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, 2022.
First Half of 2022 Financial Summary
- Sales for the six-month period ended June 30, 2022 were $1.2
billion, compared to $11.0 billion in the prior year period.
- Net income attributable to common shareholders totaled $481.6
million, or $4.84 per basic and $4.24 per diluted share, in the
six-month period ended June 30, 2022, compared to net income
attributable to common shareholders of $5.1 billion, or $51.42 per
basic and $44.80 per diluted share, in the prior year period.
- Mr. Weidong Yin, Chairman, President and CEO of SINOVAC,
commented, “The COVID-19 pandemic will ultimately end, but the past
three years have again demonstrated the importance of vaccination
to fight against infectious diseases and the global need to build a
resilient health system. SINOVAC is the largest Chinese COVID-19
vaccine provider and is also working to provide accessible
pharmaceutical products to meet increasing worldwide healthcare
demand. In parallel, Sinovac’s regular non-COVID-19 vaccine
business grew 37% year over year. In addition, two products passed
WHO prequalification providing further proof of Sinovac’s overall
vaccine production quality system and creating new commercial
opportunities outside of China. Also in 2022, we invested heavily
into R&D on COVID-19 vaccines in different age groups and
technological platforms. While we have proved that our inactivated
vaccine is safe and effective on children, our recombinant vaccine
candidate is ready for IND.”
Business Updates
COVID-19 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 the
international market.
Notably, CoronaVac® has become the only inactivated COVID-19
vaccine in the world approved for use for children as young as six
months old, after the Secretary of Health of the HKSAR of the PRC
approved the lowering of the minimum age for receiving CoronaVac®
from three years to six months old for "off-label use" in early
August 2022.
By gaining worldwide recognition and approvals, the Company and
its scientific research partners are continuously carrying out a
number of real-world studies and clinical trials in different
countries and regions.
According to a phase III clinical trial of CoronaVac® among
children aged 6 to 35 months, a high level of antibody positive
conversion was observed with the antibody level equal to, or higher
than that of adults.
In 2022, study results have also confirmed the safety and
effectiveness of CoronaVac® for pediatric and adolescent
populations in Chile, as well as the adequate prevention from three
doses of SINOVAC COVID-19 vaccine, especially for individuals over
60 years old, from several Omicron waves in Hong Kong.
Sabin Inactivated Polio Vaccine (“sIPV”) – the
Poliomyelitis Vaccine (Vero Cell), inactivated, Sabin strains, was
prequalified by the World Health Organization (“WHO”) in June 2022,
and sIPV is now available for United Nations (UN) agencies to
purchase to support the global polio endgame strategy.
Hepatitis A Vaccine – Healive®, the first and only WHO
prequalified hepatitis A vaccine from China, celebrated its 20th
anniversary of market launch in July 2022. With more nations’
healthcare authorities’ approvals, such as Kenya and Indonesia this
year, Healive® has been registered in 21 countries and
organizations around the world and authorized to be administered in
33 countries and regions, to susceptible individuals over 12 months
old.
Varicella Vaccine – the live attenuated varicella vaccine
was prequalified by WHO in November 2022, marking the first WHO
prequalified Chinese varicella vaccine, and the fourth SINOVAC
vaccine to receive WHO approval.
Quadrivalent Influenza Vaccine (“QIV”) – the latest
development of SINOVAC's influenza vaccine product family, entered
the global market this year, by gaining a couple of overseas
commercialization approvals. A phase III clinical trial for QIV was
initiated in Chile through a collaboration with the Pontificia
Universidad Católica de Chile in July.
Unaudited Financial Results for the First Half of
2022
Sales for the first half of 2022 were $1.2 billion, compared to
$11.0 billion in the prior year period. The decrease was due to the
lower sales of CoronaVac® as the initial two-dosage vaccination
schedules were completed around the globe in 2021 and third booster
shots were only administered in certain countries including China
in 2022. Sales of non-pandemic vaccines increased 37% from $128
million to $ 176 million on broad-based growth, especially in
seasonal influenza vaccine.
Selling, general and administrative expenses in the first half
of 2022 were $155.9 million, compared to $162.7 million in the
prior year period. Selling, general and administrative expenses did
not decrease in proportion to total sales as expenses incurred to
sell CoronaVac® in the comparative period were a relatively low
proportion of CoronaVac® revenues.
