0001193125-22-061312 | 10-K | XBRL Viewer

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Consolidated balance sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 964,100	$ 442,116
Short-term investments	445,000	744,676
Accounts receivable (net of allowance for credit loss of $1 and $11 as of December 31, 2020 and 2021, respectively)	47,474	5,165
Notes receivable	7,335	0
Inventories	18,951	13,144
Prepayments and other current assets	18,021	10,935
Total current assets	1,500,881	1,216,036
Restricted cash, non-current	803	743
Long-term investments (including the fair value measured investment of nil and $15,383 as of December 31, 2020 and 2021, respectively)	15,605	1,279
Prepayments for equipment	989	274
Property and equipment, net	43,102	29,162
Operating lease right-of-use assets	14,189	17,701
Land use rights, net	7,811	7,908
Intangible assets, net	1,848	1,532
Long term deposits	870	862
Value added tax recoverable	23,858	22,141
Total assets	1,609,956	1,297,638
Current liabilities:
Accounts payable	126,163	62,641
Current operating lease liabilities	5,927	5,206
Other current liabilities	60,811	30,196
Total current liabilities	192,901	98,043
Deferred income	27,486	16,858
Non-current operating lease liabilities	9,613	13,392
Total liabilities	230,000	128,293
Commitments and contingencies (Note 20)
Shareholders' equity
Ordinary shares (par value of $0.00006 per share; 500,000,000 shares authorized, 87,811,026 and 95,536,398 shares issued and outstanding as of December 31, 2020 and 2021, respectively)	6	5
Additional paid-in capital	2,825,948	1,897,467
Accumulated deficit	(1,418,074)	(713,603)
Accumulated other comprehensive loss	(23,645)	(14,524)
Treasury stock	(4,279)	0
Total shareholders' equity	1,379,956	1,169,345
Total liabilities and shareholders' equity	$ 1,609,956	$ 1,297,638

Consolidated balance sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 11	$ 1
Ordinary shares, par value	$ 0.00006	$ 0.00006
Ordinary shares, shares authorized	500,000,000	500,000,000
Ordinary shares, shares issued	95,536,398	87,811,026
Ordinary shares, shares outstanding	95,536,398	87,811,026
Treasury Stock, Shares	38,293	0
Investments, fair value disclosure	$ 15,383	$ 0

Consolidated statements of operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues:
Product revenue, net	$ 144,105	$ 48,958	$ 12,985
Collaboration revenue	207	0	0
Total revenues	144,312	48,958	12,985
Expenses:
Cost of sales	(52,239)	(16,736)	(3,749)
Research and development	(573,306)	(222,711)	(142,221)
Selling, general and administrative	(218,831)	(111,312)	(70,211)
Loss from operations	(700,064)	(301,801)	(203,196)
Interest income	2,190	5,120	8,232
Interest expenses	0	(181)	(293)
Other income (expenses), net	(5,540)	29,076	938
Loss before income tax and share of loss from equity method investment	(703,414)	(267,786)	(194,319)
Income tax expense	0	0	0
Share of loss from equity method investment	(1,057)	(1,119)	(752)
Net loss	(704,471)	(268,905)	(195,071)
Net loss attributable to ordinary shareholders	$ (704,471)	$ (268,905)	$ (195,071)
Loss per share — basic and diluted	$ (7.58)	$ (3.46)	$ (3.03)
Weighted-average shares used in calculating net loss per ordinary share — basic and diluted	92,992,112	77,667,743	64,369,490

Consolidated statements of comprehensive loss - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (211,825)	$ (96,412)	$ (163,324)	$ (232,910)	$ (76,547)	$ (63,741)	$ (80,629)	$ (47,988)	$ (704,471)	$ (268,905)	$ (195,071)
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustments									(9,121)	(19,144)	1,958
Comprehensive loss									$ (713,592)	$ (288,049)	$ (193,113)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Consolidated statements of comprehensive loss (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Other comprehensive income, tax	$ 0	$ 0	$ 0

- Definition

Amount of tax expense (benefit) allocated to other comprehensive income (loss).

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Consolidated statements of shareholders' equity - USD ($) $ in Thousands	Total	Ordinary Shares	Additional Paid In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance at Dec. 31, 2018	$ 251,081	$ 3	$ 498,043	$ (249,627)	$ 2,662
Balance, Shares at Dec. 31, 2018		58,006,967
Issuance of ordinary shares upon vesting of restricted shares		$ 0	0
Issuance of ordinary shares upon vesting of restricted shares, Shares		539,733
Exercise of shares option	1,055	$ 0	1,055
Exercise of shares option, Shares		670,939
Issuance of ordinary shares upon follow-on public offering, net of issuance cost	215,346	$ 1	215,345
Issuance of ordinary shares upon follow-on public offering, net of issuance cost, Shares		9,019,608
Share-based compensation	20,291		20,291
Net loss	(195,071)			(195,071)
Foreign currency translation	1,958				1,958
Balance at Dec. 31, 2019	294,660	$ 4	734,734	(444,698)	4,620
Balance, Shares at Dec. 31, 2019		68,237,247
Issuance of ordinary shares upon vesting of restricted shares		$ 0	0
Issuance of ordinary shares upon vesting of restricted shares, Shares		225,768
Exercise of shares option	6,664	$ 0	6,664
Exercise of shares option, Shares		899,361
Issuance of ordinary shares upon secondary listing, net of issuance cost	850,691	$ 1	850,690
Issuance of ordinary shares upon secondary listing, net of issuance cost, Shares		12,148,650
Issuance of ordinary shares upon follow-on public offering, net of issuance cost	280,549	$ 0	280,549
Issuance of ordinary shares upon follow-on public offering, net of issuance cost, Shares		6,300,000
Share-based compensation	24,830		24,830
Net loss	(268,905)			(268,905)
Foreign currency translation	(19,144)				(19,144)
Balance at Dec. 31, 2020	$ 1,169,345	$ 5	1,897,467	(713,603)	(14,524)
Balance, Shares at Dec. 31, 2020	87,811,026	87,811,026
Issuance of ordinary shares upon vesting of restricted shares		$ 0	0
Issuance of ordinary shares upon vesting of restricted shares, Shares		205,450
Exercise of shares option	$ 7,417	$ 0	7,417
Exercise of shares option, Shares	1,235,340	1,235,340
Issuance of ordinary shares upon follow-on public offering, net of issuance cost	$ 818,036	$ 1	818,035
Issuance of ordinary shares upon follow-on public offering, net of issuance cost, Shares		5,716,400
Issuance of ordinary shares in connection with collaboration and license arrangement	62,250	$ 0	62,250
Issuance of ordinary shares in connection with collaboration and license arrangement, Shares		568,182
Issuance cost adjustment for secondary listing	65		65
Receipt of employees' shares to satisfy tax withholding obligations related to share-based compensation	(4,279)					$ (4,279)
Receipt of employees' shares to satisfy tax withholding obligations related to share-based compensation, Shares						(38,293)
Share-based compensation	40,714		40,714
Net loss	(704,471)			(704,471)
Foreign currency translation	(9,121)				(9,121)
Balance at Dec. 31, 2021	$ 1,379,956	$ 6	$ 2,825,948	$ (1,418,074)	$ (23,645)	$ (4,279)
Balance, Shares at Dec. 31, 2021	95,536,398	95,536,398				(38,293)

Consolidated statements of shareholders' equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Issuance of ordinary shares upon follow-on public offering, net of issuance cost	$ 839	$ 746	$ 854
Global Offering
Issuance of ordinary shares upon follow-on public offering, net of issuance cost		$ 5,698

Consolidated statements of cash flows $ in Thousands	12 Months Ended
Consolidated statements of cash flows $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Operating activities
Net loss	$ (704,471)	$ (268,905)	$ (195,071)
Adjustments to reconcile net loss to net cash used in operating activities:
Allowance for credit loss	10	1
Inventory write-down	1,368	29	0
Depreciation and amortization expenses	6,487	4,640	3,766
Amortization of deferred income	(521)	(312)	(312)
Share-based compensation	40,714	24,830	20,291
Noncash research and development expenses	62,250
Share of loss from equity method investment	1,057	1,119	752
Loss from fair value changes of equity investment with readily determinable fair value	14,617
Loss (gain) on disposal of property and equipment	29	(21)	15
Noncash lease expenses	6,119	4,318	2,831
Changes in operating assets and liabilities:
Accounts receivable	(42,319)	(1,375)	(3,701)
Notes receivable	(7,335)
Inventories	(7,174)	(7,168)	(6,001)
Prepayments and other current assets	(7,086)	(4,199)	(1,125)
Long term deposits	(8)	(485)	180
Value added tax recoverable	(1,717)	(8,404)	(5,693)
Accounts payable	63,522	39,981	(14,772)
Other current liabilities	19,463	(10,977)	9,136
Operating lease liabilities	(5,385)	(3,416)	(2,436)
Deferred income	11,149	14,289	1,129
Net cash used in operating activities	(549,231)	(216,055)	(191,011)
Cash flows from investing activities:
Purchases of short-term investments	(445,000)	(949,161)	(277,640)
Proceeds from maturity of short-term investments	743,902	405,000	277,990
Purchase of investment in equity investee	(30,000)
Purchase of property and equipment	(18,295)	(10,130)	(6,035)
Disposal of property and equipment	3
Purchase of land use rights			(7,836)
Purchase of intangible assets	(653)	(539)	(1,371)
Net cash provided by (used in) investing activities	249,957	(554,830)	(14,892)
Cash flows from financing activities:
Proceeds from short-term borrowings			7,252
Repayment of short-term borrowings		(6,527)	(4,351)
Proceeds from exercises of stock options	7,417	6,664	1,055
Proceeds from issuance of ordinary shares upon public offerings	818,875	1,137,683	216,200
Payment of public offering costs	(1,837)	(5,380)	(854)
Employee taxes paid related to settlement of equity awards	(4,253)
Net cash provided by financing activities	820,202	1,132,440	219,302
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	1,116	4,862	91
Net increase in cash, cash equivalents and restricted cash	522,044	366,417	13,490
Cash, cash equivalents and restricted cash — beginning of the year	442,859	76,442	62,952
Cash, cash equivalents and restricted cash — end of the year	964,903	442,859	76,442
Supplemental disclosure on non-cash investing and financing activities:
Payables for purchase of property and equipment	2,568	788	416
Payables for intangible assets	191	70
Payables for public offering costs		1,063
Payables for treasury stock	26
Supplemental disclosure of cash flow information:
Cash and cash equivalents	964,100	442,116	75,932
Restricted cash, non-current	803	743	510
Total cash and cash equivalents and restricted cash	964,903	442,859	76,442
Interest paid	$ 0	$ 189	$ 288

Organization and principal activities

12 Months Ended

Dec. 31, 2021

Organization and principal activities

Organization and Principal Activities

1.	Organization and principal activities

Zai Lab Limited was incorporated on March 28, 2013 in the Cayman Islands as an exempted company with limited liability under the Companies Law of the Cayman Islands. Zai Lab Limited and its subsidiaries (collectively referred to as the “Company”) are focused on developing and commercializing therapies that address medical conditions with unmet medical needs in oncology, autoimmune disorders, infectious diseases, and neuroscience.

The Company has a substantial presence in mainland China, Hong Kong, Macau and Taiwan (collectively referred to as the “Greater China”) and the United States. The accompanying consolidated financial statements include the financial statements of Zai Lab Limited and its subsidiaries.

As of December 31, 2021, the Company’s significant operating subsidiaries are as follows:


Name of company	Place of incorporation	Date of incorporation	Percentage of ownership	Principal activities
Zai Lab (Hong Kong) Limited	Hong Kong	April 29, 2013	100%	Operating company for business development and R&D activities and commercialization of innovative medicines and device
Zai Lab (Shanghai) Co., Ltd.	mainland China	January 6, 2014	100%	Development and commercialization of innovative medicines and devices
Zai Lab (AUST) Pty., Ltd.	Australia	December 10, 2014	100%	Clinical trial activities
Zai Lab (Suzhou) Co., Ltd.	mainland China	November 30, 2015	100%	Development and commercialization of innovative medicines
Zai Biopharmaceutical (Suzhou) Co., Ltd.	mainland China	June 15, 2017	100%	Development and commercialization of innovative medicines
Zai Lab (US) LLC	the United States	April 21, 2017	100%	Operating company for business development, R&D activities and certain business activities, including legal, compliance and communication functions of the Company
Zai Lab International Trading (Shanghai) Co., Ltd.	mainland China	November 6, 2019	100%	Commercialization of innovative medicines and devices
Zai Auto Immune (Hong Kong) Limited	Hong Kong	November 4, 2020	100%	Operating company for business development and R&D activities
Zai Lab (Taiwan) Limited	Taiwan	December 10, 2020	100%	Commercialization of innovative medicines and devices

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of significant accounting policies

2.	Summary of significant accounting policies

(a) Basis of presentation

The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below.

(b) Principles of consolidation

The consolidated financial statements include the financial statements of Zai Lab Limited and its subsidiaries. All intercompany transactions and balances among Zai Lab Limited and its subsidiaries are eliminated upon consolidation.

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the period. Areas where management uses subjective judgment include, but are not limited to, estimating the useful lives of long-lived assets, estimating the current expected credit losses for financial assets, assessing the impairment of long-lived assets, discount rate of operating lease liabilities, accrual of rebate, allocation of the research and development service expenses to the appropriate financial reporting period based on the progress of the research and development projects, share-based compensation expenses, recoverability of deferred tax assets and a lack of marketability discount of the ordinary shares issued in connection with collaboration and license arrangement (Note 17). Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.

(d) Foreign currency translation

The functional currency of Zai Lab Limited, Zai Lab (Hong Kong) Limited, Zai Lab (US) LLC and Zai Auto Immune (Hong Kong) Limited are the United States dollar (“$”). The Company’s

Chinese

subsidiaries determined their functional currency to be Chinese Renminbi (“RMB”). The Company’s Australia subsidiary determined its functional currency to be Australian dollar (“A$”). The Company’s Taiwan subsidiary determined their functional currency to be Taiwan dollar (“TWD”). The determination of the respective functional currency is based on the criteria of Accounting Standard Codification (“ASC”) 830,

Foreign Currency Matters

. The Company uses the United States dollar as its reporting currency.

Assets and liabilities are translated from each entity’s functional currency to the reporting currency at the exchange rate on the balance sheet date. Equity amounts are translated at historical exchange rates, and expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive loss in the consolidated statements of changes in shareholders’ equity and comprehensive loss.

Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date.

Non-monetary assets and liabilities are translated into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the consolidated statements of operations.

(e) Cash, cash equivalents and restricted cash

Cash and cash equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist primarily of cash on hand, demand deposits and highly liquid investments with maturity of less than three months and are stated at cost plus interests earned, which approximates fair value.

Restricted cash

Restricted cash mainly consists of the bank deposits held as collateral for issuance of letters of credit.

(f) Short-term investments

Short-term investments are time deposits with original maturities more than three months. Short-term investments are stated at cost, which approximates fair value. Interest earned is included in interest income.

(g) Accounts receivable

The Company’s accounts receivable include receivable arise from product sales and represent amounts due from its customers. In addition, the Company records accounts receivable arising from its collaborative agreement. From January 1, 2020, the Company adopted the ASU

2016-13,

Credit Losses, Measurement of Credit Losses on Financial Instruments

. Accounts receivable are recorded at the amounts net of allowances for credit losses. The allowance for credit losses reflects the Company’s current estimate of credit losses expected to be incurred over the life of the receivables. The Company considers various factors in establishing, monitoring, and adjusting its allowance for credit losses including the aging of receivables and aging trends, customer creditworthiness and specific exposures related to particular customers. The Company also monitors other risk factors and forward-looking information, such as country specific risks and economic factors that may affect a debtor’s ability to pay in establishing and adjusting its allowance for credit losses. Accounts receivable are written off when deemed uncollectible.

(h) Notes receivable

Notes receivable is equal to contractual amounts owed from signed, secured promissory notes issued from the customers to the Company. The Company considers the

notes

receivable to be fully collectible. Accordingly,

allowance for credit loss has been established for the year ended December 31, 2021.

(i) Inventories

Inventories are stated at the lower of cost or net realizable value, with cost determined on a weighted average basis. The Company periodically reviews the composition of inventory and shelf life of inventory in order to

identify obsolete, slow-moving or otherwise

non-saleable

items. The Company will record a write-down to its net realizable value in cost of sales in the period that the decline in value is first identified.

(j) Long-term investments

Long-term investments represent equity-method investments and equity investments with readily determinable fair values.

The Company uses the equity method to account for an equity investment over which it has significant influence but does not own a majority equity interest or otherwise control. The Company records equity method adjustments in share of earnings and losses. Equity method adjustments include the Company’s proportionate share of investee income or loss, adjustments to recognize certain differences between the Company’s carrying value and its equity in net assets of the investee at the date of investment, impairments, and other adjustments required by the equity method. Dividends received are recorded as a reduction of carrying amount of the investment. Cumulative distributions that do not exceed the Company’s cumulative equity in earnings of the investee are considered as a return on investment and classified as cash inflows from operating activities. Cumulative distributions in excess of the Company’s cumulative equity in the investee’s earnings are considered as a return of investment and classified as cash inflows from investing activities.

The Company is required to perform an impairment assessment of its investments whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. No impairment was recorded for the years ended December 31, 2019, 2020 and 2021.

Investments in equity securities that have readily determinable fair values (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are measured at fair value, with unrealized gains and losses from fair value changes recognized in other income (expenses), net in the consolidated statements of operations.

(k) Prepayments for equipment

The prepayments for equipment purchase are recorded in long-term prepayments considering the prepayments are all related to property and equipment.

(l) Property and equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets as follows:


		Useful life
Office equipment		3 years
Electronic equipment		1.25-3 years
Vehicle		4 years
Laboratory equipment		5 years
Manufacturing equipment		10 years
Leasehold improvements		lesser of useful life or lease term

Construction in progress represents property and equipment under construction and pending installation and is stated at cost less impairment losses if any.

(m) Lease

From January 1, 2019, the Company adopted the ASC Topic 842,

Leases

(“ASC 842”). The Company adopted the new guidance using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The Company determines if an arrangement is a lease at inception. The Company classifies the lease as a finance lease if it meets certain criteria or as an operating lease when it does not. The Company has lease agreements with lease and

non-lease

components, which the Company has elected to account for the components as a single lease component. The Company leases facilities for office, research and development center, and manufacturing facilities in mainland China, Hong Kong, and the United States, which are all classified as operating leases with fixed lease payments, or minimum payments, as contractually stated in the lease agreements. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.

At the commencement date of a lease, the Company recognizes a lease liability for future fixed lease payments and a

right-of-use

(“ROU”) asset representing the right to use the underlying asset during the lease term. The lease liability is initially measured as the present value of the future fixed lease payments that will be made over the lease term. The lease term includes periods for which it’s reasonably certain that the renewal options will be exercised and periods for which it’s reasonably certain that the termination options will not be exercised. The future fixed lease payments are discounted using the rate implicit in the lease, if available, or the incremental borrowing rate (“IBR”). Upon adoption of ASU

2016-02,

the Company elected to use the remaining lease term as of January 1, 2019 in the Company’s estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, the Company uses the discount rate as of the commencement date of the lease, incorporating the entire lease term. Additionally, the Company elected not to recognize leases with lease terms of 12 months or less at the commencement date in the consolidated balance sheets.

The ROU asset is measured at the amount of the lease liability with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by the Company and lease incentives. Under ASC 842, land use rights agreements are also considered to be operating lease contracts. The Company will evaluate the carrying value of ROU assets if there are indicators of impairment and review the recoverability of the related asset group. If the carrying value of the asset group is determined to not be recoverable and is in excess of the estimated fair value, the Company will record an impairment loss in other expenses in the consolidated statements of operations. ROU assets for operating leases are included in operating lease

right-of-use

assets in the consolidated balance sheets.

Operating leases are included in operating lease

right-of-use

assets and operating lease liabilities in the consolidated balance sheets. Operating lease liabilities that become due within one year of the balance sheet date are classified as current operating lease liabilities.

Lease expense is recognized on a straight-line basis over the lease term.

(n) Land use rights

All land in

mainland China

owned by the

Chinese

government. Th

Chinese

government may sell land use rights for a specified period of time. The purchase price of land use rights represents the operating lease prepayments for the rights to use the land in

mainland China

under ASC

842

and is recorded as land use rights on the balance sheet, which is amortized over the remaining lease term.

