6-K

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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Month of June 2019

Commission File Number: 001-37710

HUTCHISON CHINA MEDITECH LIMITED
(Translation of registrant's name into English)

48th Floor, Cheung Kong Center, 2 Queen's Road Central, Hong Kong
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F    ý Form 40-F    o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):    o

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):    o

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

HUTCHISON CHINA MEDITECH LIMITED

Form 6-K

        As previously announced, Hutchison China MediTech Limited (the "Company" or "we") filed an application (the "Listing Application") with the Stock Exchange of Hong Kong Limited ("SEHK") in connection with a proposed listing (the "Listing") of our ordinary shares (the "Ordinary Shares"), par value US$0.10 per share, on the Main Board of the SEHK and concurrent global offering of our Ordinary Shares (the "Offering").

        In connection with the Listing and Offering, we furnish herewith our unaudited condensed consolidated interim financial information as of and for the three months ended March 31, 2018 and 2019 and certain updates regarding our business and financial information which have been included in our Listing Application. The Listing Application is not final and may be updated or revised from time to time in accordance with the rules of the SEHK.

        There is no assurance as to if or when the Listing and Offering will take place. This communication is neither an offer to sell nor a solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of our securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

FINANCIAL INFORMATION

Results of Operations for the Three Months Ended March 31, 2018 and 2019

        You should read the following discussion and analysis in conjunction with our unaudited condensed consolidated interim financial information as of and for the three months ended March 31, 2018 and 2019 attached hereto as Exhibit 99.1. Our interim unaudited condensed consolidated financial information as of and for the three months ended March 31, 2018 and 2019 is prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. Results for interim periods are not indicative of results for the full year or any future period.

        The following table sets forth a summary of our unaudited condensed consolidated results of operations for the periods indicated, both in absolute amounts and as percentages of our revenues.

	Three Months Ended March 31,
	2018				2019
	(Unaudited)
	US$'000		%		US$'000		%
Revenues	52,337		100.0		52,168		100.0
Costs of sales	(37,056	)	(70.8	)	(40,956	)	(78.5	)
Research and development expenses	(28,664	)	(54.8	)	(33,282	)	(63.8	)
Selling expenses	(4,615	)	(8.8	)	(3,785	)	(7.3	)
Administrative expenses	(7,023	)	(13.4	)	(10,195	)	(19.5	)
Other income/(expense)	1,151		2.2		1,143		2.2
Income tax expense	(1,565	)	(3.0	)	(1,309	)	(2.5	)
Equity in earnings of equity investees, net of tax	15,030		28.7		17,110		32.8
Net loss	(10,405	)	(19.9	)	(19,106	)	(36.6	)
Net loss attributable to the Company	(11,730	)	(22.4	)	(19,885	)	(38.1	)

Revenues

        Our total revenues have remained relatively stable, with total revenues of US$52.3 million for the three months ended March 31, 2018 and US$52.2 million for the three months ended March 31, 2019,

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despite the depreciation of the renminbi against the U.S. dollar by approximately 5% between the periods due to global macroeconomic factors.

        Revenue from our Commercial Platform increased by 3.3% from US$44.9 million for the three months ended March 31, 2018 to US$46.4 million for the three months ended March 31, 2019. This increase was driven by our Prescription Drugs business, whose revenue increased by 6.7% from US$35.5 million for the three months ended March 31, 2018 to US$37.8 million for the three months ended March 31, 2019, primarily due to increased revenue from Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Company Limited ("Hutchison Sinopharm"). Such growth was partially offset by a decrease in Consumer Health business revenue from US$9.4 million for the three months ended March 31, 2018 to US$8.5 million for the three months ended March 31, 2019, which was primarily due to decreased sales of various products.

        Revenue from our Innovation Platform decreased from US$7.4 million for the three months ended March 31, 2018 to US$5.8 million for the three months ended March 31, 2019. The decrease was primarily due to fact that we earned less clinical development service fees from our collaboration partners between the periods, while we recorded full-quarter revenue from sales and royalties from the commercial sale of Elunate in the three months ended March 31, 2019 (following its commercial launch in November 2018).

Cost of Sales

        Cost of sales includes the cost of goods distributed through the Innovation Platform and the Commercial Platform. Cost of sales also includes the cost of services incurred by Hutchison Sinopharm for the promotion of Seroquel in provinces in China where the fee-for-service model is applicable rather than the gross sales model. Under the gross sales model, we held and sold inventory of Seroquel such that our cost of sales under that model was the cost of acquiring such inventory and our related promotional activities for Seroquel were recorded under selling expenses. In contrast, under the fee-for-service model we ceased carrying inventory and only provided promotion services in exchange for a fee. As a result, in provinces where the two-invoice system was in effect and the fee-for-service model was therefore applicable, our cost of sales encompassed the cost of the services we provided and such cost was no longer reflected in selling expenses.

        Our cost of sales increased by 10.5% from US$37.1 million for the three months ended March 31, 2018 to US$41.0 million for the three months ended March 31, 2019. This increase was primarily due to increased revenue from Hutchison Sinopharm and the shift of promotion expenses for Seroquel sales previously recorded under selling expenses to cost of sales in provinces where the two-invoice system has been implemented. As a result, cost of sales as a percentage of our revenue increased from 70.8% to 78.5% across these periods. See "Recent Developments—Recent Commercial Platform Development" for developments in respect of Seroquel.

Research and Development Expenses

        Our research and development expenses increased by 16.1% from US$28.7 million for the three months ended March 31, 2018 to US$33.3 million for the three months ended March 31, 2019, which was primarily attributable to a significant expansion of clinical activities and related organizational growth to support these clinical activities. In particular, this increase was attributable to the expansion of the savolitinib, surufatinib and HMPL-523 development programs. As a result, research and development expenses as a percentage of our revenues increased from 54.8% to 63.8% across these periods.

Selling Expenses

        Our selling expenses decreased from US$4.6 million for the three months ended March 31, 2018 to US$3.8 million for the three months ended March 31, 2019. This decrease was primarily driven by the shift of promotion expenses for Seroquel sales to cost of sales in provinces where the two-invoice system has

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been implemented, which expenses were previously recorded under selling expenses. As a result, selling expenses as a percentage of our revenue decreased slightly from 8.8% to 7.3% across these periods.

Administrative Expenses

        Our administrative expenses increased from US$7.0 million for the three months ended March 31, 2018 to US$10.2 million for the three months ended March 31, 2019. This increase was primarily due to listing expenses accrued of US$1.6 million in relation to the Listing in Hong Kong and the Offering and an increase of US$1.1 million in administrative expenses incurred by our Innovation Platform, which was mainly for increased staff costs to support the expansion of our clinical activities. As a result, administrative expenses as a percentage of our revenue increased from 13.4% to 19.5% across these periods.

Other Income/(Expense)

        Other income, net of other expense, has remained relatively stable, with other income totaling US$1.2 million for the three months ended March 31, 2018 and US$1.1 million for the three months ended March 31, 2019. Other income is primarily comprised of interest income which increased by US$0.4 million due to higher yields on short-term investments and government grants which decreased by US$0.3 million as Hutchison Sinopharm recognized a one-time government grant during the three months ended March 31, 2018.

Income Tax Expense

        Our income tax expense decreased from US$1.6 million for the three months ended March 31, 2018 to US$1.3 million for the three months ended March 31, 2019 primarily due to a lower level of taxable income generated by our Commercial Platform subsidiaries, offset in part by withholding taxes accrued for the increase in net income at our Commercial Platform's non-consolidated joint ventures.

Equity in Earnings of Equity Investees

        Our equity in earnings of equity investees, net of tax, increased from US$15.0 million for the three months ended March 31, 2018 to US$17.1 million in the three months ended March 31, 2019, primarily due to an increase in net income at our Commercial Platform's non-consolidated joint ventures.

Net Loss

        As a result of the foregoing, our net loss increased from US$10.4 million for the three months ended March 31, 2018 to US$19.1 million for the three months ended March 31, 2019. Net loss attributable to our Company increased from US$11.7 million for the three months ended March 31, 2018 to US$19.9 million for the three months ended March 31, 2019.

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Net Current Assets

        The following table sets forth our current assets and current liabilities as of April 30, 2019:

	As of April 30, 2019
	US$'000
	(Unaudited)
Current assets:
Cash and cash equivalents		82,613
Short-term investments		180,395
Accounts receivable—third parties		42,482
Accounts receivable—related parties		1,149
Other receivables, prepayments and deposits		14,973
Amounts due from related parties		897
Inventories		17,472
Total current assets		339,981
Current liabilities:
Accounts payable		29,488
Other payables, accruals and advance receipts		70,377
Income tax payable		523
Deferred revenue		3,034
Amounts due to related parties		115
Lease liabilities		2,897
Total current liabilities		106,434
Net current assets		233,547

        Our net current assets decreased from US$285.1 million as of December 31, 2018, as disclosed in our audited consolidated financial statements, to US$233.5 million as of April 30, 2019, primarily due to the continued investment in research and development activities.

Indebtedness

        The table below sets forth a breakdown of our overall indebtedness as reported in the consolidated balance sheet, as of April 30, 2019. All amounts are unsecured and unguaranteed.

	As of April 30, 2019
	US$'000
	(Unaudited)
Non-current
Bank borrowings		26,771
Loan from non-controlling shareholders of subsidiaries		579
Lease liabilities		2,464
Current
Lease liabilities		2,897
Total indebtedness		32,711

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        The table below sets forth a maturity profile of our overall indebtedness as of April 30, 2019:

	As of April 30, 2019
	US$'000
	(Unaudited)
Indebtedness repayable within:
Less than one year		3,052
One to two years		28,880
Two to five years		563
Five years or more		579
		33,074
Less: unamortized debt issuance costs and interest		(363	)
Total indebtedness		32,711

        The Company's independent registered public accounting firm has not audited, reviewed or performed any procedures with respect to the Company's financial data as of April 30, 2019 and accordingly does not express an opinion or any other form of assurance with respect thereto. This data could change as a result of further review.

RECENT DEVELOPMENTS

Recent Commercial Platform Development

        In 2015, Hutchison Sinopharm began distributing and marketing AstraZeneca's quetiapine tablets, under the Seroquel trademark in China. In June 2018, AstraZeneca sold and licensed its rights to Seroquel to Luye Pharma Group, Ltd., including its rights in China. The terms of our agreement with AstraZeneca were assigned to Luye Pharma Hong Kong Ltd. ("Luye HK"). In May 2019, we received a notice from Luye HK purporting to terminate our agreement. We believe that they have no basis for termination and intend to vigorously enforce our rights under the current agreement. As a result of the foregoing purported termination, we are no longer providing marketing and distribution services in respect of Seroquel. We cannot be certain as to the outcome of this dispute or on our ability to resume marketing and distribution services for Seroquel in the future.

        For the year ended December 31, 2018 and the three months ended March 31, 2019, respectively, net income from our Seroquel business contributed approximately 4.0% and 1.3% of the net income attributable to our Company from our Commercial Platform.

Entry into New Credit Facilities

        On May 31, 2019, our subsidiary Hutchison China MediTech (HK) Limited entered into credit facilities with The Hongkong and Shanghai Banking Corporation Limited for the provision of unsecured credit facilities in the aggregate amount of HK$400.0 million (or US$51.3 million, assuming an exchange rate of HK$7.80 to US$1.00). The credit facilities include (i) a HK$210.0 million (US$26.9 million) term loan facility and (ii) a HK$190.0 million (US$24.4 million) revolving loan facility, both with a term of three years and an annual interest rate of 0.85% over the Hong Kong Inter-bank Offered Rate. The credit facilities are guaranteed by us and include certain financial covenant requirements. No amounts have been drawn from these credit facilities.

***

        The information in this Form 6-K is intended to be furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any

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filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.

        This Form 6-K contains forward-looking information about the Company within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements relating to the Company's expectations regarding the completion of the Listing and statements in the materials filed herewith identified by the words "expects," "anticipates," "believes," "intends," "estimates," "plans," "will," "outlook" and similar expressions are forward-looking statements which involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements.

        Such risks and uncertainties include those related to the completion of the SEHK's review of the Company's Listing Application, completion of the Offering, terms of the Offering, market conditions, the Company's ability to progress the development of its drug candidates and successfully commercialize them, the risk that the cost of the Listing to the Company will be more than planned, and other risks identified in the Company's SEC filings, including its annual report on Form 20-F for the year ended December 31, 2018 and subsequent filings with the SEC, including this Form 6-K. The Company cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to publicly update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

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EXHIBIT INDEX

Exhibit No.		Description
	Exhibit 99.1	Unaudited condensed consolidated interim financial information as of and for the three months ended March 31, 2018 and 2019

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SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

HUTCHISON CHINA MEDITECH LIMITED
By:	/s/ JOHNNY CHENG
	Name:	Johnny Cheng
	Title:	Chief Financial Officer

Date: June 6, 2019

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QuickLinks

HUTCHISON CHINA MEDITECH LIMITED
Form 6-K
FINANCIAL INFORMATION
RECENT DEVELOPMENTS
EXHIBIT INDEX
SIGNATURE

EX-99.1

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Exhibit 99.1

Hutchison China MediTech Limited
Condensed Consolidated Balance Sheets
(in US$'000, except share data)

	Note	December 31, 2018		March 31, 2019
				(Unaudited)
Assets
Current assets
Cash and cash equivalents	3	86,036		91,689
Short-term investments	4	214,915		180,174
Accounts receivable—third parties	5	40,176		42,273
Inventories	6	12,309		17,612
Other current assets		17,105		18,246
Total current assets		370,541		349,994
Property, plant and equipment		16,616		17,036
Right-of-use assets	7	—		5,176
Investments in equity investees	8	138,318		158,927
Deferred issuance costs		—		1,391
Other assets		6,643		6,773
Total assets		532,118		539,297
Liabilities and shareholders' equity
Current liabilities
Accounts payable	9	25,625		30,764
Other payables, accruals and advance receipts	10	56,327		64,160
Lease liabilities	7	—		3,191
Other current liabilities		3,527		3,210
Total current liabilities		85,479		101,325
Lease liabilities	7	—		2,522
Long-term bank borrowings	11	26,739		26,763
Other liabilities		7,645		8,332
Total liabilities		119,863		138,942
Commitments and contingencies	12
Company's shareholders' equity
Ordinary shares; $0.10 par value; 750,000,000 shares authorized; 666,577,450 shares issued at December 31, 2018 and March 31, 2019		66,658		66,658
Additional paid-in capital		505,585		508,550
Accumulated losses		(183,004	)	(203,583	)
Accumulated other comprehensive (loss)/income		(243	)	4,144
Total Company's shareholders' equity		388,996		375,769
Non-controlling interests		23,259		24,586
Total shareholders' equity		412,255		400,355
Total liabilities and shareholders' equity		532,118		539,297

The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.

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Hutchison China MediTech Limited
Condensed Consolidated Statements of Operations
(Unaudited, in US$'000, except share and per share data)

		Three Months Ended March 31,
	Note	2018		2019
Revenues
Goods—third parties		40,631		44,744
—related parties	16(i)	1,731		1,866
Services—commercialization—third parties		2,558		1,739
—collaboration research and development—third parties		4,835		2,714
—research and development—related parties	16(i)	2,582		127
Other collaboration revenue—royalties—third parties		—		978
Total revenues	14	52,337		52,168
Operating expenses
Costs of goods—third parties		(34,030	)	(38,316	)
Costs of goods—related parties		(1,209	)	(1,343	)
Costs of services—commercialization—third parties		(1,817	)	(1,297	)
Research and development expenses	15	(28,664	)	(33,282	)
Selling expenses		(4,615	)	(3,785	)
Administrative expenses		(7,023	)	(10,195	)
Total operating expenses		(77,358	)	(88,218	)
Loss from operations		(25,021	)	(36,050	)
Other income, net of other expenses		1,151		1,143
Loss before income taxes and equity in earnings of equity investees		(23,870	)	(34,907	)
Income tax expense	17	(1,565	)	(1,309	)
Equity in earnings of equity investees, net of tax	8	15,030		17,110
Net loss		(10,405	)	(19,106	)
Less: Net income attributable to non-controlling interests		(1,325	)	(779	)
Net loss attributable to the Company		(11,730	)	(19,885	)
Losses per share attributable to the Company—basic and diluted (US$ per share)	18	(0.02	)	(0.03	)
Number of shares used in per share calculation—basic and diluted	18	663,844,980		665,470,220

Note: The losses per share attributable to the Company—basic and diluted presented were adjusted retroactively for each of the three months ended March 31, 2018 and 2019 to take into account the share split approved by ordinary resolution at the extraordinary general meeting of the Company held on May 29, 2019, pursuant to which each ordinary share was subdivided into 10 ordinary shares.

The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.

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Hutchison China MediTech Limited
Condensed Consolidated Statements of Comprehensive Loss
(Unaudited, in US$'000)

	Three Months Ended March 31,
	2018		2019
Net loss	(10,405	)	(19,106	)
Other comprehensive income
Foreign currency translation gain	7,699		4,944
Total comprehensive loss	(2,706	)	(14,162	)
Less: Comprehensive income attributable to non-controlling interests	(2,150	)	(1,336	)
Total comprehensive loss attributable to the Company	(4,856	)	(15,498	)

The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.

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Hutchison China MediTech Limited
Condensed Consolidated Statements of Changes in Shareholders' Equity
(Unaudited, in US$'000, except share data in '000)

	Ordinary Shares Number	Ordinary Shares Value	Additional Paid-in Capital		Accumulated Losses		Accumulated Other Comprehensive Income/(Loss)		Total Company's Shareholders' Equity		Non- controlling Interests		Total Equity
As at January 1, 2018	664,470	66,447	496,960		(108,184	)	5,430		460,653		23,230		483,883
Net (loss)/income	—	—	—		(11,730	)	—		(11,730	)	1,325		(10,405	)
Issuances in relation to share option exercises	292	29	225		—		—		254		—		254
Share-based compensation
Share options	—	—	333		—		—		333		1		334
LTIP	—	—	2,080		—		—		2,080		7		2,087
	—	—	2,413		—		—		2,413		8		2,421
LTIP—treasury shares acquired and held by Trustee	—	—	(5,451	)	—		—		(5,451	)	—		(5,451	)
Transfer between reserves	—	—	15		(15	)	—		—		—		—
Foreign currency translation adjustments	—	—	—		—		6,874		6,874		825		7,699
As at March 31, 2018	664,762	66,476	494,162		(119,929	)	12,304		453,013		25,388		478,401
As at December 31, 2018	666,577	66,658	505,585		(183,004	)	(243	)	388,996		23,259		412,255
Impact of change in accounting policy (Note 2)	—	—	—		(655	)	—		(655	)	(16	)	(671	)
As at January 1, 2019	666,577	66,658	505,585		(183,659	)	(243	)	388,341		23,243		411,584
Net (loss)/income	—	—	—		(19,885	)	—		(19,885	)	779		(19,106	)
Share-based compensation
Share options	—	—	2,290		—		—		2,290		5		2,295
LTIP	—	—	982		—		—		982		2		984
	—	—	3,272		—		—		3,272		7		3,279
LTIP—treasury shares acquired and held by Trustee	—	—	(346	)	—		—		(346	)	—		(346	)
Transfer between reserves	—	—	39		(39	)	—		—		—		—
Foreign currency translation adjustments	—	—	—		—		4,387		4,387		557		4,944
As at March 31, 2019	666,577	66,658	508,550		(203,583	)	4,144		375,769		24,586		400,355

The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.

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Hutchison China MediTech Limited
Condensed Consolidated Statements of Cash Flows
(Unaudited, in US$'000)

		Three Months Ended March 31,
	Note	2018		2019
Net cash used in operating activities	20	(30,840	)	(28,923	)
Investing activities
Purchases of property, plant and equipment		(1,318	)	(1,361	)
Deposits in short-term investments		(244,004	)	(175,174	)
Proceeds from short-term investments		273,031		209,915
Net cash generated from investing activities		27,709		33,380
Financing activities
Proceeds from issuance of ordinary shares		254		—
Purchases of treasury shares	13(ii)	(5,451	)	(346	)
Payment of issuance costs		(34	)	—
Net cash used in financing activities		(5,231	)	(346	)
Net (decrease)/increase in cash and cash equivalents		(8,362	)	4,111
Effect of exchange rate changes on cash and cash equivalents		1,194		1,542
		(7,168	)	5,653
Cash and cash equivalents
Cash and cash equivalents at beginning of period		85,265		86,036
Cash and cash equivalents at end of period		78,097		91,689

The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.

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Hutchison China MediTech Limited
Notes to the Interim Unaudited Condensed Consolidated Financial Statements

1. Organization and Nature of Business

        Hutchison China MediTech Limited (the "Company") and its subsidiaries (together the "Group") are principally engaged in researching, developing, manufacturing and selling pharmaceuticals and healthcare 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 and Hong Kong.

Liquidity

        As at March 31, 2019, the Group had accumulated losses of US$203,583,000 primarily due to its spending in drug research and development ("Drug R&D") 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 March 31, 2019, the Group had cash and cash equivalents of US$91,689,000, short-term investments of US$180,174,000 and unutilized bank borrowing facilities of US$119,359,000. Short-term investments comprised of bank deposits maturing over three months. The Group's operating plan includes the continued receipt of dividends from certain of its equity investees.

        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 (the look-forward period used).

2. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

        The interim unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The interim unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements, except for the adoption of Accounting Standards Codification ("ASC") 842, Leases ("ASC 842") as described below. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for the fair statement of results for the periods presented, have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year or any other interim period.

