SINOVAC Reports Unaudited Second Half of 2021 Financial Results and Files 2021 Annual Report on Form 20-F
Sinovac Biotech Ltd. (NASDAQ: SVA) has filed its 2021 annual report, revealing a significant increase in sales and net income. For the year ended December 31, 2021, sales reached $19.4 billion, up from $510.6 million the previous year. The company posted a net income of $8.5 billion, or $85.20 per basic share. Sales growth was driven by increased demand for its COVID-19 vaccine, CoronaVac®, which has been delivered globally. However, future sales may decline due to increased competition. Sinovac also faces ongoing legal proceedings affecting its share trading.
- Sales increased to $19.4 billion in 2021 from $510.6 million in 2020.
- Net income rose to $8.5 billion, up from $104.4 million the previous year.
- Significant global presence with over 2.8 billion doses of CoronaVac® administered.
- Strong cash position of $11.6 billion as of December 31, 2021.
- Future sales of CoronaVac® may decrease due to heightened competition.
- Increased selling, general and administrative expenses at $591.2 million in 2021, up from $176.5 million.
- Legal proceedings pending that may impact trading of shares.
Second Half and Full Year 2021 Financial Summary
-
Sales for the six months ended
December 31, 2021 were , compared to$8.4 billion in the prior year period.$442.9 million -
Sales in 2021 were
, compared to$19.4 billion in the prior year.$510.6 million -
The Company posted
of net income attributable to common shareholders, or$3.4 billion per basic and$33.79 per diluted share, in the six months ended$29.46 December 31, 2021 , compared to net income attributable to common shareholders of , or$117.0 million per basic and$1.18 per diluted share, in the prior year period.$1.06 -
The Company posted
of net income attributable to common shareholders, or$8.5 billion per basic and$85.20 per diluted share, in 2021, compared to net income attributable to common shareholders of$74.27 , or$104.4 million per basic and$1.06 per diluted share, in the prior year period.$0.97
Mr.
Business Updates
COVID-19 Vaccine – CoronaVac®, the inactivated COVID-19 vaccine developed by SINOVAC, has been granted emergency use approval or conditional market authorization in over 60 countries and regions. At this time, over 2.8 billion doses of CoronaVac® were delivered worldwide, and close to half of CoronaVac® revenues in 2021 were generated from international markets. On
Sabin Inactivated Polio vaccine (“sIPV”) –
23-valent pneumococcal polysaccharide vaccine (“PPV”) – The Company obtained a product license from the NMPA for its 23-valent pneumococcal polysaccharide vaccine at the end of 2020, and the Company commercially launched PPV in the Chinese market in
Unaudited Financial Results for the Second Half of 2021
Sales for the second half of 2021 were
Selling, general and administrative expenses in the second half of 2021 were
R&D expenses in the second half of 2021 were
Net income in the second half of 2021 was
Net income attributable to common shareholders was
As the Company announced on
Non-GAAP adjusted EBITDA was
The Company’s second half of 2021 financial statements are prepared and presented in accordance with
Financial Results for the Twelve Months Ended
Sales in 2021 were
Selling, general and administrative expenses in 2021 were
R&D expenses in 2021 were
Net income in 2021 was
Net income attributable to common shareholders was
Excluding the implementation of the Rights Agreement, as described above, and the newly-issued common and preferred shares, basic and diluted earnings per share for 2021 would be
Non-GAAP adjusted EBITDA was
As of
Legal Proceedings
As previously disclosed by the Company, on
As previously disclosed, on
Separately,
Status of
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
About SINOVAC
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
This announcement contains forward-looking information about the Company’s efforts to develop a potential COVID-19 vaccine that involves substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things, the uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, commencement and/or completion dates for clinical trials, regulatory submission dates, regulatory approval dates and/or launch dates, as well as risks associated with clinical data; the ability to produce comparable clinical or other results, including the rate of vaccine effectiveness and safety and tolerability profile observed to date, in additional analyses of the clinical trials or in larger, more diverse populations upon commercialization; the risk that clinical trial data are subject to differing interpretations and assessments, and by regulatory authorities; the risk that we may not be able to create or scale up manufacturing capacity on a timely basis or have access to logistics or supply channels commensurate with global demand for any potential approved vaccine, which would negatively impact our ability to supply the estimated numbers of doses of our vaccine candidate; uncertainties regarding the ability to obtain recommendations public health authorities; uncertainties regarding the impact of COVID-19 pandemic on our business, operations and financial results; and competitive developments.
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.
