SINOVAC Reports Unaudited and Unreviewed Second Half of 2025 Financial Results and Files 2025 Annual Report on Form 20-F

BEIJING--Sinovac Biotech Ltd. (NASDAQ: SVA) (“SINOVAC” or the “Company”), a leading provider of biopharmaceutical products in China, today announced it filed its annual report on Form 20-F for the fiscal year ended December 31, 2025 (the “Annual Report”) with the U.S. Securities and Exchange Commission. An electronic copy of the Annual Report can be accessed at the Company's website at www.sinovac.com.cn or www.sinovac.com and at the SEC's website www.sec.gov.   

The Company also announced its unaudited and unreviewed financial results for the second half of 2025 and audited financial results for the full year ended December 31, 2025.

Second Half and Full Year of 2025 Financial Summary

• Sales for the six months ended December 31, 2025 were $255.7 million, compared to $232.7 million in the prior year period.

• Sales in 2025 were $386.0 million, compared to $361.4 million in the prior year.

• The Company posted $38.0 million of net loss attributable to common shareholders, or a loss of $0.53 per basic and diluted share, in the six months ended December 31, 2025, compared to net loss attributable to common shareholders of $2.9 million, or a loss of $0.04 per basic and diluted share, in the prior year period.

• The Company posted $59.7 million of net loss attributable to common shareholders, or a loss of $0.83 per basic and diluted share in 2025, compared to net income attributable to common shareholders of $90.9 million, or an income of $1.27 per basic and diluted share, in the prior year.

Mr. Weidong Yin, CEO of SINOVAC, commented, “In 2025, SINOVAC continued to advance its corporate strategy with a strong focus on globalization. I’m encouraged that our overseas business has emerged as a primary growth driver, significantly contributing to our full-year sales. While international expansion remains our core focus, our research and development (“R&D”) continues to yield positive progress. Notably, our tetanus vaccine was approved for commercial launch in 2025. Targeting hospital clinics and emergency departments, this product successfully expands our commercial footprint beyond the network of Centers for Disease Control and Prevention. Furthermore, we have multiple key vaccines nearing late-stage approval, which will further support our global growth potential in the coming years.”

Robust Overseas Growth and Resilient Chinese Mainland Market

In 2025, the Company’s globalization strategy delivered significant progress. The Company’s overseas business maintained robust growth, offsetting a slight decrease in Chinese domestic sales. For the full year 2025, sales from overseas markets surged to $124.8 million, representing a year-over-year increase of 93.9%. Consequently, the contribution of overseas sales to the Company's total top line almost doubled from 17.8% in 2024 to 32.3% in 2025.

The growth of overseas sales was driven by several core products. Notably, the supply of the varicella vaccine demonstrated strong commercial achievement overseas, with full-year sales increasing nearly ninefold. Furthermore, the supply of the Enterovirus Type 71 (EV71) vaccine progressed steadily outside the Chinese Mainland, with overseas sales nearly doubling. The sales of the trivalent influenza vaccine also delivered solid performance, quadrupling its overseas sales year over year. This momentum was fueled by deepened market penetration and landmark commercial breakthroughs in emerging markets. The Company was the exclusive winner of the Chilean influenza vaccine global tender for both 2025 and 2026. Additionally, SINOVAC signed two Product Development Partnership agreements with the Brazilian Ministry of Health for local production and a 10-year supply commitment, laying a solid foundation for its long-term presence in Latin America.

In the Chinese Mainland market, despite intensifying competition and moderating demand, the sales of our key proprietary products, including the EV71 vaccine, hepatitis A vaccine and quadrivalent influenza vaccine remained stable. Meanwhile, domestic sales for the poliomyelitis vaccine, trivalent influenza vaccine and varicella vaccine experienced varying degrees of decline, primarily due to reduced procurement volume under the Chinese Mainland public market.

Strategic Pipeline Advancement Toward Commercialization

In 2025, the Company accelerated the advancement of its R&D pipeline, forming a clear and tiered portfolio. To date, the Company has one new product approved for market launch, two product candidates under marketing authorization application review, and four product candidates that have entered or are preparing to enter Phase III clinical trials. Meanwhile, two major candidates based on mRNA technology are being studied in the clinical stage. The advancement of these pipeline projects will serve as a vital engine driving the Company's long-term growth potential. The key near-term pipeline products include:

Lyophilized Rabies Vaccine (Serum-Free Vero Cell) (PVRV-SF): Expected to be the first rabies vaccine in the Chinese Mainland market with a serum-free and animal-origin-free component process, this product candidate is currently under marketing application review and is anticipated to be approved for launch by July 2026. The Company is concurrently pursuing its WHO prequalification application and conducting international Phase III clinical trials overseas, accelerating the global deployment of this candidate.

