Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 564

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 5
Chunk 564
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 the successful commercialization of our drug candidates.”
As of December 31, 2024, we had cash and cash equivalents of $154.0 million and short-term investments of $682.1 million and unutilized bank facilities of $60.5 million. Substantially all of our bank deposits are at major financial institutions, which we believe are of high credit quality. As of December 31, 2024, we had $82.8 million in bank loans, of which $60.6 million was related to a fixed asset loan and $22.2 million was related to a working capital loan. The total weighted average cost of bank borrowings for the year ended December 31, 2024 was 3.02% per annum. For additional information, see “—Loan Facilities.”
Certain of our subsidiaries, including those registered as wholly foreign-owned enterprises in China, are required to set aside at least 10.0% of their after-tax profits to their general reserves until such reserves reach 50.0% of their registered capital. In addition, our joint venture is required to allocate certain of its after-tax profits as determined in accordance with related regulations and its respective articles of association to the reserve funds upon its board approval. Profit appropriated to the reserve funds for our subsidiaries and joint venture incorporated in the PRC was approximately $318,000, $168,000 and $32,000 for the years ended December 31, 2022, 2023 and 2024, respectively.
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We have been exploring opportunities to monetize the underlying value of Shanghai Hutchison Pharmaceuticals, a non-core, non-consolidated joint venture. As a results, we entered into sale and purchase agreements to sell 45% equity interest in Shanghai Hutchison Pharmaceuticals out of our current 50% equity interest for cash consideration of RMB4.5 billion ($608.4 million). The closing of the transactions are subject to certain closing conditions. These transactions would allow us to focus on its core business of discovering, developing and commercializing novel therapies for the treatment of cancers and immunological diseases.
We believe that our current levels of cash and cash equivalents, short-term investments, along with cash flows from operations, dividend payments and unutilized bank borrowings, will be sufficient to meet our anticipated cash needs for at least the next 12 months. We believe that we can meet our need for cash through revenue generated from our marketed products and proceeds from the divestment of Shanghai Hutchison Pharmaceuticals to fund our