Consolidated Balance Sheets As of (Expressed in thousands of |
||||||
Current assets | ||||||
Cash and cash equivalents | $ | 11,608,855 |
$ | 1,041,008 |
||
Restricted cash | 10,905 |
9,196 |
||||
Short-term investments | 1,806,449 |
135,248 |
||||
Accounts receivable - net | 952,402 |
253,487 |
||||
Inventories | 375,511 |
105,813 |
||||
Prepaid expenses and deposits | 160,987 |
15,541 |
||||
Total current assets | 14,915,109 |
1,560,293 |
||||
Property, plant and equipment – net | 903,298 |
200,371 |
||||
Prepaid land lease payments | 39,730 |
8,247 |
||||
Intangible assets - net | 1,480 |
1,474 |
||||
Long-term prepaid expenses | 25 |
25 |
||||
Long-term investments | 655,835 |
- |
||||
Prepayments for acquisition of equipment | 65,290 |
20,192 |
||||
Deferred tax assets | 52,031 |
26,891 |
||||
Right-of-use assets | 115,376 |
83,833 |
||||
Total assets | 16,748,174 |
1,901,326 |
||||
Current liabilities | ||||||
Short-term bank loans and current portion of long-term bank loans | 3,099 |
32,941 |
||||
Loan from a non-controlling shareholder | 1,582 |
6,155 |
||||
Accounts payable and accrued liabilities | 1,020,651 |
211,428 |
||||
Income tax payable | 1,267,504 |
35,262 |
||||
Deferred revenue | 79,941 |
364,005 |
||||
Deferred government grants | 12,559 |
15,159 |
||||
Dividend payable | 17,125 |
11,143 |
||||
Lease liability | 10,385 |
3,517 |
||||
Total current liabilities | 2,412,846 |
679,610 |
||||
Deferred government grants | 4,870 |
4,229 |
||||
Long-term bank loans | 12,668 |
2,155 |
||||
Deferred tax liability | 324,164 |
2,724 |
||||
Loan from a non-controlling shareholder | 4,708 |
6,130 |
||||
Lease liability | 112,465 |
85,488 |
||||
Other non-current liabilities | 444 |
865 |
||||
Total long-term liabilities | 459,319 |
101,591 |
||||
Total liabilities | 2,872,165 |
781,201 |
||||
Commitments and contingencies | ||||||
Equity | ||||||
Preferred stock | 15 |
15 |
||||
Common stock | 100 |
99 |
||||
Additional paid-in capital | 547,691 |
538,924 |
||||
Subscriptions receivable | (7,109) |
(7,109) |
||||
Accumulated other comprehensive income | 130,622 |
19,925 |
||||
Statutory surplus reserves | 1,514,297 |
50,377 |
||||
Accumulated earnings | 7,141,819 |
144,241 |
||||
Total shareholders' equity | 9,327,435 |
746,472 |
||||
Non-controlling interests | 4,548,574 |
373,653 |
||||
Total equity | 13,876,009 |
1,120,125 |
||||
Total liabilities and equity | $ | 16,748,174 |
$ | 1,901,326 |
||
Consolidated Statements of Comprehensive Income For the six and twelve months ended 2021 and 2020 (Expressed in thousands of |
||||||||||||
Six months ended |
Year ended |
|||||||||||
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||
(Unaudited) | (Unaudited) | |||||||||||
Sales | $ | 8,393,848 |
$ | 442,907 |
$ | 19,374,904 |
$ | 510,624 |
||||
Cost of sales | 440,455 |
57,638 |
1,072,221 |
67,180 |
||||||||
Gross profit | 7,953,393 |
385,269 |
18,302,683 |
443,444 |
||||||||
Selling, general and administrative expenses | 428,510 |
130,281 |
591,167 |
176,534 |
||||||||
Provision for doubtful accounts | 3,528 |
1,606 |
2,967 |
2,640 |
||||||||
Research and development expenses | 101,129 |
28,613 |
155,040 |
48,760 |
||||||||
Loss on disposal of property, plant and equipment | 683 |
130 |
977 |
163 |
||||||||
Government grants recognized in income | (39) |
(44) |
(725) |
(297) |
||||||||
Total operating expenses | 533,811 |
160,586 |
749,426 |
227,800 |
||||||||
Operating income | 7,419,582 |
224,683 |
17,553,257 |
215,644 |
||||||||
Interest and financing expenses | (1,314) |
(859) |
(2,836) |
(1,453) |
||||||||
Interest income | 71,764 |
782 |
102,568 |
1,930 |
||||||||
Other income (expense), net | (88,999) |
574 |
(89,948) |
496 |
||||||||
Income before income taxes | 7,401,033 |
