0001835268-24-000014 | 20-F | XBRL Viewer | Connect Biopharma Holdings LTD

Total cash and cash equivalents

Cash equivalents

$ 78,317

$ 18,368

106,007

79,010

^[1],[2]

$ 267,716

$ 154,803

UNITED STATES

Cash at bank

10,767

50,739

PRC

Cash at bank

15,614

9,169

AUSTRALIA

Disclosure Of Financial Instruments [Line Items]

Cash at bank

$ 1,309

$ 734

[1]	(i) The Group elected to change its presentation currency from RMB to USD with effect from January 1, 2023 as described in Note 2 to these consolidated financial statements. The consolidated statements of cash flows for the years ended December 31, 2021 and 2022 have been re-presented to reflect the Group's change in presentation currency.
[2]	(i) The Group elected to change its presentation currency from RMB to USD with effect from January 1, 2023 as described in Note 2 to these consolidated financial statements. The consolidated balance sheets as of January 1, 2022 and December 31, 2022 have been re-presented to reflect the Group's change in presentation currency.

Financial Instruments and Risk Management - Summary of Exposure to Foreign Currency Risk (Details) - USD ($)
$ in Thousands

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

^[1],[2]

Dec. 31, 2020

^[1]

Disclosure Of Financial Instruments [Line Items]

$ 106,007

$ 79,010

^[1],[2]

$ 267,716

$ 154,803

Foreign Currency Risk

$ 806

$ 472

[1]	(i) The Group elected to change its presentation currency from RMB to USD with effect from January 1, 2023 as described in Note 2 to these consolidated financial statements. The consolidated statements of cash flows for the years ended December 31, 2021 and 2022 have been re-presented to reflect the Group's change in presentation currency.
[2]	(i) The Group elected to change its presentation currency from RMB to USD with effect from January 1, 2023 as described in Note 2 to these consolidated financial statements. The consolidated balance sheets as of January 1, 2022 and December 31, 2022 have been re-presented to reflect the Group's change in presentation currency.

Income Taxes - Additional Information (Details)

12 Months Ended

Apr. 01, 2018

HKD ($)

Dec. 31, 2023

USD ($)

Dec. 31, 2023

CNY (¥)

Dec. 31, 2023

HKD ($)

Dec. 31, 2023

AUD ($)

Dec. 31, 2022

USD ($)

Dec. 31, 2022

CNY (¥)

Dec. 31, 2022

HKD ($)

Dec. 31, 2022

AUD ($)

Dec. 31, 2021

USD ($)

Dec. 31, 2021

CNY (¥)

Dec. 31, 2021

HKD ($)

Dec. 31, 2021

AUD ($)

Tax expense at PRC enterprise income tax rate of 25%

$ 120,000

$ 298,000

^[1]

$ 266,000

^[1]

(14,846,000)

(28,538,000)

(50,714,000)

Deferred income tax assets recognized

Deductible temporary differences for which no deferred tax asset is recognized

366,800,000

316,400,000

208,100,000

Unused tax credits for which no deferred tax asset recognised

5,900,000

Unrecognized uncertain tax positions

Connect Biopharm LLC (“Connect US”)

$ 100,000

$ 300,000

HONG KONG

HONG KONG | Bottom of range

Tax rate (in percent)

16.50%

0.00%

Assessable profits

$ 0

Percentage of assessable profits (in percent)

8.25%

Assessable profits

$ 2,000,000

UNITED STATES | Connect Biopharma HongKong Limited (“Connect HK”)

Corporate income tax rate (in percent)

21.00%

CALIFORNIA | Connect Biopharm LLC (“Connect US”)

State income tax rate (in percent)

8.84%

AUSTRALIA | Connect Biopharma Australia PTY LTD (“Connect AU”)

Tax rate (in percent)

30.00%

Tax expense at PRC enterprise income tax rate of 25%

$ 0

$ 0

PRC

Tax expense at PRC enterprise income tax rate of 25% | ¥

Tax rate (in percent)

25.00%

Assessable profits | ¥

¥ 0

Income tax expense | ¥

¥ 0

[1]

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2023

Disclosure of detailed information about property, plant and equipment [abstract]

Property, Plant and Equipment


(In thousands)	Laboratory equipment		Leasehold improvements		Office equipment, furniture and others		Assets under constructioni		Total

As of January 1, 2021
Cost	$	869	$	224	$	90	$	292	$	1,475
Accumulated depreciation	(224)		(124)		(64)		—		(412)
Net book value	$	645	$	100	$	26	$	292	$	1,063
Year ended December 31, 2021
Opening net book value	$	645	$	100	$	26	$	292	$	1,063
Exchange difference	82		9		3		5		99
Additions	4,636		122		133		3,779		8,670
Transfers	—		378		—		(378)		—
Disposals	(34)		—		(5)		—		(39)
Depreciation	(304)		(126)		(56)		—		(486)

Closing net book value	$	5,025	$	483	$	101	$	3,698	$	9,307
As of December 31, 2021
Cost	$	5,553	$	733	$	221	$	3,698	$	10,205
Accumulated depreciation	(528)		(250)		(120)		—		(898)
Net book value	$	5,025	$	483	$	101	$	3,698	$	9,307

Year ended December 31, 2022
Opening net book value	$	5,025	$	483	$	101	$	3,698	$	9,307
Exchange difference	(414)		(36)		1		(412)		(861)
Additions	312		65		119		1,455		1,951
Transfers	43		—		—		(43)		—

Depreciation	(494)		(151)		(78)		—		(723)
Impairment lossi	—		—		—		(4,698)		(4,698)
Closing net book value	$	4,472	361		$	143	$	—	$	4,976
As of December 31, 2022
Cost	$	5,494	$	762	$	341	$	—	$	6,597
Accumulated depreciation	(1,022)		(401)		(198)		—		(1,621)
Net book value	$	4,472	$	361	$	143	$	—	$	4,976

Year ended December 31, 2023
Opening net book value	$	4,472	$	361	$	143	$	—	$	4,976
Exchange difference	(73)		(3)		—		—		(76)
Additions	83		—		—		—		83

Disposals	(1)		—		(1)		—		(2)
Depreciation	(494)		(131)		(82)		—		(707)

Closing net book value	$	3,987	$	227	$	60	$	—	$	4,274
As of December 31, 2023
Cost	$	5,503	$	759	$	340	$	—	$	6,602
Accumulated depreciation	(1,516)		(532)		(280)		—		(2,328)
Net book value	$	3,987	$	227	$	60	$	—	$	4,274

(i) The Group terminated a plan to build a facility for research and development laboratory, manufacturing and office use in the Taicang High-Tech Industrial Development Zone and recognized net impairment losses on the construction in process of USD 4.7 million for the year ended December 31, 2022.

