. c. The lease term is for a major part of the remaining economic life of the underlying asset. d. The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already included in the lease payments equals or exceeds substantially all of the fair value of the underlying asset. e. The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. The Group classifies a lease as an operating lease when it does not meet any one of these criteria. For operating leases, the Group recognizes a right-of-use (“ROU”) asset and a lease liability based on the present value of the lease payments over the lease term on the consolidated balance sheets at commencement date. Lease expense is recorded on a straight-line basis over the lease term. As the Group’s leases do not provide an implicit rate, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. In estimating its incremental borrowing rate, the Group considers its credit rating, nature of underlying asset, and publicly available data of borrowing rates for loans of similar amount, currency and term as the lease. When the Group enters into sale-leaseback transactions as lessee, it first assesses whether the effectively transferred the underlying asset using the guidance in ASC 606. If the Group transfers the control of the leased asset to the buyer-lessor, the Group accounts for the sale of the underlying asset in accordance with ASC606. The subsequent leaseback of the asset is accounted for in accordance with ASC842 in the same manner as any other lease. If the seller-lessee does not transfer the control of the leased asset to the buyer-lessor, it is a failed sales-leaseback transaction and subsequently accounted for as a financing arrangement. Lessor Accounting The Group provides sales-type, direct financing and operating leases of various medical equipment primarily to hospitals in the PRC for periods ranging from 5 to 20 years. The Group classifies a lease as a sales-type lease in accordance with the recognition criteria in ASC 842-20-25 if the lease meets any one of the criteria mentioned above when determining a finance lease. For sales-type leases, the Group derecognizes the underlying asset and recognizes the net investment in the lease which is the sum of the lease receivable when collectability is probable at lease commencement. All initial direct costs are expensed at commencement date. The Group subsequently recognize interest income over the lease term using the effective interest method. Many of the Group’s leases contain variable lease payments based on the revenue or profit generated from the hospitals’ use of the underlying assets, the specific amounts of which are agreed monthly with the hospitals and settled based on the Group’s payment terms. In such circumstances, the Group recognizes a selling loss at commencement for the difference between the net investment in the lease and the carrying amount of the underlying asset. The Group does not include variable lease payments in the net investment in the lease and such payments are recognized as income in profit or loss in the period when the facts and circumstances on which the variable lease payments are based occur. When none of the criteria in ASC 842-20-25-2 are met, the Group classifies a lease as either a direct financing lease or an operating lease. The Group classifies as a direct financing lease if (i) the present value of the sum of lease payments and any residual value guarantee equals or exceeds substantially all the fair value of the underlying asset; and (ii) it is probable at inception that it will collect the lease payments plus any amount necessary to satisfy a residual value guarantee. If both of the criteria above are not met, the lease is classified as an operating lease. A general description of the Group’s lease income for each type of lease arrangement was as follows: i. The Group provides diagnostic imaging and/or radiation oncology system (“medical equipment”) to hospitals in the PRC through lease arrangements ranging from 5 to 20 years. In certain circumstances, the Group also provides full-time qualified system technician responsible for certain management services related to the radiotherapy or diagnostic services being performed by the hospital centers’ doctors to their patients. The Group receives a portion of the hospital’s revenue or profits from delivering the diagnostic imaging and / or radiation oncology services to patients, based on the revenue-sharing or profit-sharing formula predetermined in the contracts. The Group evaluates such arrangements at inception to determine whether they contain a lease and the lease classification under ASC 842. Most of such arrangements are classified as sales-type leases since these agreements often include an option to the hospitals to purchase the underlying asset which the hospitals are reasonably certain to exercise. Variable lease payments are fully constrained at inception of the contract. Variable fees are included in the arrangement transaction price when significant reversal is not expected to occur, which is the time when the hospital calculates the profit sharing under the arrangement and agreed upon by both parties, typically at month end. The Group’s arrangements may contain lease and non-lease components. Non-lease components primarily include payments for maintenance, update and consultation services related to the medical equipment. The Group allocates the lease and non-lease components of the contract consideration on a relative standalone selling price basis. ii. The Group elected the package of practical expedients which allowed the Group not to separate lease and non-lease components for diagnostic imaging and /or radiation oncology systems assets and recognizes profit sharing revenue under ASC 842. If there is a non-lease component whose pattern and timing is not the same the Group allocates the consideration on a relative standalone selling price basis. iii. The Group purchases hospital equipment from third party equipment manufacturers which is installed at various hospitals throughout the PRC. The hospitals utilize the hospital equipment radiotherapy or diagnostic services being performed by the hospital centers’ doctors to their patients. These lease arrangements include either title transfer upon maturity of the lease term or bargain purchase option held by the hospital. The Group receives fixed monthly rental payments from the hospital, which on a discounted basis does not give rise to any dealer profit. The Group records revenue attributable to direct financing leases so as to produce a constant rate of return on the balance of the net investment in the lease. Property, plant and equipment, net Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Estimated residual Category Estimated useful life value Buildings 20‑50 years — Medical equipment* 5‑20 years — Electronic and office equipment 3‑5 years — Motor vehicles 5 years — Leasehold improvement and building improvement shorter — * The cost of the asset is amortized over the estimated useful life. However, if ownership is transferred at the end of the lease term, the cost of the asset is amortized over the shorter of customer contract or the useful life of the asset which ranges from 5 to 20 years. Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extends the useful lives of property, plant and equipment is capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. Costs incurred in constructing new facilities, including progress payment, interest and other costs relating to the construction are capitalized and transferred to fixed assets upon completion. During the years ended December 31, 2020, 2021 and 2022 total interest costs incurred amounted to RMB148,642, RMB139,873 and RMB180,847 (US$26,220), respectively, in which interest costs capitalized amounted to RMB67,283, RMB66,084 and RMB60,490 (US$8,770), respectively. Intangible assets, net Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired in a business combination were recognized initially at fair value at the date of acquisition. The operating license relates to the medical business qualification and permission for medical equipment operation. The favorable leases relate to favorable lease terms as lessee based on market conditions that exist on the date of acquisition and are amortized over the remaining term of the leases. The customer relationship assets relate to the ability to sell existing and future services to existing customers and have been estimated using the income method. Operating leases relate to favorable operating lease terms based on market conditions that exist on the date of acquisition and are amortized over the remaining term of the leases. The technology relates to AI technology. The estimated useful life for the intangible assets is as follows: Estimated useful life Operating license 20 Favorable leases 12-17 Customer relationship 5‑16 Operating leases 9‑16 Software 3‑5 Technology 10 years Impairment of long-lived assets The Group evaluates its long-lived assets or asset group including acquired intangibles with finite lives for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of a group of long-lived assets may not be fully recoverable. When these events occur, the Group evaluates the impairment by comparing the carrying amount of the assets to future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the asset group over its fair value, generally based upon discounted cash flows or market prices, management utilizes significant assumptions including revenue growth rate operating margin, capital expenditure and discount rate. These assumptions might be affected by expectations about future market and economic conditions, as well as regulatory requirements. Impairment loss on long-lived assets of RMB8,500, nil and nil was recognized for the years ended December 31, 2020, 2021 and 2022, respectively. Derivative liability The Group evaluates its borrowings to determine if the contract or embedded component of the contract qualifies as derivatives to be separately accounted for in accordance with ASC 815, “Derivatives and Hedging”. The result of this accounting treatment is that the fair value of the embedded derivative, if required to be bifurcated, is marked-to-market at each balance sheet date and recorded as a liability. The change in fair value is recorded as fair value change from derivative in the financial statements (note 21). Treasury stock The Company has share repurchase programs where the shares are acquired and subject to cancellation. When a corporation’s stock is repurchased for constructive retirement with or without an intention to retire the stock formally in accordance with applicable laws, an excess of par or stated value over the cost of treasury shares shall be credited to additional paid-in capital. Fair value of financial instruments Financial instruments include cash and cash equivalents, restricted cash, accounts receivable, certain other current assets, net investment in direct financing leases, certain long-term investments, certain other non-current assets, short-term and long-term bank and other borrowings, accounts payables, certain other current liabilities, dividend payable, derivative liability and certain other long-term liabilities. The carrying amounts of the Group’s cash and cash equivalents, accounts receivable, certain other current assets and accounts payable approximate fair value because of their short maturities. The available for sale debt securities are recorded at fair value that measured using net asset value per share as a practical expedient shall not be categorized within the fair value hierarchy in accordance with ASC 820-10-35-54B. The derivative liability is recorded at fair value in accordance with ASC 815. The carrying amounts of the Group’s short-term and long-term bank and other borrowing and secured borrowings mostly bear interest at floating rates and therefore approximate the fair value of these obligations. For those bank borrowings with fixed interest rates, management uses the discounted cash flow technique based on market interest rate for similar instruments at the balance sheet date and concludes that the carrying value approximates the fair value. Revenue recognition The Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Group expects to receive in exchange for those goods or services using the five steps defined under ASC Topic 606. The Group performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group only applies the five-step model to contracts when it is probable that the Group will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Group reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. The Group recognizes revenue based on the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. The Group is a principal and records revenue on a gross basis when the Group is primarily responsible for fulfilling the service, has discretion in establish pricing and controls the promised service before transferring that service to customers. Otherwise, the Group records revenue at the net amounts as commissions. The Group recognizes revenues net of value added taxes (“VAT”). If revenue recognition is deferred to a later period, the related VAT are also deferred and will be recognized only upon recognition of the deferred revenue. ASC 606 revenue i. The Group provides stand-alone management and technical support services to certain hospitals which already possess radiotherapy and diagnostic equipment. Management support services typically include the provision of diagnosis and treatment techniques, expert support, advertising and promotion as well as comprehensive operational management services. Technical support services mainly include maintenance and upgrade of the radiotherapy and diagnostic equip |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 12 Months Ended |
Dec. 31, 2022 | |
CONCENTRATION OF RISKS | |
CONCENTRATION OF RISKS | 3. CONCENTRATION OF RISKS Concentration of credit risk Assets that potentially subject the Group to significant concentration of credit risk primarily consist of cash, restricted cash, accounts receivable, advances made to suppliers, loans receivables, advance made to and receivables form disposal of medical equipment from hospital customers. The maximum exposure of such assets to credit risk is their carrying amounts as of the balance sheet dates. As of December 31, 2022, substantially all of the Group’s cash and restricted cash were deposited in financial institutions located in the PRC, Hong Kong, United States of America, which management believes are of high credit quality. Accounts receivable are typically unsecured and are derived from network revenue earned from hospitals in PRC, as well as hospital revenue earned from patients in PRC and Singapore. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring of outstanding balances. Advances made to suppliers are typically unsecured and arise from deposits paid in advance for future purchases of medical equipment. Due to the Group’s concentration of advances made to a limited number of suppliers and the significant prepayments that are made to them, any negative events or deterioration in financial strength with respect to the Group’s suppliers may cause material loss to the Group and have a material adverse effect on the Group’s financial condition and results of operations. The risk with respect to advances made to suppliers is mitigated by credit evaluations that the Group performs on its suppliers prior to making any advances and the ongoing monitoring of its suppliers’ performance. With respect to advances made to and receivables form disposal of medical equipment from hospital customers hospital customers, the Group conducts periodic credit evaluation of its customers but does not require collateral or other security from its hospital customers. Concentration of customers The Group currently generates a substantial portion of its revenue from a limited number of customers. As a percentage of revenues, the top five customers accounted for 25.85%, 30.95% and 29.20% for the years ended December 31, 2020, 2021 and 2022, respectively. The loss of revenue from any of these customers would have a significant negative impact on the Group’s business. However, arrangements with customers are mostly long-term in nature. Due to the Group’s dependence on a limited number of customers and the profit sharing received by the Group depends on the performance of the hospitals that the Group does not control, any negative events with respect to the Group’s customers may cause material fluctuations or declines in the Group’s revenue and have a material adverse effect on the Group’s financial condition and results of operations. Concentration of suppliers A significant portion of the Group’s medical equipment and construction is sourced from its five largest suppliers who collectively accounted for 95%, 94% and 93% of total medical equipment and construction purchases of the Group for the years ended December 31, 2020, 2021 and 2022, respectively. Failure to develop or maintain the relationships with these suppliers may cause the Group not able to identify other suppliers timely in order to expand its business with new hospitals. Any disruption in the supply of medical equipment to the Group may adversely affect the Group’s business, financial condition and results of operations. Current vulnerability due to certain other concentrations The Group’s operations may be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 20 years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC’s political, economic and social conditions. There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective. The Group transacts most of its business in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China (the “PBOC”). However, the unification of the exchange rates does not imply that the RMB may be readily convertible into United States dollars or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. Additionally, the value of the RMB is subject to changes in central government policies and international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market. A medical-related business is subject to significant restrictions under current PRC laws and regulations. Currently, the Group conducts its operations in China through contractual arrangements entered into with hospitals in the PRC. The relevant regulatory authorities may find the current contractual arrangements and businesses to be in violation of any existing or future PRC laws or regulations. If so, the relevant regulatory authorities would have broad discretion in dealing with such violations. Foreign currency exchange rate risk The Group’s exposure to foreign currency exchange rate risk primarily relates to cash and restricted cash denominated in the US$. The depreciation (appreciation) of the RMB against US$ was (6.3)%, (2.3)% and 8.2% during the years ended December 31, 2020, 2021 and 2022, respectively. In the long term, the RMB may appreciate or depreciate more significantly in value against the U.S. dollar or other foreign currencies, depending on the market supply and demand with reference to a basket of currencies. |
ACQUISITIONS AND DISPOSALS
ACQUISITIONS AND DISPOSALS | 12 Months Ended |
Dec. 31, 2022 | |
ACQUISITIONS AND DISPOSALS | |
ACQUISITIONS AND DISPOSALS | 4. ACQUISITIONS AND DISPOSALS For the year ended December 31, 2020 Acquisition of New Spring Group In March 2020, MHM entered into a share purchase agreement with independent third parties, to purchase 70% or 14,000,000 shares of Guangzhou New Spring Hospital Management Co., Ltd (“New Spring Management”) with a consideration of RMB8,400. The business substance of the purchase was to acquire Guangzhou New Spring Hospital Clinic (“New Spring Clinic”), which was a wholly owned subsidiary of New Spring Management located in downtown Guangzhou, to attract more patients for the Group’s self-built cancer hospital in the suburb of Guangzhou. According to the agreement, the first to third instalment amounted to RMB7,560 in aggregate and was fully paid by MHM on the acquisition date, while the remaining RMB840 had been paid 6 months after the acquisition date as the original shareholder has fulfilled their obligation related to the acquisition. The acquisition date was on April 21, 2020 when the change of New Spring Management’s register information was completed. The fair value of the gross assets acquired during the acquisition is not concentrated in a single identifiable asset or a group of similar identifiable assets and it meets the definition of a business and was accounted for as business acquisition under ASC 805. The purchase price allocation was as follows: RMB Cash consideration in agreement 8,400 Non-controlling interest 3,078 Total 11,478 The Group, with the assistance of an independent third-party valuation firm, assessed the fair values of the acquired identifiable assets and liabilities assumed. The following table summarizes the purchase consideration and fair values of the assets acquired and liabilities assumed as of the acquisition date: RMB Current assets 424 Property, plant and equipment, net 3,281 Intangible assets 5,053 Goodwill 3,213 Long-term deferred and other non-current 1,202 Current liabilities (445) Deferred tax liabilities (1,250) Total 11,478 Disposal of CHS According to SPA, the share transfer price only included cash consideration of RMB247,803, no other tangible or intangible assets, financial instruments or contingent consideration were specified. The cash consideration was firstly net off by settlement of the intercompany balance due from CHS of RMB602. The Group further paid a commission fee directly related to the transaction of RMB44,039, which was also accounted for a net off the cash consideration. Management evaluated the valuation of the retained 10% noncontrolling investment with the assistance of external valuer. As the transaction was not a related party transaction, the transfer price was considered a fair reflection of the 90% of the entity value. The valuer further considered the discount rate lack of control “DLOC” by comparing similar business combination cases in the same healthcare industry. The DLOC was finalized at 17% and the valuation of the retained noncontrolling investment was determined at RMB22,925. There was no noncontrolling interest in CHS before the transaction. The carrying amount of the assets and liabilities of CHS was RMB235,714. With a foreign currency translation of RMB5,267, as a result, a loss This disposal does not represent a strategic shift on the Company’s major business and have no major effect on the Company’s results of operations, the disposal of the entity does not qualify as discontinued operation. The breakdown of assets and liabilities as of November 19, 2020 (the disposal date), were as follows: RMB US$ Current assets 4,909 752 Other non-current assets 257,368 39,443 Current liabilities (26,024) (3,988) Non-current liabilities (539) (83) Net assets disposed 235,714 36,124 The breakdown of disposal loss are as summarized below: RMB US$ Cash proceeds 247,803 37,977 Settlement of amount due from CHS (602) (92) Commission fee (44,039) (6,749) Fair value of retained noncontrolling investment 22,925 3,513 Disposition of net assets (235,714) (36,124) Foreign currency translation (5,267) (808) Loss on disposal of CHS (14,894) (2,283) As the remaining investment only represented 10% voting shares in CHS and the Group did not retain any seats in board, management considered the Group in fact lost the ability to exercise significant influence over operating and financial policies of CHS. The remaining equity investment did not have readily determinable fair value, management elected to measure the remaining investment using measurement alternative at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As at December 31, 2020, management determined there is no impairment indicator or any observable price change to the investment as the disposition date was near year end. For the year ended December 31, 2021 Acquisition of Healthingkon In November, December 2020 and January 2021, several subsidiaries of the Group entered into a series of restructuring framework agreements and capital increase agreements with a third party, Beijing Healthingkon Technology Co., Ltd. (“Healthingkon”) and Healthingkon’s shareholders to obtain 26.34% shares of Healthingkon with the total consideration of 89% shares of SH MZJH and RMB21,500. The acquisition date was on January 4, 2021, when the Group actually obtained the shareholder rights on Healthingkon. On the same day, a subsidiary of the Group entered into a concerted action agreement with two other shareholders of Healthingkon, pursuant to which the two shareholders agreed to be coordinated actors on the matters related to shareholders’ rights of Healthingkon. After the agreement, the Group obtained majority control over Healthingkon. And SH MZJH was under the control and consolidation of the Group before and after the transaction. The fair value of the gross assets acquired during the acquisition is not concentrated in a single identifiable asset or a group of similar identifiable assets and it meets the definition of a business and was accounted for as business acquisition under ASC 805. The purchase price allocation was as follows: RMB Cash consideration 21,500 Fair value of the share consideration 98,338 Total 119,838 The Group, with the assistance of an independent third-party valuation firm, assessed the fair values of the acquired identifiable assets and liabilities assumed. The following table summarizes the purchase consideration and fair values of the assets acquired and liabilities assumed as of the acquisition date: RMB Current assets 16,567 Property, plant and equipment, net 1,421 Intangible assets 133,183 Goodwill 368,221 Current liabilities (44,564) Deferred tax liabilities (19,829) Non-controlling interest (335,161) Total 119,838 The acquired amortizable intangible assets primarily include the AI technology of Healthingkon with the estimated remaining amortization periods of 10 years.The Group recognized RMB368,221 (US$57,782) in goodwill arising from this acquisition, primarily represents the expected synergies from combining the Healthingkon’s resources and experiences in the AI with the Group’s current business, and the further development of internet hospital business and cloud system solution business. The goodwill recognized is not deductible for income tax purposes. Pro forma results of operations for Healthingkon acquisition have not been presented because it was not material to the consolidated financial statements. For the year ended December 31, 2022 Disposal of Guofu Huimei and its subsidiaries In the fiscal year of 2022, the Group, Shanghai Epu Supply Chain Technology Co. LTD("Shanghai Epu") and Shanghai Rongsheng Medical Management Co., LTD("Shanghai Rongsheng") entered into a shares transfer agreement.Pursuant to Agreement, the Group would sell all the shares it held in Guofu Huimei and its subsidiaries ("GFHM disposal group") to Shanghai Epu and Shanghai Rongsheng with the consideration of RMB190,000(US$27,547). The disposal transaction was completed on December 26, 2022 and the net book value of the net asset is approximately RMB189,402 (US$27,460). There was no noncontrolling interest in Guofu Huimei and its subsidiaries before the transaction. The disposal of GFHM group represents the disposal of a portion of the hospital business reporting unit, the Company assigned RMB6,450 (US$935) of goodwill to the GFHM group on a relative fair value basis when the disposal transaction has completed. For the goodwill remaining in the hospital business reporting unit, the Company did not record any impairment loss for the years ended December 31, 2022 as the fair value of the reporting unit is in excess of its carrying value(Note 11). This disposal does not represent a strategic shift on the Group’s major business and have no major effect on the Company’s results of operations, the disposal of the entity does not qualify as discontinued operation. On December 26, 2022, the Company calculated a loss regarding the deconsolidation of the Guofu Huimei and its subsidiaries as follows: RMB US$ Cash proceeds 190,000 27,547 Disposition of net assets (189,402) (27,460) Goodwill (6,450) (935) Accumulated other comprehensive loss (55,694) (8,075) Loss on disposal of Guofu Huimei and its subsidiaries (61,546) (8,923) The following table summarizes the carrying amounts of the major classes of assets and liabilities of the disposed subsidiaries as of December 26, 2022: RMB US$ Current assets 199,727 28,957 Current liabilities (10,325) (1,497) Net assets disposed 189,402 27,460 |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2022 | |
RESTRICTED CASH | |
RESTRICTED CASH | 5. RESTRICTED CASH Restricted cash represented the proceeds from specialized bank borrowings for hospital construction. Balance of current restricted cash was RMB1,387 and RMB1,060 (US$154), and noncurrent restricted cash was RMB138 and nil as of December 31, 2021 and 2022, respectively. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | 6. ACCOUNTS RECEIVABLE As at December 31, 2021 2022 2022 RMB RMB US$ Accounts receivable 132,831 138,035 20,014 Allowance for credit losses (4,932) (7,764) (1,126) Accounts receivable, net 127,899 130,271 18,888 The rollforward in the allowance for credit losses were as follows: For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Balance at the beginning of the year 7,147 6,473 4,932 715 Cumulative effect of adopting ASU 2016-13 597 — — — Disposal of subsidiary (60) — — — Provisions for the year 1,879 1,463 2,832 411 Reversal of provisions from prior periods due to subsequent cash collection during the year (1,415) (983) — — Amounts written off during the year (1,675) (2,021) — — Balance at the end of the year 6,473 4,932 7,764 1,126 Provisions for allowance for doubtful debts are recorded in “general and administrative expenses” in the consolidated statements of comprehensive loss. Accounts receivable with carrying value of RMB10,056 and RMB11,166 (US$1,619)were used to secure certain bank borrowings as at December 31, 2021 and 2022 respectively (note 18). |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
PREPAYMENTS AND OTHER CURRENT ASSETS | 7. PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets consist of the following: As at December 31, Notes 2021 2022 2022 RMB RMB US$ Due from suppliers i) 25,622 31,660 4,590 Loan receivables ii) 169,272 294,130 42,645 Advances to employees 2,708 2,601 377 Dividend receivable — 1,643 238 Deductible value-added tax 45,031 44,268 6,418 Tax refund 216 234 34 Due from hospital 978 1,138 165 Deferred expenses 1,868 200 29 Others 26,177 26,767 3,882 271,872 402,641 58,378 Allowance for credit losses (14,853) (17,290) (2,507) 257,019 385,351 55,871 The Group records allowance for doubtful debts in “general and administrative expenses” in the consolidated statements of comprehensive loss. i) Amounts due from suppliers represented prepayments made for orders and returnable deposits of cancelled orders. The risk of loss arising from non-performance by or bankruptcy of suppliers is assessed prior to the order of the equipment. The Group has provided reserve for bad debt amounting to nil and nil on the amounts due from suppliers as at December 31, 2021 and 2022, respectively. ii) Loan receivables represented the loans to other parties, including loans to related parties such as the Guangdong Proton International Hospital Management Co., Ltd, and Beijing Allcure Medical Information Technology Co., Ltd. (“Allcure Information”) of total amount of RMB 154,707 and RMB 178,453 (US $25,873 ) as at December 31, 2021 and 2022, and third parties of RMB 14,565 and RMB 115,677 (US $16,772 ) as at December 31, 2021 and 2022, respectively. The Group recorded allowance for doubtful debts amounting to RMB 9,015 and RMB 9,017 (US$ 1,307 ) as at December 31, 2021 and 2022, respectively. Besides the credit losses provided to the balances to related parties, the Group recorded allowance for credit losses amounting to RMB 3,001 and RMB 3,011 (US $437 ) as of December 31, 2021 and 2022, respectively to balances to third parties . |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES | |
INVENTORIES | 8. INVENTORIES As at December 31, 2021 2022 2022 RMB RMB US$ Medicine 10,259 9,896 1,435 Medical material 27,754 72,971 10,580 Low-value consumables 692 2,575 373 38,705 85,442 12,388 Less: inventory provision (620) (607) (88) 38,085 84,835 12,300 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
PROPERTY, PLANT AND EQUIPMENT, NET | 9. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consist of the following: As at December 31, 2021 2022 2022 RMB RMB US$ Buildings 775,708 782,560 113,461 Medical equipment 484,653 532,165 77,157 Electronic and office equipment 57,215 58,038 8,415 Motor vehicles 3,718 3,717 537 Leasehold improvement and building improvements 78,724 75,032 10,879 Construction in progress 1,986,032 2,131,991 309,110 Total 3,386,050 3,583,503 519,559 Less: accumulated depreciation (224,877) (308,210) (44,686) Impairment charges (16,148) (16,148) (2,341) 3,145,025 3,259,145 472,532 Depreciation expenses were RMB55,030, RMB64,288 and RMB88,692 (US$12,859) for the years ended December 31, 2020, 2021 and 2022, respectively. Impairment loss of nil nil, and nil were recognized for network operating segment and impairment loss of nil, nil and nil for hospital operating segment for the years ended December 31, 2020, 2021 and 2022 respectively. For the years ended December 31, 2020, 2021 and 2022, impairment of nil, RMB2,645 and nil was written off for network operating segment upon the disposal of medical equipment and construction project. Impairment of nil,nil and nil was written off for hospital operating segment. For the year ended December 31, 2022, due to a series of cooperation agreemnets have been terminated by the Group and a cooperative hospital, RMB169,289 (US$24,545) decrease in construction in progress has been recorded accordingly. The Group held equipment under operating lease contracts with customers with an original cost of RMB105,980 and RMB128,486 (US$18,629) and accumulated depreciation of RMB78,247 and RMB100,681 (US$14,597), as of December 31, 2021 and 2022, respectively. The total net book value of the Group’s property, plant and equipment pledged as collateral for other borrowings as of December 31, 2021 and 2022 was RMB361,806 and RMB412,683 (US$ 59,833) (note 18), respectively. The total net book value of the Group’s construction in progress pledged to secure bank and other borrowings as of December 31, 2021 and 2022 was RMB1,709,761 and RMB1,754,217 (US$ 254,338) (note 18), respectively. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2022 | |
