Sinovac Reports Unaudited Third Quarter 2010 Financial Results
|
Three months ended September 30
|
|
|
2010
|
2009
|
Sales
|
|
|
Inactive hepatitis A vaccines
|
$ 2,290,565
|
5,189,219
|
Recombined hepatitis A&B vaccines
|
145,586
|
1,467,736
|
Influenza vaccines
|
5,425,664
|
12,946,388
|
H5N1vaccines
|
90,957
|
60,966
|
H1N1 vaccines
|
1,599,469
|
1,560,376
|
Total
|
$ 9,552,241
|
21,224,685
|
|
Nine months ended September 30
|
|
|
2010
|
2009
|
Sales
|
|
|
Inactive hepatitis A vaccines
|
$ 10,784,372
|
$ 28,109,874
|
Recombined hepatitis A&B vaccines
|
3,409,355
|
4,767,486
|
Influenza vaccines
|
5,456,696
|
13,310,408
|
H5N1 vaccines
|
90,957
|
60,966
|
H1N1 vaccines
|
4,518,466
|
1,560,377
|
Total
|
$ 24,259,846
|
$ 47,809,111
|
SINOVAC BIOTECH LTD.
|
||||
Incorporated in Antigua and Barbuda
|
||||
Consolidated Balance Sheets
|
||||
(Unaudited)
|
||||
(Expressed in U.S. Dollars)
|
|
|
|
|
September 30,
|
December 31,
|
|||
|
|
2010
|
2009
|
|
ASSETS
|
||||
Current assets
|
||||
Cash and cash equivalents
|
$
|
84,504,538
|
$
|
74,953,212
|
Restricted cash
|
-
|
64,400
|
||
Short-term investments
|
7,912,692
|
7,313,149
|
||
Accounts receivable – net
|
32,578,531
|
24,540,134
|
||
Inventories
|
24,556,152
|
9,599,118
|
||
Prepaid expenses and deposits
|
702,477
|
466,346
|
||
Due from related party
|
3,353,748
|
-
|
||
Deferred tax assets
|
|
806,257
|
|
1,375,174
|
Total current assets
|
154,414,395
|
118,311,533
|
||
Property, plant and equipment
|
62,613,854
|
22,306,688
|
||
Long term inventories
|
423,884
|
2,642,734
|
||
Deposits for acquisition of equipment
|
233,133
|
-
|
||
Deferred tax assets
|
498,300
|
520,077
|
||
Licenses and permits
|
404,749
|
695,109
|
||
Total assets
|
$
|
218,588,315
|
$
|
144,476,141
|
LIABILITIES AND EQUITY
|
||||
Current liabilities
|
||||
Loans payable
|
$
|
2,985,921
|
$
|
17,697,821
|
Accounts payable and accrued liabilities
|
16,368,214
|
17,784,509
|
||
Income tax payable
|
825,136
|
6,413,734
|
||
Deferred revenue
|
5,116,258
|
5,386,749
|
||
Deferred government grants
|
1,515,161
|
1,331,476
|
||
Deferred tax liability
|
1,246,155
|
1,398,123
|
||
Total current liabilities
|
|
28,056,845
|
|
50,012,412
|
Deferred government grants
|
2,567,183
|
2,646,669
|
||
Loans payable
|
8,435,228
|
-
|
||
Long term payable for acquisition of assets
|
6,108,158
|
-
|
||
Long term payable
|
416,250
|
407,794
|
||
Deferred revenue
|
|
7,086,799
|
|
6,942,824
|
Total long term liabilities
|
|
24,613,618
|
|
9,997,287
|
Total liabilities
|
|
52,670,463
|
|
60,009,699
|
Commitments and contingencies
|
|
|||
EQUITY
|
||||
Preferred stock
|
-
|
-
|
||
Authorized 50,000,000 shares at par value of $0.001 each
|
||||
Issued and outstanding: nil
|
||||
Common stock
|
54,172
|
42,585
|
||
Authorized: 100,000,000 shares at par value of $0.001 each
|
||||
Issued and outstanding: 54,171,861 (2009 – 42,585,261 )
|
||||
Additional paid in capital
|
104,809,052
|
42,533,876
|
||
Accumulated other comprehensive income
|
5,810,268
|
4,225,196
|
||
Dedicated reserves
|
9,863,251
|
9,863,251
|
||
Retained earnings
|
|
14,433,743
|
|
13,993,287
|
Total stockholders' equity
|
134,970,486
|
70,658,195
|
||
Non-controlling interests
|
|
30,947,366
|
|
13,808,247
|
Total equity
|
|
165,917,852
|
|
84,466,442
|
Total liabilities and equity
|
$
|
218,588,315
|
$
|
144,476,141
|
SINOVAC BIOTECH LTD.
