Dr. Jianyu Yang is the current Chairman and CEO of the Company. Prior to joining Concord, Dr. Yang held senior management posts in a number of private companies, including Eguard Resource Development Co., Ltd., a company listed on Shenzhen Stock Exchange, and Beijing Sound Environmental Group Co. Ltd., an existing IFC investee company.

Concord was formed by the merger of Shenzhen Aohua Medical Services Co., Ltd. (“Aohua”) and Medstar (Shanghai) Leasing Co., Ltd. (“Medstar”) in 2008. Concord is 31% owned by institutional shareholders, 20% owned by the founders (and their families) of Aohua and Medstar, 10% owned by management with the rest owed by the public.

Total project cost is expected to be US$211.0 million. IFC is considering an A loan and C loan financing package totaling up to US$50.0 million.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

The 50 new oncology and diagnostic centers will be opened primarily in frontier provinces. Concord is currently in discussions with potential hospital partners in frontier provinces such as Sichuan, Henan and Anhui. The proton center will be opened in Beijing. The oncology hospital will be opened in Guangzhou.

1. Increase access to quality healthcare services. The Project will support an established healthcare service provider to move down-market to frontier provinces, to reach middle- and lower-income households, providing affordable basic radiotherapy services that are not readily available to those populations.

2. Enable knowledge transfer. Successful operation of the Proton Beam, one of the most advanced technologues in radiotherapy, would enable knowledge transfer amongst radiotherapy practitioners both within and outside the Company

3. Demonstration effect. This will be achieved in terms of improving standards and corporate governance in healthcare management, and in sending a positive message to other private sector investors about potential market opportunities in the healthcare sector.

4. Promoting health care reform and the public private partnership model. Concord''s success should help to enhance China''s health authorities'' confidence in private health care providers and increase willingness to further relax the regulatory barriers for private investment in the sector.

5. Create skilled employment opportunities. The Project will provide training and create employment opportunities for a number of specialty healthcare positions, including those of radiologists, which are currently in short supply in China.

1. Long term financing that suits the Project''s cash flow cycle. IFC will provide a long-term financing package with sufficient grace period and tenor that suits the Project''s cash flow. Such financing is not readily available in the domestic market.

2. Global industry expertise. IFC will share its experience in other emerging markets with the Company who will become part of IFC''s global network of healthcare clients. IFC has already introduced the Company to a prominent US healthcare institution, and also plans to introduce the Company to some of IFC''s other clients in the healthcare sector in Asia.

3. Environmental and Social best practices. IFC will share with the Company international best practices in Environmental and Social management and will work with the Company to improve its Environmental and Social standards.

Based on the site visit to oncology centers in Zhengzhou, Beijing and Shanghai and Chang’an Hospital in Xi’an, discussions with the client and review of client information by IFC’s Environment and Social Specialists, this project will have limited potential adverse environmental and social impacts. The project has been classified as Category B according to IFC’s Environmental and Social Review Procedure. Key environmental and social (E&S) risks and issues related to this project include: adequate assessment of the E&S impacts of the Project and implementation of associated mitigation measures; implementation of effective EHS management systems; engagement with local communities in accordance with local requirements and IFC Performance Standards; management of construction and operations of the new hospitals and selection of facilities in which to locate oncology centers; employee occupational health and safety activities, including prevention of nosocomial diseases; management of solid and liquid waste, in particular hazardous and biomedical wastes and wastewater; and life and fire safety management of all the public access buildings (including Chang’an hospital, the Beijing Proton Center and the Guangzhou Oncology Hospital).



The project may result in a limited number of specific environmental and social impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. CCM will manage its environmental and social performance in accordance with applicable local laws and regulations and international standards, including IFC’s Performance Standards on Social and Environmental Sustainability, IFC''s Environmental, Health and Safety General Guidelines and Guidelines for Health Care Facilities.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.