LEASE | |
LEASE | 10. LEASE A. Leases of medical equipment as lessor The following table presents the lease receivables derive from the Group’s operating, sales-type and direct financing leases: As at December 31, 2021 2022 2022 RMB RMB US$ Current Account receivable - Operating lease 13,318 93,883 13,612 Account receivable - Sales-type lease 1,010 906 131 Net investment in direct financing leases 2,699 — — Non-current Net investment in direct financing leases 4,796 — — Total 21,823 94,789 13,743 Lease receivables for operating and sales-type leases are presented in accounts receivable on the consolidated balance sheets. Lease receivables for direct financing leases are presented as net investment in direct financing leases. As of December 31, 2021 and 2022, the allowance of lease receivables was RMB2,637 and RMB2,595 (US$376), respectively. Accordingly, risk of default with respect to these receivables is remote. Lease receivables with carrying value of RMB10,056 and RMB340 (US$49) (note 18) were pledged as collaterals for bank and other borrowings of RMB58,058 and RMB47,409 (US$6,874) as of December 31, 2021 and 2022, respectively. The following table presents the lease income recognized relating to the Group’s operating, sales-type and direct financing leases: For the Year Ended December 31, 2022 Direct financing Sales-type leases leases Operating leases RMB US$ RMB US$ RMB US$ Selling loss recognized at the commencement date — — — — — — Interest income on net investment in the lease 3,326 482 414 60 — — Including: Income relating to variable lease payments not included in the measurement of the net investment in a lease 3,326 482 — — — — Lease income relating to lease payments 18,226 2,643 Including: Income relating to variable lease payments not included in the measurement of lease receivable — — — — 18,226 2,643 For the Year Ended December 31, 2021 Direct financing Sales-type leases leases Operating leases RMB US$ RMB US$ RMB US$ Selling loss recognized at the commencement date — — — — — — Interest income on net investment in the lease 5,210 818 1,361 214 — — Including: Income relating to variable lease payments not included in the measurement of the net investment in a lease 5,210 818 — — — — Lease income relating to lease payments 35,913 5,635 Including: Income relating to variable lease payments not included in the measurement of lease receivable — — — — 33,793 5,303 The Group’s lease assets do not contain material residual value by the end of the lease term. In order to mitigate the risks associated with the residual value of its leased assets, the Group usually enters into arrangements where the lease terms are approximate to the economic useful life of the leased assets so as to minimize their residual value. Net investment in direct financing leases is comprised of: As at December 31, 2021 2022 2022 RMB RMB US$ Minimum lease payments to be received 8,384 — — Unearned income (889) — — Net investment in direct financing leases 7,495 — — Current 2,699 — — Non-current 4,796 — — Total 7,495 — — The future minimum lease payments to be received from such non-cancelable direct financing leases is nil as of December 31, 2022, due to the termination of lease in the fiscal year of 2022. The future minimum lease payments to be received from such non-cancelable operating leases are as follows: Future minimum operating lease payments RMB US$ 2023 1,796 260 2024 1,796 260 2025 96 14 2026 96 14 2027 96 14 Above 5 years 16 2 Lease payments for the Group’s sales-type lease payments are all variable based on the profit or revenue generated from the underlying assets thus the Group does not recognize any net investment in the lease at commencement. B. Failed sales-leaseback transactions as seller-lessee The Group has failed sales-leaseback transactions in which the Group acts as seller-lessee but does not effectively transfer control of the underlying asset to the buyer-lessor. The Group accounts for failed sales-leaseback transactions as financings. The Group recorded RMB203,366 (US$29,485) and RMB346,533 (US$50,243) under “Long-term bank and other borrowings, current portion” and “Long-term bank and other borrowings, non-current portion”, respectively as of December 31, 2022. The effective interest rate used in the computation of interest expense ranged from 2.08% to 11.68%. Interest expenses recorded in the Group’s consolidated statement of comprehensive loss amounted to RMB44,880, RMB39,876, and RMB47,049 (US$6,821) for the years ended December 31, 2020, 2021 and 2022, respectively. C. Operating leases as lessee The components of lease cost were as follows: For the year ended December 31, 2022 RMB US$ Operating lease cost 37,587 5,450 Short term lease cost 326 47 Total 37,913 5,497 For the year ended December 31, 2022, total operating and short-term lease costs of RMB17,391 (US$2,521) and RMB20,522 (US$2,976) were recorded in cost of revenue and general and administrative expenses, respectively. Other information For the year ended December 31, 2022 RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 12,887 1,868 ROU assets obtained in exchange for operating lease liabilities* 105,200 15,253 Weighted-average remaining lease terms (in years) 4 4 Weighted-average discount rate 5.75 % 5.75 % * Includes transition liabilities upon adoption of ASC 842, as well as new leases entered into during the year ended December 31, 2022. Changes in the ROU asset and liability are presented net within operating activities. Future minimum lease payments for operating leases as of December 31, 2022 are as follows: Minimum Lease Payments RMB US$ Year ending December 31, 2023 48,512 7,034 2024 23,719 3,439 2025 23,702 3,436 2026 23,302 3,378 2027 21,723 3,150 Thereafter 189,280 27,443 Total future lease payments 330,238 47,880 Less: Imputed interest 94,369 13,683 Total lease liability balance 235,869 34,197 The Group did not have any leasing transactions with related parties. Land use rights The following table presents the original cost payment, accumulated amortization and net carrying value of the Group’s land use rights for the periods presented: As at December 31, 2021 2022 2022 RMB RMB US$ Right-of-use Right-of-use Right-of-use Asset asset asset Land use rights 463,992 464,209 67,304 Less: accumulated amortization (47,096) (56,723) (8,224) Net carrying value 416,896 407,486 59,080 As of December 31, 2021 and 2022, the Group recorded land lease payment under “Right-of-use assets, net” of RMB416,896 and RMB407,486 (US$59,080), respectively. Amortization expenses for the years ended December 31, 2020, 2021 and 2022 were RMB9,513, RMB9,621 and RMB9,627 (US$1,396), respectively. The net book value of the Group’s land use right payments pledged to secure bank and other borrowings was RMB405,117 and RMB395,973 (US$ 57,411) (note 18) as of December 31, 2021 and 2022, respectively. The estimated annual amortization expenses for the land leases payment for each of the five succeeding years are as follows: Amortization RMB US$ 2023 9,627 1,396 2024 9,627 1,396 2025 9,627 1,396 2026 9,627 1,396 2027 9,627 1,396 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL. | |
GOODWILL | 11. GOODWILL The goodwill of RMB581,877 and RMB575,427 (US$83,429) as of December 31, 2021 and 2022 represented the goodwill of RMB165,171 generated from the acquisition of GFHM, CMCC, SJYH and BPMC by the Group in 2018, the goodwill of RMB45,272 generated from the acquisition of Tianjin Jiatai Group by the Group in 2019, the goodwill of RMB3,213 generated from the acquisition the New Spring Group in 2020, and the goodwill of RMB368,221 generated from the acquisition the Healthingkon in 2021 (Note 4), and the decrease of goodwill in the amount RMB6,450($935) generated from the disposal of GFHM in 2022(Note 4). The changes in the carrying amount of goodwill are as follow: For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Balance as of January 1 210,443 213,656 581,877 84,364 Addition 3,213 368,221 — — Disposal — — (6,450) (935) Impairment — — — — Balance as of December 31 213,656 581,877 575,427 83,429 No impairment was recognized for the years ended December 31, 2020, 2021 and 2022. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 12. INTANGIBLE ASSETS, NET Intangible assets consist of the following: Customer Operating Operating Favorable relationship lease license lease intangibles intangibles intangibles intangibles Technology Others Total RMB RMB RMB RMB RMB RMB RMB Intangible assets, net at January 1, 2021 — — 502,968 17,821 — 2,032 522,821 Acquisition of subsidiaries (note4) — — — — 132,190 1,186 133,376 Addition of software — — — — — 31,811 31,811 Foreign Exchange Gain — — — — — — — Amortization expenses — — (12,672) (1,565) (13,219) (2,715) (30,171) Intangible Asset impairment — — — — — — — Intangible assets, net at December 31, 2021 — — 490,296 16,256 118,971 32,314 657,837 Acquisition of subsidiaries (note4) — — — — — — — Addition of software — — — — — 3,334 3,334 Decrease from cooperation termination with a cooperative hospital — — (272,910) (272,910) Foreign Exchange Gain — — — — — — — Amortization expenses — — (12,672) (1,564) (13,139) (7,120) (34,495) Intangible Asset impairment — — — — — — — Intangible assets, net at December 31, 2022 — — 204,714 14,692 105,832 28,528 353,766 Intangible assets, net at December 31, 2022, in US$ — — 29,681 2,130 15,344 4,136 51,291 At December 31, 2022 Intangible assets, cost 32,449 418 253,440 21,010 132,190 47,334 486,841 Less: accumulated amortization (31,486) (418) (48,726) (6,318) (26,358) (18,806) (132,112) Less: intangible asset impairment (963) — — — — — (963) Intangible assets, net at December 31, 2022 — — 204,714 14,692 105,832 28,528 353,766 i) Amortization expenses for intangibles were RMB 15,756 , RMB 30,171 and RMB 34,495 (US $5,001 ) for the years ended December 31, 2020, 2021 and 2022, respectively. Impairment loss on intangible assets was nil , nil and nil for the years ended December 31, 2020, 2021 and 2022, respectively. ii) For the year ended December 31, 2022, due to a series of cooperation agreemnets have been terminated by the Group and a cooperative hospital, RMB 272,910 (US $39,568 ) decrease of intangible assets has been recorded accordingly. The estimated annual amortization expenses for the above intangible assets for each of the five succeeding years are as follows: Amortization RMB US$ 2023 35,070 5,085 2024 35,020 5,077 2025 34,427 4,991 2026 33,329 4,832 2027 215,920 31,306 |
DEPOSITS FOR NON-CURRENT ASSETS
DEPOSITS FOR NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
DEPOSITS FOR NON-CURRENT ASSETS | |
DEPOSITS FOR NON-CURRENT ASSETS | 13. DEPOSITS FOR NON-CURRENT ASSETS Deposits for non-current assets consist of the following: As at December 31, 2021 2022 2022 RMB RMB US$ Deposits for purchases of property, plant and equipment* 224,866 8,932 1,295 224,866 8,932 1,295 * The amount represented interest-free non-refundable partial payments to suppliers of medical equipment and to construction engineering group for construction of hospitals. The remaining contractual obligations associated with these purchase contracts that the suppliers need to undertake are approximately RMB257,165 and RMB220,972 (US$32,038)as at December 31, 2021 and 2022 respectively, which are included in the amount disclosed as purchase commitments in note 27. The Group recognized impairment loss on deposits for non-current assets of RMB8,500, nil and nil for the years ended December 31, 2020, 2021 and 2022, respectively. The amount of written off for the gross amount of deposits and the allowance is RMB8,500 and nil for the years ended December 31, 2021 and 2022, respectively, since those deposits are deemed uncollectible. As at December 31, 2021 and 2022, certain of the Group’s deposits for non-current assets with a total net book value of nil and nil were pledged for other borrowings of nil and nil, respectively. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM INVESTMENTS | |
LONG-TERM INVESTMENTS | 14. LONG-TERM INVESTMENTS Long-term investments held by the Group consisted of the following: As at December 31, 2021 2022 2022 RMB RMB US$ Equity investments without readily determinable fair value 51,524 51,524 7,470 Equity method investments 277,056 336,254 48,752 Available-for-sale debt securities 62,045 50,096 7,263 Less: Impairment loss — — — Total 390,625 437,874 63,485 Equity investments without readily determinable fair value: Equity interest owned by the Group As at December 31, Note 2021 2022 RMB RMB Allcure Information i) 22,160 9.6 % 22,160 9.6 % Concord Healthcare Singapore Pte. Ltd ii) 22,925 10 % 22,925 8.73 % Legion Healthcare Partners LLC iii) 6,439 5.83 % 6,439 5.83 % Total 51,524 51,524 i) 20% equity interest of Allcure Information was obtained in 2015. During year ended December 31, 2018, Allcure Information issued new shares to other investors and diluted the share ownership of the Group to 9.6% . As of December 31, 2021 and 2022, the share ownership of the Group remained 9.6% . As of December 31, 2021 and 2022, no impairment was recorded for the investment. ii) As stated in note 4, the balance represented 10.0% remaining noncontrolling interests in CHS, which has been diluted to 8.73% due to a new capital injection from another shareholder as of December 31, 2022. The investment was accounted for using measurement alternative. As of December 31, 2021 and 2022, no impairment was recorded for the investment. iii) In March, 2021, the Group obtained the 5.83 % equity interest of Legion Healthcare Partners LLC through purchase. As of December 31, 2022, the share ownership of the Group remained 5.83 %. As of December 31, 2021 and 2022, no impairment was recorded for the investment. The Group did not record any unrealized gains (upward adjustments) and losses (downward adjustments and impairment) for equity investments without readily determinable fair values for the years presented. Equity method investments: Equity interest owned by the Group as at December 31, Notes 2021 2022 RMB RMB Xi’an JiangyuanAndike Ltd. (“JYADK”) 12,468 29.70 % 10,496 29.70 % Suzhou Shengshan Huiying Venture Capital Investment LLP. (“Suzhou Shengshan”) i) 11,051 5.15 % 12,939 5.15 % Zhejiang Marine Leasing Ltd ii) 167,044 20.00 % 179,231 20.00 % Guangdong Hengjian Proton Medical Industry Co., Ltd (“Guangdong Hengjian”) iii) 86,493 14.20 % 86,315 14.20 % Shanghai Xinhe Enterprise Management Center (Limited Partnership) ("Shanghai Xinhe") iv) — — % 45,005 99.99 % Shanghai Changshengshu Management Co. LTD("Shanghai Changshengshu") v) — — % 1,968 20.00 % Guangzhou Yicheng Biological Immune Technology Co. LTD("Guangzhou Yicheng") vi) — — % 300 30.00 % Total 277,056 336,254 i) In 2017, the Group entered into a partnership agreement to subscribe for 8.13% interest in Suzhou Shengshan, a partnership engaged in equity and capital investment, with a subscription amount of RMB 10,000 . In 2018, 2019 and 2020, with the subscribed capital injection from new investors, the equity interest that the Group shared in Suzhou Shengshan was diluted to 5.41%, 5.15% and 5.15% respectively as of December 31, 2018, 2019 and 2020. As of December 31, 2021 and 2022, the percentage the Group held remained unchanged. According to the partnership agreement, the Group acts as a limited partner and has significant influence over Suzhou Shengshan's daily operation due to it’s agreed that all issue of operation and management shall be subject to the unanimous consent of all partners. ii) On February 28, 2019, China Medical Service Holdings Ltd. (HK), a subsidiary of the Group, entered into a shares purchase agreement with Merge Limited to purchase 20% equity interests of Zhejiang Marine. As the Group held 20% equity share and had the ability to exercise significant influence over the Zhejiang Marine, the Group applied the equity method of accounting to the investment. The registration change was completed on June 10, 2020 and Zhejiang Marine became an associate company of the Group since then. As of December 31, 2021 and 2022, the percentage the Group held remained unchanged. The total book value of the Group’s long-term investments pledged to secure other borrowings as of December 31, 2020, 2021 and 2022 was RMB 166,870 , RMB 167,044 and RMB 179,231 (US $26,986 ) (note 18), respectively. iii) In December 2020, Aohua Technology, a subsidiary of the Group, entered into a capital increase agreement with Guangdong Hengjian and the original shareholders of Guangdong Hengjian to obtain shares of Guangdong Hengjian. The registration change was completed on January 13, 2021, and as of December 31, 2021 and 2022, RMB 86,649 has been paid, which takes 14.20% shares. The Group has significant influence over Guangdong Hengjian due to the Group was entitled to delegate 2 out of 5 directors in the board and participated in policy-making processes of Guangdong Hengjian. iv) In March 2022, Shanghai Medstar, a subsidiary of the Group, established Shanghai Xinhe with Shanghai Xinfu Enterprise Management Center (Limited Partnership), and acted as a limited partner. The Group obtained 99% shares of Shanghai Xinhe in the consideration of 2.05% shares in MHM, the carrying value of which was RMB 45,115 . The Group cannot consolidate Shanghai Xinhe as neither Shanghai Xinhe is a VIE nor the Group owns a majority kick-out right in Shanghai Xinhe. The Group has significant influence over Shanghai Xinhe derived from 99% ownership in the partnership as a limited partner. v) In October 2022, SH MZJH, a subsidiary of the Group, entered into a capital increase agreement with Shanghai Changshengshu to purchase 20% equity interests of Shanghai Changshengshu with the consideration amount of RMB 2,000 . The Group has significant influence over Shanghai Changshengshu due to the voting power from shareholder to the policy-making processes of Shanghai Changshengshu. vi) In December 2022, GCMTIC, a subsidiary of the Group, entered into a capital purchase agreement with Guangzhou Yicheng to purchase 30% equity interests of Guangzhou Yicheng with the consideration amount of RMB 300 . The Group has significant influence over Guangzhou Yicheng due to the Group was entitled to delegate 1 out of 3 directors in the board and participated in policy-making processes of Guangzhou Yicheng. Available-for-sale debt securities: As at December 31, 2022 Redemption Redemption Notice Fair value Frequency Period RMB Private equity funds 50,096 Annually 5 50,096 Available-for-sale debt securities represent an investment in a private equity fund made in the year ended December 31, 2020. In May 2021 and March 2022, the Company redeemed RMB19,978 and RMB11,949 (US$1,732) investment in the private equity fund. The private equity fund was controlled by a third-party fund management company. The fund was founded on June 27, 2016. The private equity fund invested into debt securities of a third-party company. The investment cannot be redeemed during the fund closed period. The Open Day was the annual date of the foundation date of the fund. This investment is carried at fair values which was estimated using the net asset value,and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income (loss). |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 15. OTHER NON-CURRENT ASSETS Other non-current assets consist of the following: As at December 31, Notes 2021 2022 2022 RMB RMB US$ Deposit-long-term i) 6,232 6,249 906 Advance to hospitals-noncurrent ii) 1,104 1,002 145 Others iii) 13,440 7,842 1,137 20,776 15,093 2,188 i) Impairment losses of RMB 19 and RMB (2) were provided for the balances as at December 31, 2021 and 2022. ii) Impairment losses of nil and RMB 102 (US $15 ) were provided for the balances as at December 31, 2021 and 2022 . iii) Impairment losses of RMB 361 and RMB 797 (US$ 116 ) were provided for the balances as at December 31, 2021 and 2022. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 16. ACCRUED EXPENSES AND OTHER LIABILITIES The components of accrued expenses and other liabilities are as follows: As at December 31, 2021 2022 2022 RMB RMB US$ Accrued expenses 121,149 75,010 10,875 Salaries and welfare payable 42,628 73,803 10,700 Business and other taxes payable 20,954 27,961 4,054 Contractual liabilities 81,032 100,802 14,615 Other payables 116,414 142,305 20,635 382,177 419,881 60,879 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 17. SHAREHOLDERS’ EQUITY Ordinary Shares The Company’s ordinary shares are divided into Class A ordinary shares and Class B ordinary shares. The rights of the holders of Class A and Class B ordinary shares are identical, except with respect to voting and conversion rights. On January 27, 2015, the directors of the Company had resolved, subject to the adoption of the Amended M&A, to issue 45,787,948 Class B Ordinary Shares to Morgancreek Investment Holdings Limited (“Morgancreek”), in exchange of 45,787,948 Class A Ordinary Shares held by Morgancreek. During the year ended December 31, 2018, the 45,787,948 Class A ordinary shares of Morgancreek were converted to Class B ordinary shares. As of December 31, 2022, there were 84,463,737 Class A and 45,787,948 Class B ordinary shares outstanding. Share repurchase program On August 10, 2015, the Board of Director approved a share repurchase program pursuant to which, the Company is authorized to repurchase up to US$20,000 of its outstanding ADSs at a price not exceeding US$7.99 per ADS. During the year ended December 31, 2015 and 2016, the Company repurchased 614,033 and 967,408 ADSs, representing 1,842,099 and 2,902,224 ordinary shares, with a total consideration of US$3,111 and US$4,542 respectively. No ADS was repurchased in 2020, 2021 and 2022. Special dividend No special dividend or other dividend was declared in 2020, 2021 and 2022. |
BANK AND OTHER BORROWINGS
BANK AND OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
BANK AND OTHER BORROWINGS | |
BANK AND OTHER BORROWINGS | 18. BANK AND OTHER BORROWINGS As at December 31, 2021 2022 2022 RMB RMB US$ Total bank and other borrowings 2,477,948 2,984,010 432,641 Comprised of: Short-term 136,510 168,601 24,445 Long-term, current portion 162,842 343,982 49,873 299,352 512,583 74,318 Long-term, non-current portion 2,178,596 2,471,427 358,323 2,477,948 2,984,010 432,641 Certain bank borrowings are secured by equipment with a net carrying value of RMB361,806 and RMB412,683 (US$59,833) (note 9), accounts receivable with a carrying value of RMB10,056 and RMB11,166 (US$1,619) (note 6) (including lease receivables with a carrying value of RMB10,056 and RMB340 (US$49) (note 10), certain land use rights (which are recorded as “right-of-use assets”) with a carrying value of RMB405,117 and RMB395,973 (US$57,411) (note 10), certain long-term investments with a carrying value of RMB167,044 and RMB179,231 (US$25,986) (note 14), certain construction in progress with a carrying value of RMB1,709,761 and RMB1,754,217 (US$254,338) (note 9), as of December 31, 2021 and 2022, respectively. The short-term bank and other borrowing bore a weighted average interest of 5.86 % and 6.60% per annum, and the long-term bank and other borrowings bore a weighted average interest of 6.31% and 6.48% per annum, respectively, as of December 31, 2021 and 2022. Bank and other borrowings amounted to RMB156,555 (US$22,698) (2021: RMB126,362) and RMB2,827,455 (US$409,943) (2021:RMB2,351,586) were denominated in US$ and RMB, respectively as of December 31, 2022. The maturity analysis of the long-term bank and other borrowings are as follows: RMB US$ Within one year 343,982 49,873 Between one and two years 542,952 78,721 Between two and three years 380,079 55,106 Between three and four years 358,615 51,994 Above four years 1,189,781 172,502 2,815,409 408,196 As of December 31, 2022, the Group had unutilized short-term bank credit lines and unutilized long-term bank credit lines amounted to RMB52,101 (US$7,554) and nil, respectively. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | 19. RESTRICTED NET ASSETS The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. In accordance with the PRC Regulations on Enterprises with Foreign Investment and their articles of association, a foreign invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Additionally, in accordance with the company law of the PRC, a domestic enterprise is required to provide at least 10% of its annual after-tax profit to the statutory common reserve until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. A domestic enterprise is also required to provide discretionary surplus reserve, at the discretion of the board of directors, from the profits determined in accordance with the enterprise’s PRC statutory accounts. As a result of these PRC laws and regulations that require annual appropriations of 10% of after-tax income to be set aside prior to payment of dividends as general reserve fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. In addition, foreign exchange and other regulation in the PRC may further restrict the Company’s PRC subsidiaries from transferring funds to the Company in the form of dividends, loans and advances. The amount of net assets restricted was RMB3,991,644 (US$578,734) as of December 31, 2022. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2022 | |
TAXATION | |
TAXATION | 20. TAXATION Enterprise income tax: Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. British Virgin Islands Under the current laws of the British Virgin Islands, subsidiaries in British Virgin Islands are not subject to tax on income or capital gains. In addition, upon payments of dividends by these companies to their shareholders, no British Virgin Islands withholding tax will be imposed. United States US Proton is incorporated in the State of Delaware, U.S.A. in 2011. The entity is subject to U.S. Federal and state Income Tax (graduated income tax rate were 21% in 2020, 2021 and 2022 on its taxable income under the current laws of the United States of America. The company’s activities are located solely in the state of Texas, as such it is subject to Texas Franchise Tax. The amount of current income tax for federal and state for US Proton was 1,672,362 and 196 (USD$28) for the years ended December 31, 2020, 2021, and 2022. Singapore China Medstar is incorporated in Singapore and does not conduct any substantive operations of its own. CHS, incorporated in Singapore, was acquired in April 2015 and was in a loss position since its establishment to its disposal in November 2020. No provision for Singapore profits tax has been made in the consolidated financial statements as the companies have no assessable profits for the years ended December 31, 2020, 2021 and 2022. In addition, upon payments of dividends by China Medstar and CHS to its shareholder, no Singapore withholding tax will be imposed. Hong Kong Subsidiaries in Hong Kong do not conduct any substantive operations of their own. No provision for Hong Kong profits tax has been made in the consolidated financial statements as the Group has no assessable profits for the year presented. In addition, upon payment of dividends by these companies to their shareholders, no Hong Kong withholding tax will be imposed. China The applicable rate for China entities is subject to the PRC EIT at the rate of 25% for the period since 2012. Dividends paid by PRC subsidiaries of the Group out of the profits earned after December 31, 2007 to non-PRC tax resident investors would be subject to PRC withholding tax. The withholding tax would be 10%, unless a foreign investor’s tax jurisdiction has a tax treaty with China that provides for a lower withholding tax rate and the foreign investor is qualified as a beneficial owner under the relevant tax treaty. In general, for circumstances not being tax evasion, the PRC tax authorities will conduct examinations of the PRC entities’ tax filings of up to five years. Accordingly, the PRC entities’ tax years from 2017 to 2022 remain subject to examination by the tax authorities. Loss before income taxes consists of: For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Non – PRC (142,750) 5,451 45,211 6,555 PRC (298,903) (534,688) (885,107) (128,327) (441,653) (529,237) (839,896) (121,772) The current and deferred components of the income tax expense (benefit) appearing in the consolidated statements of comprehensive loss are as follows: For the Year Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Current tax expense (benefit) (24,047) 4,115 (8,765) (1,271) Deferred tax benefit (13,577) (10,680) (62,141) (9,009) (37,624) (6,565) (70,906) (10,280) A reconciliation of the differences between the statutory tax rate and the effective tax rate for EIT is as follows: For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Loss before income taxes (441,653) (529,237) (839,896) (121,772) Income tax computed at the tax rate of 25% (110,413) (132,309) (209,974) (30,443) Effect of different tax rates in different jurisdictions 10,715 2,798 (20,584) (2,983) Non-deductible expenses 74,225 (10,502) 21,543 3,123 Non-taxable income (78,447) 9,183 (55,705) (8,076) Statutory income (expense) (2,544) 3,994 25,419 3,685 Interest and penalty (465) (12,918) (7,254) (1,052) Deferred tax expense (2,314) (13,953) 7,056 1,023 Changes of valuation allowance 71,545 142,806 168,102 24,372 Withholding tax 74 4,336 491 71 (37,624) (6,565) (70,906) (10,280) Deferred Tax The components of deferred taxes are as follows: As at December 31, 2021 2022 2022 RMB RMB US$ Deferred tax asset Net operating loss* 216,902 357,483 51,830 Foreign exchange loss 7,679 1,330 193 Depreciation and amortization 10,479 22,535 3,267 Property, plant and equipment impairment 6,997 6,997 1,014 Deposits for non-current assets 18,475 18,475 2,679 Allowance for net investment in financing lease 5,137 5,137 745 Allowance for doubtful accounts 14,013 14,746 2,138 Lease liabilities 56,673 58,901 8,540 Other long-term assets 92,261 104,912 15,211 Equity investment 7,574 7,553 1,095 Others 7,971 13,728 1,990 Total deferred tax assets 444,161 611,797 88,702 less: Valuation allowance** (396,919) (565,022) (81,920) Net deferred tax assets 47,242 46,775 6,782 Deferred tax liabilities Equity investment (287) (1,170) (170) Property, plant and equipment (1,428) (1,682) (244) Disposal of Beijing Century Friendship (3,126) (3,126) (453) Intangible assets (156,189) (81,336) (11,793) Right-of-use assets (48,259) (46,873) (6,796) Capitalized interest (19,179) (19,179) (2,781) Others (3,198) (5,986) (867) Total deferred tax liabilities (231,666) (159,352) (23,104) Deferred tax assets, net — — — Deferred tax liabilities, net (184,424) (112,577) (16,322) * As of December 31, 2022, the Group had net operating losses from several of its PRC and oversea entities of RMB839,896 (US$121,772), which can be carried forward to offset future taxable profit. As per filed tax returns, the net operating loss from PRC entities will expire between 2023 to 2027. For the net operating loss from overseas entities, there is no limitation of expiration according to the statute of Hong Kong and US. ** The Group records a valuation allowance on its deferred tax assets that is sufficient to reduce the deferred tax assets to an amount that is more likely than not to be realized. Future reversal of the valuation allowance will be recognized either when the benefit is realized or when it has been determined that it is more likely than not that the benefit in future earnings will be realized. The movement of valuation allowance is as follows: For the Year Ended December 31, 2021 2022 2022 RMB RMB US$ Balance at the beginning of year (257,579) (396,919) (57,548) Change of valuation allowance in the current year (139,340) (168,103) (24,372) Balance at the end of year (396,919) (565,022) (81,920) Unrecognized Tax Benefits The reconciliation of the beginning and ending amount of unrecognized tax benefits excluding the penalty and interest is as follows: For the Years Ended December 31, 2021 2022 2022 RMB RMB US$ Balance at the beginning of year 65,093 81,901 11,875 Changes based on tax positions related to the current year 19,766 322 47 Additions related to prior year tax position 8,692 1,072 155 Decreases related to prior year tax position (7,580) (6,617) (959) Decrease related to disposal of CMSI — (7,861) (1,140) Decreases relating to expiration of applicable statute of limitation (3,322) (3,572) (518) Foreign currency translation (748) 1,927 279 Balance at the end of year 81,901 67,172 9,739 As of December 31, 2021, and 2022, the Group had unrecognized tax benefit of RMB81,901 and RMB67,172 (US$ 9,739), respectively, among which, RMB24,213 and RMB19,962 (US$2,894) were presented on a net basis against the deferred tax assets related to tax losses carry forwards on the consolidated balance sheets. At December 31, 2021 and 2022, there were RMB48,226 and RMB39,412 (US$5,714) of unrecognized tax benefits that if recognized would affect the annual effective tax rate. The final outcome of the tax uncertainty is dependent upon various matters including tax examinations, interpretation of tax laws or expiration of statute of limitations. However, due to the uncertainties associated with the status of examinations, including the protocols of finalizing audits by the relevant tax authorities, there is a high degree of uncertainty regarding the future cash outflows associated with these tax uncertainties. However, an estimate of the range of the possible change cannot be made at this time. The Group recognized a decrease amounting to RMB465, a decrease amounting to RMB12,918 and a decrease amounting to RMB7,254 (US$1,052) in interest and penalties during the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2021, and 2022, the Group recognized of interest and penalties of RMB17,660 and RMB13,091 (US$1,898), respectively. Uncertain tax benefits were recorded as other long-term liabilities. Value-added taxes (“VAT”) Revenue earned from the provision of leasing and technical services was subject to 5% business tax prior to the pilot of VAT reform (e.g. Shanghai starts the VAT pilot on January 1, 2012). The final stage of VAT reform has come into effect on 1 May 2016, the pilot program of the collection of VAT in lieu of business tax has been promoted nationwide in a comprehensive manner. Under the current VAT regulation, for the contracts signed prior to the pilot of VAT reform or the movable property acquired prior to the pilot of VAT reform for operating leasing, the relevant rental income from leasing arrangement of movable property could adopt the simple tax calculation method and be subject to 3% VAT levy rate. Other than the above, if the contracts signed after the pilot of VAT reform, the rental income derived from movable property leasing arrangement is subject to VAT at 17%. After a new VAT reform came into effect on 1 April 2019, the rental income derived from movable property leasing arrangement is subject to VAT at 13%. The technical service income is subject to VAT at 6%. |
