{"id":863372,"date":"2025-06-24T16:17:16","date_gmt":"2025-06-24T20:17:16","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/saif-partners-sends-open-letter-to-sinovac-shareholders-outlining-current-boards-failure-to-act-in-the-interests-of-shareholders\/"},"modified":"2025-06-24T16:17:16","modified_gmt":"2025-06-24T20:17:16","slug":"saif-partners-sends-open-letter-to-sinovac-shareholders-outlining-current-boards-failure-to-act-in-the-interests-of-shareholders","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/saif-partners-sends-open-letter-to-sinovac-shareholders-outlining-current-boards-failure-to-act-in-the-interests-of-shareholders\/","title":{"rendered":"SAIF Partners Sends Open Letter to Sinovac Shareholders Outlining Current Board\u2019s Failure to Act in the Interests of Shareholders"},"content":{"rendered":"

<\/p>\n

SAIF Partners Sends Open Letter to Sinovac Shareholders Outlining Current Board\u2019s Failure to Act in the Interests of Shareholders<\/b><\/p>\n

SAIF Partners Nominees Will Work Proactively to Help Shareholders Realize Full Value of Sinovac, Including Through the Payment of Significant Dividends and Resumption of Trading of Common Shares<\/i><\/b><\/p>\n

Current Board \u2013 With Most Directors Not Duly Elected By Shareholders and Not Sanctioned By Privy Council \u2013 Never Prioritized Taking Action to Resume Trading or Pay Dividends, Until Pressured By Shareholders<\/i><\/b><\/p>\n

Sinovac Management \u2013 and Not the Current Board \u2013 is Working Actively to Make Funds Available for a US$55 Per Share Dividend Distribution<\/i><\/b><\/p>\n

Urges Sinovac Shareholders to VOTE the GOLD<\/span> Proxy Card FOR the Election of SAIF\u2019s Director Nominees, and Discard the Company\u2019s White Card<\/i><\/b><\/p>\n

BEIJING–(BUSINESS WIRE<\/a>)–
\nSAIF Partners IV L.P., (\u201cSAIF Partners\u201d), the largest single investor in Sinovac Biotech Ltd. (\u201cSinovac\u201d or the \u201cCompany\u201d), beneficially owning approximately 15% of the outstanding common shares, today sent a letter to its fellow Sinovac shareholders exposing the current Sinovac Board\u2019s failure to act in the interest of all shareholders resulting in failure to pay shareholders dividends and to resume trading of the shares after a six-year halt.<\/p>\n

\nThis is a stark contrast to the ten highly qualified individuals that SAIF Partners has nominated for election to Sinovac\u2019s Board of Directors (the \u201cBoard\u201d) who are deeply committed to working proactively to help shareholders realize the full value of their investment in Sinovac, which they have been denied for many years. In fact, Sinovac management \u2013 and not the current Board \u2013 is working actively to make funds available for payment of a dividend.<\/p>\n

\nShareholders will have the opportunity to vote for change by electing SAIF Partners\u2019 nominees in connection with the special meeting of the shareholders of the Company to be held on Tuesday, July 8, 2025 at 8 p.m. Atlantic Standard Time (Wednesday, July 9, 2025 at 8:00 a.m. China Standard Time), and at any adjourned, postponed, continued, or rescheduled meeting thereof (the \u201cSpecial Meeting\u201d).<\/p>\n

\nIn the letter, SAIF Partners highlights how the current board \u2013 which is largely comprised of directors who are not duly elected by the shareholders and are not sanctioned by the Privy Council \u2013 has failed to take action until it was pressured to do so by shareholders. Further, the current Board has not demonstrated interest in building value for Sinovac shareholders and is generally disengaged from management. If elected, SAIF Partners\u2019 nominees will work closely with management to address Sinovac\u2019s challenges, and will bring disciplined corporate governance, proper capital allocation, strategic foresight and operational excellence to the Company.<\/p>\n

\nSAIF Partners also reiterates its plan to address the most critical priorities for Sinovac, including declaring additional dividends, resuming trading of common shares and resolving shareholder disputes.<\/p>\n

