x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Cayman Islands | 98-1144595 | |||||
(State or Incorporation or | (I.R.S. Employer Identification No.) |
4560 Jinke Road Bldg. 1, Fourth Floor, Shanghai | 201210 | |||||
314 Main Street 4th Floor, Suite 100 Cambridge, MA, USA | 02142 | |||||
(Address of | (Zip Code) | |||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||||
American Depositary Shares, each representing | ||||||||||||||||
10 Ordinary Shares, par value | ZLAB | The Nasdaq Global Market | ||||||||||||||
Ordinary Shares, par value $0.000006 per share* | 9688 | The Stock Exchange of Hong Kong Limited |
Large accelerated filer | x | Accelerated filer | ||||||||||||||
Non-accelerated filer | o | Smaller reporting company | ||||||||||||||
Emerging growth company | o |
Page | ||||||||||||
Notes | March 31, 2024 | December 31, 2023 | |||||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | 3 | 650,780 | 790,151 | ||||||||||||||
Restricted cash, current | 100,000 | — | |||||||||||||||
Short-term investments | — | 16,300 | |||||||||||||||
Accounts receivable (net of allowance for credit losses of $18 and $17 as of March 31, 2024 and December 31, 2023, respectively) | 60,422 | 59,199 | |||||||||||||||
Notes receivable | 15,363 | 6,134 | |||||||||||||||
Inventories, net | 4 | 37,851 | 44,827 | ||||||||||||||
Prepayments and other current assets | 24,224 | 22,995 | |||||||||||||||
Total current assets | 888,640 | 939,606 | |||||||||||||||
Restricted cash, non-current | 1,114 | 1,113 | |||||||||||||||
Long term investments | 14,109 | 9,220 | |||||||||||||||
Prepayments for equipment | 89 | 111 | |||||||||||||||
Property and equipment, net | 5 | 52,386 | 53,734 | ||||||||||||||
Operating lease right-of-use assets | 15,187 | 14,844 | |||||||||||||||
Land use rights, net | 3,034 | 3,069 | |||||||||||||||
Intangible assets, net | 12,398 | 13,389 | |||||||||||||||
Long-term deposits | 1,480 | 1,209 | |||||||||||||||
Total assets | 988,437 | 1,036,295 | |||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable | 88,121 | 112,991 | |||||||||||||||
Current operating lease liabilities | 7,536 | 7,104 | |||||||||||||||
Short-term debts | 9 | 48,273 | — | ||||||||||||||
Other current liabilities | 10 | 48,176 | 82,972 | ||||||||||||||
Total current liabilities | 192,106 | 203,067 | |||||||||||||||
Deferred income | 26,297 | 28,738 | |||||||||||||||
Non-current operating lease liabilities | 7,540 | 8,047 | |||||||||||||||
Other non-current liabilities | 325 | 325 | |||||||||||||||
Total liabilities | 226,268 | 240,177 | |||||||||||||||
Commitments and contingencies (Note 15) | |||||||||||||||||
Shareholders’ equity | |||||||||||||||||
Ordinary shares (par value of $0.000006 per share; 5,000,000,000 shares authorized; 978,197,710 and 977,151,270 shares issued as of March 31, 2024 and December 31, 2023, respectively; 973,285,510 and 972,239,070 shares outstanding as of March 31, 2024 and December 31, 2023, respectively) | 6 | 6 | |||||||||||||||
Additional paid-in capital | 2,993,282 | 2,975,302 | |||||||||||||||
Accumulated deficit | (2,249,451) | (2,195,980) | |||||||||||||||
Accumulated other comprehensive income | 39,168 | 37,626 | |||||||||||||||
Treasury Stock (at cost, 4,912,200 shares as of both March 31, 2024 and December 31, 2023) | (20,836) | (20,836) | |||||||||||||||
Total shareholders’ equity | 762,169 | 796,118 | |||||||||||||||
Total liabilities and shareholders’ equity | 988,437 | 1,036,295 |
As of | ||||||||||||
March 31, 2021 | December 31, 2020 | |||||||||||
Notes | $ | $ | ||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | 3 | 1,013,420 | 442,116 | |||||||||
Short-term investments | 5 | — | 744,676 | |||||||||
Accounts receivable (net of allowance of $2 and $1 as of March 31, 2021 and 2020, respectively) | 8,815 | 5,165 | ||||||||||
Inventories | 6 | 12,629 | 13,144 | |||||||||
Prepayments and other current assets | 14,321 | 10,935 | ||||||||||
Total current assets | 1,049,185 | 1,216,036 | ||||||||||
Restricted cash, non-current | 4 | 743 | 743 | |||||||||
