v3.26.1
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:

 

   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:

 

   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 )      
Income before income tax   130,063            161,598            154,587          
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:

   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:

 

   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

 

   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