        The comparative year-end condensed balance sheet data was derived from the annual audited consolidated financial statements, but is condensed to the same degree as the interim condensed balance sheet data.

        The interim unaudited condensed consolidated financial statements and related disclosures have been prepared with the presumption that users have read or have access to the annual audited consolidated financial statements for the preceding fiscal year.

        The preparation of interim unaudited condensed 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 interim unaudited condensed consolidated financial statements and the reported amounts of revenues and

6

expenses during the reporting period. Estimates are used in determining items such as useful lives of property, plant and equipment, write-down of inventories, allowance for doubtful accounts, share-based compensation, impairments of long-lived assets, impairment of other intangible asset and goodwill, income tax expenses, tax valuation allowances, revenues and cost accruals from research and development projects. Actual results could differ from those estimates.

Leases

Summary of impact of applying ASC 842

        The Group applied ASC 842 to its various leases at the date of initial application of January 1, 2019. As a result, the Group has changed its accounting policy for leases as detailed below. The core principle of ASC 842 is that a lessee should recognize the assets and liabilities that arise from leases. Therefore, the Group recognizes in the condensed consolidated balance sheets liabilities to make lease payments (the lease liabilities) and right-of-use assets representing its right to use the underlying assets for their lease terms. The Group applied ASC 842 using the optional transition method by recognizing the cumulative effect as an adjustment to opening accumulated losses as at January 1, 2019. The comparative information prior to January 1, 2019 has not been adjusted and continues to be reported under ASC 840, Leases ("ASC 840").

        The Group assessed lease agreements as at January 1, 2019 under ASC 842, except for short-term leases. The Group elected the short-term lease exception for leases with a term of 12 months or less and recognizes lease expenses for such leases on a straight-line basis over the lease term and does not recognize right-of-use assets or lease liabilities accordingly. As a result of this assessment, the Group recorded an aggregate US$0.7 million in additional lease expenses as a cumulative adjustment to opening accumulated losses upon adoption. Additionally, the Group recognized right-of-use assets and lease liabilities of US$5.7 million and US$6.4 million respectively as at January 1, 2019.

        The lease liabilities were measured at the present value of the remaining lease payments, discounted using the lessees' incremental borrowing rate as at January 1, 2019. The Group's weighted average incremental borrowing rate applied on January 1, 2019 was 3.97% per annum.

        A reconciliation of the Group's reported operating lease commitments as at December 31, 2018 and the Group's lease liabilities recognized upon adoption of ASC 842 as at January 1, 2019 is as follows:

	(in US$'000)
Operating lease commitments as at December 31, 2018 (note (a))		8,835
Less: Leases not commenced as at January 1, 2019		(3,676	)
Less: Short-term leases		(5	)
Add: Adjustment as a result of the treatment for a termination option (note (b))		1,409
Less: Discount under the lessees' incremental borrowing rate as at January 1, 2019		(206	)
Lease liabilities recognized as at January 1, 2019		6,357

7

Notes:

(a)

Future aggregate minimum payments under non-cancellable operating leases under ASC 840 were as follows:

	December 31, 2018
	(in US$'000)
Not later than 1 year		3,026
Between 1 to 2 years		2,735
Between 2 to 3 years		1,056
Between 3 to 4 years		882
Between 4 to 5 years		810
Later than 5 years		326
Total minimum lease payments		8,835

(b)

The Group leases its corporate offices in Hong Kong through a support service agreement with an indirect subsidiary of CK Hutchison Holdings Limited ("CK Hutchison"), which is the Company's ultimate holding company. The support service agreement may be terminated by giving 3-months advance notice; therefore, there was no lease commitment beyond the 3-months advance notice period as at December 31, 2018. This termination option is not considered probable of exercise for the purposes of applying ASC 842.

        The Group recognized right-of-use assets as at January 1, 2019 measured at their carrying amounts as if ASC 842 had been applied since their commencement dates, but discounted using the lessees' incremental borrowing rate as at January 1, 2019.

        Recognized right-of-use assets was as follows:

	(in US$'000)
Offices		4,877
Factories		383
Others		487
		5,747

        There were no adjustments to net cash generated from/(used in) operating activities, investing activities or financing activities in the condensed consolidated statement of cash flows.

        In applying ASC 842 for the first time, the Group has used the following practical expedients permitted by the standard: (i) no reassessment of whether any expired or existing contracts are or contain leases; (ii) no reassessment of the lease classification for any expired or existing leases; (iii) the exclusion of initial direct costs for the measurement of the right-of-use assets at the date of initial application; and (iv) the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

Updated accounting policy—ASC 842

        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.

8

        Lease liabilities include the net present value of the following lease payments: (i) fixed payments; (ii) variable lease payments; 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.

3. Cash and Cash Equivalents

	December 31, 2018		March 31, 2019
	(in US$'000)
Cash at bank and on hand		78,556		51,409
Bank deposits maturing in three months or less (note (a))		7,480		40,280
		86,036		91,689
Denominated in:
US$ (note (b))		58,291		73,539
RMB (note (b))		23,254		15,739
UK Pound Sterling ("£") (note (b))		331		84
Hong Kong dollar ("HK$")		4,160		2,327
		86,036		91,689

Notes:

(a)

The weighted average effective interest rate on bank deposits for the year ended December 31, 2018 and the three months ended March 31, 2019 was 1.98% per annum and 2.49% per annum respectively (with maturity ranging from 7 to 90 days and 30 to 35 days respectively).

9

(b)

Certain cash and bank balances denominated in RMB, US$ and £ 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.

4. Short-term Investments

	December 31, 2018		March 31, 2019
	(in US$'000)
Bank deposits maturing over three months (note)
Denominated in:
US$		214,538		179,796
HK$		377		378
		214,915		180,174

Note: The weighted average effective interest rate on bank deposits for the year ended December 31, 2018 and the three months ended March 31, 2019 was 2.18% per annum and 2.82% per annum respectively (with maturity ranging from 91 to 100 days and 91 to 97 days respectively).

5. Accounts Receivable—Third Parties

        Accounts receivable from contracts with customers, net of allowance for doubtful accounts, consisted of the following:

	December 31, 2018			March 31, 2019
	(in US$'000)
Accounts receivable, gross		40,217			42,360
Allowance for doubtful accounts		(41	)		(87	)
Accounts receivable, net		40,176			42,273

        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.

        Movements on the allowance for doubtful accounts:

	2018			2019
	(in US$'000)
As at January 1		258			41
Increase in allowance for doubtful accounts		171			76
Decrease in allowance due to subsequent collection		(160	)		(31	)
Exchange difference		12			1
As at March 31		281			87

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        An aging analysis based on the relevant invoice dates is as follows:

	December 31, 2018		March 31, 2019
	(in US$'000)
Not later than 3 months		37,326		39,603
Between 3 months to 6 months		2,704		2,595
Between 6 months to 1 year		61		162
Later than 1 year		126		—
Accounts receivable, gross		40,217		42,360

6. Inventories

        Inventories, net of provision for excess and obsolete inventories, consisted of the following:

	December 31, 2018		March 31, 2019
	(in US$'000)
Raw materials		652		1,333
Finished goods		11,657		16,279
		12,309		17,612

7. Leases

        The Group leases various offices, factories and other assets. Lease contracts are typically within a period of 1 to 5 years.

        Leases consisted of the following:

	March 31, 2019
	(in US$'000)
Right-of-use assets
Offices (note (a))	4,308
Factories	325
Others (note (b))	543
Total right-of-use assets	5,176
Lease liabilities—current	3,191
Lease liabilities—non-current	2,522
	5,713

Notes:

(a)

Includes (i) US$0.2 million right-of-use asset for offices in the United States of America that is leased through July 2023 which includes an option to renew the lease up to an additional 3 years; and (ii) US$1.4 million right-of-use asset for corporate offices in Hong Kong that is leased through May 2021 which includes a termination option with 3 months advance notice. The renewal and termination options were not recognized as part of the right-of-use assets and lease liabilities.

(b)

Includes US$0.4 million right-of-use asset for retail space in the United Kingdom that is leased through May 2022 which the Group has subleased through May 2022.

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        Lease activities are summarized as follows:

	Three Months Ended March 31, 2019
	(in US$'000)
Lease expenses:
Short-term leases with lease terms equal or less than 12 months	12
Leases with lease terms greater than 12 months	818
	830
Sublease rental income	61
Cash paid on lease liabilities	852
Non-cash: Lease liabilities recognized from obtaining right-of-use assets	—

        The weighted average remaining lease term and the weighted average discount rate as at March 31, 2019 was 1.83 years and 3.96% respectively.

        Future lease payments are as follows:

	March 31, 2019
	(in US$'000)
Lease payments:
Not later than 1 year		3,356
Between 1 to 2 years		2,006
Between 2 to 3 years		449
Between 3 to 4 years		105
Between 4 to 5 years		25
Total lease payments		5,941
Less: Discount factor		(228	)
Total lease liabilities		5,713

8. Investments in Equity Investees

        Investments in equity investees consisted of the following:

	December 31, 2018	March 31, 2019
	(in US$'000)
Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited ("HBYS")	60,992	65,594
Shanghai Hutchison Pharmaceuticals Limited ("SHPL")	68,812	84,737
Nutrition Science Partners Limited ("NSPL")	8,102	8,109
Other	412	487
	138,318	158,927

        All of the equity investees are private companies and there are no quoted market prices available for their shares.

12

        Summarized financial information for the significant equity investees HBYS, SHPL and NSPL is as follows:

(i)    Summarized balance sheets

	Commercial Platform								Innovation Platform
	Consumer Health HBYS				Prescription Drugs SHPL				Drug R&D NSPL
	December 31, 2018		March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018		March 31, 2019
	(in US$'000)
Current assets	116,020		142,306		124,512		148,151		17,320		16,633
Non-current assets	100,353		102,819		98,532		101,305		—		—
Current liabilities	(73,974	)	(93,365	)	(84,357	)	(78,528	)	(1,117	)	(415	)
Non-current liabilities	(17,302	)	(17,481	)	(6,909	)	(7,454	)	—		—
Net assets	125,097		134,279		131,778		163,474		16,203		16,218
Non-controlling interests	(3,113	)	(3,090	)	—		—		—		—
	121,984		131,189		131,778		163,474		16,203		16,218

(ii)   Summarized statements of operations

	Commercial Platform								Innovation Platform
	Consumer Health HBYS				Prescription Drugs SHPL				Drug R&D NSPL(note(a))
	Three Months Ended March 31,				Three Months Ended March 31,				Three Months Ended March 31,
	2018		2019		2018		2019		2018		2019
	(in US$'000)
Revenue	62,090		58,484		86,733		89,501		—		—
Gross profit	30,557		31,505		63,114		64,582		—		—
Interest income	35		33		214		141		—		44
Finance cost	(30	)	(4	)	—		—		—		—
Profit/(loss) before taxation	6,749		7,056		31,300		32,813		(2,194	)	15
Income tax expense (note (b))	(1,141	)	(1,163	)	(4,670	)	(4,715	)	—		—
Net income/(loss)	5,608		5,893		26,630		28,098		(2,194	)	15
Non-controlling interests	2		89		—		—		—		—
Net income/(loss) attributable to the shareholders of equity investee	5,610		5,982		26,630		28,098		(2,194	)	15

Notes:

(a)

NSPL primarily incurred research and development expenses during the three months ended March 31, 2018 and did not have any activity for the three months ended March 31, 2019.

(b)

The main entities within the HBYS and SHPL groups have been granted the High and New Technology Enterprise ("HNTE") status. Accordingly, the entities were eligible to use a preferential income tax rate of 15% for the three months ended March 31, 2018 and 2019.

13

        For the three months ended March 31, 2018 and 2019, other immaterial equity investees had net income of approximately US$15,000 and US$125,000 respectively.

(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:

	Commercial Platform						Innovation Platform(note)
	Consumer Health HBYS			Prescription Drugs SHPL			Drug R&D NSPL
	2018	2019		2018	2019		2018		2019
	(in US$'000)
Opening net assets after non-controlling interests as at January 1	110,616	121,984		132,731	131,778		38,401		16,203
Impact of change in accounting policy (ASC 842)	—	(19	)	—	(2	)	—		—
Net income/(loss) attributable to the shareholders of equity investee	5,610	5,982		26,630	28,098		(2,194	)	15
Other comprehensive income	4,727	3,242		5,995	3,600		—		—
Closing net assets after non-controlling interests as at March 31	120,953	131,189		165,356	163,474		36,207		16,218
Group's share of net assets	60,477	65,594		82,678	81,737		18,104		8,109
Goodwill	—	—		3,179	3,000		—		—
Carrying amount of investments as at March 31	60,477	65,594		85,857	84,737		18,104		8,109

Note: The Innovation Platform includes other immaterial equity investees. As at December 31, 2018 and March 31, 2019, the aggregate carrying amount of investments in NSPL and other immaterial equity investees was approximately US$8,514,000 and US$8,596,000 respectively.

        The equity investees had the following capital commitments:

	March 31, 2019
	(in US$'000)
Property, plant and equipment
Contracted but not provided for	1,807

9. Accounts Payable

	December 31, 2018	March 31, 2019
	(in US$'000)
Accounts payable—third parties	14,158	19,204
Accounts payable—non-controlling shareholders of subsidiaries (Note 16(iv))	4,960	4,143
Accounts payable—related party (Note 16(ii))	6,507	7,417
	25,625	30,764

        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.

14

        An aging analysis based on the relevant invoice dates is as follows:

	December 31, 2018	March 31, 2019
	(in US$'000)
Not later than 3 months	19,185	23,642
Between 3 months to 6 months	5,584	4,225
Between 6 months to 1 year	703	2,762
Later than 1 year	153	135
	25,625	30,764

10. Other Payables, Accruals and Advance Receipts

        Other payables, accruals and advance receipts consisted of the following:

	December 31, 2018	March 31, 2019
	(in US$'000)
Accrued salaries and benefits	8,715	6,056
Accrued research and development expenses	28,883	37,219
Accrued selling and marketing expenses	4,675	4,756
Accrued administrative and other general expenses	6,181	9,897
Deferred government incentives	1,817	384
Deposits	1,230	1,899
Dividend payable to non-controlling shareholder of subsidiary (Note 16(iv))	1,282	1,282
Others	3,544	2,667
	56,327	64,160

11. Bank Borrowings

        Bank borrowings consisted of the following:

	December 31, 2018	March 31, 2019
	(in US$'000)
Non-current	26,739	26,763

        The weighted average interest rate for outstanding bank borrowings for the year ended December 31, 2018 and the three months ended March 31, 2019 was 2.79% per annum and 2.94% per annum respectively. The carrying amounts of the Group's bank borrowings are all denominated in HK$.

(i)    3-year term loan and 18-month revolving loan facilities

        In November 2017, the Group through its subsidiary, entered into facility agreements with a bank for the provision of unsecured credit facilities in the aggregate amount of HK$400,000,000 (US$51,282,000). The credit facilities include (i) a HK$210,000,000 (US$26,923,000) 3-year term loan facility and (ii) a HK$190,000,000 (US$24,359,000) 18-month revolving loan facility. The term loan bears interest at 1.50% over the Hong Kong Interbank Offered Rate ("HIBOR") per annum and an upfront fee of HK$1,575,000 (US$202,000). The revolving loan facility bears interest at 1.25% over HIBOR per annum. The term loan was drawn in May 2018 and is due in November 2020. Accordingly, the term loan is recorded under long-term bank borrowings as at December 31, 2018 and March 31, 2019. As at December 31, 2018 and

15

March 31, 2019, no amount has been drawn from the revolving loan facility. These credit facilities are guaranteed by the Company.

(ii)   2-year revolving loan facilities

        In August 2018, the Group through its subsidiary, entered into two separate facility agreements with banks for the provision of unsecured credit facilities in the aggregate amount of HK$507,000,000 (US$65,000,000). The first credit facility is a HK$351,000,000 (US$45,000,000) revolving loan facility, with a term of 2 years and an annual interest rate of 1.35% over HIBOR. The second credit facility is a HK$156,000,000 (US$20,000,000) revolving loan facility, with a term of 2 years and an annual interest rate of 1.35% over HIBOR. These credit facilities are guaranteed by the Company. As at December 31, 2018 and March 31, 2019, no amount has been drawn from either of the revolving loan facilities.

(iii) 3-year revolving loan facility

        In November 2018, the Group through its subsidiary renewed a 3-year revolving loan facility with a bank in the aggregate amount of HK$234,000,000 (US$30,000,000) with an annual interest rate of 0.85% over HIBOR. This credit facility is guaranteed by the Company. As at December 31, 2018 and March 31, 2019, no amount has been drawn from the revolving loan facility.

        The Group's bank borrowings are repayable as from the dates indicated as follows:

	December 31, 2018	March 31, 2019
	(in US$'000)
Not later than 1 year	—	—
Between 1 to 2 years	26,923	26,923
	26,923	26,923

        As at December 31, 2018 and March 31, 2019, the Group had unutilized bank borrowing facilities of HK$931,000,000 (US$119,359,000).

12. Commitments and Contingencies

Capital commitments

        The Group had the following capital commitments:

	March 31, 2019
	(in US$'000)
Property, plant and equipment
Contracted but not provided for	1,341

        The Group does not have any other significant commitments or contingencies.

16

13. 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 (the "HCML Share Option Scheme"). Pursuant to the HCML 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 March 31, 2019, the aggregate number of shares issuable under the HCML Share Option Scheme is 23,130,970 ordinary shares and the aggregate number of shares issuable under the prior share option scheme which expired in 2016 is 1,845,180 ordinary shares. Additionally, the number of shares authorized but unissued was 83,422,550 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 to ten years from the date of grant.

        A summary of the Company's share option activity and related information is as follows:

	Number of share options		Weighted average exercise price in £ per share	Weighted average remaining contractual life (years)	Aggregate intrinsic value (in £'000)
Outstanding at January 1, 2018	11,264,120		1.77	6.29	43,158
Granted	10,606,260		4.69
Exercised	(2,107,080	)	1.40
Cancelled	(1,208,450	)	4.30
Outstanding at December 31, 2018	18,554,850		3.31	7.35	15,158
Cancelled	(145,350	)	4.65
Outstanding at March 31, 2019	18,409,500		3.30	7.09	24,301
Vested and exercisable at December 31, 2018	8,032,040		1.68	4.84	14,843
Vested and exercisable at March 31, 2019	8,532,040		1.82	4.82	23,437

17

        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,
	2011	2013	2016	2017	2018
Weighted average grant date fair value of share options (in £ per share)	0.18	0.32	0.90	1.27	1.67
Significant inputs into the valuation model (weighted average):
Exercise price (in £ per share)	0.44	0.61	1.97	3.11	4.69
Share price at effective date of grant (in £ per share)	0.43	0.61	1.97	3.11	4.66
Expected volatility (note (a))	46.6%	36.0%	39.0%	36.3%	37.6%
Risk-free interest rate (note (b))	3.13%	3.16%	1.00%	1.17%	1.46%
Contractual life of share options (in years)	10	10	8	10	10
Expected dividend yield (note (c))	0%	0%	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)

The risk-free interest rates used in the Polynomial model are with reference to 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 in the foreseeable future, 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:

	Three Months Ended March 31,
	2018	2019
	(in US$'000)
Cash received from share options exercised	254	—
Total intrinsic value of share options exercised	1,764	—

        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:

	Three Months Ended March 31,
	2018	2019
	(in US$'000)
Research and development expenses	334	2,109
Administrative expenses	—	186
	334	2,295

        As at March 31, 2019, the total unrecognized compensation cost was US$13,028,000, and will be recognized on a graded vesting approach over the weighted average remaining service period of 3.07 years.

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(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, free cash flows, 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, as an equity-settled award. 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 profit or loss.

        Granted awards under the LTIP are as follows:

Grant date	Maximum cash amount per annum (in US$ millions)	Covered financial years		Performance target determination date
October 19, 2015	1.8	2014-2016		note (a	)
March 24, 2016	0.3	note (b	)	note (b	)
March 15, 2017	0.4	note (c	)	note (c	)
March 15, 2017 and August 2, 2017	6.0	2017-2019		note (d	)
December 15, 2017	0.5	2018-2019		note (d	)
August 6, 2018	0.1	2018-2019		note (d	)
December 14, 2018	1.5	2019		note (d	)

Notes:

(a)

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 one business day after the publication date of the annual report of the Company for the financial year falling two years after the covered financial year to which the LTIP award relates.

(b)

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.

(c)

This award did not stipulate performance targets and vested one business day after the publication date of the annual report for the 2017 financial year.

(d)

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.

19

        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 Group using funds provided by the Group. 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) purchased and held by the Trustee were as follows:

	Number of treasury shares		Cost (in US$'000)
As at January 1, 2018	559,775		1,957
Purchased	795,005		5,451
Vested	(233,750	)	(731	)
As at December 31, 2018	1,121,030		6,677
Purchased	60,430		346
Vested	(240,150	)	(944	)
As at March 31, 2019	941,310		6,079

        For the three months ended March 31, 2018 and 2019, US$59,000 and US$37,000 of the LTIP awards were forfeited respectively.

        The following table presents the share-based compensation expenses recognized under the LTIP awards:

	Three Months Ended March 31,
	2018	2019
	(in US$'000)
Research and development expenses	475	361
Selling and administrative expenses	405	275
	880	636
Recorded with a corresponding credit to:
Liability	563	178
Additional paid-in capital	317	458
	880	636

        For the three months ended March 31, 2018 and 2019, US$1,770,000 and US$526,000 were reclassified from liability to additional paid-in capital respectively upon LTIP awards reaching the determination date. As at December 31, 2018 and March 31, 2019, US$1,235,000 and US$887,000 were recorded as liabilities respectively for LTIP awards prior to the determination date.

