Sinovac Biotech’s Infighting Over Billions of Dollars Intensifies (AI Translation)
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This article was translated from Chinese using AI. The translation may contain inaccuracies. Click the button on the right to hide or reveal the original version.
2023年7月6日，北京，科兴控股生物技术有限公司。一场延宕近十年的控制权之争再度升级，这次外界关注的焦点首先是新冠疫苗生意2021年以来的巨额“红利”如何分配。
文｜财新周刊 唐爱琳 杨玉琪 于宁
By Caixin Weekly's Tang Ailin, Yang Yuqi, and Yu Ning
随着一场延宕近十年的控制权之争再度升级，在新冠疫情期间因早期推出灭活疫苗而备受瞩目的科兴控股生物技术有限公司（NASDAQ：SVA ，下称“科兴生物”）走上风口浪尖。这次外界关注的焦点首先是新冠疫苗生意2021年以来的巨额“红利”如何分配。
As a near-decade-long battle for control escalates once again, Sinovac Biotech Ltd. (NASDAQ: SVA), which rose to prominence during the COVID-19 pandemic for its early rollout of inactivated vaccines, has found itself back in the spotlight. This time, much of the external scrutiny centers on how to divide the enormous "dividends" generated by the company’s COVID vaccine business since 2021.
北京时间7月9日8时，一场特殊的股东大会在加勒比岛国安提瓜和巴布达Stapleton律所的办公室和线上同步举行：科兴生物董事长李嘉强宣布开会，旋即宣布休会。随后，股东们在董事卢毓琳主持下召开续会，并投票罢免了李嘉强任董事长的董事会，重组了由科兴生物股东赛富基金提名的十人董事会。
At 8:00 a.m. Beijing time on July 9, an unusual shareholders’ meeting took place both in-person at the offices of Stapleton Law in Antigua and Barbuda, and online. Sinovac Biotech’s chairman, Li Jiaqiang, opened the meeting and immediately announced an adjournment. Afterward, shareholders, under the chairmanship of director Lu Yulin, reconvened the meeting, voted to remove Li Jiaqiang’s board, and installed a new 10-member board nominated by Sinovac Biotech shareholder, SAIF Partners.
会议结果不被李嘉强主导的董事会接受，称休会后其他人无权也没有法律基础“重新召开”会议，即他们和十人董事会互不认可，都认为自身才具备合法性。究竟孰是孰非，与巨额“红利”分配关系密切——谁是合法股东，谁有权主导分红？这背后又涉及跨中、美、安提瓜和巴布达、英国等多个国家的诉讼和纷争。
The results of the meeting were not accepted by the board of directors led by Li Jiaqing, who stated that no one else had the authority or legal basis to "reconvene" the meeting after adjournment—in other words, the two sides and the ten-member board do not recognize each other, each claiming legitimacy. At the heart of the dispute, closely tied to the distribution of massive "dividends," is the question of who the legitimate shareholders are and who has the right to lead the dividend allocation. The issue is further complicated by lawsuits and disputes spanning China, the United States, Antigua and Barbuda, the United Kingdom, and other countries.
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Caixin is acclaimed for its high-quality, investigative journalism. This section offers you a glimpse into Caixin’s flagship Chinese-language magazine, Caixin Weekly, via AI translation. The English translation may contain inaccuracies.
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Sinovac Biotech’s Infighting Over Billions of Dollars Intensifies (AI Translation)
Explore the story in 30 seconds
- Sinovac Biotech, known for its COVID-19 vaccine windfall (approx. RMB 90 billion profit since 2021), is embroiled in a protracted control and boardroom battle among major shareholders.
- Disputes center on legitimacy of board decisions and the allocation of massive dividends: a recent extraordinary shareholders’ meeting resulted in competing board claims and a planned $55/share special dividend (totaling ~$4 billion).
- The battle extends across multiple jurisdictions, with ongoing lawsuits over PIPE share validity and unresolved questions about control, future governance, and dividend distribution.
