Concord Medical Services Holdings Limited reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2011. For the quarter, total net revenues were RMB 114.1 million ($18.1 million), representing a 1.1% increase from the fourth quarter of 2010. The flat revenue growth was due to the company's decision to not recognize service revenue from the Chang'an Hospital due to the ongoing acquisition of the controlling equity interests in Chang'an Hospital. Operating loss was RMB 8.9 million ($1.4 million), compared to operating income of RMB 51.4 million in the fourth quarter of 2010. The loss was mainly due to bad debt provision and other impairment charges incurred during the quarter. Net loss was RMB 310.0 million ($49.3 million) as a result of the above, compared to net income of RMB 43.7 million in the fourth quarter of 2010. Both basic and diluted losses per ADS in the fourth quarter of 2011 amounted to RMB 6.56 ($1.04), compared to basic and diluted earnings per ADS of RMB 0.87 in the fourth quarter of 2010. Non-GAAP net income was RMB 41.7 million ($6.6 million), compared to non-GAAP net income of RMB 48.0 million in the fourth quarter of 2010. Both non-GAAP basic and diluted earnings per ADS in the fourth quarter of 2011 were RMB 0.87 ($0.14), compared to non-GAAP basic and diluted earnings per ADS of RMB 0.96 in the fourth quarter of 2010. Adjusted EBITDA (non-GAAP) was RMB 74.8 million ($11.9 million) in the fourth quarter of 2011. Loss before income tax was RMB 303.22 million against income before income tax of RMB 53.82 million for the same period a year ago. Non-GAAP operating income was RMB 42.6 million against RMB 55.76 million for the same period a year ago. For the year, total net revenues were RMB 450.1 million ($71.5 million), a 15.6% increase from RMB 389.5 million in 2010. Operating income was RMB 138.9 million ($22.1 million), compared to RMB 179.7 million in 2010. Net loss in 2011 was RMB 211.4 million ($33.6 million), compared to net income of RMB 130.9 million in 2010, primarily due to goodwill and other impairment charges and other provisions. Both basic and diluted losses per ADS for 2011 were RMB 4.53 ($0.72). Non-GAAP net income for 2011 was RMB 147.3 million ($23.4 million), compared to RMB 143.0 million in 2010. Both non-GAAP basic and diluted earnings per ADS in 2011 were RMB 3.03 ($0.48), compared to RMB 2.91 in 2010. Adjusted EBITDA (non-GAAP) was RMB 318.4 million ($50.6 million) in 2011, compared to RMB 297.9 million in 2010. Capital expenditures were RMB 339.9 million ($54.0 million) in 2011, compared to RMB 345.2 million in 2010. The Capital expenditures were primarily for equipment deposits for new centers. Loss before income tax was RMB 165.03 million against income before income tax of RMB 174.79 million a year ago. Non-GAAP operating income was RMB 197.36 million against RMB 191.75 million for the same period a year ago. A substantial portion of goodwill on the company's balance sheet relates to the acquisitions by the company's predecessor before the Company's IPO in December 2009. During the year of 2011, the market circumstances prompted management to evaluate and test the fair value of the company's assets against their carrying amount in accordance with U.S. GAAP. Based on the testing, the company concluded that the implied goodwill is insufficient to cover the carrying amount of goodwill and consequently recorded a goodwill impairment charge of RMB 300.2 million ($47.7 million) during the fourth quarter of 2011. The company expects to consolidate the financial results of Chang'an Hospital beginning at the third quarter of 2012. Based on current market and operating conditions, estimated business expansion and forecasted Chang'an Hospital financial results, the company provides the following financial guidance for the 2012 fiscal year: Total net revenues of RMB 590 million to RMB 630 million or 30%-40% year-over-year growth; growth in total net revenues of lease and management service of 15% to 18%; revenue from Chang'an Hospital of RMB 190 million to RMB 210 million, reflecting consolidation of 6-months financial results; and capital expenditures of RMB 250 million to RMB 275 million. The company also announced that the board of directors has appointed Mr. Adam Jigang Sun as the Chief Financial Officer. Mr. Sun has served as the Acting CFO of the company since September 2011. The company is targeting to obtain the license of at least one specialty oncology hospital in 2012.