Investments in equity investees | 7 | 1,473 | 1,279 | |||||||||
Prepayments for equipment | 244 | 274 | ||||||||||
Property and equipment, net | 8 | 29,016 | 29,162 | |||||||||
Operating lease right-of-use | 16,652 | 17,701 | ||||||||||
Land use rights, net | 7,784 | 7,908 | ||||||||||
Intangible assets, net | 1,585 | 1,532 | ||||||||||
Long term deposits | 910 | 862 | ||||||||||
Value added tax recoverable | 23,698 | 22,141 | ||||||||||
Total assets | 1,131,290 | 1,297,638 | ||||||||||
Liabilities and shareholders’ equity | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | 41,415 | 62,641 | ||||||||||
Current operating lease liabilities | 5,602 | 5,206 | ||||||||||
Other current liabilities | 11 | 45,639 | 30,196 | |||||||||
Total current liabilities | 92,656 | 98,043 | ||||||||||
Deferred income | 16,657 | 16,858 | ||||||||||
Non-current operating lease liabilities | 12,307 | 13,392 | ||||||||||
Total liabilities | 121,620 | 128,293 | ||||||||||
Commitments and contingencies (Note 18) | 0 | 0 | ||||||||||
Shareholders’ equity | ||||||||||||
Ordinary shares (par value of $0.00006 per share; 500,000,000 shares authorized, 88,519,172 and 74,666,725 shares issued and outstanding as of March 31, 2021 and 2020, respectively) | 5 | 5 | ||||||||||
Additional paid-in capital | 1,967,802 | 1,897,467 | ||||||||||
Accumulated deficit | (946,513 | ) | (713,603 | ) | ||||||||
Accumulated other comprehensive loss | 15 | (11,624 | ) | (14,524 | ) | |||||||
Total shareholders’ equity | 1,009,670 | 1,169,345 | ||||||||||
Total liabilities and shareholders’ equity | 1,131,290 | 1,297,638 | ||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
Notes | 2024 | 2023 | |||||||||||||||||||||||||||
Revenue | 6 | 87,149 | 62,797 | ||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Cost of sales | (33,619) | (21,337) | |||||||||||||||||||||||||||
Research and development | (54,645) | (48,472) | |||||||||||||||||||||||||||
Selling, general, and administrative | (69,194) | (62,510) | |||||||||||||||||||||||||||
Loss from operations | (70,309) | (69,522) | |||||||||||||||||||||||||||
Interest income | 9,658 | 10,232 | |||||||||||||||||||||||||||
Interest expenses | (113) | — | |||||||||||||||||||||||||||
Foreign currency (losses) gains | (2,068) | 8,912 | |||||||||||||||||||||||||||
Other income, net | 13 | 9,361 | 1,234 | ||||||||||||||||||||||||||
Loss before income tax | (53,471) | (49,144) | |||||||||||||||||||||||||||
Income tax expense | 7 | — | — | ||||||||||||||||||||||||||
Net loss | (53,471) | (49,144) | |||||||||||||||||||||||||||
Loss per share - basic and diluted | 8 | (0.05) | (0.05) | ||||||||||||||||||||||||||
Weighted-average shares used in calculating net loss per ordinary share - basic and diluted | 973,145,760 | 961,444,780 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Notes | $ | $ | |||||||||
Revenue | 9 | 20,103 | 8,218 | ||||||||
Expenses: | |||||||||||
Cost of sales | (7,505 | ) | (2,084 | ) | |||||||
Research and development | (203,852 | ) | (33,742 | ) | |||||||
Selling, general and administrative | (35,838 | ) | (18,714 | ) | |||||||
Loss from operations | (227,092 | ) | (46,322 | ) | |||||||
Interest income | 214 | 1,655 | |||||||||
Interest expenses | — | (59 | ) | ||||||||
Other expense net, | (6,227 | ) | (3,125 | ) | |||||||
Loss before income tax and share of gain (loss) from equity method investment | (233,105 | ) | (47,851 | ) | |||||||
Income tax expense | 10 | 0— | — | ||||||||
Share of gain (loss) from equity method investment | 195 | (137 | ) | ||||||||
Net loss | (232,910 | ) | (47,988 | ) | |||||||
Net loss attributable to ordinary shareholders | (232,910 | ) | (47,988 | ) | |||||||
Loss per share - basic and diluted | 12 | (2.64 | ) | (0.66 | ) | ||||||
Weighted-average shares used in calculating net loss per ordinary share - basic and diluted | 88,374,928 | 72,956,538 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
$ | $ | |||||||
Net loss | (232,910 | ) | (47,988 | ) | ||||
Other comprehensive income, net of tax of NaN: | ||||||||
Foreign currency translation adjustments | 2,900 | 3,539 | ||||||
