Leases
The Company has operating leases for office and manufacturing facilities in the U.S., Switzerland, and China. The leases have remaining lease terms of up to five years, some of which include options to extend the leases that have not been included in the calculation of the Company’s lease liabilities and ROU assets. The Company has land use rights, which represent land acquired for the biologics manufacturing facility in Guangzhou, the land acquired for the Company’s research, development and office facility in Changping, Beijing, the land acquired for the Company’s research, development and manufacturing facility in Suzhou, and the land acquired for the Company’s research and development facility in Shanghai. The Company also has certain leases with terms of 12 months or less for certain equipment, office and lab space, which are expensed and not recorded on the balance sheet.
The components of lease expense were as follows:
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | $ | | $ | | $ |
| Operating lease cost | 24,899 | | | 26,575 | | | 25,978 | |
| Variable lease cost | 4,282 | | | 4,580 | | | 6,101 | |
| Short-term lease cost | 1,804 | | | 2,897 | | | 1,683 | |
| Total lease cost | 30,985 | | | 34,052 | | | 33,762 | |
Supplemental balance sheet information related to leases was as follows:
| | | | | | | | | | | |
| | As of December 31, |
| | 2025 | | 2024 |
| | $ | | $ |
| Operating lease right-of-use assets | 69,306 | | | 60,639 | |
| Land use rights, net | 78,878 | | | 78,670 | |
| Total operating lease right-of-use assets | 148,184 | | | 139,309 | |
| | | |
| Current portion of operating lease liabilities | 20,698 | | | 17,576 | |
| Operating lease liabilities, non-current portion | 52,940 | | | 44,277 | |
| Total lease liabilities | 73,638 | | | 61,853 | |
Maturities of operating lease liabilities are as follows:
| | | | | | | | |
| | Amounts |
| | | $ |
| Year ending December 31, 2026 | | 23,653 | |
| Year ending December 31, 2027 | | 21,761 | |
| Year ending December 31, 2028 | | 16,453 | |
| Year ending December 31, 2029 | | 11,173 | |
| Year ending December 31, 2030 | | 6,641 | |
| Thereafter | | 888 | |
| Total lease payments | | 80,569 | |
| Less imputed interest | | (6,931) | |
| Present value of lease liabilities | | 73,638 | |
Other supplemental information related to leases is summarized below:
| | | | | | | | | | | | | | | | | |
| | Year ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | $ | | $ | | $ |
| Operating cash flows used in operating leases | 24,000 | | | 56,005 | | | 27,985 | |
| ROU assets obtained in exchange for new operating lease liabilities | 29,826 | | | 47,066 | | | 11,854 | |
| | | | | | | | | | | |
| | As of December 31, |
| | 2025 | | 2024 |
| Weighted-average remaining lease term (years) | 4 | | 4 |
| Weighted-average discount rate | 5.02 | % | | 5.23 | % |
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.