Concord Medical Services NYSE: CCM
Let’s look at the latest quarterly results. Then let’s look at the CEO and COO acquiring shares from other shareholders.
Second Quarter 2013 Highlights
- Total net revenue, which consists of net revenues generated from the network business and hospital business, was RMB254.0 million ($41.4 million) in the second quarter of 2013, an 86.1% increase from RMB136.5 million in the second quarter of 2012.
- Gross profit in the second quarter of 2013 was RMB105.2 million ($17.1 million), a 12.1% increase from RMB93.9 million in the second quarter of 2012.
- Net income attributable to ordinary shareholders in the second quarter of 2013 was RMB29.1 million ($4.7 million), a 21.9% decrease from RMB37.2 million in the second quarter of 2012.
- Basic and diluted earnings per American depositary share (“ADS”)[2] in the second quarter of 2013 were both RMB0.65 ($0.11).
- Adjusted EBITDA[3] (non-GAAP) in the second quarter of 2013 was RMB104.3 million ($17.0 million), a 11.3% increase from RMB93.7 million in the second quarter of 2012.
Now the CEO and COO purchases:
“The Company understands that pursuant to the Share Purchase Agreements, Mr. Yang and Mr. Cheng have agreed to establish a company under the laws of the British Virgin Islands as the purchaser and cause the purchaser to acquire an aggregate of 37,064,808 ordinary shares and 4,660,976 American Depository Shares, each representing three ordinary shares of the Company, from certain other shareholders for a purchase price of US$6.10 per American Depositary Share, with an aggregate purchase price of US$103,797,063.21. The completion of the transactions contemplated by the Share Purchase Agreements is subject to the satisfaction of customary conditions, including the purchaser’s receipt of sufficient funds from third-party financing sources as required in the applicable Share Purchase Agreements. It is currently expected that, upon the closing of such acquisition, the aggregate beneficial ownership of Mr. Yang and Mr. Cheng in the Company will increase to approximately 48.0%.”
They see value at $6.10 per share.
There are always neigh-sayers out there who don’t trust a Chinese company. This is the real deal as far as a company. Putting up the cash via third-party financing sounds odd to some people, but this is over $103 million USD. I find confidence in this transaction and in the business as a whole.