BEIJING--(BUSINESS WIRE)--Sinovac Biotech Ltd. (NASDAQ: SVA) (\u201cSINOVAC\u201d or the \u201cCompany\u201d), a leading provider of biopharmaceutical products in China, announced today its unaudited financial results for the six months ended June 30, 2025.<\/p>
\nFirst Half of 2025 Financial Summary<\/b><\/p> \nGlobal Strategy Drives Resilience in Performance<\/b><\/p> \nIn the first half of 2025, despite a challenging macroeconomic environment, the Company delivered solid financial results, demonstrating strong operational resilience. During the reporting period, the Company\u2019s overseas business served as the primary growth engine, effectively offsetting the slowdown in the Chinese Mainland market caused by demographic shifts.<\/p> \nThis growth was driven by deepened market penetration and landmark commercial breakthroughs in emerging markets across Latin America and Southeast Asia. The Company was the exclusive winner of the Chilean influenza vaccine global tender for both years 2025 and 2026. Furthermore, in November 2025, it signed two Product Development Partnership (PDP) agreements with the Brazilian Ministry of Health. Under these agreements, the Company will supply approximately 60 million doses of varicella and rabies vaccines to Brazil over the next 10 years.<\/p> \nR&D Portfolio Update: Strengthening Growth Momentum<\/b><\/p> \nThe Company continues to prioritize research and development as a core strategic driver, achieving steady progress across its pipeline and further optimizing its product portfolio.<\/p> \nIn terms of regulatory milestones in China, the adsorbed tetanus vaccine received marketing approval in August 2025. Additionally, the marketing authorization application for the freeze-dried human rabies vaccine has been submitted, with approval expected in 2026.<\/p> \nRegarding clinical development, the bivalent hand, foot and mouth disease (HFMD) vaccine, 13-valent pneumococcal polysaccharide conjugate vaccine, and fully human anti-tetanus monoclonal antibody have all advanced into Phase III clinical studies. The quadrivalent HFMD vaccine has entered the preparatory stage for Phase III clinical trial. The 24-valent pneumococcal polysaccharide conjugate vaccine is currently in Phase II clinical development. Furthermore, the Company\u2019s mRNA technology platform continues to advance, with both the herpes zoster mRNA vaccine and respiratory syncytial virus mRNA vaccine having initiated Phase I clinical trials.<\/p> \nWith R&D programs advancing steadily across all stages, the Company\u2019s diversified portfolio is expected to provide a solid foundation for future revenue growth.<\/p> \nUnaudited Financial Results for the First Half of 2025<\/b><\/p> \nSales in the first half of 2025 were $130.3 million compared to $128.7 million in the prior year period. Sales from overseas markets increased by 29.4%, which was offset by the slowdown in domestic market demand in the Chinese Mainland, making overall sales stable.<\/p> \nGross profit in the first half of 2025 increased to $81.5 million from $69.6 million in the prior year period. Gross profit margin increased from 54.0% in the first half of 2024 to 62.5% in the first half of 2025, primarily due to lower inventory provision recorded in cost of sales.<\/p> \nSelling, general and administrative expenses in the first half of 2025 were $147.2 million, compared to $208.6 million in the prior year period. The decrease was mainly due to a lower headcount and lower expenses related to the long-term employee incentive plan established in 2022 (the \"Employee Incentive Plan\"). In addition, the Company achieved significant cost savings and productivity enhancements.<\/p> \nResearch and development expenses in the first half of 2025 were $126.9 million, a decrease from $142.3 million in the prior year period. The decline was due to lower expenses incurred in relation to the Employee Incentive Plan.