Comprehensive loss | (230,010 | ) | (44,449 | ) | ||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||
Net loss | (53,471) | (49,144) | |||||||||||||||||||||||||||
Other comprehensive income, net of tax of nil: | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | 1,542 | (8,413) | |||||||||||||||||||||||||||
Comprehensive loss | (51,929) | (57,557) |
Ordinary Shares | Additional paid in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | 977,151,270 | 6 | 2,975,302 | (2,195,980) | 37,626 | (4,912,200) | (20,836) | 796,118 | |||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares upon vesting of restricted shares | 1,046,440 | 0 | 0 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 17,980 | — | — | — | — | 17,980 | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (53,471) | — | — | — | (53,471) | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | 1,542 | — | — | 1,542 | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | 978,197,710 | 6 | 2,993,282 | (2,249,451) | 39,168 | (4,912,200) | (20,836) | 762,169 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 962,455,850 | 6 | 2,893,120 | (1,861,360) | 25,685 | (2,236,280) | (11,856) | 1,045,595 | |||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares upon vesting of restricted shares | 732,040 | 0 | 0 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Exercise of share options | 4,009,460 | 0 | 1,673 | — | — | — | — | 1,673 | |||||||||||||||||||||||||||||||||||||||
Receipt of shares netted to satisfy tax withholding obligations related to share-based compensation | — | — | — | — | — | (1,272,330) | (5,130) | (5,130) | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 16,661 | — | — | — | — | 16,661 | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (49,144) | — | — | — | (49,144) | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | (8,413) | — | — | (8,413) | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | 967,197,350 | 6 | 2,911,454 | (1,910,504) | 17,272 | (3,508,610) | (16,986) | 1,001,242 | |||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities | |||||||||||
Net loss | (53,471) | (49,144) | |||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Allowance for credit losses | 1 | 1 | |||||||||
Inventory write-down | 37 | 377 | |||||||||
Depreciation and amortization expenses | 3,012 | 2,657 | |||||||||
Amortization of deferred income | (840) | (582) | |||||||||
Share-based compensation | 17,980 | 16,661 | |||||||||
Gain from fair value changes of equity investment with readily determinable fair value | (4,889) | (441) | |||||||||
Losses on disposal of property and equipment | 407 | 64 | |||||||||
Noncash lease expenses | 2,069 | 2,464 | |||||||||
Debt issuance costs | 700 | — | |||||||||
Foreign currency remeasurement impact | 2,068 | (8,912) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (1,328) | (2,852) | |||||||||
Notes receivable | (9,239) | (8,599) | |||||||||
Inventories | 6,818 | (6,686) | |||||||||
Prepayments and other current assets | (1,253) | (6,470) | |||||||||
Long-term deposits | (271) | 72 | |||||||||
Accounts payable | (13,370) | (327) | |||||||||
Other current liabilities | (34,204) | (15,593) | |||||||||
Operating lease liabilities | (2,783) | (2,141) | |||||||||
Deferred income | (1,550) | 9,839 | |||||||||
Other non-current liabilities | — | 325 | |||||||||
Net cash used in operating activities | (90,106) | (69,287) | |||||||||
Cash flows from investing activities | |||||||||||
Purchases of short-term investments | — | (100,000) | |||||||||
Proceeds from maturity of short-term investment | 16,300 | 49,450 | |||||||||
Purchases of property and equipment | (974) | (3,513) | |||||||||
Proceeds from the sale of property and equipment | — | 112 | |||||||||
Acquisition of intangible assets | (12,034) | (3) | |||||||||
Net cash provided by (used in) investing activities | 3,292 | (53,954) | |||||||||
Cash flows from financing activities | |||||||||||
Proceeds from short-term debts | 48,248 | — | |||||||||
Payments of debt issuance costs | (700) | — | |||||||||
