Sinovac Reports Record Second Quarter 2008 Unaudited Financi...(in any forward-looking statement. Sinova...)

SINOVAC BIOTECH LTD.

Consolidated Statements of Income and Comprehensive Income

Three Months and Six Months Ended June 30, 2008 and 2007

(Unaudited)

(Expressed in U.S. Dollars)

Three months ended June 30 Six months ended June 30

2008 2007 2008 2007

Sales 16,521,429 9,538,169 25,383,430 $13,511,221

Cost of sales -

(exclusive

of depreciation of

land-use rights and

amortization of

licenses and

permits of $102,742

(2007 - $94,165) for

three months and

$202,575(2007-186,893)

for six months 2,613,939 1,290,154 3,661,805 1,931,604

Gross profit 13,907,490 8,248,015 21,721,625 11,579,617

Selling, general and

administrative

expenses 6,038,650 3,454,382 9,616,536 4,722,926

Research and

development expenses

- net of $126,829

(2007 - $374,825)

for three months and

$130,848 (2007 -

$367,411) for six

months in government

research grants 667,508 (53,345) 1,596,844 390,399

Depreciation of

property, plant

and equipment

and amortization

of licenses

and permits 169,484 159,303 347,713 328,344

Total operating

expense 6,875,642 3,560,340 11,561,093 5,441,669

Operating income 7,031,848 4,687,675 10,160,532 6,137,949

Interest and financing

expenses (399,854) (93,012) (557,561) (179,068)

Interes
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