Taxation (Tables)
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12 Months Ended |
Dec. 31, 2025 |
| Taxation |
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| Schedule of Income before Income Tax |
| | | | | | | | | For the Year Ended December 31, | | | 2023 | | 2024 | | 2025 | Mainland China | | 10,232,260 | | 8,973,646 | | 646,374 | Non-Mainland China jurisdictions | | 219,503 | | 341,978 | | 650,761 | Total income before income tax | | 10,451,763 | | 9,315,624 | | 1,297,135 |
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| Schedule of composition of income tax (benefit)/expense |
| | | | | | | | | For the Year Ended December 31, | | | 2023 | | 2024 | | 2025 | Current income tax expense | | | | | | | Mainland China | | 441,098 | | 1,320,074 | | 988,072 | Non-Mainland China jurisdictions | | 5,127 | | 107 | | 95,127 | Total current income tax expense | | 446,225 | | 1,320,181 | | 1,083,199 | Deferred income tax benefit | | | | | | | Mainland China | | (1,803,587) | | (49,807) | | (921,813) | Non-Mainland China jurisdictions | | — | | — | | (3,679) | Total deferred income tax benefit | | (1,803,587) | | (49,807) | | (925,492) | Total income tax (benefit)/expense | | | | | | | Mainland China | | (1,362,489) | | 1,270,267 | | 66,259 | Non-Mainland China jurisdictions | | 5,127 | | 107 | | 91,448 | Total income tax (benefit)/expense | | (1,357,362) | | 1,270,374 | | 157,707 |
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| Schedule of reconciliations of the income tax (benefit)/expense |
Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 3, Recent accounting pronouncements, reconciliations of the income tax expense computed by applying Mainland China statutory income tax rate of 25% to the Group’s income before income tax for the year ended December 31, 2025 was as follows (in thousands, except for percentages): | | | | | | | | For the Year Ended | | | | December 31, 2025 | | | | Amount | | Percent | | Mainland China statutory income tax rate | | 324,284 | | 25.0 | % | Domestic income taxes | | | | | | Tax effect of tax-exempt entity and preferential tax rate | | (618,638) | | (47.7) | % | Change in valuation allowance | | 483,390 | | 37.3 | % | Tax effect of Super R&D Deduction | | (402,584) | | (31.0) | % | Share-based compensation expenses and other non-deductible expense | | 422,068 | | 32.5 | % | Other adjustments | | 24,090 | | 1.9 | % | Non-Mainland China tax effects | | | | | | Hong Kong | | | | | | Non-taxable items | | (102,694) | | (7.9) | % | Pillar Two | | 86,052 | | 6.6 | % | Statutory tax rate difference between Hong Kong and Mainland China | | (55,961) | | (4.3) | % | Other adjustments | | 2,379 | | 0.2 | % | Cayman | | | | | | Statutory tax rate difference between Cayman and Mainland China | | (7,376) | | (0.6) | % | Other non-Mainland China jurisdictions | | 2,697 | | 0.2 | % | Income tax expense | | 157,707 | | 12.2 | % |
| | | | | | | For the Year Ended December 31, | | | 2023 | | 2024 | Income before income tax | | 10,451,763 | | 9,315,624 | Income tax expense computed at Mainland China statutory income tax rate of 25% | | 2,612,941 | | 2,328,906 | Tax effect of tax‑exempt entity and preferential tax rate | | (1,613,371) | | (797,326) | Tax effect of Super R&D Deduction and others | | (1,055,404) | | (954,781) | Non‑deductible expenses | | 512,572 | | 611,424 | Change in valuation allowance | | (1,814,100) | | 82,151 | Income tax (benefit)/expense | | (1,357,362) | | 1,270,374 |
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| Schedule of income tax holiday tax rates |
| | | | | | | | | For the Year Ended December 31, | | | 2023 | | 2024 | | 2025 | Tax effect of tax‑exempt entity and preferential tax rate | | 1,613,371 | | 797,326 | | 618,638 | Effect of tax holiday on basic net earnings per share | | 0.82 | | 0.40 | | 0.31 | Effect of tax holiday on diluted net earnings per share | | 0.76 | | 0.37 | | 0.29 |
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| Schedule of components of the group's deferred tax assets (liabilities) |
| | | | | | | As of December 31, | | | 2024 | | 2025 | Deferred tax assets: | | | | | Net operating loss carryforwards | | 1,564,993 | | 2,102,111 | Warranty reserves | | 1,397,501 | | 1,917,812 | Others | | 378,106 | | 413,950 | Total deferred tax assets | | 3,340,600 | | 4,433,873 | Less: Valuation allowance | | (381,506) | | (876,765) | Deferred tax assets, net of valuation allowance | | 2,959,094 | | 3,557,108 | Deferred tax liabilities: | | | | | Accelerated tax depreciation and others | | (1,264,976) | | (909,589) | Fair value change of certain investments | | (16,937) | | (4,965) | Total deferred tax liabilities | | (1,281,913) | | (914,554) | Deferred tax assets, net | | 1,677,181 | | 2,642,554 |
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| Schedule of movement of valuation allowance |
| | | | | | | As of December 31, | | | 2024 | | 2025 | Valuation allowance | | | | | Balance at beginning of the year | | 299,355 | | 381,506 | Additions | | 88,236 | | 495,259 | Reversals | | (6,085) | | — | Balance at end of the year | | 381,506 | | 876,765 |
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