Company: ZLAB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038548
Chunk: 38

Company: Zai Lab Ltd
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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)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’s property and equipment, net ($ in thousands):June 30, 2025December 31, 2024Office equipment1,237 1,230 Electronic equipment9,279 9,211 Vehicle196 196 Laboratory equipment20,444 20,516 Manufacturing equipment17,573 17,493 Leasehold improvements14,560 11,306 Building24,150 — Construction in progress1,242 25,129 88,681 85,081 Less: accumulated depreciation(38,521)(37,120)Property and equipment, net50,160 47,961 

Depreciation expense was $2.3 million and $4.3 million in the three and six months ended June 30, 2025, respectively, and $2.2 million and $4