SINOVAC Reports Unaudited Second Half of 2023 Financial Results and Files 2023 Annual Report on Form 20-F
Sinovac Biotech (NASDAQ: SVA) reported its unaudited financial results for the second half and audited financial results for the full year of 2023. Sales for the six months ended December 31, 2023, were $307.9 million, with a net loss of $119.9 million. For the full year of 2023, sales were $448.3 million, with a net loss of $105.9 million. The company's strategic developments included achievements in vaccine production, expansion into new markets, and investments in monoclonal antibody drugs. Legal proceedings with 1Globe Capital and Heng Ren Investments LP are ongoing, impacting the trading of the company's shares on the Nasdaq Stock Market
Sinovac Biotech reported a sales increase for the second half of 2023, reaching $307.9 million, driven by higher sales of influenza vaccines.
Sinovac expanded its international market access for influenza vaccines with approvals in countries like Pakistan and Chile.
The company's strategic developments in 2023 included successful joint ventures in vaccine production in Türkiye and Latin America, positioning Sinovac as a key player in vaccine R&D and production.
Sinovac Biotech experienced a significant decrease in sales for the full year of 2023, down to $448.3 million from $1.5 billion in the previous year, primarily due to decreased sales of CoronaVac®.
The company reported a net loss of $105.9 million for the full year of 2023, compared to a net income of $107.9 million in the prior year, reflecting a challenging financial performance.
Legal proceedings with 1Globe Capital and Heng Ren Investments LP have impacted the trading of Sinovac's shares on the Nasdaq Stock Market , causing uncertainty in the market.
Second Half and Full Year 2023 Financial Summary
-
Sales for the six months ended December 31, 2023 were
, compared to$307.9 million in the prior year period.$280.5 million -
Sales in 2023 were
, compared to$448.3 million in the prior year.$1.5 billion -
The Company posted
of net loss attributable to common shareholders, or a loss of$119.9 million per basic and diluted share, in the six months ended December 31, 2023, compared to net loss attributable to common shareholders of$1.20 , or a loss of$373.7 million per basic and diluted share, in the prior year period.$3.76 -
The Company posted
of net loss attributable to common shareholders, or a loss of$105.9 million per basic and diluted share in 2023, compared to net income attributable to common shareholders of$1.06 , or$107.9 million per basic and$1.08 per diluted share, in the prior year period.$1.00 -
Mr. Weidong Yin, Chairman, President and CEO of SINOVAC, commented “In 2023, SINOVAC has gradually adjusted from the state of mass supply of COVID-19 vaccine against pandemic back to normal operational status. I am pleased to see that the top line of our regular products still maintained growth in the year of 2023. After experiencing three years of the COVID-19 pandemic, the world is still facing the threat of various infectious diseases in 2023. As a leading biopharmaceutical products provider in
China , SINOVAC continues to invest additional resources in R&D and production of vaccines, and keeps exploring additional opportunities in a broader biopharmaceutical industry. It is great to see every progress of our pipeline products, such as the recent approval of 5-dose sIPV from National Medical Products Administration (NMPA) and the approval of clinical trial for reassortant hexavalent rotavirus vaccine. Meanwhile, we are maintaining a strong international presence by providing high quality vaccines and localized production outside of China.”
Business Updates
Hepatitis A Vaccine – Healive®, the first and only WHO prequalified inactivated hepatitis A vaccine from
Influenza Vaccine – A new and state-of-the-art influenza vaccine production line started operations in
Varicella Vaccine – SINOVAC’s live attenuated varicella vaccine, the first WHO prequalified Chinese varicella vaccine, was successfully supplied to Türkiye this year. The varicella vaccine was also registered in
Hand Foot and Mouth Disease Vaccine – SINOVAC’s Enterovirus 71 (EV71) vaccine, Inlive®, has already safeguarded millions of children in