|
||||||||
Consolidated Statements of Income (Loss) and Comprehensive Income
|
||||||||
Three Months and Nine Months Ended September 30, 2010 and 2009
|
||||||||
(Unaudited)
|
||||||||
(Expressed in U.S. Dollars)
|
||||||||
|
|
Three months ended
|
|
Nine months ended
|
||||
30-Sep
|
30-Sep
|
|||||||
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
$
|
9,552,241
|
$
|
21,224,685
|
$
|
24,259,846
|
$
|
47,809,111
|
|
Cost of sales - (exclusive of depreciation of land-use rights and amortization of licenses and permits of $105,659 (2009 - $104,732) for three months and $315,284 (2009 -$314,081) for nine months
|
|
3,031,414
|
|
3,675,695
|
|
5,690,066
|
|
8,886,251
|
|
|
|||||||
Gross profit
|
|
6,520,827
|
|
17,548,990
|
|
18,569,780
|
|
38,922,860
|
|
|
|||||||
Selling, general and administrative expenses
|
4,412,934
|
3,519,977
|
11,610,212
|
11,927,879
|
||||
|
||||||||
Research and development expenses - net of $36,016 (2009- $133,176) for three months and $17,068 (2009- $261,861) for nine months in government research grants
|
2,510,903
|
1,443,834
|
4,878,294
|
2,753,009
|
||||
Depreciation of property, plant and equipment and amortization of licenses and permits
|
|
333,859
|
|
179,962
|
|
1,266,300
|
|
511,835
|
|
|
|||||||
Total operating expenses
|
|
7,257,696
|
|
5,143,773
|
|
17,754,806
|
|
15,192,723
|
|
|
|||||||
Operating income (loss)
|
(736,869)
|
12,405,217
|
814,974
|
23,730,137
|
||||
Interest and financing expenses
|
(155,712)
|
(246,036)
|
(703,070)
|
(571,349)
|
||||
Interest and other income
|
|
555,311
|
|
77,300
|
|
520,657
|
|
243,451
|
|
|
|||||||
Income (loss) before income taxes and non-controlling interests
|
(337,270)
|
12,236,481
|
632,561
|
23,402,239
|
||||
Income tax expenses
|
|
(198,970)
|
|
(3,782,463)
|
|
(820,773)
|
|
(6,426,330)
|
|
|
|||||||
Consolidated net income (loss)
|
(536,240)
|
8,454,018
|
(188,212)
|
16,975,909
|
||||
Less: net income (loss) attributable to non-controlling interests
|
|
(238,681)
|
|
3,228,659
|
|
(628,668)
|
|
5,917,215
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to stockholders
|
$
|
(297,559)
|
$
|
5,225,359
|
$
|
440,456
|
$
|
11,058,694
|
Net income (loss)
|
$
|
(536,240)
|
$
|
8,454,018
|
$
|
(188,212)
|
$
|
16,975,909
|
Other comprehensive income
|
||||||||
Foreign currency translation adjustment
|
|
1,723,779
|
|
64,108
|
|
2,161,345
|
|
90,728
|
Total comprehensive income
|
1,187,539
|
8,518,126
|
1,973,133
|
17,066,637
|
||||
Less: comprehensive income (loss) attributable to non-controlling interests
|
|
221,191
|
|
3,229,599
|
|
(52,395)
|
|
5,932,451
|
Comprehensive income attributable to stockholders
|
$
|
966,348
|
$
|
5,288,527
|
$
|
2,025,528
|
$
|
11,134,186
|
Earnings (loss) per share – basic and diluted
|
$
|
(0.01)
|
$
|
0.12
|
$
|
0.01
|
$
|
0.26
|
Weighted average number of shares
|
|
|
|
|
|
|
|
|
of common stock outstanding
|
||||||||
- Basic
|
54,140,655
|
42,428,755
|
52,834,517
|
42,574,921
|
||||
- Diluted
|
|
54,140,655
|
|
43,631,572
|
|
53,875,179
|
|
42,758,104
|
SINOVAC BIOTECH LTD.
