HUTCHMED (HCM) 20-F28 Feb 232022 FY Annual report (foreign)Financial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	12 Months Ended
Document and Entity Information - shares	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Document and Entity Information
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-37710
Entity Registrant Name	HutchMED (China) LIMITED
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	48th Floor, Cheung Kong Center
Entity Address, Address Line Two	2 Queen’s Road
Entity Address, City or Town	Central
Entity Address, Country	HK
Entity Ordinary Shares, Outstanding	864,775,340
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Entity Central Index Key	0001648257
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Auditor Firm ID	1424	1424	1389
Auditor Name	PricewaterhouseCoopers Zhong Tian LLP	PricewaterhouseCoopers Zhong Tian LLP	PricewaterhouseCoopers
Auditor Location	Shenzhen, the People’s Republic of China	Shenzhen, the People’s Republic of China	Hong Kong
ADS
Document and Entity Information
Title of 12(b) Security	American depositary shares, each representing five ordinary shares, par value $0.10 per share
Trading Symbol	HCM
Security Exchange Name	NASDAQ
Ordinary Shares
Document and Entity Information
Title of 12(b) Security	Ordinary shares, par value $0.10 per share
No Trading Symbol Flag	true
Business contact
Document and Entity Information
Contact Personnel Name	Dr. Weiguo Su
Entity Address, Address Line One	Level 18, The Metropolis Tower
Entity Address, Address Line Two	10 Metropolis Drive
Entity Address, Address Line Three	Hunghom
Entity Address, City or Town	Kowloon
Entity Address, Country	HK
City Area Code	852
Local Phone Number	2121 8200
Contact Personnel Fax Number	852 2121 8281

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 313,278	$ 377,542
Short-term investments	317,718	634,158
Accounts receivable	97,988	83,580
Other receivables, prepayments and deposits	54,214	81,041
Inventories	56,690	35,755
Total current assets	839,888	1,212,076
Property, plant and equipment	75,947	41,275
Right-of-use assets	8,722	11,879
Deferred tax assets	15,366	9,401
Investments in equity investees	73,777	76,479
Other non-current assets	15,745	21,551
Total assets	1,029,445	1,372,661
Current liabilities
Accounts payable	71,115	41,177
Other payables, accruals and advance receipts	264,621	210,839
Bank borrowings		26,905
Income tax payable	1,112	15,546
Other current liabilities	17,055	17,191
Total current liabilities	353,903	311,658
Lease liabilities	5,196	7,161
Deferred tax liabilities	2,710	2,765
Long-term bank borrowings	18,104
Other non-current liabilities	12,662	11,563
Total liabilities	392,575	333,147
Commitments and contingencies
Company's shareholders' equity
Ordinary shares; $0.10 par value; 1,500,000,000 shares authorized; 864,775,340 and 864,530,850 shares issued at December 31, 2022 and 2021 respectively	86,478	86,453
Additional paid-in capital	1,497,273	1,505,196
Accumulated losses	(971,481)	(610,328)
Accumulated other comprehensive (loss)/income	(1,903)	5,572
Total Company's shareholders' equity	610,367	986,893
Non-controlling interests	26,503	52,621
Total shareholders' equity	636,870	1,039,514
Total liabilities and shareholders' equity	$ 1,029,445	$ 1,372,661

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED BALANCE SHEETS
Ordinary shares, par value (in US$ per share)	$ 0.10	$ 0.10
Ordinary shares, authorized (in shares)	1,500,000,000	1,500,000,000
Ordinary shares, issued (in shares)	864,775,340	864,530,850

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues
Total revenues	$ 426,409	$ 356,128	$ 227,976
Operating expenses
Research and development expenses	(386,893)	(299,086)	(174,776)
Selling expenses	(43,933)	(37,827)	(11,334)
Administrative expenses	(92,173)	(89,298)	(50,015)
Total operating expenses	(834,102)	(684,445)	(424,644)
Loss from operations	(407,693)	(328,317)	(196,668)
Gain on divestment of an equity investee		121,310
Other (expense)/income
Interest income	9,599	2,076	3,236
Other income	1,833	2,426	4,600
Interest expense	(652)	(592)	(787)
Other expense	(13,509)	(12,643)	(115)
Total other (expense)/income	(2,729)	(8,733)	6,934
Loss before income taxes and equity in earnings of equity investees	(410,422)	(215,740)	(189,734)
Income tax benefit/(expense)	283	(11,918)	(4,829)
Equity in earnings of equity investees, net of tax	49,753	60,617	79,046
Net loss	(360,386)	(167,041)	(115,517)
Less: Net income attributable to non-controlling interests	(449)	(27,607)	(10,213)
Net loss attributable to the Company	$ (360,835)	$ (194,648)	$ (125,730)
Losses per share attributable to the Company-basic (US$ per share)	$ (0.43)	$ (0.25)	$ (0.18)
Losses per share attributable to the Company-diluted (US$ per share)	$ (0.43)	$ (0.25)	$ (0.18)
Number of shares used in per share calculation-basic	847,143,540	792,684,524	697,931,437
Number of shares used in per share calculation-diluted	847,143,540	792,684,524	697,931,437
Goods \| Third parties
Revenues
Total revenues	$ 314,329	$ 266,199	$ 203,606
Operating expenses
Costs of goods and services	(268,698)	(229,448)	(178,828)
Goods \| Related parties
Revenues
Total revenues	5,293	4,256	5,484
Operating expenses
Costs of goods and services	(3,616)	(3,114)	(3,671)
Services -Commercialization-Marketed Products \| Third parties
Revenues
Total revenues	41,275	27,428	3,734
Operating expenses
Costs of goods and services	(38,789)	(25,672)	(6,020)
Services -Collaboration Research and Development \| Third parties
Revenues
Total revenues	23,741	18,995	9,771
Services -Research and Development \| Related parties
Revenues
Total revenues	507	525	491
Other collaboration revenue from royalties \| Third parties
Revenues
Total revenues	26,310	15,064	$ 4,890
Other collaboration revenue from licensing \| Third parties
Revenues
Total revenues	$ 14,954	$ 23,661

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (360,386)	$ (167,041)	$ (115,517)
Other comprehensive (loss)/income
Foreign currency translation (loss)/gain	(8,469)	2,964	9,530
Total comprehensive loss	(368,855)	(164,077)	(105,987)
Less: Comprehensive loss/(income) attributable to non-controlling interests	545	(28,029)	(11,413)
Total comprehensive loss attributable to the Company	$ (368,310)	$ (192,106)	$ (117,400)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total Company's Shareholders' Equity	Ordinary Shares	Additional Paid-in Capital	Accumulated Losses	Accumulated Other Comprehensive (Loss)/Income	Non-controlling Interests	Total
Balance at Dec. 31, 2019	$ 288,012	$ 66,691	$ 514,904	$ (289,734)	$ (3,849)	$ 24,891	$ 312,903
Balance (in shares) at Dec. 31, 2019		666,906
Increase (Decrease) in Stockholders' Equity
Net (loss)/income	(125,730)			(125,730)		10,213	(115,517)
Issuance in relation to public offering	118,341	$ 2,366	115,975				118,341
Issuance in relation to public offering (in shares)		23,669
Issuances in relation to private investment in public equity ("PIPE")	200,000	$ 3,667	196,333				200,000
Issuances in relation to private investment in public equity ("PIPE") (in shares)		36,667
Issuance costs	(8,317)		(8,317)				(8,317)
Issuances in relation to share option exercises	593	$ 48	545				593
Issuances in relation to share option exercises (in shares)		480
Share-based compensation - Share options	8,727		8,727			10	8,737
Share-based compensation - Long-term incentive plan ("LTIP")	7,203		7,203			16	7,219
Share-based compensation	15,930		15,930			26	15,956
LTIP-treasury shares acquired and held by Trustee	(12,904)		(12,904)				(12,904)
Dividends declared to non-controlling shareholders of subsidiaries						(1,462)	(1,462)
Purchase of additional interests in a subsidiary of an equity investee (Note 11)	(139)		(52)	(83)	(4)	(35)	(174)
Transfer between reserves			44	(44)
Foreign currency translation adjustments	8,330				8,330	1,200	9,530
Balance at Dec. 31, 2020	484,116	$ 72,772	822,458	(415,591)	4,477	34,833	518,949
Balance (in shares) at Dec. 31, 2020		727,722
Increase (Decrease) in Stockholders' Equity
Net (loss)/income	(194,648)			(194,648)		27,607	(167,041)
Issuance in relation to public offering	614,867	$ 11,960	602,907				614,867
Issuance in relation to public offering (in shares)		119,600
Issuances in relation to private investment in public equity ("PIPE")	100,000	$ 1,639	98,361				100,000
Issuances in relation to private investment in public equity ("PIPE") (in shares)		16,393
Issuance costs	(29,806)		(29,806)				(29,806)
Issuances in relation to share option exercises	2,452	$ 82	2,370				2,452
Issuances in relation to share option exercises (in shares)		816
Share-based compensation - Share options	16,339		16,339			26	16,365
Share-based compensation - Long-term incentive plan ("LTIP")	19,808		19,808			70	19,878
Share-based compensation	36,147		36,147			96	36,243
LTIP-treasury shares acquired and held by Trustee	(27,309)		(27,309)				(27,309)
Dividends declared to non-controlling shareholders of subsidiaries						(9,894)	(9,894)
Transfer between reserves			89	(89)
Divestment of an equity investee (Note 22)	(1,468)		(21)		(1,447)	(443)	(1,911)
Foreign currency translation adjustments	2,542				2,542	422	2,964
Balance at Dec. 31, 2021	986,893	$ 86,453	1,505,196	(610,328)	5,572	52,621	1,039,514
Balance (in shares) at Dec. 31, 2021		864,531
Increase (Decrease) in Stockholders' Equity
Net (loss)/income	(360,835)			(360,835)		449	(360,386)
Issuances in relation to share option exercises	174	$ 25	149				174
Issuances in relation to share option exercises (in shares)		244
Share-based compensation - Share options	6,724		6,724			12	6,736
Share-based compensation - Long-term incentive plan ("LTIP")	32,970		32,970			15	32,985
Share-based compensation	39,694		39,694			27	39,721
LTIP-treasury shares acquired and held by Trustee	(48,084)		(48,084)				(48,084)
Dividends declared to non-controlling shareholders of subsidiaries						(25,600)	(25,600)
Transfer between reserves			318	(318)
Foreign currency translation adjustments	(7,475)				(7,475)	(994)	(8,469)
Balance at Dec. 31, 2022	$ 610,367	$ 86,478	$ 1,497,273	$ (971,481)	$ (1,903)	$ 26,503	$ 636,870
Balance (in shares) at Dec. 31, 2022		864,775

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF CASH FLOWS
Net cash used in operating activities	$ (268,599)	$ (204,223)	$ (62,066)
Investing activities
Purchases of property, plant and equipment	(36,664)	(16,401)	(7,949)
Purchase of leasehold land		(355)	(11,631)
Refund/(payment) of leasehold land deposit		930	(2,326)
Deposits in short-term investments	(1,202,013)	(1,355,976)	(732,908)
Proceeds from short-term investments	1,518,453	921,364	629,373
Purchase of a warrant		(15,000)
Dividend and proceeds received from divestment of Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited ("HBYS")	16,488	159,118
Deposit received for divestment of other equity investee	324
Net cash generated from/(used in) investing activities	296,588	(306,320)	(125,441)
Financing activities
Proceeds from issuances of ordinary shares	174	717,319	318,934
Purchases of treasury shares	(48,084)	(27,309)	(12,904)
Dividends paid to non-controlling shareholders of subsidiaries	(25,600)	(9,894)	(1,462)
Repayment of loan to a non-controlling shareholder of a subsidiary		(579)
Proceeds from bank borrowings	17,753
Repayment of bank borrowings	(26,923)
Payment of issuance costs	(83)	(29,509)	(8,134)
Net cash (used in)/generated from financing activities	(82,763)	650,028	296,434
Net (decrease)/increase in cash and cash equivalents	(54,774)	139,485	108,927
Effect of exchange rate changes on cash and cash equivalents	(9,490)	2,427	5,546
Net (decrease)/increase in cash and cash equivalents, including effect of exchange rate changes	(64,264)	141,912	114,473
Cash and cash equivalents
Cash and cash equivalents at beginning of year	377,542	235,630	121,157
Cash and cash equivalents at end of year	313,278	377,542	235,630
Supplemental disclosure for cash flow information
Cash paid for interest	150	425	815
Cash paid for tax, net of refunds	18,891	5,014	5,940
Supplemental disclosure for non-cash activities
Increase in accrued capital expenditures	9,618	8,607	298
Vesting of treasury shares for LTIP	$ 12,034	$ 1,450	$ 4,828

Organization and Nature of Busi

Organization and Nature of Business	12 Months Ended
Organization and Nature of Business	Dec. 31, 2022
Organization and Nature of Business
Organization and Nature of Business	1. Organization and Nature of Business HUTCHMED (China) Limited (the “Company”) and its subsidiaries (together the “Group”) are principally engaged in researching, developing, manufacturing and marketing pharmaceutical products. The Group and its equity investees have research and development facilities and manufacturing plants in the People’s Republic of China (the “PRC”) and sell their products mainly in the PRC, including Hong Kong and Macau. In addition, the Group has established international operations in the United States of America (the “U.S.”) and Europe. The Company’s ordinary shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited (“HKEX”) and the AIM market of the London Stock Exchange, and its American depositary shares (“ADS”) are traded on the Nasdaq Global Select Market. Liquidity As at December 31, 2022, the Group had accumulated losses of US$971,481,000 primarily due to its spending in drug research and development activities. The Group regularly monitors 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, 2022, the Group had cash and cash equivalents of US$313,278,000, short-term investments of US$317,718,000 and unutilized bank borrowing facilities of US$140,289,000. Short-term investments comprised of bank deposits maturing over three months. The Group’s operating plan includes the continued receipt of dividends from an equity investee. Dividends received for the years ended December 31, 2022, 2021 and 2020 were US$43,718,000, US$49,872,000 and US$86,708,000 respectively. Based on the Group’s operating plan, the existing cash and cash equivalents, short-term investments and unutilized bank borrowing facilities are considered to be sufficient to meet the cash requirements to fund planned operations and other commitments for at least the next twelve months from the issuance date of the consolidated financial statements (the look-forward period used).

Particulars of Principal Subsid

Particulars of Principal Subsidiaries and Equity Investee	12 Months Ended
Particulars of Principal Subsidiaries and Equity Investee	Dec. 31, 2022
Particulars of Principal Subsidiaries and Equity Investee
Particulars of Principal Subsidiaries and Equity Investee	2. Particulars of Principal Subsidiaries and Equity Investee Equity interest Place of attributable to establishment the Group and December 31, Name operations 2022 2021 Principal activities Subsidiaries HUTCHMED Limited PRC 99.75 % 99.75 % Research, development, manufacture and commercialization of pharmaceutical products HUTCHMED International Corporation U.S. 99.75 % 99.75 % Provision of professional, scientific and technical support services Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Company Limited (“HSPL”) PRC 50.87 % 50.87 % Provision of sales, distribution and marketing services to pharmaceutical manufacturers Hutchison Healthcare Limited PRC 100 % 100 % Manufacture and distribution of healthcare products Hutchison Hain Organic (Hong Kong) Limited (“HHOHK”) (note) Hong Kong 50 % 50 % Wholesale and trading of healthcare and consumer products HUTCHMED Science Nutrition Limited Hong Kong 100 % 100 % Wholesale and trading of healthcare and consumer products Equity investee Shanghai Hutchison Pharmaceuticals Limited (“SHPL”) PRC 50 % 50 % Manufacture and distribution of prescription drug products Note: HHOHK is regarded as a subsidiary of the Company, as while both its shareholders have equal representation at the board, in the event of a deadlock, the Group has a casting vote and is therefore able to unilaterally control the financial and operating policies of HHOHK.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2022
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements reflect the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained. All inter-company balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the U.S. (“U.S. GAAP”). Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Foreign Currency Translation The Company’s presentation currency and functional currency is the U.S. dollar (“US$”). The financial statements of its subsidiaries with a functional currency other than the US$ have been translated into the Company’s presentation currency. All assets and liabilities of the subsidiaries are translated using year-end exchange rates and revenues and expenses are translated at average exchange rates for the year. Translation adjustments are reflected in accumulated other comprehensive (loss)/income in shareholders’ equity. Net foreign currency exchange losses of US$5,704,000 and net foreign currency exchange gains of US$1,671,000 and US$3,265,000 were recorded in other expense and income in the consolidated statements of operations for the years ended December 31, 2022, 2021 and 2020 respectively. Foreign Currency Risk The Group’s operating transactions and its assets and liabilities in the PRC are mainly denominated in Renminbi (“RMB”), which is not freely convertible into foreign currencies. The Group’s cash and cash equivalents denominated in RMB are subject to government controls. The value of the RMB is subject to fluctuations from central government policy changes and international economic and political developments that affect the supply and demand of RMB in the foreign exchange market. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”). Remittances in currencies other than RMB by the Group in the PRC must be processed through the PBOC or other PRC foreign exchange regulatory bodies which require certain supporting documentation in order to complete the remittance. Allowance for Current Expected Credit Losses and Concentration of Credit Risk Financial instruments that potentially expose the Group to credit risk consist primarily of cash and cash equivalents, short-term investments, and financial assets not carried at fair value including accounts receivable and other receivables. The Group recognizes an allowance for current expected credit losses (“CECLs”) on financial assets not carried at fair value. CECLs are calculated over the expected life of the financial assets on an individual or a portfolio basis considering information available about the counterparties’ credit situation and collectability of the specific cash flows, including information about past events, current conditions and future forecasts. The Group places substantially all of its cash and cash equivalents and short-term investments in major financial institutions, which management believes are of high credit quality. The Group has a practice to limit the amount of credit exposure to any particular financial institution. 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. Cash and Cash Equivalents The Group considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist primarily of cash on hand and bank deposits and are stated at cost, which approximates fair value. Short-term Investments Short-term investments include deposits placed with banks with original maturities of more than three months but less than one year. Accounts Receivable Accounts receivable are stated at the amount management expects to collect from customers based on their outstanding invoices. The allowance for CECLs reflects the Group’s current estimate of credit losses expected to be incurred over the life of the receivables. The Group considers various factors in establishing, monitoring, and adjusting its allowance for CECLs including the aging of the accounts and aging trends, the historical level of charge-offs, and specific exposures related to particular customers. The Group also monitors other risk factors and forward-looking information, such as country risk, when determining credit limits for customers and establishing adequate allowances for CECLs. Accounts receivable are written off after all reasonable means to collect the full amount (including litigation, where appropriate) have been exhausted. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average cost method. The cost of finished goods comprises raw materials, direct labor, other direct costs and related production overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. A provision for excess and obsolete inventory will be made based primarily on forecasts of product demand and production requirements. The excess balance determined by this analysis becomes the basis for excess inventory charge and the written-down value of the inventory becomes its cost. Written-down inventory is not written up if market conditions improve. Property, Plant and Equipment Property, plant and equipment consist of buildings, leasehold improvements, plant and equipment, furniture and fixtures, other equipment and motor vehicles. Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the depreciable assets. Buildings 20 years Plant and equipment 5-10 years Furniture and fixtures, other equipment and motor vehicles 4-5 years Leasehold improvements Shorter of (a) 5 years or (b) remaining term of lease Additions and improvements that extend the useful life of an asset are capitalized. Repairs and maintenance costs are expensed as incurred. Impairment of Long-Lived Assets The Group evaluates the recoverability of long-lived assets in accordance with authoritative guidance on accounting for the impairment or disposal of long-lived assets. The Group evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. If indicators of impairment exist, the first step of the impairment test is performed to assess if the carrying value of the net assets exceeds the undiscounted cash flows of the assets. If yes, the second step of the impairment test is performed in order to determine if the carrying value of the net assets exceeds the fair value. If yes, impairment is recognized for the excess. Investments in Equity Investees Investments in equity investees over which the Group has significant influence are accounted for using the equity method. The Group evaluates equity method investments for impairment when events or circumstances suggest that their carrying amounts may not be recoverable. An impairment charge would be recognized in earnings for a decline in value that is determined to be other-than-temporary after assessing the severity and duration of the impairment and the likelihood of recovery before disposal. The investments are recorded at fair value only if impairment is recognized. Leasehold Land Leasehold land represents fees paid to acquire the right to use the land on which various plants and buildings are situated for a specified period of time from the date the respective right was granted and are stated at cost less accumulated amortization and impairment loss, if any. Amortization is computed using the straight-line basis over the lease period of 50 years. Goodwill Goodwill represents the excess of the purchase price plus fair value of non-controlling interests over the fair value of identifiable assets and liabilities acquired. Goodwill is not amortized, but is tested for impairment at the reporting unit level on at least an annual basis or when an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. When performing an evaluation of goodwill impairment, the Group has the option to first assess qualitative factors, such as significant events and changes to expectations and activities that may have occurred since the last impairment evaluation, to determine if it is more likely than not that goodwill might be impaired. If as a result of the qualitative assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the quantitative fair value test is performed to determine if the fair value of the reporting unit exceeds its carrying value. Other Intangible Assets Other intangible assets with finite useful lives are carried at cost less accumulated amortization and impairment loss, if any. Amortization is computed using the straight-line basis over the estimated useful lives of the assets. Borrowings Borrowings are recognized initially at fair value, net of debt issuance costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of debt issuance costs) and the redemption value is recognized in the consolidated statements of operations over the period of the borrowings using the effective interest method. Ordinary Shares The Company’s ordinary shares are stated at par value of US$0.10 per ordinary share. The difference between the consideration received, net of issuance cost, and the par value is recorded in additional paid-in capital. Treasury Shares The Group accounts for treasury shares under the cost method. The treasury shares are purchased for the purpose of the LTIP and held by a trustee appointed by the Group (the “Trustee”) prior to vesting. Share-Based Compensation Share options The Group recognizes share-based compensation expense on share options granted to employees and directors based on their estimated grant date fair value using the Polynomial model. This Polynomial pricing model uses various inputs to measure fair value, including the market value of the Company’s underlying ordinary shares at the grant date, contractual terms, estimated volatility, risk-free interest rates and expected dividend yields. The Group recognizes share-based compensation expense in the consolidated statements of operations on a graded vesting basis over the requisite service period, and accounts for forfeitures as they occur. Share options are classified as equity-settled awards. Share-based compensation expense, when recognized, is charged to the consolidated statements of operations with the corresponding entry to additional paid-in capital. LTIP The Group recognizes the share-based compensation expense on the LTIP awards based on a fixed or determinable monetary amount on a straight-line basis for each annual tranche awarded over the requisite period. For LTIP awards with performance targets, prior to their determination date, the amount of LTIP awards that is expected to vest takes into consideration the achievement of the performance conditions and the extent to which the performance conditions are likely to be met. Performance conditions vary by awards, and may include targets for shareholder returns, financings, revenues, net profit after taxes and the achievement of clinical and regulatory milestones. These LTIP awards are classified as liability-settled awards before the determination date (i.e. the date when the achievement of any performance conditions are known), as they settle in a variable number of shares based on a determinable monetary amount, which is determined upon the actual achievement of performance targets. As the extent of achievement of the performance targets is uncertain prior to the determination date, a probability based on management’s assessment of the achievement of the performance targets has been assigned to calculate the amount to be recognized as an expense over the requisite period. After the determination date or if the LTIP awards have no performance conditions, the LTIP awards are classified as equity-settled awards. If the performance target is achieved, the Group will pay the determined monetary amount to the Trustee to purchase ordinary shares of the Company or the equivalent ADS. Any cumulative compensation expense previously recognized as a liability will be transferred to additional paid-in capital. If the performance target is not achieved, no ordinary shares or ADS of the Company will be purchased and the amount previously recorded in the liability will be reversed and included in the consolidated statements of operations. Defined Contribution Plans The Group’s subsidiaries in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. The relevant labor regulations require the Group’s subsidiaries in the PRC to pay the local labor and social welfare authority’s monthly contributions at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor and social welfare authorities are responsible for meeting all retirement benefits obligations and the Group’s subsidiaries in the PRC have no further commitments beyond their monthly contributions. The contributions to the plan are expensed as incurred. The Group also makes payments to other defined contribution plans for the benefit of employees employed by subsidiaries outside the PRC. The defined contribution plans are generally funded by the relevant companies and by payments from employees. The Group’s contributions to defined contribution plans for the years ended December 31, 2022, 2021 and 2020 amounted to US$11,795,000, US$7,181,000 and US$2,660,000 respectively. Revenue Recognition Revenue is measured based on consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Group from a customer, are also excluded from revenue. The Group recognizes revenue when it satisfies a performance obligation by transferring control over a good, service or license to a customer. (i) Goods and services The Group principally generates revenue from (1) sales of goods, which are the manufacture or purchase and distribution of pharmaceutical products and other consumer health products, and (2) provision of services, which are the provision of sales, distribution and marketing services to pharmaceutical manufacturers. The Group evaluates whether it is the principal or agent for these contracts. Where the Group obtains control of the goods for distribution, it is the principal (i.e. recognizes sales of goods on a gross basis). Where the Group does not obtain control of the goods for distribution, it is the agent (i.e. recognizes provision of services on a net basis). Control is primarily evidenced by taking physical possession and inventory risk of the goods. Revenues from sales of goods is recognized when the customer takes possession of the goods. This usually occurs upon completed delivery of the goods to the customer site. The amount of revenue recognized is adjusted for expected sales incentives as stipulated in the contract, which are generally issued to customers as direct discounts at the point-of-sale or indirectly in the form of rebates. Sales incentives are estimated using the expected value method. Additionally, sales are generally made with a limited right of return under certain conditions. Revenues are recorded net of provisions for sales discounts and returns. Revenue from provision of services is recognized when the benefits of the services transfer to the customer over time, which is based on the proportionate value of services rendered as determined under the terms of the relevant contract. Additionally, when the amounts that can be invoiced correspond directly with the value to the customer for performance completed to date, the Group recognizes revenue from provision of services based on amounts that can be invoiced to the customer. Deferred revenue is recognized if consideration is received in advance of transferring control of the goods or rendering of services. Accounts receivable is recognized if the Group has an unconditional right to bill the customer, which is generally when the customer takes possession of the goods or services are rendered. Payment terms differ by subsidiary and customer, but generally range from 45 to 180 days from the invoice date. (ii) License and collaboration contracts The Group’s Oncology/Immunology reportable segment includes revenue generated from license and collaboration contracts, which generally contain multiple performance obligations including (1) the license to the commercialization rights of a drug compound and (2) the research and development services for each specified treatment indication, which are accounted for separately if they are distinct, i.e. if a product or service is separately identifiable from other items in the arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The transaction price generally includes fixed and variable consideration in the form of upfront payment, research and development cost reimbursements, contingent milestone payments and sales-based royalties. Contingent milestone payments are not included in the transaction price until it becomes probable that a significant reversal of revenue will not occur, which is generally when the specified milestone is achieved. The allocation of the transaction price to each performance obligation is based on the relative standalone selling prices of each performance obligation determined at the inception of the contract. The Group estimates the standalone selling prices based on the income approach. Control of the license to the drug compounds transfers at the inception date of the collaboration agreements and consequently, amounts allocated to this performance obligation are generally recognized at a point in time. Conversely, research and development services for each specified indication are performed over time and amounts allocated to these performance obligations are generally recognized over time using cost inputs as a measure of progress. The Group has determined that research and development expenses provide an appropriate depiction of measure of progress for the research and development services. Changes to estimated cost inputs may result in a cumulative catch-up adjustment. Royalty revenues are recognized as future sales occur as they meet the requirements for the sales-usage based royalty exception. Deferred revenue is recognized if allocated consideration is received in advance of the Group rendering research and development services or earning royalties on future sales. Accounts receivable is recognized based on the terms of the contract and when the Group has an unconditional right to bill the customer, which is generally when research and development services are rendered. Research and Development Expenses Research and development expenses include the following: (i) research and development costs, which are expensed as incurred; (ii) acquired in-process research and development (“IPR&D”) expenses, which include the initial costs of externally developed IPR&D projects, acquired directly in a transaction other than a business combination, that do not have an alternative future use; and (iii) milestone payment obligations for externally developed IPR&D projects incurred prior to regulatory approval of the product in the in-licensed territory, which are accrued when the event requiring payment of the milestone occurs (milestone payment obligations incurred upon regulatory approval are recorded as other intangible assets). Collaborative Arrangements The Group enters into collaborative arrangements with collaboration partners that fall under the scope of Accounting Standards Codification (“ASC”) 808, Collaborative Arrangements (“ASC 808”). The Group records all expenditures for such collaborative arrangements in research and development expenses as incurred, including payments to third party vendors and reimbursements to collaboration partners, if any. Reimbursements from collaboration partners are recorded as reductions to research and development expenses and accrued when they can be contractually claimed. Government Grants Grants from governments are recognized at their fair values. Government grants that are received in advance are deferred and recognized in the consolidated statements of operations over the period necessary to match them with the costs that they are intended to compensate. Government grants in relation to the achievement of stages of research and development projects are recognized in the consolidated statements of operations when amounts have been received and all attached conditions have been met. Non-refundable grants received without any further obligations or conditions attached are recognized immediately in the consolidated statements of operations. Leases In an operating lease, a lessee obtains control of only the use of the underlying asset, but not the underlying asset itself. An operating lease is recognized as a right-of-use asset with a corresponding liability at the date which the leased asset is available for use by the Group. The Group recognizes an obligation to make lease payments equal to the present value of the lease payments over the lease term. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease liabilities include the net present value of the following lease payments: (i) fixed payments; (ii) variable lease payments that depend on an index or a rate; and (iii) payments of penalties for terminating the lease if the lease term reflects the lessee exercising that option, if any. Lease liabilities exclude the following payments that are generally accounted for separately: (i) non-lease components, such as maintenance and security service fees and value added tax, and (ii) any payments that a lessee makes before the lease commencement date. The lease payments are discounted using the interest rate implicit in the lease or if that rate cannot be determined, the lessee’s incremental borrowing rate being the rate that the lessee would have to pay to borrow the funds in its currency and jurisdiction necessary to obtain an asset of similar value, economic environment and terms and conditions. An asset representing the right to use the underlying asset during the lease term is recognized that consists of the initial measurement of the operating lease liability, any lease payments made to the lessor at or before the commencement date less any lease incentives received, any initial direct cost incurred by the Group and any restoration costs. After commencement of the operating lease, the Group recognizes lease expenses on a straight-line basis over the lease term. The right-of-use asset is subsequently measured at cost less accumulated amortization and any impairment provision. The amortization of the right-of-use asset represents the difference between the straight-line lease expense and the accretion of interest on the lease liability each period. The interest amount is used to accrete the lease liability and to amortize the right-of-use asset. There is no amount recorded as interest expense. Payments associated with short-term leases are recognized as lease expenses on a straight-line basis over the period of the leases. Subleases of right-of-use assets are accounted for similar to other leases. As an intermediate lessor, the Group separately accounts for the head-lease and sublease unless it is relieved of its primary obligation under the head-lease. Sublease income is recorded on a gross basis separate from the head-lease expenses. If the total remaining lease cost on the head-lease is more than the anticipated sublease income for the lease term, this is an indicator that the carrying amount of the right-of-use asset associated with the head-lease may not be recoverable, and the right-of-use asset will be assessed for impairment. Income Taxes The Group accounts for income taxes under the liability method. Under the liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and income tax bases of assets and liabilities and are measured using the income tax rates that will be in effect when the differences are expected to reverse. A valuation allowance is recorded when it is more likely than not that some of the net deferred income tax asset will not be realized. The Group accounts for an uncertain tax position in the consolidated financial statements only if it is more likely than not that the position is sustainable based on its technical merits and consideration of the relevant tax authority’s widely understood administrative practices and precedents. If the recognition threshold is met, the Group records the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement. The Group recognizes interest and penalties for income taxes, if any, under income tax payable on its consolidated balance sheets and under other expenses in its consolidated statements of operations. Losses per Share Basic losses per share is computed by dividing net loss attributable to the Company by the weighted average number of outstanding ordinary shares in issue during the year. Weighted average number of outstanding ordinary shares in issue excludes treasury shares. Diluted losses per share is computed by dividing net loss attributable to the Company by the weighted average number of outstanding ordinary shares in issue and dilutive ordinary share equivalents outstanding during the year. Dilutive ordinary share equivalents include ordinary shares and treasury shares issuable upon the exercise or settlement of share-based awards or warrants issued by the Company using the treasury stock method. The computation of diluted losses per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect. Segment Reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief executive officer who is the Group’s chief operating decision maker. The chief operating decision maker reviews the Group’s internal reporting in order to assess performance and allocate resources. Profit Appropriation and Statutory Reserves The Group’s subsidiaries and equity investees established in the PRC are required to make appropriations to certain non-distributable reserve funds. In accordance with the relevant laws and regulations established in the PRC, the Company’s subsidiaries registered as wholly-owned foreign enterprise have to make appropriations from their after-tax profits (as determined under generally accepted accounting principles in the PRC (“PRC GAAP”) to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. Appropriations to the enterprise expansion fund and staff bonus and welfare fund are made at the respective company’s discretion. For the Group’s equity investees, the amount of appropriations to these funds are made at the discretion of their respective boards. In addition, Chinese domestic companies must make appropriations from their after-tax profits as determined under PRC GAAP to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the respective company’s discretion. The use of the general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund is restricted to the offsetting of losses or increases to the registered capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of employees. All these reserves are not permitted to be transferred to the company as cash dividends, loans or advances, nor can they be distributed except under liquidation.

