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
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|
|
|
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|
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|
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 |
% |
|