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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of income before income taxes

​

​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​		2021			2022			2023
​	​	(In US$ thousands, except percentage)
Loss from non-China operations	​	$	(232,830)	​	$	(422,860)	​	$	(145,244)	​
Income from China operations	​	​	783,548	​	​	550,946	​	​	648,026	​
Total income before income tax expenses	​	$	550,718	​	$	128,086	​	$	502,782	​
Income tax expense (benefits) applicable to non-China operations	​	$	1,355	​	$	(14,176)	​	$	45,441	​
Income tax expense applicable to China operations	​	​	137,486	​	​	44,453	​	​	99,846	​
Total income tax expenses	​	$	138,841	​	$	30,277	​	$	145,287	​
Effective tax rate for China operations	​	​	17.5	%	​	8.1	%	​	15.4	%
Effective tax rate for the Group	​	​	25.2	%	​	23.6	%	​	28.9	%

Schedule of current and deferred portion of income tax expenses

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​		2021			2022			2023
​	​	​	(In US$ thousands)
Current income tax expenses	​	$	151,319		$	55,098		$	121,249
Deferred tax expenses (benefits)	​	​	(12,478)	​	​	(24,821)	​	​	24,038
Income tax expenses	​	$	138,841		$	30,277		$	145,287

Schedule of reconciliation between the statutory EIT rate and the effective tax rate for China operations

​

​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​		2021		2022		2023
PRC Statutory EIT rate(1)		25.0	%	25.0	%	25.0	%
Effect on tax holiday and preferential tax treatment	​	(13.1)	%	(29.7)	%	(9.5)	%
Research and development super-deduction		(7.5)	%	(21.1)	%	(4.4)	%
Non-deductible expenses and non-taxable income and others (2)	​	9.2	%	(30.1)	%	(3.5)	%
Change in valuation allowance	​	0.7	%	8.2	%	5.0	%
Effect of PRC withholding tax	​	—	​	—	​	8.7	%
Tax rate difference from statutory rate in other jurisdictions		10.9	%	71.3	%	7.6	%
Effective tax rate for the Group		25.2	%	23.6	%	28.9	%

(1) The PRC statutory income tax rate is used for the reconciliation as the majority of the Group’s operations are based in the PRC.

(2) The item included the impact of uncertain tax positions recognized in 2021 and the reversal of uncertain tax positions in 2022.

Schedule of significant components of deferred tax assets and liabilities for China operations

​

​	​	​	​	​	​	​
​	​	As of December 31,
​		2022			2023
​	​	(In US$ thousands)
Deferred tax assets:	​	​	​	​	​	​
Net operating loss carry forwards	​	$	18,289	​	$	49,802
Investment-related impairment	​	​	52,363	​	​	50,441
Depreciation, accounts receivable, accrued and other liabilities	​	​	73,557	​	​	72,207
Valuation allowance	​	​	(104,220)	​	​	(129,188)
Net deferred tax assets	​	$	39,989	​	$	43,262
​	​	​	​	​	​	​
Deferred tax liabilities:	​	​	​	​	​	​
Acquired intangible assets	​	$	27,435	​	$	28,528
Depreciation	​	​	1,731	​	​	1,769
Unrealized investment-related gain	​	​	12,414	​	​	12,282
Withholding tax	​	​	—	​	​	23,365
Others	​	​	114	​	​	207
Total deferred tax liabilities	​	$	41,694	​	$	66,151

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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