GYRE THERAPEUTICS, INC. Leases Disclosure
7. |
Leases |
Operating leases
As of December 2025, Gyre Pharmaceuticals maintained leases for office spaces in the following locations: in Beijing, comprising approximately 2,130 square meters with a lease expiration in June 2027; in Zhengzhou, comprising approximately 180 square meters with a lease expiration in August 2026; in Shanghai, comprising approximately 224 square meters with a lease expiration in December 2026; in Nanjing, comprising approximately 70 square meters with a lease expiration in February 2027; and in Beijing, for a staff dormitory comprising approximately 249 square meters with a lease expiration in March 2028. The Company also holds a lease for its U.S. headquarters in San Diego, California, which was secured in November 2023 and is set to expire in the .
The Company also has multiple short-term leased properties used as offices and employee dormitories. The Company recorded a total of $66 thousand and $68 thousand short-term rent expenses during the years ended December 31, 2025 and 2024, respectively. The short-term rent expense amounts are recorded in operating expenses in the accompanying consolidated statements of operations and comprehensive income.
As of December 31, 2025, the Company recorded an aggregate ROU asset of $1.1 million and an aggregate lease liability of $0.9 million in the accompanying consolidated balance sheets.
Rent expense related to operating leases was $0.9 million and $0.7 million for the years ended December 31, 2025, and 2024, respectively. Variable lease payments for the years ended December 31, 2025 and 2024 were immaterial.
Supplemental cash flow information related to operating leases was as follows (in thousands):
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Year Ended December 31, |
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2025 |
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2024 |
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Cash paid for amounts included in the measurement of lease liabilities: |
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Operating cash flows from operating lease |
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$ |
821 |
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$ |
872 |
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The present value assumptions used in calculating the present value of the lease payments were as follows:
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Year Ended December 31, |
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2025 |
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2024 |
Weighted-average remaining lease term |
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1.4 years |
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2.3 years |
Weighted-average discount rate |
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4.76% |
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4.76% |
As of December 31, 2025, undiscounted future minimum payments under the Company’s operating leases were as follows (in thousands):
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Amount |
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2026 |
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$ |
668 |
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2027 |
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|
303 |
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Total undiscounted lease payments |
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971 |
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Less: imputed interest |
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(32 |
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Total lease liabilities |
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939 |
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Less: current portion of lease liabilities |
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(636 |
) |
Lease liabilities, net of current portion |
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$ |
303 |
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The Company is required to maintain security deposits of $0.3 million in connection with various leases, which amounts are included in other assets, noncurrent on the Company’s consolidated balance sheets.
Land use rights
As of December 31, 2025, the Company held land use rights for two land parcels in Beijing’s Shunyi District, expiring in 2053, and in Cangzhou, Hebei Province, expiring from 2067 to 2070. These parcels, with a combined area of approximately 66,559 square meters, are utilized as manufacturing facilities. As of December 31, 2025, the aggregate recorded land use rights, net assets for these parcels was $1.4 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 27, 2024 | |
| 2022 | Mar 30, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 4, 2021 | |
| 2019 | Feb 20, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.