In 2019, the Company acquired land use rights from the local Bureau of Land and Resources in Suzhou for the purpose of constructing and operating the research center and biologics manufacturing facility in Suzhou. The land use rights are being amortized over the respective lease terms, which are 30 years.

(o) Long-term deposits

Long-term deposits represent amounts paid in connection with the Company’s long-term lease agreements.

(p) Value added tax recoverable

Value added tax recoverable represent amounts paid by the Company for purchases. The amounts were recorded as long-term assets considering they are expected to be deducted from future value added tax payables arising on the Company’s future revenues.

(q) Intangible assets

Intangible assets mainly consist of externally purchased software which are amortized over one to five years on a straight-line basis. Amortization expenses for the years ended December 31, 2019, 2020 and 2021 were $305, $307 and $493, respectively. Amortization expenses of the Company’s intangible assets are expected to be approximately $570, $556, $436, $212, $74 and nil for the years ended December 31, 2022, 2023, 2024, 2025, 2026 and thereafter, respectively.

(r) Impairment of long-lived assets

Long-lived assets are reviewed for impairment in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances, which indicate that their carrying value may not be recoverable. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell. For the years ended December 31, 2019, 2020 and 2021, there was no impairment of the value of the Company’s long-lived assets.

(s) Fair value measurements

The Company applies ASC topic 820 (“ASC 820”),

Fair Value Measurements and Disclosures

, in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement.

ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Include other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Unobservable inputs which are supported by little or no market activity.

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (i) market approach; (ii) income approach; and (iii) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The Company did not have any assets or liabilities that were measured at fair value on a recurring basis prior to 2021. As of December 31, 2021, information about inputs into the fair value measurement of the Company’s assets that are measured at a fair value on a recurring basis in periods subsequent to their initial recognition is as follows:


Description	Fair Value as of December 31, 2021		Fair Value Measurement at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1)
	US$		US$
Equity Investments with Readily Determinable Fair Value		15,383		15,383

Financial instruments of the Company primarily include cash, cash equivalents and restricted cash, short-term investments, accounts receivable, notes receivable, prepayments and other current assets, accounts payable and other current liabilities. As of December 31, 2020 and 2021, the carrying values of cash and cash equivalents, short-term investments, accounts receivable, notes receivable, prepayments and other current assets, accounts payable and other current liabilities approximated their fair values due to the short-term maturity of these instruments, and the carrying value of restricted cash approximates its fair value based on the nature and the assessment of the ability to recover these amounts.

(t) Revenue recognition

In 2018, the Company adopted of ASC Topic 606 (“ASC 606”),

Revenue from Contracts with Customers,

in recognition of revenue

Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration expected to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. The Company recognizes as revenue the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied.

The Company’s revenue is mainly from product sales. The Company recognizes revenue from product sales when the Company has satisfied the performance obligation by transferring control of the product to the customers. Control of the product generally transfers to the customers when the delivery is made and when title and risk of loss transfers to the consumers. Cost of sales mainly consists of the acquisition cost of products, the manufacturing cost of products, royalty fee and sales milestone payment.

The Company has applied the practical expedients

under ASC 606 with regard to assessment of financing component and concluded that there is no significant financing component given that the period between delivery of goods and payment is generally one year or less. The Company’s product revenues were mainly generated from the sale of ZEJULA (niraparib), Optune (Tumor Treating Fields), QINLOCK (ripretinib) and NUZYRA (Omadacycline) to customers.

In mainland China, the Company sells the products to distributors, who ultimately sell the products to health care providers. Based on the nature of the arrangements, the performance obligations are satisfied upon the products delivery to distributors. Rebates are offered to distributors, consistent with pharmaceutical industry practices. The estimated amount of unpaid or unbilled rebates are recorded as a reduction of revenue if any. Estimated rebates are determined based on contracted rates, sales volumes and distributor inventories. The Company regularly reviews the information related to these estimates and adjusts the amount accordingly.

In Hong Kong, the Company sells the products to customers, which are typically healthcare providers such as oncology centers. The Company utilizes a third party for warehousing services. Based on the nature of the arrangement, the Company has determined that it is a principal in the transaction since the Company is primarily responsible for fulfilling the promise to provide the products to the customers, maintains inventory risk until delivery to the customers and has latitude in establishing the price. Revenue was recognized at the amount to which the Company expected to be entitled in exchange for the sale of the products, which is the sales price agreed with the customers. Consideration paid to the third party is recognized in operating expenses.

The Company didn’t recognize any contract assets and contract liabilities as of December 31, 2020 and 2021.

(u) Collaborative arrangements

The Company analyzes its collaboration arrangements to assess whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities and therefore within the scope of ASC Topic 808,

Collaborative Arrangements (ASC 808)

. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement.

For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Company first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and which elements of the collaboration are more reflective of a vendor-customer relationship and therefore within the scope of ASC606. For elements of collaboration arrangements that are accounted pursuant to ASC 808, an appropriate recognition method is determined and applied consistently, generally by analogy to ASC 606.

(v) Research and development expenses

Elements of research and development expenses primarily include (i) payroll and other related costs of personnel engaged in research and development activities;(ii)

in-licensed

patent rights fees of exclusive development rights of products granted to the Company, (iii) costs related to

pre-clinical

testing of the Company’s technologies

under development and clinical trials such as payments to contract research organizations (“CROs”) and contract manufacturing organizations (“CMOs”), investigators and clinical trial sites that conduct our clinical studies; (iv) costs to develop the product candidates, including raw materials and supplies, product testing, depreciation, and facility related expenses; and (v) other research and development expenses. Research and development expenses are charged to expense as incurred when these expenditures relate to the Company’s research and development services and have no alternative future uses.

The Company has acquired rights to develop and commercialize product candidates. Upfront payments that relate to the acquisition of a new product compound, as well as

pre-commercial

milestone payments, are immediately expensed as acquired

in-process

research and development in the period in which they are incurred, provided that the new product compound did not also include processes or activities that would constitute a “business” as defined under U.S. GAAP, and the product candidate has not achieved regulatory approval for marketing and, absent obtaining such approval, has no established alternative future use. Milestone payments made to third parties subsequent to regulatory approval which meet the capitalization criteria would be capitalized as intangible assets and amortized over the estimated remaining useful life of the related product. If the conditions enabling capitalization of development costs as an asset have not yet been met, all development expenditures are recognized in profit or loss when incurred.

(w) Deferred income

Deferred income mainly consists of deferred income from government grants, American Depositary Receipts (the “ADR”) Program Agreement with ADR depositary bank (the “DB”) in July 2017 and the upfront payments received from

Huizheng (Shanghai) Pharmaceutical Technology Co., Ltd. (“Hanhui”).

Government grants consist of cash subsidies received by the Company’s subsidiaries in

mainland China

from local governments. Grants received as incentives for conducting business in certain local districts with no performance obligation or other restriction as to the use are recognized when cash is received. Cash grants of $2,151, $7,289 and $4,113 were included in other income for the years ended December 31, 2019, 2020 and 2021, respectively. Grants received with government specified performance obligations are recognized when all the obligations have been fulfilled. If such obligations are not satisfied, the Company may be required to refund the subsidy. Cash grants of $2,519 and $2,366 were recorded in deferred income as of December 31, 2020 and 2021 respectively, which will be recognized when the government specified performance obligation is satisfied.

According to the ADR program agreement, the Company has the right to receive reimbursements for using DB’s services, subject to the compliance by the Company with the terms of the agreement. The Company performed a detail assessment of the requirements and recognizes the reimbursements it expects to be entitled to over the five-year contract term as other income. For the years ended December 31, 2019, 2020 and 2021, $312, $312 and $312 were recorded in other income, respectively. $546 and $234 were recorded in deferred income as of December 31, 2020 and 2021, respectively.

In March 2020, the Company entered into an exclusive promotion agreement with Hanhui. Under the terms of the agreement, the Company will leverage Hanhui’s existing infrastructure to optimize an anticipated future commercial launch of NUZYRA in mainland China given that NUZYRA is a broad-spectrum antibiotic in both the hospital and community care facilities. In exchange for the exclusive promotion rights in mainland China, Hanhui has agreed to pay the Company a

non-creditable,

upfront payment in the amount of RMB

230,000

. The

(x) Comprehensive loss

Comprehensive loss is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220,

Comprehensive Income

, requires that all items that are required to be recognized under current accounting standards as components of comprehensive loss be reported in a financial statement that is displayed with the same prominence as other financial statements. For each of the periods presented, the Company’s comprehensive loss includes net loss and foreign currency translation adjustments, which are presented in the consolidated statements of comprehensive loss.

(y) Share-based compensation

The Company grants share options and

non-vested

restricted shares to eligible employees, management and directors and accounts for these share-based awards in accordance with ASC 718,

Compensation-Stock Compensation.

Employees’ share-based awards are measured at the grant date fair value of the awards and recognized as expenses (i) immediately at grant date if no vesting conditions are required; or (ii) using graded vesting method over the requisite service period, which is the vesting period.

All transactions in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

To the extent the required vesting conditions are not met resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards are reversed.

The Company determined the fair value of the stock options granted to employees using the Black-Scholes option valuation model.

Awards Granted to

Non-Employees

The Company grants share options to eligible

Non-Employees

and accounts for these share-based awards in accordance with ASC 718,

Compensation-Stock Compensation.

Non-Employees’

share-based awards are measured at the grant date fair value of the awards and recognized as expenses (i) immediately at grant date if no vesting conditions are required; or (ii) using graded vesting method over the requisite service period, which is the vesting period. All transactions in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. To the extent the required vesting conditions are not met resulting

in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards are reversed. The Company determined the fair value of the stock options granted to

Non-Employees

using the Black-Scholes option valuation model.

(z) Income taxes

Income tax expense includes (i) deferred tax expense, which generally represents the net change in the deferred tax asset or liability balance during the year plus any change in valuation allowances; (ii) current tax expense, which represents the amount of tax currently payable to or receivable from a taxing authority; and

(iii) non-current

tax expense, which represents the increases and decreases in amounts related to uncertain tax positions from prior periods and not settled with cash or other tax attributes.

The Company recognizes deferred tax assets and liabilities for temporary differences between the financial statement and income tax bases of assets and liabilities, which are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized.

The Company evaluates its uncertain tax positions using the provisions of ASC 740,

Income Taxes

, which requires that realization of an uncertain income tax position be recognized in the financial statements. The benefit to be recorded in the financial statements is the amount most likely to be realized assuming a review by tax authorities having all relevant information and applying current conventions. It is the Company’s policy to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense. No unrecognized tax benefits and related interest and penalties were recorded in any of the periods presented.

(

) Earnings (loss) per share

Basic earnings (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by weighted average number of ordinary shares outstanding during the period.

Diluted earnings (loss) per ordinary share reflects the potential dilution that could occur if securities were exercised or converted into ordinary shares. The Company had stock options and

non-vested

restricted shares, which could potentially dilute basic earnings (loss) per share in the future. To calculate the number of shares for diluted earnings (loss) per share, the effect of the stock options and

non-vested

restricted shares is computed using the treasury stock method. The computation of diluted earnings (loss) per share does not assume exercise or conversion of securities that would have an anti-dilutive effect.

) Segment information

In accordance with ASC 280,

Segment Reportin

g, the Company’s chief operating decision maker, the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Company as a whole and hence, the Company has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. As the majority of the Company’s long-lived assets are located in and derived from Greater China, no geographical segments are

presented.

(ac) Concentration of risks

Concentration of customers

The following customers accounted for 10% or more of revenue for the years ended December 31, 2019, 2020 and 2021:


	Year ended December 31,
	2019		2020		2021
	$		$		$
A		5,397		*		*
B		4,682		*		*
C		*		15,774		40,634

*	Represents less than 10% of revenue for the years ended December 31, 2019, 2020 and 2021.

Concentration of suppliers

The following suppliers accounted for 10% or more of research and development expenses and the inventory purchases for the years ended December 31, 2019, 2020 and 2021:

Year ended December 31,

2019

2020

2021

27,966

18,362

33,564

26,710

165,431

66,650

*	Represents less than 10% of research and development expenses and the inventory purchases for the years ended December 31, 2019, 2020 and 2021.

Concentration of credit risk

Financial instruments that are potentially subject to significant concentration of credit risk consist of cash and cash equivalents, short-term investments, accounts receivable and notes receivable.

The carrying amounts of cash and cash equivalents and short-term investments represent the maximum amount of loss due to credit risk. As of December 31, 2020 and 2021, all of the Company’s cash and cash equivalents and short-term investments were held by major financial institutions located in mainland China and international financial institutions outside of mainland China which management believes are of high credit quality and continually monitors the credit worthiness of these financial institutions.

The following debtors accounted for

% or more of balances of accounts receivable as of December 31, 2020 and 2021:


	As of December 31,
	2020		2021
	$		$
C		2,070		10,293
D		726		*
E		*		10,979

*	Represents less than 10% of accounts receivable as of December 31, 2020 and 2021.

Accounts receivable are typically unsecured and are derived from product sales and collaborative arrangement. The Company manages credit risk of accounts receivable through ongoing monitoring of the outstanding balances and limits the amount of credit extended based upon payment history and the debtor’s current credit worthiness. Historically, the Company collected the receivables from customers within the credit terms with no significant credit losses incurred.

During the year ended December 31, 2021, certain accounts receivable balances are settled in the form of notes receivable. As of December 31, 2021, notes receivable represents bank acceptance promissory notes that are non-interest bearing and due within six months. Notes receivable were used to collect the receivables based on an administrative convenience, given these notes are readily convertible to be known amounts of cash. In accordance with the sales agreements, whether cash or bank acceptance promissory notes to settle the receivables is at the Company’s discretion, and this selection does not impact the agreed contractual purchase prices.

Foreign currency risk

RMB is not a freely convertible currency. The State Administration of Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents of the Company included aggregated amounts of RMB155,934 and RMB151,684

which were denominated in RMB, as of December 31, 2020 and 2021, respectively, representing 5% and 2% of the cash and cash equivalents as of December 31, 2020 and 2021, respectively.

(ad) Recent accounting pronouncements

Adopted Accounting Standards

In December 2019, the FASB issued ASU 2019-12,

Income Taxes (Topic 740)

: Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes as part of the FASB’s overall initiative to reduce complexity in accounting standards. The amendments include removal of certain exceptions to the general principles of ASC 740, Income taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The update is effective in fiscal years beginning after December 15, 2020, and interim periods therein, and early adoption is permitted. Certain amendments in this update should be applied retrospectively or modified retrospectively, all other amendments should be applied

prospectively. The Company adopted this standard on January 1, 2021. There was no material impact to the Company’s financial position or results of operations upon adoption.

Future Adoption of Accounting Standards

In November 2021, the FASB issued ASU

2021-10,

Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance. The amendments in this ASU require disclosures about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model to increase transparency about (1) the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions on an entity’s financial statements. The amendments in this ASU are effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. Early application of the amendments is permitted. The Company does not expect this ASU would have a material impact on the consolidated financial statements.

Cash and cash equivalents

12 Months Ended

Dec. 31, 2021

Cash and Cash Equivalents [Abstract]

Cash and cash equivalents

3.	Cash and cash equivalents


	As of December 31,
	2020		2021
	$		$
Cash at bank and in hand		441,283		663,472
Cash equivalents (note (i))		833		300,628

		442,116		964,100

Denominated in:
US$		297,813		932,888
RMB (note (ii))		23,898		23,791
Hong Kong dollar (“HK$” ）		119,695		6,674
Australian dollar (“A$”)		710		475
Taiwan dollar (“TW$”)		—		272

		442,116		964,100

Notes:

(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 Chi nese government.

Restricted cash, non-current

12 Months Ended

Dec. 31, 2021

Restricted Cash [Abstract]

Restricted cash, non-current

4.	Restricted cash, non-current

The Company’s restricted cash balance of $743 and $803 as of December 31, 2020 and 2021, respectively, was long-term bank deposits held as collateral for issuance of letters of credit. These deposits will be released when the related letters of credit are settled by the Company.

Short-term investments

12 Months Ended

Dec. 31, 2021

Short-term investments

Short-term investments

5.	Short-term investments

Short-term investments are primarily comprised of time deposits with original maturities between three months and one year. For the years ended December 31, 2019, 2020 and 2021, the Company recorded the interest income of $7,778, $4,860 and $799, respectively, from the short-term

investments in the consolidated statements of operations.

As of December 31, 2020 and 2021, the Company’s short-term investments consisted entirely of short-term held to maturity debt instruments with high credit ratings, which were determined to have remote risk of expected credit loss. Accordingly, no allowance for credit loss was recorded as of December 31, 2020 and 2021.

Accounts receivable

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Accounts receivable

6.	Accounts receivable

Accounts receivable

include

receivable due from

the Company’s

customers and receivable

arising

from the

Company’s

collaborative

arrangement

. Accounts receivable due from

the Company’s

customers as of December 31, 2020 and 2021

were

$5,165 and $36,495, respectively. Accounts receivable

arising

from the

the Company’s

collaborative

arrangement

as of December 31, 2020 and 2021

were

nil and $10,979, respectively.

The roll-forward of the allowance for credit losses related to accounts receivable for the year ended December 31, 2021 consists of the following activity:


	Allowance for Credit Losses
	$
Balance as of December 31, 2020		1
Current period provision for expected credit losses		10
Amounts written-off		—
Recoveries of amounts previously written-off		—

Balance as of December 31, 2021		11

The Company did not have any allowance for the year ended December 31, 2019.

Inventories

12 Months Ended

Dec. 31, 2021

Inventories

Inventories

7.	Inventories

The Company’s inventory balance of $13,144 and $18,951 as of December 31, 2020 and 2021, respectively, mainly consisted of finished goods

purchased from Tesaro Inc., now GlaxoSmithKline (GSK), for distribution in Hong Kong, from NovoCure Limited (“NovoCure”) for distribution in Hong Kong and mainland China , and from Deciphera Pharmaceuticals, LLC (“Deciphera”) for distribution in Hong Kong, mainland China and Taiwan, as well as finished goods and certain raw materials for ZEJULA and NUZYRA commercialization in mainland China.


	As of December 31,
	2020		2021
	$		$
Finished goods		3,041		5,632
Raw materials		10,103		13,231
Work in progress		—		88

Inventories		13,144		18,951

The

Company write

-down inventory for any excess or obsolete inventories or when the Company believe

that the net realizable value of inventories is less than the carrying value. During the years ended December

2019

2020

and

2021

, the Company recorded write-downs of

nil

, $

and $

1,368

, respectively, in cost of revenues.

Long-term investments

12 Months Ended

Dec. 31, 2021

Investments in equity investees

Long-term investments

8.	Long-term investments

In June 2017, the Company entered into an agreement with three third-parties to launch JING Medicine Technology (Shanghai) Ltd. (“JING”), an entity

which provides services for product discovery and development, consultation and transfer of pharmaceutical technology. The capital contribution by the Company was RMB26,250 in cash, which was paid by the Company in 2017 and 2018, representing 20% and 18% of the equity interest of JING as of December 31, 2020 and 2021, respectively. The Company accounts for this investment using the equity method of accounting due to the fact that the Company can exercise significant influence on the

investee. The Company recorded its gain on deemed disposal in this investee of

nil

and $

463

for the years ended December 31, 2019, 2020 and 2021, respectively. The Company recorded share of loss in this investee of $

752

, $

1,119

and $

1,520

for its portion of JING’s net loss for the year ended December 31, 2019, 2020 and 2021, respectively.

In July 2021, the Company made an equity investment in MacroGenics Inc. (“MacroGenics”), a biopharmaceutical company focused on developing and commercializing innovative monoclonal antibody-based therapeutics for the treatment of cancer, in a private placement with total contributions of $30,000 and obtained 958,467 newly issued common shares of MacroGenics at $31.30 per share (see Note17). The Company recorded this investment at acquisition cost and subsequently measured at fair value, with the changes in fair value recognized in

other income (expenses

)

, net in

the consolidated

statement

of operations. The Company recognized its fair value loss of nil, nil and $14,617 for the years ended December 31, 2019, 2020 and 2021, respectively.

