BEIJING, Aug.12, 2015
/PRNewswire/ -- Sinovac Biotech Ltd. (NASDAQ: SVA), a leading
provider of biopharmaceutical products in China, announced today its unaudited second
quarter and half year financial results for the period ended
June 30, 2015.
Second Quarter 2015 Financial
Highlights
(compared to the second quarter of
2014)
- Quarterly sales were $18.5
million, an increase of 53.1% from $12.1 million in the prior year period.
- Gross profit was $15.1 million,
an increase of 66.6% from $9.1
million in the prior year period.
- Gross margin was 81.6%, compared to 75.0% in the prior year
period.
- Net income attributable to common shareholders was $2.3 million, or $0.04 per basic and diluted share, compared to
net loss attributable to common shareholders of $2.2 million, or $(0.04) per basic and diluted share, in the
second quarter of 2014.
Mr. Weidong Yin, Chairman,
President and CEO of Sinovac, commented, "I am very pleased to
announce our strong sales and profitability during the second
quarter. We continue to execute our strategy to drive sales while
maintaining tight control over our operating costs. Although the
general market environment remains the same as prior quarters, our
sales results in the second quarter exemplify our team's ability to
adjust to challenging market dynamics."
Mr. Yin continued, "Additionally, we continue to move forward in
the approval process for our EV71 vaccine candidate. During July
and August, CFDA inspectors have been conducting the site and GMP
inspections of our manufacturing facility. The site inspection was
completed last week and will be followed by sample testing. Our
projected timing for EV71 commercialization remains unchanged.
"
Business Update
EV71 vaccine. The China Food and Drug Administration
(CFDA) has completed a site inspection and GMP inspection of the
Company's EV71 vaccine manufacturing facility, which will be
followed by sample testing. Once the results of the inspection are
available and the sample vaccine has passed the required testing,
the CFDA will conduct a comprehensive review of the vaccine. Upon
approval, the CFDA will then issue the new drug certificate, and
production and GMP licenses. The Company expects to be able to
bring its first commercial batch of the EV71 vaccine to market
approximately four months after beginning commercial production.
The Company received its site inspection notification in May of
2015.
Unaudited Financial Results for Second
Quarter 2015
|
|
2015
Q2
|
% of
Sales
|
2014
Q2
|
% of
Sales
|
(In USD'000 except
percentage data)
|
Hepatitis A vaccine–
Healive
|
|
8,462
|
45.7%
|
5,113
|
42.3%
|
Hepatitis A&B
vaccine – Bilive
|
|
9,216
|
49.8%
|
6,439
|
53.3%
|
Hepatitis vaccines
subtotal
|
|
17,678
|
95.5%
|
11,552
|
95.6%
|
Influenza vaccine-
Anflu
|
|
526
|
2.8%
|
-
|
-
|
Animal Rabies
vaccine- Rabend
|
|
18
|
0.1%
|
18
|
0.1%
|
Mumps
vaccine
|
|
287
|
1.6%
|
520
|
4.3%
|
Regular
sales
|
|
18,509
|
100.0%
|
12,090
|
100.0%
|
H5N1
|
|
-
|
-
|
-
|
-
|
Total
sales
|
|
18,509
|
100.0%
|
12,090
|
100.0%
|
Cost of goods
sold
|
|
3,407
|
18.4%
|
3,025
|
25.0%
|
Gross
profit
|
|
15,102
|
81.6%
|
9,065
|
75.0%
|
In the second quarter of 2015, total sales were $18.5 million, an increase of 53.1% from
$12.1 million during the same period
of 2014. The sales increase is mainly attributable to increased
sales of Healive and Bilive into the private pay market, and
supported by increased sales into the public market as well.
Gross profit was $15.1 million in
the second quarter of 2015, compared to $9.1
million in the prior year period. Gross margin increased to
81.6% from 75.0% in the prior year period. The gross margin
expansion was primarily due to higher average selling prices of the
Company's hepatitis vaccines in the private pay market and a lower
inventory provision compared to the comparative quarter.