Financial Instruments with Preferred Rights - Additional Information (Details)		1 Months Ended
	Mar. 19, 2021 $ / shares	Mar. 31, 2021	Dec. 31, 2023 shares	Nov. 01, 2023 shares	May 01, 2023 shares	Nov. 01, 2022 shares	Mar. 18, 2021 shares
Disclosure Of Financial Instruments [Line Items]
Number of preferred shares			43,058,000	29,895	30,312	25,468
Financial instruments with preferred rights
Disclosure Of Financial Instruments [Line Items]
Conversion from preferred shares to ordinary shares after share consolidation			24,745,572
Preference Shares \| Financial instruments with preferred rights
Disclosure Of Financial Instruments [Line Items]
Number of shares issued at consolidation			46,232
Number of preferred shares							24,791,804
Number of shares outstanding							24,791,804
Initial public offering price \| $ / shares	$ 17
Preferred shares conversion ratio		1

Summary of Other Potentially Material Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2023 Segment
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Number of segments	1
Bottom of range
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Offices and rental contract lease term	2 years
Top of range
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Offices and rental contract lease term	4 years

Summary of Material Accounting Policies

12 Months Ended

Dec. 31, 2023

Disclosure of initial application of standards or interpretations [abstract]

Summary of Material Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation

The Group’s consolidated financial statements were prepared in accordance with International Financial Reporting Standards (“IFRS Accounting Standards”) issued by the International Accounting Standards Board (“IASB”). The Group

adopted and transitioned to IFRS Accounting Standards issued by IASB on January 1, 2018. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, and financial instruments with preferred rights.

The Group has adopted the following standards and amendments for the first time for our annual reporting period commencing January 1, 2023:


Standard	Key requirements	Effective for annual periods beginning on or after
IFRS 17	Insurance Contracts	January 1, 2023
Amendments to IAS 1 and IFRS Practice Statement 2	Disclosure of Accounting Policies	January 1, 2023
Amendments to IAS 8	Definition of Accounting Estimates	January 1, 2023
Amendments to IAS 12	Deferred Tax related to Assets and Liabilities Arising from a Single Transaction	January 1, 2023
Amendments to IAS 12	International Tax Reform-Pillar Two Model Rules	January 1, 2023

The standards and amendments listed above did not have any impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods.

The consolidated financial statements for the years ended December 31, 2021, 2022 and 2023 were authorized for issue by the Company’s board of directors (the “Board”) on April 16, 2024.

Liquidity

Since inception, the Group has incurred accumulated losses of USD 539.3 million. For the year ended December 31, 2023, the Group had operating loss of USD 62.1 million and net operating cash outflow of USD 47.9 million. The principal sources of funding have historically been cash contributions from equity holders. The cumulative contributions up through December 31, 2023 approximated USD 440.1 million, among which included USD 219.9 million of proceeds from issuance of ordinary shares in connection with the IPO. As of December 31, 2023, the Group had net assets of USD 101.0 million, mainly including cash, cash equivalents, and short-term investments at fair value through other comprehensive income of USD 118.7 million. Taking this into consideration, the Group believes it will have sufficient available financial resources to meet its obligations and working capital requirements for at least in the next twelve months from the date of issuance of these financial statements. Accordingly, the Group considers that it is appropriate to prepare the consolidated financial information on a going concern basis.

2.2 Change in presentation currency

The Company elected to change its presentation currency from RMB to USD with effect from January 1, 2023. This change was made as a result of the Group’s assessment that this change will help provide a clearer understanding of the Group’s financial performance and improve comparability of our performance to peers. Figures have been re-presented from January 1, 2021 to reflect the change in presentation currency from RMB to USD. This change in presentation currency did not impact the valuation of assets, liabilities, or equity.

This change in presentation currency constitutes a change in accounting policy with retrospective application in accordance with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, and is reflected in these consolidated financial statements by applying the procedures in accordance with the requirements set out in IAS 21, The Effects of Changes in Foreign Exchange Rates.

Hence, the Group's financial information as previously reported since January 1, 2018 has been re-translated using the procedures outlined below:

•the consolidated statements of financial position have been translated at the foreign exchange rate at the balance sheet dates;

•the consolidated statements of loss, consolidated statements of comprehensive loss and consolidated statements of cash flows were translated at average exchange rates for the respective periods;

•historic equity transactions were translated at the foreign exchange rate on the date of the transactions and were subsequently carried at historical value;

•foreign exchange differences arising on translation to presentation currency are recognized in other comprehensive income; and

•all foreign exchange rates used were extracted from the Group’s underlying financial records.

Since it is impracticable to reproduce the financial records before January 1, 2018, the Company applied the change in presentation currency prospectively from January 1, 2018. The net losses arising from the Group's entities whose functional currency was not USD prior to January 1, 2018 were translated into USD at the relevant average rates of exchange for each year. Differences arising from the retranslation of the net assets are recognized in other comprehensive income.

In addition to the comparative information in respect of the previous period provided in the consolidated financial statements, the Group presents an additional consolidated balance sheet as at January 1, 2022, due to the change of presentation currency, in accordance with IAS 1, Presentation of Financial Statements.

2.3 New and amended standards and interpretations not yet adopted by the Group

The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective in the consolidated financial statements.


Standard	Key requirements	Effective for annual periods beginning on or after
Amendments to IAS 1	Classification of Liabilities as Current or Non-current	January 1, 2024
Amendments to IAS 1	Non-current Liabilities with Covenants	January 1, 2024
Amendments to IFRS 16	Lease Liability in a Sale and Leaseback	January 1, 2024
Amendments to IAS 7 and IFRS 7	Supplier Finance Arrangements	January 1, 2024
Amendments to IAS 21	Lack of Exchangeability	January 1, 2025
Amendments to IFRS 10 and IAS 28	Sale or Contribution of Assets Between an Investor and its Associate or Joint Venture	To be determined

The Group expects to adopt these standards, updates and interpretations when they become mandatory. These standards are not expected to have a material impact on disclosures or amounts reported in the Group’s consolidated financial statements in the period of initial application and future reporting periods.

2.4 Principles of consolidation

Subsidiaries

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Intra-group transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group’s accounting policies.

2.5 Foreign currency translation

(a)Functional and presentation currency

The consolidated financial statements of the Group are presented in USD.

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The functional currency of the Company is USD. The subsidiaries have the following functional currencies:


			Functional Currency

Connect HK and Connect US			USD
Connect SZ, Connect SH, Connect BJ, Connect SHZ			RMB
Connect AU			AUD

(b)Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss.

