Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of components of income tax expense


		Year Ended December 31,
		2023		2024		2025
		US$		US$		US$
(Loss)/profit before tax
(Loss)/profit from PRC entities		(71,249)		(20,596)		32,088
Profit from overseas entities		14,183		27,738		27,755
Total (loss)/profit before tax		(57,066)		7,142		59,843


		Year Ended December 31,
		2023		2024		2025
		US$		US$		US$
Current income tax expense		3,249		2,145		1,953
Deferred income tax		—		—		—
Total income tax expense		3,249		2,145		1,953

Schedule of reconciliation of differences between statutory tax rate and effective tax rate


	Year Ended December 31, 2025
	Amount	Percent

PRC Statutory income tax rate	14,961	25.0	%
Foreign Tax Effects
Hong Kong
Statutory tax rates in difference between PRC and Hong Kong	(2,497)	(4.2)	%
Permanent book-tax differences	(6,840)	(11.4)	%
Change in valuation allowance	1,532	2.6	%
Other	457	0.8	%
Other foreign jurisdictions	406	0.7	%
Tax Credits
Effect of preferential tax rate for qualified HNTE entities (1)	(2,936)	(4.9)	%
Additional deduction for research and development expenditures	(4,469)	(7.5)	%
Non-taxable or non-deductible Items
Share-based compensation	866	1.4	%
Permanent book-tax differences	9,861	16.5	%
Change in Valuation Allowance (2)	(11,331)	(18.9)	%
PRC withholding income tax on interest income and investment income	1,943	3.2	%
Effective Tax Rates	1,953	3.3	%


		Year Ended December 31,
		2023		2024
PRC Statutory income tax rate		25.0	%	25.0	%
Effect of tax rates in different tax jurisdiction		(2.5)	%	(35.1)	%
Effect of preferential tax rate for qualified HNTE entities (1)		(5.4)	%	(8.6)	%
Additional deduction for research and development expenditures		9.3	%	(62.8)	%
Share-based compensation		(19.7)	%	141.2	%
Permanent book-tax differences		2.0	%	(13.3)	%
Change in valuation allowance		(14.4)	%	(16.4)	%
Effective Tax Rates		(5.7)	%	30.0	%

(1)

The effect of the preferential income tax rate that the WFOE is entitled to enjoy as a qualified HNTE is 15%.

(2)

Valuation allowance for the years ended December 31, 2023, 2024 and 2025 are related to the deferred tax assets of certain group entities which reported losses. The Group believes that it is more likely than not that the deferred tax assets of these entities will not be utilized. Therefore, valuation allowance has been provided.

Schedule of income tax disclosures


		US$

Chinese mainland		2,517
Non-Chinese mainland		17
Total cash paid for income taxes, net of refunds		2,534

Summary of deferred tax assets and deferred tax liabilities



		As of December 31,
		2023		2024		2025
		US$		US$		US$
Deferred tax assets
Net accumulated losses carry-forwards		107,080		104,089		95,110
Credit-related impairment of long-term investments		1,421		1,472		1,482
Receivables allowances		279		795		696
Inventory write-downs		531		845		547
Other deductible temporary difference		106		1,046		840
Less: valuation allowance		(109,417)		(108,247)		(98,675)
Total deferred tax assets		—		—		—

Summary of tax losses carry forwarded for future years


As of December 31, 2025		US$
2026		101,317
2027		42,159
2028		35,464
2029		91,815
2030		55,663
2031		34,073
2032		60,506
2033		10,896
Total tax losses carry forwards		431,893

Schedule of movement of valuation allowance


		As of December 31,
		2023		2024		2025
		US$		US$		US$
Balance at beginning of the year		101,177		109,417		108,247
Changes of valuation allowance(1)		8,240		(1,170)		(9,572)
Balance at end of the year		109,417		108,247		98,675

(1)

Valuation allowances have been 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 evaluates a variety of factors including the Group’s entities’ operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2024 and 2025, full valuation allowances on deferred tax assets were provided because it was more likely than not that the Group will not be able to utilize tax loss carry forwards and other temporary tax difference generated by its unprofitable subsidiaries.