In the news release, "Sinovac Reports Unaudited Full Year 2008 and
Fourth Quarter Financial Results with Financial Tables," issued
earlier today by Sinovac Biotech Ltd. over PR Newswire Asia, we are
advised by the company that the last sentence of the second
paragraph from the section titled "Three Months Ended December 31,
2008" should read, "For the fourth quarter of 2008, Healive, Bilive
and Anflu as a percentage of sales represented 78.8%, 1.5% and
19.7%, respectively," rather than, "For the fourth quarter of 2008,
Healive, Anflu and Bilive as a percentage of sales represented
78.8%, 1.5% and 19.7%, respectively," as originally issued
inadvertently. Full, corrected version follows: BEIJING, April 9
/PRNewswire-Asia/ -- Sinovac Biotech Ltd. (NYSE Amex: SVA), a
leading developer and provider of vaccines in China, today
announced the Company's unaudited financial results for the three
and twelve month periods ended December 31, 2008. Full Year 2008
Financial Highlights -- Record full year 2008 sales increasing 39%
year-over-year to $46.5 million -- Sold 6.93 million doses of
Healive(R) in 2008, up from 5.12 million in 2007 -- Record full
year net income growing of 5% to $8.01 million -- Full year EPS is
$0.19 -- Cash and cash equivalents increased 93% to $32.9 million,
compared to the beginning of 2008, due to an increase in operation
profits, improved accounts receivable collection and raising
capital. Business Highlights -- In 2008, Sinovac initiated the
development program of a vaccine against enterovirus 71 (EV 71),
which causes hand, foot and mouth disease. Development is
progressing on schedule and good achievements have been made to
date. Sinovac expects to file clinical trial application with China
SFDA in 2009. -- Recognizing the sizeable market opportunity for
animal vaccines, Tangshan Yian, Sinovac's wholly owned subsidiary,
is focusing on the animal vaccine business to help drive growth. In
January 2009, the Company obtained approval from China's Ministry
of Agriculture to conduct field trials of internally developed
inactivated animal rabies vaccine. Sinovac expects the field trials
to take approximately nine months to complete and to launch the
vaccine in China's veterinary market in 2010. -- Sinovac completed
the pre-clinical trial for the Japanese encephalitis vaccine in
2008 and filed the clinical trial application with SFDA in January
of 2009. -- In an effort to enhance the competitiveness and improve
efficiency of the sales force, Sinovac increased headcount and
modified the marketing and sales organizational structure. --
Sinovac continues to focus on expanding its product export
opportunities by moving forward on product registration outside of
China. In late 2008, Sinovac entered into exclusive distribution
agreements for Healive in Nepal and India, and for Anflu in the
Philippines. The local distribution partners in Nepal and
Philippines filed applications with local authorities in 2008. The
registration process for Anflu in Mexico and Healive in Ukraine are
progressing on schedule. Sinovac sold 11,000 doses of Healive to
the Mongolian market in 2009 and is currently negotiating a
long-term distribution agreement. -- In March 2009, Sinovac
received GMP certification for its new filling and packaging
production facility, increasing the Company's annual production
capacity to 20 million doses, with the potential for 40 million
doses -- In October 2008, the Company established a wholly-owned
subsidiary, Sinovac Biotech (Hong Kong) Ltd, which is focused on
registering and distributing commercialized vaccines and those
under development in Hong Kong and then will be responsible for
product exports. The subsidiary will also help to facilitate
opportunities for R&D collaboration in Hong Kong. -- Sinovac
has made progress in completing the clinical application to import
and commercialize LG Life Sciences' hepatitis B vaccine,
Euvax-B(TM), pursuant to the previously disclosed exclusive
distribution agreement. Sinovac expects to obtain approval from the
SFDA to conduct clinical trials for Euvax-B in China in 2009. Mr.