Derivative liability
Derivative liability | 12 Months Ended |
Dec. 31, 2022 | |
Derivative liability | |
Derivative liability | 21. Derivative liability In August 2021, Ascendium Group Limited (“Ascendium”), a subsidiary of the Company, entered into debt contracts with Great Lion Global Limited (“Great Lion Debt”) and Vantage Chance Limited (“Vantage Debt”) for the borrowings with the principal amount of RMB31,863 (US$5,000) and RMB63,726 (US$10,000) respectively with the terms of two years. The issuance date was August 10, 2021 and November 10, 2021 respectively with no issuance cost. The basic interest rate per annum was 4.5%. 11% and 22% shares of Concord Hospital Management Group Ltd. (HK) that held by Ascendium were pledged for the two debts respectively. According to the contracts, there are additional payment terms that depends on the occurrence of a qualified IPO, which are as follow: if a specific subsidiary of the Group successfully complete a qualified IPO during the borrowing period, the Group need to pay the lender an excess return, which was not a fixed amount and varied with the future stock price of the listed subsidiary; if failed, the Group need to pay the additional interest with an interest rate of 5.5% per annum. The Group evaluated the borrowings and determined the additional payment terms as the embedded component of the debt contracts, which qualified as derivatives to be separately accounted for in accordance with ASC 815, “Derivatives and Hedging”. The Group engaged an appraiser to perform fair value measurement of the embedded derivative. According to the appraisal report, the fair value of the embedded derivatives, which was recorded as derivative liability in the financial statements, as of December 31, 2021 and 2022, was RMB1,969 and RMB1,793 (US$260) respectively for Great Lion Debt, and RMB3,894 and RMB3,497 (US$507) respectively for Vantage Debt. Because of the fair value change of the embedded derivative liability, the Group recognized a gain from fair value change totaling RMB1,015 (US$147) in the financial statements. The Group has accounted the debt host as long-term bank and other borrowings, current portion. The net proceeds the Group received from the issuance of the debt was RMB34,486 (US$5,000) and RMB68,972 (US$10,000) respectively. Because the fair value of derivative liability on the issue date should be recorded as an adjustment of the carrying amount of the debt, the totaling carrying amount of the two debts was RMB89,726 and RMB98,168 (US$14,233) as of December 31,2021 and 2022, respectively. The total adjustment to the carrying amount was RMB5,824 (US$914) on the issuance date, and it will be amortized as interest expenses over the period of 2 years from the issuance date to the maturity date, using the effective interest method. |
Other long-term liabilities
Other long-term liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other long-term liabilities | |
Other long-term liabilities | 22. Other long-term liabilities As at December 31, Notes 2021 2022 2022 RMB RMB US$ Accrued unrecognized tax benefits & surcharge i) 75,347 60,299 8,743 Lease deposit received from hospital 2,000 2,000 290 Convertible Note ii) 20,000 20,000 2,900 Others 1,254 1,785 259 98,601 84,084 12,192 i) The amounts of unrecognized tax benefit are based on the recognition and measurement criteria of ASC Topic 740. The balance is presented as non-current liability in the consolidated financial statements as at December 31, 2022 due to the fact that the Group does not anticipate payments of cash within one year. The Group recorded accrued unrecognized tax benefits & surcharge amounting to RMB 75,347 and RMB 60,299 (US $ 8,743 ) (note 27) as of December 31, 2021 and 2022, respectively. ii) Convertible Note In December 2021, Healthingkon, a subsidiary of the Company, issued RMB20.0 million convertible note (“2021 Convertible Note”) to a single investor. Healthingkon received proceeds of RMB20.0 million on December 7, 2021 with no issuance costs. The Convertible Note bear interest of 4.75% per annum and have terms of 5 years upon the receipt of the principal. As of December 31, 2022, 2021 Convertible Note has not been paid or converted into ordinary shares of Healthingkon. Conversion Features and Rates The 2021 Convertible Note can be converted, at the holder’s option, into ordinary shares of Healthingkon. The holder has the option to choose when to convert: 1) If the holder choose to convert in the first 3 years upon the receipt of the principal, the 2021 Convertible Note could be converted into 2.5% ordinary shares of Healthingkon; or 2) If the holder choose to convert in the fourth or fifth year upon the receipt of the principal, the 2021 Convertible Note could be converted into the percentage of ordinary shares equal to RMB20.0 million divided by the sum of RMB20.0 million and 80% of the fair value of Healthingkon in the latest round of financing at that time. Contingent Redemption Feature The outstanding principal and any accrued but unpaid interest at 4.75% will become due and payable in full upon the occurrence of any of events of default. Accounting for the 2021 Convertible Note The 2021 Convertible Note was recorded as liability in accordance with ASC 470. The Group evaluated the embedded conversion feature and determined that it does not qualify for derivative accounting as the underlying ordinary shares which the 2021 Convertible Note could be converted into were not publicly traded nor could they be readily convertible into cash in accordance with ASC 815-15 and ASC 815-40. Therefore, the conversion feature is not required to be bifurcated. In addition, no beneficial conversion feature (“BCF”) was recorded at the issuance date of the 2021 Convertible Note since it is a contingent BCF which should be measured at the commitment date. The Group further evaluated the embedded Contingent Redemption Feature in accordance with ASC 815 and concluded that it is not required to be bifurcated because it is considered to be clearly and closely related to the debt host, as the Note was not issued at a substantial discount and are redeemable at par. There were no other embedded derivatives that are required to be bifurcated. |
SHARE-BASED AWARDS
SHARE-BASED AWARDS | 12 Months Ended |
Dec. 31, 2022 | |
SHARE-BASED AWARDS | |
SHARE-BASED AWARDS | 23. SHARE-BASED AWARDS On October 16, 2008, the Board of Directors adopted the 2008 Share Incentive Plan (the “2008 Share Incentive Plan”). The 2008 Share Incentive Plan provides for the granting of options, share appreciation rights, or other share based awards to key employees, directors or consultants, which was subsequently amended on November 17, 2009 and November 26, 2011 to increase the number of ordinary shares available for grant under the plan. The total number of the Company’s ordinary shares that may be issued under the 2008 Share Incentive Plan is up to 13,218,000 ordinary shares. Share options On February 18, 2014, the Company granted options to purchase 3,479,604 ordinary shares to its employees at an exercise price of $2.04 per share that have a contractual life of eight years and vest over four equal installments on the first, second, third, and fourth anniversary of the grant date. The Company recognizes the compensation expense on a straight-line basis over the requisite service period for the entire award. The Company calculated the estimated grant date fair value of the share options granted on February 18, 2014, using a Binomial Tree Model, with key assumptions as follows. February 18, 2014 Risk-free interest rate 2.33 % Dividend yield 5 % Exercise multiple 2.5 Expected volatility range 39.03 % The risk-free rate was based on the US Treasury bond yield curve in effect at the time of grant for periods corresponding with the expected term of the option. The dividend yield was estimated based on the average of historical dividend yields of the Company. The volatility assumption was estimated based on the historical price volatility of ordinary shares of comparable companies in the health care industry. The following table summarizes employee share options activities for the year ended December 31, 2022: Weighted Weighted- Weighted Average Average Average Remaining Aggregate Number of Exercise Grant-date Contractual Intrinsic Share Options Granted to Employees Shares Price Fair Value Term (Years) Value Outstanding, January 1, 2022 2,657,946 US$ 2.04 US$ 0.65 1.13 — Lapsed (2,657,946) US$ 2.04 US$ 0.65 — — Outstanding, December 31, 2022 — US$ — US$ — — — Exercisable at December 31, 2022 — US$ — US$ — — — The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the fair value of the Company’s shares that would have been received by the option holders if all in-the-money options had been exercised on the issuance date. There were no options exercised for the years ended December 31, 2020, 2021 and 2022. As of December 31, 2022, unrecognized share-based compensation cost related to share options was nil. Restricted shares On February 18, 2014, July 1, 2014 and August 1, 2014, the Company granted 1,370,250, 21,132 and 69,564 restricted shares of the Company (“Restricted Shares”) to the employees of the Company, respectively. The Restricted Shares have a service condition where the grantees can remove restriction on 25% of total number of Restricted Shares on annual basis over a four-year period ending the fourth anniversary of the grant date. The Group did not grant any Restricted Shares in 2015 and 2016. On August 7, 2017, August 8, 2017, September 13, 2017 and October 2, 2018, the Company granted 1,453,950, 3,319,200, 45,000 and 5,992,605 Restricted Shares to the employees of the Company, respectively. The Restricted Shares have a service condition where the grantees can remove restriction on 25% of total number of restricted shares on annual basis over a four-year period ending the fourth anniversary of the grant date. Fair Value per Share at the Grant Grant Date Number of Awards date (US$) February 18, 2014 1,370,250 1.93 July 1, 2014 21,132 2.35 August 1, 2014 69,564 2.44 August 7, 2017 1,453,950 1.33 August 8, 2017 3,319,200 1.34 September 13, 2017 45,000 1.33 October 2, 2018 5,992,605 1.19 The Company recognizes the compensation expense on a straight-line basis over the requisite service period for the entire award. Restricted Shares activity for the year ended December 31, 2022 was as follows: Weighted Numbers average grant of shares date fair value RMB US$ Outstanding, January 1, 2022 10,898,289 1.31 Granted — — Forfeited (112,500) — Exercised — — Outstanding, December 31, 2022 10,785,789 1.31 Exercisable, December 31, 2022 10,785,789 1.31 As of December 31, 2022, unrecognized share-based compensation cost related to Restricted Shares was nil. The share-based compensation expense of the share options and Restricted Shares granted to employees for the years ended December 31, 2020, 2021 and 2022 is as follows: For the Years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ General and administrative expenses 17,553 12,565 (6,424) (931) Selling expenses 3,068 2,115 505 73 20,621 14,680 (5,919) (858) All of the share options granted to employees has expired, which led a negative share-based compensation expense for the year ended December 2022. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue | |
Revenue | 24. Revenue Revenue consists of ASC 606 and ASC 842 revenue. The Group's revenues, net of value-added tax, disaggregated by revenue source are as follows: For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ ASC 606 revenue: Management and technical support 36,948 64,599 53,341 7,734 Medical solution 26,105 217,375 179,135 25,972 Medical service 76,997 101,854 131,936 19,129 Medicine income 30,055 59,321 85,707 12,426 ASC 606 revenue 170,105 443,149 450,119 65,261 ASC 842 revenue: Operating lease income* 45,847 35,913 18,226 2,643 Sales-type lease income* 4,130 5,210 3,326 482 Direct financing lease income* 2,929 1,361 414 60 ASC 842 revenue 52,906 42,484 21,966 3,185 Total revenue 223,011 485,633 472,085 68,446 * Operating lease income, sales-type lease income and direct financing lease income were recognized under ASC 842, Leases |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 25. RELATED PARTY TRANSACTIONS a) Related parties # Name of Related Parties Relationship with the Group JYADK Equity investee of the Group Zhejiang Marine Leasing Ltd.* Equity investee of the Group since June 10, 2020 Cherrylane Investments Limited An entity controlled by a director of the Company Guangdong Proton International Hospital Management Co., Ltd A wholly owned subsidiary of an equity investee of the Group # These are the related parties that have engaged in significant transactions with the Company for the years ended December 31, 2020, 2021 and 2022. * Zhejiang Marine Leasing Ltd, which have been invested by the Group since June 10, 2020 and have become an associate of the Group. b) The Group had the following related party transactions for the years ended December 31, 2020, 2021 and 2022. For the Years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Loan to: Guangdong Proton International Hospital Management Co., Ltd — 142,895 16,800 2,436 — 142,895 16,800 2,436 Interest income from: JYADK 127 650 — — Guangdong Proton International Hospital Management Co., Ltd — 2,797 6,961 1,009 127 3,447 6,961 1,009 Loan from: Cherrylane Investments Limited — 15,932 — — Zhejiang Marine Leasing Ltd 199,000 8,500 220,369 31,951 199,000 24,432 220,369 31,951 Interest expense to: Cherrylane Investments Limited 587 554 1,334 193 Zhejiang Marine Leasing Ltd 41,331 12,978 15,456 2,241 41,918 13,532 16,790 2,434 Repayment to: Cherrylane Investments Limited — 3,824 — — Zhejiang Marine Leasing Ltd 272,640 77,062 82,915 12,022 272,640 80,886 82,915 12,022 Repayment from: JYADK 1,485 2,430 — — 1,485 2,430 — — (c) The balances between the Group and its related parties as of December 31, 2021 and 2022 are listed below. As at December 31, 2021 2022 2022 RMB RMB US$ Due from related parties, current: Guangdong Proton International Hospital Management Co., Ltd 145,692 169,453 24,568 145,692 169,453 24,568 Due to related parties, current: Cherrylane Investments Limited 12,108 13,105 1,900 12,108 13,105 1,900 Due to related parties, non-current Zhejiang Marine Leasing Ltd 83,778 122,579 17,772 83,778 122,579 17,772 Due to related parties, non-current, due within 1 year Zhejiang Marine Leasing Ltd 26,753 123,855 17,957 Cherrylane Investments Limited 9,240 10,001 1,450 35,993 133,856 19,407 |
EMPLOYEE DEFINED CONTRIBUTION P
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2022 | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | 26. EMPLOYEE DEFINED CONTRIBUTION PLAN Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiaries of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were RMB28,228 and RMB51,107 and RMB58,623 (US$8,500) for the years ended December 31, 2020, 2021 and 2022, respectively. Obligations for contributions to defined contribution retirement plans for full-time employees in Singapore are recognized as expense in the statements of comprehensive income (loss) as incurred. The total amounts for such employee benefits were approximately RMB106, nil and nil for the years ended December 31, 2020, 2021 and 2022, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | 27. COMMITMENTS AND CONTINGENCIES Purchase commitments The Group has commitments to purchase certain medical equipment of RMB257,165 and RMB220,972 (US32,038) at December 31, 2021 and 2022, respectively, which are scheduled to be paid within following years. Income taxes As of December 31, 2022, the Group has recognized approximately RMB60,301 (US$8,743) as an accrual for unrecognized tax positions. The final outcome of the tax uncertainty is dependent upon various matters including tax examinations, interpretation of tax laws or expiration of status of limitation. However, due to the uncertainties associated with the status of examinations, including the protocols of finalizing audits by the relevant tax authorities, there is a high degree of uncertainty regarding the future cash outflows associated with these tax uncertainties. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 28. SEGMENT REPORTING For the years ended December 31, 2020, 2021 and 2022, the Group had two operating segments, including network and hospital. The operating segments also represented the reporting segments. The Group’s CODM assess the performance of the operating segments based on the measures of revenues costs and gross profit (loss) by the network and hospital segment. After the disposal of CHS on November 19, 2020, the Group’s hospital reporting segment is only consisted of hospitals located in the PRC. Other than the information provided below, the CODM do not use any other measures by segments. Summarized information by segments for the years ended December 31, 2020, 2021 and 2022 is as follows: For the year ended December 31, 2022 Network Hospital Total RMB RMB RMB US$ Revenues from external customers 254,442 217,643 472,085 68,446 Cost of sales (225,245) (399,249) (624,494) (90,543) Gross profit (loss) 29,197 (181,606) (152,409) (22,097) For the year ended December 31, 2021 Network Hospital Total RMB RMB RMB Revenues from external customers 324,458 161,175 485,633 Cost of sales (253,826) (288,704) (542,530) Gross profit (loss) 70,632 (127,529) (56,897) For the year ended December 31, 2020 Network Hospital Total RMB RMB RMB Revenues from external customers 115,959 107,052 223,011 Cost of sales (52,725) (157,203) (209,928) Gross profit (loss) 63,234 (50,151) 13,083 As at December 31, 2021 2022 2022 RMB RMB US$ Segment assets Network 1,849,432 2,048,126 296,951 Hospital 4,380,519 3,956,808 573,683 Total segment assets 6,229,951 6,004,934 870,634 Major Customers For the year ended December 31, 2021 and 2022, one of the Company’s customers accounted for 11.9% and 12.2% of the Company’s total revenue, respectively, and no single customer represented 10% or more of total net revenue for the years ended December 31, 2020. Geographic Information Net revenue by country is based upon the sales location that predominately represents the customer location. For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Revenues from PRC 199,370 485,633 472,085 68,446 Revenues from Singapore 23,641 — — — Total revenues 223,011 485,633 472,085 68,446 Total long-lived assets excluding financial instruments, intangible assets, long-term investment and goodwill by country were as follows: As at December 31, 2021 2022 2022 RMB RMB US$ PRC 3,989,426 3,862,975 560,079 Singapore — — — Total long-lived assets 3,989,426 3,862,975 560,079 |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
LOSS PER SHARE | |
LOSS PER SHARE | 29. LOSS PER SHARE A reconciliation of net loss attributable to the Company in the consolidated statements of comprehensive loss to the numerator for the computation of basic and diluted loss per share for the years ended December 31, 2020, 2021 and 2022 is as follows: For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Net loss attributable to Concord Medical Services Holdings Limited (309,989) (271,427) (489,661) (70,993) Accretion of contingently redeemable noncontrolling interests (359,920) (549,194) — — Numerator for EPS computation (669,906) (820,621) (489,661) (70,993) For the Years Ended December 31 2020 2021 2022 2022 Class A Class B Class A Class B Class A Class A Class B Class B RMB RMB RMB RMB RMB USD RMB USD Numerator Net loss attributable to ordinary shareholders used in calculating loss per ordinary share – basic and diluted (435,855) (234,054) (533,909) (83,784) (318,582) (46,189) (171,079) (24,804) Denominator: Weighted average number of ordinary shares outstanding used in calculating loss per share – basic and diluted 85,265,910 45,787,948 85,265,910 85,265,910 85,265,910 85,265,910 45,787,948 45,787,948 Loss per share – basic and diluted (5.11) (5.11) (6.26) (0.98) (3.74) (0.54) (3.74) (0.54) The effects of share options and restricted shares have been excluded from the computation of diluted loss per share for the years ended December 31, 2020, 2021 and 2022 as their effects would be anti-dilutive. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 30. FAIR VALUE MEASUREMENTS The Group applies ASC Topic 820, Fair Value Measurements and Disclosures ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are directly or indirectly observable in the market place. Level 3 - Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group apply fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Goodwill, intangible assets, and other long-lived assets are measured at fair value on a nonrecurring basis, only if impairment is indicated. Certain equipment and long-lived assets related to the Group’s low-performance centers were impaired to their fair value on a nonrecurring basis. As of December 31, 2021 and 2022, the resulting impairment charge of nil and nil was recorded in “impairment of long-lived assets” in the consolidated statements of comprehensive loss. The Group calculated the fair value of long-lived assets based on estimated future discounted cash flows based on a discount rate of 17.8% and expected remaining useful life of such assets and classified the fair value as a Level 3 measurement due to the significance of unobservable inputs. The inputs used to measure the estimated fair value of goodwill are classified as Level 3 in the fair value hierarchy due to the significance of unobservable inputs using company-specific information. The Company measured the fair value of its derivative liability on a recurring basis using significant unobservable (Level 3) inputs as of December 31, 2022. Fair Value Measurement at the End of the Reporting Period Using Quoted Prices in Active Significance Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs 2022 (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Liability Items Derivative liability: 5,290 5,290 |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 31. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed balance sheets As at December 31 2021 2022 2022 RMB RMB US$ ASSETS Current assets: Cash and cash equivalent 15,058 1,510 219 Prepayments and other current assets 121 24,271 3,519 Amounts due from subsidiaries 298,900 — — Total current assets 314,079 25,781 3,738 Total assets 314,079 25,781 3,738 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short term loan 14,625 32,417 4,700 Long-term debts due within one year — 111,028 16,098 Accrued expenses and other liabilities 13,924 11,649 1,689 Derivative liability — 5,290 767 Amounts due to subsidiaries 1,559,394 1,729,363 250,735 Total current liabilities 1,587,943 1,889,747 273,989 Non-current liabilities: Long-term bank and other borrowings, non-current portion 90,389 — — Derivative liability 5,863 — — Total liabilities 1,684,195 1,889,747 273,989 Shareholders’ equity (deficit): Class A ordinary shares (par value of US$0.0001per share; authorized shares-500,000,000; issued shares-96,565,584 as of December 31, 2021 and 2022; outstanding shares-84,463,737 and 84,463,737 as of December 31, 2021 and 2022, respectively) 68 68 10 Class B ordinary shares (par value of US$0.0001per share; authorized shares‑45,787,948; issued shares-45,787,948 and 45,787,948 as of December 31, 2021 and 2022; outstanding shares- 45,787,948 and 45,787,948 as of December 31, 2021 and 2022, respectively) 37 37 5 Treasury stock (12,101,847 and 12,101,847 shares as of December 31, 2021 and 2022, respectively) (7) (7) (1) Additional paid-in capital 1,936,552 1,930,633 279,915 Accumulated other comprehensive income (loss) (29,496) (27,766) (4,026) Accumulated deficit (3,277,270) (3,766,931) (546,154) Total shareholders’ equity (deficit) (1,370,116) (1,863,966) (270,251) Total liabilities and shareholders’ equity (deficit) 314,079 25,781 3,738 Condensed statements of comprehensive loss For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Revenues — — — — Cost of revenues — — — — General and administrative expenses (23,598) (14,428) 5,242 760 Selling expenses (2,969) (2,090) (524) (76) Operating loss (26,567) (16,518) 4,718 684 Equity in loss of subsidiaries (621,932) (793,117) (605,175) (87,741) Interest income 588 — — — Interest expense (3,036) (1,459) (10,394) (1,507) Changes in fair value of derivatives — — 1,055 153 Other income, net — — 96,609 14,007 Foreign exchange gain(loss) (18,962) (9,527) 23,526 3,411 Net loss (669,909) (820,621) (489,661) (70,993) Other comprehensive income (loss), net of tax of nil foreign currency translation adjustments 50,856 14,821 (53,964) (7,824) Total other comprehensive (loss) income 50,856 14,821 (53,964) (7,824) Comprehensive loss (619,053) (805,800) (543,625) (78,817) Condensed statements of cash flows For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Net cash (used in) generated from operating activities 9,041 (9,301) (2,047) (297) Net cash (used in) generated from investing activities (7,468) (88,546) (29,335) (4,253) Net cash (used in) generated from financing activities — 110,876 16,591 2,405 Exchange rate effect on cash (34) (50) 1,243 181 Net (decrease) increase in cash 1,539 12,979 (13,548) (1,964) Cash at beginning of the year 540 2,079 15,058 2,183 Cash at end of the year 2,079 15,058 1,510 219 Basis of presentation For the presentation of the parent company only condensed financial information, the Company records its investment in subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments - Equity Method and Joint Ventures |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 32. SUBSEQUENT EVENTS New bank loans In January 2023, the Company’s subsidiary, MHM entered into a contract with maximum credit limit with Bank of Nanjing, in which MHM was granted maximum loan credit in the amount of RMB35,000 (US$5,075). Dr. Jianyu Yang, chairman and the chief executive officer, and CMCC shall provide corresponding maximum guarantee for the bank loan. Subsequent to the maximum credit limit contract, a working capital loan contract was signed between both parties in the amount of RMB9,980 (US$1,447) to meet working capital needs of MHM. The period of the loan is from January 16, 2023 to January 16, 2024. The interest rate for the loan is fixed at 5.5% per annum and the principal will be payable in January 2024. As of the date of issuance of the consolidated financial statements, all principal in the amount of RMB9,980 (US$1,447) was received by the Company. In addition, the Company’s subsidiary, Shanghai Medstar entered into a loan contract with Shanghai Qianlai Industrial Co., LTD ("Shanghai Qianlai") in which Shanghai Qianlai agreed to lend up to RMB100,000 (US$14,499) to the Shanghai Medstar. The interest rate for the loan is fixed at 8.0% per annum and the principal. And the type of this loan is the revolving credit loan, the period of which is from March 27, 2023 to June 30, 2024. As of the date of issuance of the consolidated financial statements, RMB58,500 (US$8,482) was received by the Company. Transfer shares in Shanghai Xinhe On March 9, 2023, Shanghai Medstar entered into a share transfer agreement with Shanghai Linen International Trading Co.Ltd. ("Shanghai Linen"), in which Shanghai Medstar hereby transferred 27.27% of shares and related rights, interests and obligations in Shanghai Xinhe to Shanghai Linen with the consideration of RMB6,000 (US$870). The consideration has been received as of the date of issuance of the consolidated financial statements. After this transfer, Shanghai Medstar holds 72.72% of the shares of Shanghai Xinhe. The Company has evaluated subsequent events through April 19, 2023, the date of issuance of the consolidated financial statements, except for the events mentioned above the Company did not identify any subsequent events with material financial impact on the Company’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). |
Going Concern | Going Concern The Company experienced net loss from continuing operations of RMB404,029, RMB522,672, RMB768,990 (US$111,492) for the years ended December 31, 2020, 2021 and 2022, respectively, and negative cash flows from operating activities of approximately RMB359,313 and RMB216,694 (US$31,419) for the years ended December 31, 2021 and 2022, respectively. As of December 31, 2022, the Company had cash position of RMB158,283 (US$22,949), negative working capital of RMB361,436 (US$52,404), an accumulated deficit of RMB3,766,931 (US$546,154). These adverse conditions indicate that there is substantial doubt about the Company’s ability to continue as a going concern. In January and March 2023, the Company entered into two loan contracts with the amount of RMB68.5 million (US$9.9 million) received as of the date of this annual report. Meanwhile, the Group will focus on the following activities: (1) the Group plans to seek additional equity and debt financing from new investors into the hospital and network business operation and extend the terms of current loans; (2) the Group plans to improve the profitability of network business and hospital business through upgrading cloud system solutions, developing internet hospital business, accelerating the transformation of scientific research and training achievements into clinical application and so on; (3) the Group is currently focusing on improving operation efficiency and cost reduction to standardize operations, enhance internal controls, and create synergy of the Company’s resources. Therefore, management believed that the substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued has been alleviated. Based on cash flows projection from operating and financing activities and existing balance of cash and cash equivalents, management concludes that the Company has sufficient funds for sustainable operations and it will be able to meet its payment obligations from operations and debt related commitments for the next twelve months from the issuance of the consolidated financial statements. Based on the above considerations, the accompanying financial statements have been prepared in accordance with U.S. GAAP, on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of asset and amounts and classification of liabilities that may be necessary should the Company be unable to continue as a going concern. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in the Company’s financial statements include, but are not limited to, impairment of long-lived assets and goodwill, expected credit losses for accounts receivable and other receivables included in prepayments and other current assets, purchase price allocation, fair value measurement of retained noncontrolling interest after losing control of subsidiary, measurement of available for sale debt securities, unrecognized tax benefits, realization of deferred tax assets, share-based compensation expenses, incremental borrowing rate of right-of-use assets and related lease obligation, and fair value measurement of derivative liability. Actual results could materially differ from those estimates. |
Principles of consolidation | Principles of consolidation The consolidated financial statements of the Group include the financial statements of the Company, its subsidiaries and the VIE and its subsidiaries for which the Company or a subsidiary of the Company is the primary beneficiary. All transactions and balances between the Company, subsidiaries and VIE and its subsidiaries have been eliminated upon consolidation. Results of acquired subsidiaries and its VIE and its subsidiaries are consolidated from the date on which control is transferred to the Company. |
Foreign currency translation and transactions | Foreign currency translation and transactions The Company’s PRC subsidiaries determine their functional currencies to be the Chinese Renminbi (“RMB”) based on the criteria of ASC 830, Foreign Currency Matters Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are remeasured at the exchange rates prevailing at the balance sheet date. Exchange gains and losses are included in the consolidated statements of comprehensive loss. Accumulated other comprehensive loss represents the cumulative foreign currency translation adjustments at each balance sheet date. |