Since the Group has no borrowings, all foreign exchange gains or losses are presented in the consolidated statements of loss on a net basis within other (losses)/gains-net.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the other (losses)/gains and translation differences on non-monetary assets such as equities classified as at fair value through other comprehensive income are recognized in other comprehensive income.

(c)Group companies

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

•assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;

•income and expenses for each statement of loss and comprehensive income/(loss) are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and

•all resulting currency translation differences are recognized in other comprehensive income/loss.

On consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognized in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.

2.6 Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

The Group’s assets under construction represents buildings and equipment under construction and pending installation, and is stated at cost less accumulated impairment losses, if any. Costs include construction and acquisition costs. No provision for depreciation is made on assets under construction until such time as the assets are completed and ready for its intended use. Once the asset becomes available for use, it is transferred to the appropriate category of assets.

Depreciation is calculated using the straight-line method to allocate the cost, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements, the shorter lease term as follows:


Assets						Useful life
Laboratory equipment						5-10 years
Leasehold improvements						Shorter of lease term or 5 years
Office equipment and furniture						3-5 years

The assets’ residual values and useful lives are reviewed and adjusted if appropriate at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.7).

Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognized within other gains/(losses)—net in the statements of loss.

2.7 Impairment of non-financial assets

Non-financial assets other than goodwill and intangible assets that have an indefinite useful life are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

2.8 Investments and other financial assets

(a)Classification

The Group classifies its financial assets in the following measurement categories:

•those to be measured subsequently at fair value (either through other comprehensive income (“OCI”) or through profit or loss), and

•those to be measured at amortized cost.

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through OCI (“FVOCI”).

The Group reclassifies debt investments when and only when its business model for managing those assets changes.

(b)Recognition and derecognition

Regular way purchases and sales of financial assets are recognized on trade date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

(c)Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (“FVTPL”), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial asset carried at FVTPL are expensed in profit or loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

(i)Debt instruments

Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments:

•Amortized cost: Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in other gains/(losses), together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the statements of loss.

•FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss and recognized in other gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/(losses) and impairment expenses are presented as a separate line item in the statements of loss.

•FVTPL: Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognized in profit or loss and presented net within other gains/(losses) in the period in which it arises.

(ii)Equity instruments

The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognized in profit or loss as other income when the Group’s right to receive payments is established.

Changes in the fair value of financial assets at FVTPL are recognized in other gains/(losses) in the statements of loss as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value.

There were no equity investments during the reporting periods.

(d)Impairment

The Group assesses on a forward-looking basis the expected credit loss associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk refer to Note 3.1(b) for further details.

2.9 Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

2.10 Share-based compensation

The Group operates an equity-settled share-based compensation plan, under which the Group receives services from employees, directors and consultants. The consultants’ work for the Group is under the Group’s direction in the same way as employees and the services rendered by the consultants are similar to those rendered by the Group’s employees.

The fair value of options granted under the share incentive plans is recognized as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted:

•including any market performance conditions (e.g. the entity’s share price);

•excluding the impact of any service and non-market performance vesting conditions (e.g. profitability, sales growth targets and remaining an employee of the entity over a specified time period); and

•including the impact of any non-vesting conditions (e.g. the requirement for employees to save or hold shares for a specific period of time).

The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the Group revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. The Group recognizes the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

2.11 Revenue from contracts with customers

(a)Revenue recognition

The Group may enter into collaboration and licensing arrangements for research and development, manufacturing, and commercialization activities with counterparties for the development and commercialization of its product candidates. These arrangements may contain multiple components, such as (i) licenses and (ii) research and development activities. Payments pursuant to these arrangements may include non-refundable payments, payments upon the achievement of significant regulatory, development and commercial milestones, sales of product at certain agreed-upon amounts, and royalties on product sales.

The Group applies IFRS 15, Revenue from Contracts with Customers, to revenue transactions within its scope. Pursuant to IFRS 15, the Group recognizes revenue when a customer, or licensee, obtains control of promised goods or services. The Group records the amount of revenue that reflects the consideration that it expects to receive in exchange for those goods or services. The Group applies the following five-steps in order to determine this amount: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Group satisfies each performance obligation.

The Group applies the five-steps to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services that it transfers to the customer. Once a contract is determined to be within the scope of IFRS 15 at contract inception, the Group reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. The Group recognizes as revenue the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied.

(b)Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Group transfers goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional, and evaluated for impairment at each reporting period.

(c)Contract liabilities

A contract liability is recognized when a payment is received from a customer before the Group transfers the related goods or services. Contract liabilities are recognized as revenue when the Group completes its performance obligations under the contract.

2.12 Research and development expenses

The Group incurs costs and efforts on research and development activities. Research expenditures are recorded as an expense in the period the expenditure is incurred. Elements of research and development expenses primarily include (1) expenses related to preclinical testing of the Group’s technologies under development and clinical trials such as payments to Contract Research Organizations ("CRO") investigators and clinical trial sites that conduct the clinical studies; (2) consultant service related to the design of clinical trials and data analysis, (3) payroll and other related expenses of personnel engaged in research and development activities, (4) manufacturing expenses for payments to Contract Manufacturing Organizations ("CMO") to manufacture the product candidates, including raw materials, supplies, drug substance and drug product expenses, and (5) other research and development expenses.

The Group estimates preclinical research, clinical study and manufacturing expenses based on the services performed, pursuant to contracts with vendors that conduct and manage such services on its behalf. The Group estimates these expenses based on discussions with internal management personnel and external service providers as to the progress or stage of completion of services and the contracted fees to be paid for such services. If the actual timing of the performance of services or the level of effort varies from the original estimates, the Group will adjust the accrual accordingly. Payments made in advance for the related services are recorded as prepayments in the consolidated balance sheets until the services are rendered.

Development costs are recognized as assets if they can be directly attributable to a newly developed service or product and all the following criteria are met or exist:

•the technical feasibility to complete the development project so that it will be available for use or sale;

•the intention to complete the development project to use or sell the product;

•the ability to use or sell the product;

•the manner in which the development project will generate probable future economic benefits for the Group;

•the availability of adequate technical, financial and other resources to complete the development project and use or sell the product; and

•the expenditure attributable to the asset during its development can be reliably measured.

Research and development expenses are charged to expense as incurred for all periods presented because they have not met all of the criteria stated above.

2.13 Interest income

Interest income from financial assets at FVTPL is included in the investment income or losses under gains/(losses) on these assets, see Note 9. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit-impaired. For credit-impaired financial assets, the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance).

2.14 Government grants

Grants from the government are recognized at their fair value when there is a reasonable assurance that the grant will be received and the Group is expected to comply with all required conditions. Government grants received in advance of costs

being incurred are deferred until the associated costs are recognized. Grants that compensate the Group for the cost of an asset initially are presented as deferred income and are recognized as income in consolidated statements of loss on a straight-line basis over the useful life of the associated asset.