Selling, general and administrative expenses in the second
quarter of 2015 were $9.2 million,
compared to $8.6 million in the same
period of 2014. This increase was mainly due to increased G&A
expenses associated with the trial production of the EV71 vaccine
for the site inspection.
R&D expenses in the second quarter of 2015 were $2.2 million, compared to $3.3 million in the same period of 2014. This
decrease is primarily attributable to an entrance fee incurred
after the signing of the licensing agreement of sIPV production
technology in the second quarter of 2014 and the purchase of the
virus seeds for its sIPV candidate during the same period.
Net income attributable to common shareholders for the second
quarter of 2015 was $2.3 million, or
$ 0.04 per basic and diluted share,
compared to a net loss attributable to common shareholders of
$2.2 million, or $(0.04) per basic and diluted share, in the same
period last year.
Unaudited Financial Results for First Half of
2015
- (In
USD'000 except percentage data)
|
|
2015
H1
|
% of
Sales
|
2014
H1
|
% of
Sales
|
Hepatitis A vaccine –
Healive
|
|
11,385
|
41.0%
|
11,552
|
45.1%
|
Hepatitis A&B
vaccine – Bilive
|
|
14,271
|
51.4%
|
12,437
|
48.5%
|
Hepatitis vaccines
subtotal
|
|
25,656
|
92.4%
|
23,989
|
93.6%
|
Influenza vaccine -
Anflu
|
|
1,112
|
4.0%
|
61
|
0.2%
|
Animal Rabies vaccine
- Rabend
|
|
80
|
0.3%
|
44
|
0.2%
|
Mumps
vaccine
|
|
930
|
3.3%
|
1,440
|
5.6%
|
Regular
sales
|
|
27,778
|
100.0%
|
25,534
|
99.6%
|
|
|
|
|
|
|
H5N1
|
|
-
|
-
|
102
|
0.4%
|
Total
sales
|
|
27,778
|
100.0%
|
25,636
|
100.0%
|
Cost of goods
sold
|
|
5,841
|
21.0%
|
6,303
|
24.6%
|
|
|
|
|
|
|
Gross
profit
|
|
21,937
|
79.0%
|
19,333
|
75.4%
|
Total sales for the first half of 2015 were $27.8 million, an increase of 8.4% from
$25.6 million in the same period of
2014. The increase is primarily due to increased sales of Bilive
into the private pay market.
Gross profit in the first half of 2015 was $21.9 million, an increase of 13.5% from
$19.3 million in the same period of
2014. Gross margin was 79.0% in the first half of 2015, compared to
75.4% in the same period of 2014.
Selling, general and administrative expenses in the first half
of 2015 were $16.1 million,
consistent with $16.4 million in the
same period of 2014.
R&D expenses in the first half of 2015 were $4.4 million, compared to $5.0 million in the same period of 2014. In the
first half of 2015, the R&D expenses incurred by the Company is
mainly attributable to the phase III clinical trial on PPV.
Instead, in the first half of 2014, a substantial portion of the
Company's R&D expenses were related to its sIPV program
as explained above.
Net income attributable to common shareholders in the first half
of 2015 was $20,000, or $0.00 per basic and diluted share, compared to a
net loss of $2.2 million, or
$(0.04) per basic and diluted share,
in the same period of 2014.
As of June 30, 2015, cash and cash
equivalents totaled $64.8 million,
compared to $91.5 million as of
December 31, 2014. Net cash used in
operating activities was $7.8 million
in the first half of 2015. Net cash used in investing activities
was $2.8 million, which was primarily
used for the purchase of property, plant and equipment. Net cash
used in financing activities was $16.1
million during the first half of 2015, representing loan
proceeds of $12.0 million offset by
loan repayments of $28.5
million. As of June 30,
2015, the Company had $32.6
million of bank loans due within one year. When appropriate,
the Company will seek new commercial bank loans to finance the
commercialization of pipeline products, as well as for other
operational purposes.
