Core Viewpoint - The recent massive dividend payout by Sinovac Biotech has reignited concerns about its impact on product development and control disputes within the company, reminiscent of past events in its history [1][10]. Group 1: Dividend Details - Sinovac Biotech's board, led by Li Jiaqiang, announced three rounds of dividend proposals totaling up to $8.911 billion, which is approximately 80% of the company's cash reserves of $10.724 billion as of June 30, 2024 [1][3][9]. - The first round of dividends was set at $55 per share, amounting to $3.952 billion, followed by subsequent rounds of $19 and a range of $20 to $50 per share, potentially bringing the total to $8.911 billion [3][4]. - The total dividend amount proposed is 19 times the company's market value of approximately $465 million, raising concerns about the sustainability of such payouts [3][10]. Group 2: Historical Context and Control Disputes - The company has a history of control disputes, notably a privatization attempt in 2016 that led to a power struggle between founder Yin Weidong and chairman Pan Aihua, with Li Jiaqiang later siding with Yin [2][10]. - The recent dividend proposals are seen as a strategy by Li Jiaqiang to stabilize shareholder confidence amid ongoing control disputes and to compensate for previous years without dividends [9][11]. - The board's decision to issue dividends comes after a period of significant cash accumulation due to profits from the COVID-19 vaccine, which has since declined, leading to a net loss of $258 million in 2023 [6][10]. Group 3: Financial Performance and Future Outlook - Sinovac's financial health has been bolstered by the success of its COVID-19 vaccine, which contributed to a cash reserve increase from $1.041 billion in 2020 to $12.7 billion in 2023 [9][11]. - The company faces challenges in maintaining profitability as sales of its vaccines decline, particularly the EV71 hand-foot-mouth disease vaccine, which has seen reduced demand [10][11]. - The ongoing control struggle and the massive dividend payouts could hinder the company's ability to invest in research and development, which is crucial for future growth [11][12].
超600亿“掏空式分红”让它再次出圈，科兴生物的那些股东们意欲何为