R&D expenses in the first half of 2022 were $184.4 million,
compared to $53.9 million in the prior year period. The increase
was due to the largely invested into R&D on COVID-19 vaccines
and overseas clinical trials of regular products.
Net income in the first half of 2022 was $790.4 million,
compared to $8.6 billion in the prior year period.
Net income attributable to common shareholders was $481.6
million, or $4.84 per basic and $4.24 per diluted share, in the
first half of 2022, compared to a net income attributable to common
shareholders of $5.1 billion, or $51.42 per basic and $44.80 per
diluted share, in the prior year period.
As the Company 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 2022 would be $6.76 and
$5.61, respectively.
Non-GAAP adjusted EBITDA was $691.3 million in the first half of
2022, compared to $10.2 billion in the prior year period. Non-GAAP
net income was $628.8 million in the first half of 2022, compared
to $8.6 billion in the prior year period. Non-GAAP diluted earnings
per share in the first half of 2022 was $3.41 compared to $44.78
per share in the prior year period. Non-GAAP diluted earnings per
share in the first half of 2022, excluding the implementation of
the Rights Agreement and the newly-issued common and preferred
shares, would be $4.51. Reconciliations of non-GAAP measures to the
nearest comparable GAAP measures are included at the end of this
earnings announcement.
As of June 30, 2022, cash and cash equivalents and restricted
cash totaled $6.9 billion, compared to $11.6 billion as of December
31, 2021. In the first half of 2022, net cash used in operating
activities was $808.2 million, net cash used in investing
activities was $3.6 billion and net cash provided by financing
activities was $11.7 million.
The Company’s first 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.
Legal Proceedings
Antigua Litigation
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 fully in
favor of the Company, 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. The Court of Appeal also confirmed that
SINOVAC’s Rights Agreement was consistent with its Articles of
Incorporation and By-laws, and Antiguan business law. In January
2022, the Court of Appeal extended the order initially made on
April 4, 2019, that restrains SINOVAC from taking further action
under its Rights Agreement, including the distribution of the
previously issued Exchange Shares, until the conclusion of any
appeal to the Privy Council. 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 the exercise of
the Antigua Court’s discretion. Sinovac responded on October 21,
2022, and the parties now await a decision from the Privy Council
upon these procedural applications. 1Globe has not yet taken steps
to list a substantive hearing before the Privy Council.
US Litigation
As 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.
Separately, Heng Ren Investments LP (“Heng Ren”) filed suit
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
Massachusetts federal court. 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 in connection with the
private placement of SINOVAC common shares (the “PIPE”) with
private investors in 2018. Heng Ren requested damages, attorney
fees, and prejudgment interest. In July 2021, SINOVAC moved to
dismiss Heng Ren’s amended complaint. On March 4, 2022, the court
granted the motion as to the breach of fiduciary duty claims,
denied the motion as to the wrongful equity dilution claim, and
denied reconsideration of its decision on the motion. SINOVAC had
answered the complaint, and the litigation is pending.
On December 5, 2022, a purported shareholder filed a putative
class action complaint in Massachusetts federal court, asserting a
claim under Section 204 of the Antigua and Barbuda International
Business Corporations Act related to the PIPE transaction, alleging
that all shareholders were harmed in an identical manner to one
another by the PIPE transaction because the shares that were issued
in the PIPE transaction allegedly undervalued the Company and all
shareholders were purportedly wrongfully diluted as a result. The
purported shareholder is represented by the same attorney who
represents Heng Ren, and requests damages, attorneys’ fees, and
prejudgment interest. The matter is in preliminary stages.