Weidong Yin, Chairman, President and CEO, commented, "We are
pleased with our results for the quarter and the year, with full
year 2008 sales up 39%, in line with our expectations. The sales of
our vaccines continue to grow as awareness of the benefits of
inoculations for hepatitis A and seasonal influenza increases
across China. As reported in February 2009, the State Food and Drug
Administration (SFDA) completed a site inspection of Sinovac in
conjunction with the production capacity buildup program for
Panflu, with the intention to protect China's residents if an
outbreak of human bird flu should occur. In March, we received GMP
certification at our filling and packaging production facility,
which increased our annual production capacity to 20 million doses
and provided the potential to double capacity to 40 million doses.
This capacity expansion provides Sinovac with a solid foundation
for supporting the government stockpiling program for Panflu and
increasing the sales quantities for our commercialized vaccines, as
well as providing for the future launch of products in our vaccine
development pipeline. Although we are feeling the effect of the
financial crisis, the healthcare industry is not very sensitive to
the economic cycle. Sinovac has accumulated resources of
technological expertise, operation management experiences, and
investment capability, which positions the Company well to execute
our sales growth strategy in 2009 and achieve our full year sales
increase of 20% over 2008 levels. "EV 71 causing foot, hand, mouth
disease is a significant health concern among children across Asia,
as the viral illness has reportedly infected more than 500,000
children in China last year. Our research and development team has
made significant progress in advancing the pre-clinical studies. We
are aiming to develop the world's first EV 71 vaccine and have
recently presented its findings at the Chinese New Vaccines
Reporting Conference. We are on track to file the clinical trial
application with the SFDA in 2009 in order to commence human
dosing. The Company holds the development rights to this
first-of-its-kind vaccine and intends to submit the patent
application for this vaccine in China in 2009. We anticipate that
this vaccine should become a flagship product given the severity of
recent hand, foot and mouth disease outbreak in China and other
countries. As the developer of a vaccine against hand, foot and
mouth disease, Sinovac is well positioned to address this global
unmet medical need as cases continue to be reported in China and
neighboring countries. Sinovac is proud to take a leadership
position, as we did with Panflu, to benefit China and the world by
developing and manufacturing high quality, novel vaccines,"
concluded Mr. Yin. Twelve Months Ended December 31, 2008 For the
twelve months ended December 31, 2008, sales reached $46.5 million,
compared to $33.5 million for the full year 2007, representing 39%
growth. During the twelve months ended December 31, 2008, Sinovac
sold 6.93 million doses of Healive, compared to 5.12 million doses
for the same period in 2007. Sinovac sold 1.56 million doses of
Anflu during the full year 2008, compared to 1.59 million doses for
the same period of the prior year. The Company sold 255,000 doses
of Bilive during the 2008 period, compared to 15,684 doses in the
prior year period. For the first twelve months of 2008, Healive,
Anflu, and Bilive as a percentage of sales represented 88%, 9% and
3%, respectively. Gross profit for twelve months ended December 31,
2008 was $36.6 million, with a gross margin of 79%, compared to
$27.0 million, or 81%, for the same period of 2007. Total operating
expenses for the twelve months ended December 31, 2008 were $21
million, compared to $13.6 million for the same period 2007.
