Company: ZLAB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038548
Chunk: 71

Company: Zai Lab Ltd
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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 beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and expects to adopt it for the year ending December 31, 2027.For additional information on the Company’s significant accounting policies, refer to the notes to the consolidated financial statements in the 2024 Annual Report.

3. Cash and Cash Equivalents 

The following table presents the Company’s cash and cash equivalents ($ in thousands):June 30, 2025December 31, 2024Cash 730,971 448,508 Cash equivalents (i)1,188 1,159  732,159 449,667 Denominated in:  US$718,384 429,887 Renminbi (“RMB”) (ii)12,167 18,979 Hong Kong dollar (“HK$”)606 114 Australian dollar (“A$”)536 522 Taiwan dollar (“TW$”)466 165 732,159 449,667 (i)Cash equivalents represent short-term and highly liquid investments in a money market fund. 

(ii)Certain cash and bank balances denominated in RMB were deposited with banks in mainland China. 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):June 30, 2025December 31, 2024Finished goods36,534 24,063 Raw materials21,232 13,268 Work in progress3,934 2,544 Inventories, net61,700 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 $0.3 million in both the three and six months ended June 30, 2025 and $0.7 million and $0.8 million in the three and six months ended June 30, 2024, respectively. 

5. Property and Equipment, Net 

The following table presents the components of the Company