SINOVAC Reports Unaudited First Half of 2021 Financial Results

Reports Unaudited First Half of 2021 Financial Results

BEIJING, China, December 30,

2021 /Business Wire/ -- Sinovac Biotech Ltd. (NASDAQ: SVA) ("SINOVAC" or the "Company"), a leading provider of

biopharmaceutical products in China, announced today its unaudited financial results for the six months ended June 30, 2021.

Half of 2021 Financial Summary

Yin, Chairman, President and CEO of SINOVAC, said: "We are working with global partners on joint vaccine research and collaborating

locally to make COVID-19 vaccines available around the world. SINOVAC has become one of the largest global suppliers of COVID-19 vaccines,

supplying over 2.5 billion doses of its inactivated vaccine, CoronaVac , around the world, as of late December 2021.

As the world continues to face challenges and new COVID-19 variants, SINOVAC remains committed to developing and distributing safe and

effective vaccines in China and across the globe. We remain confident that our team of scientists will continue to evolve our vaccines

to address new challenges and overcome the pandemic."

Vaccine - CoronaVac , the inactivated COVID-19 vaccine developed by SINOVAC, has been granted emergency use approval

or conditional market authorization by 56 countries and regions. On June 1, 2021, CoronaVac was approved for emergency

use under the World Health Organization (WHO) Emergency Use Listing (EUL) procedure. On July 12, 2021, SINOVAC entered into an advance

purchase agreement with the Global Alliance for Vaccines and Immunization (Gavi Alliance) to provide up to 380 million doses of CoronaVac

for global distribution. In addition, CoronaVac was approved for pediatric

use for children aged from three years and above in nine countries. As of late December 2021, SINOVAC has provided over 2.5 billion

doses of CoronaVac globally. With annual production capacity of over 2 billion doses, SINOVAC is well positioned to be

a supplier of high-quality vaccines around the world.

Inactivated Polio vaccine (sIPV) - the China National Medical Products Administration (or NMPA) issued a product license for

its Sabin Inactivated Polio vaccine (sIPV) in July 2021.

Financial Results for the First Half of 2021

the first half of 2021 were $11.0 billion, compared to $67.7 million in the prior year period. The increase was due to higher sales of

CoronaVac and sales growth of the Company's other products as the COVID-19 pandemic subsided in China and vaccine

schedules returned to normal. Sales during the first six months of 2021 are not indicative of future sales trends since sales of CoronaVac

are expected to decline as the COVID-19 pandemic abates and competitive pressure from other vaccines increases.

in the first half of 2021 was $10.3 billion, an increase from $58.2 million in the prior year period. Gross margin was 94.2%, compared

to 85.9% in the prior year period.

general and administrative expenses in the first half of 2021 were $162.7 million, compared to $46.3 million in the prior year period.

The increase was mainly due to increased resources dedicated to revenue growth and operation expansion.

expenses in the first half of 2021 were $53.9 million, compared to $20.1 million in the prior year period.

in the first half of 2021 was $8.6 billion, compared to a net loss of $8.7 million in the prior year period.

attributable to common shareholders was $5.1 billion, or $51.42 per basic and $44.80 per diluted share, in the first half of 2021, compared

to a net loss attributable to common shareholders of $12.6 million, or $0.13 loss per basic and diluted share, in the prior year period.

announced on February 22, 2019, the Company's Board of Directors determined that certain shareholders became acquiring persons,

as defined in the Company's rights agreement ("Rights Agreement"), under which a trigger event occurred. As a result,

the Company issued new common and preferred shares of SINOVAC. Without the effect of implementing the Rights Agreement and newly-issued

common and preferred shares, basic and diluted earnings per share for the first half of 2021 would be $71.43 and $59.24, respectively.

adjusted EBITDA was $10.2 billion in the first half of 2021, compared to a loss of $5.1 million in the prior year period. Non-GAAP net

income was $8.6 billion in the first half of 2021, compared to a net loss of $7.5 million in the prior year period. Non-GAAP diluted earnings

per share in the first half of 2021 was $44.78, compared to a loss of $0.12 per share in the prior year period. Non-GAAP diluted earnings

per share in the first half of 2021, excluding the implementation of the Rights Agreement and the newly-issued common and preferred shares,

would be $59.22. Reconciliations of non-GAAP measures to the nearest comparable GAAP measures are included at the end of this earnings

2021, cash and cash equivalents and restricted cash totaled $6.9 billion, compared to $1.1 billion as of December 31, 2020. In the

first half of 2021, net cash provided by operating activities was $9.1 billion, net cash used in investing activities was $3.3 billion

and net cash used in financing activities was $30.0 million.

