In Depth: Sinovac’s Covid Fortune Fuels Bitter Boardroom Battle
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The Covid-19 pandemic turned Chinese vaccine-maker Sinovac Biotech Ltd. into a global household name after its CoronaVac jab became a billion-dollar money-spinner and one of the world’s most-administered inoculations against the virus. But hidden away behind its success lies a bitter, decade-long power struggle for control of the company.
The founders of the Nasdaq-listed company and their institutional backers have been at war since a failed attempt to take the company private in 2016. The latest twist in the long-running drama came on July 8, when a special shareholder meeting (SM) requisitioned by a group of dissident shareholders to install a new board descended into chaos.
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- Sinovac, a major Covid-19 vaccine producer, has faced a decade-long battle for control between founders, investors, and board factions, resulting in extensive international litigation and a trading suspension since 2019.
- Legal disputes center on board legitimacy, PIPE share validity, and control of over $10 billion in cash and short-term investments accumulated during the pandemic.
- Ongoing shareholder meetings and court rulings have not resolved leadership, dividend payouts, or the resumption of share trading.
Sinovac Biotech Ltd., a major Chinese vaccine manufacturer, gained worldwide recognition during the Covid-19 pandemic for its CoronaVac vaccine, which generated billions in revenue and became one of the most widely administered vaccines globally. However, beneath its financial success lies a protracted and bitter internal struggle for control, rooted in disputes among its founders and major stakeholders. This conflict has spanned nearly a decade and continues to impact the company's governance, shareholder rewards, and stock trading status [para. 1].
The ongoing battle stems from a failed attempt in 2016 to take the company private, which divided the original founders and their institutional supporters into hostile camps. The situation escalated during a special shareholder meeting (SM) on July 8, 2025, called by dissident shareholders led by SAIF Partners, Sinovac’s largest single shareholder with a 15% stake. SAIF Partners, backed by Vivo Capital and Prime Success (each holding about an 8% stake), sought to replace the board, alleging poor corporate governance, the board’s reluctance to resume dividend payments, and its failure to relist Sinovac shares, which have been suspended since February 2019 [para. 2][para. 3][para. 4][para. 5][para. 6].
The SM quickly dissolved into chaos and was adjourned by Chairman Chiang Li, citing unresolved litigation about the legitimacy of certain shareholdings, specifically those issued to Vivo Capital and Prime Success through a 2018 PIPE (private investment in public equity) transaction. This contested share issuance is crucial as it could affect voting rights and control of the company [para. 7][para. 8]. After the adjournment, dissident shareholders resumed the meeting and declared a vote to remove the incumbent board and appoint a new one, though the existing board immediately challenged the vote’s legitimacy, perpetuating the deadlock. The resolution likely hinges on future court decisions [para. 9][para. 10][para. 11][para. 12].
The roots of the feud go back to 2016, when Sinovac’s attempt to delist from Nasdaq led Yin Weidong (then chairman and CEO) and Pan Aihua (chairman of the main subsidiary, Sinovac Beijing) to form rival buyout groups. Yin was supported by SAIF Partners, while Pan gained Chiang Li’s backing. The conflict involved multiple lawsuits and even physical confrontations at Sinovac’s Beijing factories in 2018. Legal disputes have traversed courts in the U.S., U.K., and Antigua and Barbuda and included the activation of a “poison pill” defense mechanism that ultimately failed after being struck down by a Delaware court [para. 13][para. 14][para. 15][para. 16][para. 17][para. 18][para. 19][para. 20][para. 21][para. 22][para. 23][para. 24].
Legal dynamics shifted again in early 2024 when Pan was jailed for embezzlement. In January 2025, the U.K. Privy Council ruled that Pan's group had lawfully gained control in the 2018 board election, declaring the previous board and the poison pill invalid. A new board led by Chiang Li was installed, yet SAIF Partners soon called for another shareholder vote to oust Li’s board, leading to the current impasse [para. 25][para. 26][para. 27][para. 28][para. 29][para. 30][para. 31][para. 32].
At the heart of the dispute is Sinovac’s pandemic windfall. By January 2022, the company had distributed over 2.7 billion CoronaVac doses worldwide, with 2021 net income reaching nearly $14.5 billion—78 times that of the previous year. Its available cash soared from $1.1 billion in 2020 to $11.6 billion in 2021. Despite these profits, shareholders have yet to see substantial dividends due to the ongoing legal uncertainty. Recently, the new board announced a series of special dividends totaling up to $138.73 per share (potentially $10 billion overall), but payouts to some disputed shares would be withheld until the court resolves their status [para. 33][para. 34][para. 35][para. 36][para. 37][para. 38][para. 39][para. 40].
In summary, Sinovac’s boardroom battle, fueled by unresolved legal and ownership questions, continues to overshadow one of the pandemic’s biggest commercial success stories, leaving its massive cash reserves in limbo and its investors awaiting resolution [para. 41].
- Sinovac Biotech Ltd.
- Sinovac Biotech Ltd. is a Chinese vaccine-maker that became globally recognized for its CoronaVac COVID-19 vaccine. Despite its success, the Nasdaq-listed company has been embroiled in a decade-long power struggle for control, leading to a recent shareholder showdown. This internal conflict has halted share trading since 2019, frustrating investors eager for dividends from its substantial cash reserves.
