Seeking a Cure for Sickly Corporate Governance at SinoVac.png
Sinovac Biotech Ltd.
Sinovak developed a very successful coffee vaccine and has more than $ 10 billion in cash in the public budget, but investors did not have profits or liquidity
The current council raises a competition list from managers with the support of the founder/CEO along with the great investors who represent more than 31 % of the suspended shares
The current board of directors issued ads that may have contributed to the resignation of Grant Thornton, which prevents financial data 2024
He told Accounting and Governance experts that Corfov Senovak will struggle to secure a major auditor in the current council
Professor Charles Elson Corathov told the “Set” for a bad Grant Thornton “as it happens” and raises questions about corporate governance under the current council
Both parties are planning to pay a $ 55 profit distribution/shares, but Sinovac has a much greater value that will require trading to resume investors to benefit
The shareholders will decide whether the board of directors will be kept or replaced at a meeting on July 8
by John Janaron
Choosing the winner of biotechnology shares is difficult. Imagine investing in a small company that has become one of the largest suppliers of Covid vaccine in China, which has led to a significant increase in billions of dollars and the value of a potential increase of 25x, only to see frozen stocks for years. The question now: Can the new board of directors do better in opening the value?
Learn about Sinovac Biotech Ltd. About a year before the first whispers about the Covid circular, the stock was frozen after a very rare occurrence: the so -called alleged poison pills were activated, which led to a flood of new shares issued to some shareholders and stopping trading on the stock exchange.
The stocks, despite their survival, have not been circulated since early 2019. In the following year, the company has successfully developed the Covid vaccine that was widely used – especially in China – which led to tremendous financial success. Finally, the company has about 10.3 billion dollars in cash, which is equivalent to about $ 140 per share, with the exception of any value for employment, according to Sif Partners, the largest shareholder in the company with a 15 % stake.
The fate of the company – and its cash office – is now based on the shareholder vote on July 8 to determine whether the current council will be replaced. The Challenger Group, led by Saif Partners, the founder of Sinovac and the CEO of Weidong Yin alongside Vivo Capital and Advantech Capital, which has 16 % between the two investment companies. All SAIF, Advantech and Vivo spokesperson referred Corbgov to the current data and refused more.
On the other hand, the current council supports the Chairman of the Board of Directors, Qiang Lee and his office for the 1globe Capital family alongside two investment companies, and Heng Ren partners. A spokesman for the company, Korth Corith, also directed the actually public data.
Unfortunately, the current council has not made much progress towards canceling the freezing of stocks-the most important short-term goal. On the contrary, the council may have contributed to the resignation of its auditor, Grant Thornton, after he announced that it was “evaluating some of the actions of the companies taken by the previous board of directors.” One of the reasons for his resignation is that the announcement of the Board of Directors submitted “uncertainty” and will not be able to sign the company’s 2024 financial statements.
For its part, the Board of Directors argued that the departure of Grant Thornton has nothing to do with any of his work. A company was martyred by raising the Grant Thornton company, which stated that “its resignation was not the result of any dispute with [Company’s current board of directors]Company or management. “
Regardless of a mixture of factors that led to the departure of Grant Thornton, a first -class company may mean that the company will not find another major accounting company to register on its numbers, which puts the company’s list at another danger. “At this stage, the council seems to be up to something,” said an accountant expert, who asked not to be appointed to Corpoov. “Other companies will be hesitant until they are disinfected.”
In fact, the current council may have lost wider credibility, according to Charles Elson, the founding director of the Winberg Center for Corporate Governance at Dilayer University. “This does not reflect well on any council that would allow references to resign – what is worse is if the council is depositing the departure. This does not seem to be in the interest of the company or shareholders – the credit duty of the council.” “You have to ask if it was done to help the company or in the self -interest of managers.”
Professor Elson indicated that the company has performed well with a very successful drug and that its operations are not a source of concern at hand. “It goes beyond the issue of performance, which is the issue of governance they face,” he said.
The current council was also eroded to only four members after a multiple departure. One of that observation is Pengfei Li, who was sentenced to prison after charges that include embezzlement and forgery of government documents and seals related to his attempt to control the Sinovac sub -company.
Interestingly, the Challenger Group does not try to wipe all current managers. The list actually includes two current four members of the Board of Directors, Qiang Lee, the same is a major investor in the company, along with Yuk Lam Lo, who was elected in a former shareholder vote.
Although the trading resumption may be the best result of the shareholders looking for liquidity, there is also a discussion of the distribution of huge profits of $ 55, which will be welcome to those who were waiting for years without seeing ten cents. It seems that both councils support profits and more, but discussing this did not start until recently when Saif started making a stir. What’s more, there is no reason for not paying the profits before the July meeting – even if the shares are suspended.
Finally, it is important to look at Sinovac as a successful company – outside Covid. The company had 440 million dollars in 2023, and 121 million dollars in the first half of 2024 (the work is very seasonal and the financial statements were not provided in the second half of 2024 after), with revenues that come from a variety of non -governmental drugs. Although the company’s cash value may be about $ 140 per share, the real function of the new council is to focus on the company’s focus on its operations – instead of battles and lawsuits. After many years, investors who vote for the Board of Directors finally change the basic success rewards of Senovak.
communication:
Kurgov
Editor@corgogov.com
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