<\/p> \nLoss on disposal and impairment of property, plant and equipment and in-process research and development assets acquired in a business combination (\u201cIPR&D\u201d), and loss on impairment of goodwill in the first half of 2025 was $69.9 million, compared to $5.3 million in the prior year period. This was because the Company recorded impairment of $68.1 million of IPR&D and goodwill generated during the acquisition of a subsidiary that produces rabies vaccines. The Company identified the impairment indicators in fierce competition, delayed vaccine market launch, and changes in product positioning in the first half of 2025.<\/p> \nOther income, net in the first half of 2025 was $161.9 million, a decrease from $294.6 million in the prior year period. The change was mainly due to decrease in investment income earned from investment products issued by financial institutions.<\/p> \nNet loss in the first half of 2025 was $96.6 million, compared to a net income of $59.0 million in the prior year period.<\/p> \nNet loss attributable to common shareholders was $21.7 million, or a loss of $0.30 per basic and diluted share, in the first half of 2025, compared to a net income attributable to common shareholders of $93.9 million, or an income of $1.31 per basic and diluted share, in the prior year period.<\/p> \nIn 2018, 11,800,000 common shares (the \u201c2018 PIPE Shares\u201d) were issued pursuant to the Securities Purchase Agreement dated July 2, 2018. The validity of this share issuance has been subject to dispute. Whether these shares may be excluded from the Company\u2019s issued and outstanding common stock is contingent upon the outcome of certain legal proceedings pending in Antigua. Excluding the 2018 PIPE Shares, the basic and diluted weighted average number of the Company\u2019s common shares outstanding would be 60,060,702. On that basis, the basic and diluted net loss per share for the first half of 2025 would be $0.36, compared to basic and diluted net income per share of $1.56 in the prior year period.<\/p> \nNon-GAAP adjusted EBITDA was a $192.6 million loss in the first half of 2025, compared to a $230.1 million loss in the prior year period. Non-GAAP net loss was $53.9 million in the first half of 2025, compared to non-GAAP net income of $33.7 million in the prior year period. Non-GAAP diluted net income per share in the first half of 2025 was $0.06 compared to $1.18 per share in the prior year period. Excluding the 2018 PIPE Shares, non-GAAP diluted net income per share in the first half of 2025 would be $0.07, compared to $1.40 in the prior year period. Reconciliations of non-GAAP measures to the nearest comparable GAAP measures are included at the end of this news release.<\/p> \nAs of June 30, 2025, cash and cash equivalents and restricted cash totaled $4.2 billion, compared to $602.2 million as of December 31, 2024. The increase was mainly due to the increased net cash inflow of investing activities which was mainly attributable to the maturity and sales of investment products issued by financial institutions. In the first half of 2025, net cash used in operating activities was $310.6 million, net cash used in financing activities was $169.7 million, and net cash provided by investing activities was $4.0 billion reflecting the net position of short-term investment maturity and sales over purchases.<\/p> \nIn the first half of 2025, a dividend of $20.3 million was declared and paid by Sinovac Biotech Co., Ltd. (\u201cSinovac Beijing\u201d) and Sinovac (Dalian) Vaccine Technology Co., Ltd. (\u201cSinovac Dalian\u201d) to their respective minority shareholders. A dividend of $54.3 million was declared and paid by such subsidiaries to Sinovac Holding Group Co., Ltd. (\u201cSinovac Beijing Holding\u201d) in 2025. Additionally, the Company\u2019s board of directors declared a special cash dividend of $55.00 per common share totaling $4.0 billion in April 2025, of which $3.3 billion was paid by the Company to its shareholders in the second half of 2025, and $658 million remains payable, mainly to the holders of the 2018 PIPE Shares, subject to the outcome of litigation.