Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 708

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 16K
Chunk 708
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 the management considers that they will not expose the Group to any significant credit risk.

Additionally, the Group has policies in place to ensure that sales are made to customers with an appropriate credit history and the Group performs periodic credit evaluations of its customers. Normally the Group does not require collateral from trade debtors. The Group has not had any material credit losses.

(ii) Liquidity risk

Prudent liquidity management implies maintaining sufficient cash and cash equivalents and the availability of funding when necessary. The Group’s policy is to regularly monitor current and expected liquidity requirements to ensure that it maintains sufficient cash balances and adequate credit facilities to meet its liquidity requirements in the short and long term.

As at December 31, 2024 and 2023, in addition to future lease payments due based on the lease term (Note 15) and non-current liabilities, all of the Group’s other current financial liabilities are mainly due for settlement within twelve months and the Group expects to meet all liquidity requirements.

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(b) Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

The Group regularly reviews and manages its capital structure to ensure an optimal balance between higher shareholders’ return that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position, and makes adjustments to the capital structure in light of changes in economic conditions.

The Group monitors capital on the basis of the liabilities to assets ratio. This ratio is calculated as total liabilities divided by total assets as shown on the consolidated statements of financial position.

The liabilities to assets ratio as at December 31, 2024 and 2023 was as follows:

                                     December 31,               
                                             2024         2023  
 ────────────────────────────────────────────────────────────────
                                   (in US$ ’ 000)               
  Total liabilities                       130,013      183,336  
  Total assets                            281,717      275,504  
  Liabilities to assets ratio                46.2         66.5  

(c) Fair value estimation

The Group does not have any financial assets or liabilities which are carried at fair value. The carrying amounts of the Group’s current financial assets, including cash and cash equivalents, short-term investment, trade and bills receivables and other receivables, and current financial liabilities, including trade payables and other payables