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Explore the story in 3 minutes
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Who’s Who
- Sinovac Biotech Ltd.
科兴控股生物技术有限公司 - Sinovac Biotech Ltd. (SVA), a Chinese biopharmaceutical company, has been embroiled in a decade-long control dispute, intensified by the substantial dividends from its COVID-19 vaccine. The contention primarily revolves around who holds legitimate control and has the right to distribute these profits, with two rival boards each claiming legitimacy. This battle involves complex legal proceedings across multiple countries.
- Sinovac Life Sciences Co. Ltd.
北京科兴中维生物技术有限公司 - Sinovac Life Sciences Co. Ltd. (Beijing KeXingZhongWei Biotechnology Co. Ltd.) developed the inactivated vaccine "Kexing Kellefu." In 2021, the company earned 92.1 billion yuan, a 93-fold increase from 2020. This substantial profit led to a dispute over how it should be distributed.
- Sinovac Holdings (Hong Kong) Limited
科兴控股（香港）有限公司 - Sinovac Holdings (Hong Kong) Limited (科兴控股（香港）有限公司) is a wholly-owned subsidiary of Sinovac Biotech Ltd., an Antiguan company. It was the sole owner of Sinovac Life Sciences Co., Ltd. until 2019. Sinovac Holdings (Hong Kong) Limited holds 73.09% of Beijing Sinovac Biological Products Co., Ltd. and 59.24% of Sinovac Life Sciences Co., Ltd.
- Sinovac Biological Products Co. Ltd.
北京科兴生物制品有限公司 - Sinovac Biological Products Co. Ltd., known for its inactivated COVID-19 vaccine, is embroiled in a significant power struggle over the distribution of amassed profits, estimated at approximately $100 billion RMB ($14.5 billion USD). This conflict involves legal battles across multiple countries and revolves around determining legitimate shareholders and leadership.
- Tangshan Yian Bioengineering Co., Ltd.
唐山怡安生物工程有限公司 - Tangshan Yian Bioengineering Co., Ltd. was co-founded in 1993 by Yin Weidong. The company focused on the industrialization of hepatitis A diagnostic reagents and developed China's first inactivated hepatitis A vaccine in 1999.
- PKU Unnamed Bioengineering Company
北大未名生物工程公司 - PKU Unnamed Bioengineering Company was co-founded by Pan Aihua, who previously served as an associate director in Peking University's biotechnology department. The company later evolved into Unnamed Group.
- Unnamed Group
未名集团 - Unnamed Group is a company co-founded by Pan Aihua, an initial investor in Sinovac Biotech Ltd. (Sinovac). Pan Aihua, previously a deputy director in Peking University's biotechnology department, established Peking University Unnamed Bioengineering Company, which eventually grew into Unnamed Group.
- Shandong Unnamed Biopharmaceutical Co., Ltd.
山东未名生物医药股份公司 - Shandong Unnamed Biopharmaceutical Co., Ltd. is a subsidiary of Unnamed Group, founded by Pan Aihua. It controls a 26.91% stake in Beijing Sinovac Bioengineering Co., Ltd.
- Unnamed Biopharmaceutical Co., Ltd.
未名生物医药有限公司 - The provided article does not contain information about "Unnamed Biopharmaceutical Co., Ltd."
- Strong New Technology Group
强新科技集团 - Strong New Technology Group, led by Li Jiaqiang, holds a significant 33% stake in Sinovac Biotech, making them a key player in the company's control struggles. They have been instrumental in challenging Sinovac's previous board and played a pivotal role in the 2018 shareholder meeting that led to a contested leadership change.
- Sino Biopharmaceutical Limited
中国生物制药有限公司 - Sino Biopharmaceutical Limited (Chinese: 中国生物制药有限公司) is a family-owned enterprise of Thailand's Charoen Pokphand Group. It was incorporated in the Cayman Islands in February 2000 and listed on the Hong Kong Stock Exchange in September 2000. It holds a 15.03% stake in Sinovac Life Sciences.