        As at March 31, 2019, the total unrecognized compensation cost was approximately US$3,990,000, which considers expected performance targets and the amount expected to vest, and will be recognized over the requisite periods.

20

14. Revenues

        The following table presents revenue disaggregated by customer types, major categories and reportable segments:

	Three Months Ended March 31, 2018
	Innovation Platform	Commercial Platform	Total
	(in US$'000)
Customer types
Third parties—Distribution	—	43,189	43,189
Third parties—Collaboration	4,835	—	4,835
Related parties (Note 16(i))	2,582	1,731	4,313
	7,417	44,920	52,337
Major categories
Goods	—	42,362	42,362
Services	7,417	2,558	9,975
	7,417	44,920	52,337

	Three Months Ended March 31, 2019
	Innovation Platform	Commercial Platform	Total
	(in US$'000)
Customer types
Third parties—Distribution	1,959	44,524	46,483
Third parties—Collaboration	3,692	—	3,692
Related parties (Note 16(i))	127	1,866	1,993
	5,778	46,390	52,168
Major categories
Goods	1,959	44,651	46,610
Services	2,841	1,739	4,580
Royalties	978	—	978
	5,778	46,390	52,168

15. Research and Development Expenses

        Research and development expenses are summarized as follows:

	Three Months Ended March 31,
	2018	2019
	(in US$'000)
Clinical trial related costs	19,472		19,706
Personnel compensation and related costs	7,850		11,295
Other research and development expenses	1,342		2,281
	28,664		33,282

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16. 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:

	Three Months Ended March 31,
	2018	2019
	(in US$'000)
Sales to:
Indirect subsidiaries of CK Hutchison	1,731		1,866
Revenue from research and development services from:
Equity investees	2,582		127
Purchases from:
Equity investees	662		1,062
Rendering of marketing services from:
Indirect subsidiaries of CK Hutchison	172		94
An equity investee	3,197		1,736
	3,369		1,830
Rendering of support services from:
An indirect subsidiary of CK Hutchison	227		233

(ii)   Balances with related parties included in:

	December 31, 2018	March 31, 2019
	(in US$'000)
Accounts receivable—related parties
Indirect subsidiaries of CK Hutchison (note (a))	2,709		2,189
An equity investee (note (a))	73		—
	2,782		2,189
Accounts payable
An equity investee (note (a))	6,507		7,417
Amounts due from related parties
Equity investees (note (a))	889		893
Amounts due to related parties
An indirect subsidiary of CK Hutchison (note (b))	432		623
Other deferred income
An equity investee (note (c))	1,356		1,335

Notes:

(a)

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.

22

(b)

Amounts due to an indirect subsidiary of CK Hutchison are unsecured, repayable on demand and interest-bearing if not settled within one month.

(c)

Other deferred income represents amounts recognized from granting of promotion and marketing rights.

(iii) Transactions with non-controlling shareholders of subsidiaries:

	Three Months Ended March 31,
	2018	2019
	(in US$'000)
Sales	5,740		6,034
Purchases	3,323		3,504
Interest expense	18		—

(iv)  Balances with non-controlling shareholders of subsidiaries included in:

	December 31, 2018	March 31, 2019
	(in US$'000)
Accounts receivable—third parties	5,070		4,193
Accounts payable	4,960		4,143
Other payables, accruals and advance receipts
Dividend payable	1,282		1,282
Other non-current liabilities
Loan	579		579

17. Income Taxes

	Three Months Ended March 31,
	2018	2019
	(in US$'000)
Current tax
HK (note (a))	113		85
PRC (note (b))	537		352
Other	50		69
Deferred income tax	865		803
Income tax expense	1,565		1,309

Notes:

(a)

The Company, two subsidiaries incorporated in the British Virgin Islands and its Hong Kong subsidiaries are subject to Hong Kong profits tax which has been provided for at the rate of 16.5% on the estimated assessable profits less estimated available tax losses in each entity.

(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

23

addition, the EIT Law provides for, among others, a preferential tax rate of 15% for companies which qualify as HNTE. HMPL and its wholly-owned subsidiary Hutchison MediPharma (Suzhou) Limited qualify as a HNTE up to December 31, 2019 and 2020 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 major subsidiaries and 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, 2018 and March 31, 2019, 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 major subsidiaries and equity investees operating in the PRC will be distributed as dividends.

        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:

	Three Months Ended March 31,
	2018		2019
	(in US$'000)
Loss before income taxes and equity in earnings of equity investees	(23,870	)	(34,907	)
Tax calculated at the statutory tax rate of the Company	(3,939	)	(5,760	)
Tax effects of:
Different tax rates available in different jurisdictions	1,204		1,220
Tax valuation allowance	5,472		6,499
Preferential tax deduction	(1,793	)	(1,721	)
Expenses not deductible for tax purposes	195		695
Utilization of previously unrecognized tax losses	(110	)	(165	)
Withholding tax on undistributed earnings of PRC entities	832		858
Others	(296	)	(317	)
Income tax expense	1,565		1,309

18. 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 period. Treasury shares held

24

by the Trustee are excluded from the weighted average number of outstanding ordinary shares in issue for purposes of calculating basic losses per share.

	Three Months Ended March 31,
	2018		2019
Weighted average number of outstanding ordinary shares in issue	663,844,980		665,470,220
Net loss attributable to the Company (US$'000)	(11,730	)	(19,885	)
Losses per share attributable to the Company (US$ per share)	(0.02	)	(0.03	)

(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 period. Dilutive ordinary share equivalents include shares issuable upon the exercise or settlement of share option and LTIP awards issued by the Company using the treasury stock method.

        For the three months ended March 31, 2018 and 2019, the share options and LTIP awards 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 was equal to basic losses per share for the three months ended March 31, 2018 and 2019.

        Note: The losses per share attributable to the Company—basic and diluted presented were adjusted retroactively for each of the three months ended March 31, 2018 and 2019 to take into account the share split approved by ordinary resolution at the extraordinary general meeting of the Company held on May 29, 2019, pursuant to which each ordinary share was subdivided into 10 ordinary shares.

19. Segment Reporting

        The Group determines its operating segments from both business and geographic perspectives as follows:

(i)

Innovation Platform (Drug R&D): focuses on discovering, developing and commercializing targeted therapeutics in oncology and autoimmune diseases, and the provision of research and development services; and



(ii)

Commercial Platform: comprises of the manufacture, marketing and distribution of prescription and over-the-counter pharmaceuticals in the PRC as well as consumer health products through Hong Kong. The Commercial Platform is further segregated into two core business areas:



(a)

Prescription Drugs: comprises the development, manufacture, distribution, marketing and sale of prescription pharmaceuticals; and



(b)

Consumer Health: comprises the development, manufacture, distribution, marketing and sale of over-the-counter pharmaceuticals and consumer health products.

        Innovation Platform and Prescription Drugs businesses under the Commercial Platform are primarily located in the PRC. The locations for Consumer Health business under the Commercial Platform are further segregated into the PRC and Hong Kong.

        The performance of the reportable segments is assessed based on three measurements: (a) losses or earnings of subsidiaries before interest income, interest expense, income tax expenses and equity in earnings of equity investees, net of tax ("Adjusted (LBIT)/EBIT" or "Adjusted LBIT"), (b) equity in earnings of equity investees, net of tax and (c) operating (loss)/profit.

25

        The segment information is as follows:

	Three Months Ended March 31, 2018
	Innovation Platform		Commercial Platform
	Drug R&D		Prescription Drugs	Consumer Health
	PRC		PRC	PRC	Hong Kong	Subtotal	Unallocated		Total
	(in US$'000)
Revenue from external customers	7,417		35,471	3,438	6,011	44,920	—		52,337
Adjusted (LBIT)/EBIT	(24,427	)	1,648	392	633	2,673	(3,176	)	(24,930	)
Interest income	20		10	3	14	27	1,219		1,266
Equity in earnings of equity investees, net of tax	(1,089	)	13,314	2,805	—	16,119	—		15,030
Operating (loss)/profit	(25,496	)	14,972	3,200	647	18,819	(1,957	)	(8,634	)
Interest expense	—		—	—	18	18	188		206
Income tax expense	9		445	108	104	657	899		1,565
Net (loss)/income attributable to the Company	(25,444	)	13,933	2,585	261	16,779	(3,065	)	(11,730	)
Depreciation/amortization	782		34	6	5	45	7		834
Additions to non-current assets (other than financial instruments and deferred tax assets)	1,059		3	7	—	10	2		1,071

	As at December 31, 2018
	Innovation Platform	Commercial Platform
	Drug R&D	Prescription Drugs	Consumer Health
	PRC	PRC	PRC	Hong Kong	Subtotal	Unallocated	Total
	(in US$'000)
Total assets	100,388	118,445	67,352	11,686	197,483	234,247	532,118
Property, plant and equipment	15,223	204	71	418	693	700	16,616
Leasehold land	1,174	—	—	—	—	—	1,174
Goodwill	—	2,779	407	—	3,186	—	3,186
Other intangible asset	—	347	—	—	347	—	347
Investments in equity investees	8,514	68,812	60,992	—	129,804	—	138,318

26

	Three Months Ended March 31, 2019
	Innovation Platform		Commercial Platform
	Drug R&D		Prescription Drugs	Consumer Health
	PRC		PRC	PRC	Hong Kong	Subtotal	Unallocated		Total
	(in US$'000)
Revenue from external customers	5,778		37,849	3,342	5,199	46,390	—		52,168
Adjusted (LBIT)/EBIT	(32,318	)	775	271	366	1,412	(5,417	)	(36,323	)
Interest income	99		14	11	1	26	1,551		1,676
Equity in earnings of equity investees, net of tax	70		14,049	2,991	—	17,040	—		17,110
Operating (loss)/profit	(32,149	)	14,838	3,273	367	18,478	(3,866	)	(17,537	)
Interest expense	—		—	—	—	—	260		260
Income tax expense	47		228	93	43	364	898		1,309
Net (loss)/income attributable to the Company	(32,117	)	14,321	2,761	135	17,217	(4,985	)	(19,885	)
Depreciation/amortization	1,097		40	6	22	68	40		1,205
Additions to non-current assets (other than financial instruments and deferred tax assets)	1,136		129	6	—	135	6		1,277

	As at March 31, 2019
	Innovation Platform	Commercial Platform
	Drug R&D	Prescription Drugs	Consumer Health
	PRC	PRC	PRC	Hong Kong	Subtotal	Unallocated	Total
	(in US$'000)
Total assets	77,773	144,381	71,260	10,423	226,064	235,460	539,297
Property, plant and equipment	15,653	315	73	364	752	631	17,036
Right-of-use assets	3,274	32	44	520	596	1,306	5,176
Leasehold land	1,196	—	—	—	—	—	1,196
Goodwill	—	2,852	407	—	3,259	—	3,259
Other intangible asset	—	340	—	—	340	—	340
Investments in equity investees	8,596	84,737	65,594	—	150,331	—	158,927

        Revenue from external customers is after elimination of inter-segment sales. Sales between segments are carried out at mutually agreed terms.

27

        There was one customer which accounted for over 10% of the Group's revenue for the three months ended March 31, 2018 and 2019 respectively.

        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.

        A reconciliation of Adjusted LBIT to net loss is as follows:

	Three Months Ended March 31,
	2018		2019
	(in US$'000)
Adjusted LBIT	(24,930	)	(36,323	)
Interest income	1,266		1,676
Equity in earnings of equity investees, net of tax	15,030		17,110
Interest expense	(206	)	(260	)
Income tax expense	(1,565	)	(1,309	)
Net loss	(10,405	)	(19,106	)

20. Note to Consolidated Statements of Cash Flows

        Reconciliation of net loss for the period to net cash used in operating activities:

	Three Months Ended March 31,
	2018		2019
	(in US$'000)
Net loss	(10,405	)	(19,106	)
Adjustments to reconcile net loss to net cash used in operating activities
Share-based compensation expense—share options	334		2,295
Share-based compensation expense—LTIP	880		636
Equity in earnings of equity investees, net of tax	(15,030	)	(17,110	)
Changes in right-of-use assets	—		754
Other adjustments	2,541		1,840
Changes in working capital
Accounts receivable—third parties	(5,747	)	(2,142	)
Inventories	2,160		(5,358	)
Accounts payable	(7,605	)	5,139
Other payables, accruals and advance receipts	2,154		6,929
Lease liabilities	—		(851	)
Other changes in working capital	(122	)	(1,949	)
Total changes in working capital	(9,160	)	1,768
Net cash used in operating activities	(30,840	)	(28,923	)

21. 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 results of operations, financial position or cash flows. However, litigation is subject to inherent

28

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 and results of operations for the periods in which the unfavorable outcome occurs, and potentially in future periods.

22. Subsequent Events

        The Group evaluated subsequent events through June 6, 2019, which is the date when the interim unaudited condensed consolidated financial statements were issued.

        Pursuant to a resolution passed in the Annual General Meeting on April 24, 2019, the Company's authorized share capital was increased from US$75,000,000 to US$150,000,000 by the addition of 75,000,000 ordinary shares of US$1.00 each (equivalent to 750,000,000 ordinary shares of US$0.10 each after the share split) in the share capital of the Company.

        On May 17, 2019, Luye Pharma Hong Kong Ltd. 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, believes that they have no basis for termination and intends to enforce its rights under the current agreement. Accordingly, no adjustment has been made to Seroquel-related balances as at March 31, 2019 including accounts receivable, inventories, long-term prepayment and accounts payable of US$1.7 million, US$0.6 million, US$1.3 million and US$1.3 million respectively, and therefore, this did not result in a significant impact to the Group for the three months ended March 31, 2019.

        Pursuant to a resolution passed in the extraordinary general meeting on May 29, 2019, each ordinary share of the Company was subdivided into 10 ordinary shares and the par value was changed from US$1.00 per ordinary share to US$0.10 per ordinary share. All Company ordinary share and per share amounts presented were adjusted retroactively as the share split was effective prior to the issuance of the interim unaudited condensed consolidated financial statements.

        On May 31, 2019, the Group through its subsidiary, entered into a separate 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 credit facilities include (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 a term of 3 years and an annual interest rate of 0.85% over HIBOR, with an upfront fee of HK$819,000 (US$105,000) on the term loan. These credit facilities are guaranteed by the Company and include certain financial covenant requirements. No amounts have been drawn from these credit facilities.

29

QuickLinks

Hutchison China MediTech Limited Condensed Consolidated Balance Sheets (in US$'000, except share data)
Hutchison China MediTech Limited Condensed Consolidated Statements of Operations (Unaudited, in US$'000, except share and per share data)
Hutchison China MediTech Limited Condensed Consolidated Statements of Comprehensive Loss (Unaudited, in US$'000)
Hutchison China MediTech Limited Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited, in US$'000, except share data in '000)
Hutchison China MediTech Limited Condensed Consolidated Statements of Cash Flows (Unaudited, in US$'000)
Hutchison China MediTech Limited Notes to the Interim Unaudited Condensed Consolidated Financial Statements

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2019
Document and Entity Information
Entity Registrant Name	Hutchison China MediTech Ltd
Entity Central Index Key	0001648257
Document Type	6-K
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 91,689	$ 86,036
Short-term investments	180,174	214,915
Accounts receivable-third parties	42,273	40,176
Inventories	17,612	12,309
Other current assets	18,246	17,105
Total current assets	349,994	370,541
Property, plant and equipment	17,036	16,616
Right-of-use assets	5,176
Investments in equity investees	158,927	138,318
Deferred issuance costs	1,391
Other assets	6,773	6,643
Total assets	539,297	532,118
Current liabilities
Accounts payable	30,764	25,625
Other payables, accruals and advance receipts	64,160	56,327
Lease liabilities	3,191
Other current liabilities	3,210	3,527
Total current liabilities	101,325	85,479
Lease liabilities	2,522
Long-term bank borrowings	26,763	26,739
Other liabilities	8,332	7,645
Total liabilities	138,942	119,863
Commitments and contingencies
Company's shareholders' equity
Ordinary shares; $0.10 par value; 750,000,000 shares authorized; 666,577,450 shares issued at December 31, 2018 and March 31, 2019	66,658	66,658
Additional paid-in capital	508,550	505,585
Accumulated losses	(203,583)	(183,004)
Accumulated other comprehensive (loss)/income	4,144	(243)
Total Company's shareholders' equity	375,769	388,996
Non-controlling interests	24,586	23,259
Total shareholders' equity	400,355	412,255
Total liabilities and shareholders' equity	$ 539,297	$ 532,118

XML

Condensed Consolidated Balance Sheets (parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Condensed Consolidated Balance Sheets
Ordinary shares, par value (in US$ per share)	$ 0.10	$ 0.10
Ordinary shares, authorized (in shares)	750,000,000	750,000,000
Ordinary shares, issued (in shares)	666,577,450	666,577,450

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Revenues
Total revenues		$ 52,168	$ 52,337
Operating expenses
Research and development expenses		(33,282)	(28,664)
Selling expenses		(3,785)	(4,615)
Administrative expenses		(10,195)	(7,023)
Total operating expenses		(88,218)	(77,358)
Loss from operations		(36,050)	(25,021)
Other income, net of other expenses		1,143	1,151
Loss before income taxes and equity in earnings of equity investees		(34,907)	(23,870)
Income tax expense		(1,309)	(1,565)
Equity in earnings of equity investees, net of tax		17,110	15,030
Net loss		(19,106)	(10,405)
Less: Net income attributable to non-controlling interests		(779)	(1,325)
Net loss attributable to the Company		$ (19,885)	$ (11,730)
Losses per share attributable to the Company-basic and diluted (US$ per share)	[1]	$ (0.03)	$ (0.02)
Number of shares used in per share calculation-basic and diluted		665,470,220	663,844,980
Related parties
Revenues
Total revenues		$ 1,993	$ 4,313
Goods | Third parties
Revenues
Total revenues		44,744	40,631
Operating expenses
Costs of goods and services		(38,316)	(34,030)
Goods | Related parties
Revenues
Total revenues		1,866	1,731
Operating expenses
Costs of goods and services		(1,343)	(1,209)
Commercialization services | Third parties
Revenues
Total revenues		1,739	2,558
Operating expenses
Costs of goods and services		(1,297)	(1,817)
Collaboration research and development services | Third parties
Revenues
Total revenues		2,714	4,835
Research and development services | Related parties
Revenues
Total revenues		127	$ 2,582
Other collaboration revenue from royalties | Third parties
Revenues
Total revenues		$ 978

[1] Note: The losses per share attributable to the Company—basic and diluted presented were adjusted retroactively for each of the three months ended March 31, 2018 and 2019 to take into account the share split approved by ordinary resolution at the extraordinary general meeting of the Company held on May 29, 2019, pursuant to which each ordinary share was subdivided into 10 ordinary shares.

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Condensed Consolidated Statements of Operations (parenthetical)	May 29, 2019
Subsequent Events
Stock split ratio	10

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Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidated Statements of Comprehensive Loss
Net loss	$ (19,106)	$ (10,405)
Other comprehensive income
Foreign currency translation gain	4,944	7,699
Total comprehensive loss	(14,162)	(2,706)
Less: Comprehensive income attributable to non-controlling interests	(1,336)	(2,150)
Total comprehensive loss attributable to the Company	$ (15,498)	$ (4,856)

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Condensed 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 Income/(Loss)	Non-controlling Interests	Total
Balance at Dec. 31, 2017	$ 460,653	$ 66,447	$ 496,960	$ (108,184)	$ 5,430	$ 23,230	$ 483,883
Balance (in shares) at Dec. 31, 2017		664,470
Increase (Decrease) in Stockholders' Equity
Net (loss)/income	(11,730)			(11,730)		1,325	(10,405)
Issuances in relation to share option exercises	254	$ 29	225				254
Issuances in relation to exercise of share options (in shares)		292
Share-based compensation - share options	333		333			1	334
Share-based compensation - Long-term incentive plan ("LTIP")	2,080		2,080			7	2,087
Share-based compensation	2,413		2,413			8	2,421
LTIP-treasury shares acquired and held by Trustee	(5,451)		(5,451)				(5,451)
Transfer between reserves			15	(15)
Foreign currency translation adjustments	6,874				6,874	825	7,699
Balance at Mar. 31, 2018	453,013	$ 66,476	494,162	(119,929)	12,304	25,388	478,401
Balance (in shares) at Mar. 31, 2018		664,762
Balance at Dec. 31, 2017	460,653	$ 66,447	496,960	(108,184)	5,430	23,230	483,883
Balance (in shares) at Dec. 31, 2017		664,470
Balance at Dec. 31, 2018	388,996	$ 66,658	505,585	(183,004)	(243)	23,259	412,255
Balance (in shares) at Dec. 31, 2018		666,577
Increase (Decrease) in Stockholders' Equity
Impact of change in accounting policy (Note 2)	(655)			(655)		(16)	(671)
Adjusted balance	388,341	$ 66,658	505,585	(183,659)	(243)	23,243	411,584
Net (loss)/income	(19,885)			(19,885)		779	(19,106)
Share-based compensation - share options	2,290		2,290			5	2,295
Share-based compensation - Long-term incentive plan ("LTIP")	982		982			2	984
Share-based compensation	3,272		3,272			7	3,279
LTIP-treasury shares acquired and held by Trustee	(346)		(346)				(346)
Transfer between reserves			39	(39)
Foreign currency translation adjustments	4,387				4,387	557	4,944
Balance at Mar. 31, 2019	$ 375,769	$ 66,658	$ 508,550	$ (203,583)	$ 4,144	$ 24,586	$ 400,355
Balance (in shares) at Mar. 31, 2019		666,577

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidated Statements of Cash Flows
Net cash used in operating activities	$ (28,923)	$ (30,840)
Investing activities
Purchases of property, plant and equipment	(1,361)	(1,318)
Deposits in short-term investments	(175,174)	(244,004)
Proceeds from short-term investments	209,915	273,031
Net cash generated from investing activities	33,380	27,709
Financing activities
Proceeds from issuance of ordinary shares		254
Purchases of treasury shares	(346)	(5,451)
Payment of issuance costs		(34)
Net cash used in financing activities	(346)	(5,231)
Net (decrease)/increase in cash and cash equivalents	4,111	(8,362)
Effect of exchange rate changes on cash and cash equivalents	1,542	1,194
Net increase in cash and cash equivalents, including effect of exchange rate changes	5,653	(7,168)
Cash and cash equivalents
Cash and cash equivalents at beginning of period	86,036	85,265
Cash and cash equivalents at end of period	$ 91,689	$ 78,097

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Organization and Nature of Business

3 Months Ended

Mar. 31, 2019

Organization and Nature of Business

Organization and Nature of Business

1. Organization and Nature of Business

Hutchison China MediTech Limited (the “Company”) and its subsidiaries (together the “Group”) are principally engaged in researching, developing, manufacturing and selling pharmaceuticals and healthcare 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 and Hong Kong.

