v3.25.2
INCOME TAX EXPENSES (Tables)
12 Months Ended
Dec. 31, 2024
INCOME TAX EXPENSES  
Schedule of current and deferred components of income taxes

Year ended December 31, 

    

2022

    

2023

    

2024

RMB

RMB

RMB

Current tax expenses

 

3,527

11,544

21,686

Deferred tax (benefit) expenses

 

(3,974)

2,044

(4,773)

Income tax (benefit) expenses

 

(447)

13,588

16,913

Schedule of reconciliation between income tax expenses computed by applying PRC enterprise tax rate before income taxes and actual provision

Year ended December 31, 

2022

2023

2024

    

RMB

    

RMB

    

RMB

Income from operations in the PRC

 

65,920

126,692

177,311

Income (loss) from overseas entities

 

1,731

3,371

(15,713)

Income before income tax

 

67,651

130,063

161,598

Tax expense at PRC enterprise income tax rate of 25%

16,913

32,515

40,400

Income tax on tax holiday(1)

 

(8,062)

(14,952)

(20,298)

Tax effect of permanent differences(2)

 

(19,183)

(12,860)

(13,572)

Change in valuation allowance(3)

 

8,979

11,494

8,227

Effect of share-based compensation

 

2,934

16

2,467

Effect of income tax in jurisdictions other than the PRC

 

(2,028)

(2,625)

(311)

Income tax expenses (benefit)

 

(447)

13,588

16,913

(1)The income tax on tax holidays represents the effect of preferential income tax rate enjoyed by Guangdong Lizi and Yunmi Hulian. Guangdong Lizi applied for HNTE qualification renewal in 2023. It entitled to enjoy the preferential tax rate of 15% as an HNTE for three years starting from 2023 and should apply for HNTE qualification renewal in 2026. Yunmi Hulian applied for the HNTE qualification and obtained approval in December 2021. It is entitled to enjoy the preferential tax rate of 15% as an HNTE for three years starting from 2022, and its HNTE status ceased at the ended of 2023.
(2)The permanent book-tax differences mainly consisted of R&D super deductions.
(3)Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including future taxable income exclusive of reversing temporary differences and tax loss carry forwards. Valuation allowance for the years ended December 31, 2022, 2023, and 2024 were provided for net operating loss carry forward of certain group entities which reported loss because it was more likely than not that such deferred tax assets would not be realized based on the Group’s estimate of their future taxable income. If events occur in the future that allow the Group to realize more of its deferred income tax than the presently recorded amounts, an adjustment to the valuation allowances will result in a decrease in tax expense when those events occur.
Schedule of per share effect of tax holidays

Year ended December 31, 

    

2022

2023

2024

RMB

RMB

RMB

Net income per share effect – basic

 

0.04

0.07

0.10

Net income per share effect – diluted

 

0.04

0.07

0.10

Schedule of significant components of deferred tax assets

As of December 31, 

2023

2024

    

RMB

    

RMB

Accrued expenses and others

 

4,754

9,363

Net operating loss carry forwards

 

30,356

39,905

Inventories write downs

 

1,593

388

Deferred income

 

74

74

Total deferred tax assets

 

36,777

49,730

Less: valuation allowance

 

(31,852)

(40,032)

Deferred tax assets, net

 

4,925

9,698

Schedule of movement of valuation allowance

Year ended December 31, 

2022

2023

2024

    

RMB

    

RMB

    

RMB

Balance at beginning of the year

 

11,379

20,358

31,852

Provided

 

8,979

11,494

8,180

Balance at end of the year

 

20,358

31,852

40,032