TAXATION (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| TAXATION |
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| Schedule of components of income (loss) before tax for the years |
| | | | | | | | | For the Year Ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | | | | (in thousands) | Income (loss) before income tax expense | | | | | | | Income from Mainland China operations | | 10,550,583 | | 9,143,316 | | 5,905,159 | Loss from non‑Mainland China operations | | (2,666,588) | | (2,273,247) | | (1,228,056) | Total income before income tax expense | | 7,883,995 | | 6,870,069 | | 4,677,103 | | | | | | | | Income tax expense (benefit) from Mainland China operations | | | | | | | Current income tax expense | | 2,243,600 | | 2,595,844 | | 1,892,115 | Deferred tax expense (benefit) | | (273,191) | | 223,235 | | (224,991) | Income tax expense from Mainland China operations | | 1,970,409 | | 2,819,079 | | 1,667,124 | Income tax expense (benefit) from non-Mainland China operations | | | | | | | Current income tax expense | | 60,313 | | 46,482 | | 45,374 | Deferred tax benefit | | (36,331) | | (73,672) | | (26,409) | Income tax expense (benefit) from non-Mainland China operations | | 23,982 | | (27,190) | | 18,965 | Total income tax expense | | 1,994,391 | | 2,791,889 | | 1,686,089 |
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| Schedule of reconciliation between the Mainland China statutory income rate and the effective tax rate |
| | | | | | | | For the Year Ended December 31, | | | | 2023 | | 2024 | | Statutory income tax rate | | 25.0 | % | 25.0 | % | Tax effect of preferential treatments | | (3.7) | % | (3.0) | % | Tax effect of tax-exempt entities | | 8.4 | % | 8.3 | % | Effect on tax rates in different tax jurisdictions | | 0.3 | % | (0.4) | % | Tax effect of permanent difference | | (4.1) | % | (0.7) | % | Tax effect of R&D deduction and others | | (2.0) | % | (2.3) | % | Change in valuation allowance | | 1.4 | % | 13.7 | % | Effective tax rates | | 25.3 | % | 40.6 | % |
| | | | | | | | For the Year Ended December 31, 2025 | | | | Amount | | Percent | | | | (RMB in thousands) | | | | Mainland China statutory tax rate | | 1,169,276 | | 25.0 | % | Foreign tax effects | | | | | | Statutory tax rate difference between Cayman Island and Mainland China | | (192,363) | | (4.1) | % | Statutory tax rate difference between Hong Kong, China and Mainland China | | (2,278) | | 0.0 | % | Pillar II impact for Hong Kong, China | | 43,988 | | 0.9 | % | Other foreign jurisdictions | | 401 | | 0.0 | % | Changes in valuation allowances | | 185,516 | | 4.0 | % | Nontaxable or nondeductible items | | | | | | Share-based compensation | | 476,231 | | 10.2 | % | Preferential tax benefits | | (65,016) | | (1.4) | % | Research and development super deduction | | (143,723) | | (3.1) | % | Others | | 214,057 | | 4.5 | % | Effective tax rates | | 1,686,089 | | 36.0 | % |
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| Schedule of income taxes paid (net of refunds received) |
| | | | | | | | For the Year Ended December 31, 2025 | | | | Amount | | Percent | | | | (RMB in thousands) | | | | Mainland China | | 2,346,102 | | 99.9 | % | Others | | 1,386 | | 0.1 | % | Total | | 2,347,488 | | 100.0 | % |
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| Schedule of the effect of tax holiday related to Mainland China operations |
| | | | | | | | | For the Year Ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | | | | (in thousands, except for per share data) | Tax holiday effect | | 294,698 | | 209,494 | | 65,016 | Effect on basic net income per share | | 0.08 | | 0.06 | | 0.02 | Effect on diluted net income per share | | 0.08 | | 0.06 | | 0.02 | Denominator for basic net income per share-weighted average ordinary shares outstanding | | 3,521,380 | | 3,409,773 | | 3,326,150 | Denominator for diluted net income per share-weighted average ordinary shares outstanding | | 3,611,653 | | 3,537,408 | | 3,472,076 |
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| Schedule of tax effects of temporary differences to the deferred income tax assets and liabilities |
| | | | | | | As of December 31, | | | 2024 | | 2025 | | | RMB | | RMB | | | | (in thousands) | Deferred tax assets | | | | | Net operating loss carrying forward | | 3,412,316 | | 3,611,291 | Asset impairment | | 916,690 | | 914,823 | Deferred rental cost | | 19,280 | | 30,187 | Unrealized profits | | 252,024 | | 217,117 | Accrual expense | | 463,523 | | 352,620 | Others | | 89,840 | | 136,640 | Less: Valuation Allowance | | (4,127,927) | | (3,924,466) | Deferred tax assets, net of valuation allowance | | 1,025,746 | | 1,338,212 | | | | | | Deferred tax liabilities | | | | | Fair value change of certain investments | | (69,263) | | (67,246) | Intangible assets | | (213,183) | | (172,891) | Deferred revenue | | (55,870) | | (157,689) | Total deferred tax liabilities | | (338,316) | | (397,826) |
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| Schedule of movements of the valuation allowance |
| | | | | | | | | For the Year Ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | | | | (in thousands) | Balance at the beginning of the year | | (3,310,975) | | (3,385,876) | | (4,127,927) | Remeasurement due to application of preferential tax rate | | (17,011) | | (1,839) | | — | Additions | | (794,643) | | (1,280,549) | | (687,555) | Reversals | | 687,180 | | 282,244 | | 549,598 | Write-offs | | 49,573 | | 258,093 | | 341,418 | Balance at the end of the year | | (3,385,876) | | (4,127,927) | | (3,924,466) |
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