Fair Value Disclosures

Fair Value Disclosures	12 Months Ended
Fair Value Disclosures	Dec. 31, 2022
Fair Value Disclosures
Fair Value Disclosures	4. Fair Value Disclosures The following table presents the Group’s financial instruments by level within the fair value hierarchy under ASC 820, Fair Value Measurement: Fair Value Measurement Using Level 1 Level 2 Level 3 Total (in US$’000) As at December 31, 2021 Warrant (Note 19) — 2,452 — 2,452 Cash equivalents, short-term investments, accounts receivable, other receivables, accounts payable and other payables are carried at cost, which approximates fair value due to the short-term nature of these financial instruments, and are therefore excluded from the above table. Bank borrowings are floating rate instruments and carried at amortized cost, which approximates fair values, and are therefore excluded from the above table.

Cash and Cash Equivalents and S

Cash and Cash Equivalents and Short-term Investments	12 Months Ended
Cash and Cash Equivalents and Short-term Investments	Dec. 31, 2022
Cash and Cash Equivalents and Short-term Investments
Cash and Cash Equivalents and Short-term Investments	5. Cash and Cash Equivalents and Short-term Investments December 31, 2022 2021 (in US$’000) Cash and Cash Equivalents Cash at bank and on hand 178,326 104,620 Bank deposits maturing in three months or less 134,952 272,922 313,278 377,542 Short-term Investments Bank deposits maturing over three months (note) 317,718 634,158 630,996 1,011,700 Note: The maturities for short-term investments ranged from 91 to 99 days and 91 to 180 days for the years ended December 31, 2022 and 2021 respectively. Certain cash and bank balances denominated in RMB, US$ and UK Pound Sterling (“£”) were deposited with banks in the PRC. The conversion of these balances into foreign currencies is subject to the rules and regulations of foreign exchange control promulgated by the PRC government. Cash and cash equivalents and short-term investments were denominated in the following currencies: December 31, 2022 2021 (in US$’000) US$ 533,173 895,935 RMB 79,319 53,455 Hong Kong dollar (“HK$”) 16,721 60,535 £ 1,370 1,090 Euro 413 685 630,996 1,011,700

Accounts Receivable

Accounts Receivable	12 Months Ended
Accounts Receivable	Dec. 31, 2022
Accounts Receivable
Accounts Receivable	6. Accounts Receivable Accounts receivable from contracts with customers consisted of the following: December 31, 2022 2021 (in US$’000) Accounts receivable—third parties 94,531 82,434 Accounts receivable—related parties (Note 23(ii)) 3,517 1,166 Allowance for credit losses (60) (20) Accounts receivable, net 97,988 83,580 Substantially all accounts receivable are denominated in RMB, US$ and HK$ and are due within one year from the end of the reporting periods. The carrying values of accounts receivable approximate their fair values due to their short-term maturities. An aging analysis for accounts receivable—third parties based on the relevant invoice dates is as follows: December 31, 2022 2021 (in US$’000) Not later than 3 months 84,007 78,288 Between 3 months to 6 months 7,478 2,867 Between 6 months to 1 year 1,947 78 Later than 1 year 1,099 1,201 Accounts receivable—third parties 94,531 82,434 Movements on the allowance for credit losses: 2022 2021 2020 (in US$’000) As at January 1 20 95 16 Increase in allowance for credit losses 150 16 95 Decrease in allowance due to subsequent collection (107) (92) (18) Exchange difference (3) 1 2 As at December 31 60 20 95

Other receivables, prepayments

Other receivables, prepayments and deposits	12 Months Ended
Other receivables, prepayments and deposits	Dec. 31, 2022
Other receivables, prepayments and deposits
Other receivables, prepayments and deposits	7. Other receivables, prepayments and deposits Other receivables, prepayments and deposits consisted of the following: December 31, 2022 2021 (in US$’000) Dividend receivables (Note 22) 26,246 46,387 Prepayments 22,329 14,128 Value-added tax receivables 1,491 16,616 Deposits 1,214 1,255 Amounts due from related parties (Note 23(ii)) 998 1,149 Others 1,936 1,506 54,214 81,041 No allowance for credit losses has been made for other receivables, prepayments and deposits for the years ended December 31, 2022 and 2021.

Inventories

Inventories	12 Months Ended
Inventories	Dec. 31, 2022
Inventories
Inventories	8. Inventories Inventories, net of provision for excess and obsolete inventories, consisted of the following: December 31, 2022 2021 (in US$’000) Raw materials 27,392 15,837 Finished goods 29,298 19,918 56,690 35,755

Property, Plant and Equipment

Property, Plant and Equipment	12 Months Ended
Property, Plant and Equipment	Dec. 31, 2022
Property, Plant and Equipment
Property, Plant and Equipment	9. Property, Plant and Equipment Property, plant and equipment consisted of the following: Furniture and fixtures, other Plant equipment Leasehold and and motor Construction Buildings improvements equipment vehicles in progress Total (in US$’000) Cost As at January 1, 2022 2,432 17,828 5,987 27,957 19,970 74,174 Additions — 171 541 4,945 40,625 46,282 Disposals — (1,105) (2) (529) — (1,636) Transfers — 1,336 1,412 1,637 (4,385) — Exchange differences (199) (1,394) (484) (2,272) (1,660) (6,009) As at December 31, 2022 2,233 16,836 7,454 31,738 54,550 112,811 Accumulated depreciation As at January 1, 2022 1,788 11,571 2,352 17,188 — 32,899 Depreciation 116 3,741 590 3,880 — 8,327 Disposals — (1,018) (2) (505) — (1,525) Transfers — — (56) 56 — — Exchange differences (151) (1,012) (214) (1,460) — (2,837) As at December 31, 2022 1,753 13,282 2,670 19,159 — 36,864 Net book value As at December 31, 2022 480 3,554 4,784 12,579 54,550 75,947 Furniture and fixtures, other Plant equipment Leasehold and and motor Construction Buildings improvements equipment vehicles in progress Total (in US$’000) Cost As at January 1, 2021 2,372 16,346 5,643 23,040 3,050 50,451 Additions — 452 24 3,189 19,669 23,334 Disposals — (275) (19) (705) — (999) Transfers — 916 197 1,849 (2,962) — Exchange differences 60 389 142 584 213 1,388 As at December 31, 2021 2,432 17,828 5,987 27,957 19,970 74,174 Accumulated depreciation As at January 1, 2021 1,626 8,652 1,747 14,256 — 26,281 Depreciation 120 2,904 574 3,244 — 6,842 Disposals — (223) (18) (688) — (929) Exchange differences 42 238 49 376 — 705 As at December 31, 2021 1,788 11,571 2,352 17,188 — 32,899 Net book value As at December 31, 2021 644 6,257 3,635 10,769 19,970 41,275

Leases

Leases	12 Months Ended
Leases	Dec. 31, 2022
Leases
Leases	10. Leases Leases consisted of the following: December 31, 2022 2021 (in US$’000) Right‑of‑use assets Offices 6,634 10,605 Factories 387 702 Warehouses (note) 1,500 281 Others 201 291 Total right‑of‑use assets 8,722 11,879 Lease liabilities—current 3,708 4,917 Lease liabilities—non‑current 5,196 7,161 Total lease liabilities 8,904 12,078 Note: Includes US$1.5 million right-of-use asset for warehouses in Suzhou that is leased through June 2026 in which the contract has a termination option with 3-month advance notice. The termination option was not recognized as part of the right-of-use asset and lease liability as it is uncertain that the Group will exercise such option. Lease activities are summarized as follows: Year Ended December 31, 2022 2021 (in US$’000) Lease expenses: Short‑term leases with lease terms equal or less than 12 months 134 106 Leases with lease terms greater than 12 months 5,238 4,306 5,372 4,412 Cash paid on lease liabilities 5,212 4,954 Non-cash: Lease liabilities recognized from obtaining right-of-use assets 2,689 7,665 Non-cash: Lease liabilities changed in relation to modifications and terminations (499) (33) Lease contracts are typically within a period of 1 to 8 years. The weighted average remaining lease term and the weighted average discount rate as at December 31, 2022 was 3.24 years and 3.04% respectively. The weighted average remaining lease term and the weighted average discount rate as at December 31, 2021 was 3.38 years and 3.33% respectively. Future lease payments are as follows: December 31, 2022 (in US$’000) Lease payments: Not later than 1 year 3,908 Between 1 to 2 years 2,471 Between 2 to 3 years 1,177 Between 3 to 4 years 911 Between 4 to 5 years 680 Later than 5 years 115 Total lease payments 9,262 Less: Discount factor (358) Total lease liabilities 8,904

Investments in Equity Investees

Investments in Equity Investees	12 Months Ended
Investments in Equity Investees	Dec. 31, 2022
Investments in Equity Investees
Investments in Equity Investees	11. Investments in Equity Investees Investments in equity investees consisted of the following: December 31, 2022 2021 (in US$’000) SHPL 73,461 75,999 Other 316 480 73,777 76,479 The equity investees are private companies and there are no quoted market prices available for their shares. Summarized financial information for the significant equity investees SHPL and HBYS (sold in 2021) is as follows: (i) Summarized balance sheets SHPL December 31, 2022 2021 (in US$’000) Current assets 214,267 190,260 Non-current assets 80,062 91,605 Current liabilities (147,952) (128,993) Non-current liabilities (4,944) (7,131) Net assets 141,433 145,741 (ii) Summarized statements of operations SHPL HBYS (note (a)) Year Ended December 31, 2022 2021 2020 2021 (note (b)) 2020 (in US$’000) Revenue 370,600 332,648 276,354 209,528 232,368 Gross profit 281,113 255,089 204,191 111,066 116,804 Interest income 980 1,216 975 205 271 Finance cost — — — — (5) Profit before taxation 116,454 105,325 77,837 36,715 107,715 Income tax expense (note (c)) (16,738) (15,896) (10,833) (4,840) (16,494) Net income (note (d)) 99,716 89,429 67,004 31,875 91,221 Non-controlling interests — — — (36) 62 Net income attributable to the shareholders of equity investee 99,716 89,429 67,004 31,839 91,283 Notes: (a) In 2020, HBYS entered into an agreement with the government to return the land use right for a plot of land in Guangzhou to the government and recognized land compensation of RMB 569.2 million (approximately US$ 86.1 million). In June 2021, HBYS received a completion confirmation from the government and became entitled to a land compensation bonus of RMB 110.3 million (approximately US$ 17.0 million) and recorded a gain before tax of RMB 106.8 million (approximately US$ 16.4 million) after deducting costs of RMB 3.5 million (approximately US $0.6 million). (b) The summarized statement of operations for HBYS for the year ended December 31, 2021 includes the period when HBYS was the Group’s equity investee from January 1, 2021 to September 28, 2021, the completion date of the divestment. The Group has accounted for the investment in HBYS under the equity method up to September 28, 2021. (c) The main entity within the SHPL group has been granted the High and New Technology Enterprise (“HNTE”) status. Accordingly, the entity was eligible to use a preferential income tax rate of 15% for the years ended December 31, 2022, 2021 and 2020. (d) Net income is before elimination of unrealized profits on transactions with the Group. The amounts eliminated were approximately US $110,000 , US $36,000 and nil for the years ended December 31, 2022, 2021 and 2020 respectively. For the years ended December 31, 2022, 2021 and 2020, other equity investee had net income of approximately US$10,000 and US$41,000 and net losses of approximately US$194,000 respectively. In August 2022, the Group entered into an agreement with a third party (the “Buyer”) to sell its entire investment in other equity investee for cash consideration of RMB2.2 million (approximately US$324,000) with closing subject to regulatory approval in the PRC. (iii) Reconciliation of summarized financial information Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees is as follows: SHPL HBYS 2022 2021 2020 2021 2020 (in US$’000) Opening net assets after non-controlling interests as at January 1 145,741 152,714 146,759 119,424 44,541 Net income attributable to the shareholders of equity investee 99,716 89,429 67,004 31,839 91,283 Purchase of additional interests in a subsidiary of an equity investee (note) — — — — (347) Dividends declared (87,436) (99,744) (72,179) (106,159) (20,756) Other comprehensive (loss)/income (16,588) 3,342 11,130 1,387 4,703 Closing net assets after non-controlling interests as at December 31 141,433 145,741 152,714 46,491 119,424 Group’s share of net assets 70,717 72,871 76,357 23,246 59,712 Goodwill 2,872 3,128 3,051 — — Elimination of unrealized profits on downstream sales (128) — — — — Divestment (Note 22) — — — (23,246) — Carrying amount of investments as at December 31 73,461 75,999 79,408 — 59,712 Note: During the year ended December 31, 2020, HBYS acquired an additional 30% interest in a subsidiary and after the acquisition, it became a wholly owned subsidiary of HBYS. SHPL had the following capital commitments: December 31, 2022 (in US$’000) Property, plant and equipment Contracted but not provided for 1,307

Accounts Payable

Accounts Payable	12 Months Ended
Accounts Payable	Dec. 31, 2022
Accounts Payable
Accounts Payable	12. Accounts Payable December 31, 2022 2021 (in US$’000) Accounts payable—third parties 68,193 39,115 Accounts payable—non-controlling shareholders of subsidiaries (Note 23(iv)) 2,922 2,062 71,115 41,177 Substantially all accounts payable are denominated in RMB and US$ and due within one year from the end of the reporting period. The carrying values of accounts payable approximate their fair values due to their short-term maturities. An aging analysis based on the relevant invoice dates is as follows: December 31, 2022 2021 (in US$’000) Not later than 3 months 60,553 35,615 Between 3 months to 6 months 7,216 3,705 Between 6 months to 1 year 2,137 588 Later than 1 year 1,209 1,269 71,115 41,177

Other Payables, Accruals and Ad

Other Payables, Accruals and Advance Receipts	12 Months Ended
Other Payables, Accruals and Advance Receipts	Dec. 31, 2022
Other Payables, Accruals and Advance Receipts
Other Payables, Accruals and Advance Receipts	13. Other Payables, Accruals and Advance Receipts Other payables, accruals and advance receipts consisted of the following: December 31, 2022 2021 (in US$’000) Accrued research and development expenses 156,134 116,134 Accrued salaries and benefits 42,442 41,786 Accrued capital expenditures 21,390 11,343 Accrued administrative and other general expenses 14,491 15,836 Accrued selling and marketing expenses 11,564 8,412 Deposits 3,616 2,111 Amounts due to related parties (Note 23(ii)) 2,101 1,915 Deferred government grants 673 314 Others 12,210 12,988 264,621 210,839

Bank Borrowings

Bank Borrowings	12 Months Ended
Bank Borrowings	Dec. 31, 2022
Bank Borrowings
Bank Borrowings	14. Bank Borrowings Bank borrowings consisted of the following: December 31, 2022 2021 (in US$’000) Current — 26,905 Non-current 18,104 — The weighted average interest rate for outstanding bank borrowings for the years ended December 31, 2022 and 2021 was 1.73% per annum and 1.08% per annum respectively. The carrying amounts of the Group’s outstanding bank borrowings as at December 31, 2022 and 2021 were denominated in RMB and HK$ respectively. (i) 3-year term loan and revolving loan facilities and 1-year revolving loan facility In May 2019, the Group through its subsidiary, entered into a facility agreement with a bank for the provision of unsecured credit facilities in the aggregate amount of HK$400,000,000 (US$51,282,000). The 3-year credit facilities included (i) a HK$210,000,000 (US$26,923,000) term loan facility and (ii) a HK$190,000,000 (US$24,359,000) revolving loan facility, both with an interest rate at the Hong Kong Interbank Offered Rate (“HIBOR”) plus 0.85% per annum, and an upfront fee of HK$819,000 (US$105,000) on the term loan. These credit facilities were guaranteed by the Company. The term loan was drawn in October 2019 and was repaid in May 2022. The revolving loan facility also expired in May 2022. In May 2022, the Group through its subsidiary, entered into a 1-year revolving loan facility with the bank in the amount of HK$390,000,000 (US$50,000,000) with an interest rate at HIBOR plus 0.5% per annum. This credit facility is guaranteed by the Company. As at December 31, 2022, no amount was drawn from the revolving loan facility. (ii) 10-year fixed asset loan facility In October 2021, a subsidiary entered into a 10-year fixed asset loan facility agreement with a bank for the provision of a secured credit facility in the amount of RMB754,880,000 (US$108,393,000) with an annual interest rate at the 5-year China Loan Prime Rate less 0.8% (which was supplemented in June 2022) and interest payments commencing upon completion of the underlying construction in progress. This credit facility is guaranteed by the immediate holding company of the subsidiary and secured by the underlying leasehold land and buildings. As at December 31, 2022 and 2021, RMB126,083,000 (US$18,104,000) and nil were utilized from the fixed asset loan facility respectively, of which RMB769,000 (US$110,000) and nil were related to capitalized interest respectively. (iii) 2-year revolving loan facility In August 2020, the Group through its subsidiary, entered into a 2-year revolving loan facility with a bank in the amount of HK$117,000,000 (US$15,000,000) with an interest rate at HIBOR plus 4.5% per annum. This credit facility was guaranteed by the Company. The revolving loan facility expired in August 2022. The Group’s bank borrowings are repayable as from the dates indicated as follows: December 31, 2022 2021 (in US$’000) Not later than 1 year — 26,923 Between 1 to 3 years 360 — Between 3 to 4 years 839 — Between 4 to 5 years 1,079 — Later than 5 years 15,826 — 18,104 26,923 As at December 31, 2022 and 2021, the Group had unutilized bank borrowing facilities of US$140,289,000 and US$157,430,000 respectively.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2022
Commitments and Contingencies
Commitments and Contingencies	15. Commitments and Contingencies The Group had the following capital commitments: December 31, 2022 (in US$’000) Property, plant and equipment Contracted but not provided for 22,130 The Group does not have any other significant commitments or contingencies.

Ordinary Shares

Ordinary Shares	12 Months Ended
Ordinary Shares	Dec. 31, 2022
Ordinary Shares
Ordinary Shares	16. Ordinary Shares As at December 31, 2022, the Company is authorized to issue 1,500,000,000 ordinary shares. On April 14, 2021, the Company issued 16,393,445 ordinary shares to a third party for gross proceeds of US$100.0 million through a PIPE. Issuance costs totaled US$0.1 million. On June 30, 2021 and July 15, 2021, the Company issued an aggregate of 119,600,000 ordinary shares in a public offering on the HKEX with over-allotment option exercised in full for aggregate gross proceeds of US$614.9 million. Issuance costs totaled US$29.7 million. Each ordinary share is entitled to one vote. The holders of ordinary shares are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors of the Company.