Convenience translation | Convenience translation Amounts in U.S. dollars are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.8972 to US$1.00 on December 30, 2022 as published on the website of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Business combination and noncontrolling interests | Business combination and noncontrolling interests The Group accounts for business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations The Group derives estimates of the fair value of assets acquired and liabilities assumed using reasonable assumptions based on historical experiences and on the information obtained from management of the acquired companies. Critical estimates in valuing certain of the intangible assets and pre-existing agreements included but were not limited to the following: deriving estimates of future expected cash flows from the acquired business, the determination of an appropriate discount rate, deriving assumptions regarding the period of time that the related benefits would continue and the initial measurement and recognition of any contingent consideration arrangements and the evaluation of whether contingent consideration arrangement is in substance compensation for future services. Unanticipated events may occur which may affect the accuracy or validity of such assumptions or estimates. In a business combination achieved in stages, the Group re-measures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated income statements. For the Company’s non-wholly owned subsidiaries, a noncontrolling interest is recognized to reflect portion of equity that is not attributable, directly or indirectly, to the Company. When the noncontrolling interest is contingently redeemable upon the occurrence of a conditional event, which is not solely within the control of the Company, the noncontrolling interest is classified as mezzanine equity. The Company accretes changes in the redemption value over the period from the date that it becomes probable that the mezzanine equity will become redeemable to the earliest redemption date using the effective interest method. When the noncontrolling interest is mandatory redeemable on a fixed or determinable date, the noncontrolling interest is classified as liabilities. If a transaction does not meet the definition of a business, the transaction is recorded as an asset acquisition. Accordingly, the identifiable assets acquired and liabilities assumed are measured at the fair value of the consideration paid, based on their relative fair values at the acquisition date. Acquisition-related costs are included in the consideration paid and capitalized. Any contingent consideration payable that is dependent on the purchaser’s future activity is not included in the consideration paid until the activity requiring the payment is performed. Any resulting future amounts payable are recognized in profit or loss when incurred. No goodwill and no deferred tax asset or liability arising from the assets acquired and liabilities assumed are recognized upon the acquisition of assets. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits placed with banks which are unrestricted as to withdrawal and use and have original maturities less than three months. All highly liquid investments with a stated maturity of 90 days or less from the date of purchase are classified as cash equivalents. |
Restricted cash | Restricted cash Restricted cash represents cash deposits pledged as security for the Group’s daily operation, such as performance of contracts, and proceeds from specialized bank borrowings for hospital construction. Such restricted cash is not available to fund the general liquidity needs of the Group. And the restriction will lapse when the of obligation of contracts has been performed or the bank borrowings has been used for construction of hospital. |
Long-term investments | The Group’s long-term investments consist of equity investments without readily determinable fair value,equity method investments and available-for-sale debt securities. The Group adopted ASC 321, Investments-Equity Securities, (“ASC 321”) on January 1, 2018 and the cumulative effect of adopting the new standard on opening accumulated deficit was not material. Pursuant to ASC 321, equity investments, except for those accounted for under the equity method and those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures Investments in equity investees represent investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Subtopic 323-10, Investments-Equity Method and Joint Ventures: Overall Debt securities that the Group has the intent to hold the security for a long period or may sell the security in response to the changes in economic conditions are classified as available-for-sale. The Company reported it at fair value which was estimated using the net asset value in accordance with ASC 820-10-15-4 and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. Upon sale, realized gains and losses are reported in net income. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. In accordance with ASC Topic 350, Goodwill and Other Intangible Assets In accordance with ASC 350, the Group assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. After the disposal of the CHS in 2020, the Group divided its business into two reporting units, including network business and hospital business as of December 31, 2020 and 2021. Goodwill resulted from the acquisitions of subsidiaries during the years ended December 31, 2020 was assigned to hospital business reporting unit. And the goodwill resulted from the acquisitions of subsidiaries during the years ended December 31, 2021 was assigned to network business reporting unit. As of December 31, 2022, there are still two reporting units after the disposal of the GFHM, which was divided into hospital business before disposal(Note 4). The Group early adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment For the year ended December 31, 2021 and 2022, the Company elected to bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment testing. The Company considered the future discounted cash flows expected to be generated by the hospital business and network business respectively to determine the fair value of each reporting unit. In determine the fair value of each reporting unit, the Company estimated significant assumptions including revenue growth rate, operating margin, capital expenditure, terminal growth rate and discount rate. The assumptions may be significantly affected by unexpected changes in future economic and market conditions, as well as regulatory requirements. The Company did not record any impairment loss for the years ended December 31, 2021 and 2022 as the fair value of the reporting unit is in excess of its carrying value. |
Accounts receivable and credit losses for doubtful accounts | Accounts receivable and credit losses for doubtful accounts Accounts receivable are recognized and carried at the original carrying amount less allowance for credit losses. The Group maintains an allowance for credit losses for accounts receivable and other receivables included in prepayments and other current assets, which is recorded as an offset to accounts receivable and other receivables included in prepayments and other current assets, and the estimated credit losses charged to the allowance is classified as “General and administrative expenses” in the consolidated statements of comprehensive loss. When similar risk characteristics exist, the Group assesses collectability and measure expected credit losses on a collective basis for a pool of assets, whereas if similar risk characteristics do not exist, the Group assesses collectability and measures expected credit losses on an individual asset basis. The provision for expected credit losses is estimated based on the types of receivables and relevant customers, management’s experience with collection trends and the current and expected economic and business conditions. The Group evaluates the provision for expected credit losses on a regular basis and adjusts the provision based on changes in the customers’ circumstances and other available information. In determining the amount of the allowance for credit losses, the Group considers historic collection experience, the age of the accounts receivable and other receivables included in prepayments and other current assets, credit quality of the Group’s customers or creditors, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the customer’s ability to pay. The significant assumptions used includes the disaggregation criteria and the estimated loss rates related to account receivables, and the credit rating of debtors’ probability of default and loss rates given default related to other receivables. The receivable balances are written off when they are deemed uncollectible. The Group generally does not require collateral from its customers. |
Inventories | Inventories Inventories, consisting of medicine, medical supplies and low-value consumables, are accounted for using the individual pricing method, and are valued at the lower of cost or market. |
Loan receivables | Loan receivables Loan receivables represented the loans to related parties and third parties, which were measured at amortized cost and reported in the consolidated balance sheets at outstanding principle. Loan receivables with collection period within one year are classified as prepayments and other current assets in the consolidated balance sheets. Cash paid for loan originations and cash received from loan repayments are classified as operating activities in the consolidated statements of cash flows. |
Leases | Leases Lessee Accounting The Group leases office space, and land use rights. The Group’s offices leases generally have lease terms between 1 to 20 years. The Group’s lease agreements include fixed and variable lease payments and do not contain material residual value guarantees. The Group’s leases do not contain restrictions or covenants that restrict the Group from incurring other financial obligation. The Group also makes upfront payments to acquire the leased land from the owners, with lease periods of 50 years (“land use right”). There is no ongoing payment under the terms of these land use rights. The Group determines if an arrangement is a lease at inception and classifies leases as operating or finance leases in accordance with the recognition criteria in ASC 842 20 a. The lease transfers ownership of the underlying asset to the lessee by the end of the lease term. b. The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise. c. The lease term is for a major part of the remaining economic life of the underlying asset. d. The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already included in the lease payments equals or exceeds substantially all of the fair value of the underlying asset. e. The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. The Group classifies a lease as an operating lease when it does not meet any one of these criteria. For operating leases, the Group recognizes a right-of-use (“ROU”) asset and a lease liability based on the present value of the lease payments over the lease term on the consolidated balance sheets at commencement date. Lease expense is recorded on a straight-line basis over the lease term. As the Group’s leases do not provide an implicit rate, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. In estimating its incremental borrowing rate, the Group considers its credit rating, nature of underlying asset, and publicly available data of borrowing rates for loans of similar amount, currency and term as the lease. When the Group enters into sale-leaseback transactions as lessee, it first assesses whether the effectively transferred the underlying asset using the guidance in ASC 606. If the Group transfers the control of the leased asset to the buyer-lessor, the Group accounts for the sale of the underlying asset in accordance with ASC606. The subsequent leaseback of the asset is accounted for in accordance with ASC842 in the same manner as any other lease. If the seller-lessee does not transfer the control of the leased asset to the buyer-lessor, it is a failed sales-leaseback transaction and subsequently accounted for as a financing arrangement. Lessor Accounting The Group provides sales-type, direct financing and operating leases of various medical equipment primarily to hospitals in the PRC for periods ranging from 5 to 20 years. The Group classifies a lease as a sales-type lease in accordance with the recognition criteria in ASC 842-20-25 if the lease meets any one of the criteria mentioned above when determining a finance lease. For sales-type leases, the Group derecognizes the underlying asset and recognizes the net investment in the lease which is the sum of the lease receivable when collectability is probable at lease commencement. All initial direct costs are expensed at commencement date. The Group subsequently recognize interest income over the lease term using the effective interest method. Many of the Group’s leases contain variable lease payments based on the revenue or profit generated from the hospitals’ use of the underlying assets, the specific amounts of which are agreed monthly with the hospitals and settled based on the Group’s payment terms. In such circumstances, the Group recognizes a selling loss at commencement for the difference between the net investment in the lease and the carrying amount of the underlying asset. The Group does not include variable lease payments in the net investment in the lease and such payments are recognized as income in profit or loss in the period when the facts and circumstances on which the variable lease payments are based occur. When none of the criteria in ASC 842-20-25-2 are met, the Group classifies a lease as either a direct financing lease or an operating lease. The Group classifies as a direct financing lease if (i) the present value of the sum of lease payments and any residual value guarantee equals or exceeds substantially all the fair value of the underlying asset; and (ii) it is probable at inception that it will collect the lease payments plus any amount necessary to satisfy a residual value guarantee. If both of the criteria above are not met, the lease is classified as an operating lease. A general description of the Group’s lease income for each type of lease arrangement was as follows: i. The Group provides diagnostic imaging and/or radiation oncology system (“medical equipment”) to hospitals in the PRC through lease arrangements ranging from 5 to 20 years. In certain circumstances, the Group also provides full-time qualified system technician responsible for certain management services related to the radiotherapy or diagnostic services being performed by the hospital centers’ doctors to their patients. The Group receives a portion of the hospital’s revenue or profits from delivering the diagnostic imaging and / or radiation oncology services to patients, based on the revenue-sharing or profit-sharing formula predetermined in the contracts. The Group evaluates such arrangements at inception to determine whether they contain a lease and the lease classification under ASC 842. Most of such arrangements are classified as sales-type leases since these agreements often include an option to the hospitals to purchase the underlying asset which the hospitals are reasonably certain to exercise. Variable lease payments are fully constrained at inception of the contract. Variable fees are included in the arrangement transaction price when significant reversal is not expected to occur, which is the time when the hospital calculates the profit sharing under the arrangement and agreed upon by both parties, typically at month end. The Group’s arrangements may contain lease and non-lease components. Non-lease components primarily include payments for maintenance, update and consultation services related to the medical equipment. The Group allocates the lease and non-lease components of the contract consideration on a relative standalone selling price basis. ii. The Group elected the package of practical expedients which allowed the Group not to separate lease and non-lease components for diagnostic imaging and /or radiation oncology systems assets and recognizes profit sharing revenue under ASC 842. If there is a non-lease component whose pattern and timing is not the same the Group allocates the consideration on a relative standalone selling price basis. iii. The Group purchases hospital equipment from third party equipment manufacturers which is installed at various hospitals throughout the PRC. The hospitals utilize the hospital equipment radiotherapy or diagnostic services being performed by the hospital centers’ doctors to their patients. These lease arrangements include either title transfer upon maturity of the lease term or bargain purchase option held by the hospital. The Group receives fixed monthly rental payments from the hospital, which on a discounted basis does not give rise to any dealer profit. The Group records revenue attributable to direct financing leases so as to produce a constant rate of return on the balance of the net investment in the lease. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Estimated residual Category Estimated useful life value Buildings 20‑50 years — Medical equipment* 5‑20 years — Electronic and office equipment 3‑5 years — Motor vehicles 5 years — Leasehold improvement and building improvement shorter — * The cost of the asset is amortized over the estimated useful life. However, if ownership is transferred at the end of the lease term, the cost of the asset is amortized over the shorter of customer contract or the useful life of the asset which ranges from 5 to 20 years. Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extends the useful lives of property, plant and equipment is capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. Costs incurred in constructing new facilities, including progress payment, interest and other costs relating to the construction are capitalized and transferred to fixed assets upon completion. During the years ended December 31, 2020, 2021 and 2022 total interest costs incurred amounted to RMB148,642, RMB139,873 and RMB180,847 (US$26,220), respectively, in which interest costs capitalized amounted to RMB67,283, RMB66,084 and RMB60,490 (US$8,770), respectively. |
Intangible assets, net | Intangible assets, net Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired in a business combination were recognized initially at fair value at the date of acquisition. The operating license relates to the medical business qualification and permission for medical equipment operation. The favorable leases relate to favorable lease terms as lessee based on market conditions that exist on the date of acquisition and are amortized over the remaining term of the leases. The customer relationship assets relate to the ability to sell existing and future services to existing customers and have been estimated using the income method. Operating leases relate to favorable operating lease terms based on market conditions that exist on the date of acquisition and are amortized over the remaining term of the leases. The technology relates to AI technology. The estimated useful life for the intangible assets is as follows: Estimated useful life Operating license 20 Favorable leases 12-17 Customer relationship 5‑16 Operating leases 9‑16 Software 3‑5 Technology 10 years |
Impairment of long-lived assets | Impairment of long-lived assets The Group evaluates its long-lived assets or asset group including acquired intangibles with finite lives for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of a group of long-lived assets may not be fully recoverable. When these events occur, the Group evaluates the impairment by comparing the carrying amount of the assets to future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the asset group over its fair value, generally based upon discounted cash flows or market prices, management utilizes significant assumptions including revenue growth rate operating margin, capital expenditure and discount rate. These assumptions might be affected by expectations about future market and economic conditions, as well as regulatory requirements. Impairment loss on long-lived assets of RMB8,500, nil and nil was recognized for the years ended December 31, 2020, 2021 and 2022, respectively. |
Derivative liability | Derivative liability The Group evaluates its borrowings to determine if the contract or embedded component of the contract qualifies as derivatives to be separately accounted for in accordance with ASC 815, “Derivatives and Hedging”. The result of this accounting treatment is that the fair value of the embedded derivative, if required to be bifurcated, is marked-to-market at each balance sheet date and recorded as a liability. The change in fair value is recorded as fair value change from derivative in the financial statements (note 21). |
Treasury stock | Treasury stock The Company has share repurchase programs where the shares are acquired and subject to cancellation. When a corporation’s stock is repurchased for constructive retirement with or without an intention to retire the stock formally in accordance with applicable laws, an excess of par or stated value over the cost of treasury shares shall be credited to additional paid-in capital. |
Fair value of financial instruments | Fair value of financial instruments Financial instruments include cash and cash equivalents, restricted cash, accounts receivable, certain other current assets, net investment in direct financing leases, certain long-term investments, certain other non-current assets, short-term and long-term bank and other borrowings, accounts payables, certain other current liabilities, dividend payable, derivative liability and certain other long-term liabilities. The carrying amounts of the Group’s cash and cash equivalents, accounts receivable, certain other current assets and accounts payable approximate fair value because of their short maturities. The available for sale debt securities are recorded at fair value that measured using net asset value per share as a practical expedient shall not be categorized within the fair value hierarchy in accordance with ASC 820-10-35-54B. The derivative liability is recorded at fair value in accordance with ASC 815. The carrying amounts of the Group’s short-term and long-term bank and other borrowing and secured borrowings mostly bear interest at floating rates and therefore approximate the fair value of these obligations. For those bank borrowings with fixed interest rates, management uses the discounted cash flow technique based on market interest rate for similar instruments at the balance sheet date and concludes that the carrying value approximates the fair value. |
Revenue recognition | Revenue recognition The Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Group expects to receive in exchange for those goods or services using the five steps defined under ASC Topic 606. The Group performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group only applies the five-step model to contracts when it is probable that the Group will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Group reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. The Group recognizes revenue based on the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. The Group is a principal and records revenue on a gross basis when the Group is primarily responsible for fulfilling the service, has discretion in establish pricing and controls the promised service before transferring that service to customers. Otherwise, the Group records revenue at the net amounts as commissions. The Group recognizes revenues net of value added taxes (“VAT”). If revenue recognition is deferred to a later period, the related VAT are also deferred and will be recognized only upon recognition of the deferred revenue. ASC 606 revenue i. The Group provides stand-alone management and technical support services to certain hospitals which already possess radiotherapy and diagnostic equipment. Management support services typically include the provision of diagnosis and treatment techniques, expert support, advertising and promotion as well as comprehensive operational management services. Technical support services mainly include maintenance and upgrade of the radiotherapy and diagnostic equipment. Combining the Group’s management and technical support services, planned cloud system solutions provides a more comprehensive set of services, from pre-purchasing consultation to equipment installation and maintenance. The fees for management and technical support are calculated based on a predetermined percentage of monthly revenue generated by the hospital unit or in limited instances on a fixed monthly fee. Variable fees are fully constrained at contract inception due to the uncertainty of the hospital units’ monthly revenue. Variable fees are included in the transaction price when a significant reversal of revenue recognized is not expected to occur, typically upon receipt of the monthly revenue statement from hospitals. Fixed monthly fees are recognized ratably over the service term. ii. Medical solution represented sales of different sets of medical equipment like CT machines, DR machines and respirators to procurement agent of the hospitals in PRC, and the sales of consumables such as surgical supplies to certain hospitals in PRC. For most of the medical solution contracts, the Group is primarily responsible for fulfilling the promise to provide the specified medical equipment with the inventory risk before the equipment has been transferred, and the Group also has the discretion in establishing the price. As a result, the Group acts as a principal under these contracts and management recognizes revenue on a gross basis. While under some of the medical solution contracts, the Group acts primarily as a reseller and does not have pricing authority or have title to the inventory prior to delivery to the hospital. The Group is an agent and generally records revenue related to consumables sales on a net basis when the consumables are delivered to the customer and the sales price is determinable. iii. Medical service Hospital revenue consists of medicine income and medical service income. Medical service income include revenue generated from outpatients, which mainly consist of activities for physical examinations, treatments, surgeries and tests, as well as that generated from inpatients, which mainly consist of activities for clinical examinations and treatments, surgeries, and other fees such as room charges and nursing care. The Group is a principal as it is primarily responsible for providing medical services to the income, controls the promised services before transferring to patients, and has pricing discretion. The Group generally records revenue generated from medical service on a gross basis. In limited instances, the patient services are provided by visiting consultants, who are doctors/medical experts without labor contracts with the Group and not considered as the Group’s employees. As the visiting consultants have the discretion to take their patients to other hospital for the required treatment and set their own consultation fee charged to patients, the Group is an agent in such arrangement. The Group collects fees on behalf of the visiting consultants and records revenue at the net amounts as commissions. iv. Medicine income includes medicine prescribed to patients during or after treatment by the doctors in the Group’s hospital business. The Group is a principal as it is primarily responsible for providing medicine to the patients and has pricing discretion. The Group generally records medicine income on a gross basis. |
Cost of revenue | Cost of revenue A.Network costs Network costs mainly consist of the amortization of acquired intangibles, depreciation of medical equipment purchased, installed and operated in the network of centers and other costs, including salaries and material costs of medical supplies. (1) Costs of lease and management service arrangements Cost of medical equipment that is leased under an operating lease is included in property, plant and equipment in the balance sheet. The medical equipment is depreciated using the Group’s depreciation policies. The cost of the management service component is recognized as an expense as incurred. (2) Cost of sales-type lease Cost of sales-type lease as a lessor is recorded as the carrying value of the underlying asset at lease commencement. (3) Cost of management and technical support Cost of management and technical support mainly include labor costs, and, where applicable, medical consumables and maintenance expenses which are expensed as incurred. (4) Cost of medical solution Cost of medical solution, recorded either gross or net against the related revenue, includes the cost of the medical equipment and consumables purchased, and other direct costs involved in the consumables sales. B.Hospital costs Hospital costs mainly include medicine costs, medical consumables, labor costs of doctors, nurses and other staff involved in the care or treatment of patients, depreciation, hospital buildings rental fee, utilities as well as other related costs incurred in the normal business of a hospital. |
Income taxes | Income taxes The Group follows the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Group adopted ASC 740, Income Taxes ( ), In accordance with the provisions of ASC 740, the Group recognizes in its financial statements the impact of a tax position if a tax return position or future tax position is “more likely than not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold is measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The Group’s estimated liability for unrecognized tax positions which are included in the “accrued expenses and other liabilities” account and “accrued unrecognized tax benefits and surcharges, non-current portion” accounts are periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The outcome for a particular audit cannot be determined with certainty prior to the conclusion of the audit and, in some cases, appeal or litigation process. The actual benefits ultimately realized may differ from the Group’s estimates. As each audit is concluded, adjustments, if any, are recorded in the Group’s financial statements. Additionally, in future periods, changes in facts, circumstances, and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. |
Share-based compensation | Share-based compensation Share-based awards and restricted shares granted to employees are accounted for under ASC 718, Compensation-Stock Compensation In accordance with ASC 718 , The Group adopted ASU 2018-07 on January 1, 2019 using the modified retrospective method and measures equity awards using their fair value on grant date. The impact of adopting the new standard was insignificant. |
Loss per share | Loss per share The Company computes earnings per Class A and Class B ordinary shares in accordance with ASC Topic 260, Earnings Per Share Loss per share is computed in accordance with ASC 260, Earnings Per Share The liquidation and dividend rights of the holders of the Company’s Class A and Class B ordinary shares are identical, except with respect to voting rights. As a result, and in accordance with ASC 260, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B ordinary shares as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. For the purposes of calculating the Company’s basic and diluted earnings per Class A and Class B ordinary shares, the ordinary shares relating to the options that were exercised are assumed to have been outstanding from the date of exercise of such options. |
Comprehensive loss | Comprehensive loss Comprehensive loss is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income |
Segment reporting | Segment reporting In accordance with ASC 280, Segment Reporting |
