Taxation (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
| Income Tax Disclosure [Abstract] |
|
| Income Before Income Tax Expenses |
The Company had minimal operations in jurisdictions other than the mainland China. Income before income tax expense consists of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
2023 |
|
|
2024 |
|
|
2025 |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
(in thousands) |
|
Mainland China |
|
|
1,813,055 |
|
|
|
1,604,428 |
|
|
|
1,372,793 |
|
|
|
196,307 |
|
Non-mainland China |
|
|
184,509 |
|
|
|
81,880 |
|
|
|
159,074 |
|
|
|
22,747 |
|
|
|
|
1,997,564 |
|
|
|
1,686,308 |
|
|
|
1,531,867 |
|
|
|
219,054 |
|
|
| Schedule of Income Tax Paid Net of Refunds |
The amount of income tax paid (net of refunds) is comprised of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
|
2023 |
|
|
|
2024 |
|
|
2025 |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
(in thousands) |
|
Mainland China |
|
|
159,094 |
|
|
|
153,498 |
|
|
|
187,941 |
|
|
|
26,875 |
|
|
| Income Tax (Benefit)/Expense |
The income tax (benefit)/expense is comprised of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
2023 |
|
|
2024 |
|
|
2025 |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
(in thousands) |
|
Current |
|
|
122,118 |
|
|
|
105,484 |
|
|
|
105,933 |
|
|
|
15,148 |
|
Deferred |
|
|
(49,963 |
) |
|
|
(42,525 |
) |
|
|
35,812 |
|
|
|
5,121 |
|
|
|
|
72,155 |
|
|
|
62,959 |
|
|
|
141,745 |
|
|
|
20,269 |
|
|
| Reconciliation of Statutory Income Tax Rate |
The mainland China statutory tax rate of 25% is used for the effective tax rate reconciliation as the majority of the Group’s operations are based in mainland China. The reconciliation for the years ended December 31, 2023, 2024 and 2025 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
2023 |
|
|
2024 |
|
|
2025 |
|
|
|
RMB |
|
|
Percent |
|
|
RMB |
|
|
Percent |
|
|
RMB |
|
|
US$ |
|
|
Percent |
|
|
|
(in thousands) |
|
|
|
|
Mainland China Statutory Tax Rate |
|
|
499,391 |
|
|
|
25.0 |
% |
|
|
421,577 |
|
|
|
25.0 |
% |
|
|
382,967 |
|
|
|
54,764 |
|
|
|
25.0 |
% |
Tax effects of jurisdiction outside of mainland China |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hong Kong |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate difference between Hong Kong and Mainland China |
|
|
255 |
|
|
|
0.0 |
% |
|
|
(3,605 |
) |
|
|
-0.2 |
% |
|
|
(1,406 |
) |
|
|
(201 |
) |
|
|
-0.1 |
% |
Changes in valuation allowances |
|
|
7,968 |
|
|
|
0.4 |
% |
|
|
305 |
|
|
|
0.0 |
% |
|
|
3,244 |
|
|
|
464 |
|
|
|
0.2 |
% |
Cayman Islands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate difference between Cayman Islands and Mainland China |
|
|
(45,675 |
) |
|
|
-2.3 |
% |
|
|
(28,636 |
) |
|
|
-1.7 |
% |
|
|
(35,685 |
) |
|
|
(5,103 |
) |
|
|
-2.3 |
% |
Other jurisdictions |
|
|
(480 |
) |
|
|
0.0 |
% |
|
|
(38 |
) |
|
|
0.0 |
% |
|
|
24 |
|
|
|
3 |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in Valuation Allowances |
|
|
(11,642 |
) |
|
|
-0.6 |
% |
|
|
(19,146 |
) |
|
|
-1.1 |
% |
|
|
10,617 |
|
|
|
1,518 |
|
|
|
0.7 |
% |
Nontaxable or Nondeductible Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses super-deduction |
|
|
(220,773 |
) |
|
|
-11.2 |
