Sinovac Reports Unaudited First Quarter 2015 Financial Results

-- - Conference call scheduled for May 15, 2015 at 8:00 a.m. ET -

  • Date: 2015-05-15
  • Pageview: 15015

 

 

BEIJING, May 14, 2015 /PRNewswire/ -- Sinovac Biotech Ltd. (SVA), a leading provider of biopharmaceutical products in China, today announced its unaudited financial results for the first quarter ended March 31, 2015.

First Quarter 2015 Financial Highlights

(Compared to the first quarter 2014)

  • Quarterly sales were $9.3million, a decrease of 31.6% from $13.5 million in the prior year period.
  • Gross profit was $6.8million, a decrease of 33.4% from $10.3 million in the prior year period.

 

  • Net loss attributable to common shareholders was $2.3million or $0.04 per basic and diluted share for the first quarter of 2015, compared to net income of $4,000, or $0.00 per basic and diluted share, for the first quarter of 2014.

Mr. Weidong Yin, Chairman, President and CEO of Sinovac, commented, "Our first quarter results reflect changes in the China vaccine market environment, particularly between the public and private markets and the relative timing of purchases in these markets.  We do not believe that the decline in first quarter sales is indicative of overall demand for our products but rather reflects timing differences that will be resolved over the course of the year. We were very pleased to announce the site inspection notification for our EV71 vaccine this week. This marks a significant milestone in the approval process. As we continue to make progress on our vaccine pipeline, we are also focusing on international growth opportunities. During the first quarter, we received our GMP certificate from the Turkish government and GMP inspection from the Kazakhstan government. These two countries represent new market opportunities for Sinovac. We are focused on strategically entering into international markets that offer high sales potential for our current vaccine portfolio, as well as for our pipeline vaccines as they are commercialized."

EV 71 Vaccine Developments

 

As previously announced, the China Food and Drug Administration (CFDA) issued a site inspection notification for the commercial production facilities of the Company's EV71 vaccine candidate. This is a significant step forward for the Company in its efforts to bring its EV71 vaccine to market. Sinovac will submit its application to schedule the site inspection, which will include production of three trial batches of the vaccine, and GMP inspection. The Company expects this process to take four to six months.

After the trial batch testing is completed, the CFDA will consolidate the results of  the technical review, site inspection and trial batch testing and summarize its final opinion. The CFDA will then issue the new drug certificate, production license, and GMP license.

Unaudited Financial Results for First Quarter 2015

   

2015 Q1

% of Sales

2014 Q1

% of Sales

(In USD'000 except percentage
data)

Hepatitis A – Healive

 

2,922

31.5%

6,439

47.5%

Hepatitis A&B – Bilive

 

5,055

54.5%

5,999

44.3%

Influenza vaccine

 

586

6.3%

61

0.4%

Animal vaccine

 

62

0.7%

25

0.2%

Mumps vaccine

 

644

7.0%

920

6.8%

Regular sales

 

9,269

100.0%

13,444

99.2%

H5N1 vaccine

 

-

0.0%

102

0.8%

Total sales

 

9,269

100.0%

13,546

100.0%

Cost of goods sold

 

2,434

26.3%

3,278

24.2%

Gross profit

 

6,835

73.7%

10,268

75.8%

Quarterly sales were $9.3 million, a decrease of 31.6% from $13.5 million in the prior year period.

Gross profit was $6.8 million, a decrease of 33.4% from $10.3 million in the prior year period. Gross profit margin was 73.7% compared to75.8% in the prior year period. The decrease in gross profit margin was primarily driven by idle capacity charges recorded for the manufacturing facility. In the first quarter of 2014, the Company produced more vaccine due to different production scheduling and incurred no idle capacity charges as a result.

Selling, general and administrative expenses for the first quarter of 2015 were $6.9million, compared to $7.8 million in the same period of 2014. The reduction was primarily due to reduced selling expenses as a result of the decrease in sales, as well as lower foreign exchange loss as compared to the first quarter of 2014.

R&D expenses for the first quarter of 2015 were $2.2million, a $0.5 million increase over the same period in 2014. This increase was attributable to the continued advancement of Sinovac's pipeline products, including sIPV, PPV and varicella vaccine.

