0001835268-24-000023 | 6-K | XBRL Viewer | Connect Biopharma Holdings LTD

Right-of-Use Assets, net and Lease Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Presentation of leases for lessee [abstract]

Schedule of Amounts Recognized in Consolidated Balance Sheets as Right-of-use Assets

Amounts recognized in the interim condensed consolidated balance sheets are as follows:

(i)Right-of-use assets


	Total *
(In thousands)
As of January 1, 2024	$	453
Additions	—
Depreciation	(135)

Exchange difference	(1)
Net book value as of June 30, 2024	$	317

As of June 30, 2024
Cost	$	1,193
Accumulated depreciation	(875)
Exchange difference	(1)
Net book value	$	317

*Right-of-use assets are comprised of the building space used for office rental.

Schedule of Amounts Recognized in Consolidated Balance Sheets as Lease Liability

Amounts recognized as liabilities in the interim condensed consolidated balance sheets were as follows:


	December 31,		June 30,
	2023		2024
(In thousands)
Non-current	$	180	$	73
Current	285		252
	$	465	$	325

Schedule of Amounts Recognized in Consolidated Statements of Loss in Addition to Right-of-use Asset Depreciation

Amounts recognized in the interim condensed consolidated statements of (loss) / income in addition to office rental depreciation were as follows:


	Six Months Ended June 30,
	2023		2024
(In thousands)
Interest expense	$	10	$	10

Share Capital and Premium

6 Months Ended

Jun. 30, 2024

Disclosure of classes of share capital [abstract]

Share Capital and Premium

The authorized share capital of the Company as of June 30, 2024 was US$76,560. As of December 31, 2023 and June 30, 2024, there were 2,405,591 and 2,541,850, respectively, treasury shares of the Company. The number of the Company’s ordinary shares outstanding, net of treasury shares, as of December 31, 2023 and June 30, 2024 was 55,102,954 and 55,254,032, respectively. The movement in the number of ordinary shares outstanding is as follows:


	Number of ordinary shares	Share capital		Share premium		Total
(In thousands, except share data)
Issued, As of January 1, 2024	57,508,545	$	10	$	628,707	$	628,717
Shares issued for employee share purchase plan ("ESPP")	27,337	—		20		20
Shares issued for stock incentive plan reserve (i)	260,000	—		—		—
Exercise of stock options	—	—		144		144
Issued, As of June 30, 2024	57,795,882	$	10	$	628,871	$	628,881
Less: Treasury shares (i)	(2,541,850)
Outstanding ordinary shares	55,254,032

(i)Shares issued for the employee stock option plan are reserved and included in Treasury shares until the stock options are exercised.

Other Gains – Net

6 Months Ended

Jun. 30, 2024

Other Income (Losses) Net [Abstract]

Other Gains – Net


	Six Months Ended June 30,
	2023		2024
(In thousands)
Net foreign exchange gains	$	481	$	162
Investment income from investments at fair value through profit and loss	782		2,058

Other loss	(100)		—
	$	1,163	$	2,220

Cash and Cash Equivalents (Tables)

6 Months Ended

Jun. 30, 2024

Cash and cash equivalents [abstract]

Summary of Cash and Cash Equivalents


	December 31,		June 30,
	2023		2024
(In thousands)
Cash
–US$ deposits	$	10,767	$	12,405
–RMB deposits	15,614		14,804
–Australian Dollar deposits	1,309		3,876
Cash equivalents (Note 3)	78,317		79,089
	$	106,007	$	110,174

Share Capital and Premium - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Disclosure of classes of share capital [abstract]
Value of share capital	$ 76,560
Number of treasury shares	2,541,850	2,405,591
Ordinary shares	55,254,032	55,102,954

Property, Plant and Equipment, net - Summary of Property, Plant and Equipment (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	$ 4,274
Exchange difference	(26)
Additions	291
Transfers	0
Depreciation	(337)
Disposal	0
Closing net book value	4,202
Cost
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	6,678
Closing net book value	6,969
Accumulated depreciation
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	(2,328)
Closing net book value	(2,665)
Exchange difference
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	(76)
Closing net book value	(102)
Laboratory equipment
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	3,987
Exchange difference	(25)
Additions	291
Transfers	0
Depreciation	(245)
Disposal	0
Closing net book value	4,008
Laboratory equipment \| Cost
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	5,576
Closing net book value	5,867
Laboratory equipment \| Accumulated depreciation
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	(1,516)
Closing net book value	(1,761)
Laboratory equipment \| Exchange difference
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	(73)
Closing net book value	(98)
Leasehold improvements
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	227
Exchange difference	(1)
Additions	0
Transfers	0
Depreciation	(60)
Disposal	0
Closing net book value	166
Leasehold improvements \| Cost
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	762
Closing net book value	762
Leasehold improvements \| Accumulated depreciation
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	(532)
Closing net book value	(592)
Leasehold improvements \| Exchange difference
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	(3)
Closing net book value	(4)
Office equipment, furniture and others
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	60
Exchange difference	0
Additions	0
Transfers	0
Depreciation	(32)
Disposal	0
Closing net book value	28
Office equipment, furniture and others \| Cost
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	340
Closing net book value	340
Office equipment, furniture and others \| Accumulated depreciation
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	(280)
Closing net book value	(312)
Office equipment, furniture and others \| Exchange difference
Disclosure Of Property Plant And Equipment [Line Items]
Opening net book value	0
Closing net book value	$ 0

Expenses by Nature

6 Months Ended

Jun. 30, 2024

Expenses by nature [abstract]

Expenses by Nature


	Six Months Ended June 30,
	2023		2024
(In thousands)
Clinical trials related expenses (i)	$	19,947	$	7,087
Employee benefit expenses (i, Note 7)	9,117		8,290
Professional service fees	4,168		4,493

Depreciation and amortization	507		476
Research and development materials and consumable supplies	298		456
Office expenses	399		384
Others	301		412
	$	34,737	$	21,598

(i)The Group incurs costs for fees from third parties and personnel costs in connection with its research and development activities. These costs are recognized within clinical trials related expenses and employee benefit expenses over the period in which services are performed.

Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands	Total	Share capital	Share premium	Treasury shares	Share-based compensation reserves	Other reserves	Accumulated losses
Beginning balance at Dec. 31, 2022	$ 157,492	$ 10	$ 628,661	$ (180)	$ 16,473	$ (7,628)	$ (479,844)
Comprehensive loss
Net (loss) / income	(30,474)						(30,474)
Unrealized gains from fair value change of financial assets at fair value through other comprehensive income	222					222
Exchange differences	(897)					(897)
Total comprehensive (loss) / income	(31,149)	0	0	0	0	(675)	(30,474)
Transactions with owners
Issuance of ordinary shares	22		22
Share-based compensation	2,300				2,300
Increase (decrease) through transactions with owners, equity	2,322	0	22	0	2,300	0	0
Ending balance at Jun. 30, 2023	128,665	10	628,683	(180)	18,773	(8,303)	(510,318)
Beginning balance at Dec. 31, 2023	101,043	10	628,707	(180)	19,731	(7,878)	(539,347)
Comprehensive loss
Net (loss) / income	7,649						7,649
Unrealized gains from fair value change of financial assets at fair value through other comprehensive income	11					11
Exchange differences	(178)					(178)
Total comprehensive (loss) / income	7,482	0	0	0	0	(167)	7,649
Transactions with owners
Issuance of ordinary shares	20		20
Exercise of stock options	95		144		(49)
Share-based compensation	1,839				1,839
Increase (decrease) through transactions with owners, equity	1,954	0	164	0	1,790	0	0
Ending balance at Jun. 30, 2024	$ 110,479	$ 10	$ 628,871	$ (180)	$ 21,521	$ (8,045)	$ (531,698)

Related party transactions - Summary of Key Management Personnel Compensation (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Disclosure Of Transactions Between Related Parties [Line Items]
Wages, salaries and bonuses	$ 1,212	$ 1,541
Share-based compensation expenses	1,155	1,047
Severance costs	808	0
Contributions to defined contribution plan	11	27
Welfare, housing funds and other	58	17
Key management personnel compensation	3,244	$ 2,632
Payroll and welfare payables	1,965		$ 1,916
Accrued wages, salaries and bonuses
Disclosure Of Transactions Between Related Parties [Line Items]
Payroll and welfare payables	400		$ 600
Severance costs
Disclosure Of Transactions Between Related Parties [Line Items]
Payroll and welfare payables	$ 800

Financial Assets at Fair Value Through Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2024

Financial assets at fair value through other comprehensive income [abstract]

Schedule of Financial Assets at Fair Value Through Other Comprehensive Income


	December 31,		June 30,
	2023		2024
(in thousands)




Current assets
U.S. Treasury bills	$	1,750	$	—
U.S. Government agency bonds	3,953		—

Unlisted debt securities	6,943		—
	$	12,646	$	—

Schedule of Debt Investments Recognized in Profit or Loss and Other Comprehensive Income

The following amounts are related to our debt investments at FVOCI:


	Six Months Ended June 30,
	2023		2024
(In thousands)
Interest income recognized in profit and loss related to debt investments	$	1,300	$	100
Gains recognized in other comprehensive income related to debt investments	$	222	$	11

Property, Plant and Equipment, net

6 Months Ended

Jun. 30, 2024

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

Property, Plant and Equipment, net


	Laboratory equipment		Leasehold improvements		Office equipment, furniture and others		Total
(In thousands)
As of January 1, 2024
Cost	$	5,576	$	762	$	340	$	6,678
Accumulated depreciation	(1,516)		(532)		(280)		(2,328)
Exchange difference	(73)		(3)		—		(76)
Net book value	$	3,987	$	227	$	60	$	4,274

Six months ended June 30, 2024
Opening net book value	$	3,987	$	227	$	60	$	4,274
Exchange difference	(25)		(1)		—		(26)
Additions	291		—		—		291
Transfers	—		—		—		—
Depreciation	(245)		(60)		(32)		(337)
Disposal	—		—		—		—
Closing net book value	$	4,008	$	166	$	28	$	4,202

As of June 30, 2024
Cost	$	5,867	$	762	$	340	$	6,969
Accumulated depreciation	(1,761)		(592)		(312)		(2,665)
Exchange difference	(98)		(4)		—		(102)
Net book value	$	4,008	$	166	$	28	$	4,202

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2024
Major components of tax expense (income) [abstract]
Income Taxes	Income Taxes Income tax expense is recognized based on the income tax rates in the following main tax jurisdictions where the Group operated during the six months ended June 30, 2023 and 2024. The Company is incorporated and is exempt from income tax in the Cayman Islands, with subsidiaries formed in the United States, the People's Republic of China ("PRC"), Australia and Hong Kong. For the six months ended June 30, 2024, the Group’s income tax expense of US$0.06 million is due primarily to income tax expense for Connect US. Connect US is treated for income tax purposes as a service provider for Connect HK and earns service fee income on a cost-plus basis. As of June 30, 2024, the Group did not have any significant unrecognized uncertain tax positions.

