As of September 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 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 $17,000 and $19,000 in short-term rent expenses during the three months ended September 30, 2025 and 2024, respectively. The Company recorded a total of $49,000 and $54,000 in short-term rent expenses during the nine months ended September 30, 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 September 30, 2025, the Company recorded an aggregate right-of-use asset of $1.3 million, which amount is included in other assets, noncurrent, and an aggregate lease liability of $1.2 million in the accompanying condensed consolidated balance sheets.

For the three months ended September 30, 2025 and 2024, the Company’s operating lease expense was $0.2 million and $0.3 million, respectively. For the nine months ended September 30, 2025 and 2024, the Company’s operating lease expense was $0.6 million and $0.5 million, respectively. Variable lease payments for the three and nine months ended September 30, 2025 and 2024 were immaterial.

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


	Nine Months Ended September 30,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities	$	564	$	631

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


	September 30, 2025			December 31, 2024
Weighted-average remaining lease term	1.6 years			2.3 years
Weighted-average discount rate		4.76	%		4.76	%

As of September 30, 2025, undiscounted future minimum payments under the Company’s operating leases were as follows (in thousands):


	Amount
Remaining in 2025	$	249
2026		661
2027		300
Total undiscounted lease payments		1,210
Less: imputed interest		(45	)
Total lease liabilities		1,165
Less: current portion of lease liabilities		(626	)
Lease liabilities, net of current portion	$	539

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 September 30, 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 September 30, 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.