Net loss attributable to common shareholders was $2.3 million or $(0.04) per basic and diluted share for the first quarter of 2015, compared to net income of $4,000, or $0.00 per basic and diluted share, for the first quarter of 2014.

 

Balance Sheet Highlights

 

As of March 31, 2015, cash and cash equivalents totaled $63.1 million, compared to $91.5 million as of December 31, 2014. Net cash used in operating activities was $8.2 million in the first quarter of 2015. Net cash used in investing activities was $1.8 million, which was primarily used for payment for property, plant and equipment for the Company's PPV and varicella vaccine production facilities. Net cash used in financing activities was $18.3 million in the first quarter of 2015, including $19.4 million for repayment of loans, slightly offset by proceeds from a bank loan of $0.8 million. As of March 31, 2015, the Company had $30.5 million of loans due within one year. When appropriate, the Company will seek new commercial bank loans to finance the commercialization of pipeline products, as well as for other operational purposes.

 

About Sinovac

Sinovac Biotech Ltd. 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 hepatitis A and B, seasonal influenza, H5N1 pandemic influenza (avian flu), H1N1 influenza (swine flu), mumps and canine rabies. In 2009, Sinovac was the first company worldwide to receive approval for its H1N1 influenza vaccine, which it 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 to the government stockpiling program. Sinovac has filed a new drug application with the China Food and Drug Administration for its proprietary enterovirus 71 vaccine, having been proven effective in preventing hand, foot and mouth disease in infants and children during its Phase III clinical trial. The Company is currently developing a number of new products including a Sabin-strain inactivated polio vaccine, pneumococcal polysaccharides vaccine, pneumococcal conjugate vaccine and varicella vaccine. Sinovac primarily sells its vaccines in China, while also exploring growth opportunities in international markets. The Company has exported select vaccines to Mexico, Mongolia, Nepal, and the Philippines, and was recently granted a license to commercialize its hepatitis A vaccine in Chile. For more information, please visit the Company's website at www.sinovac.com .

Contact

Sinovac Biotech Ltd.
Helen Yang
Tel: +86-10-8279-9659
Fax: +86-10-6296-6910
Email: ir@sinovac.com

ICR Inc.
Bill Zima
U.S: 1-646-308-1707
Email: william.zima@icrinc.com

Katherine Knight
Phone: +1 (646) 277-1276
Email: katherine.knight@icrinc.com

 

SINOVAC BIOTECH LTD.

Consolidated Balance sheets

As of March 31, 2015 and December 31, 2014

(Expressed in thousands of U.S. Dollars, except for numbers of shares and per share data)

     

Current assets 

March 31, 2015

December 31, 2014

     

Cash and cash equivalents

63,070

91,518

Accounts receivable – net

42,356

40,757

Inventories

20,229

18,832

Prepaid expenses and deposits 

1,352

1,430

Deferred tax assets

1,768

2,266

Total current assets

128,775

154,803

     

Property, plant and equipment

68,682

68,417

Prepaid land lease payments

10,346

10,405

Long-term inventories

2,738

2,648

Long-term prepaid expenses

-

3

Prepayments for acquisition of equipment

1,140

1,387

Deferred tax assets

510

515

Licenses

264

352

Total assets

212,455

238,530

     

Current liabilities

   

Short-term bank loans and current portion of long-
term debt

30,542

47,375

Loan from a non-controlling shareholder

2,597

2,595

Accounts payable and accrued liabilities 

18,565

23,237

Income tax payable

801

1,101

Deferred revenue

5,026

4,996

Deferred government grants

904

530

     

Total current liabilities

58,435

79,834

     

Deferred government grants

7,012

7,494

Long-term debt

-

1,803

Deferred revenue

7,198

7,191

Other non-current liabilities

479

482

Total long term liabilities

14,689

16,970

     

Total liabilities

73,124

96,804

     

Commitments and contingencies 

   

Equity

   

Preferred stock

-

-

Common stock

56

56

Additional paid-in capital

108,620

108,243

Accumulated other comprehensive income

12,081

12,022

Statutory surplus reserves

12,627

12,627

Accumulated deficit

(8,635)

(6,384)

Total shareholders' equity

124,749

126,564

     

Non-controlling interests

14,582

15,162

Total equity

139,331

141,726

Total liabilities and equity

212,455

238,530

 

 
 
 

 SINOVAC BIOTECH LTD. 