Conference Call Details
Sinovac will host a conference call on Thursday, August 13, 2015 at 8:00 a.m. ET (August 13,
2015 at 8:00 p.m. China
Standard Time) to review the Company's financial results and
provide an update on recent corporate developments. To access
the conference call, please dial 1-877-407-9039 (USA) or 1-201-689-8470 (International). A
replay of the call will be available from 11:00 a.m. ET on August
13, 2015 through August 27,
2015. To access the replay, please dial 1-877-870-5176
(USA) or 1-858-384-5517
(International) and reference the replay pin number 13616892.
A live audio webcast of the call will also be available on the
Investor Relations section of the Company's website at
www.sinovac.com. A webcast replay will be available on the
Company's website for 30 days following the call.
About Sinovac
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
hepatitis A and B, seasonal influenza, H5N1 pandemic influenza
(avian flu), H1N1 influenza (swine flu), mumps and canine rabies.
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. Sinovac
has filed a new drug application with the China Food & Drug
Administration for its proprietary enterovirus 71 vaccine, having
been proven effective in preventing hand, foot and mouth disease in
infants and children during its phase III clinical trial. The
Company is currently developing a number of new products including
a Sabin-strain inactivated polio vaccine, pneumococcal
polysaccharides vaccine, pneumococcal conjugate vaccine and
varicella vaccine. Sinovac primarily sells its vaccines in
China, while also exploring growth
opportunities in international markets. The Company has exported
select vaccines to Mexico,
Mongolia, Nepal, and the
Philippines, and was recently granted a license to
commercialize its hepatitis A vaccine in Chile. For more information, please visit the
Company's website at www.Sinovac.com .
Contact
Sinovac Biotech Ltd.
Helen
Yang
Tel: +86-10-8279-9871
Fax: +86-10-6296-6910
Email: ir@sinovac.com
ICR Inc.
Bill Zima
U.S: +1 (646) 308-1707
Email: william.zima@icrinc.com
Katherine Knight
Phone: +1 (646) 277-1276
Email: katherine.knight@icrinc.com
SINOVAC BIOTECH
LTD.
|
Consolidated
Balance sheets
|
As of June 30,
2015 and December 31, 2014
|
(Expressed in
thousands of U.S. Dollars, except for numbers of shares and per
share data)
|
|
|
|
Current
assets
|
June 30,
2015
|
December
31,2014
|
|
|
|
Cash and cash
equivalents
|
64,756
|
91,518
|
Accounts receivable –
net
|
44,144
|
40,757
|
Inventories
|
23,228
|
18,832
|
Prepaid expenses and
deposits
|
1,154
|
1,430
|
Deferred tax
assets
|
1,669
|
2,266
|
Total current
assets
|
134,951
|
154,803
|
|
|
|
Property, plant and
equipment
|
67,814
|
68,417
|
Prepaid land lease
payments
|
10,275
|
10,405
|
Long-term
inventories
|
2,650
|
2,648
|
Long-term prepaid
expenses
|
-
|
3
|
Prepayments for
acquisition of equipment
|
1,398
|
1,387
|
Deferred tax
assets
|
445
|
515
|
Licenses
|
176
|
352
|
Total
assets
|
217,709
|
238,530
|
|
|
|
Current
liabilities
|
|
|
Short-term bank loans
and current portion of long-term debt
|
32,640
|
47,375
|
Loan from a
non-controlling shareholder
|
2,595
|
2,595
|
Accounts payable and
accrued liabilities
|
19,565
|
23,237
|
Income tax
payable
|
750
|
1,101
|
Deferred
revenue
|
3,893
|
4,996
|
Deferred government
grants
|
904
|
530
|
Total current
liabilities
|
60,347
|
79,834
|
|
|
|
Deferred government
grants
|
6,463
|
7,494
|
Long-term
debt
|
-
|
1,803
|
Deferred
revenue
|
7,197
|
7,191
|
Other non-current
liabilities
|
479
|
482
|
Total long term
liabilities
|
14,139
|
16,970
|
|
|
|
Total
liabilities
|
74,486
|
96,804
|
|
|
|
Commitments and
contingencies
|
|
|
Equity
|
|
|
Preferred
stock
|
-
|
-
|
Common
stock
|
56
|
56
|
Additional paid-in
capital
|
109,073
|
108,243
|
Accumulated other
comprehensive income
|
12,065
|
12,022
|
Statutory surplus
reserves
|
12,627
|
12,627
|
Accumulated
deficit
|
(6,364)
|
(6,384)
|
Total
shareholders' equity
|
127,457
|
126,564
|
|
|
|
Non-controlling
interests
|
15,766
|
15,162
|
Total
equity
|
143,223
|
141,726
|
Total liabilities
and equity
|
217,709
|
238,530
|
SINOVAC
BIOTECH LTD.