Property and Equipment, net

12 Months Ended

Dec. 31, 2021

Property and equipment, net

Property and equipment, net

9.	Property and equipment, net

Property and equipment consist of the following:


	As of December 31,
	2020			2021
	$			$
Office equipment		430			836
Electronic equipment		2,646			5,036
Vehicle		143			220
Laboratory equipment		11,933			17,069
Manufacturing equipment		12,198			14,600
Leasehold improvements		9,641			10,432
Construction in progress		2,423			11,334

		39,414			59,527
Less: accumulated depreciation		(10,252	)		(16,425	)

Property and equipment, net		29,162			43,102

Depreciation expenses for the years ended December 31, 2019, 2020 and 2021 were $3,372, $4,324 and $5,994, respectively.

Lease

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lease

10.

Lease

The Company leases facilities for office, research and development and manufacturing facilities in mainland China, Hong Kong, Taiwan, and the United States. Lease terms vary based on the nature of operations and the market dynamics, however, all leased facilities are classified as operating leases with remaining lease terms between one and seven years.

Total lease expense related to short-term leases was insignificant for the years ended December 31, 2019, 2020 and 2021.

Supplemental information related to leases was as follows:


	Year ended December 31,
	2019		2020		2021
	$		$		$
Operating fixed lease cost		3,245		4,539		6,263

Supplemental cash flow information related to leases was as follows:


	Year ended December 31,
	2019		2020		2021
	$		$		$
Cash paid for amounts included in measurement of lease liabilities		2,778		4,056		5,840
Non-cash operating lease liabilities arising from obtaining operating right-of-use assets		10,876		6,393		2,183

The maturities of lease liabilities in accordance with

Leases (Topic 842)

in each of the next five years and thereafter as of December 31, 2021 were as follows:


	Year ended December 31
	$
2022		6,153
2023		2,571
2024		2,240
2025		2,186
2026		1,638
Thereafter		1,213

Total lease payments		16,001
Less: imputed interest		(461	)

Present value of minimum operating lease payments		15,540

Weighted-average remaining lease terms and discount rates are as follows:


	Year ended December 31,
	2020			2021
Weighted-average remaining lease term		5.0 years			4.2 years
Weighted-average discount rate		2.3	%		2.3	%

Product revenue, net

12 Months Ended

Dec. 31, 2021

Revenue

Product revenue, net

11.	Product revenue, net

The Company’s product revenue is primarily derived from the sale of ZEJULA, Optune, QINLOCK and NUZYRA in mainland China and Hong Kong. The table below presents the Company’s net product sales for the years ended December 31, 2019, 2020 and 2021.


	Year ended December 31,
	2019		2020			2021
	$		$			$
Product revenue — gross		12,985		57,355			190,180
Less: Rebate and sales return		—		(8,397	)		(46,075	)

Product revenue — net		12,985		48,958			144,105

Sales rebates are offered to distributors in mainland China and the amounts are recorded as a reduction of revenue. Estimated rebates are determined based on contracted rates, sales volumes an

level of distributor inventories.

The sales rebates included $3,051 and $29,547 compensation to distributors for those products previously sold at the price prior to the National Reimbursement Drug List (“NRDL”) implementation, due to the inclusion of ZEJULA in the NRDL, for the years ended December 31, 2020 and 2021, respectively. There was no such compensation for the year ended December 31, 2019.

The following table disaggregates net revenue by product for the years ended December 31, 2019, 2020 and 2021:


	Year ended December 31,
	2019		2020		2021
	$		$		$
ZEJULA		6,625		32,138		93,579
Optune		6,360		16,418		38,903
QINLOCK		—		402		11,620
NUZYRA		—		—		3

Total product revenue — net		12,985		48,958		144,105

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
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-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 12
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Income Tax

12 Months Ended

Dec. 31, 2021

Income tax

Income tax

12.	Income Tax

Cayman Islands (“Cayman”)

Zai Lab Limited, ZLIP Holding Limited, Zai Auto Immune Limited, and Zai Anti Infectives Limited are incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, Zai Lab Limited, ZLIP Holding Limited, Zai Auto Immune Limited, and Zai Anti Infectives Limited are not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

British Virgin Islands Taxation (“BVI”)

ZL Capital Limited is incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands, ZL Capital Limited is not subject to income tax.

Australia (“AUST”)

Zai Lab (AUST) Pty., Ltd. is incorporated in Australia and is subject to corporate income tax at a rate of 30%. Zai Lab (AUST) Pty., Ltd. has no taxable income for all periods presented, therefore, no provision for income taxes is required.

United States (“U.S.”)

Zai Lab (US) LLC is incorporated in

the United States

and is subject to U.S. federal corporate income tax at a rate of 21%. Zai Lab (US) LLC is also subject to state income tax in Delaware. Zai Lab (US) LLC has no taxable income for all periods presented, therefore, no provision for income taxes is required.

Taiwan (“TW”)

Zai Lab (Taiwan) Limited is incorporated in Taiwan and is subject to corporate income tax at a rate of 20%. Zai Lab (Taiwan) Limited has no taxable income for all periods presented, therefore, no provision for income taxes is required.

Hong Kong (“HK”)

Zai Lab (Hong Kong) Limited, ZL China Holding Two Limited, Zai Auto Immune (Hong Kong) Limited, and Zai Anti Infectives (Hong Kong) Limited are incorporated in Hong Kong. Companies registered in Hong Kong are subject to Hong Kong profits tax on the taxable income as reported in their respective statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. Under the

two-tiered

profits tax rates regime in Hong Kong, the first HK$2 million of profits of the qualifying

group

entity will be taxed at 8.25%, and profits above HK$2 million will be taxed at 16.5%. For the years ended December 31, 2019, 2020 and 2021, Zai Lab (Hong Kong) Limited, ZL China Holding Two Limited, Zai Auto Immune (Hong Kong) Limited, and Zai Anti Infectives (Hong Kong) Limited did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong for any of the periods presented. Under the Hong Kong tax law, Zai Lab (Hong Kong) Limited, ZL China Holding Two Limited, Zai Auto Immune (Hong Kong) Limited, and Zai Anti Infectives (Hong Kong) Limited are exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

People’s Republic of China

Under EIT

Law,

the statutory income tax rate is 25%, and the EIT rate will be reduced to 15% for state-encouraged High and New Technology Enterprises (“HNTE”). Zai Lab (Shanghai) Co., Ltd., first obtained a HNTE certificate in 2018 and began to enjoy the preferential tax rate of 15% from 2018 to 2021 and further extended the certificate in 2021 effective for 2021 to 2023. Zai Lab International Trading (Shanghai) Co., Ltd., Zai Lab (Suzhou) Co., Ltd., Zai Biopharmaceutical (Suzhou) Co., Ltd., and Zai Lab Trading (Suzhou) Co., Ltd. are subject to the statutory rate of 25%

No provision for income taxes has been required to be accrued because Zai Lab Limited and all of its subsidiaries are in cumulative loss positions for all the periods presented.

Loss (income) before income taxes consists of:


	Year ended December 31,
	2019			2020		2021
	$			$		$

Cayman		(3,241	)		2,612		28,401
BVI		2			3		2
Mainland China		185,239			220,813		340,865
HK		3,271			20,022		243,400
US		9,786			24,616		89,374
AUST		14			839		1,758
TW		—			—		671

		195,071			268,905		704,471

Reconciliations of the differences between the

Chinese

statutory income tax rate and the Company’s effective income tax rate for the years ended December 31, 2019, 2020 and 2021 are as follows:


	Year ended December 31,
	2019			2020			2021
Statutory income tax rate		25	%		25	%		25	%
Share-based compensations		(1.51	%)		(1.36	%)		(0.92	%)
Non-deductible expenses		(0.39	%)		(1.17	%)		(5.78	%)
Prior year tax filing adjustment		1.93	%		1.78	%		1.50	%
Effect of different tax rate of subsidiary operation in other jurisdictions		0.07	%		(1.04	%)		(4.60	%)
Preferential tax rate		(9.14	%)		(7.48	%)		(4.30	%)
Effect of change in tax rate		(9.15	%)		—			—
Changes in valuation allowance		(6.81	%)		(15.73	%)		(10.90	%)

Effective income tax rate		—			—			—

The principal components of the deferred tax assets and liabilities are as follows


	Year ended December 31,
	2019			2020			2021
	$			$			$
Deferred tax assets:
Depreciation of property and equipment, net		57			84			108
Government grants		325			400			496
Deferred revenue		—			2,069			3,733
Public welfare donations		—			7,627			10,246
Net operating loss carry forwards		62,833			94,954			175,101
Less: valuation allowance		(63,215	)		(105,134	)		(189,684	)

Deferred tax assets, net		—			—			—

The Company considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more likely than not realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses and forecasts of future profitability. These assumptions require significant judgment and the forecasts of future taxable income are consistent with the plans and estimates the Company is using to manage the underlying businesses. Valuation allowances are established for deferred tax assets based on a more likely than not threshold. The Company’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. In 2020 and 2021, the Company has determined that the deferred tax assets on temporary differences and net operating loss carry forwards are related to certain subsidiaries, for which the Company is not able to conclude that the future realization of those net operating loss carry forwards and other deferred tax assets are more likely than not. As such, it has fully provided valuation allowance for the deferred tax assets as of December 31, 2020 and 2021. Amounts of operating loss carry forwards were $403,460

$605,226 and $1,089,745 for the years ended December 31, 2019, 2020 and 2021, respectively, which are expected to expire from 2022 to 2031.

Movement of the valuation allowance is as follows:


	2020			2021
	$			$
Balance as of January 1,		(63,215	)		(105,134	)
Additions		(41,919	)		(84,550	)

Balance as of December 31,		(105,134	)		(189,684	)

Uncertainties exist with respect to how the current income tax law in mainland China applies to the Company’s overall operations, and more specifically, with regard to tax residency status. The EIT Law includes a provision specifying that legal entities organized outside of mainland China will be considered residents for Chinese income tax purposes if the place of effective management or control is within mainland China. The implementation rules to the EIT Law provide that

non-resident

legal entities will be considered Chinese residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting and properties, occurs within mainland China. Despite the present uncertainties resulting from the limited Chinese tax guidance on the issue, the Company does not believe that the legal entities organized outside of mainland China within the Company should be treated as residents for EIT Law purposes. If the Chinese tax

authorities subsequently determine that the Company and its subsidiaries registered outside mainland China should be deemed resident enterprises, the Company and its subsidiaries registered outside mainland China will be subject to the Chinese income taxes, at a rate of 25%. The Company is not subject to any other uncertain tax position.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
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-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Other current liabilities

12 Months Ended

Dec. 31, 2021

Other current liabilities

Other current liabilities

13.	Other current liabilities

Other current liabilities consist of followings:


	As of December 31,
	2020		2021
	$		$
Payroll		13,694		25,685
Accrued professional service fee		3,128		4,319
Payables for purchase of property and equipment		788		2,568
Accrued rebate to distributors		7,067		15,001
Tax payables		952		8,817
Others (note (i))		4,567		4,421

Total		30,196		60,811

Note:

(i)	Others are mainly payables to employees for exercising the share-based compensations, payables related to travel and business entertainment expenses.

Loss per share

12 Months Ended

Dec. 31, 2021

Loss per share

Loss per share

14.	Loss per share

Basic and diluted net loss per share for each of the years presented are calculated as follow:


	For the years ended December 31,
	2019			2020			2021
Numerator:
Net loss attributable to ordinary shareholders		(195,071	)		(268,905	)		(704,471	)
Denominator:
Weighted average number of ordinary shares- basic and diluted		64,369,490			77,667,743			92,992,112

Net loss per share-basic and diluted		(3.03	)		(3.46	)		(7.58	)

As a result of the Company’s net loss for the three years ended December 31, 2019, 2020 and 2021, share options and

non-vested

restricted shares outstanding in the respective periods were excluded from the calculation of diluted loss per share as their inclusion would have been anti-dilutive.


	As of December 31,
	2019		2020		2021
Share options		9,122,980		8,755,920		8,101,559
Non-vested restricted shares		743,268		541,750		956,736

Related Party Transactions

12 Months Ended

Dec. 31, 2021

Related party transactions

Related party transactions

15.	Related party transactions

The table below sets forth the major related party and the relationship with the Company as of December 31, 2021:


Company Name		Relationship with the Company
MEDx (Suzhou) Translational Medicine Co., Ltd.		Significant influence held by Samantha Du’s (Director, Chairwoman and Chief Executive Officer of the Company) immediate family

For the years ended December 31, 2019, 2020 and 2021, the Company incurred $234, $678 and $680

research and development expenses with MEDx (Suzhou) Translational Medicine Co., Ltd. for product research and development services, respectively. All of the transactions are carried out with normal business terms and are on arms’ length basis.

Share-based compensation

12 Months Ended

Dec. 31, 2021

Share-based compensation

Share-based compensation

16.	Share-based compensation

On March 5, 2015, the Board of Directors of the Company approved an Equity Incentive Plan (the “2015 Plan”) which is administered by the Board of Directors. Under the 2015 Plan, the Board of Directors may grant options to purchase ordinary shares to management including officers, directors, employees and individual advisors who render services to the Company to purchase an aggregate of no more than 4,140,945 ordinary shares of the Company (“Option Pool”). Subsequently, the Board of Directors approved the increase in the Option Pool to 7,369,767 ordinary shares.

In connection with the completion of the initial public offering (the “IPO”), the Board of Directors has approved the 2017 Equity Incentive Plan (the “2017 Plan”) and all equity-based awards subsequent to the IPO would be granted under the 2017 Plan.

Share options

In 2019, the Company granted 1,067,385 share options to certain management, employees and individual advisors of the Company at the exercise price ranging from $27.23 to $41.59 per share under the 2017 Plan. These options granted have a contractual term of ten years and generally vest over a five or three-year period, with 20% or 33.3% of the awards vesting beginning on the anniversary date one year after the grant date.

In 2020, the Company granted 1,220,177 share options to certain management, employees and individual advisors of the Company at the exercise price ranging from $44.94 to $128.72 per share under the 2017 Plan. These options granted have a contractual term of ten years and generally vest over a five or three-year period, with 20% or 33.3% of the awards vesting beginning on the anniversary date one year after the grant date.

In 2021, the Company granted 733,893 share options to certain management, employees and individual advisors of the Company at the exercise price ranging from $66.92 to $180.00 per share under the 2017 Plan. These options granted have a contractual term of ten years and generally vest over a five, four or three-year period, with 20%, 25% or 33.3% of the awards vesting beginning on the anniversary date one year after the grant date.

The following table presents the assumptions used to estimate the fair values of the share options granted in the years presented:


	2019	2020	2021
Risk-free rate of return	1.6%-2.5%	0.4%-0.8%	0.9%-1.4%
Contractual life of option	10 years	10 years	10 years
Expected term	6 or 6.5 years	6 or 6.5 years	6, 6.25 or 6.5 years
Estimated volatility rate	70%	70%	65%
Expected dividend yield	0%	0%	0%
Fair value of underlying ordinary shares	$27.23-$41.59	$44.94-$128.72	$66.92-$180.00

A summary of option activity under the 2015 Plan and 2017 Plan during the years ended December 31, 2019, 2020 and 2021 is presented below:


	Number of options			Weighted average exercise price		Weighted average remaining contractual term		Aggregate intrinsic value
				$		Years		$
Outstanding at December 31, 2020		8,755,920			17.26		6.53		1,033,899
Granted		733,893			126.02		—		—
Exercised		(1,235,340	)		6.00		—		—
Forfeited		(152,914	)		64.22		—		—

Outstanding at December 31, 2021		8,101,559			27.94		5.98		339,570

Vested and exercisable as of December 31, 2021		5,174,961			9.25		4.89		279,783
Vested or expected to vest as of December 31, 2021		8,101,559			27.94		5.98		339,570

The weighted-average grant-date fair value of the options granted in 2019, 2020 and 2021 were $20.98, $40.60 and $126.02 per share, respectively. The Company recorded compensation expense related to the options of

14,925

, $

18,695

and $

27,194

for the years ended December

2019

2020

and

2021

, respectively, which were classified in the accompanying consolidated statements of operations as follows:


	Year ended December 31,
	2019		2020		2021
	$		$		$
Selling, general and administrative		6,931		11,492		15,568
Research and development		7,994		7,203		11,626

Total		14,925		18,695		27,194

As of December 31, 2021, there was $94,823 of total unrecognized compensation expense related to unvested share options granted. That cost is expected to be recognized over a weighted-average period of 2.81

years based on the number of unvested shares and unrecognized years.

Non-vested

restricted shares

In 2019, 50,000 ordinary shares were authorized for grant to the independent directors, respectively. The restricted shares shall vest and be released from the restrictions in full on the first anniversary from the date of the agreement. Upon termination of an independent director’s service with the Company for any reason, any shares that are outstanding and not yet vested will be immediately forfeited.

In 2019, 121,000 ordinary shares were authorized for grant to certain management.

One fifth

of the

restricted

shares will vest and be released from the restrictions on each yearly anniversary from the date of the agreement. Upon termination of the certain management’s service with the Company for any reason, any shares that are outstanding and not yet vested will be immediately forfeited.

In 2020, 50,000 ordinary shares were authorized for grant to the independent directors. The restricted shares will vest and be released from the restrictions in full on the first anniversary from the date of the agreement. Upon termination of the independent directors’ service with the Company for any reason, any shares that are outstanding and not yet vested will be immediately forfeited.

In 2020, 109,250 ordinary shares were authorized for grant to certain management.

One fifth

of the restricted shares will vest

and

be released from the restrictions on each yearly anniversary from the date of the agreement. Upon termination of the certain management’s service with the Company for any reason, any shares that are outstanding and not yet vested will be immediately forfeited.

In 2021, 19,260 ordinary shares were authorized for grant to the independent directors. These restricted shares will vest and be released from the restrictions in full on the first anniversary from the date of the agreement. In addition, 16,257 ordinary shares were authorized for grant to the independent directors. One third of these restricted shares will vest and be released from the restrictions on each yearly anniversary from the date of the agreement. Upon termination of the independent directors’ service with the Company for any reason, any shares that are outstanding and not yet vested will be immediately forfeited.

In 2021, 359,242 ordinary shares were authorized for grant to certain management. 20% or 25% of these restricted shares will vest and be released from the restrictions on each yearly anniversary from the date of the agreement. In addition, 231,640 ordinary shares were authorized for grant to certain management. 50% of these

restricted shares will vest and be released from the restrictions on Jan 1, 2024 and 50% will vest

and be released from the restrictions on January 1, 2026. Also, 30,000 ordinary shares were authorized for grant to certain management. 50% of these restricted shares will vest and be released from the restrictions immediately and 50% will vest and be released from the restrictions on the first anniversary from the date of the agreement. Upon termination of the certain management’s service with the Company for any reason, any shares that are outstanding and not yet vested will be immediately forfeited.

The Company measured the fair value of the

non-vested

restricted shares as of respective grant dates and recognized the amount as compensation expense over the deemed service period using a graded vesting attribution model on a straight-line basis.

The following table summarized the Company’s

non-vested

restricted share activity in 2021:


	Numbers of non-vested restricted shares			Weighted average grant date fair value
				$
Non-vested as of December 31, 2020		541,750			37.36
Granted		656,399			105.54
Vested		(205,450	)		37.17
Forfeited		(35,963	)		74.82

Non-vested as of December 31, 2021		956,736			82.62

As of December 31, 2021, there was $69,264 of total unrecognized compensation expense related to

non-vested

restricted shares. The Company recorded compensation expense related to the restricted shares of $5,366, $6,135 and $13,520 for the years ended December 31, 2019, 2020 and 2021, respectively, which were classified in the accompanying consolidated statements of operations as follows:


	Year ended December 31,
	2019		2020		2021
	$		$		$
Selling, general and administrative		3,643		4,226		7,626
Research and development		1,723		1,909		5,894

Total		5,366		6,135		13,520

Licenses and collaborative arrangement

12 Months Ended

Dec. 31, 2021

Licenses And Collaborative Arrangement [Abstract]

Licenses and collaborative arrangement

17.	Licenses and collaborative arrangement

The following is a description of the Company’s significant ongoing collaboration agreements for the year ended December 31, 2021.

