Company: ZLAB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023411
Chunk: 35

Company: Zai Lab Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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MB 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. 

8

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):March 31, 2025December 31, 2024Finished goods33,432 24,063 Raw materials15,317 13,268 Work in progress4,305 2,544 Inventories, net53,054 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 insignificant amounts in the first quarter of 2025 and 2024.

5. Property and Equipment, Net 

The following table presents the components of the Company’s property and equipment, net ($ in thousands):March 31, 2025December 31, 2024Office equipment1,231 1,230 Electronic equipment9,498 9,211 Vehicle196 196 Laboratory equipment20,537 20,516 Manufacturing equipment17,525 17,493 Leasehold improvements11,324 11,306 Building24,084 — Construction in progress4,274 25,129 88,669 85,081 Less: accumulated depreciation(39,015)(37,120)Property and equipment, net49,654 47,961 

Depreciation expense was $2.0 million and $2.2 million in the first quarter of 2025 and 2024, respectively. 

6. Intangible Assets, Net 

The following table presents the components of the Company’s intangible assets, net ($ in thousands):March 31, 2025December 31, 2024Gross Carrying AmountAccumulated AmortizationNet Carrying ValueGross Carrying AmountAccumulated AmortizationNet Carrying ValueFinite-lived intangible assetsCommercial products58,744 (3,953)54,791 57,104 (2,637)54,467 Software4,366 (2,959)1,407 4,360 (2