Selling, general and administrative expenses for the twelve months
ended December 31, 2008 were $17.5 million, compared to $12.0
million in the same period of 2007. SG&A expenses as a
percentage of sales represented 37.6% in the 2008 period, compared
to 35.7% in the same period of last year. Net expenditures on
research and development expenses for the twelve months ended
December 31, 2008 were $2.8 million, compared to $965,000 in the
same period of 2007. The increase in R&D expense for 2008 was
partly attributable to the expenses for the development of its
vaccines against avian flu, EV 71 and animal rabies. Operating
income was $15.6 million for the twelve months ended December 31,
2008, compared to $13.5 million in the same period of 2007. The
year-over-year increase in operating income reflected increased
sales of hepatitis A and hepatitis A&B vaccine in 2008. Net
income for the twelve months ended December 31, 2008 included
$702,000 of interest and financing expenses, $3.0 million of income
taxes expense, $291,000 of interest and other income and $4.2
million of minority interest. Net income for the same period of
2007 included $478,000 of interest and financing expenses, $2.0
million of income taxes, $191,000 of interest and other income and
$3.6 million of minority interest. Net income for the twelve months
ended December 31, 2008 was $8.0 million, or $0.19 per diluted
share, compared to $7.7 million, or $0.19 per diluted share, in the
same period of 2007. In March 2009, Sinovac Beijing was granted
High and New Technology Enterprises (HNTE) status by the Chinese
government. HNTEs are entitled to the preferential income tax rate
of 15%, compared to the unified income tax rate of 25%,
retroactively to January 1, 2008. Sinovac Beijing will benefit from
the lower tax rate for a three-year period, covering 2008, 2009 and
2010. Retroactively applying the HNTE tax rate of 15% for the full
year ended December 31, 2008 resulted in a $2.1 million decrease in
the provision of the current income tax with a corresponding
reduction in the income tax liability and a $1.1 million increase
in deferred income tax expense with an offset to deferred income
tax assets. The rate change was recorded in the period that changes
occurred. Three Months Ended December 31, 2008 For the fourth
quarter 2008, sales were $12.4 million, compared to $9.2 million in
the fourth quarter 2007. The year-over-year increase in sales
reflected Sinovac's strategy to continue to devote significant
resources to marketing Healive to the private pay market in China,
as compared to the market created by government purchasing
initiatives under the Expanded Immunization Program that may
include the lower priced, live hepatitis A vaccine produced by
state owned entities. During the fourth quarter of 2008, Sinovac
sold 1.62 million doses of Healive, compared to 1.14 million doses
for the same period of 2007. Sinovac sold 1.05 million doses of
Anflu during the fourth quarter of 2008, compared to 0.52 million
doses for the same period of the prior year. During the fourth
quarter of 2008, Sinovac sold 21,000 doses of Bilive, compared to
nil doses in the prior year period. For the fourth quarter of 2008,
Healive, Bilive and Anflu as a percentage of sales represented
78.8%, 1.5% and 19.7%, respectively. Gross profit for fourth
quarter 2008 was $7.7 million, with a gross margin of 63%, compared
to $6.3 million, and a gross margin of 68%, for the same period of
2007. Total operating expenses for the fourth quarter of 2008 were
$4.6 million, compared to $3.0 million in the same period 2007.
Selling, general and administrative expenses for the fourth quarter
of 2008 were $4.1 million, compared to $2.5 million in the same
period of 2007. SG&A expenses as a percentage of sales
represented 33% in the fourth quarter of 2008, compared to 27% in
the same period in the prior year. The increase in SG&A in the
fourth quarter of 2008 was in line with the increased business
activity in 2008. In particular, payroll and bonus, higher
consulting fees, travel and other expenses drove the year-over-year
increase. Net expenditures on research and development expenses for
the fourth quarter of 2008 were $359,000, compared to $354,000 in
the same period of 2007. The R&D expenses in the quarter are
mainly incurred for the advancement of its vaccine candidates in
the pre-clinical development pipeline, including Sinovac's vaccine
against EV 71 and its human rabies candidate. Operating income was