% |
|
|
(196,888 |
) |
|
|
-11.7 |
% |
|
|
(194,220 |
) |
|
|
(27,773 |
) |
|
|
-12.6 |
% |
Effect of preferential tax rate |
|
|
(119,658 |
) |
|
|
-6.0 |
% |
|
|
(38,030 |
) |
|
|
-2.3 |
% |
|
|
(43,965 |
) |
|
|
(6,287 |
) |
|
|
-2.9 |
% |
Changes in Unrecognized Tax Benefits |
|
|
(156,452 |
) |
|
|
-7.8 |
% |
|
|
(189,207 |
) |
|
|
-11.2 |
% |
|
|
(45,433 |
) |
|
|
(6,497 |
) |
|
|
-3.0 |
% |
Nondeductible expenses |
|
|
44,435 |
|
|
|
2.2 |
% |
|
|
46,990 |
|
|
|
2.8 |
% |
|
|
57,953 |
|
|
|
8,287 |
|
|
|
3.8 |
% |
Share-based payment awards |
|
|
(24,912 |
) |
|
|
-1.2 |
% |
|
|
(36,002 |
) |
|
|
-2.1 |
% |
|
|
(50,358 |
) |
|
|
(7,201 |
) |
|
|
-3.3 |
% |
Other Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of withholding tax on dividend |
|
|
99,122 |
|
|
|
5.0 |
% |
|
|
99,519 |
|
|
|
5.9 |
% |
|
|
57,743 |
|
|
|
8,257 |
|
|
|
3.8 |
% |
Outside basis difference |
|
|
5,327 |
|
|
|
0.3 |
% |
|
|
3,868 |
|
|
|
0.2 |
% |
|
|
1,467 |
|
|
|
210 |
|
|
|
0.1 |
% |
Others |
|
|
(4,751 |
) |
|
|
-0.2 |
% |
|
|
2,252 |
|
|
|
0.1 |
% |
|
|
(1,203 |
) |
|
|
(172 |
) |
|
|
-0.1 |
% |
Effective Tax Rate |
|
|
72,155 |
|
|
|
3.6 |
% |
|
|
62,959 |
|
|
|
3.7 |
% |
|
|
141,745 |
|
|
|
20,269 |
|
|
|
9.3 |
% |
|
| Components of Deferred Taxes |
The significant components of deferred taxes are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
2024 |
|
|
2025 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
(in thousands) |
|
Deferred tax assets |
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
38,829 |
|
|
|
43,501 |
|
|
|
6,221 |
|
Accrued staff cost and expenses |
|
|
46,729 |
|
|
|
4,859 |
|
|
|
695 |
|
Deferred revenue |
|
|
9,841 |
|
|
|
10,723 |
|
|
|
1,533 |
|
Tax losses |
|
|
412,192 |
|
|
|
395,644 |
|
|
|
56,575 |
|
VAT refund |
|
|
1,957 |
|
|
|
480 |
|
|
|
69 |
|
Less: Valuation allowances |
|
|
(201,302 |
) |
|
|
(192,585 |
) |
|
|
(27,539 |
) |
Total deferred tax assets |
|
|
308,246 |
|
|
|
262,622 |
|
|
|
37,554 |
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities |
|
|
|
|
|
|
|
|
|
Identifiable intangible assets arising from acquisition |
|
|
19,128 |
|
|
|
8,017 |
|
|
|
1,146 |
|
Intangible assets and internally-developed software |
|
|
11,280 |
|
|
|
11,112 |
|
|
|
1,589 |
|
Outside basis difference and others |
|
|
437,670 |
|
|
|
439,137 |
|
|
|
62,796 |
|
Total deferred tax liabilities |
|
|
468,078 |
|
|
|
458,266 |
|
|
|
65,531 |
|
|
| Movement of Valuation Allowance |
Movement of valuation allowance is as follow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
2023 |
|
|
2024 |
|
|
2025 |
|
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
(in thousands) |
|
Valuation allowance |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of the year |
|
|
(420,566 |
) |
|
|
(311,645 |
) |
|
|
(201,302 |
) |
|
|
(28,786 |
) |
Additions |
|
|
(26,623 |
) |
|
|
(34,672 |
) |
|
|
(36,557 |
) |
|
|
(5,227 |
) |
Reversal and write off (Note) |
|
|
135,544 |
|
|
|
145,015 |
|
|
|
45,274 |
|
|
|
6,474 |
|
Balance at ending of the year |
|
|
(311,645 |
) |
|
|
(201,302 |
) |
|
|
(192,585 |
) |
|
|
(27,539 |
) |
Note: It mainly represents valuation allowances written off due to the expiration of unused tax losses.
|