Cash flow information - Summary of Cash Used in Operations (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Net (loss) / income before income tax	$ 7,709	$ (30,410)
Adjustments for:
Interest expense for lease liabilities	10	10
Investment management fee	44	35
Interest income from investments at fair value through other comprehensive income	(100)	(1,300)
Amortization of intangible assets	4	4
Depreciation of property, plant and equipment	337	366
Depreciation of rights-of-use assets	135	137
Share-based compensation expense	1,839	2,300
Net foreign exchange differences	(61)	(481)
Loss on disposal of land use rights and other	0	100
Changes in working capital
Other receivables and prepayments	348	(321)
Other non-current assets	23	(485)
Contract assets	(3,561)	0
Other payables and accruals	589	(203)
Deferred income	(11)	(490)
Contract liabilities	(13,320)	0
Trade payables	(1,959)	(417)
Net cash used in operating activities	$ (7,974)	$ (31,155)

Fair Value Estimation - Summary of Changes in Financial Instruments of Short-term and Long-term Investments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Financial assets at fair value through other comprehensive income
Opening balance	$ 12,646	$ 82,847
Additions	0	31,028
Settlements (including coupon interest received)	(12,757)	(65,440)
Accrued interest	1	255
Discount Accreted	99	1,045
Change in fair value debited to other comprehensive (loss) / income	11	222
Closing balance	$ 0	$ 49,957

Fair Value Estimation - Summary of Financial Assets at Fair Value Through Profit or Loss, Level 1 (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Financial assets at fair value through profit or loss
Settlements (including coupon interest received)	$ (12,757)	$ (65,440)
Level 1
Financial assets at fair value through profit or loss
Opening balance	78,317	18,368
Additions	12,757	65,440
Settlements (including coupon interest received)	(14,043)	(31,118)
Interest income credited to profit or loss	2,058	782
Closing balance	$ 79,089	$ 53,472

Finance Income – Net (Tables)

6 Months Ended

Jun. 30, 2024

Profit (loss) [abstract]

Summary of Finance Income - Net


	Six Months Ended June 30,
	2023		2024
(In thousands)
Finance income
Interest from bank deposits and term deposits	$	406	$	311
Investment income from investments at fair value through other comprehensive income	1,300		100
	1,706		411
Finance cost
Interest expense for lease liabilities	(10)		(10)
	(10)		(10)
	$	1,696	$	401

Finance Income – Net - Summary of Finance Income - Net (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Profit (loss) [abstract]
Interest from bank deposits and term deposits	$ 311	$ 406
Investment income from investments at fair value through other comprehensive income	100	1,300
Finance income	411	1,706
Interest expense for lease liabilities	(10)	(10)
Finance cost	(10)	(10)
Finance income - net	$ 401	$ 1,696

Other Payables and Accruals (Tables)

6 Months Ended

Jun. 30, 2024

Other Payables and Accruals [Abstract]

Schedule of Other Payables and Accruals


	December 31,		June 30,
	2023		2024
(In thousands)

Accrued professional service fee	$	645	$	1,193
Payroll and welfare payables	1,916		1,965
Others	438		513
	$	2,999	$	3,671

Other Income - Summary of Other Income (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Other Income (Expense) [Abstract]
Government grants and tax incentives	$ 2,570	$ 1,468
Income from government grants	$ 2,500	900
Revenue from government as an incentive for research and development		$ 600

Events After the Reporting Period	6 Months Ended
Events After the Reporting Period	Jun. 30, 2024
Disclosure of non-adjusting events after reporting period [abstract]
Events After the Reporting Period	Events After the Reporting Period Transition agreements In July 2024, through its subsidiary, Connect HK, the Company has entered into an employment transition agreement (the “Wubin Pan Transition Agreement”) with Wubin Pan, Ph.D. Pursuant to the Wubin Pan Transition Agreement, Dr. Wubin Pan has agreed to serve as a non-executive employee in the role of General Manager of Greater China Operations of the Company until the earlier of (i) December 31, 2024, or (ii) the date on which Dr. Wubin Pan’s employment terminates. While Dr. Wubin Pan continues to serve as General Manager of Greater China Operations, he will receive an initial base salary of US$512,000 per year, remain bonus eligible with the same target bonus opportunity as currently in effect, and participate in the Company’s employee benefit plans.

General Information and Basis of Presentation- Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Disclosure Of General Information And Basis Of Presentation [Abstract]
Country of incorporation	Cayman Islands
Address of registered office	P.O. Box 613, Harbour Centre, George Town, Grand Cayman, KY1-1107, Cayman Islands.
Disclosure Of Classes Of Share Capital [Line Items]
Accumulated losses	$ 531,700
Net operating income	7,308	$ (32,106)
Net operating cash outflow	7,974	31,155
net assets	110,479		$ 101,043
Cash and cash equivalents	$ 110,174	$ 81,609	$ 106,007	$ 79,010
Ordinary Shares
Disclosure Of Classes Of Share Capital [Line Items]
Number of shares represented by one depositary share	1
Par value per share (in dollars per share)	$ 0.000174

Other Income (Tables)

6 Months Ended

Jun. 30, 2024

Other Income (Expense) [Abstract]

Summary of Other Income


	Six Months Ended June 30,
	2023		2024
(In thousands)
Government grants and tax incentives (i)	$	1,468	$	2,570
	$	1,468	$	2,570

(i)Government grants are cash incentives received related to specific operating expenses incurred. During the six months ended June 30, 2024, the Group received a research and development tax incentive from the Australian government totaling US$2.5 million. During the six months ended June 30, 2023, the Group received a research and development tax incentive from the Australian government totaling US$0.9 million and a government subsidy from a Chinese local government for research and development spending totaling US$0.6 million.

Critical Accounting Estimates and Judgements	6 Months Ended
Critical Accounting Estimates and Judgements	Jun. 30, 2024
Critical Accounting Estimates And Judgements [Abstract]
Critical Accounting Estimates and Judgements	Critical Accounting Estimates and Judgments The preparation of the interim condensed consolidated financial statements requires the use of accounting estimates which, by definition, may not equal the actual results. Management also needs to exercise judgment in applying the Group’s accounting policies. Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Group and that are believed to be reasonable under the circumstances. In preparing the interim condensed consolidated financial statements, the nature of significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty were consistent with those described in the audited consolidated financial statements for the preceding fiscal years included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023.

Cash flow information

6 Months Ended

Jun. 30, 2024

Disclosure Of Cash Flow Information [Abstract]

Cash flow information

Cash used in operations


		Six Months Ended June 30,
	Notes	2023		2024

(In thousands)
Net (loss) / income before income tax		$	(30,410)	$	7,709
Adjustments for:
Interest expense for lease liabilities	10	10		10
Investment management fee		35		44
Interest income from investments at fair value through other comprehensive income	10	(1,300)		(100)

Amortization of intangible assets		4		4
Depreciation of property, plant and equipment	13	366		337
Depreciation of rights-of-use assets	14	137		135
Share-based compensation expense	19	2,300		1,839
Net foreign exchange differences		(481)		(61)
Loss on disposal of land use rights and other		100		—

Changes in working capital
Other receivables and prepayments		(321)		348
Other non-current assets		(485)		23
Contract assets	5	—		(3,561)
Other payables and accruals		(203)		589
Deferred income		(490)		(11)
Contract liabilities	5	—		(13,320)
Trade payables		(417)		(1,959)
Net cash used in operations		$	(31,155)	$	(7,974)

Supplemental Cash Flow Information:


	Six Months Ended June 30,
	2023		2024
(In thousands)
Interest income received	$	1,179	$	2,348

Other Gains – Net - Schedule of Other Gains – Net (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Other Income (Losses) Net [Abstract]
Net foreign exchange gains	$ 162	$ 481
Investment income from investments at fair value through profit and loss	2,058	782
Other loss	0	(100)
Other Gains – Net	$ 2,220	$ 1,163

Net (Loss) / Income Per Share - Additional Information (Details) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Earnings per share [abstract]
Number of potential dilutive shares that are excluded from computation of dilutive earnings per share	410,659	149,376

Summary of Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Disclosure of initial application of standards or interpretations [abstract]

Disclosure of initial application of standards or interpretations

New and amended standards and interpretations adopted by the Group


		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 transaction.	January 1, 2024
Amendments to IAS 7 and IFRS 7*	Disclosures on supplier finance arrangements and their effects in the financial statements.	January 1, 2024

*There was no significant impact to the consolidated financial statements from adoption.

Disclosure of expected impact of initial application of new standards or interpretations

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


		Effective for annual periods beginning on or after
Amendments to IAS 21*	Lack of exchangeability	January 1, 2025
Amendments to IAS 28 and IFRS 10*	Sale or contribution of assets between an investor and its associate or joint venture.	To be determined
Amendments to IFRS 9 and IFRS 7*	Amendments to the classification and measurement of financial instruments	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11*	Annual improvements to IFRS	January 1, 2026
IFRS 18*	Presentation and disclosures in financial statements	January 1, 2027
IFRS 19*	Subsidiaries without public accountability: disclosures	January 1, 2027

*The Company is in the process of evaluating the impact of the change on the consolidated financial statements.

