What's up with Sinovac Biotech's power struggle?

Sinovac Biotech has been embroiled in a decade-long power struggle, fueled by its success in developing the CoronaVac COVID-19 vaccine. Here are the key points to understand the situation:

1. **Roots of the Conflict**: The struggle began in 2016 with a failed attempt to take the company private, which divided the founders and their institutional supporters. This rift escalated during a special shareholder meeting on July 8, 2025, where dissident shareholders sought to install a new board, citing concerns about corporate governance, dividend payments, and the relisting of Sinovac shares, which had been suspended since February 2019.
2. **Chaos and Legal Challenges**: The meeting descended into chaos, and the board adjourned, citing unresolved litigation over the legitimacy of certain shareholdings, particularly those issued to Vivo Capital and Prime Success through a 2018 PIPE transaction. This issue is crucial as it could affect voting rights and control of the company.
3. **Ongoing Legal and Governance Issues**: Sinovac has faced extensive international litigation and a trading suspension since 2019. The company's governance has been under scrutiny, with allegations of poor corporate governance and a failure to address shareholder concerns.
4. **Impact on the Company's Reputation and Operations**: The power struggle has had significant implications for Sinovac's operations and reputation. It has included physical confrontations at the company's Beijing factories in 2018 and has been marked by legal disputes in multiple courts.

In summary, Sinovac Biotech's power struggle is a complex, long-standing conflict that has been exacerbated by the company's success during the COVID-19 pandemic. It involves significant legal challenges, governance failures, and deep-seated disagreements among the founders and institutional backers over control and direction of the company.