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Schedule I — Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
Schedule I — Condensed Financial Information of Registrant
Schedule I — Condensed Financial Information of Registrant
Zai Lab Limited
Financial Information of Parent Company
Condensed Balance Sheets
(in thousands of $, except for number of shares and per share data)
December 31,
20232022
Assets
Current assets:
Cash and cash equivalents
565,981 944,649 
Prepayments and other current assets7,423 10,203 
Total current assets573,404 954,852 
Investment in subsidiaries224,954 93,363 
Total assets798,358 1,048,215 
Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Other current liabilities2,240 2,620 
Total current liabilities2,240 2,620 
Total liabilities2,240 2,620 
Shareholders’ equity
Ordinary shares (par value of $0.000006 per share; 5,000,000,000 shares authorized, 977,151,270 and 962,455,850 shares issued as of December 31, 2023 and 2022, respectively; 972,239,070 and 960,219,570 shares issued and outstanding as of December 31, 2023 and 2022, respectively)
6 6 
Additional paid-in capital2,975,302 2,893,120 
Accumulated deficit(2,195,980)(1,861,360)
Accumulated other comprehensive income
37,626 25,685 
Treasury stock(20,836)(11,856)
Total shareholders’ equity796,118 1,045,595 
Total liabilities and shareholders’ equity798,358 1,048,215 
Schedule I — Condensed Financial Information of Registrant
Zai Lab Limited
Financial Information of Parent Company
Condensed Statements of Operations and Comprehensive Loss
(in thousands of $)
Year Ended December 31,
202320222021
Operating Expenses:
Research and development(82)(178)(6)
General and administrative(16,958)(19,773)(12,074)
Loss from operations(17,040)(19,951)(12,080)
Interest income30,840 12,857 1,881 
Other income (expense), net4,029 (8,678)(18,173)
Profit (Loss) before income tax and equity in loss of subsidiaries17,829 (15,772)(28,372)
Equity in loss of subsidiaries(352,449)(427,514)(676,099)
Income tax expense— — — 
Net loss(334,620)(443,286)(704,471)
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustment11,941 49,330 (9,121)
Comprehensive loss(322,679)(393,956)(713,592)
Schedule I — Condensed Financial Information of Registrant
Zai Lab Limited
Financial Information of Parent Company
Condensed Statements of Cash Flows
(in thousands of $)
Year Ended December 31,
202320222021
Cash flows from operating activities:
Net loss(334,620)(443,286)(704,471)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization of deferred income— (234)(312)
Share based compensation3,217 3,724 3,435 
Equity in loss of subsidiaries352,449 427,514 676,099 
Loss from fair value changes of equity investment of readily determinable fair value(2,789)8,952 14,617 
Changes in operating assets and liabilities:
Prepayments and other current assets2,780 (7,839)(439)
Other current liabilities(379)1,648 (376)
Net cash provided by (used in) operating activities20,658 (9,521)(11,447)
Cash flows from investing activities:
Purchases of short-term investments— (260,274)(445,000)
Proceeds from maturity of short-term investments— 705,274 743,902 
Purchase of investment in equity investee— — (30,000)
Investment in subsidiaries(392,893)(80,942)(884,342)
Net cash (used in) provided by investing activities(392,893)364,058 (615,440)
Cash flows from financing activities:
Proceeds from exercises of stock options2,369 5,870 7,418 
Proceeds from issuance of ordinary shares upon public offerings— — 818,875 
Payment of public offering costs— — (1,692)
Employee taxes paid related to settlement of equity awards(8,802)(7,600)(4,253)
Net cash (used in) provided by financing activities(6,433)(1,730)820,348 
Effect of foreign exchange rate changes on cash and cash equivalent— — 773 
Net (decrease) increase in cash and cash equivalents(378,668)352,807 194,234 
Cash and cash equivalents-beginning of the year944,649 591,842 397,608 
Cash and cash equivalents-end of the year565,981 944,649 591,842 
Schedule I — Condensed Financial Information of Registrant
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, 2023 and 2022, 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.