- SAIF Partners
- SAIF Partners is an Asian private equity firm and the largest single shareholder of Sinovac Biotech Ltd., holding a 15% stake. They initiated a special shareholder meeting to install a new board, citing concerns over corporate governance and the failure to resume dividend payments and share trading.
- Advantech Capital
- Advantech Capital is a private equity fund that established an investment vehicle called Prime Success. Prime Success was created specifically to invest in Sinovac Biotech Ltd., a Chinese vaccine-maker. Advantech Capital, through Prime Success, claims to hold an approximate 8% stake in Sinovac. This makes them a significant shareholder involved in the ongoing power struggle for control of Sinovac.
- Shandong Sinobioway Biomedicine Co. Ltd.
- Shandong Sinobioway Biomedicine Co. Ltd. (002581.SZ) is a Chinese company through which Pan Aihua, a founder of Sinovac Biotech Ltd., held a significant 26.91% stake in Sinovac Beijing, Sinovac's main operating subsidiary. In February 2024, Pan was sentenced to 13 years in prison for embezzlement and misappropriation of funds in a case involving Shandong Sinobioway Biomedicine.
- 2001：
- Yin Weidong and Pan Aihua co-found Sinovac Beijing.
- 2003：
- Sinovac Beijing acquires a shell company in Antigua and Barbuda, renaming it Sinovac Biotech. Yin becomes chairman and CEO.
- 2004：
- Sinovac Biotech originally lists on the NYSE Amex.
- 2009：
- Sinovac Biotech transfers/listed on Nasdaq.
- 2016：
- Sinovac Biotech initiates a privatization plan, with Yin and Pan forming rival buyout groups.
- February 2018：
- Pan, allied with Chiang Li and 1Globe Capital, ousts Yin’s board at Sinovac’s AGM but the two sides disagree on the voting results, leaving the incumbent board in charge.
- March 2018：
- Yin’s board files a lawsuit in the Delaware Court of Chancery to determine whether Pan’s actions trigger the poison pill rights plan. 1Globe petitions the High Court of Justice of Antigua and Barbuda seeking approval of the AGM election of its alternative board.
- April 2018：
- Brawls involving hundreds break out at Sinovac Beijing factory, halting production.
- May 2018：
- Additional brawls at Sinovac Beijing factory, halting production.
- July 2018：
- Sinovac’s plan to go private is officially scrapped after neither buyout group secures approval from two-thirds of shareholders. Yin’s board executes a PIPE deal, selling new shares to Vivo Capital and Prime Success.
- December 2018：
- High Court of Justice of Antigua and Barbuda rejects 1Globe’s petition, leaving the incumbent board in charge.
- February 22, 2019：
- Sinovac, still under Yin’s control, activates the poison pill against 1Globe Capital, Li, and others. On the same day, Nasdaq suspends trading in Sinovac’s shares.
- March 2019：
- Delaware Court of Chancery halts the poison pill plan after a challenge from 1Globe.
- February 2021：
- Sinovac’s inactivated vaccine, CoronaVac, receives conditional approval in China.
- June 2021：
- CoronaVac vaccine wins emergency approval from the World Health Organization.
- December 2021：
- Eastern Caribbean Supreme Court upholds the Antigua High Court’s December 2018 ruling.
- January 2022：
- By this point, Sinovac had delivered more than 2.7 billion CoronaVac doses worldwide.
- October 2022：
- A court ruling orders Pan and two companies he controlled to compensate Sinovac for losses totaling 15.4 million yuan.
- February 2024：
- Pan is sentenced to 13 years in prison for embezzlement and misappropriation of funds.
- January 16, 2025：
- UK Judicial Committee of the Privy Council (JCPC) hands down a definitive judgment declaring the board that approved the PIPE transaction was invalid, calling incumbent directors 'imposters', and confirming the 2018 shareholder vote was lawful.
- February 2025：
- Sinovac installs a new five-member board with Li as chairman, replacing Yin.
- March 2025：
- SAIF Partners requisitions a special shareholders’ meeting to vote on removing the new board and replacing it with directors aligned with Yin.
- April 1, 2025：
- New board, chaired by Li, declares a special dividend of $55 per share; dividends on PIPE shares withheld until the legal disputes are resolved.
- April 30, 2025：
- Sinovac announces a tentative dividend payment date of “on or about” July 9, 2025.
- June 17, 2025：
- Board pledges to move payment date to 'on or about July 7, 2025' and adds two more special cash dividends.
- July 8, 2025：
- Special shareholder meeting (SM) requisitioned by dissident shareholders descends into chaos and is adjourned by chairman Li due to ongoing litigation.
- July 8, 2025 (later the same evening)：
- Dissident shareholder group reconvenes the meeting, chaired by Yuk Lam Lo.
- July 9, 2025：
- SAIF Partners says shareholders who took part in the continued SM voted to remove the board and elect a new 10-member board. Sinovac’s board announces it has begun paying $55 per share special dividend to valid shareholders who owned shares as of July 7, 2025.
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