XML 125 R45.htm IDEA: XBRL DOCUMENT v3.23.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Components of Group's Deferred Tax Assets and Liabilities
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Group’s deferred tax assets and liabilities are as follows:
 
     As of December 31,  
     2021      2022  
     RMB      RMB  
Deferred tax assets:
                 
Advertising expense
     360,876        403,600  
Net operating loss carry-forward
     203,839        224,193  
Accrued expenses
     23,983        24,601  
Impairment on long-term investments
     20,742        20,929  
Less: valuation allowance
     (574,591      (638,980
    
 
 
    
 
 
 
Deferred tax assets, net
     34,849        34,343  
    
 
 
    
 
 
 
Deferred tax liabilities:
                 
Intangible assets acquired
     5,956        5,327  
Accelerated tax depreciation
     —          4,999  
Withholding income tax
     207,428        11,685  
    
 
 
    
 
 
 
Deferred tax liabilities, net
     213,384        22,011  
    
 
 
    
 
 
 
Schedule of Reconciliation between Income Tax Expense to Income before Income Taxes and Actual Provision for Income Tax
Reconciliation between income tax expense computed by applying the PRC EIT rate of 25% to income before income taxes and the actual provision for income tax is as follows:
 
     For the year ended December 31,  
     2020     2021     2022  
     RMB     RMB     RMB  
Net income before provision for income tax
     2,898,534       (2,095,064     2,031,217  
PRC statutory tax rate
     25     25     25
Income tax expense (benefit) at statutory tax rate
     724,634       (523,766     507,804  
Permanent differences and Research and development super-deduction
     (11,861     (55,871     (34,966
Change in valuation allowance
     95,240       118,570       64,389  
Effect of income tax rate difference in other jurisdictions
     123,778       1,201,729       35,564  
Effect of tax holidays and preferential tax rates
     (282,775     (195,209     (147,894
Effect of the preferential tax rate adjustment of prior year’s EIT
     (113,396     (60,325     (26,873
Effect of PRC withholding tax
     220,000       337,428       164,257  
    
 
 
   
 
 
   
 
 
 
Provision for income tax
     755,620       822,556       562,281  
    
 
 
   
 
 
   
 
 
 
Increase in Income Tax Expenses and Net Income Per Share Amounts