Core Viewpoint - Heng Ren Partners demands that Sinovac Biotech Ltd. distribute $8.9 billion in cash to shareholders and resume trading of its shares on NASDAQ, highlighting the company's failure to share its financial success with shareholders despite significant cash reserves [1][5]. Financial Performance - In 2019, Sinovac's revenues were $246 million with an income of $39.8 million, which surged to over $19 billion in revenue and $8.5 billion in profits by 2021, indicating a dramatic increase in financial performance [2]. - Sinovac has maintained over $10 billion in net cash and cash equivalents for more than three years without distributing any cash to shareholders [3]. Shareholder Concerns - Heng Ren emphasizes that while Sinovac's subsidiaries distributed $2.7 billion in dividends from 2021 to 2024, common shareholders received nothing, which raises concerns about the company's treatment of its equity holders [5][9]. - The trading of Sinovac's shares has been suspended for over six years due to litigation, preventing shareholders from capitalizing on the company's success [3][4]. Proposed Actions - Heng Ren calls for the Board to take immediate action to distribute $8.9 billion to shareholders and to provide a clear timeline for the resumption of trading on NASDAQ [5][6]. - The Board is urged to prevent any trading of shares until full disclosure of the company's financial condition is made to shareholders [6]. Valuation Insights - OrbiMed Advisors LLC, a significant stakeholder, values its Sinovac shares at $333.9 million, equating to $122.85 per share, contrasting sharply with the current frozen trading price of $6.47 [7]. Transparency and Accountability - Heng Ren insists on the necessity for a full accounting of all distributions made by Sinovac, particularly regarding transactions involving prior board members and subsidiaries [9].
Heng Ren Partners Demands Sinovac Distribute $8.9 Billion in Cash to its Shareholders and Cause Reinstatement of Trading