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Sinovac Reports Unaudited First Quarter 2010 Financial Results
Date:5/13/2010

nd its products, impacted the entire vaccine industry in China and were subsequently proven to be unfounded based on the government's investigation.

    Sinovac's sales breakdown by product was as follows.

                                              Three months ended March 31
                                              2010                   2009
    Sales
     Healive                               $2,539,634             $4,902,315
     Bilive                                   541,059              1,196,177
     Anflu                                     31,796                467,607
     Panflu.1 (H1N1)                        1,331,410                     --
    Total                                  $4,443,899             $6,566,099

Sales of the Panflu.1 (H1N1) vaccine represented 29.96% of total sales for the three months ended March 31, 2010. The H1N1 vaccine was sold to the Chinese government in accordance with the government purchase program.

Gross profit for the first quarter of 2010 was $3.6 million, with a gross margin of 80%, compared to $5.1 million and a gross margin of 78% for the same period of 2009. The gross margin for the first quarter of 2010 increased due to the product mix during the current year quarter.

Selling, general and administrative expenses for the first quarter of 2010 were $3.1 million, compared to $3.5 million in the same period of 2009. SG&A expenses as a percentage of first quarter 2010 sales were 70%, compared to 54% during the first quarter of the prior year. The higher SG&A expenses as a percentage of revenue resulted from the additional G&A expenses associated with the 30%-owned joint venture, partly offsettin
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SOURCE Sinovac Biotech Ltd.
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