Tax-driven insider sale at Zai Lab: Chief Legal Officer unloads $213k in ADSs

Rhea-AI Filing Summary

Zai Lab (NASDAQ:ZLAB) filed a Form 4 revealing that Chief Legal Officer Edmondson Frazor Titus III’s 14,600 RSUs vested on 25 Jun 2025, converting into the same number of ADSs.

To cover withholding taxes, he sold 5,877 ADSs on 26 Jun 2025 at $36.132 (≈ $213 k), coded “S”. Post-transaction, his direct stake stands at 44,975 ADSs, each ADS representing ten ordinary shares.

The sale, while automatic under a Rule 10b5-1 plan, equals roughly 12 % of his pre-sale position, crossing the 5 % materiality threshold and offering investors a governance data-point rather than a directional signal.

Positive

• None.

Negative

• Chief Legal Officer sold 5,877 ADSs (~$213 k), reducing his position by ~12 %; insider sales can signal weaker confidence despite tax-withholding context.

Insights

Corporate Governance Analyst

Tax-driven insider sale; governance impact minimal.

The RSU vesting is routine compensation. The 5,877-share disposal, clearly flagged as tax withholding under a 10b5-1 plan, removes discretionary intent. Remaining exposure of 44,975 ADSs maintains insider–shareholder alignment. No red flags on commitment or strategy emerge, so the governance implication is neutral.

Portfolio Manager

Small value, low liquidity impact, sentiment mildly negative.

At ≈$213 k, the sale is less than 0.1 % of ZLAB’s average daily turnover. Still, any >5 % stake reduction can trigger caution screens. Lack of open-market buying suggests no bullish read-through, but automatic nature tempers concern. File under watchlist, not action.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Edmondson Frazor Titus III

(Last) (First) (Middle)

C/O ZAI LAB LIMITED

314 MAIN STREET, 4TH FLOOR, SUITE 100

(Street)

CAMBRIDGE MA 02142

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
Zai Lab Ltd [ ZLAB ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director		10% Owner
X	Officer (give title below)		Other (specify below)
	Chief Legal Officer

3. Date of Earliest Transaction (Month/Day/Year)
06/25/2025

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
American Depositary Shares(1)	06/25/2025		M		14,600(2)	A	(3)	44,975	D
American Depositary Shares(1)	06/26/2025		S		5,877(4)	D	$36.132	39,098	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Restricted Share Units	(3)	06/25/2025		M			14,600	(5)	(5)	American Depositary Shares(1)	14,600	$0	14,600	D

Explanation of Responses:

1. Each American Depositary Share ("ADS") represents ten Ordinary Shares of the issuer. Our ADSs and Ordinary Shares are fully fungible. For purposes of this Form 4, we are reporting this in terms of ADSs.

2. ADSs acquired upon vesting of Restricted Share Units ("RSUs").

3. Each RSU represents a contingent right to receive one ADS.

4. These ADSs were sold automatically to cover taxes upon vesting of RSUs.

5. The RSUs vest in equal annual installments over four years beginning on 06/25/2023, the first anniversary of the date of grant. Vested shares will be delivered in the form of ADSs to the reporting person following vesting.

	/s/ Bruce Blefeld, Attorney-in-Fact	06/27/2025
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

FAQ

How many ZLAB ADSs did the Chief Legal Officer sell on 26 June 2025?

He sold 5,877 ADSs at $36.132 per share, totaling roughly $213,000.

What percentage of his holdings did this sale represent for ZLAB?

The sale equaled about 12 % of his approximate 50,852-ADS stake prior to the transaction.

How many ZLAB ADSs does Edmondson Frazor Titus III own after the Form 4 filing?

He directly owns 44,975 ADSs following the RSU vesting and tax-related sale.

Was the ZLAB share sale executed under a Rule 10b5-1 trading plan?

Yes. The Form 4 states the transaction was automatic to satisfy tax obligations under Rule 10b5-1(c).

What is the vesting schedule for the RSUs reported in the ZLAB Form 4?

The 14,600 RSUs vest in equal annual tranches over four years beginning 25 Jun 2023, with each unit converting into one ADS upon vesting.