Liquidity

As at March 31, 2019, the Group had accumulated losses of US$203,583,000 primarily due to its spending in drug research and development (“Drug R&D”) 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 March 31, 2019, the Group had cash and cash equivalents of US$91,689,000, short-term investments of US$180,174,000 and unutilized bank borrowing facilities of US$119,359,000. Short-term investments comprised of bank deposits maturing over three months. The Group’s operating plan includes the continued receipt of dividends from certain of its equity investees.

             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 (the look-forward period used).

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The interim unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The interim unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements, except for the adoption of Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”) as described below. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for the fair statement of results for the periods presented, have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year or any other interim period.

The comparative year-end condensed balance sheet data was derived from the annual audited consolidated financial statements, but is condensed to the same degree as the interim condensed balance sheet data.

The interim unaudited condensed consolidated financial statements and related disclosures have been prepared with the presumption that users have read or have access to the annual audited consolidated financial statements for the preceding fiscal year. 

The preparation of interim unaudited condensed 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 interim unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used in determining items such as useful lives of property, plant and equipment, write-down of inventories, allowance for doubtful accounts, share-based compensation, impairments of long-lived assets, impairment of other intangible asset and goodwill, income tax expenses, tax valuation allowances, revenues and cost accruals from research and development projects. Actual results could differ from those estimates.

Leases

Summary of impact of applying ASC 842

The Group applied ASC 842 to its various leases at the date of initial application of January 1, 2019. As a result, the Group has changed its accounting policy for leases as detailed below. The core principle of ASC 842 is that a lessee should recognize the assets and liabilities that arise from leases. Therefore, the Group recognizes in the condensed consolidated balance sheets liabilities to make lease payments (the lease liabilities) and right-of-use assets representing its right to use the underlying assets for their lease terms. The Group applied ASC 842 using the optional transition method by recognizing the cumulative effect as an adjustment to opening accumulated losses as at January 1, 2019. The comparative information prior to January 1, 2019 has not been adjusted and continues to be reported under ASC 840, Leases (“ASC 840”).

The Group assessed lease agreements as at January 1, 2019 under ASC 842, except for short-term leases. The Group elected the short-term lease exception for leases with a term of 12 months or less and recognizes lease expenses for such leases on a straight-line basis over the lease term and does not recognize right-of-use assets or lease liabilities accordingly. As a result of this assessment, the Group recorded an aggregate US$0.7 million in additional lease expenses as a cumulative adjustment to opening accumulated losses upon adoption. Additionally, the Group recognized right-of-use assets and lease liabilities of US$5.7 million and US$6.4 million respectively as at January 1, 2019.

The lease liabilities were measured at the present value of the remaining lease payments, discounted using the lessees’ incremental borrowing rate as at January 1, 2019. The Group’s weighted average incremental borrowing rate applied on January 1, 2019 was 3.97% per annum.

A reconciliation of the Group’s reported operating lease commitments as at December 31, 2018 and the Group’s lease liabilities recognized upon adoption of ASC 842 as at January 1, 2019 is as follows:

	(in US$’000)
Operating lease commitments as at December 31, 2018 (note (a))	8,835
Less: Leases not commenced as at January 1, 2019	(3,676)
Less: Short-term leases	(5)
Add: Adjustment as a result of the treatment for a termination option (note (b))	1,409
Less: Discount under the lessees’ incremental borrowing rate as at January 1, 2019	(206)
Lease liabilities recognized as at January 1, 2019	6,357

Notes:

(a) Future aggregate minimum payments under non-cancellable operating leases under ASC 840 were as follows:

	December 31, 2018
	(in US$’000)
Not later than 1 year	3,026
Between 1 to 2 years	2,735
Between 2 to 3 years	1,056
Between 3 to 4 years	882
Between 4 to 5 years	810
Later than 5 years	326
Total minimum lease payments	8,835

(b) The Group leases its corporate offices in Hong Kong through a support service agreement with an indirect subsidiary of CK Hutchison Holdings Limited (“CK Hutchison”), which is the Company’s ultimate holding company. The support service agreement may be terminated by giving 3-months advance notice; therefore, there was no lease commitment beyond the 3-months advance notice period as at December 31, 2018. This termination option is not considered probable of exercise for the purposes of applying ASC 842.

The Group recognized right-of-use assets as at January 1, 2019 measured at their carrying amounts as if ASC 842 had been applied since their commencement dates, but discounted using the lessees’ incremental borrowing rate as at January 1, 2019.

Recognized right-of-use assets was as follows:

	(in US$’000)
Offices	4,877
Factories	383
Others	487
	5,747

There were no adjustments to net cash generated from/(used in) operating activities, investing activities or financing activities in the condensed consolidated statement of cash flows.

In applying ASC 842 for the first time, the Group has used the following practical expedients permitted by the standard: (i) no reassessment of whether any expired or existing contracts are or contain leases; (ii) no reassessment of the lease classification for any expired or existing leases; (iii) the exclusion of initial direct costs for the measurement of the right-of-use assets at the date of initial application; and (iv) the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

Updated accounting policy—ASC 842

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; 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.

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Cash and Cash Equivalents

3 Months Ended

Mar. 31, 2019

Cash and Cash Equivalents

Cash and Cash Equivalents

3. Cash and Cash Equivalents

	December 31,	March 31,
	2018	2019
	(in US$’000)
Cash at bank and on hand	78,556	51,409
Bank deposits maturing in three months or less (note (a))	7,480	40,280
	86,036	91,689
Denominated in:
US$ (note (b))	58,291	73,539
RMB (note (b))	23,254	15,739
UK Pound Sterling (“£”) (note (b))	331	84
Hong Kong dollar (“HK$”)	4,160	2,327
	86,036	91,689

Notes:

(a) The weighted average effective interest rate on bank deposits for the year ended December 31, 2018 and the three months ended March 31, 2019 was 1.98% per annum and 2.49% per annum respectively (with maturity ranging from 7 to 90 days and 30 to 35 days respectively).

(b) Certain cash and bank balances denominated in RMB, US$ and £ 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.

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Short-term Investments

3 Months Ended

Mar. 31, 2019

Short-term Investments

Short-term Investments

4. Short-term Investments

	December 31,	March 31,
	2018	2019
	(in US$’000)
Bank deposits maturing over three months (note)
Denominated in:
US$	214,538	179,796
HK$	377	378
	214,915	180,174

Note:     The weighted average effective interest rate on bank deposits for the year ended December 31, 2018 and the three months ended March 31, 2019 was 2.18% per annum and 2.82% per annum respectively (with maturity ranging from 91 to 100 days and 91 to 97 days respectively).

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Accounts Receivable-Third Parties

3 Months Ended

Mar. 31, 2019

Accounts Receivable-Third Parties

Accounts Receivable-Third Parties

5. Accounts Receivable—Third Parties

Accounts receivable from contracts with customers, net of allowance for doubtful accounts, consisted of the following:

	December 31,	March 31,
	2018	2019
	(in US$’000)
Accounts receivable, gross	40,217	42,360
Allowance for doubtful accounts	(41)	(87)
Accounts receivable, net	40,176	42,273

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.

Movements on the allowance for doubtful accounts:

	2018	2019
	(in US$’000)
As at January 1	258	41
Increase in allowance for doubtful accounts	171	76
Decrease in allowance due to subsequent collection	(160)	(31)
Exchange difference	12	1
As at March 31	281	87

An aging analysis based on the relevant invoice dates is as follows:

	December 31,	March 31,
	2018	2019
	(in US$’000)
Not later than 3 months	37,326	39,603
Between 3 months to 6 months	2,704	2,595
Between 6 months to 1 year	61	162
Later than 1 year	126	—
Accounts receivable, gross	40,217	42,360

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Inventories

3 Months Ended

Mar. 31, 2019

Inventories

Inventories

6. Inventories

Inventories, net of provision for excess and obsolete inventories, consisted of the following:

	December 31,	March 31,
	2018	2019
	(in US$’000)
Raw materials	652	1,333
Finished goods	11,657	16,279
	12,309	17,612

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Leases

3 Months Ended

Mar. 31, 2019

Leases

Leases

7. Leases

The Group leases various offices, factories and other assets. Lease contracts are typically within a period of 1 to 5 years.

Leases consisted of the following:

	March 31, 2019
	(in US$’000)
Right-of-use assets
Offices (note (a))	4,308
Factories	325
Others (note (b))	543
Total right-of-use assets	5,176
Lease liabilities—current	3,191
Lease liabilities—non-current	2,522
	5,713

Notes:

(a) Includes (i) US$0.2 million right-of-use asset for offices in the United States of America that is leased through July 2023 which includes an option to renew the lease up to an additional 3 years; and (ii) US$1.4 million right-of-use asset for corporate offices in Hong Kong that is leased through May 2021 which includes a termination option with 3 months advance notice. The renewal and termination options were not recognized as part of the right-of-use assets and lease liabilities.

(b) Includes US$0.4 million right-of-use asset for retail space in the United Kingdom that is leased through May 2022 which the Group has subleased through May 2022.

Lease activities are summarized as follows:

	Three Months Ended
	March 31, 2019
	(in US$’000)
Lease expenses:
Short-term leases with lease terms equal or less than 12 months	12
Leases with lease terms greater than 12 months	818
	830
Sublease rental income	61
Cash paid on lease liabilities	852
Non-cash: Lease liabilities recognized from obtaining right-of-use assets	—

The weighted average remaining lease term and the weighted average discount rate as at March 31, 2019 was 1.83 years and 3.96% respectively.

Future lease payments are as follows:

	March 31, 2019
	(in US$’000)
Lease payments:
Not later than 1 year	3,356
Between 1 to 2 years	2,006
Between 2 to 3 years	449
Between 3 to 4 years	105
Between 4 to 5 years	25
Total lease payments	5,941
Less: Discount factor	(228)
Total lease liabilities	5,713

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Investments in Equity Investees

3 Months Ended

Mar. 31, 2019

Investments in Equity Investees

Investments in Equity Investees

8. Investments in Equity Investees

Investments in equity investees consisted of the following:

	December 31,	March 31,
	2018	2019
	(in US$’000)
Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited ("HBYS")	60,992	65,594
Shanghai Hutchison Pharmaceuticals Limited ("SHPL")	68,812	84,737
Nutrition Science Partners Limited ("NSPL")	8,102	8,109
Other	412	487
	138,318	158,927

All of 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 HBYS, SHPL and NSPL is as follows:

(i) Summarized balance sheets

	Commercial Platform				Innovation Platform
	Consumer Health		Prescription Drugs		Drug R&D
	HBYS		SHPL		NSPL
	December 31,	March 31,	December 31,	March 31,	December 31,	March 31,
	2018	2019	2018	2019	2018	2019
	(in US$’000)
Current assets	116,020	142,306	124,512	148,151	17,320	16,633
Non-current assets	100,353	102,819	98,532	101,305	—	—
Current liabilities	(73,974)	(93,365)	(84,357)	(78,528)	(1,117)	(415)
Non-current liabilities	(17,302)	(17,481)	(6,909)	(7,454)	—	—
Net assets	125,097	134,279	131,778	163,474	16,203	16,218
Non-controlling interests	(3,113)	(3,090)	—	—	—	—
	121,984	131,189	131,778	163,474	16,203	16,218

(ii) Summarized statements of operations

	Commercial Platform				Innovation Platform
	Consumer Health		Prescription Drugs		Drug R&D
	HBYS		SHPL		NSPL (note (a))
	Three Months Ended		Three Months Ended		Three Months Ended
	March 31,		March 31,		March 31,
	2018	2019	2018	2019	2018	2019
	(in US$’000)
Revenue	62,090	58,484	86,733	89,501	—	—
Gross profit	30,557	31,505	63,114	64,582	—	—
Interest income	35	33	214	141	—	44
Finance cost	(30)	(4)	—	—	—	—
Profit/(loss) before taxation	6,749	7,056	31,300	32,813	(2,194)	15
Income tax expense (note (b))	(1,141)	(1,163)	(4,670)	(4,715)	—	—
Net income/(loss)	5,608	5,893	26,630	28,098	(2,194)	15
Non-controlling interests	2	89	—	—	—	—
Net income/(loss) attributable to the shareholders of equity investee	5,610	5,982	26,630	28,098	(2,194)	15

Notes:

(a) NSPL  primarily incurred research and development expenses during the three months ended March 31, 2018 and did not have any activity for the three months ended March 31, 2019.

(b) The main entities within the HBYS and SHPL groups have been granted the High and New Technology Enterprise (“HNTE”) status. Accordingly, the entities were eligible to use a preferential income tax rate of 15% for the three months ended March 31, 2018 and 2019.

For the three months ended March 31, 2018 and 2019, other immaterial equity investees had net income of approximately US$15,000 and US$125,000 respectively.

(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:

	Commercial Platform				Innovation Platform (note)
	Consumer Health		Prescription Drugs		Drug R&D
	HBYS		SHPL		NSPL
	2018	2019	2018	2019	2018	2019
	(in US$’000)
Opening net assets after non-controlling interests as at January 1	110,616	121,984	132,731	131,778	38,401	16,203
Impact of change in accounting policy (ASC 842)	—	(19)	—	(2)	—	—
Net income/(loss) attributable to the shareholders of equity investee	5,610	5,982	26,630	28,098	(2,194)	15
Other comprehensive income	4,727	3,242	5,995	3,600	—	—
Closing net assets after non-controlling interests as at March 31	120,953	131,189	165,356	163,474	36,207	16,218
Group’s share of net assets	60,477	65,594	82,678	81,737	18,104	8,109
Goodwill	—	—	3,179	3,000	—	—
Carrying amount of investments as at March 31	60,477	65,594	85,857	84,737	18,104	8,109

Note: The Innovation Platform includes other immaterial equity investees. As at December 31, 2018 and March 31, 2019, the aggregate carrying amount of investments in NSPL and other immaterial equity investees was approximately US$8,514,000 and US$8,596,000 respectively.

The equity investees had the following capital commitments:

	March 31,
	2019
	(in US$’000)
Property, plant and equipment
Contracted but not provided for	1,807

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Accounts Payable

3 Months Ended

Mar. 31, 2019

Accounts Payable

Accounts Payable

9. Accounts Payable

	December 31,	March 31,
	2018	2019
	(in US$’000)
Accounts payable—third parties	14,158	19,204
Accounts payable—non-controlling shareholders of subsidiaries (Note 16 (iv))	4,960	4,143
Accounts payable—related party (Note 16 (ii))	6,507	7,417
	25,625	30,764

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,	March 31,
	2018	2019
	(in US$’000)
Not later than 3 months	19,185	23,642
Between 3 months to 6 months	5,584	4,225
Between 6 months to 1 year	703	2,762
Later than 1 year	153	135
	25,625	30,764

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Other Payables, Accruals and Advance Receipts

3 Months Ended

Mar. 31, 2019

Other Payables, Accruals and Advance Receipts

Other Payables, Accruals and Advance Receipts

10. Other Payables, Accruals and Advance Receipts

Other payables, accruals and advance receipts consisted of the following:

	December 31,	March 31,
	2018	2019
	(in US$’000)
Accrued salaries and benefits	8,715	6,056
Accrued research and development expenses	28,883	37,219
Accrued selling and marketing expenses	4,675	4,756
Accrued administrative and other general expenses	6,181	9,897
Deferred government incentives	1,817	384
Deposits	1,230	1,899
Dividend payable to non-controlling shareholder of subsidiary (Note 16(iv))	1,282	1,282
Others	3,544	2,667
	56,327	64,160

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Bank Borrowings

3 Months Ended

Mar. 31, 2019

Bank Borrowings

Bank Borrowings

11. Bank Borrowings

Bank borrowings consisted of the following:

	December 31,	March 31,
	2018	2019
	(in US$’000)
Non-current	26,739	26,763

The weighted average interest rate for outstanding bank borrowings for the year ended December 31, 2018 and the three months ended March 31, 2019 was 2.79% per annum and 2.94% per annum respectively. The carrying amounts of the Group’s bank borrowings are all denominated in HK$.

(i)           3-year term loan and 18-month revolving loan facilities

In November 2017, the Group through its subsidiary, entered into facility agreements with a bank for the provision of unsecured credit facilities in the aggregate amount of HK$400,000,000 (US$51,282,000). The credit facilities include (i) a HK$210,000,000  (US$26,923,000)  3-year term loan facility and (ii) a HK$190,000,000 (US$24,359,000) 18-month revolving loan facility. The term loan bears interest at 1.50% over the Hong Kong Interbank Offered Rate (“HIBOR”) per annum and an upfront fee of HK$1,575,000 (US$202,000). The revolving loan facility bears interest at 1.25% over HIBOR per annum. The term loan was drawn in May 2018 and is due in November 2020. Accordingly, the term loan is recorded under long-term bank borrowings as at December 31, 2018 andMarch 31, 2019. As at December 31, 2018 and March 31, 2019, no amount has been drawn from the revolving loan facility. These credit facilities are guaranteed by the Company.

(ii)         2-year revolving loan facilities

In August 2018, the Group through its subsidiary, entered into two separate facility agreements with banks for the provision of unsecured credit facilities in the aggregate amount of HK$507,000,000 (US$65,000,000). The first credit facility is a HK$351,000,000 (US$45,000,000) revolving loan facility, with a term of 2 years and an annual interest rate of 1.35% over HIBOR. The second credit facility is a HK$156,000,000 (US$20,000,000) revolving loan facility, with a term of 2 years and an annual interest rate of 1.35% over HIBOR. These credit facilities are guaranteed by the Company. As at December 31, 2018 andMarch 31, 2019,  no amount has been drawn from either of the revolving loan facilities.

(iii)        3-year revolving loan facility

In November 2018, the Group through its subsidiary renewed a 3-year revolving loan facility with a bank in the aggregate amount of HK$234,000,000 (US$30,000,000) with an annual interest rate of 0.85% over HIBOR. This credit facility is guaranteed by the Company. As at December 31, 2018 and March 31, 2019, no amount has been drawn from the revolving loan facility.

The Group’s bank borrowings are repayable as from the dates indicated as follows:

	December 31,	March 31,
	2018	2019
	(in US$’000)
Not later than 1 year	—	—
Between 1 to 2 years	26,923	26,923
	26,923	26,923

As at December 31, 2018 and March 31, 2019, the Group had unutilized bank borrowing facilities of  HK$931,000,000 (US$119,359,000).

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies

Commitments and Contingencies

12. Commitments and Contingencies

Capital commitments

The Group had the following capital commitments:

	March 31,
	2019
	(in US$’000)
Property, plant and equipment
Contracted but not provided for	1,341

The Group does not have any other significant commitments or contingencies.

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Share-based Compensation

3 Months Ended

Mar. 31, 2019

Share-based Compensation

Share-based Compensation

13. 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 (the “HCML Share Option Scheme”). Pursuant to the HCML 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 March 31, 2019, the aggregate number of shares issuable under the HCML Share Option Scheme is 23,130,970 ordinary shares and the aggregate number of shares issuable under the prior share option scheme which expired in 2016 is 1,845,180 ordinary shares. Additionally, the number of shares authorized but unissued was 83,422,550 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 to ten years from the date of grant.

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	£ per share	(years)	(in £’000)
Outstanding at January 1, 2018	11,264,120	1.77	6.29	43,158
Granted	10,606,260	4.69
Exercised	(2,107,080)	1.40
Cancelled	(1,208,450)	4.30
Outstanding at December 31, 2018	18,554,850	3.31	7.35	15,158
Cancelled	(145,350)	4.65
Outstanding at March 31, 2019	18,409,500	3.30	7.09	24,301
Vested and exercisable at December 31, 2018	8,032,040	1.68	4.84	14,843
Vested and exercisable at March 31, 2019	8,532,040	1.82	4.82	23,437

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,
	2011		2013		2016		2017		2018
Weighted average grant date fair value of share options (in £ per share)	0.18		0.32		0.90		1.27		1.67
Significant inputs into the valuation model (weighted average):
Exercise price (in £ per share)	0.44		0.61		1.97		3.11		4.69
Share price at effective date of grant (in £ per share)	0.43		0.61		1.97		3.11		4.66
Expected volatility (note (a))	46.6	%	36.0	%	39.0	%	36.3	%	37.6	%
Risk-free interest rate (note (b))	3.13	%	3.16	%	1.00	%	1.17	%	1.46	%
Contractual life of share options (in years)	10		10		8		10		10
Expected dividend yield (note (c))	0	%	0	%	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) The risk-free interest rates used in the Polynomial model are with reference to 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 in the foreseeable future, 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:

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Cash received from share options exercised	254	—
Total intrinsic value of share options exercised	1,764	—

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:

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Research and development expenses	334	2,109
Administrative expenses	—	186
	334	2,295

As at March 31, 2019, the total unrecognized compensation cost was US$13,028,000, and will be recognized on a graded vesting approach over the weighted average remaining service period of 3.07 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, free cash flows, 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, as an equity-settled award. 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 profit or loss.