|
||||||||
Consolidated Statements of Cash Flows
|
||||||||
Three Months and Nine Months Ended September 30, 2010 and 2009
|
||||||||
(Unaudited)
|
||||||||
(Expressed in U.S. Dollars)
|
||||||||
|
|
Three Months ended September 30
|
|
Nine Months ended September 30
|
||||
|
|
2010
|
2009
|
2010
|
2009
|
|||
Cash flows from (used in) operating activities
|
||||||||
Net Income (loss) for the period
|
$
|
(536,240)
|
$
|
8,454,018
|
$
|
(188,212)
|
$
|
16,975,909
|
Adjustments to reconcile net income to net cash from
|
||||||||
(used by) operating activities:
|
||||||||
- deferred income taxes
|
275,164
|
551,478
|
412,873
|
1,399,428
|
||||
- write-off of equipment and loss (gain) on disposal
|
49,631
|
641
|
869,042
|
(6,708)
|
||||
- stock-based compensation
|
95,166
|
180,152
|
298,062
|
308,195
|
||||
- provision (recovery) for doubtful accounts
|
-
|
(1,595,787)
|
-
|
717,137
|
||||
- inventory provision (recovery)
|
(13,272)
|
-
|
243,793
|
-
|
||||
- depreciation of property, plant and equipment, and amortization of licenses and permits
|
901,792
|
591,664
|
2,782,896
|
1,547,454
|
||||
- research and development expenditures qualifying for government grant
|
(36,016)
|
(133,176)
|
(17,068)
|
(261,861)
|
||||
- deferred government grant recognized in income
|
(66,374)
|
(61,707)
|
(198,059)
|
(153,390)
|
||||
- accounts receivable
|
(5,841,219)
|
(3,545,198)
|
(7,400,539)
|
(18,088,750)
|
||||
- inventories
|
(3,608,516)
|
(4,063,146)
|
(12,086,225)
|
(9,198,785)
|
||||
- income tax payable
|
(923,228)
|
3,482,345
|
(5,621,908)
|
3,309,317
|
||||
- prepaid expenses and deposits
|
80,529
|
(197,728)
|
(224,222)
|
58,098
|
||||
- long term payable, deferred revenue and advances from customers
|
-
|
147,160
|
(374,556)
|
9,791,728
|
||||
- accounts payable and accrued liabilities
|
|
569,443
|
3,646,229
|
(4,563,723)
|
2,362,439
|
|||
Net cash provided by (used in) operating activities
|
|
(9,053,140)
|
7,456,945
|
(26,067,846)
|
8,760,211
|
|||
Cash flows from (used in) financing activities
|
||||||||
- Loan proceeds
|
-
|
-
|
9,583,379
|
16,074,281
|
||||
- Loan repayment
|
-
|
(4,384,356)
|
(16,094,224)
|
(4,384,356)
|
||||
- Proceeds from issuance of common stock net of share issuance cost
|
68,800
|
693,285
|
61,988,701
|
693,285
|
||||
- Repurchase of common shares
|
-
|
-
|
-
|
(335,831)
|
||||
- Loan to non-controlling shareholder of Sinovac Beijing
|
-
|
1,461,298
|
(3,286,695)
|
-
|
||||
- Subscriptions received
|
-
|
4,035
|
-
|
4,035
|
||||
- Dividends paid to non-controlling shareholder of Sinovac Beijing
|
-
|
(3,846,501)
|
(3,285,902)
|
(3,846,501)
|
||||
- Repayment to non-controlling shareholder of Sinovac Dalian
|
(519,075)
|
-
|
-
|
-
|
||||
- Government grant received
|
|
-
|
171,326
|
235,818
|
171,326
|
|||
Net cash provided by (used in) financing activities
|
|
(450,275)
|
(5,900,913)
|
49,141,077
|
8,376,239
|
|||
Cash flows used in investing activities
|
||||||||
- Restricted cash
|
308,477
|
-
|
64,400
|
-
|
||||
- Proceeds from disposal of equipment
|
158,443
|
