Core Viewpoint - The article discusses the recent massive dividend distribution by Sinovac Biotech Ltd. (SVA.US), which has reignited interest in the company and highlighted ongoing control disputes among its shareholders. The total dividend amount could reach up to $8.911 billion, raising concerns about the sustainability of the company's financial health and future development [1][2][3]. Dividend History - In April and June 2025, the board led by Li Jiaqi announced three rounds of dividend plans, with a total potential payout of $8.911 billion, which is approximately 80% of the company's cash reserves of $10.724 billion as of June 30, 2024 [1][3][4]. - The first round of dividends has already been implemented, while the second and third rounds are still pending [4]. Financial Background - The cash reserves of Sinovac Biotech have significantly increased due to profits from the sales of its COVID-19 vaccine, which was approved for conditional use in February 2021 [7][9]. - The company's cash and cash equivalents rose from $1.041 billion in 2020 to $12.7 billion in 2023, largely due to the success of its COVID-19 vaccine [11]. Control Disputes - The control of Sinovac Biotech has been contested between its founder Yin Weidong and Li Jiaqi, with the latter gaining a stronger position following a judicial ruling in January 2025 [2][12]. - The ongoing disputes may distract from the company's focus on developing new drugs, as Li Jiaqi aims to shift attention towards the research and development of innovative medicines [12]. Impact on Future Development - The massive dividend payouts could hinder the company's ability to invest in research and development, which is crucial for its long-term growth, especially as revenues from COVID-19 vaccines decline [12][14]. - The company has faced losses, with a reported net profit loss of $258 million in 2023, indicating financial strain amid declining vaccine sales [12][13]. Historical Context - The article references past instances where shareholder dividends negatively impacted product development, suggesting a potential repeat of history if the current dividend strategy continues [14][15].
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