Vivo Capital issues letter to Sinovac Biotech shareholders

Vivo Capital, an approximately 8% shareholder in Sinovac Biotech (SVA), sent a letter to shareholders. The letter said, “We, Vivo Capital, write to you as fellow shareholders of Sinovac Biotech Ltd. to address a number of statements in the April 29, 2025 letter from Sinovac’s Board of Directors (the “Board”) that we believe are false, and to reaffirm our commitment to upholding the best interests of all shareholders and to transparent corporate governance. The Board has deceptively portrayed recent events as centering around a dispute with Vivo only. But the problem is at Sinovac’s Board, not at Vivo. In fact, Sinovac’s Board has precipitated a corporate governance crisis that threatens the Company’s future growth and has eroded its credibility with all shareholders. After the Privy Council ruled in January that five directors had been elected in February 2018 consistent with Antiguan law, a new Board was installed-but contrary to the claims of the Board, its composition did not match the slate the Privy Council had considered. With no transparency, multiple directors have purportedly resigned and been replaced within three months, casting substantial uncertainty over the Company’s corporate governance and stability. Further, the Company’s independent auditor, Grant Thornton Zhitong Certified Public Accountants LLP, resigned in response to the Board’s April 1, 2025 statement that attempted to cast doubt on the validity of the Company’s corporate actions over the past seven years.1 This resignation, in turn, prompted Sinovac’s own management to publicly express concerns that the current Board’s actions have disrupted Sinovac’s compliant operations and governance. Further, dissatisfaction with the current Board does not just come from Vivo. Another major shareholder, SAIF Partners, formally requisitioned a special meeting of shareholders, which will be held on July 8, to elect new directors to the Board… The Board’s recent actions, including its threat to invalidate the PIPE transaction notwithstanding 1Globe’s inability to obtain such relief in seven years of litigation in Antigua, left Vivo with no choice but to initiate legal proceedings. Vivo is litigating not just to protect its own interests, but the interests of all shareholders. We are gravely concerned about the Board’s improper actions which have directly undermined the Company’s governance and precipitated the current crisis, as evidenced by the resignation of the Company’s independent auditor, the Company’s delayed filing of its annual report with the SEC, and its receipt of notification of non-compliance from the NASDAQ. Our position is clear: all shareholders deserve to be treated fairly and equitably. Importantly, the Board’s current actions risk harming all shareholders, as the Board’s attempt to disenfranchise long-term shareholders like Vivo sets an alarming precedent of how it values and rewards key investors and how it views the legal and contractual obligations of the Company. Indeed, the Board is now attempting to illegally exclude Vivo and another long-term shareholder from the July 8 shareholders meeting. These actions would, among other things, make it harder for Sinovac to attract investors in the future, hurting the Company and all of its shareholders. We urge all of our fellow shareholders to join us in helping to restore trust in the Company’s governance. We appreciate your continued support as we work to ensure the Company’s future is built on integrity, transparency, and respect for all stakeholders.”