Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2024 |
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| Income Tax Disclosure [Abstract] |
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| Income Before Income Taxes for Cayman and Non-Cayman Entities |
The income before taxes for Cayman and Non-Cayman entities is as follows:
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| Cayman |
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(39,449 |
) |
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(17,082 |
) |
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(5,305 |
) |
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252,027 |
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78,130 |
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112,714 |
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| Income before taxes |
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212,578 |
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61,048 |
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107,409 |
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| Components of Income Tax Expense |
The components of income tax provision (benefit) were as follows:
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| Current |
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42,594 |
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7,747 |
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18,582 |
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| Deferred |
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(2,526 |
) |
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428 |
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(422 |
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| Income tax expense |
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40,068 |
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8,175 |
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18,160 |
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| Effective tax rate |
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18.8 |
% |
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13.4 |
% |
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16.9 |
% |
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| Reconciliation of Income Tax Expense on Pretax Income at Statutory Rate and Income Tax Expense |
A reconciliation of its income tax expense at the statutory rate and provision for income tax is shown below:
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| Tax expense at Cayman statutory rate |
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— |
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— |
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— |
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| Differences between Cayman and other statutory tax rates |
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38,696 |
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9,979 |
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16,107 |
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| Permanent differences |
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(3,377 |
) |
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206 |
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365 |
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| Temporary differences |
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(1,091 |
) |
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(1,614 |
) |
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(2,703 |
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| Alternative minimum tax |
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1 |
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1 |
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1 |
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| Income tax on undistributed earnings |
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1,874 |
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— |
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193 |
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| Net changes in income tax credit |
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(38 |
) |
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(205 |
) |
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(101 |
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| Net changes in valuation allowance of deferred income tax assets |
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(302 |
) |
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3,260 |
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5,014 |
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| Net operating loss carryforwards |
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1,668 |
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(1,805 |
) |
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497 |
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| Liabilities related to unrealized tax benefits |
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11,036 |
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5,482 |
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(42 |
) |
| Adjustment of prior years’ taxes and others |
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(8,399 |
) |
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(7,129 |
) |
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(1,171 |
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| Income tax expense |
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40,068 |
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8,175 |
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18,160 |
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| Deferred Income Tax Assets (Liabilities) |
Significant components of our deferred tax assets (liabilities) at the end of each period are as follows:
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| Stock-based compensation |
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1,430 |
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1,520 |
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| Allowance for sales return |
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392 |
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1,024 |
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| Inventory reserve |
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2,983 |
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3,122 |
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| Foreign currency translation |
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(35 |
) |
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(126 |
) |
| Property and equipment |
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(1,076 |
) |
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(628 |
) |
| Investment tax credits |
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3,495 |
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3,596 |
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| Net operating loss carryforwards |
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21,332 |
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21,607 |
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| Others |
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3,055 |
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6,563 |
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| Valuation allowance |
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(23,120 |
) |
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(27,800 |
) |
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| Net deferred tax assets |
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8,456 |
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8,878 |
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| Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows:
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| Balance, beginning of year |
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26,317 |
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37,105 |
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43,764 |
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| Increases in tax positions taken in current year |
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13,705 |
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16,054 |
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4,376 |
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| Decrease in tax position taken in prior year primarily related to the resolution of tax audit |
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(2,917 |
) |
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(9,395 |
) |
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(4,556 |
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| Balance, end of year |
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37,105 |
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43,764 |
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43,584 |
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| Summary of Major Jurisdictions and Tax Year Subject to Examination by Tax Authorities |
The Company files income tax returns in the U.S. and foreign jurisdictions. The following table summarizes the Company’s major jurisdictions and tax years that remain subject to examination by tax authorities as of December 31, 2024:
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| China |
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2021 and onward |
| Hong Kong |
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2021 and onward |
| Taiwan |
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2019 and onward |
| United States |
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2019 onward |
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