As previously disclosed by the Company, on March 13,

2018, 1Globe Capital LLC ("1Globe") filed a complaint against the Company in the Antigua Court. The trial of the matter took

place from December 3 to 5, 2018. On December 19, 2018, the Antigua judge handed down his judgment (the "Antigua Judgment"),

finding the Company fully in favor, dismissing 1Globe's claim and declaring the Rights Agreement was validly adopted as a matter

of Antigua law. On January 29, 2019, 1Globe filed a Notice of Appeal against the Antigua Judgment. On March 4, 2019, 1Globe

filed an application for urgent interim relief, seeking an injunction to prevent the Company from continuing to implement its Rights Agreement

until the resolution of the appeal. This application was heard on April 4, 2019, at which the Court of Appeal issued an order restraining

the Company from operating the Rights Agreement in any way that affects 1Globe's rights or shareholding or otherwise distributing

the exchange shares to the Company's shareholders who did not trigger the Rights Plan until after the determination of the appeal

(the "Exchange Shares"). 1Globe's appeal against the Antigua Judgment was heard on September 18, 2019, and the

appeal decision was announced by the Eastern Caribbean Supreme Court, Court of Appeal on December 9, 2021, upholding the Antigua

Judgment in each point. 1Globe has announced its intention to apply for leave to appeal to the Privy Council.

disclosed, on March 5, 2018, the Company filed a lawsuit in the Court of Chancery of the State of Delaware, seeking a determination

on whether 1Globe, the Chiang Li Family, OrbiMed Advisors, LLC and certain other shareholders of the Company had triggered the Rights

Agreement. On April 12, 2018, 1Globe filed an amended answer to the Company's complaint, counterclaims and a third-party complaint

against the Company and Mr. Weidong Yin, alleging, among other allegations, that the Rights Agreement is not valid. On March 6,

2019, the Delaware Chancery Court entered a status quo order, providing that the Company not distribute any of the Exchange Shares to

the Company's shareholders who did not trigger the Rights Plan until the final disposition of the pending Delaware litigation or

further order of the Court. On April 8, 2019, the Delaware Chancery Court stated that the Delaware litigation was pending the outcome

of 1Globe's appeal of the Antigua Judgment.

Heng Ren Investments LP ("Heng Ren") filed suits against SINOVAC and Weidong Yin on May 31, 2019 in Massachusetts state

court for the alleged breach of fiduciary duties and wrongful equity dilution. SINOVAC moved the matter from the state court to the United

States District Court for the District of Massachusetts. Heng Ren alleged that Mr. Yin breached fiduciary duties owed to minority

shareholders, that SINOVAC aided and abetted breaches of fiduciary duties and that both SINOVAC and Mr. Yin engaged in wrongful equity

dilution. Heng Ren requested damages, attorney fees, and prejudgment interest. In July 2021, SINOVAC moved to dismiss Heng Ren's

amended complaint in the federal court in Massachusetts. The court's decision on this motion is still pending.

of Exchange Shares and Trading in the Company's Shares

of the pending legal proceedings described above, the Exchange Shares are expected to remain in a trust for the benefit of the Company's

shareholders who did not trigger the Rights Plan until, at least, the conclusion of the appeal against the Antigua Judgement and the final

disposition of the Delaware litigation or further order of the Delaware Chancery Court. The Exchange Shares remain issued and outstanding.

The Nasdaq Stock Market LLC implemented a halt on trading of the Company's common shares at the time the Exchange Shares were issued

to the trust. The Company is currently unable to estimate when trading will resume, or if Nasdaq will take any additional action in regards

to trading of the Company's common shares.

Sinovac Biotech Ltd. is a China-based biopharmaceutical

company that focuses on the research, development, manufacturing and commercialization of vaccines that protect against human infectious

diseases. SINOVAC's product portfolio includes vaccines against COVID-19, enterovirus71 (EV71),

hepatitis A and B, seasonal influenza, 23-valent pneumococcal polysaccharide ("PPV"), H5N1 pandemic influenza (avian flu),

H1N1 influenza (swine flu), varicella, mumps and poliomyelitis. SINOVAC's COVID-19

vaccine, CoronaVac , has been granted emergency use approval or conditional marketing authorization in Asia, Latin America, Africa

and Middle East countries. Healive , the hepatitis A vaccine manufactured by the Company, has passed the assessment under WHO prequalification

procedures in 2017. The EV71 vaccine, an innovative vaccine developed by SINOVAC against

hand foot and mouth disease caused by EV71, was commercialized in China in 2016. In 2009, SINOVAC

was the first company worldwide to receive approval for its H1N1 influenza vaccine, which it has supplied to the Chinese Government's

vaccination campaign and stockpiling program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine to the government

stockpiling program. In 2021, SINOVAC's Sabin-strain inactivated polio vaccine has

approved for registration. The Company is developing several new products including combined vaccines. SINOVAC

primarily sells its vaccines in China, while also exploring growth opportunities in international markets. The Company is seeking market

authorization of its regular products in countries outside of China. For more information, please see the Company's website at www.sinovac.com.

This press release may include certain statements

that are not descriptions of historical facts, but are forward-looking statements. These statements are made under the "safe harbor"

provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology

such as "will," "expects," "anticipates," "future," "intends," "plans,"

"believes," "estimates" and similar statements. Forward-looking statements involve risks, uncertainties and other

factors that could cause actual results to differ materially from those contained in any such statements. In particular, the outcome of