PRC Litigation
On May 16, 2018, Sinovac Hong Kong filed a complaint against
Sinobioway Medicine, Mr. Aihua Pan, and Shandong Sinobioway
Biomedicine Co., Ltd. in the Beijing Fourth Court. The complaint
sought to hold the defendants jointly and severally liable for the
torts they committed during an attempt of the defendants to take
physical control of our facility in Shangdi site in Beijing on
April 17, 2018. Later, Sinovac Hong Kong made an application to the
court to add Sinovac Beijing as a third party to participate in the
proceedings. The court has granted an order, permitting Sinovac
Beijing to participate in the proceedings as a third party. At the
hearing held on July 2, 2019, Sinovac Hong Kong, the defendants and
Sinovac Beijing cross-examined the evidences submitted by each
party. Based on the result of the cross-examination, the court
declared that an independent evaluation firm shall be engaged by
both the defendants and Sinovac Hong Kong to evaluate the losses
and damages sustained by Sinovac Beijing as the result of the
actions taken by the defendants on April 17, 2019. An independent
evaluation firm was selected by the court and the evaluation was
conducted accordingly. On September 17, 2020, the Beijing Fourth
Court issued a judgment holding Sinobioway Medicine and Mr. Aihua
Pan liable for torts and breaches of shareholders fiduciary duty
under the PRC Company Law and liable for Sinovac Beijing’s losses
of RMB15.4 million caused by their disruptive actions. Sinovac
Beijing, Sinobioway Medicine and Mr. Aihua Pan filed notice to
appeal to the Higher People’s Court of Beijing Municipality. On
October 31, 2022, the Higher People’s Court of Beijing Municipality
issued a judgment in favor of Sinovac Hong Kong, upholding the
judgment issued by the Beijing Fourth Court and ruling that
Shandong Sinobioway Biomedicine, as the sole shareholder of
Sinobioway Medicine, is jointly and severally liable for all the
relevant obligations of Sinobioway Medicine to Sinovac Hong
Kong.
On November 15, 2021, Sinobioway Medicine filed a complaint
against Sinovac Beijing and Sinovac Hong Kong in Beijing Fourth
Court. The complaint sought to dissolve and liquidate Sinovac
Beijing with the argument that the board of directors of Sinovac
Beijing has been unable to function for the benefit of the company
and the two shareholders of Sinovac Beijing have gotten into a
deadlock. The case is pending.
In November 2021, Sinobioway Medicine filed a complaint against
Sinovac LS, Sinovac Hong Kong, Mr. Weidong Yin and Keding
Investment (Hong Kong) Limited with the Beijing Fourth Court,
claiming that Sinovac LS has infringed the legitimate rights of
Sinovac Beijing when doing the research and development of
CoronaVac. Sinobioway Medicine listed Sinovac Beijing as a third
party in the case. The case is pending.
Status of Exchange Shares and Trading in the Company’s
Shares
As a result 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.
The Holding Foreign Companies Accountable Act
Our auditor, Grant Thornton Zhitong Certified Public Accountants
LLP, is an independent registered public accounting firm. In
December 2020, the US Congress enacted the Holding Foreign
Companies Accountable Act (“HFCAA”), which directs the US
Securities and Exchange Commission (the “SEC”) to delist from US
stock exchanges any company if the company’s principal audit firm
is in a country in which the US Public Company Accounting Oversight
Board (“PCAOB”) is unable to conduct a complete inspection of the
firm. In December 2021, the PCAOB published a report providing its
view that authorities in China and Hong Kong prevented the PCAOB
from inspecting audit firms headquartered in China and Hong Kong.
The list of audit firms included our auditor. However, on December
15, 2022, the PCAOB announced that it was effectively reversing its
determination that it is unable to inspect audit firms based in
Mainland China and Hong Kong. The PCAOB’s action follows an August
2022 agreement among the PCAOB, the China Securities Regulatory
Commission (“CSRC”) and the Ministry of Finance of the PRC (“MOF”)
that provided a framework for PCAOB inspections and several weeks
of on-the-ground work by PCAOB staff in Hong Kong to conduct those
inspections. In December 2022, congressional action shortened the
HFCAA timeline for a potential trading prohibition from three years
to two years. Despite the reversal from the PCAOB, the SEC
indicated that the PCAOB’s inspection work of audit firms in China
must continue in order to avoid having companies again face a
potential delisting under the HFCAA, and China-based companies that
list in the United States are expected to provide specific and
prominent disclosures about heightened operational and legal risks
associated with their business.
About SINOVAC
Sinovac Biotech Ltd. (SINOVAC) is a China-based
biopharmaceutical company that focuses on the R&D,
manufacturing, and commercialization of vaccines that protect
against human infectious diseases.