Cash flow information (Tables)

6 Months Ended

Jun. 30, 2024

Disclosure Of Cash Flow Information [Abstract]

Summary of Cash Used in Operations

Cash used in operations


		Six Months Ended June 30,
	Notes	2023		2024

(In thousands)
Net (loss) / income before income tax		$	(30,410)	$	7,709
Adjustments for:
Interest expense for lease liabilities	10	10		10
Investment management fee		35		44
Interest income from investments at fair value through other comprehensive income	10	(1,300)		(100)

Amortization of intangible assets		4		4
Depreciation of property, plant and equipment	13	366		337
Depreciation of rights-of-use assets	14	137		135
Share-based compensation expense	19	2,300		1,839
Net foreign exchange differences		(481)		(61)
Loss on disposal of land use rights and other		100		—

Changes in working capital
Other receivables and prepayments		(321)		348
Other non-current assets		(485)		23
Contract assets	5	—		(3,561)
Other payables and accruals		(203)		589
Deferred income		(490)		(11)
Contract liabilities	5	—		(13,320)
Trade payables		(417)		(1,959)
Net cash used in operations		$	(31,155)	$	(7,974)

Summary of Supplemental Cash Flow Information

Supplemental Cash Flow Information:


	Six Months Ended June 30,
	2023		2024
(In thousands)
Interest income received	$	1,179	$	2,348

Right-of-Use Assets, net and Lease Liabilities - Schedule of Amounts Recognized in Consolidated Balance Sheets as Right-of-use Assets (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Right-of-use assets [Roll Forward]
Net book amount, Beginning balance	$ 453
Additions	0
Depreciation	(135)
Exchange difference	(1)
Net book amount, Ending balance	317
Cost	1,193
Accumulated depreciation	(875)
Exchange difference	(1)
Net book value	$ 317

Other Gains – Net (Tables)

6 Months Ended

Jun. 30, 2024

Other Income (Losses) Net [Abstract]

Schedule of Other (Losses)/Gains-Net


	Six Months Ended June 30,
	2023		2024
(In thousands)
Net foreign exchange gains	$	481	$	162
Investment income from investments at fair value through profit and loss	782		2,058

Other loss	(100)		—
	$	1,163	$	2,220

Unaudited Interim Condensed Consolidated Statements of (Loss) / Income $ in Thousands, ¥ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares	Jun. 30, 2023 USD ($) $ / shares
Profit or loss [abstract]
Revenue from contracts with customers	$ 24,100	$ 0
Total revenue	24,116	0
Research and development expenses	(13,316)	(26,642)
Administrative expenses	(8,282)	(8,095)
Other income	2,570	1,468
Other gains - net	2,220	1,163
Operating (loss) / income	7,308	(32,106)
Finance income	411	1,706
Finance cost	(10)	(10)
Finance income - net	401	1,696
Net (loss) / income before income tax	7,709	(30,410)
Income tax expense	(60)	(64)
Net (loss) / income	7,649	(30,474)
Net (loss) / income attributable to:
Owners of the Company	$ 7,649	$ (30,474)
Net (loss) / income per share
Basic (USD per share) \| $ / shares	$ 0.14	$ (0.55)
Diluted (USD per share) \| $ / shares	$ 0.14	$ (0.55)

Employee Benefit Expenses (Tables)

6 Months Ended

Jun. 30, 2024

Classes of employee benefits expense [abstract]

Schedule of Employee Benefit Expenses


	Six Months Ended June 30,
	2023		2024
(In thousands)
Wages, salaries and bonuses	$	5,750	$	4,744
Share-based compensation expenses (ii, Note 19)	2,300		1,839
Severance costs (i)	—		854
Welfare expenses	967		748
Housing funds	100		105
	$	9,117	$	8,290

(i)In June 2024, through its subsidiary, Connect US, the Company has entered into an employment transition agreement (the “Zheng Wei Transition Agreement”) with Zheng Wei, Ph.D. Pursuant to the Zheng Wei Transition Agreement, Dr. Zheng Wei has agreed to serve as a non-executive employee in the role of Senior Advisor to the Company until the earlier of (i) December 31, 2024, or (ii) the date on which Dr. Zheng Wei’s employment terminates ("Separation Date"). This amount consists of severance payments amounting to US$0.9 million as required under the Zheng Wei Transition Agreement and severance costs for other employee terminations during the six month period ended June 30, 2024.

(ii)Share-based compensation expenses also include the expenses accelerated for the unvested stock awards that will be terminated upon the Separation Date pursuant to the Zheng Wei Transition Agreement.

Employee benefit expenses were charged in the following line items in the interim condensed consolidated statements of loss:


	Six Months Ended June 30,
	2023		2024
(In thousands)
Research and development expenses	$	4,953	$	4,160
Administrative expenses	4,164		4,130
	$	9,117	$	8,290

Related party transactions

6 Months Ended

Jun. 30, 2024

Related party transactions

Parties are considered to be related if one party has the ability, directly or indirectly, to control or exercise significant influence over the other party. Parties are also considered to be related if they are subject to common control. Members of key management of the Group and their close family members are also considered as related parties.

The following is a summary of significant transactions with members of key management during the six months ended June 30, 2023 and 2024.

Key management personnel compensation:


	Six Months Ended June 30,
	2023		2024
(In thousands)
Wages, salaries and bonuses	$	1,541	$	1,212
Share-based compensation expenses	1,047		1,155
Severance costs (Note 7(i))	—		808
Contributions to defined contribution plan	27		11
Welfare, housing funds and other	17		58
	$	2,632	$	3,244

Payroll and welfare payables in relation to key management as of June 30, 2024 include accrued wages, salaries and bonuses amounting to US$0.4 million and severance costs amounting to US$0.8 million. Payroll and welfare payables in relation to key management as of December 31, 2023 include accrued wages, salaries and bonuses amounting to US$0.6 million

Property, Plant and Equipment, net (Tables)

6 Months Ended

Jun. 30, 2024

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

Summary of Property, Plant and Equipment


	Laboratory equipment		Leasehold improvements		Office equipment, furniture and others		Total
(In thousands)
As of January 1, 2024
Cost	$	5,576	$	762	$	340	$	6,678
Accumulated depreciation	(1,516)		(532)		(280)		(2,328)
Exchange difference	(73)		(3)		—		(76)
Net book value	$	3,987	$	227	$	60	$	4,274

Six months ended June 30, 2024
Opening net book value	$	3,987	$	227	$	60	$	4,274
Exchange difference	(25)		(1)		—		(26)
Additions	291		—		—		291
Transfers	—		—		—		—
Depreciation	(245)		(60)		(32)		(337)
Disposal	—		—		—		—
Closing net book value	$	4,008	$	166	$	28	$	4,202

As of June 30, 2024
Cost	$	5,867	$	762	$	340	$	6,969
Accumulated depreciation	(1,761)		(592)		(312)		(2,665)
Exchange difference	(98)		(4)		—		(102)
Net book value	$	4,008	$	166	$	28	$	4,202

Other Receivables and Prepayments (Tables)

6 Months Ended

Jun. 30, 2024

Other Receivables And Prepayments [Abstract]

Schedule of Other Receivables and Prepayments


	December 31,		June 30,
	2023		2024
(In thousands)
Prepayment for contract research organization ("CRO") services	$	1,732	$	984
Prepaid expenses (i)	357		825
Deposits	51		67
Others	178		287
	$	2,318	$	2,163

(i)In March 2024, the Group made payments to purchase annual directors and officers liability insurance. Such expenses are amortized over 1 year.

Share-based Compensation - Summary of Options Outstanding (Details)	6 Months Ended
	Jun. 30, 2024 shares $ / shares
Disclosure of terms and conditions of share-based payment arrangement [abstract]
Options outstanding, beginning balance (in shares)	6,547,621
Granted (in shares)	5,933,890
Exercised (in shares)	(123,741)
Forfeited (in shares)	(129,438)
Expired (in shares)	(32,603)
Canceled under Zheng Wei Transition Agreement (in shares)	(568,353)
Options outstanding, ending balance (in shares)	11,627,376
Exercisable (in shares)	3,814,017
Weighted average exercise price per share option, granted (in dollars per share) \| $ / shares	$ 1.63
Weighted average exercise price per share option, exercised (in dollars per share) \| $ / shares	0.76
Weighted average exercise price per share option, forfeited (in dollars per share) \| $ / shares	1.76
Weighted average exercise price per share option, expired (in dollars per share) \| $ / shares	6.41
Weighted average exercise price per share option, canceled under Zheng Wei Transition Agreement(in dollars per share) \| $ / shares	$ 1.73

Cash and Cash Equivalents - Narrative (Details)	6 Months Ended
Cash and Cash Equivalents - Narrative (Details)	Jun. 30, 2024
Cash and cash equivalents [abstract]
Deposits in sweep accounts, annualized yield (in percent)	4.20%

Net (Loss) / Income Per Share - Schedule of Basic and Diluted Net Losses Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Basic net (loss) / income per share
Net (loss) / income attributable to owners of the Company	$ 7,649	$ (30,474)
Weighted average number of ordinary shares outstanding	55,143,590	55,051,351
Basic net (loss) / income per share (USD per share)	$ 0.14	$ (0.55)
Diluted net (loss) / income per share
Net (loss) / income attributable to owners of the Company	$ 7,649	$ (30,474)
Weighted average number of ordinary shares outstanding	55,554,249	55,051,351
Diluted net (loss) / income per share (USD per share)	$ 0.14	$ (0.55)

Summary of Accounting Policies (Policies)	6 Months Ended
Summary of Accounting Policies (Policies)	Jun. 30, 2024
Disclosure of initial application of standards or interpretations [abstract]
Basis of Presentation	1.2 Basis of Presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting, issued by the International Accounting Standards Board ("IASB"). Accordingly, they do not include all of the information and footnotes required by International Financial Reporting Standards Accounting Standards ("IFRS Accounting Standards") as issued by the IASB. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with IFRS Accounting Standards have been condensed or omitted. The unaudited interim condensed consolidated financial statements include adjustments of a normal recurring nature, as necessary, for the fair statement of the Company’s financial position as of June 30, 2024, and results of operations and cash flows for the six months ended June 30, 2023 and 2024. The consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by IFRS Accounting Standards. The unaudited interim condensed consolidated financial statements and related disclosures have been prepared with the presumption that users of the unaudited interim condensed consolidated financial statements have read or have access to the audited consolidated financial statements for the preceding fiscal years. Accordingly, these financial statements should be read in conjunction with audited consolidated financial statements and related footnotes for the years ended December 31, 2022, and 2023 included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023. The accounting policies applied, other than the adoption of new or amended standards as described in Note 2, are consistent with those of the audited consolidated financial statements for the preceding fiscal year. Results for the six months ended June 30, 2024 are not necessarily indicative of the results expected for the full fiscal year or for any future period. Liquidity Since inception, the Group has incurred accumulated losses of US$531.7 million. For the six months ended June 30, 2024, the Group had net operating income of US$7.3 million and net operating cash outflow of US$8.0 million. The principal sources of funding have historically been cash contributions from equity financings and cash receipts under a license agreement. As of June 30, 2024, the Group had net assets of US$110.5 million, including cash and cash equivalents of US$110.2 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 the next twelve months from the date of issuance of these interim condensed consolidated financial statements. Accordingly, the Group considers that it is appropriate to prepare the consolidated financial information on a going concern basis.