- Hong Kong Junling Co., Ltd.
香港俊领有限公司 - Hong Kong Junling Co., Ltd. (香港俊领有限公司) is a wholly-owned subsidiary of China Biopharmaceutical. In late 2020, Hong Kong Junling invested approximately US$515 million (RMB 3.6 billion) to acquire a 15.03% stake in Sinovac Kexing Biomedical, a subsidiary of Sinovac Biotech Ltd., for the production of the COVID-19 vaccine.
- Keding Investment (Hong Kong) Co., Ltd.
科鼎投资（香港）有限公司 - Keding Investment (Hong Kong) Co., Ltd. is a company linked to Yin Weidong's team. In November 2020, it became a shareholder in Sinovac Keding, holding a 12.69% stake. By proportionate calculation, Keding Investment received approximately 6 billion RMB in dividends from Sinovac Keding's profits.
- Sinovac (Dalian) Vaccine Technology Co., Ltd.
科兴（大连）疫苗技术有限公司 - Sinovac (Dalian) Vaccine Technology Co., Ltd. is one of Sinovac Biotech Ltd.'s three main subsidiaries, with Sinovac Biotech Ltd. holding 68% of its shares. The company's financial contributions to its parent company are significant, with an estimated 1 billion RMB in dividends.
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What Happened When
- 1985：
- Yin Weidong gained prominence after isolating the TZ84 hepatitis A virus.
- 1993：
- Yin Weidong partnered with foreign investors to establish Tangshan Yian Bioengineering Co., Ltd.
- 1999：
- China’s first inactivated hepatitis A vaccine was launched.
- 2001：
- Yin Weidong and Pan Aihua co-founded Beijing Kexing.
- 2003：
- Through a reverse takeover, they listed on the OTCBB in the U.S., predecessor to Sinovac Biotech.
- May 2009：
- Sinovac Life Sciences Co., Ltd. was established.
- 2009：
- Sinovac Biotech was listed on NASDAQ.
- February 2018：
- Sinovac Biotech annual shareholders’ meeting where Pan Aihua and Li Jiaqiang opposed reappointment of Yin Weidong’s board; new directors elected but legitimacy questioned.
- March 2018：
- Sinovac Biotech filed a lawsuit in the Delaware Court of Chancery, U.S. over board control.
- March 2018：
- Sinovac Antigua Company filed suit in Massachusetts court against 1 Globe and others.
- A week after March 2018：
- 1 Globe filed petition with High Court of Antigua and Barbuda for board recognition.
- April & May 2018：
- Violent clashes broke out at two Beijing Sinovac facilities; production suspended.
- July 2018：
- Yin Weidong arranged PIPE investment to WeWu Capital and Shangcheng Capital; private placement transaction.
- July 2018：
- Privatization process formally terminated after over two years of deadlock.
- From 2018 to 2025：
- 1 Globe’s petition for new board twice rejected by courts in Antigua and Barbuda, but ultimately upheld by the UK Privy Council.
- April 14, 2020：
- CoronaVac vaccine received approval from Chinese drug regulator to begin clinical trials.
- April 2020：
- Sinovac initiated Phase I/II clinical trials for adults (18–59), enrolling 743 healthy volunteers.
- May 2020：
- Sinovac Biotech announced Shancheng and Weiwu Capital investments in Sinovac Life Sciences.
- June 2020：
- Sinovac started Phase III trials in Brazil; Sinovac Life Sciences' registered capital increased to $24 million; Phase I/II trial results published, emergency use authorization granted in China.
- August 2020：
- Sinovac’s first COVID-19 vaccine production line (300 million doses/year) completed in 109 days in Beijing.
- November 2020：
- Keding Investments (Hong Kong) Limited joined Sinovac Life Sciences as a shareholder.
- December 4, 2020：
- Weiwu and Shangcheng Capital converted convertible bonds to equity in Sinovac Life Sciences; China Biopharmaceutical and Xie Qirun made capital commitments.
