In Depth: Disputed Sinovac Chairman Struggles to Retain Control Amid Multibillion-Dollar Dividend Payouts

Sinovac Biotech Ltd., a Chinese vaccine-maker, has been embroiled in a protracted power struggle spanning nearly a decade. Chiang Li, the company’s largest shareholder, positions himself as a patriotic scientist devoted to innovation, contrasting with his public image as a key figure in a fierce battle for control and profits. This conflict culminated in 2024, as shareholders finally began to reap the benefits of Sinovac’s massive Covid-19-driven profits, with billions of dollars in dividends at stake. Two rival factions—one led by Li, the other backed by private equity firm SAIF Partners—are vying for boardroom control, with the company’s future dividend policy hanging in the balance. While Li’s group promises further payouts, the opposition only commits to considering future plans. The legitimacy of recent board changes remains disputed, and the two groups are engaged in ongoing negotiations and litigation. [para. 1][para. 2][para. 3][para. 4][para. 5][para. 6][para. 7]

Sinovac’s extraordinary financial success during the pandemic—with its CoronaVac vaccine becoming globally recognized and one of the world’s most-administered shots—has become a double-edged sword. While the company generated billions, amassing more than $10 billion in cash and short-term investments, its handling of these profits has drawn ire from investors such as Heng Ren Partners, who criticized the firm for insufficient distributions and called for an $8.9 billion payout. In July 2024, Sinovac issued a $55 per share special cash dividend totaling nearly $4 billion, and subsequent announcements suggested total payouts could reach $138.73 per share, or up to $10 billion in total. Still, future payouts remain uncertain due to the ongoing power struggle. Share trading has also been suspended since February 2019, adding to shareholders’ frustrations. [para. 3][para. 4][para. 5][para. 6][para. 16][para. 17][para. 18]

Li’s involvement with Sinovac began over a decade ago when he sought to invest in undervalued firms embracing risk and innovation. Between 2013 and 2017, his stake in Sinovac grew from 6.19% to more than 30%, making him the firm’s largest shareholder, though some acquisitions led to U.S. SEC fines for inadequate disclosure. His strategic push for original innovation is evidenced by investments in both high-risk, high-reward biotech fields and less profitable but essential public health goods. Separately, Li established multiple life sciences ventures in China, often in partnership with local governments. [para. 9][para. 10][para. 11][para. 12][para. 13]

The internal discord at Sinovac intensified in 2016 over a proposed privatization plan, pitting co-founder Yin Weidong against major investor Pan Aihua, each leading rival buyout factions. Li’s controlling stake ultimately proved decisive, and he sided with Pan, ousting the incumbent board in 2018—a move later challenged in court. The legal battle dragged on for seven years, spanning the U.S., U.K., and the Caribbean. In January 2025, the U.K. Privy Council recognized Li’s faction’s board as legitimate, allowing him to become chairman the following month. [para. 14][para. 15][para. 16][para. 17][para. 18][para. 19][para. 20][para. 21]

Li asserts he works on behalf of small shareholders and emphasizes his identity as a scientist. He holds a medical degree from Harvard and is invested in cutting-edge fields like mRNA vaccines, including a next-generation Covid-19 vaccine whose production was halted as the pandemic waned. Despite this, he sees mRNA technology as a future focus. However, the ongoing governance strife, technological divides, and legal entanglements continue to impede Sinovac’s development, with potential for collaboration and greater innovation hampered by boardroom conflicts. [para. 22][para. 23][para. 24][para. 25][para. 26][para. 27][para. 28][para. 29][para. 30][para. 31]