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Taxation | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Taxation |
14. | TAXATION
Enterprise income tax Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. Hong Kong The subsidiaries incorporated in Hong Kong are subject to income tax at the rate of 16.5% on the estimated assessable profits arising in Hong Kong. For the periods presented, the Group did not make any provisions for Hong Kong profit tax as the Group did not generate any assessable profits arising in Hong Kong at the end of each reporting period. Under the Hong Kong tax law, the subsidiaries in Hong Kong are exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. China The Group’s PRC entities are subject to the statutory income tax rate of 25%, in accordance with the Enterprise Income Tax law (the “EIT Law”), which was effective since January 1, 2008. Certain subsidiaries of the Group being qualified as a High New Technology Enterprise (‘‘HNTE’’) are entitled to the preferential income tax rate of 15%. Dividends, interests, rent or royalties payable by the Group’s PRC entities to non-PRC resident enterprises, and proceeds from any such non-resident enterprise investor’s disposition of assets (after deducting the net value of such assets) shall be subject to 10% EIT, namely withholding tax, unless the respective non-PRC resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with China that provides for a reduced withholding tax rate or an exemption from withholding tax. Loss before income taxes consists of:
|  | For the year ended December 31 |
|  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
PRC |  |  | (1,167,367 | ) |  |  | (1,095,015 | ) |  |  | (1,646,607 | ) |  |  | (258,388 | )
Non-PRC |  |  | 65,171 |  |  |  | 147,721 |  |  |  | 70,592 |  |  |  | 11,077 |
|  |  | (1,102,196 | ) |  |  | (947,294 | ) |  |  | (1,576,015 | ) |  |  | (247,311 | )
The current and deferred components of income tax expense appearing in the consolidated statements of comprehensive loss are as follows:
|  | For the year ended December 31 |
|  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
Current income tax expense |  |  | 9,180 |  |  |  | 15,081 |  |  |  | 27,593 |  |  |  | 4,330 |
Deferred income tax benefit |  |  | (177 | ) |  |  | (177 | ) |  |  | (11,852 | ) |  |  | (1,860 | )
|  |  | 9,003 |  |  |  | 14,904 |  |  |  | 15,741 |  |  |  | 2,470 |
The reconciliation of income tax expense computed using the PRC statutory tax rate to the actual income tax expense is as follows:
|  | For the year ended December 31 |
|  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
Loss before income tax |  |  | (1,102,196 | ) |  |  | (947,294 | ) |  |  | (1,576,015 | ) |  |  | (247,311 | )
Income tax computed at the PRC statutory tax rate of 25% |  |  | (275,549 | ) |  |  | (236,824 | ) |  |  | (394,004 | ) |  |  | (61,828 | )
Effect of tax holiday and preferential tax rates |  |  | 11,493 |  |  |  | (44,121 | ) |  |  | 7,083 |  |  |  | 1,111 |
Effect of different tax rates in different jurisdictions |  |  | (11,626 | ) |  |  | 10,580 |  |  |  | (1,681 | ) |  |  | (264 | )
Other non-taxable income |  |  | (21,557 | ) |  |  | (35,454 | ) |  |  | (24,999 | ) |  |  | (3,923 | )
Non-deductible expenses |  |  | 64,095 |  |  |  | 14,060 |  |  |  | 36,719 |  |  |  | 5,762 |
Share-based compensation costs |  |  | 30,320 |  |  |  | 82,528 |  |  |  | 108,588 |  |  |  | 17,040 |
Research and development super deduction |  |  | (94,401 | ) |  |  | (113,388 | ) |  |  | (146,639 | ) |  |  | (23,011 | )
Withholding tax and others |  |  | 9,180 |  |  |  | 11,581 |  |  |  | 9,552 |  |  |  | 1,499 |
Change in valuation allowance |  |  | 259,031 |  |  |  | 399,756 |  |  |  | 434,056 |  |  |  | 68,113 |
True-up adjustments in respect of prior year’s annual tax filing |  |  | — |  |  |  | (83,342 | ) |  |  | (3,474 | ) |  |  | (545 | )
Tax rate change on deferred items |  |  | 38,017 |  |  |  | 9,528 |  |  |  | (9,460 | ) |  |  | (1,484 | )
Income tax expense |  |  | 9,003 |  |  |  | 14,904 |  |  |  | 15,741 |  |  |  | 2,470 |
Deferred tax The significant components of the Group’s deferred tax assets and liabilities are as follows:
|  | As at December 31 |
|  | 2020 |  |  | 2021 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | US$ |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Tax loss carried forward |  |  | 1,454,702 |  |  |  | 1,841,192 |  |  |  | 288,923 |