$3.1 million for the fourth quarter of 2008, compared to $3.3
million in the same period of 2007. The year-over-year variance in
operating income reflected relatively moderate higher expense in
the fourth quarter. Net income for the fourth quarter of 2008
included $284,000 in income tax recovery, $327,000 interest and
other income and $1.4 million of minority interest. Net income for
the same period of 2007 included $184,000 of interest and financing
expenses, $42,000 of income taxes expense, $111,000 other expenses
and $965,000 of minority interest. Net income for the fourth
quarter of 2008 was $2.4 million, or $0.06 per diluted share,
compared to $2.0 million, or $0.05 per diluted share, in the same
period of 2007. As of December 31, 2008, Sinovac's cash and cash
equivalents totaled $32.9 million, compared to $20.5 million as of
September 30, 2008. The 60.4% increase in cash and cash equivalents
compared to the third quarter of 2008 was primarily attributable to
improved accounts receivables collection. Recent Developments
Following the completion of a large scale, post-approval marketing
study, the safety and immunogenicity of Sinovac's seasonal
influenza vaccine, Anflu, was analyzed and reviewed by 18
provincial and municipal CDC entities at the Summary Conference of
Phase IV Clinical Research held in October 2008. The experts from
the China CDC and provincial CDCs presented findings that confirm
that Anflu has a good safety and immunogenicity profile. CDC
experts also stated that the safety and immunogenicity profile of
Anflu are equivalent to the imported flu vaccines used as control
vaccines in the trial Sinovac continues to focus on expanding its
product export opportunities by moving forward on product
registration outside of China. Sinovac has entered into exclusive
distribution agreements for Healive in Nepal and India, and for
Anflu in the Philippines. Distribution partners in Nepal and
Philippines filed applications with local authorities in 2008. The
registrations for Anflu in Mexico and Healive in Ukraine are
progressing on schedule. These local distribution partners are well
positioned to help expand the global reach of Sinovac's vaccines by
commercializing Sinovac's products outside of China. In January
2009, Sinovac responded to the emerging hepatitis A epidemic
situation in Mongolia by selling 11,000 doses of Healive to the
Mongolian market through the Company's agent in China. Sinovac has
received positive market feedback in the region and is evaluating
opportunities to enter a long-term distribution agreement for the
Mongolian market. Related to the Phase II clinical trial for the
pandemic split influenza vaccine, the on-site activities, including
inoculation, blood collection and safety inspection, were completed
in October 2008. The testing of HI (hemagglutination inhibition)
antibody in subjects' serum has also been completed. Sinovac has
received the serum antibody testing report from NICPBP (National
Institute for the Control of Pharmaceutical and Biological
Products). The unblended result shows the vaccine has good safety
and immunogenicity profile. Sinovac is currently conducting the
detailed analysis and preparing the summary report. In January
2009, the Company's wholly owned subsidiary, Tangshan Yian
Biological Engineering Co., Ltd, obtained approval from China's
Ministry of Agriculture to conduct field trials of its internally
developed inactivated animal rabies vaccine, enabling the Company
to enter the veterinary vaccine market in China with a high quality
domestically-produced vaccine. Sinovac anticipates that the field
trials will take approximately nine months to complete and that the
vaccine will be launched in China's veterinary market in 2010. As
reported by media sources in February 2009, the State Food and Drug
Administration (SFDA) completed a site inspection of Sinovac in
conjunction of the government stockpiling program for Panflu, the
pandemic influenza vaccine for which Sinovac holds manufacturing
rights, to protect China's residents if an outbreak of human bird
flu should occur. The production of the H5N1 vaccine for
stockpiling is progressing on schedule. In March 2009, Sinovac
received GMP certification from the SFDA for its new filling and
packaging production facility. With the receipt of the GMP
certification, Sinovac's annual production capacity increased to 20
million doses, and has the potential to double to 40 million doses.
