v3.26.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Summary of Income or (Loss) Before Income Taxes

The Group’s income/(loss)before income taxes consists of:

 

 

 

Year ended December 31,

 

 

 

2023

 

 

2024

 

 

2025

 

 

2025

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

(In thousands)

 

Non-Chinese mainland

 

 

(366,657

)

 

 

(445,424

)

 

 

(43,145

)

 

 

(6,170

)

Chinese mainland

 

 

2,399,258

 

 

 

1,297,103

 

 

 

(16,356

)

 

 

(2,339

)

 

 

 

2,032,601

 

 

 

851,679

 

 

 

(59,501

)

 

 

(8,509

)

 

Components of Income Tax Expense

Income tax expense for the years ended December 31, 2023, 2024 and 2025 consists of:

 

 

 

Year ended December 31,

 

 

 

2023

 

 

2024

 

 

2025

 

 

2025

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

(In thousands)

 

Current income tax expense

 

 

81,055

 

 

 

85,450

 

 

 

141,779

 

 

 

20,274

 

Deferred income tax expense/(benefit)

 

 

(1,008

)

 

 

(24,360

)

 

 

2,763

 

 

 

395

 

 

 

 

80,047

 

 

 

61,090

 

 

 

144,542

 

 

 

20,669

 

Summary of Reconciliation of Tax Expense Computed by Applying Statutory Income Tax Rate to Pre-Tax Loss or Income

The reconciliation of total tax expense computed by applying the respective statutory income tax rate to pre-tax loss or income is as follows:

 

 

 

Year ended December 31,

 

 

 

2023

 

 

2024

 

 

 

RMB

 

 

RMB

 

 

 

(In thousands)

 

Income tax expense at PRC statutory rate

 

 

508,150

 

 

 

212,920

 

Effect of differing tax rates in different jurisdictions

 

 

98,963

 

 

 

139,126

 

Nondeductible expenses and nontaxable income, net

 

 

119,442

 

 

 

33,714

 

Research and development super-deduction

 

 

(141,454

)

 

 

(140,153

)

Effect of PRC preferential tax rates

 

 

(169,264

)

 

 

(111,365

)

Other adjustments

 

 

14,692

 

 

 

8,962

 

Change in valuation allowance

 

 

(350,482

)

 

 

(82,114

)

Income tax expense

 

 

80,047

 

 

 

61,090

 

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2025

 

 

Percent

 

 

 

RMB

 

 

US$

 

 

%

 

 

 

(In thousands)

 

 

 

 

Income tax benefit at PRC statutory rate

 

 

(14,875

)

 

 

(2,127

)

 

 

25

%

Effect of PRC preferential tax rates

 

 

64,902

 

 

 

9,281

 

 

 

(109

)%

Foreign tax effects

 

 

22,863

 

 

 

3,269

 

 

 

(38

)%

Research and development super-deduction

 

 

(116,810

)

 

 

(16,704

)

 

 

196

%

Change in valuation allowance

 

 

15,721

 

 

 

2,248

 

 

 

(26

)%

Nontaxable or nondeductible items

 

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

156,169

 

 

 

22,332

 

 

 

(262

)%

Others

 

 

29,717

 

 

 

4,249

 

 

 

(50

)%

Other adjustments

 

 

(13,145

)

 

 

(1,879

)

 

 

22

%

Income tax expense

 

 

144,542

 

 

 

20,669

 

 

 

(242

)%

 

 

Summary of Tax Effects of Temporary Differences to Deferred Tax Balances

The tax effects of temporary differences that give rise to the deferred tax balances at December 31, 2024 and 2025 are as follows:

 

 

 

As of December 31,

 

 

 

2024

 

 

2025

 

 

2025

 

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

(In thousands)

 

Deferred tax assets:

 

 

 

 

 

 

 

 

 

Accrued expenses and others

 

 

620,639

 

 

 

558,550

 

 

 

79,872

 

Bad debt provision

 

 

69,182

 

 

 

95,107

 

 

 

13,600

 

Net operating losses carried forward

 

 

1,561,051

 

 

 

1,920,820

 

 

 

274,674

 

Recorded cost relating to capitalized assets

 

 

3,406,425

 

 

 

3,069,829

 

 

 

438,980

 

Operating lease liabilities

 

 

81,807

 

 

 

62,028

 

 

 

8,870

 

Fixed assets depreciation

 

 

11,836

 

 

 

11,908

 

 

 

1,701

 

Valuation allowance

 

 

(5,604,755

)

 

 

(5,613,637

)

 

 

(802,739

)

Deferred tax assets, net

 

 

146,185

 

 

 

104,605

 

 

 

14,958

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

 

Long term investment fair value change

 

 

40,842

 

 

 

21,804

 

 

 

3,118

 

Operating lease assets

 

 

81,807

 

 

 

62,028

 

 

 

8,870

 

 

 

 

122,649

 

 

 

83,832

 

 

 

11,988

 

 

 

 

As of December 31,

 

 

 

2024

 

 

2025

 

 

2025

 

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

(In thousands)

 

Classification in the consolidated balance sheets:

 

 

 

 

 

 

 

 

 

Deferred tax assets, net

 

 

23,536

 

 

 

20,773

 

 

 

2,970

 

Deferred tax liabilities

 

 

—

 

 

 

—

 

 

 

—