Share-based Compensation

Share-based Compensation	12 Months Ended
Share-based Compensation	Dec. 31, 2022
Share-based Compensation
Share-based Compensation	17. Share-based Compensation (i) Share-based Compensation of the Company The Company conditionally adopted a share option scheme on June 4, 2005 (as amended on March 21, 2007) and such scheme has a term of 10 years. It expired in 2016 and no further share options can be granted. Another share option scheme was conditionally adopted on April 24, 2015 (as amended on April 27, 2020) (the “Hutchmed Share Option Scheme”). Pursuant to the Hutchmed Share Option Scheme, the Board of Directors of the Company may, at its discretion, offer any employees and directors (including Executive and Non-executive Directors but excluding Independent Non-executive Directors) of the Company, holding companies of the Company and any of their subsidiaries or affiliates, and subsidiaries or affiliates of the Company share options to subscribe for shares of the Company. As at December 31, 2022, the aggregate number of shares issuable under the Hutchmed Share Option Scheme was 48,611,458 ordinary shares and the aggregate number of shares issuable under the prior share option scheme which expired in 2016 was 660,570 ordinary shares. The Company will issue new shares to satisfy share option exercises. Additionally, the number of shares authorized but unissued was 635,224,660 ordinary shares. Share options granted are generally subject to a four-year vesting schedule, depending on the nature and the purpose of the grant. Share options subject to the four-year vesting schedule, in general, vest 25% upon the first anniversary of the vesting commencement date as defined in the grant letter, and 25% every subsequent year. However, certain share option grants may have a different vesting schedule as approved by the Board of Directors of the Company. No outstanding share options will be exercisable or subject to vesting after the expiry of a maximum of eight A summary of the Company’s share option activity and related information is as follows: Weighted average Number of Weighted average remaining Aggregate share exercise price in contractual life intrinsic value options US$ per share (years) (in US$’000) Outstanding at January 1, 2020 19,432,560 4.48 6.67 24,316 Granted 15,437,080 4.66 Exercised (480,780) 1.23 Cancelled (4,486,200) 5.02 Expired (741,670) 6.46 Outstanding at December 31, 2020 29,160,990 4.49 7.21 53,990 Granted 10,174,840 5.96 Exercised (815,190) 3.01 Cancelled (1,287,650) 5.50 Expired (42,400) 5.52 Outstanding at December 31, 2021 37,190,590 4.88 7.04 82,377 Granted (note) 7,680,820 2.26 Exercised (244,490) 1.98 Cancelled (3,849,905) 5.19 Expired (1,255,620) 5.66 Outstanding at December 31, 2022 39,521,395 4.34 6.55 11,525 Vested and exercisable at December 31, 2021 16,077,770 4.24 4.91 46,491 Vested and exercisable at December 31, 2022 21,113,285 4.57 4.80 6,288 Note: Includes 861,220 share options (represented by 172,244 ADS) granted to an executive director in May 2022 where the number of share options exercisable is subject to a performance target based on a market condition covering the 3-year period from 2022 to 2024 which has been reflected in estimating the grant date fair value. The grant date fair value of such awards is US$0.24 per share using the Polynomial model. Vesting of such award will occur in March 2025. In estimating the fair value of share options granted, the following assumptions were used in the Polynomial model for awards granted in the periods indicated: Year Ended December 31, 2022 2021 2020 Weighted average grant date fair value of share options (in US$ per share) 0.85 2.24 1.76 Significant inputs into the valuation model (weighted average): Exercise price (in US$ per share) 2.26 5.96 4.66 Share price at effective date of grant (in US$ per share) 2.22 5.91 4.66 Expected volatility (note (a)) 46.7 % 41.1 % 42.6 % Risk-free interest rate (note (b)) 2.98 % 1.62 % 0.59 % Contractual life of share options (in years) 10 10 10 Expected dividend yield (note (c)) 0 % 0 % 0 % Notes: (a) The Company calculated its expected volatility with reference to the historical volatility prior to the issuances of share options. (b) For share options exercisable into ADS, the risk-free interest rates reference the U.S. Treasury yield curves because the Company’s ADS are currently listed on the NASDAQ and denominated in US$. For share options exercisable into ordinary shares, the risk-free interest rates reference the sovereign yield of the United Kingdom because the Company’s ordinary shares are currently listed on AIM and denominated in £. (c) The Company has not declared or paid any dividends and does not currently expect to do so prior to the exercise of the granted share options, and therefore uses an expected dividend yield of zero in the Polynomial model. The Company will issue new shares to satisfy share option exercises. The following table summarizes the Company’s share option exercises: Year Ended December 31, 2022 2021 2020 (in US$’000) Cash received from share option exercises 174 2,452 593 Total intrinsic value of share option exercises 92 2,999 2,475 The Group recognizes compensation expense on a graded vesting approach over the requisite service period. The following table presents share-based compensation expense included in the Group’s consolidated statements of operations: Year Ended December 31, 2022 2021 2020 (in US$’000) Research and development expenses 4,803 8,460 4,061 Selling and administrative expenses 1,803 7,783 4,586 Cost of revenues 130 122 90 6,736 16,365 8,737 As at December 31, 2022, the total unrecognized compensation cost was US$10,907,000, and will be recognized on a graded vesting approach over the weighted average remaining service period of 2.63 years. (ii) LTIP The Company grants awards under the LTIP to participating directors and employees, giving them a conditional right to receive ordinary shares of the Company or the equivalent ADS (collectively the “Awarded Shares”) to be purchased by the Trustee up to a cash amount. Vesting will depend upon continued employment of the award holder with the Group and will otherwise be at the discretion of the Board of Directors of the Company. Additionally, some awards are subject to change based on annual performance targets prior to their determination date. LTIP awards prior to the determination date Performance targets vary by award, and may include targets for shareholder returns, financings, revenues, net profit after taxes and the achievement of clinical and regulatory milestones. As the extent of achievement of the performance targets is uncertain prior to the determination date, a probability based on management’s assessment on the achievement of the performance target has been assigned to calculate the amount to be recognized as an expense over the requisite period with a corresponding entry to liability. LTIP awards after the determination date Upon the determination date, the Company will pay a determined monetary amount, up to the maximum cash amount based on the actual achievement of the performance target specified in the award, to the Trustee to purchase the Awarded Shares. Any cumulative compensation expense previously recognized as a liability will be transferred to additional paid-in capital. If the performance target is not achieved, no Awarded Shares of the Company will be purchased and the amount previously recorded in the liability will be reversed through share-based compensation expense. Granted awards under the LTIP are as follows: Maximum cash amount Covered Performance target Grant date (in US$ millions) financial years determination date April 20, 2020 5.3 2019 note (a) April 20, 2020 37.4 2020 note (b) April 20, 2020 1.9 note (c) note (c) April 20, 2020 0.2 note (d) note (d) August 12, 2020 2.1 2020 note (b) August 12, 2020 0.3 note (c) note (c) March 26, 2021 57.3 2021 note (b) September 1, 2021 7.3 2021 note (b) September 1, 2021 0.5 note (c) note (c) October 20, 2021 1.7 note (c) note (c) December 14, 2021 0.1 note (c) note (c) December 14, 2021 0.1 note (d) note (d) May 23, 2022 60.4 2022 note (b) September 13, 2022 3.8 2022 note (b) September 13, 2022 1.7 note (c) note (c) Notes: (a) This award does not stipulate performance targets and vesting occurs two business days after the announcement of the Group’s annual results for the financial year falling two years after the covered financial year to which the LTIP award relates. (b) The annual performance target determination date is the date of the announcement of the Group’s annual results for the covered financial year and vesting occurs two business days after the announcement of the Group’ s annual results for the financial year falling two years after the covered financial year to which the LTIP award relates . (c) This award does not stipulate performance targets and is subject to a vesting schedule of 25% on each of the first , second , third and fourth anniversaries of the date of grant . (d) This award does not stipulate performance targets and will be vested on the first anniversary of the date of grant. The Trustee has been set up solely for the purpose of purchasing and holding the Awarded Shares during the vesting period on behalf of the Company using funds provided by the Company. On the determination date, if any, the Company will determine the cash amount, based on the actual achievement of each annual performance target, for the Trustee to purchase the Awarded Shares. The Awarded Shares will then be held by the Trustee until they are vested. The Trustee’s assets include treasury shares and funds for additional treasury shares, trustee fees and expenses. The number of treasury shares (in the form of ordinary shares or ADS of the Company) held by the Trustee were as follows: Number of Cost treasury shares (in US$’000) As at January 1, 2020 941,310 6,079 Purchased 3,281,920 12,904 Vested (712,555) (4,828) As at December 31, 2020 3,510,675 14,155 Purchased 4,907,045 27,309 Vested (278,545) (1,450) As at December 31, 2021 8,139,175 40,014 Purchased 14,028,465 48,084 Vested (2,566,265) (12,034) As at December 31, 2022 19,601,375 76,064 Based on the estimated achievement of performance conditions for 2022 financial year LTIP awards, the determined monetary amount was US$17,429,000 which is recognized to share-based compensation expense over the requisite vesting period to March 2025. For the years ended December 31, 2022, 2021 and 2020, US$19,031,000, US$6,618,000 and US$7,038,000 of the LTIP awards were forfeited respectively based on the determined or estimated monetary amount as at the forfeiture date. The following table presents the share-based compensation expenses recognized under the LTIP awards: Year Ended December 31, 2022 2021 2020 (in US$’000) Research and development expenses 16,101 16,880 7,252 Selling and administrative expenses 7,376 8,451 3,552 Cost of revenues 373 294 101 23,850 25,625 10,905 Recorded with a corresponding credit to: Liability 6,216 14,263 7,778 Additional paid-in capital 17,634 11,362 3,127 23,850 25,625 10,905 For the years ended December 31, 2022, 2021 and 2020, US$15,351,000, US$8,516,000 and US$4,092,000 were reclassified from liability to additional paid-in capital respectively upon LTIP awards reaching the determination date. As at December 31, 2022 and 2021, US$3,701,000 and US$12,836,000 were recorded as liabilities respectively for LTIP awards prior to the determination date. As at December 31, 2022, the total unrecognized compensation cost was approximately US$34,668,000, which considers expected performance targets and the amounts expected to vest, and will be recognized over the requisite periods.

Revenues

Revenues	12 Months Ended
Revenues	Dec. 31, 2022
Revenues
Revenues	18. Revenues The following table presents disaggregated revenue, with sales of goods recognized at a point-in-time and provision of services recognized over time: Year Ended December 31, 2022 Oncology/ Other Immunology Ventures Total (in US$’000) Goods—Marketed Products 57,057 — 57,057 Goods—Distribution — 262,565 262,565 Services —Commercialization—Marketed Products 41,275 — 41,275 —Collaboration Research and Development 23,741 — 23,741 —Research and Development 507 — 507 Royalties 26,310 — 26,310 Licensing 14,954 — 14,954 163,844 262,565 426,409 Third parties 163,337 257,272 420,609 Related parties (Note 23(i)) 507 5,293 5,800 163,844 262,565 426,409 Year Ended December 31, 2021 Oncology/ Other Immunology Ventures Total (in US$’000) Goods—Marketed Products 33,937 — 33,937 Goods—Distribution — 236,518 236,518 Services —Commercialization—Marketed Products 27,428 — 27,428 —Collaboration Research and Development 18,995 — 18,995 —Research and Development 525 — 525 Royalties 15,064 — 15,064 Licensing 23,661 — 23,661 119,610 236,518 356,128 Third parties 119,085 232,262 351,347 Related parties (Note 23(i)) 525 4,256 4,781 119,610 236,518 356,128 Year Ended December 31, 2020 Oncology/ Other Immunology Ventures Total (in US$’000) Goods—Marketed Products 11,329 — 11,329 Goods—Distribution — 197,761 197,761 Services —Commercialization—Marketed Products 3,734 — 3,734 —Collaboration Research and Development 9,771 — 9,771 —Research and Development 491 — 491 Royalties 4,890 — 4,890 30,215 197,761 227,976 Third parties 29,724 192,277 222,001 Related parties (Note 23(i)) 491 5,484 5,975 30,215 197,761 227,976 The following table presents liability balances from contracts with customers: December 31, 2022 2021 (in US$’000) Deferred revenue Current—Oncology/Immunology segment (note (a)) 11,817 11,078 Current—Other Ventures segment (note (b)) 1,530 1,196 13,347 12,274 Non-current—Oncology/Immunology segment (note (a)) 190 878 Total deferred revenue (note (c) and (d)) 13,537 13,152 Notes: (a) Oncology /Immunology segment deferred revenue relates to invoiced amounts for royalties where the customer has not yet completed the in-market sale, unamortized upfront and milestone payments and advance consideration received for cost reimbursements which are attributed to research and development services that have not yet been rendered as at the reporting date. (b) Other Ventures segment deferred revenue relates to payments in advance from customers for goods that have not been transferred and services that have not been rendered to the customer as at the reporting date. (c) Estimated deferred revenue to be recognized over time as from the date indicated is as follows: December 31, 2022 2021 (in US$’000) Not later than 1 year 13,347 12,274 Between 1 to 2 years 150 476 Between 2 to 3 years 40 255 Between 3 to 4 years — 147 13,537 13,152 (d) As at January 1, 2022, deferred revenue was US$13.2 million, of which US$11.8 million was recognized during the year ended December 31, 2022. License and collaboration agreement with Eli Lilly On October 8, 2013, the Group entered into a licensing, co-development and commercialization agreement in China with Eli Lilly and Company (“Lilly”) relating to Elunate (“Lilly Agreement”), also known as fruquintinib, a targeted oncology therapy for the treatment of various types of solid tumors. Under the terms of the Lilly Agreement, the Group is entitled to receive a series of payments up to US$86.5 million, including upfront payments and development and regulatory approval milestones. Development costs after the first development milestone are shared between the Group and Lilly. Elunate was successfully commercialized in China in November 2018, and the Group receives tiered royalties in the range of 15% to 20% on all sales in China. In December 2018, the Group entered into various amendments to the Lilly Agreement (the “2018 Amendment”). Under the terms of the 2018 Amendment, the Group is entitled to determine and conduct future life cycle indications (“LCI”) development of Elunate in China beyond the three initial indications specified in the Lilly Agreement and will be responsible for all associated development costs. In return, the Group will receive additional regulatory approval milestones of US$20 million for each LCI approved, for up to three LCI or US$60 million in aggregate, and will increase tiered royalties to a range of 15% to 29% on all Elunate sales in China upon the commercial launch of the first LCI. Additionally, through the 2018 Amendment, Lilly has provided consent, and freedom to operate, for the Group to enter into joint development collaborations with certain third-party pharmaceutical companies to explore combination treatments of Elunate and various immunotherapy agents. The 2018 Amendment also provided the Group rights to promote Elunate in provinces that represent 30% to 40% of the sales of Elunate in China upon the occurrence of certain commercial milestones by Lilly. Such rights were further amended below. In July 2020, the Group entered into an amendment to the Lilly Agreement (the “2020 Amendment”) relating to the expansion of the Group’s role in the commercialization of Elunate across all of China. Under the terms of the 2020 Amendment, the Group is responsible for providing promotion and marketing services, including the development and execution of all on-the-ground medical detailing, promotion and local and regional marketing activities, in return for service fees on sales of Elunate made by Lilly. In October 2020, the Group commenced such promotion and marketing services. In addition, development and regulatory approval milestones for an initial indication under the Lilly Agreement were increased by US$10 million in lieu of cost reimbursement. Upfront and cumulative milestone payments according to the Lilly Agreement received up to December 31, 2022 are summarized as follows: (in US$’000) Upfront payment 6,500 Development milestone payments achieved 40,000 The Lilly Agreement has the following performance obligations: (1) the license for the commercialization rights to Elunate and (2) the research and development services for the specified indications. The transaction price includes the upfront payment, research and development cost reimbursements, milestone payments and sales-based royalties. Milestone payments were not included in the transaction price until it became probable that a significant reversal of revenue would not occur, which is generally when the specified milestone is achieved. The allocation of the transaction price to each performance obligation was based on the relative standalone selling prices of each performance obligation determined at the inception of the contract. Based on this estimation, proportionate amounts of transaction price to be allocated to the license to Elunate and the research and development services were 90% and 10% respectively. Control of the license to Elunate transferred at the inception date of the agreement and consequently, amounts allocated to this performance obligation were recognized at inception. Conversely, research and development services for each specified indication are performed over time and amounts allocated are recognized over time using the prior and estimated future development costs for Elunate as a measure of progress. Royalties are recognized as future sales occur as they meet the requirements for the sales-usage based royalty exception. The 2018 Amendment is a separate contract as it added distinct research and development services for the LCIs to the Lilly Agreement. The 2020 Amendment related to the promotion and marketing services is a separate contract as it added distinct services to the Lilly Agreement. Such promotion and marketing services are recognized over time based on amounts that can be invoiced to Lilly. The 2020 Amendment related to the additional development and regulatory approval milestone amounts is a modification as it only affected the transaction price of research and development services for a specific indication under the Lilly Agreement, and therefore, such additional milestone amounts will be included in the transaction price accounted under the Lilly Agreement once the specified milestones are achieved. Revenue recognized under the Lilly Agreement and subsequent amendments is as follows: Year Ended December 31, 2022 2021 2020 (in US$’000) Goods—Marketed Products 14,407 15,792 11,329 Services—Commercialization—Marketed Products 41,275 27,428 3,734 —Collaboration Research and Development 8,054 4,491 1,991 Royalties 13,954 10,292 4,890 77,690 58,003 21,944 License and collaboration agreement with AstraZeneca On December 21, 2011, the Group and AstraZeneca AB (publ) (“AZ”) entered into a global licensing, co-development, and commercialization agreement for Orpathys (“AZ Agreement”), also known as savolitinib, a novel targeted therapy and a highly selective inhibitor of the c-Met receptor tyrosine kinase for the treatment of cancer. Under the terms of the AZ Agreement, the Group is entitled to receive a series of payments up to US$140 million, including upfront payments and development and first-sale milestones. Additionally, the AZ Agreement contains possible significant future commercial sale milestones. Development costs for Orpathys in China will be shared between the Group and AZ, with the Group continuing to lead the development in China. AZ will lead and pay for the development of Orpathys for the rest of the world. Orpathys was successfully commercialized in China in July 2021, and the Group receives fixed royalties of 30% based on all sales in China. Should Orpathys be successfully commercialized outside China, the Group would receive tiered royalties from 9% to 13% on all sales outside of China. In August 2016 (as amended in December 2020), the Group entered into an amendment to the AZ Agreement whereby the Group shall pay the first approximately US$50 million of phase III clinical trial costs related to developing Orpathys for renal cell carcinoma (“RCC”), and remaining costs will be shared between the Group and AZ. Subject to approval of Orpathys in RCC, the Group would receive additional tiered royalties on all sales outside of China, with the incremental royalty rates determined based on actual sharing of development costs. In November 2021, the Group entered into an additional amendment which revised the sharing between the Group and AZ of development costs for Orpathys in China for non-small cell lung cancer, as well as adding potential development milestones. Upfront and cumulative milestone payments according to the AZ Agreement received up to December 31, 2022 are summarized as follows: (in US$’000) Upfront payment 20,000 Development milestone payments achieved 40,000 First-sale milestone payment achieved 25,000 The AZ Agreement has the following performance obligations: (1) the license for the commercialization rights to Orpathys and (2) the research and development services for the specified indications. The transaction price includes the upfront payment, research and development cost reimbursements, milestone payments and sales-based royalties. Milestone payments were not included in the transaction price until it became probable that a significant reversal of revenue would not occur, which is generally when the specified milestone is achieved. The allocation of the transaction price to each performance obligation was based on the relative standalone selling prices of each performance obligation determined at the inception of the contract. Based on this estimation, proportionate amounts of transaction price to be allocated to the license to Orpathys and the research and development services were 95% and 5% respectively. Control of the license to Orpathys transferred at the inception date of the agreement and consequently, amounts allocated to this performance obligation were recognized at inception. Conversely, research and development services for each specified indication are performed over time and amounts allocated are recognized over time using the prior and estimated future development costs for Orpathys as a measure of progress. Revenue recognized under the AZ Agreement and subsequent amendments is as follows: Year Ended December 31, 2022 2021 2020 (in US$’000) Goods—Marketed Products 9,904 6,509 — Services—Collaboration Research and Development 14,467 14,113 7,780 Royalties 12,356 4,772 — Licensing 14,954 23,661 — 51,681 49,055 7,780

In-Licensing arrangement

In-Licensing arrangement	12 Months Ended
In-Licensing arrangement	Dec. 31, 2022
In-Licensing arrangement
In-Licensing arrangement	19. In-Licensing arrangement On August 7, 2021, the Group and Epizyme, Inc. (“Epizyme”) entered into a license agreement (the “In-license Agreement”) for tazemetostat, a novel inhibitor of EZH2 that is approved by the U.S. Food and Drug Administration for the treatment of certain patients with epithelioid sarcoma and follicular lymphoma. The Group will be responsible for the development and commercialization of tazemetostat in the PRC, Hong Kong, Macau and Taiwan (the “Territory”) and also holds rights to manufacture tazemetostat for the Territory. The Group also received a 4-year warrant, exercisable up to August 7, 2025, to purchase up to 5,653,000 shares of Epizyme common stock for an exercise price of US$11.50 per share (“Warrant Exercise Price”). Under the terms of the In-license Agreement and warrant, the Group paid Epizyme a US$25 million upfront payment and is obligated for a series of success-based payments up to US$110 million in development and regulatory milestones and up to US$175 million in sales milestones. Success-based payments are recognized when the related milestone is achieved. After tazemetostat is commercialized in the Territory, the Group will incur tiered royalties based on net sales. For the year ended December 31, 2022, US$5.0 million development milestone was paid and expensed to research and development expenses as in-process research and development. The US$25 million upfront payment was first allocated to the warrant for its initial fair value of US$15 million, and the remainder was allocated to the rights to tazemetostat which were expensed to research and development expense as in-process research and development. The warrant was recorded as a financial asset at fair value with changes to fair value recognized to the consolidated statements of operations. On August 12, 2022, a third party announced that it has acquired all outstanding shares of Epizyme under a definitive merger agreement. Consequently, the warrant was deemed expired under the terms of the In-license Agreement and warrant. For the years ended December 31, 2022 and 2021, fair value losses of US$2.5 million and US$12.5 million were recognized to other expense in the consolidated statements of operations respectively.

Research and Development Expens

Research and Development Expenses	12 Months Ended
Research and Development Expenses	Dec. 31, 2022
Research and Development Expenses
Research and Development Expenses	20. Research and Development Expenses Research and development expenses are summarized as follows: Year Ended December 31, 2022 2021 2020 (in US$’000) Clinical trial related costs 255,935 190,051 105,869 Personnel compensation and related costs 119,306 91,639 63,542 Other research and development expenses 11,652 17,396 5,365 386,893 299,086 174,776 The Group has entered into multiple 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, 2022, 2021 and 2020, the Group has incurred research and development expenses of US$14,654,000, US$18,408,000 and US$8,291,000 respectively, related to such collaborative arrangements.

Government Grants

Government Grants	12 Months Ended
Government Grants	Dec. 31, 2022
Government Grants
Government Grants	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 PRC government authority. They are refundable to the government if the conditions, if any, are not met. Government grants in the Other Ventures segment are primarily given to promote local initiatives. These government grants may be subject to ongoing reporting and monitoring by the government over the period of the grant. Government grants, which are deferred and recognized in the consolidated statements of operations over the period necessary to match them with the costs that they are intended to compensate, are recognized in other payables, accruals and advance receipts (Note 13) and other non-current liabilities. For the years ended December 31, 2022, 2021 and 2020, the Group received government grants of US$8,474,000, US$9,095,000 and US$4,724,000 respectively. Government grants were recognized in the consolidated statements of operations as follows: Year Ended December 31, 2022 2021 2020 (in US$’000) Research and development expenses 4,556 15,515 1,607 Other income 1,434 318 539 5,990 15,833 2,146

Gain on divestment of an equity

Gain on divestment of an equity investee	12 Months Ended
Gain on divestment of an equity investee	Dec. 31, 2022
Gain on divestment of an equity investee
Gain on divestment of an equity investee	22. Gain on divestment of an equity investee In March 2021, the Group entered into a sale and purchase agreement (the “SPA”) with a third party to sell its entire investment in HBYS with closing subject to regulatory approval in the PRC. On September 28, 2021, the Group completed the divestment for cash consideration of US$159.1 million. On May 13, 2021 and September 23, 2021, HBYS had declared dividends to shareholders of US$46.5 million and US$59.7 million respectively which were related to prior year undistributed profits and distributions of a land bonus payment. Based on the SPA, the Group is entitled to a portion of such dividends and the third party will settle these amounts, net of taxes, after HBYS completes the distribution. As at December 31, 2022 and 2021, US$26.2 million and US$46.4 million of dividend receivables, net of taxes, from the third party was recorded respectively in other receivables, prepayments and deposits (Note 7). In addition, the Group and Hutchison Whampoa Enterprises Limited, an affiliate of CK Hutchison Holdings Limited (“CK Hutchison”), entered into a license agreement on June 15, 2021, conditional upon the completion of the divestment, to grant a continuing right to use the “Hutchison Whampoa” brand by HBYS for 10 years at HK$12 million (approximately US$1.5 million) per year with aggregate amounts not to exceed HK$120 million (approximately US$15.4 million). On September 28, 2021, the Group recorded the present value of future branding liability payments of US$12.7 million. As at December 31, 2022 and 2021, US$1.5 million was included in amounts due to related parties (Note 23(ii)) and US$8.7 million and US$9.8 million were included in other non-current liabilities respectively. The gain on divestment of an equity investee was recognized in the consolidated statements of operations as follows: Year Ended December 31, 2021 (in US$’000) Proceeds 159,118 Dividend receivables–third party (Note 7) 46,387 205,505 Less: Group’s share of net assets of HBYS (Note 11(iii)) (23,246) Dividend receivables–HBYS (52,887) Withholding tax liability on dividend receivables–HBYS 2,644 Branding liability (12,721) Accumulated other comprehensive income and reserves 1,911 Transaction costs and others 104 Gain on divestment of an equity investee 121,310 Less: Capital gain tax (14,373) Less: Gain on divestment of an equity investee attributable to non-controlling interests (24,010) Gain on divestment of an equity investee attributable to the Group 82,927

Significant Transactions with R

Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries	12 Months Ended
	Dec. 31, 2022
Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries
Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries	23. Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries The Group has the following significant transactions with related parties and non-controlling shareholders of subsidiaries, which were carried out in the normal course of business at terms determined and agreed by the relevant parties: (i) Transactions with related parties: Year Ended December 31, 2022 2021 2020 (in US$’000) Sales to: Indirect subsidiaries of CK Hutchison 3,610 4,256 5,484 An equity investee 1,683 — — 5,293 4,256 5,484 Revenue from research and development services from: An equity investee 507 525 491 Purchases from: Equity investees 4,231 3,770 3,347 Rendering of marketing services from: Indirect subsidiaries of CK Hutchison 227 350 332 An equity investee 127 — — 354 350 332 Rendering of management services from: An indirect subsidiary of CK Hutchison 980 971 955 Entered brand license agreement with: An indirect subsidiary of CK Hutchison (note (a)) — 12,721 — (ii) Balances with related parties included in: December 31, 2022 2021 (in US$’000) Accounts receivable—related parties Indirect subsidiaries of CK Hutchison (note (b)) 1,319 1,166 An equity investee (note (b)) 2,198 — 3,517 1,166 Other receivables, prepayments and deposits An equity investee (note (b)) 998 1,149 Other payables, accruals and advance receipts Indirect subsidiaries of CK Hutchison (note (c) and (e)) 1,953 1,915 An equity investee (note (b) and (d)) 148 — 2,101 1,915 Other non-current liabilities An equity investee (note (d)) 755 736 An indirect subsidiary of CK Hutchison (note (e)) 8,716 9,766 9,471 10,502 Notes: (a) The branding rights for HBYS from an indirect subsidiary of CK Hutchison were recognized in the consolidated statements of operations through the gain on divestment of an equity investee (Note 22). For the years ended December 31, 2022 and 2021, the Group paid US $1,538,000 for each of the two years. (b) Balances with related parties are unsecured, repayable on demand and interest-free. The carrying values of balances with related parties approximate their fair values due to their short-term maturities. (c) Amounts due to indirect subsidiaries of CK Hutchison are unsecured, repayable on demand and interest-bearing if not settled within one month . (d) Other deferred income represents amounts recognized from granting of commercial, promotion and marketing rights. (e) As at December 31, 2022 and 2021, a branding liability payable of US $1,538,000 was included in amounts due to related parties under other payables, accruals and advance receipts. As at December 31, 2022 and 2021, US $8,716,000 and US $9,766,000 of the branding liability payable was included in other non-current liabilities. (iii) Transactions with non-controlling shareholders of subsidiaries: Year Ended December 31, 2022 2021 2020 (in US$’000) Sales 47,611 41,974 36,500 Purchases 7,936 10,660 13,936 Dividends declared 25,600 9,894 1,462 (iv) Balances with non-controlling shareholders of subsidiaries included in: December 31, 2022 2021 (in US$’000) Accounts receivable 11,139 8,436 Accounts payable 2,922 2,062