<\/p> \nThe Company\u2019s first half of 2025 financial statements are prepared and presented in accordance with U.S. GAAP. However, they have not been audited by the Company\u2019s independent registered accounting firm.<\/p> \nNon-Reliance on Previously Issued Financial Statements<\/b><\/p> \nThe management concluded that the Company\u2019s previously issued unaudited consolidated balance sheets as of June 30, 2024, consolidated statements of operations and comprehensive income (loss) for the six months ended June 30, 2024, consolidated statements of cash flows for the six months ended June 30, 2024 , and non-GAAP adjusted EBITDA for the six months ended June 30, 2024 (the \u201cNon-Reliance Periods\u201d) included in the Company\u2019s Report on Form 6- K filed on August 16, 2024 should be restated and accordingly, should no longer be relied upon. Similarly, any previously furnished or filed reports, related earnings releases, investor presentations or similar communications of the Company describing the Company\u2019s financial results as of and for the Non-Reliance Periods should no longer be relied upon.<\/p> \nDuring the interim review of the Company\u2019s financial results for the six months ended June 30, 2024, the management concluded there were errors identified in the previously disclosed consolidated financial statements. The nature of the adjustments primarily related to legal and regulatory matters, errors in the application of estimates for expected sales returns regarding revenue recognition and credit losses on accounts receivable, classification errors for certain debt and equity security investments, and the correction of applicable withholding tax rate on dividend income from Chinese Mainland subsidiaries. The impacts of these restatements are as follows:<\/p> \nRestated Unaudited Consolidated Balance Sheet as of June 30, 2024:<\/p> \nJune 30, 2024<\/b><\/p><\/td><\/tr>\n \nPreviously\n \nRestatement\n \nRestated<\/b><\/p><\/td><\/tr>\n \nASSETS<\/b><\/p><\/td> \nCurrent assets<\/b><\/p><\/td> \nCash and cash equivalents<\/p><\/td> \n$<\/p><\/td> \n1,072,350<\/p><\/td> \n$<\/p><\/td> \n(116,006)<\/p><\/td> \n$<\/p><\/td> \n956,344<\/p><\/td><\/tr>\n \nRestricted cash<\/p><\/td> \n2,779<\/p><\/td> \n\u2014<\/p><\/td> \n2,779<\/p><\/td><\/tr>\n \nShort-term investments<\/p><\/td> \n9,502,185<\/p><\/td> \n(64,252)<\/p><\/td> \n9,437,933<\/p><\/td><\/tr>\n \nAccounts receivable, net<\/p><\/td> \n370,168<\/p><\/td> \n(6,296)<\/p><\/td> \n363,872<\/p><\/td><\/tr>\n \nInventories<\/p><\/td> \n153,524<\/p><\/td> \n(20,095)<\/p><\/td> \n133,429<\/p><\/td><\/tr>\n \nPrepaid expenses and other current assets<\/p><\/td> \n12,724<\/p><\/td> \n1,438<\/p><\/td> \n14,162<\/p><\/td><\/tr>\n \nIncome tax receivable<\/p><\/td> \n10,703<\/p><\/td> \n(10,049)<\/p><\/td> \n654<\/p><\/td><\/tr>\n \nAmounts due from related parties<\/p><\/td> \n23,847<\/p><\/td> \n(23,669)<\/p><\/td> \n178<\/p><\/td><\/tr>\n \nTotal current assets<\/b><\/p><\/td> \n11,148,280<\/b><\/p><\/td> \n(238,929)<\/b><\/p><\/td> \n10,909,351<\/b><\/p><\/td><\/tr>\n \nProperty, plant and equipment, net<\/p><\/td> \n934,614<\/p><\/td> \n(15,719)<\/p><\/td> \n918,895<\/p><\/td><\/tr>\n \nPrepaid land use rights, net<\/p><\/td> \n62,916<\/p><\/td> \n\u2014<\/p><\/td> \n62,916<\/p><\/td><\/tr>\n \nIntangible assets, net<\/p><\/td> \n7,844<\/p><\/td> \n\u2014<\/p><\/td> \n7,844<\/p><\/td><\/tr>\n \nLong-term investments<\/p><\/td> \n681,345<\/p><\/td> \n199,026<\/p><\/td> \n880,371<\/p><\/td><\/tr>\n \nPrepayments for acquisition of equipment<\/p><\/td> \n4,338<\/p><\/td> \n(1,438)<\/p><\/td> \n2,900<\/p><\/td><\/tr>\n \nDeferred tax assets<\/p><\/td> \n32,798<\/p><\/td> \n3,588<\/p><\/td> \n36,386<\/p><\/td><\/tr>\n \nRight-of-use assets<\/p><\/td> \n15,346<\/p><\/td> \n\u2014<\/p><\/td> \n15,346<\/p><\/td><\/tr>\n \nOther non-current assets<\/p><\/td> \n9,456<\/p><\/td> \n9,209<\/p><\/td> \n18,665<\/p><\/td><\/tr>\n \nAmounts due from