Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 681

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 16K
Chunk 681
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 using a percentage-of-completion method.

Revenue recognized under the AZ Agreement and subsequent amendments is as follows:

                                                                 Year Ended December 31,                          
                                                                                    2024        2023        2022  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                                          (in US$ ’ 000)                          
  Goods — Invoiced Marketed Products sales                                        10,874      15,013       9,904  
  Services — Research and development                                             13,072      14,993      14,106  
  — Allocated from upfront and milestone payments                                    333          77         361  
  Royalties — Marketed Products                                                   13,633      13,818      12,356  
  Licensing — Allocated from upfront and milestone payments                        5,700           —      14,954  
                                                                                  43,612      43,901      51,681  

20. Research and Development Expenses

Research and development expenses are summarized as follows:

                                                Year Ended December 31,                            
                                                                   2024         2023         2022  
 ───────────────────────────────────────────────────────────────────────────────────────────────────
                                                         (in US$ ’ 000)                            
  Clinical trial related costs                                  135,652      199,728      255,935  
  Personnel compensation and related costs                       69,079       93,030      119,306  
  Other research and development expenses                         7,378        9,243       11,652  
                                                                212,109      302,001      386,893  

Research and development expenses include expenditures for collaborative arrangements under ASC 808 to evaluate the combination of the Group’s drug compounds with the collaboration partners’ drug compounds. For the years ended December 31, 2024, 2023 and 2022, the Group has incurred US$10.9million, US$22.0million and US$14.7million respectively, related to such collaborative arrangements.

F-42

Table of Contents

21. Government Grants

Government grants in the Oncology/Immunology segment are primarily given in support of the construction of a manufacturing plant in Shanghai and R& D activities which are conditional upon i) the Group spending a predetermined amount, regardless of success or failure of the research and development projects and/or ii) the achievement of certain stages of research and development projects being approved by the relevant