In September 2016,

the Company entered into a collaboration, development and license agreement with Tesaro, Inc, a company later acquired by GSK, pursuant to which it obtained an exclusive sublicense under certain patents and know-how of GSK (including such patents and know-how licensed from Merck, Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc., and AstraZeneca UK Limited) to develop, manufacture and commercialize GSK’s proprietary PARP inhibitor, niraparib, in mainland China, Hong Kong and Macau for the diagnosis and prevention of any human diseases or conditions (other than prostate cancer). The Company also obtained the right of first negotiation to obtain a license to develop and commercialize certain follow-on compounds of niraparib being developed by GSK in the licensed territory. Under the agreement, the Company agreed not to research, develop or commercialize certain competing products, and the Company also granted GSK the right of first refusal to license certain immuno-oncology assets developed by us. In February 2018, the Company entered into an amendment with GSK that eliminated GSK’s option to co-market niraparib in the licensed territory.

Under the terms of the agreement, the Company made an upfront payment of $15,000 and one milestone payment of $1,000, and accrued one development milestone payment of $3,500 and one sales-based milestone of $8,000 to GSK. On top of those, if the Company achieves other specified regulatory, development and commercialization milestones, the Company may be additionally required to pay further milestone payments up to $28,000 to GSK. In addition, the Company will pay GSK tiered royalties on the net sales of the licensed products, until the later of the expiration of the

last-to-expire

licensed patent covering the licensed product, the expiration of regulatory exclusivity for the licensed product, or the tenth anniversary of the first commercial sale of the licensed product, in each case on a

product-by-product

and

region-by-region

basis.

The Company has the right to terminate this agreement at any time by providing written notice of termination.

License and collaboration agreement with Paratek Bermuda Ltd. (“Paratek”)

In April 2017, the Company entered into a license and collaboration agreement with Paratek Bermuda Ltd., a subsidiary of Paratek Pharmaceuticals, Inc., pursuant to which it obtained both an exclusive license under certain patents and

know-how

of Paratek and an exclusive

sub-license

under certain intellectual property that Paratek licensed from Tufts University to develop, manufacture and commercialize products containing omadacycline

(ZL-2401)

as an active ingredient in Greater China in the field of all human therapeutic and preventative uses other than biodefense. Under certain circumstances, the exclusive

sub-license

to certain intellectual property Paratek licensed from Tufts University may be converted to a

non-exclusive

license if Paratek’s exclusive license from Tufts University is converted to a

non-exclusive

license under the Tufts Agreement. The Company also obtained the right of first negotiation to be Paratek’s partner to develop certain derivatives or modifications of omadacycline in our licensed territory. Paratek retains the right to manufacture the licensed product in our licensed territory to support development and commercialization of the same outside our licensed territory. The Company also granted to Paratek a

non-exclusive

license to certain of our intellectual property. Under the agreement, the Company agreed not to commercialize certain competing products in our licensed territory.

Under the terms of the agreement, the Company made an upfront payment of $7,500 to Paratek and two milestone payments totaling $8,000

and accrued one milestone payment of $6,000 to Paratek, and the Company may be required to pay further milestone payments of up to an aggregate of

$40,500

to Paratek for the achievement of certain development and sales milestone events. In addition, the Company will pay to Paratek tiered royalties on the net sales of licensed products, until the later of the abandonment, expiration or invalidation of the last-to-expire licensed patent covering the licensed product, or the eleventh anniversary of the first commercial sale of the licensed product, in each case on a product-by-product and
region-by-region basis.

The Company has the right to terminate this agreement at any time by providing written notice of termination to Paratek.

License and collaboration agreement with Five Prime Therapeutics, Inc. (“Five Prime”)

In December 2017, the Company entered into a license and collaboration agreement with Five Prime, pursuant to which it obtained an exclusive license under certain patents and

know-how

of Five Prime to develop and commercialize products containing Five Prime’s proprietary afucosylated FGFR2b antibody known as bemarituzumab (FPA144) as an active ingredient in the treatment or prevention of any disease or condition in humans in Greater China.

Under the terms of the agreement, the Company made an upfront payment of $5,000 and a milestone payment of $2,000 to Five Prime. Additionally, the Company may be required to pay further development and regulatory milestone payments of up to an aggregate of $37,000 to Five Prime. The Company is also be obligated to pay Five Prime a royalty, on a licensed

product-by-licensed

product and

region-by-region

basis, depending on the number of patients the Company enrolls in the bemarituzumab study, subject to reduction in certain circumstances, on net sales of each licensed product in the licensed territory until the latest of (i) the 11th anniversary of the first commercial sale of such licensed product in such region, (ii) the expiration of certain patents covering such licensed product in such region, and (iii) the date on which any applicable regulatory, pediatric, orphan product or data exclusivity with respect to such licensed product expires in such region.

The Company has the right to terminate this agreement at any time by providing written notice of termination to Five Prime.

License and collaboration agreement with Entasis Therapeutics Holdings Inc.(“Entasis”)

In April 2018, the Company entered into a license and collaboration agreement with Entasis, pursuant to which it obtained an exclusive license under certain patents and

know-how

of Entasis to develop and commercialize products containing Entasis’ proprietary compounds known as durlobactam (ETX2514) and Sulbactam (ETX2514SUL) as an active ingredient with the possibility of developing and commercializing a combination of such compounds with Imipenem in all human diagnostic, prophylactic and therapeutic uses in Greater China, Korea, Vietnam, Thailand, Cambodia, Laos, Malaysia, Indonesia, the Philippines, Singapore, Australia, New Zealand and Japan. The Company’s rights to develop and commercialize the licensed products are limited to the lead product (Sulbactam) until such lead product receives initial FDA approval in the United States.

Under the terms of the agreement, the Company made an upfront payment of $5,000 and two development milestone payments totaling $7,000 to Entasis. Additionally, the Company may be required to pay Entasis development, regulatory and research milestone payments (other than existing ones) and commercial milestone payments of up to an aggregate of $91,600. The Company is also responsible for a portion of the costs of the global pivotal Phase III clinical trial of

SUL-DUR

outside of the territory. The Company is also obligated to pay Entasis a royalty based on a percentage of net sales of licensed products, depending on the amount of net sales of licensed products in the territory, subject to reduction in certain circumstances, until, with

respect to a licensed product in a region in the territory, the latest of (i) the 10th anniversary of the first commercial sale of such licensed product in such region, (ii) the expiration of certain patents covering such licensed product in such region, and (iii) the date on which any applicable regulatory, pediatric, orphan product or data exclusivity with respect to such licensed product expires in such region.

The

Company has the right to terminate this agreement at any time by providing written notice of termination to Entasis.

License and collaboration agreement with Crescendo Biologics Ltd. (“Crescendo”)

In May 2018, the Company and Crescendo entered into an exclusive, worldwide licensing agreement, under which the Company will develop, commercialize, and manufacture a topical, innovative antibody VH domain therapeutic for potential application in inflammatory indications.

Under the terms of the agreement, Crescendo granted to the Company a worldwide exclusive license to develop and commercialize its product candidate for all indications. The Company will be responsible for conducting all regulatory filings, clinical studies, and commercialization activities, with both companies participating in a Joint Development Committee.

In October 2020, the Company and Crescendo entered into a supplemental license agreement, under which Crescendo granted to the Company a

non-exclusive,

worldwide license to use the Crescendo VH HLEs in connection with the development, commercialization, manufacture and other exploitation of VH HLE licensed products.

Under the terms of these two agreements, the Company paid two upfront fee payments totalling $4,500 and three milestone payments totalling $6,000, to Crescendo, and the Company will provide development, regulatory, and commercial milestones for multiple indications up to an aggregate of $298,075. Crescendo will also be eligible to receive tiered royalties on global sales.

The Company has the right to terminate this agreement at any time by providing written notice of termination to Crescendo.

License and collaboration agreement with NovoCure

In September 2018, the Company entered into a license and collaboration agreement with NovoCure, pursuant to which it obtained an exclusive license under certain patents and

know-how

of NovoCure to develop and commercialize Tumor Treating Fields products in all human therapeutic and preventative uses in the field of oncology in Greater China.

Under the terms of the agreement, the Company paid an upfront license fee in the amount of $15,000 and two milestone payments totaling $10,000 to Novocure. The Company also agreed to pay certain development, regulatory and commercial milestone payments up to an aggregate of $68,000, and tiered royalties at percentage rates on the net sales of the Licensed Products in the Territory. The Company will purchase licensed products exclusively from Novocure at Novocure’s fully burdened manufacturing cost.

The Company has the right to terminate this agreement at any time by providing written notice of termination to Novocure.

License and collaboration agreement with MacroGenics

In November 2018, The Company entered into a collaboration agreement with MacroGenics, pursuant to which it obtained an exclusive license under certain patents and

know-how

of MacroGenics to develop and commercialize margetuximab, tebotelimab

(MGD-013)

and an undisclosed multi-specific TRIDENT molecule in

pre-clinical

development, each as an active ingredient in all human fields of use, except to the extent limited by any applicable third party agreement of MacroGenics in Greater China.

Under the terms of the agreement, the Company paid an upfront license fee of $25,000 and two milestone payments in total of $4,000

, and

accrued one milestone payment of $5,000 to MacroGenics. The Company also agreed to pay certain development and regulatory-based milestone payments up to an aggregate of

$131,000, and tiered royalties at percentage rates for net sales of Margetuximab, tebotelimab and TRIDENT molecule in the territory.

The Company has the right to terminate this agreement at any time by providing written notice of termination to MacroGenics.

In June 2021, the Company entered into a collaboration and license agreement with MacroGenics, pursuant to which the Company and MacroGenics made four collaboration programs involving up to four immuno-oncology molecules. The first collaboration program covers a lead research molecule that incorporates MacroGenics’ DART platform and binds CD3 and an undisclosed target that is expressed in multiple solid tumors. The second collaboration program will cover a target to be designated by MacroGenics. For both molecules, the Company received commercial rights in Greater China, Japan, and Korea and MacroGenics received commercial rights in all other territories. For the lead molecule, the Company receives an option upon reaching a predefined clinical milestone to convert the regional arrangement into a global 50/50 profit share. The Company also obtained exclusive, global licenses from MacroGenics to develop, manufacture and commercialize two additional molecules. For these four programs, each Company will contribute intellectual property to generate either

CD3-

or CD47-based bispecific antibodies.

Under the terms of the agreement, the Company paid an upfront payment of $25,000 to MacroGenics. In addition, MacroGenics is also eligible to receive up to $1,386,000 in potential development, regulatory and commercial milestone payments for the four programs. If products from the collaboration are commercialized, MacroGenics would also receive royalties on annual net sales in the Company’s territories.

Pursuant to the collaboration and license agreement, the Company also made an equity investment of $30,000 in MacroGenics’ common stock at $31.30 per share in July 2021 (see Note 8).

The Company has the right to terminate this agreement at any time by providing written notice of termination to MacroGenics.

License and collaboration agreement with Deciphera

In June 2019, the Company entered into a license agreement with Deciphera, pursuant to which it obtained an exclusive license under certain patents and

know-how

of Deciphera to develop and commercialize products containing ripretinib in the field of the prevention, prophylaxis, treatment, cure or amelioration of any disease or medical condition in humans in Greater China.

Under the terms

of the agreement, the Company paid Deciphera an upfront license fee of $20,000 and three milestone payments totaling $12,000. The Company also agreed to pay certain additional development, regulatory and commercial milestone payments up to an aggregate of $173,000, and tiered royalties on the net sales of the licensed products in the territory.

The Company has the right to terminate this agreement at any time by providing written notice of termination to Deciphera.

License and collaboration agreement with Incyte Corporation (“Incyte”)

In July 2019,

the Company entered into a collaboration and license agreement with Incyte, pursuant to which it obtained an exclusive license under certain patents and know-how of Incyte to develop, and commercialize products containing retifanlimab (INCMGA012) as an active ingredient in the treatment, palliation, diagnosis or prevention of diseases in the fields of hematology or oncology in humans in Greater China.

Under

the terms of agreement, the Company paid Incyte an upfront license fee of $17,500. The Company also agreed to pay certain development, regulatory and commercial milestone payments of up to an aggregate of $60,000, and tiered royalties at percentage rates on the net sales of retifanlimab in Greater China.

The Company has the right to terminate this agreement at any time by providing written notice of termination to Incyte.

Collaboration agreement with Regeneron Pharmaceuticals, Inc (“Regeneron”)

In April 2020, the Company entered into a collaboration agreement with Regeneron Ireland Designated Activity Company, an affiliate of Regeneron pursuant to which it obtained for Greater China the exclusive oncology development and commercialization rights for products containing odronextamab as the sole active ingredient. We also obtained a right of first negotiation for additional indications outside the field of cancer.

Under the terms of the agreement, the Company paid an upfront payment of $30,000 to Regeneron. Regeneron is also eligible to receive up to $160,000 in additional regulatory and sales milestones. Additionally, the Company will make payments to Regeneron based on net sales, such that Regeneron shares in a significant portion of any potential profits. Regeneron will be responsible for the manufacture and supply of odronextamab for the Company’s development and commercialization in the region.

The Company has the right to terminate this agreement at any time by providing written notice of termination to Regeneron.

License agreement with Turning Point Therapeutics Inc (“Turning Point”)

In July 2020, the Company entered into an exclusive license agreement with Turning Point pursuant to which Turning Point exclusively licensed to the Company the rights to develop and commercialize products containing repotrectinib as an active ingredient in all human therapeutic indications, in Greater China.

Under the terms of the agreements, the Company paid an upfront payment of $25,000 and three milestone payments totalling $5,000 to Turning Point. Turning Point is also eligible to receive up to $146,000 in development, regulatory and sales milestones.

Turning Point will also be eligible to receive

mid-to-high

teen royalties based on annual net sales of repotrectinib in Greater China.

The Company has the right to terminate this agreement at any time by providing written notice of termination to Turning Point.

In January 2021, the Company entered into a license agreement with Turning Point, which expanded their collaboration. Under the terms of the new agreement, the Company obtained exclusive rights to develop and commercialize

TPX-0022,

Turning Point’s MET, SRC and CSF1R inhibitor, in Greater China.

The Company paid an upfront license fee in the amount of $25,000 and

accrued

one milestone payment of $2,000 to Turning Point. The Company also agreed to pay certain development, regulatory and commercial milestone payments up to an aggregate of $334,000.

Turning Point will also be eligible to receive certain tiered royalties (from mid-teens to low-twenties on a percentage basis and subject to certain reductions) based on annual net sales of TPX-0022 in Greater China. In addition, Turning Point will have the right of first negotiation to develop and commercialize an oncology product candidate discovered by the Company.

License agreement with Cullinan Pearl Corp. (“Cullinan”)

In December 2020, the Company entered into a license agreement with Cullinan Pearl, a subsidiary of Cullinan Management, Inc., formerly Cullinan Oncology, LLC, or Cullinan, pursuant to which it obtained an exclusive license under certain patents and

know-how

of Cullinan to develop, manufacture and commercialize products containing

CLN-081

as an active ingredient in all uses in humans and animals in Greater China.

Under the terms of the agreement, the Company

paid

an upfront payment of $20,000 to Cullinan. Cullinan is also eligible to receive up to $211,000 in development, regulatory and sales-based milestone payments. Cullinan is also eligible to receive high-single-digit to

low-teen

tiered royalties based on annual net sales of

CLN-081

in Greater China.

The Company has the right to terminate this agreement at any time by providing written notice of termination to Cullinan.

License agreement with Takeda Pharmaceutical Company Limited (“Takeda”)

In December 2020, the Company entered into an exclusive license agreement with Takeda. Under the terms of the license agreement, Takeda exclusively licensed to the Company the right to exploit products in the licensed field during the term.

Under the terms of the agreement, the Company

paid

an upfront payment of $6,000 to Takeda. Takeda is also eligible to receive up to $481,500 in development, regulatory and sales-based milestone payments. Takeda is also eligible to receive high-single-digit to

low-teen

tiered royalties based on net sales of each product sold by selling party during each year of the applicable royalty term.

The Company has the right to terminate this agreement at any time by providing written notice of termination to Takeda.

Collaboration and license agreement with argenx BV (“argenx”)

In January 2021, the Company entered into a collaboration and license agreement with argenx. The Company received an exclusive license to develop and commercialize products containing argenx’s proprietary antibody fragment, known as efgartigimod, in Greater China. The Company is responsible for the development of the licensed compound and licensed product and will have the right to commercialize such licensed product in the territory.

Pursuant to the collaboration and license agreement, a share issuance agreement was entered into between the Company and argenx. As the upfront payment to argenx, the Company issued 568,182 ordinary shares of the Company to argenx with par value $0.00006 per share on the closing date of January 13, 2021. In determining the fair value of the ordinary shares at closing, the Company considered the closing price of the ordinary shares on the closing date and included a lack of marketability discount because the shares are subject to certain restrictions. The fair value of the shares on the closing date was determined to be $62,250 in the aggregate. The Company recorded this upfront payment in research and development expenses.

In addition, the Company made a

non-creditable,

non-refundable

development cost-sharing payment of $75,000 and a cash payment of $25,000

to argenx. Argenx is also eligible to receive tiered royalties (from mid-teen to low-twenties on a percentage basis and subject to certain reductions) based on annual net sales of all licensed product in the territory.

Collaboration and license agreement with Mirati Therapeutics, Inc. (“Mirati”)

In May 2021, the Company entered into a collaboration and license agreement with Mirati. The Company obtained the right to research, develop, manufacture and exclusively commercialize adagrasib in Greater China. The Company will support accelerated enrollment in key global, registration-enabling clinical trials of adagrasib in patients with cancer who have a KRASG12C mutation. Mirati has an option to

co-commercialize

in Greater China and retains full and exclusive rights to adagrasib in all countries outside of Greater China.

Under the terms of the agreement, the Company paid an upfront payment of $65,000 to Mirati. Mirati is also eligible to receive up to $273,000 in development, regulatory and sales-based milestone payments. Mirati is also eligible to receive high-teen- to

low-twenties-percent

tiered royalties based on annual net sales of adagrasib in Greater China.

The Company has the right to terminate this agreement at any time by providing written notice of termination to Mirati.

Collaboration and license agreement with Schrödinger, Inc. (“Schrödinger”)

In July 2021, the Company entered into a global discovery, development and commercialization collaboration with Schrödinger, pursuant to which the parties will jointly conduct a research program focused on a novel DNA damage repair program in the area of oncology. Following the selection of a development candidate, the Company will assume primary responsibility for global development, manufacturing and commercialization of the program.

Under the terms of the agreement, the Company paid an upfront payment of $5,000 to Schrödinger. Schrödinger is also eligible to receive up to $337,500

in research, development, and sales-based milestone payments. Schrödinger is also eligible to receive tiered royalties based on annual net sales of commercialized products in Greater China.

The Company has the right to terminate this agreement at any time by providing written notice of termination to Schrödinger.

Collaboration and license agreement with Blueprint Medicines Corporation (“Blueprint”)

In November 2021, the Company entered into a collaboration and license agreement with Blueprint, for the development and commercialization of

BLU-945

and

BLU-701

for the treatment of patients with epidermal growth factor receptor (EGFR) -driven

non-small

cell lung cancer (NSCLC) in Greater China.

Under the terms of the agreement, the Company paid an upfront payment of $25,000 to Blueprint. Blueprint is also eligible to receive up to $590,000 in development, and sales-based milestone payments. Blueprint is also eligible to receive tiered royalties based on annual net sales of commercialized products in Greater China.

The Company has the right to terminate this agreement after the second anniversary of the effective date by providing written notice of termination to Blueprint.

License agreement with Karuna Therapeutics, Inc. (“Karuna”)

In November 2021, the Company entered into a license agreement with Karuna, for the development, manufacturing, and commercialization of KarXT (xanomeline-trospium) in Greater China, including China, Hong Kong, Macau, and Taiwan.

Under the terms of the agreement, the Company paid an upfront payment of $35,000 to Karuna. Karuna is also eligible to receive up to $152,000 in development and regulatory, and sales-based milestone payments. Karuna is also eligible to receive tiered royalties based on annual net sales of commercialized products in Greater China.

The Company has the right to terminate this agreement by providing written notice of termination to Karuna.

As noted above, the Company has entered into various license and collaboration agreements with third party licensors to develop and commercialize product candidates. Based on the terms of these agreements, the Company is contingently obligated to make additional material payments upon the achievement of certain contractually defined milestones. Based on management’s evaluation of the progress of each project noted above, the licensors will be eligible to receive from the Company up to an aggregate of approximately $5,589,506 in future contingent milestone payments dependent upon the achievement of contractually specified development milestones, such as regulatory approval for the product candidates, which may be before the Company has commercialized the product or received any revenue from sales of such product candidate. These milestone payments are subject to uncertainties and contingencies and may not occur.