|
Consolidated
Statements of Comprehensive Income (loss)
|
For the three and
six months ended June 30, 2015 and 2014
|
(Unaudited)
|
(Expressed in
thousands of U.S. Dollars, except for numbers of shares and per
share data)
|
|
|
|
|
|
|
|
|
|
Three months
ended June 30
|
|
Six months
ended June 30
|
|
|
2015
|
2014
|
|
2015
|
2014
|
Sales
|
|
18,509
|
12,090
|
|
27,778
|
25,636
|
Cost of
sales
|
|
3,407
|
3,025
|
|
5,841
|
6,303
|
Gross
profit
|
|
15,102
|
9,065
|
|
21,937
|
19,333
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
9,172
|
8,589
|
|
16,093
|
16,381
|
Provision for
doubtful accounts
|
|
173
|
132
|
|
84
|
294
|
Research and
development expenses
|
|
2,221
|
3,265
|
|
4,433
|
4,967
|
Loss (gain) on
disposal and impairment of property, plant and
equipment
|
|
(24)
|
29
|
|
(24)
|
29
|
Government
grants recognized in income
|
|
(437)
|
-
|
|
(443)
|
-
|
Total
operating expenses
|
|
11,105
|
12,015
|
|
20,143
|
21,671
|
Operating
income (loss)
|
|
3,997
|
(2,950)
|
|
1,794
|
(2,338)
|
|
|
|
|
|
|
|
Interest and
financing expenses
|
|
(421)
|
(832)
|
|
(1,009)
|
(1,582)
|
Interest
income
|
|
288
|
765
|
|
715
|
1,545
|
Other
income
|
|
28
|
71
|
|
103
|
217
|
Income
(loss) before income taxes and non-controlling
interests
|
|
3,892
|
(2,946)
|
|
1,603
|
(2,158)
|
Income tax
expense
|
|
(440)
|
(76)
|
|
(991)
|
(423)
|
Net Income
(loss)
|
|
3,452
|
(3,022)
|
|
612
|
(2,581)
|
Less: (Income)
loss attributable to the non-controlling interests
|
(1,181)
|
774
|
|
(592)
|
337
|
Net Income
(loss) attributable to shareholders of
Sinovac
|
|
2,271
|
(2,248)
|
|
20
|
(2,244)
|
|
|
|
|
|
|
|
Other comprehensive income
(loss), net of tax of nil
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
(11)
|
(319)
|
|
55
|
(2,403)
|
Total
comprehensive income (loss)
|
|
3,441
|
(3,341)
|
|
667
|
(4,984)
|
Less:
comprehensive (income) loss attributable to non-controlling
interests
|
|
(1,186)
|
738
|
|
(604)
|
638
|
Comprehensive income (loss) attributable
to
shareholders of Sinovac
|
|
2,255
|
(2,603)
|
|
63
|
(4,346)
|
|
|
|
|
|
|
|
Weighted
average number of shares of common stock
outstanding
|
|
|
|
|
|
|
Basic
|
|
56,019,451
|
55,663,566
|
|
55,974,252
|
55,625,509
|
Diluted
|
|
56,187,591
|
55,663,566
|
|
56,219,495
|
55,625,509
|
|
|
|
|
|
|
|
Earning
(loss) per share
|
|
|
|
|
|
|
Basic
|
|
0.04
|
(0.04)
|
|
0.00
|
(0.04)
|
Diluted
|
|
0.04
|
(0.04)
|
|
0.00
|
(0.04)
|
SINOVAC BIOTECH
LTD.
