v3.26.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Summary of income (loss) before income taxes

Income (loss) before income taxes consists of:

 

 

Year ended December 31,

 

 

2023

 

 

2024

 

 

2025

 

 

RMB

 

 

RMB

 

 

RMB

 

Chinese mainland

 

2,277

 

 

 

(1,040,744

)

 

 

(411,103

)

Non-Chinese mainland

 

10,247

 

 

 

422

 

 

 

83,685

 

Income/(loss) before income tax

 

12,524

 

 

 

(1,040,322

)

 

 

(327,418

)

Summary of current and deferred components of the income tax expense

The current and deferred components of the income tax expense appearing in the consolidated statement of operations were as follows:

 

 

Year ended December 31,

 

 

2023

 

 

2024

 

 

2025

 

 

RMB

 

 

RMB

 

 

RMB

 

Current tax (expenses)/ benefits

 

 

(8,744

)

 

 

123

 

 

 

169

 

Deferred tax (expenses)/benefits

 

 

(1,913

)

 

 

(8,755

)

 

 

3,942

 

 

 

(10,657

)

 

 

(8,632

)

 

 

4,111

 

Summary of principle components of deferred tax assets and deferred taxes liability

The principle components of deferred tax assets were as follows:

 

 

As of December 31,

 

 

2024

 

 

2025

 

 

RMB

 

 

RMB

 

Deferred tax assets:

 

 

 

 

 

 

Deductible temporary difference related to advertising
   expenses

 

 

786,469

 

 

 

893,927

 

Net operating loss carrying forwards

 

 

827,031

 

 

 

782,319

 

Transfer of intangible assets

 

 

1,002

 

 

 

833

 

Accrued liabilities

 

 

1,891

 

 

 

1,904

 

Total deferred tax assets

 

 

1,616,393

 

 

 

1,678,983

 

Less: valuation allowance

 

 

(1,616,393

)

 

 

(1,678,983

)

Deferred tax assets, net

 

 

—

 

 

 

—

 

 

The principle components of deferred tax liabilities were as follows:

 

 

As of December 31,

 

 

2024

 

 

2025

 

 

RMB

 

 

RMB

 

Deferred tax liabilities:

 

 

 

 

 

 

Building and land use right

 

 

65,706

 

 

 

63,906

 

Intangible assets

 

 

4,475

 

 

 

10,589

 

Unrecognized gains of investments

 

 

423

 

 

 

753

 

Total deferred tax liabilities

 

 

70,604

 

 

 

75,248

 

Summary of movements of valuation allowance

The movements of valuation allowance for the years end December 31, 2023, 2024 and 2025 were as follows:

 

 

Year ended December 31,

 

 

2023

 

 

2024

 

 

2025

 

 

RMB

 

 

RMB

 

 

RMB

 

Balance at beginning of the period

 

 

1,351,067

 

 

 

1,397,121

 

 

 

1,616,393

 

Acquisitions

 

 

—

 

 

 

—

 

 

 

49,056

 

Additions

 

 

46,054

 

 

 

219,272

 

 

 

13,534

 

Balance at end of the period

 

 

1,397,121

 

 

 

1,616,393

 

 

 

1,678,983

 

Sumamry of reconciliation of effective tax rate and statutory income tax rate

The reconciliation of the effective tax rate and the statutory income tax rate applicable to operations was as follow:

 

 

Year ended December 31,

 

 

2023

 

 

2024

 

 

RMB

 

 

RMB

 

Income/(loss) before provision for income tax
   and share of results of equity investees

 

 

12,524

 

 

 

(1,040,322

)

Income tax (expense)/benefits computed at an
   applicable tax rate of
25%

 

 

(3,131

)

 

 

260,081

 

Effect of permanent differences

 

 

(27,346

)

 

 

(34,587

)

Effect of research and development super-deduction

 

 

44,935

 

 

 

52,705

 

Effect of preferential tax rate

 

 

17,480

 

 

 

(67,850

)

Effect on tax rates in different tax jurisdictions

 

 

3,459

 

 

 

291

 

Change in valuation allowance

 

 

(46,054

)

 

 

(219,272

)

 

 

(10,657

)

 

 

(8,632

)

 

 

 

14. INCOME TAXES - continued

 

 

Year ended December 31,

 

 

2025

 

 

RMB

 

 

Percent

 

Loss before income tax

 

(327,418

)

 

 

 

Income tax benefits at PRC statutory rate

 

81,855

 

 

 

25.0

%

Other jurisdictions' tax effects

 

 

 

 

 

    Cayman Islands

 

 

 

 

 

        Statutory tax rate difference between PRC and other
            jurisdictions

 

19,915

 

 

 

6.1

%

    Hong Kong

 

1,067

 

 

 

0.3

%

    Other foreign jurisdictions

 

(61

)

 

 

0.0

%

Effect of changes in tax laws or rates enacted in the current year

 

—

 

 

 

0.0

%

Effect of cross-border tax laws

 

—

 

 

 

0.0

%

Change in valuation allowance

 

(13,493

)

 

 

(4.1

)%

Nontaxable or nondeductible items

 

 

 

 

 

    Non-taxable income

 

—

 

 

 

0.0

%

    Non-deductible expenses

 

(4,390

)

 

 

(1.3

)%

        Share-based compensation expenses

 

(2,446

)

 

 

(0.7

)%

        Others

 

(1,944

)

 

 

(0.6

)%

Changes in unrecognized tax benefits

 

—

 

 

 

0.0

%

Other adjustments

 

 

 

 

 

    Effect of preferential tax rate

 

(114,066

)

 

 

(34.9

)%

    Effect of research and development super-deduction

 

31,596

 

 

 

9.7

%

    Others

 

1,688

 

 

 

0.5

%

Income tax benefits

 

4,111

 

 

 

1.3

%