SINOVAC’s product portfolio includes vaccines against COVID-19,
enterovirus 71 (EV71) infected hand-foot-mouth disease (HFMD),
hepatitis A, varicella, influenza, poliomyelitis, pneumococcal
disease, mumps, etc.
The COVID-19 vaccine, CoronaVac®, has been approved for use in
more than 60 countries and regions worldwide. The hepatitis A
vaccine, Healive®, passed WHO prequalification requirements in
2017. The EV71 vaccine, Inlive®, is an innovative vaccine under
"Category 1 Preventative Biological Products" and commercialized in
China in 2016. In 2022, SINOVAC’s Sabin-strain inactivated polio
vaccine (sIPV) and varicella vaccine were prequalified by the
WHO.
SINOVAC was the first company to be granted approval for its
H1N1 influenza vaccine Panflu.1®, which has supplied the Chinese
government's vaccination campaign and stockpiling program. The
Company is also the only supplier of the H5N1 pandemic influenza
vaccine, Panflu®, to the Chinese government stockpiling
program.
SINOVAC continually dedicates itself to new vaccine R&D,
with more combination vaccine products in its pipeline, and
constantly explores global market opportunities. SINOVAC plans to
conduct more extensive and in-depth trade and cooperation with
additional countries, and business and industry organizations.
For more information, please visit the Company’s website at
www.sinovac.com.
Safe Harbor Statement
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 any litigation is uncertain, and the Company cannot predict the
potential results of the litigation it filed or filed against it by
others. Additionally, the triggering of a shareholder rights plan
is nearly unprecedented, and the Company cannot predict the impact
on the Company or its stock price as a result of the trigger of the
rights plan.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are
prepared and presented in accordance with GAAP, SINOVAC uses the
following non-GAAP financial measures: non-GAAP adjusted EBITDA,
non-GAAP net income and non-GAAP diluted EPS. For more information
on these non-GAAP financial measures, please refer to the table
captioned “Reconciliations of non-GAAP Measures to the Nearest
Comparable GAAP Measures” in this results announcement.
SINOVAC believes that non-GAAP adjusted EBITDA, non-GAAP net
income and non-GAAP diluted EPS help identify underlying trends in
its business that could otherwise be distorted by the effect of
certain income or expenses that SINOVAC includes in net income and
diluted EPS. SINOVAC believes that non-GAAP adjusted EBITDA,
non-GAAP net income and non-GAAP diluted EPS provide useful
information about its core operating results, enhance the overall
understanding of its past performance and future prospects and
allow for greater visibility with respect to key metrics used by
our management in its financial and operational decision-making.
Non-GAAP adjusted EBITDA, non-GAAP net income and non-GAAP diluted
EPS should not be considered in isolation or construed as an
alternative to income from operations, net income, diluted EPS, or
any other measure of performance or as an indicator of SINOVAC’s
operating performance. These non-GAAP financial measures presented
here may not be comparable to similarly titled measures presented
by other companies. Other companies may calculate similarly titled
measures differently, limiting their usefulness as comparative
measures to our data.
Non-GAAP adjusted EBITDA represents net income and
excludes interest and financing expenses, interest income, net
other income and income tax benefit (expenses), and certain
non-cash expenses, consisting of share-based compensation expenses,
amortization and depreciation that SINOVAC does not believe are
reflective of the core operating performance during the periods
presented.
Non-GAAP net income represents net income before
share-based compensation expenses and foreign exchange gain or
loss.
Non-GAAP diluted EPS represents non-GAAP net income
attributable to common shareholders divided by the weighted average
number of shares outstanding during the periods on a diluted basis,
including accounting for the effect of the assumed conversion of
options.
SINOVAC BIOTECH LTD.
