SINOVAC Reports Unaudited Second Half of 2023 Financial Results and Files 2023 Annual Report on Form 20-F

Reports Unaudited Second Half of 2023 Financial Results and Files 2023 Annual Report on Form 20-F

China, April 29, 2024 /Business Wire/ -- Sinovac Biotech Ltd. (NASDAQ: SVA) ("SINOVAC" or the "Company"), a leading

provider of biopharmaceutical products in China, has filed its 2023 annual report on Form 20-F with the U.S. Securities and Exchange

Commission for the year ended December 31, 2023. The annual report can be accessed on the Company's investor relations website at http://www.sinovac.com/en-us/Investors.

The Company also reported its unaudited financial results for the second half and audited financial for the full year ended December

Half and Full Year 2023 Financial Summary

A Vaccine - Healive , the first and only WHO prequalified inactivated hepatitis A vaccine from China, is currently

supplied both domestically and internationally. Healive 's performance in public tender market in China was further

Vaccine - A new and state-of-the-art influenza vaccine production line started operations in Beijing. The plant, which complies

with Chinese Good Manufacturing Practice guidelines and utilizes green production processes, enables automated production at scale that

expands SINOVAC's capacity to meet the growing global demand for high-quality influenza vaccines. SINOVAC's influenza vaccines

expand international market accessibility in 2023 by obtaining more overseas market approvals, such as in Pakistan and Chile. A study

conducted recently in the Philippines and Chile demonstrated that the immunogenicity induced by SINOVAC's quadrivalent influenza

vaccine was non-inferior and the geometric mean titers were even higher in individuals aged 3 years and older, when compared with the

control vaccine which was widely used.

Vaccine - SINOVAC's live attenuated varicella vaccine, the first WHO prequalified Chinese varicella vaccine, was successfully

supplied to T rkiye this year. The varicella vaccine was also registered in Lebanon and Kenya in 2023.

Foot and Mouth Disease Vaccine - SINOVAC's Enterovirus 71 (EV71) vaccine, Inlive , has already safeguarded

millions of children in China. In 2023, SINOVAC has initiated phase I clinical trials of its bivalent enterovirus inactivated vaccine,

which aims to protect against hand, foot and mouth disease (HFMD) caused by enterovirus 71 (EV71) and coxsackievirus 16 (CA16).

Developments - We achieved several milestones in the strategic development in 2023. In T rkiye, our first joint venture with

a local partner has successfully completed construction of a vaccine production plant, and a GMP certificate was obtained from the Turkish

Medicines and Medical Devices Agency. In Latin America, we participated in a tender issued by the government of Bogota, Colombia, for

localizing human vaccine production, and we were successfully selected as the exclusive strategic partner with Bogot Bio, a local

vehicle for the localization project, which aims to build the first local human vaccine production facility with municipal partner in

Colombia's capital of Bogota. SINOVAC's extensive expertise and experience in vaccine R&D and production, and its successful

track record in establishing vaccine manufacturing facilities will play a pivotal role in the new venture. At the end of 2023, SINOVAC

completed an investment in Synermore Biologics (Suzhou) Co., Ltd., a company which focuses on the development and production of monoclonal

antibody drugs in the fields of infectious diseases, malignant tumors and autoimmune diseases. The investment marks a key step for SINOVAC

entering into the novel antibody drugs field.

Unaudited Financial Results

for the Second Half of 2023

the second half of 2023 were $307.9 million, compared to $280.5 million in the prior year period. The increase was mainly due to increased

sales of our influenza vaccines.

general and administrative expenses in the second half of 2023 were $235.3 million, compared to $667.7 million in the prior year period.

The decrease was mainly due to lower expenses incurred in the COVID-19 employee incentive plan which was established in 2022.

expenses in the second half of 2023 were $193.4 million, compared to $257.7 million in the prior year period.

in the second half of 2023 was $228.3 million, compared to net loss of $702.3 million in the prior year period.

attributable to common shareholders was $119.9 million, or a loss of $1.20 per basic and diluted share, in the second half of 2023, compared

to a net loss attributable to common shareholders of $373.7 million, or a loss of $3.76 per basic and 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 2023 would be $1.63.

adjusted EBITDA was a loss of $111.6 million in the second half of 2023, compared to a loss of $998.7 million in the prior year period.

Non-GAAP net loss was $183.0 million in the second half of 2023, compared to a net loss of $805.8 million in the prior year period. Non-GAAP

diluted loss per share in the second half of 2023 was $0.93 compared to a loss of $4.38 per share in the prior year period. Non-GAAP diluted

loss per share in the second half of 2023, excluding the implementation of the Rights Agreement and the newly-issued common and preferred

shares, would be $1.29. Reconciliations of non-GAAP measures to the nearest comparable GAAP measures are included at the end of this earnings

financial statements for the second half of 2023 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, 2023

2023 were $448.3 million, a decrease from $1.5 billion in the prior year. The decrease was due to decreased sales of CoronaVac .

general and administrative expenses in 2023 were $466.3 million, compared to $823.5 million in the prior year. The decrease was mainly

due to lower expenses incurred in the COVID-19 employee incentive plan which was established in 2022.

expenses in 2023 were $344.5 million, compared to $442.1 million in the prior year. The Company continued to invest in the advancement

of pipeline vaccines in 2023.

in 2023 was $258.4 million, compared to a net income of $88.1 million in the prior year. Net income decreased primarily due to decreased

attributable to common shareholders was $105.9 million, or a loss of $1.06 per basic and diluted share, compared to net income attributable

to common shareholders of $107.9 million, or $1.08 per basic and $1.00 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 loss

per share for 2023 would be $1.39.

adjusted EBITDA was a loss of $458.3 million in 2023, compared to a loss of $309.5 million in the prior year. Non-GAAP net loss in 2023

was $303.9 million, compared to a net loss of $177.0 million in the prior year. Non-GAAP diluted loss per share in 2023 was $1.32, compared

to a loss of $0.37 per share in the prior year. Non-GAAP diluted loss per share in 2023, excluding the implementation of the Rights Agreement

and the newly-issued common and preferred shares, would be $1.84 per share. Reconciliations of non-GAAP measures to the nearest comparable

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

31, 2023, cash and cash equivalents and restricted cash totaled $1.3 billion, compared to $4.3 billion as of December 31, 2022. In 2023,

net cash provided by operating activities was $104.0 million, net cash used in investing activities was $2.9 billion, and net cash used

in financing activities was $76.1 million. As of December 31, 2023, the Company had $76.1 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

(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. The final substantive hearing before the Privy Council is listed for July 10 to 11, 2024. The judgment

will be reserved and delivered in writing at a later date. The appeal outcome is therefore pending.

previously 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