Company: ZLAB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001704292-25-000024
Chunk: 44

Company: Zai Lab Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 The conversion of these RMB-denominated balances into foreign currencies is subject to the rules and regulations of foreign exchange control promulgated by the Chinese government. 

9

Zai Lab Limited Notes to the unaudited condensed consolidated financial statements 

4. Inventories, Net 

The following table presents the Company’s inventories, net ($ in thousands):September 30, 2025December 31, 2024Finished goods40,640 24,063 Raw materials22,570 13,268 Work in progress3,925 2,544 Inventories, net67,135 39,875 

The Company writes down inventory for any excess or obsolete inventory or when the Company believes that the net realizable value of inventory is less than the carrying value. The Company recorded write-downs in inventory, which were included in cost of product revenue, of $0.6 million and $0.9 million in the three and nine months ended September 30, 2025, respectively, and an insignificant amount and $0.8 million in the three and nine months ended September 30, 2024, respectively. 

5. Property and Equipment, Net 

The following table presents the components of the Company’s property and equipment, net ($ in thousands):September 30, 2025December 31, 2024Office equipment1,242 1,230 Electronic equipment10,225 9,211 Vehicle198 196 Laboratory equipment20,405 20,516 Manufacturing equipment17,637 17,493 Leasehold improvements14,671 11,306 Building24,330 — Construction in progress748 25,129 89,456 85,081 Less: accumulated depreciation(40,588)(37,120)Property and equipment, net48,868 47,961 

Depreciation expense was $2.4 million and $6.7 million in the three and nine months ended September 30, 2025, respectively, and $2.1 million and $6.6 million in the three and nine months ended September 30, 2024, respectively. 

6. Intangible Assets, Net 

The following table presents the components of the Company’s intangible assets, net ($ in thousands):September 30, 2025December 31, 2024Gross Carrying AmountAccumulated AmortizationNet Carrying ValueGross Carrying AmountAcc