Restricted Net Assets

12 Months Ended

Dec. 31, 2021

Restricted net assets

Restricted net assets

18.	Restricted net assets

The Company’s ability to pay dividends may depend on the Company receiving distributions of funds from its

Chinese

subsidiaries. Relevant

Chinese

statutory laws and regulations permit payments of dividends by the Company’s

Chinese

subsidiary only out of its retained earnings, if any, as determined in accordance with

Chinese

accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s

Chinese

subsidiaries.

In accordance

with the

China

Company

, a domestic enterprise is required to provide statutory reserves of at least 10% of its annual

after-tax

profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s

Chinese

statutory accounts. A domestic enterprise is also required to provide discretionary surplus reserve, at the discretion of the Board of Directors, from the profits determined in accordance with the enterprise’s

Chinese

statutory accounts. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. The Company’s

Chinese

subsidiaries were established as domestic invested enterprise and therefore is subject to the above-mentioned restrictions on distributable profits.

During the years ended December 31, 2019, 2020 and 2021, no appropriation to statutory reserves was made because the

Chinese

subsidiaries had substantial losses during such periods.

As a result of these

Chinese

laws and regulations subject to the limit discussed above that require annual appropriations of 10% of

after-tax

income to be set aside, prior to payment of dividends, as general reserve fund, the Company’s

Chinese

subsidiary is restricted in their ability to transfer a portion of their net

assets to the Company.

Foreign exchange

and other regulation in

mainland China

may further restrict the Company’s

Chinese

subsidiaries from transferring funds to the Company in the form of dividends, loans and advances. As of December 31, 2020, and 2021, amounts restricted are the

paid-in

capital of the Company’s

Chinese

subsidiaries, which amounted to $255,858 and $406,010 respectively.

Employee defined contribution plan

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Employee defined contribution plan

19.	Employee defined contribution plan

Full time employees of the Company in

mainland China

participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Company’s

Chinese

subsidiary make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $5,406, $4,373 and $17,606 for the years ended December 31, 2019, 2020 and 2021, respectively.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

20.	Commitments and Contingencies

(a)	Purchase commitments

As of December 31, 2021, the Company’s commitments related to purchase of property and equipment contracted but not yet reflected in the consolidated financial statement were $20,413 which are expected to be incurred in the years ended December 31, 2022.

(b)	Contingencies

The Company is a party to or assignee of license and collaboration agreements that may require it to make future payments relating to milestone fees and royalties on future sales of licensed products (Note 17).

Selected quarterly financial data (unaudited)

12 Months Ended

Dec. 31, 2021

Quarterly Financial Information Disclosure [Abstract]

Selected quarterly financial data (unaudited)

21.	Selected quarterly financial data (unaudited)

The following table summarizes the unaudited statements of operations for each quarter of 2021 and 2020. The unaudited quarterly information has been prepared on a basis consistent with the audited financial statements and includes all adjustments that the Company considers necessary for a fair presentation of the information shown. The operating results for any fiscal quarter are not necessarily indicative of the operating results for a full fiscal year or for any future period and there can be no assurances that any trend reflected in such results will continue in the future.


	Quarter Ended,
2021	March 31,			June 30,			September 30,			December 31,
	$			$			$			$

Product revenue, net		20,103			36,935			43,103			43,964
Collaboration revenue		—			—			—			207
Loss from operations		(227,092	)		(170,571	)		(83,205	)		(219,196	)
Net loss		(232,910	)		(163,324	)		(96,412	)		(211,825	)
Net loss attributable to ordinary shareholders		(232,910	)		(163,324	)		(96,412	)		(211,825	)
Basic and diluted net loss per share		(2.64	)		(1.76	)		(1.01	)		(2.22	)


	Quarter Ended,
2020	March 31,			June 30,			September 30,			December 31,
	$			$			$			$

Product revenue, net		8,218			10,995			14,651			15,094
Loss from operations		(46,322	)		(83,966	)		(76,257	)		(95,256	)
Net loss		(47,988	)		(80,629	)		(63,741	)		(76,547	)
Net loss attributable to ordinary shareholders		(47,988	)		(80,629	)		(63,741	)		(76,547	)
Basic and diluted net loss per share		(0.66	)		(1.08	)		(0.84	)		(0.88	)

Subsequent Events

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

22.	Subsequent events

In January

and

February 2022, the Company granted

totalling

45,092 share options to certain management and employees

of the Company at the exercise price from $62.85 to $53.59 per share under the 2017 Plan. These options granted have a contractual term of ten years and generally vest over a 5-year period, with 20

% of the awards vesting beginning on the anniversary date one year after the grant date.

In January

and

February 2022, totalling 20,224

ordinary shares were authorized for grant to certain management and employees of the

Company.

One-

fifth of the restricted shares will vest and be released from the restrictions on each yearly anniversary from the date of the agreement. Upon termination of the certain management and employees’ service with the Company for any reason, any shares that are outstanding and not yet vested will be immediately forfeited.

In January and February 2022, totalling 38,815 ordinary shares were authorized for grant to independent directors of the Company. 100% of the restricted shares will vest and be released from the restrictions on the first anniversary of the date of the agreement. Upon termination of the independent directors’ service with the Company for any reason, any shares that are outstanding and not yet vested will be immediately forfeited.

Financial Statements Schedule I

12 Months Ended

Dec. 31, 2021

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)


	As of December 31,
	2020			2021
	$			$
Assets
Current assets:
Cash and cash equivalents		397,608			591,842
Short-term investments		744,676			445,000
Prepayments and other current assets		1,926			2,364

Total current assets		1,144,210			1,039,206
Investment in subsidiaries		28,090			341,980

Total assets		1,172,300			1,381,186

Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Other current liabilities		2,410			996

Total current liabilities		2,410			996
Deferred income		546			234

Total liabilities		2,956			1,230

Shareholders’ equity
Ordinary shares (par value of US$0.00006 per share; 500,000,000 shares authorized, 87,811,026 and 95,536,398 shares issued and outstanding as of December 31, 2020 and 2021, respectively)		5			6
Additional paid-in capital		1,897,467			2,825,948
Accumulated deficit		(713,603	)		(1,418,074	)
Additional other comprehensive income		(14,525	)		(23,645	)

Treasury stock		—			(4,279	)

Total shareholders’ equity		1,169,344			1,379,956

Total liabilities and shareholders’ equity		1,172,300			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,
	2019			2020			2021
	$			$			$
Operating Expenses:
Research and development		(101	)		(437	)		(6	)
General and administrative		(4,864	)		(7,345	)		(12,074	)

Loss from operations		(4,965	)		(7,782	)		(12,080	)
Interest income		7,987			4,899			1,881
Other income (expenses), net		311			312			(18,173	)

Profit ( Loss ) before income tax and equity in loss of subsidiaries		3,333			(2,571	)		(28,372	)
Equity in loss of subsidiaries		(198,404	)		(266,334	)		(676,099	)
Income tax expense		—			—			—

Net loss attributable to Zai Lab Limited		(195,071	)		(268,905	)		(704,471	)

Net loss		(195,071	)		(268,905	)		(704,471	)
Other comprehensive income (loss) , net of tax of nil:
Foreign currency translation adjustment		1,958			(19,144	)		(9,121	)

Comprehensive loss		(193,113	)		(288,049	)		(713,592	)

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,
	2019			2020			2021
	$			$			$
Cash flows from Operating activities:

Net loss		(195,071	)		(268,905	)		(704,471	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization of deferred income		(312	)		(312	)		(312	)
Share based compensation		2,013			3,025			3,435
Equity in loss of subsidiaries		198,404			266,334			676,099
Loss from fair value changes of equity investment of readily determinable fair value		—			—			14,617
Changes in operating assets and liabilities:
Prepayments and other current assets		(1,267	)		2,253			(439	)
Other current liabilities		102			738			(376	)

Net cash provided by (used in) operating activities		3,869			3,133			(11,447	)

Cash flows from investing activities:
Purchases of short-term investments		(277,640	)		(949,161	)		(445,000	)
Proceeds from maturity of short-term investments		277,990			405,000			743,902
Purchase of investment in equity investee		—			—			(30,000	)
Investment in subsidiaries		(165,924	)		(256,097	)		(884,342	)

Net cash used in investing activities		(165,574	)		(800,258	)		(615,440	)

Cash flows from financing activities:
Proceeds from exercises of stock options		1,055			6,664			7,418
Proceeds from issuance of ordinary shares upon public offerings		216,200			1,137,683			818,875
Payment of public offering costs		(854	)		(4,541	)		(1,692	)
Employee taxes paid related to settlement of equity awards		—			—			(4,253	)

Net cash provided by financing activities		216,401			1,139,806			820,348

Effect of foreign exchange rate changes on cash and cash equivalent		—			(515	)		774

Net increase in cash and cash equivalents		54,696			342,166			194,234
Cash and cash equivalents-beginning of the year		746			55,442			397,608

Cash and cash equivalents-end of the year		55,442			397,608			591,842

Additional financial information of parent company -

Financial statements schedule I

Zai Lab Limited

Financial information of parent company

Notes

(In thousands of U.S. dollars (“$”) except for number of shares and per share data)

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, 2020 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.

Summary of significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of presentation

(a) Basis of presentation

Principles of consolidation

(b) Principles of consolidation

Use of estimates

Foreign currency translation

(d) Foreign currency translation

The functional currency of Zai Lab Limited, Zai Lab (Hong Kong) Limited, Zai Lab (US) LLC and Zai Auto Immune (Hong Kong) Limited are the United States dollar (“$”). The Company’s

Chinese

Foreign Currency Matters

. The Company uses the United States dollar as its reporting currency.

Cash, cash equivalents and restricted cash

(e) Cash, cash equivalents and restricted cash

Cash and cash equivalents

Restricted cash

Restricted cash mainly consists of the bank deposits held as collateral for issuance of letters of credit.

Short-term investments

(f) Short-term investments

Accounts receivable

(g) Accounts receivable

2016-13,

Credit Losses, Measurement of Credit Losses on Financial Instruments

Notes receivable

(h) Notes receivable

Notes receivable is equal to contractual amounts owed from signed, secured promissory notes issued from the customers to the Company. The Company considers the

notes

receivable to be fully collectible. Accordingly,

allowance for credit loss has been established for the year ended December 31, 2021.

Inventories

(i) Inventories

identify obsolete, slow-moving or otherwise

non-saleable

items. The Company will record a write-down to its net realizable value in cost of sales in the period that the decline in value is first identified.

Long-term investments

(j) Long-term investments

Long-term investments represent equity-method investments and equity investments with readily determinable fair values.

Prepayments for equipment

(k) Prepayments for equipment

The prepayments for equipment purchase are recorded in long-term prepayments considering the prepayments are all related to property and equipment.

Property and equipment

(l) Property and equipment


		Useful life
Office equipment		3 years
Electronic equipment		1.25-3 years
Vehicle		4 years
Laboratory equipment		5 years
Manufacturing equipment		10 years
Leasehold improvements		lesser of useful life or lease term

Construction in progress represents property and equipment under construction and pending installation and is stated at cost less impairment losses if any.

Lease

(m) Lease

From January 1, 2019, the Company adopted the ASC Topic 842,

Leases

non-lease

At the commencement date of a lease, the Company recognizes a lease liability for future fixed lease payments and a

right-of-use

2016-02,

right-of-use

assets in the consolidated balance sheets.

Operating leases are included in operating lease

right-of-use

Lease expense is recognized on a straight-line basis over the lease term.

Land use rights

(n) Land use rights

All land in

mainland China

owned by the

Chinese

government. Th

Chinese

government may sell land use rights for a specified period of time. The purchase price of land use rights represents the operating lease prepayments for the rights to use the land in

mainland China

under ASC

842

and is recorded as land use rights on the balance sheet, which is amortized over the remaining lease term.

Long term deposits

(o) Long-term deposits

Long-term deposits represent amounts paid in connection with the Company’s long-term lease agreements.

Value added tax recoverable

(p) Value added tax recoverable

Intangible assets

(q) Intangible assets

Impairment of long-lived assets

(r) Impairment of long-lived assets

Fair value measurements

(s) Fair value measurements

The Company applies ASC topic 820 (“ASC 820”),

Fair Value Measurements and Disclosures

, in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement.

ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Include other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Unobservable inputs which are supported by little or no market activity.


Description	Fair Value as of December 31, 2021		Fair Value Measurement at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1)
	US$		US$
Equity Investments with Readily Determinable Fair Value		15,383		15,383

Revenue recognition

(t) Revenue recognition

In 2018, the Company adopted of ASC Topic 606 (“ASC 606”),

Revenue from Contracts with Customers,

in recognition of revenue

The Company has applied the practical expedients

The Company didn’t recognize any contract assets and contract liabilities as of December 31, 2020 and 2021.

Collaborative arrangements

(u) Collaborative arrangements

Collaborative Arrangements (ASC 808)

. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement.

Research and development expenses

(v) Research and development expenses

Elements of research and development expenses primarily include (i) payroll and other related costs of personnel engaged in research and development activities;(ii)

in-licensed

patent rights fees of exclusive development rights of products granted to the Company, (iii) costs related to

pre-clinical

testing of the Company’s technologies

The Company has acquired rights to develop and commercialize product candidates. Upfront payments that relate to the acquisition of a new product compound, as well as

pre-commercial

milestone payments, are immediately expensed as acquired

in-process

Deferred Income

(w) Deferred income

Huizheng (Shanghai) Pharmaceutical Technology Co., Ltd. (“Hanhui”).

Government grants consist of cash subsidies received by the Company’s subsidiaries in

mainland China

non-creditable,

upfront payment in the amount of RMB

230,000

. The

Company received RMB90,000 in April 2020 and has the right to receive RMB70,000 in December 2021. The Company assessed and determined to record the upfront payment as deferred income and amortize by 10 years from the date when the income recognition criteria is met. In December 2021, the Company obtained the regulatory approval for the commercialization of

NUZYRA

in mainland China which triggered the income recognition criteria and therefore the Company started to amortize the deferred income into collaboration revenue on monthly basis. For the years ended December 31 2019, 2020 and 2021,

nil

and $

207

were recorded in collaboration revenue. As of December 31, 2020 and 2021, a total amount of RMB

90,000

13,793

) and

RMB

158,667

24,886

) was recorded in deferred income.

Comprehensive loss

(x) Comprehensive loss

Comprehensive Income

Stock-based compensation

(y) Share-based compensation

The Company grants share options and

non-vested

restricted shares to eligible employees, management and directors and accounts for these share-based awards in accordance with ASC 718,

Compensation-Stock Compensation.

To the extent the required vesting conditions are not met resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards are reversed.

The Company determined the fair value of the stock options granted to employees using the Black-Scholes option valuation model.

Awards Granted to

Non-Employees

The Company grants share options to eligible

Non-Employees

and accounts for these share-based awards in accordance with ASC 718,

Compensation-Stock Compensation.

Non-Employees’

in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards are reversed. The Company determined the fair value of the stock options granted to

Non-Employees

using the Black-Scholes option valuation model.

Income taxes

(z) Income taxes

(iii) non-current

tax expense, which represents the increases and decreases in amounts related to uncertain tax positions from prior periods and not settled with cash or other tax attributes.

The Company evaluates its uncertain tax positions using the provisions of ASC 740,

Income Taxes

Earnings (Loss) per share

(

) Earnings (loss) per share

Basic earnings (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by weighted average number of ordinary shares outstanding during the period.

Diluted earnings (loss) per ordinary share reflects the potential dilution that could occur if securities were exercised or converted into ordinary shares. The Company had stock options and

non-vested

Segment information

) Segment information

In accordance with ASC 280,

Segment Reportin

presented.

Concentration of risks

(ac) Concentration of risks

Concentration of customers

The following customers accounted for 10% or more of revenue for the years ended December 31, 2019, 2020 and 2021:


	Year ended December 31,
	2019		2020		2021
	$		$		$
A		5,397		*		*
B		4,682		*		*
C		*		15,774		40,634

*	Represents less than 10% of revenue for the years ended December 31, 2019, 2020 and 2021.

Concentration of suppliers

The following suppliers accounted for 10% or more of research and development expenses and the inventory purchases for the years ended December 31, 2019, 2020 and 2021:

Year ended December 31,

2019

2020

2021

27,966

18,362

33,564

26,710

165,431

66,650

*	Represents less than 10% of research and development expenses and the inventory purchases for the years ended December 31, 2019, 2020 and 2021.

Concentration of credit risk

Financial instruments that are potentially subject to significant concentration of credit risk consist of cash and cash equivalents, short-term investments, accounts receivable and notes receivable.

The following debtors accounted for

% or more of balances of accounts receivable as of December 31, 2020 and 2021:


	As of December 31,
	2020		2021
	$		$
C		2,070		10,293
D		726		*
E		*		10,979

*	Represents less than 10% of accounts receivable as of December 31, 2020 and 2021.

Foreign currency risk

which were denominated in RMB, as of December 31, 2020 and 2021, respectively, representing 5% and 2% of the cash and cash equivalents as of December 31, 2020 and 2021, respectively.

Recent accounting pronouncements

(ad) Recent accounting pronouncements

Adopted Accounting Standards

In December 2019, the FASB issued ASU 2019-12,

Income Taxes (Topic 740)

prospectively. The Company adopted this standard on January 1, 2021. There was no material impact to the Company’s financial position or results of operations upon adoption.

Future Adoption of Accounting Standards

In November 2021, the FASB issued ASU

2021-10,

Organization and principal activities (Tables)

12 Months Ended

Dec. 31, 2021

Organization and principal activities

Schedule of Significant Operating Subsidiaries

As of December 31, 2021, the Company’s significant operating subsidiaries are as follows:


Name of company	Place of incorporation	Date of incorporation	Percentage of ownership	Principal activities
Zai Lab (Hong Kong) Limited	Hong Kong	April 29, 2013	100%	Operating company for business development and R&D activities and commercialization of innovative medicines and device
Zai Lab (Shanghai) Co., Ltd.	mainland China	January 6, 2014	100%	Development and commercialization of innovative medicines and devices
Zai Lab (AUST) Pty., Ltd.	Australia	December 10, 2014	100%	Clinical trial activities
Zai Lab (Suzhou) Co., Ltd.	mainland China	November 30, 2015	100%	Development and commercialization of innovative medicines
Zai Biopharmaceutical (Suzhou) Co., Ltd.	mainland China	June 15, 2017	100%	Development and commercialization of innovative medicines
Zai Lab (US) LLC	the United States	April 21, 2017	100%	Operating company for business development, R&D activities and certain business activities, including legal, compliance and communication functions of the Company
Zai Lab International Trading (Shanghai) Co., Ltd.	mainland China	November 6, 2019	100%	Commercialization of innovative medicines and devices
Zai Auto Immune (Hong Kong) Limited	Hong Kong	November 4, 2020	100%	Operating company for business development and R&D activities
Zai Lab (Taiwan) Limited	Taiwan	December 10, 2020	100%	Commercialization of innovative medicines and devices

Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2021

Significant Accounting Policies

Summary of Estimated Useful Lives of Property and Equipment


		Useful life
Office equipment		3 years
Electronic equipment		1.25-3 years
Vehicle		4 years
Laboratory equipment		5 years
Manufacturing equipment		10 years
Leasehold improvements		lesser of useful life or lease term

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

As of December 31, 2021, information about inputs into the fair value measurement of the Company’s assets that are measured at a fair value on a recurring basis in periods subsequent to their initial recognition is as follows:


Description	Fair Value as of December 31, 2021		Fair Value Measurement at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1)
	US$		US$
Equity Investments with Readily Determinable Fair Value		15,383		15,383

Schedule of concentration of risks

The following customers accounted for 10% or more of revenue for the years ended December 31, 2019, 2020 and 2021:


	Year ended December 31,
	2019		2020		2021
	$		$		$
A		5,397		*		*
B		4,682		*		*
C		*		15,774		40,634

*	Represents less than 10% of revenue for the years ended December 31, 2019, 2020 and 2021.

The following debtors accounted for

% or more of balances of accounts receivable as of December 31, 2020 and 2021:


	As of December 31,
	2020		2021
	$		$
C		2,070		10,293
D		726		*
E		*		10,979

*	Represents less than 10% of accounts receivable as of December 31, 2020 and 2021.

