Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 103

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 1
Chunk 103
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 Therefore, if our market capitalization declines we may be or become a PFIC. In addition, there is uncertainty as to how to apply the PFIC rules for purposes of classifying certain of our income and assets as active or passive. Furthermore, the proportionate value of our passive assets may increase over time if the value of our ownership stake in any other company in which we own less than 25% (by value) increases. In light of the foregoing, no assurance can be provided that we were not, or will not be, a PFIC for any taxable year.

If we are or become a PFIC, U. S. investors in our ordinary shares and ADSs generally will be subject to adverse U. S. federal income tax consequences, such as ineligibility for any preferential tax rates on capital gains or on actual or deemed dividends, interest charges on certain taxes treated as deferred, and additional reporting requirements under U. S. federal income tax laws and regulations. We do not expect to provide the information regarding our income that would be necessary in order for a U. S. investor to make a qualified electing fund (“ QEF”) election if we are a PFIC for any taxable year. U. S. investors in our ordinary shares or ADSs should consult their tax advisors regarding all aspects of the application of the PFIC rules to their ordinary shares and ADSs.

Under certain attribution rules, certain of our non-U. S. subsidiaries are expected to be treated as“ controlled foreign corporations” for U. S. federal income tax purposes, and, as a result, there could be adverse U. S. federal income tax consequences to U. S. investors that own (directly or indirectly) our ordinary shares or ADSs and are treated as“ Ten Percent Shareholders. ”

Certain “ Ten Percent Shareholders” (as defined below) in a non-U. S. corporation that is a “controlled foreign corporation” (a “ CFC”) for U. S. federal income tax purposes generally are required to include in income for U. S. federal income tax purposes their pro rata share of the CFC’s “ Subpart F income,” investment of earnings in U. S. property, and “global intangible low-taxed income,” even if the CFC has made no distributions to its shareholders. A non-U. S. corporation generally will be a CFC for U. S. federal income tax purposes if Ten Percent Shareholders own, directly, indirectly or constructively (through attribution