Financial Assets at Fair Value Through Other Comprehensive Income

6 Months Ended

Jun. 30, 2024

Financial assets at fair value through other comprehensive income [abstract]

Financial Assets at Fair Value Through Other Comprehensive Income

Financial assets at FVOCI are comprised of debt securities where the contractual cash flows are solely principal and interest and the objective of the Group’s business model is achieved by collecting contractual cash flows and selling financial assets. Debt investments at FVOCI were comprised of investments in United States ("U.S.") treasury bills, U.S. government agency bonds, and unlisted debt securities.

Unlisted debt securities are comprised of investments in commercial paper of financial institutions. Upon sale of the debt investments, any related balance within the FVOCI reserve is reclassified to other gains / (losses) within profit or loss. There were no sales of debt investments during the six months ended June 30, 2024. There were no debt investments as of June 30, 2024 as all of the debt investments have matured.


	December 31,		June 30,
	2023		2024
(in thousands)




Current assets
U.S. Treasury bills	$	1,750	$	—
U.S. Government agency bonds	3,953		—

Unlisted debt securities	6,943		—
	$	12,646	$	—

The following amounts are related to our debt investments at FVOCI:


	Six Months Ended June 30,
	2023		2024
(In thousands)
Interest income recognized in profit and loss related to debt investments	$	1,300	$	100
Gains recognized in other comprehensive income related to debt investments	$	222	$	11

Information about the methods and assumptions used in determining fair value is provided in Note 3. Impairment of debt investments at FVOCI is measured based on expected losses and changes in credit risk and recognized into profit and loss when determined. As of June 30, 2024, no impairment had been recognized on debt investments at FVOCI. All financial assets at FVOCI are denominated in US$.

Share-based Compensation - Summary of Key Assumptions for Options Granted (Details)	6 Months Ended
	Jun. 30, 2024 yr $ / shares	Jun. 30, 2023 yr $ / shares
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Weighted average exercise price during the period (in dollars per share)	$ 1.63	$ 1.25
Expected life (in years) \| yr	10	10
Dividend yield (in percent)	0.00%	0.00%
Weighted average fair value of options granted during the period (in years)	$ 1.23	$ 0.72
Stock Options, All Other Employees
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Forfeiture rate (in percent)		11.70%
Bottom of range
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Grant date share price (in dollars per share)	$ 1.18	$ 0.99
Risk-free interest rate (in percent)	4.20%	3.60%
Expected volatility (in percent)	101.90%	59.60%
Expected early exercise multiple	2.2	2.2
Forfeiture rate (in percent)	5.60%	8.50%
Bottom of range \| Stock Options, Executives and Directors
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Forfeiture rate (in percent)	5.60%	8.50%
Bottom of range \| Stock Options, All Other Employees
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Forfeiture rate (in percent)	7.90%
Top of range
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Grant date share price (in dollars per share)	$ 1.79	$ 1.29
Risk-free interest rate (in percent)	4.80%	4.20%
Expected volatility (in percent)	104.30%	60.00%
Expected early exercise multiple	2.8	2.8
Forfeiture rate (in percent)	9.00%	12.30%
Top of range \| Stock Options, Executives and Directors
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Forfeiture rate (in percent)	9.00%	12.30%
Top of range \| Stock Options, All Other Employees
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Forfeiture rate (in percent)	8.40%

Net (Loss) / Income Per Share

6 Months Ended

Jun. 30, 2024

Earnings per share [abstract]

Net (Loss) / Income Per Share

Basic net (loss) / income per share is calculated by dividing the (loss) / income attributable to owners of the Company by the weighted average number of ordinary shares outstanding. Diluted net (loss) / income per share is calculated using the weighted average number of ordinary and potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of shares that would be issued upon the exercise of stock options or conversion of all dilutive potential ordinary shares at no consideration as of the beginning of the period. Basic and diluted net (loss) / income per share are presented as follows:


	Six Months Ended June 30,
	2023		2024
Net (loss) / income attributable to owners of the Company (in thousands)	$	(30,474)	$	7,649
Weighted average number of ordinary shares outstanding	55,051,351		55,143,590

Basic net (loss) / income per share	$	(0.55)	$	0.14


Net (loss) / income attributable to owners of the Company (in thousands)	$	(30,474)	$	7,649
Weighted average number of ordinary shares outstanding	55,051,351		55,554,249

Diluted net (loss) / income per share	$	(0.55)	$	0.14

For the six months ended June 30, 2024, potentially dilutive share options of 410,659 were included in computation of diluted earnings per share. For the six months ended June 30, 2023, potentially dilutive share options of 149,376 were excluded from the computation of diluted earnings per share as their effects were anti-dilutive.

Finance Income – Net

6 Months Ended

Jun. 30, 2024

Profit (loss) [abstract]

Finance Income – Net


	Six Months Ended June 30,
	2023		2024
(In thousands)
Finance income
Interest from bank deposits and term deposits	$	406	$	311
Investment income from investments at fair value through other comprehensive income	1,300		100
	1,706		411
Finance cost
Interest expense for lease liabilities	(10)		(10)
	(10)		(10)
	$	1,696	$	401

Expenses by Nature (Tables)

6 Months Ended

Jun. 30, 2024

Expenses by nature [abstract]

Summary of Expenses by Nature


	Six Months Ended June 30,
	2023		2024
(In thousands)
Clinical trials related expenses (i)	$	19,947	$	7,087
Employee benefit expenses (i, Note 7)	9,117		8,290
Professional service fees	4,168		4,493

Depreciation and amortization	507		476
Research and development materials and consumable supplies	298		456
Office expenses	399		384
Others	301		412
	$	34,737	$	21,598

Other Receivables and Prepayments

6 Months Ended

Jun. 30, 2024

Other Receivables And Prepayments [Abstract]

Other Receivables and Prepayments


	December 31,		June 30,
	2023		2024
(In thousands)
Prepayment for contract research organization ("CRO") services	$	1,732	$	984
Prepaid expenses (i)	357		825
Deposits	51		67
Others	178		287
	$	2,318	$	2,163

(i)In March 2024, the Group made payments to purchase annual directors and officers liability insurance. Such expenses are amortized over 1 year.

Financial Assets at Fair Value Through Other Comprehensive Income - Schedule of Financial Assets at Fair Value Through Other Comprehensive Income Recognized In Profit Or Loss And Other Comprehensive Income (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Financial assets at fair value through other comprehensive income [abstract]
Interest income recognized in profit and loss related to debt investments	$ 100	$ 1,300
Gains recognized in other comprehensive income related to debt investments	$ 11	$ 222

Cash and Cash Equivalents - Schedule of Cash And Cash Equivalents (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Disclosure Of Financial Assets [Line Items]
Cash equivalents (Note 3)	$ 79,089	$ 78,317
Total cash and cash equivalents	110,174	106,007	$ 81,609	$ 79,010
UNITED STATES
Disclosure Of Financial Assets [Line Items]
Cash	12,405	10,767
CHINA
Disclosure Of Financial Assets [Line Items]
Cash	14,804	15,614
AUSTRALIA
Disclosure Of Financial Assets [Line Items]
Cash	$ 3,876	$ 1,309

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2024

Revenue [abstract]

Disclosure of performance obligations

For the six months ended June 30, 2024, the Group recognized the following amounts for the related performance obligations:


	Allocated Cumulative Transaction Price		Revenue Recognized
			Six Months Ended June 30, 2024
(US$ in millions)
License of IP	$	23.3	$	23.3
Development services	0.9		0.7
Other obligations	0.2		0.1
	24.4		$	24.1
VAT	1.5
	$	25.9

Expenses by Nature - Summary of Expenses by Nature (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Expenses by nature [abstract]
Clinical trials related expenses (i)	$ 7,087	$ 19,947
Employee benefit expenses (i, Note 7)	8,290	9,117
Professional service fees	4,493	4,168
Depreciation and amortization	476	507
Research and development materials and consumable supplies	456	298
Office expenses	384	399
Others	412	301
Total expenses, by nature	$ 21,598	$ 34,737

Right-of-Use Assets, net and Lease Liabilities

6 Months Ended

Jun. 30, 2024

Presentation of leases for lessee [abstract]

Right-of-Use Assets, net and Lease Liabilities

Amounts recognized in the interim condensed consolidated balance sheets are as follows:

(i)Right-of-use assets


	Total *
(In thousands)
As of January 1, 2024	$	453
Additions	—
Depreciation	(135)

Exchange difference	(1)
Net book value as of June 30, 2024	$	317

As of June 30, 2024
Cost	$	1,193
Accumulated depreciation	(875)
Exchange difference	(1)
Net book value	$	317

*Right-of-use assets are comprised of the building space used for office rental.

(ii)Lease liabilities

We have a lease for a research, development, and administration facility in Taicang, Jiangsu Province, PRC, which expires in April 2026, and have a lease for an executive and administration office in San Diego, California, which expires in April 2025. The following tables provide information regarding these leases.

Amounts recognized as liabilities in the interim condensed consolidated balance sheets were as follows:


	December 31,		June 30,
	2023		2024
(In thousands)
Non-current	$	180	$	73
Current	285		252
	$	465	$	325

Amounts recognized in the interim condensed consolidated statements of (loss) / income in addition to office rental depreciation were as follows:


	Six Months Ended June 30,
	2023		2024
(In thousands)
Interest expense	$	10	$	10

The total cash outflow for leases for the six months ended June 30, 2023 and 2024 was US$0.1 million and US$0.1 million, respectively.

