Full Press Release Details
Reports Unaudited Second Half of 2022 Financial Results and Files 2022 Annual Report on Form 20-F
China, May 1, 2023 /Business Wire/ -- Sinovac Biotech Ltd. (NASDAQ: SVA) ("SINOVAC" or the "Company"), a leading
provider of biopharmaceutical products in China, has filed its 2022 annual report on Form 20-F with the U.S. Securities and Exchange Commission
for the year ended December 31, 2022. The Company also reported its unaudited financial for the second half and audited financial for
full year ended December 31, 2022.
Half and Full Year 2022 Financial Summary
Yin, Chairman, President and CEO of SINOVAC, commented "In 2022, we significantly increased our R&D investment and expanded
our global market reach. Our R&D investment nearly tripled, and we are developing various vaccines to prevent over 20 life-threatening
diseases. Growth was maintained in our non-covid business in 2022. We keep executing our business
strategy of expanding our regular business into international market. More than 10 countries granted licenses to our non-COVID vaccines.
In addition, our varicella vaccine and sIPV were successfully passed WHO prequalification assessment in 2022.
"Looking ahead into 2023, we remain confident
in our comprehensive product portfolio and growing business and scientific partnerships. Our mission to supply vaccines to eliminate
human diseases' remains at the forefront, and we are committed to achieving this goal by investing in cutting-edge technology,
expanding our global partnerships, and increasing accessibility to our life-saving vaccines," Mr. Yin added.
Vaccine - CoronaVac , the inactivated COVID-19 vaccine developed by SINOVAC, has been approved for use in more
than 60 countries and regions worldwide. At this time, over 2.9 billion doses of CoronaVac have been delivered globally,
making SINOVAC the largest China-based COVID-19 vaccine provider to the international market.
has been validated by the World Health Organization ("WHO") for extended
use in children as young as three years old under the Emergency Use Listing ("EUL") Procedure, in November 2022. This is the
youngest age that the WHO has validated for EUL of COVID-19 vaccines in the world so far. CoronaVac has also been fully
registered in Hong Kong under the Pharmacy and Poisons Ordinance Cap 138 in December 2022, as one of the first COVID-19 vaccines approved
for such official registration in Hong Kong. Since then, the vaccine can be supplied to registered medical practitioners and institutions
for both private and public markets in Hong Kong.
the results of sufficient real-world studies and clinical trials in various regions and countries confirmed the safety and effectiveness
of CoronaVac for pediatric and adolescent populations, as well as demonstrated that the vaccine was effective in preventing
multiple Omicron waves, particularly for individuals over the age of 60 who received three doses of the vaccine.
Vaccines - Quadrivalent Influenza Vaccine, the latest development of SINOVAC's influenza vaccine family, entered the global
market in 2022 by gaining overseas commercialization approvals. In 2022, the influenza vaccines became SINOVAC's highest revenue
generating non-COVID product for the first time. Recently, a new and state-of-the-art influenza vaccine production facility of SINOVAC
started operations in Beijing. The plant, which complies with Chinese Good Manufacturing Practice (GMP) guidelines and utilizes green
production processes, enables automated production at scale that expands SINOVAC capacity to meet the growing global demand for high-quality
Vaccine - the live attenuated varicella vaccine was prequalified by the WHO in November 2022, marking the first WHO prequalified
Chinese varicella vaccine, and received its first overseas order in 2022.
A Vaccine - Healive , the first and only WHO prequalified hepatitis A vaccine from China, has been registered
in 24 countries and organizations worldwide thus far.
Enterovirus Type 71 (EV71) Vaccine - Inlive , has been authorized for children between the ages of six months
to three-years-old by BPOM, the food and drug agency of Indonesia, in November 2022, which is the first vaccine approved in Indonesia
to protect from hand, foot and mouth diseases (HFMD). This is also Inlive 's first overseas authorization.
Inactivated Polio vaccine ("sIPV") - the Poliomyelitis Vaccine (Vero Cell), Inactivated, Sabin Strains, was prequalified
by WHO in June 2022, and sIPV is available for United Nations (UN) agencies to purchase to support the global polio eradication strategy.
Control - Two quality control laboratories in SINOVAC have been accredited by the China National Accreditation Service for Conformity
Assessment (CNAS) in 2022.
Unaudited Financial Results
for the Second Half of 2022
the second half of 2022 were $280.5 million, compared to $8.4 billion in the prior year period. The decrease was mainly due to decreased
sales of CoronaVac .
general and administrative expenses in the second half of 2022 were $667.7 million, compared to $428.5 million in the prior year period.
expenses in the second half of 2022 were $257.7 million, compared to $101.1 million in the prior year period.
in the second half of 2022 was $702.3 million, compared to net income of $5.9 billion in the prior year period.
attributable to common shareholders was $373.7 million, or a loss of $3.76 per basic and diluted share, in the second half of 2022, compared
to a net income attributable to common shareholders of $3.4 billion, or $33.79 per basic and $29.46 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 loss per share for the second half of 2022 would be $5.17.
adjusted EBITDA was $1.0 billion loss in the second half of 2022, compared to $7.5 billion in the prior year period. Non-GAAP net loss
was $805.8 million in the second half of 2022, compared to $5.9 billion net income in the prior year period. Non-GAAP diluted loss per
share in the second half of 2022 was $3.79 compared to an earnings per share of $29.87 in the prior year period. Non-GAAP diluted loss
per share in the second half of 2022, excluding the implementation of the Rights Agreement and the newly-issued common and preferred shares,
would be $6.02. Reconciliations of non-GAAP measures to the nearest comparable GAAP measures are included at the end of this earnings
second half of 2022 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, 2022
2022 were $1.5 billion, a decrease from $19.4 billion in the prior year. The decrease was due to decreased sales of CoronaVac .
general and administrative expenses in 2022 were $823.5 million, compared to $591.2 million in the prior year.
expenses in 2022 were $442.1 million, compared to $155.0 million in the prior year. The Company continued to invest in the advancement
of pipeline vaccines.
in 2022 was $88.1 million, compared to $14.5 billion in the prior year. Net income decreased primarily due to decreased sales.
attributable to common shareholders was $107.9 million, or $1.08 per basic and $1.00 per diluted share, compared to net income attributable
to common shareholders of $8.5 billion, or $85.20 per basic and $74.27 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 2022 would be $1.59.
adjusted EBITDA was $309.5 million loss in 2022, compared to income of $17.6 billion in the prior year. Non-GAAP net loss in 2022 was
$177.0 million, compared to a net income of $14.5 billion in the prior year. Non-GAAP diluted loss per share in 2022 was $0.37, compared
to an earnings of $74.67 per share in the prior year. Non-GAAP diluted loss per share in 2022, excluding the implementation of the Rights
Agreement and the newly-issued common and preferred shares, would be $0.59 per share. Reconciliations of non-GAAP measures to the nearest
comparable GAAP measures are included at the end of this earnings announcement.
31, 2022, cash and cash equivalents and restricted cash totaled $4.3 billion, compared to $11.6 billion as of December 31, 2021. In 2022,
net cash used in operating activities was $770.7 million, net cash used in investing activities was $5.8 billion, and net cash used in
financing activities was $241.4 million. As of December 31, 2022, the Company had $0.3 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.
On July 13, 2022, 1Globe filed its Notice of Appeal on those grounds on which the Court of Appeal had granted 1Globe leave to appeal.
On September 16, 2022, 1Globe filed an application to the Privy Council seeking permission to amend its existing application for permission
to appeal and its existing Notice of Appeal, and to seek permission to appeal on another ground rejected by the Court of Appeal concerning