SINOVAC Reports Unaudited First Half of 2024 Financial Results
First Half of 2024 Financial Summary
-
Sales for the six months ended June 30, 2024 were
, compared to$121.3 million in the prior year period.$140.4 million -
The Company posted
of net loss attributable to common shareholders, or a loss of$10.9 million per basic and diluted share, in the six-month period ended June 30, 2024, compared to net income attributable to common shareholders of$0.11 , or$14.0 million per basic and$0.14 per diluted share, in the prior year period.$0.15 -
Mr. Weidong Yin, Chairman, President and CEO of SINOVAC, commented, “In the first half of the year, SINOVAC focused on executing its regular vaccine business strategies. Although the COVID-19 pandemic is over, there are still challenges from various infectious diseases. SINOVAC provided vaccines in time during the epidemic of hepatitis A and influenza in
Brazil ,Chile and other countries to minimize the shortage of vaccine supplies, continuing our vital role similar to it in the COVID-19 pandemic period. Furthermore, it is great to see other progress in the international market where SINOVAC’s local joint venture won long-term public tenders in Türkiye.”
Business Updates
-
Hepatitis 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 international market substantially grew in the first half of 2024. -
Influenza Vaccine – SINOVAC has two influenza vaccine production plants. The plants, which comply with Chinese Good Manufacturing Practice (or “GMP”) guidelines and utilize environmental-friendly production process, enable automated production at commercial scale so that SINOVAC has more capacity to meet the growing global demand for high-quality influenza vaccines. SINOVAC’s influenza vaccines kept expanding its international market presence in 2024 by obtaining more overseas market approvals, won public tenders in
Pakistan and were supplied toChile for the flu emergency. A study conducted last year inthe Philippines andChile demonstrated that the immunogenicity induced by SINOVAC’s quadrivalent influenza vaccine was non-inferior and the geometric mean titers (or “GMT”) were even higher in individuals aged 3 years and older, when compared with the control vaccine which was widely used. The research result was published in Vaccines in 2024. Furthermore, SINOVAC completed phase III clinical trials of quadrivalent influenza in infants and toddlers aged 6-35 months in the first half of 2024. -
Varicella Vaccine – SINOVAC’s live attenuated varicella vaccine, the first WHO prequalified (or “PQ”) Chinese varicella vaccine, was successfully supplied to more countries this year. SINOVAC's varicella vaccine, which had been previously approved for children aged 12 months to 12 years old, was approved by China NMPA for use in adolescents and adults aged 13 years old and above in June 2024. SINOVAC’s varicella vaccine obtained its first international GMP certificate in
the Philippines in January 2024. -
Hand Foot and Mouth Disease Vaccine – SINOVAC’s Enterovirus 71 (or “EV71”) Vaccine, Inlive®, has already safeguarded millions of children in
China . In 2023, SINOVAC initiated phase I and II clinical trials of its bivalent enterovirus inactivated vaccine, which aims to protect against hand, foot and mouth disease (or “HFMD”) caused by EV71 and coxsackievirus 16 (or “CA16”). CA16 is the dominant strain and is widespread inChina and other Asian regions. At present, the enrollment of all the participants of this study has been completed. Enterovirus Type 71 Vaccine (Vero cell), Inactivated - Inlive®’ project participated by SINOVAC won second prize of the PRC National Science and Technology Progress Award 2023. In 2024, SINOVAC's EV71 vaccine was approved for use inMacao, China . - Poliomyelitis Vaccine (Vero Cell), Inactivated, Sabin Strains – SINOVAC's Poliomyelitis Vaccine (Vero Cell), Inactivated, Sabin Strains (0.5ml/vial) (or "sIPV") received WHO PQ on June 2, 2022. Poliomyelitis Vaccine (Vero Cell), Inactivated, Sabin Strains (Five-Dose) (2.5ml/vial) (or "msIPV") was authorized in April 2024 by the China NMPA for market use. Since msIPV is mainly for UNICEF and PAHO procurement, SINOVAC is currently applying msIPV for WHO PQ approval so supply msIPV to the above international organizations can be achieved at the earliest date.
- Reassortant Rotavirus Vaccine – SINOVAC has initiated phase I clinical trials of its Reassortant Rotavirus Vaccine, Live, Oral, Hexavalent (Vero Cell). The vaccine covers six rotavirus serotypes, G1, G2, G3, G4, G9, and P1A. It is one of the rotavirus vaccines with a broad-spectrum protection currently marketed or under development in the world. By the first half of 2024, this phase I clinical trial has finished enrollment and vaccination of adults and children participants, and enrollment of infants participants is ongoing and expected to be finished in the third quarter of 2024.