Impact of COVID-19 | Impact of COVID-19 In 2022, there have been outbreaks of COVID-19 cases from time to time, including the COVID-19 Delta and Omicron variant cases, in multiple cities in China. The Group's business was negatively impacted due to the resurgence of COVID-19 in certain cities in China. China began to modify its zero-COVID policy at the end of 2022, and most of the travel restrictions and quarantine requirements were lifted in December 2022. There remains uncertainty as to the future impact of the virus, especially in light of this change in policy. The extent to which the COVID-19 pandemic impacts the Group's long-term results will depend on future developments which are highly uncertain, unpredictable and beyond the Group's control, including the frequency, duration and extent of outbreaks of COVID-19, the appearance of new variants with different characteristics, the effectiveness of efforts to contain or treat cases, the development and progress of other medical treatment, the potential change and demand in cancer treatment in private hospitals and future governmental actions that may be taken in response to these developments, such as measures to stimulate the general economy to improve business conditions. As a result, certain of the Group's estimates and assumptions, including the allowance for credit losses, the valuation of certain equity investments, long-term investments and long-lived assets subject to impairment assessments, require significant judgments and involve a higher degree of variability and volatility that could result in material changes to the Group's current estimates in future periods. |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements Adoption of ASU 2020-06 In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which focuses on amending the legacy guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity. ASU 2020-06 simplifies an issuer's accounting for convertible instruments by reducing the number of accounting models that require separate accounting for embedded conversion features. ASU 2020-06 also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. Further, ASU 2020-06 enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share (EPS) guidance, i.e., aligning the diluted EPS calculation for convertible instruments by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in the diluted EPS calculation when an instrument may be settled in cash or shares, adding information about events or conditions that occur during the reporting period that cause conversion contingencies to be met or conversion terms to be significantly changed. This update is effective for the Company’s fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Entities can elect to adopt the new guidance through either a modified retrospective method of transition or a fully retrospective method of transition. The Company adopted this standard on January 1, 2022 with no material impact on its condensed consolidated financial statements and related disclosures as a result of adopting the standard. Adoption of ASU 2021-05 In July 2021, the FASB issued an update (“ASU 2021-05”) Lessors - Certain Leases with Variable Lease Payments to ASC Topic 842, Leases (“ASC 842”). ASU 2021-05 provides additional ASC 842 classification guidance as it relates to a lessor’s accounting for certain leases with variable lease payments. ASU 2021-05 requires a lessor to classify a lease with variable payments that do not depend on an index or rate as an operating lease if either a sales-type lease or direct financing lease classification would trigger a day-one loss. ASU 2021-05 is effective for fiscal years beginning after 15 December 2021, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this standard on January 1, 2022 on a prospective basis with no material impact on its condensed consolidated financial statements and related disclosures as a result of adopting the standard. Recent accounting pronouncement pending adoption In October 2021, the FASB issued ASU 2021-08, Topic 805 “Business Combinations” – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this update require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. To achieve this, an acquirer may assess how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. There was no material impact to the Company’s financial position or results of operations upon adoption. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Schedule of subsidiaries | Percentage of Date of Place of ownership by Entities establishment/acquisition establishment the Company Principal activities Subsidiaries Ascendium Group Limited (“Ascendium”) September 10, 2007 British Virgin Islands (“BVI”) 100 % Investment holding China Medical Services Holdings Limited (“CMS Holdings”) July 18, 2008 Hong Kong 100 % Investment holding King Cheers Holdings Limited (“King Cheers”) May 18, 2001 Hong Kong 100 % Investment holding Shenzhen Aohua Medical Technology Development Co., Ltd. (“Aohua Technology ”) ** February 21, 2008 PRC 43.90 % Leasing of medical equipment and provision of management services Shanghai Medstar Financial Leasing Company Limited ("Shanghai Medstar") March 21, 2003 PRC 98.19 % Leasing of medical equipment and provision of management services Meizhong Jiahe Medical Technology Development Group Co., Ltd. (“MHM”) * July 23, 2008 PRC 43.90 % Provision of management services Beijing Yundu Internet Technology Co., Ltd. (“Yundu”) ** July 26, 2007 PRC 43.90 % Provision of management services Tianjin Concord Medical Technology Limited (“Tianjin Concord Medical”) April 22, 2010 PRC 98.19 % Leasing of medical equipment and provision of management services Guangzhou Concord Cancer Center Co., Ltd ("Guangzhou Concord Cancer Hospital") ** June 29, 2011 PRC 35.12 % Medical treatment and service business CCM (Hong Kong) Medical Investments Limited (“CCM (HK)”) June 03, 2013 Hong Kong 100 % Investment holding Shanghai Concord Cancer Center Co., Ltd (“SHC”) ** March 17, 2014 PRC 44.18 % Medical treatment and service business Datong Meizhong Jiahe Cancer Center (“DTMZ”) ** October 23, 2014 PRC 43.90 % Medical treatment and service business Wuxi Concord Medical Development Ltd. ("Wuxi Concord”) December 29, 2015 PRC 100 % Provision of management services Percentage of Date of Place of ownership by Entities establishment/acquisition establishment the Company Principal activities Beijing Concord Medical Technology Ltd.(“BJCMT”) January 4, 2016 PRC 100 % Provision of management services Beijing Century Friendship Science & Technology Development Co., Ltd (“Beijing Century Friendship”)** October 8, 2018 PRC 98.19 % Provision of management services and investment holding Beijing Proton Medical Center Co., Ltd (“BPMC”) October 8, 2018 PRC 79.01 % Medical treatment and service business Shanghai Meizhong Jiahe Cancer Center Co., Ltd. (“CMCC”)** October 8, 2018 PRC 41.50 % Medical treatment and service business Shanghai Meizhong Jiahe Imaging Diagnostic Center Co., Ltd. ("SH MZJH") ** November 18,2019 PRC 15.68 % Medical treatment and service business Wuxi Meizhong Jiahe Cancer Center Co., Ltd. ("Wuxi MZJH") November 18,2019 PRC 98.50 % Medical treatment and service business Yinchuan Meizhong Jiahe Internet Hospital Ltd. (“YCIH”) ** October 18, 2020 PRC 43.90 % Medical treatment and service business US Proton Therapy Holdings Limited (“Proton BVI”) May 16, 2011 BVI 100 % Investment holding US Proton Therapy Holdings Limited (“US Proton”) June 29, 2011 United States of America 100 % Investment holding Guangzhou Concord Hospital Management Co., Ltd. ("GCHM") (formerly known as Guangzhou New Spring Hospital Management Ltd.) (note 4) ** April 21, 2020 China 30.73 % Investment holding Guangzhou Concord Medical Cancer Ltd. ("GCMC") (formerly known as Guangzhou New Spring Medical Cancer Ltd) (note 4) ** April 21, 2020 China 30.73 % Medical treatment and service business Beijing Healthingkon Technology Co., Ltd. (“Healthingkon”) (note 4) ** January 4, 2021 China 11.56 % Leasing of medical equipment and technical service Guangzhou Concord Medical Technology Innovation Center Co., Ltd ("GCMTIC") ** April 22, 2021 China 43.90 % Technical service * On March 26, 2018, July 10, 2018 and on April 7, 2020, the Group entered into agreements with CICC Capital Management Company Limited (“CICC Capital”), a wholly-owned subsidiary of China International Capital Corporation Limited (“CICC”), together with six other investors (“Other Investors”) and CITIC Industrial Investment Group Limited (“CITIC Industrial”). Pursuant to the agreements, CICC Capital, Other Investors and CITIC Industrial make a strategic investment and subscribe new issued 60,000,000, 40,000,000 and 38,888,888 shares of the Group’s subsidiary MHM, with total consideration of RMB1,500,000 and RMB700,000. ** Aohua Technology, Yundu, Guangzhou Concord Cancer Hospital, SHC, DTMZ, Beijing Century Friendship, CMCC, SH MZJH, YCIH, GCHM, GCMTIC, GCMC and Healthingkon are subsidiaries of MHM. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of property, plant and equipment estimated useful | Estimated residual Category Estimated useful life value Buildings 20‑50 years — Medical equipment* 5‑20 years — Electronic and office equipment 3‑5 years — Motor vehicles 5 years — Leasehold improvement and building improvement shorter — * The cost of the asset is amortized over the estimated useful life. However, if ownership is transferred at the end of the lease term, the cost of the asset is amortized over the shorter of customer contract or the useful life of the asset which ranges from 5 to 20 years. |
Schedule of estimated useful life for the intangible assets | Estimated useful life Operating license 20 Favorable leases 12-17 Customer relationship 5‑16 Operating leases 9‑16 Software 3‑5 Technology 10 years |
ACQUISITIONS AND DISPOSALS (Tab
ACQUISITIONS AND DISPOSALS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACQUISITIONS AND DISPOSALS | |
Schedule of breakdown of assets and liabilities | RMB US$ Current assets 4,909 752 Other non-current assets 257,368 39,443 Current liabilities (26,024) (3,988) Non-current liabilities (539) (83) Net assets disposed 235,714 36,124 |
Schedule of gain on disposal of assets | RMB US$ Cash proceeds 247,803 37,977 Settlement of amount due from CHS (602) (92) Commission fee (44,039) (6,749) Fair value of retained noncontrolling investment 22,925 3,513 Disposition of net assets (235,714) (36,124) Foreign currency translation (5,267) (808) Loss on disposal of CHS (14,894) (2,283) |
Guofu Huimei and its subsidiaries | |
ACQUISITIONS AND DISPOSALS | |
Schedule of gain on disposal of assets | RMB US$ Cash proceeds 190,000 27,547 Disposition of net assets (189,402) (27,460) Goodwill (6,450) (935) Accumulated other comprehensive loss (55,694) (8,075) Loss on disposal of Guofu Huimei and its subsidiaries (61,546) (8,923) |
Schedule of fair values of the assets acquired and liabilities assumed | RMB US$ Current assets 199,727 28,957 Current liabilities (10,325) (1,497) Net assets disposed 189,402 27,460 |
Guangzhou New Spring Hospital Management Co., Ltd. | New Spring Group | Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | |
ACQUISITIONS AND DISPOSALS | |
Schedule of fair values of the assets acquired and liabilities assumed | RMB Current assets 424 Property, plant and equipment, net 3,281 Intangible assets 5,053 Goodwill 3,213 Long-term deferred and other non-current 1,202 Current liabilities (445) Deferred tax liabilities (1,250) Total 11,478 |
Schedule of reconciliation of total purchase consideration | RMB Cash consideration in agreement 8,400 Non-controlling interest 3,078 Total 11,478 |
HealthingKon | |
ACQUISITIONS AND DISPOSALS | |
Schedule of fair values of the assets acquired and liabilities assumed | RMB Current assets 16,567 Property, plant and equipment, net 1,421 Intangible assets 133,183 Goodwill 368,221 Current liabilities (44,564) Deferred tax liabilities (19,829) Non-controlling interest (335,161) Total 119,838 |
Schedule of reconciliation of total purchase consideration | RMB Cash consideration 21,500 Fair value of the share consideration 98,338 Total 119,838 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS RECEIVABLE | |
Schedule of accounts receivable | As at December 31, 2021 2022 2022 RMB RMB US$ Accounts receivable 132,831 138,035 20,014 Allowance for credit losses (4,932) (7,764) (1,126) Accounts receivable, net 127,899 130,271 18,888 The rollforward in the allowance for credit losses were as follows: For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Balance at the beginning of the year 7,147 6,473 4,932 715 Cumulative effect of adopting ASU 2016-13 597 — — — Disposal of subsidiary (60) — — — Provisions for the year 1,879 1,463 2,832 411 Reversal of provisions from prior periods due to subsequent cash collection during the year (1,415) (983) — — Amounts written off during the year (1,675) (2,021) — — Balance at the end of the year 6,473 4,932 7,764 1,126 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
Schedule of prepayments and other current assets | As at December 31, Notes 2021 2022 2022 RMB RMB US$ Due from suppliers i) 25,622 31,660 4,590 Loan receivables ii) 169,272 294,130 42,645 Advances to employees 2,708 2,601 377 Dividend receivable — 1,643 238 Deductible value-added tax 45,031 44,268 6,418 Tax refund 216 234 34 Due from hospital 978 1,138 165 Deferred expenses 1,868 200 29 Others 26,177 26,767 3,882 271,872 402,641 58,378 Allowance for credit losses (14,853) (17,290) (2,507) 257,019 385,351 55,871 The Group records allowance for doubtful debts in “general and administrative expenses” in the consolidated statements of comprehensive loss. i) Amounts due from suppliers represented prepayments made for orders and returnable deposits of cancelled orders. The risk of loss arising from non-performance by or bankruptcy of suppliers is assessed prior to the order of the equipment. The Group has provided reserve for bad debt amounting to nil and nil on the amounts due from suppliers as at December 31, 2021 and 2022, respectively. ii) Loan receivables represented the loans to other parties, including loans to related parties such as the Guangdong Proton International Hospital Management Co., Ltd, and Beijing Allcure Medical Information Technology Co., Ltd. (“Allcure Information”) of total amount of RMB 154,707 and RMB 178,453 (US $25,873 ) as at December 31, 2021 and 2022, and third parties of RMB 14,565 and RMB 115,677 (US $16,772 ) as at December 31, 2021 and 2022, respectively. The Group recorded allowance for doubtful debts amounting to RMB 9,015 and RMB 9,017 (US$ 1,307 ) as at December 31, 2021 and 2022, respectively. Besides the credit losses provided to the balances to related parties, the Group recorded allowance for credit losses amounting to RMB 3,001 and RMB 3,011 (US $437 ) as of December 31, 2021 and 2022, respectively to balances to third parties . |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES | |
Schedule of inventories | As at December 31, 2021 2022 2022 RMB RMB US$ Medicine 10,259 9,896 1,435 Medical material 27,754 72,971 10,580 Low-value consumables 692 2,575 373 38,705 85,442 12,388 Less: inventory provision (620) (607) (88) 38,085 84,835 12,300 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Schedule of property, plant and equipment, net | As at December 31, 2021 2022 2022 RMB RMB US$ Buildings 775,708 782,560 113,461 Medical equipment 484,653 532,165 77,157 Electronic and office equipment 57,215 58,038 8,415 Motor vehicles 3,718 3,717 537 Leasehold improvement and building improvements 78,724 75,032 10,879 Construction in progress 1,986,032 2,131,991 309,110 Total 3,386,050 3,583,503 519,559 Less: accumulated depreciation (224,877) (308,210) (44,686) Impairment charges (16,148) (16,148) (2,341) 3,145,025 3,259,145 472,532 |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASE | |
Schedule of component lease receivables | As at December 31, 2021 2022 2022 RMB RMB US$ Current Account receivable - Operating lease 13,318 93,883 13,612 Account receivable - Sales-type lease 1,010 906 131 Net investment in direct financing leases 2,699 — — Non-current Net investment in direct financing leases 4,796 — — Total 21,823 94,789 13,743 |
Schedule of component sales-type and direct financing leases | For the Year Ended December 31, 2022 Direct financing Sales-type leases leases Operating leases RMB US$ RMB US$ RMB US$ Selling loss recognized at the commencement date — — — — — — Interest income on net investment in the lease 3,326 482 414 60 — — Including: Income relating to variable lease payments not included in the measurement of the net investment in a lease 3,326 482 — — — — Lease income relating to lease payments 18,226 2,643 Including: Income relating to variable lease payments not included in the measurement of lease receivable — — — — 18,226 2,643 For the Year Ended December 31, 2021 Direct financing Sales-type leases leases Operating leases RMB US$ RMB US$ RMB US$ Selling loss recognized at the commencement date — — — — — — Interest income on net investment in the lease 5,210 818 1,361 214 — — Including: Income relating to variable lease payments not included in the measurement of the net investment in a lease 5,210 818 — — — — Lease income relating to lease payments 35,913 5,635 Including: Income relating to variable lease payments not included in the measurement of lease receivable — — — — 33,793 5,303 |
Schedule of Net Investment in Direct Financing Leases | As at December 31, 2021 2022 2022 RMB RMB US$ Minimum lease payments to be received 8,384 — — Unearned income (889) — — Net investment in direct financing leases 7,495 — — Current 2,699 — — Non-current 4,796 — — Total 7,495 — — |
Schedule of Future Minimum Lease Payments Under Non-Cancellable Operating Leases | Future minimum operating lease payments RMB US$ 2023 1,796 260 2024 1,796 260 2025 96 14 2026 96 14 2027 96 14 Above 5 years 16 2 |
Schedule of components of lease cost | For the year ended December 31, 2022 RMB US$ Operating lease cost 37,587 5,450 Short term lease cost 326 47 Total 37,913 5,497 |
Schedule of cash flow and other information operating leases | For the year ended December 31, 2022 RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 12,887 1,868 ROU assets obtained in exchange for operating lease liabilities* 105,200 15,253 Weighted-average remaining lease terms (in years) 4 4 Weighted-average discount rate 5.75 % 5.75 % * Includes transition liabilities upon adoption of ASC 842, as well as new leases entered into during the year ended December 31, 2022. Changes in the ROU asset and liability are presented net within operating activities. |
Summary of future minimum lease payments | Minimum Lease Payments RMB US$ Year ending December 31, 2023 48,512 7,034 2024 23,719 3,439 2025 23,702 3,436 2026 23,302 3,378 2027 21,723 3,150 Thereafter 189,280 27,443 Total future lease payments 330,238 47,880 Less: Imputed interest 94,369 13,683 Total lease liability balance 235,869 34,197 |
Schedule of prepaid land lease payments | As at December 31, 2021 2022 2022 RMB RMB US$ Right-of-use Right-of-use Right-of-use Asset asset asset Land use rights 463,992 464,209 67,304 Less: accumulated amortization (47,096) (56,723) (8,224) Net carrying value 416,896 407,486 59,080 |
Schedule of estimated annual amortization expenses | Amortization RMB US$ 2023 9,627 1,396 2024 9,627 1,396 2025 9,627 1,396 2026 9,627 1,396 2027 9,627 1,396 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL. | |
Schedule of goodwill | For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Balance as of January 1 210,443 213,656 581,877 84,364 Addition 3,213 368,221 — — Disposal — — (6,450) (935) Impairment — — — — Balance as of December 31 213,656 581,877 575,427 83,429 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS, NET | |
Schedule of acquired intangible assets | Customer Operating Operating Favorable relationship lease license lease intangibles intangibles intangibles intangibles Technology Others Total RMB RMB RMB RMB RMB RMB RMB Intangible assets, net at January 1, 2021 — — 502,968 17,821 — 2,032 522,821 Acquisition of subsidiaries (note4) — — — — 132,190 1,186 133,376 Addition of software — — — — — 31,811 31,811 Foreign Exchange Gain — — — — — — — Amortization expenses — — (12,672) (1,565) (13,219) (2,715) (30,171) Intangible Asset impairment — — — — — — — Intangible assets, net at December 31, 2021 — — 490,296 16,256 118,971 32,314 657,837 Acquisition of subsidiaries (note4) — — — — — — — Addition of software — — — — — 3,334 3,334 Decrease from cooperation termination with a cooperative hospital — — (272,910) (272,910) Foreign Exchange Gain — — — — — — — Amortization expenses — — (12,672) (1,564) (13,139) (7,120) (34,495) Intangible Asset impairment — — — — — — — Intangible assets, net at December 31, 2022 — — 204,714 14,692 105,832 28,528 353,766 Intangible assets, net at December 31, 2022, in US$ — — 29,681 2,130 15,344 4,136 51,291 At December 31, 2022 Intangible assets, cost 32,449 418 253,440 21,010 132,190 47,334 486,841 Less: accumulated amortization (31,486) (418) (48,726) (6,318) (26,358) (18,806) (132,112) Less: intangible asset impairment (963) — — — — — (963) Intangible assets, net at December 31, 2022 — — 204,714 14,692 105,832 28,528 353,766 i) Amortization expenses for intangibles were RMB 15,756 , RMB 30,171 and RMB 34,495 (US $5,001 ) for the years ended December 31, 2020, 2021 and 2022, respectively. Impairment loss on intangible assets was nil , nil and nil for the years ended December 31, 2020, 2021 and 2022, respectively. ii) For the year ended December 31, 2022, due to a series of cooperation agreemnets have been terminated by the Group and a cooperative hospital, RMB 272,910 (US $39,568 ) decrease of intangible assets has been recorded accordingly. |
Schedule of estimated annual amortization expenses | Amortization RMB US$ 2023 35,070 5,085 2024 35,020 5,077 2025 34,427 4,991 2026 33,329 4,832 2027 215,920 31,306 |
DEPOSITS FOR NON-CURRENT ASSE_2
DEPOSITS FOR NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DEPOSITS FOR NON-CURRENT ASSETS | |
Schedule of deposits for non-current assets | As at December 31, 2021 2022 2022 RMB RMB US$ Deposits for purchases of property, plant and equipment* 224,866 8,932 1,295 224,866 8,932 1,295 * The amount represented interest-free non-refundable partial payments to suppliers of medical equipment and to construction engineering group for construction of hospitals. The remaining contractual obligations associated with these purchase contracts that the suppliers need to undertake are approximately RMB257,165 and RMB220,972 (US$32,038)as at December 31, 2021 and 2022 respectively, which are included in the amount disclosed as purchase commitments in note 27. The Group recognized impairment loss on deposits for non-current assets of RMB8,500, nil and nil for the years ended December 31, 2020, 2021 and 2022, respectively. The amount of written off for the gross amount of deposits and the allowance is RMB8,500 and nil for the years ended December 31, 2021 and 2022, respectively, since those deposits are deemed uncollectible. |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM INVESTMENTS | |
Schedule of long-term investments | As at December 31, 2021 2022 2022 RMB RMB US$ Equity investments without readily determinable fair value 51,524 51,524 7,470 Equity method investments 277,056 336,254 48,752 Available-for-sale debt securities 62,045 50,096 7,263 Less: Impairment loss — — — Total 390,625 437,874 63,485 |
Schedule of equity investments without readily determinable fair value | Equity interest owned by the Group As at December 31, Note 2021 2022 RMB RMB Allcure Information i) 22,160 9.6 % 22,160 9.6 % Concord Healthcare Singapore Pte. Ltd ii) 22,925 10 % 22,925 8.73 % Legion Healthcare Partners LLC iii) 6,439 5.83 % 6,439 5.83 % Total 51,524 51,524 i) 20% equity interest of Allcure Information was obtained in 2015. During year ended December 31, 2018, Allcure Information issued new shares to other investors and diluted the share ownership of the Group to 9.6% . As of December 31, 2021 and 2022, the share ownership of the Group remained 9.6% . As of December 31, 2021 and 2022, no impairment was recorded for the investment. ii) As stated in note 4, the balance represented 10.0% remaining noncontrolling interests in CHS, which has been diluted to 8.73% due to a new capital injection from another shareholder as of December 31, 2022. The investment was accounted for using measurement alternative. As of December 31, 2021 and 2022, no impairment was recorded for the investment. iii) In March, 2021, the Group obtained the 5.83 % equity interest of Legion Healthcare Partners LLC through purchase. As of December 31, 2022, the share ownership of the Group remained 5.83 %. As of December 31, 2021 and 2022, no impairment was recorded for the investment. |
Schedule of equity method investments | Equity interest owned by the Group as at December 31, Notes 2021 2022 RMB RMB Xi’an JiangyuanAndike Ltd. (“JYADK”) 12,468 29.70 % 10,496 29.70 % Suzhou Shengshan Huiying Venture Capital Investment LLP. (“Suzhou Shengshan”) i) 11,051 5.15 % 12,939 5.15 % Zhejiang Marine Leasing Ltd ii) 167,044 20.00 % 179,231 20.00 % Guangdong Hengjian Proton Medical Industry Co., Ltd (“Guangdong Hengjian”) iii) 86,493 14.20 % 86,315 14.20 % Shanghai Xinhe Enterprise Management Center (Limited Partnership) ("Shanghai Xinhe") iv) — — % 45,005 99.99 % Shanghai Changshengshu Management Co. LTD("Shanghai Changshengshu") v) — — % 1,968 20.00 % Guangzhou Yicheng Biological Immune Technology Co. LTD("Guangzhou Yicheng") vi) — — % 300 30.00 % Total 277,056 336,254 i) In 2017, the Group entered into a partnership agreement to subscribe for 8.13% interest in Suzhou Shengshan, a partnership engaged in equity and capital investment, with a subscription amount of RMB 10,000 . In 2018, 2019 and 2020, with the subscribed capital injection from new investors, the equity interest that the Group shared in Suzhou Shengshan was diluted to 5.41%, 5.15% and 5.15% respectively as of December 31, 2018, 2019 and 2020. As of December 31, 2021 and 2022, the percentage the Group held remained unchanged. According to the partnership agreement, the Group acts as a limited partner and has significant influence over Suzhou Shengshan's daily operation due to it’s agreed that all issue of operation and management shall be subject to the unanimous consent of all partners. ii) On February 28, 2019, China Medical Service Holdings Ltd. (HK), a subsidiary of the Group, entered into a shares purchase agreement with Merge Limited to purchase 20% equity interests of Zhejiang Marine. As the Group held 20% equity share and had the ability to exercise significant influence over the Zhejiang Marine, the Group applied the equity method of accounting to the investment. The registration change was completed on June 10, 2020 and Zhejiang Marine became an associate company of the Group since then. As of December 31, 2021 and 2022, the percentage the Group held remained unchanged. The total book value of the Group’s long-term investments pledged to secure other borrowings as of December 31, 2020, 2021 and 2022 was RMB 166,870 , RMB 167,044 and RMB 179,231 (US $26,986 ) (note 18), respectively. iii) In December 2020, Aohua Technology, a subsidiary of the Group, entered into a capital increase agreement with Guangdong Hengjian and the original shareholders of Guangdong Hengjian to obtain shares of Guangdong Hengjian. The registration change was completed on January 13, 2021, and as of December 31, 2021 and 2022, RMB 86,649 has been paid, which takes 14.20% shares. The Group has significant influence over Guangdong Hengjian due to the Group was entitled to delegate 2 out of 5 directors in the board and participated in policy-making processes of Guangdong Hengjian. iv) In March 2022, Shanghai Medstar, a subsidiary of the Group, established Shanghai Xinhe with Shanghai Xinfu Enterprise Management Center (Limited Partnership), and acted as a limited partner. The Group obtained 99% shares of Shanghai Xinhe in the consideration of 2.05% shares in MHM, the carrying value of which was RMB 45,115 . The Group cannot consolidate Shanghai Xinhe as neither Shanghai Xinhe is a VIE nor the Group owns a majority kick-out right in Shanghai Xinhe. The Group has significant influence over Shanghai Xinhe derived from 99% ownership in the partnership as a limited partner. v) In October 2022, SH MZJH, a subsidiary of the Group, entered into a capital increase agreement with Shanghai Changshengshu to purchase 20% equity interests of Shanghai Changshengshu with the consideration amount of RMB 2,000 . The Group has significant influence over Shanghai Changshengshu due to the voting power from shareholder to the policy-making processes of Shanghai Changshengshu. vi) In December 2022, GCMTIC, a subsidiary of the Group, entered into a capital purchase agreement with Guangzhou Yicheng to purchase 30% equity interests of Guangzhou Yicheng with the consideration amount of RMB 300 . The Group has significant influence over Guangzhou Yicheng due to the Group was entitled to delegate 1 out of 3 directors in the board and participated in policy-making processes of Guangzhou Yicheng. |
Schedule of available-for-sale debt securities | As at December 31, 2022 Redemption Redemption Notice Fair value Frequency Period RMB Private equity funds 50,096 Annually 5 50,096 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other non-current assets | As at December 31, Notes 2021 2022 2022 RMB RMB US$ Deposit-long-term i) 6,232 6,249 906 Advance to hospitals-noncurrent ii) 1,104 1,002 145 Others iii) 13,440 7,842 1,137 20,776 15,093 2,188 i) Impairment losses of RMB 19 and RMB (2) were provided for the balances as at December 31, 2021 and 2022. ii) Impairment losses of nil and RMB 102 (US $15 ) were provided for the balances as at December 31, 2021 and 2022 . iii) Impairment losses of RMB 361 and RMB 797 (US$ 116 ) were provided for the balances as at December 31, 2021 and 2022. |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
Schedule of accrued expenses and other liabilities | As at December 31, 2021 2022 2022 RMB RMB US$ Accrued expenses 121,149 75,010 10,875 Salaries and welfare payable 42,628 73,803 10,700 Business and other taxes payable 20,954 27,961 4,054 Contractual liabilities 81,032 100,802 14,615 Other payables 116,414 142,305 20,635 382,177 419,881 60,879 |
BANK AND OTHER BORROWINGS (Tabl
BANK AND OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative liability | |
Schedule of Bank and Other Borrowings | As at December 31, 2021 2022 2022 RMB RMB US$ Total bank and other borrowings 2,477,948 2,984,010 432,641 Comprised of: Short-term 136,510 168,601 24,445 Long-term, current portion 162,842 343,982 49,873 299,352 512,583 74,318 Long-term, non-current portion 2,178,596 2,471,427 358,323 2,477,948 2,984,010 432,641 |
Long-term Bank and Other Borrowings [Member] | |
Derivative liability | |
Schedule of Maturities of Long-Term and Other Debt | RMB US$ Within one year 343,982 49,873 Between one and two years 542,952 78,721 Between two and three years 380,079 55,106 Between three and four years 358,615 51,994 Above four years 1,189,781 172,502 2,815,409 408,196 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TAXATION | |
Schedule of loss before income taxes | For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Non – PRC (142,750) 5,451 45,211 6,555 PRC (298,903) (534,688) (885,107) (128,327) (441,653) (529,237) (839,896) (121,772) |
Schedule of current and deferred components of the income tax expense (benefit) | For the Year Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Current tax expense (benefit) (24,047) 4,115 (8,765) (1,271) Deferred tax benefit (13,577) (10,680) (62,141) (9,009) (37,624) (6,565) (70,906) (10,280) |
Schedule of reconciliation of the differences between the statutory tax rate and the effective tax rate for EIT | For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Loss before income taxes (441,653) (529,237) (839,896) (121,772) Income tax computed at the tax rate of 25% (110,413) (132,309) (209,974) (30,443) Effect of different tax rates in different jurisdictions 10,715 2,798 (20,584) (2,983) Non-deductible expenses 74,225 (10,502) 21,543 3,123 Non-taxable income (78,447) 9,183 (55,705) (8,076) Statutory income (expense) (2,544) 3,994 25,419 3,685 Interest and penalty (465) (12,918) (7,254) (1,052) Deferred tax expense (2,314) (13,953) 7,056 1,023 Changes of valuation allowance 71,545 142,806 168,102 24,372 Withholding tax 74 4,336 491 71 (37,624) (6,565) (70,906) (10,280) |
Schedule of components of deferred taxes | As at December 31, 2021 2022 2022 RMB RMB US$ Deferred tax asset Net operating loss* 216,902 357,483 51,830 Foreign exchange loss 7,679 1,330 193 Depreciation and amortization 10,479 22,535 3,267 Property, plant and equipment impairment 6,997 6,997 1,014 Deposits for non-current assets 18,475 18,475 2,679 Allowance for net investment in financing lease 5,137 5,137 745 Allowance for doubtful accounts 14,013 14,746 2,138 Lease liabilities 56,673 58,901 8,540 Other long-term assets 92,261 104,912 15,211 Equity investment 7,574 7,553 1,095 Others 7,971 13,728 1,990 Total deferred tax assets 444,161 611,797 88,702 less: Valuation allowance** (396,919) (565,022) (81,920) Net deferred tax assets 47,242 46,775 6,782 Deferred tax liabilities Equity investment (287) (1,170) (170) Property, plant and equipment (1,428) (1,682) (244) Disposal of Beijing Century Friendship (3,126) (3,126) (453) Intangible assets (156,189) (81,336) (11,793) Right-of-use assets (48,259) (46,873) (6,796) Capitalized interest (19,179) (19,179) (2,781) Others (3,198) (5,986) (867) Total deferred tax liabilities (231,666) (159,352) (23,104) Deferred tax assets, net — — — Deferred tax liabilities, net (184,424) (112,577) (16,322) * As of December 31, 2022, the Group had net operating losses from several of its PRC and oversea entities of RMB839,896 (US$121,772), which can be carried forward to offset future taxable profit. As per filed tax returns, the net operating loss from PRC entities will expire between 2023 to 2027. For the net operating loss from overseas entities, there is no limitation of expiration according to the statute of Hong Kong and US. ** The Group records a valuation allowance on its deferred tax assets that is sufficient to reduce the deferred tax assets to an amount that is more likely than not to be realized. Future reversal of the valuation allowance will be recognized either when the benefit is realized or when it has been determined that it is more likely than not that the benefit in future earnings will be realized. |
Schedule of movement of valuation allowance | For the Year Ended December 31, 2021 2022 2022 RMB RMB US$ Balance at the beginning of year (257,579) (396,919) (57,548) Change of valuation allowance in the current year (139,340) (168,103) (24,372) Balance at the end of year (396,919) (565,022) (81,920) |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits excluding the penalty and interest | For the Years Ended December 31, 2021 2022 2022 RMB RMB US$ Balance at the beginning of year 65,093 81,901 11,875 Changes based on tax positions related to the current year 19,766 322 47 Additions related to prior year tax position 8,692 1,072 155 Decreases related to prior year tax position (7,580) (6,617) (959) Decrease related to disposal of CMSI — (7,861) (1,140) Decreases relating to expiration of applicable statute of limitation (3,322) (3,572) (518) Foreign currency translation (748) 1,927 279 Balance at the end of year 81,901 67,172 9,739 |
Other long-term liabilities (Ta
Other long-term liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other long-term liabilities | |
Schedule of other long-term liabilities | As at December 31, Notes 2021 2022 2022 RMB RMB US$ Accrued unrecognized tax benefits & surcharge i) 75,347 60,299 8,743 Lease deposit received from hospital 2,000 2,000 290 Convertible Note ii) 20,000 20,000 2,900 Others 1,254 1,785 259 98,601 84,084 12,192 i) The amounts of unrecognized tax benefit are based on the recognition and measurement criteria of ASC Topic 740. The balance is presented as non-current liability in the consolidated financial statements as at December 31, 2022 due to the fact that the Group does not anticipate payments of cash within one year. The Group recorded accrued unrecognized tax benefits & surcharge amounting to RMB 75,347 and RMB 60,299 (US $ 8,743 ) (note 27) as of December 31, 2021 and 2022, respectively. ii) Convertible Note In December 2021, Healthingkon, a subsidiary of the Company, issued RMB20.0 million convertible note (“2021 Convertible Note”) to a single investor. Healthingkon received proceeds of RMB20.0 million on December 7, 2021 with no issuance costs. The Convertible Note bear interest of 4.75% per annum and have terms of 5 years upon the receipt of the principal. As of December 31, 2022, 2021 Convertible Note has not been paid or converted into ordinary shares of Healthingkon. |
SHARE-BASED AWARDS (Tables)
SHARE-BASED AWARDS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SHARE-BASED AWARDS | |
Schedule of Assumptions Used | February 18, 2014 Risk-free interest rate 2.33 % Dividend yield 5 % Exercise multiple 2.5 Expected volatility range 39.03 % |
