Press release
SINOVAC Management Statement Regarding Auditor Resignation
Beijing, April 22, 2025 (GLOBE NEWSWIRE) -- To the Shareholders of Sinovac Biotech Ltd. and Other Stakeholders: The management of Sinovac Biotech Ltd.
About this update from Sinovac Biotech, Ltd.
[{"type":"text","content":"Beijing, April 22, 2025 (GLOBE NEWSWIRE) -- To the Shareholders of Sinovac Biotech Ltd. and Other Stakeholders: The management of Sinovac Biotech Ltd. (NASDAQ: SVA, “SINOVAC” or the “Company”) recently received notice of its external auditor’s decision to resign from its engagement for the Company’s year-end audit for the fiscal year 2024. According to the resignation letter, the auditor’s decision was prompted by an announcement the Company’s current Board made on April 1, 2025, stating that “the current members of the Board are assessing certain corporate actions taken by the former board of directors of the Company after they ceded office.” The auditor expressed concern that such a review introduces uncertainty regarding the factual and legal basis upon which its audit opinion would rely. As a result of the resignation, the Company will not be able to meet the deadline to file its Form 20-F annual report with the U.S. Securities and Exchange Commission (“SEC”), which is due by April 30, 2025. This development is deeply concerning, as it reflects that the actions taken by the current Board have caused disruption to the Company’s compliant operations and governance. The Board’s stated justification for initiating this review appears to be based on a January 16, 2025 ruling by the UK Privy Council. That ruling held, among other things, that the slate of directors nominated by a group of shareholders at the Company’s 2018 Annual General Meeting had been validly appointed. However, the current composition of the Board does not reflect that slate. Of the five directors recently disclosed, only three were part of that slate, and one of those three is currently in custody following a conviction of crimes of embezzlement, forgery of government documents and seals, and forgery of company seals. Multiple shareholders have raised serious concerns regarding the current Board’s qualifications, legitimacy and its authority to act as the Company’s Board. While we respect the ruling of the UK Privy Council, we, as the Company’s management, believe that maintaining the stability and orderly operation of the Company is in the best interests of all shareholders and stakeholders. While the Privy Council’s decision validated the slate of directors nominated by certain shareholders at the Company’s 2018 Annual General Meeting, it did not set aside ...