Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 644

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 16K
Chunk 644
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 the expected life of these receivables. There were significant estimates and judgments by management in determining the portfolio groups of these receivables and the estimated loss rates.

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The principal considerations for our determination that performing procedures relating to the allowances for credit losses on accounts receivable, other receivables (except for prepayments) and amounts due from related parties is a critical audit matter are (i) the significant estimates and judgments by management when developing the current expected credit losses to be incurred over the expected life of these receivables, including the determination of portfolio groups of accounts receivable, other receivables (except for prepayments) and amounts due from related parties and the estimated loss rates, (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence related to management’ s significant estimates and judgments, and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of internal controls relating to management’ s estimate of allowances for credit losses on accounts receivable, other receivables (except for prepayments) and amounts due from related parties. These procedures also included, among others, testing management’ s process of developing the allowances for credit losses, testing the accuracy and completeness of the underlying data and the mathematical accuracy of the allowances for credit losses, evaluating the appropriateness of the model and methodology used by management, assessing the reasonableness of the portfolio groups of the receivables used by management, which involved evaluating their credit risk characteristics, and assessing the reasonableness of the estimated loss rates used by management, which involved evaluating the historical default rates and application of forward-looking information, with the assistance of professionals with specialized skill and knowledge.

/s/PricewaterhouseCoopers Zhong Tian LLP

Shenzhen, the People
’
s Republic of China

March 19, 2025

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CONSOLIDATED FINANCIAL STATEMENTS

HUTCHMED (CHINA) LIMITED

CONSOLIDATED BALANCE SHEETS

(IN US$’000, EXCEPT SHARE DATA)

                                                                                                                                                                             December 31,                  
                                                                                                                                                                   Note              2024            2023  
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  Assets