Proceeds from exercises of stock options | — | 1,197 | |||||||||
Taxes paid related to settlement of equity awards | — | (5,083) | |||||||||
Net cash provided by (used in) financing activities | 47,548 | (3,886) | |||||||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (104) | (1,299) | |||||||||
Net decrease in cash, cash equivalents and restricted cash | (39,370) | (128,426) | |||||||||
Cash, cash equivalents and restricted cash - beginning of period | 791,264 | 1,009,273 | |||||||||
Cash, cash equivalents and restricted cash - end of period | 751,894 | 880,847 | |||||||||
Supplemental disclosure on non-cash investing and financing activities | |||||||||||
Payables for purchase of property and equipment | 2,481 | 4,232 | |||||||||
Payables for acquisition of intangible assets | 78 | 268 | |||||||||
Receivables for stock option exercise under equity incentive plans | — | 476 | |||||||||
Right-of-use asset acquired under operating leases | 2,395 | 2,662 | |||||||||
Receivables for disposal of property and equipment | — | 10 | |||||||||
Supplemental disclosure of cash flow information | |||||||||||
Cash paid for interest | 45 | — | |||||||||
Ordinary shares | Additional | Accumulated other | ||||||||||||||||||||||
Number of Shares | Amount | paid in capital | Accumulated deficit | comprehensive (loss) income | Total | |||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||
Balance at December 31, 2020 | 87,811,026 | 5 | 1,897,467 | (713,603 | ) | (14,524 | ) | 1,169,345 | ||||||||||||||||
Issuance of ordinary shares upon vesting of restricted shares | 81,600 | 0 | 0 | — | — | 0 | ||||||||||||||||||
Exercise of shares option | 58,364 | 0 | 702 | — | — | 702 | ||||||||||||||||||
Issuance of ordinary shares in connection with collaboration and license arrangement (Note 16) | 568,182 | 0 | 62,250 | — | — | 62,250 | ||||||||||||||||||
Issuance cost adjustment for secondary listing | — | — | 65 | — | — | 65 | ||||||||||||||||||
Share-based compensation | — | — | 7,318 | — | — | 7,318 | ||||||||||||||||||
Net loss | — | — | — | (232,910 | ) | — | (232,910 | ) | ||||||||||||||||
Foreign currency translation | — | — | — | — | 2,900 | 2,900 | ||||||||||||||||||
Balance at March 31, 2021 | 88,519,172 | 5 | 1,967,802 | (946,513 | ) | (11,624 | ) | 1,009,670 | ||||||||||||||||
Balance at December 31, 2019 | 68,237,247 | 4 | 734,734 | (444,698 | ) | 4,620 | 294,660 | |||||||||||||||||
Issuance of ordinary shares upon vesting of restricted shares | 80,200 | 0 | 0 | — | — | 0 | ||||||||||||||||||
Exercise of shares option | 49,278 | 0 | 346 | — | — | 346 | ||||||||||||||||||
Issuance of ordinary shares upon follow-on public offering, net of issuance cost of $740 | 6,300,000 | 0 | 280,568 | — | — | 280,568 | ||||||||||||||||||
Share-based compensation | — | — | 6,463 | — | — | 6,463 | ||||||||||||||||||
Net loss | — | — | — | (47,988 | ) | — | (47,988 | ) | ||||||||||||||||
Foreign currency translation | — | — | — | — | 3,539 | 3,539 | ||||||||||||||||||
Balance at March 31, 2020 | 74,666,725 | 4 | 1,022,111 | (492,686 | ) | 8,159 | 537,588 | |||||||||||||||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
$ | $ | |||||||
Operating activities | ||||||||
Net loss | (232,910 | ) | (47,988 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Allowance for doubtful accounts | 1 | 1 | ||||||
Inventory write-down | 14 | — �� | ||||||
Depreciation and amortization expenses | 1,448 | 1,070 | ||||||
Amortization of deferred income | (78 | ) | (78 | ) | ||||
Share-based compensation | 7,318 | 6,463 | ||||||
Noncash research and development expenses | 62,250 | — | ||||||
Share of (gain) loss from equity method investment | (195 | ) | 137 | |||||
Loss on disposal of property and equipment | 4 | — | ||||||
Noncash lease expenses | 1,322 | 1,062 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (3,651 | ) | (296 | ) | ||||
Inventories | 502 | (45 | ) | |||||
Prepayments and other current assets | (3,386 | ) | (1,375 | ) | ||||
Long term deposits | (47 | ) | (349 | ) | ||||
Value added tax recoverable | (1,558 | ) | (1,156 | ) | ||||