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Dec. 31, 2022
Income Taxes
Income Taxes	24. Income Taxes (i) Income tax (benefit)/expense Year Ended December 31, 2022 2021 2020 (in US$’000) Current tax HK (note (a)) 301 310 457 PRC (note (b) and (c)) 2,580 15,909 872 U.S. and others (note (d)) 399 417 219 Total current tax 3,280 16,636 1,548 Deferred income tax (benefit)/expense (3,563) (4,718) 3,281 Income tax (benefit)/ expense (283) 11,918 4,829 Notes: (a) The Company, three subsidiaries incorporated in the British Virgin Islands and its Hong Kong subsidiaries are subject to Hong Kong profits tax. Under the Hong Kong two-tiered profits tax rates regime, the first HK $2.0 million (US $0.3 million) of assessable profits of qualifying corporations will be taxed at 8.25% , with the remaining assessable profits taxed at 16.5% . Hong Kong profits tax has been provided for at the relevant rates on the estimated assessable profits less estimated available tax losses, if any, of these entities as applicable. (b) Taxation in the PRC has been provided for at the applicable rate on the estimated assessable profits less estimated available tax losses, if any, in each entity . Under the PRC Enterprise Income Tax Law (the “EIT Law”), the standard enterprise income tax rate is 25% . In addition, the EIT Law provides for a preferential tax rate of 15% for companies which qualify as HNTE. HUTCHMED Limited and its wholly-owned subsidiary HUTCHMED (Suzhou) Limited qualify as a HNTE up to December 31, 2022 and 2023 respectively. Pursuant to the EIT law, a 10% withholding tax is levied on dividends paid by PRC companies to their foreign investors. A lower withholding tax rate of 5% is applicable under the China-HK Tax Arrangement if direct foreign investors with at least 25% equity interest in the PRC companies are Hong Kong tax residents, and meet the conditions or requirements pursuant to the relevant PRC tax regulations regarding beneficial ownership. Since the equity holders of the equity investees of the Company are Hong Kong incorporated companies and Hong Kong tax residents, and meet the aforesaid conditions or requirements, the Company has used 5% to provide for deferred tax liabilities on retained earnings which are anticipated to be distributed. As at December 31, 2022, 2021 and 2020, the amounts accrued in deferred tax liabilities relating to withholding tax on dividends were determined on the basis that 100% of the distributable reserves of the equity investees operating in the PRC will be distributed as dividends. Pursuant to PRC Bulletin on Issues of Enterprise Income Tax and Indirect Transfers of Assets by Non-PRC Resident Enterprises, an indirect transfer of a PRC resident enterprise by a non-PRC resident enterprise, via the transfer of an offshore intermediate holding company, shall be subject to PRC withholding tax under certain conditions. (c) Current tax in the PRC for the year ended December 31, 2021 includes US$ 14.4 million arising from the indirect disposal of HBYS (Note 22), calculated at 10% of the excess of the disposal proceeds over the cost of acquiring the equity investment in HBYS. (d) The Company’s subsidiary in the U.S. with operations primarily in New Jersey is subject to U.S. taxes, primarily federal and state taxes, which have been provided for at approximately 21% (federal) and 0% to 11.5% (state tax) on the estimated assessable profit over the reporting years. Certain income receivable by the Company is subject to U.S. withholding tax of 30%. Two of the Group’s subsidiaries are subject to corporate tax in the UK and EU countries at 19% and 15% to 25%, respectively, on the estimated assessable profits in relation to their presence in these countries. The reconciliation of the Group’s reported income tax expense to the theoretical tax amount that would arise using the tax rates of the Company against the Group’s loss before income taxes and equity in earnings of equity investees is as follows: Year Ended December 31, 2022 2021 2020 (in US$’000) Loss before income taxes and equity in earnings of equity investees (410,422) (215,740) (189,734) Tax calculated at the statutory tax rate of the Company (67,720) (35,597) (31,306) Tax effects of: Different tax rates applicable in different jurisdictions 6,316 136 4,025 Tax valuation allowance 93,243 63,975 46,321 Preferential tax rate difference (171) (148) (154) Preferential tax deduction and credits (40,791) (29,838) (18,814) Expenses not deductible for tax purposes 8,886 8,684 3,476 Withholding tax on undistributed earnings of PRC entities 2,492 3,153 3,962 Others (2,538) 1,553 (2,681) Income tax (benefit)/expense (283) 11,918 4,829 (ii) Deferred tax assets and liabilities The significant components of deferred tax assets and liabilities are as follows: December 31, 2022 2021 (in US$’000) Deferred tax assets Cumulative tax losses 264,751 186,832 Others 15,254 12,269 Total deferred tax assets 280,005 199,101 Less: Valuation allowance (264,639) (189,700) Deferred tax assets 15,366 9,401 Deferred tax liabilities Undistributed earnings from PRC entities 2,686 2,720 Others 24 45 Deferred tax liabilities 2,710 2,765 The movements in deferred tax assets and liabilities are as follows: 2022 2021 2020 (in US$’000) As at January 1 6,636 (3,548) (2,343) Utilization of previously recognized withholding tax on undistributed earnings 2,186 5,148 2,323 (Charged)/Credited to the consolidated statements of operations Withholding tax on undistributed earnings of PRC entities (2,492) (3,153) (3,962) Deferred tax on amortization of intangible assets 19 19 18 Deferred tax on temporary differences, tax loss carried forward and research tax credits 6,036 7,852 663 Divestment of an equity investee — 370 — Exchange differences 271 (52) (247) As at December 31 12,656 6,636 (3,548) The deferred tax assets and liabilities are offset when there is a legally enforceable right to set off and when the deferred income taxes relate to the same fiscal authority. The cumulative tax losses can be carried forward against future taxable income and will expire in the following years: December 31, 2022 2021 (in US$’000) No expiry date 71,325 60,450 2022 — 200 2023 — — 2024 3,763 4,099 2025 36,098 39,321 2026 48,150 52,452 2027 61,808 67,217 2028 107,297 117,376 2029 175,853 191,554 2030 243,918 265,696 2031 389,761 432,278 2032 610,800 — 1,748,773 1,230,643 The Company believes that it is more likely than not that future operations outside the U.S. will not generate sufficient taxable income to realize the benefit of the deferred tax assets. Certain of the Company’s subsidiaries have had sustained tax losses, which will expire within five years if not utilized in the case of PRC subsidiaries (ten years for HNTEs), and which will not be utilized in the case of Hong Kong subsidiaries as they do not generate taxable profits. Accordingly, a valuation allowance has been recorded against the relevant deferred tax assets arising from the tax losses. A U.S. subsidiary of the Company has approximately US$3.9 million and US$1.2 million U.S. Federal and New Jersey state research tax credits which will expire between 2041 and 2042 (Federal) and 2028 and 2029 (New Jersey) respectively, if not utilized. The table below summarizes changes in the deferred tax valuation allowance: 2022 2021 2020 (in US$’000) As at January 1 189,700 122,378 69,399 Charged to consolidated statements of operations 93,243 63,975 46,321 Utilization of previously unrecognized tax losses (1) (186) (114) Write-off of tax losses (125) — — Others — (9) — Exchange differences (18,178) 3,542 6,772 As at December 31 264,639 189,700 122,378 As at December 31, 2022, 2021 and 2020, the Group did not have any material unrecognized uncertain tax positions. (iii) Income tax payable 2022 2021 2020 (in US$’000) As at January 1 15,546 1,120 1,828 Current tax 3,280 16,636 1,548 Withholding tax upon dividend declaration from PRC entities 2,186 5,148 2,323 Tax paid (note) (18,891) (5,014) (5,940) Reclassification from non-current withholding tax — — 812 Reclassification (from)/to prepaid tax (241) 25 485 Divestment of an equity investee (Note 22) — (2,644) — Exchange difference (768) 275 64 As at December 31 1,112 15,546 1,120 Note: The amount for 2022 includes US$14.4 million capital gain tax paid for gain on divestment of HBYS (Note 22). The amount for 2020 is net of the PRC Enterprise Income Tax refund of US$0.4 million received by HSPL.

Losses Per Share

Losses Per Share	12 Months Ended
Losses Per Share	Dec. 31, 2022
Losses Per Share
Losses Per Share	25. Losses Per Share (i) Basic losses per share Basic losses per share is calculated by dividing the net loss attributable to the Company by the weighted average number of outstanding ordinary shares in issue during the year. Year Ended December 31, 2022 2021 2020 Weighted average number of outstanding ordinary shares in issue 847,143,540 792,684,524 697,931,437 Net loss attributable to the Company (US$’000) (360,835) (194,648) (125,730) Losses per share attributable to the Company (US$ per share) (0.43) (0.25) (0.18) (ii) Diluted losses per share Diluted losses per share is calculated by dividing net loss attributable to the Company by the weighted average number of outstanding ordinary shares in issue and dilutive ordinary share equivalents outstanding during the year. Dilutive ordinary share equivalents include shares issuable upon the exercise or settlement of share options, LTIP awards and warrants issued by the Company using the treasury stock method. For the years ended December 31, 2022, 2021 and 2020, the share options, LTIP awards and warrants issued by the Company were not included in the calculation of diluted losses per share because of their anti-dilutive effect. Therefore, diluted losses per share were equal to basic losses per share for the years ended December 31, 2022, 2021 and 2020.

Segment Reporting

Segment Reporting	12 Months Ended
Segment Reporting	Dec. 31, 2022
Segment Reporting
Segment Reporting	26. Segment Reporting The Group’s operating segments are as follows: (i) Oncology/Immunology: focuses on discovering, developing, and commercializing targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. Oncology/Immunology is further segregated into two core business areas: (a) R&D: comprises research and development activities covering drug discovery, development, manufacturing and regulatory functions as well as administrative activities to support research and development operations; and (b) Marketed Products: comprises the sales, marketing, manufacture and distribution of drugs developed from research and development activities. (ii) Other Ventures: comprises other commercial businesses which include the sales, marketing, manufacture and distribution of other prescription drugs and consumer health products. The performance of the reportable segments is assessed based on segment net (loss)/income attributable to the Company. The segment information is as follows: Year Ended December 31, 2022 Oncology/Immunology Marketed Other R&D Products Ventures U.S. and PRC Others Subtotal PRC Subtotal PRC Unallocated Total (in US$’000) Revenue from external customers 39,202 — 39,202 124,642 163,844 262,565 — 426,409 Interest income 674 4 678 — 678 272 8,649 9,599 Interest expense — — — — — — (652) (652) Equity in earnings of equity investees, net of tax 5 — 5 — 5 49,748 — 49,753 Income tax (expense)/benefit (552) 6,053 5,501 (631) 4,870 (1,345) (3,242) 283 Net (loss)/income attributable to the Company (215,834) (186,945) (402,779) 17,367 (385,412) 54,604 (30,027) (360,835) Depreciation/amortization (7,576) (484) (8,060) — (8,060) (299) (305) (8,664) Additions to non-current assets (other than financial instruments and deferred tax assets) 47,563 725 48,288 — 48,288 664 21 48,973 December 31, 2022 Oncology/Immunology Marketed Other R&D Products Ventures U.S. and PRC Others Subtotal PRC Subtotal PRC Unallocated Total (in US$’000) Total assets 221,337 30,281 251,618 45,984 297,602 235,500 496,343 1,029,445 Property, plant and equipment 72,775 2,103 74,878 — 74,878 735 334 75,947 Right-of-use assets 3,350 3,167 6,517 — 6,517 1,308 897 8,722 Leasehold land 11,830 — 11,830 — 11,830 — — 11,830 Goodwill — — — — — 3,137 — 3,137 Other intangible asset — — — — — 85 — 85 Investments in equity investees 316 — 316 — 316 73,461 — 73,777 Year Ended December 31, 2021 Oncology/Immunology Marketed Other R&D Products Ventures U.S. and PRC Others Subtotal PRC Subtotal PRC Unallocated Total (in US$’000) Revenue from external customers 43,181 — 43,181 76,429 119,610 236,518 — 356,128 Interest income 809 3 812 — 812 282 982 2,076 Interest expense — — — — — — (592) (592) Equity in earnings of equity investees, net of tax 20 — 20 — 20 60,597 — 60,617 Income tax benefit/(expense) 22 7,160 7,182 (1,320) 5,862 (14,573) (3,207) (11,918) Net (loss)/income attributable to the Company (143,528) (152,235) (295,763) 4,032 (291,731) 142,890 (45,807) (194,648) Depreciation/amortization (6,436) (197) (6,633) — (6,633) (318) (239) (7,190) Additions to non-current assets (other than financial instruments and deferred tax assets) 25,295 4,321 29,616 — 29,616 1,056 327 30,999 December 31, 2021 Oncology/Immunology Marketed Other R&D Products Ventures U.S. and PRC Others Subtotal PRC Subtotal PRC Unallocated Total (in US$’000) Total assets 166,802 19,870 186,672 35,978 222,650 225,898 924,113 1,372,661 Property, plant and equipment 38,049 1,862 39,911 — 39,911 746 618 41,275 Right-of-use assets 4,798 3,768 8,566 — 8,566 1,827 1,486 11,879 Leasehold land 13,169 — 13,169 — 13,169 — — 13,169 Goodwill — — — — — 3,380 — 3,380 Other intangible asset — — — — — 163 — 163 Investments in equity investees 480 — 480 — 480 75,999 — 76,479 Year Ended December 31, 2020 Oncology/Immunology Marketed Other R&D Products Ventures U.S. and PRC Others Subtotal PRC Subtotal PRC Unallocated Total (in US$’000) Revenue from external customers 10,262 — 10,262 19,953 30,215 197,761 — 227,976 Interest income 461 — 461 — 461 167 2,608 3,236 Interest expense — — — — — — (787) (787) Equity in earnings of equity investees, net of tax (97) — (97) — (97) 79,143 — 79,046 Income tax (expense)/benefit (402) 642 240 (167) 73 (824) (4,078) (4,829) Net (loss)/income attributable to the Company (120,096) (62,683) (182,779) 7,282 (175,497) 72,785 (23,018) (125,730) Depreciation/amortization (5,458) (119) (5,577) — (5,577) (292) (192) (6,061) Additions to non-current assets (other than financial instruments and deferred tax assets) 22,574 754 23,328 — 23,328 817 1,090 25,235 Revenue from external customers is after elimination of inter-segment sales. Sales between segments are carried out at mutually agreed terms. The amounts eliminated attributable to sales between PRC and U.S. and others under Oncology/Immunology segment were US$55,433,000, US$46,891,000, and US$19,230,000 for the years ended December 31, 2022, 2021, and 2020 respectively. A summary of customers which accounted for over 10% of the Group’s revenue for the years ended December 31, 2022, 2021 and 2020 is as follows: Year Ended December 31, 2022 2021 2020 (in US$’000) Customer A 75,606 56,082 (note) Customer B 51,681 49,055 (note) Customer C 47,611 41,974 36,500 Customer D (note) (note) 25,993 Note: Customer did not account for over 10% of the Group’s revenue during the year. Customer A and B are included in Oncology/Immunology and Customer C and D are primarily included in Other Ventures. Unallocated expenses mainly represent corporate expenses which include corporate employee benefit expenses and the relevant share-based compensation expenses. Unallocated assets mainly comprise cash and cash equivalents and short-term investments.

Note to Consolidated Statements

Note to Consolidated Statements of Cash Flows	12 Months Ended
Note to Consolidated Statements of Cash Flows	Dec. 31, 2022
Note to Consolidated Statements of Cash Flows
Note to Consolidated Statements of Cash Flows	27. Note to Consolidated Statements of Cash Flows Reconciliation of net loss for the year to net cash used in operating activities: Year Ended December 31, 2022 2021 2020 (in US$’000) Net loss (360,386) (167,041) (115,517) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization 8,664 7,190 6,061 Amortization of finance costs 18 44 43 Loss on disposals of property, plant and equipment 111 70 85 Provision for excess and obsolete inventories 293 (23) 65 Provision for credit losses, net 43 (76) 77 Share-based compensation expense—share options 6,736 16,365 8,737 Share-based compensation expense—LTIP 23,850 25,625 10,905 Equity in earnings of equity investees, net of tax (49,753) (60,617) (79,046) Dividends received from SHPL and HBYS 43,718 49,872 86,708 Impairment of investment in other equity investee 130 — — Changes in right-of-use assets 2,721 (3,727) (2,197) Fair value losses on warrant 2,452 12,548 — Gain from divestment of HBYS — (121,310) — Unrealized currency translation loss/(gain) 13,274 (2,505) (6,149) Changes in income tax balances (19,174) 6,904 (1,111) Changes in working capital Accounts receivable (14,451) (35,634) (4,693) Other receivables, prepayments and deposits 12,072 (5,758) (9,602) Inventories (21,213) (16,002) (3,623) Accounts payable 29,938 9,565 7,651 Other payables, accruals and advance receipts 52,629 66,224 37,472 Lease liabilities (2,701) 3,079 2,258 Deferred revenue 386 11,071 (158) Other 2,044 (87) (32) Total changes in working capital 58,704 32,458 29,273 Net cash used in operating activities (268,599) (204,223) (62,066)

Litigation

Litigation	12 Months Ended
Litigation	Dec. 31, 2022
Litigation
Litigation	28. Litigation From time to time, the Group may become involved in litigation relating to claims arising from the ordinary course of business. The Group believes that there are currently no claims or actions pending against the Group, the ultimate disposition of which could have a material adverse effect on the Group’s financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. When an unfavorable outcome occurs, there exists the possibility of a material adverse impact on the Group’s financial position, results of operations or cash flows for the periods in which the unfavorable outcome occurs, and potentially in future periods. On May 17, 2019, Luye Pharma Hong Kong Ltd. (“Luye”) issued a notice to the Group purporting to terminate a distribution agreement that granted the Group exclusive commercial rights to Seroquel in the PRC for failure to meet a pre-specified target. The Group disagrees with this assertion and believes that Luye have no basis for termination. As a result, the Group commenced legal proceedings in 2019 in order to seek damages. On October 21, 2021 (and a decision on costs and interest in December 2021), the Group was awarded an amount of RMB253.2 million (equivalent to US$36.4 million) with interest of 5.5% per annum from the date of the award until payment and recovery of costs of approximately US$2.2 million (collectively the “Award”). On June 27, 2022, Luye provided the Group a bank guarantee of up to RMB286.0 million to cover the Award amounts, pending the outcome of an application by Luye to the High Court of Hong Kong to set aside the Award. On July 26, 2022, Luye’s application to set aside the Award was dismissed by the High Court with costs awarded in favor of the Group. On October 7, 2022, Luye filed a Notice of Appeal to the Court of Appeal regarding the dismissal and the notice was accepted on November 8, 2022. A Court of Appeal hearing date has been set for June 2023. The legal proceedings are ongoing, no Award amounts have been received as at the issuance date of these consolidated financial statements and no Award amounts have been recognized and no adjustment has been made to Seroquel-related balances as at December 31, 2022. Such Seroquel-related balances include accounts receivable, long-term prepayment, accounts payable and other payables of US$1.1 million, US$0.5 million, US$0.9 million and US$1.2 million respectively.

Restricted Net Assets

Restricted Net Assets	12 Months Ended
Restricted Net Assets	Dec. 31, 2022
Restricted Net Assets
Restricted Net Assets	29. Restricted Net Assets Relevant PRC laws and regulations permit payments of dividends by the Company’s subsidiaries in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries in the PRC are required to make certain appropriations of net after-tax profits or increases in net assets to the statutory surplus fund prior to payment of any dividends. In addition, registered share capital and capital reserve accounts are restricted from withdrawal in the PRC, up to the amount of net assets held in each subsidiary. As a result of these and other restrictions under PRC laws and regulations, the Company’s subsidiaries in the PRC are restricted in their ability to transfer their net assets to the Group in terms of cash dividends, loans or advances, with restricted portions amounting to US$0.1 million and US$0.1 million as at December 31, 2022 and 2021 respectively, which excludes the Company’s subsidiaries with a shareholders’ deficit. Even though the Group currently does not require any such dividends, loans or advances from the PRC subsidiaries, for working capital and other funding purposes, the Group may in the future require additional cash resources from the Company’s subsidiaries in the PRC due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends to make distributions to shareholders. In addition, the Group has certain investments in equity investees in the PRC, where the Group’s equity in undistributed earnings amounted to US$53.7 million and US$54.4 million as at December 31, 2022 and 2021 respectively.

Subsequent Events

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2022
Subsequent Events
Subsequent Events	30 . Subsequent Events The Group evaluated subsequent events through February 28, 2023, which is the date when the consolidated financial statements were issued. On January 23, 2023, the Group and Takeda Pharmaceuticals International AG (“Takeda”) entered into an exclusive out-licensing agreement (the “Agreement”) to further the global development, commercialization and manufacturing of Fruquintinib outside Mainland China, Hong Kong and Macau. The Group will receive up to US$1,130.0 million from Takeda, including upfront payments of US$400.0 million upon closing of the Agreement, as well as potential regulatory, development and commercial sales milestone payments, plus royalties on net sales.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2022
Summary of Significant Accounting Policies
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements reflect the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained. All inter-company balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the U.S. (“U.S. GAAP”).
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
Foreign Currency Translation	Foreign Currency Translation The Company’s presentation currency and functional currency is the U.S. dollar (“US$”). The financial statements of its subsidiaries with a functional currency other than the US$ have been translated into the Company’s presentation currency. All assets and liabilities of the subsidiaries are translated using year-end exchange rates and revenues and expenses are translated at average exchange rates for the year. Translation adjustments are reflected in accumulated other comprehensive (loss)/income in shareholders’ equity. Net foreign currency exchange losses of US$5,704,000 and net foreign currency exchange gains of US$1,671,000 and US$3,265,000 were recorded in other expense and income in the consolidated statements of operations for the years ended December 31, 2022, 2021 and 2020 respectively.
Foreign Currency Risk	Foreign Currency Risk The Group’s operating transactions and its assets and liabilities in the PRC are mainly denominated in Renminbi (“RMB”), which is not freely convertible into foreign currencies. The Group’s cash and cash equivalents denominated in RMB are subject to government controls. The value of the RMB is subject to fluctuations from central government policy changes and international economic and political developments that affect the supply and demand of RMB in the foreign exchange market. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”). Remittances in currencies other than RMB by the Group in the PRC must be processed through the PBOC or other PRC foreign exchange regulatory bodies which require certain supporting documentation in order to complete the remittance.
Allowance for Current Expected Credit Losses and Concentration of Credit Risk	Allowance for Current Expected Credit Losses and Concentration of Credit Risk Financial instruments that potentially expose the Group to credit risk consist primarily of cash and cash equivalents, short-term investments, and financial assets not carried at fair value including accounts receivable and other receivables. The Group recognizes an allowance for current expected credit losses (“CECLs”) on financial assets not carried at fair value. CECLs are calculated over the expected life of the financial assets on an individual or a portfolio basis considering information available about the counterparties’ credit situation and collectability of the specific cash flows, including information about past events, current conditions and future forecasts. The Group places substantially all of its cash and cash equivalents and short-term investments in major financial institutions, which management believes are of high credit quality. The Group has a practice to limit the amount of credit exposure to any particular financial institution. 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.
Cash and Cash Equivalents	Cash and Cash Equivalents The Group considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist primarily of cash on hand and bank deposits and are stated at cost, which approximates fair value.
Short-term Investments	Short-term Investments Short-term investments include deposits placed with banks with original maturities of more than three months but less than one year.
Accounts Receivable	Accounts Receivable Accounts receivable are stated at the amount management expects to collect from customers based on their outstanding invoices. The allowance for CECLs reflects the Group’s current estimate of credit losses expected to be incurred over the life of the receivables. The Group considers various factors in establishing, monitoring, and adjusting its allowance for CECLs including the aging of the accounts and aging trends, the historical level of charge-offs, and specific exposures related to particular customers. The Group also monitors other risk factors and forward-looking information, such as country risk, when determining credit limits for customers and establishing adequate allowances for CECLs. Accounts receivable are written off after all reasonable means to collect the full amount (including litigation, where appropriate) have been exhausted.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average cost method. The cost of finished goods comprises raw materials, direct labor, other direct costs and related production overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. A provision for excess and obsolete inventory will be made based primarily on forecasts of product demand and production requirements. The excess balance determined by this analysis becomes the basis for excess inventory charge and the written-down value of the inventory becomes its cost. Written-down inventory is not written up if market conditions improve.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment consist of buildings, leasehold improvements, plant and equipment, furniture and fixtures, other equipment and motor vehicles. Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the depreciable assets. Buildings 20 years Plant and equipment 5-10 years Furniture and fixtures, other equipment and motor vehicles 4-5 years Leasehold improvements Shorter of (a) 5 years or (b) remaining term of lease Additions and improvements that extend the useful life of an asset are capitalized. Repairs and maintenance costs are expensed as incurred.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Group evaluates the recoverability of long-lived assets in accordance with authoritative guidance on accounting for the impairment or disposal of long-lived assets. The Group evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. If indicators of impairment exist, the first step of the impairment test is performed to assess if the carrying value of the net assets exceeds the undiscounted cash flows of the assets. If yes, the second step of the impairment test is performed in order to determine if the carrying value of the net assets exceeds the fair value. If yes, impairment is recognized for the excess.
Investments in Equity Investees	Investments in Equity Investees Investments in equity investees over which the Group has significant influence are accounted for using the equity method. The Group evaluates equity method investments for impairment when events or circumstances suggest that their carrying amounts may not be recoverable. An impairment charge would be recognized in earnings for a decline in value that is determined to be other-than-temporary after assessing the severity and duration of the impairment and the likelihood of recovery before disposal. The investments are recorded at fair value only if impairment is recognized.
Leasehold Land	Leasehold Land Leasehold land represents fees paid to acquire the right to use the land on which various plants and buildings are situated for a specified period of time from the date the respective right was granted and are stated at cost less accumulated amortization and impairment loss, if any. Amortization is computed using the straight-line basis over the lease period of 50 years.
Goodwill	Goodwill Goodwill represents the excess of the purchase price plus fair value of non-controlling interests over the fair value of identifiable assets and liabilities acquired. Goodwill is not amortized, but is tested for impairment at the reporting unit level on at least an annual basis or when an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. When performing an evaluation of goodwill impairment, the Group has the option to first assess qualitative factors, such as significant events and changes to expectations and activities that may have occurred since the last impairment evaluation, to determine if it is more likely than not that goodwill might be impaired. If as a result of the qualitative assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the quantitative fair value test is performed to determine if the fair value of the reporting unit exceeds its carrying value.
Other Intangible Assets	Other Intangible Assets Other intangible assets with finite useful lives are carried at cost less accumulated amortization and impairment loss, if any. Amortization is computed using the straight-line basis over the estimated useful lives of the assets.
Borrowings	Borrowings Borrowings are recognized initially at fair value, net of debt issuance costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of debt issuance costs) and the redemption value is recognized in the consolidated statements of operations over the period of the borrowings using the effective interest method.
Ordinary Shares	Ordinary Shares The Company’s ordinary shares are stated at par value of US$0.10 per ordinary share. The difference between the consideration received, net of issuance cost, and the par value is recorded in additional paid-in capital.
Treasury Shares	Treasury Shares The Group accounts for treasury shares under the cost method. The treasury shares are purchased for the purpose of the LTIP and held by a trustee appointed by the Group (the “Trustee”) prior to vesting.
Share-Based Compensation	Share-Based Compensation Share options The Group recognizes share-based compensation expense on share options granted to employees and directors based on their estimated grant date fair value using the Polynomial model. This Polynomial pricing model uses various inputs to measure fair value, including the market value of the Company’s underlying ordinary shares at the grant date, contractual terms, estimated volatility, risk-free interest rates and expected dividend yields. The Group recognizes share-based compensation expense in the consolidated statements of operations on a graded vesting basis over the requisite service period, and accounts for forfeitures as they occur. Share options are classified as equity-settled awards. Share-based compensation expense, when recognized, is charged to the consolidated statements of operations with the corresponding entry to additional paid-in capital. LTIP The Group recognizes the share-based compensation expense on the LTIP awards based on a fixed or determinable monetary amount on a straight-line basis for each annual tranche awarded over the requisite period. For LTIP awards with performance targets, prior to their determination date, the amount of LTIP awards that is expected to vest takes into consideration the achievement of the performance conditions and the extent to which the performance conditions are likely to be met. Performance conditions vary by awards, and may include targets for shareholder returns, financings, revenues, net profit after taxes and the achievement of clinical and regulatory milestones. These LTIP awards are classified as liability-settled awards before the determination date (i.e. the date when the achievement of any performance conditions are known), as they settle in a variable number of shares based on a determinable monetary amount, which is determined upon the actual achievement of performance targets. As the extent of achievement of the performance targets is uncertain prior to the determination date, a probability based on management’s assessment of the achievement of the performance targets has been assigned to calculate the amount to be recognized as an expense over the requisite period. After the determination date or if the LTIP awards have no performance conditions, the LTIP awards are classified as equity-settled awards. If the performance target is achieved, the Group will pay the determined monetary amount to the Trustee to purchase ordinary shares of the Company or the equivalent ADS. Any cumulative compensation expense previously recognized as a liability will be transferred to additional paid-in capital. If the performance target is not achieved, no ordinary shares or ADS of the Company will be purchased and the amount previously recorded in the liability will be reversed and included in the consolidated statements of operations.
Defined Contribution Plans	Defined Contribution Plans The Group’s subsidiaries in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. The relevant labor regulations require the Group’s subsidiaries in the PRC to pay the local labor and social welfare authority’s monthly contributions at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor and social welfare authorities are responsible for meeting all retirement benefits obligations and the Group’s subsidiaries in the PRC have no further commitments beyond their monthly contributions. The contributions to the plan are expensed as incurred. The Group also makes payments to other defined contribution plans for the benefit of employees employed by subsidiaries outside the PRC. The defined contribution plans are generally funded by the relevant companies and by payments from employees. The Group’s contributions to defined contribution plans for the years ended December 31, 2022, 2021 and 2020 amounted to US$11,795,000, US$7,181,000 and US$2,660,000 respectively.
Revenue Recognition	Revenue Recognition Revenue is measured based on consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Group from a customer, are also excluded from revenue. The Group recognizes revenue when it satisfies a performance obligation by transferring control over a good, service or license to a customer. (i) Goods and services The Group principally generates revenue from (1) sales of goods, which are the manufacture or purchase and distribution of pharmaceutical products and other consumer health products, and (2) provision of services, which are the provision of sales, distribution and marketing services to pharmaceutical manufacturers. The Group evaluates whether it is the principal or agent for these contracts. Where the Group obtains control of the goods for distribution, it is the principal (i.e. recognizes sales of goods on a gross basis). Where the Group does not obtain control of the goods for distribution, it is the agent (i.e. recognizes provision of services on a net basis). Control is primarily evidenced by taking physical possession and inventory risk of the goods. Revenues from sales of goods is recognized when the customer takes possession of the goods. This usually occurs upon completed delivery of the goods to the customer site. The amount of revenue recognized is adjusted for expected sales incentives as stipulated in the contract, which are generally issued to customers as direct discounts at the point-of-sale or indirectly in the form of rebates. Sales incentives are estimated using the expected value method. Additionally, sales are generally made with a limited right of return under certain conditions. Revenues are recorded net of provisions for sales discounts and returns. Revenue from provision of services is recognized when the benefits of the services transfer to the customer over time, which is based on the proportionate value of services rendered as determined under the terms of the relevant contract. Additionally, when the amounts that can be invoiced correspond directly with the value to the customer for performance completed to date, the Group recognizes revenue from provision of services based on amounts that can be invoiced to the customer. Deferred revenue is recognized if consideration is received in advance of transferring control of the goods or rendering of services. Accounts receivable is recognized if the Group has an unconditional right to bill the customer, which is generally when the customer takes possession of the goods or services are rendered. Payment terms differ by subsidiary and customer, but generally range from 45 to 180 days from the invoice date. (ii) License and collaboration contracts The Group’s Oncology/Immunology reportable segment includes revenue generated from license and collaboration contracts, which generally contain multiple performance obligations including (1) the license to the commercialization rights of a drug compound and (2) the research and development services for each specified treatment indication, which are accounted for separately if they are distinct, i.e. if a product or service is separately identifiable from other items in the arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The transaction price generally includes fixed and variable consideration in the form of upfront payment, research and development cost reimbursements, contingent milestone payments and sales-based royalties. Contingent milestone payments are not included in the transaction price until it becomes probable that a significant reversal of revenue will not occur, which is generally when the specified milestone is achieved. The allocation of the transaction price to each performance obligation is based on the relative standalone selling prices of each performance obligation determined at the inception of the contract. The Group estimates the standalone selling prices based on the income approach. Control of the license to the drug compounds transfers at the inception date of the collaboration agreements and consequently, amounts allocated to this performance obligation are generally recognized at a point in time. Conversely, research and development services for each specified indication are performed over time and amounts allocated to these performance obligations are generally recognized over time using cost inputs as a measure of progress. The Group has determined that research and development expenses provide an appropriate depiction of measure of progress for the research and development services. Changes to estimated cost inputs may result in a cumulative catch-up adjustment. Royalty revenues are recognized as future sales occur as they meet the requirements for the sales-usage based royalty exception. Deferred revenue is recognized if allocated consideration is received in advance of the Group rendering research and development services or earning royalties on future sales. Accounts receivable is recognized based on the terms of the contract and when the Group has an unconditional right to bill the customer, which is generally when research and development services are rendered.
Research and Development Expenses	Research and Development Expenses Research and development expenses include the following: (i) research and development costs, which are expensed as incurred; (ii) acquired in-process research and development (“IPR&D”) expenses, which include the initial costs of externally developed IPR&D projects, acquired directly in a transaction other than a business combination, that do not have an alternative future use; and (iii) milestone payment obligations for externally developed IPR&D projects incurred prior to regulatory approval of the product in the in-licensed territory, which are accrued when the event requiring payment of the milestone occurs (milestone payment obligations incurred upon regulatory approval are recorded as other intangible assets).
Collaborative Arrangements	Collaborative Arrangements The Group enters into collaborative arrangements with collaboration partners that fall under the scope of Accounting Standards Codification (“ASC”) 808, Collaborative Arrangements (“ASC 808”). The Group records all expenditures for such collaborative arrangements in research and development expenses as incurred, including payments to third party vendors and reimbursements to collaboration partners, if any. Reimbursements from collaboration partners are recorded as reductions to research and development expenses and accrued when they can be contractually claimed.
Government Grants	Government Grants Grants from governments are recognized at their fair values. Government grants that are received in advance are deferred and recognized in the consolidated statements of operations over the period necessary to match them with the costs that they are intended to compensate. Government grants in relation to the achievement of stages of research and development projects are recognized in the consolidated statements of operations when amounts have been received and all attached conditions have been met. Non-refundable grants received without any further obligations or conditions attached are recognized immediately in the consolidated statements of operations.
Leases	Leases In an operating lease, a lessee obtains control of only the use of the underlying asset, but not the underlying asset itself. An operating lease is recognized as a right-of-use asset with a corresponding liability at the date which the leased asset is available for use by the Group. The Group recognizes an obligation to make lease payments equal to the present value of the lease payments over the lease term. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease liabilities include the net present value of the following lease payments: (i) fixed payments; (ii) variable lease payments that depend on an index or a rate; and (iii) payments of penalties for terminating the lease if the lease term reflects the lessee exercising that option, if any. Lease liabilities exclude the following payments that are generally accounted for separately: (i) non-lease components, such as maintenance and security service fees and value added tax, and (ii) any payments that a lessee makes before the lease commencement date. The lease payments are discounted using the interest rate implicit in the lease or if that rate cannot be determined, the lessee’s incremental borrowing rate being the rate that the lessee would have to pay to borrow the funds in its currency and jurisdiction necessary to obtain an asset of similar value, economic environment and terms and conditions. An asset representing the right to use the underlying asset during the lease term is recognized that consists of the initial measurement of the operating lease liability, any lease payments made to the lessor at or before the commencement date less any lease incentives received, any initial direct cost incurred by the Group and any restoration costs. After commencement of the operating lease, the Group recognizes lease expenses on a straight-line basis over the lease term. The right-of-use asset is subsequently measured at cost less accumulated amortization and any impairment provision. The amortization of the right-of-use asset represents the difference between the straight-line lease expense and the accretion of interest on the lease liability each period. The interest amount is used to accrete the lease liability and to amortize the right-of-use asset. There is no amount recorded as interest expense. Payments associated with short-term leases are recognized as lease expenses on a straight-line basis over the period of the leases. Subleases of right-of-use assets are accounted for similar to other leases. As an intermediate lessor, the Group separately accounts for the head-lease and sublease unless it is relieved of its primary obligation under the head-lease. Sublease income is recorded on a gross basis separate from the head-lease expenses. If the total remaining lease cost on the head-lease is more than the anticipated sublease income for the lease term, this is an indicator that the carrying amount of the right-of-use asset associated with the head-lease may not be recoverable, and the right-of-use asset will be assessed for impairment.
Income Taxes	Income Taxes The Group accounts for income taxes under the liability method. Under the liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and income tax bases of assets and liabilities and are measured using the income tax rates that will be in effect when the differences are expected to reverse. A valuation allowance is recorded when it is more likely than not that some of the net deferred income tax asset will not be realized. The Group accounts for an uncertain tax position in the consolidated financial statements only if it is more likely than not that the position is sustainable based on its technical merits and consideration of the relevant tax authority’s widely understood administrative practices and precedents. If the recognition threshold is met, the Group records the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement. The Group recognizes interest and penalties for income taxes, if any, under income tax payable on its consolidated balance sheets and under other expenses in its consolidated statements of operations.
Losses per Share	Losses per Share Basic losses per share is computed by dividing net loss attributable to the Company by the weighted average number of outstanding ordinary shares in issue during the year. Weighted average number of outstanding ordinary shares in issue excludes treasury shares. Diluted losses per share is computed by dividing net loss attributable to the Company by the weighted average number of outstanding ordinary shares in issue and dilutive ordinary share equivalents outstanding during the year. Dilutive ordinary share equivalents include ordinary shares and treasury shares issuable upon the exercise or settlement of share-based awards or warrants issued by the Company using the treasury stock method. The computation of diluted losses per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect.
Segment Reporting	Segment Reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief executive officer who is the Group’s chief operating decision maker. The chief operating decision maker reviews the Group’s internal reporting in order to assess performance and allocate resources.
Profit Appropriation and Statutory Reserves	Profit Appropriation and Statutory Reserves The Group’s subsidiaries and equity investees established in the PRC are required to make appropriations to certain non-distributable reserve funds. In accordance with the relevant laws and regulations established in the PRC, the Company’s subsidiaries registered as wholly-owned foreign enterprise have to make appropriations from their after-tax profits (as determined under generally accepted accounting principles in the PRC (“PRC GAAP”) to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. Appropriations to the enterprise expansion fund and staff bonus and welfare fund are made at the respective company’s discretion. For the Group’s equity investees, the amount of appropriations to these funds are made at the discretion of their respective boards. In addition, Chinese domestic companies must make appropriations from their after-tax profits as determined under PRC GAAP to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the respective company’s discretion. The use of the general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund is restricted to the offsetting of losses or increases to the registered capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of employees. All these reserves are not permitted to be transferred to the company as cash dividends, loans or advances, nor can they be distributed except under liquidation.

