INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2025 |
| INCOME TAXES |
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| Schedule of components of (loss)/income before income tax |
| | | | | | | | | For the year ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | | | (In thousands) | Income from Chinese mainland operations | | 809,506 | | 1,616,998 | | 3,183,315 | Income from non-Chinese mainland operations | | 412,283 | | 215,662 | | 16,897 | Total | | 1,221,789 | | 1,832,660 | | 3,200,212 |
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| Schedule of components of income tax expenses |
| | | | | | | | | For the year ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | | | (In thousands) | Current income tax expenses | | 108,488 | | 257,096 | | 530,677 | Deferred income tax expenses/(benefit) | | 14,083 | | 8,538 | | (20,932) | Total | | 122,571 | | 265,634 | | 509,745 |
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| Schedule of reconciliation between the statutory income tax rate and effective tax rate |
| | | | | | | | For the year ended December 31, | | | | 2023 | | 2024 | | PRC statutory income tax rate | | 25.00 | % | 25.00 | % | Effect of tax-exempt entities and tax rates in different jurisdictions | | (5.72) | % | (1.74) | % | Effect of PRC preferential tax rates | | (7.72) | % | (8.67) | % | Effect of permanent difference | | 0.36 | % | 1.77 | % | Changes in valuation allowance | | (2.40) | % | (3.33) | % | Others | | 0.51 | % | 1.46 | % | Effective tax rate | | 10.03 | % | 14.49 | % |
| | | | | | | | For the year ended December 31, 2025 | | | | Amount | | Percent | | | | RMB in thousands | | | | Income tax expenses at PRC statutory income tax rate | | 800,053 | | 25.00 | % | Foreign tax effects | | 72,024 | | 2.25 | % | Effect of nontaxable or nondeductible items | | | | | | Share-based compensation expenses | | 120,165 | | 3.75 | % | Others | | 4,465 | | 0.14 | % | Changes in valuation allowance | | (92,279) | | (2.88) | % | Other adjustments | | | | | | Effect of PRC preferential tax rates | | (327,268) | | (10.23) | % | Super R&D Deduction | | (75,168) | | (2.35) | % | Others | | 7,753 | | 0.25 | % | Income tax expenses | | 509,745 | | 15.93 | % |
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| Schedule of deferred tax assets and liabilities |
| | | | | | | As of December 31, | | | 2024 | | 2025 | | | RMB | | RMB | | | (In thousands) | Deferred tax assets | | | | | Net operating loss carry-forwards | | 137,310 | | 167,973 | Deductible advertising expenses | | 144,192 | | 72,496 | Others | | 194 | | 5,810 | Total deferred tax assets | | 281,696 | | 246,279 | Less: valuation allowance | | (281,696) | | (222,038) | Deferred tax assets, net of valuation allowance | | — | | 24,241 | Deferred tax liabilities | | | | | Accelerated tax depreciation | | (25,688) | | (15,190) | Unrealized gains from investments | | (7,613) | | (32,610) | Others | | (1,150) | | (9,962) | Total deferred tax liabilities | | (34,451) | | (57,762) | Deferred tax liabilities, net of deferred tax assets | | (34,451) | | (33,521) |
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| Schedule of movements of valuation allowance |
| | | | | | | | | For the year ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | | | (In thousands) | Balance at beginning of the year | | 354,306 | | 325,027 | | 281,696 | Change of valuation allowance | | (29,279) | | (43,331) | | (59,658) | Balance at end of the year | | 325,027 | | 281,696 | | 222,038 |
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