225,180 |
17,563,041 |
216,617 |
||||||||
Income tax expense | (1,534,196) |
(31,327) |
(3,104,130) |
(31,438) |
||||||||
Net income | 5,866,837 |
193,853 |
14,458,911 |
185,179 |
||||||||
Less: income attributable to non-controlling interests | (2,507,683) |
(73,862) |
(5,991,431) |
(74,810) |
||||||||
Net income attributable to shareholders of Sinovac | 3,359,154 |
119,991 |
8,467,480 |
110,369 |
||||||||
Preferred stock dividends | (3,024) |
(3,024) |
(5,982) |
(6,015) |
||||||||
Net income attributable to common shareholders of Sinovac | 3,356,130 |
116,967 |
8,461,498 |
104,354 |
||||||||
Net income | 5,866,837 |
193,853 |
14,458,911 |
185,179 |
||||||||
Other comprehensive income, net of tax of nil | ||||||||||||
Foreign currency translation adjustments | 162,103 |
36,373 |
193,098 |
32,328 |
||||||||
Comprehensive income | 6,028,940 |
230,226 |
14,652,009 |
217,507 |
||||||||
Less: comprehensive income attributable to non-controlling interests | (2,578,813) |
(82,765) |
(6,073,832) |
(82,892) |
||||||||
Comprehensive income attributable to shareholders of Sinovac | 3,450,127 |
147,461 |
8,578,177 |
134,615 |
||||||||
Earnings per share | ||||||||||||
Basic net income per share | 33.79 |
1.18 |
85.20 |
1.06 |
||||||||
Diluted net income per share | 29.46 |
1.06 |
74.27 |
0.97 |
||||||||
Weighted average number of shares of common stock outstanding | ||||||||||||
Basic | 99,328,085 |
98,895,425 |
99,311,551 |
98,897,345 |
||||||||
Diluted | 114,022,517 |
113,660,442 |
114,005,983 |
113,662,362 |
||||||||
Consolidated Statements of Cash Flows For the six and twelve months ended 2021 and 2020 (Expressed in thousands of |
|||||||||
Six months ended December 31 | Year ended |
||||||||
2021 |
|
2020 |
|
2021 |
|
2020 |
|||
(Unaudited) | (Unaudited) | ||||||||
Operating activities | |||||||||
Net income | $ | 5,866,837 |
$ | 193,853 |
$ | 14,458,911 |
$ | 185,179 |
|
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Deferred income taxes | 335,990 |
(8,737) |
265,096 |
(11,227) |
|||||
Share-based compensation | 6,223 |
8,702 |
7,735 |
10,203 |
|||||
Inventory provision | 68,700 |
5,357 |
70,133 |
5,816 |
|||||
Provision for doubtful accounts | 3,528 |
1,606 |
2,967 |
2,640 |
|||||
Loss on disposal of property, plant and equipment | 683 |
130 |
977 |
163 |
|||||
Depreciation of property, plant and equipment | 67,920 |
1,369 |
84,446 |
3,693 |
|||||
Amortization of prepaid land lease payments | 831 |
121 |
2,203 |
238 |
|||||
Amortization of intanglible assets | 94 |
106 |
183 |
106 |
|||||
Government grants recognized in income | (39) |
(44) |
(725) |
(297) |
|||||
Changes in: | |||||||||
Accounts receivable | 423,635 |
(133,073) |
(710,355) |
(128,016) |
|||||
Inventories | (32,532) |
(58,869) |
(334,062) |
(77,738) |
|||||
Income tax payable | (111,080) |
29,557 |
1,216,717 |
31,804 |
|||||
Prepaid expenses and deposits | (100,859) |
(8,694) |
(143,324) |
(13,151) |
|||||
Deferred revenue | (255,923) |
340,166 |
(288,779) |
339,329 |
|||||
Accounts payable and accrued liabilities | (8,173) |
124,855 |
720,858 |
131,777 |
|||||
Other non-current liablitites | (431) |
(1,210) |
(440) |
(1,210) |
|||||
Net cash provided by operating activities | 6,265,404 |
495,195 |
15,352,541 |
479,309 |
|||||
Financing activities | |||||||||
Proceeds from bank loans | 165 |
20,181 |
13,511 |
33,227 |
|||||
Repayments of bank loans | (19,534) |
(2,238) |
(33,436) |
(6,041) |
|||||
Proceeds from issuance of common stock, net of share issuance costs | 996 |
1,999 |
1,033 |
1,999 |
|||||
Dividend paid | (1,838,094) |
- |
(1,875,892) |
- |
|||||
Proceeds from subsidiary's financing | - |
526,311 |
- |
541,043 |
|||||
Government grants received | 3,082 |
12,623 |
4,317 |
16,521 |
|||||