\nThe full text of the letter is below.<\/p>\n

\nJune 24, 2025<\/p>\n

\nDear Fellow Sinovac Shareholders:<\/p>\n

\nAs the largest single shareholder of Sinovac Biotech Ltd. (\u201cSinovac\u201d or the \u201cCompany\u201d), beneficially owning approximately 15% of the outstanding common shares, we are writing to you today to share some important information as we approach the special meeting of shareholders where you will have the opportunity to choose who represents you on the Company\u2019s Board of Directors (the \u201cBoard\u201d).<\/p>\n

\nYou deserve a Board that acts proactively to create value on your behalf to ensure the distribution of dividends and provide liquidity to all shareholders. SAIF Partners IV L.P., (\u201cSAIF Partners\u201d) has nominated ten highly qualified candidates for election to the Board who will do exactly that.<\/b>We urge you to vote the GOLD<\/span> card for our director candidates today, and to discard the Company\u2019s white card.<\/b><\/p>\n

\nWe felt that nominating director candidates was necessary because the current four-member Board \u2013 with one member affiliated with 1Globe and two members affiliated with OrbiMed \u2013 has not effectively guided Sinovac after the significant chaos of the past several years. The current Board has prioritizing spending the Company\u2019s cash to continue a seven-year legal feud between 1Globe and other shareholders and management of the Company. Only when we forced Sinovac to hold a special meeting of shareholders \u2013 and they faced the possibility that they will be removed from their positions \u2013 did they react by declaring dividends and taking cursory steps to other longstanding issues.<\/p>\n

\nHow did we get to this point?<\/p>\n

    \n
  1. \nThe previous Board, elected in 2017, oversaw the Company\u2019s record performance during the Covid-19 pandemic.As a result of their efforts, together with the management team, Sinovac has approximately $10.3 billion in cash in its accounts.<\/p>\n

    <\/b>The current Board \u2013 which took office in February 2025 and is dominated by 1Globe and OrbiMed \u2013 kicked out the Board that oversaw this incredible success. After taking control, they did nothing to build value for all shareholders, as none of the Company\u2019s cash has been distributed in dividends, and the common shares have not traded for more than six years. One would think that the current Board\u2019s highest priority would be corrective action to reverse these critical issues. Other than pursue their directionless legal disputes, they have done nothing for Sinovac or the shareholders.<\/p>\n<\/li>\n

  2. \nThe prolonged halt of stock trading and failure to distribute dividends are a direct result of the efforts to replace the previous Board by the current one, led by 1Globe. If the ongoing conflicts involving the current Board, management and shareholders escalate and are not resolved, it will be impossible to resume stock trading.<\/p>\n

    This is a tragedy given that if the common shares were trading solely based on the $10.3 billion in cash and cash equivalents, it would be above $140 per share <\/b>\u2013 over 22 times the $6.47 per share price where it is currently halted.<\/p>\n<\/li>\n

  3. \nOur nominees are deeply committed to unlocking the significant value of Sinovac for all shareholders by paying sizable dividends and resuming trading of the Company\u2019s common shares. In fact, it is the management of Sinovac \u2013 and not the current Board \u2013 that is working actively to make funds available for payment of a dividend. If the current Board had been supportive of such an action, and had worked collaboratively to bring it to fruition, the dividends would have been distributed by now.<\/p>\n<\/li>\n
  4. \nThe current Board has lost its legitimacy. In January 2025, the Privy Council ruled that Haifeng Qiu, Yuk Lam Lo, David Guowei Wang, Pengfei Li and Jianzeng Cao were elected to the Board. Four of these directors resigned in just four months without explanation, and the current Board is now comprised of Yuk Lam Lo, Chiang Li, Sven H. Borho and Geoffrey C. Hsu. As such, Yuk Lam Lo was the only member of the Board duly elected by the shareholders and sanctioned by the Privy Council.<\/p>\n<\/li>\n
  5. \nPerhaps most damning is that the current Board has not demonstrated interest, ability or drive to lead Sinovac. It is comprised of individuals who are generally disengaged from management, and have caused \u201cdisruptive impact\u201d on Sinovac according to management.<\/p>\n<\/li>\n<\/ol>\n

    \nIt is time to elect directors who, if elected, will execute a plan to maximize value for ALL<\/span><\/b> Sinovac shareholders. This includes:<\/p>\n