Particulars of Principal Subs_2

Particulars of Principal Subsidiaries and Equity Investee (Tables)	12 Months Ended
	Dec. 31, 2022
Particulars of Principal Subsidiaries and Equity Investee
Schedule of particulars of principal subsidiaries and equity investee	Equity interest Place of attributable to establishment the Group and December 31, Name operations 2022 2021 Principal activities Subsidiaries HUTCHMED Limited PRC 99.75 % 99.75 % Research, development, manufacture and commercialization of pharmaceutical products HUTCHMED International Corporation U.S. 99.75 % 99.75 % Provision of professional, scientific and technical support services Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Company Limited (“HSPL”) PRC 50.87 % 50.87 % Provision of sales, distribution and marketing services to pharmaceutical manufacturers Hutchison Healthcare Limited PRC 100 % 100 % Manufacture and distribution of healthcare products Hutchison Hain Organic (Hong Kong) Limited (“HHOHK”) (note) Hong Kong 50 % 50 % Wholesale and trading of healthcare and consumer products HUTCHMED Science Nutrition Limited Hong Kong 100 % 100 % Wholesale and trading of healthcare and consumer products Equity investee Shanghai Hutchison Pharmaceuticals Limited (“SHPL”) PRC 50 % 50 % Manufacture and distribution of prescription drug products Note: HHOHK is regarded as a subsidiary of the Company, as while both its shareholders have equal representation at the board, in the event of a deadlock, the Group has a casting vote and is therefore able to unilaterally control the financial and operating policies of HHOHK.

Summary of significant accoun_3

Summary of significant accounting policies (Tables)	12 Months Ended
Summary of significant accounting policies (Tables)	Dec. 31, 2022
Summary of Significant Accounting Policies
Schedule of estimated useful lives of property, plant, and equipment	Buildings 20 years Plant and equipment 5-10 years Furniture and fixtures, other equipment and motor vehicles 4-5 years Leasehold improvements Shorter of (a) 5 years or (b) remaining term of lease

Fair Value Disclosures (Tables)

Fair Value Disclosures (Tables)	12 Months Ended
Fair Value Disclosures (Tables)	Dec. 31, 2022
Fair Value Disclosures
Schedule of financial instruments by level within the fair value hierarchy	Fair Value Measurement Using Level 1 Level 2 Level 3 Total (in US$’000) As at December 31, 2021 Warrant (Note 19) — 2,452 — 2,452

Cash and Cash Equivalents and_2

Cash and Cash Equivalents and Short-term Investments (Tables)	12 Months Ended
	Dec. 31, 2022
Cash and Cash Equivalents and Short-term Investments
Schedule of cash and cash equivalents and short term investments	December 31, 2022 2021 (in US$’000) Cash and Cash Equivalents Cash at bank and on hand 178,326 104,620 Bank deposits maturing in three months or less 134,952 272,922 313,278 377,542 Short-term Investments Bank deposits maturing over three months (note) 317,718 634,158 630,996 1,011,700 Note: The maturities for short-term investments ranged from 91 to 99 days and 91 to 180 days for the years ended December 31, 2022 and 2021 respectively. December 31, 2022 2021 (in US$’000) US$ 533,173 895,935 RMB 79,319 53,455 Hong Kong dollar (“HK$”) 16,721 60,535 £ 1,370 1,090 Euro 413 685 630,996 1,011,700

Accounts Receivable (Tables)

Accounts Receivable (Tables)	12 Months Ended
Accounts Receivable (Tables)	Dec. 31, 2022
Accounts Receivable
Schedule of accounts receivable	December 31, 2022 2021 (in US$’000) Accounts receivable—third parties 94,531 82,434 Accounts receivable—related parties (Note 23(ii)) 3,517 1,166 Allowance for credit losses (60) (20) Accounts receivable, net 97,988 83,580
Schedule of aging analysis based on the relevant invoice dates	December 31, 2022 2021 (in US$’000) Not later than 3 months 84,007 78,288 Between 3 months to 6 months 7,478 2,867 Between 6 months to 1 year 1,947 78 Later than 1 year 1,099 1,201 Accounts receivable—third parties 94,531 82,434
Schedule of movements on the allowance for credit losses	2022 2021 2020 (in US$’000) As at January 1 20 95 16 Increase in allowance for credit losses 150 16 95 Decrease in allowance due to subsequent collection (107) (92) (18) Exchange difference (3) 1 2 As at December 31 60 20 95

Other receivables, prepayment_2

Other receivables, prepayments and deposits (Tables)	12 Months Ended
Other receivables, prepayments and deposits (Tables)	Dec. 31, 2022
Other receivables, prepayments and deposits
Schedule of other receivables, prepayments and deposits	December 31, 2022 2021 (in US$’000) Dividend receivables (Note 22) 26,246 46,387 Prepayments 22,329 14,128 Value-added tax receivables 1,491 16,616 Deposits 1,214 1,255 Amounts due from related parties (Note 23(ii)) 998 1,149 Others 1,936 1,506 54,214 81,041

Inventories (Tables)

Inventories (Tables)	12 Months Ended
Inventories (Tables)	Dec. 31, 2022
Inventories
Schedule of inventories, net of provision for excess and obsolete inventories	December 31, 2022 2021 (in US$’000) Raw materials 27,392 15,837 Finished goods 29,298 19,918 56,690 35,755

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	12 Months Ended
Property, Plant and Equipment (Tables)	Dec. 31, 2022
Property, Plant and Equipment
Schedule of property, plant and equipment	Furniture and fixtures, other Plant equipment Leasehold and and motor Construction Buildings improvements equipment vehicles in progress Total (in US$’000) Cost As at January 1, 2022 2,432 17,828 5,987 27,957 19,970 74,174 Additions — 171 541 4,945 40,625 46,282 Disposals — (1,105) (2) (529) — (1,636) Transfers — 1,336 1,412 1,637 (4,385) — Exchange differences (199) (1,394) (484) (2,272) (1,660) (6,009) As at December 31, 2022 2,233 16,836 7,454 31,738 54,550 112,811 Accumulated depreciation As at January 1, 2022 1,788 11,571 2,352 17,188 — 32,899 Depreciation 116 3,741 590 3,880 — 8,327 Disposals — (1,018) (2) (505) — (1,525) Transfers — — (56) 56 — — Exchange differences (151) (1,012) (214) (1,460) — (2,837) As at December 31, 2022 1,753 13,282 2,670 19,159 — 36,864 Net book value As at December 31, 2022 480 3,554 4,784 12,579 54,550 75,947 Furniture and fixtures, other Plant equipment Leasehold and and motor Construction Buildings improvements equipment vehicles in progress Total (in US$’000) Cost As at January 1, 2021 2,372 16,346 5,643 23,040 3,050 50,451 Additions — 452 24 3,189 19,669 23,334 Disposals — (275) (19) (705) — (999) Transfers — 916 197 1,849 (2,962) — Exchange differences 60 389 142 584 213 1,388 As at December 31, 2021 2,432 17,828 5,987 27,957 19,970 74,174 Accumulated depreciation As at January 1, 2021 1,626 8,652 1,747 14,256 — 26,281 Depreciation 120 2,904 574 3,244 — 6,842 Disposals — (223) (18) (688) — (929) Exchange differences 42 238 49 376 — 705 As at December 31, 2021 1,788 11,571 2,352 17,188 — 32,899 Net book value As at December 31, 2021 644 6,257 3,635 10,769 19,970 41,275

Leases (Tables)

Leases (Tables)	12 Months Ended
Leases (Tables)	Dec. 31, 2022
Leases
Schedule of leases	December 31, 2022 2021 (in US$’000) Right‑of‑use assets Offices 6,634 10,605 Factories 387 702 Warehouses (note) 1,500 281 Others 201 291 Total right‑of‑use assets 8,722 11,879 Lease liabilities—current 3,708 4,917 Lease liabilities—non‑current 5,196 7,161 Total lease liabilities 8,904 12,078 Note: Includes US$1.5 million right-of-use asset for warehouses in Suzhou that is leased through June 2026 in which the contract has a termination option with 3-month advance notice. The termination option was not recognized as part of the right-of-use asset and lease liability as it is uncertain that the Group will exercise such option.
Schedule of lease activities	Year Ended December 31, 2022 2021 (in US$’000) Lease expenses: Short‑term leases with lease terms equal or less than 12 months 134 106 Leases with lease terms greater than 12 months 5,238 4,306 5,372 4,412 Cash paid on lease liabilities 5,212 4,954 Non-cash: Lease liabilities recognized from obtaining right-of-use assets 2,689 7,665 Non-cash: Lease liabilities changed in relation to modifications and terminations (499) (33)
Schedule of future lease payments	December 31, 2022 (in US$’000) Lease payments: Not later than 1 year 3,908 Between 1 to 2 years 2,471 Between 2 to 3 years 1,177 Between 3 to 4 years 911 Between 4 to 5 years 680 Later than 5 years 115 Total lease payments 9,262 Less: Discount factor (358) Total lease liabilities 8,904

Investments in Equity Investe_2

Investments in Equity Investees (Tables)	12 Months Ended
Investments in Equity Investees (Tables)	Dec. 31, 2022
Investments in Equity Investees
Schedule of composition of equity investees	December 31, 2022 2021 (in US$’000) SHPL 73,461 75,999 Other 316 480 73,777 76,479
Summarized balance sheets for significant equity investees	SHPL December 31, 2022 2021 (in US$’000) Current assets 214,267 190,260 Non-current assets 80,062 91,605 Current liabilities (147,952) (128,993) Non-current liabilities (4,944) (7,131) Net assets 141,433 145,741
Summarized statements of operations for significant equity investees	SHPL HBYS (note (a)) Year Ended December 31, 2022 2021 2020 2021 (note (b)) 2020 (in US$’000) Revenue 370,600 332,648 276,354 209,528 232,368 Gross profit 281,113 255,089 204,191 111,066 116,804 Interest income 980 1,216 975 205 271 Finance cost — — — — (5) Profit before taxation 116,454 105,325 77,837 36,715 107,715 Income tax expense (note (c)) (16,738) (15,896) (10,833) (4,840) (16,494) Net income (note (d)) 99,716 89,429 67,004 31,875 91,221 Non-controlling interests — — — (36) 62 Net income attributable to the shareholders of equity investee 99,716 89,429 67,004 31,839 91,283 Notes: (a) In 2020, HBYS entered into an agreement with the government to return the land use right for a plot of land in Guangzhou to the government and recognized land compensation of RMB 569.2 million (approximately US$ 86.1 million). In June 2021, HBYS received a completion confirmation from the government and became entitled to a land compensation bonus of RMB 110.3 million (approximately US$ 17.0 million) and recorded a gain before tax of RMB 106.8 million (approximately US$ 16.4 million) after deducting costs of RMB 3.5 million (approximately US $0.6 million). (b) The summarized statement of operations for HBYS for the year ended December 31, 2021 includes the period when HBYS was the Group’s equity investee from January 1, 2021 to September 28, 2021, the completion date of the divestment. The Group has accounted for the investment in HBYS under the equity method up to September 28, 2021. (c) The main entity within the SHPL group has been granted the High and New Technology Enterprise (“HNTE”) status. Accordingly, the entity was eligible to use a preferential income tax rate of 15% for the years ended December 31, 2022, 2021 and 2020. (d) Net income is before elimination of unrealized profits on transactions with the Group. The amounts eliminated were approximately US $110,000 , US $36,000 and nil for the years ended December 31, 2022, 2021 and 2020 respectively.
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees	SHPL HBYS 2022 2021 2020 2021 2020 (in US$’000) Opening net assets after non-controlling interests as at January 1 145,741 152,714 146,759 119,424 44,541 Net income attributable to the shareholders of equity investee 99,716 89,429 67,004 31,839 91,283 Purchase of additional interests in a subsidiary of an equity investee (note) — — — — (347) Dividends declared (87,436) (99,744) (72,179) (106,159) (20,756) Other comprehensive (loss)/income (16,588) 3,342 11,130 1,387 4,703 Closing net assets after non-controlling interests as at December 31 141,433 145,741 152,714 46,491 119,424 Group’s share of net assets 70,717 72,871 76,357 23,246 59,712 Goodwill 2,872 3,128 3,051 — — Elimination of unrealized profits on downstream sales (128) — — — — Divestment (Note 22) — — — (23,246) — Carrying amount of investments as at December 31 73,461 75,999 79,408 — 59,712 Note: During the year ended December 31, 2020, HBYS acquired an additional 30% interest in a subsidiary and after the acquisition, it became a wholly owned subsidiary of HBYS.
Schedule of equity investees capital commitments	December 31, 2022 (in US$’000) Property, plant and equipment Contracted but not provided for 1,307

Accounts Payable (Tables)

Accounts Payable (Tables)	12 Months Ended
Accounts Payable (Tables)	Dec. 31, 2022
Accounts Payable
Schedule of accounts payable	December 31, 2022 2021 (in US$’000) Accounts payable—third parties 68,193 39,115 Accounts payable—non-controlling shareholders of subsidiaries (Note 23(iv)) 2,922 2,062 71,115 41,177
Schedule of aging analysis based on the relevant invoice dates	December 31, 2022 2021 (in US$’000) Not later than 3 months 60,553 35,615 Between 3 months to 6 months 7,216 3,705 Between 6 months to 1 year 2,137 588 Later than 1 year 1,209 1,269 71,115 41,177

Other Payables, Accruals and _2

Other Payables, Accruals and Advance Receipts (Tables)	12 Months Ended
Other Payables, Accruals and Advance Receipts (Tables)	Dec. 31, 2022
Other Payables, Accruals and Advance Receipts
Schedule of other payables, accruals and advance receipts	December 31, 2022 2021 (in US$’000) Accrued research and development expenses 156,134 116,134 Accrued salaries and benefits 42,442 41,786 Accrued capital expenditures 21,390 11,343 Accrued administrative and other general expenses 14,491 15,836 Accrued selling and marketing expenses 11,564 8,412 Deposits 3,616 2,111 Amounts due to related parties (Note 23(ii)) 2,101 1,915 Deferred government grants 673 314 Others 12,210 12,988 264,621 210,839

Bank Borrowings (Tables)

Bank Borrowings (Tables)	12 Months Ended
Bank Borrowings (Tables)	Dec. 31, 2022
Bank Borrowings
Schedule of bank borrowings	December 31, 2022 2021 (in US$’000) Current — 26,905 Non-current 18,104 —
Schedule of maturities of bank borrowings	December 31, 2022 2021 (in US$’000) Not later than 1 year — 26,923 Between 1 to 3 years 360 — Between 3 to 4 years 839 — Between 4 to 5 years 1,079 — Later than 5 years 15,826 — 18,104 26,923

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
Commitments and Contingencies (Tables)	Dec. 31, 2022
Commitments and Contingencies
Schedule of capital commitments	December 31, 2022 (in US$’000) Property, plant and equipment Contracted but not provided for 22,130

Share-based Compensation (Table

Share-based Compensation (Tables)	12 Months Ended
Share-based Compensation (Tables)	Dec. 31, 2022
Hutchmed Share Option Scheme
Share-based Compensation
Schedule of share option activity and related information	Weighted average Number of Weighted average remaining Aggregate share exercise price in contractual life intrinsic value options US$ per share (years) (in US$’000) Outstanding at January 1, 2020 19,432,560 4.48 6.67 24,316 Granted 15,437,080 4.66 Exercised (480,780) 1.23 Cancelled (4,486,200) 5.02 Expired (741,670) 6.46 Outstanding at December 31, 2020 29,160,990 4.49 7.21 53,990 Granted 10,174,840 5.96 Exercised (815,190) 3.01 Cancelled (1,287,650) 5.50 Expired (42,400) 5.52 Outstanding at December 31, 2021 37,190,590 4.88 7.04 82,377 Granted (note) 7,680,820 2.26 Exercised (244,490) 1.98 Cancelled (3,849,905) 5.19 Expired (1,255,620) 5.66 Outstanding at December 31, 2022 39,521,395 4.34 6.55 11,525 Vested and exercisable at December 31, 2021 16,077,770 4.24 4.91 46,491 Vested and exercisable at December 31, 2022 21,113,285 4.57 4.80 6,288 Note: Includes 861,220 share options (represented by 172,244 ADS) granted to an executive director in May 2022 where the number of share options exercisable is subject to a performance target based on a market condition covering the 3-year period from 2022 to 2024 which has been reflected in estimating the grant date fair value. The grant date fair value of such awards is US$0.24 per share using the Polynomial model. Vesting of such award will occur in March 2025.
Schedule of fair value of share options granted	Year Ended December 31, 2022 2021 2020 Weighted average grant date fair value of share options (in US$ per share) 0.85 2.24 1.76 Significant inputs into the valuation model (weighted average): Exercise price (in US$ per share) 2.26 5.96 4.66 Share price at effective date of grant (in US$ per share) 2.22 5.91 4.66 Expected volatility (note (a)) 46.7 % 41.1 % 42.6 % Risk-free interest rate (note (b)) 2.98 % 1.62 % 0.59 % Contractual life of share options (in years) 10 10 10 Expected dividend yield (note (c)) 0 % 0 % 0 % Notes: (a) The Company calculated its expected volatility with reference to the historical volatility prior to the issuances of share options. (b) For share options exercisable into ADS, the risk-free interest rates reference the U.S. Treasury yield curves because the Company’s ADS are currently listed on the NASDAQ and denominated in US$. For share options exercisable into ordinary shares, the risk-free interest rates reference the sovereign yield of the United Kingdom because the Company’s ordinary shares are currently listed on AIM and denominated in £. (c) The Company has not declared or paid any dividends and does not currently expect to do so prior to the exercise of the granted share options, and therefore uses an expected dividend yield of zero in the Polynomial model.
Schedule of share option exercises	Year Ended December 31, 2022 2021 2020 (in US$’000) Cash received from share option exercises 174 2,452 593 Total intrinsic value of share option exercises 92 2,999 2,475
Schedule of share-based compensation expenses	Year Ended December 31, 2022 2021 2020 (in US$’000) Research and development expenses 4,803 8,460 4,061 Selling and administrative expenses 1,803 7,783 4,586 Cost of revenues 130 122 90 6,736 16,365 8,737
LTIP
Share-based Compensation
Schedule of granted awards	Maximum cash amount Covered Performance target Grant date (in US$ millions) financial years determination date April 20, 2020 5.3 2019 note (a) April 20, 2020 37.4 2020 note (b) April 20, 2020 1.9 note (c) note (c) April 20, 2020 0.2 note (d) note (d) August 12, 2020 2.1 2020 note (b) August 12, 2020 0.3 note (c) note (c) March 26, 2021 57.3 2021 note (b) September 1, 2021 7.3 2021 note (b) September 1, 2021 0.5 note (c) note (c) October 20, 2021 1.7 note (c) note (c) December 14, 2021 0.1 note (c) note (c) December 14, 2021 0.1 note (d) note (d) May 23, 2022 60.4 2022 note (b) September 13, 2022 3.8 2022 note (b) September 13, 2022 1.7 note (c) note (c) Notes: (a) This award does not stipulate performance targets and vesting occurs two business days after the announcement of the Group’s annual results for the financial year falling two years after the covered financial year to which the LTIP award relates. (b) The annual performance target determination date is the date of the announcement of the Group’s annual results for the covered financial year and vesting occurs two business days after the announcement of the Group’ s annual results for the financial year falling two years after the covered financial year to which the LTIP award relates . (c) This award does not stipulate performance targets and is subject to a vesting schedule of 25% on each of the first , second , third and fourth anniversaries of the date of grant . (d) This award does not stipulate performance targets and will be vested on the first anniversary of the date of grant.
Schedule of treasury shares (in the form of ordinary shares or ADS of the Company) held by the Trustee	Number of Cost treasury shares (in US$’000) As at January 1, 2020 941,310 6,079 Purchased 3,281,920 12,904 Vested (712,555) (4,828) As at December 31, 2020 3,510,675 14,155 Purchased 4,907,045 27,309 Vested (278,545) (1,450) As at December 31, 2021 8,139,175 40,014 Purchased 14,028,465 48,084 Vested (2,566,265) (12,034) As at December 31, 2022 19,601,375 76,064
Schedule of share-based compensation expenses	Year Ended December 31, 2022 2021 2020 (in US$’000) Research and development expenses 16,101 16,880 7,252 Selling and administrative expenses 7,376 8,451 3,552 Cost of revenues 373 294 101 23,850 25,625 10,905 Recorded with a corresponding credit to: Liability 6,216 14,263 7,778 Additional paid-in capital 17,634 11,362 3,127 23,850 25,625 10,905