This production milestone ensures that Sinovac can fully meet
increasing market demand and potential production increases for
currently commercialized products, such as Healive, Bilive and
Anflu. The filling and packaging production plant also has the
capabilities to fill and package Panflu, in support of the
government stockpiling program, as well as products currently in
Sinovac's development pipeline upon future launch following
regulatory approval. In 2008, Sinovac initiated the development
program of a vaccine against EV 71. Development is progressing on
schedule and good achievements have been made to date. The findings
from the pre-clinical studies for the EV 71 vaccine were recently
presented at the Chinese New Vaccines Reporting Conference. Sinovac
is on track to file a clinical trial application with China SFDA in
the third quarter of 2009. The Company holds the development rights
to this first-of-its-kind vaccine and intends to submit the patent
application for this vaccine in China in 2009. According to the
March 27, 2009 report issued by China's Ministry of Public Health,
there were 41846 cases of hand, foot, and mouth disease were
reported in China from January 1, 2009 through mid-day on March 26,
2009, among which 94 of which were severe cases. The reported cases
are mainly from young children under 5 years old (93.96% of total
reported cases). Among the confirmed cased after testing in
laboratory, 75% of the cases are caused by EV71. Additionally,
hand, food and mouth disease incidence has been reported in both
developed countries and developing countries in the past,
indicating that it is a worldwide disease. Given the current
severity of the hand, foot and mouth disease outbreak in China and
other countries, Sinovac expects this new vaccine to become another
flagship product in the future. Sinovac is processing the clinical
application to import and commercialize LG Life Sciences' hepatitis
B vaccine, Euvax-B(TM), pursuant to the previously disclosed
exclusive distribution agreement. Sinovac expects to obtain
approval from the SFDA to conduct clinical trials in China in 2009
and intends leverage its established sales and marketing
organization to distribute Euvax- B in China. 2009 Guidance For the
full year 2009, the Company expects sales of $55 million to $60
million, an increase of about 20% over 2008 sales. The 2009 sales
growth rate assumes that (1) Healive will continue to generate a
significant portion of Sinovac's sales revenue. Sinovac expects to
maintain its leading position in the private market, while also
actively exploring the opportunity to penetrate the public market
without adjusting the selling price; (2) Sinovac will focus on
driving growth of Bilive in the private market; and (3) Sinovac
will increase sales of Anflu as the Company continues to raise
awareness of the benefits of receiving the flu vaccination.
Conference Call Details The Company will host a conference call on
Thursday, April 9, 2009 at 9:00 a.m. ET (9 p.m. China Standard
Time) to review the Company's fourth quarter financial results for
the period ended December 31, 2008 and provide an update on recent
corporate developments. To access the conference call, please dial
1-877-407-4018 (USA) or 1-201-689-8471 (international). A replay of
the call will be available from 12:00 p.m. ET on April 9, 2009
until April 23, 2009. To access the replay, please dial
1-877-660-6853 (USA) or 1-201-612-7415 (international) and
reference the account number 3055 and the access code 319008. A
live audio webcast of the call will also be available from the
Investors section on the corporate web site at
http://www.sinovac.com/ . A webcast replay can be accessed on the
corporate website beginning April 9, 2009 and the replay will
remain available for 30 days. About Sinovac Sinovac Biotech Ltd. is
a China-based biopharmaceutical company that focuses on the
research, development, manufacture and commercialization of
vaccines that protect against human infectious diseases. Sinovac's
commercialized vaccines include Healive(R) (hepatitis A), Bilive(R)
(combined hepatitis A and B), Anflu(R) (influenza) and Panflu(TM)
(H5N1). Sinovac is currently developing a universal pandemic
influenza vaccine and Japanese encephalitis vaccine. Its
wholly-owned subsidiary, Tangshan Yian is currently conducting
field trials for the first domestically-developed inactivated
animal rabies vaccines. Additional information about Sinovac is
available on its website, http://www.sinovac.com/ . To be added to
our distribution list, please email: . Safe Harbor Statement This
announcement contains forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by words or phrases such as "will,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. Among other things, the
business outlook and quotations from management in this press
release contain forward-looking statements. Statements that are not
historical facts, including statements about Sinovac's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Sinovac does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law. SINOVAC BIOTECH
LTD. Consolidated Balance Sheets (Unaudited) (Expressed in U.S.
