As of March 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; and in Nanjing, comprising approximately 70 square meters

with a lease expiration in February 2027. 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 first quarter of 2027.

The Company also has multiple short-term leased properties used as offices and employee dormitories. The Company recorded a total of $16,000 and $18,000 in short-term rent expenses during the three months ended March 31, 2025 and 2024, respectively. The short-term rent expense amounts are recorded in operating expenses in the accompanying condensed consolidated statements of operations and comprehensive income.

As of March 31, 2025, the Company recorded an aggregate right-of-use asset of $1.6 million, which amount is included in other assets, noncurrent, and an aggregate lease liability of $1.6 million in the accompanying condensed consolidated balance sheets.

For the three months ended March 31, 2025 and 2024, the Company’s operating lease expense was $0.2 million and $0.1 million, respectively. Variable lease payments for the three months ended March 31, 2025 and 2024 were immaterial.

Supplemental cash flow information related to operating leases was as follows (in thousands):


	Three Months Ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities	$	47	$	139

The present value assumptions used in calculating the present value of the lease payments were as follows:


	March 31, 2025			December 31, 2024
Weighted-average remaining lease term	2.1 years			2.3 years
Weighted-average discount rate		4.76	%		4.76	%

As of March 31, 2025, undiscounted future minimum payments under the Company’s operating leases were as follows (in thousands):


	Amount
Remaining in 2025	$	743
2026		638
2027		279
Total undiscounted lease payments		1,660
Less: imputed interest		(75	)
Total lease liabilities		1,585
Less: current portion of lease liabilities		(805	)
Lease liabilities, net of current portion	$	780

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 condensed consolidated balance sheets.

As of March 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 between 2067 and 2070. These parcels, with a combined area of approximately 66,559 square meters, are utilized as manufacturing facilities. As of March 31, 2025, the aggregate recorded land use rights, net assets for these parcels was $1.4 million, which amount is included in other assets, noncurrent on the Company’s condensed consolidated balance sheets.