XML 34 R19.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Taxation | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Taxation | 11. Ta xation a) Value added tax (“VAT”) For sales of pre-owned consumer electronic products, the Group is subject to the VAT levy rate of 3% under the simplified method and is exempted by 1% in comply with relevant PRC VAT regulations of CaiShui [2009] No.9 and CaiShui [2014] No.57. The Group is subject to statutory VAT rate of 13% for sales of other products in the PRC. The Group is subject to VAT at the rate of 6% for service revenues. b) Income tax Cayman Islands Under the current laws of the Cayman Islands, the Company and its subsidiaries incorporated in the Cayman Islands are not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the Company’s subsidiaries incorporated in Hong Kong are subject to 16.5% Hong Kong profit tax on its taxable income generated from operations in Hong Kong. Commencing from the year of assessment 2018/2019, the first Hong Kong dollars (“HKD”) 2 million of profits earned by its subsidiaries incorporated in Hong Kong will be taxed at half the current tax rate (i.e., 8.25%) while the remaining profits will continue to be taxed at the existing 16.5% tax rate. Under the Hong Kong tax laws, the Company is exempted from the Hong Kong income tax on its foreign-derived income. Additionally, payments of dividends by the subsidiaries incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. Mainland China Under the PRC Enterprise Income Tax Law (the “EIT Law”), the statutory enterprise income tax rate for domestic enterprises and foreign invested enterprises is 25%. All of the Group’s PRC subsidiaries, consolidated former VIE and former VIE’s subsidiaries are subject to the statutory income tax rate of 25% except for Shanghai Yueyee which obtained qualification as High and New Technologies Enterprises, or HNTE in 2021 and was entitled to a preferential EIT rate of 15% from 2021 to 2023 if certain conditions are met. So far, Shanghai Yueyee is in accumulated loss status and has not enjoyed any income tax benefits from the HNTE status. Loss by tax jurisdictions
|  | Years ended December 31, |
|  | 2021 |  |  | 2022 |  |  | 2023 |
|  | RMB |  |  | RMB |  |  | RMB |
Loss from Mainland China operations |  |  | 882,229 |  |  |  | 2,616,828 |  |  |  | 109,968 |
Loss (income) from non-Mainland China operations |  |  | 71,618 |  |  |  | (43,579 | ) |  |  | 38,438 |
Total loss before tax and share of loss of equity method investments |  |  | 953,847 |  |  |  | 2,573,249 |  |  |  | 148,406 |
The reconciliation of total tax expenses computed by applying the respective statutory income tax rate to pre-tax income is as follows: 11. Taxation—(Continued) b) Income tax—(Continued) The current and deferred portion of income tax expenses included in the consolidated statements of operations and comprehensive loss are as follows:
|  | Years ended December 31, |
|  | 2021 |  |  | 2022 |  |  | 2023 |
|  | RMB |  |  | RMB |  |  | RMB |
Current tax expenses |  |  | — |  |  |  | 43 |  |  |  | 1,124 |
Deferred tax benefits |  |  | (143,863 | ) |  |  | (111,826 | ) |  |  | (43,654 | )
Total income tax benefits |  |  | (143,863 | ) |  |  | (111,783 | ) |  |  | (42,530 | )
The Group did not incur any current income tax expenses for the years ended December 31, 2021. The reconciliation of total tax expenses computed by applying the respective statutory income tax rate to pre-tax income is as follows:
|  | Years ended December 31, |
|  | 2021 |  |  | 2022 |  |  | 2023 |
|  | RMB |  |  | RMB |  |  | RMB |
PRC income tax rate |  |  | 25.00 | % |  |  | 25.00 | % |  |  | 25.00 | %
Expenses not deductible for tax purposes |  |  | (11.86 | %) |  |  | (20.25 | %) |  |  | (20.63 | %)
Super deduction on technology and content expenses |  |  | 2.83 | % |  |  | 0.68 | % |  |  | 2.85 | %
Effect of preferential tax rate for high-tech enterprises |  |  | 6.25 | % |  |  | (1.84 | %) |  |  | (19.55 | %)
Effect of different tax rates of a subsidiary operating in other jurisdictions |  |  | (1.85 | %) |  |  | 2.01 | % |  |  | (7.33 | %)
Effect of enacted tax rate change of deferred tax liabilities |  |  | — |  |  |  | — |  |  |  | — |
Effect of expired tax loss |  |  | (0.54 | %) |  |  | — |  |  |  | (0.01 | %)