Strategic Developments - We achieved several milestones in the strategic development in 2023. In Türkiye, 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
Unaudited Financial Results for the Second Half of 2023
Sales for the second half of 2023 were
Selling, general and administrative expenses in the second half of 2023 were
R&D expenses in the second half of 2023 were
Net loss in the second half of 2023 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 second half of 2023 would be
Non-GAAP adjusted EBITDA was a loss of
The Company’s financial statements for the second half of 2023 are prepared and presented in accordance with
Financial Results for the Twelve Months Ended December 31, 2023
Sales in 2023 were
Selling, general and administrative expenses in 2023 were
R&D expenses in 2023 were
Net loss in 2023 was
Net loss 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 loss per share for 2023 would be
Non-GAAP adjusted EBITDA was a loss of
As of December 31, 2023, cash and cash equivalents and restricted cash totaled
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 December 31, 2023 and 2022 | ||||
(Expressed in thousands of |
||||
December 31, 2023 | December 31, 2022 | |||
Current assets | ||||
Cash and cash equivalents | $ | 1,270,131 |
$ | 4,278,124 |
Restricted cash | 5,166 |
8,253 |
||
Short-term investments | 9,953,042 |
7,034,569 |
||
Accounts receivable - net | 440,019 |
537,118 |
||
Inventories | 139,874 |
180,719 |
||
Prepaid expenses and deposits | 11,621 |
15,242 |
||
Income tax receivable | 10,703 |
72,371 |
||
Total current assets | 11,830,556 |
12,126,396 |
||
Property, plant and equipment – net | 979,617 |
993,781 |
||
Prepaid land lease payments | 65,540 |
69,815 |
||
Intangible assets - net | 8,520 |
9,699 |
||
Long-term prepaid expenses | 24 |
23 |
||
Long-term investments | 684,285 |
661,440 |
||
Prepayments for acquisition of equipment | 6,772 |
120,912 |
||
Deferred tax assets | 29,790 |
71,118 |
||
Right-of-use assets | 45,525 |
58,586 |
||
Other Non-current Assets | 7,345 |
2,798 |
||
Total assets | 13,657,974 |
14,114,568 |
||
Current liabilities | ||||
Short-term bank loans and current portion of long-term bank loans | 76,089 |
293 |
||
Loan from a non-controlling shareholder | - |
4,358 |
||
Accounts payable and accrued liabilities | 973,949 |
905,923 |
||
Income tax payable | 41,258 |
- |
||
Deferred revenue | 20,127 |
17,955 |
||
Deferred government grants | 1,586 |
15,120 |
||
Dividend payable | 29,089 |
141,993 |
||
Lease liability | 5,806 |
5,993 |
||
Total current liabilities | 1,147,904 |
1,091,635 |
||
Deferred revenue | 200 |
- |
||
Deferred government grants | 5,865 |
4,477 |
||
Long-term bank loans | 177,817 |
11,513 |
||
Deferred tax liability | 263,711 |
241,526 |
||
Lease liability | 39,271 |
52,516 |
||
Other non-current liabilities | 439 |
240 |
||
Total long-term liabilities | 487,303 |
310,272 |
||
Total liabilities | 1,635,207 |
1,401,907 |
||
Commitments and contingencies | ||||
Equity | ||||
Preferred stock | 15 |
15 |
||
Common stock | 100 |
100 |
||
Additional paid-in capital | 541,258 |
540,582 |
||
Accumulated other comprehensive income (loss) | (490,055) |
(383,276) |
||
Statutory surplus reserves | 1,539,584 |
1,538,013 |
||
Accumulated earnings | 7,118,516 |
7,225,987 |
||
Total shareholders' equity | 8,709,418 |
8,921,421 |
||
Non-controlling interests | 3,313,349 |
3,791,240 |
||
Total equity | 12,022,767 |
12,712,661 |
||
Total liabilities and equity | $ | 13,657,974 |
$ | 14,114,568 |
SINOVAC BIOTECH LTD. | |||||||||
Consolidated Statements of Comprehensive Income (Loss) | |||||||||
For the six and twelve months ended 2023 and 2022 | |||||||||
(Expressed in thousands of |
|||||||||
Six months ended December 31, | Year ended December 31, | ||||||||
2023 |
2022 |
2023 |
2022 |
||||||
(Unaudited) | (Unaudited) | ||||||||
Sales | $ | 307,865 |
$ | 280,471 |
$ | 448,269 |
$ | 1,492,761 |
|
Cost of sales | (6,893) |
430,094 |
181,516 |
684,456 |
|||||
Gross profit | 314,758 |
(149,623) |
266,753 |
808,305 |
|||||
Selling, general and administrative expenses | 235,276 |
667,663 |
466,324 |
823,543 |
|||||
Provision for doubtful accounts | 2,252 |
3,461 |
2,638 |
4,268 |
