Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 10

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 1
Chunk 10
---
 prepayment and repayment fees and penalties, thereby reducing money available to fund work...  

  increasing our vulnerability to adverse changes in general economic, industry and market conditions;  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────

  subjecting us to restrictive covenants that may reduce our ability to take certain corporate actions or obtain further debt or equity financing;  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

  limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we compete; and  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

  placing us at a competitive disadvantage compared to our competitors that have less debt or better debt servicing options.  

We intend to satisfy our current and future debt service obligations with our existing cash and cash equivalents and short-term investments. Nevertheless, we may not have sufficient funds, and may be unable to arrange for financing, to pay the amounts due under our existing debt. Failure to make payments or comply with other covenants under our existing debt instruments could result in an event of default and acceleration of amounts due.

Table of Contents

We have historically incurred significant net operating cash outflows, and may continue to experience net cash outflow from operating activities.

Investment in biopharmaceutical drug development is highly speculative. It entails substantial upfront expenditures and significant risk that a drug candidate might fail to gain regulatory approval or become commercially viable. Therefore, we expect to continue to incur significant expenses related to our ongoing operations, particularly research and development expenses, for the foreseeable future as we expand our development of, and seek regulatory approvals for, our drug candidates. We have historically generated net cash outflows from operations in 2022. Although our net cash from operations turned positive in 2023 and 2024, there is no guarantee that we will be able to continue to do so in the future as our operating cash flows depend on a number of variables that we may not be able to accurately predict or fully control, including the number and scope of our drug development programs and the associated cost of those programs, the cost of commercializing any approved products, our ability to generate revenue and the timing and amount of milestones and other payments we make or receive through arrangements with third parties. Our failure to generate positive cash flow from operations may adversely affect our ability to raise capital, maintain our research and development efforts, expand our business or