v3.26.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Tax

The Company's (loss) income before income tax consists of:

 

 

 

 

For the year ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

Non-PRC

 

$

76,859

 

 

$

146,723

 

 

$

138,908

 

 

PRC

 

 

(338,961

)

 

 

(103,886

)

 

 

(223,395

)

 

Total

 

$

(262,102

)

 

$

42,837

 

 

$

(84,487

)

Schedule of Company's Income Taxes

The Company's income taxes consists of:

 

 

 

 

For the year ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

Current income tax expense

 

$

(26,645

)

 

$

(58,587

)

 

$

(53,780

)

 

Deferred tax benefit

 

 

89,911

 

 

 

56,406

 

 

 

17,409

 

 

Income tax benefit (expense)

 

$

63,266

 

 

$

(2,181

)

 

$

(36,371

)

Schedule of Income Before Income Taxes

The following is a reconciliation of the Company's total income tax benefit (expense) to the amount computed by applying the PRC statutory income tax rate of 25% to its (loss) income before income taxes for the years ended December 31, 2025, 2024 and 2023:

 

 

 

 

For the year ended December 31,

 

 

 

 

2025

 

 

 

 

US$

 

 

Percent

 

 

Income tax benefit at the PRC statutory rate

 

 

65,526

 

 

 

-25.0

%

 

Foreign Tax Effects

 

 

 

 

 

 

 

    Hong Kong

 

 

 

 

 

 

 

              Statutory tax rate difference between PRC and other jurisdiction

 

 

7,344

 

 

 

-2.8

%

 

              Non-taxable income

 

 

46,903

 

 

 

-17.9

%

 

              Non-deductible expense

 

 

(4,494

)

 

 

1.7

%

 

              Others

 

 

(484

)

 

 

0.2

%

 

     Other foreign jurisdictions

 

 

(3,056

)

 

 

1.2

%

 

Effect of changes in tax laws or rates enacted in the current period

 

 

 

 

 

0.0

%

 

Effect of cross-border tax laws

 

 

 

 

 

0.0

%

 

Tax credits

 

 

 

 

 

0.0

%

 

Changes in valuation allowances

 

 

(78,026

)

 

 

29.8

%

 

Nontaxable or nondeductible items

 

 

 

 

 

 

 

              Non-taxable income

 

 

 

 

 

0.0

%

 

              Non-deductible expense

 

 

 

 

 

0.0

%

 

                     Non-deductible goodwill impairment

 

 

(3,922

)

 

 

1.5

%

 

                     Expired deductible expenses

 

 

(7,850

)

 

 

3.0

%

 

                     Others

 

 

(5,527

)

 

 

2.1

%

 

Changes in unrecognized tax benefits

 

 

 

 

 

0.0

%

 

Effect of different tax rates of subsidiaries in PRC

 

 

(2,267

)

 

 

0.9

%

 

Other adjustments

 

 

 

 

 

 

 

          Super deduction for research and development expenses

 

 

33,193

 

 

 

-12.7

%

 

          Effect of PRC withholding tax

 

 

18,080

 

 

 

-6.9

%

 

          Others

 

 

(2,154

)

 

 

0.8

%

 

Income tax benefit

 

 

63,266

 

 

 

-24.1

%

 

 

 

 

For the year ended December 31,

 

 

 

 

2024

 

 

2023

 

 

Income (loss) from continuing operations before income taxes

 

$

42,837

 

 

$

(84,487

)

 

Income tax benefit (expense) at the PRC statutory rate

 

 

(10,709

)

 

 

21,122

 

 

International tax rate differential

 

 

10,719

 

 

 

10,553

 

 

Super deduction for research and development expenses

 

 

33,505

 

 

 

42,183

 

 

Nontaxable or non-deductible expenses

 

 

7,895

 

 

 

(556

)

 

Effect of preferential tax rate

 

 

3,732

 

 

 

7,010

 

 

Change in valuation allowance

 

 

(68,896

)

 

 

(155,746

)

 

Effect of PRC withholding tax

 

 

15,956

 

 

 

(6,034

)

 

Changes of tax rate

 

 

 

 

 

49,532

 

 

Other adjustments

 

 

5,617

 

 

 

(4,435

)

 

Income tax expense

 

$

(2,181

)

 

$

(36,371

)

 

Effective tax rate

 

 

-5.1

%

 

 

43.0

%

 

Schedule Company's Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the Company's deferred tax assets and liabilities are as follows:

 

 

 

 

For the year ended December 31,

 

 

 

 

2025

 

 

2024

 

 

Inventories

 

 

18,821

 

 

 

16,147

 

 

Accrued expenses, payroll and others

 

 

29,590

 

 

 

77,538

 

 

Deferred government grants

 

 

1,719

 

 

 

387

 

 

Intangible assets amortization

 

 

7,549

 

 

 

9,253

 

 

Fixed assets depreciation and impairment

 

 

43,199

 

 

 

26,711

 

 

Credit loss

 

 

4,560

 

 

 

3,331

 

 

Lease liability

 

 

20,162

 

 

 

30,575

 

 

Net operating losses carried forward

 

 

374,111

 

 

 

257,155

 

 

Others

 

 

3,975

 

 

 

2,496

 

 

Deferred tax assets

 

$

503,686

 

 

$

423,593

 

 

Less: valuation allowance

 

 

409,920

 

 

 

313,303

 

 

Deferred tax asset, net

 

$

93,766

 

 

$

110,290

 

 

Accelerated depreciation of fixed assets

 

 

(2,888

)

 

 

(733

)

 

Right-of-use assets

 

 

(19,979

)

 

 

(30,354

)

 

Tax on capital gains and interest income

 

 

(30,736

)

 

 

(84,774

)

 

Long-lived assets arising from acquisitions

 

 

(13,048

)

 

 

(38,226

)

 

PRC Withholding tax

 

 

(310,663

)

 

 

(328,879

)

 

Deferred tax liability

 

$

(377,314

)

 

$

(482,966

)

 

Net Deferred tax assets

 

$

41,520

 

 

$

37,373

 

 

Net Deferred tax liability

 

$

(325,068

)

 

$

(410,049

)