|||||
Research and development expenses | 193,383 |
257,714 |
344,515 |
442,108 |
|||||
Loss on disposal and impairment of property, plant and equipment | 78,408 |
1,927 |
78,720 |
5,213 |
|||||
Government grants recognized in income | (22,331) |
(746) |
(22,423) |
(760) |
|||||
Total operating expenses | 486,988 |
930,019 |
869,774 |
1,274,372 |
|||||
Operating loss | (172,230) |
(1,079,642) |
(603,021) |
(466,067) |
|||||
Interest and financing expenses | (1,996) |
(641) |
(2,260) |
(1,264) |
|||||
Interest income | 55,525 |
106,820 |
85,114 |
190,818 |
|||||
Other income (expense), net | 29,277 |
72,293 |
367,133 |
301,751 |
|||||
Income (loss) before income taxes | (89,424) |
(901,170) |
(153,034) |
25,238 |
|||||
Income tax benefit (expense) | (138,918) |
198,855 |
(105,321) |
62,893 |
|||||
Net income (loss) | (228,342) |
(702,315) |
(258,355) |
88,131 |
|||||
Less: loss attributable to non-controlling interests | 111,506 |
331,669 |
158,437 |
25,735 |
|||||
Net income (loss) attributable to shareholders of Sinovac | (116,836) |
(370,646) |
(99,918) |
113,866 |
|||||
Preferred stock dividends | (3,024) |
(3,024) |
(5,982) |
(5,982) |
|||||
Net income (loss) attributable to common shareholders of Sinovac | (119,860) |
(373,670) |
(105,900) |
107,884 |
|||||
Net income (loss) | (228,342) |
(702,315) |
(258,355) |
88,131 |
|||||
Other comprehensive income (loss), net of tax of nil | |||||||||
Foreign currency translation adjustments | 154,217 |
(279,794) |
(280,426) |
(859,045) |
|||||
Unrealized gain | 72,817 |
- |
65,900 |
- |
|||||
Comprehensive loss | (1,308) |
(982,109) |
(472,881) |
(770,914) |
|||||
Less: comprehensive loss attributable to non-controlling interests | 48,879 |
445,656 |
266,184 |
370,882 |
|||||
Comprehensive income (loss) attributable to shareholders of Sinovac | 47,571 |
(536,453) |
(206,697) |
(400,032) |
|||||
Earnings/loss per share | |||||||||
Basic net income (loss) per share | (1.20) |
(3.76) |
(1.06) |
1.08 |
|||||
Diluted net income (loss) per share | (1.20) |
(3.76) |
(1.06) |
1.00 |
|||||
Weighted average number of shares of common stock outstanding | |||||||||
Basic | 99,638,043 |
99,502,243 |
99,607,574 |
99,502,243 |
|||||
Diluted | 99,638,043 |
99,502,243 |
99,607,574 |
114,172,782 |
SINOVAC BIOTECH LTD. | |||||||||
Consolidated Statements of Cash Flows | |||||||||
For the six and twelve months ended 2023 and 2022 | |||||||||
(Expressed in thousands of |
|||||||||
Six months ended December 31, | Year ended December 31, | ||||||||
2023 |
2022 |
2023 |
2022 |
||||||
(Unaudited) | (Unaudited) | ||||||||
Operating activities | |||||||||
Net income (loss) | $ | (228,342) |
$ | (702,315) |
$ | (258,355) |
$ | 88,131 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||
Deferred income taxes | 108,448 |
(67,172) |
76,324 |
(83,010) |
|||||
Share-based compensation | - |
- |
- |
- |
|||||
Inventory provision | 39,903 |
83,800 |
52,527 |
140,004 |
|||||
Provision for doubtful accounts | 2,252 |
3,461 |
2,638 |
4,268 |
|||||
Loss on disposal and impairment of property, plant and equipment | 78,408 |
1,927 |
78,720 |
5,213 |
|||||
Depreciation of property, plant and equipment | 57,983 |
78,660 |
140,467 |
153,819 |
|||||
Amortization of prepaid land lease payments | 1,090 |
1,374 |
2,228 |
1,749 |
|||||
Amortization of intangible assets | 1,523 |
932 |
2,050 |
1,029 |
|||||
Government grants recognized in income | (5,518) |
(746) |
(22,423) |
(760) |
|||||
Investment income | (172,847) |
- |
(248,085) |
- |
|||||
Changes in: | |||||||||
Accounts receivable | (8,287) |
429,615 |
82,147 |
289,600 |
|||||
Inventories | 6,530 |
(6,869) |
(16,766) |
30,382 |
|||||
Income tax (recoverable) payable | 107,202 |
(191,672) |
101,378 |
(1,275,296) |
|||||
Prepaid expenses and deposits | 1,682 |
(111,395) |
3,265 |
22,519 |
|||||
Deferred revenue | 4,957 |
(13,364) |
2,883 |
(58,485) |
|||||
Accounts payable and accrued liabilities | 156,638 |
536,063 |
109,430 |
(86,860) |
|||||
Other non-current assets/liabilities | (7,634) |
(5,531) |
(4,431) |
(3,048) |
|||||
Net cash provided by (used in) operating activities | 143,988 |
36,768 |
103,997 |
(770,745) |
|||||
Financing activities | |||||||||
Proceeds from bank loans | 33,808 |
1 |
243,395 |
151 |
|||||