Granted awards under the LTIP are as follows:

	Maximum cash
	amount per annum	Covered	Performance target
Grant date	(in US$ millions)	financial years	determination date
October 19, 2015	1.8	2014-2016	note (a)
March 24, 2016	0.3	note (b)	note (b)
March 15, 2017	0.4	note (c)	note (c)
March 15, 2017 and August 2, 2017	6.0	2017-2019	note (d)
December 15, 2017	0.5	2018-2019	note (d)
August 6, 2018	0.1	2018-2019	note (d)
December 14, 2018	1.5	2019	note (d)

Notes:

(a) 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 one business day after the publication date of the annual report of the Company for the financial year falling two years after the covered financial year to which the LTIP award relates.

(b) 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.

(c) This award did not stipulate performance targets and vested one business day after the publication date of the annual report for the 2017 financial year.

(d) 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.

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 Group using funds provided by the Group. 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) purchased and held by the Trustee were as follows:

	Number of	Cost
	treasury shares	(in US$’000)
As at January 1, 2018	559,775	1,957
Purchased	795,005	5,451
Vested	(233,750)	(731)
As at December 31, 2018	1,121,030	6,677
Purchased	60,430	346
Vested	(240,150)	(944)
As at March 31, 2019	941,310	6,079

For the three months ended March 31, 2018 and 2019, US$59,000 and US$37,000 of the LTIP awards were forfeited respectively.

The following table presents the share-based compensation expenses recognized under the LTIP awards:

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Research and development expenses	475	361
Selling and administrative expenses	405	275
	880	636
Recorded with a corresponding credit to:
Liability	563	178
Additional paid-in capital	317	458
	880	636

For the three months ended March 31, 2018 and 2019,  US$1,770,000 and US$526,000  were reclassified from liability to additional paid-in capital respectively upon LTIP awards reaching the determination date. As at December 31, 2018 and March 31, 2019,  US$1,235,000 and US$887,000 were recorded as liabilities respectively for LTIP awards prior to the determination date.

As at March 31, 2019, the total unrecognized compensation cost was approximately US$3,990,000, which considers expected performance targets and the amount expected to vest, and will be recognized over the requisite periods.

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Revenues

3 Months Ended

Mar. 31, 2019

Revenues

Revenues

14. Revenues

The following table presents revenue disaggregated by customer types, major categories and reportable segments:

	Three Months Ended March 31, 2018
	Innovation	Commercial
	Platform	Platform	Total
	(in US$’000)
Customer types
Third parties—Distribution	—	43,189	43,189
Third parties—Collaboration	4,835	—	4,835
Related parties (Note 16(i))	2,582	1,731	4,313
	7,417	44,920	52,337
Major categories
Goods	—	42,362	42,362
Services	7,417	2,558	9,975
	7,417	44,920	52,337

	Three Months Ended March 31, 2019
	Innovation	Commercial
	Platform	Platform	Total
	(in US$’000)
Customer types
Third parties-Distribution	1,959	44,524	46,483
Third parties-Collaboration	3,692	—	3,692
Related parties (Note 16(i))	127	1,866	1,993
	5,778	46,390	52,168
Major categories
Goods	1,959	44,651	46,610
Services	2,841	1,739	4,580
Royalties	978	—	978
	5,778	46,390	52,168

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Research and Development Expenses

3 Months Ended

Mar. 31, 2019

Research and Development Expenses

Research and Development Expenses

15. Research and Development Expenses

Research and development expenses are summarized as follows:

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Clinical trial related costs	19,472	19,706
Personnel compensation and related costs	7,850	11,295
Other research and development expenses	1,342	2,281
	28,664	33,282

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Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries

3 Months Ended

Mar. 31, 2019

Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries

Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries

16. 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:

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Sales to:
Indirect subsidiaries of CK Hutchison	1,731	1,866
Revenue from research and development services from:
Equity investees	2,582	127
Purchases from:
Equity investees	662	1,062
Rendering of marketing services from:
Indirect subsidiaries of CK Hutchison	172	94
An equity investee	3,197	1,736
	3,369	1,830
Rendering of support services from:
An indirect subsidiary of CK Hutchison	227	233

(ii) Balances with related parties included in:

	December 31,	March 31,
	2018	2019
	(in US$’000)
Accounts receivable—related parties
Indirect subsidiaries of CK Hutchison (note (a))	2,709	2,189
An equity investee (note (a))	73	—
	2,782	2,189
Accounts payable
An equity investee (note (a))	6,507	7,417
Amounts due from related parties
Equity investees (note (a))	889	893
Amounts due to related parties
An indirect subsidiary of CK Hutchison (note (b))	432	623
Other deferred income
An equity investee (note (c))	1,356	1,335

Notes:

(a) 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.

(b) Amounts due to an indirect subsidiary of CK Hutchison are unsecured, repayable on demand and interest-bearing if not settled within one month.

(c) Other deferred income represents amounts recognized from granting of promotion and marketing rights.

(iii) Transactions with non-controlling shareholders of subsidiaries:

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Sales	5,740	6,034
Purchases	3,323	3,504
Interest expense	18	—

(iv) Balances with non-controlling shareholders of subsidiaries included in:

	December 31,	March 31,
	2018	2019
	(in US$’000)
Accounts receivable—third parties	5,070	4,193
Accounts payable	4,960	4,143
Other payables, accruals and advance receipts
Dividend payable	1,282	1,282
Other non-current liabilities
Loan	579	579

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Income Taxes

3 Months Ended

Mar. 31, 2019

Income Taxes

Income Taxes

17. Income Taxes

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Current tax
HK (note (a))	113	85
PRC (note (b))	537	352
Other	50	69
Deferred income tax	865	803
Income tax expense	1,565	1,309

Notes:

(a) The Company, two subsidiaries incorporated in the British Virgin Islands and its Hong Kong subsidiaries are subject to Hong Kong profits tax which has been provided for at the rate of 16.5% on the estimated assessable profits less estimated available tax losses in each entity.

(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, among others, a preferential tax rate of 15% for companies which qualify as HNTE. HMPL and its wholly-owned subsidiary Hutchison MediPharma (Suzhou) Limited qualify as a HNTE up to December 31, 2019 and 2020 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 major subsidiaries and 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, 2018 and March 31, 2019, 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 major subsidiaries and equity investees operating in the PRC will be distributed as dividends.

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:

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Loss before income taxes and equity in earnings of equity investees	(23,870)	(34,907)
Tax calculated at the statutory tax rate of the Company	(3,939)	(5,760)
Tax effects of:
Different tax rates available in different jurisdictions	1,204	1,220
Tax valuation allowance	5,472	6,499
Preferential tax deduction	(1,793)	(1,721)
Expenses not deductible for tax purposes	195	695
Utilization of previously unrecognized tax losses	(110)	(165)
Withholding tax on undistributed earnings of PRC entities	832	858
Others	(296)	(317)
Income tax expense	1,565	1,309

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Losses per Share

3 Months Ended

Mar. 31, 2019

Losses per Share

Losses per Share

18. 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 period. Treasury shares held by the Trustee are excluded from the weighted average number of outstanding ordinary shares in issue for purposes of calculating basic losses per share.

	Three Months Ended
	March 31,
	2018	2019
Weighted average number of outstanding ordinary shares in issue	663,844,980	665,470,220
Net loss attributable to the Company (US$’000)	(11,730)	(19,885)
Losses per share attributable to the Company (US$ per share)	(0.02)	(0.03)

(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 period. Dilutive ordinary share equivalents include shares issuable upon the exercise or settlement of share option and LTIP awards issued by the Company using the treasury stock method.

For the three months ended March 31, 2018 and 2019, the share options and LTIP awards 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 was equal to basic losses per share for the three months ended March 31, 2018 and 2019.

Note: The losses per share attributable to the Company—basic and diluted presented were adjusted retroactively for each of the three months ended March 31, 2018 and 2019 to take into account the share split approved by ordinary resolution at the extraordinary general meeting of the Company held on May 29, 2019, pursuant to which each ordinary share was subdivided into 10 ordinary shares.

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Segment Reporting

3 Months Ended

Mar. 31, 2019

Segment Reporting

Segment Reporting

19. Segment Reporting

The Group determines its operating segments from both business and geographic perspectives as follows:

(i)     Innovation Platform (Drug R&D): focuses on discovering, developing and commercializing targeted therapeutics in oncology and autoimmune diseases, and the provision of research and development services; and

(ii)    Commercial Platform: comprises of the manufacture, marketing and distribution of prescription and over‑the‑counter pharmaceuticals in the PRC as well as consumer health products through Hong Kong. The Commercial Platform is further segregated into two core business areas:

(a)Prescription Drugs: comprises the development, manufacture, distribution, marketing and sale of prescription pharmaceuticals; and

(b)Consumer Health: comprises the development, manufacture, distribution, marketing and sale of over‑the‑counter pharmaceuticals and consumer health products.

Innovation Platform and Prescription Drugs businesses under the Commercial Platform are primarily located in the PRC. The locations for Consumer Health business under the Commercial Platform are further segregated into the PRC and Hong Kong.

The performance of the reportable segments is assessed based on three measurements: (a) losses or earnings of subsidiaries before interest income, interest expense, income tax expenses and equity in earnings of equity investees, net of tax (“Adjusted (LBIT)/EBIT” or “Adjusted LBIT”),  (b) equity in earnings of equity investees, net of tax and (c) operating (loss)/profit.

The segment information is as follows:

	Three Months Ended March 31, 2018
	Innovation
	Platform	Commercial Platform
	Drug	Prescription	Consumer
	R&D	Drugs	Health
				Hong
	PRC	PRC	PRC	Kong	Subtotal	Unallocated	Total
	(in US$’000)
Revenue from external customers	7,417	35,471	3,438	6,011	44,920	—	52,337
Adjusted (LBIT)/EBIT	(24,427)	1,648	392	633	2,673	(3,176)	(24,930)
Interest income	20	10	3	14	27	1,219	1,266
Equity in earnings of equity investees, net of tax	(1,089)	13,314	2,805	—	16,119	—	15,030
Operating (loss)/profit	(25,496)	14,972	3,200	647	18,819	(1,957)	(8,634)
Interest expense	—	—	—	18	18	188	206
Income tax expense	9	445	108	104	657	899	1,565
Net (loss)/income attributable to the Company	(25,444)	13,933	2,585	261	16,779	(3,065)	(11,730)
Depreciation/amortization	782	34	6	5	45	7	834
Additions to non-current assets (other than financial instruments and deferred tax assets)	1,059	3	7	—	10	2	1,071

	As at December 31, 2018
	Innovation
	Platform	Commercial Platform
	Drug	Prescription	Consumer
	R&D	Drugs	Health
				Hong
	PRC	PRC	PRC	Kong	Subtotal	Unallocated	Total
	(in US$’000)
Total assets	100,388	118,445	67,352	11,686	197,483	234,247	532,118
Property, plant and equipment	15,223	204	71	418	693	700	16,616
Leasehold land	1,174	—	—	—	—	—	1,174
Goodwill	—	2,779	407	—	3,186	—	3,186
Other intangible asset	—	347	—	—	347	—	347
Investments in equity investees	8,514	68,812	60,992	—	129,804	—	138,318

	Three Months Ended March 31, 2019
	Innovation
	Platform	Commercial Platform
	Drug	Prescription	Consumer
	R&D	Drugs	Health
				Hong
	PRC	PRC	PRC	Kong	Subtotal	Unallocated	Total
	(in US$’000)
Revenue from external customers	5,778	37,849	3,342	5,199	46,390	—	52,168
Adjusted (LBIT)/EBIT	(32,318)	775	271	366	1,412	(5,417)	(36,323)
Interest income	99	14	11	1	26	1,551	1,676
Equity in earnings of equity investees, net of tax	70	14,049	2,991	—	17,040	—	17,110
Operating (loss)/profit	(32,149)	14,838	3,273	367	18,478	(3,866)	(17,537)
Interest expense	—	—	—	—	—	260	260
Income tax expense	47	228	93	43	364	898	1,309
Net (loss)/income attributable to the Company	(32,117)	14,321	2,761	135	17,217	(4,985)	(19,885)
Depreciation/amortization	1,097	40	6	22	68	40	1,205
Additions to non-current assets (other than financial instruments and deferred tax assets)	1,136	129	6	—	135	6	1,277

	As at March 31, 2019
	Innovation
	Platform	Commercial Platform
	Drug	Prescription	Consumer
	R&D	Drugs	Health
				Hong
	PRC	PRC	PRC	Kong	Subtotal	Unallocated	Total
	(in US$’000)
Total assets	77,773	144,381	71,260	10,423	226,064	235,460	539,297
Property, plant and equipment	15,653	315	73	364	752	631	17,036
Right-of-use assets	3,274	32	44	520	596	1,306	5,176
Leasehold land	1,196	—	—	—	—	—	1,196
Goodwill	—	2,852	407	—	3,259	—	3,259
Other intangible asset	—	340	—	—	340	—	340
Investments in equity investees	8,596	84,737	65,594	—	150,331	—	158,927

Revenue from external customers is after elimination of inter-segment sales. Sales between segments are carried out at mutually agreed terms.

There was one customer which accounted for over 10% of the Group’s revenue for the three months ended March 31, 2018 and 2019 respectively.

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.

A reconciliation of Adjusted LBIT to net loss is as follows:

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Adjusted LBIT	(24,930)	(36,323)
Interest income	1,266	1,676
Equity in earnings of equity investees, net of tax	15,030	17,110
Interest expense	(206)	(260)
Income tax expense	(1,565)	(1,309)
Net loss	(10,405)	(19,106)

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Note to Consolidated Statements of Cash Flows

3 Months Ended

Mar. 31, 2019

Note to Consolidated Statements of Cash Flows

Note to Consolidated Statements of Cash Flows

20. Note to Consolidated Statements of Cash Flows

Reconciliation of net loss for the period to net cash used in operating activities:

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Net loss	(10,405)	(19,106)
Adjustments to reconcile net loss to net cash used in  operating activities
Share-based compensation expense—share options	334	2,295
Share-based compensation expense—LTIP	880	636
Equity in earnings of equity investees, net of tax	(15,030)	(17,110)
Changes in right-of-use assets	—	754
Other adjustments	2,541	1,840
Changes in working capital
Accounts receivable—third parties	(5,747)	(2,142)
Inventories	2,160	(5,358)
Accounts payable	(7,605)	5,139
Other payables, accruals and advance receipts	2,154	6,929
Lease liabilities	—	(851)
Other changes in working capital	(122)	(1,949)
Total changes in working capital	(9,160)	1,768
Net cash used in operating activities	(30,840)	(28,923)

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Litigation

3 Months Ended

Mar. 31, 2019

Litigation

Litigation

21. 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 results of operations, financial position 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 and results of operations for the periods in which the unfavorable outcome occurs, and potentially in future periods.

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Subsequent Events

3 Months Ended

Mar. 31, 2019

Subsequent Events

Subsequent Events

22. Subsequent Events

The Group evaluated subsequent events through June 6, 2019, which is the date when the interim unaudited condensed consolidated financial statements were issued.

Pursuant to a resolution passed in the Annual General Meeting on April 24, 2019, the Company’s authorized share capital was increased from US$75,000,000 to US$150,000,000 by the addition of 75,000,000 ordinary shares of US$1.00 each (equivalent to 750,000,000 ordinary shares of US$0.10 each after the share split) in the share capital of the Company.

On May 17, 2019, Luye Pharma Hong Kong Ltd. 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, believes that they have no basis for termination and intends to enforce its rights under the current agreement. Accordingly, no adjustment has been made to Seroquel-related balances as at March 31, 2019 including accounts receivable,  inventories,  long-term prepayment and accounts payable of US$1.7 million, US$0.6 million, US$1.3 million and US$1.3 million respectively, and therefore, this did not result in a significant impact to the Group for the three months ended March 31, 2019.

Pursuant to a resolution passed in the extraordinary general meeting on May 29, 2019, each ordinary share of the Company was subdivided into 10 ordinary shares and the par value was changed from US$1.00 per ordinary share to US$0.10 per ordinary share. All Company ordinary share and per share amounts presented were adjusted retroactively as the share split was effective prior to the issuance of the interim unaudited condensed consolidated financial statements.

On May 31, 2019, the Group through its subsidiary, entered into a separate 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 credit facilities include (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 a term of 3 years and an annual interest rate of 0.85% over HIBOR, with an upfront fee of HK$819,000  (US$105,000) on the term loan. These credit facilities are guaranteed by the Company and include certain financial covenant requirements. No amounts have been drawn from these credit facilities.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The interim unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The interim unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements, except for the adoption of Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”) as described below. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for the fair statement of results for the periods presented, have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year or any other interim period.

The comparative year-end condensed balance sheet data was derived from the annual audited consolidated financial statements, but is condensed to the same degree as the interim condensed balance sheet data.

The interim unaudited condensed consolidated financial statements and related disclosures have been prepared with the presumption that users have read or have access to the annual audited consolidated financial statements for the preceding fiscal year. 

The preparation of interim unaudited condensed 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 interim unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used in determining items such as useful lives of property, plant and equipment, write-down of inventories, allowance for doubtful accounts, share-based compensation, impairments of long-lived assets, impairment of other intangible asset and goodwill, income tax expenses, tax valuation allowances, revenues and cost accruals from research and development projects. Actual results could differ from those estimates.

Leases

Leases

Summary of impact of applying ASC 842

The Group applied ASC 842 to its various leases at the date of initial application of January 1, 2019. As a result, the Group has changed its accounting policy for leases as detailed below. The core principle of ASC 842 is that a lessee should recognize the assets and liabilities that arise from leases. Therefore, the Group recognizes in the condensed consolidated balance sheets liabilities to make lease payments (the lease liabilities) and right-of-use assets representing its right to use the underlying assets for their lease terms. The Group applied ASC 842 using the optional transition method by recognizing the cumulative effect as an adjustment to opening accumulated losses as at January 1, 2019. The comparative information prior to January 1, 2019 has not been adjusted and continues to be reported under ASC 840, Leases (“ASC 840”).

The Group assessed lease agreements as at January 1, 2019 under ASC 842, except for short-term leases. The Group elected the short-term lease exception for leases with a term of 12 months or less and recognizes lease expenses for such leases on a straight-line basis over the lease term and does not recognize right-of-use assets or lease liabilities accordingly. As a result of this assessment, the Group recorded an aggregate US$0.7 million in additional lease expenses as a cumulative adjustment to opening accumulated losses upon adoption. Additionally, the Group recognized right-of-use assets and lease liabilities of US$5.7 million and US$6.4 million respectively as at January 1, 2019.

The lease liabilities were measured at the present value of the remaining lease payments, discounted using the lessees’ incremental borrowing rate as at January 1, 2019. The Group’s weighted average incremental borrowing rate applied on January 1, 2019 was 3.97% per annum.

A reconciliation of the Group’s reported operating lease commitments as at December 31, 2018 and the Group’s lease liabilities recognized upon adoption of ASC 842 as at January 1, 2019 is as follows:

	(in US$’000)
Operating lease commitments as at December 31, 2018 (note (a))	8,835
Less: Leases not commenced as at January 1, 2019	(3,676)
Less: Short-term leases	(5)
Add: Adjustment as a result of the treatment for a termination option (note (b))	1,409
Less: Discount under the lessees’ incremental borrowing rate as at January 1, 2019	(206)
Lease liabilities recognized as at January 1, 2019	6,357

Notes:

(a) Future aggregate minimum payments under non-cancellable operating leases under ASC 840 were as follows:

	December 31, 2018
	(in US$’000)
Not later than 1 year	3,026
Between 1 to 2 years	2,735
Between 2 to 3 years	1,056
Between 3 to 4 years	882
Between 4 to 5 years	810
Later than 5 years	326
Total minimum lease payments	8,835

(b) The Group leases its corporate offices in Hong Kong through a support service agreement with an indirect subsidiary of CK Hutchison Holdings Limited (“CK Hutchison”), which is the Company’s ultimate holding company. The support service agreement may be terminated by giving 3-months advance notice; therefore, there was no lease commitment beyond the 3-months advance notice period as at December 31, 2018. This termination option is not considered probable of exercise for the purposes of applying ASC 842.

The Group recognized right-of-use assets as at January 1, 2019 measured at their carrying amounts as if ASC 842 had been applied since their commencement dates, but discounted using the lessees’ incremental borrowing rate as at January 1, 2019.

Recognized right-of-use assets was as follows:

	(in US$’000)
Offices	4,877
Factories	383
Others	487
	5,747

There were no adjustments to net cash generated from/(used in) operating activities, investing activities or financing activities in the condensed consolidated statement of cash flows.