Suppliers Accounted for 10% or More of Research and Development Expenses and Inventory Purchases

The following suppliers accounted for 10% or more of research and development expenses and the inventory purchases for the years ended December 31, 2019, 2020 and 2021:

Year ended December 31,

2019

2020

2021

27,966

18,362

33,564

26,710

165,431

66,650

*	Represents less than 10% of research and development expenses and the inventory purchases for the years ended December 31, 2019, 2020 and 2021.

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details

Cash and cash equivalents (Tables)

12 Months Ended

Dec. 31, 2021

Cash and Cash Equivalents [Abstract]

Summary of cash and cash equivalents


	As of December 31,
	2020		2021
	$		$
Cash at bank and in hand		441,283		663,472
Cash equivalents (note (i))		833		300,628

		442,116		964,100

Denominated in:
US$		297,813		932,888
RMB (note (ii))		23,898		23,791
Hong Kong dollar (“HK$” ）		119,695		6,674
Australian dollar (“A$”)		710		475
Taiwan dollar (“TW$”)		—		272

		442,116		964,100

Notes:

(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 Chi nese government.

Accounts receivable (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of allowance for credit losses related to accounts receivable

The roll-forward of the allowance for credit losses related to accounts receivable for the year ended December 31, 2021 consists of the following activity:


	Allowance for Credit Losses
	$
Balance as of December 31, 2020		1
Current period provision for expected credit losses		10
Amounts written-off		—
Recoveries of amounts previously written-off		—

Balance as of December 31, 2021		11

Inventories (Tables)

12 Months Ended

Dec. 31, 2021

Inventories

Schedule of inventory


	As of December 31,
	2020		2021
	$		$
Finished goods		3,041		5,632
Raw materials		10,103		13,231
Work in progress		—		88

Inventories		13,144		18,951

Property and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2021

Property and equipment, net

Schedule of property and equipment

Property and equipment consist of the following:


	As of December 31,
	2020			2021
	$			$
Office equipment		430			836
Electronic equipment		2,646			5,036
Vehicle		143			220
Laboratory equipment		11,933			17,069
Manufacturing equipment		12,198			14,600
Leasehold improvements		9,641			10,432
Construction in progress		2,423			11,334

		39,414			59,527
Less: accumulated depreciation		(10,252	)		(16,425	)

Property and equipment, net		29,162			43,102

Lease (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Summary of supplemental information related to leases

Supplemental information related to leases was as follows:


	Year ended December 31,
	2019		2020		2021
	$		$		$
Operating fixed lease cost		3,245		4,539		6,263

Summary of supplemental cash flow information related to leases

Supplemental cash flow information related to leases was as follows:


	Year ended December 31,
	2019		2020		2021
	$		$		$
Cash paid for amounts included in measurement of lease liabilities		2,778		4,056		5,840
Non-cash operating lease liabilities arising from obtaining operating right-of-use assets		10,876		6,393		2,183

Summary of maturities of lease liabilities

The maturities of lease liabilities in accordance with

Leases (Topic 842)

in each of the next five years and thereafter as of December 31, 2021 were as follows:


	Year ended December 31
	$
2022		6,153
2023		2,571
2024		2,240
2025		2,186
2026		1,638
Thereafter		1,213

Total lease payments		16,001
Less: imputed interest		(461	)

Present value of minimum operating lease payments		15,540

Summary of weighted-average remaining lease terms and discount rates

Weighted-average remaining lease terms and discount rates are as follows:


	Year ended December 31,
	2020			2021
Weighted-average remaining lease term		5.0 years			4.2 years
Weighted-average discount rate		2.3	%		2.3	%

Product revenue, net (Tables)

12 Months Ended

Dec. 31, 2021

Revenue

Schedule of net product sales


	Year ended December 31,
	2019		2020			2021
	$		$			$
Product revenue — gross		12,985		57,355			190,180
Less: Rebate and sales return		—		(8,397	)		(46,075	)

Product revenue — net		12,985		48,958			144,105

Schedule of disaggregation of net revenue

The following table disaggregates net revenue by product for the years ended December 31, 2019, 2020 and 2021:


	Year ended December 31,
	2019		2020		2021
	$		$		$
ZEJULA		6,625		32,138		93,579
Optune		6,360		16,418		38,903
QINLOCK		—		402		11,620
NUZYRA		—		—		3

Total product revenue — net		12,985		48,958		144,105

Income Tax (Tables)

12 Months Ended

Dec. 31, 2021

Income tax

Schedule of Loss (Income) Before Income Taxes

Loss (income) before income taxes consists of:


	Year ended December 31,
	2019			2020		2021
	$			$		$

Cayman		(3,241	)		2,612		28,401
BVI		2			3		2
Mainland China		185,239			220,813		340,865
HK		3,271			20,022		243,400
US		9,786			24,616		89,374
AUST		14			839		1,758
TW		—			—		671

		195,071			268,905		704,471

Schedule of Reconciliations of PRC Statutory Income Tax Rate and Group's Effective Income Tax Rate

Reconciliations of the differences between the

Chinese

statutory income tax rate and the Company’s effective income tax rate for the years ended December 31, 2019, 2020 and 2021 are as follows:


	Year ended December 31,
	2019			2020			2021
Statutory income tax rate		25	%		25	%		25	%
Share-based compensations		(1.51	%)		(1.36	%)		(0.92	%)
Non-deductible expenses		(0.39	%)		(1.17	%)		(5.78	%)
Prior year tax filing adjustment		1.93	%		1.78	%		1.50	%
Effect of different tax rate of subsidiary operation in other jurisdictions		0.07	%		(1.04	%)		(4.60	%)
Preferential tax rate		(9.14	%)		(7.48	%)		(4.30	%)
Effect of change in tax rate		(9.15	%)		—			—
Changes in valuation allowance		(6.81	%)		(15.73	%)		(10.90	%)

Effective income tax rate		—			—			—

Schedule of Components of Deferred Tax Assets and Liabilities

The principal components of the deferred tax assets and liabilities are as follows


	Year ended December 31,
	2019			2020			2021
	$			$			$
Deferred tax assets:
Depreciation of property and equipment, net		57			84			108
Government grants		325			400			496
Deferred revenue		—			2,069			3,733
Public welfare donations		—			7,627			10,246
Net operating loss carry forwards		62,833			94,954			175,101
Less: valuation allowance		(63,215	)		(105,134	)		(189,684	)

Deferred tax assets, net		—			—			—

Schedule of Movement of Valuation Allowance

Movement of the valuation allowance is as follows:


	2020			2021
	$			$
Balance as of January 1,		(63,215	)		(105,134	)
Additions		(41,919	)		(84,550	)

Balance as of December 31,		(105,134	)		(189,684	)

Other current liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Other current liabilities

Schedule of other current liabilities

Other current liabilities consist of followings:


	As of December 31,
	2020		2021
	$		$
Payroll		13,694		25,685
Accrued professional service fee		3,128		4,319
Payables for purchase of property and equipment		788		2,568
Accrued rebate to distributors		7,067		15,001
Tax payables		952		8,817
Others (note (i))		4,567		4,421

Total		30,196		60,811

Note:

(i)	Others are mainly payables to employees for exercising the share-based compensations, payables related to travel and business entertainment expenses.

Loss per share (Tables)

12 Months Ended

Dec. 31, 2021

Loss per share

Summary of basic and diluted net loss per share

Basic and diluted net loss per share for each of the years presented are calculated as follow:


	For the years ended December 31,
	2019			2020			2021
Numerator:
Net loss attributable to ordinary shareholders		(195,071	)		(268,905	)		(704,471	)
Denominator:
Weighted average number of ordinary shares- basic and diluted		64,369,490			77,667,743			92,992,112

Net loss per share-basic and diluted		(3.03	)		(3.46	)		(7.58	)

Summary of anti-dilutive excluded from the calculation of diluted loss per share

As a result of the Company’s net loss for the three years ended December 31, 2019, 2020 and 2021, share options and

non-vested

restricted shares outstanding in the respective periods were excluded from the calculation of diluted loss per share as their inclusion would have been anti-dilutive.


	As of December 31,
	2019		2020		2021
Share options		9,122,980		8,755,920		8,101,559
Non-vested restricted shares		743,268		541,750		956,736

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2021

Related party transactions

Schedule of Major Related Party and Relationship

The table below sets forth the major related party and the relationship with the Company as of December 31, 2021:


Company Name		Relationship with the Company
MEDx (Suzhou) Translational Medicine Co., Ltd.		Significant influence held by Samantha Du’s (Director, Chairwoman and Chief Executive Officer of the Company) immediate family

Share-based compensation (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of assumptions used to estimate the fair values of share options granted

The following table presents the assumptions used to estimate the fair values of the share options granted in the years presented:


	2019	2020	2021
Risk-free rate of return	1.6%-2.5%	0.4%-0.8%	0.9%-1.4%
Contractual life of option	10 years	10 years	10 years
Expected term	6 or 6.5 years	6 or 6.5 years	6, 6.25 or 6.5 years
Estimated volatility rate	70%	70%	65%
Expected dividend yield	0%	0%	0%
Fair value of underlying ordinary shares	$27.23-$41.59	$44.94-$128.72	$66.92-$180.00

Summary of option activity

A summary of option activity under the 2015 Plan and 2017 Plan during the years ended December 31, 2019, 2020 and 2021 is presented below:


	Number of options			Weighted average exercise price		Weighted average remaining contractual term		Aggregate intrinsic value
				$		Years		$
Outstanding at December 31, 2020		8,755,920			17.26		6.53		1,033,899
Granted		733,893			126.02		—		—
Exercised		(1,235,340	)		6.00		—		—
Forfeited		(152,914	)		64.22		—		—

Outstanding at December 31, 2021		8,101,559			27.94		5.98		339,570

Vested and exercisable as of December 31, 2021		5,174,961			9.25		4.89		279,783
Vested or expected to vest as of December 31, 2021		8,101,559			27.94		5.98		339,570

Summary of non-vested restricted share activity

The following table summarized the Company’s

non-vested

restricted share activity in 2021:


	Numbers of non-vested restricted shares			Weighted average grant date fair value
				$
Non-vested as of December 31, 2020		541,750			37.36
Granted		656,399			105.54
Vested		(205,450	)		37.17
Forfeited		(35,963	)		74.82

Non-vested as of December 31, 2021		956,736			82.62

Options [Member]

Allocation of compensation expense related to options

14,925

, $

18,695

and $

27,194

for the years ended December

2019

2020

and

2021

, respectively, which were classified in the accompanying consolidated statements of operations as follows:


	Year ended December 31,
	2019		2020		2021
	$		$		$
Selling, general and administrative		6,931		11,492		15,568
Research and development		7,994		7,203		11,626

Total		14,925		18,695		27,194

Restricted Shares [Member]

Allocation of compensation expense related to options

As of December 31, 2021, there was $69,264 of total unrecognized compensation expense related to

non-vested


	Year ended December 31,
	2019		2020		2021
	$		$		$
Selling, general and administrative		3,643		4,226		7,626
Research and development		1,723		1,909		5,894

Total		5,366		6,135		13,520

Selected quarterly financial data (unaudited) - (Tables)

12 Months Ended

Dec. 31, 2021

Selected Quarterly Financial Information [Abstract]

Quarterly Financial Information [Table Text Block]

The operating results for any fiscal quarter are not necessarily indicative of the operating results for a full fiscal year or for any future period and there can be no assurances that any trend reflected in such results will continue in the future.


	Quarter Ended,
2021	March 31,			June 30,			September 30,			December 31,
	$			$			$			$

Product revenue, net		20,103			36,935			43,103			43,964
Collaboration revenue		—			—			—			207
Loss from operations		(227,092	)		(170,571	)		(83,205	)		(219,196	)
Net loss		(232,910	)		(163,324	)		(96,412	)		(211,825	)
Net loss attributable to ordinary shareholders		(232,910	)		(163,324	)		(96,412	)		(211,825	)
Basic and diluted net loss per share		(2.64	)		(1.76	)		(1.01	)		(2.22	)


	Quarter Ended,
2020	March 31,			June 30,			September 30,			December 31,
	$			$			$			$

Product revenue, net		8,218			10,995			14,651			15,094
Loss from operations		(46,322	)		(83,966	)		(76,257	)		(95,256	)
Net loss		(47,988	)		(80,629	)		(63,741	)		(76,547	)
Net loss attributable to ordinary shareholders		(47,988	)		(80,629	)		(63,741	)		(76,547	)
Basic and diluted net loss per share		(0.66	)		(1.08	)		(0.84	)		(0.88	)

Financial Statements Schedule I (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Balance Sheet Statements Captions Abstract [Abstract]

Condensed Statements of Operations and Comprehensive Loss [Table Text Block]


	Year Ended December 31,
	2019			2020			2021
	$			$			$
Operating Expenses:
Research and development		(101	)		(437	)		(6	)
General and administrative		(4,864	)		(7,345	)		(12,074	)

Loss from operations		(4,965	)		(7,782	)		(12,080	)
Interest income		7,987			4,899			1,881
Other income (expenses), net		311			312			(18,173	)

Profit ( Loss ) before income tax and equity in loss of subsidiaries		3,333			(2,571	)		(28,372	)
Equity in loss of subsidiaries		(198,404	)		(266,334	)		(676,099	)
Income tax expense		—			—			—

Net loss attributable to Zai Lab Limited		(195,071	)		(268,905	)		(704,471	)

Net loss		(195,071	)		(268,905	)		(704,471	)
Other comprehensive income (loss) , net of tax of nil:
Foreign currency translation adjustment		1,958			(19,144	)		(9,121	)

Comprehensive loss		(193,113	)		(288,049	)		(713,592	)

Condensed Balance Sheet [Table Text Block]


	As of December 31,
	2020			2021
	$			$
Assets
Current assets:
Cash and cash equivalents		397,608			591,842
Short-term investments		744,676			445,000
Prepayments and other current assets		1,926			2,364

Total current assets		1,144,210			1,039,206
Investment in subsidiaries		28,090			341,980

Total assets		1,172,300			1,381,186

Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Other current liabilities		2,410			996

Total current liabilities		2,410			996
Deferred income		546			234

Total liabilities		2,956			1,230

Shareholders’ equity
Ordinary shares (par value of US$0.00006 per share; 500,000,000 shares authorized, 87,811,026 and 95,536,398 shares issued and outstanding as of December 31, 2020 and 2021, respectively)		5			6
Additional paid-in capital		1,897,467			2,825,948
Accumulated deficit		(713,603	)		(1,418,074	)
Additional other comprehensive income		(14,525	)		(23,645	)

Treasury stock		—			(4,279	)

Total shareholders’ equity		1,169,344			1,379,956

Total liabilities and shareholders’ equity		1,172,300			1,381,186

Condensed Cash Flow Statement [Table Text Block]


	Year Ended December 31,
	2019			2020			2021
	$			$			$
Cash flows from Operating activities:

Net loss		(195,071	)		(268,905	)		(704,471	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization of deferred income		(312	)		(312	)		(312	)
Share based compensation		2,013			3,025			3,435
Equity in loss of subsidiaries		198,404			266,334			676,099
Loss from fair value changes of equity investment of readily determinable fair value		—			—			14,617
Changes in operating assets and liabilities:
Prepayments and other current assets		(1,267	)		2,253			(439	)
Other current liabilities		102			738			(376	)

Net cash provided by (used in) operating activities		3,869			3,133			(11,447	)

Cash flows from investing activities:
Purchases of short-term investments		(277,640	)		(949,161	)		(445,000	)
Proceeds from maturity of short-term investments		277,990			405,000			743,902
Purchase of investment in equity investee		—			—			(30,000	)
Investment in subsidiaries		(165,924	)		(256,097	)		(884,342	)

Net cash used in investing activities		(165,574	)		(800,258	)		(615,440	)

Cash flows from financing activities:
Proceeds from exercises of stock options		1,055			6,664			7,418
Proceeds from issuance of ordinary shares upon public offerings		216,200			1,137,683			818,875
Payment of public offering costs		(854	)		(4,541	)		(1,692	)
Employee taxes paid related to settlement of equity awards		—			—			(4,253	)

Net cash provided by financing activities		216,401			1,139,806			820,348

Effect of foreign exchange rate changes on cash and cash equivalent		—			(515	)		774

Net increase in cash and cash equivalents		54,696			342,166			194,234
Cash and cash equivalents-beginning of the year		746			55,442			397,608

Cash and cash equivalents-end of the year		55,442			397,608			591,842

Organization and principal activities - Schedule of Significant Operating Subsidiaries (Details)	12 Months Ended
	Dec. 31, 2021
Zai Lab (Hong Kong) Limited
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Place of incorporation	Hong Kong
Date of incorporation	Apr. 29, 2013
Percentage of ownership	100.00%
Principal activities	Operating company for business development and R&D activities and commercialization of innovative medicines and device
Zai Lab (Shanghai) Co., Ltd
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Place of incorporation	mainlandChina
Date of incorporation	Jan. 06, 2014
Percentage of ownership	100.00%
Principal activities	Development and commercialization of innovative medicines and devices
Zai Lab (AUST) Pty., Ltd
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Place of incorporation	Australia
Date of incorporation	Dec. 10, 2014
Percentage of ownership	100.00%
Principal activities	Clinical trial activities
Zai Lab (Suzhou) Co., Ltd
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Place of incorporation	mainlandChina
Date of incorporation	Nov. 30, 2015
Percentage of ownership	100.00%
Principal activities	Development and commercialization of innovative medicines
Zai Biopharmaceutical (Suzhou) Co., Ltd
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Place of incorporation	mainlandChina
Date of incorporation	Jun. 15, 2017
Percentage of ownership	100.00%
Principal activities	Development and commercialization of innovative medicines
Zai Lab (US) LLC
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Place of incorporation	the UnitedStates
Date of incorporation	Apr. 21, 2017
Percentage of ownership	100.00%
Principal activities	Operating company for business development, R&D activities and certain business activities, including legal, compliance and communication functions of the Company
Zai Lab International Trading (Shanghai) Co., Ltd
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Place of incorporation	mainlandChina
Date of incorporation	Nov. 06, 2019
Percentage of ownership	100.00%
Principal activities	Commercialization of innovative medicines and devices
Zai Auto Immune Hong Kong Limited
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Place of incorporation	Hong Kong
Date of incorporation	Nov. 04, 2020
Percentage of ownership	100.00%
Principal activities	Operating company for business development and R&D activities
Zai Lab (Taiwan) Limited
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items]
Place of incorporation	Taiwan
Date of incorporation	Dec. 10, 2020
Percentage of ownership	100.00%
Principal activities	Commercialization of innovative medicines and devices

Summary of significant accounting policies - Additional Information (Details) ¥ in Thousands, $ in Thousands	1 Months Ended		3 Months Ended				12 Months Ended
	May 31, 2021 CNY (¥)	Apr. 30, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Significant Accounting Policies
Impairment of investments							$ 0	$ 0	$ 0
Land use rights lease term									30 years
Amortization expenses							493	307	$ 305
Finite-lived intangible assets, Amortization expense, 2022			$ 570				570
Finite-lived intangible assets, Amortization expense, 2023			556				556
Finite-lived intangible assets, Amortization expense, 2024			436				436
Finite-lived intangible assets, Amortization expense, 2025			212				212
Finite-lived intangible assets, Amortization expense, 2026			74				74
Finite-lived intangible assets, Amortization expense, after year five			0				0
Impairment of long-lived assets							$ 0
Revenue, Practical Expedient, Financing Component [true false]							true
Cash grants recorded in other income							$ 4,113	7,289	2,151
Cash grants recorded in deferred income			2,366				$ 2,366	2,519
Reimbursement recognized period							5 years
Reimbursements recognized							$ 312	312	312
Unrecognized tax benefits and related interest and penalties							0
Aggregate amount of cash and cash equivalents			964,100				964,100	442,116	75,932
Financing Receivable, Allowance for Credit Loss, Current			0				0
Collaboration revenue			207	$ 0	$ 0	$ 0	207	0	$ 0
Foreign Currency Risk \| Cash and Cash Equivalents
Significant Accounting Policies
Aggregate amount of cash and cash equivalents \| ¥										¥ 151,684	¥ 155,934
Deferred Income
Significant Accounting Policies
Reimbursements recognized							$ 234	$ 546
Minimum
Significant Accounting Policies
Intangible assets amortization period							1 year
Maximum
Significant Accounting Policies
Intangible assets amortization period							5 years
China \| Foreign Currency Risk \| Cash and Cash Equivalents
Significant Accounting Policies
Concentration risk percentage							2.00%	5.00%
Exclusive Promotion Agreement
Significant Accounting Policies
Payment of upfront fees	¥ 230,000	¥ 90,000					$ 70,000
Upfront payment recorded in deferred income			$ 24,886				$ 24,886	$ 13,793		¥ 158,667	¥ 90,000

