XML 75 R31.htm IDEA: XBRL DOCUMENT v3.22.4
Financial Statements Schedule I
 12 Months Ended
Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]  
Financial Statements Schedule I
Additional Financial Information of Parent Company -
Financial Statements Schedule I
Zai Lab Limited
Financial Information of Parent Company
Condensed Balance Sheets
(In thousands of U.S. dollars (“$”) except for number of shares and per share data)
December 31,
20222021
$ $
Assets
Current assets:
Cash and cash equivalents
944,649 591,842 
Short-term investments— 445,000 
Prepayments and other current assets10,203 2,364 
Total current assets954,852 1,039,206 
Investment in subsidiaries93,363 341,980 
Total assets1,048,215 1,381,186 
Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Other current liabilities2,620 996 
Total current liabilities2,620 996 
Deferred income— 234 
Total liabilities2,620 1,230 
Shareholders’ equity
Ordinary shares (par value of $0.000006 per share; 5,000,000,000 shares authorized, 962,455,850 and 955,363,980 shares issued as of December 31, 2022 and 2021, respectively; 960,219,570 and 954,981,050 shares issued and outstanding as of December 31, 2022 and 2021, respectively)
6 6 
Additional paid-in capital2,893,120 2,825,948 
Accumulated deficit(1,861,360)(1,418,074)
Accumulated other comprehensive income (loss)
25,685 (23,645)
Treasury stock(11,856)(4,279)
Total shareholders’ equity1,045,595 1,379,956 
Total liabilities and shareholders’ equity1,048,215 1,381,186 
Additional Financial Information of Parent Company -
Financial Statements Schedule I
Zai Lab Limited
Financial Information of Parent Company
Condensed Statements of Operations and Comprehensive Loss
(In thousands of U.S. dollars (“$”) except for number of shares and per share data)
Year Ended December 31,
202220212020
$ $ $
Operating Expenses:
Research and development(178)(6)(437)
General and administrative(19,773)(12,074)(7,345)
Loss from operations(19,951)(12,080)(7,782)
Interest income12,857 1,881 4,899 
Other (expenses) income, net(8,678)(18,173)312 
Profit (Loss) before income tax and equity in loss of subsidiaries(15,772)(28,372)(2,571)
Equity in loss of subsidiaries(427,514)(676,099)(266,334)
Income tax expense— — — 
Net loss(443,286)(704,471)(268,905)
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustment49,330 (9,121)(19,144)
Comprehensive loss(393,956)(713,592)(288,049)
Additional Financial Information of Parent Company -
Financial Statements Schedule I
Zai Lab Limited
Financial Information of Parent Company
Condensed Statements of Cash Flows
(In thousands of U.S. dollars (“$”) except for number of shares and per share data)
Year Ended December 31,
202220212020
$ $ $
Cash flows from operating activities:
Net loss(443,286)(704,471)(268,905)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization of deferred income(234)(312)(312)
Share based compensation3,724 3,435 3,025 
Equity in loss of subsidiaries427,514 676,099 266,334 
Loss from fair value changes of equity investment of readily determinable fair value8,952 14,617 — 
Changes in operating assets and liabilities:
Prepayments and other current assets(7,839)(439)2,253 
Other current liabilities1,648 (376)738 
Net cash provided by (used in) operating activities(9,521)(11,447)3,133 
Cash flows from investing activities:
Purchases of short-term investments(260,274)(445,000)(949,161)
Proceeds from maturity of short-term investments705,274 743,902 405,000 
Purchase of investment in equity investee— (30,000)— 
Investment in subsidiaries(80,942)(884,342)(256,097)
Net cash provided by (used in) investing activities364,058 (615,440)(800,258)
Cash flows from financing activities:
Proceeds from exercises of stock options5,870 7,418 6,664 
Proceeds from issuance of ordinary shares upon public offerings— 818,875 1,137,683 
Payment of public offering costs— (1,692)(4,541)
Employee taxes paid related to settlement of equity awards(7,600)(4,253)— 
Net cash provided by (used in) financing activities(1,730)820,348 1,139,806 
Effect of foreign exchange rate changes on cash and cash equivalent— 773 (515)
Net increase in cash and cash equivalents352,807 194,234 342,166 
Cash and cash equivalents-beginning of the year591,842 397,608 55,442 
Cash and cash equivalents-end of the year944,649 591,842 397,608 
Additional Financial Information of Parent Company -
Financial Statements Schedule I
Zai Lab Limited
Financial Information of Parent Company
Notes
1.    Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.
2.    The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. For the parent company, Zai Lab Limited records its investments in subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as “Investment in subsidiaries”. Ordinarily under the equity, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this Schedule I, the parent company has continued to reflect its share, based on its proportionate interest, of the losses of subsidiaries regardless of the carrying value of the investment even though the parent company is not obligated to provide continuing support or fund losses.
3.    Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures provide certain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the accompanying consolidated financial statements.
4.    As of December 31, 2022 and 2021, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of Zai Lab Limited.