Dollars) December 31, December 31, 2008 2007 ASSETS Current assets
Cash and cash equivalents $ 32,894,102 $ 17,071,497 Accounts
receivable 19,486,596 16,983,892 Inventories 7,428,865 3,745,957
Income tax refundable 348,018 -- Prepaid expenses and deposits
933,297 800,840 Deferred tax assets 1,189,831 579,703 Total current
assets 62,280,709 39,181,889 Property, plant and equipment
19,262,099 15,879,391 Long-term prepaid expenses and deposits --
299,577 Deferred tax asset 569,937 693,053 Licenses and permits
1,090,477 1,394,052 Total assets $ 83,203,222 $ 57,447,962
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Loans
payable $ 8,024,277 $ 6,836,110 Accounts payable and accrued
liabilities 11,909,038 9,522,818 Due to related parties 46,971
46,971 Dividends payable to minority interest shareholder of
Sinovac Beijing 115,677 3,000,458 Deferred research grants
1,182,703 1,038,396 Total current liabilities 21,278,666 20,447,754
Deferred government grants 2,836,994 2,734,444 Loan payable
2,188,439 1,367,222 Long-term debt 5,025,433 4,101,666 Total
liabilities 26,304,099 24,546,420 Minority interest 7,185,349
2,897,687 Commitments and contingencies STOCKHOLDERS' EQUITY
Preferred stock -- -- Authorized 50,000,000 shares at par value of
$0.001 each Issued and outstanding: nil Common stock 42,894 40,305
Authorized: 100,000,000 shares at par value of $0.001 each Issued
and outstanding: 42,893,928 (2007 - 40,305,028) Subscriptions
received -- 9,170 Additional paid in capital 41,629,506 32,109,997
Accumulated other comprehensive income 3,773,224 1,956,456
Dedicated reserves 5,549,684 2,999,396 Accumulated deficit
(1,281,534) (7,111,469) Total stockholders' equity 49,713,775
30,003,855 Total liabilities and stockholders' Equity $ 83,203,222
$ 57,447,962 The accompanying notes are an integral part of these
consolidated financial statements. SINOVAC BIOTECH LTD.
Consolidated Statements of Income and Comprehensive Income Three
Months and Twelve months Ended December 31, 2008 and 2007
(Unaudited) (Expressed in U.S. Dollars) Three months ended Twelve
months ended December 31, December 31, 2008 2007 2008 2007 Sales
$12,359,803 $9,201,946 $46,496,904 $33,541,187 Cost of sales -
(exclusive of depreciation of land-use rights and amortization of
licenses and permits of $104,000 [2007 - $96,296] for three months
and $411,065 [2007- 376,184] for twelve months) 4,615,674 2,915,135
9,936,341 6,502,328 Gross profit 7,744,129 6,286,811 36,560,563
27,038,859 Selling, general and administrative expenses 4,054,222
2,472,518 17,462,674 11,958,498 Research and development expenses -
net of $162,064(2007- $401,935) for three months and $310,222
(2007- $843,910) for twelve months in government research grants
358,664 353,790 2,767,409 965,000 Depreciation of property, plant
and equipment and amortization of licenses and permits 233,502
165,750 749,619 640,568 Total operating expense 4,636,388 2,992,058
20,979,702 13,564,066 Operating income 3,107,741 3,294,753
15,580,861 13,474,793 Interest and financing expenses (45,859)
(183,779) (701,637) (478,436) Interest income and other income
(expenses) 327,248 (110,633) 290,563 190,668 Income before income
taxes and minority interest 3,480,848 3,000,341 15,169,787
13,187,025 Income taxes recovery (expense) - Current 788,445
(330,229) (3,441,168) (2,203,173) - Deferred (504,450) 287,751
487,011 229,055 Income before minority interest 3,764,843 2,957,863
12,215,630 11,212,907 Minority interest share of earnings 1,390,704
964,588 4,205,407 3,562,501 Net income 2,374,139 1,993,275
8,010,223 7,650,406 Other comprehensive income Foreign currency
translation adjustment (467,232) 513,502 1,816,769 1,310,985