Bivalent Enterovirus Vaccine (HFMD2): As the world's first bivalent HFMD vaccine candidate under Phase III clinical trial evaluation, the Company successfully obtained primary endpoint data and monitoring data from the first epidemic season in March 2026. Preliminary results indicate that the vaccine candidate exhibits a favorable safety profile and satisfactory efficacy results.

13-Valent Pneumococcal Conjugate Vaccine (PCV13): The Phase III clinical trial for this product candidate is progressing smoothly. We expect to complete all clinical trials and file the marketing authorization application within 2026. Additionally, the Company obtained clinical trial approval from the Philippine regulatory authority in April 2026 and plans to conduct an infant PCV13 trial enrolling participants aged approximately 2 months (42 to 89 days) to support global regulatory applications.

Quadrivalent Enterovirus Vaccine (HFMD4): Following favorable safety and immunogenicity results observed in the Phase II clinical trial of this vaccine candidate, its Phase III clinical trial was initiated in June 2026. As the world's first quadrivalent HFMD vaccine candidate to reach this stage, it covers the major pathogenic serotypes and is expected to significantly reduce both the incidence of HFMD and the risk of severe HFMD cases.

Group ACYW135 Meningococcal Conjugate Vaccine (MCV4): The Company is developing an MCV4 vaccine candidate leveraging its bacterial vaccine platform. Phase III clinical trials for this product candidate were officially initiated in March 2026.

Fully Human Anti-Tetanus Toxin Monoclonal Antibody (HmAb-TT): Beyond the core vaccine portfolio, the Company is developing an innovative monoclonal antibody candidate for the emergency prophylaxis of tetanus. As the Company’s first self-developed monoclonal antibody candidate in this segment, Phase II clinical results have demonstrated a favorable safety profile, as well as antibody levels significantly higher than those of tetanus immunoglobulin currently available. Following these positive findings, the Phase III clinical trial for HmAb-TT is scheduled to officially initiate in June 2026.

Unaudited and Unreviewed Financial Results for the Second Half of 2025

Sales in the second half of 2025 were $255.7 million compared to $232.7 million in the prior year period. Export markets led this expansion, posting a 144.3% increase primarily driven by higher procurement of varicella vaccines.

Cost of sales decreased to $75.2 million in the second half of 2025 from $81.5 million in the prior year period. The decrease was mainly due to lower expenses recognized in connection with the long-term employee incentive plan established in 2022 (the "Employee Incentive Plan").

Gross profit in the second half of 2025 increased to $180.5 million from $151.1 million in the prior year period. Gross profit margin increased from 65.0% in the second half of 2024 to 70.6% in the second half of 2025, primarily driven by the expansion of international sales with higher gross profit.

Selling, general and administrative expenses in the second half of 2025 were $185.8 million, compared to $212.3 million in the prior year period. The decrease was mainly due to lower expenses recognized in connection with the Employee Incentive Plan.

Research and development expenses in the second half of 2025 were $89.3 million, a decrease from $128.3 million in the prior year period. The decrease was mainly due to lower expenses recognized in connection with the Employee Incentive Plan.

Loss on disposal and impairment of property, plant and equipment (“PP&E”) in the second half of 2025 was $135.4 million, compared to $25.0 million in the prior year period. This was because the Company identified impairment indicators on certain of its machinery, equipment, construction in progress and leasehold improvements and a drop in the lease market price of certain plants located in Hangzhou and Beijing, and recorded impairment of PP&E.

Other income, net in the second half of 2025 was $46.7 million, a decrease from $233.0 million in the prior year period. The change was mainly due to a decrease in investment income earned from investment products issued by financial institutions, and net foreign exchange loss reflecting fluctuations in foreign exchange rates.

Net loss in the second half of 2025 was $102.3 million, compared to a net loss of $18.3 million in the prior year period.

Net loss attributable to common shareholders was $38.0 million, or a loss of $0.53 per basic and diluted share, in the second half of 2025, compared to a loss attributable to common shareholders of $2.9 million, or a loss of $0.04 per basic and diluted share, in the prior year period.

In 2018, 11,800,000 common shares (the “2018 PIPE Shares”) 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's issued and outstanding common shares 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’s common stock outstanding would be 60,060,702. On that basis, the basic and diluted net loss per share for the second half of 2025 would be $0.63, compared to basic and diluted net loss per share of $0.05 in the prior year period.

The Company’s financial statements for the second half of 2025 are prepared and presented in accordance with U.S. GAAP. However, they have not been audited or reviewed by the Company’s independent registered public accounting firm.