Revenues (Tables)

Revenues (Tables)	12 Months Ended
Revenues (Tables)	Dec. 31, 2022
Schedule of disaggregated revenue	Year Ended December 31, 2022 Oncology/ Other Immunology Ventures Total (in US$’000) Goods—Marketed Products 57,057 — 57,057 Goods—Distribution — 262,565 262,565 Services —Commercialization—Marketed Products 41,275 — 41,275 —Collaboration Research and Development 23,741 — 23,741 —Research and Development 507 — 507 Royalties 26,310 — 26,310 Licensing 14,954 — 14,954 163,844 262,565 426,409 Third parties 163,337 257,272 420,609 Related parties (Note 23(i)) 507 5,293 5,800 163,844 262,565 426,409 Year Ended December 31, 2021 Oncology/ Other Immunology Ventures Total (in US$’000) Goods—Marketed Products 33,937 — 33,937 Goods—Distribution — 236,518 236,518 Services —Commercialization—Marketed Products 27,428 — 27,428 —Collaboration Research and Development 18,995 — 18,995 —Research and Development 525 — 525 Royalties 15,064 — 15,064 Licensing 23,661 — 23,661 119,610 236,518 356,128 Third parties 119,085 232,262 351,347 Related parties (Note 23(i)) 525 4,256 4,781 119,610 236,518 356,128 Year Ended December 31, 2020 Oncology/ Other Immunology Ventures Total (in US$’000) Goods—Marketed Products 11,329 — 11,329 Goods—Distribution — 197,761 197,761 Services —Commercialization—Marketed Products 3,734 — 3,734 —Collaboration Research and Development 9,771 — 9,771 —Research and Development 491 — 491 Royalties 4,890 — 4,890 30,215 197,761 227,976 Third parties 29,724 192,277 222,001 Related parties (Note 23(i)) 491 5,484 5,975 30,215 197,761 227,976
Schedule of liability balances from contracts with customers	December 31, 2022 2021 (in US$’000) Deferred revenue Current—Oncology/Immunology segment (note (a)) 11,817 11,078 Current—Other Ventures segment (note (b)) 1,530 1,196 13,347 12,274 Non-current—Oncology/Immunology segment (note (a)) 190 878 Total deferred revenue (note (c) and (d)) 13,537 13,152 Notes: (a) Oncology /Immunology segment deferred revenue relates to invoiced amounts for royalties where the customer has not yet completed the in-market sale, unamortized upfront and milestone payments and advance consideration received for cost reimbursements which are attributed to research and development services that have not yet been rendered as at the reporting date. (b) Other Ventures segment deferred revenue relates to payments in advance from customers for goods that have not been transferred and services that have not been rendered to the customer as at the reporting date. (c) Estimated deferred revenue to be recognized over time as from the date indicated is as follows: December 31, 2022 2021 (in US$’000) Not later than 1 year 13,347 12,274 Between 1 to 2 years 150 476 Between 2 to 3 years 40 255 Between 3 to 4 years — 147 13,537 13,152 (d) As at January 1, 2022, deferred revenue was US$13.2 million, of which US$11.8 million was recognized during the year ended December 31, 2022.
License and collaboration agreement with Eli Lilly
Schedule of summarized upfront and cumulative milestone payments	Upfront and cumulative milestone payments according to the Lilly Agreement received up to December 31, 2022 are summarized as follows: (in US$’000) Upfront payment 6,500 Development milestone payments achieved 40,000
Schedule of group recognized revenue under the agreement	Year Ended December 31, 2022 2021 2020 (in US$’000) Goods—Marketed Products 14,407 15,792 11,329 Services—Commercialization—Marketed Products 41,275 27,428 3,734 —Collaboration Research and Development 8,054 4,491 1,991 Royalties 13,954 10,292 4,890 77,690 58,003 21,944
License and collaboration agreement with AstraZeneca
Schedule of summarized upfront and cumulative milestone payments	Upfront and cumulative milestone payments according to the AZ Agreement received up to December 31, 2022 are summarized as follows: (in US$’000) Upfront payment 20,000 Development milestone payments achieved 40,000 First-sale milestone payment achieved 25,000
Schedule of group recognized revenue under the agreement	Year Ended December 31, 2022 2021 2020 (in US$’000) Goods—Marketed Products 9,904 6,509 — Services—Collaboration Research and Development 14,467 14,113 7,780 Royalties 12,356 4,772 — Licensing 14,954 23,661 — 51,681 49,055 7,780

Research and Development Expe_2

Research and Development Expenses (Tables)	12 Months Ended
Research and Development Expenses (Tables)	Dec. 31, 2022
Research and Development Expenses
Summary of research and development expenses	Year Ended December 31, 2022 2021 2020 (in US$’000) Clinical trial related costs 255,935 190,051 105,869 Personnel compensation and related costs 119,306 91,639 63,542 Other research and development expenses 11,652 17,396 5,365 386,893 299,086 174,776

Government Grants (Tables)

Government Grants (Tables)	12 Months Ended
Government Grants (Tables)	Dec. 31, 2022
Government Grants
Schedule of government grants recognized	Year Ended December 31, 2022 2021 2020 (in US$’000) Research and development expenses 4,556 15,515 1,607 Other income 1,434 318 539 5,990 15,833 2,146

Gain on divestment of an equi_2

Gain on divestment of an equity investee (Tables)	12 Months Ended
Gain on divestment of an equity investee (Tables)	Dec. 31, 2022
Gain on divestment of an equity investee
Schedule of gain on divestment of equity investee	Year Ended December 31, 2021 (in US$’000) Proceeds 159,118 Dividend receivables–third party (Note 7) 46,387 205,505 Less: Group’s share of net assets of HBYS (Note 11(iii)) (23,246) Dividend receivables–HBYS (52,887) Withholding tax liability on dividend receivables–HBYS 2,644 Branding liability (12,721) Accumulated other comprehensive income and reserves 1,911 Transaction costs and others 104 Gain on divestment of an equity investee 121,310 Less: Capital gain tax (14,373) Less: Gain on divestment of an equity investee attributable to non-controlling interests (24,010) Gain on divestment of an equity investee attributable to the Group 82,927

Significant Transactions with_2

Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries (Tables)	12 Months Ended
	Dec. 31, 2022
Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries
Schedule of transactions with related parties	Year Ended December 31, 2022 2021 2020 (in US$’000) Sales to: Indirect subsidiaries of CK Hutchison 3,610 4,256 5,484 An equity investee 1,683 — — 5,293 4,256 5,484 Revenue from research and development services from: An equity investee 507 525 491 Purchases from: Equity investees 4,231 3,770 3,347 Rendering of marketing services from: Indirect subsidiaries of CK Hutchison 227 350 332 An equity investee 127 — — 354 350 332 Rendering of management services from: An indirect subsidiary of CK Hutchison 980 971 955 Entered brand license agreement with: An indirect subsidiary of CK Hutchison (note (a)) — 12,721 —
Schedule of balances with related parties	December 31, 2022 2021 (in US$’000) Accounts receivable—related parties Indirect subsidiaries of CK Hutchison (note (b)) 1,319 1,166 An equity investee (note (b)) 2,198 — 3,517 1,166 Other receivables, prepayments and deposits An equity investee (note (b)) 998 1,149 Other payables, accruals and advance receipts Indirect subsidiaries of CK Hutchison (note (c) and (e)) 1,953 1,915 An equity investee (note (b) and (d)) 148 — 2,101 1,915 Other non-current liabilities An equity investee (note (d)) 755 736 An indirect subsidiary of CK Hutchison (note (e)) 8,716 9,766 9,471 10,502 Notes: (a) The branding rights for HBYS from an indirect subsidiary of CK Hutchison were recognized in the consolidated statements of operations through the gain on divestment of an equity investee (Note 22). For the years ended December 31, 2022 and 2021, the Group paid US $1,538,000 for each of the two years. (b) Balances with related parties are unsecured, repayable on demand and interest-free. The carrying values of balances with related parties approximate their fair values due to their short-term maturities. (c) Amounts due to indirect subsidiaries of CK Hutchison are unsecured, repayable on demand and interest-bearing if not settled within one month . (d) Other deferred income represents amounts recognized from granting of commercial, promotion and marketing rights. (e) As at December 31, 2022 and 2021, a branding liability payable of US $1,538,000 was included in amounts due to related parties under other payables, accruals and advance receipts. As at December 31, 2022 and 2021, US $8,716,000 and US $9,766,000 of the branding liability payable was included in other non-current liabilities.
Schedule of transactions with non-controlling shareholders of subsidiaries	Year Ended December 31, 2022 2021 2020 (in US$’000) Sales 47,611 41,974 36,500 Purchases 7,936 10,660 13,936 Dividends declared 25,600 9,894 1,462
Schedule of balances with non-controlling shareholders of subsidiaries	December 31, 2022 2021 (in US$’000) Accounts receivable 11,139 8,436 Accounts payable 2,922 2,062

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Dec. 31, 2022
Income Taxes
Schedule of components of income tax (benefit)/expense	Year Ended December 31, 2022 2021 2020 (in US$’000) Current tax HK (note (a)) 301 310 457 PRC (note (b) and (c)) 2,580 15,909 872 U.S. and others (note (d)) 399 417 219 Total current tax 3,280 16,636 1,548 Deferred income tax (benefit)/expense (3,563) (4,718) 3,281 Income tax (benefit)/ expense (283) 11,918 4,829 Notes: (a) The Company, three subsidiaries incorporated in the British Virgin Islands and its Hong Kong subsidiaries are subject to Hong Kong profits tax. Under the Hong Kong two-tiered profits tax rates regime, the first HK $2.0 million (US $0.3 million) of assessable profits of qualifying corporations will be taxed at 8.25% , with the remaining assessable profits taxed at 16.5% . Hong Kong profits tax has been provided for at the relevant rates on the estimated assessable profits less estimated available tax losses, if any, of these entities as applicable. (b) Taxation in the PRC has been provided for at the applicable rate on the estimated assessable profits less estimated available tax losses, if any, in each entity . Under the PRC Enterprise Income Tax Law (the “EIT Law”), the standard enterprise income tax rate is 25% . In addition, the EIT Law provides for a preferential tax rate of 15% for companies which qualify as HNTE. HUTCHMED Limited and its wholly-owned subsidiary HUTCHMED (Suzhou) Limited qualify as a HNTE up to December 31, 2022 and 2023 respectively. Pursuant to the EIT law, a 10% withholding tax is levied on dividends paid by PRC companies to their foreign investors. A lower withholding tax rate of 5% is applicable under the China-HK Tax Arrangement if direct foreign investors with at least 25% equity interest in the PRC companies are Hong Kong tax residents, and meet the conditions or requirements pursuant to the relevant PRC tax regulations regarding beneficial ownership. Since the equity holders of the equity investees of the Company are Hong Kong incorporated companies and Hong Kong tax residents, and meet the aforesaid conditions or requirements, the Company has used 5% to provide for deferred tax liabilities on retained earnings which are anticipated to be distributed. As at December 31, 2022, 2021 and 2020, the amounts accrued in deferred tax liabilities relating to withholding tax on dividends were determined on the basis that 100% of the distributable reserves of the equity investees operating in the PRC will be distributed as dividends. Pursuant to PRC Bulletin on Issues of Enterprise Income Tax and Indirect Transfers of Assets by Non-PRC Resident Enterprises, an indirect transfer of a PRC resident enterprise by a non-PRC resident enterprise, via the transfer of an offshore intermediate holding company, shall be subject to PRC withholding tax under certain conditions. (c) Current tax in the PRC for the year ended December 31, 2021 includes US$ 14.4 million arising from the indirect disposal of HBYS (Note 22), calculated at 10% of the excess of the disposal proceeds over the cost of acquiring the equity investment in HBYS. (d) The Company’s subsidiary in the U.S. with operations primarily in New Jersey is subject to U.S. taxes, primarily federal and state taxes, which have been provided for at approximately 21% (federal) and 0% to 11.5% (state tax) on the estimated assessable profit over the reporting years. Certain income receivable by the Company is subject to U.S. withholding tax of 30%. Two of the Group’s subsidiaries are subject to corporate tax in the UK and EU countries at 19% and 15% to 25%, respectively, on the estimated assessable profits in relation to their presence in these countries.
Schedule of reconciliation of the Group's reported income tax expense to the theoretical tax amount	Year Ended December 31, 2022 2021 2020 (in US$’000) Loss before income taxes and equity in earnings of equity investees (410,422) (215,740) (189,734) Tax calculated at the statutory tax rate of the Company (67,720) (35,597) (31,306) Tax effects of: Different tax rates applicable in different jurisdictions 6,316 136 4,025 Tax valuation allowance 93,243 63,975 46,321 Preferential tax rate difference (171) (148) (154) Preferential tax deduction and credits (40,791) (29,838) (18,814) Expenses not deductible for tax purposes 8,886 8,684 3,476 Withholding tax on undistributed earnings of PRC entities 2,492 3,153 3,962 Others (2,538) 1,553 (2,681) Income tax (benefit)/expense (283) 11,918 4,829
Schedule of significant components of deferred tax assets and liabilities	December 31, 2022 2021 (in US$’000) Deferred tax assets Cumulative tax losses 264,751 186,832 Others 15,254 12,269 Total deferred tax assets 280,005 199,101 Less: Valuation allowance (264,639) (189,700) Deferred tax assets 15,366 9,401 Deferred tax liabilities Undistributed earnings from PRC entities 2,686 2,720 Others 24 45 Deferred tax liabilities 2,710 2,765
Schedule of movements in deferred tax assets and liabilities	2022 2021 2020 (in US$’000) As at January 1 6,636 (3,548) (2,343) Utilization of previously recognized withholding tax on undistributed earnings 2,186 5,148 2,323 (Charged)/Credited to the consolidated statements of operations Withholding tax on undistributed earnings of PRC entities (2,492) (3,153) (3,962) Deferred tax on amortization of intangible assets 19 19 18 Deferred tax on temporary differences, tax loss carried forward and research tax credits 6,036 7,852 663 Divestment of an equity investee — 370 — Exchange differences 271 (52) (247) As at December 31 12,656 6,636 (3,548)
Summary of cumulative tax loss carryforwards	December 31, 2022 2021 (in US$’000) No expiry date 71,325 60,450 2022 — 200 2023 — — 2024 3,763 4,099 2025 36,098 39,321 2026 48,150 52,452 2027 61,808 67,217 2028 107,297 117,376 2029 175,853 191,554 2030 243,918 265,696 2031 389,761 432,278 2032 610,800 — 1,748,773 1,230,643
Summary of changes in deferred tax valuation allowance	2022 2021 2020 (in US$’000) As at January 1 189,700 122,378 69,399 Charged to consolidated statements of operations 93,243 63,975 46,321 Utilization of previously unrecognized tax losses (1) (186) (114) Write-off of tax losses (125) — — Others — (9) — Exchange differences (18,178) 3,542 6,772 As at December 31 264,639 189,700 122,378
Schedule of income tax payable	2022 2021 2020 (in US$’000) As at January 1 15,546 1,120 1,828 Current tax 3,280 16,636 1,548 Withholding tax upon dividend declaration from PRC entities 2,186 5,148 2,323 Tax paid (note) (18,891) (5,014) (5,940) Reclassification from non-current withholding tax — — 812 Reclassification (from)/to prepaid tax (241) 25 485 Divestment of an equity investee (Note 22) — (2,644) — Exchange difference (768) 275 64 As at December 31 1,112 15,546 1,120 Note: The amount for 2022 includes US$14.4 million capital gain tax paid for gain on divestment of HBYS (Note 22). The amount for 2020 is net of the PRC Enterprise Income Tax refund of US$0.4 million received by HSPL.

Losses Per Share (Tables)

Losses Per Share (Tables)	12 Months Ended
Losses Per Share (Tables)	Dec. 31, 2022
Losses Per Share
Schedule of basic losses per share	Year Ended December 31, 2022 2021 2020 Weighted average number of outstanding ordinary shares in issue 847,143,540 792,684,524 697,931,437 Net loss attributable to the Company (US$’000) (360,835) (194,648) (125,730) Losses per share attributable to the Company (US$ per share) (0.43) (0.25) (0.18)

Segment Reporting (Tables)

Segment Reporting (Tables)	12 Months Ended
Segment Reporting (Tables)	Dec. 31, 2022
Segment Reporting
Schedule of segment information for the reportable segments	Year Ended December 31, 2022 Oncology/Immunology Marketed Other R&D Products Ventures U.S. and PRC Others Subtotal PRC Subtotal PRC Unallocated Total (in US$’000) Revenue from external customers 39,202 — 39,202 124,642 163,844 262,565 — 426,409 Interest income 674 4 678 — 678 272 8,649 9,599 Interest expense — — — — — — (652) (652) Equity in earnings of equity investees, net of tax 5 — 5 — 5 49,748 — 49,753 Income tax (expense)/benefit (552) 6,053 5,501 (631) 4,870 (1,345) (3,242) 283 Net (loss)/income attributable to the Company (215,834) (186,945) (402,779) 17,367 (385,412) 54,604 (30,027) (360,835) Depreciation/amortization (7,576) (484) (8,060) — (8,060) (299) (305) (8,664) Additions to non-current assets (other than financial instruments and deferred tax assets) 47,563 725 48,288 — 48,288 664 21 48,973 December 31, 2022 Oncology/Immunology Marketed Other R&D Products Ventures U.S. and PRC Others Subtotal PRC Subtotal PRC Unallocated Total (in US$’000) Total assets 221,337 30,281 251,618 45,984 297,602 235,500 496,343 1,029,445 Property, plant and equipment 72,775 2,103 74,878 — 74,878 735 334 75,947 Right-of-use assets 3,350 3,167 6,517 — 6,517 1,308 897 8,722 Leasehold land 11,830 — 11,830 — 11,830 — — 11,830 Goodwill — — — — — 3,137 — 3,137 Other intangible asset — — — — — 85 — 85 Investments in equity investees 316 — 316 — 316 73,461 — 73,777 Year Ended December 31, 2021 Oncology/Immunology Marketed Other R&D Products Ventures U.S. and PRC Others Subtotal PRC Subtotal PRC Unallocated Total (in US$’000) Revenue from external customers 43,181 — 43,181 76,429 119,610 236,518 — 356,128 Interest income 809 3 812 — 812 282 982 2,076 Interest expense — — — — — — (592) (592) Equity in earnings of equity investees, net of tax 20 — 20 — 20 60,597 — 60,617 Income tax benefit/(expense) 22 7,160 7,182 (1,320) 5,862 (14,573) (3,207) (11,918) Net (loss)/income attributable to the Company (143,528) (152,235) (295,763) 4,032 (291,731) 142,890 (45,807) (194,648) Depreciation/amortization (6,436) (197) (6,633) — (6,633) (318) (239) (7,190) Additions to non-current assets (other than financial instruments and deferred tax assets) 25,295 4,321 29,616 — 29,616 1,056 327 30,999 December 31, 2021 Oncology/Immunology Marketed Other R&D Products Ventures U.S. and PRC Others Subtotal PRC Subtotal PRC Unallocated Total (in US$’000) Total assets 166,802 19,870 186,672 35,978 222,650 225,898 924,113 1,372,661 Property, plant and equipment 38,049 1,862 39,911 — 39,911 746 618 41,275 Right-of-use assets 4,798 3,768 8,566 — 8,566 1,827 1,486 11,879 Leasehold land 13,169 — 13,169 — 13,169 — — 13,169 Goodwill — — — — — 3,380 — 3,380 Other intangible asset — — — — — 163 — 163 Investments in equity investees 480 — 480 — 480 75,999 — 76,479 Year Ended December 31, 2020 Oncology/Immunology Marketed Other R&D Products Ventures U.S. and PRC Others Subtotal PRC Subtotal PRC Unallocated Total (in US$’000) Revenue from external customers 10,262 — 10,262 19,953 30,215 197,761 — 227,976 Interest income 461 — 461 — 461 167 2,608 3,236 Interest expense — — — — — — (787) (787) Equity in earnings of equity investees, net of tax (97) — (97) — (97) 79,143 — 79,046 Income tax (expense)/benefit (402) 642 240 (167) 73 (824) (4,078) (4,829) Net (loss)/income attributable to the Company (120,096) (62,683) (182,779) 7,282 (175,497) 72,785 (23,018) (125,730) Depreciation/amortization (5,458) (119) (5,577) — (5,577) (292) (192) (6,061) Additions to non-current assets (other than financial instruments and deferred tax assets) 22,574 754 23,328 — 23,328 817 1,090 25,235
Summary of customers which accounted for over 10% of the Group's revenue	Year Ended December 31, 2022 2021 2020 (in US$’000) Customer A 75,606 56,082 (note) Customer B 51,681 49,055 (note) Customer C 47,611 41,974 36,500 Customer D (note) (note) 25,993 Note: Customer did not account for over 10% of the Group’s revenue during the year.

Note to Consolidated Statemen_2

Note to Consolidated Statements of Cash Flows (Tables)	12 Months Ended
Note to Consolidated Statements of Cash Flows (Tables)	Dec. 31, 2022
Note to Consolidated Statements of Cash Flows
Schedule of reconciliation of net loss for the year to net cash used in operating activities	Year Ended December 31, 2022 2021 2020 (in US$’000) Net loss (360,386) (167,041) (115,517) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization 8,664 7,190 6,061 Amortization of finance costs 18 44 43 Loss on disposals of property, plant and equipment 111 70 85 Provision for excess and obsolete inventories 293 (23) 65 Provision for credit losses, net 43 (76) 77 Share-based compensation expense—share options 6,736 16,365 8,737 Share-based compensation expense—LTIP 23,850 25,625 10,905 Equity in earnings of equity investees, net of tax (49,753) (60,617) (79,046) Dividends received from SHPL and HBYS 43,718 49,872 86,708 Impairment of investment in other equity investee 130 — — Changes in right-of-use assets 2,721 (3,727) (2,197) Fair value losses on warrant 2,452 12,548 — Gain from divestment of HBYS — (121,310) — Unrealized currency translation loss/(gain) 13,274 (2,505) (6,149) Changes in income tax balances (19,174) 6,904 (1,111) Changes in working capital Accounts receivable (14,451) (35,634) (4,693) Other receivables, prepayments and deposits 12,072 (5,758) (9,602) Inventories (21,213) (16,002) (3,623) Accounts payable 29,938 9,565 7,651 Other payables, accruals and advance receipts 52,629 66,224 37,472 Lease liabilities (2,701) 3,079 2,258 Deferred revenue 386 11,071 (158) Other 2,044 (87) (32) Total changes in working capital 58,704 32,458 29,273 Net cash used in operating activities (268,599) (204,223) (62,066)

Organization and Nature of Bu_2

Organization and Nature of Business (Details) - USD ($)	12 Months Ended
Organization and Nature of Business (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Organization and Nature of Business
Accumulated losses	$ 971,481,000	$ 610,328,000
Cash and cash equivalents	313,278,000	377,542,000
Short-term investments	317,718,000	634,158,000
Unutilized bank borrowing facilities	140,289,000	157,430,000
Dividends received	$ 43,718,000	$ 49,872,000	$ 86,708,000

Particulars of Principal Subs_3

Particulars of Principal Subsidiaries and Equity Investee (Details)	Dec. 31, 2022	Dec. 31, 2021
Shanghai Hutchison Pharmaceuticals Limited ("SHPL") \| PRC
Subsidiary or Equity Method Investee
Equity interest attributable to the Group - Equity investee (as a percent)	50%	50%
HUTCHMED Limited \| PRC
Subsidiary or Equity Method Investee
Equity interest attributable to the Group - Subsidiaries (as a percent)	99.75%	99.75%
HUTCHMED International Corporation \| US
Subsidiary or Equity Method Investee
Equity interest attributable to the Group - Subsidiaries (as a percent)	99.75%	99.75%
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Company Limited ("HSPL") \| PRC
Subsidiary or Equity Method Investee
Equity interest attributable to the Group - Subsidiaries (as a percent)	50.87%	50.87%
Hutchison Healthcare Limited \| Hong Kong
Subsidiary or Equity Method Investee
Equity interest attributable to the Group - Subsidiaries (as a percent)	100%	100%
Hutchison Hain Organic (Hong Kong) Limited ("HHOHK") (note) \| PRC
Subsidiary or Equity Method Investee
Equity interest attributable to the Group - Subsidiaries (as a percent)	50%	50%
HUTCHMED Science Nutrition Limited \| Hong Kong
Subsidiary or Equity Method Investee
Equity interest attributable to the Group - Subsidiaries (as a percent)	100%	100%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Lease period of leasehold land (in years)	50 years
Ordinary shares, par value (in US$ per share)	$ 0.10	$ 0.10
Contributions to defined contribution plans	$ 11,795,000	$ 7,181,000	$ 2,660,000
Buildings
Property plant and equipment useful life (in years)	20 years
Plant and equipment \| Minimum
Property plant and equipment useful life (in years)	5 years
Plant and equipment \| Maximum
Property plant and equipment useful life (in years)	10 years
Furniture and fixtures, other equipment and motor vehicles \| Minimum
Property plant and equipment useful life (in years)	4 years
Furniture and fixtures, other equipment and motor vehicles \| Maximum
Property plant and equipment useful life (in years)	5 years
Leasehold improvements \| Maximum
Property plant and equipment useful life (in years)	5 years
Other expense and income
Net foreign currency exchange (losses)/gains	$ (5,704,000)	$ 1,671,000	$ 3,265,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Revenue Recognition (Details)	12 Months Ended
	Dec. 31, 2022
Minimum
Nature of goods and services
Payment terms (in days)	45 days
Maximum
Nature of goods and services
Payment terms (in days)	180 days

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Profit Appropriation and Statutory Reserves (Details)	12 Months Ended
	Dec. 31, 2022
Summary of Significant Accounting Policies
Minimum percentage of after-tax profits appropriated to the general reserve fund	10%
Maximum percentage of after-tax profits appropriated to the general reserve fund	50%
Minimum percentage of after-tax profits appropriated to the statutory surplus fund	10%
Maximum percentage of after-tax profits appropriated to the statutory surplus fund	50%

Fair Value Disclosures (Details

Fair Value Disclosures (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Aug. 07, 2021
Fair value measurements
Warrant (Note 19)	$ 2,452	$ 15,000
Level 2
Fair value measurements
Warrant (Note 19)	$ 2,452

Cash and Cash Equivalents and_3

Cash and Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents and Short-term Investments
Cash at bank and on hand	$ 178,326	$ 104,620
Bank deposits maturing in three months or less	134,952	272,922
Cash and cash equivalents	313,278	377,542
Bank deposits maturing over three months (note)	317,718	634,158
Cash and cash equivalents and short-term investments	$ 630,996	$ 1,011,700
Minimum
Cash and Cash Equivalents and Short-term Investments
Maturities for short-term investments (in days)	91 days	91 days
Maximum
Cash and Cash Equivalents and Short-term Investments
Maturities for short-term investments (in days)	99 days	180 days

Cash and Cash Equivalents and_4

Cash and Cash Equivalents and Short-term Investments - Denominated (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents and Short-term Investments
Cash and cash equivalents and short-term investments	$ 630,996	$ 1,011,700
US$
Cash and Cash Equivalents and Short-term Investments
Cash and cash equivalents and short-term investments	533,173	895,935
RMB
Cash and Cash Equivalents and Short-term Investments
Cash and cash equivalents and short-term investments	79,319	53,455
Hong Kong dollar ("HK$")
Cash and Cash Equivalents and Short-term Investments
Cash and cash equivalents and short-term investments	16,721	60,535
GBP
Cash and Cash Equivalents and Short-term Investments
Cash and cash equivalents and short-term investments	1,370	1,090
Euro
Cash and Cash Equivalents and Short-term Investments
Cash and cash equivalents and short-term investments	$ 413	$ 685