- December 21, 2020：
- The Wall Street Journal reported Sinovac’s vaccine completed Phase III trials in Brazil.
- January 12, 2021：
- São Paulo State, Brazil, publicized clinical results of Sinovac’s vaccine efficacy.
- February 2021：
- CoronaVac received conditional market approval from China’s National Medical Products Administration.
- February 2021：
- Sinovac’s second production line (600 million doses/year) launched.
- March 2021：
- Sinovac’s third production line (1 billion doses/year) completed; annual production capacity reached 2 billion doses.
- First half of 2021：
- Sinovac Life Sciences entered cooperation agreements for nearly 900 million vaccine doses with 20+ countries; supplied over 2.7 billion doses globally.
- 2021：
- Sinovac Life Sciences reported annual profit of 92.1 billion yuan.
- 2021：
- China Biopharmaceutical reported revenue of 26.861 billion yuan and annual profit of 16.615 billion yuan.
- 2021：
- Sinovac Biotech: $11.61 billion cash/equivalents, $19.37 billion revenue, $14.46 billion net profit.
- 2021–2023：
- Sinovac Biotech saw declining sales year by year; incurred loss of $258 million by 2023.
- 2021–2024：
- Sinovac Life Sciences distributed approx. 48 billion yuan in dividends over 4 consecutive years.
- 2022：
- Sinovac Life Sciences posted a profit of RMB 337 million.
- 2023：
- Sinovac Life Sciences reported a loss of RMB 3.365 billion; Sinovac Biotech reported a net loss.
- 2024：
- China Biopharmaceutical ceased reporting Sinovac Life Sciences' annual profits/losses; declared it would withdraw resources and board role.
- 2024：
- Pan Aihua sentenced on charges of embezzlement and misappropriation of funds.
- Three times in 2024 and 2025：
- Beijing Sinovac distributed dividends totaling approx. 1.5 billion yuan.
- January 2025：
- UK Privy Council reversed earlier Antigua and Barbuda court decisions, recognizing board elected in February 2018 as legitimate.
- February 2025：
- Sinovac Biotech announced a new board dominated by Li Jiaqiang and OrbiMed Advisors, with only Lu Yulin recognized by UK Privy Council.
- February 28, 2025：
- Sinovac Biotech announced formation of a new five-member board, chaired by Li Jiaqiang.
- March 2025：
- SAIF Partners, allied with Yin Weidong, requested a special shareholders' meeting to remove the board.
- March 20, 2025：
- Hengrun Investment publicly demanded $8.9 billion in dividends be distributed and called for resumption of NASDAQ trading.
- April 1, 2025：
- Sinovac Biotech announced a special cash dividend of $55 per share but would withhold dividends relating to PIPE shares issued July 2018.
- April 2025：
- Li Jiaqiang’s board announced a dividend distribution; questioned the validity of the PIPE transaction and proposed withholding that portion.
- July 7, 2025：
- Court in Antigua and Barbuda ruled to prohibit Weiwu Capital and Shangcheng Capital from voting at special shareholders' meeting.
- July 7, 2025：
- Record date for Sinovac Biotech special dividend payout.
- July 9, 2025, 8:00 a.m. Beijing time：
- Special Sinovac Biotech shareholders’ meeting held in Antigua and online; immediately adjourned by chairman Li Jiaqiang. Afterwards, alternative meeting reconvened by Lu Yulin; ten-member board elected.
- July 9, 2025：
- 1 Globe faction announced postponement of special shareholders' meeting pending court ruling on validity of PIPE shares.
- Evening of July 10, 2025：
- Ten-member board announced it had received over 33.24 million votes (54.71%), held its first board meeting in Beijing. Yan Yan elected chairman.
- July 10, 2025：
- 1 Globe's board distributed special dividend of $55 per share to shareholders of record as of July 7, 2025.
- By July 2025：
- First dividend payout by Sinovac Biotech since 2018.
AI generated, for reference only
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