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:
SCHEDULE OF COMPONENTS OF INCOME (LOSS) BEFORE INCOME TAXES
| | |
2023 | | |
2024 | | |
2025 | |
| | |
Year Ended December 31, | |
| | |
2023 | | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | | |
RMB | |
| Hong Kong S.A.R. | |
| 13,021 | | |
| (161,310 | ) | |
| 33,444 | |
| Cayman | |
| (3,310 | ) | |
| 2,148 | | |
| (17,730 | ) |
|
| SCHEDULE OF RECONCILIATION OF PRC STATUTORY INCOME TAX RATE |
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 | % |
| Others - percentage | |
| | | |
| - | |
| Effect of additional deduction on research and development expenses - percentage | |
| | | |
| - | |
| Other
foreign jurisdictions - percentage | |
| | | |
| - | |
| 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 |
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:
SCHEDULE
OF CHANGES IN VALUATION ALLOWANCE
| | |
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 | |
|