v3.26.1
Taxation (Tables)
12 Months Ended
Dec. 31, 2025
Taxation  
Schedule of composition of income tax expense/(benefit)
The following table presents the composition of income tax expense/(benefit) for the years ended December 31, 2023, 2024 and 2025:
 
    
For the Year Ended December 31,
 
    
2023
    
2024
    
2025
 
    
RMB in thousands
 
Current income tax expenses
     81,797        55,738        55,217  
Withholding income tax expenses
     22,284        17,836        9,473  
Deferred tax benefits
     (25,376 )       (110,118 )       (47,545 ) 
  
 
 
    
 
 
    
 
 
 
Total
  
 
78,705
 
  
 
(36,544
) 
  
 
17,145
 
  
 
 
    
 
 
    
 
 
 
Schedule of reconciliation of the differences between the statutory income tax rate and the Group's effective income tax rate
Upon adoption of ASU
2023-09,
Improvements to Income Tax Disclosures, as described in Note 2,
Significant Accounting Policies
, the reconciliation of the differences between the statutory income tax rate and the Group’s effective income tax rate for the year ended December 31, 2025 was as follows:
 
    
RMB in
thousands
    
Percent
 
Statutory income tax rate
     302,022        25.0 % 
Foreign Tax Effects
     
Hong Kong, China
     
Statutory income tax rate difference between Chinese Hong Kong and Chinese mainland
     54,702        4.5 % 
Changes in valuation allowance
     100,373        8.3 % 
Other adjustments
     13,163      1.1 % 
Singapore
     
Statutory income tax rate difference between Singapore and Chinese mainland
     (13,837 )      (1.2 %) 
Changes in valuation allowance
     (29,798 )      (2.4 %) 
Other foreign jurisdictions
     9,846      0.8 % 
Change in valuation allowance
     (361,403 )      (29.9 %) 
Share-based compensation
     292,164        24.2 % 
Research and development tax credits
     (273,287 )      (22.6 %) 
Preferential tax treatments
     (126,221 )       (10.4 %) 
Inter-group restructuring costs
     52,623        4.3 % 
Other adjustments
     (3,202 )      (0.3 %) 
Effective income tax rate
  
 
17,145
 
  
 
1.4
% 
  
 
 
    
 
 
 
In 2025, the Group paid RMB60.6 million in income taxes (net of refunds received) in the Chinese mainland and
RMB
2.5
million in income taxes in jurisdictions outside of the Chinese mainland.
The following table presents a reconciliation of the differences between the statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2023 and 2024 in accordance with the guidance prior to the adoption of ASU
2023-09:
 
    
2023
    
2024
 
    
%
    
%
 
Statutory income tax rate
     25.00        25.00  
Permanent differences
     (1.33 )       5.30  
Tax rate difference from statutory rate in other jurisdictions*
     (2.96 )       (7.80 ) 
Tax effect of preferential tax treatments
     (4.73 )       (9.49 ) 
Withholding tax
     (0.47 )       (1.29 ) 
Change in valuation allowance
     (17.17 )       (9.11 ) 
  
 
 
    
 
 
 
Effective income tax rate
  
 
(1.66
) 
  
 
2.61
 
  
 
 
    
 
 
 
 
*
It is primarily due to the tax effect of the Company as a
tax-exempt
entity incorporated in Hong Kong and the Cayman Islands.
Schedule of net operating tax loss carry forwards
As of December 31, 2025, certain entities of the Group had net operating tax loss carry forwards as follows:
 
 
  
RMB in
thousands
 
Loss expiring in 2026
     246,081  
Loss expiring in 2027
     927,888  
Loss expiring in 2028
     718,454  
Loss expiring in 2029
     306,105  
Loss expiring in 2030 and thereafter
     16,051,332  
  
 
 
 
Total
  
 
18,249,860
 
  
 
 
 
Schedule of tax impact of significant temporary differences that give rise to the deferred tax assets and liabilities
The following table presents the tax impact of significant temporary differences that give rise to the deferred tax assets and liabilities as of December 31, 2024 and 2025:
 
    
December 31,
2024
    
December 31,
2025
 
    
RMB in thousands
 
Deferred tax assets:
     
Deferred revenue
     265,876        282,829  
Net operating tax loss carry forwards
     3,490,177        3,052,326  
Accruals and others*
     940,900        1,105,317  
  
 
 
    
 
 
 
Total deferred tax assets
  
 
4,696,953
 
  
 
4,440,472
 
  
 
 
    
 
 
 
Less: valuation allowance
     (4,561,822 )       (4,274,340 )
  
 
 
    
 
 
 
Net deferred tax assets
  
 
135,131
 
  
 
166,132
 
  
 
 
    
 
 
 
Deferred tax liabilities:
     
Acquired intangible assets
     (66,969 )       (50,424 ) 
  
 
 
    
 
 
 
Total deferred tax liabilities
  
 
(66,969
) 
  
 
(50,424
) 
  
 
 
    
 
 
 
 
*
Accruals and others primary represent accrued expenses which are not deductible until paid under PRC laws, as well as non-deductible advertising expenses.
Schedule of movement of the aggregate valuation allowances for deferred tax assets
The following table sets forth the movement of the aggregate valuation allowances for deferred tax assets for the periods presented:
 
     
Balance at
January 1
   
Re-measurement

due to applicable
preferential tax
rate for HNTE
   
(Provision)

/Reversal
   
Expiration of loss carry
forward and impact of
disposal/close of subsidiaries
    
Balance at
December 31
 
  2023       (3,657,467 )      (18,437 )      (822,414 )      54,207        (4,444,111 ) 
  2024       (4,444,111 )      —        (129,769 )      12,058        (4,561,822 ) 
  2025       (4,561,822 )      —        194,334       93,148        (4,274,340 )