| Significant Transactions with Related Parties and Non-Controlling Shareholders of Subsidiaries |
17. 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: |
| | | | | | | Six Months Ended June 30, | | | 2026 | | 2025 | | | | (in US$’000) | Sales to: | | | | | An equity investee | | 798 | | 727 | Purchases from: | | | | | An equity investee | | 1,038 | | 1,795 | Rendering of management services from: | | | | | An indirect subsidiary of CK Hutchison Holdings Limited (“CK Hutchison”) | | 564 | | 519 |
(ii) | Balances with related parties included in: |
| | | | | | | June 30, | | December 31, | | | 2026 | | 2025 | | | | (in US$’000) | Accounts receivable — related parties | | | | | An equity investee (note (a)) | | 350 | | 224 | Amounts due from related parties | | | | | An equity investee (note (b)) | | 44,021 | | 51,796 | Other payables and accruals | | | | | Indirect subsidiaries of CK Hutchison (note (c) and (d)) | | 1,890 | | 1,840 | An equity investee (note (a) and (e)) | | 77 | | 78 | | | 1,967 | | 1,918 | Amounts due to related parties | | | | | An indirect subsidiary of CK Hutchison (note (d)) | | 5,648 | | 6,251 | An equity investee (note (e)) | | 39 | | 74 | | | 5,687 | | 6,325 |
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. No allowance for credit losses has been made for amounts due from related parties for the six months ended June 30, 2026 and year ended December 31, 2025. |
(b) | As at June 30, 2026 and December 31, 2025, dividends receivable of US$44,021,000 and US$51,796,000 was included in amounts due from related parties respectively. As at June 30, 2026 and December 31, 2025, the non-current portion of US$44,021,000 and US$41,381,000 will be received no later than December 31, 2028. |
(c) | Amounts due to indirect subsidiaries of CK Hutchison are unsecured, repayable on demand and interest-bearing if not settled within one month. |
(d) | As at June 30, 2026 and December 31, 2025, a branding liability payable of US$1,538,000 was included in amounts due to related parties under other payables and accruals. As at June 30, 2026 and December 31, 2025, US$5,648,000 and US$6,251,000 of the branding liability payable was included in amounts due to related parties respectively. |
(e) | Includes other deferred income representing amounts recognized from granting of commercial, promotion and marketing rights. |
(iii) | Transactions with non-controlling shareholders of subsidiaries: |
| | | | | | | Six Months Ended June 30, | | | 2026 | | 2025 | | | | (in US$’000) | Sales | | 21,972 | | 26,991 | Purchases | | 110 | | 355 | Distribution service fee | | 79 | | 107 |
(iv) | Balances with non-controlling shareholders of subsidiaries included in: |
| | | | | | | June 30, | | December 31, | | | 2026 | | 2025 | | | | (in US$’000) | Accounts receivable | | 7,185 | | 11,280 | Accounts payable | | 11 | | 90 | Other payables and accruals | | 247 | | 248 |
|