v3.26.1
INCOME TAX (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
SCHEDULE OF COMPONENTS OF INCOME (LOSS) BEFORE INCOME TAXES

The components of income (loss) before income taxes are as follows:

 

   2023   2024   2025 
   Year Ended December 31, 
   2023   2024   2025 
   RMB   RMB   RMB 
PRC, excluding Hong Kong S.A.R.   100,919    12,813    94,019 
Hong Kong S.A.R.   13,021    (161,310)   

33,444

 
Cayman   (3,310)   2,148    

(17,730

)
Others   (131)   (62)   

(27

)
Total   110,499    (146,411)   

109,706

 
SCHEDULE OF RECONCILIATION OF PRC STATUTORY INCOME TAX RATE

 

   2023   2024 
   Year Ended December 31,
   2023   2024 
PRC Statutory income tax rate   25.0%   (25.0)%
Increase (decrease) in effective income tax rate resulting from:          
Tax rate differential for non-PRC entities   1.0%   9.9%
Preferential tax rate   (3.2)%   (5.6)%
Research and development expenses bonus deduction   (18.9)%   (12.8)%
Non-deductible share-based compensation expenses       27.3%
Other non-deductible expenses   2.8%   0.6%
Non-taxable income   (3.5)%   (2.9)%
Change in tax rate (1)   95.5%    
Change in valuation allowance   (98.7)%   8.5%
Effective income tax rate   0.0%   0.0%

 

(1)In October 2023, WFOE obtained the HNTE certificate with a valid period from 2023 to 2025 with a preferential tax rate of 15%, as long as it maintains the HNTE qualification and duly conducts relevant CIT filing procedures with the relevant tax authority. Consequently, WFOE applied the 15% rate for computation of current and deferred taxes for the year ended December 31, 2025. Prior to obtaining the HNTE certificate, the WFOE was subject to the statutory income tax rate of 25% for the years ended December 31, 2022.
  
 

The change in tax rate resulted in a reduction in deferred income tax assets before valuation allowance of approximately RMB105 million relating to remeasurement of deferred income tax assets as of January 1, 2023, which was offset by a corresponding decrease in the valuation allowance for the same amount. There were no deferred income tax liabilities as of January 1, 2023. Therefore, the change in tax rate had no impact on the consolidated statements of comprehensive income (loss) for the year ended December 31, 2023.

For the year ended December 31, 2025, a reconciliation between the actual income tax expense and the PRC statutory income tax expense is as follows:

 

    2025    2025 
   Year Ended December 31, 
   2025 
   RMB   Percent 
PRC Statutory income tax rate   27,426    25.0%
Change in valuation allowances   12,266    11.2%
Non-deductible items          
Share-based compensation   11,490    10.5%
Others   2,284    2.1%
Other adjustments          
Change in tax rate   (19,117)   (17.4)%
Effect of additional deduction on research and development expenses   (17,361)   (15.8)%
Tax effect of preferential tax rate   (12,789)   (11.7)%
Foreign tax effects          
Hong Kong S.A.R.          
Statutory tax rate difference between Hong Kong S.A.R. and PRC   (1,095)   (1.0)%
Non-taxable income   (5,140)   (4.7)%
Changes in valuation allowances   (2,126)   (1.9)%
Cayman          
Statutory tax rate difference between Cayman and PRC   4,432    4.0%
Other foreign jurisdictions   7    0.0%
Effective income tax rate   277    0.3%

 
SCHEDULE OF DEFERRED INCOME TAX ASSETS

   2024   2025 
   As of December 31, 
   2024   2025 
   RMB   RMB 
Deferred income tax assets:          
Net operating loss carrying forwards   175,360    183,486 
Deductible advertising expenses   34,558    

25,787

 
Changes in fair value of investments   31,102    

27,975

 
Operating lease liabilities   6,405    

5,652

 
Others   189    

199

 
Total deferred tax assets   247,614    

243,099

 
Less: valuation allowance   (241,209)   

(237,447

)
Total deferred tax assets, net   6,405    

5,652

 
Deferred income tax liabilities:          
Right-of-use assets   6,405    

5,652

 
Total deferred tax liabilities   6,405    

5,652

 
Net deferred income tax assets        
SCHEDULE OF CHANGES IN VALUATION ALLOWANCE

Changes in valuation allowance for the years ended December 31, 2023, 2024 and 2025 are as follows:

 

   2023   2024   2025 
   Year Ended December 31, 
   2023   2024   2025 
   RMB   RMB   RMB 
Balance at the beginning of the year   389,584    274,645    

241,209

 
Additions (Reversals)   (3,541)   12,519    

(8,970

)
Change in tax rate   (105,479)       

19,117

 
Decrease relating to expiration of loss carry forwards   (5,979)   (46,245)   

(13,317

)
Foreign currency translation effect   60    290    

(592

)
Balance at the end of the year   274,645    241,209    237,447