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts Receivable
Accounts receivable-third parties	$ 94,531	$ 82,434
Accounts receivable-related parties (Note 23(ii))	3,517	1,166
Allowance for credit losses	(60)	(20)
Accounts receivable, net	$ 97,988	$ 83,580

Accounts Receivable - Aging ana

Accounts Receivable - Aging analysis based on the relevant invoice dates (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts Receivable
Accounts receivable-third parties	$ 94,531	$ 82,434
Not later than 3 months
Accounts Receivable
Accounts receivable-third parties	84,007	78,288
Between 3 months to 6 months
Accounts Receivable
Accounts receivable-third parties	7,478	2,867
Between 6 months to 1 year
Accounts Receivable
Accounts receivable-third parties	1,947	78
Later than 1 year
Accounts Receivable
Accounts receivable-third parties	$ 1,099	$ 1,201

Accounts Receivable - Movements

Accounts Receivable - Movements on the allowance for credit losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Allowance for Doubtful Accounts Receivable
As at January 1	$ 20	$ 95	$ 16
Increase in allowance for credit losses	150	16	95
Decrease in allowance due to subsequent collection	(107)	(92)	(18)
Exchange difference	(3)	1	2
As at December 31	$ 60	$ 20	$ 95

Other receivables, prepayment_3

Other receivables, prepayments and deposits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Other receivables, prepayments and deposits
Dividend receivables (Note 22)	$ 26,246	$ 46,387
Prepayments	22,329	14,128
Value-added tax receivables	1,491	16,616
Deposits	1,214	1,255
Amounts due from related parties (Note 23(ii))	998	1,149
Others	1,936	1,506
Total	54,214	81,041
Allowance for credit losses of other receivables, prepayments and deposits	$ 0	$ 0

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventories
Raw materials	$ 27,392	$ 15,837
Finished goods	29,298	19,918
Total	$ 56,690	$ 35,755

Property, Plant and Equipment_2

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cost
As at January 1	$ 74,174	$ 50,451
Additions	46,282	23,334
Disposals	(1,636)	(999)
Exchange differences	(6,009)	1,388
As at December 31	112,811	74,174
Accumulated depreciation
As at January 1	32,899	26,281
Depreciation	8,327	6,842
Disposals	(1,525)	(929)
Exchange differences	(2,837)	705
As at December 31	36,864	32,899
Net book value	75,947	41,275
Buildings
Cost
As at January 1	2,432	2,372
Exchange differences	(199)	60
As at December 31	2,233	2,432
Accumulated depreciation
As at January 1	1,788	1,626
Depreciation	116	120
Exchange differences	(151)	42
As at December 31	1,753	1,788
Net book value	480	644
Leasehold improvements
Cost
As at January 1	17,828	16,346
Additions	171	452
Disposals	(1,105)	(275)
Transfers	1,336	916
Exchange differences	(1,394)	389
As at December 31	16,836	17,828
Accumulated depreciation
As at January 1	11,571	8,652
Depreciation	3,741	2,904
Disposals	(1,018)	(223)
Exchange differences	(1,012)	238
As at December 31	13,282	11,571
Net book value	3,554	6,257
Plant and equipment
Cost
As at January 1	5,987	5,643
Additions	541	24
Disposals	(2)	(19)
Transfers	1,412	197
Exchange differences	(484)	142
As at December 31	7,454	5,987
Accumulated depreciation
As at January 1	2,352	1,747
Depreciation	590	574
Disposals	(2)	(18)
Transfers	(56)
Exchange differences	(214)	49
As at December 31	2,670	2,352
Net book value	4,784	3,635
Furniture and fixtures, other equipment and motor vehicles
Cost
As at January 1	27,957	23,040
Additions	4,945	3,189
Disposals	(529)	(705)
Transfers	1,637	1,849
Exchange differences	(2,272)	584
As at December 31	31,738	27,957
Accumulated depreciation
As at January 1	17,188	14,256
Depreciation	3,880	3,244
Disposals	(505)	(688)
Transfers	56
Exchange differences	(1,460)	376
As at December 31	19,159	17,188
Net book value	12,579	10,769
Construction in progress
Cost
As at January 1	19,970	3,050
Additions	40,625	19,669
Transfers	(4,385)	(2,962)
Exchange differences	(1,660)	213
As at December 31	54,550	19,970
Accumulated depreciation
Net book value	$ 54,550	$ 19,970

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases
Right-of-use assets	$ 8,722	$ 11,879
Lease liabilities-current	$ 3,708	$ 4,917
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Current.	Other Liabilities, Current.
Lease liabilities-non-current	$ 5,196	$ 7,161
Total lease liabilities	8,904	12,078
Lease expenses	5,372	4,412
Cash paid on lease liabilities	5,212	4,954
Non-cash: Lease liabilities recognized from obtaining right-of-use assets	2,689	7,665
Non-cash: Lease liabilities changed in relation to modifications and terminations	$ (499)	$ (33)
Weighted average remaining lease term (in years)	3 years 2 months 26 days	3 years 4 months 17 days
Weighted average discount rate (as a percent)	3.04%	3.33%
Lease payments:
Not later than 1 year	$ 3,908
Between 1 to 2 years	2,471
Between 2 to 3 years	1,177
Between 3 to 4 years	911
Between 4 to 5 years	680
Later than 5 years	115
Total lease payments	9,262
Less: Discount factor	(358)
Total lease liabilities	8,904	$ 12,078
Short-term leases with lease terms equal or less than 12 months
Leases
Lease expenses	134	106
Leases with lease terms greater than 12 months
Leases
Lease expenses	5,238	4,306
Offices
Leases
Right-of-use assets	6,634	10,605
Factories
Leases
Right-of-use assets	387	702
Warehouse
Leases
Right-of-use assets	1,500	281
Warehouse \| Suzhou
Leases
Right-of-use assets	$ 1,500
Advance notice period for lease termination option (in months)	3 months
Others
Leases
Right-of-use assets	$ 201	$ 291
Minimum
Leases
Terms of lease contracts (in years)	1 year
Maximum
Leases
Terms of lease contracts (in years)	8 years

Investments in Equity Investe_3

Investments in Equity Investees (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investments in Equity Investees
Investments in equity investees	$ 73,777	$ 76,479
SHPL
Investments in Equity Investees
Investments in equity investees	73,461	75,999	$ 79,408
Other
Investments in Equity Investees
Investments in equity investees	$ 316	$ 480

Investments in Equity Investe_4

Investments in Equity Investees - Summarized Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Summarized balance sheet
Current assets	$ 839,888	$ 1,212,076
Current liabilities	(353,903)	(311,658)
Net assets	636,870	1,039,514	$ 518,949	$ 312,903
SHPL
Summarized balance sheet
Current assets	214,267	190,260
Non-current assets	80,062	91,605
Current liabilities	(147,952)	(128,993)
Non-current liabilities	(4,944)	(7,131)
Net assets	$ 141,433	$ 145,741

Investments in Equity Investe_5

Investments in Equity Investees - Summarized Statements of Operations (Details) ¥ in Millions	1 Months Ended				12 Months Ended
	Aug. 31, 2022 USD ($)	Aug. 31, 2022 CNY (¥)	Jun. 30, 2021 USD ($)	Jun. 30, 2021 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 CNY (¥)
Summarized Statements of Operations
Revenue					$ 426,409,000	$ 356,128,000	$ 227,976,000
Interest income					9,599,000	2,076,000	3,236,000
Finance cost					(18,000)	(44,000)	(43,000)
Profit before taxation					(410,422,000)	(215,740,000)	(189,734,000)
Income tax expense					283,000	(11,918,000)	(4,829,000)
Net loss					(360,386,000)	(167,041,000)	(115,517,000)
Non-controlling interests					(449,000)	(27,607,000)	(10,213,000)
Net loss attributable to the Company					(360,835,000)	(194,648,000)	(125,730,000)
Net (loss)/income					(360,386,000)	(167,041,000)	(115,517,000)
Cash consideration					324,000
Other equity investee
Summarized Statements of Operations
Cash consideration	$ 324,000	¥ 2.2
SHPL
Summarized Statements of Operations
Revenue					370,600,000	332,648,000	276,354,000
Gross profit					281,113,000	255,089,000	204,191,000
Interest income					980,000	1,216,000	975,000
Profit before taxation					116,454,000	105,325,000	77,837,000
Income tax expense					(16,738,000)	(15,896,000)	(10,833,000)
Net loss					99,716,000	89,429,000	67,004,000
Net loss attributable to the Company					$ 99,716,000	$ 89,429,000	$ 67,004,000
Preferential income tax rate (as a percent)					15%	15%	15%	15%
Net (loss)/income					$ 99,716,000	$ 89,429,000	$ 67,004,000
HBYS
Summarized Statements of Operations
Revenue						209,528,000	232,368,000
Gross profit						111,066,000	116,804,000
Interest income						205,000	271,000
Finance cost							(5,000)
Profit before taxation						36,715,000	107,715,000
Income tax expense						(4,840,000)	(16,494,000)
Net loss						31,875,000	91,221,000
Non-controlling interests						(36,000)	62,000
Net loss attributable to the Company						31,839,000	91,283,000
Land compensation							86,100,000	¥ 569.2
Land compensation bonus			$ 17,000,000	¥ 110.3
Gain before tax			16,400,000	106.8
Cost on return of the land use right			$ 600,000	¥ 3.5
Net (loss)/income						31,875,000	91,221,000
HBYS and SHPL
Summarized Statements of Operations
Unrealized profits eliminated					110,000	36,000	0
Other equity investee
Summarized Statements of Operations
Net loss					10,000	41,000	(194,000)
Net (loss)/income					$ 10,000	$ 41,000	$ (194,000)

Investments in Equity Investe_6

Investments in Equity Investees - Reconciliation of Summarized Financial Information (Details) - USD ($) $ in Thousands			12 Months Ended
	Sep. 23, 2021	May 13, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees
Net income attributable to the shareholders of equity investee			$ (360,835)	$ (194,648)	$ (125,730)
Purchase of additional interests in a subsidiary of an equity investee					$ (174)
Carrying amount of investments			73,777	76,479
HBYS \| A subsidiary
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees
Additional interest in a subsidiary acquired (as percent)					30%
SHPL
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees
Opening net assets after non-controlling interests			145,741	152,714	$ 146,759
Net income attributable to the shareholders of equity investee			99,716	89,429	67,004
Dividends declared			(87,436)	(99,744)	(72,179)
Other comprehensive (loss)/income			(16,588)	3,342	11,130
Closing net assets after non-controlling interests			141,433	145,741	152,714
Group's share of net assets			70,717	72,871	76,357
Goodwill			2,872	3,128	3,051
Elimination of unrealized profits on downstream sales			(128)
Carrying amount of investments			73,461	75,999	79,408
HBYS
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees
Opening net assets after non-controlling interests			$ 46,491	119,424	44,541
Net income attributable to the shareholders of equity investee				31,839	91,283
Purchase of additional interests in a subsidiary of an equity investee					(347)
Dividends declared	$ (59,700)	$ (46,500)		(106,159)	(20,756)
Other comprehensive (loss)/income				1,387	4,703
Closing net assets after non-controlling interests				46,491	119,424
Group's share of net assets				23,246	59,712
Divestment				$ (23,246)
Carrying amount of investments					$ 59,712

Investments in Equity Investe_7

Investments in Equity Investees - Capital Commitments (Details) - Capital commitments $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Capital commitments
Property, plant and equipment - Contracted but not provided for	$ 22,130
SHPL
Capital commitments
Property, plant and equipment - Contracted but not provided for	$ 1,307

Accounts Payable (Details)

Accounts Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts Payable
Accounts payable	$ 71,115	$ 41,177
Non-controlling shareholders of subsidiaries
Accounts Payable
Accounts payable	2,922	2,062
Third parties
Accounts Payable
Accounts payable	$ 68,193	$ 39,115

Accounts Payable - Aging analys

Accounts Payable - Aging analysis based on the relevant invoice dates (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts Payable
Accounts payable	$ 71,115	$ 41,177
Not later than 3 months
Accounts Payable
Accounts payable	60,553	35,615
Between 3 months to 6 months
Accounts Payable
Accounts payable	7,216	3,705
Between 6 months to 1 year
Accounts Payable
Accounts payable	2,137	588
Later than 1 year
Accounts Payable
Accounts payable	$ 1,209	$ 1,269

Other Payables, Accruals and _3

Other Payables, Accruals and Advance Receipts (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Other Payables, Accruals and Advance Receipts
Accrued research and development expenses	$ 156,134	$ 116,134
Accrued salaries and benefits	42,442	41,786
Accrued capital expenditures	21,390	11,343
Accrued administrative and other general expenses	14,491	15,836
Accrued selling and marketing expenses	11,564	8,412
Deposits	3,616	2,111
Amounts due to related parties (Note 23(ii))	2,101	1,915
Deferred government grants	673	314
Others	12,210	12,988
Total other payables, accruals and advance receipts	$ 264,621	$ 210,839

Bank Borrowings - Schedule of B

Bank Borrowings - Schedule of Bank Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Bank Borrowings
Current		$ 26,905
Non-current	$ 18,104
Weighted average interest rate for outstanding bank borrowings (as a percent)	1.73%	1.08%

Bank Borrowings - Loan Faciliti

Bank Borrowings - Loan Facilities (Details)

1 Months Ended

May 31, 2022 HKD ($)

Oct. 31, 2021 USD ($)

Aug. 31, 2020 HKD ($)

May 31, 2019 HKD ($)

May 31, 2019 USD ($)

Dec. 31, 2022 USD ($)

Dec. 31, 2022 CNY (¥)

May 31, 2022 USD ($)

Dec. 31, 2021 CNY (¥)

Oct. 31, 2021 CNY (¥)

Aug. 31, 2020 USD ($)

May 31, 2019 USD ($)

Unsecured credit facility

Bank Borrowings

Aggregate amount of credit facilities

$ 400,000,000

$ 51,282,000

Term (in years or months)

3 years

Unsecured credit facility | HIBOR

Bank Borrowings

Basis spread on variable rate (as a percent)

0.85%

Revolving loan facility

Bank Borrowings

Aggregate amount of credit facilities

$ 390,000,000

$ 117,000,000

$ 50,000,000

$ 15,000,000

Term (in years or months)

1 year

2 years

Amount drawn from the credit facility

$ 0

Revolving loan facility | HIBOR

Bank Borrowings

Basis spread on variable rate (as a percent)

0.50%

4.50%

Revolving loan facility | Unsecured credit facility

Bank Borrowings

Aggregate amount of credit facilities

$ 190,000,000

24,359,000

Term loan | Unsecured credit facility

Bank Borrowings

Aggregate amount of credit facilities

210,000,000

$ 26,923,000

Amount of upfront fee

$ 819,000

$ 105,000

Fixed asset loan facility | Secured credit facility

Bank Borrowings

Aggregate amount of credit facilities

$ 108,393,000

¥ 754,880,000

Term (in years or months)

10 years

Amount drawn from the credit facility

18,104,000

¥ 126,083,000

¥ 0

Amount drawn related to capitalized interest

$ 110,000

¥ 769,000

¥ 0

Fixed asset loan facility | Secured credit facility | 5-year China Loan Prime Rate

Bank Borrowings

Basis spread on variable rate (as a percent)

(0.80%)

Bank Borrowings - Schedule of M

Bank Borrowings - Schedule of Maturities of Bank Borrowings (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Bank Borrowings
Not later than 1 year		$ 26,923,000
Between 1 to 3 years	$ 360,000
Between 3 to 4 years	839,000
Between 4 to 5 years	1,079,000
Later than 5 years	15,826,000
Bank borrowings	18,104,000	26,923,000
Unutilized bank borrowing facilities	$ 140,289,000	$ 157,430,000

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	12 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Capital commitments
Capital commitments
Property, plant and equipment - Contracted but not provided for	$ 22,130

Ordinary Shares (Details)

Ordinary Shares (Details) $ in Thousands			12 Months Ended
Ordinary Shares (Details) $ in Thousands	Jul. 15, 2021 USD ($) shares	Apr. 14, 2021 USD ($) shares	Dec. 31, 2022 USD ($) item shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($)
Ordinary shares, authorized (in shares) \| shares			1,500,000,000	1,500,000,000
Gross proceeds from issuance of shares			$ 174	$ 717,319	$ 318,934
Issuance costs		$ 100	$ 83	$ 29,509	$ 8,134
Votes per ordinary share \| item			1
Gross proceeds from PIPE		$ 100,000
IPO
Gross proceeds from issuance of shares	$ 614,900
Issuance costs	$ 29,700
Ordinary Shares
Shares issued under PIPE \| shares		16,393,445
Ordinary Shares \| IPO
Number of ordinary shares issued \| shares	119,600,000

Share based Compensation - Hutc

Share based Compensation - Hutchmed Share Option Scheme (Details) - shares		12 Months Ended
	Jun. 04, 2005	Dec. 31, 2022
Share option scheme expired in 2016
Share-based Compensation
Expiry period	10 years
Aggregate number of shares issuable		660,570
Hutchmed Share Option Scheme
Share-based Compensation
Aggregate number of shares issuable		48,611,458
Number of shares authorized but unissued		635,224,660
Hutchmed Share Option Scheme \| Minimum
Share-based Compensation
Expiry period		8 years
Hutchmed Share Option Scheme \| Maximum
Share-based Compensation
Expiry period		10 years
Hutchmed Share Option Scheme \| Four-year awards
Share-based Compensation
Vesting period		4 years
Vesting percentage upon first anniversary		25%
Annual vesting percentage after the first anniversary		25%

Share-based Compensation - Hutc

Share-based Compensation - Hutchmed Share Option Activity (Details) - Hutchmed Share Option Scheme - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Number of share options
Outstanding as at beginning of period (in shares)		37,190,590	29,160,990	19,432,560
Granted (in shares)		7,680,820	10,174,840	15,437,080
Exercised (in shares)		(244,490)	(815,190)	(480,780)
Cancelled (in shares)		(3,849,905)	(1,287,650)	(4,486,200)
Expired (in shares)		(1,255,620)	(42,400)	(741,670)
Outstanding as at end of period (in shares)		39,521,395	37,190,590	29,160,990	19,432,560
Vested and exercisable (in shares)		21,113,285	16,077,770
Weighted average exercise price in US$ per share
Outstanding balance as at beginning of period (in US$ per share)		$ 4.88	$ 4.49	$ 4.48
Granted (in US$ per share)		2.26	5.96	4.66
Exercised (in US$ per share)		1.98	3.01	1.23
Cancelled (in US$ per share)		5.19	5.50	5.02
Expired (in US$ per share)		5.66	5.52	6.46
Outstanding balance as at end of period (in US$ per share)		4.34	4.88	$ 4.49	$ 4.48
Vested and exercisable (in US$ per share)		$ 4.57	$ 4.24
Weighted average remaining contractual life (years)
Outstanding (in years)		6 years 6 months 18 days	7 years 14 days	7 years 2 months 15 days	6 years 8 months 1 day
Vested and exercisable (in years)		4 years 9 months 18 days	4 years 10 months 28 days
Aggregate intrinsic value in US$'000
Outstanding (in US$'000)		$ 11,525	$ 82,377	$ 53,990	$ 24,316
Vested and exercisable (in US$'000)		$ 6,288	$ 46,491
Weighted average grant date fair value of share options (in US$ per share)		$ 0.85	$ 2.24	$ 1.76
Executive Director
Number of share options
Granted (in shares)	861,220
Aggregate intrinsic value in US$'000
Vesting period	3 years
Weighted average grant date fair value of share options (in US$ per share)	$ 0.24
Executive Director \| ADS
Number of share options
Granted (in shares)	172,244

Share-based Compensation - Hu_2

Share-based Compensation - Hutchmed Options Fair value Assumptions (Details) - Hutchmed Share Option Scheme - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation
Weighted average grant date fair value of share options (in US$ per share)	$ 0.85	$ 2.24	$ 1.76
Significant inputs into the valuation model (weighted average):
Exercise price (in US$ per share)	2.26	5.96	4.66
Share price at effective date of grant (in US$ per share)	$ 2.22	$ 5.91	$ 4.66
Expected volatility (in percentage)	46.70%	41.10%	42.60%
Risk-free interest rate (in percentage)	2.98%	1.62%	0.59%
Contractual life of share options (in years)	10 years	10 years	10 years
Expected dividend yield (in percentage)	0%	0%	0%

Share-based Compensation - Hu_3

Share-based Compensation - Hutchmed Share Option Exercises (Details) - Hutchmed Share Option Scheme - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share option values
Cash received from share option exercises	$ 174	$ 2,452	$ 593
Total intrinsic value of share option exercises	$ 92	$ 2,999	$ 2,475

Share-based Compensation - Hu_4

Share-based Compensation - Hutchmed Share Based Compensation Expense (Details) - Hutchmed Share Option Scheme - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation
Share-based compensation expense	$ 6,736,000	$ 16,365,000	$ 8,737,000
Unrecognized compensation cost	$ 10,907,000
Unrecognized compensation cost - weighted-average remaining service period (in years)	2 years 7 months 17 days
Research and development expenses
Share-based Compensation
Share-based compensation expense	$ 4,803,000	8,460,000	4,061,000
Selling and administrative expenses
Share-based Compensation
Share-based compensation expense	1,803,000	7,783,000	4,586,000
Cost of revenues
Share-based Compensation
Share-based compensation expense	$ 130,000	$ 122,000	$ 90,000

Share-based Compensation - LTIP

Share-based Compensation - LTIP (Details) - LTIP - USD ($)									12 Months Ended
Share-based Compensation - LTIP (Details) - LTIP - USD ($)	Sep. 13, 2022	May 23, 2022	Dec. 14, 2021	Oct. 20, 2021	Sep. 01, 2021	Mar. 26, 2021	Aug. 12, 2020	Apr. 20, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation
Share-based compensation expense									$ 23,850,000	$ 25,625,000	$ 10,905,000
Vesting period to March 2025
Share-based Compensation
Share-based compensation expense									$ 17,429,000
Awarded Shares
Ordinary Shares Held by Trustee - Number of treasury shares
As at beginning of period									8,139,175	3,510,675	941,310
Purchased									14,028,465	4,907,045	3,281,920
Vested									(2,566,265)	(278,545)	(712,555)
As at end of period									19,601,375	8,139,175	3,510,675
Ordinary Shares Held by Trustee - Cost
As at beginning of period									$ 40,014,000	$ 14,155,000	$ 6,079,000
Purchased									48,084,000	27,309,000	12,904,000
Vested									(12,034,000)	(1,450,000)	(4,828,000)
As at end of period									76,064,000	40,014,000	14,155,000
Awards forfeited									$ 19,031,000	$ 6,618,000	$ 7,038,000
Shared-based Compensation Award, Performance \| April 20, 2020, One
Share-based Compensation
Maximum cash amount								$ 5,300,000
Number of business days for vesting after announcement of Group's annual results								2 days
Vesting, number of years after the covered financial year								2 years
Shared-based Compensation Award, Performance \| April 20, 2020, Two
Share-based Compensation
Maximum cash amount								$ 37,400,000
Number of business days for vesting after announcement of Group's annual results								2 days
Vesting, number of years after the covered financial year								2 years
Shared-based Compensation Award, Performance \| April 20, 2020, Three
Share-based Compensation
Maximum cash amount								$ 1,900,000
Vesting percentage on each of the first, second, third and fourth anniversaries								25%
Shared-based Compensation Award, Performance \| April 20, 2020, Four
Share-based Compensation
Maximum cash amount								$ 200,000
Shared-based Compensation Award, Performance \| August 12, 2020, One
Share-based Compensation
Maximum cash amount							$ 2,100,000
Number of business days for vesting after announcement of Group's annual results							2 days
Vesting, number of years after the covered financial year							2 years
Shared-based Compensation Award, Performance \| August 12, 2020, Two
Share-based Compensation
Maximum cash amount							$ 300,000
Vesting percentage on each of the first, second, third and fourth anniversaries							25%
Shared-based Compensation Award, Performance \| March 26, 2021
Share-based Compensation
Maximum cash amount						$ 57,300,000
Number of business days for vesting after announcement of Group's annual results						2 days
Vesting, number of years after the covered financial year						2 years
Shared-based Compensation Award, Performance \| September 1, 2021 One
Share-based Compensation
Maximum cash amount					$ 7,300,000
Number of business days for vesting after announcement of Group's annual results					2 days
Vesting, number of years after the covered financial year					2 years
Shared-based Compensation Award, Performance \| September 1, 2021 Two
Share-based Compensation
Maximum cash amount					$ 500,000
Vesting percentage on each of the first, second, third and fourth anniversaries					25%
Shared-based Compensation Award, Performance \| October 20, 2021
Share-based Compensation
Maximum cash amount				$ 1,700,000
Vesting percentage on each of the first, second, third and fourth anniversaries				25%
Shared-based Compensation Award, Performance \| December 14, 2021 One
Share-based Compensation
Maximum cash amount			$ 100,000
Vesting percentage on each of the first, second, third and fourth anniversaries			25%
Shared-based Compensation Award, Performance \| December 14, 2021 Two
Share-based Compensation
Maximum cash amount			$ 100,000
Shared-based Compensation Award, Performance \| May 23, 2022
Share-based Compensation
Maximum cash amount		$ 60,400,000
Number of business days for vesting after announcement of Group's annual results		2 days
Vesting, number of years after the covered financial year		2 years
Shared-based Compensation Award, Performance \| September 13, 2022, One
Share-based Compensation
Maximum cash amount	$ 3,800,000
Number of business days for vesting after announcement of Group's annual results	2 days
Vesting, number of years after the covered financial year	2 years
Shared-based Compensation Award, Performance \| September 13, 2022, Two
Share-based Compensation
Maximum cash amount	$ 1,700,000
Vesting percentage on each of the first, second, third and fourth anniversaries	25%

Share-based Compensation - LT_2

Share-based Compensation - LTIP Share Based Compensation Expense (Details) - LTIP - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation
Share-based compensation expense	$ 23,850,000	$ 25,625,000	$ 10,905,000
Share-based compensation reclassified from liability to additional paid-in capital	15,351,000	8,516,000	4,092,000
Share-based compensation recorded as liability	3,701,000	12,836,000
Unrecognized compensation cost	34,668,000
Liability
Share-based Compensation
Share-based compensation expense	6,216,000	14,263,000	7,778,000
Additional Paid-in Capital
Share-based Compensation
Share-based compensation expense	17,634,000	11,362,000	3,127,000
Research and development expenses
Share-based Compensation
Share-based compensation expense	16,101,000	16,880,000	7,252,000
Selling and administrative expenses
Share-based Compensation
Share-based compensation expense	7,376,000	8,451,000	3,552,000
Cost of revenues
Share-based Compensation
Share-based compensation expense	$ 373,000	$ 294,000	$ 101,000

Revenues (Details)

Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
Revenues (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues
Revenue	$ 426,409	$ 356,128	$ 227,976
Third parties
Revenues
Revenue	420,609	351,347	222,001
Related parties
Revenues
Revenue	5,800	4,781	5,975
Goods-Marketed Products
Revenues
Revenue	57,057	33,937	11,329
Goods-Distribution
Revenues
Revenue	262,565	236,518	197,761
Services -Commercialization-Marketed Products
Revenues
Revenue	41,275	27,428	3,734
Services -Collaboration Research and Development
Revenues
Revenue	23,741	18,995	9,771
Services -Research and Development
Revenues
Revenue	507	525	491
Royalties
Revenues
Revenue	26,310	15,064	4,890
Licensing
Revenues
Revenue	14,954	23,661
Oncology/Immunology segment
Revenues
Revenue	163,844	119,610	30,215
Oncology/Immunology segment \| Third parties
Revenues
Revenue	163,337	119,085	29,724
Oncology/Immunology segment \| Related parties
Revenues
Revenue	507	525	491
Oncology/Immunology segment \| Goods-Marketed Products
Revenues
Revenue	57,057	33,937	11,329
Oncology/Immunology segment \| Services -Commercialization-Marketed Products
Revenues
Revenue	41,275	27,428	3,734
Oncology/Immunology segment \| Services -Collaboration Research and Development
Revenues
Revenue	23,741	18,995	9,771
Oncology/Immunology segment \| Services -Research and Development
Revenues
Revenue	507	525	491
Oncology/Immunology segment \| Royalties
Revenues
Revenue	26,310	15,064	4,890
Oncology/Immunology segment \| Licensing
Revenues
Revenue	14,954	23,661
Other Ventures segment
Revenues
Revenue	262,565	236,518	197,761
Other Ventures segment \| Third parties
Revenues
Revenue	257,272	232,262	192,277
Other Ventures segment \| Related parties
Revenues
Revenue	5,293	4,256	5,484
Other Ventures segment \| Goods-Distribution
Revenues
Revenue	$ 262,565	$ 236,518	$ 197,761

Revenues - Balances from Contra

Revenues - Balances from Contract with Customers and Estimated Deferred Revenue to be Recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Dec. 31, 2021
Revenues
Deferred revenue-current portion	$ 13,347		$ 12,274
Total deferred revenue	13,537	$ 13,200	13,152
Estimated deferred revenue
Not later than 1 year	13,347		12,274
Between 1 to 2 years	150		476
Between 2 to 3 years	40		255
Between 3 to 4 years			147
Total deferred revenue	13,537	$ 13,200	13,152
Revenue recognized	11,800
Oncology/Immunology segment
Revenues
Deferred revenue-current portion	11,817		11,078
Deferred revenue-noncurrent portion	190		878
Other Ventures segment
Revenues
Deferred revenue-current portion	$ 1,530		$ 1,196

Revenues - License and Collabor

Revenues - License and Collaboration Agreement (Details) $ in Thousands			1 Months Ended				12 Months Ended
	Oct. 08, 2013 USD ($)	Dec. 21, 2011 USD ($)	Jul. 31, 2021	Oct. 31, 2020 USD ($)	Dec. 31, 2018 USD ($)	Aug. 31, 2016 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2018 item
Revenue from license and collaboration agreements-third parties
Clinical trial related costs							$ 255,935	$ 190,051	$ 105,869
Revenue							426,409	356,128	227,976
Goods-Marketed Products
Revenue from license and collaboration agreements-third parties
Revenue							57,057	33,937	11,329
Services -Commercialization-Marketed Products
Revenue from license and collaboration agreements-third parties
Revenue							41,275	27,428	3,734
Services -Collaboration Research and Development
Revenue from license and collaboration agreements-third parties
Revenue							23,741	18,995	9,771
Royalties
Revenue from license and collaboration agreements-third parties
Revenue							26,310	15,064	4,890
Licensing
Revenue from license and collaboration agreements-third parties
Revenue							14,954	23,661
License and collaboration agreement with Eli Lilly
Revenue from license and collaboration agreements-third parties
Maximum amount of series of payments expected to be received	$ 86,500
Life cycle indications ("LCI") \| item										3
Remaining per life cycle indication regulatory approval milestone payments					$ 20,000
Remaining regulatory approval milestone payments					$ 60,000
Increase of development and regulatory approval milestones for an initial indication				$ 10,000
Upfront payment							6,500
Development milestone payments achieved							40,000
Percentage of transaction price allocated to license to fruquintinib	90%
Percentage of transaction price allocated to research and development services	10%
Revenue							77,690	58,003	21,944
License and collaboration agreement with Eli Lilly \| Goods-Marketed Products
Revenue from license and collaboration agreements-third parties
Revenue							14,407	15,792	11,329
License and collaboration agreement with Eli Lilly \| Services -Commercialization-Marketed Products
Revenue from license and collaboration agreements-third parties
Revenue							41,275	27,428	3,734
License and collaboration agreement with Eli Lilly \| Services -Collaboration Research and Development
Revenue from license and collaboration agreements-third parties
Revenue							8,054	4,491	1,991
License and collaboration agreement with Eli Lilly \| Royalties
Revenue from license and collaboration agreements-third parties
Revenue							13,954	10,292	4,890
License and collaboration agreement with Eli Lilly \| Minimum
Revenue from license and collaboration agreements-third parties
Percentage of royalties	15%				15%
Threshold percentage of sales in provinces to promote					30%
License and collaboration agreement with Eli Lilly \| Maximum
Revenue from license and collaboration agreements-third parties
Percentage of royalties	20%				29%
Threshold percentage of sales in provinces to promote					40%
License and collaboration agreement with AstraZeneca
Revenue from license and collaboration agreements-third parties
Upfront payment							20,000
Development milestone payments achieved							40,000
First-sale milestone payment achieved							25,000
Series of payments		$ 140,000
Clinical trial related costs						$ 50,000
Percentage of transaction price allocated to license to savolitinib		95%
Percentage of transaction price allocated to research and development services		5%
Revenue							51,681	49,055	7,780
License and collaboration agreement with AstraZeneca \| Goods-Marketed Products
Revenue from license and collaboration agreements-third parties
Revenue							9,904	6,509
License and collaboration agreement with AstraZeneca \| Services -Collaboration Research and Development
Revenue from license and collaboration agreements-third parties
Revenue							14,467	14,113	$ 7,780
License and collaboration agreement with AstraZeneca \| Royalties
Revenue from license and collaboration agreements-third parties
Revenue							12,356	4,772
License and collaboration agreement with AstraZeneca \| Licensing
Revenue from license and collaboration agreements-third parties
Revenue							$ 14,954	$ 23,661
License and collaboration agreement with AstraZeneca \| PRC
Revenue from license and collaboration agreements-third parties
Percentage of royalties			30%
License and collaboration agreement with AstraZeneca \| Minimum \| Outside of China
Revenue from license and collaboration agreements-third parties
Percentage of royalties, tier one		9%
License and collaboration agreement with AstraZeneca \| Maximum \| Outside of China
Revenue from license and collaboration agreements-third parties
Percentage of royalties, tier one		13%

In-Licensing arrangement (Detai

In-Licensing arrangement (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Aug. 07, 2021	Dec. 31, 2022	Dec. 31, 2021
In-Licensing arrangement
Upfront payment	$ 25,000
Fair value of the warrant	$ 15,000		$ 2,452
Fair value loss		$ 2,452	$ 12,548
Epizyme, Inc
In-Licensing arrangement
Warrant term	4 years
Number of shares called by warrants	5,653,000
Exercise price (in US dollar per share)	$ 11.50
Upfront payment	$ 25,000
Development and regulatory milestones
In-Licensing arrangement
Success-based payments	110,000
Sales milestones
In-Licensing arrangement
Success-based payments	$ 175,000
Development Milestones
In-Licensing arrangement
In-process research and development expense		$ 5,000

Research and Development Expe_3

Research and Development Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Research and Development Expenses
Clinical trial related costs	$ 255,935	$ 190,051	$ 105,869
Personnel compensation and related costs	119,306	91,639	63,542
Other research and development expenses	11,652	17,396	5,365
Research and development expenses	$ 386,893	$ 299,086	$ 174,776

Research and Development Expe_4

Research and Development Expenses - Additional information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Research and Development Expenses
Research and development expenses	$ 386,893,000	$ 299,086,000	$ 174,776,000
Collaborative arrangements
Research and Development Expenses
Research and development expenses	$ 14,654,000	$ 18,408,000	$ 8,291,000

Government Grants (Details)

Government Grants (Details) - USD ($)	12 Months Ended
Government Grants (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Government Grants
Government grants received	$ 8,474,000	$ 9,095,000	$ 4,724,000
Research and development expenses	4,556,000	15,515,000	1,607,000
Other income	1,434,000	318,000	539,000
Total government grants recognized	$ 5,990,000	$ 15,833,000	$ 2,146,000

Gain on divestment of an equi_3

Gain on divestment of an equity investee (Details) $ in Millions					12 Months Ended
	Sep. 28, 2021 USD ($)	Sep. 23, 2021 USD ($)	Jun. 15, 2021 USD ($)	May 13, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2022 USD ($)	Jun. 15, 2021 HKD ($)
Equity method investment
Dividend receivables, current					$ 46,387,000		$ 26,246,000
Due to related parties under other payables, accruals and advance receipts
Equity method investment
Future brand liability					1,538,000		1,538,000
Other non-current liabilities
Equity method investment
Future brand liability					9,766,000		8,716,000
Hutchison Whampoa Enterprises Limited
Equity method investment
Annual payment of royalty for usage of brand			$ 1,500,000					$ 12
Aggregate amount of royalty for usage of brand			$ 15,400,000					$ 120
Future brand liability	$ 12,700,000
Useful life			10 years
HBYS
Equity method investment
Cash consideration	$ 159,100,000				159,118,000
Dividends declared		$ 59,700,000		$ 46,500,000	106,159,000	$ 20,756,000
Dividend receivables, current					$ 46,400,000		$ 26,200,000

Gain on divestment of an equi_4

Gain on divestment of an equity investee - Schedule of gain on divestment of equity investee (Details) - USD ($) $ in Thousands		12 Months Ended
	Sep. 28, 2021	Dec. 31, 2021
Equity method investment
Gain on divestment of an equity investee		$ 121,310
HBYS
Equity method investment
Proceeds	$ 159,100	159,118
Dividend receivables		(52,887)
Proceeds and dividend receivables		205,505
Less: Group's share of net assets of HBYS (Note 11(iii))		(23,246)
Withholding tax liability on dividend receivables-HBYS		2,644
Branding liability		(12,721)
Accumulated other comprehensive income and reserves		1,911
Transaction costs and others		104
Gain on divestment of an equity investee		121,310
Less: Capital gain tax		(14,373)
Less: Gain on divestment of an equity investee attributable to non-controlling interests		(24,010)
Gain on divestment of an equity investee attributable to the Group		82,927
HBYS \| Third Parties
Equity method investment
Dividend receivables		$ 46,387

Significant Transactions with_3

Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries - Related parties (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Balances with related parties included in:
Accounts receivable-related parties	$ 3,517,000	$ 1,166,000
Other payables, accruals and advance receipts	2,101,000	1,915,000
Other non-current liabilities	9,471,000	10,502,000
Actual cash paid	1,538,000	1,538,000
Due to related parties under other payables, accruals and advance receipts
Balances with related parties included in:
Future brand liability	1,538,000	1,538,000
Other non-current liabilities
Balances with related parties included in:
Future brand liability	8,716,000	9,766,000
Indirect subsidiaries of CK Hutchison
Balances with related parties included in:
Accounts receivable-related parties	1,319,000	1,166,000
Other payables, accruals and advance receipts	1,953,000	1,915,000
Other non-current liabilities	$ 8,716,000	9,766,000
Period of repayable on demand and interest-bearing (in months)	1 month
An equity investee
Related party transaction
Purchases	$ 4,231,000	3,770,000	$ 3,347,000
Balances with related parties included in:
Accounts receivable-related parties	2,198,000
Other receivables, prepayments and deposits	998,000	1,149,000
Other payables, accruals and advance receipts	148,000
Other non-current liabilities	755,000	736,000
Sales
Related party transaction
Sales	5,293,000	4,256,000	5,484,000
Sales \| Indirect subsidiaries of CK Hutchison
Related party transaction
Sales	3,610,000	4,256,000	5,484,000
Sales \| An equity investee
Related party transaction
Sales	1,683,000
Research and development services \| An equity investee
Related party transaction
Sales	507,000	525,000	491,000
Marketing services
Related party transaction
Expenses	354,000	350,000	332,000
Marketing services \| Indirect subsidiaries of CK Hutchison
Related party transaction
Expenses	227,000	350,000	332,000
Marketing services \| An equity investee
Related party transaction
Expenses	127,000
Management services \| Indirect subsidiaries of CK Hutchison
Related party transaction
Expenses	$ 980,000	971,000	$ 955,000
Related party transaction brand license services \| Indirect subsidiaries of CK Hutchison
Related party transaction
Expenses		$ 12,721,000

Significant Transactions with_4

Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries - Non-controlling shareholders of subsidiaries (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Transactions with non-controlling shareholders of subsidiaries:
Sales	$ 426,409	$ 356,128	$ 227,976
Dividends declared	25,600	9,894	1,462
Balances with non-controlling shareholders of subsidiaries included in:
Accounts receivable	97,988	83,580
Accounts payable	71,115	41,177
Non-controlling shareholders of subsidiaries
Transactions with non-controlling shareholders of subsidiaries:
Sales	47,611	41,974	36,500
Purchases	7,936	10,660	13,936
Dividends declared	25,600	9,894	$ 1,462
Balances with non-controlling shareholders of subsidiaries included in:
Accounts receivable	11,139	8,436
Accounts payable	$ 2,922	$ 2,062

Income Taxes (Details)

Income Taxes (Details) $ in Thousands, $ in Millions	12 Months Ended
Income Taxes (Details) $ in Thousands, $ in Millions	Dec. 31, 2022 USD ($) subsidiary	Dec. 31, 2022 HKD ($) subsidiary	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Current tax	$ 3,280		$ 16,636	$ 1,548
Deferred income tax (benefit)/expense	(3,563)		(4,718)	3,281
Income tax (benefit)/ expense	$ (283)		11,918	4,829
Tax rates
Number of subsidiaries incorporated in the British Virgin Islands subject to HK profits tax \| subsidiary	3	3
Capital gain on indirect disposal of investments withholding tax rate	10%	10%
U.S. withholding tax (as a percent)	30%	30%
Reconciliation of reported income tax expense to the theoretical tax amount
Loss before income taxes and equity in earnings of equity investees	$ (410,422)		(215,740)	(189,734)
Tax calculated at the statutory tax rate of the Company	(67,720)		(35,597)	(31,306)
Different tax rates applicable in different jurisdictions	6,316		136	4,025
Tax valuation allowance	93,243		63,975	46,321
Preferential tax rate difference	(171)		(148)	(154)
Preferential tax deduction and credits	(40,791)		(29,838)	(18,814)
Expenses not deductible for tax purposes	8,886		8,684	3,476
Withholding tax on undistributed earnings of PRC entities	2,492		3,153	3,962
Others	(2,538)		1,553	(2,681)
Income tax (benefit)/ expense	(283)		11,918	4,829
HBYS
Tax rates
Capital gain on indirect disposal of investments withholding tax			14,373
Hong Kong
Current tax	301		310	457
Tax rates
Threshold of first tiered assessable profits	$ 300	$ 2
Tax rate for the first tiered assessable profits	8.25%	8.25%
Tax rate for the remaining assessable profits	16.50%	16.50%
PRC
Current tax	$ 2,580		$ 15,909	$ 872
Tax rates
Income tax rate (as a percent)	25%	25%	25%	25%
Preferential income tax rate (as a percent)	15%	15%	15%	15%
Dividends declared withholding tax rate (as a percent)	10%	10%	10%	10%
Lower withholding tax rate (as a percent)	5%	5%	5%	5%
Minimum equity interest of foreign investor required for lower withholding tax rate (as a percent)	25%	25%	25%	25%
Distributable reserves expected to be distributed as dividends (as a percent)	100%	100%	100%	100%
U.S. and others
Current tax	$ 399		$ 417	$ 219
US \| Federal
Tax rates
Income tax rate (as a percent)	21%	21%
US \| State \| Minimum
Tax rates
U.S. state taxes (as a percent)	0%	0%
US \| State \| Maximum
Tax rates
U.S. state taxes (as a percent)	11.50%	11.50%
United Kingdom
Tax rates
Income tax rate (as a percent)	19%	19%
EU countries \| Minimum
Tax rates
Income tax rate (as a percent)	15%	15%
EU countries \| Maximum
Tax rates
Income tax rate (as a percent)	25%	25%

Income Taxes - Significant Comp

Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets
Cumulative tax losses	$ 264,751	$ 186,832
Others	15,254	12,269
Total deferred tax assets	280,005	199,101
Less: Valuation allowance	(264,639)	(189,700)	$ (122,378)	$ (69,399)
Deferred tax assets	15,366	9,401
Deferred tax liabilities
Undistributed earnings from PRC entities	2,686	2,720
Others	24	45
Deferred tax liabilities	$ 2,710	$ 2,765

Income Taxes - Movements in Def

Income Taxes - Movements in Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Movements in deferred tax assets and liabilities
Deferred tax assets - As at January 1	$ 6,636
Deferred tax liabilities - As at January 1		$ (3,548)	$ (2,343)
Utilization of previously recognized withholding tax on undistributed earnings	2,186	5,148	2,323
(Charged)/Credited to the consolidated statements of operations
Withholding tax on undistributed earnings of PRC entities	(2,492)	(3,153)	(3,962)
Deferred tax on amortization of intangible assets	19	19	18
Deferred tax on temporary differences, tax loss carried forward and research tax credits	6,036	7,852	663
Divestment of an equity investee		370
Exchange differences	271	(52)	(247)
Deferred tax assets - As at December 31	$ 12,656	$ 6,636
Deferred tax liabilities - As at December 31			$ (3,548)

Income Taxes - Tax Losses Carry

Income Taxes - Tax Losses Carryforwards and Deferred Tax Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Tax losses carried forward
No expiry date	$ 71,325	$ 60,450
2022		200
2024	3,763	4,099
2025	36,098	39,321
2026	48,150	52,452
2027	61,808	67,217
2028	107,297	117,376
2029	175,853	191,554
2030	243,918	265,696
2031	389,761	432,278
2032	610,800
Tax loss carryforwards	1,748,773	1,230,643
Deferred tax valuation allowance:
At January 1	189,700	122,378	$ 69,399
Charged to consolidated statements of operations	93,243	63,975	46,321
Utilization of previously unrecognized tax losses	(1)	(186)	(114)
Write-off of tax losses	(125)
Others		(9)
Exchange differences	(18,178)	3,542	6,772
As at December 31	$ 264,639	$ 189,700	$ 122,378
PRC
Tax losses carried forward
Expiration period	5 years
PRC \| HNTEs
Tax losses carried forward
Expiration period	10 years
US
Tax losses carried forward
Research tax credits	$ 3,900
NEW JERSEY
Tax losses carried forward
Research tax credits	$ 1,200

Income Taxes - Income Tax Payab

Income Taxes - Income Tax Payable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
As at January 1	$ 15,546	$ 1,120	$ 1,828
Current tax	3,280	16,636	1,548
Withholding tax upon dividend declaration from PRC entities	2,186	5,148	2,323
Tax paid (note)	(18,891)	(5,014)	(5,940)
Reclassification from non-current withholding tax			812
Reclassification (from)/to prepaid tax	(241)	25	485
Divestment of an equity investee (Note 22)		(2,644)
Exchange difference	(768)	275	64
As at December 31	1,112	$ 15,546	1,120
Refund PRC EIT			$ 400
HBYS
Capital gain tax paid for gain on divestment of an equity investee	$ 14,400

Losses Per Share (Details)

Losses Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Basic losses per share
Weighted average number of outstanding ordinary shares in issue	847,143,540	792,684,524	697,931,437
Net loss attributable to the Company	$ (360,835)	$ (194,648)	$ (125,730)
Losses per share attributable to the Company	$ (0.43)	$ (0.25)	$ (0.18)

Segment Reporting - Segment Inf

Segment Reporting - Segment Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Segment reporting
Number of core business areas \| item	2
Revenue from external customers	$ 426,409	$ 356,128	$ 227,976
Interest income	9,599	2,076	3,236
Interest expense	(652)	(592)	(787)
Equity in earnings of equity investees, net of tax	49,753	60,617	79,046
Income tax benefit/(expense)	283	(11,918)	(4,829)
Net loss attributable to the Company	(360,835)	(194,648)	(125,730)
Depreciation/amortization	(8,664)	(7,190)	(6,061)
Additions to non-current assets (other than financial instruments and deferred tax assets)	48,973	30,999	25,235
Segment information
Total assets	1,029,445	1,372,661
Property, plant and equipment	75,947	41,275
Right-of-use assets	8,722	11,879
Leasehold land	11,830	13,169
Goodwill	3,137	3,380
Other intangible asset	85	163
Investments in equity investees	73,777	76,479
Oncology/Immunology segment
Segment reporting
Revenue from external customers	163,844	119,610	30,215
Other Ventures segment
Segment reporting
Revenue from external customers	262,565	236,518	197,761
Reportable segment \| Oncology/Immunology segment
Segment reporting
Revenue from external customers	163,844	119,610	30,215
Interest income	678	812	461
Equity in earnings of equity investees, net of tax	5	20	(97)
Income tax benefit/(expense)	4,870	5,862	73
Net loss attributable to the Company	(385,412)	(291,731)	(175,497)
Depreciation/amortization	(8,060)	(6,633)	(5,577)
Additions to non-current assets (other than financial instruments and deferred tax assets)	48,288	29,616	23,328
Segment information
Total assets	297,602	222,650
Property, plant and equipment	74,878	39,911
Right-of-use assets	6,517	8,566
Leasehold land	11,830	13,169
Investments in equity investees	316	480
Reportable segment \| Oncology/Immunology segment \| R&D
Segment reporting
Revenue from external customers	39,202	43,181	10,262
Interest income	678	812	461
Equity in earnings of equity investees, net of tax	5	20	(97)
Income tax benefit/(expense)	5,501	7,182	240
Net loss attributable to the Company	(402,779)	(295,763)	(182,779)
Depreciation/amortization	(8,060)	(6,633)	(5,577)
Additions to non-current assets (other than financial instruments and deferred tax assets)	48,288	29,616	23,328
Segment information
Total assets	251,618	186,672
Property, plant and equipment	74,878	39,911
Right-of-use assets	6,517	8,566
Leasehold land	11,830	13,169
Investments in equity investees	316	480
Reportable segment \| Oncology/Immunology segment \| R&D \| PRC
Segment reporting
Revenue from external customers	39,202	43,181	10,262
Interest income	674	809	461
Equity in earnings of equity investees, net of tax	5	20	(97)
Income tax benefit/(expense)	(552)	22	(402)
Net loss attributable to the Company	(215,834)	(143,528)	(120,096)
Depreciation/amortization	(7,576)	(6,436)	(5,458)
Additions to non-current assets (other than financial instruments and deferred tax assets)	47,563	25,295	22,574
Segment information
Total assets	221,337	166,802
Property, plant and equipment	72,775	38,049
Right-of-use assets	3,350	4,798
Leasehold land	11,830	13,169
Investments in equity investees	316	480
Reportable segment \| Oncology/Immunology segment \| R&D \| U.S. and others
Segment reporting
Interest income	4	3
Income tax benefit/(expense)	6,053	7,160	642
Net loss attributable to the Company	(186,945)	(152,235)	(62,683)
Depreciation/amortization	(484)	(197)	(119)
Additions to non-current assets (other than financial instruments and deferred tax assets)	725	4,321	754
Segment information
Total assets	30,281	19,870
Property, plant and equipment	2,103	1,862
Right-of-use assets	3,167	3,768
Reportable segment \| Oncology/Immunology segment \| Marketed Products \| PRC
Segment reporting
Revenue from external customers	124,642	76,429	19,953
Income tax benefit/(expense)	(631)	(1,320)	(167)
Net loss attributable to the Company	17,367	4,032	7,282
Segment information
Total assets	45,984	35,978
Reportable segment \| Other Ventures segment \| PRC
Segment reporting
Revenue from external customers	262,565	236,518	197,761
Interest income	272	282	167
Equity in earnings of equity investees, net of tax	49,748	60,597	79,143
Income tax benefit/(expense)	(1,345)	(14,573)	(824)
Net loss attributable to the Company	54,604	142,890	72,785
Depreciation/amortization	(299)	(318)	(292)
Additions to non-current assets (other than financial instruments and deferred tax assets)	664	1,056	817
Segment information
Total assets	235,500	225,898
Property, plant and equipment	735	746
Right-of-use assets	1,308	1,827
Goodwill	3,137	3,380
Other intangible asset	85	163
Investments in equity investees	73,461	75,999
Unallocated
Segment reporting
Interest income	8,649	982	2,608
Interest expense	(652)	(592)	(787)
Income tax benefit/(expense)	(3,242)	(3,207)	(4,078)
Net loss attributable to the Company	(30,027)	(45,807)	(23,018)
Depreciation/amortization	(305)	(239)	(192)
Additions to non-current assets (other than financial instruments and deferred tax assets)	21	327	$ 1,090
Segment information
Total assets	496,343	924,113
Property, plant and equipment	334	618
Right-of-use assets	$ 897	$ 1,486

Segment Reporting - Elimination

Segment Reporting - Elimination (Details) - USD ($)	12 Months Ended
Segment Reporting - Elimination (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue from External Customers
Revenue from external customers	$ 426,409,000	$ 356,128,000	$ 227,976,000
Intersegment elimination
Revenue from External Customers
Revenue from external customers	$ 55,433,000	$ 46,891,000	$ 19,230,000

Segment Reporting - Major Custo

Segment Reporting - Major Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting
Revenues	$ 426,409	$ 356,128	$ 227,976
Customer A
Segment Reporting
Revenues	75,606	56,082
Customer B
Segment Reporting
Revenues	51,681	49,055
Customer C
Segment Reporting
Revenues	$ 47,611	$ 41,974	36,500
Customer D
Segment Reporting
Revenues			$ 25,993

Note to Consolidated Statemen_3

Note to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating activities
Net loss	$ (360,386)	$ (167,041)	$ (115,517)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	8,664	7,190	6,061
Amortization of finance costs	18	44	43
Loss on disposals of property, plant and equipment	111	70	85
Provision for excess and obsolete inventories	293	(23)	65
Provision for credit losses, net	43	(76)	77
Share-based compensation expense-share options	6,736	16,365	8,737
Share-based compensation expense-LTIP	23,850	25,625	10,905
Equity in earnings of equity investees, net of tax	(49,753)	(60,617)	(79,046)
Dividends received from SHPL and HBYS	43,718	49,872	86,708
Impairment of investment in other equity investee	130
Changes in right-of-use assets	2,721	(3,727)	(2,197)
Fair value losses on warrant	2,452	12,548
Gain from divestment of HBYS		(121,310)
Unrealized currency translation loss/(gain)	13,274	(2,505)	(6,149)
Changes in income tax balances	(19,174)	6,904	(1,111)
Changes in working capital
Accounts receivable	(14,451)	(35,634)	(4,693)
Other receivables, prepayments and deposits	12,072	(5,758)	(9,602)
Inventories	(21,213)	(16,002)	(3,623)
Accounts payable	29,938	9,565	7,651
Other payables, accruals and advance receipts	52,629	66,224	37,472
Lease liabilities	(2,701)	3,079	2,258
Deferred revenue	386	11,071	(158)
Other	2,044	(87)	(32)
Total changes in working capital	58,704	32,458	29,273
Net cash used in operating activities	$ (268,599)	$ (204,223)	$ (62,066)

Litigation (Details)

Litigation (Details) $ in Thousands, ¥ in Millions	1 Months Ended
Litigation (Details) $ in Thousands, ¥ in Millions	Dec. 31, 2021 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2022 USD ($) claim	Jun. 27, 2022 CNY (¥)
Number of claims or actions pending \| claim			0
Damages awarded	$ 36,400	¥ 253.2
Annual interest rate on awarded amount	5.50%	5.50%
Recovery of costs	$ 2,200
Accounts receivable	83,580		$ 97,988
Accounts payable	41,177		71,115
Other payables	$ 12,988		12,210
Bank guarantee to cover award amount \| ¥				¥ 286
Seroquel
Accounts receivable			1,100
Long-term prepayment			500
Accounts payable			900
Other payables			$ 1,200

Restricted Net assets (Details)

Restricted Net assets (Details) - PRC - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Undistributed earnings in equity investees	$ 53.7	$ 54.4
Subsidiaries
Restricted net assets	$ 0.1	$ 0.1

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Events - Exclusive out-licensing agreement - Takeda Pharmaceuticals International AG $ in Millions	Jan. 23, 2023 USD ($)
Subsequent events
Maximum total payment amount per agreement	$ 1,130
Upfront payments per agreement on closing	$ 400