Financial Results for the Year Ended December 31, 2025

Sales in 2025 were $386.0 million compared to $361.4 million in the prior year. The increase was primarily driven by higher sales of varicella vaccines and influenza vaccines resulting from increased procurement by international customers, partially offset by a decline in sIPV vaccine sales due to lower domestic birth rates.

Cost of sales decreased to $124.0 million in 2025 from $140.7 million in 2024. The decrease was mainly due to lower expenses recognized in connection with the Employee Incentive Plan, and our ongoing efforts in cost reduction and efficiency improvement.

Gross profit increased to $262.0 million in 2025 from $220.7 million in the prior year. Gross profit margin increased from 61.1% in 2024 to 67.9% in 2025, primarily driven by a favorable shift in product and channel mix toward higher-margin international sales, as well as improved cost efficiencies in production.

Selling, general and administrative expenses in 2025 were $333.0 million, compared to $420.9 million in the prior year. The decrease was mainly due to lower expenses recognized in connection with the Employee Incentive Plan.

Research and development expenses in 2025 were $216.2 million, a decrease from $270.7 million in the prior year. The decrease was mainly due to lower expenses recognized in connection with the Employee Incentive Plan.

Loss on disposal and impairment of PP&E and intangible assets, and loss on impairment of goodwill in 2025 was $202.8 million, compared to $30.3 million in the prior year. This was because the Company identified impairment indicators on certain of its machinery, equipment, construction in progress and leasehold improvements and a drop in the lease market price of certain plants located in Hangzhou and Beijing, and recorded impairment of $137.6 million of PP&E. In addition, the Company recorded impairment of $65.5 million of in-process research and development assets and goodwill generated during the acquisition of a subsidiary that produces rabies vaccines. The Company identified impairment indicators, including fierce competition, delayed vaccine market launch, and changes in product positioning in 2025.

Other income, net in 2025 was $208.6 million, a decrease from $527.6 million in the prior year, which primarily consisted of (i) investment income of $307.4 million and $482.1 million in 2025 and 2024, respectively, earned from investment products issued by financial institutions; and (ii) a net foreign exchange loss of $109.8 million in 2025 and a net foreign exchange gain of $61.4 million in 2024, resulting from fluctuations in foreign exchange rates.

Net loss in 2025 was $198.8 million, compared to a net income of $40.7 million in the prior year.

Net loss attributable to common shareholders was $59.7 million, or a loss of $0.83 per basic and diluted share in 2025, compared to an income attributable to common shareholders of $90.9 million, or an income of $1.27 per basic and diluted share, in the prior year.

Excluding the 2018 PIPE Shares, the basic and diluted weighted average number of the Company’s common shares outstanding would be 60,060,702. On that basis, the basic and diluted net loss per share in 2025 would be $0.99, compared to basic and diluted net income per share of $1.51 in the prior year.

As of December 31, 2025, cash and cash equivalents and restricted cash totaled $1.2 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 2025, net cash used in operating activities was $512.2 million, mainly reflecting the tax payments made during the year and decline in cash collections from sales; net cash provided by investing activities was $4.4 billion, mainly reflecting the net position of debt and equity securities maturity and sales over purchases; and net cash used in financing activities was $3.4 billion, mainly reflecting the payment of dividends.

In 2025, $20.9 million (RMB145.8 million) in dividends was declared and paid by Sinovac Biotech Co., Ltd. (“Sinovac Beijing”) and Sinovac (Dalian) Vaccine Technology Co., Ltd. (“Sinovac Dalian”) to their respective minority shareholders. $55.7 million (RMB389.3 million) in dividends was declared and paid by such subsidiaries to Sinovac Holding Group Co., Ltd. (“Sinovac Beijing Holding”) in 2025. Additionally, the Company's board of directors had declared a special cash dividend of $55.00 per common share with total $3,958.2 million in April 2025, of which $3,300.3 million in dividends was paid by Sinovac Antigua to its shareholders in 2025, and $657.9 million was retained as deferred dividend payment to Sinovac Antigua's shareholders, mainly holding 2018 PIPE Shares.

Subsequent Events

In 2026, $88.0 million (RMB600.0 million) in dividends was declared and paid by Sinovac Beijing, and Sinovac Dalian, of which $24.4 million (RMB166.5 million) was declared and paid to their respective minority shareholders, and $63.6 million (RMB433.5 million) in dividends was declared and paid by such subsidiaries to Sinovac Beijing Holding.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Such statements are based upon current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s or Board’s control, which may cause actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company and Board do not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.