Shareholders to vote on new board at SinoVac amidst frozen shares and governance issues

From Yahoo Finance: 2025-06-25 13:41:00

Shares of Chinese biotech company SinoVac have been frozen since 2019 amid shareholder disputes, despite the success of their Covid vaccine. The company has over $10 billion in cash but no dividends. A shareholder vote on July 8 will decide whether to replace the current board.

SinoVac’s shares were frozen in 2019, following a poison pill activation and flood of new shares. Despite developing a successful Covid vaccine, the company’s stock remains halted. A shareholder vote next month will determine the fate of the current board.

The current board of SinoVac faces challenges, with the resignation of their auditor Grant Thornton hindering the filing of financials. Shareholders will vote on July 8 to decide on new directors. The company’s $10.3 billion cash hoard hangs in the balance.

Accounting and governance experts warn that SinoVac could struggle to secure a major auditor with the current board. Founder/CEO support a competing slate of directors. Shareholders will vote on the board’s future on July 8, impacting the company’s $10 billion cash reserve.

SinoVac faces uncertainty as shareholders prepare to vote on board replacements. The company’s frozen shares hinder investor benefits, despite a planned $55 per share dividend. The outcome of the July 8 meeting will determine the company’s future governance and potential unlocking of value. Two current board members, Chiang Li and Yuk Lam Lo, are included in the slate for the upcoming shareholder vote at SinoVac. There is discussion of a $55-a-share dividend, supported by both boards, potentially providing liquidity for shareholders who have been waiting for years.

SinoVac, a successful company beyond Covid, had $440 million in sales in 2023 and $121 million in the first half of 2024. The company’s focus is on non-covid drugs and various geographies. The new board aims to steer the company towards operational success and away from disputes and legal battles.

Investors who vote for board change at SinoVac may finally benefit from the company’s underlying success. The company’s cash value is estimated at around $140 per share. The new board’s primary goal is to prioritize operational efficiency over internal conflicts, potentially leading to long-awaited rewards for shareholders.

Read more: Seeking a Cure for Sickly Corporate Governance at SinoVac