Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 352

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 1
Chunk 352
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 stock in a PFIC if we cease to be a PFIC for subsequent taxable years. However, gain recognized as a result of making the deemed sale election would be subject to the adverse rules described above and loss would not be recognized.

If we are a PFIC for any taxable year, a U. S. Holder will be treated as owning a proportionate amount (by value) of stock or shares owned by us in any direct or indirect subsidiaries that are also PFICs (any such entity, a “Lower-tier PFIC”) and will be subject to similar adverse rules with respect to any distributions we receive from, and dispositions we make of, the stock or shares of such subsidiaries, in each case as if the U. S. Holder owned its proportionate share of the Lower-tier PFIC directly, even though the U. S. Holder will not receive the proceeds of those distributions or dispositions directly. U. S. Holders are urged to consult their tax advisors about the application of the PFIC rules to any of our subsidiaries.

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PFIC “mark-to-market” election. In certain circumstances, a holder of“ marketable stock” of a PFIC will be subject to tax consequences different that those described above by making a timely mark-to-market election with respect to such stock. For the purposes of these rules“ marketable stock” is generally stock which is“ regularly traded”(traded in greater than de minimis quantities on at least 15 days during each calendar quarter) on a“ qualified exchange. ” Nasdaq, on which the ADSs are listed, is a“ qualified exchange” for this purpose. A non-U. S. exchange is a“ qualified exchange” if it is regulated by a governmental authority in the jurisdiction in which the exchange is located and with respect to which certain other requirements are met. The IRS has not identified specific non-U. S. exchanges that are“ qualified” for this purpose.

A U. S. Holder that makes a timely mark-to-market election must include in gross income, as ordinary income, for each taxable year that we are a PFIC an amount equal to the excess, if any, of the fair market value of the U. S. Holder’s ordinary shares or ADSs that are “marketable stock” at the close of the taxable year over the U. S. Holder’s adjusted tax basis in such ordinary shares or ADSs. An electing U. S. Holder may also claim an ordinary loss deduction for the excess, if