v3.26.1
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.