Summary of significant accounting policies - Summary of Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2021
Office Equipment
Property Plant And Equipment
Estimated useful lives of property and equipment	3 years
Electronic Equipment \| Minimum
Property Plant And Equipment
Estimated useful lives of property and equipment	1 year 3 months
Electronic Equipment \| Maximum
Property Plant And Equipment
Estimated useful lives of property and equipment	3 years
Vehicles
Property Plant And Equipment
Estimated useful lives of property and equipment	4 years
Laboratory Equipment
Property Plant And Equipment
Estimated useful lives of property and equipment	5 years
Manufacturing Equipment
Property Plant And Equipment
Estimated useful lives of property and equipment	10 years
Leasehold Improvements
Property Plant And Equipment
Estimated useful lives of property and equipment	lesser of useful life or lease term

Summary of significant accounting policies - Concentration of customers and concentration of suppliers (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Significant Accounting Policies
Revenue	$ 43,964	$ 43,103	$ 36,935	$ 20,103	$ 15,094	$ 14,651	$ 10,995	$ 8,218	$ 144,105	$ 48,958	$ 12,985
Revenue \| Concentration of customers \| A
Significant Accounting Policies
Revenue											5,397
Revenue \| Concentration of customers \| B
Significant Accounting Policies
Revenue											4,682
Revenue \| Concentration of customers \| C
Significant Accounting Policies
Revenue									40,634	15,774
Accounts Receivable [Member] \| Concentration of debtors \| C
Significant Accounting Policies
Accounts Receivable, after Allowance for Credit Loss	10,293				2,070				10,293	2,070
Accounts Receivable [Member] \| Concentration of debtors \| D
Significant Accounting Policies
Accounts Receivable, after Allowance for Credit Loss					$ 726					726
Accounts Receivable [Member] \| Concentration of debtors \| E
Significant Accounting Policies
Accounts Receivable, after Allowance for Credit Loss	$ 10,979								10,979
Concentration of suppliers \| Concentration of suppliers \| F
Significant Accounting Policies
Research and development expenses and the inventory purchases											27,966
Concentration of suppliers \| Concentration of suppliers \| H
Significant Accounting Policies
Research and development expenses and the inventory purchases										33,564
Concentration of suppliers \| Concentration of suppliers \| I
Significant Accounting Policies
Research and development expenses and the inventory purchases										$ 26,710
Concentration of suppliers \| Concentration of suppliers \| J
Significant Accounting Policies
Research and development expenses and the inventory purchases									165,431
Concentration of suppliers \| Concentration of suppliers \| K
Significant Accounting Policies
Research and development expenses and the inventory purchases									$ 66,650
Concentration of suppliers \| Concentration of suppliers \| G
Significant Accounting Policies
Research and development expenses and the inventory purchases											$ 18,362

Summary of significant accounting policies - Concentration of customers and concentration of suppliers (Parenthetical) (Details) - Customers [Member]	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue \| Concentration of customers \| Maximum
Significant Accounting Policies
Concentration risk percentage	10.00%	10.00%	10.00%
Research and Development Expenses \| Concentration of suppliers
Significant Accounting Policies
Concentration risk percentage	10.00%	10.00%	10.00%
Accounts Receivable \| Concentration of customers
Significant Accounting Policies
Concentration risk percentage	10.00%	10.00%

Summary of significant accounting policies - Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis (Details) $ in Thousands	Dec. 31, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity Securities With Readily Determinable Fair Value Amount	$ 15,383
Fair Value, Inputs, Level 1 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity Securities With Readily Determinable Fair Value Amount	$ 15,383

Cash and cash equivalents - Summary of Cash and Cash Equivalents (Details) - USD ($)
$ in Thousands

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Cash And Cash Equivalents [Line Items]

Cash at bank and in hand

$ 663,472

$ 441,283

Cash equivalents

^[1]

300,628

833

Cash and cash equivalents

964,100

442,116

$ 75,932

Denominated in US$

Cash And Cash Equivalents [Line Items]

Cash and cash equivalents

932,888

297,813

Denominated in RMB

Cash And Cash Equivalents [Line Items]

Cash and cash equivalents

^[2]

23,791

23,898

Denominated in Hong Kong dollar

Cash And Cash Equivalents [Line Items]

Cash and cash equivalents

6,674

119,695

Denominated in Australia dollar

Cash And Cash Equivalents [Line Items]

Cash and cash equivalents

475

710

Denominated in Taiwan dollar ("TW$")

Cash And Cash Equivalents [Line Items]

Cash and cash equivalents

$ 272

$ 0

[1]	Cash equivalents represent short-term and highly liquid investments in a money market fund.
[2]	Certain cash and bank balances denominated in RMB were deposited with banks in the PRC. The conversion of these RMB denominated balances into foreign currencies is subject to the rules and regulations of foreign exchange control promulgated by the PRC government.

Restricted cash, non-current - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Restricted Cash [Abstract]
Restricted cash, non-current	$ 803	$ 743	$ 510

Short-term investments (Details) - USD ($) $ in Thousands	12 Months Ended
Short-term investments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule Of Available For Sale Securities [Line Items]
Maturities of Time Deposits, Description	time deposits with original maturities between three months and one year
Time deposits, Interest income	$ 799	$ 4,860	$ 7,778
Minimum
Schedule Of Available For Sale Securities [Line Items]
Time deposits, Maturity period	3 months
Maximum
Schedule Of Available For Sale Securities [Line Items]
Time deposits, Maturity period	1 year

Accounts receivable - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, after Allowance for Credit Loss, Current	$ 47,474	$ 5,165
Trade Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, after Allowance for Credit Loss, Current	36,495	5,165
Accounts Receivable From Collaborative Agreement [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, after Allowance for Credit Loss, Current	$ 10,979	$ 0

Accounts receivable (Details) - USD ($) $ in Thousands	12 Months Ended
Accounts receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance as of December 31, 2021	$ 1
Current period provision for expected credit losses	10	$ 1
Balance as of December 31, 2020	$ 11	$ 1

Inventories - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Inventory [Line Items]
Inventory write-down	$ 1,368	$ 29	$ 0
Inventory balance	$ 18,951	$ 13,144

Inventories - Schedule of inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Inventories
Finished goods	$ 5,632	$ 3,041
Raw materials	13,231	10,103
Work in progress	88
Inventories	$ 18,951	$ 13,144

Long-term investments - Additional Information (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Jun. 30, 2017 USD ($) item
Equity And Cost Method Investments
Share of loss from equity method investment		$ (1,057)	$ (1,119)	$ (752)
JING
Equity And Cost Method Investments
Share of loss from equity method investment		$ 1,520	$ 1,119	752
Number of third-parties \| item					3
Capital contribution commitment					$ 26,250
Percentage of equity interest		18.00%	20.00%
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee		$ 463	$ 0	0
MacroGenics
Equity And Cost Method Investments
Fair value income/loss through PL		$ 14,617	$ 0	$ 0
Capital contribution commitment	$ 30,000
Issue price per share \| $ / shares	$ 31.30
Stock Issued During Period, Shares, Acquisitions \| shares	958,467

Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property Plant And Equipment
Property and equipment, gross	$ 59,527	$ 39,414
Less: accumulated depreciation	(16,425)	(10,252)
Property and equipment, net	43,102	29,162
Office Equipment
Property Plant And Equipment
Property and equipment, gross	836	430
Electronic Equipment
Property Plant And Equipment
Property and equipment, gross	5,036	2,646
Vehicle
Property Plant And Equipment
Property and equipment, gross	220	143
Laboratory Equipment
Property Plant And Equipment
Property and equipment, gross	17,069	11,933
Manufacturing Equipment
Property Plant And Equipment
Property and equipment, gross	14,600	12,198
Leasehold Improvements
Property Plant And Equipment
Property and equipment, gross	10,432	9,641
Construction in Progress
Property Plant And Equipment
Property and equipment, gross	$ 11,334	$ 2,423

Property and Equipment, net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property and equipment, net
Depreciation expenses	$ 5,994	$ 4,324	$ 3,372

Lease - Additional Information (Details)	Dec. 31, 2021
Minimum
Lease
Operating lease remaining lease term	1 year
Maximum
Lease
Operating lease remaining lease term	7 years

Lease - Summary of Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating fixed lease cost	$ 6,263	$ 4,539	$ 3,245

Lease - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Cash paid for amounts included in measurement of lease liabilities	$ 5,840	$ 4,056	$ 2,778
Non-cash operating lease liabilities arising from obtaining operating right-of-use assets	$ 2,183	$ 6,393	$ 10,876

Lease - Summary of Maturities of Lease Liabilities (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Maturities of lease liabilities
2022	$ 6,153
2023	2,571
2024	2,240
2025	2,186
2026	1,638
Thereafter	1,213
Total lease payments	16,001
Less: imputed interest	(461)
Present value of minimum operating lease payments	$ 15,540

Lease - Summary of Weighted-Average Remaining Lease Terms and Discount Rates (Details)	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Weighted-average remaining lease term	4 years 2 months 12 days	5 years
Weighted-average discount rate	2.30%	2.30%

Product revenue, net - (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Product revenue, net - (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue
Product revenue - gross									$ 190,180	$ 57,355	$ 12,985
Less: Rebate and sales return									(46,075)	(8,397)
Product revenue - net	$ 43,964	$ 43,103	$ 36,935	$ 20,103	$ 15,094	$ 14,651	$ 10,995	$ 8,218	$ 144,105	$ 48,958	$ 12,985

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 40
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
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-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Product revenue, net - Disaggregation of net revenue by product (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue
Total product revenue - net	$ 43,964	$ 43,103	$ 36,935	$ 20,103	$ 15,094	$ 14,651	$ 10,995	$ 8,218	$ 144,105	$ 48,958	$ 12,985
ZEJULA
Disaggregation of Revenue
Total product revenue - net									93,579	32,138	6,625
Optune
Disaggregation of Revenue
Total product revenue - net									38,903	16,418	$ 6,360
Qinlock [Member]
Disaggregation of Revenue
Total product revenue - net									11,620	$ 402
Nuzyra [Member]
Disaggregation of Revenue
Total product revenue - net									$ 3

- Definition

+ References

+ Details

Product revenue, net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue
Revenue From Contract With Customer Adjustments For Compensation To Distributors	$ 29,547	$ 3,051	$ 0

Income Tax - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Line Items]
Statutory income tax rate	25.00%
Taxable income	$ 0
Provision for income taxes	0	$ 0	$ 0
Withholding taxes on remittance of dividends	$ 0	$ 0	$ 0
Preferential tax rate	15.00%	15.00%	15.00%	15.00%
Amounts of operating loss carry forwards	$ 1,089,745	$ 605,226	$ 403,460
First two million
Income Tax Disclosure [Line Items]
Statutory income tax rate	8.25%
Above two million
Income Tax Disclosure [Line Items]
Statutory income tax rate	16.50%
Earliest Tax Year
Income Tax Disclosure [Line Items]
Operating loss carry forwards expiration	Dec. 31, 2022
Latest Tax Year
Income Tax Disclosure [Line Items]
Operating loss carry forwards expiration	Dec. 31, 2030
PRC
Income Tax Disclosure [Line Items]
Statutory income tax rate	25.00%	25.00%	25.00%

Income Tax - Schedule of Loss (income) Before Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Line Items]
Loss (income) before income taxes	$ 211,825	$ 96,412	$ 163,324	$ 232,910	$ 76,547	$ 63,741	$ 80,629	$ 47,988	$ 704,471	$ 268,905	$ 195,071
Cayman
Income Tax Disclosure [Line Items]
Loss (income) before income taxes									28,401	2,612	(3,241)
BVI
Income Tax Disclosure [Line Items]
Loss (income) before income taxes									2	3	2
PRC
Income Tax Disclosure [Line Items]
Loss (income) before income taxes									340,865	220,813	185,239
HK
Income Tax Disclosure [Line Items]
Loss (income) before income taxes									243,400	20,022	3,271
US
Income Tax Disclosure [Line Items]
Loss (income) before income taxes									89,374	24,616	9,786
AUST
Income Tax Disclosure [Line Items]
Loss (income) before income taxes									1,758	$ 839	$ 14
TW
Income Tax Disclosure [Line Items]
Loss (income) before income taxes									$ 671

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 260
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-Section 45
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-URI http://asc.fasb.org/extlink&oid=125511455&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

+ Details

Income Tax - Schedule of Reconciliations of PRC Statutory Income Tax Rate and Group's Effective Income Tax Rate (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Taxes [Line Items]
Statutory income tax rate	25.00%
PRC
Income Taxes [Line Items]
Statutory income tax rate	25.00%	25.00%	25.00%
Share-based compensations	(0.92%)	(1.36%)	(1.51%)
Non-deductible expenses	(5.78%)	(1.17%)	(0.39%)
Prior year tax filing adjustment	1.50%	1.78%	1.93%
Effect of different tax rate of subsidiary operation in other jurisdictions	(4.60%)	(1.04%)	0.07%
Preferential tax rate	(4.30%)	(7.48%)	(9.14%)
Effect of change in tax rate			(9.15%)
Changes in valuation allowance	(10.90%)	(15.73%)	(6.81%)

Income Tax - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Depreciation of property and equipment, net	$ 108	$ 84	$ 57
Government grants	496	400	325
Deferred revenue	3,733	2,069
Public welfare donations	10,246	7,627
Net operating loss carry forwards	175,101	94,954	62,833
Less: valuation allowance	$ (189,684)	$ (105,134)	$ (63,215)

Income Tax - Schedule of Movement of Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income tax
Beginning Balance	$ (105,134)	$ (63,215)
Additions	(84,550)	(41,919)
Ending Balance	$ (189,684)	$ (105,134)

Other current liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Other current liabilities
Payroll	$ 25,685	$ 13,694
Accrued professional service fee	4,319	3,128
Payables for purchase of property and equipment	2,568	788
Accrued rebate to distributors	15,001	7,067
Tax payables	8,817	952
Others	4,421	4,567
Total	$ 60,811	$ 30,196

Loss per share - Summary of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net loss attributable to ordinary shareholders	$ (211,825)	$ (96,412)	$ (163,324)	$ (232,910)	$ (76,547)	$ (63,741)	$ (80,629)	$ (47,988)	$ (704,471)	$ (268,905)	$ (195,071)
Denominator:
Weighted average number of ordinary shares- basic and diluted									92,992,112	77,667,743	64,369,490
Net loss per share-basic and diluted	$ (2.22)	$ (1.01)	$ (1.76)	$ (2.64)	$ (0.88)	$ (0.84)	$ (1.08)	$ (0.66)	$ (7.58)	$ (3.46)	$ (3.03)

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

+ Details

Loss per share - Summary of Anti-Dilutive Shares Excluded from Calculation of Diluted Loss Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive shares excluded from calculation of diluted loss per share	8,101,559	8,755,920	9,122,980
Non-Vested Restricted Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive shares excluded from calculation of diluted loss per share	956,736	541,750	743,268

Related party transactions - Schedule of Major Related Party and Relationship (Details)	12 Months Ended
	Dec. 31, 2021
MEDx (Suzhou) Translational Medicine Co., Ltd. (Formerly known as Qiagen (Suzhou) translational medicine Co., Ltd)
Related Party Transaction [Line Items]
Relationship with the Group	Significant influence held by Samantha Du’s (Director, Chairwoman and Chief Executive Officer of the Company) immediate family

- Definition

A description of the related party transaction, including transactions to which no amounts or nominal amounts were ascribed and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements. Examples of common related party transactions are, sales, purchases and transfers of realty and personal property, services received or furnished, loans and leases to and from top management and affiliates.

+ References + Details

Related party transactions - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Research and development \| MEDx (Suzhou) Translational Medicine Co., Ltd.
Related Party Transaction [Line Items]
Transactions between its related party	$ 680	$ 678	$ 234

Share-based compensation - Share Options - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Mar. 05, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares authorized	7,369,767			4,140,945
Options granted	733,893
Exercise price of options	$ 126.02
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average grant-date fair value of options granted	$ 126.02	$ 40.60	$ 20.98
Compensation expense	$ 27,194	$ 18,695	$ 14,925
Unrecognized compensation expense related to unvested share options granted	$ 94,823
Recognized over a weighted-average period	2 years 9 months 21 days
Management, Employees and Individual Advisors \| Two Thousand Seventeen Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted	733,893	1,220,177	1,067,385
Options granted contractual term	10 years	10 years	10 years
Vesting period	five, four or three-year period	five or three-year period	five or three-year period
Management, Employees and Individual Advisors \| Vesting anniversary year after the grant date \| Two Thousand Seventeen Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Option vesting percentage	20%, 25% or 33.3%	20% or 33.3%	20% or 33.3%
Management, Employees and Individual Advisors \| Minimum \| Two Thousand Seventeen Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise price of options	$ 66.92	$ 44.94	$ 27.23
Management, Employees and Individual Advisors \| Maximum \| Two Thousand Seventeen Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise price of options	$ 180.00	$ 128.72	$ 41.59

Share-based compensation - Schedule of Assumptions Used to Estimate Fair Values of Share Options Granted (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Contractual life of option	10 years	10 years	10 years
Expected term	6, 6.25 or 6.5 years	6 or 6.5 years	6 or 6.5 years
Estimated volatility rate	65.00%	70.00%	70.00%
Expected dividend yield	0.00%	0.00%	0.00%
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free rate of return	0.90%	0.40%	1.60%
Fair value of underlying ordinary shares	$ 66.92	$ 44.94	$ 27.23
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free rate of return	1.40%	0.80%	2.50%
Fair value of underlying ordinary shares	$ 180.00	$ 128.72	$ 41.59

Share-based compensation - Summary of Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based compensation
Number of options, Granted	733,893
Number of options, Exercised	(1,235,340)
Number of options, Forfeited	(152,914)
Number of options, Outstanding, Ending Balance	8,101,559	8,755,920
Number of options, Vested and Exercisable as of December 31, 2020	5,174,961
Number of options, Vested or expected to vest as of December 31, 2020	8,101,559
Weighted average exercise price, Granted	$ 126.02
Weighted average exercise price, Exercised	6.00
Weighted average exercise price, Forfeited	64.22
Weighted average exercise price, Outstanding, Ending Balance	27.94	$ 17.26
Weighted average exercise price, Vested and Exercisable as of December 31, 2020	9.25
Weighted average exercise price, Vested or expected to vest as of December 31, 2020	$ 27.94
Weighted average remaining contractual term, Outstanding	5 years 11 months 23 days	6 years 6 months 10 days
Weighted average remaining contractual term, Vested and Exercisable as of December 31, 2020	4 years 10 months 20 days
Weighted average remaining contractual term, Vested or expected to vest as of December 31, 2020	5 years 11 months 23 days
Aggregate intrinsic value, Outstanding	$ 339,570	$ 1,033,899
Aggregate intrinsic value, Vested and Exercisable as of December 31, 2020	279,783
Aggregate intrinsic value, Vested or expected to vest as of December 31, 2020	$ 339,570

Share-based compensation - Allocation of Compensation Expense Related to Option (Details) - Stock Options - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Compensation expense	$ 27,194	$ 18,695	$ 14,925
Selling, General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Compensation expense	15,568	11,492	6,931
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Compensation expense	$ 11,626	$ 7,203	$ 7,994

Share-based compensation - Non-vested Restricted Shares - Additional Information (Details) - Non-Vested Restricted Shares - USD ($) $ in Thousands			12 Months Ended
	Jan. 01, 2026	Jan. 01, 2024	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized share-based compensation			$ 69,264
Compensation expense			$ 13,520	$ 6,135	$ 5,366
Vesting percentage			20% or 25%
Subsequent Event
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Option vesting percentage	50.00%
Scenario, Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted			30,000
Independent Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted			19,260	50,000	50,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Authorised for grant			16,257
Management
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted			359,242	109,250	121,000
Addition ordinary shares authorized for grant			231,640
Management \| Subsequent Event
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Option vesting percentage	50.00%	50.00%