Consolidated Balance
Sheets
As of June 30, 2022 and
December 31, 2021
(Expressed in thousands of
U.S. Dollars)
June 30, 2022
December 31, 2021
(Unaudited)
Current assets
Cash and cash equivalents
$
6,857,905
$
11,608,855
Restricted cash
9,189
10,905
Short-term investments
4,988,240
1,806,449
Accounts receivable - net
969,561
952,402
Inventories
266,864
375,511
Prepaid expenses and deposits
23,328
160,987
Total current assets
13,115,087
14,915,109
Property, plant and equipment – net
949,422
903,298
Prepaid land lease payments
44,932
39,730
Intangible assets - net
1,315
1,480
Long-term prepaid expenses
24
25
Long-term investments
697,115
655,835
Prepayments for acquisition of
equipment
129,721
65,290
Deferred tax assets
64,821
52,031
Right-of-use assets
63,347
115,376
Total assets
15,065,784
16,748,174
Current liabilities
Short-term bank loans and current portion
of long-term bank loans
104
3,099
Loan from a non-controlling
shareholder
1,501
1,582
Accounts payable and accrued
liabilities
334,294
1,020,651
Income tax payable
158,540
1,267,504
Deferred revenue
32,763
79,941
Deferred government grants
11,209
12,559
Dividend payable
20,083
17,125
Lease liability
6,367
10,385
Total current liabilities
564,861
2,412,846
Deferred government grants
7,265
4,870
Long-term bank loans
12,150
12,668
Deferred tax liability
325,917
324,164
Loan from a non-controlling
shareholder
4,479
4,708
Lease liability
57,118
112,465
Other non-current liabilities
137
444
Total long-term liabilities
407,066
459,319
Total liabilities
971,927
2,872,165
Commitments and contingencies
Equity
Preferred stock
15
15
Common stock
100
100
Additional paid-in capital
547,691
547,691
Subscriptions receivable
-
(7,109
)
Accumulated other comprehensive income
(loss)
(217,469
)
130,622
Statutory surplus reserves
1,514,297
1,514,297
Accumulated earnings
7,623,373
7,141,819
Total shareholders' equity
9,468,007
9,327,435
Non-controlling interests
4,625,850
4,548,574
Total equity
14,093,857
13,876,009
Total liabilities and equity
$
15,065,784
$
16,748,174
SINOVAC BIOTECH LTD.
Consolidated Statements of
Comprehensive Income
For the six months ended 2022
and 2021
(Expressed in thousands of
U.S. Dollars, except for numbers of shares and per share
data)
Six months ended June
30
2022
2021
(Unaudited)
(Unaudited)
Sales
$
1,212,290
$
10,981,056
Cost of sales
254,362
631,766
Gross profit
957,928
10,349,290
Selling, general and administrative
expenses
155,880
162,657
Provision (recovery) for doubtful
accounts
807
(561
)
Research and development expenses
184,394
53,911
Loss on disposal of property, plant and
equipment
3,286
294
Government grants recognized in income
(14
)
(686
)
Total operating expenses
344,353
215,615
Operating income
613,575
10,133,675
Interest and financing expenses
(623
)
(1,522
)
Interest income
83,998
30,804
Other income (expense), net
229,458
(949
)
Income before income taxes
926,408
10,162,008
Income tax expense
(135,962
)
(1,569,934
)
Net income
790,446
8,592,074
Less: income attributable to
non-controlling interests
(305,934
)
(3,483,748
)
Net income attributable to shareholders
of Sinovac
484,512
5,108,326
Preferred stock dividends
(2,958
)
(2,958
)
Net income attributable to common
shareholders of Sinovac
481,554
5,105,368
Net income
790,446
8,592,074
Other comprehensive income, net of tax
of nil
Foreign currency translation
adjustments
(579,251
)
30,995
Comprehensive income
211,195
8,623,069
Less: comprehensive income attributable to
non-controlling interests
(74,774
)
(3,495,019
)
Comprehensive income attributable to
shareholders of Sinovac
136,421
5,128,050
Earnings per share
Basic net income per share
4.84
51.42
Diluted net income per share
4.24
44.80
Weighted average number of shares of
common stock outstanding
Basic
99,502,243
99,294,743
Diluted
114,172,782
114,013,068
SINOVAC BIOTECH LTD.