In applying ASC 842 for the first time, the Group has used the following practical expedients permitted by the standard: (i) no reassessment of whether any expired or existing contracts are or contain leases; (ii) no reassessment of the lease classification for any expired or existing leases; (iii) the exclusion of initial direct costs for the measurement of the right-of-use assets at the date of initial application; and (iv) the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

Updated accounting policy—ASC 842

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; 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.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Significant Accounting Policies

Schedule of reconciliation of operating lease commitments and lease liabilities recognized

	(in US$’000)
Operating lease commitments as at December 31, 2018 (note (a))	8,835
Less: Leases not commenced as at January 1, 2019	(3,676)
Less: Short-term leases	(5)
Add: Adjustment as a result of the treatment for a termination option (note (b))	1,409
Less: Discount under the lessees’ incremental borrowing rate as at January 1, 2019	(206)
Lease liabilities recognized as at January 1, 2019	6,357

Notes:

(a) Future aggregate minimum payments under non-cancellable operating leases under ASC 840 were as follows:

	December 31, 2018
	(in US$’000)
Not later than 1 year	3,026
Between 1 to 2 years	2,735
Between 2 to 3 years	1,056
Between 3 to 4 years	882
Between 4 to 5 years	810
Later than 5 years	326
Total minimum lease payments	8,835

(b) The Group leases its corporate offices in Hong Kong through a support service agreement with an indirect subsidiary of CK Hutchison Holdings Limited (“CK Hutchison”), which is the Company’s ultimate holding company. The support service agreement may be terminated by giving 3-months advance notice; therefore, there was no lease commitment beyond the 3-months advance notice period as at December 31, 2018. This termination option is not considered probable of exercise for the purposes of applying ASC 842.

Schedule of future aggregate minimum payments under non-cancellable operating leases under ASU 840

	December 31, 2018
	(in US$’000)
Not later than 1 year	3,026
Between 1 to 2 years	2,735
Between 2 to 3 years	1,056
Between 3 to 4 years	882
Between 4 to 5 years	810
Later than 5 years	326
Total minimum lease payments	8,835

Schedule of recognized right-of-use assets

	(in US$’000)
Offices	4,877
Factories	383
Others	487
	5,747

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Cash and Cash Equivalents (Tables)

3 Months Ended

Mar. 31, 2019

Cash and Cash Equivalents

Schedule of cash and cash equivalents

	December 31,	March 31,
	2018	2019
	(in US$’000)
Cash at bank and on hand	78,556	51,409
Bank deposits maturing in three months or less (note (a))	7,480	40,280
	86,036	91,689
Denominated in:
US$ (note (b))	58,291	73,539
RMB (note (b))	23,254	15,739
UK Pound Sterling (“£”) (note (b))	331	84
Hong Kong dollar (“HK$”)	4,160	2,327
	86,036	91,689

Notes:

(a) The weighted average effective interest rate on bank deposits for the year ended December 31, 2018 and the three months ended March 31, 2019 was 1.98% per annum and 2.49% per annum respectively (with maturity ranging from 7 to 90 days and 30 to 35 days respectively).

(b) Certain cash and bank balances denominated in RMB, US$ and £ 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.

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Short-term Investments (Tables)

3 Months Ended

Mar. 31, 2019

Short-term Investments

Schedule of short term investments

	December 31,	March 31,
	2018	2019
	(in US$’000)
Bank deposits maturing over three months (note)
Denominated in:
US$	214,538	179,796
HK$	377	378
	214,915	180,174

Note:     The weighted average effective interest rate on bank deposits for the year ended December 31, 2018 and the three months ended March 31, 2019 was 2.18% per annum and 2.82% per annum respectively (with maturity ranging from 91 to 100 days and 91 to 97 days respectively).

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Accounts Receivable-Third Parties (Tables)

3 Months Ended

Mar. 31, 2019

Accounts Receivable-Third Parties

Schedule of accounts receivable

	December 31,	March 31,
	2018	2019
	(in US$’000)
Accounts receivable, gross	40,217	42,360
Allowance for doubtful accounts	(41)	(87)
Accounts receivable, net	40,176	42,273

Schedule of movement on the allowance for doubtful accounts

	2018	2019
	(in US$’000)
As at January 1	258	41
Increase in allowance for doubtful accounts	171	76
Decrease in allowance due to subsequent collection	(160)	(31)
Exchange difference	12	1
As at March 31	281	87

Schedule of aging analysis based on the relevant invoice dates

	December 31,	March 31,
	2018	2019
	(in US$’000)
Not later than 3 months	37,326	39,603
Between 3 months to 6 months	2,704	2,595
Between 6 months to 1 year	61	162
Later than 1 year	126	—
Accounts receivable, gross	40,217	42,360

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Inventories (Tables)

3 Months Ended

Mar. 31, 2019

Inventories

Schedule of inventories, net of provision for excess and obsolete inventories

	December 31,	March 31,
	2018	2019
	(in US$’000)
Raw materials	652	1,333
Finished goods	11,657	16,279
	12,309	17,612

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Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases

Schedule of leases

	March 31, 2019
	(in US$’000)
Right-of-use assets
Offices (note (a))	4,308
Factories	325
Others (note (b))	543
Total right-of-use assets	5,176
Lease liabilities—current	3,191
Lease liabilities—non-current	2,522
	5,713

Notes:

(a) Includes (i) US$0.2 million right-of-use asset for offices in the United States of America that is leased through July 2023 which includes an option to renew the lease up to an additional 3 years; and (ii) US$1.4 million right-of-use asset for corporate offices in Hong Kong that is leased through May 2021 which includes a termination option with 3 months advance notice. The renewal and termination options were not recognized as part of the right-of-use assets and lease liabilities.

(b) Includes US$0.4 million right-of-use asset for retail space in the United Kingdom that is leased through May 2022 which the Group has subleased through May 2022.

Schedule of lease activities

	Three Months Ended
	March 31, 2019
	(in US$’000)
Lease expenses:
Short-term leases with lease terms equal or less than 12 months	12
Leases with lease terms greater than 12 months	818
	830
Sublease rental income	61
Cash paid on lease liabilities	852
Non-cash: Lease liabilities recognized from obtaining right-of-use assets	—

Schedule of future lease payments

	March 31, 2019
	(in US$’000)
Lease payments:
Not later than 1 year	3,356
Between 1 to 2 years	2,006
Between 2 to 3 years	449
Between 3 to 4 years	105
Between 4 to 5 years	25
Total lease payments	5,941
Less: Discount factor	(228)
Total lease liabilities	5,713

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Investments in Equity Investees (Tables)

3 Months Ended

Mar. 31, 2019

Investments in Equity Investees

Schedule of composition of equity investees

	December 31,	March 31,
	2018	2019
	(in US$’000)
Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited ("HBYS")	60,992	65,594
Shanghai Hutchison Pharmaceuticals Limited ("SHPL")	68,812	84,737
Nutrition Science Partners Limited ("NSPL")	8,102	8,109
Other	412	487
	138,318	158,927

Summarized balance sheets for significant equity investees

	Commercial Platform				Innovation Platform
	Consumer Health		Prescription Drugs		Drug R&D
	HBYS		SHPL		NSPL
	December 31,	March 31,	December 31,	March 31,	December 31,	March 31,
	2018	2019	2018	2019	2018	2019
	(in US$’000)
Current assets	116,020	142,306	124,512	148,151	17,320	16,633
Non-current assets	100,353	102,819	98,532	101,305	—	—
Current liabilities	(73,974)	(93,365)	(84,357)	(78,528)	(1,117)	(415)
Non-current liabilities	(17,302)	(17,481)	(6,909)	(7,454)	—	—
Net assets	125,097	134,279	131,778	163,474	16,203	16,218
Non-controlling interests	(3,113)	(3,090)	—	—	—	—
	121,984	131,189	131,778	163,474	16,203	16,218

Summarized statements of operations for significant equity investees

	Commercial Platform				Innovation Platform
	Consumer Health		Prescription Drugs		Drug R&D
	HBYS		SHPL		NSPL (note (a))
	Three Months Ended		Three Months Ended		Three Months Ended
	March 31,		March 31,		March 31,
	2018	2019	2018	2019	2018	2019
	(in US$’000)
Revenue	62,090	58,484	86,733	89,501	—	—
Gross profit	30,557	31,505	63,114	64,582	—	—
Interest income	35	33	214	141	—	44
Finance cost	(30)	(4)	—	—	—	—
Profit/(loss) before taxation	6,749	7,056	31,300	32,813	(2,194)	15
Income tax expense (note (b))	(1,141)	(1,163)	(4,670)	(4,715)	—	—
Net income/(loss)	5,608	5,893	26,630	28,098	(2,194)	15
Non-controlling interests	2	89	—	—	—	—
Net income/(loss) attributable to the shareholders of equity investee	5,610	5,982	26,630	28,098	(2,194)	15

Notes:

(a) NSPL  primarily incurred research and development expenses during the three months ended March 31, 2018 and did not have any activity for the three months ended March 31, 2019.

(b) The main entities within the HBYS and SHPL groups have been granted the High and New Technology Enterprise (“HNTE”) status. Accordingly, the entities were eligible to use a preferential income tax rate of 15% for the three months ended March 31, 2018 and 2019.

Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees

	Commercial Platform				Innovation Platform (note)
	Consumer Health		Prescription Drugs		Drug R&D
	HBYS		SHPL		NSPL
	2018	2019	2018	2019	2018	2019
	(in US$’000)
Opening net assets after non-controlling interests as at January 1	110,616	121,984	132,731	131,778	38,401	16,203
Impact of change in accounting policy (ASC 842)	—	(19)	—	(2)	—	—
Net income/(loss) attributable to the shareholders of equity investee	5,610	5,982	26,630	28,098	(2,194)	15
Other comprehensive income	4,727	3,242	5,995	3,600	—	—
Closing net assets after non-controlling interests as at March 31	120,953	131,189	165,356	163,474	36,207	16,218
Group’s share of net assets	60,477	65,594	82,678	81,737	18,104	8,109
Goodwill	—	—	3,179	3,000	—	—
Carrying amount of investments as at March 31	60,477	65,594	85,857	84,737	18,104	8,109

Note: The Innovation Platform includes other immaterial equity investees. As at December 31, 2018 and March 31, 2019, the aggregate carrying amount of investments in NSPL and other immaterial equity investees was approximately US$8,514,000 and US$8,596,000 respectively.

Schedule of equity investees capital commitments

	March 31,
	2019
	(in US$’000)
Property, plant and equipment
Contracted but not provided for	1,807

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Accounts Payable (Tables)

3 Months Ended

Mar. 31, 2019

Accounts Payable

Schedule of accounts payable

	December 31,	March 31,
	2018	2019
	(in US$’000)
Accounts payable—third parties	14,158	19,204
Accounts payable—non-controlling shareholders of subsidiaries (Note 16 (iv))	4,960	4,143
Accounts payable—related party (Note 16 (ii))	6,507	7,417
	25,625	30,764

Schedule of aging analysis based on the relevant invoice dates

	December 31,	March 31,
	2018	2019
	(in US$’000)
Not later than 3 months	19,185	23,642
Between 3 months to 6 months	5,584	4,225
Between 6 months to 1 year	703	2,762
Later than 1 year	153	135
	25,625	30,764

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Other Payables, Accruals and Advance Receipts (Tables)

3 Months Ended

Mar. 31, 2019

Other Payables, Accruals and Advance Receipts

Schedule of other payables, accruals and advance receipts

	December 31,	March 31,
	2018	2019
	(in US$’000)
Accrued salaries and benefits	8,715	6,056
Accrued research and development expenses	28,883	37,219
Accrued selling and marketing expenses	4,675	4,756
Accrued administrative and other general expenses	6,181	9,897
Deferred government incentives	1,817	384
Deposits	1,230	1,899
Dividend payable to non-controlling shareholder of subsidiary (Note 16(iv))	1,282	1,282
Others	3,544	2,667
	56,327	64,160

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Bank Borrowings (Tables)

3 Months Ended

Mar. 31, 2019

Bank Borrowings

Schedule of bank borrowings

	December 31,	March 31,
	2018	2019
	(in US$’000)
Non-current	26,739	26,763

Schedule of maturities of bank borrowings

	December 31,	March 31,
	2018	2019
	(in US$’000)
Not later than 1 year	—	—
Between 1 to 2 years	26,923	26,923
	26,923	26,923

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies

Schedule of capital commitments

	March 31,
	2019
	(in US$’000)
Property, plant and equipment
Contracted but not provided for	1,341

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Share-based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

HCML Share Option Scheme

Share-based Compensation

A summary of share option activity and related information

			Weighted average
	Number of	Weighted average	remaining	Aggregate
	share	exercise price in	contractual life	intrinsic value
	options	£ per share	(years)	(in £’000)
Outstanding at January 1, 2018	11,264,120	1.77	6.29	43,158
Granted	10,606,260	4.69
Exercised	(2,107,080)	1.40
Cancelled	(1,208,450)	4.30
Outstanding at December 31, 2018	18,554,850	3.31	7.35	15,158
Cancelled	(145,350)	4.65
Outstanding at March 31, 2019	18,409,500	3.30	7.09	24,301
Vested and exercisable at December 31, 2018	8,032,040	1.68	4.84	14,843
Vested and exercisable at March 31, 2019	8,532,040	1.82	4.82	23,437

Assumption for fair value of share options granted

	Year Ended December 31,
	2011		2013		2016		2017		2018
Weighted average grant date fair value of share options (in £ per share)	0.18		0.32		0.90		1.27		1.67
Significant inputs into the valuation model (weighted average):
Exercise price (in £ per share)	0.44		0.61		1.97		3.11		4.69
Share price at effective date of grant (in £ per share)	0.43		0.61		1.97		3.11		4.66
Expected volatility (note (a))	46.6	%	36.0	%	39.0	%	36.3	%	37.6	%
Risk-free interest rate (note (b))	3.13	%	3.16	%	1.00	%	1.17	%	1.46	%
Contractual life of share options (in years)	10		10		8		10		10
Expected dividend yield (note (c))	0	%	0	%	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) The risk-free interest rates used in the Polynomial model are with reference to 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 in the foreseeable future, and therefore uses an expected dividend yield of zero in the Polynomial model.

Summary of share option exercises

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Cash received from share options exercised	254	—
Total intrinsic value of share options exercised	1,764	—

Summary of share-based compensation expenses

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Research and development expenses	334	2,109
Administrative expenses	—	186
	334	2,295

LTIP

Share-based Compensation

Schedule of granted awards

	Maximum cash
	amount per annum	Covered	Performance target
Grant date	(in US$ millions)	financial years	determination date
October 19, 2015	1.8	2014-2016	note (a)
March 24, 2016	0.3	note (b)	note (b)
March 15, 2017	0.4	note (c)	note (c)
March 15, 2017 and August 2, 2017	6.0	2017-2019	note (d)
December 15, 2017	0.5	2018-2019	note (d)
August 6, 2018	0.1	2018-2019	note (d)
December 14, 2018	1.5	2019	note (d)

Notes:

(a) 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 one business day after the publication date of the annual report of the Company for the financial year falling two years after the covered financial year to which the LTIP award relates.

(b) 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.

(c) This award did not stipulate performance targets and vested one business day after the publication date of the annual report for the 2017 financial year.

(d) 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.

Schedule of treasury shares (in the form of ordinary shares or ADS of the Company) purchased and held by the Trustee

	Number of	Cost
	treasury shares	(in US$’000)
As at January 1, 2018	559,775	1,957
Purchased	795,005	5,451
Vested	(233,750)	(731)
As at December 31, 2018	1,121,030	6,677
Purchased	60,430	346
Vested	(240,150)	(944)
As at March 31, 2019	941,310	6,079

Summary of share-based compensation expenses

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Research and development expenses	475	361
Selling and administrative expenses	405	275
	880	636
Recorded with a corresponding credit to:
Liability	563	178
Additional paid-in capital	317	458
	880	636

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Revenues (Tables)

3 Months Ended

Mar. 31, 2019

Revenues

Schedule of revenue disaggregated by customer types, major categories and reportable segments

	Three Months Ended March 31, 2018
	Innovation	Commercial
	Platform	Platform	Total
	(in US$’000)
Customer types
Third parties—Distribution	—	43,189	43,189
Third parties—Collaboration	4,835	—	4,835
Related parties (Note 16(i))	2,582	1,731	4,313
	7,417	44,920	52,337
Major categories
Goods	—	42,362	42,362
Services	7,417	2,558	9,975
	7,417	44,920	52,337

	Three Months Ended March 31, 2019
	Innovation	Commercial
	Platform	Platform	Total
	(in US$’000)
Customer types
Third parties-Distribution	1,959	44,524	46,483
Third parties-Collaboration	3,692	—	3,692
Related parties (Note 16(i))	127	1,866	1,993
	5,778	46,390	52,168
Major categories
Goods	1,959	44,651	46,610
Services	2,841	1,739	4,580
Royalties	978	—	978
	5,778	46,390	52,168

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Research and Development Expenses (Tables)

3 Months Ended

Mar. 31, 2019

Research and Development Expenses

Summary of research and development expenses

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Clinical trial related costs	19,472	19,706
Personnel compensation and related costs	7,850	11,295
Other research and development expenses	1,342	2,281
	28,664	33,282

XML

Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries (Tables)

3 Months Ended

Mar. 31, 2019

Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries

Schedule of transactions with related parties

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Sales to:
Indirect subsidiaries of CK Hutchison	1,731	1,866
Revenue from research and development services from:
Equity investees	2,582	127
Purchases from:
Equity investees	662	1,062
Rendering of marketing services from:
Indirect subsidiaries of CK Hutchison	172	94
An equity investee	3,197	1,736
	3,369	1,830
Rendering of support services from:
An indirect subsidiary of CK Hutchison	227	233

Schedule of balances with related parties

	December 31,	March 31,
	2018	2019
	(in US$’000)
Accounts receivable—related parties
Indirect subsidiaries of CK Hutchison (note (a))	2,709	2,189
An equity investee (note (a))	73	—
	2,782	2,189
Accounts payable
An equity investee (note (a))	6,507	7,417
Amounts due from related parties
Equity investees (note (a))	889	893
Amounts due to related parties
An indirect subsidiary of CK Hutchison (note (b))	432	623
Other deferred income
An equity investee (note (c))	1,356	1,335

Notes:

(a) 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.

(b) Amounts due to an indirect subsidiary of CK Hutchison are unsecured, repayable on demand and interest-bearing if not settled within one month.

(c) Other deferred income represents amounts recognized from granting of promotion and marketing rights.

Schedule of transactions with non-controlling shareholders of subsidiaries

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Sales	5,740	6,034
Purchases	3,323	3,504
Interest expense	18	—

Schedule of balances with non-controlling shareholders of subsidiaries

	December 31,	March 31,
	2018	2019
	(in US$’000)
Accounts receivable—third parties	5,070	4,193
Accounts payable	4,960	4,143
Other payables, accruals and advance receipts
Dividend payable	1,282	1,282
Other non-current liabilities
Loan	579	579

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2019

Income Taxes

Components of income tax expense

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Current tax
HK (note (a))	113	85
PRC (note (b))	537	352
Other	50	69
Deferred income tax	865	803
Income tax expense	1,565	1,309

Notes:

(a) The Company, two subsidiaries incorporated in the British Virgin Islands and its Hong Kong subsidiaries are subject to Hong Kong profits tax which has been provided for at the rate of 16.5% on the estimated assessable profits less estimated available tax losses in each entity.

(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, among others, a preferential tax rate of 15% for companies which qualify as HNTE. HMPL and its wholly-owned subsidiary Hutchison MediPharma (Suzhou) Limited qualify as a HNTE up to December 31, 2019 and 2020 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 major subsidiaries and 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, 2018 and March 31, 2019, 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 major subsidiaries and equity investees operating in the PRC will be distributed as dividends.