 Consolidated Statements of Comprehensive Income (loss) 

For the three months ended March 31, 2015 and 2014

 (Unaudited) 

(Expressed in thousands of U.S. Dollars, except for numbers of shares and per share data)

       
   

 Three months ended March 31 

   

2015

2014

 Sales 

 

9,269

13,546

 Cost of sales 

 

2,434

3,278

 Gross profit 

 

6,835

10,268

       

 Selling, general and administrative expenses 

 

6,921

7,792

 Provision (recovery) for doubtful accounts 

 

(89)

162

 Research and development expenses 

 

2,212

1,702

 Government grants recognized in income

 

(6)

-

 Total operating expenses 

 

9,038

9,656

 Operating income (loss) 

 

(2,203)

612

       

 Interest and financing expenses  

 

(588)

(750)

 Interest income

 

427

780

 Other income 

 

75

146

 Income (loss) before income taxes and non-
controlling interests  

 

(2,289)

788

 Income tax expense 

 

(551)

(347)

       

 Net Income (loss) 

 

(2,840)

441

 Less: (Income) loss attributable to the non-controlling interests

589

(437)

 Net Income (loss) attributable to shareholders of Sinovac 

 

(2,251)

4

       

 Other comprehensive income (loss), net of tax of nil 

     

Foreign currency translation adjustments

 

66

(2,084)

 Total comprehensive income (loss) 

 

(2,774)

(1,643)

 Less: comprehensive (income) loss attributable to non-
controlling interests  

 

582

(100)

 Comprehensive loss attributable to shareholders of Sinovac 

 

(2,192)

(1,743)

       

 Weighted average number of shares of common stock outstanding 

     

   Basic 

 

56,213,166

55,587,029

   Diluted 

 

56,213,166

56,110,870

       

 Earning (loss) per share 

     

   Basic 

 

-                   0.04

0.00

   Diluted 

 

-                   0.04

0.00

 

 
 

SINOVAC BIOTECH LTD.

Consolidated Statements of Cash Flows

For the three months ended March 31, 2015 and 2014

(Unaudited)

(Expressed in thousands of U.S. Dollars)

 

Three months ended

 

 March 31

   

2015

 

2014

Cash flows used in operating activities

       

Net income (loss)

$

(2,840)

$

441

  Adjustments to reconcile net income (loss) to net cash

       

Used in operating activities:

       

 - deferred income taxes

 

534

 

311

 - stock-based compensation

 

113

 

72

 - inventory provision

 

45

 

221

 - provision(recovery) for doubtful accounts

 

(89)

 

162

 - deferred government grant recognized in income

 

(6)

 

-

 - depreciation of property, plant and equipment and amortization of licenses

1,692

 

2,631

 - amortization of the prepaid land lease payments

 

69

 

67

 - accretion expenses

 

29

 

27

Changes in:

       

 - accounts receivable

 

(1,843)

 

(4,981)

 - inventories

 

(1,542)

 

(2,879)

 - income tax payable 

 

-

 

7

 - prepaid expenses and deposits

 

664

 

(582)

 - deferred revenue 

 

-

 

(718)

 - accounts payable and accrued liabilities

 

(5,024)

 

(577)

         

Net cash used in operating activities

 

(8,198)

 

(5,798)

         

Cash flows provided by (used in) financing activities

       

 - Proceeds from bank loans

 

802

 

5,735

 - Repayments of bank loans

 

(19,403)

 

(2,458)

 - Proceeds from issuance of common stock,

       

   net of share issuance costs

 

264

 

105

 - Proceeds from shares subscribed 

 

-

 

49

 - Government grants received 

 

3

 

-

         
         

Net cash provided (used in) by financing activities

 

(18,334)

 

3,431

         

Cash flows used in investing activities

       

 - Acquisition of property, plant and equipment

 

(1,781)

 

(2,204)

         

Net cash used in investing activities

 

(1,781)

 

(2,204)

         

Exchange loss on cash and cash equivalents

 

(135)

 

(1,019)

         

Decrease in cash and cash equivalents

 

(28,448)

 

(5,590)

         

Cash and cash equivalents, beginning of year

 

91,518

 

107,242

         

Cash and cash equivalents, end of year

$

63,070

$

101,652

 

 


  

     
     
   

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