Accounts payable | (21,226 | ) | 4,495 | |||||
Other current liabilities | 21,707 | (1,408 | ) | |||||
Operating lease liabilities | (893 | ) | (663 | ) | ||||
Deferred income | (122 | ) | 289 | |||||
Net cash used in operating activities | (169,500 | ) | (39,841 | ) | ||||
Cash flows from investing activities: | ||||||||
Proceeds from maturity of short-term investments | 743,902 | 50,000 | ||||||
Purchase of property and equipment | (1,683 | ) | (1,043 | ) | ||||
Purchase of intangible assets | (214 | ) | (5 | ) | ||||
Net cash used in investing activities | 742,005 | 48,952 | ||||||
Cash flows from financing activities: | ||||||||
Repayment of short-term borrowings | — | (1,430 | ) | |||||
Proceeds from exercises of stock options | 702 | 346 | ||||||
Proceeds from issuance of ordinary shares upon public offerings | — | 281,295 | ||||||
Payment of public offering costs | (973 | ) | (727 | ) | ||||
Net cash (used in) provided by financing activities | (271 | ) | 279,484 | |||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (930 | ) | (947 | ) | ||||
Net increase in cash, cash equivalents and restricted cash | 571,304 | 287,648 | ||||||
Cash, cash equivalents and restricted cash - beginning of period | 442,859 | 76,442 | ||||||
Cash, cash equivalents and restricted cash - end of period | 1,014,163 | 364,090 | ||||||
Supplemental disclosure on non-cash investing and financing activities: | ||||||||
Payables for purchase of property and equipment | 439 | 280 | ||||||
Payables for intangible assets | 26 | 11 | ||||||
Payables for public offering costs | 26 | — | ||||||
Supplemental disclosure of cash flow information: | ||||||||
Cash and cash equivalents | 1,013,420 | 363,580 | ||||||
Restricted cash, non-current | 743 | 510 | ||||||
Total cash and cash equivalents and restricted cash | 1,014,163 | 364,090 | ||||||
Interest paid | — | 67 |
As of | ||||||||
March 31, 2021 | December 31, 2020 | |||||||
$ | $ | |||||||
Cash at bank and in hand | 1,012,587 | 441,283 | ||||||
Cash equivalents | 833 | 833 | ||||||
1,013,420 | 442,116 | |||||||
Denominated in: | ||||||||
US$ | 186,078 | 297,813 | ||||||
RMB (note (i)) | 37,732 | 23,898 | ||||||
Hong Kong dollar (“HK$”) | 789,029 | 119,695 | ||||||
Australian dollar (“A$”) | 581 | 710 | ||||||
1,013,420 | 442,116 | |||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Cash | 649,666 | 789,051 | |||||||||
Cash equivalents (i) | 1,114 | 1,100 | |||||||||
650,780 | 790,151 | ||||||||||
Denominated in: | |||||||||||
US$ | 630,583 | 762,436 | |||||||||
Renminbi (“RMB”) (ii) | 17,878 | 25,093 | |||||||||
Hong Kong dollar (“HK$”) | 1,513 | 1,974 | |||||||||
Australian dollar (“A$”) | 557 | 587 | |||||||||
Taiwan dollar (“TW$”) | 249 | 61 | |||||||||
650,780 | 790,151 |
March 31, 2024 | December 31, 2023 | ||||||||||
Finished goods | 19,076 | 22,702 | |||||||||
Raw materials | 16,675 | 17,655 | |||||||||
Work in progress | 2,100 | 4,470 | |||||||||
Inventories, net | 37,851 | 44,827 |
As of | ||||||||
March 31, 2021 | December 31, 2020 | |||||||
$ | $ | |||||||
Finished goods | 2,703 | 3,041 | ||||||
Raw materials | 9,588 | 10,103 | ||||||
Work in process | 338 | 0 | ||||||
Inventories | 12,629 | 13,144 | ||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Office equipment | 1,046 | 1,047 | |||||||||
Electronic equipment | 9,315 | 9,161 | |||||||||
Vehicle | 198 | 199 | |||||||||
Laboratory equipment | 20,162 | 20,140 | |||||||||
Manufacturing equipment | 17,658 | 17,680 | |||||||||
Leasehold improvements | 11,361 | 11,371 | |||||||||
Construction in progress | 24,834 | 24,272 | |||||||||
84,574 | 83,870 | ||||||||||
Less: accumulated depreciation | (32,188) | (30,136) | |||||||||
Property and equipment, net | 52,386 | 53,734 |
As of | ||||||||
March 31, 2021 | December 31, 2020 | |||||||
$ | $ | |||||||
Office equipment | 428 | 430 | ||||||
Electronic equipment | 2,876 | 2,646 | ||||||
Vehicle | 194 | 143 | ||||||
Laboratory equipment | 12,357 | 11,933 | ||||||
Manufacturing equipment | 12,116 | 12,198 | ||||||
Leasehold improvements | 9,642 | 9,641 | ||||||
Construction in progress | 2,915 | 2,423 | ||||||
