Prime Success Sets the Record Straight Regarding Continued False and Misleading Statements from Sinovac Biotech's Current Board
Prime Success L.P., (together with its affiliates, "Prime Success" or "we"), a significant shareholder of Sinovac Biotech Ltd. (NASDAQ:SVA) ("Sinovac" or the "Company") with ownership of approximately 8% of the Company's outstanding shares, today issued a statement in response to the Company's continued false, misleading and outright fabricated claims relating to the upcoming Special Meeting of Shareholders (the "Special Meeting") scheduled for July 8, 2025.
Prime Success stated:
"We believe shareholders deserve the truth – which is why we feel compelled to yet again correct the record, this time regarding the "alert" released on June 16 by the Board currently controlling Sinovac (the "1Globe Activist Board"). In addition to considering the below facts, we think our fellow shareholders should ask themselves a simple question: Given their relentless campaign to distort the truth and repeated twisting of reality, why should you believe anything this Board says? The 1Globe Activist Board should stop with the misleading press releases and start issuing dividends to all shareholders.
Here are the facts:
1. Our Injunction Does NOT Block Dividends. What the 1Globe Activist Board Claims Is a Lie.
Our legal filing merely seeks to maintain the status quo and protect the fundamental shareholder rights of Prime Success — rights that the 1Globe Activist Board has gone to extreme lengths to strip from us. The relief we have requested is narrowly tailored and does not seek to stop dividend distribution to any valid shareholder. It puts forward two reasonable requests to maintain the status quo: (1) that our rights as shareholders be protected, and (2) that those rights not be stripped while we wait for the arbitration to be completed.1
Equiniti, the paying agent, is listed as a respondent only because they would be the executor of a potential court decision. There is no language whatsoever in our petition that asks the court to prevent Equiniti from distributing dividends to other shareholders.
The 1Globe Activist Board knows this. They read the petition. Yet they chose to lie – again.
2. There is no "New Lawsuit" – it is a Self-Defense Injunction Request in Response to the 1Globe Activist Board's Ongoing Litigation.
Let's be absolutely clear: we did not start this legal fight. We are defending ourselves from a Board that has tried — repeatedly — to erase us from the shareholder register.
Back in March, we formally asked the Company to confirm our shareholder status. They failed to do that. We then followed the terms of the contract and joined an existing arbitration to enforce the rights we paid tens of millions of dollars for 7 years ago, when we invested in Sinovac. Then, on May 6, the 1Globe Activist Board filed a lawsuit in Antigua attempting to cancel our registered shares entirely — stripping us of our voting rights, our dividend rights, and our very identity as shareholders, instead of abiding by the contract and waiting for the arbitrators to issue a ruling. Afterwards, as if that weren't enough, they escalated their assault by filing an emergency interim injunction on May 30, seeking to bar us from exercising our shareholder rights before the July 8 meeting. That's not a defense of governance — that's a coordinated ambush.
The emergency injunction we filed last week was self-defense, merely asking to preserve the status quo and our ability to exercise our shareholder rights of attending and voting in the shareholder meeting and receiving lawful dividends like everyone else. Nothing more.
The 1Globe Activist Board left us with no choice but to ask the court not to treat us any differently than the other shareholders, while supporting dividend distribution to all.
3. The Current Board is Continuing a Pattern of Public Lies.
- They claim to uphold the Privy Council's ruling — and yet two of the new directors (the self-appointed Chairman Chiang Li and Sven Borho) were not among the five directors validated by the Privy Council. How do imposters become stewards of shareholder trust?
- They portray the shares we legally acquired through life-saving, capital-risking investment as "invalid." This is a blatant lie and a flagrant attempt to deprive shareholders of their legitimate properties and rights — and an insult to investors who stood by Sinovac when it mattered most.
- They claim we are blocking the dividend, when in fact we are the ones demanding that it be paid early and fairly.
- They claim we are trying to double-dip on dividends. That is a lie. Prime Success is a lawful shareholder of both Sinovac Biotech and Sinovac Life Sciences, entities that pay dividends separately from each other. We receive dividends from a company only when all the other shareholders of the company also receive dividends. We are advocating for fair, timely, and pro-rata dividend payments to all shareholders.
We will not waste further breath cataloging each lie — the resignation of the auditor and the open protest of management have already spoken volumes.
4. The 1Globe Activist Board Is Weaponizing Dividends — And They Think Shareholders Are Too Blind to Notice.
The 1Globe Activist Board has turned dividends — your right — into weapons. They deliberately set the record date after the Special Meeting, dangling your $55.00 per share in front of you like a bait: vote for us, or lose your payout, whereas in reality, the dividends have nothing to do with the Special Meeting and should not have anything to do with the Special Meeting.
This is not governance. This is coercion.
We call on you to see through the lies, recognize the manipulation, and look to the future.
We will no longer engage in their game of distractions. We will build, grow, and lead.
5. The 1Globe Activist Board Has Failed Its Duties.
The 1Globe Activist Board has:
- Blatantly lied to your face
- Deliberately misled the public and shareholders about the nature of our legal action and our intentions
- Maliciously weaponized the dividend to cling to power
- Misused Company resources to wage wars against legitimate shareholders of the Company
They have breached their fiduciary duty. They have misrepresented the truth. And they have done so knowingly, and with impunity.
These individuals who answer to no one but 1Globe should be held accountable for their actions against you, our fellow shareholders, and the Company.
Your vote at the Special Meeting will make that happen. SAIF Partners IV L.P., ("SAIF Partners"), has now filed a definitive proxy statement in connection with the special meeting of the shareholders of the Company to be held on Tuesday, July 8, 2025. As we have said before, Sinovac needs a Board that is comprised of professionals focused on building real, lasting value, a Board that will guide the Company forward on a stable, productive path and break the pattern of internal conflict and ongoing litigation fueled by the 1Globe Activist Board.
We urge all shareholders vote the GOLD proxy card in support of the SAIF nominees and choose the leadership that will best secure our Company's success in the years to come."
Sincerely,
Prime Success, L.P.
About Prime Success, L.P.
Prime Success is an investment vehicle established by Advantech Capital specifically to invest in Sinovac and Sinovac Life Sciences; Advantech Capital is a private equity fund established in 2016 with a focus on innovation-driven growth opportunities in China.
1 https://www.law360.com/articles/2353329/investor-seeks-ny-court-s-help-in-sinovac-control-battle
View source version on businesswire.com: https://www.businesswire.com/news/home/20250616508773/en/
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