related parties<\/p><\/td> \n\u2014<\/p><\/td> \n23,669<\/p><\/td> \n23,669<\/p><\/td><\/tr>\n \nTotal non-current assets<\/b><\/p><\/td> \n1,748,657<\/b><\/p><\/td> \n218,335<\/b><\/p><\/td> \n1,966,992<\/b><\/p><\/td><\/tr>\n \nTotal assets<\/b><\/p><\/td> \n12,896,937<\/b><\/p><\/td> \n(20,594)<\/b><\/p><\/td> \n12,876,343<\/b><\/p><\/td><\/tr>\n \nCurrent liabilities<\/b><\/p><\/td> \nShort-term bank loans and current portion of long-term bank loans<\/p><\/td> \n$<\/p><\/td> \n179,349<\/p><\/td> \n$<\/p><\/td> \n\u2014<\/p><\/td> \n$<\/p><\/td> \n179,349<\/p><\/td><\/tr>\n \nAccounts payable and accrued liabilities<\/p><\/td> \n641,579<\/p><\/td> \n47,565<\/p><\/td> \n689,144<\/p><\/td><\/tr>\n \nIncome tax payable<\/p><\/td> \n28,720<\/p><\/td> \n158,330<\/p><\/td> \n187,050<\/p><\/td><\/tr>\n \nDeferred revenue<\/p><\/td> \n6,173<\/p><\/td> \n\u2014<\/p><\/td> \n6,173<\/p><\/td><\/tr>\n \nDeferred government grants<\/p><\/td> \n805<\/p><\/td> \n\u2014<\/p><\/td> \n805<\/p><\/td><\/tr>\n \nDividend payable<\/p><\/td> \n119,374<\/p><\/td> \n(32,064)<\/p><\/td> \n87,310<\/p><\/td><\/tr>\n \nLease liability<\/p><\/td> \n2,451<\/p><\/td> \n\u2014<\/p><\/td> \n2,451<\/p><\/td><\/tr>\n \nTotal current liabilities<\/b><\/p><\/td> \n978,451<\/b><\/p><\/td> \n173,831<\/b><\/p><\/td> \n1,152,282<\/b><\/p><\/td><\/tr>\n \nDeferred government grants<\/p><\/td> \n5,984<\/p><\/td> \n\u2014<\/p><\/td> \n5,984<\/p><\/td><\/tr>\n \nLong-term bank loans<\/p><\/td> \n130,320<\/p><\/td> \n\u2014<\/p><\/td> \n130,320<\/p><\/td><\/tr>\n \nDeferred tax liability<\/p><\/td> \n262,174<\/p><\/td> \n124,861<\/p><\/td> \n387,035<\/p><\/td><\/tr>\n \nLease liability<\/p><\/td> \n12,388<\/p><\/td> \n\u2014<\/p><\/td> \n12,388<\/p><\/td><\/tr>\n \nOther non-current liabilities<\/p><\/td> \n429<\/p><\/td> \n(391)<\/p><\/td> \n38<\/p><\/td><\/tr>\n \nDeferred revenue<\/p><\/td> \n195<\/p><\/td> \n\u2014<\/p><\/td> \n195<\/p><\/td><\/tr>\n \nTotal long-term liabilities<\/b><\/p><\/td> \n411,490<\/b><\/p><\/td> \n124,470<\/b><\/p><\/td> \n535,960<\/b><\/p><\/td><\/tr>\n \nTotal liabilities<\/b><\/p><\/td> \n1,389,941<\/b><\/p><\/td> \n298,301<\/b><\/p><\/td> \n1,688,242<\/b><\/p><\/td><\/tr>\n \nEQUITY<\/b><\/p><\/td> \nPreferred stock<\/p><\/td> \n15<\/p><\/td> \n(15)<\/p><\/td> \n\u2014<\/p><\/td><\/tr>\n \nCommon stock<\/p><\/td> \n100<\/p><\/td> \n(28)<\/p><\/td> \n72<\/p><\/td><\/tr>\n \nAdditional paid-in capital<\/p><\/td> \n541,258<\/p><\/td> \n8,910<\/p><\/td> \n550,168<\/p><\/td><\/tr>\n \nAccumulated other comprehensive loss<\/p><\/td> \n(539,415)<\/p><\/td> \n(142,039)<\/p><\/td> \n(681,454)<\/p><\/td><\/tr>\n \nStatutory surplus reserves<\/p><\/td> \n1,539,584<\/p><\/td> \n\u2014<\/p><\/td> \n1,539,584<\/p><\/td><\/tr>\n \nRetained earnings<\/p><\/td> \n7,107,644<\/p><\/td> \n(224,455)<\/p><\/td> \n6,883,189<\/p><\/td><\/tr>\n \nTotal Sinovac shareholders' equity<\/b><\/p><\/td> \n8,649,186<\/b><\/p><\/td> \n(357,627)<\/b><\/p><\/td> \n8,291,559<\/b><\/p><\/td><\/tr>\n \nNon-controlling interests<\/p><\/td> \n2,857,810<\/p><\/td> \n38,732<\/p><\/td> \n2,896,542<\/p><\/td><\/tr>\n \nTotal equity<\/b><\/p><\/td> \n11,506,996<\/b><\/p><\/td> \n(318,895)<\/b><\/p><\/td> \n11,188,101<\/b><\/p><\/td><\/tr>\n \nTotal liabilities and equity<\/b><\/p><\/td> \n$<\/p><\/td> \n12,896,937<\/b><\/p><\/td> \n$<\/p><\/td> \n(20,594)<\/b><\/p><\/td> \n$<\/p><\/td> \n12,876,343<\/b><\/p><\/td><\/tr>\n<\/table> \nRestated Unaudited Consolidated Statement of Operations and Comprehensive Income (Loss) for the Six Months Ended June 30, 2024:<\/p>\n
\n
\n (Expressed in thousands of U.S. Dollars)<\/td>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n<\/tr>\n \n \n \n \n \n \n \n \n \n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n $<\/b><\/td>\n \n $<\/b><\/td>\n \n $<\/b><\/td>\n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n LIABILITIES AND EQUITY<\/b><\/td>\n \n \n \n \n \n \n \n \n<\/tr>\n \n \n \n \n \n \n \n \n \n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n