Schedule of reconciliation of the Group's reported income tax expense to the theoretical tax amount

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Loss before income taxes and equity in earnings of equity investees	(23,870)	(34,907)
Tax calculated at the statutory tax rate of the Company	(3,939)	(5,760)
Tax effects of:
Different tax rates available in different jurisdictions	1,204	1,220
Tax valuation allowance	5,472	6,499
Preferential tax deduction	(1,793)	(1,721)
Expenses not deductible for tax purposes	195	695
Utilization of previously unrecognized tax losses	(110)	(165)
Withholding tax on undistributed earnings of PRC entities	832	858
Others	(296)	(317)
Income tax expense	1,565	1,309

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Losses per Share (Tables)

3 Months Ended

Mar. 31, 2019

Losses per Share

Schedule of basic losses per share

	Three Months Ended
	March 31,
	2018	2019
Weighted average number of outstanding ordinary shares in issue	663,844,980	665,470,220
Net loss attributable to the Company (US$’000)	(11,730)	(19,885)
Losses per share attributable to the Company (US$ per share)	(0.02)	(0.03)

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting

Schedule of segment information for the reportable segments

	Three Months Ended March 31, 2018
	Innovation
	Platform	Commercial Platform
	Drug	Prescription	Consumer
	R&D	Drugs	Health
				Hong
	PRC	PRC	PRC	Kong	Subtotal	Unallocated	Total
	(in US$’000)
Revenue from external customers	7,417	35,471	3,438	6,011	44,920	—	52,337
Adjusted (LBIT)/EBIT	(24,427)	1,648	392	633	2,673	(3,176)	(24,930)
Interest income	20	10	3	14	27	1,219	1,266
Equity in earnings of equity investees, net of tax	(1,089)	13,314	2,805	—	16,119	—	15,030
Operating (loss)/profit	(25,496)	14,972	3,200	647	18,819	(1,957)	(8,634)
Interest expense	—	—	—	18	18	188	206
Income tax expense	9	445	108	104	657	899	1,565
Net (loss)/income attributable to the Company	(25,444)	13,933	2,585	261	16,779	(3,065)	(11,730)
Depreciation/amortization	782	34	6	5	45	7	834
Additions to non-current assets (other than financial instruments and deferred tax assets)	1,059	3	7	—	10	2	1,071

	As at December 31, 2018
	Innovation
	Platform	Commercial Platform
	Drug	Prescription	Consumer
	R&D	Drugs	Health
				Hong
	PRC	PRC	PRC	Kong	Subtotal	Unallocated	Total
	(in US$’000)
Total assets	100,388	118,445	67,352	11,686	197,483	234,247	532,118
Property, plant and equipment	15,223	204	71	418	693	700	16,616
Leasehold land	1,174	—	—	—	—	—	1,174
Goodwill	—	2,779	407	—	3,186	—	3,186
Other intangible asset	—	347	—	—	347	—	347
Investments in equity investees	8,514	68,812	60,992	—	129,804	—	138,318

	Three Months Ended March 31, 2019
	Innovation
	Platform	Commercial Platform
	Drug	Prescription	Consumer
	R&D	Drugs	Health
				Hong
	PRC	PRC	PRC	Kong	Subtotal	Unallocated	Total
	(in US$’000)
Revenue from external customers	5,778	37,849	3,342	5,199	46,390	—	52,168
Adjusted (LBIT)/EBIT	(32,318)	775	271	366	1,412	(5,417)	(36,323)
Interest income	99	14	11	1	26	1,551	1,676
Equity in earnings of equity investees, net of tax	70	14,049	2,991	—	17,040	—	17,110
Operating (loss)/profit	(32,149)	14,838	3,273	367	18,478	(3,866)	(17,537)
Interest expense	—	—	—	—	—	260	260
Income tax expense	47	228	93	43	364	898	1,309
Net (loss)/income attributable to the Company	(32,117)	14,321	2,761	135	17,217	(4,985)	(19,885)
Depreciation/amortization	1,097	40	6	22	68	40	1,205
Additions to non-current assets (other than financial instruments and deferred tax assets)	1,136	129	6	—	135	6	1,277

	As at March 31, 2019
	Innovation
	Platform	Commercial Platform
	Drug	Prescription	Consumer
	R&D	Drugs	Health
				Hong
	PRC	PRC	PRC	Kong	Subtotal	Unallocated	Total
	(in US$’000)
Total assets	77,773	144,381	71,260	10,423	226,064	235,460	539,297
Property, plant and equipment	15,653	315	73	364	752	631	17,036
Right-of-use assets	3,274	32	44	520	596	1,306	5,176
Leasehold land	1,196	—	—	—	—	—	1,196
Goodwill	—	2,852	407	—	3,259	—	3,259
Other intangible asset	—	340	—	—	340	—	340
Investments in equity investees	8,596	84,737	65,594	—	150,331	—	158,927

Schedule of reconciliation of Adjusted LBIT to net loss

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Adjusted LBIT	(24,930)	(36,323)
Interest income	1,266	1,676
Equity in earnings of equity investees, net of tax	15,030	17,110
Interest expense	(206)	(260)
Income tax expense	(1,565)	(1,309)
Net loss	(10,405)	(19,106)

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Note to Consolidated Statements of Cash Flows (Tables)

3 Months Ended

Mar. 31, 2019

Note to Consolidated Statements of Cash Flows

Schedule of reconciliation of net loss for the period to net cash used in operating activities

	Three Months Ended
	March 31,
	2018	2019
	(in US$’000)
Net loss	(10,405)	(19,106)
Adjustments to reconcile net loss to net cash used in  operating activities
Share-based compensation expense—share options	334	2,295
Share-based compensation expense—LTIP	880	636
Equity in earnings of equity investees, net of tax	(15,030)	(17,110)
Changes in right-of-use assets	—	754
Other adjustments	2,541	1,840
Changes in working capital
Accounts receivable—third parties	(5,747)	(2,142)
Inventories	2,160	(5,358)
Accounts payable	(7,605)	5,139
Other payables, accruals and advance receipts	2,154	6,929
Lease liabilities	—	(851)
Other changes in working capital	(122)	(1,949)
Total changes in working capital	(9,160)	1,768
Net cash used in operating activities	(30,840)	(28,923)

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Organization and Nature of Business (Details)	Mar. 31, 2019 HKD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 HKD ($)	Dec. 31, 2018 USD ($)
Organization and Nature of Business
Accumulated losses		$ 203,583,000		$ 183,004,000
Cash and cash equivalents		91,689,000		86,036,000
Short-term investments		180,174,000		214,915,000
Unutilized bank borrowing facilities	$ 931,000,000	$ 119,359,000	$ 931,000,000	$ 119,359,000

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Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands		3 Months Ended
	Jan. 01, 2019	Mar. 31, 2019	Dec. 31, 2018
Cumulative adjustment to opening accumulated losses upon adoption			$ (671)
Weighted average incremental borrowing rate	3.97%	3.96%
Reconciliation of operating lease commitments and lease liabilities recognized
Operating lease commitments	$ 8,835		8,835
Less: Leases not commenced	(3,676)
Less: Short-term leases	(5)
Add: Adjustment as a result of the treatment for a termination option	1,409
Less: Discount under the lessees' incremental borrowing rate	(206)
Lease liabilities	6,357	$ 5,713
Future aggregate minimum payments under non-cancellable operating leases under ASC 840
Not later than 1 year			3,026
Between 1 to 2 years			2,735
Between 2 to 3 years			1,056
Between 3 to 4 years			882
Between 4 to 5 years			810
Later than 5 years			326
Total minimum lease payments	8,835		8,835
Recognized right-of-use assets	$ 5,747	5,176
Practical expedients package	true
Practical expedients, use of hindsight	true
Offices
Future aggregate minimum payments under non-cancellable operating leases under ASC 840
Recognized right-of-use assets	$ 4,877	4,308
Factories
Future aggregate minimum payments under non-cancellable operating leases under ASC 840
Recognized right-of-use assets	383	325
Others
Future aggregate minimum payments under non-cancellable operating leases under ASC 840
Recognized right-of-use assets	$ 487	$ 543
Hong Kong | Offices
Future aggregate minimum payments under non-cancellable operating leases under ASC 840
Advance notice period for lease termination option	3 months	3 months
Recognized right-of-use assets		$ 1,400
Accumulated Losses
Cumulative adjustment to opening accumulated losses upon adoption			$ (655)

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Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Cash and Cash Equivalents
Cash at bank and on hand	$ 51,409	$ 78,556
Bank deposits maturing in three months or less (note (a))	40,280	7,480
Cash and cash equivalents	91,689	86,036
US$
Cash and Cash Equivalents
Cash and cash equivalents	73,539	58,291
RMB
Cash and Cash Equivalents
Cash and cash equivalents	15,739	23,254
UK Pound Sterling
Cash and Cash Equivalents
Cash and cash equivalents	84	331
Hong Kong dollar ("HK$")
Cash and Cash Equivalents
Cash and cash equivalents	$ 2,327	$ 4,160
Bank deposits maturing in three months or less | Weighted average
Cash and Cash Equivalents
Effective interest rate (in percentage)	2.49%	1.98%
Bank deposits maturing in three months or less | Minimum
Cash and Cash Equivalents
Bank deposit maturity period (in days)	30 days	7 days
Bank deposits maturing in three months or less | Maximum
Cash and Cash Equivalents
Bank deposit maturity period (in days)	35 days	90 days

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Short-term Investments (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Short term Investments
Short-term investments	$ 180,174	$ 214,915
Bank deposits maturing over three months | Weighted average
Short term Investments
Effective interest rate (in percentage)	2.82%	2.18%
Bank deposits maturing over three months | Minimum
Short term Investments
Bank deposit maturity period (in days)	91 days	91 days
Bank deposits maturing over three months | Maximum
Short term Investments
Bank deposit maturity period (in days)	97 days	100 days
US$
Short term Investments
Short-term investments	$ 179,796	$ 214,538
Hong Kong dollar ("HK$")
Short term Investments
Short-term investments	$ 378	$ 377

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Accounts Receivable-Third Parties (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Accounts Receivable-Third Parties
Accounts receivable, gross	$ 42,360	$ 40,217
Allowance for doubtful accounts	(87)	(41)
Accounts receivable, net	$ 42,273	$ 40,176

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Accounts Receivable-Third Parties - Movements on the Allowance for Doubtful Accounts Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Allowance for Doubtful Accounts Receivable
As at January 1	$ 41	$ 258
Increase in allowance for doubtful accounts	76	171
Decrease in allowance due to subsequent collection	(31)	(160)
Exchange difference	1	12
As at March 31	$ 87	$ 281

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Accounts Receivable-Third Parties - Aging Analysis (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Account Receivable
Accounts receivable, gross	$ 42,360	$ 40,217
Not later than 3 months
Account Receivable
Accounts receivable, gross	39,603	37,326
Between 3 months to 6 months
Account Receivable
Accounts receivable, gross	2,595	2,704
Between 6 months to 1 year
Account Receivable
Accounts receivable, gross	$ 162	61
Later than 1 year
Account Receivable
Accounts receivable, gross		$ 126

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Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventories
Raw materials	$ 1,333	$ 652
Finished goods	16,279	11,657
Total	$ 17,612	$ 12,309

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Leases (Details) - USD ($) $ in Thousands		3 Months Ended
	Jan. 01, 2019	Mar. 31, 2019
Leases
Right-of-use assets	$ 5,747	$ 5,176
Lease liabilities-current		3,191
Lease liabilities-non-current		2,522
Lease liabilities	$ 6,357	5,713
Lease expenses		830
Sublease rental income		61
Cash paid on lease liabilities		$ 852
Weighted average remaining lease term (years)		1 year 9 months 29 days
Weighted average discount rate	3.97%	3.96%
Lease payments:
Not later than 1 year		$ 3,356
Between 1 to 2 years		2,006
Between 2 to 3 years		449
Between 3 to 4 years		105
Between 4 to 5 years		25
Total lease payments		5,941
Less: Discount factor		(228)
Total lease liabilities	$ 6,357	5,713
Short-term leases with lease terms equal or less than 12 months
Leases
Lease expenses		12
Leases with lease terms greater than 12 months
Leases
Lease expenses		818
Offices
Leases
Right-of-use assets	$ 4,877	4,308
Offices | United States of America
Leases
Right-of-use assets		$ 200
Existence of option to renew the lease		true
Offices | Hong Kong
Leases
Right-of-use assets		$ 1,400
Existence of option to terminate the lease		true
Advance notice period for lease termination option	3 months	3 months
Factories
Leases
Right-of-use assets	$ 383	$ 325
Others
Leases
Right-of-use assets	$ 487	543
Others | United Kingdom
Leases
Right-of-use assets		$ 400
Minimum
Leases
Terms of lease contracts		1 year
Maximum
Leases
Terms of lease contracts		5 years
Maximum | Offices | United States of America
Leases
Renewal term of lease		3 years

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Investments in Equity Investees (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investments in Equity Investees
Investments in equity investees	$ 158,927	$ 138,318
Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited ("HBYS")
Investments in Equity Investees
Investments in equity investees	65,594	60,992
Shanghai Hutchison Pharmaceuticals Limited ("SHPL")
Investments in Equity Investees
Investments in equity investees	84,737	68,812
Nutrition Science Partners Limited ("NSPL")
Investments in Equity Investees
Investments in equity investees	8,109	8,102
Other
Investments in Equity Investees
Investments in equity investees	$ 487	$ 412

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Investments in Equity Investees - Summarized Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Consumer Health | Commercial Platform | Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited ("HBYS")
Summarized balance sheet
Current assets	$ 142,306	$ 116,020
Non-current assets	102,819	100,353
Current liabilities	(93,365)	(73,974)
Non-current liabilities	(17,481)	(17,302)
Net assets	134,279	125,097
Non-controlling interests	(3,090)	(3,113)
Net assets, excluding non-controlling interests	131,189	121,984	$ 120,953	$ 110,616
Prescription Drugs | Commercial Platform | Shanghai Hutchison Pharmaceuticals Limited ("SHPL")
Summarized balance sheet
Current assets	148,151	124,512
Non-current assets	101,305	98,532
Current liabilities	(78,528)	(84,357)
Non-current liabilities	(7,454)	(6,909)
Net assets	163,474	131,778
Net assets, excluding non-controlling interests	163,474	131,778	165,356	132,731
Drug R&D | Innovation Platform | Nutrition Science Partners Limited ("NSPL")
Summarized balance sheet
Current assets	16,633	17,320
Current liabilities	(415)	(1,117)
Net assets	16,218	16,203
Net assets, excluding non-controlling interests	$ 16,218	$ 16,203	$ 36,207	$ 38,401

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Investments in Equity Investees - Summarized Statements of Operations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited ("HBYS")
Summarized statements of operations
Preferential income tax rate (as a percent)	15.00%	15.00%
Shanghai Hutchison Pharmaceuticals Limited ("SHPL")
Summarized statements of operations
Preferential income tax rate (as a percent)	15.00%	15.00%
Other
Summarized statements of operations
Net income/(loss)	$ 125,000	$ 15,000
Commercial Platform | Consumer Health | Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited ("HBYS")
Summarized statements of operations
Revenue	58,484,000	62,090,000
Gross profit	31,505,000	30,557,000
Interest income	33,000	35,000
Finance cost	(4,000)	(30,000)
Profit/(loss) before taxation	7,056,000	6,749,000
Income tax expense (note (b))	(1,163,000)	(1,141,000)
Net income/(loss)	5,893,000	5,608,000
Non-controlling interests	89,000	2,000
Net income/(loss) attributable to the shareholders of equity investee	5,982,000	5,610,000
Commercial Platform | Prescription Drugs | Shanghai Hutchison Pharmaceuticals Limited ("SHPL")
Summarized statements of operations
Revenue	89,501,000	86,733,000
Gross profit	64,582,000	63,114,000
Interest income	141,000	214,000
Profit/(loss) before taxation	32,813,000	31,300,000
Income tax expense (note (b))	(4,715,000)	(4,670,000)
Net income/(loss)	28,098,000	26,630,000
Net income/(loss) attributable to the shareholders of equity investee	28,098,000	26,630,000
Innovation Platform | Drug R&D | Nutrition Science Partners Limited ("NSPL")
Summarized statements of operations
Interest income	44,000
Profit/(loss) before taxation	15,000	(2,194,000)
Net income/(loss)	15,000	(2,194,000)
Net income/(loss) attributable to the shareholders of equity investee	$ 15,000	$ (2,194,000)

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Investments in Equity Investees - Reconciliation of Summarized Financial Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees
Carrying amount of investments	$ 158,927,000		$ 138,318,000
Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited ("HBYS")
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees
Carrying amount of investments	65,594,000		60,992,000
Shanghai Hutchison Pharmaceuticals Limited ("SHPL")
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees
Carrying amount of investments	84,737,000		68,812,000
Nutrition Science Partners Limited ("NSPL")
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees
Carrying amount of investments	8,109,000		8,102,000
Commercial Platform | Consumer Health | Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited ("HBYS")
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees
Opening net assets after non-controlling interests as at January 1	121,984,000	$ 110,616,000
Impact of change in accounting policy (ASC 842)	(19,000)
Net income/(loss) attributable to the shareholders of equity investee	5,982,000	5,610,000
Other comprehensive income	3,242,000	4,727,000
Closing net assets after non-controlling interests as at March 31	131,189,000	120,953,000
Group's share of net assets	65,594,000	60,477,000
Carrying amount of investments	65,594,000	60,477,000
Commercial Platform | Prescription Drugs | Shanghai Hutchison Pharmaceuticals Limited ("SHPL")
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees
Opening net assets after non-controlling interests as at January 1	131,778,000	132,731,000
Impact of change in accounting policy (ASC 842)	(2,000)
Net income/(loss) attributable to the shareholders of equity investee	28,098,000	26,630,000
Other comprehensive income	3,600,000	5,995,000
Closing net assets after non-controlling interests as at March 31	163,474,000	165,356,000
Group's share of net assets	81,737,000	82,678,000
Goodwill	3,000,000	3,179,000
Carrying amount of investments	84,737,000	85,857,000
Innovation Platform | NSPL and other immaterial equity investees
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees
Carrying amount of investments	8,596,000		$ 8,514,000
Innovation Platform | Drug R&D | Nutrition Science Partners Limited ("NSPL")
Reconciliation of the summarized financial information presented to the carrying amount of investments in equity investees
Opening net assets after non-controlling interests as at January 1	16,203,000	38,401,000
Net income/(loss) attributable to the shareholders of equity investee	15,000	(2,194,000)
Closing net assets after non-controlling interests as at March 31	16,218,000	36,207,000
Group's share of net assets	8,109,000	18,104,000
Carrying amount of investments	$ 8,109,000	$ 18,104,000

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Investments in Equity Investees - Capital Commitments (Details) - Property, plant and equipment $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Capital commitments
Property, plant and equipment - Contracted but not provided for	$ 1,341
Equity investees
Capital commitments
Property, plant and equipment - Contracted but not provided for	$ 1,807

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Accounts Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Accounts payable-related party (Note 16(ii))	$ 7,417	$ 6,507
Accounts Payable	30,764	25,625
Not later than 3 months
Accounts Payable	23,642	19,185
Between 3 months to 6 months
Accounts Payable	4,225	5,584
Between 6 months to 1 year
Accounts Payable	2,762	703
Later than 1 year
Accounts Payable	135	153
Non-controlling shareholders of subsidiaries
Accounts payable-third parties	4,143	4,960
Third parties
Accounts payable-third parties	$ 19,204	$ 14,158

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Other Payables, Accruals and Advance Receipts (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Other Payables, Accruals and Advance Receipts
Accrued salaries and benefits	$ 6,056	$ 8,715
Accrued research and development expenses	37,219	28,883
Accrued selling and marketing expenses	4,756	4,675
Accrued administrative and other general expenses	9,897	6,181
Deferred government incentives	384	1,817
Deposits (note)	1,899	1,230
Dividend payable to non-controlling shareholder of subsidiary (Note 16(iv))	1,282	1,282
Others	2,667	3,544
Total other payables, accruals and advance receipts	$ 64,160	$ 56,327

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Bank Borrowings - Schedule of Bank Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Bank Borrowings
Non-current	$ 26,763	$ 26,739
Weighted average interest rate for outstanding bank borrowings	2.94%	2.79%

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Bank Borrowings - Loan Facilities (Details)	1 Months Ended
	Nov. 30, 2018 HKD ($)	Aug. 31, 2018 HKD ($) agreement	Nov. 30, 2017 HKD ($)	Nov. 30, 2017 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Nov. 30, 2018 USD ($)	Aug. 31, 2018 USD ($)	Nov. 30, 2017 USD ($)
Revolving loan facility
Bank Borrowings
Term	3 years
Aggregate amount of credit facilities	$ 234,000,000						$ 30,000,000
Amount drawn from the credit facility					$ 0	$ 0
Revolving loan facility | HIBOR
Bank Borrowings
Basis spread on variable rate	0.85%
Unsecured credit facility
Bank Borrowings
Aggregate amount of credit facilities		$ 507,000,000	$ 400,000,000					$ 65,000,000	$ 51,282,000
Number of facility agreements entered | agreement		2
Unsecured credit facility | Term loan
Bank Borrowings
Term			3 years	3 years
Aggregate amount of credit facilities			$ 210,000,000						26,923,000
Amount of upfront fee			$ 1,575,000	$ 202,000
Unsecured credit facility | Term loan | HIBOR
Bank Borrowings
Basis spread on variable rate			1.50%	1.50%
Unsecured credit facility | Revolving loan facility
Bank Borrowings
Term			18 months	18 months
Aggregate amount of credit facilities			$ 190,000,000						$ 24,359,000
Amount drawn from the credit facility					0	0
Unsecured credit facility | Revolving loan facility | HIBOR
Bank Borrowings
Basis spread on variable rate			1.25%	1.25%
First unsecured credit facility | Revolving loan facility
Bank Borrowings
Term		2 years
Aggregate amount of credit facilities		$ 351,000,000						45,000,000
Amount drawn from the credit facility					0	0
First unsecured credit facility | Revolving loan facility | HIBOR
Bank Borrowings
Basis spread on variable rate		1.35%
Second unsecured credit facility | Revolving loan facility
Bank Borrowings
Term		2 years
Aggregate amount of credit facilities		$ 156,000,000						$ 20,000,000
Amount drawn from the credit facility					$ 0	$ 0
Second unsecured credit facility | Revolving loan facility | HIBOR
Bank Borrowings
Basis spread on variable rate		1.35%

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Bank Borrowings - Schedule of Maturities of Bank Borrowings (Details)	Mar. 31, 2019 HKD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 HKD ($)	Dec. 31, 2018 USD ($)
Bank Borrowings
Between 1 to 2 years		$ 26,923,000		$ 26,923,000
Bank borrowings		26,923,000		26,923,000
Unutilized bank borrowing facilities	$ 931,000,000	$ 119,359,000	$ 931,000,000	$ 119,359,000

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Commitments and Contingencies (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Property, plant and equipment
Capital commitments
Property, plant and equipment - Contracted but not provided for	$ 1,341