Repayments of bank loans | (158) |
(48) |
(308) |
(2,981) |
|||||
Proceeds from issuance of common stock, net of share issuance costs | - |
- |
676 |
- |
|||||
Dividend paid | (326,464) |
(260,702) |
(328,080) |
(263,171) |
|||||
Proceeds from subsidiary's financing | - |
- |
- |
11,291 |
|||||
Government grants received | 3,831 |
9,776 |
12,499 |
14,797 |
|||||
Repayments of loan from a non-controlling shareholder | (4,244) |
(1,474) |
(4,245) |
(1,486) |
|||||
Net cash used in financing activities | (293,227) |
(252,447) |
(76,063) |
(241,399) |
|||||
Investing activities | |||||||||
Purchase of investments | (1,593,895) |
(5,717,991) |
(8,222,005) |
(11,658,465) |
|||||
Proceeds from redemption and sales of investments | 1,561,769 |
3,619,956 |
5,575,287 |
6,327,521 |
|||||
Proceeds from disposal of equipment | 2 |
5 |
39 |
608 |
|||||
Proceeds from dissolution of subsidiary | - |
114,352 |
- |
114,352 |
|||||
Acquisition of property, plant and equipment | (51,601) |
(114,402) |
(144,543) |
(393,800) |
|||||
Prepaid land lease payments | - |
(26,025) |
- |
(35,683) |
|||||
Acquisition of intangible assets | (1,145) |
(9,568) |
(1,145) |
(9,568) |
|||||
Purchase of equity investments | (108,975) |
(42,155) |
(133,767) |
(105,435) |
|||||
Distributions by equity method investees | 679 |
- |
2,021 |
- |
|||||
Net cash used in investing activities | (193,166) |
(2,175,828) |
(2,924,113) |
(5,760,470) |
|||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (29,058) |
(189,210) |
(114,901) |
(560,769) |
|||||
Decrease in cash and cash equivalents and restricted cash | (371,463) |
(2,580,717) |
(3,011,080) |
(7,333,383) |
|||||
Cash and cash equivalents and restricted cash, beginning of period | 1,646,760 |
6,867,094 |
4,286,377 |
11,619,760 |
|||||
Cash and cash equivalents and restricted cash, end of period | 1,275,297 |
4,286,377 |
1,275,297 |
4,286,377 |
SINOVAC BIOTECH LTD. | |||||||||
Reconciliations of Non-GAAP measures to the nearest comparable GAAP measures | |||||||||
For the six and twelve months ended 2023 and 2022 | |||||||||
(Expressed in thousands of |
|||||||||
Six months ended December 31, | Year ended December 31, | ||||||||
2023 |
2022 |
2023 |
2022 |
||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||
Net income (loss) | $ | (228,342) |
$ | (702,315) |
$ | (258,355) |
$ | 88,131 |
|
Adjustments: | |||||||||
Depreciation and amortization | 60,596 |
80,966 |
144,745 |
156,597 |
|||||
Interest and financing expenses, net of interest income | (53,529) |
(106,179) |
(82,854) |
(189,554) |
|||||
Other expense (income), net | (29,277) |
(72,293) |
(367,133) |
(301,751) |
|||||
Income tax (benefit) expense | 138,918 |
(198,855) |
105,321 |
(62,893) |
|||||
Non-GAAP adjusted EBITDA | (111,634) |
(998,676) |
(458,276) |
(309,470) |
|||||
Net income (loss) | (228,342) |
(702,315) |
(258,355) |
88,131 |
|||||
Add: Foreign exchange (gain) loss | 45,308 |
(103,472) |
(45,543) |
(265,091) |
|||||
Non-GAAP net loss | (183,034) |
(805,787) |
(303,898) |
(176,960) |
|||||
Net income (loss) attributable to common shareholders of Sinovac | (119,860) |
(373,670) |
(105,900) |
107,884 |
|||||
Add: Non-dilutive preferred stock dividends | - |
- |
- |
5,982 |
|||||
Net income (loss) attributable to common shareholders of Sinovac for computing diluted earnings per share | (119,860) |
(373,670) |
(105,900) |
113,866 |
|||||
Add: Non-GAAP adjustments to net income (loss) | 27,280 |
(61,239) |
(26,069) |
(156,332) |
|||||
Non-GAAP net loss attributable to common shareholders of Sinovac for computing non-GAAP diluted earnings per share | (92,580) |
(434,909) |
(131,969) |
(42,466) |
|||||
Weighted average number of shares on a diluted basis | 99,638,043 |
99,502,243 |
99,607,574 |
114,172,782 |
|||||
Diluted earnings (loss) per share | (1.20) |
(3.76) |
(1.06) |
1.00 |
|||||
Add: Non-GAAP adjustments to net income (loss) per share | 0.27 |
(0.62) |
(0.26) |
(1.37) |
|||||
Non-GAAP diluted earnings (loss) per share | (0.93) |
(4.38) |
(1.32) |
(0.37) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240429129325/en/
Sinovac Biotech Ltd.
Helen Yang
Tel: +86-10-8279 9720
Email: ir@sinovac.com
Source: Sinovac Biotech Ltd.
FAQ
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