Loan from a non-controlling shareholder | 9 |
10,162 |
7,119 |
10,162 |
|||||
Repayments of loan from a non-controlling shareholder | (13,307) |
(4,345) |
(13,332) |
(4,345) |
|||||
Net cash provided by (used in) financing activities | (1,866,683) |
564,693 |
(1,896,680) |
592,566 |
|||||
Investing activities | |||||||||
Purchase of short-term investments | (4,446,838) |
(166,137) |
(8,826,611) |
(201,688) |
|||||
Proceeds from redemption of short-term investments | 5,018,775 |
74,791 |
6,567,491 |
124,562 |
|||||
Proceeds from disposal of equipment | 120 |
3 |
172 |
20 |
|||||
Prepaid land lease payments | (18,596) |
- |
(30,986) |
- |
|||||
Acquisition of property, plant and equipment | (288,338) |
(91,028) |
(719,823) |
(127,486) |
|||||
Acquisition of intangible assets | (154) |
(164) |
(154) |
(164) |
|||||
Purchase of equity investments | (13,663) |
- |
(13,663) |
- |
|||||
Net cash provided by (used in) investing activities | 251,306 |
(182,535) |
(3,023,574) |
(204,756) |
|||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 113,373 |
28,301 |
137,269 |
27,207 |
|||||
Increase in cash and cash equivalents and restricted cash | 4,763,400 |
905,654 |
10,569,556 |
894,326 |
|||||
Cash and cash equivalents and restricted cash, beginning of period | 6,856,360 |
144,550 |
1,050,204 |
155,878 |
|||||
Cash and cash equivalents and restricted cash, end of period | 11,619,760 |
1,050,204 |
11,619,760 |
1,050,204 |
|||||
Reconciliations of Non-GAAP measures to the nearest comparable GAAP measures For the six and twelve months ended 2021 and 2020 (Expressed in thousands of |
||||||||||
Six months ended December 31 | Year ended |
|||||||||
2021 |
|
2020 |
|
|
2021 |
|
2020 |
|||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
Net income | $ | 5,866,837 |
$ | 193,853 |
$ | 14,458,911 |
$ | 185,179 |
||
Adjustments: | ||||||||||
Share-based compensation | 6,223 |
8,702 |
7,735 |
10,203 |
||||||
Depreciation and amortization | 68,845 |
1,596 |
86,832 |
4,037 |
||||||
Interest and financing expenses, net of interest income | (70,450) |
77 |
(99,732) |
(477) |
||||||
Other expense (income), net | 88,999 |
(574) |
89,948 |
(496) |
||||||
Income tax expense | 1,534,196 |
31,327 |
3,104,130 |
31,438 |
||||||
Non-GAAP adjusted EBITDA | 7,494,650 |
234,981 |
17,647,824 |
229,884 |
||||||
Net income | 5,866,837 |
193,853 |
14,458,911 |
185,179 |
||||||
Add: Foreign exchange loss | 73,179 |
1,998 |
68,026 |
1,698 |
||||||
Add: Share-based compensation | 6,223 |
8,702 |
7,735 |
10,203 |
||||||
Non-GAAP net income | 5,946,239 |
204,553 |
14,534,672 |
197,080 |
||||||
Net income attributable to common shareholders of Sinovac | 3,356,130 |
116,967 |
8,461,498 |
104,354 |
||||||
Add: Preferred stock dividends | 3,024 |
3,024 |
5,982 |
6,015 |
||||||
Net income attributable to common shareholders of Sinovac for computing diluted earnings per share | 3,359,154 |
119,991 |
8,467,480 |
110,369 |
||||||
Add: Non-GAAP adjustments to net income | 46,868 |
6,514 |
45,038 |
7,365 |
||||||
Non-GAAP net income attributable to common shareholders of Sinovac for computing non-GAAP diluted earnings per share | 3,406,022 |
126,505 |
8,512,518 |
117,734 |
||||||
Weighted average number of shares on a diluted basis | 114,022,517 |
113,660,442 |
114,005,983 |
113,662,362 |
||||||
Diluted earnings per share | 29.46 |
1.06 |
74.27 |
0.97 |
||||||
Add: Non-GAAP adjustments to net income per share | 0.41 |
0.06 |
0.40 |
0.06 |
||||||
Non-GAAP diluted earnings per share | 29.87 |
1.12 |
74.67 |
1.03 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220429005696/en/
Tel: +86-10-8279-9871 or
+86-10-5693-1897
Fax: +86-10-6296-6910
Email: ir@sinovac.com
Email: william.zima@icrinc.com
Source:
FAQ
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