Comprehensive income $2,276,907 $2,506,777 $10,196,992 $8,961,391
Earnings per share - Basic $0.06 $0.05 $0.19 $0.19 - Diluted $0.06
$0.05 $0.19 $0.19 Weighted average number of shares of common stock
outstanding - Basic 42,892,954 40,268,030 42,426,703 40,243,657 -
Diluted 42,892,954 40,624,439 42,450,606 40,523,937 SINOVAC BIOTECH
LTD. Consolidated Statements of Cash Flows Three Months and Twelve
Months Ended December 31, 2008 and 2007 (Unaudited) (Expressed in
U.S. Dollars) Three Months ended Twelve months ended December 31,
December 31, 2008 2007 2008 2007 Cash flows from (used in)
operating activities Net income (loss) $2,374,140 $1,993,275
$8,010,224 $7,650,406 Adjustments to reconcile net loss to net cash
provided (used) by operating activities: - deferred income taxes
504,450 (287,751) (487,011) (229,055) - stock-based compensation
16,635 20,595 66,542 179,742 - inventory provision 1,027,675
373,473 1,027,675 373,473 - provision for doubtful accounts
(1,944,595) (1,326,175) 23,612 455,674 - written-off equipment and
loss on disposal 123,987 (938) 126,236 4,016 - amortization of
government grants (162,345) (478,164) (310,022) (843,910) -
depreciation of property, plant and equipment and amortization of
licenses and permits 390,704 352,617 1,689,018 1,401,892 - minority
interest 1,390,704 964,588 4,205,407 3,562,501 Change in other
assets and liabilities - accounts receivable 7,284,649 4,370,035
(1,366,183) (6,774,082) - inventories (471,226) 855,096 (4,405,982)
(1,832,193) - income tax refundable (342,617) -- (342,617) -- -
prepaid expenses and deposits 40,618 (184,588) 229,407 (859,411) -
accounts payable and accrued liabilities 64,968 (17,212) 2,038,530
1,227,128 Net cash provided (used) in operating activities
10,297,747 6,634,851 10,504,836 4,316,181 Cash flows from (used in)
financing activities - Loans proceeds 6,474,698 2,635,641 8,617,904
3,938,455 - Loans repayment (3,609,576) (1,558,131) (7,181,586)
(2,730,662) - Proceeds from issuance of common stock net of share
issue costs (428,234) 30,471 9,814,709 214,442 - Repurchase of
common shares -- -- (368,323) -- - Proceeds from shares subscribed
-- 9,170 -- 9,170 - Payment to release shares in escrow -- -- --
1,394,333 - Dividends paid to minority shareholders of Sinovac
Beijing -- -- (2,947,877) (839,469) - Government grant received
169,176 430,591 383,497 3,531,285 - Due to related parties --
46,971 -- 46,971 Net cash provided by financing activities
2,606,064 1,594,713 8,318,324 5,564,525 Cash flows from (used in)
investing activities - Restricted cash 725 186 -- 24,215 - Proceeds
from disposal of equipment 16,848 -- 16,848 -- - Acquisition of
property, plant and equipment (693,034) (1,049,435) (3,976,458)
(2,466,469) Net cash used in investing activities (675,461)
(1,049,249) (3,959,610) (2,442,254) Exchange gain on cash and
equivalents 113,252 215,446 959,055 384,213 Increase in cash and
cash equivalents 12,341,602 7,395,761 15,822,605 7,822,665 Cash and
cash equivalents, beginning of year 20,552,500 9,675,736 17,071,497
9,248,832 Cash and cash equivalents, end of period $32,894,102
$17,071,497 $32,894,102 $17,071,497 Supplemental disclosure of cash
flow information: Cash paid for interest $147,411 $227,203 $604,076
$453,174 Cash paid for income taxes $1,469,261 $676,781 4,281,391
$1,968,393 For more information, please contact: Helen G. Yang
Sinovac Biotech Ltd. Tel: +86-10-8289-0088 x9871 Fax:
+86-10-6296-6910 Email: Investors: Stephanie Carrington/Amy Glynn
The Ruth Group Tel: +1-646-536-7017/7023 Email: Media Janine
McCargo The Ruth Group Tel: +1-656-536-7033 Email: DATASOURCE:
Sinovac Biotech Ltd. Web site: http://www.sinovac.com/
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