Right-of-Use Assets, net and Lease Liabilities - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Presentation of leases for lessee [abstract]
Cash outflow for leases	$ 0.1	$ 0.1

Financial Assets at Fair Value Through Other Comprehensive Income - Schedule of Financial Assets at Fair Value Through Other Comprehensive Income (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Disclosure Of Financial Instruments [Line Items]
Current assets	$ 0	$ 12,646
U.S. Treasury bills
Disclosure Of Financial Instruments [Line Items]
Current assets	0	1,750
U.S. Government agency bonds
Disclosure Of Financial Instruments [Line Items]
Current assets	0	3,953
Unlisted debt securities
Disclosure Of Financial Instruments [Line Items]
Current assets	$ 0	$ 6,943

General Information and Basis of Presentation	6 Months Ended
General Information and Basis of Presentation	Jun. 30, 2024
Disclosure Of General Information And Basis Of Presentation [Abstract]
General Information and Basis of Presentation	General Information and Basis of Presentation 1.1 General Information Connect Biopharma Holdings Limited (the “Company”) was incorporated in November 2015 in the Cayman Islands as an exempted company with limited liability. The address of the Company’s registered office is P.O. Box 613, Harbour Centre, George Town, Grand Cayman, KY1-1107, Cayman Islands. The Company completed its initial public offering (“IPO”) on March 23, 2021 and the Company’s American Depositary Shares (“ADSs”) have been listed on the Nasdaq Global Market (“Nasdaq”) since then. Each ADS of the Company represents one ordinary share, par value US$0.000174 per share. The Company and its subsidiaries (collectively, the “Group”) is a clinical-stage company focused on the discovery and development of next-generation immune modulators for the treatment of serious autoimmune diseases and inflammation. The Group has leveraged its expertise in the biology of T cell modulation to build a portfolio of drug candidates consisting of small molecules and antibodies targeting critical pathways of inflammation. Connect Biopharma HongKong Limited (“Connect HK”) is a direct wholly owned subsidiary of the Company and the Group carries out its business through Connect HK’s wholly owned subsidiaries: Suzhou Connect Biopharma Co., Ltd. (“Connect SZ”), Connect Biopharm LLC (“Connect US”) and Connect Biopharma Australia PTY LTD (“Connect AU”). 1.2 Basis of Presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting, issued by the International Accounting Standards Board ("IASB"). Accordingly, they do not include all of the information and footnotes required by International Financial Reporting Standards Accounting Standards ("IFRS Accounting Standards") as issued by the IASB. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with IFRS Accounting Standards have been condensed or omitted. The unaudited interim condensed consolidated financial statements include adjustments of a normal recurring nature, as necessary, for the fair statement of the Company’s financial position as of June 30, 2024, and results of operations and cash flows for the six months ended June 30, 2023 and 2024. The consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by IFRS Accounting Standards. The unaudited interim condensed consolidated financial statements and related disclosures have been prepared with the presumption that users of the unaudited interim condensed consolidated financial statements have read or have access to the audited consolidated financial statements for the preceding fiscal years. Accordingly, these financial statements should be read in conjunction with audited consolidated financial statements and related footnotes for the years ended December 31, 2022, and 2023 included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023. The accounting policies applied, other than the adoption of new or amended standards as described in Note 2, are consistent with those of the audited consolidated financial statements for the preceding fiscal year. Results for the six months ended June 30, 2024 are not necessarily indicative of the results expected for the full fiscal year or for any future period. Liquidity Since inception, the Group has incurred accumulated losses of US$531.7 million. For the six months ended June 30, 2024, the Group had net operating income of US$7.3 million and net operating cash outflow of US$8.0 million. The principal sources of funding have historically been cash contributions from equity financings and cash receipts under a license agreement. As of June 30, 2024, the Group had net assets of US$110.5 million, including cash and cash equivalents of US$110.2 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 the next twelve months from the date of issuance of these interim condensed consolidated financial statements. Accordingly, the Group considers that it is appropriate to prepare the consolidated financial information on a going concern basis.

Fair Value Estimation - Summary of Financial Instruments Carried at Fair Value by Level of Inputs to Valuation Techniques (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Disclosure Of Financial Instruments [Line Items]
Cash equivalents	$ 79,089	$ 78,317
Recurring
Disclosure Of Financial Instruments [Line Items]
Cash equivalents	79,089	78,317
Financial assets at fair value through other comprehensive income (current)		12,646
Total	79,089	90,963
Recurring \| Level 1
Disclosure Of Financial Instruments [Line Items]
Cash equivalents	79,089	78,317
Financial assets at fair value through other comprehensive income (current)		1,750
Total	79,089	80,067
Recurring \| Level 2
Disclosure Of Financial Instruments [Line Items]
Cash equivalents	0	0
Financial assets at fair value through other comprehensive income (current)		10,896
Total	0	10,896
Recurring \| Level 3
Disclosure Of Financial Instruments [Line Items]
Cash equivalents	0	0
Financial assets at fair value through other comprehensive income (current)		0
Total	$ 0	$ 0

- Definition

The amount of assets that are: (a) cash; (b) an equity instrument of another entity; (c) a contractual right: (i) to receive cash or another financial asset from another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or (d) a contract that will, or may be, settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is, or may be, obliged to receive a variable number of the entity’s own equity instruments; or (ii) a derivative that will, or may be, settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include puttable financial instruments classified as equity instruments in accordance with paragraphs 16A-16B of IAS 32, instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and are classified as equity instruments in accordance with paragraphs 16C-16D of IAS 32, or instruments that are contracts for the future receipt or delivery of the entity’s own equity instruments. [Refer: Financial instruments, class [member]; Financial liabilities]

+ References + Details

Employee Benefit Expenses - Schedule of Employee Benefit Expenses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Classes of employee benefits expense [abstract]
Wages, salaries and bonuses	$ 4,744	$ 5,750
Share-based compensation expenses	1,839	2,300
Welfare expenses	748	967
Severance costs	854	0
Housing funds	105	100
Employee benefit expenses	$ 8,290	$ 9,117

Commitments	6 Months Ended
Commitments	Jun. 30, 2024
Capital commitments [abstract]
Commitments	Commitments As of June 30, 2024, the Group had no capital commitments.

Right-of-Use Assets, net and Lease Liabilities - Schedule of Amounts Recognized in Consolidated Statements of Loss in Addition to Right-of-use Asset Depreciation (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Presentation of leases for lessee [abstract]
Interest expense	$ 10	$ 10

Events After the Reporting Period - Additional Information (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2024 shares $ / shares	Jul. 31, 2024 USD ($)
Disclosure of non-adjusting events after reporting period [line items]
Granted (in shares) \| shares	5,933,890
Weighted average exercise price per share option, granted (in dollars per share) \| $ / shares	$ 1.63
Employment Transition Agreement \| Key management personnel of entity or parent \| Wubin Pan, Ph.D
Disclosure of non-adjusting events after reporting period [line items]
Initial base salary \| $		$ 512

Unaudited Interim Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Cash used in operations	$ (10,322)	$ (32,334)
Interest received	2,348	1,179
Net cash used in operating activities	(7,974)	(31,155)
Cash flows from investing activities
Purchase of property, plant and equipment	(436)	(289)
Purchase of financial assets at fair value through other comprehensive income	0	(31,028)
Proceeds from maturity of financial assets at fair value through other comprehensive income	12,757	65,440
Payment of investment management fee	(44)	(35)
Net cash generated from investing activities	12,277	34,088
Cash flows from financing activities
Proceeds from exercise of options	82	0
Proceeds from issuance of ordinary shares	20	22
Payment for lease liabilities	(148)	(144)
Net cash used in financing activities	(46)	(122)
Net increase in cash and cash equivalents	4,257	2,811
Cash and cash equivalents at the beginning of year	106,007	79,010
Effects of exchange rate changes on cash and cash equivalents	(90)	(212)
Cash and cash equivalents at end of year	$ 110,174	$ 81,609

Related party transactions (Tables)

6 Months Ended

Jun. 30, 2024

Summary of Key Management Personnel Compensation

Key management personnel compensation:


	Six Months Ended June 30,
	2023		2024
(In thousands)
Wages, salaries and bonuses	$	1,541	$	1,212
Share-based compensation expenses	1,047		1,155
Severance costs (Note 7(i))	—		808
Contributions to defined contribution plan	27		11
Welfare, housing funds and other	17		58
	$	2,632	$	3,244

Revenue Recognition - Performance Obligations (Details) $ in Thousands, ¥ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2024 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 CNY (¥)
Disclosure of disaggregation of revenue from contracts with customers [line items]
Allocated Cumulative Transaction Price	$ 24,400			¥ 174.5
Revenue Recognized	24,100	¥ 171.6	$ 0
VAT	1,500
Allocated Cumulative Transaction Price, Including VAT	25,900
License of IP
Disclosure of disaggregation of revenue from contracts with customers [line items]
Allocated Cumulative Transaction Price	23,300
Revenue Recognized	23,300
Development services
Disclosure of disaggregation of revenue from contracts with customers [line items]
Allocated Cumulative Transaction Price	900
Revenue Recognized	700
Other obligations
Disclosure of disaggregation of revenue from contracts with customers [line items]
Allocated Cumulative Transaction Price	200
Revenue Recognized	$ 100

Share-based Compensation - Summary of Share-Based Compensation Expenses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based compensation expenses	$ 1,839	$ 2,300
Research and development expenses (Note 7)
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based compensation expenses	847	1,093
Administrative expenses (Note 7)
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based compensation expenses	$ 992	$ 1,207

Fair Value Estimation (Tables)

6 Months Ended

Jun. 30, 2024

Disclosure of fair value measurement of assets [abstract]

Summary of Financial Instruments Carried at Fair Value by Level of Inputs to Valuation Techniques

The table below summarizes the Group’s financial instruments carried at fair value as of December 31, 2023 and June 30, 2024 by level of the inputs used to measure fair value.


(In thousands)

As of December 31, 2023	Level 1		Level 2		Level 3		Total

Assets
Cash equivalents	$	78,317	$	—	$	—	$	78,317
Financial assets at fair value through other comprehensive income (current)	1,750		10,896		—		12,646

Total	$	80,067	$	10,896	$	—	$	90,963

As of June 30, 2024	Level 1		Level 2		Level 3		Total

Assets
Cash equivalents	$	79,089	$	—	$	—	$	79,089

Total	$	79,089	$	—	$	—	$	79,089

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

The following table presents the changes in Level 1 and 2 instruments of short-term investments for the six months ended June 30, 2023 and 2024.