40,528 | 39,414 | |||||||
Less: accumulated depreciation | (11,512 | ) | (10,252 | ) | ||||
Property and equipment, net | 29,016 | 29,162 | ||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Product revenue - gross | 93,112 | 71,212 | |||||||||||||||||||||
Less: Rebates and sales returns | (5,963) | (8,415) | |||||||||||||||||||||
Product revenue - net | 87,149 | 62,797 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
$ | $ | |||||||
Product revenue - gross | 46,555 | 8,937 | ||||||
Less: Rebate | (26,452 | ) | (719 | ) | ||||
Product revenue - net | 20,103 | 8,218 | ||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
ZEJULA | 45,501 | 42,680 | |||||||||||||||||||||
OPTUNE | 12,480 | 13,342 | |||||||||||||||||||||
QINLOCK | 6,093 | 1,306 | |||||||||||||||||||||
NUZYRA | 9,913 | 5,469 | |||||||||||||||||||||
VYVGART | 13,162 | — | |||||||||||||||||||||
Product revenue - net | 87,149 | 62,797 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
$ | $ | |||||||
ZEJULA | 12,606 | 6,345 | ||||||
Optune | 7,130 | 1,873 | ||||||
Others | 367 | — | ||||||
Total product revenue - net | 20,103 | 8,218 | ||||||
As of | ||||||||
March 31, 2021 | December 31, 2020 | |||||||
$ | $ | |||||||
Payroll | 7,694 | 13,694 | ||||||
Professional service fee | 3,274 | 3,128 | ||||||
Payables for purchase of property and equipment | 439 | 788 | ||||||
Advance from customers | 3,280 | — | ||||||
Accrued rebate to distributors | 23,166 | 7,067 | ||||||
Others (note (i)) | 7,786 | 5,519 | ||||||
Total | 45,639 | 30,196 | ||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net loss | (53,471) | (49,144) | |||||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average number of ordinary shares - basic and diluted | 973,145,760 | 961,444,780 | |||||||||||||||||||||
Net loss per share - basic and diluted | (0.05) | (0.05) |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Numerator: | ||||||||
Net loss attributable to ordinary shareholders | (232,910 | ) | (47,988 | ) | ||||
Denominator: | ||||||||
Weighted average number of ordinary shares- basic and diluted | 88,374,928 | 72,956,538 | ||||||
Net loss per share-basic and diluted | (2.64 | ) | (0.66 | ) | ||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Share options | 104,244,590 | 86,242,060 | |||||||||
Non-vested restricted shares | 29,893,540 | 32,154,670 |
As of | ||||||||
March 31, 2021 | March 31, 2020 | |||||||
Share options | 8,693,274 | 9,903,396 | ||||||
Non-vested restricted shares | 480,010 | 725,068 |
Weighted average interest rate per annum | March 31, 2024 | ||||||||||
Bank of China Working Capital Loan | 2.95 | % | 34,179 | ||||||||
SPD Bank Working Capital Loan | 3.45 | % | 14,094 | ||||||||
Total short-term debts | 3.10 | % | 48,273 |
March 31, 2024 | December 31, 2023 | ||||||||||
Accrued payroll | 11,920 | 33,711 | |||||||||
Accrued professional service fee | 3,478 | 7,520 | |||||||||
Payables for purchase of property and equipment | 2,481 | 2,474 | |||||||||
Accrued rebate to distributors | 20,593 | 16,926 | |||||||||
Tax payables | 6,910 | 16,988 | |||||||||
Other (i) | 2,794 | 5,353 | |||||||||
Total | 48,176 | 82,972 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
$ | $ | |||||||
Selling, general and administrative | 3,259 | 2,744 | ||||||
Research and development | 2,290 | 2,177 | ||||||
Total | 5,549 | 4,921 | ||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Selling, general and administrative | 11,036 | 10,063 | |||||||||||||||||||||
Research and development | 6,944 | 6,598 | |||||||||||||||||||||
Total | 17,980 | 16,661 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
$ | $ | |||||||
Selling, general and administrative | 1,211 | 1,068 | ||||||
Research and development | 558 | 474 | ||||||
Total | 1,769 | 1,542 | ||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Government grants | 2,791 | — | |||||||||||||||||||||
Gain on equity investments with readily determinable fair value | 4,889 | 441 | |||||||||||||||||||||
Others miscellaneous gain | 1,681 | 793 | |||||||||||||||||||||
Total | 9,361 | 1,234 |