-
|
349,913
|
-
|
||||
- Proceeds from redemption of short-term investments
|
2,173,792
|
-
|
7,314,187
|
-
|
||||
- Purchase of short-term investments
|
-
|
-
|
(7,775,365)
|
-
|
||||
- Deposits for acquisition of equipmen
t
|
(229,087)
|
-
|
(229,087)
|
-
|
||||
- Acquisition of property, plant and equipment
|
|
(3,526,286)
|
(1,718,443)
|
(13,888,818)
|
(3,480,444)
|
|||
Net cash used in investing activities
|
|
(1,114,661)
|
(1,718,443)
|
(14,164,770)
|
(3,480,444)
|
|||
Exchange effect on cash and cash equivalents
|
|
484,277
|
37,748
|
642,865
|
29,681
|
|||
Increase (decrease) in cash and cash equivalents
|
|
(10,133,799)
|
(124,663)
|
9,551,326
|
13,685,687
|
|||
|
||||||||
Cash and cash equivalents, beginning of period
|
|
94,638,337
|
46,704,452
|
74,953,212
|
32,894,102
|
|||
Cash and cash equivalents, end of period
|
$
|
84,504,538
|
$
|
46,579,789
|
$
|
84,504,538
|
$
|
46,579,789
|
|
|
|||||||
Cash paid for interest
|
$
|
163,599
|
$
|
285,423
|
$
|
821,776
|
$
|
615,691
|
Cash paid (received) for income taxes
|
$
|
838,993
|
$
|
-251,359
|
$
|
5,200,744
|
$
|
1,717,585
|
Supplemental schedule of non-cash activities:
|
||||||||
Acquisition of property, plant and equipment included in
|
||||||||
accounts payable and accrued liabilities
|
$
|
8,828,052
|
$
|
-695,653
|
$
|
9,788,178
|
$
|
699,965
|
Sinovac Biotech Ltd. (SINOVAC) is a China-based biopharmaceutical company that focuses on the research, development, manufacturing, and commercialization of vaccines that protect against human infectious diseases.
SINOVAC's product portfolio includes vaccines against COVID-19, enterovirus 71 (EV71) infected Hand-Foot-Mouth disease (HFMD), hepatitis A and B, seasonal influenza, pneumococcal disease, H5N1 pandemic influenza (avian flu), H1N1 influenza (swine flu), varicella, mumps, and poliomyelitis.
SINOVAC's COVID-19 vaccine, CoronaVac®, has been approved for use in more than 60 countries and regions worldwide. The Healive®, a hepatitis A vaccine manufactured by the Company, passed the assessment under WHO prequalification procedures in 2017. The EV71 vaccine, Inlive®, is an innovative vaccine, that was commercialized in China in 2016. In 2022, SINOVAC's Sabin-strain inactivated polio vaccine (sIPV) was prequalified by WHO.
SINOVAC was the first company that granted approval for its H1N1 influenza vaccine Panflu.1®, which has supplied to 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 has been continually dedicating itself to new vaccine research and development, with more combination vaccine products in the pipeline, and constantly exploring opportunities in the international market. SINOVAC looks forward to conducting more extensive and in-depth trade and cooperation with more countries, enterprises, and professional institutions.
For more information, please see the Company’s website at www.sinovac.com.
Contacts
Sinovac Biotech Ltd.
Helen Yang
+86-10-8279-9871 or
+86-10-5693-1897
Fax: +86-10-6296-6910
ir@sinovac.com
ICR Inc.
Bill Zima
U.S.: 1-646-308-1707
william.zima@icrinc.com