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, |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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:
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In 2025, the Group paid RMB60.6 million in income taxes (net of refunds received) in the Chinese mainland and 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:
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
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:
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
| 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:
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: valuation allowance |
|
|
(4,561,822 |
) |
|
|
(4,274,340 |
) |
|
|
|
|
|
|
|
|
|
Net deferred tax assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
Acquired intangible assets |
|
|
(66,969 |
) |
|
|
(50,424 |
) |
|
|
|
|
|
|
|
|
|
Total deferred tax liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Re-measurement due to applicable preferential tax rate for HNTE |
|
|
|
|
|
Expiration of loss carry forward and impact of disposal/close of subsidiaries |
|
|
|
|
| |
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 |
) |
|