Three Months Ended March 31, | Change | |||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue | 87,149 | 62,797 | 24,352 | 39 | % | |||||||||||||||||||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | (33,619) | (21,337) | (12,282) | 58 | % | |||||||||||||||||||||||||||||||||||||||||||||
Research and development | (54,645) | (48,472) | (6,173) | 13 | % | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative | (69,194) | (62,510) | (6,684) | 11 | % | |||||||||||||||||||||||||||||||||||||||||||||
Loss from operations | (70,309) | (69,522) | (787) | 1 | % | |||||||||||||||||||||||||||||||||||||||||||||
Interest income | 9,658 | 10,232 | (574) | (6) | % | |||||||||||||||||||||||||||||||||||||||||||||
Interest expenses | (113) | — | (113) | NM | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency (losses) gains | (2,068) | 8,912 | (10,980) | (123) | % | |||||||||||||||||||||||||||||||||||||||||||||
Other income, net | 9,361 | 1,234 | 8,127 | 659 | % | |||||||||||||||||||||||||||||||||||||||||||||
Loss before income tax | (53,471) | (49,144) | (4,327) | 9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | (53,471) | (49,144) | (4,327) | 9 | % |
Three Months Ended March 31, | Change | |||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||
Product revenue - gross | 93,112 | 71,212 | 21,900 | 31 | % | |||||||||||||||||||||||||||||||||||||||||||||
Less: Rebates and sales returns | (5,963) | (8,415) | 2,452 | (29) | % | |||||||||||||||||||||||||||||||||||||||||||||
Product revenue - net | 87,149 | 62,797 | 24,352 | 39 | % |
(in thousands, except share and per share data) | Three months ended March 31, | |||||||
2021 | 2020 | |||||||
Comprehensive Loss Data: | ||||||||
Revenue | $ | 20,103 | $ | 8,218 | ||||
Expenses: | ||||||||
Cost of sales | (7,505 | ) | (2,084 | ) | ||||
Research and development | (203,852 | ) | (33,742 | ) | ||||
Selling, general and administrative | (35,838 | ) | (18,714 | ) | ||||
Loss from operations | $ | (227,092 | ) | $ | (46,322 | ) | ||
Interest income | 214 | 1,655 | ||||||
Interest expenses | — | (59 | ) | |||||
Other expense, net | (6,227 | ) | (3,125 | ) | ||||
Loss before income tax and share of loss from equity method investment | $ | (233,105 | ) | $ | (47,851 | ) | ||
Income tax expense | — | — | ||||||
Share of gain (loss) from equity method investment | 195 | (137 | ) | |||||
Net loss attributable to ordinary shareholders | $ | (232,910 | ) | $ | (47,988 | ) | ||
Weighted-average shares used in calculating net loss per ordinary share, basic and diluted | 88,374,928 | 72,956,538 | ||||||
Net loss per share, basic and diluted | $ | (2.64 | ) | $ | (0.66 | ) |
Three Months Ended March 31, | Change | |||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||
ZEJULA | 45,501 | 42,680 | 2,821 | 7 | % | |||||||||||||||||||||||||||||||||||||||||||||
OPTUNE | 12,480 | 13,342 | (862) | (6) | % | |||||||||||||||||||||||||||||||||||||||||||||
QINLOCK | 6,093 | 1,306 | 4,787 | 367 | % | |||||||||||||||||||||||||||||||||||||||||||||
NUZYRA | 9,913 | 5,469 | 4,444 | 81 | % | |||||||||||||||||||||||||||||||||||||||||||||
VYVGART | 13,162 | — | 13,162 | NM | ||||||||||||||||||||||||||||||||||||||||||||||
Total product revenue, net | 87,149 | 62,797 | 24,352 | 39 | % |
(in thousands) | Three months ended March 31, | |||||||||||||||
2021 | % | 2020 | % | |||||||||||||
ZEJULA | $ | 12,606 | 62.7 | $ | 6,345 | 77.2 | ||||||||||
Optune | 7,130 | 35.5 | 1,873 | 22.8 | ||||||||||||
Others | 367 | 1.8 | — | — | ||||||||||||
Total product revenue—Net | $ | 20,103 | 100.0 | $ | 8,218 | 100.0 | ||||||||||
Three Months Ended March 31, | Change | |||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||
Personnel compensation and related costs | 28,008 | 28,655 | (647) | (2) | % | |||||||||||||||||||||||||||||||||||||||||||||
Licensing fees | — | 1,000 | (1,000) | (100) | % | |||||||||||||||||||||||||||||||||||||||||||||
CROs/CMOs/Investigators expenses | 19,904 | 12,439 | 7,465 | 60 | % | |||||||||||||||||||||||||||||||||||||||||||||