Change in valuation allowance |  |  | (4.62 | %) |  |  | (0.97 | %) |  |  | 71.18 | %
True up |  |  | (0.13 | %) |  |  | (0.29 | %) |  |  | (22.85 | %)
Total |  |  | 15.08 | % |  |  | 4.34 | % |  |  | 28.66 | %
If the preferential tax rate granted to an entity of the Group were not available, the Group’s income tax benefits would have decreased by RMB 59,594, increased by RMB 47,273 and increased by RMB 29,01 6 for the years ended December 31, 2021, 2022 and 2023, respectively. The basic and diluted net loss per share attributable to the Company would increase by RMB 0.62, decreased by RMB 0.29 and decreased by RMB 0.18 for the years ended December 31, 2021 2022, and 2023, respectively. Shanghai Yueyee obtained HNTE in 2021 and it is subject to reduced income tax rate of 15% till 2023, bring an effect of preferential tax rate of income tax benefit amounted to RMB 93,250 for the year ended December 31, 2021. 11. Taxation—(Continued) b) Income tax—(Continued) Deferred tax assets and deferred tax liabilities:
|  | As of December 31, |
|  | 2021 |  |  | 2022 |  |  | 2023 |
|  | RMB |  |  | RMB |  |  | RMB |
Deferred tax assets |  |  |  |  |  |  |  |  |
Tax loss carried forward |  |  | 278,980 |  |  |  | 276,958 |  |  |  | 134,981 |
Deductible temporary differences |  |  | 59,598 |  |  |  | 83,132 |  |  |  | 111,726 |
Allowance for credit losses |  |  | 375 |  |  |  | 250 |  |  |  | 4,111 |
Write-down of inventory |  |  | 649 |  |  |  | 689 |  |  |  | 11,437 |
Unrealized fair value losses for certain investments |  |  | 438 |  |  |  | 3,808 |  |  |  | — |
Impairment loss of long-term investments |  |  | 4,125 |  |  |  | 3,047 |  |  |  | — |
Total deferred tax assets |  |  | 344,165 |  |  |  | 367,884 |  |  |  | 262,255 |
Less: valuation allowance |  |  | (344,165 | ) |  |  | (367,884 | ) |  |  | (262,255 | )
Net deferred tax assets |  |  | — |  |  |  | — |  |  |  | — |
Deferred tax liabilities |  |  |  |  |  |  |  |  |
Identifiable intangible assets and deferred cost acquired |  |  | 223,138 |  |  |  | 111,312 |  |  |  | 67,658 |
Total deferred tax liabilities |  |  | 223,138 |  |  |  | 111,312 |  |  |  | 67,658 |
The movement of deferred tax valuation allowance is as follows:
|  | As of December 31, |
|  | 2021 |  |  | 2022 |  |  | 2023 |
|  | RMB |  |  | RMB |  |  | RMB |
Balance at beginning of the year |  |  | 316,360 |  |  |  | 344,165 |  |  |  | 367,884 |
Additions (reductions), net of foreign exchange impacts |  |  | 27,805 |  |  |  | 23,719 |  |  |  | (105,629 | )
Balance at end of the year |  |  | 344,165 |  |  |  | 367,884 |  |  |  | 262,255 |
As of December 31, 2021, 2022 and 2023, the Group had net operating loss carry forwards of approximately RMB 1,199,251, RMB 1,140,585 and RMB 627,437, respectively, which arose from the subsidiaries, former VIE and former VIE’s subsidiaries established in the PRC, Hong Kong. The loss carry forwards will expire until receive of notice from local tax authorities. The Group has provided a full valuation allowance for the deferred tax assets as of December 31, 2021, 2022 and 2023, as management is not able to conclude that the future realization of those net operating loss carry forwards and other deferred tax assets are more likely than not. The deferred tax component of income tax benefits is related to the amortization and impairment of deferred tax liabilities resulting from the business and assets acquisitions. In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises (“FIEs”) earned after January 1, 2008, are subject to a 10% withholding income tax. In addition, under tax treaty between the PRC and Hong Kong, if the foreign investor is incorporated in Hong Kong and qualifies as the beneficial owner, the applicable withholding tax rate is reduced to 5%, if the investor holds at least 25% in the FIE, or 10%, if the investor holds less than 25% in the FIE. The Company’s subsidiaries, former VIE and former VIE's subsidiaries located in the PRC and Hong Kong were in accumulated deficit as of December 31, 2021, 2022 and 2023. Accordingly, no deferred tax liability has been accrued for the PRC dividend withholding taxes that would be payable upon the distribution of those amounts to the Company as of December 31, 2021, 2022 and 2023.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration