UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of June 2014
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Commission File Number: 001-32371
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SINOVAC BIOTECH LTD.
No. 39 Shangdi Xi Road
Haidian District
Beijing 100085, People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):________________
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):________________
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SINOVAC BIOTECH LTD. | |||
| By: | /s/ Weidong Yin | ||
| Name: | Weidong Yin | ||
| Title: | Chairman and Chief Executive Officer | ||
Date: June 24, 2014
Exhibit Index
Exhibit 99.1 – Press Release
Exhibit 99.2 – Press Release
Exhibit 99.3 – Press Release
Exhibit 99.1
Sinovac Enters Technology Transfer Agreement with Intravacc to Develop and Commercialize Sabin Inactivated Polio Vaccine (sIPV)
-- Collaborating with World Health Organization and Intravacc to Develop sIPV in line with mission to secure a lasting polio-free world, free of all paralytic polio disease
Sinovac Enters Technology Transfer Agreement with Intravacc to Develop and Commercialize Sabin Inactivated Polio Vaccine (sIPV)
Collaborating with World Health Organization and Intravacc to Develop sIPV in line with mission to secure a lasting polio-free world, free of all paralytic polio disease
BEIJING, April 28, 2014—Sinovac Biotech Ltd. (Nasdaq:SVA), a leading provider of biopharmaceutical products in China that focuses on the research, development, manufacturing and commercialization of vaccines, announced today that it has entered into a license agreement with Intravacc (Institute for Translational Vaccinology) from The Netherlands to develop and commercialize the Sabin Inactivated Polio Vaccine (sIPV) for distribution to China and other countries. According to the agreement, Sinovac has committed to commercializing the vaccine in China, inclusive of conducting clinical trials, obtaining regulatory approval, and launching the sIPV vaccine. In addition, Sinovac has committed to having the capacity to supply, or making arrangements for the supply of, sIPV to the public sector of other countries in sufficient quantities to make a meaningful contribution to meeting global demand (e.g. at least 20 million doses annually).
In developing countries around the globe including China, oral polio vaccine (OPV) is widely utilized to eradicate polio. OPV is a live attenuated formulation, which contains a weakened form of poliovirus. Although OPV is considered safe and effective, in extremely rare instances, the live attenuated vaccine virus in OPV can cause paralysis, resulting in cases of vaccine-associated paralytic polio (VAPP) or circulating vaccine-derived poliovirus (cVDPVs). Therefore, to eliminate the risk of such cases, OPV will be phased out from routine immunization programs around the world. To enable countries to maintain immunity levels, inactivated polio vaccines (IPV) will be introduced. Sabin IPV is both safer to manufacturer and more affordable as compared to the currently available Salk IPV. The global demand for IPV is increasing as the Global Polio Eradication Initiative has called for IPV to be introduced into 126 countries currently using OPV only by the end of 2015. According to Eradication and Endgame Strategic Plan developed under the Global Polio Eradication Initiative, from 2014 to 2018, the use of OPV in routine immunization will be gradually ceased.
The WHO called for Expressions of Interest (EOI) in 2010, 2011 and 2012 from private or public sector vaccine manufactures interested incollaborating with the WHO and Intravacc to develop and supply sIPV under the Global Polio Eradication Initiative. Sinovac submitted its EOI in 2012 and was selected as a technology transfer recipient after the qualification review and site inspection by the WHO and Intravacc.
National Health and Family Planning Commission of China is developing a vaccination strategy to add at least one dose of IPV into its national Expanded Program of Immunization (EPI). At present, no IPV is produced by manufacturers in China. Imported IPV became available in September 2009, but the supply is limited and the vaccine has to be paid for out-of-pocket by the recipient.
Mr. Weidong Yin, Chairman, President and CEO of Sinovac, commented, “We are honored to partnerwith WHO and Intravacc to develop and commercialize sIPV for future distribution both domestically and internationally. As part of selection process, we demonstrated our fullyintegrated vaccine capabilities, inclusive ofconducting clinicaltrials, obtaining regulatory approval and operating GMP certified manufacturing facilities, and exemplified our commercialization expertise based on our broad vaccine portfolio.”
Mr. Yin continued, “Polio represents significant unmet medical need in China and other developing countries. By moving forward with the clinical development of sIPVwith the objective of producing this vaccine in China, Sinovac is helping keep China polio-free and achieve a lasting polio-free world, free of all polio paralytic cases.”
Ms. Gisella Frijlink, Chief Executive Officer of Intravacc, stated, “We are pleased to enter into the collaboration with Sinovac, one of the leading Chinese vaccine companies. This project will enable Sinovac to supply a safe and affordable sIPV vaccine to the Chinese population, as well as to other countries. It also exemplifies the leading position of the Netherlands in the vaccine field and Intravacc’s important role in the global eradication of polio”.
About Sabin-IPV
Sabin IPV is both safer to manufacturerand potentially more affordable as compared to the currently available Salk IPV. Intravacc has developed a safer production process to manufacture IPV, using the attenuated strains from the Sabin virus as seed. In collaboration with Intravacc, clinical lots of IPV produced from Sabin poliovirus seed-strains have been developed. Salk IPV is manufactured using wild poliovirus seed-strains, and in such a case a biocontainment failure could lead to serious consequences in some areas of the world in the post-eradication era (i.e. areas with high population density, inadequate sanitation infrastructure and low population immunity levels). Therefore, the use of attenuated Sabin seed-strains for IPV has the advantage over wild polioviruses and hence is safer for handling IPV production in developing country settings.
About Polio
Polio (Poliomyelitis) is a highly infectious disease caused by a virus. It invades the nervous system, and can cause total paralysis. The virus enters the body through the mouth and multiplies in the intestine. Initial symptoms are fever, fatigue, headache, vomiting, stiffness in the neck, and pain in the limbs. One in 200 infections leads to irreversible paralysis (usually in the legs). Among those paralyzed, 5-10% die when their breathing muscles become immobilized.
Global Polio Eradication Initiative
The Global Polio Eradication Initiative is a public-private partnership led by national governments and spearheaded by the WHO, Rotary International, the US Centers for Disease Control and Prevention (CDC), and the United Nations Children’s Fund (UNICEF). Its goal is to eradicate polio worldwide.
Improving immunization services globally is vital to ending polio and reducing child mortality. Strong immunization services are also essential to ensuring the success of the phased withdrawal of the OPV and the introduction of the IPV, key steps toward eradication. The Global Polio Eradication Initiative’s Strategic Plan calls for IPV to be introduced into 126 countries by the end of 2015.
OPV contains an attenuated (weakened) vaccine-virus, activating an immune response in the body. When a child is immunized with OPV, the weakened vaccine-virus replicates in the intestine for a limited period, thereby developing immunity by building up antibodies. During this time, the vaccine-virus is also excreted. In areas of inadequate sanitation, this excreted vaccine-virus can spread in the immediate community (and this can offer protection to other children through ‘passive’ immunization), before eventually dying out.
Polio Vaccination in China
China, together with the entire Western Pacific Region, was officially certified polio-free in 2000, and the region has maintained its certified status since then. National Health and Family Planning Commission China is developing a strategy to add at least one dose of IPV into its national EPI programme, currently it continues to recommend the use of OPV in its national EPI programme. In China, enough OPV is produced by domestic manufacturers to vaccinate all children born in the country every year. Based on the batch release data available as of December 31, 2013, approximately 145 million doses of OPV and 8.3 million doses of IPV were released in China in 2013. In 2011, China experienced an outbreak caused by imported wild poliovirus type 1 from Pakistan. China successfully stopped the importation outbreak in only three months, thereby ensuring the Western Pacific Region could maintain its certified polio-free status. The outbreak affected 10 young children and 11 adults, and resulted in two deaths. China is located next to two of the three countries globally that remain polio-endemic, Pakistan and Afghanistan.
About Intravacc
Intravacc (the Institute for Translational Vaccinology) is a research, development and contract manufacturing organization uniquely
active in the field of vaccines. It covers over 100 years of know-how in vaccinology as a governmental institute working under
the Dutch Ministry of Public Health, Welfare and Sports. With its mission to promote public health by developing vaccines, Intravacc
is committed to provide all necessary technology and expertise needed to develop a vaccine from a laboratory concept until phase
III clinical studies. The risks and cost of vaccine development can be substantially reduced with the use of Intravaccs technology.
This enables vaccine manufacturers to viably produce and distribute vaccines to combat major public health concerns. An example
is the conjugate vaccine against Haemophilus influenzae type b, which is now being marketed in Asia. To date, Intravacc has
a full pipeline of vaccine concepts against various bacterial, viral and non-infectious diseases. Several of these vaccine development
programs are taken forward in collaboration with big pharma as well as biotech companies.
About Sinovac
Sinovac Biotech Ltd. is a China-based biopharmaceutical company that focuses on the research, development, manufacturing and commercialization of vaccines that protect against human infectious diseases including hepatitis A and B, seasonal influenza, H5N1 pandemic influenza (avian flu), H1N1 influenza (swine flu) and mumps, as well as animal rabies vaccine for canines. The Company recently concluded the phase III clinical trial for enterovirus 71 (against hand, foot and mouth disease) and filed new drug application with China Food & Drug Administration. In 2009, Sinovac was the first company worldwide to receive approval for its H1N1 influenza vaccine, Panflu.1, and has manufactured it for the Chinese Central Government, pursuant to the government-stockpiling program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine to the government-stockpiling program. Sinovac is developing a number of new pipeline vaccines including vaccines for pneumococcal polysaccharides, pneumococcal conjugate, varicella and rubella. Sinovac sells its vaccines mainly in China and exports selected vaccines to Mongolia, Nepal, and the Philippines. Sinovac has also been granted a license to commercialize seasonal flu vaccine in Mexico.
Safe Harbor Statement
This announcement contains 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 words or phrases such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this press release contain forward-looking statements. Statements that are not historical facts, including statements about Sinovac's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Sinovac does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Helen Yang/Chris Lee
Sinovac Biotech Ltd.
Tel: +86-10-8279-9659/9696
Fax: +86-10-6296-6910
Email: ir@sinovac.com
Investors:
Stephanie Carrington
The Ruth Group
Tel: +1-646-536-7017
Email: scarrington@theruthgroup.com
Media:
Aaron Estrada
The Ruth Group
Tel: +1-646-536-7028
Email: aestrada@theruthgroup.com
Exhibit 99.2
Sinovac to Host Conference Call to Report First Quarter 2014 Unaudited Financial Results
BEIJING, May 12, 2014 /PRNewswire/ -- Sinovac Biotech Ltd. (SVA), a leading provider of biopharmaceutical products in China, today announced that it will release its unaudited financial results for the first quarter ended March 31, 2014, after market closes on Wednesday, May 21, 2014 EDT. The Company will host a conference call prior to the market opening on Thursday, May 22, 2014, at 8:00 a.m. EDT (Thursday, May 22, 2014 at 8:00 p.m. China Standard Time) to review the Company's financial results and provide an update on recent corporate developments.
To access the conference call, please dial 1-877-407-0784 (USA) or 1-201-689-8560 (International). A replay of the call will be available from 11 a.m. EDT on May 22, 2014, to June 5, 2014, at midnight. To access the replay, please dial 1-877-870-5176 (USA) or 1-858-384-5517 (International) and reference the replay pin number 13582662.
A live audio webcast of the call will also be available from the investors section on the corporate web site at www.sinovac.com. A webcast replay can be accessed on the corporate website beginning May 22, 2014, and the replay will remain available for 30 days.
About Sinovac
Sinovac Biotech Ltd. is a China-based biopharmaceutical company that focuses on the research, development, manufacturing and commercialization of vaccines that protect against human infectious diseases including hepatitis A and B, seasonal influenza, H5N1 pandemic influenza (avian flu), H1N1 influenza (swine flu) and mumps, as well as animal rabies vaccine for canines. The Company recently concluded the phase III clinical trial for enterovirus 71 (against hand, foot and mouth disease) and filed the new drug application with China Food & Drug Administration. In 2009, Sinovac was the first company worldwide to receive approval for its H1N1 influenza vaccine, Panflu.1, and has manufactured it for the Chinese Central Government, pursuant to the government-stockpiling program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine to the government-stockpiling program. Sinovac is developing a number of new pipeline vaccines including vaccines for pneumococcal polysaccharides, pneumococcal conjugate, varicella and rubella. Sinovac sells its vaccines mainly in China and exports selected vaccines to Mongolia, Nepal, and the Philippines. Sinovac has also been granted a license to commercialize seasonal flu vaccine in Mexico.
Safe Harbor Statement
This announcement contains 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 words or phrases such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this press release contain forward-looking statements. Statements that are not historical facts, including statements about Sinovac's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Sinovac does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Helen Yang/Chris
Lee
Sinovac Biotech Ltd.
Tel: +86-10-8279-9659/9696
Fax: +86-10-6296-6910
Email: ir@sinovac.com
Investors:
Stephanie
Carrington
The Ruth Group
Tel: +1-646-536-7017
Email: scarrington@theruthgroup.com
Media
Aaron Estrada
The Ruth Group
Tel: +1-646-536-7028
Email: aestrada@theruthgroup.com
Exhibit 99.3
Sinovac Reports Unaudited First Quarter 2014 Financial Results
-- -Conference call scheduled for Thursday, May 22, 2014 at 8:00 AM EDT
Sinovac Reports Unaudited First Quarter 2014 Financial Results
- Conference call scheduled for Thursday, May 22, 2014 at 8:00 AM EDT -
BEIJING, May 21, 2014 /PRNewswire/ -- Sinovac Biotech Ltd. (NASDAQ: SVA), a leading provider of biopharmaceutical products in China, announced today its unaudited first quarter financial results for the period ended March 31, 2014.
First Quarter 2014 Financial Highlights (period-over-period comparisons to first quarter 2013)
Quarterly sales increased by 34.8% to $13.5 million from $10.1 million.
Gross profit increased by 45.4% to $10.3 million from $7.1 million. Gross margin was 75.8%, compared to 70.2%.
Net income attributable to common stockholders was $4,000, or $0.00 per basic and diluted share, compared to a net loss attributable to common stockholders of $2.0 million, or $0.04 per basic and diluted share.
Cash and cash equivalents totaled $101.7 million as of March 31, 2014, compared to $107.2 million as of December 31, 2013.
Recent Business Highlights
Sinovac was awarded a government grant of RMB 60 million for the construction of a dedicated production facility for its enterovirus 71 (EV71) vaccine against hand foot and mouth disease (HFMD). This grant, which was approved by China's Ministry of Finance, National Development and Reform Commission, Ministry of Industry and Information Technology, and National Health and Family Planning Commission, will be funded in several tranches, of which RMB 20 million is expected in 2014, with the balance to be provided after certain criteria are met.
On May 21, 2014, Sinovac received approval from the China Food and Drug Administration (or "CFDA") to commence a human clinical trial of its 23-valent Pneumococcal polysaccharides vaccine (PPV). The trial is expected to begin in late 2014.
Sinovac entered into a license agreement with Intravacc (Institute for Translational Vaccinology) in The Netherlands to develop and commercialize the Sabin Inactivated Polio Vaccine (sIPV) for China and other countries.
Sinovac was awarded a public tender in Mongolia to supply approximately 147,000 doses of inactivated hepatitis A vaccine to the Mongolian government for its 2014 national vaccination program. The hepatitis A vaccine was delivered in two batches in February and April.
Sinovac was selected by the Gansu Province Center for Disease Control (or Gansu CDC) as the sole supplier of 40,000 doses of inactivated hepatitis A vaccine for its emergency stockpiling program for 2014.This order will be supplied in full in 2014, with the timing of shipments to be directed by the Gansu CDC.
Sinovac obtained a registration license for Healive, its inactivated hepatitis A vaccine, from Instituto de Salud Publica de Chile, Chile's Institute of Public Health. The license is valid for five years from the date of issuance.
Mr. Weidong Yin, Chairman, President and CEO, commented, "The 34.8% year-over-year top line increase marked a strong first quarter. The growth was driven by higher sales of our commercialized vaccines in China, especially from Bilive, our combined hepatitis A&B vaccine. Sinovac's sales team continued to execute its tailored sales and marketing strategy, and maximize the favorable competitive environment."
Mr. Yin continued, "In line with our mission to develop and commercialize vaccines that address unmet medical needs in China and other countries, we continue to advance our pipeline vaccine candidates and expand our portfolio. Obtaining regulatory approval to commence human trials of PPV is another milestone we achieved. Our clinical application for the varicella vaccines is under review by CFDA."
Mr. Yin concluded, "The technology transfer agreement with Intravacc for sIPV exemplifies Sinovac's strategy to expand its vaccine pipeline through external collaboration. As the administration of an inactivated polio vaccine will largely reduce the risk of paralysis associated with the live attenuated vaccine virus in OPV, Sinovac is at the forefront of bringing a safer and more affordable solution to the population worldwide. Under the World Health Organization's global polio eradication plan, sIPV has significant market potential for Sinovac both in China and international markets. We are poised to continue to expand our vaccine portfolio focused on the objective of providing high quality vaccines made in China to children around the world."
Financial Review for Unaudited First Quarter Ended March 31, 2014
An analysis of sales and gross profit is as follows:
In USD'000 (Unaudited) | 2014 Q1 | % of Sales | 2013 Q1 | % of Sales | ||||||||||||
| Hepatitis A – Healive | 6,439 | 47.5 | % | 6,165 | 61.3 | % | ||||||||||
| Hepatitis A&B – Bilive | 5,999 | 44.3 | % | 2,995 | 29.8 | % | ||||||||||
| Hepatitis vaccines | 12,438 | 91.8 | % | 9,160 | 91.1 | % | ||||||||||
| Influenza vaccines | 61 | 0.4 | % | 294 | 3.0 | % | ||||||||||
| Animal vaccines | 25 | 0.2 | % | 13 | 0.1 | % | ||||||||||
| Mumps vaccines | 920 | 6.8 | % | 585 | 5.8 | % | ||||||||||
| Regular sales | 13,444 | 99.2 | % | 10,052 | 100 | % | ||||||||||
| H5N1 | 102 | 0.8 | % | - | - | |||||||||||
| Total sales | 13,546 | 100 | % | 10,052 | 100 | % | ||||||||||
| Cost of goods sold | 3,278 | 24.2 | % | 2,992 | 29.8 | % | ||||||||||
| Gross profit | 10,268 | 75.8 | % | 7,060 | 70.2 | % | ||||||||||
First quarter 2014 sales increased by 34.8% to $13.5 million, from $10.1 million for the same period in 2013. The growth in regular sales was mainly due to an increase of Bilive revenue from $3 million to $6 million.
Compared to the first quarter of 2013, gross profit margin for the first quarter of 2014 increased to 75.8% from 70.2%. The increase in gross margin was mainly driven by lower unit costs for Healive and Bilive due to higher plant utilization, allowing the Company to leverage economies of scale. Gross margin was also favorably impacted by a decrease in the sales return provision compared to the same period last year.
Selling, general and administrative expenses for the first quarter of 2014 were $7.8 million, compared to $7.1 million in the same period of 2013. Selling expenses as a percentage of first quarter 2014 regular sales were 27.9%, down slightly from 29.9% in the same period of 2013 as the Company generated more revenue without significantly increasing fixed selling expenses. G&A expenses in the first quarter of 2014 were $4.0 million compared to $4.1 million in the same period of 2013. First quarter 2014 G&A expenses included a $0.5 million foreign exchange loss due to the appreciation of the US dollar against the RMB. Excluding this foreign exchange loss, G&A expenses in the first quarter of 2014 were $3.5 million. The decrease in G&A expense was primarily due to the fact that the Company's Changping facility commenced production, and related depreciation was recorded in production costs.
R&D expenses for the first quarter of 2014 were $1.7 million, consistent with $1.8 million in the same period in 2013. The Company's main focus in the first quarter of 2014 was the continued optimization of production process for its PPV and varicella vaccine.
Net income attributable to common stockholders was $4,000, or $0.00 per basic and diluted share, compared to a net loss attributable to common stockholders of $2.0 million, or $0.04 per basic and diluted share.
Cash and cash equivalents totaled $101.7 million as of March 31, 2014, compared to $107.2 million as of December 31, 2013. Net cash used in operating activities was $5.8 million during the first quarter 2014. Net cash used in investing activities during the first quarter of 2014 was $2.2 million, which was primarily for payment of property, plant and equipment for the Changping facility. Net cash provided by financing activities during the first quarter of 2014 was $3.4 million, including loan proceeds of $3.3 million.
Conference Call Details
The Company will host a conference call on Thursday, May 22, 2014 at 8:00 a.m. EDT (May 22, 2014 at 8:00 p.m. China Standard Time) to review the Company's financial results and provide an update on recent corporate developments. To access the conference call, please dial 1-877-407-0784 (USA) or 1-201-689-8560 (International). A replay of the call will be available from 11 a.m. EDT on May 22, 2014 to June 5, 2014 at midnight. To access the replay, please dial 1-877-870-5176 (USA) or 1-858-384-5517 (International) and reference the replay pin number 13582662.
A live audio webcast of the call will also be available from the investors section on the corporate web site at www.sinovac.com. A webcast replay can be accessed on the corporate website beginning May 22, 2014 and the replay will remain available for 30 days.
About Sinovac
Sinovac Biotech Ltd. is a China-based biopharmaceutical company that focuses on the research, development, manufacturing and commercialization of vaccines that protect against human infectious diseases including hepatitis A and B, seasonal influenza, H5N1 pandemic influenza (avian flu), H1N1 influenza (swine flu) and mumps, as well as animal rabies vaccine for canines. The Company filed a new drug application for enterovirus 71 (against hand, foot and mouth disease) with China Food & Drug Administration. In 2009, Sinovac was the first company worldwide to receive approval for its H1N1 influenza vaccine, Panflu.1, and has manufactured it for the Chinese Central Government, pursuant to the government-stockpiling program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine to the government-stockpiling program. Sinovac is developing a number of new pipeline vaccines including vaccines for pneumococcal polysaccharides, pneumococcal conjugate, varicella and sIPV. Sinovac sells its vaccines mainly in China and exports selected vaccines to Mongolia, Nepal, and the Philippines. Sinovac has also been granted a license to commercialize seasonal flu vaccine in Mexico and hepatitis A vaccine in Chile.
Safe Harbor Statement
This announcement contains 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 words or phrases such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this press release contain forward-looking statements. Statements that are not historical facts, including statements about Sinovac's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Sinovac does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Helen
Yang/Chris Lee
Sinovac Biotech Ltd.
Tel: +86-10-8279-9659/9696
Fax: +86-10-6296-6910
Email: ir@sinovac.com
Investors:
Lee Roth
The
Ruth Group
Tel: +1-646-536-7012
Email: lroth@theruthgroup.com
Media:
Aaron Estrada
The Ruth Group
Tel: +1-646-536-7028
Email: aestrada@theruthgroup.com
SINOVAC BIOTECH LTD.
Consolidated Balance Sheets
As of December 31, 2013 and March 31,2014
(Expressed in thousands of U.S. Dollars, except for number of shares and per share data)
| Mar 31, 2014 | Dec 31, 2013 | |||||||
| ASSETS | (Unaudited) | (Audited) | ||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 101,652 | $ | 107,242 | ||||
| Accounts receivable | 36,282 | 31,927 | ||||||
| Inventories | 15,653 | 14,329 | ||||||
| Prepaid expenses and deposits | 1,278 | 1,150 | ||||||
| Deferred tax assets | 2,037 | 2,602 | ||||||
| Total current assets | 156,902 | 157,250 | ||||||
| Property, plant and equipment | 65,143 | 67,963 | ||||||
| Prepaid land lease payments | 10,592 | 10,948 | ||||||
| Long-term inventories | 3,618 | 2,781 | ||||||
| Long-term prepaid expenses | 107 | 154 | ||||||
| Prepayments for acquisition of equipment | 1,108 | 708 | ||||||
| Deferred tax assets | 305 | 117 | ||||||
| Licenses | 652 | 772 | ||||||
| Total assets | $ | 238,427 | $ | 240,693 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Bank loans and current portion of long-term debt | $ | 32,844 | $ | 16,217 | ||||
| Current portion of loan from a non-controlling shareholder | 3,237 | 3,324 | ||||||
| Accounts payable and accrued liabilities | 26,529 | 28,037 | ||||||
| Income tax payable | 239 | 246 | ||||||
| Deferred revenue | 183 | 875 | ||||||
| Deferred government grants | 448 | 458 | ||||||
| Total current liabilities | 63,480 | 49,157 | ||||||
| Deferred government grants | 4,507 | 4,746 | ||||||
| Long-term debt | 17,501 | 32,146 | ||||||
| Deferred revenue | 10,717 | 11,005 | ||||||
| Total long term liabilities | 32,725 | 47,897 | ||||||
| Total liabilities | 96,205 | 97,054 | ||||||
| Commitments and contingencies | ||||||||
| EQUITY | ||||||||
| Common stock | 56 | 56 | ||||||
| Additional paid-in capital | 107,619 | 107,393 | ||||||
| Accumulated other comprehensive income | 12,394 | 14,141 | ||||||
| Statutory surplus reserves | 11,808 | 11,808 | ||||||
| Accumulated deficit | (4,710 | ) | (4,714 | ) | ||||
| Total stockholders' equity | 127,167 | 128,684 | ||||||
| Non-controlling interests | 15,055 | 14,955 | ||||||
| Total equity | 142,222 | 143,639 | ||||||
| Total liabilities and equity | $ | 238,427 | $ | 240,693 | ||||
SINOVAC BIOTECH LTD.
Consolidated Statements of Comprehensive Income (Loss)
For the three months ended March 31, 2013 and 2014
(Expressed in thousands U.S. Dollars, except for number of shares and per share data)
| Three Months Ended | ||||||||
| Mar 31, 2014 | Mar 31, 2013 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Sales | $ | 13,546 | $ | 10,052 | ||||
| Cost of sales | 3,278 | 2,992 | ||||||
| Gross profit | 10,268 | 7,060 | ||||||
| Selling, general and administrative expenses | 7,792 | 7,136 | ||||||
| Provision for doubtful accounts | 162 | 282 | ||||||
| Research and development expenses | 1,702 | 1,848 | ||||||
| Loss (income) on disposal and Impairment of property, plant and equipment | - | (2 | ) | |||||
| Total operating expenses | 9,656 | 9,264 | ||||||
| Operating income (loss) | 612 | (2,204 | ) | |||||
| Interest and financing expenses | (750 | ) | (663 | ) | ||||
| Interest income | 780 | 441 | ||||||
| Other income (expenses) | 146 | 61 | ||||||
| Income (loss) before income taxes and non-controlling interests | 788 | (2,365 | ) | |||||
| Income tax benefit (expense) | (347 | ) | (2 | ) | ||||
| Net income (loss) | 441 | (2,367 | ) | |||||
| Less: (income) loss attributable to the non-controlling interests | (437 | ) | 358 | |||||
| Net income (loss) attributable to stockholders of Sinovac | $ | 4 | $ | (2,009 | ) | |||
| Other comprehensive income (loss), net of tax of nil | ||||||||
| Foreign currency translation adjustments | (2,084 | ) | 234 | |||||
| Total comprehensive income (loss) | (1,643 | ) | (2,133 | ) | ||||
| Less: comprehensive (income) loss attributable to non-controlling interests | (100 | ) | 329 | |||||
| Comprehensive income (loss) attributable to stockholders of Sinovac | $ | (1,743 | ) | $ | (1,804 | ) | ||
| Basic and diluted earning (loss) per share | $ | 0.00 | $ | (0.04 | ) | |||
| Weighted average number of shares of common stock outstanding | ||||||||
| Basic | 55,587,029 | 55,097,228 | ||||||
| Diluted | 56,110,870 | 55,097,228 | ||||||
SINOVAC BIOTECH LTD.
Consolidated Statements of Cash Flows
For the three months ended March 31, 2013 and 2014
(Expressed in thousands U.S. Dollars)
| Three months ended | ||||||||
| Mar 31, 2014 | Mar 31, 2013 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash flows provided by (used in) operating activities | ||||||||
| Net income (loss) | $ | 441 | $ | (2,365 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| - deferred income taxes | 311 | 2 | ||||||
| - stock-based compensation | 72 | 76 | ||||||
| - inventory provision | 221 | - | ||||||
| - provision for doubtful accounts | 162 | 282 | ||||||
| - impairment of equipment and loss on disposal | - | 438 | ||||||
| - depreciation of property, plant and equipment and amortization of licenses | 2,631 | 1,626 | ||||||
| - amortization of the prepaid land lease payments | 67 | 72 | ||||||
| - accretion expenses | 27 | - | ||||||
| Changes in: | ||||||||
| - accounts receivable | (4,981 | ) | (3,777 | ) | ||||
| - inventories | (2,879 | ) | (3,075 | ) | ||||
| - income tax payable | 7 | - | ||||||
| - prepaid expenses and deposits | (582 | ) | (144 | ) | ||||
| - deferred revenue | (718 | ) | (1,067 | ) | ||||
| - accounts payable and accrued liabilities | (577 | ) | 2,364 | |||||
| Net cash used in operating activities | (5,798 | ) | (5,568 | ) | ||||
| Cash flows provided by financing activities | ||||||||
| - Loan proceeds | 5,735 | 7,480 | ||||||
| - Loan repayments | (2,458 | ) | - | |||||
| - Proceeds from issuance of common stock, net of share issuance costs | 105 | 164 | ||||||
| - Proceeds from shares subscribed | 49 | 11 | ||||||
| - Government grants received | - | 304 | ||||||
| Net cash provided by financing activities | 3,431 | 7,959 | ||||||
| Cash flows used in investing activities | ||||||||
| - Acquisition of property, plant and equipment | (2,204 | ) | (2,160 | ) | ||||
| Net cash used in investing activities | (2,204 | ) | (2,160 | ) | ||||
| Exchange gain (loss) on cash and cash equivalents | (1,019 | ) | 90 | |||||
| Increase (decrease) in cash and cash equivalents | (5,590 | ) | 321 | |||||
| Cash and cash equivalents, beginning of year | 107,242 | 91,241 | ||||||
| Cash and cash equivalents, end of year | $ | 101,652 | $ | 91,562 | ||||