Summary of Other Potentially Material Accounting Policies

This note provides a list of other potentially material accounting policies adopted in the presentation of these consolidated financial statements to the extent they have not already been disclosed in the other notes above. These policies have been consistently applied to all the years presented, unless otherwise stated.

31.1 Separate financial statements

Investments in subsidiaries are accounted for at cost less impairment. Cost includes direct attributable costs of investment. The results of subsidiaries are accounted for by the Company on the basis of dividends received and receivable.

Impairment testing of the investments in subsidiaries is required upon receiving a dividend from these investments if the dividend exceeds the total comprehensive income of the subsidiary in the period the dividend is declared or if the carrying amount of the investment in the separate financial statements exceeds the carrying amount in the consolidated financial statements of the investee’s net assets.

31.2 Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Where any Group company purchases the Company’s equity instruments, for example as the result of a share buy-back or a share-based payment plan, the consideration paid, including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the owners of the Group as treasury shares until the shares are cancelled or reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the owners of the Group.

Shares previously held by Connect Union, which was established for the purpose of holding shares for the share incentive plans, are disclosed as treasury shares.

31.3 Current and deferred income tax

The income tax expense or credit for the period is the tax payable on the taxable income of current period based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

(a)Current income tax

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

(b)Deferred income tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax liabilities and assets are not recognized for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.

Investment allowances and similar tax incentives

Companies within the Group may be entitled to claim special tax deductions for investments in qualifying assets or in relation to qualifying expenditure (e.g., the research and development tax incentive or other investment allowances). The Group accounts for such allowances as tax credits, which means that the allowance reduces income tax payable and current tax expense. Tax credits that are unused are recognized as deferred tax assets to the extent that it is probable that future taxable profit will be available against which the unused tax credit can be utilized.

31.4 Employee benefits

(a)Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in other payables and accruals in the balance sheet.

(b)Defined contribution plans

For defined contribution plans, including those under Section 401(k) of the U.S. Internal Revenue Code, the Group pays contributions to publicly administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are

recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.

The subsidiaries of the Group incorporated in the PRC contribute based on a certain percentage of the salaries of their employees to a defined contribution retirement benefit plan organized by relevant government authorities in the PRC on a monthly basis. The government authorities undertake to assume the retirement benefit obligations payable to all existing and further retired employees under these plans and the Group has no further obligation for post-retirement benefits beyond the contributions made. Contributions to these plans are expensed as incurred. Assets of the plans are held and managed by government authorities and are separate from those of the Group.

(c)Housing funds and medical insurance

The PRC employees of the Group are entitled to participate in various government-supervised housing funds and medical insurance. The Group contributes on a monthly basis to these funds based on a certain percentage of the salaries of the employees, subject to certain ceilings. The Group’s liability in respect of these funds is limited to the contribution payable in each period and recognized as employee benefit expense when they are due.

31.5 Right-of-use Assets and Leases

Right-of-use assets comprise of land use rights and office leases.

All land in the PRC is owned by the mainland PRC government. The PRC government may sell land use rights for a specified period of time. The purchase price of land use rights represents lease prepayments to the PRC government and is recorded as right-of-use assets on the balance sheet. The right-of-use assets are amortized over the remaining lease term. In 2021, the Group acquired a land use right in Taicang, Suzhou, China from the PRC government. Subsequently in 2023, the Group terminated its construction project and sold the land use rights back to the PRC government.

The Group leases offices and the rental contracts are typically made for fixed periods of approximately 2 to 4 years. Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of real estate for which the Group is a lessee, it has elected not to separate lease and non-lease components and instead accounts for these as a single lease component.

Lease terms are negotiated on an individual basis. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

•fixed payments (including in-substance fixed payments), less any lease incentives receivable;

•variable lease payment that are based on an index or a rate, initially measured using the index or rate as of the commencement date;

•amounts expected to be payable by the Group under residual value guarantees;

•the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and

•payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Right-of-use assets are measured at cost comprising the following:

•the amount of the initial measurement of lease liability;

•any lease payments made at or before the commencement date less any lease incentives received;

•any initial direct costs; and

•restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.

Payments associated with short-term leases and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less without a purchase option.

31.6 Segment information

Identification of segments is based on internal reporting to the chief operating decision maker (“CODM”). The CODM for the Group are the Co-Founders of the Group. The Group does not divide its operations into different segments and the CODM operates and manages the Group’s entire operations as one segment, which is consistent with the Group’s internal organization and reporting system. The Group does not have any revenue and substantially all non-current assets outside of the country of domicile are located in the PRC.

31.7 Net loss per share

(a)Basic net loss per share

Basic loss per share is calculated by dividing:

•the loss attributable to owners of the Group, excluding any costs of servicing equity other than ordinary shares;

•by the weighted average number of ordinary shares outstanding during the financial year and excluding treasury shares

(b)Diluted net loss per share

Diluted loss per share adjusts the figures used in the determination of basic loss per share to take into account:

•the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and

•the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

Share-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands			1 Months Ended	12 Months Ended
	May 01, 2022 purchasePeriod	Dec. 01, 2020 USD ($) shares	Mar. 31, 2021 shares	Dec. 31, 2023 USD ($) shares $ / shares	Dec. 31, 2022 USD ($) shares $ / shares	Dec. 31, 2021 USD ($) shares	Nov. 01, 2023 shares	May 01, 2023 shares	Nov. 01, 2022 shares	Mar. 18, 2021 shares	Dec. 31, 2018 shares
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Period of grant of share-based payment arrangement (in years)				10 years
Vesting period (in years)				4 years
Vesting rights (in percent)				25.00%
Equal monthly installments (in months)				36 months
Share based compensation arrangement issuable upon the exercise of incentive share options				60,000,000
Number of options granted (in shares)				2,324,087	2,986,547	2,403,660
Share-based compensation expenses \| $				$ 3,259	$ 6,907	$ 8,986
Option life (in years)				8 years 2 months 12 days	8 years 8 months 12 days	9 years 2 months 12 days
Number of preferred shares				43,058,000			29,895	30,312	25,468
Share-based compensation expenses \| $				$ 3,259	$ 6,907	$ 8,986
Ordinary Shares
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of shares issued at consolidation						121,080
Series C Preferred Shares
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of preferred shares				21,350,000
Other Payables and Accruals
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Amounts withheld from employees paychecks \| $				$ 14
Financial instruments with preferred rights \| Preference Shares
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of preferred shares										24,791,804
Number of shares issued at consolidation				46,232
Preferred shares conversion ratio			1
2021 Stock Incentive Plan
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Period of grant of share-based payment arrangement (in years)				10 years
Vesting period (in years)				4 years
Vesting rights (in percent)				25.00%
Equal monthly installments (in months)				36 months
Number of shares potentially issuable (in shares)				6,000,000
Increase in percentage of shares equal to lesser of aggregate number of ordinary shares (in percent)				5.00%	2.50%
Number of options granted (in shares)				2,324,087	2,986,547	1,506,000
Ordinary shares reserved				5,278,658
ESPP
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Shares equal to lesser of aggregate number of ordinary shares (in percent)				5.00%
Grant date share price (in dollars per share) \| $ / shares				$ 1.05
2019 Stock Incentive Plan
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options granted (in shares)						897,660
2021 Employee Share Purchase Plan
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of shares potentially issuable (in shares)				600,000
Shares equal to lesser of aggregate number of ordinary shares (in percent)				1.00%
Percentage of increase decrease in payroll deductions of employees compensation	15.00%
Offering period term (in months)	24 months
Number of purchase periods \| purchasePeriod	4
Purchase period term (in months)	6 months
Percentage of purchase of ordinary shares	85.00%
Shares purchased at discounted price \| $ / shares				$ 0.73	$ 0.74
Share-based compensation expenses \| $				$ 14	$ 39
Purchase of employees shares				60,207	25,468
Co-Founders
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Grant date share price (in dollars per share) \| $ / shares				$ 0.9
Fair value of share based payment on grant date at consolidation \| $ / shares				$ 1.57
Risk-free interest rate (in percent)				2.50%
Expected volatility (in percent)				60.00%
Co-Founders \| Ordinary Shares
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of preferred shares			403,606			210,682
Co-Founders \| Series C Preferred Shares
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of preferred shares			80,457
Number of shares issued at consolidation			46,232
Co-Founders \| Series B Financing \| Ordinary Shares
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of preferred shares											702,278
Share Purchase Agreement
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based compensation expenses \| $						$ 3,100
Share Purchase Agreement \| Series C Preferred Shares
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of preferred shares		3,162,894
Cash consideration \| $		$ 20,000

Income Taxes - Reconciliation (Details)
$ in Thousands

12 Months Ended

14 Months Ended

22 Months Ended

Dec. 31, 2023

USD ($)

Dec. 31, 2023

CNY (¥)

Dec. 31, 2022

USD ($)

Dec. 31, 2022

CNY (¥)

Dec. 31, 2021

USD ($)

Dec. 31, 2021

CNY (¥)

Dec. 31, 2023

Oct. 31, 2022

Major components of tax expense (income) [abstract]

Loss from operations in the PRC

$ (27,321)

$ (41,445)

$ (35,420)

Loss from overseas entities

(32,062)

(76,348)

(166,580)

Loss before income tax

(59,383)

(117,793)

^[1]

(202,000)

^[1]

Tax expense at PRC enterprise income tax rate of 25%

(14,846)

(28,538)

(50,714)

Expenses not deductible for income tax purpose

354

2,563

2,124

Super deduction of research and development expenses

(5,945)

(6,171)

(5,521)

Tax losses and deductible temporary differences for which no deferred income tax assets were recognized

22,827

24,747

17,738

Effect of income tax in jurisdictions other than the PRC

(2,270)

7,697

36,639

Major components of tax expense (income) [abstract]

$ 120

$ 298

^[1]

$ 266

^[1]

PRC

Tax expense at PRC enterprise income tax rate of 25% | ¥

¥ 0

Income tax expense | ¥

¥ 0

Percentage of tax-deductible research and development expenses

200.00%

175.00%

[1]

Cash Flow Information - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure Of Cash Flow Information [Abstract]
Interest received	$ 3,204	$ 419	$ 97
Income taxes paid	$ 120	$ 462	$ 0

Net Loss Per Share - Schedule of Basic and Diluted Net Losses Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Earnings per share [abstract]

Net loss attributable to owners of the Company

$ (59,503)

$ (118,091)

^[1]

$ (202,266)

^[1]

Weighted average number of ordinary shares outstanding

55,067

55,044

52,177

Basic and diluted net loss per share (USD)

$ (1.08)

$ (2.15)

^[1]

$ (3.88)

^[1]

[1]

Right-of-Use Assets and Leases - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Presentation of leases for lessee [abstract]
Cash outflow for leases	$ 0.3	$ 0.2	$ 0.1

Share-Based Compensation - Summary of Share-Based Compensation Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based compensation expenses	$ 3,259	$ 6,907	$ 8,986
Research and development expenses (Note 7)
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based compensation expenses	1,437	3,073	4,120
Administrative expenses (Note 6), Note 7)
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based compensation expenses	$ 1,822	$ 3,834	$ 4,866

Other (Losses)/Gains—net

12 Months Ended

Dec. 31, 2023

Other Income (Losses) Net [Abstract]

Other (Losses)/Gains—net


	Year Ended December 31,
(In thousands)	2021		2022		2023

Net foreign exchange (losses)/gains	$	(516)	$	1,469	$	367
Investment income from investments at fair value through profit and lossi	—		248		2,503
Investment income from wealth management products	68		22		5
Other (losses)/gainsii	(1,099)		150		(101)
	$	(1,547)	$	1,889	$	2,774

(i)Investment income from investments at fair value through profit and loss represent investment gains from money market investments included in cash equivalents (see Notes 3.3 and 18(b)).

Financial Assets at Fair Value - Schedule of Financial Assets at Fair Value Through Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure Of Financial Instruments [Line Items]
Non-current assets	$ 9,440	$ 0
Current assets	73,407	12,646
Interest income recognized in profit and loss related to debt investments	2,030	1,352
(Losses)/gains recognized in other comprehensive income related to debt investments	354	(365)
U.S. Treasury bills
Disclosure Of Financial Instruments [Line Items]
Non-current assets	1,686	0
Current assets	38,983	1,750
Government agency bond
Disclosure Of Financial Instruments [Line Items]
Current assets	1,201	3,953
Listed bonds
Disclosure Of Financial Instruments [Line Items]
Non-current assets	7,754	0
Current assets	7,571	0
Unlisted debt securities
Disclosure Of Financial Instruments [Line Items]
Current assets	$ 25,652	$ 6,943

Financial Instruments by Category

12 Months Ended

Dec. 31, 2023

Disclosure of detailed information about financial instruments [abstract]

Financial Instruments by Category


Financial assets	Financial assets at FVOCI		Financial assets at amortized cost		Financial assets at FVTPL		Total financial assets

As of December 31, 2022
(In thousands)
Other receivables	$	—	$	283	$	—	$	283
Financial assets at fair value through other comprehensive income	82,847		—		—		82,847
Cash and cash equivalents	—		60,642		18,368		79,010
	$	82,847	$	60,925	$	18,368	$	162,140