Share-based compensation - Summary of Non-vested Restricted Share Activity (Details) - Non-Vested Restricted Shares	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Numbers of non-vested restricted shares, Beginning Balance \| shares	541,750
Numbers of non-vested restricted shares, Granted \| shares	656,399
Numbers of non-vested restricted shares, Vested \| shares	(205,450)
Numbers of non-vested restricted shares, Forfeited \| shares	(35,963)
Numbers of non-vested restricted shares, Ending Balance \| shares	956,736
Weighted average grant date fair value, Beginning Balance \| $ / shares	$ 37.36
Weighted average grant date fair value, Granted \| $ / shares	105.54
Weighted average grant date fair value, Vested \| $ / shares	37.17
Weighted average grant date fair value, Forfeited \| $ / shares	74.82
Weighted average grant date fair value, Ending Balance \| $ / shares	$ 82.62

Share-based compensation - Allocation of Compensation Expense Related to Options (Details) - Non-Vested Restricted Shares - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Compensation expense	$ 13,520	$ 6,135	$ 5,366
Selling, General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Compensation expense	7,626	4,226	3,643
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Compensation expense	$ 5,894	$ 1,909	$ 1,723

Licenses and collaborative arrangement (Details) $ / shares in Units, $ in Thousands		1 Months Ended															12 Months Ended
	Jan. 13, 2021 $ / shares shares	Nov. 30, 2021 USD ($)	Jul. 31, 2021 USD ($)	Jun. 30, 2021 USD ($) $ / shares	May 31, 2021 USD ($)	Dec. 31, 2020 $ / shares	Oct. 31, 2020	Apr. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Nov. 30, 2018 USD ($)	Sep. 30, 2018 USD ($)	May 31, 2018 USD ($)	Apr. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)	Apr. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2021 USD ($) Milestone MOLECULES PROGRAMS $ / shares	Dec. 31, 2020 USD ($) Milestone $ / shares
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Common Stock, Par or Stated Value Per Share \| $ / shares						$ 0.00006											$ 0.00006	$ 0.00006
Issuance of ordinary shares in connection with collaboration and license arrangement																	$ 62,250
Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Future milestone payments to be made upon achievement																	5,589,506
GSK
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date																2016-09
Payment of upfront fees																	$ 15,000
Number of milestone payments \| Milestone																	1
Milestone payments																	$ 1,000
Milestone Payment Accrued																	$ 3,500
Licenses and collaborative arrangement number of milestone payments accrued \| Milestone																	1
GSK \| Potential Development Regulatory and Sales Based Milestone
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Milestone payments																	$ 8,000
GSK \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional milestone payments																$ 28,000
Paratek
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date															2017-04
Payment of upfront fees															$ 7,500
Number of milestone payments \| Milestone																	2
Milestone payments															8,000
Licenses and collaborative arrangement number of milestone payments accrued \| Milestone																	1
Licenses and collaborative arrangement milestone payments accrued																	$ 6,000
Paratek \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional milestone payments															$ 40,500
Five Prime
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date														2017-12
Payment of upfront fees														$ 5,000
Number of milestone payments \| Milestone																	1
Milestone payments														2,000
Five Prime \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional milestone payments														$ 37,000
Entasis
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date													2018-04
Payment of upfront fees													$ 5,000
Number of milestone payments \| Milestone																	2
Milestone payments													7,000
Entasis \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional milestone payments													$ 91,600
Deciphera Pharmaceuticals LLC
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date									2019-06
Payment of upfront fees									$ 20,000
Number of milestone payments \| Milestone																	3
Milestone payments									12,000
Deciphera Pharmaceuticals LLC \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional milestone payments									$ 173,000
Crescendo
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date							2020-10					2018-05
Payment of upfront fees												$ 4,500
Number of up front payments												2
Number of milestone payments \| Milestone																	3
Milestone payments												$ 6,000
Crescendo \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional milestone payments												$ 298,075
Novocure
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date											2018-09
Payment of upfront fees											$ 15,000
Number of milestone payments \| Milestone																	2
Milestone payments											10,000
Novocure \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional milestone payments											$ 68,000
MacroGenics
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date										2018-11
Payment of upfront fees										$ 25,000
Milestone payments										$ 4,000
Number Of Molecules \| MOLECULES																	2
Number Of Programs \| PROGRAMS																	4
Licenses and collaborative arrangement number of milestone payments accrued \| Milestone																	1
Licenses and collaborative arrangement milestone payments accrued																	$ 5,000
MacroGenics \| Collaboration And License Agreement [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date				2021-06
Up Front Fees For License Agreement Accrued				$ 25,000
Equity Method Investments				$ 30,000
Shares Issued, Price Per Share \| $ / shares				$ 31.30
MacroGenics \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date				2021-06						2018-11
Additional milestone payments										$ 131,000
Future milestone payments to be made upon achievement				$ 1,386,000
Incyte Corporation
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date									2019-07
Payment of upfront fees									$ 17,500
Incyte Corporation \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional milestone payments									$ 60,000
Regeneron
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date								2020-04
Payment of upfront fees								$ 30,000
Regeneron \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional milestone payments								$ 160,000
Turning Point Therapeutics Inc
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date																	2021-01	2020-07
Payment of upfront fees																	$ 25,000	$ 25,000
Number of milestone payments \| Milestone																	1	3
Milestone payments																		$ 5,000
Licenses and collaborative arrangement number of milestone payments accrued \| Milestone																	1
Licenses and collaborative arrangement milestone payments accrued																	$ 2,000
Turning Point Therapeutics Inc \| Potential Development Regulatory and Sales Based Milestone
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional milestone payments																	334,000
Future milestone payments to be made upon achievement																		146,000
Cullinan Pearl Corp
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date						2020-12
Payment of upfront fees																		20,000
Cullinan Pearl Corp \| Potential Development Regulatory and Sales Based Milestone
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Future milestone payments to be made upon achievement																		211,000
Takeda Pharmaceutical Company Limited
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date						2020-12
Payment of upfront fees																		6,000
Takeda Pharmaceutical Company Limited \| Potential Development Regulatory and Sales Based Milestone
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Future milestone payments to be made upon achievement																		$ 481,500
Argenx BV
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date	2021-01
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture \| shares	568,182
Common Stock, Par or Stated Value Per Share \| $ / shares	$ 0.00006
Development Cost Sharing Payment																	75,000
Future Cash Payment																	25,000
Issuance of ordinary shares in connection with collaboration and license arrangement																	$ 62,250
Shares issued date																	Jan. 13, 2021
Mirati Therapeutics Inc
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date					2021-05
Payment of upfront fees					$ 65,000
Mirati Therapeutics Inc \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Future milestone payments to be made upon achievement					$ 273,000
Schrödinger, Inc
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date			2021-07
Payment of upfront fees			$ 5,000
Schrödinger, Inc \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Future milestone payments to be made upon achievement			$ 337,500
Karuna Therapeutics, Inc
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date		2021-11
Payment of upfront fees		$ 35,000
Karuna Therapeutics, Inc \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Future milestone payments to be made upon achievement		$ 152,000
Blueprint Medicines Corporation
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
License agreement date		2021-11
Payment of upfront fees		$ 25,000
Blueprint Medicines Corporation \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Future milestone payments to be made upon achievement		$ 590,000

Restricted Net Assets (Details) - PRC - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Restricted net assets
Minimum required percentage of statutory reserves	10.00%
Percentage of statutory reserves to respective registered capital	50.00%
Statutory reserves	$ 0	$ 0	$ 0
Restricted amount by subsidiaries	$ 406,010	$ 255,858

Employee defined contribution plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Employee benefits, expense	$ 17,606	$ 4,373	$ 5,406

Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Property and Equipment
Loss Contingencies [Line Items]
Purchase obligation	$ 20,413

Selected quarterly financial data (unaudited) - Schedule Of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Selected Quarterly Financial Information [Abstract]
Product revenue, net	$ 43,964	$ 43,103	$ 36,935	$ 20,103	$ 15,094	$ 14,651	$ 10,995	$ 8,218	$ 144,105	$ 48,958	$ 12,985
Collaboration revenue	207	0	0	0					207	0	0
Loss from operations	(219,196)	(83,205)	(170,571)	(227,092)	(95,256)	(76,257)	(83,966)	(46,322)	(700,064)	(301,801)	(203,196)
Net loss	(211,825)	(96,412)	(163,324)	(232,910)	(76,547)	(63,741)	(80,629)	(47,988)	(704,471)	(268,905)	(195,071)
Net loss attributable to ordinary shareholders	$ (211,825)	$ (96,412)	$ (163,324)	$ (232,910)	$ (76,547)	$ (63,741)	$ (80,629)	$ (47,988)	$ (704,471)	$ (268,905)	$ (195,071)
Basic and diluted net loss per share	$ (2.22)	$ (1.01)	$ (1.76)	$ (2.64)	$ (0.88)	$ (0.84)	$ (1.08)	$ (0.66)	$ (7.58)	$ (3.46)	$ (3.03)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

Subsequent Events (Details) - $ / shares	2 Months Ended	12 Months Ended
Subsequent Events (Details) - $ / shares	Feb. 28, 2022	Dec. 31, 2021	Dec. 31, 2020	Mar. 05, 2015
Subsequent Event [Line Items]
Options granted		733,893
Exercise price of options		$ 126.02
contractual term		5 years 11 months 23 days	6 years 6 months 10 days
Share based compensation by share based award number of shares authorized for grant		7,369,767		4,140,945
Subsequent Event \| Management and Employees \| Restricted Shares
Subsequent Event [Line Items]
Share based compensation by share based award number of shares authorized for grant	20,224
Subsequent Event \| Management and Employees \| Share based compensation award tranche one \| Restricted Shares
Subsequent Event [Line Items]
Vesting percentage	20.00%
Subsequent Event \| Management and Employees \| Share based compensation award tranche two \| Restricted Shares
Subsequent Event [Line Items]
Vesting percentage	20.00%
Subsequent Event \| Management and Employees \| Share based compensation award tranche three \| Restricted Shares
Subsequent Event [Line Items]
Vesting percentage	20.00%
Subsequent Event \| Management and Employees \| Share based compensation award tranche four. \| Restricted Shares
Subsequent Event [Line Items]
Vesting percentage	20.00%
Subsequent Event \| Management and Employees \| Share based compensation award tranche five \| Restricted Shares
Subsequent Event [Line Items]
Vesting percentage	20.00%
Subsequent Event \| Independent Directors \| Restricted Shares
Subsequent Event [Line Items]
Vesting percentage	100.00%
Share based compensation by share based award number of shares authorized for grant	38,815
Subsequent Event \| Two Thousand Seventeen Equity Incentive Plan \| Management and Employees
Subsequent Event [Line Items]
Options granted	45,092
Options granted contractual term	10 years
contractual term	5 years
Subsequent Event \| Two Thousand Seventeen Equity Incentive Plan \| Management and Employees \| Minimum
Subsequent Event [Line Items]
Exercise price of options	$ 62.85
Subsequent Event \| Two Thousand Seventeen Equity Incentive Plan \| Management and Employees \| Maximum
Subsequent Event [Line Items]
Exercise price of options	$ 53.59
Subsequent Event \| Two Thousand Seventeen Equity Incentive Plan \| Management and Employees \| Share based compensation award tranche one
Subsequent Event [Line Items]
Vesting percentage	20.00%
Subsequent Event \| Two Thousand Seventeen Equity Incentive Plan \| Management and Employees \| Share based compensation award tranche two
Subsequent Event [Line Items]
Vesting percentage	20.00%
Subsequent Event \| Two Thousand Seventeen Equity Incentive Plan \| Management and Employees \| Share based compensation award tranche three
Subsequent Event [Line Items]
Vesting percentage	20.00%
Subsequent Event \| Two Thousand Seventeen Equity Incentive Plan \| Management and Employees \| Share based compensation award tranche four.
Subsequent Event [Line Items]
Vesting percentage	20.00%
Subsequent Event \| Two Thousand Seventeen Equity Incentive Plan \| Management and Employees \| Share based compensation award tranche five
Subsequent Event [Line Items]
Vesting percentage	20.00%

Financial Statements Schedule I - Condensed Balance Sheets (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 964,100,000	$ 442,116,000	$ 75,932,000
Short-term investments	445,000,000	744,676,000
Prepayments and other current assets	18,021,000	10,935,000
Total current assets	1,500,881,000	1,216,036,000
Total assets	1,609,956,000	1,297,638,000
Current liabilities:
Other current liabilities	60,811,000	30,196,000
Total current liabilities	192,901,000	98,043,000
Total liabilities	230,000,000	128,293,000
Shareholders' equity
Ordinary shares (par value of US$0.00006 per share; 500,000,000 shares authorized, 87,811,026 and 95,536,398 shares issued and outstanding as of December 31, 2020 and 2021, respectively)	6,000	5,000
Additional paid-in capital	2,825,948,000	1,897,467,000
Accumulated deficit	(1,418,074,000)	(713,603,000)
Accumulated other comprehensive income	(23,645,000)	(14,524,000)
Treasury stock	(4,279,000)	0
Total shareholders' equity	1,379,956,000	1,169,345,000	$ 294,660,000	$ 251,081,000
Total liabilities and shareholders' equity	1,609,956,000	1,297,638,000
Parent Company
Current assets:
Cash and cash equivalents	591,842	397,608
Short-term investments	445,000	744,676
Prepayments and other current assets	2,364	1,926
Total current assets	1,039,206	1,144,210
Investment in subsidiaries	341,980	28,090
Total assets	1,381,186	1,172,300
Current liabilities:
Other current liabilities	996	2,410
Total current liabilities	996	2,410
Deferred income	234	546
Total liabilities	1,230	2,956
Shareholders' equity
Ordinary shares (par value of US$0.00006 per share; 500,000,000 shares authorized, 87,811,026 and 95,536,398 shares issued and outstanding as of December 31, 2020 and 2021, respectively)	6	5
Additional paid-in capital	2,825,948	1,897,467
Accumulated deficit	(1,418,074)	(713,603)
Accumulated other comprehensive income	(23,645)	(14,525)
Treasury stock	(4,279)
Total shareholders' equity	1,379,956	1,169,344
Total liabilities and shareholders' equity	$ 1,381,186	$ 1,172,300

Financial Statements Schedule I - Condensed Balance Sheets (Parenthetical) (Details) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Condensed Balance Sheet Statements Captions [Line Items]
Ordinary shares, par value	$ 0.00006	$ 0.00006
Ordinary shares, shares authorized	500,000,000	500,000,000
Ordinary shares, shares outstanding	95,536,398	87,811,026
Ordinary shares, shares issued	95,536,398	87,811,026
Parent Company
Condensed Balance Sheet Statements Captions [Line Items]
Ordinary shares, par value	$ 0.00006	$ 0.00006
Ordinary shares, shares authorized	500,000,000	500,000,000
Ordinary shares, shares outstanding	95,536,398	87,811,026
Ordinary shares, shares issued	95,536,398	87,811,026

Financial Statements Schedule I - Condensed Statements of Operations and Comprehensive Loss (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating Expenses:
Research and development									$ (573,306,000)	$ (222,711,000)	$ (142,221,000)
Loss from operations	$ (219,196,000)	$ (83,205,000)	$ (170,571,000)	$ (227,092,000)	$ (95,256,000)	$ (76,257,000)	$ (83,966,000)	$ (46,322,000)	(700,064,000)	(301,801,000)	(203,196,000)
Interest income									2,190,000	5,120,000	8,232,000
Loss before income tax and share of loss from equity method investment									(703,414,000)	(267,786,000)	(194,319,000)
Income tax expense									0	0	0
Net loss attributable to ordinary shareholders	(211,825,000)	(96,412,000)	(163,324,000)	(232,910,000)	(76,547,000)	(63,741,000)	(80,629,000)	(47,988,000)	(704,471,000)	(268,905,000)	(195,071,000)
Net loss	$ (211,825,000)	$ (96,412,000)	$ (163,324,000)	$ (232,910,000)	$ (76,547,000)	$ (63,741,000)	$ (80,629,000)	$ (47,988,000)	(704,471,000)	(268,905,000)	(195,071,000)
Other comprehensive income (loss) , net of tax of nil:
Foreign currency translation adjustment									(9,121,000)	(19,144,000)	1,958,000
Comprehensive loss									(713,592,000)	(288,049,000)	(193,113,000)
Parent Company
Operating Expenses:
Research and development									(6)	(437)	(101)
General and administrative									(12,074)	(7,345)	(4,864)
Loss from operations									(12,080)	(7,782)	(4,965)
Interest income									1,881	4,899	7,987
Other income (expenses), net									(18,173)	312	311
Loss before income tax and share of loss from equity method investment									(28,372)	(2,571)	3,333
Equity in loss of subsidiaries									(676,099)	(266,334)	(198,404)
Income tax expense									0	0	0
Net loss attributable to ordinary shareholders									(704,471)	(268,905)	(195,071)
Net loss									(704,471)	(268,905)	(195,071)
Other comprehensive income (loss) , net of tax of nil:
Foreign currency translation adjustment									(9,121)	(19,144)	1,958
Comprehensive loss									$ (713,592)	$ (288,049)	$ (193,113)

Financial Statements Schedule I - Condensed Statements of Cash Flows (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from Operating activities:
Net loss	$ (211,825,000)	$ (96,412,000)	$ (163,324,000)	$ (232,910,000)	$ (76,547,000)	$ (63,741,000)	$ (80,629,000)	$ (47,988,000)	$ (704,471,000)	$ (268,905,000)	$ (195,071,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of deferred income									(521,000)	(312,000)	(312,000)
Share-based compensation									40,714,000	24,830,000	20,291,000
Loss from fair value changes of equity investment of readily determinable fair value									62,250,000
Changes in operating assets and liabilities:
Prepayments and other current assets									(7,086,000)	(4,199,000)	(1,125,000)
Other current liabilities									19,463,000	(10,977,000)	9,136,000
Net cash used in operating activities									(549,231,000)	(216,055,000)	(191,011,000)
Cash flows from investing activities:
Purchases of short-term investments									(445,000,000)	(949,161,000)	(277,640,000)
Purchase of investment in equity investee									30,000,000
Net cash provided by (used in) investing activities									249,957,000	(554,830,000)	(14,892,000)
Cash flows from financing activities:
Proceeds from exercises of stock options									7,417,000	6,664,000	1,055,000
Proceeds from issuance of ordinary shares upon public offerings									818,875,000	1,137,683,000	216,200,000
Payment of public offering costs									(1,837,000)	(5,380,000)	(854,000)
Net cash provided by financing activities									820,202,000	1,132,440,000	219,302,000
Net increase in cash, cash equivalents and restricted cash									522,044,000	366,417,000	13,490,000
Cash, cash equivalents and restricted cash — beginning of the year				442,859,000				76,442,000	442,859,000	76,442,000	62,952,000
Cash, cash equivalents and restricted cash — end of the year	964,903,000				442,859,000				964,903,000	442,859,000	76,442,000
Parent Company
Cash flows from Operating activities:
Net loss									(704,471)	(268,905)	(195,071)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of deferred income									(312)	(312)	(312)
Share-based compensation									3,435	3,025	2,013
Equity in loss of subsidiaries									676,099	266,334	198,404
Loss from fair value changes of equity investment of readily determinable fair value									14,617
Changes in operating assets and liabilities:
Prepayments and other current assets									(439)	2,253	(1,267)
Other current liabilities									(376)	738	102
Net cash used in operating activities									(11,447)	3,133	3,869
Cash flows from investing activities:
Purchases of short-term investments									(445,000)	(949,161)	(277,640)
Proceeds from maturity of short-term investments									743,902	405,000	277,990
Purchase of investment in equity investee									(30,000,000)
Investment in subsidiaries									(884,342)	(256,097)	(165,924)
Net cash provided by (used in) investing activities									(615,440)	(800,258)	(165,574)
Cash flows from financing activities:
Proceeds from exercises of stock options									7,418	6,664	1,055
Proceeds from issuance of ordinary shares upon public offerings									818,875	1,137,683	216,200
Payment of public offering costs									(1,692)	(4,541)	(854)
Net cash provided by financing activities									820,348	1,139,806	216,401
Employee taxes paid related to settlement of equity awards									(4,253)
Effect of foreign exchange rate changes on cash and cash equivalent									774	(515)
Net increase in cash, cash equivalents and restricted cash									194,234	342,166	54,696
Cash, cash equivalents and restricted cash — beginning of the year				$ 397,608				$ 55,442	397,608	55,442	746
Cash, cash equivalents and restricted cash — end of the year	$ 591,842				$ 397,608				$ 591,842	$ 397,608	$ 55,442