Company: ZLAB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038548
Chunk: 78

Company: Zai Lab Ltd
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 a weighted-average period of 2.52 years and 2.46 years, respectively.  

14. License and Collaboration Agreements

The Company has entered into various license and collaboration agreements with third parties to develop and commercialize product candidates. Significant License and Collaboration ArrangementsFor a description of the material terms of the Company’s significant license and collaboration agreements, see Note 16 of the 2024 Annual Report. In the six months ended June 30, 2025, the Company did not enter into any new significant license or collaboration agreements or incur any milestone fees under our existing significant license and collaboration agreements. Other License and Collaboration Arrangements That Are Not Individually Significant

The Company recorded upfront fees of $20.0 million into research and development expenses in the six months ended June 30, 2025 for license and collaboration agreements that are not individually significant. 

15. Other Income (Expense), Net 

The following table presents the Company’s other income, net ($ in thousands):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Government grants3,850 534 3,866 3,325 Loss on equity investments with readily determinable fair value— (10,035)(1,912)(5,147)Other miscellaneous (loss) gain(100)558 1,599 2,240 Total3,750 (8,943)3,553 418 

16. Restricted Net Assets 

Chinese laws and regulations restrict the Company’s ability to receive distributions of funds from its Chinese subsidiaries. For example, relevant Chinese laws and regulations permit payments of dividends by the Company’s Chinese subsidiaries only out of its retained earnings, if any, as determined in accordance with Chinese accounting standards and regulations.  In accordance with the Company Law of the People’s Republic of China, each Chinese subsidiary of the Company is required to provide statutory reserves of at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s Chinese statutory accounts. The reserves can only be used for specific purposes and are not distributable as cash dividends. Foreign exchange and other regulations in mainland China may further restrict the Company’s Chinese subsidiaries from transferring out funds in the form of dividends, loans, and advances.No appropriation to statutory reserves was made in the three and six months ended June 30, 2025 and 2024 because the Chinese subsidiaries had substantial losses during such periods. The Company