Taxation (Tables)
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12 Months Ended |
Dec. 31, 2025 |
|---|
| 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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33,130 |
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47,693 |
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22,047 |
|
(Loss)/income from non-Chinese mainland operations |
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(1,480 |
) |
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3,845 |
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3,276 |
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Total income before tax |
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31,650 |
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51,538 |
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25,323 |
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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, 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 |
% |
Tax effect of preferential tax rates and tax holiday |
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(7.6 |
)% |
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(4.2 |
)% |
Tax effect of tax-exempt entities |
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3.3 |
% |
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(0.6 |
)% |
Effect on tax rates in different tax jurisdiction |
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(0.9 |
)% |
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(0.5 |
)% |
Tax effect of non-deductible expenses |
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0.1 |
% |
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0.6 |
% |
Tax effect of non-taxable income |
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(0.5 |
)% |
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(0.3 |
)% |
Tax effect of Super Deduction and others |
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(9.6 |
)% |
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|
(4.0 |
)% |
Changes in valuation allowance |
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9.1 |
% |
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|
(7.3 |
)% |
Effect on withholding income tax |
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7.6 |
% |
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4.6 |
% |
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26.5 |
% |
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13.3 |
% |
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| Upon adoption of ASU 2023-09, as described in Note 2, reconciliation of difference between the PRC statutory income tax rate and the Group’s effective income tax rate for the year ended December 31, 2025 is as follows:
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For the year ended December 31, |
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| Chinese mainland statutory income tax |
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|
6,331 |
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|
25.0 |
% |
| Other jurisdictions’ tax effects |
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| Hong Kong |
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(840 |
) |
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(3.3 |
)% |
| Effect on tax rates in different tax jurisdictions |
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(369 |
) |
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(1.5 |
) % |
| Non-taxable or non-deductible items |
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|
(313 |
) |
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(1.2 |
)% |
| Others |
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(158 |
) |
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(0.6 |
)% |
| Cayman |
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(449 |
) |
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(1.8 |
)% |
| Other jurisdictions |
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|
762 |
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3.0 |
% |
| Effect of changes in tax laws or rates enacted in the current period |
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— |
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0.0 |
% |
| Effect of cross-border tax laws |
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Withholding tax on undistributed dividends
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|
1,056 |
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|
4.2 |
% |
| Others |
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(2 |
) |
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(0.0 |
)% |
| Tax credits |
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|
— |
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0.0 |
% |
| Changes in valuation allowance |
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1,348 |
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5.3 |
% |
| Non-taxable or non-deductible items |
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| Share of results of equity investees |
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(1,735 |
) |
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(6.9 |
)% |
| Others |
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|
791 |
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3.2 |
% |
| Changes in unrecognized tax benefits |
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— |
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0.0 |
% |
| Preferential tax rates and tax holiday |
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(2,716 |
) |
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(10.7 |
)% |
| Super Deduction |
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(2,267 |
) |
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(9.0 |
)% |
| Other adjustments |
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(98 |
) |
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(0.4 |
)% |
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| Effective tax rates |
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2,181 |
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8.6 |
% |
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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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2,397 |
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2,152 |
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2,716 |
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| Effect of tax holiday on basic net income per share (RMB) |
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0.76 |
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0.72 |
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0.95 |
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| Effect of tax holiday on diluted net income per share (RMB) |
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0.76 |
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0.70 |
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0.91 |
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| Schedule of deferred tax assets and deferred tax liabilities |
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Deferred tax assets and deferred tax liabilities |
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| Deferred tax assets |
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| - Net operating loss carry forwards and others |
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13,185 |
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17,303 |
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| - Deferred revenues |
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|
357 |
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374 |
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| - Inventory valuation allowance |
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1,022 |
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1,197 |
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| - Allowance for doubtful accounts |
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1,118 |
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1,202 |
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| - Unrealized fair value losses for certain investments |
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|
92 |
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|
51 |
|
| Less: valuation allowance |
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(13,315 |
) |
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(14,890 |
) |
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| Net deferred tax assets |
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|
2,459 |
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5,237 |
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| Deferred tax liabilities |
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- Long-lived assets arisen from business combinations and asset acquisitions |
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|
5,982 |
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6,065 |
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| - Withholding tax on undistributed earnings |
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|
2,570 |
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1,244 |
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| - Accelerated tax depreciation and others |
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946 |
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710 |
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| Total deferred tax liabilities |
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|
9,498 |
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|
8,019 |
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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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| |
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| Balance at beginning 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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| Additions |
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|
6,630 |
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1,680 |
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9,568 |
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| Reversals |
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(3,849 |
) |
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(5,422 |
) |
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(7,993 |
) |
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| Balance at end of the year |
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|
17,057 |
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|
13,315 |
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14,890 |
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| Schedule of Components of Income Tax Expense (Benefit) |
Income tax benefits/(expenses) consist of:
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For the year ended December 31, |
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|
Current income tax expenses |
|
|
(7,524 |
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|
(8,022 |
) |
|
|
(6,923 |
) |
Deferred tax (expenses)/benefits |
|
|
(869 |
) |
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|
1,144 |
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|
4,742 |
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Total income tax expenses |
|
|
(8,393 |
) |
|
|
(6,878 |
) |
|
|
(2,181 |
) |
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