Consolidated Statements of
Cash Flows
For the six months ended 2022
and 2021
(Expressed in thousands of
U.S. Dollars)
Six months ended June
30
2022
2021
(Unaudited)
(Unaudited)
Operating activities
Net income
$
790,446
$
8,592,074
Adjustments to reconcile net income to net
cash provided by operating activities:
Deferred income taxes
(15,837
)
(70,894
)
Share-based compensation
-
1,512
Inventory provision
56,203
1,433
Provision (recovery) for doubtful
accounts
807
(561
)
Loss on disposal of property, plant and
equipment
3,286
294
Depreciation of property, plant and
equipment
75,159
16,526
Amortization of prepaid land lease
payments
2,503
1,372
Amortization of intangible assets
97
89
Government grants recognized in income
(14
)
(686
)
Changes in:
Accounts receivable
(140,015
)
(1,133,990
)
Inventories
37,251
(301,530
)
Income tax payable
(1,083,624
)
1,327,797
Prepaid expenses and deposits
133,914
(42,465
)
Deferred revenue
(45,121
)
(32,856
)
Accounts payable and accrued
liabilities
(622,923
)
729,031
Other non-current liabilities
(298
)
(9
)
Net cash provided by (used in)
operating activities
(808,166
)
9,087,137
Financing activities
Proceeds from bank loans
199
13,346
Repayments of bank loans
(3,038
)
(13,902
)
Proceeds from shares subscribed
-
37
Dividend paid to non-controlling
shareholders
(2,469
)
(37,798
)
Proceeds from subsidiary's financing
12,000
-
Government grants received
5,021
1,235
Loan from a non-controlling
shareholder
-
7,110
Repayments of loan from a non-controlling
shareholder
(12
)
(25
)
Net cash provided by (used in)
financing activities
11,701
(29,997
)
Investing activities
Purchase of short-term investments
(15,123,334
)
(4,379,773
)
Proceeds from redemption of short-term
investments
11,890,425
1,548,716
Proceeds from disposal of equipment
603
52
Prepaid land lease payments
(9,658
)
(12,390
)
Acquisition of property, plant and
equipment
(279,398
)
(431,485
)
Purchase of long-term investments
(63,280
)
-
Net cash used in investing
activities
(3,584,642
)
(3,274,880
)
Effect of exchange rate changes on cash
and cash equivalents and restricted cash
(371,559
)
23,896
Increase (decrease) in cash and cash
equivalents and restricted cash
(4,752,666
)
5,806,156
Cash and cash equivalents and
restricted cash, beginning of period
11,619,760
1,050,204
Cash and cash equivalents and
restricted cash, end of period
6,867,094
6,856,360
SINOVAC BIOTECH LTD.
Reconciliations of Non-GAAP
measures to the nearest comparable GAAP measures
For the six months ended 2022
and 2021
(Expressed in thousands of
U.S. Dollars, except for numbers of shares and per share
data)
Six months ended June
30
2022
2021
(Unaudited)
(Unaudited)
Net income
$
790,446
$
8,592,074
Adjustments:
Share-based compensation
-
1,512
Depreciation and amortization
77,759
17,987
Interest and financing expenses, net of
interest income
(83,375
)
(29,282
)
Other expense (income), net
(229,458
)
949
Income tax expense
135,962
1,569,934
Non-GAAP adjusted EBITDA
691,334
10,153,174
Net income
790,446
8,592,074
Less: Foreign exchange gain
(161,619
)
(5,153
)
Add: Share-based compensation
-
1,512
Non-GAAP net income
628,827
8,588,433
Net income attributable to common
shareholders of Sinovac
481,554
5,105,368
Add: Preferred stock dividends
2,958
2,958
Net income attributable to common
shareholders of Sinovac for computing diluted earnings per
share
484,512
5,108,326
Add: Non-GAAP adjustments to net
income
(95,093
)
(1,830
)
Non-GAAP net income attributable to
common shareholders of Sinovac for computing non-GAAP diluted
earnings per share
389,419
5,106,496
Weighted average number of shares on a
diluted basis
114,172,782
114,013,068
Diluted earnings per share
4.24
44.80
Add: Non-GAAP adjustments to net income
per share
(0.83
)
(0.02
)
Non-GAAP diluted earnings per
share
3.41
44.78
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221229005095/en/
Sinovac Biotech Ltd. Helen Yang Tel: +86-10-8279-9871 or
+86-10-5693-1897 Fax: +86-10-6296-6910 Email: ir@sinovac.com ICR
Inc. Bill Zima U.S.: 1-646-308-1707 Email:
william.zima@icrinc.com
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