-
Adsorbed Tetanus Vaccine – The results of phase I/III clinical study of the adsorbed tetanus vaccine developed by SINOVAC were favorable. The antibody conversion rate of volunteers in the phase III clinical trial reached
99.48% in 30 days after vaccination, which reached the non-inferiority standard; the geometric mean concentration (or “GMC”) of antibodies reached statistical superiority. - Commercial Developments – SINOVAC made significant progress in commercial development in the first half of 2024. In Türkiye, the first overseas joint venture company invested by SINOVAC won two long-term public tenders for the hepatitis A vaccine and varicella vaccine. SINOVAC's extensive expertise and experience in vaccine R&D and production, as well as its successful track record in establishing vaccine facilities, will play a pivotal role in the joint venture.
Unaudited Financial Results for the First Half of 2024
Sales for the first half of 2024 were
Selling, general and administrative expenses in the first half of 2024 were
R&D expenses in the first half of 2024 were
Net loss in the first half of 2024 was
Net loss attributable to common shareholders was
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 loss per share for the first half of 2024 would be
Non-GAAP adjusted EBITDA was
As of June 30, 2024, cash and cash equivalents and restricted cash totaled
The Company’s first half of 2024 financial statements are prepared and presented in accordance with
Legal Proceedings
As previously disclosed by the Company, on March 13, 2018, 1Globe Capital LLC (“1Globe”) filed a complaint against the Company in the
As previously disclosed, on March 5, 2018, the Company filed a lawsuit in the Court of Chancery of the
Separately, Heng Ren Investments LP (“Heng Ren”) filed suits against SINOVAC and Weidong Yin on May 31, 2019 in
On September 6, 2023, MW Gestion, an institutional asset manager based in
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 Judgment and the final disposition of the
About SINOVAC
Sinovac Biotech Ltd. (SINOVAC) is a
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
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
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 (loss) and non-GAAP diluted earnings (loss) per share. 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 (loss) and non-GAAP diluted earnings (loss) per share 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 earnings (loss) per share. SINOVAC believes that non-GAAP adjusted EBITDA, non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share 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 (loss) and non-GAAP diluted earnings (loss) per share should not be considered in isolation or construed as an alternative to income from operations, net income (loss), diluted earnings (loss) per share, 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 (loss) and excludes interest and financing expenses, interest income, net other income (expenses) 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 (loss) represents net income (loss) before share-based compensation expenses and foreign exchange gain or loss.
Non-GAAP diluted earnings (loss) per share represents non-GAAP net income (loss) 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, 2024 and December 31, 2023 | ||||
(Expressed in thousands of |
||||
June 30, 2024 | December 31, 2023 | |||
Current assets | ||||
Cash and cash equivalents | $ | 1,072,350 |
$ | 1,270,131 |
Restricted cash | 2,779 |
5,166 |
||
Short-term investments | 9,502,185 |
9,953,042 |
||
Accounts receivable - net | 370,168 |
440,019 |
||
Inventories | 153,524 |
139,874 |
||
Prepaid expenses and deposits | 12,724 |
11,621 |
||
Amounts due from related parties | 23,847 |
- |
||
Income tax receivable | 10,703 |
10,703 |
||
Total current assets | 11,148,280 |
11,830,556 |
||
Property, plant and equipment – net | 934,614 |
979,617 |
||
Prepaid land lease payments | 62,916 |
65,540 |
||
Intangible assets - net | 7,844 |
8,520 |
||
Long-term prepaid expenses | 24 |
24 |
||
Long-term investments | 681,345 |
684,285 |
||
Prepayments for acquisition of equipment | 4,338 |
