| Segment Reporting |
20. Segment Reporting The Group’s operating segments are Oncology/Immunology and Other Ventures. 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, out-licensing of in-house developed drugs, as well as administrative activities to support research and development operations; and |
| (b) | Marketed Products: comprises the invoiced sales, marketing, manufacture and distribution of drugs developed from research and development activities including out-licensed marketed products. |
Other Ventures comprises other commercial businesses which include the sales, marketing, manufacture and distribution of other prescription drugs and healthcare products. In general, revenue, cost of revenue and operating expenses are directly attributable, or are allocated, to each segment. The Company allocates costs and expenses that are not directly attributable to a specific segment mainly on the basis of headcount or usage, depending on the nature of the relevant costs and expenses. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information. The performance of the reportable segments is assessed based on segment net income/(loss) attributable to the Company. (i)Segment information: | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | | Oncology/Immunology | | | | | | | | | | | Marketed | | | | Other | | | | | | | R&D | | Products | | Subtotal | | Ventures | | Unallocated | | Total | | | | (in US$’000) | Revenue from external customers | | 40,887 | | 121,434 | | 162,321 | | 115,966 | | — | | 278,287 | Cost of revenue | | — | | (40,350) | | (40,350) | | (111,808) | | — | | (152,158) | Research and development expenses | | (78,783) | | — | | (78,783) | | — | | — | | (78,783) | Selling expenses | | — | | (12,709) | | (12,709) | | (1,973) | | — | | (14,682) | Administrative expenses | | (16,910) | | (2,186) | | (19,096) | | (2,327) | | (10,372) | | (31,795) | Interest income | | 309 | | — | | 309 | | 32 | | 26,201 | | 26,542 | Interest expense | | (1,049) | | — | | (1,049) | | (210) | | (166) | | (1,425) | Equity in earnings of equity investees, net of tax | | 11 | | — | | 11 | | 3,787 | | — | | 3,798 | Income tax expense | | (337) | | (465) | | (802) | | (27) | | (380) | | (1,209) | Other segment items | | (1,531) | | (9,453) | | (10,984) | | 396 | | (2,059) | | (12,647) | Net (loss)/income attributable to the Company | | (57,403) | | 56,271 | | (1,132) | | 3,836 | | 13,224 | | 15,928 | Depreciation/amortization | | (4,849) | | (2,149) | | (6,998) | | (53) | | (21) | | (7,072) | Impairment (note) | | — | | (8,941) | | (8,941) | | — | | — | | (8,941) | Additions to non-current assets (other than financial instruments and deferred tax assets) | | 6,774 | | 6 | | 6,780 | | 242 | | 3 | | 7,025 |
Note: On March 9, 2026, Ipsen S.A. announced the voluntary withdrawal of tazemetostat globally and the Group discontinued all tazemetostat commercial and development activities. Accordingly, the Group has fully impaired the related intangible asset and was included in Other income, net in the condensed consolidated statements of operations. | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | Oncology/Immunology | | | | | | | | | | | Marketed | | | | Other | | | | | | | R&D | | Products | | Subtotal | | Ventures | | Unallocated | | Total | | | | (in US$’000) | Revenue from external customers | | 44,408 | | 99,039 | | 143,447 | | 134,230 | | — | | 277,677 | Cost of revenue | | — | | (38,223) | | (38,223) | | (129,354) | | — | | (167,577) | Research and development expenses | | (71,990) | | — | | (71,990) | | — | | — | | (71,990) | Selling expenses | | — | | (11,828) | | (11,828) | | (2,045) | | — | | (13,873) | Administrative expenses | | (14,599) | | (1,564) | | (16,163) | | (2,222) | | (9,366) | | (27,751) | Gain on divestment of an equity investee | | — | | — | | — | | — | | 477,456 | | 477,456 | Interest income | | 509 | | — | | 509 | | 57 | | 19,023 | | 19,589 | Interest expense | | (1,033) | | — | | (1,033) | | (257) | | (175) | | (1,465) | Equity in earnings of an equity investee, net of tax | | — | | — | | — | | 23,125 | | — | | 23,125 | Income tax expense | | (394) | | (67) | | (461) | | (481) | | (62,220) | | (63,162) | Other segment items | | (2,612) | | (74) | | (2,686) | | 928 | | 4,683 | | 2,925 | Net (loss)/income attributable to the Company | | (45,711) | | 47,283 | | 1,572 | | 23,981 | | 429,401 | | 454,954 | Depreciation/amortization | | (5,602) | | (422) | | (6,024) | | (51) | | (43) | | (6,118) | Additions to non-current assets (other than financial instruments and deferred tax assets) | | 5,649 | | 10,000 | | 15,649 | | 150 | | — | | 15,799 |
| | | | | | | | | | | | | | | June 30, 2026 | | | Oncology/Immunology | | | | | | | | | | | Marketed | | | | Other | | | | | | | R&D | | Products | | Subtotal | | Ventures | | Unallocated | | Total | | | | (in US$’000) | Total assets | | 182,720 | | 87,454 | | 270,174 | | 148,795 | | 1,317,458 | | 1,736,427 | Property, plant and equipment | | 93,382 | | — | | 93,382 | | 367 | | 39 | | 93,788 | Right-of-use assets | | 6,159 | | — | | 6,159 | | 726 | | 445 | | 7,330 | Leasehold land | | 11,313 | | — | | 11,313 | | — | | — | | 11,313 | Goodwill | | — | | — | | — | | 3,234 | | — | | 3,234 | Investment in equity investees | | 4,446 | | — | | 4,446 | | 6,574 | | — | | 11,020 |
| | | | | | | | | | | | | | | December 31, 2025 | | | Oncology/Immunology | | | | | | | | | | | Marketed | | | | Other | | | | | | | R&D | | Products | | Subtotal | | Ventures | | Unallocated | | Total | | | | (in US$’000) | Total assets | | 175,378 | | 91,353 | | 266,731 | | 117,359 | | 1,369,007 | | 1,753,097 | Property, plant and equipment | | 94,194 | | — | | 94,194 | | 370 | | 59 | | 94,623 | Right-of-use assets | | 1,451 | | — | | 1,451 | | 918 | | 658 | | 3,027 | Leasehold land | | 10,954 | | — | | 10,954 | | — | | — | | 10,954 | Intangible asset | | — | | 8,941 | | 8,941 | | — | | — | | 8,941 | Goodwill | | — | | — | | — | | 3,112 | | — | | 3,112 | Investment in equity investees | | 5,725 | | — | | 5,725 | | 5,140 | | — | | 10,865 |
Unallocated mainly represent corporate expenses which include corporate administrative costs, corporate employee benefit expenses and the relevant share-based compensation expenses, net of interest income, as well as other one-off items. Unallocated assets mainly comprise cash and cash equivalents and short-term investments. (ii)Geographic information: | | | | | | | Six Months Ended June 30, | | | 2026 | | 2025 | | | | (in US$’000) | Revenue from external customers: | | | | | PRC | | 214,465 | | 205,120 | US and Others | | 63,822 | | 72,557 | | | 278,287 | | 277,677 |
| | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | | PRC | | US and Others | | Total | | PRC | | US and Others | | Total | | | | (in US$’000) | Total assets | | 1,685,889 | | 50,538 | | 1,736,427 | | 1,705,638 | | 47,459 | | 1,753,097 | Property, plant and equipment | | 93,470 | | 318 | | 93,788 | | 94,183 | | 440 | | 94,623 | Right-of-use assets | | 6,880 | | 450 | | 7,330 | | 2,489 | | 538 | | 3,027 | Leasehold land | | 11,313 | | — | | 11,313 | | 10,954 | | — | | 10,954 | Intangible asset | | — | | — | | — | | 8,941 | | — | | 8,941 | Goodwill | | 3,234 | | — | | 3,234 | | 3,112 | | — | | 3,112 | Investment in equity investees | | 6,574 | | 4,446 | | 11,020 | | 5,140 | | 5,725 | | 10,865 |
(iii)Other information: A summary of customers which accounted for over 10% of the Group’s revenue for the six months ended June 30, 2026 and 2025 is as follows: | | | | | | | Six Months Ended June 30, | | | 2026 | | 2025 | | | | (in US$’000) | Customer A | | 64,356 | | 32,513 | Customer B | | 63,822 | | 72,557 |
Customer A and B are included in Oncology/Immunology.
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