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:
|
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|
|
|
|
|
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|
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|
|
|
|
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|
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:
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|
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|
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|
|
|
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:
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|
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|
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:
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|
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 |
) |
|