Schedule of Stock Options | The following table summarizes employee share options activities for the year ended December 31, 2022: Weighted Weighted- Weighted Average Average Average Remaining Aggregate Number of Exercise Grant-date Contractual Intrinsic Share Options Granted to Employees Shares Price Fair Value Term (Years) Value Outstanding, January 1, 2022 2,657,946 US$ 2.04 US$ 0.65 1.13 — Lapsed (2,657,946) US$ 2.04 US$ 0.65 — — Outstanding, December 31, 2022 — US$ — US$ — — — Exercisable at December 31, 2022 — US$ — US$ — — — |
Summary of Restricted Shares | Fair Value per Share at the Grant Grant Date Number of Awards date (US$) February 18, 2014 1,370,250 1.93 July 1, 2014 21,132 2.35 August 1, 2014 69,564 2.44 August 7, 2017 1,453,950 1.33 August 8, 2017 3,319,200 1.34 September 13, 2017 45,000 1.33 October 2, 2018 5,992,605 1.19 The Company recognizes the compensation expense on a straight-line basis over the requisite service period for the entire award. Restricted Shares activity for the year ended December 31, 2022 was as follows: Weighted Numbers average grant of shares date fair value RMB US$ Outstanding, January 1, 2022 10,898,289 1.31 Granted — — Forfeited (112,500) — Exercised — — Outstanding, December 31, 2022 10,785,789 1.31 Exercisable, December 31, 2022 10,785,789 1.31 |
Schedule of Share-Based Compensation Expense | For the Years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ General and administrative expenses 17,553 12,565 (6,424) (931) Selling expenses 3,068 2,115 505 73 20,621 14,680 (5,919) (858) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue | |
Schedule of Deferred revenue Recognition | For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ ASC 606 revenue: Management and technical support 36,948 64,599 53,341 7,734 Medical solution 26,105 217,375 179,135 25,972 Medical service 76,997 101,854 131,936 19,129 Medicine income 30,055 59,321 85,707 12,426 ASC 606 revenue 170,105 443,149 450,119 65,261 ASC 842 revenue: Operating lease income* 45,847 35,913 18,226 2,643 Sales-type lease income* 4,130 5,210 3,326 482 Direct financing lease income* 2,929 1,361 414 60 ASC 842 revenue 52,906 42,484 21,966 3,185 Total revenue 223,011 485,633 472,085 68,446 * Operating lease income, sales-type lease income and direct financing lease income were recognized under ASC 842, Leases |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
Schedule of related party transactions | a) Related parties # Name of Related Parties Relationship with the Group JYADK Equity investee of the Group Zhejiang Marine Leasing Ltd.* Equity investee of the Group since June 10, 2020 Cherrylane Investments Limited An entity controlled by a director of the Company Guangdong Proton International Hospital Management Co., Ltd A wholly owned subsidiary of an equity investee of the Group # These are the related parties that have engaged in significant transactions with the Company for the years ended December 31, 2020, 2021 and 2022. * Zhejiang Marine Leasing Ltd, which have been invested by the Group since June 10, 2020 and have become an associate of the Group. b) The Group had the following related party transactions for the years ended December 31, 2020, 2021 and 2022. For the Years ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Loan to: Guangdong Proton International Hospital Management Co., Ltd — 142,895 16,800 2,436 — 142,895 16,800 2,436 Interest income from: JYADK 127 650 — — Guangdong Proton International Hospital Management Co., Ltd — 2,797 6,961 1,009 127 3,447 6,961 1,009 Loan from: Cherrylane Investments Limited — 15,932 — — Zhejiang Marine Leasing Ltd 199,000 8,500 220,369 31,951 199,000 24,432 220,369 31,951 Interest expense to: Cherrylane Investments Limited 587 554 1,334 193 Zhejiang Marine Leasing Ltd 41,331 12,978 15,456 2,241 41,918 13,532 16,790 2,434 Repayment to: Cherrylane Investments Limited — 3,824 — — Zhejiang Marine Leasing Ltd 272,640 77,062 82,915 12,022 272,640 80,886 82,915 12,022 Repayment from: JYADK 1,485 2,430 — — 1,485 2,430 — — |
Schedule of related party balances | (c) The balances between the Group and its related parties as of December 31, 2021 and 2022 are listed below. As at December 31, 2021 2022 2022 RMB RMB US$ Due from related parties, current: Guangdong Proton International Hospital Management Co., Ltd 145,692 169,453 24,568 145,692 169,453 24,568 Due to related parties, current: Cherrylane Investments Limited 12,108 13,105 1,900 12,108 13,105 1,900 Due to related parties, non-current Zhejiang Marine Leasing Ltd 83,778 122,579 17,772 83,778 122,579 17,772 Due to related parties, non-current, due within 1 year Zhejiang Marine Leasing Ltd 26,753 123,855 17,957 Cherrylane Investments Limited 9,240 10,001 1,450 35,993 133,856 19,407 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT REPORTING | |
Schedule of segment information | For the year ended December 31, 2022 Network Hospital Total RMB RMB RMB US$ Revenues from external customers 254,442 217,643 472,085 68,446 Cost of sales (225,245) (399,249) (624,494) (90,543) Gross profit (loss) 29,197 (181,606) (152,409) (22,097) For the year ended December 31, 2021 Network Hospital Total RMB RMB RMB Revenues from external customers 324,458 161,175 485,633 Cost of sales (253,826) (288,704) (542,530) Gross profit (loss) 70,632 (127,529) (56,897) For the year ended December 31, 2020 Network Hospital Total RMB RMB RMB Revenues from external customers 115,959 107,052 223,011 Cost of sales (52,725) (157,203) (209,928) Gross profit (loss) 63,234 (50,151) 13,083 As at December 31, 2021 2022 2022 RMB RMB US$ Segment assets Network 1,849,432 2,048,126 296,951 Hospital 4,380,519 3,956,808 573,683 Total segment assets 6,229,951 6,004,934 870,634 |
Schedule of net revenue by country based upon the sales location that predominately represents the customer location | For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Revenues from PRC 199,370 485,633 472,085 68,446 Revenues from Singapore 23,641 — — — Total revenues 223,011 485,633 472,085 68,446 |
Schedule of total long-lived assets excluding financial instruments, intangible assets, long-term investment and goodwill by country | As at December 31, 2021 2022 2022 RMB RMB US$ PRC 3,989,426 3,862,975 560,079 Singapore — — — Total long-lived assets 3,989,426 3,862,975 560,079 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LOSS PER SHARE | |
Schedule of computation of basic and diluted loss per share | For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Net loss attributable to Concord Medical Services Holdings Limited (309,989) (271,427) (489,661) (70,993) Accretion of contingently redeemable noncontrolling interests (359,920) (549,194) — — Numerator for EPS computation (669,906) (820,621) (489,661) (70,993) For the Years Ended December 31 2020 2021 2022 2022 Class A Class B Class A Class B Class A Class A Class B Class B RMB RMB RMB RMB RMB USD RMB USD Numerator Net loss attributable to ordinary shareholders used in calculating loss per ordinary share – basic and diluted (435,855) (234,054) (533,909) (83,784) (318,582) (46,189) (171,079) (24,804) Denominator: Weighted average number of ordinary shares outstanding used in calculating loss per share – basic and diluted 85,265,910 45,787,948 85,265,910 85,265,910 85,265,910 85,265,910 45,787,948 45,787,948 Loss per share – basic and diluted (5.11) (5.11) (6.26) (0.98) (3.74) (0.54) (3.74) (0.54) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value of its derivative liability on a recurring basis | The Company measured the fair value of its derivative liability on a recurring basis using significant unobservable (Level 3) inputs as of December 31, 2022. Fair Value Measurement at the End of the Reporting Period Using Quoted Prices in Active Significance Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs 2022 (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Liability Items Derivative liability: 5,290 5,290 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | Condensed balance sheets As at December 31 2021 2022 2022 RMB RMB US$ ASSETS Current assets: Cash and cash equivalent 15,058 1,510 219 Prepayments and other current assets 121 24,271 3,519 Amounts due from subsidiaries 298,900 — — Total current assets 314,079 25,781 3,738 Total assets 314,079 25,781 3,738 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short term loan 14,625 32,417 4,700 Long-term debts due within one year — 111,028 16,098 Accrued expenses and other liabilities 13,924 11,649 1,689 Derivative liability — 5,290 767 Amounts due to subsidiaries 1,559,394 1,729,363 250,735 Total current liabilities 1,587,943 1,889,747 273,989 Non-current liabilities: Long-term bank and other borrowings, non-current portion 90,389 — — Derivative liability 5,863 — — Total liabilities 1,684,195 1,889,747 273,989 Shareholders’ equity (deficit): Class A ordinary shares (par value of US$0.0001per share; authorized shares-500,000,000; issued shares-96,565,584 as of December 31, 2021 and 2022; outstanding shares-84,463,737 and 84,463,737 as of December 31, 2021 and 2022, respectively) 68 68 10 Class B ordinary shares (par value of US$0.0001per share; authorized shares‑45,787,948; issued shares-45,787,948 and 45,787,948 as of December 31, 2021 and 2022; outstanding shares- 45,787,948 and 45,787,948 as of December 31, 2021 and 2022, respectively) 37 37 5 Treasury stock (12,101,847 and 12,101,847 shares as of December 31, 2021 and 2022, respectively) (7) (7) (1) Additional paid-in capital 1,936,552 1,930,633 279,915 Accumulated other comprehensive income (loss) (29,496) (27,766) (4,026) Accumulated deficit (3,277,270) (3,766,931) (546,154) Total shareholders’ equity (deficit) (1,370,116) (1,863,966) (270,251) Total liabilities and shareholders’ equity (deficit) 314,079 25,781 3,738 |
Schedule of condensed statements of comprehensive loss | Condensed statements of comprehensive loss For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Revenues — — — — Cost of revenues — — — — General and administrative expenses (23,598) (14,428) 5,242 760 Selling expenses (2,969) (2,090) (524) (76) Operating loss (26,567) (16,518) 4,718 684 Equity in loss of subsidiaries (621,932) (793,117) (605,175) (87,741) Interest income 588 — — — Interest expense (3,036) (1,459) (10,394) (1,507) Changes in fair value of derivatives — — 1,055 153 Other income, net — — 96,609 14,007 Foreign exchange gain(loss) (18,962) (9,527) 23,526 3,411 Net loss (669,909) (820,621) (489,661) (70,993) Other comprehensive income (loss), net of tax of nil foreign currency translation adjustments 50,856 14,821 (53,964) (7,824) Total other comprehensive (loss) income 50,856 14,821 (53,964) (7,824) Comprehensive loss (619,053) (805,800) (543,625) (78,817) |
Schedule of condensed statements of cash flows | Condensed statements of cash flows For the Years Ended December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Net cash (used in) generated from operating activities 9,041 (9,301) (2,047) (297) Net cash (used in) generated from investing activities (7,468) (88,546) (29,335) (4,253) Net cash (used in) generated from financing activities — 110,876 16,591 2,405 Exchange rate effect on cash (34) (50) 1,243 181 Net (decrease) increase in cash 1,539 12,979 (13,548) (1,964) Cash at beginning of the year 540 2,079 15,058 2,183 Cash at end of the year 2,079 15,058 1,510 219 |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION - Schedule of subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Entity incorporation, State or Country code | E9 |
Ascendium Group Limited ("Ascendium") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Sep. 10, 2007 |
Percentage of ownership by the Company | 100% |
Principal activities | Investment holding |
China Medical Services Holdings Limited ("CMS Holdings") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Jul. 18, 2008 |
Percentage of ownership by the Company | 100% |
Principal activities | Investment holding |
King Cheers Holdings Limited ("King Cheers") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | May 18, 2001 |
Percentage of ownership by the Company | 100% |
Principal activities | Investment holding |
Shenzhen Aohua Medical Technology Development Co., Ltd. ("Aohua Technology ") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Feb. 21, 2008 |
Percentage of ownership by the Company | 43.90% |
Principal activities | Leasing of medical equipment and provision of management services |
Shanghai Medstar Financial Leasing Company Limited ("Shanghai Medstar") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Mar. 21, 2003 |
Percentage of ownership by the Company | 98.19% |
Principal activities | Leasing of medical equipment and provision of management services |
Meizhong Jiahe Medical Technology Development Group Co., Ltd. ("MHM") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Jul. 23, 2008 |
Percentage of ownership by the Company | 43.90% |
Principal activities | Provision of management services |
Beijing Yundu Internet Technology Co., Ltd. ("Yundu") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Jul. 26, 2007 |
Percentage of ownership by the Company | 43.90% |
Principal activities | Provision of management services |
Tianjin Concord Medical Technology Limited ("Tianjin Concord Medical") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Apr. 22, 2010 |
Percentage of ownership by the Company | 98.19% |
Principal activities | Leasing of medical equipment and provision of management services |
Guangzhou Concord Cancer Center Co., Ltd ("Guangzhou Concord Cancer Hospital") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Jun. 29, 2011 |
Percentage of ownership by the Company | 35.12% |
Principal activities | Medical treatment and service business |
CCM (Hong Kong) Medical Investments Limited ("CCM (HK)") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Jun. 03, 2013 |
Percentage of ownership by the Company | 100% |
Principal activities | Investment holding |
Shanghai Concord Cancer Center Co., Ltd ("SHC") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Mar. 17, 2014 |
Percentage of ownership by the Company | 44.18% |
Principal activities | Medical treatment and service business |
Datong Meizhong Jiahe Cancer Center ("DTMZ") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Oct. 23, 2014 |
Percentage of ownership by the Company | 43.90% |
Principal activities | Medical treatment and service business |
Wuxi Concord Medical Development Ltd. ("Wuxi Concord") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Dec. 29, 2015 |
Percentage of ownership by the Company | 100% |
Principal activities | Provision of management services |
Beijing Concord Medical Technology Ltd.("BJCMT") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Jan. 04, 2016 |
Percentage of ownership by the Company | 100% |
Principal activities | Provision of management services |
Beijing Century Friendship Science & Technology Development Co., Ltd ("Beijing Century Friendship") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Oct. 08, 2018 |
Percentage of ownership by the Company | 98.19% |
Principal activities | Provision of management services and investment holding |
Beijing Proton Medical Center Co., Ltd ("BPMC") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Oct. 08, 2018 |
Percentage of ownership by the Company | 79.01% |
Principal activities | Medical treatment and service business |
Shanghai Meizhong Jiahe Cancer Center Co., Ltd. ("CMCC") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Oct. 08, 2018 |
Percentage of ownership by the Company | 41.50% |
Principal activities | Medical treatment and service business |
Shanghai Meizhong Jiahe Imaging Diagnostic Center Co., Ltd. ("SH MZJH") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Nov. 18, 2019 |
Percentage of ownership by the Company | 15.68% |
Principal activities | Medical treatment and service business |
Wuxi Meizhongjiahe Cancer Center ("Wuxi MZJH") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Nov. 18, 2019 |
Percentage of ownership by the Company | 98.50% |
Principal activities | Medical treatment and service business |
Yinchuan Meizhong Jiahe Internet Hospital Ltd. ("YCIH") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Oct. 18, 2020 |
Percentage of ownership by the Company | 43.90% |
Principal activities | Medical treatment and service business |
US Proton Therapy Holdings Limited ("Proton BVI") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | May 16, 2011 |
Percentage of ownership by the Company | 100% |
Principal activities | Investment holding |
US Proton Therapy Holdings Limited ("US Proton") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Jun. 29, 2011 |
Percentage of ownership by the Company | 100% |
Principal activities | Investment holding |
Guangzhou Concord Hospital Management Co., Ltd. ("GCHM") (formerly known as Guangzhou New Spring Hospital Management Ltd.) | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Apr. 21, 2020 |
Percentage of ownership by the Company | 30.73% |
Principal activities | Investment holding |
Guangzhou Concord Medical Cancer Ltd. ("GCMC") (formerly known as Guangzhou New Spring Medical Cancer Ltd) | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Apr. 21, 2020 |
Percentage of ownership by the Company | 30.73% |
Principal activities | Medical treatment and service business |
Beijing Healthingkon Technology Co Ltd ("Healthingkon") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Jan. 04, 2021 |
Percentage of ownership by the Company | 11.56% |
Principal activities | Leasing of medical equipment and technical service |
Guangzhou Concord Medical Technology Innovation Center Co., Ltd ("GCMTIC") | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Date of establishment/acquisition | Apr. 22, 2021 |
Percentage of ownership by the Company | 43.90% |
Principal activities | Technical service |
ORGANIZATION AND BASIS OF PRE_4
ORGANIZATION AND BASIS OF PRESENTATION - Additional information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Dec. 01, 2020 | Apr. 07, 2020 CNY (¥) shares | Nov. 13, 2019 CNY (¥) | Aug. 23, 2019 CNY (¥) | Jul. 22, 2019 CNY (¥) | Jul. 10, 2018 CNY (¥) shares | Mar. 26, 2018 shares | Mar. 31, 2022 | Apr. 30, 2021 CNY (¥) shares | Jun. 30, 2018 CNY (¥) | Nov. 30, 2017 CNY (¥) | Nov. 30, 2016 CNY (¥) | Jan. 31, 2016 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2017 CNY (¥) | Dec. 31, 2016 shares | Dec. 31, 2015 shares | Dec. 31, 2022 USD ($) | Apr. 30, 2022 | Dec. 31, 2019 CNY (¥) | Dec. 31, 2019 USD ($) | Nov. 18, 2019 CNY (¥) | |
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Capital injected amount | ¥ 400,000 | ¥ 700,000 | |||||||||||||||||||||||
Shares repurchased | shares | 967,408 | 614,033 | |||||||||||||||||||||||
Investment in equity method investees | ¥ (2,300) | $ (333) | (61,159) | ¥ (163,844) | |||||||||||||||||||||
Equity method investments | 336,254 | 277,056 | $ 48,752 | ||||||||||||||||||||||
Common unit value authorized | ¥ 1,009,000 | ||||||||||||||||||||||||
Accounts receivable, allowance | ¥ 7,764 | ¥ 4,932 | $ 1,126 | ||||||||||||||||||||||
Shanghai Xinhe Enterprise Management Center (Limited Partnership) ("Shanghai Xinhe") | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Equity interest in equity method investment | 99% | 99.99% | 0% | 99.99% | |||||||||||||||||||||
Percentage of shares as consideration | 2.05% | ||||||||||||||||||||||||
Guofu Huimei Investment Management Limited Partnership | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Equity method investments | ¥ 746,000 | ||||||||||||||||||||||||
ZR Group | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of ownership in equity interest to be repurchased | 75% | ||||||||||||||||||||||||
Consideration to be made on acquisition of equity interest | ¥ 521,396 | ||||||||||||||||||||||||
ZR Group | ZR ConcordHealthcare Investment Fund SP ("SP") [Member] | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Creditor's rights settled for acquisition of equity interest | 166,299 | ||||||||||||||||||||||||
Business combination, consideration transferred | ¥ 7,500 | ||||||||||||||||||||||||
ZR Guofu | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of equity interest withdrawn | 77.18% | ||||||||||||||||||||||||
Consideration | ¥ 421,730 | ||||||||||||||||||||||||
Period of equity interest repurchased | 4 years | ||||||||||||||||||||||||
Creditor's rights settled for acquisition of equity interest | ¥ 97,106 | ||||||||||||||||||||||||
Consideration for repurchase of equity interest | ¥ 521,396 | ||||||||||||||||||||||||
Annual premium percentage to be paid | 15% | ||||||||||||||||||||||||
Partners' capital account, contributions | ¥ 746,001 | ||||||||||||||||||||||||
Percentage of interest in partnership | 73.93% | ||||||||||||||||||||||||
ZR Guofu | ZR ConcordHealthcare Investment Fund SP ("SP") [Member] | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Consideration to be made on acquisition of equity interest | ¥ 521,396 | ||||||||||||||||||||||||
Shanghai Rongchi Medical Management Limited | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Common unit value authorized | ¥ 695,305 | ||||||||||||||||||||||||
The Group | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Partners' capital account, contributions | ¥ 262,999 | ||||||||||||||||||||||||
Percentage of interest in partnership | 26.07% | ||||||||||||||||||||||||
Shanghai Meizhong Jiahe Imaging Diagnostic Center Co., Ltd. ("SH MZJH") | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Capital contributed | ¥ 34,540 | ||||||||||||||||||||||||
Shanghai Meizhong Jiahe Imaging Diagnostic Center Co., Ltd. ("SH MZJH") | ZR ConcordHealthcare Investment Fund SP ("SP") [Member] | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Creditor's rights settled for acquisition of equity interest | ¥ 82,100 | ||||||||||||||||||||||||
Beijing Century Friendship Science and Technology Development Co., Ltd. | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of equity interest sold | 100 | ||||||||||||||||||||||||
Business combination, consideration transferred | 388,500 | ||||||||||||||||||||||||
Shanghai Meizhongjiahe ProMed Cancer Centers Co., Ltd | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of equity interest sold | 90 | ||||||||||||||||||||||||
Business combination, consideration transferred | 182,100 | ||||||||||||||||||||||||
Tianjin Jiatai Entity Management limited Partnership | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Business combination, consideration transferred | ¥ 106,500 | ||||||||||||||||||||||||
Shanghai Meizhong Jiahe Imaging Diagnostic Center Co., Ltd. ("SH MZJH") | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Capital contributed | $ | $ 5,105 | ||||||||||||||||||||||||
Percentage of equity interest sold | 78.34 | 56.77 | 78.34 | ||||||||||||||||||||||
Business combination, consideration transferred | ¥ 27,000 | ||||||||||||||||||||||||
Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of interest held after disposal | 2.22% | ||||||||||||||||||||||||
Shanghai Medstar Financial Leasing Company Limited ("Shanghai Medstar") | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of equity interests acquired | 98.19% | 98.19% | |||||||||||||||||||||||
Beijing Proton Medical Center Co., Ltd ("BPMC") | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of equity interests acquired | 79.01% | 79.01% | |||||||||||||||||||||||
Percentage of equity interest sold | 80 | ||||||||||||||||||||||||
Tianjin Jiatai Group | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of equity interest sold | 90 | ||||||||||||||||||||||||
Redeemable noncontrolling interest, equity, common, carrying amount | ¥ 434,216 | ||||||||||||||||||||||||
Tianjin Concord Medical Technology Limited ("Tianjin Concord Medical") | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of equity interests acquired | 98.19% | 98.19% | |||||||||||||||||||||||
Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of equity interests acquired | 43.90% | 46.56% | 43.90% | ||||||||||||||||||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 2.36% | 2.06% | 2.05% | ||||||||||||||||||||||
Percentage of interest held after disposal | 49.44% | 49.44% | |||||||||||||||||||||||
Guangzhou Concord Medical Cancer Hospital Co Ltd | ZR Guofu | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of shares acquire for business | 70% | ||||||||||||||||||||||||
PTC Houston Management | ZR Guofu | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of shares acquire for business | 59.51% | ||||||||||||||||||||||||
CCM Hospital Business | ZR Guofu | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of shares acquire for business | 100% | ||||||||||||||||||||||||
Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of equity interest sold | 50.23 | 50.84 | 50.23 | ||||||||||||||||||||||
Business acquisition, equity interest issued or issuable, number of shares | shares | 38,888,888 | 40,000,000 | 60,000,000 | ||||||||||||||||||||||
Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | CITIC Industrial | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Business combination, consideration transferred | ¥ 700,000 | ||||||||||||||||||||||||
Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | Beijing Century Friendship Science and Technology Development Co., Ltd. | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of interest in partnership | 78.31% | ||||||||||||||||||||||||
Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | Shanghai Meizhongjiahe ProMed Cancer Centers Co., Ltd | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Business combination, consideration transferred | ¥ 182,100 | ||||||||||||||||||||||||
Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | CCIC Capital and Other Investor | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Business combination, consideration transferred | ¥ 1,500,000 | ||||||||||||||||||||||||
Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | Beijing Proton Medical Center Co., Ltd ("BPMC") | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of equity interests acquired | 55% | ||||||||||||||||||||||||
Business combination, consideration transferred | ¥ 388,500 | ||||||||||||||||||||||||
Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | Shanghai Meizhong Jiahe Cancer Center Co Ltd | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Percentage of equity interests acquired | 54.80% | ||||||||||||||||||||||||
Beijing Century Friendship Science and Technology Development Co., Ltd. | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Voting interest acquired | 78.31% | ||||||||||||||||||||||||
Beijing Proton Medical Center Co., Ltd ("BPMC") | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Voting interest acquired | 55% | ||||||||||||||||||||||||
Shanghai Meizhongjiahe ProMed Cancer Centers Co., Ltd | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Voting interest acquired | 54.80% | ||||||||||||||||||||||||
Tianjin Jiatai Entity Management limited Partnership | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Voting interest acquired | 28.77% | ||||||||||||||||||||||||
Investors 2021 | |||||||||||||||||||||||||
ORGANIZATION AND BASIS OF PRESENTATION | |||||||||||||||||||||||||
Business combination, consideration transferred | ¥ 400,000 | ||||||||||||||||||||||||
Business acquisition, equity interest issued or issuable, number of shares | shares | 18,805,826 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Information Relating to Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated useful life | 20 years |
Buildings | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated useful life | 50 years |
Medical equipment | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated useful life | 5 years |
Medical equipment | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated useful life | 20 years |
Electronic and office equipment | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated useful life | 3 years |
Electronic and office equipment | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated useful life | 5 years |
Motor vehicles | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated useful life | 5 years |
Leasehold improvement and building improvement | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated useful life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of estimated useful life for the intangible assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Operating license | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Amortization period | 20 years |
Favorable leases | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Amortization period | 17 years |
Favorable leases | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Amortization period | 12 years |
Customer relationship | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Amortization period | 5 years |
Customer relationship | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Amortization period | 16 years |
Operating leases | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Amortization period | 9 years |
Operating leases | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Amortization period | 16 years |
Software | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Amortization period | 3 years |
Software | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Amortization period | 5 years |
Technology | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Amortization period | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 CNY (¥) item loan | Dec. 31, 2022 USD ($) loan $ / shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) item | Jan. 01, 2018 CNY (¥) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Net loss from continuing operations | ¥ 768,990 | $ (111,492) | ¥ 522,672 | ¥ 404,029 | ||
Net cash (used in) generated from operating activities | (216,694) | $ (31,419) | (359,313) | (229,766) | ||
Cash and cash equivalents | 158,283 | 157,386 | $ 22,949 | |||
Working capital | 361,436 | 52,404 | ||||
Accumulated deficit | ¥ (3,766,931) | (3,277,270) | $ (546,154) | |||
Number of loan contracts | loan | 2 | 2 | ||||
Amount of loan contract | ¥ 68,500 | $ 9,900 | ||||
Noon buying rate | 6.8972 | 6.8972 | ||||
Conversion from noon buying rate to per share value | $ / shares | $ 1 | |||||
Description of liquid investments maturity term | 90 days | 90 days | ||||
Number of reporting units after disposal of the GFHM | item | 2 | 2 | ||||
Interest costs incurred | ¥ 180,847 | $ 26,220 | 139,873 | 148,642 | ||
Interest and other costs relating to construction capitalized | 60,490 | $ 8,770 | 66,084 | 67,283 | ||
Impairment on long-lived assets | ¥ 0 | ¥ 0 | ¥ 8,500 | |||
Minimum | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Lessor, sales-type lease, term of contract | 5 years | 5 years | ||||
Maximum | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Lessor, sales-type lease, term of contract | 20 years | 20 years | ||||
Offices and facility under leases | Minimum | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Lessee, finance lease, term of contract | 1 year | 1 year | ||||
Lessee, operating lease, term of contract | 1 year | 1 year | ||||
Offices and facility under leases | Maximum | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Lessee, finance lease, term of contract | 20 years | 20 years | ||||
Land use rights under leases | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Lessee, finance lease, term of contract | 50 years | 50 years | ||||
Lessee, operating lease, term of contract | 50 years | 50 years | ||||
Equipment leased to others | Minimum | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Lessor, sales-type lease, term of contract | 5 years | 5 years | ||||
Equipment leased to others | Maximum | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Lessor, sales-type lease, term of contract | 20 years | 20 years | ||||
Cumulative effect, period of adoption, adjusted balance | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Accumulated deficit | ¥ 5,600 |
CONCENTRATION OF RISKS (Details
CONCENTRATION OF RISKS (Details) | 12 Months Ended | ||
Dec. 31, 2022 customer issuer | Dec. 31, 2021 issuer customer | Dec. 31, 2020 issuer customer | |
Foreign currency exchange rate risk | |||
Depreciation (appreciation) of the RMB against US dollar (as a percent) | 8.20% | (2.30%) | (6.30%) |
Customer concentration risk | Sales revenue | |||
CONCENTRATION OF RISKS | |||
Number of customers | customer | 5 | 5 | 5 |
Concentration risk percentage | 29.20% | 30.95% | 25.85% |
Supplier concentration risk | Cost of goods | |||
CONCENTRATION OF RISKS | |||
Concentration risk percentage | 93% | 94% | 95% |
Number of suppliers | issuer | 5 | 5 | 5 |
ACQUISITIONS AND DISPOSALS - Ac
ACQUISITIONS AND DISPOSALS - Acquisition of New Spring Group (Details) - New Spring Group - Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") [Member] - Guangzhou New Spring Hospital Management Co., Ltd. ¥ in Thousands | 1 Months Ended |
Mar. 31, 2020 CNY (¥) | |
Business Acquisition [Line Items] | |
Cash consideration | ¥ 8,400 |
Non-controlling interest | 3,078 |
Total | ¥ 11,478 |
ACQUISITIONS AND DISPOSALS - Sc
ACQUISITIONS AND DISPOSALS - Schedule of purchase price as of the date of acquisition (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Jan. 31, 2021 CNY (¥) | Jan. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Mar. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
ACQUISITIONS AND DISPOSALS | |||||||||
Goodwill | ¥ 575,427 | $ 83,429 | ¥ 581,877 | $ 84,364 | ¥ 368,221 | $ 57,782 | ¥ 213,656 | ¥ 210,443 | |
Guangzhou New Spring Hospital Management Co., Ltd. | New Spring Group | Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | |||||||||
ACQUISITIONS AND DISPOSALS | |||||||||
Current assets | ¥ 424 | ||||||||
Property, plant and equipment, net | 3,281 | ||||||||
Intangible assets | 5,053 | ||||||||
Goodwill | 3,213 | ||||||||
Long-term deferred and other non-current | 1,202 | ||||||||
Current liabilities | (445) | ||||||||
Deferred tax liabilities | (1,250) | ||||||||
Total | ¥ 11,478 |
ACQUISITIONS AND DISPOSALS - Su
ACQUISITIONS AND DISPOSALS - Summary of Assets and Liabilities Attributable To Discontinued Operations (Details) - Nov. 19, 2020 - CHS ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
ACQUISITIONS AND DISPOSALS | ||
Current assets | ¥ 4,909 | $ 752 |
Other non-current assets | 257,368 | 39,443 |
Current liabilities | (26,024) | (3,988) |
Non-current liabilities | (539) | (83) |
Net assets disposed | ¥ 235,714 | $ 36,124 |
ACQUISITIONS AND DISPOSALS - _2
