Core Viewpoint - The company, Sinovac Biotech, is facing a delisting crisis from NASDAQ due to its failure to submit the 2024 annual report on time, which has raised concerns about its future as a publicly traded entity [2][3]. Group 1: Delisting Crisis - Sinovac received a delisting notice from NASDAQ on November 12, 2025, after failing to submit its annual report by the deadline [2]. - The company has been suspended from trading since 2019 due to governance issues and is now facing a second delisting threat [2][3]. - Sinovac has hired a new auditing firm, UHY LLP, and plans to apply for a hearing to delay the delisting process, asserting that its core business remains unaffected [2][3]. Group 2: Governance Issues - The company has a history of governance problems, stemming from a power struggle between its founders, Yin Weidong and Pan Aihua, which has led to significant internal conflicts [3][4]. - The governance issues peaked in 2018, resulting in chaotic management practices, including attempts to dilute each other's shares [4][5]. Group 3: Financial Performance - Sinovac experienced a significant financial boost during the COVID-19 pandemic, reporting a net profit of $8.46 billion in 2021 [5]. - However, the company has faced declining revenues from its COVID-19 vaccine, leading to a reported net loss of $258 million in 2023 [7][8]. - The company has a substantial cash reserve of $10.3 billion, which has become a focal point in the ongoing power struggle among shareholders [6][7]. Group 4: Dividend Controversy - Sinovac announced a controversial dividend plan totaling $7.448 billion, which raised concerns given its current market capitalization of only $389 million [6][7]. - The dividend plan is seen as a way to compensate shareholders for the lack of liquidity due to the stock suspension [7]. Group 5: Ongoing Internal Conflicts - The company is currently experiencing intense boardroom battles, with a recent special shareholder meeting resulting in the removal of the existing board and the return of founder Yin Weidong [8][9]. - The legitimacy of the special meeting has been challenged by the current chairman, Li Jiaqiang, citing a court injunction [9].
科兴生物再触退市红线，治理困局拖累美股上市地位