v3.26.1
Taxation (Tables)
12 Months Ended
Dec. 31, 2025
Taxation  
Schedule of current and deferred portions of income tax expense

For the year ended December 31, 

  ​ ​ ​

2023

  ​ ​ ​

2024

  ​ ​ ​

2025

RMB

RMB

RMB

Current income tax expense

 

269

828

 

4,044

Deferred income tax expense

 

22

24,740

 

97,127

Income tax expense

 

291

25,568

 

101,171

Schedule of reconciliation between the income tax expense computed by applying the Enterprise Income Tax ("EIT") rate to income before income taxes and actual provision

For the year ended December 31, 2025

 

RMB

%

 

  ​ ​ ​

  ​ ​ ​

Income tax expenses at PRC statutory income tax rate-25% (i)

 

352,178

 

25.0

%

Foreign tax effects

 

3,111

 

0.2

%

Nontaxable or nondeductible items:

 

(377,892)

 

(26.8)

%

-Preferential income tax rate

 

(377,941)

 

(26.8)

%

-Additional deduction for research and development expenses

 

(2,240)

 

(0.2)

%

-Share-based payment awards

 

1,004

 

0.1

%

-Others

 

1,285

 

0.1

%

Changes in valuation allowances

 

(6,226)

 

(0.4)

%

Withholding income tax

 

130,000

 

9.2

%

Income tax expense

 

101,171

 

7.2

%

(i)

The PRC statutory income tax rate is used for the reconciliation as the majority of the Group’s operations are based in the PRC.

For the year ended December 31, 

  ​ ​ ​

2023

  ​ ​ ​

2024

RMB

RMB

Income before income tax

 

205,477

 

891,414

Tax expense at EIT tax rate of 25%

51,369

 

222,854

Effect of different tax rates applicable to different subsidiaries of the Group

 

(12,845)

 

(243,520)

Effect of additional deduction for qualified research and development expenses

 

(16,323)

 

(6,075)

Effect on deferred tax assets due to change in tax rates(ii)

 

 

64,030

Non-deductible expenses

 

5,891

 

1,539

Changes in valuation allowance

 

(27,801)

 

(13,260)

Income tax expense

 

291

 

25,568

(ii)

Yuanbao Kechuang was granted Software Enterprise status in 2024, entitling it to income tax exemption for the year ended December 31, 2024. This status is subject to annual review and approval by the relevant authorities. Consequently, the income tax rates for Yuanbao Kechuang for the years ended December 31, 2023, 2024, and 2025 were 15%, 0%, and 0%, respectively. This change in tax rates resulted in an “effect on deferred tax assets due to change in tax rates” for the year ended December 31, 2024.

Schedule of effect on deferred tax assets and deferred tax liabilities due to change in tax rates

  ​ ​ ​

December 31, 2024

  ​ ​ ​

December 31, 2025

RMB

RMB

Deferred tax assets

 

  ​

 

  ​

Advertising expenses (iii)

 

2,707

 

4,337

Accumulated losses carryforward

 

27,654

 

32,052

Operating lease liabilities

 

3,487

 

899

Book/tax basis differences in revenue

 

18,377

 

29,370

Others

 

4,417

 

9,279

Less: valuation allowance

 

(44,087)

 

(38,169)

Deferred tax assets before offset

 

12,555

 

37,768

Offset by deferred tax liabilities

 

(5,619)

 

(4,431)

Net deferred tax assets

 

6,936

 

33,337

Deferred tax liabilities

Accrued interest and fair value change

 

460

 

2,672

Operating lease right-of-use assets

 

3,079

 

1,016

Book/tax basis differences in revenue

 

33,777

 

25,968

Acquired intangible assets

 

14,333

 

14,476

Withholding tax

 

 

130,000

Deferred tax liabilities before offset

 

51,649

 

174,132

Offset by deferred tax assets

 

(5,619)

 

(4,431)

Net deferred tax liabilities

46,030

169,701

(iii)

The pre-tax deduction limitation for advertising expense is 15% of revenue every year. The Group can carryforward any unclaimed advertising expense to the future years and there is no limitation for the use in future years.

Schedule of of valuation allowance

  ​ ​ ​

For the year ended December 31, 

2024

  ​ ​ ​

2025

 

RMB

 

RMB

Balance at the beginning of the year

 

57,347

 

44,087

Additions

 

34,467

 

8,462

Reversals

 

(47,727)

 

(14,380)

Balance at the end of the year

 

44,087

 

38,169