Taxation (Tables)
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12 Months Ended |
Dec. 31, 2024 |
|---|
| Taxation |
|
| Schedule of components of income/(loss) before tax |
The components of income/(loss) before tax are as follows:
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For the year ended December 31, |
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Income from Chinese mainland operations |
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16,800 |
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33,130 |
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47,693 |
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Income/(loss) from non-Chinese mainland operations |
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(2,933 |
) |
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(1,480 |
) |
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3,845 |
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13,867 |
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31,650 |
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51,538 |
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Income tax benefits/(expenses) applicable to Chinese mainland operations |
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Current income tax expenses |
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(4,418 |
) |
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(6,265 |
) |
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(6,187 |
) |
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732 |
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410 |
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1,805 |
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Subtotal income tax expenses applicable to Chinese mainland operations |
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(3,686 |
) |
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(5,855 |
) |
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(4,382 |
) |
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Income tax expenses applicable to non-Chinese mainland operations |
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Current income tax expenses |
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(307 |
) |
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(1,259 |
) |
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(1,835 |
) |
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(183 |
) |
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(1,279 |
) |
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(661 |
) |
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Subtotal income tax expenses applicable to non-Chinese mainland operations |
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(490 |
) |
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(2,538 |
) |
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(2,496 |
) |
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Total income tax expenses |
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(4,176 |
) |
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(8,393 |
) |
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(6,878 |
) |
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| Schedule of reconciliation of the differences between statutory income tax rate and the effective income tax rate |
Reconciliation of difference between the PRC statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2022, 2023 and 2024 is as follows:
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For the year ended December 31, |
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Statutory income tax rate |
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25.0 |
% |
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25.0 |
% |
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25.0 |
% |
Tax effect of preferential tax rates and tax holiday |
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(19.3 |
)% |
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(7.6 |
)% |
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(4.2 |
)% |
Tax effect of tax-exempt entities |
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12.1 |
% |
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3.3 |
% |
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(0.6 |
)% |
Effect on tax rates in different tax jurisdiction |
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(3.2 |
)% |
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(0.9 |
)% |
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(0.5 |
)% |
Tax effect of non-deductible expenses |
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|
4.0 |
% |
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0.1 |
% |
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0.6 |
% |
Tax effect of non-taxable income |
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|
(0.4 |
)% |
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|
(0.5 |
)% |
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(0.3 |
)% |
Tax effect of Super Deduction and others |
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(19.0 |
)% |
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|
(9.6 |
)% |
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(4.0 |
)% |
Changes in valuation allowance |
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28.3 |
% |
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9.1 |
% |
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(7.3 |
)% |
Effect on withholding income tax |
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2.6 |
% |
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7.6 |
% |
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4.6 |
% |
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30.1 |
% |
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26.5 |
% |
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13.3 |
% |
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| Summary of income tax holiday |
The following table sets forth the effect of tax holiday:
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For the year ended December 31, |
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Tax holiday effect (RMB in millions) |
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2,677 |
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2,397 |
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2,152 |
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Effect of tax holiday on basic net income per share (RMB) |
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0.86 |
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0.76 |
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0.72 |
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Effect of tax holiday on diluted net income per share (RMB) |
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0.84 |
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0.76 |
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|
0.70 |
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| Schedule of deferred tax assets and deferred tax liabilities |
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- Net operating loss carry forwards and others |
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15,909 |
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13,185 |
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464 |
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|
357 |
|
- Inventory valuation allowance |
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1,092 |
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1,022 |
|
- Allowance for doubtful accounts |
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1,098 |
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1,118 |
|
- Unrealized fair value losses for certain investments |
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238 |
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|
92 |
|
Less: valuation allowance |
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(17,057 |
) |
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(13,315 |
) |
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1,744 |
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2,459 |
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- Long-lived assets arisen from business combinations and asset acquisitions |
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6,638 |
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5,982 |
|
- Withholding tax on undistributed earnings |
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1,779 |
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2,570 |
|
- Accelerated tax depreciation and others |
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850 |
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946 |
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Total deferred tax liabilities |
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|
9,267 |
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|
9,498 |
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| Schedule of movement of valuation allowance |
The movements of valuation allowance of deferred tax assets are as follows:
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For the year ended December 31, |
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Balance at beginning of the year |
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7,670 |
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14,276 |
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17,057 |
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7,694 |
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6,630 |
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1,680 |
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(1,088 |
) |
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(3,849 |
) |
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(5,422 |
) |
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Balance at end of the year |
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|
14,276 |
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17,057 |
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13,315 |
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