Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 300

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 1
Chunk 300
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 was related to a fixed asset loan and $22.2 million was related to a working capital loan. The total weighted average cost of bank borrowings for the year ended December 31, 2024 was 3.02% per annum. For additional information, see “ - Loan Facilities.”

Certain of our subsidiaries, including those registered as wholly foreign-owned enterprises in China, are required to set aside at least 10.0% of their after-tax profits to their general reserves until such reserves reach 50.0% of their registered capital. In addition, our joint venture is required to allocate certain of its after-tax profits as determined in accordance with related regulations and its respective articles of association to the reserve funds upon its board approval. Profit appropriated to the reserve funds for our subsidiaries and joint venture incorporated in the PRC was approximately $318,000, $168,000 and $32,000 for the years ended December 31, 2022, 2023 and 2024, respectively.

Table of Contents

We have been exploring opportunities to monetize the underlying value of Shanghai Hutchison Pharmaceuticals, a non-core, non-consolidated joint venture. As a results, we entered into sale and purchase agreements to sell 45% equity interest in Shanghai Hutchison Pharmaceuticals out of our current 50% equity interest for cash consideration of RMB4.5 billion ($608.4 million). The closing of the transactions are subject to certain closing conditions. These transactions would allow us to focus on its core business of discovering, developing and commercializing novel therapies for the treatment of cancers and immunological diseases.

We believe that our current levels of cash and cash equivalents, short-term investments, along with cash flows from operations, dividend payments and unutilized bank borrowings, will be sufficient to meet our anticipated cash needs for at least the next 12 months. We believe that we can meet our need for cash through revenue generated from our marketed products and proceeds from the divestment of Shanghai Hutchison Pharmaceuticals to fund our next wave of innovations and enlarge our production capacity to support the development of our ATTC program. However, we may require additional financing in order to fund all of the clinical development efforts that we plan to undertake to accelerate the development of our clinical-stage drug candidates. For more information, see Item 3. D. “ Risk Factors - Risks Relating to Our Financial Position and Need for Capital.”

                                                              Year Ended December 31,                                
                                                                                 2024           2023           2022  
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