INCOME TAX EXPENSES (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
| Income Tax Disclosure [Abstract] |
|
| SCHEDULE OF CURRENT AND DEFERRED COMPONENTS |
The
current and deferred components of income taxes appearing in the consolidated statements of comprehensive (loss) income are as follows:
SCHEDULE
OF CURRENT AND DEFERRED COMPONENTS
| | |
2023 | | |
2024 | | |
2025 | |
| | |
Year ended December 31, | |
| | |
2023 | | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | | |
RMB | |
| Current tax expenses | |
| 11,544 | | |
| 21,686 | | |
| 11,295 | |
| Deferred tax expenses (benefit) | |
| 2,044 | | |
| (4,773 | ) | |
| 1,363 | |
| Income tax expenses | |
| 13,588 | | |
| 16,913 | | |
| 12,658 | |
|
| SCHEDULE OF RECONCILIATION INCOME TAX EXPENSES |
Reconciliation
between the income tax expenses computed by applying the PRC enterprise tax rate to income before income taxes and actual provision were
as follows:
SCHEDULE
OF RECONCILIATION INCOME TAX EXPENSES
| | |
2023 | |
|
|
|
| |
2024 | |
|
|
|
| |
2025 |
|
|
|
|
|
| | |
Year ended December 31, |
|
| | |
2023 |
| |
2024 |
| |
2025 |
|
| | |
RMB | |
|
|
% |
| |
RMB | |
|
|
% |
| |
RMB |
|
|
|
% |
|
| Income from operations in the PRC | |
| 126,692 | |
|
|
|
| |
| 177,311 | |
|
|
|
| |
| 157,704 |
|
|
|
|
|
| Income (loss) from overseas entities | |
| 3,371 | |
|
|
|
| |
| (15,713 | ) |
|
|
|
| |
| (3,117 |
) |
|
|
|
|
| Tax expense from overseas entities at PRC enterprise income tax rate | |
| 32,515 | |
|
|
25.0 |
% | |
| 40,400 | |
|
|
25.0 |
% | |
| 38,647 |
|
|
|
25.0 |
% |
| Effect of income tax in jurisdictions other than the PRC | |
| (2,625 | ) |
|
|
(2.0 |
)% | |
| (311 | ) |
|
|
(0.2 |
)% | |
| (3,759 |
) |
|
|
(2.4 |
)% |
| | |
| | |
|
|
|
| |
| | |
|
|
|
| |
| |
|
|
|
|
|
| Nontaxable or nondeductible items | |
| | |
|
|
|
| |
| | |
|
|
|
| |
| |
|
|
|
|
|
| Income tax on tax holiday(1) | |
| (14,952 | ) |
|
|
(11.5 |
)% | |
| (20,298 | ) |
|
|
(12.6 |
)% | |
| (17,545 |
) |
|
|
(11.3 |
)% |
| Tax effect of permanent differences(2) | |
| (12,860 | ) |
|
|
(9.9 |
)% | |
| (13,572 | ) |
|
|
(8.4 |
)% | |
| (16,382 |
) |
|
|
(10.6 |
)% |
| | |
| | |
|
|
|
| |
| | |
|
|
|
| |
| |
|
|
|
|
|
| Change in valuation allowance(3) | |
| 11,494 | |
|
|
8.8 |
% | |
| 8,227 | |
|
|
5.1 |
% | |
| 9,585 |
|
|
|
6.2 |
% |
| Effect of share-based compensation | |
| 16 | |
|
|
0.0 |
% | |
| 2,467 | |
|
|
1.5 |
% | |
| 2,112 |
|
|
|
1.4 |
% |
| Income tax expenses | |
| 13,588 | |
|
|
10.4 |
% | |
| 16,913 | |
|
|
10.4 |
% | |
| 12,658 |
|
|
|
8.3 |
% |
| (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 end 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, 2023, 2024, and 2025 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 SHARES EFFECT OF TAX |
The
per share effect of the tax holidays were as follows:
SCHEDULE
OF PER SHARES EFFECT OF TAX
| | |
2023 | | |
2024 | | |
2025 | |
| | |
Year ended December 31, | |
| | |
2023 | | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | | |
RMB | |
| Net income per share effect – basic | |
| 0.07 | | |
| 0.10 | | |
| 0.09 | |
| Net income per share effect – diluted | |
| 0.07 | | |
| 0.10 | | |
| 0.08 | |
|
| SCHEDULE OF DEFERRED TAX ASSETS |
The
significant components of the Group’s deferred tax assets were as follows:
SCHEDULE
OF DEFERRED TAX ASSETS
| | |
2024 | | |
2025 | |
| | |
As of December 31, | |
| | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | |
| Accrued expenses and others | |
| 9,363 | | |
| 8,343 | |
| Net operating loss carry forwards | |
| 39,905 | | |
| 49,541 | |
| Inventories write downs | |
| 388 | | |
| 120 | |
| Deferred income | |
| 74 | | |
| 28 | |
| Total deferred tax assets | |
| 49,730 | | |
| 58,032 | |
| Less: valuation allowance | |
| (40,032 | ) | |
| (49,617 | ) |
| Deferred tax assets, net | |
| 9,698 | | |
| 8,415 | |
|
| SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE |
SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE
| | |
2023 | | |
2024 | | |
2025 | |
| | |
Year ended December 31, | |
| | |
2023 | | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | | |
RMB | |
| Balance at beginning of the year | |
| 20,358 | | |
| 31,852 | | |
| 40,032 | |
| Provided | |
| 11,494 | | |
| 8,180 | | |
| 9,585 | |
| Balance at end of the year | |
| 31,852 | | |
| 40,032 | | |
| 49,617 | |
|