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Share based Compensation - HCML Share Option Scheme (Details) - shares		3 Months Ended
	Jun. 04, 2005	Mar. 31, 2019
Share option scheme expired in 2016
Share-based Compensation
Expiry period	10 years
Aggregate number of shares issuable		1,845,180
HCML Share Option Scheme
Share-based Compensation
Aggregate number of shares issuable		23,130,970
Number of shares authorized but unissued		83,422,550
HCML Share Option Scheme | Minimum
Share-based Compensation
Expiry period		8 years
HCML Share Option Scheme | Maximum
Share-based Compensation
Expiry period		10 years
HCML Share Option Scheme | Four-year awards
Share-based Compensation
Vesting period		4 years
Vesting percentage upon first anniversary		25.00%
Annual vesting percentage after the first anniversary		25.00%

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Share-based Compensation - HCML Share Option Activity (Details) - HCML Share Option Scheme - GBP (£) £ / shares in Units, £ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Number of share options
Outstanding as at beginning of period (in shares)	18,554,850	11,264,120
Granted (in shares)		10,606,260
Exercised (in shares)		(2,107,080)
Cancelled (in shares)	(145,350)	(1,208,450)
Outstanding as at end of period (in shares)	18,409,500	18,554,850	11,264,120
Vested and exercisable (in shares)	8,532,040	8,032,040
Weighted-average exercise price
Outstanding balance as at beginning of period (in GBP per share)	£ 3.31	£ 1.77
Granted (in GBP per share)		4.69
Exercised (in GBP per share)		1.40
Cancelled (in GBP per share)	4.65	4.30
Outstanding balance as at end of period (in GBP per share)	3.30	3.31	£ 1.77
Vested and exercisable (in GBP per share)	£ 1.82	£ 1.68
Weighted average remaining contractual life
Outstanding (in years)	7 years 1 month 2 days	7 years 4 months 6 days	6 years 3 months 15 days
Vested and exercisable (in years)	4 years 9 months 26 days	4 years 10 months 2 days
Aggregate intrinsic value
Outstanding (in GBP)	£ 24,301	£ 15,158	£ 43,158
Vested and exercisable (in GBP)	£ 23,437	£ 14,843

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Share-based Compensation - HCML Options Fair value Assumptions (Details) - HCML Share Option Scheme - £ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2013	Dec. 31, 2011
Share-based Compensation
Weighted average grant date fair value of share options (in GBP per share)	£ 1.67	£ 1.27	£ 0.90	£ 0.32	£ 0.18
Significant inputs into the valuation model (weighted average):
Exercise price (in GBP per share)	4.69	3.11	1.97	0.61	0.44
Share price at effective date of grant (in GBP per share)	£ 4.66	£ 3.11	£ 1.97	£ 0.61	£ 0.43
Expected volatility (in percentage) (note (a))	37.60%	36.30%	39.00%	36.00%	46.60%
Risk-free interest rate (in percentage) (note (b))	1.46%	1.17%	1.00%	3.16%	3.13%
Contractual life of share options (in years)	10 years	10 years	8 years	10 years	10 years
Expected dividend yield (in percentage) (note (c))	0.00%	0.00%	0.00%	0.00%	0.00%

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Share-based Compensation - HCML Share Option Exercises (Details) - HCML Share Option Scheme $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Share option values
Cash received from share options exercised	$ 254
Total intrinsic value of share options exercised	$ 1,764

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Share-based Compensation - HCML Share Based Compensation Expense (Details) - HCML Share Option Scheme - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation
Share-based compensation expense	$ 2,295,000	$ 334,000
Unrecognized compensation cost	$ 13,028,000
Unrecognized compensation cost - weighted-average remaining service period	3 years 26 days
Research and development expenses
Share-based Compensation
Share-based compensation expense	$ 2,109,000	$ 334,000
Administrative expenses
Share-based Compensation
Share-based compensation expense	$ 186,000

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Share-based Compensation - LTIP (Details) - LTIP - USD ($) $ in Thousands							3 Months Ended		12 Months Ended
	Dec. 14, 2018	Aug. 06, 2018	Dec. 15, 2017	Aug. 02, 2017	Mar. 15, 2017	Oct. 19, 2015	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Mar. 24, 2016
Share-based Compensation
Awards forfeited							37,000	59,000
Shared-based Compensation Award, Performance
Share-based Compensation
Maximum cash amount per annum	$ 1,500	$ 100	$ 500	$ 6,000	$ 400	$ 1,800				$ 300
Number of business days for vesting after publication date of annual report					1 day	1 day
Number of years after the covered financial year to which the LTIP award relates	2 years	2 years	2 years	2 years		2 years
Vesting percentage on first anniversary										25.00%
Vesting percentage on second anniversary										25.00%
Vesting percentage on third anniversary										25.00%
Vesting percentage on fourth anniversary										25.00%
Number of business days for vesting after announcement of group's annual results	2 days	2 days	2 days	2 days
Ordinary Shares
Ordinary Shares Purchased and Held by Trustee - Number of treasury shares
As at January 1							1,121,030	559,775	559,775
Purchased							60,430		795,005
Vested							(240,150)		(233,750)
As at December 31							941,310		1,121,030
Ordinary Shares Purchased and Held by Trustee - Cost
As at January 1							$ 6,677	$ 1,957	$ 1,957
Purchased							346		5,451
Vested							(944)		(731)
As at December 31							$ 6,079		$ 6,677

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Share-based Compensation - LTIP Share Based Compensation Expense (Details) - LTIP - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Share-based Compensation
Share-based compensation expense	$ 636,000	$ 880,000
Share-based compensation reclassified from liability to additional paid-in capital	526,000	1,770,000
Share-based compensation recorded as liability	887,000		$ 1,235,000
Unrecognized compensation cost	3,990,000
Liability
Share-based Compensation
Share-based compensation expense	178,000	563,000
Additional Paid-in Capital
Share-based Compensation
Share-based compensation expense	458,000	317,000
Research and development expenses
Share-based Compensation
Share-based compensation expense	361,000	475,000
Selling and administrative expenses
Share-based Compensation
Share-based compensation expense	$ 275,000	$ 405,000

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Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues
Total revenues	$ 52,168	$ 52,337
Goods
Revenues
Total revenues	46,610	42,362
Services
Revenues
Total revenues	4,580	9,975
Royalties
Revenues
Total revenues	978
Third parties-Distribution
Revenues
Total revenues	46,483	43,189
Third parties-Collaboration
Revenues
Total revenues	3,692	4,835
Related parties
Revenues
Total revenues	1,993	4,313
Innovation Platform
Revenues
Total revenues	5,778	7,417
Innovation Platform | Goods
Revenues
Total revenues	1,959
Innovation Platform | Services
Revenues
Total revenues	2,841	7,417
Innovation Platform | Royalties
Revenues
Total revenues	978
Innovation Platform | Third parties-Distribution
Revenues
Total revenues	1,959
Innovation Platform | Third parties-Collaboration
Revenues
Total revenues	3,692	4,835
Innovation Platform | Related parties
Revenues
Total revenues	127	2,582
Commercial Platform
Revenues
Total revenues	46,390	44,920
Commercial Platform | Goods
Revenues
Total revenues	44,651	42,362
Commercial Platform | Services
Revenues
Total revenues	1,739	2,558
Commercial Platform | Third parties-Distribution
Revenues
Total revenues	44,524	43,189
Commercial Platform | Related parties
Revenues
Total revenues	$ 1,866	$ 1,731

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Research and Development Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Research and Development Expenses
Clinical trial related costs	$ 19,706	$ 19,472
Personnel compensation and related costs	11,295	7,850
Other research and development expenses	2,281	1,342
Research and development expenses	$ 33,282	$ 28,664

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Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries - Related parties (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Balances with related parties included in:
Accounts receivable-related parties	$ 2,189		$ 2,782
Accounts payable	7,417		6,507
Marketing services
Related party transaction
Expenses	1,830	$ 3,369
Indirect subsidiaries of CK Hutchison
Balances with related parties included in:
Accounts receivable-related parties	2,189		2,709
Amounts due to related parties	$ 623		$ 432
Maximum settlement period, interest free (in months)	1 month		1 month
Indirect subsidiaries of CK Hutchison | Sales
Related party transaction
Sales	$ 1,866	1,731
Indirect subsidiaries of CK Hutchison | Marketing services
Related party transaction
Expenses	94	172
Indirect subsidiaries of CK Hutchison | Support services
Related party transaction
Expenses	233	227
Equity investees
Related party transaction
Purchases	1,062	662
Balances with related parties included in:
Accounts receivable-related parties			$ 73
Accounts payable	7,417		6,507
Amounts due from related parties	893		889
Other deferred income	1,335		$ 1,356
Equity investees | Research and development services
Related party transaction
Sales	127	2,582
Equity investees | Marketing services
Related party transaction
Expenses	$ 1,736	$ 3,197

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Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries - Non-controlling shareholders of subsidiaries (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Non-controlling shareholders of subsidiaries
Sales	$ 52,168	$ 52,337
Interest expense	260	206
Balances with non-controlling shareholders of subsidiaries
Accounts receivable-third parties	42,273		$ 40,176
Other payables, accruals and advance receipts	64,160		56,327
Other non-current liabilities	8,332		7,645
Non-controlling shareholders of subsidiaries
Non-controlling shareholders of subsidiaries
Sales	6,034	5,740
Purchases	3,504	3,323
Interest expense		$ 18
Balances with non-controlling shareholders of subsidiaries
Accounts receivable-third parties	4,193		5,070
Accounts payable	4,143		4,960
Non-controlling shareholders of subsidiaries | Dividend payable
Balances with non-controlling shareholders of subsidiaries
Other payables, accruals and advance receipts	1,282		1,282
Non-controlling shareholders of subsidiaries | Loan
Balances with non-controlling shareholders of subsidiaries
Other non-current liabilities	$ 579		$ 579

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Income Taxes (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019 USD ($) subsidiary	Mar. 31, 2018 USD ($)	Dec. 31, 2018
Other	$ 69	$ 50
Deferred income tax	803	865
Income tax expense	1,309	1,565
Reconciliation of reported income tax expense to the theoretical tax amount
Loss before income taxes and equity in earnings of equity investees	(34,907)	(23,870)
Tax calculated at the statutory tax rate of the Company	(5,760)	(3,939)
Different tax rates available in different jurisdictions	1,220	1,204
Tax valuation allowance	6,499	5,472
Preferential tax deduction	(1,721)	(1,793)
Expenses not deductible for tax purposes	695	195
Utilization of previously unrecognized tax losses	(165)	(110)
Withholding tax on undistributed earnings of PRC entities	858	832
Others	(317)	(296)
Income tax expense	1,309	1,565
Hong Kong
Current tax	$ 85	$ 113
Tax rates
Income tax rate (as a percent)	16.50%	16.50%
PRC
Current tax	$ 352	$ 537
Tax rates
Income tax rate (as a percent)	25.00%	25.00%
Preferential income tax rate (as a percent)	15.00%	15.00%
Dividends declared withholding tax rate (as a percent)	10.00%	10.00%
Lower withholding tax rate (as a percent)	5.00%	5.00%
Minimum equity interest of foreign investor required for lower withholding tax rate (as a percent)	25.00%	25.00%
Distributable reserves expected to be distributed as dividends (as a percent)	100.00%		100.00%
British Virgin Islands
Tax rates
Number of subsidiaries | subsidiary	2

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Losses per Share (Details) $ / shares in Units, $ in Thousands		3 Months Ended
	May 29, 2019	Mar. 31, 2019 USD ($) $ / shares shares	Mar. 31, 2018 USD ($) $ / shares shares
Basic (losses)/earnings per share
Weighted average number of outstanding ordinary shares in issue | shares		665,470,220	663,844,980
Net loss attributable to the Company | $		$ (19,885)	$ (11,730)
Losses per share attributable to the Company (US$ per share) | $ / shares		$ (0.03)	$ (0.02)
Subsequent Events
Basic (losses)/earnings per share
Stock split ratio	10

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Segment Reporting - Segment Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) area	Mar. 31, 2018 USD ($)	Jan. 01, 2019 USD ($)	Dec. 31, 2018 USD ($)
Segment reporting
Revenue from external customers	$ 52,168	$ 52,337
Adjusted (LBIT)/EBIT	(36,323)	(24,930)
Interest income	1,676	1,266
Equity in earnings of equity investees, net of tax	17,110	15,030
Operating (loss)/profit	(17,537)	(8,634)
Interest expense	260	206
Income tax expense	1,309	1,565
Net loss attributable to the Company	(19,885)	(11,730)
Depreciation/amortization	1,205	834
Additions to non-current assets (other than financial instruments and deferred tax assets)	1,277	1,071
Segment information
Total assets	539,297			$ 532,118
Property, plant and equipment	17,036			16,616
Right-of-use assets	5,176		$ 5,747
Leasehold land	1,196			1,174
Goodwill	3,259			3,186
Other intangible asset	340			347
Investments in equity investees	158,927			138,318
Innovation Platform
Segment reporting
Revenue from external customers	$ 5,778	7,417
Commercial Platform
Segment reporting
Number of core business areas | area	2
Revenue from external customers	$ 46,390	44,920
Reportable segment | Innovation Platform | Drug R&D | PRC
Segment reporting
Revenue from external customers	5,778	7,417
Adjusted (LBIT)/EBIT	(32,318)	(24,427)
Interest income	99	20
Equity in earnings of equity investees, net of tax	70	(1,089)
Operating (loss)/profit	(32,149)	(25,496)
Income tax expense	47	9
Net loss attributable to the Company	(32,117)	(25,444)
Depreciation/amortization	1,097	782
Additions to non-current assets (other than financial instruments and deferred tax assets)	1,136	1,059
Segment information
Total assets	77,773			100,388
Property, plant and equipment	15,653			15,223
Right-of-use assets	3,274
Leasehold land	1,196			1,174
Investments in equity investees	8,596			8,514
Reportable segment | Commercial Platform
Segment reporting
Revenue from external customers	46,390	44,920
Adjusted (LBIT)/EBIT	1,412	2,673
Interest income	26	27
Equity in earnings of equity investees, net of tax	17,040	16,119
Operating (loss)/profit	18,478	18,819
Interest expense		18
Income tax expense	364	657
Net loss attributable to the Company	17,217	16,779
Depreciation/amortization	68	45
Additions to non-current assets (other than financial instruments and deferred tax assets)	135	10
Segment information
Total assets	226,064			197,483
Property, plant and equipment	752			693
Right-of-use assets	596
Goodwill	3,259			3,186
Other intangible asset	340			347
Investments in equity investees	150,331			129,804
Reportable segment | Commercial Platform | Prescription Drugs | PRC
Segment reporting
Revenue from external customers	37,849	35,471
Adjusted (LBIT)/EBIT	775	1,648
Interest income	14	10
Equity in earnings of equity investees, net of tax	14,049	13,314
Operating (loss)/profit	14,838	14,972
Income tax expense	228	445
Net loss attributable to the Company	14,321	13,933
Depreciation/amortization	40	34
Additions to non-current assets (other than financial instruments and deferred tax assets)	129	3
Segment information
Total assets	144,381			118,445
Property, plant and equipment	315			204
Right-of-use assets	32
Goodwill	2,852			2,779
Other intangible asset	340			347
Investments in equity investees	84,737			68,812
Reportable segment | Commercial Platform | Consumer Health | PRC
Segment reporting
Revenue from external customers	3,342	3,438
Adjusted (LBIT)/EBIT	271	392
Interest income	11	3
Equity in earnings of equity investees, net of tax	2,991	2,805
Operating (loss)/profit	3,273	3,200
Income tax expense	93	108
Net loss attributable to the Company	2,761	2,585
Depreciation/amortization	6	6
Additions to non-current assets (other than financial instruments and deferred tax assets)	6	7
Segment information
Total assets	71,260			67,352
Property, plant and equipment	73			71
Right-of-use assets	44
Goodwill	407			407
Investments in equity investees	65,594			60,992
Reportable segment | Commercial Platform | Consumer Health | Hong Kong
Segment reporting
Revenue from external customers	5,199	6,011
Adjusted (LBIT)/EBIT	366	633
Interest income	1	14
Operating (loss)/profit	367	647
Interest expense		18
Income tax expense	43	104
Net loss attributable to the Company	135	261
Depreciation/amortization	22	5
Segment information
Total assets	10,423			11,686
Property, plant and equipment	364			418
Right-of-use assets	520
Unallocated
Segment reporting
Adjusted (LBIT)/EBIT	(5,417)	(3,176)
Interest income	1,551	1,219
Operating (loss)/profit	(3,866)	(1,957)
Interest expense	260	188
Income tax expense	898	899
Net loss attributable to the Company	(4,985)	(3,065)
Depreciation/amortization	40	7
Additions to non-current assets (other than financial instruments and deferred tax assets)	6	$ 2
Segment information
Total assets	235,460			234,247
Property, plant and equipment	631			$ 700
Right-of-use assets	$ 1,306

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Segment Reporting - Elimination (Details) - customer	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting
Number of customers accounted for more than 10% of revenue	1	1

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Segment Reporting - Reconciliation of Adjusted LBIT to net loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting
Adjusted LBIT	$ (36,323)	$ (24,930)
Interest income	1,676	1,266
Equity in earnings of equity investees, net of tax	17,110	15,030
Interest expense	(260)	(206)
Income tax expense	(1,309)	(1,565)
Net loss	$ (19,106)	$ (10,405)

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Note to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities
Net loss	$ (19,106)	$ (10,405)
Adjustments to reconcile net loss to net cash used in operating activities
Share-based compensation expense-share options	2,295	334
Share-based compensation expense - LTIP	636	880
Equity in earnings of equity investees, net of tax	(17,110)	(15,030)
Changes in right-of-use assets	754
Other adjustments	1,840	2,541
Changes in working capital
Accounts receivable-third parties	(2,142)	(5,747)
Inventories	(5,358)	2,160
Accounts payable	5,139	(7,605)
Other payables, accruals and advance receipts	6,929	2,154
Lease liabilities	(851)
Other changes in working capital	(1,949)	(122)
Total changes in working capital	1,768	(9,160)
Net cash used in operating activities	$ (28,923)	$ (30,840)

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Litigation (Details)	Mar. 31, 2019 claim
Litigation
Number of claims or actions pending	0

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Subsequent Events (Details)				1 Months Ended
	May 31, 2019 HKD ($)	May 31, 2019 USD ($)	May 29, 2019 $ / shares shares	Nov. 30, 2018 HKD ($)	Nov. 30, 2017 HKD ($)	Nov. 30, 2017 USD ($)	May 31, 2019 USD ($)	May 28, 2019 $ / shares	Apr. 24, 2019 USD ($) $ / shares shares	Apr. 23, 2019 USD ($)	Mar. 31, 2019 USD ($) $ / shares	Dec. 31, 2018 USD ($) $ / shares	Nov. 30, 2018 USD ($)	Aug. 31, 2018 HKD ($)	Aug. 31, 2018 USD ($)	Nov. 30, 2017 USD ($)
Subsequent events
Ordinary shares, par value (in US$ per share) | $ / shares											$ 0.10	$ 0.10
Accounts receivable											$ 42,273,000	$ 40,176,000
Inventories											17,612,000	12,309,000
Accounts payable											30,764,000	25,625,000
Revolving loan facility
Subsequent events
Aggregate amount of credit facilities				$ 234,000,000									$ 30,000,000
Term				3 years
Amount drawn from the credit facility											0	0
Revolving loan facility | HIBOR
Subsequent events
Basis spread on variable rate				0.85%
Unsecured credit facility
Subsequent events
Aggregate amount of credit facilities					$ 400,000,000									$ 507,000,000	$ 65,000,000	$ 51,282,000
Unsecured credit facility | Term loan
Subsequent events
Aggregate amount of credit facilities					$ 210,000,000											26,923,000
Term					3 years	3 years
Amount of upfront fee					$ 1,575,000	$ 202,000
Unsecured credit facility | Term loan | HIBOR
Subsequent events
Basis spread on variable rate					1.50%	1.50%
Unsecured credit facility | Revolving loan facility
Subsequent events
Aggregate amount of credit facilities					$ 190,000,000											$ 24,359,000
Term					18 months	18 months
Amount drawn from the credit facility											0	$ 0
Unsecured credit facility | Revolving loan facility | HIBOR
Subsequent events
Basis spread on variable rate					1.25%	1.25%
Seroquel
Subsequent events
Accounts receivable											1,700,000
Inventories											600,000
Long-term prepayment											1,300,000
Accounts payable											1,300,000
Seroquel | Adjustment
Subsequent events
Accounts receivable											0
Inventories											0
Long-term prepayment											0
Accounts payable											$ 0
Subsequent Events
Subsequent events
Authorized share capital									$ 150,000,000	$ 75,000,000
Additional authorized share capital (in shares) | shares			750,000,000						75,000,000
Stock split ratio			10
Ordinary shares, par value (in US$ per share) | $ / shares			$ 0.10					$ 1.00	$ 1.00
Subsequent Events | Unsecured credit facility
Subsequent events
Aggregate amount of credit facilities	$ 400,000,000						$ 51,282,000
Subsequent Events | Unsecured credit facility | Term loan
Subsequent events
Aggregate amount of credit facilities	$ 210,000,000						26,923,000
Term	3 years	3 years
Amount of upfront fee	$ 819,000	$ 105,000
Amount drawn from the credit facility							0
Subsequent Events | Unsecured credit facility | Term loan | HIBOR
Subsequent events
Basis spread on variable rate	0.85%	0.85%
Subsequent Events | Unsecured credit facility | Revolving loan facility
Subsequent events
Aggregate amount of credit facilities	$ 190,000,000						24,359,000
Term	3 years	3 years
Amount drawn from the credit facility							$ 0
Subsequent Events | Unsecured credit facility | Revolving loan facility | HIBOR
Subsequent events
Basis spread on variable rate	0.85%	0.85%