Full Press Release Details
Biotech Co. Ltd., Sinovac's Beijing Subsidiary, Obtains High-Tech Enterprise
March 9, 2009, 8:00 am EDT
March 9 /PRNewswire-Asia/ -- Sinovac Biotech Ltd. (NYSE Alternext US: SVA), a
leading developer and provider of vaccines in China, announced today that the
Chinese government, led by the Ministry of Science and Technology of China, the
Ministry of Finance and the State Administration of Taxation, jointly granted
the Company's operating subsidiary, Sinovac Biotech Co. Ltd.(Sinovac Beijing),
high-tech enterprise status. According to the Enterprise Income Tax Law of the
People's Republic of China, Sinovac Beijing has received recognition to benefit
from a 15 percent tax rate, down from a 25 percent tax rate. Sinovac Beijing
will benefit from the lower tax rate for a three-year validation period,
covering 2008, 2009 and 2010. Currently, all benefits of Sinovac are sourced
from Sinovac Beijing.
to the China Banking Regulatory Commission Guiding Opinions Number 94, companies
with high-tech status are eligible for numerous potential benefits including,
preferential treatment in obtaining other support from the government,
competitive commercial bank loans and subsidized interest.
Weidong Yin, Chairman, President and CEO of Sinovac Biotech Ltd., commented,
"Receipt of high-tech enterprise status reflects Sinovac's continued strength
and progress in fundamental areas such as the research and development and
vaccine commercialization. As a high-tech enterprise, Sinovac is poised to
benefit from substantially increased government support that provides us with
financial flexibility as we maintain solid growth. We are very pleased to be
granted this esteemed status and are well positioned to continue to build
High-Tech Enterprise Status
enterprise status is awarded by the Chinese government to companies that
consistently invest in new product development, and generate substantial
revenues from their proprietary patented or innovative products. In this way,
the Chinese government encourages domestic and foreign investment in advanced
technologies, and has created a series of preferential tax policies to stimulate
and promote the production of high-tech products, the provision of high-tech
related services and technology transfers into and within China. The Ministry of
Science and Technology of China, the Ministry of Finance and the State
Administration of Taxation jointly promulgated the Measures For the Recognition
and Administration of New and High-Tech Enterprises, which clearly specify the
requirements for the recognition and administration of high-tech
Biotech Ltd. is a China-based biopharmaceutical company that focuses on the
research, development, manufacture and commercialization of vaccines that
protect against human infectious diseases. Sinovac's commercialized vaccines
include Healive (hepatitis A), Bilive (combined hepatitis A and B), Anflu
(influenza) and Panflu(TM) (H5N1). Sinovac is currently developing a Universal
Pandemic Influenza vaccine and Japanese encephalitis vaccine. Its wholly-owned
subsidiary, Tangshan Yian is currently conducting field trials for the first
domestically-developed inactivated animal rabies vaccines. Additional
information about Sinovac is available on its website, http://www.sinovac.com
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