SINOVAC Reports Unaudited Second Half of 2021 Financial Results and Files 2021 Annual Report on Form 20-F

Reports Unaudited Second Half of 2021 Financial Results and Files 2021 Annual Report on Form 20-F

China, April 29, 2022 /Business Wire/ -- Sinovac Biotech Ltd. (NASDAQ: SVA) ("SINOVAC" or the "Company"), a leading

provider of biopharmaceutical products in China, has filed its 2021 annual report on Form 20-F with the U.S. Securities and Exchange Commission

for the year ended December 31, 2021. The Company also reported its unaudited financial for the second half and full year ended December

Half and Full Year 2021 Financial Summary

Yin, Chairman, President and CEO of SINOVAC, commented, "As a major COVID-19 vaccine provider, Sinovac has been committed to using

its resources to help the global population prevail against the virus since the onset of this unfortunate pandemic. As of now, SINOVAC

has provided over 2.8 billion doses of CoronaVac globally, among which about 300 million doses were donated to various

Centers for Disease Control in China. SINOVAC also led and participated in various overseas donation projects for COVID-19 vaccine or

construction of COVID-19 vaccine-related facilities. Looking ahead into 2022, we remain highly dedicated to the research and development

of vaccines to combat COVID-19 variant strains, as well as the development of other vaccines against infectious diseases. SINOVAC will

continue to focus on making strides to protect human society."

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

or conditional market authorization in over 60 countries and regions. At this time, over 2.8 billion doses of CoronaVac

were delivered worldwide, and close to half of CoronaVac revenues in 2021 were generated from international markets. 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 in over ten countries. 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 ("NMPA") issued

a product license for its Sabin Inactivated Polio vaccine in July 2021. sIPV is mainly supplied to the public tender market in China as

well as the rest of the world. This product was developed through a technology transfer from The Institute for Translational Vaccinology

for the Global Polio Eradication Initiative by the WHO.

23-valent pneumococcal polysaccharide vaccine

("PPV") - The Company obtained a product license from the NMPA for its 23-valent pneumococcal polysaccharide vaccine

at the end of 2020, and the Company commercially launched PPV in the Chinese market in March 2021.

Financial Results for the Second Half of 2021

the second half of 2021 were $8.4 billion, compared to $442.9 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 second half of 2021 are not indicative of future sales trends since sales of CoronaVac

are not expected to be as high as 2021 levels due to an increased competitive environment.

general and administrative expenses in the second half of 2021 were $428.5 million, compared to $130.3 million in the prior year period.

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

expenses in the second half of 2021 were $101.1 million, compared to $28.6 million in the prior year period.

in the second half of 2021 was $5.9 billion, compared to $193.9 million in the prior year period.

attributable to common shareholders was $3.4 billion, or $33.79 per basic and $29.46 per diluted share, in the second half of 2021, compared

to a net income attributable to common shareholders of $117.0 million, or $1.18 per basic and $1.06 per diluted share, in the prior year

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 second half of 2021 would be $46.95 and $38.95, respectively.

adjusted EBITDA was $7.5 billion in the second half of 2021, compared to $235.0 million in the prior year period. Non-GAAP net income

was $5.9 billion in the second half of 2021, compared to $204.6 million in the prior year period. Non-GAAP diluted earnings per share

in the second half of 2021 was $29.87 compared to $1.12 per share in the prior year period. Non-GAAP diluted earnings per share in the

second half of 2021, excluding the implementation of the Rights Agreement and the newly-issued common and preferred shares, would be $39.49.

Reconciliations of non-GAAP measures to the nearest comparable GAAP measures are included at the end of this earnings announcement.

second half of 2021 financial statements are prepared and presented in accordance with U.S. GAAP. However, they have not been audited

or reviewed by the Company's independent registered accounting firm.

Results for the Twelve Months Ended December 31, 2021

2021 were $19.4 billion, an increase from $510.6 million in the prior year. The increase was due to higher sales of CoronaVac

and sales growth of the Company's other products. Sales in 2021 are not indicative of future sales trends due to the reasons described

in the discussion of sales in the second half of 2021.

general and administrative expenses in 2021 were $591.2 million, compared to $176.5 million in the prior year. The increase was mainly

due to increased resources dedicated to revenue growth and operation expansion.

expenses in 2021 were $155.0 million, compared to $48.8 million in the prior year. The Company continued to invest in the advancement

of pipeline vaccines as well as research on COVID-19 variants.

in 2021 was $14.5 billion, compared to $185.2 million in the prior year. Net income increased primarily due to increased sales.

attributable to common shareholders was $8.5 billion, or $85.20 per basic and $74.27 per diluted share, compared to net income attributable

to common shareholders of $104.4 million, or $1.06 per basic and $0.97 per diluted share, in the prior year.

the implementation of the Rights Agreement, as described above, and the newly-issued common and preferred shares, basic and diluted earnings

per share for 2021 would be $118.37 and $98.20, respectively.

adjusted EBITDA was $17.6 billion in 2021, compared to $229.9 million in the prior year. Non-GAAP net income in 2021 was $14.5 billion

in 2021, compared to $197.1 million in the prior year. Non-GAAP diluted earnings per share in 2021 was $74.67, compared to earnings of

$1.03 per share in the prior year. Non-GAAP diluted earnings per share in 2021, excluding the implementation of the Rights Agreement and

the newly-issued common and preferred shares, would be $98.72 per share. Reconciliations of non-GAAP measures to the nearest comparable

GAAP measures are included at the end of this earnings announcement.

31, 2021, cash and cash equivalents and restricted cash totaled $11.6 billion, compared to $1.1 billion as of December 31, 2020. In 2021,

net cash provided by operating activities was $15.4 billion, net cash used in investing activities was $3.0 billion, and net cash used

in financing activities was $1.9 billion. As of December 31, 2021, the Company had $3.1 million in bank loans due within one year. The

Company expects that its current cash position will be able to support its operations for at least the next 12 months.

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 (the "Court of Appeal") on December 9, 2021, upholding the Antigua

Judgment in each point. 1Globe applied for leave to appeal to the Judicial Committee of the Privy Council (the "Privy Council"),

and the hearing of the application was held on February 24, 2022, in which the Court of Appeal granted 1Globe leave to appeal to the Privy

Council on certain grounds, although not including the challenge to the validity of the Rights Agreement. On April 19, 2022, 1Globe renewed

its application directly to the Privy Council for leave to appeal on its ground of appeal concerning the validity of the Rights Agreement.

1Globe has not yet taken steps to list a substantive hearing before 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 final 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