ACQUISITIONS AND DISPOSALS - Summary of Recognized Gain On Disposal (Details) - Nov. 19, 2020 - CHS ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
ACQUISITIONS AND DISPOSALS | ||
Cash proceeds | ¥ 247,803 | $ 37,977 |
Settlement of amount due from CHS | (602) | (92) |
Commission fee | (44,039) | (6,749) |
Fair value of retained noncontrolling investment | 22,925 | 3,513 |
Disposition of net assets | (235,714) | (36,124) |
Foreign currency translation | (5,267) | (808) |
Loss on disposal of CHS | ¥ (14,894) | $ (2,283) |
ACQUISITIONS AND DISPOSALS - _3
ACQUISITIONS AND DISPOSALS - Acquisition of Healthingkon (Details) - HealthingKon - CNY (¥) ¥ in Thousands | 1 Months Ended | 3 Months Ended |
Jan. 31, 2021 | Jan. 31, 2021 | |
ACQUISITIONS AND DISPOSALS | ||
Cash consideration | ¥ 21,500 | ¥ 21,500 |
Fair value of the share consideration | 98,338 | |
Total | ¥ 119,838 |
ACQUISITIONS AND DISPOSALS - _4
ACQUISITIONS AND DISPOSALS - Acquisition of Healthingkon Assets and Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Jan. 31, 2021 CNY (¥) | Jan. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
ACQUISITIONS AND DISPOSALS | ||||||||
Goodwill | ¥ 575,427 | $ 83,429 | ¥ 581,877 | $ 84,364 | ¥ 368,221 | $ 57,782 | ¥ 213,656 | ¥ 210,443 |
HealthingKon | ||||||||
ACQUISITIONS AND DISPOSALS | ||||||||
Current assets | 16,567 | |||||||
Property, plant and equipment, net | 1,421 | |||||||
Intangible assets | 133,183 | |||||||
Goodwill | 368,221 | |||||||
Current liabilities | (44,564) | |||||||
Deferred tax liabilities | (19,829) | |||||||
Non-controlling interest | (335,161) | |||||||
Total | ¥ 119,838 |
ACQUISITIONS AND DISPOSALS - Di
ACQUISITIONS AND DISPOSALS - Disposal of Guofu Huimei and its subsidiaries loss regarding the deconsolidation (Details) - Dec. 26, 2022 - Guofu Huimei and its subsidiaries ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
ACQUISITIONS AND DISPOSALS | ||
Cash proceeds | ¥ 190,000 | $ 27,547 |
Disposition of net assets | (189,402) | (27,460) |
Goodwill | (6,450) | (935) |
Accumulated other comprehensive loss | (55,694) | (8,075) |
Loss on disposal of CHS | ¥ (61,546) | $ (8,923) |
ACQUISITIONS AND DISPOSALS - _5
ACQUISITIONS AND DISPOSALS - Disposal of Guofu Huimei and its subsidiaries classes of assets and liabilities (Details) - Dec. 26, 2022 - Guofu Huimei and its subsidiaries ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
ACQUISITIONS AND DISPOSALS | ||
Current assets | ¥ 199,727 | $ 28,957 |
Current liabilities | (10,325) | (1,497) |
Net assets disposed | ¥ 189,402 | $ 27,460 |
ACQUISITIONS AND DISPOSALS - _6
ACQUISITIONS AND DISPOSALS - Disposal of Guofu Huimei and its subsidiaries (Details) - Guofu Huimei and its subsidiaries ("GFHM disposal group") ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 26, 2022 CNY (¥) | Dec. 26, 2022 USD ($) |
ACQUISITIONS AND DISPOSALS | ||||
Disposition of net assets | ¥ 189,402 | $ 27,460 | ||
Goodwill | ¥ 6,450 | $ 935 | ||
Shanghai Epu and Shanghai Rongsheng | ||||
ACQUISITIONS AND DISPOSALS | ||||
Disposal group, cash consideration | ¥ 190,000 | $ 27,547 |
ACQUISITIONS AND DISPOSALS - Ad
ACQUISITIONS AND DISPOSALS - Additional Information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Nov. 05, 2020 USD ($) | May 11, 2020 CNY (¥) | Jan. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) shares | Jan. 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Apr. 30, 2022 | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Apr. 30, 2021 | Jan. 31, 2021 USD ($) | Dec. 01, 2020 | May 11, 2020 USD ($) | Mar. 31, 2020 USD ($) shares | Dec. 31, 2019 CNY (¥) | |
ACQUISITIONS AND DISPOSALS | |||||||||||||||||
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss) on Disposition of Stock in Subsidiary | ||||||||||||||||
Goodwill | ¥ 368,221 | ¥ 368,221 | ¥ 575,427 | ¥ 213,656 | $ 83,429 | ¥ 581,877 | $ 84,364 | $ 57,782 | ¥ 210,443 | ||||||||
CHS | |||||||||||||||||
ACQUISITIONS AND DISPOSALS | |||||||||||||||||
Recognized a gain on the disposal | ¥ 14,894 | ||||||||||||||||
Disposal group, cash consideration | $ 602 | ¥ 247,803 | |||||||||||||||
Cash consideration | ¥ 44,039 | ||||||||||||||||
Percentage of equity interest withdrawn | 90% | ||||||||||||||||
Percentage of interest held after disposal | 10% | ||||||||||||||||
Discontinued Operation Equity Method Investment Retained After Disposal | ¥ 22,925 | $ 5,267 | |||||||||||||||
Equity interest remained after disposal of transaction (as a percentage) | 0% | ||||||||||||||||
Fair value of the retained noncontrolling equity interest | ¥ 235,714 | ||||||||||||||||
Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | |||||||||||||||||
ACQUISITIONS AND DISPOSALS | |||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 43.90% | 43.90% | 46.56% | 46.56% | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 2.05% | 2.06% | 2.36% | ||||||||||||||
Percentage of interest held after disposal | 49.44% | ||||||||||||||||
CHS | |||||||||||||||||
ACQUISITIONS AND DISPOSALS | |||||||||||||||||
Percentage of interest held after disposal | 10% | 8.73% | |||||||||||||||
CHS | |||||||||||||||||
ACQUISITIONS AND DISPOSALS | |||||||||||||||||
Cash consideration | ¥ 22,925 | ||||||||||||||||
Dispose of equity method investment (as a percentage) | 17% | ||||||||||||||||
CHS | CHS | CHS | |||||||||||||||||
ACQUISITIONS AND DISPOSALS | |||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10% | ||||||||||||||||
Guangzhou New Spring Hospital Management Co., Ltd. | New Spring Group | Beijing MeizhongJiahe Hospital Management Co., Ltd. ("MHM") | |||||||||||||||||
ACQUISITIONS AND DISPOSALS | |||||||||||||||||
Other payments | ¥ 7,560 | ||||||||||||||||
Voting interest acquired | 70% | 70% | |||||||||||||||
Business combination, consideration transferred | ¥ 11,478 | ||||||||||||||||
Cash consideration | ¥ 8,400 | ||||||||||||||||
Contingent consideration liability | $ | $ 840 | ||||||||||||||||
Period for contingent consideration payable | 6 months | ||||||||||||||||
Capital amount (in shares) | shares | 14,000,000 | 14,000,000 | |||||||||||||||
Goodwill | ¥ 3,213 | ||||||||||||||||
HealthingKon | |||||||||||||||||
ACQUISITIONS AND DISPOSALS | |||||||||||||||||
Voting interest acquired | 26.34% | 26.34% | 26.34% | ||||||||||||||
Business combination, consideration transferred | ¥ 119,838 | ||||||||||||||||
Cash consideration | ¥ 21,500 | ¥ 21,500 | |||||||||||||||
Estimated amortization periods | 10 years | ||||||||||||||||
Goodwill | ¥ 368,221 | ¥ 368,221 | |||||||||||||||
HealthingKon | Shanghai Meizhong Jiahe Imaging Diagnostic Center Co., Ltd. ("SH MZJH") | |||||||||||||||||
ACQUISITIONS AND DISPOSALS | |||||||||||||||||
Percentage of share consideration | 89% | 89% | 89% |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
RESTRICTED CASH | |||
Restricted cash current | ¥ 1,060 | $ 154 | ¥ 1,387 |
Restricted cash non-current | ¥ 0 | ¥ 138 |
ACCOUNTS RECEIVABLE - Schedule
ACCOUNTS RECEIVABLE - Schedule of Accounts Receivable (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
ACCOUNTS RECEIVABLE | |||||
Accounts receivable | ¥ 138,035 | ¥ 132,831 | $ 20,014 | ||
Allowance for credit losses | (7,764) | (4,932) | (1,126) | ||
Accounts receivable, net | 130,271 | 127,899 | $ 18,888 | ||
The rollforward in the allowance for credit losses were as follows: | |||||
Balance at the beginning of the year | 4,932 | $ 715 | 6,473 | ¥ 7,147 | |
Cumulative effect of adopting ASU 2016-13 | 597 | ||||
Disposal of subsidiary | (60) | ||||
Provisions for the year | 2,832 | 411 | 1,463 | 1,879 | |
Reversal of provisions from prior periods due to subsequent cash collection during the year | (983) | (1,415) | |||
Amounts written off during the year | (2,021) | (1,675) | |||
Balance at the end of the year | ¥ 7,764 | $ 1,126 | ¥ 4,932 | ¥ 6,473 |
ACCOUNTS RECEIVABLE - Additiona
ACCOUNTS RECEIVABLE - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Accounts receivable | Asset pledged as collateral without right | |||
ACCOUNTS RECEIVABLE | |||
Other assets | ¥ 11,166 | $ 1,619 | ¥ 10,056 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS - Schedule of Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
PREPAYMENTS AND OTHER CURRENT ASSETS | |||
Due from suppliers | ¥ 31,660 | $ 4,590 | ¥ 25,622 |
Loan receivables | 294,130 | 42,645 | 169,272 |
Advances to employees | 2,601 | 377 | 2,708 |
Dividend receivable | 1,643 | 238 | |
Deductible value-added tax | 44,268 | 6,418 | 45,031 |
Tax refund | 234 | 34 | 216 |
Due from hospital | 1,138 | 165 | 978 |
Deferred expenses | 200 | 29 | 1,868 |
Others | 26,767 | 3,882 | 26,177 |
Prepayments and other current assets, gross | 402,641 | 58,378 | 271,872 |
Allowance for credit losses | (17,290) | (2,507) | (14,853) |
Prepayments and other current assets | ¥ 385,351 | $ 55,871 | ¥ 257,019 |
PREPAYMENTS AND OTHER CURRENT_4
PREPAYMENTS AND OTHER CURRENT ASSETS - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
PREPAYMENTS AND OTHER CURRENT ASSETS | |||
Reserve for prepayments and other current assets | ¥ 17,290 | $ 2,507 | ¥ 14,853 |
Amounts due from subsidiaries | 169,453 | 24,568 | 145,692 |
Financing Receivable, Allowance for Credit Loss | 3,011 | 437 | 3,001 |
JYADK | |||
PREPAYMENTS AND OTHER CURRENT ASSETS | |||
Reserve for prepayments and other current assets | 9,017 | 1,307 | 9,015 |
Third Party | |||
PREPAYMENTS AND OTHER CURRENT ASSETS | |||
Amounts receivable from third parties | 115,677 | 16,772 | 14,565 |
Suppliers | |||
PREPAYMENTS AND OTHER CURRENT ASSETS | |||
Reserve for prepayments and other current assets | 0 | 0 | |
Guangdong Proton International Hospital Management Co Ltd, Xi’an JiangyuanAndike Ltd and Beijing Allcure Medical Information Technology Co Ltd | |||
PREPAYMENTS AND OTHER CURRENT ASSETS | |||
Amounts due from subsidiaries | ¥ 178,453 | $ 25,873 | ¥ 154,707 |
INVENTORIES (Details)
INVENTORIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
INVENTORIES | |||
Inventory, gross | ¥ 85,442 | $ 12,388 | ¥ 38,705 |
Less: inventory provision | (607) | (88) | (620) |
Total inventories | 84,835 | 12,300 | 38,085 |
Medicine | |||
INVENTORIES | |||
Inventory, gross | 9,896 | 1,435 | 10,259 |
Medical material | |||
INVENTORIES | |||
Inventory, gross | 72,971 | 10,580 | 27,754 |
Low-value Consumables | |||
INVENTORIES | |||
Inventory, gross | ¥ 2,575 | $ 373 | ¥ 692 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | |
PROPERTY, PLANT AND EQUIPMENT, NET | ||||
Property and equipment, gross | ¥ 3,583,503 | ¥ 3,386,050 | $ 519,559 | |
Less: accumulated depreciation | (308,210) | (224,877) | (44,686) | |
Impairment charges | ¥ (16,148) | $ (2,341) | ¥ (16,148) | |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Asset Impairment Charges | Asset Impairment Charges | Asset Impairment Charges | |
Property, plant and equipment after impairment | ¥ 3,259,145 | ¥ 3,145,025 | 472,532 | |
Buildings | ||||
PROPERTY, PLANT AND EQUIPMENT, NET | ||||
Property and equipment, gross | 782,560 | 775,708 | 113,461 | |
Medical equipment | ||||
PROPERTY, PLANT AND EQUIPMENT, NET | ||||
Property and equipment, gross | 532,165 | 484,653 | 77,157 | |
Electronic and office equipment | ||||
PROPERTY, PLANT AND EQUIPMENT, NET | ||||
Property and equipment, gross | 58,038 | 57,215 | 8,415 | |
Motor vehicles | ||||
PROPERTY, PLANT AND EQUIPMENT, NET | ||||
Property and equipment, gross | 3,717 | 3,718 | 537 | |
Leasehold improvement and building improvement | ||||
PROPERTY, PLANT AND EQUIPMENT, NET | ||||
Property and equipment, gross | 75,032 | 78,724 | 10,879 | |
Construction in Progress | ||||
PROPERTY, PLANT AND EQUIPMENT, NET | ||||
Property and equipment, gross | ¥ 2,131,991 | ¥ 1,986,032 | $ 309,110 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
PROPERTY, PLANT AND EQUIPMENT, NET | |||||
Depreciation of property, plant and equipment | ¥ 88,692 | $ 12,859 | ¥ 64,288 | ¥ 55,030 | |
Tangible asset impairment charges | 0 | 0 | 0 | ||
Impairment write off | 0 | 2,645 | 0 | ||
Equipment under operating lease, cost | 128,486 | 105,980 | $ 18,629 | ||
Equipment under operating lease, accumulated depreciation | 100,681 | 78,247 | 14,597 | ||
Property and equipment pledged as collateral for other borrowings | 412,683 | 361,806 | 59,833 | ||
Property and equipment pledged to secure bank and other borrowings | 1,754,217 | 1,709,761 | $ 254,338 | ||
Hospital | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | |||||
Impairment of intangible assets (Excluding Goodwill) | 0 | 0 | 0 | ||
Impairment write off | 0 | ¥ 0 | ¥ 0 | ||
Construction in Progress | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | |||||
Decrease in amount | ¥ 169,289 | $ 24,545 |
LEASE - Additional Information
LEASE - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
LEASE | |||||
Lease receivables | ¥ 2,595 | ¥ 2,637 | $ 376 | ||
Lease receivables pledged as collaterals for bank and other borrowings | 340 | 10,056 | 49 | ||
Derecognition of underlying assets | 47,409 | $ 6,874 | 58,058 | ||
Non-cancelable direct financing leases | 0 | 7,495 | |||
Failed sale-leaseback transactions as seller-lessee | |||||
Sale leaseback liability current | ¥ 203,366 | $ 29,485 | |||
Effective interest rate | 4.50% | 4.50% | |||
Interest expenses | ¥ 47,049 | 6,821 | 39,876 | ¥ 44,880 | |
Sale leaseback liability non current | 346,533 | $ 50,243 | |||
Short term lease cost | 326 | 47 | |||
Prepaid land lease amortization expenses | 407,486 | 59,080 | 416,896 | ||
Right-of-use asset amortization expenses | 9,627 | 1,396 | 9,621 | ¥ 9,513 | |
Secured debt, other | 395,973 | ¥ 405,117 | $ 57,411 | ||
Cost of revenue | |||||
Failed sale-leaseback transactions as seller-lessee | |||||
Short term lease cost | 17,391 | 2,521 | |||
General and administrative expense | |||||
Failed sale-leaseback transactions as seller-lessee | |||||
Short term lease cost | ¥ 20,522 | $ 2,976 | |||
Minimum | |||||
Failed sale-leaseback transactions as seller-lessee | |||||
Effective interest rate | 2.08% | 2.08% | |||
Maximum | |||||
Failed sale-leaseback transactions as seller-lessee | |||||
Effective interest rate | 11.68% | 11.68% |
LEASE - Lease receivables (Deta
LEASE - Lease receivables (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current | |||
Account receivable - Operating lease | ¥ 93,883 | $ 13,612 | ¥ 13,318 |
Account receivable - Sales-type lease | 906 | 131 | 1,010 |
Net investment in direct financing leases, current portion | 2,699 | ||
Non-current | |||
Net investment in direct financing leases, non-current portion | 4,796 | ||
Total | ¥ 94,789 | $ 13,743 | ¥ 21,823 |
LEASE - Lease income (Details)
LEASE - Lease income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | |
Sales-type leases | ||||
LEASE | ||||
Interest income on net investment in the lease | ¥ 3,326 | $ 482 | ¥ 5,210 | $ 818 |
Including: Income relating to variable lease payments not included in the measurement of the net investment in a lease | 3,326 | 482 | 5,210 | 818 |
Direct financing leases | ||||
LEASE | ||||
Interest income on net investment in the lease | 414 | 60 | 1,361 | 214 |
Operating leases | ||||
LEASE | ||||
Lease income relating to lease payments | 18,226 | 2,643 | 35,913 | 5,635 |
Including: Income relating to variable lease payments not included in the measurement of lease receivable | ¥ 18,226 | $ 2,643 | ¥ 33,793 | $ 5,303 |
LEASE - Net investment in direc
LEASE - Net investment in direct financing leases (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
NET INVESTMENT IN DIRECT FINANCING LEASES | ||
Minimum lease payments to be received | ¥ 8,384 | |
Unearned income | (889) | |
Net investment in direct financing leases | 7,495 | |
Current | 2,699 | |
Non-current | 4,796 | |
Total | ¥ 0 | ¥ 7,495 |
LEASE - Schedule of non-cancell
LEASE - Schedule of non-cancellable operating lease payment (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
LEASE | ||
2023 | ¥ 1,796 | $ 260 |
2024 | 1,796 | 260 |
2025 | 96 | 14 |
2026 | 96 | 14 |
2027 | 96 | 14 |
Above 5 years | ¥ 16 | $ 2 |
LEASE - Other operating leases
LEASE - Other operating leases (Details) - 12 months ended Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
LEASE | ||
Operating lease cost | ¥ 37,587 | $ 5,450 |
Short term lease cost | 326 | 47 |
Total | ¥ 37,913 | $ 5,497 |
LEASE - Other information (Deta
LEASE - Other information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | |
LEASE | ||
Operating cash flows from operating leases | ¥ 12,887 | $ 1,868 |
ROU assets obtained in exchange for operating lease liabilities | ¥ 105,200 | $ 15,253 |
Weighted-average remaining lease terms (in years) | 4 years | 4 years |
Weighted-average discount rate | 5.75% | 5.75% |
LEASE - Schedule of future leas
LEASE - Schedule of future lease payments (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | ¥ 48,512 | $ 7,034 |
2024 | 23,719 | 3,439 |
2025 | 23,702 | 3,436 |
2026 | 23,302 | 3,378 |
2027 | 21,723 | 3,150 |
Thereafter | 189,280 | 27,443 |
Total future lease payments | 330,238 | 47,880 |
Less: Imputed interest | 94,369 | 13,683 |
Total lease liability balance | ¥ 235,869 | $ 34,197 |
LEASE - Schedule of Prepaid Lan
LEASE - Schedule of Prepaid Land Lease Payments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
LEASE | |||
Land use rights | ¥ 464,209 | $ 67,304 | ¥ 463,992 |
Less: accumulated amortization | (56,723) | (8,224) | (47,096) |
Net carrying value | ¥ 407,486 | $ 59,080 | ¥ 416,896 |
LEASE - Schedule of Estimated A
LEASE - Schedule of Estimated Annual Amortization Expenses (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
LEASE | ||
2023 | ¥ 9,627 | $ 1,396 |
2024 | 9,627 | 1,396 |
2025 | 9,627 | 1,396 |
2026 | 9,627 | 1,396 |
2027 | ¥ 9,627 | $ 1,396 |
GOODWILL - Carrying amount (Det
GOODWILL - Carrying amount (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) | Dec. 31, 2018 CNY (¥) | |
Goodwill [Roll Forward] | ||||||
Goodwill, Beginning Balance | ¥ 581,877 | $ 84,364 | ¥ 213,656 | ¥ 210,443 | ||
Addition | 0 | 0 | 368,221 | 3,213 | ¥ 45,272 | ¥ 165,171 |
Disposal | (6,450) | (935) | ||||
Impairment | 0 | 0 | 0 | 0 | ||
Goodwill, Ending Balance | ¥ 575,427 | $ 83,429 | ¥ 581,877 | ¥ 213,656 | ¥ 210,443 |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) | Dec. 31, 2018 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 31, 2021 CNY (¥) | Jan. 31, 2021 USD ($) | |
GOODWILL | ||||||||||
Goodwill, Acquired during period | ¥ 0 | $ 0 | ¥ 368,221 | ¥ 3,213 | ¥ 45,272 | ¥ 165,171 | ||||
Goodwill | 575,427 | 581,877 | 213,656 | ¥ 210,443 | $ 83,429 | $ 84,364 | ¥ 368,221 | $ 57,782 | ||
Goodwill impairment charges | 0 | 0 | 0 | ¥ 0 | ||||||
Decrease of goodwill from disposal | 6,450 | $ 935 | ||||||||
GFMH, CMCC, SJYH, BPMC | ||||||||||
GOODWILL | ||||||||||
Goodwill | ¥ 575,427 | ¥ 581,877 | $ 83,429 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of Acquired Intangible Assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Intangible assets, net: | ||||
Intangible assets, net, beginning balance | ¥ 657,837 | ¥ 522,821 | ||
Acquisition of subsidiaries | 133,376 | |||
Addition of software | 3,334 | 31,811 | ||
Decrease from cooperation termination with a cooperative hospital | 272,910 | $ 39,568 | ||
Amortization expenses | (34,495) | (5,001) | (30,171) | ¥ (15,756) |
Intangible assets, cost | 486,841 | |||
Less: accumulated amortization | (132,112) | |||
Less: intangible asset impairment | (963) | |||
Intangible assets, net, ending balance | 353,766 | 51,291 | 657,837 | 522,821 |
Customer Relationships Intangibles [Member] | ||||
Intangible assets, net: | ||||
Intangible assets, cost | 32,449 | |||
Less: accumulated amortization | (31,486) | |||
Less: intangible asset impairment | (963) | |||
Operating Lease Intangibles [Member] | ||||
Intangible assets, net: | ||||
Intangible assets, cost | 418 | |||
Less: accumulated amortization | (418) | |||
Operating License Intangibles [Member] | ||||
Intangible assets, net: | ||||
Intangible assets, net, beginning balance | 490,296 | 502,968 | ||
Decrease from cooperation termination with a cooperative hospital | 272,910 | |||
Amortization expenses | (12,672) | (12,672) | ||
Intangible assets, cost | 253,440 | |||
Less: accumulated amortization | (48,726) | |||
Intangible assets, net, ending balance | 204,714 | 29,681 | 490,296 | 502,968 |
Favorable Lease Intangibles | ||||
Intangible assets, net: | ||||
Intangible assets, net, beginning balance | 16,256 | 17,821 | ||
Amortization expenses | (1,564) | (1,565) | ||
Intangible assets, cost | 21,010 | |||
Less: accumulated amortization | (6,318) | |||
Intangible assets, net, ending balance | 14,692 | 2,130 | 16,256 | 17,821 |
Technology. | ||||
Intangible assets, net: | ||||
Intangible assets, net, beginning balance | 118,971 | |||
Acquisition of subsidiaries | 132,190 | |||
Amortization expenses | (13,139) | (13,219) | ||
Intangible assets, cost | 132,190 | |||
Less: accumulated amortization | (26,358) | |||
Intangible assets, net, ending balance | 105,832 | 15,344 | 118,971 | |
Others | ||||
Intangible assets, net: | ||||
Intangible assets, net, beginning balance | 32,314 | 2,032 | ||
Acquisition of subsidiaries | 1,186 | |||
Addition of software | 3,334 | 31,811 | ||
Amortization expenses | (7,120) | (2,715) | ||
Intangible assets, cost | 47,334 | |||
Less: accumulated amortization | (18,806) | |||
Intangible assets, net, ending balance | ¥ 28,528 | $ 4,136 | ¥ 32,314 | ¥ 2,032 |
INTANGIBLE ASSETS, NET - Sche_2
INTANGIBLE ASSETS, NET - Schedule of Estimated Annual Amortization Expenses (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
INTANGIBLE ASSETS, NET | ||
2023 | ¥ 35,070 | $ 5,085 |
2024 | 35,020 | 5,077 |
2025 | 34,427 | 4,991 |
2026 | 33,329 | 4,832 |
2027 | ¥ 215,920 | $ 31,306 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
INTANGIBLE ASSETS, NET | ||||
Amortization expenses | ¥ 34,495 | $ 5,001 | ¥ 30,171 | ¥ 15,756 |
Acquired finite lived intangible assets | ||||
INTANGIBLE ASSETS, NET | ||||
Amortization expenses | 34,495 | $ 5,001 | 30,171 | 15,756 |
Impairment loss on intangible assets | ¥ 0 | ¥ 0 | ¥ 0 |
DEPOSITS FOR NON-CURRENT ASSE_3
DEPOSITS FOR NON-CURRENT ASSETS - Schedule of Deposits for Non-Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
DEPOSITS FOR NON-CURRENT ASSETS | |||
Deposits for purchases of property, plant and equipment | ¥ 8,932 | $ 1,295 | ¥ 224,866 |
Deposits | ¥ 8,932 | $ 1,295 | ¥ 224,866 |
DEPOSITS FOR NON-CURRENT ASSE_4
DEPOSITS FOR NON-CURRENT ASSETS - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2020 CNY (¥) | |
DEPOSITS FOR NON-CURRENT ASSETS | |||||
Total non-current assets | ¥ 5,645,476 | ¥ 5,245,134 | $ 760,472 | ||
Capital addition purchase commitments | |||||
DEPOSITS FOR NON-CURRENT ASSETS | |||||
Commitments to purchase certain medical equipment | 257,165 | 220,972 | $ 32,038 | ||
Impairment loss on deposit assets | 0 | 0 | ¥ 8,500 | ||
Write off for gross amount of deposits and allowance | $ 0 | 8,500 | |||
Total non-current assets | 0 | 0 | |||
Principal amount | ¥ 0 | ¥ 0 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
LONG-TERM INVESTMENTS | |||
Equity investments without readily determinable fair value | ¥ 51,524 | $ 7,470 | ¥ 51,524 |
Equity method investments | 336,254 | 48,752 | 277,056 |
Available-for-sale debt securities | 50,096 | 7,263 | 62,045 |
Total | ¥ 437,874 | $ 63,485 | ¥ 390,625 |
LONG-TERM INVESTMENTS - Equity
LONG-TERM INVESTMENTS - Equity investments without readily determinable fair value (Details) ¥ in Thousands | 12 Months Ended | |||||
May 11, 2020 | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Mar. 31, 2021 | Dec. 31, 2018 | Dec. 31, 2015 | |
LONG-TERM INVESTMENTS | ||||||
Equity investments with readily determinable fair value | ¥ 51,524 | ¥ 51,524 | ||||
Concord Healthcare Singapore Pte. Ltd | ||||||
LONG-TERM INVESTMENTS | ||||||
Percentage of equity interest sold | 8.73 | 10 | ||||
Equity investments with readily determinable fair value | ¥ 22,925 | ¥ 22,925 | ||||
Impairment | ¥ 0 | ¥ 0 | ||||
Percentage of interest held after disposal | 10% | 8.73% | ||||
Legion Healthcare Partners LLC | ||||||
LONG-TERM INVESTMENTS | ||||||
Percentage of equity interest sold | 5.83 | 5.83 | 5.83 | |||
Equity investments with readily determinable fair value | ¥ 6,439 | ¥ 6,439 | ||||
Impairment | ¥ 0 | ¥ 0 | ||||
Allcure Information | ||||||
LONG-TERM INVESTMENTS | ||||||
Percentage of equity interest sold | 9.6 | 9.6 | 9.6 | 20 | ||
Equity investments with readily determinable fair value | ¥ 22,160 | ¥ 22,160 | ||||
Impairment | ¥ 0 | ¥ 0 |
LONG-TERM INVESTMENTS - Equit_2
LONG-TERM INVESTMENTS - Equity method investments (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
LONG-TERM INVESTMENTS | |||||||
Equity investments with readily determinable fair value | ¥ 51,524 | ¥ 51,524 | |||||
Xi'an JiangyuanAndike Ltd. ("JYADK") | |||||||
LONG-TERM INVESTMENTS | |||||||
Equity interest in equity method investment | 29.70% | 29.70% | |||||
Equity investments with readily determinable fair value | ¥ 10,496 | ¥ 12,468 | |||||
Suzhou Shengshan Huiying Venture Capital Investment LLP. ("Suzhou Shengshan") | |||||||
LONG-TERM INVESTMENTS | |||||||
Equity interest in equity method investment | 5.15% | 5.15% | 5.15% | 5.15% | 5.41% | 8.13% | |
Equity investments with readily determinable fair value | ¥ 12,939 | ¥ 11,051 | |||||
Zhejiang Marine Leasing Ltd | |||||||
LONG-TERM INVESTMENTS | |||||||
Equity interest in equity method investment | 20% | 20% | |||||
Equity investments with readily determinable fair value | ¥ 179,231 | ¥ 167,044 | |||||
Guangdong Hengjian Proton Medical Industry Co., Ltd ("Guangdong Hengjian") | |||||||
LONG-TERM INVESTMENTS | |||||||
Equity interest in equity method investment | 14.20% | 14.20% | |||||
Equity investments with readily determinable fair value | ¥ 86,315 | ¥ 86,493 | |||||
Shanghai Xinhe Enterprise Management Center (Limited Partnership) ("Shanghai Xinhe") | |||||||
LONG-TERM INVESTMENTS | |||||||
Equity interest in equity method investment | 99.99% | 99% | 0% | ||||
Equity investments with readily determinable fair value | ¥ 45,005 | ¥ 0 | |||||
Shanghai Changshengshu Management Co. LTD("Shanghai Changshengshu") | |||||||
LONG-TERM INVESTMENTS | |||||||
Equity interest in equity method investment | 20% | 0% | |||||
Equity investments with readily determinable fair value | ¥ 1,968 | ¥ 0 | |||||
Guangzhou Yicheng Biological Immune Technology Co. LTD("Guangzhou Yicheng") | |||||||
LONG-TERM INVESTMENTS | |||||||
Equity interest in equity method investment | 30% | 0% | |||||
Equity investments with readily determinable fair value | ¥ 300 | ¥ 0 | |||||
Equity interest owned by the group | |||||||
LONG-TERM INVESTMENTS | |||||||
Equity investments with readily determinable fair value | ¥ 336,254 | ¥ 277,056 |
LONG-TERM INVESTMENTS - Availab
LONG-TERM INVESTMENTS - Available-for-sale debt securities (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
LONG-TERM INVESTMENTS | |||
Available-for-sale debt securities - Fair Value | ¥ 50,096 | $ 7,263 | ¥ 62,045 |
Private equity funds | |||
LONG-TERM INVESTMENTS | |||
Available-for-sale debt securities - Fair Value | ¥ 50,096 | ||
Available-for-sale debt securities - Redemption frequency | Annually | ||
Minimum | Private equity funds | |||
LONG-TERM INVESTMENTS | |||
Available-for-sale debt securities - Redemption Notice Period | 5 days | ||
Maximum | Private equity funds | |||
LONG-TERM INVESTMENTS | |||
Available-for-sale debt securities - Redemption Notice Period | 9 days |
LONG-TERM INVESTMENTS - Additio
LONG-TERM INVESTMENTS - Additional information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Feb. 28, 2019 | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | May 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) director | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Dec. 31, 2019 CNY (¥) | Dec. 31, 2018 | Dec. 31, 2017 USD ($) | |
LONG-TERM INVESTMENTS | ||||||||||||
Disposal gain | ¥ 0 | ¥ 7,837 | ||||||||||
Long-term investments pledged to secure other borrowings | ¥ 179,231 | ¥ 167,044 | ¥ 166,870 | $ 26,986 | ||||||||
Investment redeemed | ¥ 11,949 | $ 1,732 | ¥ 19,978 | |||||||||
SH MZJH | ||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||
Capital contributed | ¥ 34,540 | |||||||||||
Suzhou Shengshan | ||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||
Equity interest in equity method investment | 5.15% | 5.15% | 5.15% | 5.15% | 5.15% | 5.41% | 8.13% | |||||
Capital contributed | $ | $ 10,000 | |||||||||||
Shanghai Xinhe | ||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||
Equity interest in equity method investment | 99% | 99.99% | 0% | 99.99% | ||||||||
Percentage of shares as consideration | 2.05% | 2.05% | ||||||||||
Carrying value of shares issued | ¥ 45,115 | |||||||||||
Shanghai Changshengshu | SH MZJH | ||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||
Equity interest in equity method investment | 20% | |||||||||||
Consideration amount | ¥ 2,000 | |||||||||||
Guangzhou Yicheng | ||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||
Equity interest in equity method investment | 30% | 0% | 30% | |||||||||
Guangzhou Yicheng | GCMTIC | ||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||
Equity interest in equity method investment | 30% | 30% | ||||||||||
Consideration amount | ¥ 300 | |||||||||||
China Medical Services Holdings Limited ("CMS Holdings") | Zhejiang Marine | ||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||
Equity interest in equity method investment | 20% | |||||||||||
Equity method investment legal interest percentage | 20% | |||||||||||
Guangdong Hengjian | Aohua Technology | ||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||
Equity interest in equity method investment | 14.20% | 14.20% | 14.20% | |||||||||
Consideration amount | ¥ 86,649 | ¥ 86,649 | ||||||||||
Number of directors entitled to delegate in the board | director | 2 | |||||||||||
Number of total directors | director | 5 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
OTHER NON-CURRENT ASSETS | |||
Deposit-long-term | ¥ 6,249 | $ 906 | ¥ 6,232 |
Advance to hospitals-noncurrent | 1,002 | 145 | 1,104 |
Others | 7,842 | 1,137 | 13,440 |
Other non-current assets | ¥ 15,093 | $ 2,188 | ¥ 20,776 |
OTHER NON-CURRENT ASSETS - Addi
OTHER NON-CURRENT ASSETS - Additional information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
OTHER NON-CURRENT ASSETS | |||
Deposit - long term, impairment loss | ¥ 19 | $ (2) | |
Advance to hospitals-non current, impairment loss | 102 | 15 | ¥ 0 |
Other | ¥ 797 | $ 116 | ¥ 361 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES - Schedule of Accrued Expenses and Other Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
ACCRUED EXPENSES AND OTHER LIABILITIES | |||
Accrued expenses | ¥ 75,010 | $ 10,875 | ¥ 121,149 |
Salaries and welfare payable | 73,803 | 10,700 | 42,628 |
Business and other taxes payable | 27,961 | 4,054 | 20,954 |
Contractual liabilities | 100,802 | 14,615 | 81,032 |
Other payables | 142,305 | 20,635 | 116,414 |
Total | ¥ 419,881 | $ 60,879 | ¥ 382,177 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Aug. 10, 2015 | Jan. 27, 2015 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | |
SHAREHOLDERS' EQUITY | ||||||||
Consideration to repurchase shares | $ 4,542 | $ 3,111 | ||||||
Shares repurchased | 967,408 | 614,033 | ||||||
Amount of dividend paid | $ 0 | $ 0 | $ 0 | |||||
Ordinary shares | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Shares repurchased | 2,902,224 | 1,842,099 | ||||||
ADS | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Consideration to repurchase shares | $ 20,000 | |||||||
Shares repurchased | 0 | 0 | 0 | |||||
ADS | Maximum | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Price per share | $ 7.99 | |||||||
Common Class A | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Conversion of stock, shares converted | 45,787,948 | 45,787,948 | ||||||
Ordinary shares, shares outstanding | 84,463,737 | 84,463,737 | ||||||
Common Class B | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Conversion of stock, shares issued | 45,787,948 | |||||||
Ordinary shares, shares outstanding | 45,787,948 | 45,787,948 |
BANK AND OTHER BORROWINGS (Deta
BANK AND OTHER BORROWINGS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
BANK AND OTHER BORROWINGS | |||
Total bank and other borrowings | ¥ 2,984,010 | $ 432,641 | ¥ 2,477,948 |
Short-term | 168,601 | 24,445 | 136,510 |
Long-term, current portion | 343,982 | 49,873 | 162,842 |
Total | 512,583 | 74,318 | 299,352 |
Long-term, non-current portion | ¥ 2,471,427 | $ 358,323 | ¥ 2,178,596 |
BANK AND OTHER BORROWINGS (Sche
BANK AND OTHER BORROWINGS (Schedule of Maturities of Long-Term and Other Debt) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 07, 2021 CNY (¥) | Aug. 31, 2021 | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | |
Derivative liability | |||||
Proceeds from convertible note | ¥ 20,000 | ¥ 20,000 | |||
Convertible debt term | 2 years | ||||
Conversion ratio | 4.75 | ||||
Long-term bank and other borrowings | |||||
Derivative liability | |||||
Within one year | ¥ 343,982 | $ 49,873 | |||
Between one and two years | 542,952 | 78,721 | |||
Between two and three years | 380,079 | 55,106 | |||
Between three and four years | 358,615 | 51,994 | |||
Above four years | 1,189,781 | 172,502 | |||
Total | ¥ 2,815,409 | $ 408,196 |
BANK AND OTHER BORROWINGS - Add
BANK AND OTHER BORROWINGS - Additional information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Derivative liability | ||||
Lease receivables | ¥ 340 | $ 49 | ¥ 10,056 | |
Long-term investments pledged to secure other borrowings | ¥ 179,231 | $ 26,986 | ¥ 167,044 | ¥ 166,870 |
Short-term bank borrowings, weighted average interest rate | 6.60% | 6.60% | 5.86% | |
Bank loans | ¥ 156,555 | $ 22,698 | ¥ 126,362 | |
Other borrowings | 2,827,455 | 409,943 | 2,351,586 | |
Long term debt | ||||
Derivative liability | ||||
Property and equipment pledged as collateral | 412,683 | 59,833 | 361,806 | |
Land | ||||
Derivative liability | ||||
Property and equipment pledged as collateral | 395,973 | 57,411 | 405,117 | |
Construction in Progress | ||||
Derivative liability | ||||
Property and equipment pledged as collateral | 1,754,217 | 254,338 | 1,709,761 | |
Long-term investments pledged to secure other borrowings | 179,231 | 25,986 | 167,044 | |
Asset pledged as collateral without right | Accounts receivable | ||||
Derivative liability | ||||
Other assets | ¥ 11,166 | $ 1,619 | ¥ 10,056 | |
Long-term bank and other borrowings | ||||
Derivative liability | ||||
Long-term bank and other borrowings, weighted average interest rate | 6.48% | 6.48% | 6.31% | |
