Core Viewpoint - Heng Ren Partners is urging Sinovac Biotech Ltd. to disclose the record and payment dates of a special cash dividend and to consider an additional dividend, highlighting the company's significant cash reserves and the need for transparency [1][2][3]. Group 1: Dividend Announcement and Shareholder Demands - Sinovac announced a special cash dividend of 41 per share, which would result in a total payout of 1.3 billion in net cash, sufficient for its operational needs [1][3][6]. Group 2: Financial Position and Cash Management - After the proposed dividend payments, Sinovac would still hold more than $6.3 billion in net cash and cash equivalents, raising questions about the rationale for retaining such a large cash reserve [3][5]. - The company's financial report as of June 30, 2024, indicates that even without revenue or operating cash flow, the cash on hand could finance nearly nine years of capital expenditures [5]. Group 3: Regulatory Context and Shareholder Rights - The U.S. Securities and Exchange Commission (SEC) has previously inquired about Sinovac's ability to distribute earnings to U.S. investors, and the company has not identified any restrictions on such distributions [4]. - Heng Ren emphasizes the importance of addressing the issue of excess cash and the need for clear communication regarding dividend payments to ensure shareholders benefit from their investments [4][6].
Heng Ren Partners Calls on Sinovac to Disclose the Record and Payment Dates of the Special Dividend and Distribute an Additional Dividend of $41 per Share