Company: ZLAB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023411
Chunk: 65

Company: Zai Lab Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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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):March 31, 2025December 31, 2024Cash 756,089 448,508 Cash equivalents (i)1,174 1,159  757,263 449,667 Denominated in:  US$734,857 429,887 Renminbi (“RMB”) (ii)21,245 18,979 Hong Kong dollar (“HK$”)306 114 Australian dollar (“A$”)521 522 Taiwan dollar (“TW$”)334 165 757,263 449,667 (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. 

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 equipment