Financial assets	Financial assets at FVOCI		Financial assets at amortized cost		Financial assets at FVTPL		Total financial assets

As of December 31, 2023
(In thousands)
Other receivables	$	—	$	229	$	—	$	229
Financial assets at fair value through other comprehensive income	12,646		—		—		12,646
Cash and cash equivalents	—		27,690		78,317		106,007
	$	12,646	$	27,919	$	78,317	$	118,882


Financial Liabilities	Financial liabilities at amortized cost

As of December 31, 2022
(In thousands)
Other payables	$	1,353
Trade payables	11,937
Lease liabilities	431
	$	13,721


Financial Liabilities	Financial liabilities at amortized cost

As of December 31, 2023
(In thousands)

Other payables	$	1,083
Trade payables	7,660
Lease liabilities	465
	$	9,208

Other Receivables and Prepayments (Tables)

12 Months Ended

Dec. 31, 2023

Other Receivables And Prepayments [Abstract]

Schedule of Other Receivables and Prepayments


	As of December 31,
(In thousands)	2022		2023

Prepayment for clinical trials and drug manufacturing services	$	2,710	$	1,732
Prepaid expenses	369		357
Deposits	51		51
Others	232		178
	$	3,362	$	2,318

General Information, Reorganization and Basis of Presentation - Summary of Direct or Indirect Interests in Principal Subsidiaries (Details)	12 Months Ended
	Dec. 31, 2023
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items]
Date of incorporation	Nov. 23, 2015
Connect Biopharma HongKong Limited (“Connect HK”)
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items]
Principal activities	Investment holding
Place of incorporation	Hong Kong
Date of incorporation	Dec. 01, 2015
Attributable equity interest to the Group	100.00%
Connect Biopharm LLC (“Connect US”)
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items]
Principal activities	Pharmaceutical R&D
Place of incorporation	San Diego, United States of America
Date of incorporation	Jan. 24, 2012
Attributable equity interest to the Group	100.00%
Connect Biopharma Australia PTY LTD (“Connect AU”)
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items]
Principal activities	Pharmaceutical R&D
Place of incorporation	Prahran, Australia
Date of incorporation	Jul. 18, 2014
Attributable equity interest to the Group	100.00%
Suzhou Connect Biopharma Co., Ltd. (“Connect SZ”)
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items]
Principal activities	Pharmaceutical R&D
Place of incorporation	Suzhou, PRC
Date of incorporation	May 02, 2012
Attributable equity interest to the Group	100.00%
Connect Biopharma (Shanghai) Co., Ltd ("Connect SH")
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items]
Principal activities	Pharmaceutical R&D
Place of incorporation	Shanghai, PRC
Date of incorporation	Oct. 23, 2015
Attributable equity interest to the Group	100.00%
Connect Biopharma (Beijing) Co., Ltd ("Connect BJ")
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items]
Principal activities	Pharmaceutical R&D
Place of incorporation	Beijing, PRC
Date of incorporation	Jul. 09, 2019
Attributable equity interest to the Group	100.00%
Connect Biopharma (Shenzhen) Co., Ltd ("Connect SHZ")
Disclosure Of General Information Reorganization And Basis Of Presentation [Line Items]
Principal activities	Pharmaceutical R&D
Place of incorporation	Shenzhen, PRC
Date of incorporation	Nov. 15, 2021
Attributable equity interest to the Group	100.00%

Other Payables and Accruals - Schedule of Other Payables and Accruals (Details) - USD ($)
$ in Thousands

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

^[1]

Other Payables and Accruals [Abstract]

Construction payables

$ 4

$ 201

Payroll, welfare and bonus payables

1,916

2,148

Accrued professional service fee

645

816

Others

434

336

Other payables and accruals

$ 2,999

$ 3,501

^[1]

$ 5,151

[1]

(i) The Group elected to change its presentation currency from RMB to USD with effect from January 1, 2023 as described in Note 2 to these consolidated financial statements. The consolidated balance sheets as of January 1, 2022 and December 31, 2022 have been re-presented to reflect the Group's change in presentation currency.

Other Income - Summary of Other Income (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other Income (Expense) [Abstract]
Government grants	$ 1,580	$ 929	$ 2,950