	Six Months Ended June 30,
	2023		2024
(In thousands)
Financial assets at fair value through other comprehensive income
Opening balance	$	82,847	$	12,646
Additions	31,028		—
Settlements (including coupon interest received)	(65,440)		(12,757)
Accrued interest	255		1
Discount Accreted	1,045		99
Change in fair value debited to other comprehensive (loss) / income*	222		11

Closing balance	$	49,957	$	—

*includes unrealized gains / (losses) recognized in other comprehensive (loss) / income attributable to balances held at the end of the reporting period

Summary of Financial Assets at Fair Value Through Profit or Loss

Investments in money market funds are reflected as Level 1 instruments. The following table presents the changes in Level 1 instruments of money market funds, which are included in cash equivalents for the six months ended June 30, 2023 and 2024.


	Six Months Ended June 30,
	2023		2024
(In thousands)
Financial assets at fair value through profit or loss
Opening balance	$	18,368	$	78,317
Additions	65,440		12,757
Settlements (including coupon interest received, net of fees)	(31,118)		(14,043)
Interest income credited to profit or loss (Note 9)	782		2,058

Closing balance	$	53,472	$	79,089

Share Capital and Premium - Schedule of Share Capital and Share Premium (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Changes in equity [abstract]
Beginning balance	$ 101,043
Shares issued for employee share purchase plan ("ESPP")	20
Exercise of stock options	95
Ending balance	$ 110,479
Less: Treasury shares (i)	(2,541,850)	(2,405,591)
Outstanding ordinary shares (in shares)	55,254,032
Issued Capital And Share Premium
Changes in equity [abstract]
Beginning balance	$ 628,717
Exercise of stock options	144
Ending balance	628,881
Share capital
Changes in equity [abstract]
Beginning balance	10
Ending balance	10
Share premium
Changes in equity [abstract]
Beginning balance	628,707
Exercise of stock options	144
Ending balance	$ 628,871
Ordinary Shares
Changes in equity [abstract]
Beginning balance (in shares)	57,508,545
Shares issued for employee share purchase plan ("ESPP") (in shares)	27,337
Shares issued for stock incentive plan reserve (in shares)	260,000
Ending balance (in shares)	57,795,882

Other Payables and Accruals - Schedule of Other Payables and Accruals (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other Payables And Accruals [Line Items]
Accrued professional service fee	$ 1,193	$ 645
Payroll and welfare payables	1,965	1,916
Others	513	438
Other payables and accruals	$ 3,671	$ 2,999

Other Payables and Accruals

6 Months Ended

Jun. 30, 2024

Other Payables and Accruals [Abstract]

Other Payables and Accruals


	December 31,		June 30,
	2023		2024
(In thousands)

Accrued professional service fee	$	645	$	1,193
Payroll and welfare payables	1,916		1,965
Others	438		513
	$	2,999	$	3,671

Other Receivables and Prepayments - Schedule of Other Receivables and Prepayments (Details) - USD ($) $ in Thousands	1 Months Ended
	Mar. 31, 2024	Jun. 30, 2024	Dec. 31, 2023
Other Receivables And Prepayments [Abstract]
Prepayment for contract research organization ("CRO") services		$ 984	$ 1,732
Prepaid expenses		825	357
Deposits		67	51
Others		287	178
Other receivables and prepayments		$ 2,163	$ 2,318
Amortized period	1 year

Revenue Recognition - Narrative (Details)		6 Months Ended
Revenue Recognition - Narrative (Details)	Nov. 21, 2023 USD ($) subsidiary	Jun. 30, 2024 USD ($)	Jun. 30, 2024 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 CNY (¥)	Nov. 21, 2023 CNY (¥)
Disclosure of disaggregation of revenue from contracts with customers [line items]
Exclusive license and collaboration agreement (subsidiaries) \| subsidiary	2
Transaction price allocated to remaining performance obligations		$ 24,400,000			¥ 174,500,000
Revenue from contracts with customers		24,100,000	¥ 171,600,000	$ 0
Value added tax payables		1,500,000
Recognized at a point in time
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		23,400,000	167,100,000
Recognized based on percentage of completed of development services
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		700,000	¥ 4,500,000
License Agreement
Disclosure of disaggregation of revenue from contracts with customers [line items]
Transaction price allocated to remaining performance obligations		23,300,000
Revenue from contracts with customers		23,300,000
Simcere Pharmaceutical Co., Ltd. \| License Agreement
Disclosure of disaggregation of revenue from contracts with customers [line items]
Transaction price, upfront payment	$ 21,100,000	21,100,000			150,000,000			¥ 150,000,000
Transaction price, including variable consideration	$ 123,000,000							875,000,000
Contract term, after commercialization of compound (in years)	12 years
Transaction price allocated to remaining performance obligations	$ 25,200,000	25,900,000			185,000,000			180,000,000
Transaction price, cost reimbursement	$ 4,100,000							¥ 30,000,000
Transaction price, achievement of a transfer of know-how milestone		700,000			5,000,000
Contract assets		3,600,000			¥ 26,600,000		¥ 0
Contract liabilities		$ 0				$ 13,300,000	100,000,000
Value added tax payables \| ¥							¥ 5,600,000

Employee Benefit Expenses

6 Months Ended

Jun. 30, 2024

Classes of employee benefits expense [abstract]

Employee Benefit Expenses


	Six Months Ended June 30,
	2023		2024
(In thousands)
Wages, salaries and bonuses	$	5,750	$	4,744
Share-based compensation expenses (ii, Note 19)	2,300		1,839
Severance costs (i)	—		854
Welfare expenses	967		748
Housing funds	100		105
	$	9,117	$	8,290

Employee benefit expenses were charged in the following line items in the interim condensed consolidated statements of loss:


	Six Months Ended June 30,
	2023		2024
(In thousands)
Research and development expenses	$	4,953	$	4,160
Administrative expenses	4,164		4,130
	$	9,117	$	8,290

Fair Value Estimation

6 Months Ended

Jun. 30, 2024

Disclosure of fair value measurement of assets [abstract]

Fair Value Estimation

The table below summarizes the Group’s financial instruments carried at fair value as of December 31, 2023 and June 30, 2024 by level of the inputs used to measure fair value.


(In thousands)

As of December 31, 2023	Level 1		Level 2		Level 3		Total

Assets
Cash equivalents	$	78,317	$	—	$	—	$	78,317
Financial assets at fair value through other comprehensive income (current)	1,750		10,896		—		12,646

Total	$	80,067	$	10,896	$	—	$	90,963

As of June 30, 2024	Level 1		Level 2		Level 3		Total

Assets
Cash equivalents	$	79,089	$	—	$	—	$	79,089

Total	$	79,089	$	—	$	—	$	79,089

There were no transfers between Levels 1, 2 and 3 during the periods.

Financial instruments in Level 1

The fair value of financial instruments identified as Level 1 are supported by quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date.

Financial instruments in Level 2

The fair value of financial instruments identified as Level 2 is determined by the use of valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific measures. For these financial instruments, all significant inputs required as inputs to fair value are observable.

Financial instruments in Level 3

If one or more of the significant inputs are not based on observable market data, the instrument is included in Level 3.

Specific valuation techniques used to value financial instruments include:

•Quoted market prices or dealer quotes for similar instruments;

•Comparison of accreted purchase price at trade date to face value at maturity and comparison to prices of subsequent similar transactions; and

•A combination of observable and unobservable inputs, including expected rate of return, risk-free rate, expected volatility, discount rate for lack of marketability, bond terms and conditions, current performance data, etc.

Financial assets at fair value through other comprehensive income ("FVOCI") are reflected as Level 1 and 2 instruments, as short-term investments. The following table presents the changes in Level 1 and 2 instruments of short-term investments for the six months ended June 30, 2023 and 2024.


	Six Months Ended June 30,
	2023		2024
(In thousands)
Financial assets at fair value through other comprehensive income
Opening balance	$	82,847	$	12,646
Additions	31,028		—
Settlements (including coupon interest received)	(65,440)		(12,757)
Accrued interest	255		1
Discount Accreted	1,045		99
Change in fair value debited to other comprehensive (loss) / income*	222		11

Closing balance	$	49,957	$	—

*includes unrealized gains / (losses) recognized in other comprehensive (loss) / income attributable to balances held at the end of the reporting period

The Group did not have any Level 3 investment activity during the six months ended June 30, 2023 and June 30, 2024.


	Six Months Ended June 30,
	2023		2024
(In thousands)
Financial assets at fair value through profit or loss
Opening balance	$	18,368	$	78,317
Additions	65,440		12,757
Settlements (including coupon interest received, net of fees)	(31,118)		(14,043)
Interest income credited to profit or loss (Note 9)	782		2,058

Closing balance	$	53,472	$	79,089

The carrying amounts of the Group’s other financial assets and liabilities, including cash at banks, other receivables, trade payable and other payables, approximate their fair values.

