operations and business initiatives; (3) the results of our clinical and pre-clinical development of our product candidates; (4) the content and timing of decisions made by the relevant regulatory authorities regarding regulatory approvals of our product candidates; (5) risks related to doing business in China; and (6) other factors identified in our most recent annual and quarterly reports and in other reports we have filed with the U.S. Securities and Exchange Commission $(SEC.UK)$. We anticipate that subsequent events and developments will cause our expectations and assumptions to change, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Our SEC filings can be found on our website at www.zailaboratory.com and on the SEC's website at www.SEC.gov.

 
 
 
Zai Lab Limited Unaudited Condensed Consolidated Balance Sheets (in 
thousands of U.S. dollars ($), except for number of shares and per share 
data) 
 
 
                                             September 30,   December 31, 
                                                  2024            2023 
                                             --------------  ------------- 
Assets 
Current assets 
      Cash and cash equivalents                     616,086        790,151 
      Restricted cash, current                      100,000             -- 
      Short-term investments                             --         16,300 
      Accounts receivable (net of allowance 
       for credit losses of $14 and $17 as 
       of September 30, 2024 and December 
       31, 2023, respectively)                       49,970         59,199 
      Notes receivable                               19,278          6,134 
      Inventories, net                               39,548         44,827 
      Prepayments and other current assets           35,667         22,995 
                                             --------------  ------------- 
Total current assets                                860,549        939,606 
      Restricted cash, non-current                    1,118          1,113 
      Long term investments                           3,153          9,220 
      Prepayments for equipment                          32            111 
      Property and equipment, net                    50,765         53,734 
      Operating lease right-of-use assets            12,833         14,844 
      Land use rights, net                            3,012          3,069 
      Intangible assets, net                         51,669         13,389 
      Long-term deposits                                975          1,209 
      Value added tax recoverable                     1,240             -- 
                                             --------------  ------------- 
Total assets                                        985,346      1,036,295 
                                             ==============  ============= 
Liabilities and shareholders' equity 
Current liabilities 
      Accounts payable                              120,652        112,991 
      Current operating lease liabilities             6,585          7,104 
      Short-term debt                               112,994             -- 
      Other current liabilities                      46,084         82,972 
                                             --------------  ------------- 
Total current liabilities                           286,315        203,067 
                                             --------------  ------------- 
      Deferred income                                24,924         28,738 
      Non-current operating lease 
       liabilities                                    6,113          8,047 
      Other non-current liabilities                     325            325 
                                             --------------  ------------- 
Total liabilities                                   317,677        240,177 
                                             --------------  ------------- 
Commitments and contingencies 
Shareholders' equity 
            Ordinary shares (par value of 
             $0.000006 per share; 
             5,000,000,000 shares 
             authorized; 989,268,370 and 
             977,151,270 shares issued as 
             of September 30, 2024 and 
             December 31, 2023, 
             respectively; 984,356,170 and 
             972,239,070 shares outstanding 
             as of September 30, 2024 and 
             December 31, 2023, 
             respectively)                                6              6 
            Additional paid-in capital            3,031,628      2,975,302 
            Accumulated deficit                 (2,371,399)    (2,195,980) 
            Accumulated other comprehensive 
             income                                  28,270         37,626 
            Treasury Stock (at cost, 
             4,912,200 shares as of both 
             September 30, 2024 and 
             December 31, 2023)                    (20,836)       (20,836) 
                                             --------------  ------------- 
Total shareholders' equity                          667,669        796,118 
                                             --------------  ------------- 
Total liabilities and shareholders' equity          985,346      1,036,295 
                                             ==============  ============= 
 
 
 
 
Zai Lab Limited 
 Unaudited Condensed Consolidated Statements of Operations 
 (in thousands of $, except for number of shares and per share data) 
 
 
                           Three Months Ended        Nine Months Ended 
                              September 30,             September 30, 
                        ------------------------  ------------------------ 
                           2024         2023         2024         2023 
Revenues 
      Product revenue, 
       net                  101,847       69,228      289,102      200,889 
      Collaboration 
       revenue                  418           --          816           -- 
                        -----------  -----------  -----------  ----------- 
Total revenues              102,265       69,228      289,918      200,889 
Expenses 
      Cost of product 
       revenue             (36,569)     (25,479)    (105,336)     (70,579) 
      Cost of 
       collaboration 
       revenue                (348)           --        (433)           -- 
      Research and 
       development         (65,982)     (58,767)    (182,252)    (183,920) 
      Selling, 
       general, and 
       administrative      (67,219)     (68,552)    (216,123)    (198,982) 
Gain on sale of 
 intellectual 
 property                        --           --           --       10,000 
                        -----------  -----------  -----------  ----------- 
Loss from operations       (67,853)     (83,570)    (214,226)    (242,592) 
      Interest income         9,029        9,172       28,017       29,493 
      Interest expense        (745)           --      (1,350)           -- 
      Foreign currency 
       gains (losses)        14,457        4,852        8,281     (26,315) 
      Other income, 
       net                    3,441          394        3,859          223 
                        -----------  -----------  -----------  ----------- 
Loss before income tax     (41,671)     (69,152)    (175,419)    (239,191) 
Income tax expense               --           --           --           -- 
                        -----------  -----------  -----------  ----------- 
Net loss                   (41,671)     (69,152)    (175,419)    (239,191) 
                        ===========  ===========  ===========  =========== 
Loss per share - basic 
 and diluted                 (0.04)       (0.07)       (0.18)       (0.25) 
Weighted-average 
 shares used in 
 calculating net loss 
 per ordinary share - 
 basic and diluted      981,687,390  968,767,730  976,941,030  965,060,570 
 
 
 
 
Zai Lab Limited 
 Unaudited Condensed Consolidated Statements of Comprehensive Loss 
 (in thousands of $) 
 
 
                             Three Months Ended    Nine Months Ended 
                                September 30,         September 30, 
                            --------------------  -------------------- 
                              2024       2023       2024       2023 
Net loss                     (41,671)   (69,152)  (175,419)  (239,191) 
Other comprehensive 
income, net of tax of 
nil: 
      Foreign currency 
       translation 
       adjustments           (14,503)    (4,228)    (9,356)     22,267 
                            ---------  ---------  ---------  --------- 
Comprehensive loss           (56,174)   (73,380)  (184,775)  (216,924) 
 
 
 
 
Zai Lab Limited 
 Non-GAAP Measures 
 ($ in thousands) 
 
Growth on a Constant Exchange Rate $(CER.UK)$ Basis 
 
              Three Months Ended   Year over Year %  Nine Months Ended     Year over Year % 
               September 30,        Growth            September 30,         Growth 
              -------------------  ----------------  --------------------  ----------------- 
                                      As       At                             As 
                2024      2023     reported   CER*     2024       2023     reported  At CER* 
              --------  ---------  --------  ------  ---------  ---------  --------  ------- 
Product 
 revenue, 
 net           101,847     69,228       47%     46%    289,102    200,889       44%      45% 
Loss from 
 operations   (67,853)   (83,570)     (19)%   (20)%  (214,226)  (242,592)     (12)%    (11)% 
 

* The growth rates at CER were calculated assuming the same foreign currency exchange rates were in effect for the current and prior year periods.

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