Accrued expenses |  |  | 56,111 |  |  |  | 235,737 |  |  |  | 36,992 |
Depreciation |  |  | 4,990 |  |  |  | 7,082 |  |  |  | 1,111 |
Allowance for doubtful accounts |  |  | 3,156 |  |  |  | 53,436 |  |  |  | 8,385 |
Government grant |  |  | 6,175 |  |  |  | 4,266 |  |  |  | 669 |
Operating lease liabilities |  |  | 56,706 |  |  |  | 63,781 |  |  |  | 10,009 |
Accrued interest |  |  | 66,609 |  |  |  | 170,337 |  |  |  | 26,730 |
Others |  |  | — |  |  |  | 2,737 |  |  |  | 430 |
Less: valuation allowance |  |  | (1,401,416 | ) |  |  | (1,881,873 | ) |  |  | (295,307 | )
|  |  | 247,033 |  |  |  | 496,695 |  |  |  | 77,942 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  |  | 54,658 |  |  |  | 57,300 |  |  |  | 8,992 |
One-time deduction for fixed asset purchases |  |  | 191,107 |  |  |  | 337,564 |  |  |  | 52,970 |
Long-lived assets arising from business acquisitions |  |  | 29 |  |  |  | 277,267 |  |  |  | 43,509 |
Others |  |  | 1,268 |  |  |  | 22,655 |  |  |  | 3,555 |
|  |  | 247,062 |  |  |  | 694,786 |  |  |  | 109,026 |
The Group operates through several subsidiaries, VIEs and subsidiaries of VIEs and the valuation allowance is considered for each subsidiary, VIE and subsidiary of VIE on an individual basis. As of December 31, 2020 and 2021, the Group’s total deferred tax assets before valuation allowances were RMB1,648,449 and RMB2,378,568 (US$373,249), respectively. As of December 31, 2020 and 2021, the Group recorded valuation allowances of RMB1,401,416 and RMB1,881,873 (US$295,307), respectively, on its deferred tax assets that are sufficient to reduce the deferred tax assets to the amounts that are more-likely-than-not to be realized. In making such determination, the Group evaluates a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2021, the Group had net losses of approximately RMB7,485,149 (US$1,174,583) mainly deriving from entities in the PRC and Hong Kong. The tax losses in the PRC can be carried forward for five years to offset future taxable profit and the period was extended to ten years for entities that qualify as HNTE. The tax losses of entities in the PRC will expire between 2022 and 2026 and the tax losses of entities in the PRC that qualify as HNTE will expire between 2022 and 2031, if not utilized. The tax losses in Hong Kong can be carried forward without an expiration date. Unrecognized tax benefits As of December 31, 2020 and 2021, the Group had unrecognized tax benefits of RMB 12,613 and RMB 59,049 (US$ 9,266 ) , of which RMB 12,613 and RMB 43,095 (US$ 6,762 ), respectively, were deducted against the deferred tax assets on tax losses carr ied forward, and the remaining amounts of RMB nil and RMB 15,954 (US$ 2,504 ), respectively , were presented in other liabilities in the consolidated balance sheets. The Group’s unrecognized tax benefits for the years ended December 31, 2020 and 2021 were primarily related to the tax-deduction of accrued interest expenses and profit before tax differences. It is possible that the amount of unrecognized benefits will change in the next 12 months; however, an estimate of the range of the possible change cannot be made at this moment. As of December 31, 2020 and 2021, there are RMB nil and RMB 15,954 (US$ 2,504 ) of unrecognized tax benefits that if recognized would impact the annual effective tax rate, respectively. A reconciliation of the beginning and ending balances of unrecognized tax benefit is as follows:
|  | 2020 |  |  | 2021 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | US$ |
Balance at beginning of the year |  |  | — |  |  |  | 12,613 |  |  |  | 1,979 |
Additions from the business acquisitions |  |  | — |  |  |  | 19,551 |  |  |  | 3,068 |
Additions based on tax positions related to current year |  |  | 12,613 |  |  |  | 26,885 |  |  |  | 4,219 |
Balance at end of the year |  |  | 12,613 |  |  |  | 59,049 |  |  |  | 9,266 |
For the periods presented, the Group did no t record any penalties related to unrecognized tax benefits. In general, the tax authorities have three to five years to conduct examinations of the tax filings of the Group’s subsidiaries. Accordingly, the subsidiaries’ tax years of 2018 through 2021 remain open to examination by the respective tax authorities.

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