|
Consolidated
Statements of Cash Flows
|
For the three and
six months ended June 30, 2015 and 2014
|
(Unaudited)
|
(Expressed in
thousands of U.S. Dollars)
|
|
Three months
ended
|
Six months
ended
|
|
June
30
|
June
30
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cash flows
provided by (used in) operating activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
3,452
|
$
|
(3,022)
|
$
|
612
|
$
|
(2,581)
|
Adjustments to
reconcile net income (loss) to net cash
|
|
|
|
|
|
|
|
|
Used in operating
activities:
|
|
|
|
|
|
|
|
|
- deferred
income taxes
|
|
165
|
|
58
|
|
699
|
|
369
|
- stock-based
compensation
|
|
208
|
|
71
|
|
321
|
|
143
|
- inventory
provision
|
|
521
|
|
321
|
|
566
|
|
542
|
- provisionfor
doubtful accounts
|
|
173
|
|
132
|
|
84
|
|
294
|
- loss (gain)
on disposal and impairment of equipment
|
|
(24)
|
|
29
|
|
(24)
|
|
29
|
- government
grants recognized in income
|
|
(437)
|
|
-
|
|
(443)
|
|
-
|
- depreciation
of property, plant and equipment and amortization of
license
|
1,759
|
|
1,903
|
|
3,451
|
|
4,534
|
- amortization
of the prepaid land lease payments
|
|
68
|
|
65
|
|
137
|
|
132
|
- accretion
expenses
|
|
30
|
|
28
|
|
59
|
|
55
|
Changes
in:
|
|
|
|
|
|
|
|
|
- accounts
receivable
|
|
(1,770)
|
|
1,327
|
|
(3,613)
|
|
(3,654)
|
-
inventories
|
|
(3,544)
|
|
(4,905)
|
|
(5,086)
|
|
(7,784)
|
- income tax
payable
|
|
(382)
|
|
-
|
|
(382)
|
|
-
|
- prepaid
expenses and deposits
|
|
(143)
|
|
234
|
|
521
|
|
(348)
|
- deferred
revenue
|
|
(1,104)
|
|
33
|
|
(1,104)
|
|
(685)
|
- accounts
payable and accrued liabilities
|
|
1,446
|
|
(1,889)
|
|
(3,578)
|
|
(2,459)
|
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
|
418
|
|
(5,615)
|
|
(7,780)
|
|
(11,413)
|
|
|
|
|
|
|
|
|
|
Cash flows
provided by (used in) financing activities
|
|
|
|
|
|
|
|
|
- Proceeds from
bank loans
|
|
11,154
|
|
3,182
|
|
11,956
|
|
8,917
|
- Repayments of
bank loans
|
|
(9,138)
|
|
(6,084)
|
|
(28,541)
|
|
(8,542)
|
- Proceeds from
issuance of common stock,
|
|
|
|
|
|
|
|
|
net of
share issuance costs
|
|
237
|
|
147
|
|
500
|
|
252
|
- Proceeds from
shares subscribed
|
|
9
|
|
31
|
|
9
|
|
80
|
- Government
grants received
|
|
6
|
|
185
|
|
9
|
|
185
|
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) financing activities
|
|
2,268
|
|
(2,539)
|
|
(16,067)
|
|
892
|
|
|
|
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
|
|
|
|
|
- Acquisition
of property, plant and equipment
|
|
(1,064)
|
|
(3,479)
|
|
(2,845)
|
|
(5,683)
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(1,064)
|
|
(3,479)
|
|
(2,845)
|
|
(5,683)
|
|
|
|
|
|
|
|
|
|
Exchange gain
(loss) on cash and cash equivalents
|
|
64
|
|
(385)
|
|
(70)
|
|
(1,404)
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
|
1,686
|
|
(12,018)
|
|
(26,762)
|
|
(17,608)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
63,070
|
|
101,652
|
|
91,518
|
|
107,242
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
64,756
|
$
|
89,634
|
$
|
64,756
|
$
|
89,634
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sinovac-reports-unaudited-second-quarter-financial-results-300127464.html
SOURCE Sinovac Biotech Ltd.