Company: ZLAB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001704292-25-000024
Chunk: 47

Company: Zai Lab Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 excluded from the calculation of diluted loss per share as their inclusion would have been anti-dilutive.September 30,20252024Share options81,532,890 105,188,950 Non-vested restricted shares25,790,340 32,875,090 

10. Borrowings

The Company has debt arrangements with the Bank of China, SPD Bank, CMB, BOCOM, and Ningbo Bank to support its working capital needs in mainland China. The following table presents the Company’s short-term debt as of September 30, 2025 ($ in thousands): Weighted-average interest rate per annumSeptember 30, 2025Bank of China Working Capital Loans2.42 %68,678 SPD Bank Working Capital Loans2.80 %42,221 China Merchants Bank Working Capital Loans2.85 %42,925 Bank of Communications Working Capital Loans2.75 %42,221 Ningbo Bank Discounted Bills1.60 %6,981 Total short-term debt2.63 %203,026 Bank of China Working Capital Loan FacilityThe Company has an uncommitted facility letter with the Bank of China (Hong Kong) Limited (“BOC HK”) pursuant to which BOC HK will provide standby letters of credit in favor of the Bank of China Pudong Development Zone 

12

Zai Lab Limited Notes to the unaudited condensed consolidated financial statements 

Branch (“BOC Pudong Branch”) for loans of up to $100.0 million, which are or may become payable by the Company’s wholly-owned subsidiary, Zai Lab (Shanghai) Co., Ltd. (“Zai Lab Shanghai”). BOC HK and BOC Pudong Branch are collectively referred to as Bank of China. In accordance with this agreement, the Company also maintained restricted deposits of $100.0 million, which are presented as restricted cash-current on the unaudited condensed consolidated balance sheet, to secure the standby letters of credit.  Each working capital loan has a one-year term and is subject to a floating interest rate, which is subject to adjustment every six months.SPD Bank Working Capital Loan FacilityIn February 2024, the Company entered into a maximum-amount guarantee contract with the Shanghai Pudong Development Bank Co., Ltd. Zhangjiang Hi-Tech Park Sub-Branch (“SPD Bank”) pursuant to which the Company will guarantee working capital loans of up to RMB300.0 million