Other costs | 6,733 | 6,378 | 355 | 6 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total | 54,645 | 48,472 | 6,173 | 13 | % |
(in thousands) | Three months ended March 31, | |||||||||||||||
2021 | % | 2020 | % | |||||||||||||
Research and development expenses: | ||||||||||||||||
Personnel compensation and related costs | $ | 12,697 | 6.2 | $ | 10,004 | 29.6 | ||||||||||
Licensing fees | 171,282 | 84.0 | 9,240 | 27.4 | ||||||||||||
Payment to CROs/CMOs/Investigators | 15,526 | 7.6 | 9,830 | 29.1 | ||||||||||||
Other costs | 4,347 | 2.2 | 4,668 | 13.9 | ||||||||||||
Total | $ | 203,852 | 100.0 | $ | 33,742 | 100.0 | ||||||||||
(in thousands) | Three months ended March 31, | |||||||||||||||||||||||||||||
2021 | % | 2020 | % | |||||||||||||||||||||||||||
Research and development expenses: | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2024 | ||||||||||||||||||||||||||||||
2024 | ||||||||||||||||||||||||||||||
2024 | ||||||||||||||||||||||||||||||
Clinical programs | ||||||||||||||||||||||||||||||
Clinical programs | ||||||||||||||||||||||||||||||
Clinical programs | $ | 186,256 | 91.4 | $ | 20,332 | 60.3 | ||||||||||||||||||||||||
Pre-clinical programs | 2,500 | 1.2 | 688 | 2.0 | ||||||||||||||||||||||||||
Pre-clinical programs | ||||||||||||||||||||||||||||||
Pre-clinical programs | ||||||||||||||||||||||||||||||
Unallocated research and development expenses | 15,096 | 7.4 | 12,722 | 37.7 | ||||||||||||||||||||||||||
Unallocated research and development expenses | ||||||||||||||||||||||||||||||
Unallocated research and development expenses | ||||||||||||||||||||||||||||||
Total | $ | 203,852 | 100.0 | $ | 33,742 | 100.0 | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||
Total |
Three Months Ended March 31, | Change | |||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||
Personnel compensation and related costs | 45,894 | 40,914 | 4,980 | 12 | % | |||||||||||||||||||||||||||||||||||||||||||||
Professional service fees | 4,103 | 8,555 | (4,452) | (52) | % | |||||||||||||||||||||||||||||||||||||||||||||
Other costs | 19,197 | 13,041 | 6,156 | 47 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total | 69,194 | 62,510 | 6,684 | 11 | % |
(in thousands) | Three months ended March 31, | |||||||||||||||
2021 | % | 2020 | % | |||||||||||||
Selling, General and Administrative Expenses: | ||||||||||||||||
Personnel compensation and related costs | $ | 23,412 | 65.3 | $ | 13,042 | 69.7 | ||||||||||
Professional service fees | 3,583 | 10.0 | 2,027 | 10.8 | ||||||||||||
Other costs | 8,843 | 24.7 | 3,645 | 19.5 | ||||||||||||
Total | $ | 35,838 | 100.0 | $ | 18,714 | 100.0 | ||||||||||
(in thousands) | Three months ended March 31, | |||||||
2021 | 2020 | |||||||
Net cash used in operating activities | $ | (169,500 | ) | $ | (39,841 | ) | ||
Net cash provided by investing activities | 742,005 | 48,952 | ||||||
Net cash (used in) provided by financing activities | (271 | ) | 279,484 | |||||
Effect of foreign exchange rate changes | (930 | ) | (947 | ) | ||||
Net increases in cash, cash equivalents and restricted cash | $ | 571,304 | $ | 287,648 | ||||
Three Months Ended March 31, | Change | |||||||||||||||||||
2024 | 2023 | $ | ||||||||||||||||||
Net cash used in operating activities | (90,106) | (69,287) | (20,819) | |||||||||||||||||
Net cash provided by (used in) investing activities | 3,292 | (53,954) | 57,246 | |||||||||||||||||
Net cash provided by (used in) financing activities | 47,548 | (3,886) | 51,434 | |||||||||||||||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (104) | (1,299) | 1,195 | |||||||||||||||||
Net decrease in cash, cash equivalents and restricted cash | (39,370) | (128,426) | 89,056 |
(in thousands) | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | |||||||||||||||
Purchase Obligations | $ | 22,498 | $ | 16,991 | $ | 5,507 | $ | — | $ | — | ||||||||||
Operating Lease Obligations | 18,232 | 5,573 | 6,228 | 4,379 | 2,052 |
ZAI LAB LIMITED | |||||||||||||
Dated: May | By: | /s/ | |||||||||||
Name: | |||||||||||||
Title: | Chief Financial Officer | ||||||||||||
(Principal Financial and Accounting Officer) |