6,772 |
||
Deferred tax assets | 32,798 |
29,790 |
||
Right-of-use assets | 15,346 |
45,525 |
||
Other non-current assets | 9,432 |
7,345 |
||
Total assets | 12,896,937 |
13,657,974 |
||
Current liabilities | ||||
Short-term bank loans and current portion of long-term bank loans | 179,349 |
76,089 |
||
Accounts payable and accrued liabilities | 641,579 |
973,949 |
||
Income tax payable | 28,720 |
41,258 |
||
Deferred revenue | 6,173 |
20,127 |
||
Deferred government grants | 805 |
1,586 |
||
Dividend payable | 119,374 |
29,089 |
||
Lease liability | 2,451 |
5,806 |
||
Total current liabilities | 978,451 |
1,147,904 |
||
Deferred government grants | 5,984 |
5,865 |
||
Long-term bank loans | 130,320 |
177,817 |
||
Deferred tax liability | 262,174 |
263,711 |
||
Lease liability | 12,388 |
39,271 |
||
Other non-current liabilities | 429 |
439 |
||
Deferred revenue | 195 |
200 |
||
Total long-term liabilities | 411,490 |
487,303 |
||
Total liabilities | 1,389,941 |
1,635,207 |
||
Commitments and contingencies | ||||
Equity | ||||
Preferred stock | 15 |
15 |
||
Common stock | 100 |
100 |
||
Additional paid-in capital | 541,258 |
541,258 |
||
Accumulated other comprehensive loss | (539,415) |
(490,055) |
||
Statutory surplus reserves | 1,539,584 |
1,539,584 |
||
Accumulated earnings | 7,107,644 |
7,118,516 |
||
Total shareholders' equity | 8,649,186 |
8,709,418 |
||
Non-controlling interests | 2,857,810 |
3,313,349 |
||
Total equity | 11,506,996 |
12,022,767 |
||
Total liabilities and equity | $ | 12,896,937 |
$ | 13,657,974 |
SINOVAC BIOTECH LTD. | ||||
Consolidated Statements of Comprehensive Income (Loss) | ||||
For the six months ended June 30, 2024 and 2023 | ||||
(Expressed in thousands of |
||||
Six months ended June 30 | ||||
2024 |
2023 |
|||
Sales | $ | 121,339 |
$ | 140,404 |
Cost of sales | 40,836 |
188,409 |
||
Gross profit (loss) | 80,503 |
(48,005) |
||
Selling, general and administrative expenses | 206,347 |
231,048 |
||
Provision for (recovery of) doubtful accounts | (663) |
386 |
||
Research and development expenses | 144,052 |
151,132 |
||
Loss on disposal of property, plant and equipment | 5,387 |
312 |
||
Government grants recognized in income | (1,044) |
(92) |
||
Total operating expenses | 354,079 |
382,786 |
||
Operating income (loss) | (273,576) |
(430,791) |
||
Interest and financing expenses | (2,175) |
(264) |
||
Interest income | 44,060 |
29,589 |
||
Other income, net | 166,481 |
337,856 |
||
Loss before income taxes | (65,210) |
(63,610) |
||
Income tax benefit (expense) | (3,432) |
33,597 |
||
Net loss | (68,642) |
(30,013) |
||
Less: loss attributable to non-controlling interests | 60,745 |
46,931 |
||
Net income (loss) attributable to shareholders of Sinovac | (7,897) |
16,918 |
||
Preferred stock dividends | (2,975) |
(2,958) |
||
Net income (loss) attributable to common shareholders of Sinovac | (10,872) |
13,960 |
||
Net loss | (68,642) |
(30,013) |
||
Other comprehensive income, net of tax of nil | ||||
Foreign currency translation adjustments | (194,758) |
(448,477) |
||
Unrealized gain | 69,612 |
6,917 |
||
Comprehensive loss | (193,788) |
(471,573) |
||
Less: comprehensive loss attributable to non-controlling interests | 136,531 |
217,305 |
||
Comprehensive loss attributable to shareholders of Sinovac | (57,257) |
(254,268) |
||
Earnings per share | ||||
Basic net income per share | (0.11) |
0.14 |
||
Diluted net income per share | (0.11) |
0.15 |
||
Weighted average number of shares of common stock outstanding | ||||
Basic | 99,638,043 |
99,576,600 |
||
Diluted | 99,638,043 |
114,227,276 |
SINOVAC BIOTECH LTD. | ||||
Consolidated Statements of Cash Flows | ||||
For the six months ended June 30, 2024 and 2023 | ||||
(Expressed in thousands of |
||||
Six months ended June 30 | ||||
2024 |
2023 |
|||
Operating activities | ||||
Net loss | $ | (68,642) |
$ | (30,013) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Deferred income taxes | (3,718) |
(32,124) |
||
Inventory provision | 8,340 |
12,624 |
||
Provision for (recovery of) doubtful accounts | (663) |
386 |
||
Loss on disposal of property, plant and equipment | 5,387 |