Revenue Recognition	12 Months Ended
Revenue Recognition	Dec. 31, 2023
Revenue [abstract]
Revenue Recognition	Revenue Recognition On November 21, 2023 (the “Effective Date”), the Group announced that two of its wholly owned subsidiaries, Connect HK and Connect SZ (together as the “Licensor”), entered into an exclusive license and collaboration agreement (the “License Agreement”) with Simcere Pharmaceutical Co., Ltd. (the “Licensee” or “Simcere”), a subsidiary of Simcere Pharmaceutical Group Ltd. to develop and commercialize Connect Biopharma’s rademikibart in Greater China. The Licensee has been granted exclusive rights to develop, manufacture and commercialize rademikibart for all indications in Greater China, including mainland China, Hong Kong, Macau, and Taiwan (the “Territory”), while the Licensor retains rights in all other markets. Under the License Agreement, Licensor will complete all of rademikibart’s ongoing clinical trials and related analysis in the Territory in atopic dermatitis (“AD”), while the Licensee will be responsible for rademikibart’s new drug application for AD in China and will also conduct and be responsible for the costs of all future clinical studies in all additional disease indications for rademikibart in Greater China. The License Agreement includes upfront license fees, reimbursement of research and development costs and contingent consideration payments based on the achievement of collaboration objectives and milestones. According to the terms of the License Agreement, the Licensor will receive a 150 million RMB (approximately USD 21 million) upfront payment, up to 875 million RMB (approximately USD 123 million) upon achieving certain development and commercial milestones, in addition to royalties up to low double-digit percentages of net sales. Additionally, under the terms of the License Agreement, the Licensor will receive 30 million RMB (approximately USD 4 million) of cost reimbursements for the development activities for the ongoing AD clinical trials. As of December 31, 2023, 100 million RMB, less VAT of 5.6 million RMB (approximately USD 13.3 million) of the upfront payment has been received, while the remainder of 50 million RMB, less VAT of 2.8 million RMB (approximately USD 6.7 million) has been received in the first quarter of 2024. Simcere License Agreement The Group concluded that the License Agreement is in the scope of IFRS 15. Under IFRS 15, the Group evaluated whether the goods or services promised to the Licensee in the License Agreement represent separate or combined performance obligations. The Group determines goods or service promised under a contract as material performance obligations under the contract only if such good or service is distinct; or series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer (i.e. each distinct good or service in the series is satisfied over time and the same method is used to measure progress). The Group has determined that the following goods or services within the License-out Agreement represent separate material performance obligations: 1.the grant of license to the intellectual property ("IP") 2.the performance of development services to continue and complete the ongoing trials Contract Term The term of the License Agreement is coterminous with the period up to which sales-based royalty payments shall be made, which is approximately 12 years after commercialization of the licensed compound. After this period, the license is considered fully paid and Simcere can continue to exploit the rights in the license in the Territory. Transaction Price At the Effective Date, the Group determined the transaction price to be 180 million RMB (approximately USD 25 million), which is comprised of (i) a 150 million RMB (approximately USD 21 million) upfront payment for the grant of license to the Licensee and (ii) 30 million RMB (approximately USD 4 million) of cost reimbursement upon delivery of certain clinical trial reports. The Group considers future development and regulatory milestone payments under the arrangement, to the extent that the inclusion of such variable consideration could result in a significant reversal of cumulative revenue in future periods, to be constrained at the Effective Date and as of December 31, 2023 because these milestones are not within the control of the Group. Sales-based milestone payments and royalties are payable when annual sales of a covered product reach specified levels and sales occur. When an intellectual property license is determined to be a predominant promise in the arrangement, sales-based milestone payments and royalties are recognized at the later of when the associated performance obligation has been satisfied or when the sales occur. Allocation of the Transaction Price The transaction price is generally allocated to the identified performance obligations based on the relative standalone selling price (“SSP”) of each distinct performance obligation. However the Group has allocated certain regulatory and development milestone payments only to certain specific performance obligation(s) where the terms of such payments relate specifically to the Group’s efforts to satisfy the respective performance obligation, and provided that such allocation is consistent with the objective that transaction price is allocated to each performance obligation in order to reflect the consideration to which the Group expects to be entitled to receive in exchange for satisfying those performance obligations. Recognition The Group utilizes judgment to assess when control of the goods and services transfers to the licensee, to determine whether the performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue. When recognizing revenue over time, the Group evaluates the measure of progress each reporting period and, if necessary, adjusts the progress of performance and related revenue recognition. The Group expects to recognize the transaction price of 180 million RMB (approximately USD 25 million), at a point in time or over the expected performance period of each respective performance obligation described above. No revenue was recognized during the year ended December 31, 2023. The Group expects to commence recognition of revenue from this License Agreement starting when the Company substantially completes the transfer of the IP and know-how to Simcere. Contract Assets As of December 31, 2023, there were no contract assets under the License-out Agreement. Contract Liabilities As of December 31, 2023, the Group had a contract liability for the upfront fee received of 100 million RMB, less VAT of 5.6 million RMB (approximately USD 13.3 million).

Expenses by Nature (Tables)	12 Months Ended
Expenses by Nature (Tables)	Dec. 31, 2023
Expenses by nature [abstract]
Summary of Expenses by Nature	(i) The Group exclusively licenses CBP-174 from a third-party licensor. Such license is worldwide and royalty-bearing. As of December 31, 2023, CBP-174 has not yet been commercialized, and the Company is only subject to a non-refundable, non-creditable license maintenance fee, which is paid to the third-party licensor on an annual basis and recorded as a consultancy fee within research and development expense.

Financial Assets at Fair Value (Tables)

12 Months Ended

Dec. 31, 2023

Categories of financial assets [abstract]

Schedule of Financial Assets at Fair Value Through Comprehensive Income

Financial assets at FVOCI consist of investments in the following:


	December 31,
(In thousands)	2022		2023

Non-current assets
U.S. Treasury bills	$	1,686	$	—
Listed bonds	7,754		—
	9,440		—
Current assets
U.S. Treasury bills	38,983		1,750
Government agency bond	1,201		3,953
Listed bonds	7,571		—
Unlisted debt securitiesi	25,652		6,943
	$	73,407	$	12,646

(i)Unlisted debt securities comprise of investments in commercial paper of financial institutions.


	Year Ended December 31,
	2022		2023

(In thousands)
Interest income recognized in profit and loss related to debt investments	$	1,352	$	2,030
(Losses)/gains recognized in other comprehensive income related to debt investments	$	(365)	$	354

Summary of Changes in Financial Instruments of Short-term and Long-term Investments

The following amounts table presents changes in Level 1 and 2 instruments of short-term and long-term investments for debt investments at FVOCI:


	Year Ended December 31,
(In thousands)	2022		2023

Financial assets at fair value through other comprehensive income
Opening balance	$	—	$	82,847
Additions	109,608		31,028
Settlements (including coupon interest received)	(27,748)		(103,613)
Accrued interest	482		327
Discount accreted	870		1,703
Change in fair value debited to other comprehensive incomei	(365)		354
Exchange difference			—
Closing balance	$	82,847	$	12,646

(i). Includes unrealized gains / (losses) recognized in other comprehensive income attributable to balances held at the end of the reporting period.

Summary of Financial Assets at Fair Value Through Profit or Loss

The following table presents the changes in Level 3 instruments of short-term investments in wealth management products:


	Year Ended December 31,
(In thousands)		2022		2023

Financial assets at fair value through profit or loss
Opening balance		$	—	$	—
Additions		6,456		1,573
Settlements		(6,478)		(1,578)
Fair value gains recognized in profit or loss (Note 9)		22		5
Closing balance		$	—	$	—

The following table presents the changes in Level 1 instruments of money market funds included in cash equivalents for the year ended December 31, 2023.


	Year Ended December 31,
(In thousands)	2022		2023

Financial assets at fair value through profit or loss
Opening balance	$	—	$	18,368
Additions	97,526		103,613
Settlements (including coupon interest received, net of fees)	(79,406)		(46,167)
Investment income credited to profit or loss	248		2,503

Closing balance	$	18,368	$	78,317

Restricted Net Assets and Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Details) - USD ($)
$ in Thousands

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Non-current assets

Financial assets at fair value through other comprehensive income

$ 73,407

$ 12,646

Total non-current assets

4,921

18,234

^[1]

$ 15,925

^[1]

Current assets

Financial assets at fair value through other comprehensive income

106,007

79,010

^[1],[2]

267,716

^[1],[2]

$ 154,803

^[2]

9,440

Other receivables

178

232

Total current assets

120,971

155,779

^[1]

275,128

^[1]

Total assets

125,892

174,013

^[1]

291,053

^[1]

Non-current liabilities

Deferred income

405

652

^[1]

784

^[1]

Total non-current liabilities

585

897

^[1]

810

^[1]

Current liabilities

Trade payables

7,660

11,937

^[1]

12,735

^[1]

Other payables and accruals

2,999

3,501

^[1]

5,151

^[1]

Total current liabilities

24,264

15,624

^[1]

17,985

^[1]

Total liabilities

24,849

16,521

^[1]