Other Income

6 Months Ended

Jun. 30, 2024

Other Income (Expense) [Abstract]

Other Income


	Six Months Ended June 30,
	2023		2024
(In thousands)
Government grants and tax incentives (i)	$	1,468	$	2,570
	$	1,468	$	2,570

Right-of-Use Assets, net and Lease Liabilities - Schedule of Amounts Recognized in Consolidated Balance Sheets as Lease Liability (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Presentation of leases for lessee [abstract]
Non-current	$ 73	$ 180
Current	252	285
Total lease liabilities	$ 325	$ 465

Income Taxes - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Disclosure Of Income Taxes [Line Items]
Income tax expense	$ 60,000	$ 64,000
Unrecognized uncertain tax positions	0
Connect Biopharm LLC (“Connect US”)
Disclosure Of Income Taxes [Line Items]
Income tax expense	$ 60,000.00

- Definition

The aggregate amount included in the determination of profit (loss) for the period in respect of current tax and deferred tax. [Refer: Current tax expense (income); Deferred tax expense (income)]

+ References + Details

Share-based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands		6 Months Ended		12 Months Ended
	May 01, 2022 purchasePeriod	Jun. 30, 2024 USD ($) shares $ / shares	Jun. 30, 2023 USD ($) $ / shares	Dec. 31, 2023 shares	Jun. 10, 2024 shares	May 31, 2022 shares
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Granted (in shares)		5,933,890
Number of purchase periods \| purchasePeriod	4
Expected life (in years)		9 years 2 months 12 days		8 years 2 months 12 days
Compensation expense (less than) \| $		$ 1,839	$ 2,300
Weighted average exercise price during the period (in dollars per share) \| $ / shares		$ 1.63	$ 1.25
ESPP
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Weighted average exercise price during the period (in dollars per share) \| $ / shares		$ 0.74	$ 0.73
2021 Stock Incentive Plan
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Granted (in shares)		1,502,667		6,816,634
Additional shares available for issuance under the plan (in shares)		2,755,000
Number of share options available for future grants (in shares)		6,897,773
2021 Employee Share Purchase Plan
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Granted (in shares)		0
Number of shares potentially issuable (in shares)		1,037,751				600,000
Offering period term (in months)	24 months
Number of shares issued		113,012
2024 Employment Inducement Incentive Award Plan
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Granted (in shares)		4,431,223
Number of share options available for future grants (in shares)		68,777
Number of shares potentially issuable (in shares)					4,500,000
ESPP
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Compensation expense (less than) \| $		$ 10	$ 10
ESPP \| Other Payables and Accruals
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Amounts withheld from employees paychecks \| $		$ 10

Net (Loss) / Income Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings per share [abstract]

Schedule of Basic and Diluted Net Losses Per Share

Basic and diluted net (loss) / income per share are presented as follows:


	Six Months Ended June 30,
	2023		2024
Net (loss) / income attributable to owners of the Company (in thousands)	$	(30,474)	$	7,649
Weighted average number of ordinary shares outstanding	55,051,351		55,143,590

Basic net (loss) / income per share	$	(0.55)	$	0.14


Net (loss) / income attributable to owners of the Company (in thousands)	$	(30,474)	$	7,649
Weighted average number of ordinary shares outstanding	55,051,351		55,554,249

Diluted net (loss) / income per share	$	(0.55)	$	0.14

Summary of Accounting Policies

6 Months Ended

Jun. 30, 2024

Disclosure of initial application of standards or interpretations [abstract]

Summary of Accounting Policies

The accounting policies and method of computation used in the preparation of the interim condensed consolidated financial statements are consistent with those used in the preparation of the audited consolidated financial statements for the preceding fiscal years included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023.

New and amended standards and interpretations adopted by the Group


		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 transaction.	January 1, 2024
Amendments to IAS 7 and IFRS 7*	Disclosures on supplier finance arrangements and their effects in the financial statements.	January 1, 2024

*There was no significant impact to the consolidated financial statements from adoption.

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


		Effective for annual periods beginning on or after
Amendments to IAS 21*	Lack of exchangeability	January 1, 2025
Amendments to IAS 28 and IFRS 10*	Sale or contribution of assets between an investor and its associate or joint venture.	To be determined
Amendments to IFRS 9 and IFRS 7*	Amendments to the classification and measurement of financial instruments	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11*	Annual improvements to IFRS	January 1, 2026
IFRS 18*	Presentation and disclosures in financial statements	January 1, 2027
IFRS 19*	Subsidiaries without public accountability: disclosures	January 1, 2027

*The Company is in the process of evaluating the impact of the change on the consolidated financial statements.

Share-based Compensation

6 Months Ended

Jun. 30, 2024

Disclosure of terms and conditions of share-based payment arrangement [abstract]

Share-based Compensation

. Share-based Compensation

2019 Stock Incentive Plan

The Group adopted the 2019 Stock Incentive Plan (“2019 Plan”) as approved by the Company's board of directors on November 1, 2019, under which the Group may grant various awards such as options, restricted shares or restricted share units to employees, directors, and consultants for services rendered.

2021 Stock Incentive Plan

The Group adopted the 2021 Stock Incentive Plan (“2021 Plan”) effective March 18, 2021. Awards granted under the 2021 Plan may be either stock options, stock appreciation rights, restricted stock units, restricted stock awards or dividend equivalent rights.

Through December 31, 2023, the Company granted a total of 6,816,634 options under the 2021 Plan. During the six months ended June 30, 2024, the Company granted an additional 1,502,667 options from the 2021 Plan. During the six months ended June 30, 2024, an additional 2,755,000 shares were made available for issuance under the Company's 2021 Plan in accordance with the evergreen provisions thereof. As of June 30, 2024, the Group had 6,897,773 ordinary shares available under the 2021 Plan for future grants.

2021 Employee Share Purchase Plan ("2021 ESPP")

The Group adopted the 2021 ESPP effective March 18, 2021 and began implementation in May 2022. A total of 600,000 ordinary shares were initially reserved for issuance under the 2021 ESPP.

The first offering period started on May 1, 2022. The following are the key provisions of the 2021 ESPP: each offering period covers a 24-month period with each offering period providing four purchase periods, with implementation of consecutive overlapping offering periods, limitation on the number of shares, reset and look-back provisions, and other restrictions. During the six months ended June 30, 2024, no additional shares were made available in accordance with the evergreen provisions of the 2021 ESPP. As of June 30, 2024, the Group had 1,037,751 ordinary shares reserved under the 2021 ESPP for future employee share purchases. As of June 30, 2024, 113,012 total shares had been issued under the 2021 ESPP.

2024 Employment Inducement Incentive Award Plan

The Group adopted the 2024 Employment Inducement Incentive Award Plan (“2024 Plan”) effective June 10, 2024. The terms of the 2024 Plan are substantially similar to the terms of the Company’s 2021 Plan with the exception that incentive stock options may not be issued under the 2024 Plan and awards under the 2024 Plan may only be issued to eligible recipients under the applicable Nasdaq rules. The 2024 Plan was adopted by the Company's board of directors without stockholder approval and any awards granted under the 2024 Plan are being made pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules.

The Company's board of directors has initially reserved 4,500,000 shares of the Company’s ordinary shares for issuance pursuant to awards granted under the 2024 Plan. In accordance with Rule 5635(c)(4) of the Nasdaq Listing Rules, awards under the 2024 Plan may only be made to an employee who has not previously been an employee or member of the board of directors of the Company or any subsidiary, or following a bona fide period of non-employment by the Company or a subsidiary, if he or she is granted such award in connection with his or her commencement of employment with the Company or a subsidiary and such grant is an inducement material to his or her entering into employment with the Company or such subsidiary.

During the six months ended June 30, 2024, the Company granted 4,431,223 options from the 2024 Plan. As of June 30, 2024, the Group had 68,777 ordinary shares under the 2024 Plan available for future grants.

The activities of the options outstanding for the six months ended June 30, 2024 for all stock award plans were as follows:


	Number of Options	Weighted Average Exercise Price Per Share Option
Options outstanding as of December 31, 2023	6,547,621
Granted during the six months ended June 30, 2024	5,933,890	US$1.63
Exercised during the six months ended June 30, 2024	(123,741)	US$0.76
Forfeited during the six months ended June 30, 2024 (i)	(129,438)	US$1.76
Expired during the six months ended June 30, 2024 (i)	(32,603)	US$6.41
Canceled under Zheng Wei Transition Agreement during the six months ended June 30, 2024 (ii)	(568,353)	US$1.73
Options outstanding as of June 30, 2024	11,627,376
Options exercisable as of June 30, 2024	3,814,017

The weighted average remaining contractual life of options outstanding as of December 31, 2023 and June 30, 2024 were 8.2 years and 9.2 years, respectively.

(i) Forfeited options include unvested options forfeited upon employment termination and expired options include vested options which have expired after their exercise period.

(ii) Canceled options under the Zheng Wei Transition Agreement include the unvested stock awards that will be terminated upon Separation Date as set forth in Note 7(ii).

Fair value of options granted and ESPP compensation

Based on the fair value of the underlying ordinary shares, using public market pricing, the Group used the Binomial option-pricing model to determine the fair value of options as of the grant date. Key assumptions for the options granted for the periods are set forth below:

June 30,

2023

2024

Weighted average exercise price during the period

US$1.25

US$1.63

Grant date share price

US$0.99 ~ US$1.29

US$1.18 ~ US$1.79

Risk-free interest rate

3.6%~4.2%

4.2%~4.8%

Expected volatility

59.6%~60.0%

101.9%~104.3%

Expected life

10 years

Expected early exercise multiple

2.2-2.8

Dividend yield

Nil

Forfeiture rate

*8.5%-12.3%

*5.6%-9.0%

Weighted average fair value of options granted during the period

US$0.72

US$1.23

*Forfeiture rates for executives and directors, and all other employees in six months ended June 30, 2023, were 8.5%~12.3% and 11.7%, respectively. Forfeiture rates for executives and directors, and all other employees in the six months ended June 30, 2024, were 5.6%~9.0% and 7.9%~8.4%, respectively.

Separately, the Group used the Black-Scholes option-pricing model to determine the fair value of ESPP compensation expense calculation as of the grant date, which was less than US$0.01 million for the periods presented. The amounts withheld from employees’ paychecks as of June 30, 2024 totaled US$0.01 million, which is recorded in other payables and accruals within current liabilities. The weighted average discounted ESPP purchase price for issued shares during the six months ended June 30, 2023 and June 30, 2024 was US$0.73 and US$0.74, respectively.

The Company adopted the average volatility of comparable companies as a proxy of the expected volatility of the underlying shares. The volatility of each comparable company was based on the historical daily stock prices for a period with length commensurate to the remaining life of the stock options or ESPP shares, respectively.