312 |
||
Depreciation of property, plant and equipment | 67,747 |
82,484 |
||
Amortization of prepaid land lease payments | 1,093 |
1,138 |
||
Amortization of intangible assets | 501 |
527 |
||
Government grants recognized in income | (1,044) |
(92) |
||
Loss from equity method investments | 7,640 |
374 |
||
Investment income | (135,971) |
(75,612) |
||
Changes in: | ||||
Accounts receivable | 62,928 |
90,434 |
||
Amounts due from related parties | (23,847) |
- |
||
Inventories | (25,311) |
(23,296) |
||
Other non-current assets | (2,273) |
2,785 |
||
Income tax payable | (11,676) |
(5,824) |
||
Prepaid expenses and deposits | (3,272) |
1,583 |
||
Deferred revenue | (13,595) |
(2,074) |
||
Accounts payables and accrued liabilities | (302,521) |
(47,208) |
||
Deferred governments | - |
(16,813) |
||
Other non-current liabilities | - |
418 |
||
Net cash used in operating activities | (438,897) |
(39,991) |
||
Financing activities | ||||
Proceeds from bank loans | 136,207 |
209,587 |
||
Repayments of bank loans | (74,153) |
(150) |
||
Proceeds from issuance of common stock, net of share issuance costs | - |
676 |
||
Dividend paid to non-controlling shareholders | (233,375) |
(1,616) |
||
Proceeds from subsidiary's financing | ||||
Government grants received | 141 |
8,668 |
||
Repayments of loan from a non-controlling shareholder | - |
(1) | ||
Net cash provided by (used in) financing activities | (171,180) |
217,164 |
||
Investing activities | ||||
Purchase of short-term investments | (3,427,917) |
(6,628,110) |
||
Proceeds from redemption of short-term investments | 3,925,995 |
4,013,372 |
||
Proceeds from disposal of equipment | 107 |
37 |
||
Prepaid land lease payments | - |
- |
||
Acquisition of property, plant and equipment | (57,115) |
(92,942) |
||
Acquisition of intangible assets | (18) |
- |
||
Purchase of long-term investments | (4,224) |
(24,792) |
||
Distributions of equity method investees | - |
1,342 |
||
Proceeds from sale or maturity of long-term investments | - |
146 |
||
Net cash provided by (used in) investing activities | 436,828 |
(2,730,947) |
||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (26,919) |
(85,843) | ||
Decrease in cash and cash equivalents and restricted cash | (200,168) |
(2,639,617) |
||
Cash and cash equivalents and restricted cash, beginning of period | 1,275,297 |
4,286,377 | ||
Cash and cash equivalents and restricted cash, end of period | 1,075,129 |
1,646,760 |
SINOVAC BIOTECH LTD. | ||||
Reconciliations of Non-GAAP measures to the nearest comparable GAAP measures | ||||
For the six months ended June 30, 2024 and 2023 | ||||
(Expressed in thousands of |
||||
Six months ended June 30 | ||||
2024 |
2023 |
|||
(Unaudited) | (Unaudited) | |||
Net loss | $ | (68,642) |
$ | (30,013) |
Adjustments: | ||||
Depreciation and amortization | 69,341 |
84,149 |
||
Interest income, net of interest and financing expenses | (41,885) |
(29,325) |
||
Other income, net | (166,481) |
(337,856) |
||
Income tax expense (benefit) | 3,432 |
(33,597) |
||
Non-GAAP adjusted EBITDA | (204,235) |
(346,642) |
||
Net loss | (68,642) |
(30,013) |
||
Add: Foreign exchange gain | (13,695) |
(90,851) |
||
Non-GAAP net loss | (82,337) |
(120,864) |
||
Net income (loss) attributable to common shareholders of Sinovac | (10,872) |
13,960 |
||
Add: Preferred stock dividends | 2,975 |
2,958 |
||
Net income (loss) attributable to common shareholders of Sinovac for computing diluted earnings per share | (7,897) |
16,918 |
||
Add: Non-GAAP adjustments to net income | (8,191) |
(53,349) |
||
Non-GAAP net income (loss) attributable to common shareholders of Sinovac for computing non-GAAP diluted earnings per share | (16,088) |
(36,431) |
||
Weighted average number of shares on a diluted basis | 99,638,043 |
114,227,276 |
||
Diluted earnings (loss) per share | (0.08) |
0.15 |
||
Add: Non-GAAP adjustments to net income per share | (0.08) |
(0.47) |
||
Non-GAAP diluted loss per share | (0.16) |
(0.32) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240816207828/en/
Sinovac Biotech Ltd.
Helen Yang
Tel: +86-10-8279 9720
Email: ir@sinovac.com
Source: Sinovac Biotech Ltd.