v3.26.1
Property, Plant and Equipment, Net
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net

8. Property, Plant and Equipment, net

 

 

 

 

December 31,

 

 

 

 

2025

 

 

2024

 

 

Cost

 

 

 

 

 

 

 

Construction in progress

 

$

83,151

 

 

$

178,952

 

 

Plant and buildings

 

 

536,189

 

 

 

411,143

 

 

Machinery and equipment

 

 

576,551

 

 

 

560,274

 

 

Motor vehicles

 

 

4,209

 

 

 

4,024

 

 

Office equipment and furniture

 

 

41,842

 

 

 

38,971

 

 

Leasehold improvements

 

 

317,036

 

 

 

287,616

 

 

Land

 

 

6,851

 

 

 

6,234

 

 

Total cost

 

$

1,565,829

 

 

$

1,487,214

 

 

Less: accumulated depreciation

 

 

591,731

 

 

 

486,005

 

 

Less: accumulated impairment

 

 

268,039

 

 

 

120,241

 

 

Property, plant and equipment, net

 

$

706,059

 

 

$

880,968

 

As of December 31, 2025, buildings of Sinovac Biotech (Yidao) Co., Ltd. with a net book value of $82,746 (2024 -$105,779) were pledged as collateral for a bank loan from China Construction Bank (note 13 (c)).

Net depreciation expense for the year ended December 31, 2025 was $97,446 (2024 - $110,227, 2023 - $157,446), after deduction of amortized government grants specifically related to qualified property, plant and equipment.

Gain on disposal of equipment for the year ended December 31, 2025 was $362 (2024 - loss $2,285, 2023 - gain $2,592).

In 2025 and 2024, the Company identified impairment indicators on certain of machinery, equipment, construction in progress and leasehold improvements. The Company performed a recoverability test by comparing the forecasted undiscounted cash flows to be generated from continued use of these assets to the asset carrying values. As the carrying values exceeded the projected undiscounted cash flows, the Company measured the impairment amount by estimating the fair value of the assets using a discounted cash flow approach. The estimate also considers physical deterioration, economic obsolescence, and alternative future use. The Company recorded $27,189 of impairment for the year ended December 31, 2025 (2024 - $8,937, 2023 - $111,314).

The Company identified declines in market rental rates and market conditions for certain plants located in Hangzhou and Beijing. The Company performed a recoverability test by comparing the forecasted undiscounted cash flows to be generated from continued use of these plants to the asset carrying values. As the carrying values exceeded the projected undiscounted cash flows, the Company measured the impairment amount by estimating the fair value of the assets. The Company determined the fair value using the income approach by capitalizing the existing rental income over the remaining lease agreement terms and future market rental income for the remaining term through the land use right expiration date. The estimate also considers physical deterioration, economic obsolescence, and alternative future use. The impairment of $110,408 was recorded for the year ended December 31, 2025 (2024 - $19,057, 2023 - $nil).