Share-based compensation expenses included in the interim condensed consolidated statements of (loss) / income for the six months ended June 30, 2023 and 2024 were as follows:


	Six Months Ended June 30,
	2023		2024
(In thousands)
Research and development expenses (Note 7)	$	1,093	$	847
Administrative expenses (Note 7)	1,207		992
	$	2,300	$	1,839

Commitments (Details)	Jun. 30, 2024 USD ($)
Capital commitments [abstract]
Capital commitments	$ 0

Unaudited Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Non-current assets
Property, plant and equipment, net	$ 4,202	$ 4,274
Right-of-use assets, net	317	453
Intangible assets	57	62
Other non-current assets	96	132
Total non-current assets	4,672	4,921
Current assets
Cash and cash equivalents	110,174	106,007
Other receivable and prepayments	2,163	2,318
Contract assets	3,561	0
Investments:
Financial assets at fair value through other comprehensive income	0	12,646
Total current assets	115,898	120,971
Total assets	120,570	125,892
Non-current liabilities
Lease liabilities	73	180
Deferred income	394	405
Total non-current liabilities	467	585
Current liabilities
Lease liabilities	252	285
Trade payables	5,701	7,660
Other payables and accruals	3,671	2,999
Contract liabilities	0	13,320
Total current liabilities	9,624	24,264
Total liabilities	10,091	24,849
Net assets	110,479	101,043
SHAREHOLDERS’ EQUITY
Share capital	10	10
Share premium	628,871	628,707
Treasury shares	(180)	(180)
Share-based compensation reserve	21,521	19,731
Other reserves	(8,045)	(7,878)
Accumulated losses	(531,698)	(539,347)
Total shareholders’ equity	110,479	101,043
Total liabilities and shareholders’ equity	$ 120,570	$ 125,892

Cover Page	6 Months Ended
Cover Page	Jun. 30, 2024
Cover [Abstract]
Document Type	6-K
Entity File Number	001-40212
Entity Registrant Name	Connect Biopharma Holdings Limited
Entity Address, Address Line One	12265 El Camino Real
Entity Address, Address Line Two	Suite 350
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92130
Entity Address, Country	US
Entity Central Index Key	0001835268
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Period End Date	Jun. 30, 2024

Revenue Recognition

6 Months Ended

Jun. 30, 2024

Revenue [abstract]

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, 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 rademikibart in Greater China, including mainland China, Hong Kong, Macau, and Taiwan (the "Territory").

The Licensee has been granted exclusive rights to develop, manufacture and commercialize rademikibart for all indications in Greater China, while the Licensor retains rights in all other markets. Under the License Agreement, the Licensor will complete all of rademikibart’s ongoing clinical trials and related analysis in Greater China 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, including asthma, 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 is eligible to receive a 150 million RMB (approximately US$21 million) upfront payment, up to 875 million RMB (approximately US$123 million) for potential development and commercial milestones payments and clinical cost reimbursements, in addition to royalties up to low double-digit percentages of net sales.

Simcere License Agreement

The Group concluded that the License Agreement is in the scope of IFRS 15, Revenue from Contracts with Customers.

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 services 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 Agreement represent separate material performance obligations:

(i)the grant of license to the intellectual property ("IP"); and

(ii)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, including VAT (approximately US$25.2 million), which is comprised of (i) a 150 million RMB (approximately US$21.1 million) upfront payment for the grant of the license to the Licensee and (ii) 30 million RMB (approximately US$4.1 million) of cost reimbursement upon delivery of certain clinical trial reports. As of June 30, 2024, the Group had received the entire 150 million RMB (approximately US$21.1 million) of the upfront payment.

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 because these milestones are not within the control of the Group. As of June 30, 2024, the Group had received 5.0 million RMB (approximately US$0.7 million) for the achievement of a transfer of know-how milestone, which is added to the transaction price and directly allocated to the performance obligation of the grant of license to the IP, resulting in a cumulative transaction price of 185 million RMB, including VAT (approximately US$25.9 million).

Sales-based milestone payments and royalties are payable when annual sales of a covered product reach specified levels. When an IP 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 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 on a cost-to-cost basis because the Licensee simultaneously receives and consumes the benefits provided by the Group's efforts and, if necessary, adjusts the progress of performance and related revenue recognition.

During the six months ended June 30, 2024, the Group recognized 171.6 million RMB (approximately US$24.1 million) out of the cumulative transaction price, net of VAT, of 174.5 million RMB (approximately US$24.4 million). Specifically, for the performance obligation to provide a right to use the Company's license of IP, the Group recognized revenue of 167.1 million RMB (approximately US$23.4 million) at a point in time when the license was substantially transferred to the Licensee, who can thereafter direct the use of, and obtain substantially, all of the remaining benefits from the license. Additionally, the Group recognized revenue of 4.5 million RMB (approximately US$0.7 million) on an over time basis for the development services based on the percentage of completion of such services. For the six months ended June 30, 2024, the Group recognized the following amounts for the related performance obligations:


	Allocated Cumulative Transaction Price		Revenue Recognized
			Six Months Ended June 30, 2024
(US$ in millions)
License of IP	$	23.3	$	23.3
Development services	0.9		0.7
Other obligations	0.2		0.1
	24.4		$	24.1
VAT	1.5
	$	25.9

Contract Assets

Contract assets representing amounts for the Group's right to consideration in exchange for goods or services that has been transferred to Simcere, which will be classified as a receivable when the Group's right to consideration is no longer conditional under the License Agreement, were nil and 26.6 million RMB (approximately US$3.6 million) as of December 31, 2023 and June 30, 2024, respectively.

Contract Liabilities

As of December 31, 2023, the Group had a contract liability for the upfront fee received under the License Agreement of 100.0 million RMB, less VAT of 5.6 million RMB (approximately US$13.3 million). As of June 30, 2024, the Group had a balance of nil for contract liabilities under the License Agreement.

Unaudited Interim Condensed Consolidated Statements of Comprehensive (Loss) / Income - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Statement of comprehensive income [abstract]
Net (loss) / income	$ 7,649	$ (30,474)
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations	(178)	(897)
Changes in the fair value of debt instruments at fair value through other comprehensive income	11	222
Other comprehensive loss, net of tax	(167)	(675)
Total comprehensive (loss) / income	7,482	(31,149)
Total comprehensive (loss) / income attributable to:
Owners of the Company	$ 7,482	$ (31,149)

- Definition

The amount of change in equity resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.

+ References + Details

- Definition

The total of income less expenses from continuing and discontinued operations, excluding the components of other comprehensive income. [Refer: Other comprehensive income]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
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-Paragraph 32
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/exampleRef
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Cash flow information - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Disclosure Of Cash Flow Information [Abstract]
Interest income received	$ 2,348	$ 1,179

Share-based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Disclosure of terms and conditions of share-based payment arrangement [abstract]

Summary of Options Outstanding

The activities of the options outstanding for the six months ended June 30, 2024 for all stock award plans were as follows:


	Number of Options	Weighted Average Exercise Price Per Share Option
Options outstanding as of December 31, 2023	6,547,621
Granted during the six months ended June 30, 2024	5,933,890	US$1.63
Exercised during the six months ended June 30, 2024	(123,741)	US$0.76
Forfeited during the six months ended June 30, 2024 (i)	(129,438)	US$1.76
Expired during the six months ended June 30, 2024 (i)	(32,603)	US$6.41
Canceled under Zheng Wei Transition Agreement during the six months ended June 30, 2024 (ii)	(568,353)	US$1.73
Options outstanding as of June 30, 2024	11,627,376
Options exercisable as of June 30, 2024	3,814,017

(i) Forfeited options include unvested options forfeited upon employment termination and expired options include vested options which have expired after their exercise period.

(ii) Canceled options under the Zheng Wei Transition Agreement include the unvested stock awards that will be terminated upon Separation Date as set forth in Note 7(ii).

Summary of Key Assumptions for Options Granted

Key assumptions for the options granted for the periods are set forth below:

June 30,

2023

2024

Weighted average exercise price during the period

US$1.25

US$1.63

Grant date share price

US$0.99 ~ US$1.29

US$1.18 ~ US$1.79

Risk-free interest rate

3.6%~4.2%

4.2%~4.8%

Expected volatility

59.6%~60.0%

101.9%~104.3%

Expected life

10 years

Expected early exercise multiple

2.2-2.8

Dividend yield

Nil

Forfeiture rate

*8.5%-12.3%

*5.6%-9.0%

Weighted average fair value of options granted during the period

US$0.72

US$1.23

Summary of Share-based Compensation Expenses

Share-based compensation expenses included in the interim condensed consolidated statements of (loss) / income for the six months ended June 30, 2023 and 2024 were as follows:


	Six Months Ended June 30,
	2023		2024
(In thousands)
Research and development expenses (Note 7)	$	1,093	$	847
Administrative expenses (Note 7)	1,207		992
	$	2,300	$	1,839

Share Capital and Premium (Tables)

6 Months Ended

Jun. 30, 2024

Disclosure of classes of share capital [abstract]

Schedule of Share Capital and Share Premium

The movement in the number of ordinary shares outstanding is as follows:


	Number of ordinary shares	Share capital		Share premium		Total
(In thousands, except share data)
Issued, As of January 1, 2024	57,508,545	$	10	$	628,707	$	628,717
Shares issued for employee share purchase plan ("ESPP")	27,337	—		20		20
Shares issued for stock incentive plan reserve (i)	260,000	—		—		—
Exercise of stock options	—	—		144		144
Issued, As of June 30, 2024	57,795,882	$	10	$	628,871	$	628,881
Less: Treasury shares (i)	(2,541,850)
Outstanding ordinary shares	55,254,032

(i)Shares issued for the employee stock option plan are reserved and included in Treasury shares until the stock options are exercised.

Cash and Cash Equivalents

6 Months Ended

Jun. 30, 2024

Cash and cash equivalents [abstract]

Cash and Cash Equivalents


	December 31,		June 30,
	2023		2024
(In thousands)
Cash
–US$ deposits	$	10,767	$	12,405
–RMB deposits	15,614		14,804
–Australian Dollar deposits	1,309		3,876
Cash equivalents (Note 3)	78,317		79,089
	$	106,007	$	110,174

Cash located in the PRC earns interest at floating rates based on daily bank deposit rates, while deposits in banks outside the PRC are placed in sweep accounts that earn annualized yields up to 4.2%.

Cash denominated in RMB are deposited with banks in the PRC. The conversion of these RMB-denominated balances into foreign currencies and the remittance of funds out of the PRC are subject to the rules and regulations of foreign exchange control promulgated by the PRC government.

Cash equivalents are denominated in US$ and are comprised of short-term, highly liquid investments with original maturities of 90 days or less, such as money market funds, which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Employee Benefit Expenses - Schedule of Employee Benefit Expenses Included in Consolidated Statements of Loss (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Disclosure Of Defined Benefit Plans [Line Items]
Employee benefit expenses	$ 8,290	$ 9,117
Research and development expenses
Disclosure Of Defined Benefit Plans [Line Items]
Employee benefit expenses	4,160	4,953
Administrative expenses
Disclosure Of Defined Benefit Plans [Line Items]
Employee benefit expenses	$ 4,130	$ 4,164