18,795

^[1]

Net assets

101,043

157,492

^[1]

272,258

^[1]

SHAREHOLDERS’ EQUITY

Share capital

^[1]

Share premium

628,707

628,661

^[1]

628,643

^[1]

Treasury shares

(180)

^[1]

(180)

^[1]

Share-based compensation reserves

19,731

16,473

^[1]

9,566

^[1]

Other reserves

(7,878)

(7,628)

^[1]

(4,028)

^[1]

Accumulated losses

(539,347)

(479,844)

^[1]

(361,753)

^[1]

Parent

Non-current assets

Interest in a subsidiary

330,947

287,878

Financial assets at fair value through other comprehensive income

9,440

Total non-current assets

330,947

297,318

Current assets

Financial assets at fair value through other comprehensive income

79,597

47,972

$ 229,722

$ 135,728

12,646

73,407

Other receivables

12,997

12,951

Other current assets

356

369

Total current assets

105,596

134,699

Total assets

436,543

432,017

Non-current liabilities

Deferred income

250

Total non-current liabilities

250

Current liabilities

Trade payables

Other payables and accruals

8,453

7,330

Total current liabilities

8,453

7,330

Total liabilities

8,703

7,330

Net assets

427,840

424,687

SHAREHOLDERS’ EQUITY

Share capital

Share premium

628,707

628,661

Treasury shares

(180)

Share-based compensation reserves

19,731

16,473

Other reserves

(3,917)

(4,271)

Accumulated losses

(216,511)

(216,006)

Total shareholders’ equity

$ 427,840

$ 424,687

[1]	(i) The Group elected to change its presentation currency from RMB to USD with effect from January 1, 2023 as described in Note 2 to these consolidated financial statements. The consolidated balance sheets as of January 1, 2022 and December 31, 2022 have been re-presented to reflect the Group's change in presentation currency.
[2]	(i) The Group elected to change its presentation currency from RMB to USD with effect from January 1, 2023 as described in Note 2 to these consolidated financial statements. The consolidated statements of cash flows for the years ended December 31, 2021 and 2022 have been re-presented to reflect the Group's change in presentation currency.

Summary of Material Accounting Policies - Additional Information (Details)

1 Months Ended

12 Months Ended

Mar. 31, 2021

USD ($)

Dec. 31, 2023

USD ($)

Segment

Dec. 31, 2022

USD ($)

Dec. 31, 2021

USD ($)

Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]

Accumulated losses

$ 539,300,000

Profit (loss) from operating activities

(62,074,000)

$ (119,316,000)

^[1]

$ (98,107,000)

^[1]

Net cash from/(used in) operating activities

(47,930,000)

(101,520,000)

^[2]

(84,324,000)

^[2]

Cumulative cash contributions

440,100,000

Proceeds from issuance of ordinary shares

$ 219,900,000

44,000

18,000

^[2]

219,985,000

^[2]

Assets (liabilities)

101,043,000

157,492,000

^[3]

272,258,000

^[3]

Cash, cash equivalents, and short-term investments

118,700,000

Equity investment

$ 0

Number of segments | Segment

Top of range

Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]

Offices and rental contract lease term

4 years

Bottom of range

Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]

Offices and rental contract lease term

2 years

[1]	(i) The Group elected to change its presentation currency from RMB to USD with effect from January 1, 2023 as described in Note 2 to these consolidated financial statements. The consolidated statements of loss for the years ended December 31, 2021 and 2022 have been re-presented to reflect the Group's change in presentation currency.
[2]	(i) The Group elected to change its presentation currency from RMB to USD with effect from January 1, 2023 as described in Note 2 to these consolidated financial statements. The consolidated statements of cash flows for the years ended December 31, 2021 and 2022 have been re-presented to reflect the Group's change in presentation currency.
[3]	(i) The Group elected to change its presentation currency from RMB to USD with effect from January 1, 2023 as described in Note 2 to these consolidated financial statements. The consolidated balance sheets as of January 1, 2022 and December 31, 2022 have been re-presented to reflect the Group's change in presentation currency.

Finance Income—net —net - Summary of Finance (Cost)/Income —net (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Disclosure Of Finance Income Expense [Abstract]

Interest from bank, term, and other deposits

$ 684

$ 192

$ 97

Interest income from investments at fair value through other comprehensive income

2,030

1,352

Finance income

2,714

1,544

^[1]

Interest for lease liabilities

(23)

(21)

(7)

Finance cost

(23)

(21)

^[1]

(7)

^[1]

Finance income—net

$ 2,691

$ 1,523

^[1]

$ 90

^[1]

[1]

Share Capital - Schedule of Share Capital and Share Premium (Details)
$ in Thousands

1 Months Ended

12 Months Ended

May 31, 2022

Mar. 31, 2021

USD ($)

Dec. 31, 2023

USD ($)

Dec. 31, 2022

USD ($)

Dec. 31, 2021

USD ($)

Nov. 01, 2023

May 01, 2023

Nov. 01, 2022

Mar. 31, 2022

Dec. 31, 2018

Dec. 20, 2018

vote

Reconciliation of number of shares outstanding [abstract]

^[3]

$ 157,492

^[1],[2]

$ 272,258

^[2]

$ (157,082)

Conversion from preferred shares to ordinary shares (Note 25)

^[1]

^[3]

200,632

^[3]

^[3]

421,461

Issuance of shares to co-founders

^[3]

Exercise of stock options

^[1]

153

^[3]

Number of ADSs issued | shares

101,043

^[1]

157,492

^[1],[2],[3]

272,258

^[2],[3]

12,937,500

Proceeds from issuance of ordinary shares

$ 219,900

$ 44

^[4]

219,985

^[4]

Issuance costs

$ 19,300

Repurchase of ordinary shares

^[3]

(566)

Number of preferred shares | shares

43,058,000

29,895

30,312

25,468

Issued Capital And Share Premium

Reconciliation of number of shares outstanding [abstract]

$ 628,671

628,653

6,015

Conversion from preferred shares to ordinary shares (Note 25)

200,632

421,461

Issuance of shares to co-founders

218

Exercise of stock options

327

Reconciliation of number of shares outstanding [abstract]

628,717

628,671

628,653

Share Capital

^[3]

^[1]

Conversion from preferred shares to ordinary shares (Note 25)

^[3]

^[3]

Reconciliation of number of shares outstanding [abstract]

^[1]

^[1],[3]

^[3]

Share Premium

^[3]

628,661

^[1]

628,643

6,012

Conversion from preferred shares to ordinary shares (Note 25)

^[1]

^[3]

200,630

^[3]

^[3]

421,456

Issuance of shares to co-founders

^[3]

218

Exercise of stock options

^[1]

327

^[3]