Short term bank credit lines | ||||
Derivative liability | ||||
Unutilized bank credit lines | ¥ 52,101 | $ 7,554 | ||
Long-term bank credits lines | ||||
Derivative liability | ||||
Unutilized bank credit lines | ¥ 0 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) - 12 months ended Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
RESTRICTED NET ASSETS | ||
Percentage of after-tax profit to general reserve | 10% | |
Amount of net assets restricted | ¥ 3,991,644 | $ 578,734 |
Foreign tax authority | ||
RESTRICTED NET ASSETS | ||
Percentage of after-tax profit to general reserve | 10% | |
Percentage of general reserve registered capital | 50% | |
Domestic tax authority | ||
RESTRICTED NET ASSETS | ||
Percentage of after-tax profit to general reserve | 10% | |
Percentage of general reserve registered capital | 50% |
TAXATION (Details)
TAXATION (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2019 | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
TAXATION | |||||||||
Applicable tax rates | 25% | 25% | 25% | 25% | 25% | 25% | |||
Current income tax for federal and state for US Proton | ¥ 196 | $ 28 | ¥ 362 | ¥ 1,672 | |||||
Withholding tax rate | 10 | 10 | |||||||
Net operating loss carryforwards | ¥ 839,896 | $ 121,772 | |||||||
Unrecognized tax benefits | 67,172 | 81,901 | 65,093 | 9,739 | $ 11,875 | ||||
Unrecognized tax benefits, net deferred tax asset related to tax loss carryforwards | 19,962 | 24,213 | 2,894 | ||||||
Unrecognized tax benefits which affect the annual effective tax rate | 39,412 | 48,226 | 5,714 | ||||||
Uncertain tax position, impact on taxes | 7,254 | $ 1,052 | 12,918 | ¥ 465 | |||||
Accrued interest and penalties | ¥ 13,091 | ¥ 17,660 | $ 1,898 | ||||||
Business tax rate | 5 | 5 | |||||||
Movable property | |||||||||
TAXATION | |||||||||
Value added tax | 3% | 3% | |||||||
Property leasing arrangement | |||||||||
TAXATION | |||||||||
Value added tax | 13% | 17% | 17% | ||||||
Technical service | |||||||||
TAXATION | |||||||||
Value added tax | 6% | 6% | |||||||
United States | |||||||||
TAXATION | |||||||||
Applicable tax rates | 21% | 21% | 21% | 21% | 21% | 21% | |||
Singapore | |||||||||
TAXATION | |||||||||
Income tax profits | $ | $ 0 | $ 0 | $ 0 | ||||||
Hong Kong | |||||||||
TAXATION | |||||||||
Income tax profits | ¥ | ¥ 0 |
TAXATION - Loss before income t
TAXATION - Loss before income taxes consists (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
TAXATION | ||||
Non - PRC | ¥ 45,211 | $ 6,555 | ¥ 5,451 | ¥ (142,750) |
PRC | (885,107) | (128,327) | (534,688) | (298,903) |
Loss before income tax | ¥ (839,896) | $ (121,772) | ¥ (529,237) | ¥ (441,653) |
TAXATION - Current and deferred
TAXATION - Current and deferred components of the income tax expense (benefit) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
TAXATION | ||||
Current tax expense (benefit) | ¥ (8,765) | $ (1,271) | ¥ 4,115 | ¥ (24,047) |
Deferred tax benefit | (62,141) | (9,009) | (10,680) | (13,577) |
Income tax expense | ¥ (70,906) | $ (10,280) | ¥ (6,565) | ¥ (37,624) |
TAXATION - Reconciliation of th
TAXATION - Reconciliation of the differences between the statutory tax rate and the effective tax rate for EIT (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
TAXATION | ||||
Loss before income taxes | ¥ (839,896) | $ (121,772) | ¥ (529,237) | ¥ (441,653) |
Income tax computed at the tax rate of 25% | (209,974) | (30,443) | (132,309) | (110,413) |
Effect of different tax rates in different jurisdictions | (20,584) | (2,983) | 2,798 | 10,715 |
Non-deductible expenses | 21,543 | 3,123 | (10,502) | 74,225 |
Non-taxable income | (55,705) | (8,076) | 9,183 | (78,447) |
Statutory income (expense) | 25,419 | 3,685 | 3,994 | (2,544) |
Interest and penalty | (7,254) | (1,052) | (12,918) | (465) |
Deferred tax expense | 7,056 | 1,023 | (13,953) | (2,314) |
Changes of valuation allowance | 168,102 | 24,372 | 142,806 | 71,545 |
Withholding tax | 491 | 71 | 4,336 | 74 |
Income tax expense | ¥ (70,906) | $ (10,280) | ¥ (6,565) | ¥ (37,624) |
TAXATION - Reconciliation of _2
TAXATION - Reconciliation of the differences between the statutory tax rate and the effective tax rate for EIT (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
TAXATION | |||
Statutory income tax rate | 25% | 25% | 25% |
TAXATION - Components of deferr
TAXATION - Components of deferred taxes (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Deferred tax asset | |||
Net operating loss | ¥ 357,483 | $ 51,830 | ¥ 216,902 |
Foreign exchange loss | 1,330 | 193 | 7,679 |
Depreciation and amortization | 22,535 | 3,267 | 10,479 |
Property, plant and equipment impairment | 6,997 | 1,014 | 6,997 |
Deposits for non-current assets | 18,475 | 2,679 | 18,475 |
Allowance for net investment in financing lease | 5,137 | 745 | 5,137 |
Allowance for doubtful accounts | 14,746 | 2,138 | 14,013 |
Lease liabilities | 58,901 | 8,540 | 56,673 |
Other long-term assets | 104,912 | 15,211 | 92,261 |
Equity investment | 7,553 | 1,095 | 7,574 |
Others | 13,728 | 1,990 | 7,971 |
Total deferred tax assets | 611,797 | 88,702 | 444,161 |
less: Valuation allowance | (565,022) | (81,920) | (396,919) |
Net deferred tax assets | 46,775 | 6,782 | 47,242 |
Deferred tax liabilities | |||
Equity investment | (1,170) | (170) | (287) |
Property, plant and equipment | (1,682) | (244) | (1,428) |
Disposal of Beijing Century Friendship | (3,126) | (453) | (3,126) |
Intangible assets | (81,336) | (11,793) | (156,189) |
Right-of-use assets | (46,873) | (6,796) | (48,259) |
Capitalized interest | (19,179) | (2,781) | (19,179) |
Others | (5,986) | (867) | (3,198) |
Total deferred tax liabilities | (159,352) | (23,104) | (231,666) |
Deferred tax assets, net | 0 | 0 | 0 |
Deferred tax liabilities, net | ¥ (112,577) | $ (16,322) | ¥ (184,424) |
TAXATION - Movement of valuatio
TAXATION - Movement of valuation allowance (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
TAXATION | |||
Balance at the beginning of year | ¥ (396,919) | $ (57,548) | ¥ (257,579) |
Change of valuation allowance in the current year | (168,103) | (24,372) | (139,340) |
Balance at the end of year | ¥ (565,022) | $ (81,920) | ¥ (396,919) |
TAXATION - Reconciliation of _3
TAXATION - Reconciliation of the beginning and ending amount of unrecognized tax benefits excluding the penalty and interest (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
TAXATION | |||
Balance at the beginning of year | ¥ 81,901 | $ 11,875 | ¥ 65,093 |
Changes based on tax positions related to the current year | 322 | 47 | 19,766 |
Additions related to prior year tax position | 1,072 | 155 | 8,692 |
Decreases related to prior year tax position | (6,617) | (959) | (7,580) |
Decrease related to disposal of CMSI | (7,861) | (1,140) | |
Decreases relating to expiration of applicable statute of limitation | (3,572) | (518) | (3,322) |
Foreign currency translation | 1,927 | 279 | (748) |
Balance at the end of year | ¥ 67,172 | $ 9,739 | ¥ 81,901 |
Derivative liability (Details)
Derivative liability (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | |
Derivative liability | |||||||
Debt instrument term | 2 years | ||||||
Basic interest rate | 4.50% | 4.50% | |||||
Additional interest rate | 5.50% | 5.50% | |||||
Change in fair value of derivative liability | ¥ 1,015 | $ 147 | ¥ (39) | ¥ 0 | |||
Net proceeds from issuance of debt | 422,765 | 61,295 | 386,635 | ¥ 857,110 | |||
Amortization of debt | ¥ 5,824 | $ 914 | |||||
Amortization period | 2 years | 2 years | |||||
Great Lion Debt | |||||||
Derivative liability | |||||||
Principal amount | ¥ 31,863 | $ 5,000 | |||||
Basic interest rate | 11% | 11% | |||||
Fair value of embedded derivative | ¥ 1,793 | 1,969 | $ 260 | ||||
Net proceeds from issuance of debt | 34,486 | $ 5,000 | |||||
Debt instrument, Carrying amount | 89,726 | ||||||
Vantage Debt | |||||||
Derivative liability | |||||||
Principal amount | ¥ 63,726 | $ 10,000 | |||||
Basic interest rate | 22% | 22% | |||||
Fair value of embedded derivative | 3,497 | ¥ 3,894 | 507 | ||||
Net proceeds from issuance of debt | 68,972 | $ 10,000 | |||||
Debt instrument, Carrying amount | ¥ 98,168 | $ 14,233 |
Other long-term liabilities (De
Other long-term liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Other long-term liabilities | |||
Accrued unrecognized tax benefits & surcharge | ¥ 60,299 | $ 8,743 | ¥ 75,347 |
Lease deposit received from hospital | 2,000 | 290 | 2,000 |
Convertible Note | 20,000 | 2,900 | 20,000 |
Others | 1,785 | 259 | 1,254 |
Other long-term liabilities | ¥ 84,084 | $ 12,192 | ¥ 98,601 |
Other long-term liabilities - C
Other long-term liabilities - Convertible Note (Details) - CNY (¥) ¥ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 07, 2021 | Aug. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | |
Other long-term liabilities | ||||
Proceeds from convertible note | ¥ 20 | ¥ 20 | ||
Basic interest rate | 4.50% | |||
Debt instrument term | 2 years | |||
Unpaid interest | 4.75 | |||
If holder choose to convert in first three years | ||||
Other long-term liabilities | ||||
Basic interest rate | 2.50% | |||
Debt instrument term | 3 years | |||
If holder choose to convert In fourth or fifth year | ||||
Other long-term liabilities | ||||
Proceeds from convertible note | ¥ 20 | |||
Percentage of proceeds from convertible note | 80% | |||
Convertible debt | ||||
Other long-term liabilities | ||||
Principal amount | ¥ 20 | |||
Basic interest rate | 4.75% | |||
Debt instrument term | 5 years |
SHARE-BASED AWARDS (Narrative)
SHARE-BASED AWARDS (Narrative) (Details) $ / shares in Units, ¥ in Thousands | 12 Months Ended | ||||
Feb. 18, 2014 $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | Dec. 31, 2022 USD ($) shares | |
SHARE-BASED AWARDS | |||||
Ordinary shares that may be issued | 13,218,000 | 13,218,000 | |||
Options granted | 3,479,604 | ||||
Options granted, exercise price | $ / shares | $ 2.04 | ||||
Unrecognized share-based compensation cost | ¥ | ¥ 0 | ||||
Shares exercised | 0 | 0 | 0 | ||
Restricted shares [Member] | |||||
SHARE-BASED AWARDS | |||||
Unrecognized share-based compensation cost | $ | $ 0 | ||||
Shares vesting description | The Restricted Shares have a service condition where the grantees can remove restriction on 25% of total number of restricted shares on annual basis over a four-year period ending the fourth anniversary of the grant date. |
SHARE-BASED AWARDS (Schedule of
SHARE-BASED AWARDS (Schedule of Assumptions Used) (Details) | Feb. 18, 2014 |
SHARE-BASED AWARDS | |
Risk-free interest rate | 2.33% |
Dividend yield | 5% |
Exercise multiple | 2.50% |
Expected volatility range | 39.03% |
SHARE-BASED AWARDS (Schedule _2
SHARE-BASED AWARDS (Schedule of Stock Options) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | ||
Outstanding, beginning balance | 2,657,946 | |
Lapsed | (2,657,946) | |
Outstanding, ending balance | 0 | 2,657,946 |
Exercisable | 0 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance | $ 2.04 | |
Lapsed | 2.04 | |
Outstanding, ending balance | 0 | $ 2.04 |
Exercisable | 0 | |
Weighted Average Grant-date Fair Value | ||
Outstanding, beginning balance | 0.65 | |
Lapsed | 0.65 | |
Outstanding, ending balance | 0 | $ 0.65 |
Exercisable | $ 0 | |
Weighted Average Remaining Contractual Term (Years) | ||
Outstanding | 0 years | 1 year 1 month 17 days |
Lapsed | 0 years | |
Exercisable | 0 years | |
Aggregate Intrinsic Value | ||
Outstanding at Beginning of the period | $ 0 | |
Exercisable | 0 | |
Outstanding at Ending of the period | $ 0 | $ 0 |
SHARE-BASED AWARDS (Summary of
SHARE-BASED AWARDS (Summary of Restricted Shares) (Details) - $ / shares | 12 Months Ended | |||||||
Oct. 02, 2018 | Sep. 13, 2017 | Aug. 08, 2017 | Aug. 07, 2017 | Aug. 01, 2014 | Jul. 01, 2014 | Feb. 18, 2014 | Dec. 31, 2022 | |
SHARE-BASED AWARDS | ||||||||
Numbers of shares, Forfeited | (2,657,946) | |||||||
Restricted shares [Member] | ||||||||
SHARE-BASED AWARDS | ||||||||
Numbers of shares, Beginning balance | 10,898,289 | |||||||
Numbers of shares, Granted | 5,992,605 | 45,000 | 3,319,200 | 1,453,950 | 69,564 | 21,132 | 1,370,250 | |
Numbers of shares, Forfeited | (112,500) | |||||||
Numbers of shares, Ending balance | 10,785,789 | |||||||
Numbers of shares, Exercisable | 10,785,789 | |||||||
Weighted average grant date fair value, Beginning balance | $ 1.31 | |||||||
Weighted average grant date fair value, Ending balance | 1.31 | |||||||
Weighted average grant date fair value, Exercisable | $ 1.31 | |||||||
Restricted shares [Member] | February 18, 2014 [Member] | ||||||||
SHARE-BASED AWARDS | ||||||||
Numbers of shares, Granted | 1,370,250 | |||||||
Weighted average grant date fair value, Granted | $ 1.93 | |||||||
Restricted shares [Member] | July 1, 2014 [Member] | ||||||||
SHARE-BASED AWARDS | ||||||||
Numbers of shares, Granted | 21,132 | |||||||
Weighted average grant date fair value, Granted | $ 2.35 | |||||||
Restricted shares [Member] | August 1, 2014 [Member] | ||||||||
SHARE-BASED AWARDS | ||||||||
Numbers of shares, Granted | 69,564 | |||||||
Weighted average grant date fair value, Granted | $ 2.44 | |||||||
Restricted shares [Member] | August 7, 2017 [Member] | ||||||||
SHARE-BASED AWARDS | ||||||||
Numbers of shares, Granted | 1,453,950 | |||||||
Weighted average grant date fair value, Granted | $ 1.33 | |||||||
Restricted shares [Member] | August 8, 2017 [Member] | ||||||||
SHARE-BASED AWARDS | ||||||||
Numbers of shares, Granted | 3,319,200 | |||||||
Weighted average grant date fair value, Granted | $ 1.34 | |||||||
Restricted shares [Member] | September 13, 2017 [Member] | ||||||||
SHARE-BASED AWARDS | ||||||||
Numbers of shares, Granted | 45,000 | |||||||
Weighted average grant date fair value, Granted | $ 1.33 | |||||||
Restricted shares [Member] | October 2, 2018 [Member] | ||||||||
SHARE-BASED AWARDS | ||||||||
Numbers of shares, Granted | 5,992,605 | |||||||
Weighted average grant date fair value, Granted | $ 1.19 |
SHARE-BASED AWARDS (Schedule _3
SHARE-BASED AWARDS (Schedule of Share-Based Compensation Expense) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
SHARE-BASED AWARDS | ||||
Share-based compensation | ¥ (5,919) | $ (858) | ¥ 14,680 | ¥ 20,621 |
General and Administrative Expense [Member] | ||||
SHARE-BASED AWARDS | ||||
Share-based compensation | (6,424) | (931) | 12,565 | 17,553 |
Selling Expenses [Member] | ||||
SHARE-BASED AWARDS | ||||
Share-based compensation | ¥ 505 | $ 73 | ¥ 2,115 | ¥ 3,068 |
Revenue (Details)
Revenue (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
REVENUE | ||||
ASC 606 revenue | ¥ 450,119 | $ 65,261 | ¥ 443,149 | ¥ 170,105 |
ASC 842 revenue: | ||||
Operating lease income | ¥ 18,226 | $ 2,643 | ¥ 35,913 | ¥ 45,847 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Total Revenues | Total Revenues | Total Revenues | Total Revenues |
Sales-type lease income | ¥ 3,326 | $ 482 | ¥ 5,210 | ¥ 4,130 |
Direct financing lease income | 414 | 60 | 1,361 | 2,929 |
ASC 842 revenue | 21,966 | 3,185 | 42,484 | 52,906 |
Total Revenues | 472,085 | 68,446 | 485,633 | 223,011 |
Management and technical support | ||||
REVENUE | ||||
ASC 606 revenue | 53,341 | 7,734 | 64,599 | 36,948 |
Medical solution | ||||
REVENUE | ||||
ASC 606 revenue | 179,135 | 25,972 | 217,375 | 26,105 |
Medical service | ||||
REVENUE | ||||
ASC 606 revenue | 131,936 | 19,129 | 101,854 | 76,997 |
Medicine income | ||||
REVENUE | ||||
ASC 606 revenue | 85,707 | 12,426 | 59,321 | 30,055 |
ASC 842 revenue: | ||||
Total Revenues | ¥ 85,707 | $ 12,426 | ¥ 59,321 | ¥ 30,055 |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Related party transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | |
RELATED PARTY TRANSACTIONS | |||||
Loan to: | ¥ 16,800 | ¥ 142,895 | $ 2,436 | ¥ 0 | |
Interest income from: | 6,946 | $ 1,007 | 3,447 | 1,009 | 127 |
Loan from: | 220,369 | 24,432 | 31,951 | 199,000 | |
Interest expense to: | 16,790 | $ 2,434 | 13,532 | 2,434 | 41,918 |
Repayment to: | 82,915 | 80,886 | 12,022 | 272,640 | |
Repayment from: | 0 | 2,430 | 0 | 1,485 | |
JYADK | |||||
RELATED PARTY TRANSACTIONS | |||||
Interest income from: | 0 | 650 | 0 | 127 | |
Repayment from: | 0 | 2,430 | 0 | 1,485 | |
Cherrylane Investment Limited | |||||
RELATED PARTY TRANSACTIONS | |||||
Loan from: | 0 | 15,932 | 0 | 0 | |
Interest expense to: | 1,334 | 554 | 193 | 587 | |
Repayment to: | 0 | 3,824 | 0 | 0 | |
Zhejiang Marine Leasing Ltd | |||||
RELATED PARTY TRANSACTIONS | |||||
Loan from: | 220,369 | 8,500 | 31,951 | 199,000 | |
Interest expense to: | 15,456 | 12,978 | 2,241 | 41,331 | |
Repayment to: | 82,915 | 77,062 | 12,022 | 272,640 | |
Guangdong Proton International Hospital Management Co., Ltd | |||||
RELATED PARTY TRANSACTIONS | |||||
Loan to: | 16,800 | 142,895 | 2,436 | 0 | |
Interest income from: | ¥ 6,961 | ¥ 2,797 | $ 1,009 | ¥ 0 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Related party balances (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
RELATED PARTY TRANSACTIONS | |||
Amounts due from subsidiaries | ¥ 169,453 | $ 24,568 | ¥ 145,692 |
Amount due to related parties, current portion | 13,105 | 1,900 | 12,108 |
Amounts due to related parties, non-current portion | 122,579 | 17,772 | 83,778 |
Due to related parties, non-current, due within 1 year | 133,856 | 19,407 | 35,993 |
Zhejiang Marine Leasing Ltd | |||
RELATED PARTY TRANSACTIONS | |||
Amounts due to related parties, non-current portion | 122,579 | 17,772 | 83,778 |
Due to related parties, non-current, due within 1 year | 123,855 | 17,957 | 26,753 |
Cherrylane Investment Limited | |||
RELATED PARTY TRANSACTIONS | |||
Amount due to related parties, current portion | 13,105 | 1,900 | 12,108 |
Due to related parties, non-current, due within 1 year | 10,001 | 1,450 | 9,240 |
Guangdong Proton International Hospital Management Co., Ltd | |||
RELATED PARTY TRANSACTIONS | |||
Amounts due from subsidiaries | ¥ 169,453 | $ 24,568 | ¥ 145,692 |
EMPLOYEE DEFINED CONTRIBUTION_2
EMPLOYEE DEFINED CONTRIBUTION PLAN (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
PRC | ||||
EMPLOYEE DEFINED CONTRIBUTION PLAN | ||||
Contributions to defined contribution plans | ¥ 58,623 | $ 8,500 | ¥ 51,107 | ¥ 28,228 |
Singapore | ||||
EMPLOYEE DEFINED CONTRIBUTION PLAN | ||||
Contributions to defined contribution plans | ¥ 0 | ¥ 0 | ¥ 106 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
COMMITMENTS AND CONTINGENCIES | |||
Unrecognized tax positions | ¥ 60,301 | $ 8,743 | |
Capital Addition Purchase Commitments [Member] | |||
COMMITMENTS AND CONTINGENCIES | |||
Commitments to purchase certain medical equipment | ¥ 220,972 | $ 32,038 | ¥ 257,165 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 12 Months Ended | ||
Dec. 31, 2022 segment | Dec. 31, 2021 customer segment | Dec. 31, 2020 segment customer | |
SEGMENT REPORTING | |||
Number of operating segments | segment | 2 | 2 | 2 |
Revenue from contract with customer benchmark | |||
SEGMENT REPORTING | |||
Concentration risk percentage | 12.20% | 11.90% | 10% |
Number of customers | customer | 1 | 0 |
SEGMENT REPORTING - Segment inf
SEGMENT REPORTING - Segment information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
SEGMENT REPORTING | |||||
Total Revenues | ¥ 472,085 | $ 68,446 | ¥ 485,633 | ¥ 223,011 | |
Cost of sales | (624,494) | (90,543) | (542,530) | (209,928) | |
Gross profit (loss) | (152,409) | $ (22,097) | (56,897) | 13,083 | |
Total assets | 6,004,934 | 6,229,951 | $ 870,634 | ||
Network Segment | |||||
SEGMENT REPORTING | |||||
Total Revenues | 254,442 | 324,458 | 115,959 | ||
Cost of sales | (225,245) | (253,826) | (52,725) | ||
Gross profit (loss) | 29,197 | 70,632 | 63,234 | ||
Hospital | |||||
SEGMENT REPORTING | |||||
Total Revenues | 217,643 | 161,175 | 107,052 | ||
Cost of sales | (399,249) | (288,704) | (157,203) | ||
Gross profit (loss) | (181,606) | (127,529) | ¥ (50,151) | ||
Operation segment | |||||
SEGMENT REPORTING | |||||
Total assets | 6,004,934 | 6,229,951 | 870,634 | ||
Operation segment | Network Segment | |||||
SEGMENT REPORTING | |||||
Total assets | 2,048,126 | 1,849,432 | 296,951 | ||
Operation segment | Hospital | |||||
SEGMENT REPORTING | |||||
Total assets | ¥ 3,956,808 | ¥ 4,380,519 | $ 573,683 |
SEGMENT REPORTING - Net revenue
SEGMENT REPORTING - Net revenue by country based upon sales location that predominately represents customer location (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
SEGMENT REPORTING | ||||
Total Revenues | ¥ 472,085 | $ 68,446 | ¥ 485,633 | ¥ 223,011 |
PRC | ||||
SEGMENT REPORTING | ||||
Total Revenues | ¥ 472,085 | $ 68,446 | ¥ 485,633 | 199,370 |
Singapore | ||||
SEGMENT REPORTING | ||||
Total Revenues | ¥ 23,641 |
SEGMENT REPORTING - Total long-
SEGMENT REPORTING - Total long-lived assets excluding financial instruments, intangible assets, long-term investment and goodwill by country (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
SEGMENT REPORTING | |||
Total long-lived assets | ¥ 3,862,975 | $ 560,079 | ¥ 3,989,426 |
PRC | |||
SEGMENT REPORTING | |||
Total long-lived assets | ¥ 3,862,975 | $ 560,079 | ¥ 3,989,426 |
LOSS PER SHARE - Schedule of Ba
LOSS PER SHARE - Schedule of Basic and Diluted Income Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Numerator | ||||
Net loss attributable to Concord Medical Services Holdings Limited | ¥ (489,661) | $ (70,993) | ¥ (271,427) | ¥ (309,989) |
Accretion of contingently redeemable noncontrolling interests | 0 | 0 | (549,194) | (359,920) |
Numerator for EPS computation | ¥ (489,661) | $ (70,993) | ¥ (820,621) | ¥ (669,906) |
Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating loss per share - basic | 131,053,858 | 131,053,858 | 131,053,858 | 131,053,858 |
Weighted average number of ordinary shares outstanding used in calculating loss per share - diluted | 131,053,858 | 131,053,858 | 131,053,858 | 131,053,858 |
Loss per share - basic | (per share) | ¥ (3.74) | $ (0.54) | ¥ (6.26) | ¥ (5.11) |
Loss per share - diluted | (per share) | ¥ (3.74) | $ (0.54) | ¥ (6.26) | ¥ (5.11) |
Class A ordinary shares | ||||
Numerator | ||||
Net loss attributable to ordinary shareholders used in calculating loss per ordinary share - basic and diluted | ¥ (318,582) | $ (46,189) | ¥ (533,909) | ¥ (435,855) |
Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating loss per share - basic | 85,265,910 | 85,265,910 | 85,265,910 | 85,265,910 |
Weighted average number of ordinary shares outstanding used in calculating loss per share - diluted | 85,265,910 | 85,265,910 | 85,265,910 | 85,265,910 |
Loss per share - basic | (per share) | ¥ (3.74) | $ (0.54) | ¥ (6.26) | ¥ (5.11) |
Loss per share - diluted | (per share) | ¥ (3.74) | $ (0.54) | ¥ (6.26) | ¥ (5.11) |
Class B ordinary shares | ||||
Numerator | ||||
Net loss attributable to ordinary shareholders used in calculating loss per ordinary share - basic and diluted | ¥ (171,079) | $ (24,804) | ¥ (83,784) | ¥ (234,054) |
Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating loss per share - basic | 45,787,948 | 45,787,948 | 85,265,910 | 45,787,948 |
Weighted average number of ordinary shares outstanding used in calculating loss per share - diluted | 45,787,948 | 45,787,948 | 85,265,910 | 45,787,948 |
Loss per share - basic | (per share) | ¥ (3.74) | $ (0.54) | ¥ (0.98) | ¥ (5.11) |
Loss per share - diluted | (per share) | ¥ (3.74) | $ (0.54) | ¥ (0.98) | ¥ (5.11) |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
FAIR VALUE MEASUREMENTS | |||
Impairment charge, long-lived assets | ¥ 16,148 | $ 2,341 | ¥ 16,148 |
Nonrecurring | |||
FAIR VALUE MEASUREMENTS | |||
Impairment charge, long-lived assets | ¥ 0 | ¥ 0 | |
Significant unobservable inputs (Level 3) | Measurement Input, Discount Rate | |||
FAIR VALUE MEASUREMENTS | |||
Long lived assets measurement input | 17.8 | 17.8 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair value of its derivative liability on a recurring basis using significant unobservable (Level 3) inputs (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
FAIR VALUE MEASUREMENTS | ||
Derivative liability | ¥ 5,290 | $ 767 |
Significant unobservable inputs (Level 3) | ||
FAIR VALUE MEASUREMENTS | ||
Derivative liability | ¥ 5,290 |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed balance sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Current assets: | ||||||
Cash and cash equivalent | ¥ 158,283 | $ 22,949 | ¥ 157,386 | |||
Prepayments and other current assets | 385,351 | 55,871 | 257,019 | |||
Amounts due from subsidiaries | 169,453 | 24,568 | 145,692 | |||
Total current assets | 759,800 | 110,162 | 584,475 | |||
Total assets | 6,004,934 | 870,634 | 6,229,951 | |||
Current liabilities: | ||||||
Long-term, current portion | 343,982 | 49,873 | 162,842 | |||
Accrued expenses and other liabilities | 419,881 | 60,879 | 382,177 | |||
Derivative liability | 5,290 | 767 | ||||
Amounts due to subsidiaries | 13,105 | 1,900 | 12,108 | |||
Total current liabilities | 1,121,236 | 162,566 | 804,521 | |||
Non-current liabilities: | ||||||
Long-term bank and other borrowings, non-current portion | 2,471,427 | 358,323 | 2,178,596 | |||
Derivative liability | 5,863 | |||||
Total liabilities | 3,989,277 | 578,393 | 3,486,230 | |||
Shareholders' equity (deficit): | ||||||
Treasury stock (12,101,847 and 12,101,847 shares as of December 31, 2021 and 2022, respectively) | (7) | (1) | (7) | |||
Additional paid-in capital | 1,930,633 | 279,915 | 1,936,552 | |||
Accumulated other comprehensive loss | (27,766) | (4,026) | (29,496) | |||
Accumulated deficit | (3,766,931) | (546,154) | (3,277,270) | |||
Total Concord Medical Services Holdings Limited shareholders' deficit | (1,863,966) | (270,251) | (1,370,116) | |||
Total liabilities, mezzanine equity and (deficit)/equity | 6,004,934 | 870,634 | 6,229,951 | |||
Common Class A | ||||||
Shareholders' equity (deficit): | ||||||
Ordinary shares | 68 | 10 | 68 | |||
Common Class B | ||||||
Shareholders' equity (deficit): | ||||||
Ordinary shares | 37 | 5 | 37 | |||
Parent Company | ||||||
Current assets: | ||||||
Cash and cash equivalent | 1,510 | 219 | 15,058 | $ 2,183 | ¥ 2,079 | ¥ 540 |
Prepayments and other current assets | 24,271 | 3,519 | 121 | |||
Amounts due from subsidiaries | 298,900 | |||||
Total current assets | 25,781 | 3,738 | 314,079 | |||
Total assets | 25,781 | 3,738 | 314,079 | |||
Current liabilities: | ||||||
Short term loan | 32,417 | 4,700 | 14,625 | |||
Long-term, current portion | 111,028 | 16,098 | ||||
Accrued expenses and other liabilities | 11,649 | 1,689 | 13,924 | |||
Derivative liability | 5,290 | 767 | ||||
Amounts due to subsidiaries | 1,729,363 | 250,735 | 1,559,394 | |||
Total current liabilities | 1,889,747 | 273,989 | 1,587,943 | |||
Non-current liabilities: | ||||||
Long-term bank and other borrowings, non-current portion | 90,389 | |||||
Derivative liability | 5,863 | |||||
Total liabilities | 1,889,747 | 273,989 | 1,684,195 | |||
Shareholders' equity (deficit): | ||||||
Treasury stock (12,101,847 and 12,101,847 shares as of December 31, 2021 and 2022, respectively) | (7) | (1) | (7) | |||
Additional paid-in capital | 1,930,633 | 279,915 | 1,936,552 | |||
Accumulated other comprehensive loss | (27,766) | (4,026) | (29,496) | |||
Accumulated deficit | (3,766,931) | (546,154) | (3,277,270) | |||
Total Concord Medical Services Holdings Limited shareholders' deficit | (1,863,966) | (270,251) | (1,370,116) | |||
Total liabilities, mezzanine equity and (deficit)/equity | 25,781 | 3,738 | 314,079 | |||
Parent Company | Common Class A | ||||||
Shareholders' equity (deficit): | ||||||
Ordinary shares | 68 | 10 | 68 | |||
Parent Company | Common Class B | ||||||
Shareholders' equity (deficit): | ||||||
Ordinary shares | ¥ 37 | $ 5 | ¥ 37 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||
Treasury stock, common shares | 12,101,847 | 12,101,847 |
Class A ordinary shares | ||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||
Ordinary shares, par value per share | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 96,565,584 | 96,565,584 |
Ordinary shares, shares outstanding | 84,463,737 | 84,463,737 |
Class B ordinary shares | ||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||
Ordinary shares, par value per share | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 45,787,948 | 45,787,948 |
Ordinary shares, shares issued | 45,787,948 | 45,787,948 |
Ordinary shares, shares outstanding | 45,787,948 | 45,787,948 |
Parent Company | ||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||
Treasury stock, common shares | 12,101,847 | 12,101,847 |
Parent Company | Class A ordinary shares | ||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||
Ordinary shares, par value per share | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 96,565,584 | 96,565,584 |
Ordinary shares, shares outstanding | 84,463,737 | 84,463,737 |
Parent Company | Class B ordinary shares | ||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||
Ordinary shares, par value per share | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 45,787,948 | 45,787,948 |
Ordinary shares, shares issued | 45,787,948 | 45,787,948 |
Ordinary shares, shares outstanding | 45,787,948 | 45,787,948 |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed statements of comprehensive loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||||
Total Revenues | ¥ 472,085 | $ 68,446 | ¥ 485,633 | ¥ 223,011 |
Cost of revenues | (624,494) | (90,543) | (542,530) | (209,928) |
General and administrative expenses | (311,160) | (45,114) | (347,746) | (294,823) |
Selling expenses | (61,479) | (8,914) | (53,675) | (25,761) |
Operating loss | (525,048) | (76,125) | (458,318) | (316,001) |
Interest income | 10,021 | 1,453 | 5,894 | 8,440 |
Interest expense | (120,357) | (17,450) | (73,789) | (81,359) |
Other income, net | (216,607) | (31,405) | (1,223) | 6,312 |
Foreign exchange gain(loss) | 54,982 | 7,972 | (19,925) | (58,686) |
Net loss attributable to Concord Medical Services Holdings Limited | (489,661) | (70,993) | (271,427) | (309,989) |
Other comprehensive income (loss), net of tax of nil foreign currency translation adjustments | (53,964) | (7,824) | 14,821 | 50,856 |
Total other comprehensive income (loss), net of tax | (53,964) | (7,824) | 14,821 | 50,856 |
Comprehensive loss attributable to Concord Medical Services Holdings Limited | (543,625) | (78,817) | (256,606) | (259,133) |
Parent Company | ||||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||||
Total Revenues | 0 | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 | 0 |
General and administrative expenses | 5,242 | 760 | (14,428) | (23,598) |
Selling expenses | (524) | (76) | (2,090) | (2,969) |
Operating loss | 4,718 | 684 | (16,518) | (26,567) |
Equity in loss of subsidiaries | (605,175) | (87,741) | (793,117) | (621,932) |
Interest income | 0 | 0 | 0 | 588 |
Interest expense | (10,394) | (1,507) | (1,459) | (3,036) |
Changes in fair value of derivatives | 1,055 | 153 | 0 | 0 |
Other income, net | 96,609 | 14,007 | 0 | 0 |
Foreign exchange gain(loss) | 23,526 | 3,411 | (9,527) | (18,962) |
Net loss attributable to Concord Medical Services Holdings Limited | (489,661) | (70,993) | (820,621) | (669,909) |
Other comprehensive income (loss), net of tax of nil foreign currency translation adjustments | (53,964) | (7,824) | 14,821 | 50,856 |
Total other comprehensive income (loss), net of tax | (53,964) | (7,824) | 14,821 | 50,856 |
Comprehensive loss attributable to Concord Medical Services Holdings Limited | ¥ (543,625) | $ (78,817) | ¥ (805,800) | ¥ (619,053) |
PARENT COMPANY ONLY CONDENSED_6
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed statements of comprehensive loss (Parenthetical) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |||
Foreign currency translation, net of tax | ¥ 0 | ¥ 0 | ¥ 0 |
Parent Company | |||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |||
Foreign currency translation, net of tax | ¥ 0 | ¥ 0 | ¥ 0 |
PARENT COMPANY ONLY CONDENSED_7
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed statements of cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||||
Net cash (used in) generated from operating activities | ¥ (216,694) | $ (31,419) | ¥ (359,313) | ¥ (229,766) |
Net cash (used in) generated from investing activities | (118,792) | (17,223) | (565,981) | (533,885) |
Net cash (used in) generated from financing activities | 383,088 | 55,542 | 642,449 | 1,138,302 |
Exchange rate effect on cash | (47,170) | (6,837) | (4,639) | (2,563) |
Net (decrease) increase in cash | 432 | 63 | (287,484) | 372,088 |
Cash at beginning of the year | 157,386 | |||
Cash at end of the year | 158,283 | 22,949 | 157,386 | |
Parent Company | ||||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||||
Net cash (used in) generated from operating activities | (2,047) | (297) | (9,301) | 9,041 |
Net cash (used in) generated from investing activities | (29,335) | (4,253) | (88,546) | (7,468) |
Net cash (used in) generated from financing activities | 16,591 | 2,405 | 110,876 | |
Exchange rate effect on cash | 1,243 | 181 | (50) | (34) |
Net (decrease) increase in cash | (13,548) | (1,964) | 12,979 | 1,539 |
Cash at beginning of the year | 15,058 | 2,183 | 2,079 | 540 |
Cash at end of the year | ¥ 1,510 | $ 219 | ¥ 15,058 | ¥ 2,079 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event ¥ in Thousands, $ in Thousands | 1 Months Ended | |||
Mar. 09, 2023 CNY (¥) | Jan. 31, 2023 CNY (¥) | Mar. 09, 2023 USD ($) | Jan. 31, 2023 USD ($) | |
Shanghai Qianlai Industrial Co., LTD | ||||
SUBSEQUENT EVENTS | ||||
Granted maximum loan credit | ¥ 100,000 | $ 14,499 | ||
Interest rate | 8% | |||
Principal amount | ¥ 58,500 | 8,482 | ||
Shanghai Xinhe | ||||
SUBSEQUENT EVENTS | ||||
Transfer of partnership shares, amount | ¥ 6,000 | $ 870 | ||
Percentage of transfer of partnership shares | 27.27% | |||
Percentage of transfer of partnership shares hold | 72.72% | |||
MHM | ||||
SUBSEQUENT EVENTS | ||||
Granted maximum loan credit | 35,000 | 5,075 | ||
Working capital loan | ¥ 9,980 | 1,447 | ||
Interest rate | 5.50% | |||
Principal amount | ¥ 9,980 | $ 1,447 | ||
Minimum | Shanghai Qianlai Industrial Co., LTD | ||||
SUBSEQUENT EVENTS | ||||
Period of credit | Mar. 27, 2023 | |||
Minimum | MHM | ||||
SUBSEQUENT EVENTS | ||||
Period of loan | Jan. 16, 2023 | |||
Maximum | Shanghai Qianlai Industrial Co., LTD | ||||
SUBSEQUENT EVENTS | ||||
Period of credit | Jun. 30, 2024 | |||
Maximum | MHM | ||||
SUBSEQUENT EVENTS | ||||
Period of loan | Jan. 16, 2024 |