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Income Tax Expenses (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Current and Deferred Components of Income Taxes | The current and deferred components of income taxes appearing in the consolidated statements of comprehensive income are as follows:
|  | Year ended December 31, |
|  | 2019 |  |  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |
Current tax expenses |  |  | 52,232 |  |  |  | 44,813 |  |  |  | 26,854 |
Deferred tax benefit |  |  | (7,042 | ) |  |  | (1,492 | ) |  |  | (21,115 | )
Income tax expenses |  |  | 45,190 |  |  |  | 43,321 |  |  |  | 5,739 |
Reconciliation between Income Tax Expenses Computed by Applying PRC Enterprise Tax Rate Before Income Taxes and Actual Provision | Reconciliation between the income tax expenses computed by applying the PRC enterprise tax rate to income before income taxes and actual provision were as follows:
|  | Year ended December 31, |
|  | 2019 |  |  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |
Income from operations in the PRC |  |  | 321,090 |  |  |  | 200,941 |  |  |  | 89,126 |
Income from overseas entities |  |  | 17,930 |  |  |  | 16,826 |  |  |  | 5,504 |
Income before income tax |  |  | 339,020 |  |  |  | 217,767 |  |  |  | 94,630 |
Tax expense at PRC enterprise income tax rate of 25% |  |  | 84,755 |  |  |  | 54,442 |  |  |  | 23,658 |
Income tax on tax holiday(1) |  |  | (31,493 | ) |  |  | (31,074 | ) |  |  | (16,872 | )
Tax effect of permanent differences(2) |  |  | (12,147 | ) |  |  | (16,895 | ) |  |  | (28,303 | )
Change in valuation allowance(3) |  |  | 1,592 |  |  |  | 29,780 |  |  |  | 22,153 |
Effect of share-based compensation |  |  | 6,475 |  |  |  | 10,830 |  |  |  | 7,111 |
Effect of income tax in jurisdictions other than the PRC |  |  | (3,992 | ) |  |  | (3,762 | ) |  |  | (2,008 | )
Income tax expenses |  |  | 45,190 |  |  |  | 43,321 |  |  |  | 5,739 |
| (1) | The income tax on tax holidays represents the effect of preferential income tax rate enjoyed by Foshan Viomi, Guangdong Lizi and Yunmi Hulian. Foshan Viomi was qualified as an HNTE and enjoyed the beneficial tax rate of 15% for the three years ended December 31, 2019, 2020 and 2021. Foshan Viomi will need to re-apply for HNTE qualification renewal in 2022. The Company believed that Foshan Viomi can successfully obtain the renewal in 2022. Guangdong Lizi applied for the HNTE qualification and obtained approval in December 2020. It entitled to enjoy the preferential tax rate of 15% as an HNTE for three years starting from 2020 and should apply for HNTE qualification renewal in 2023. Yunmi Hulian applied for the HNTE qualification and obtained approval in December 2021. It entitled to enjoy the preferential tax rate of 15% as an HNTE for three years starting from 2021 and should apply for HNTE qualification renewal in 2024.
| (2) | The permanent book-tax differences mainly consisted of R&D super deductions.
| (3) | Valuation allowance for the years ended December 31, 2019, 2020 and 2021 are related to the deferred tax assets of certain group entities which reported loss. The Group believed that it is more likely than not that these the deferred tax assets of these entities will not be utilized. Therefore, valuation allowance has been provided.
Per Share Effect of Tax Holidays | The per share effect of the tax holidays are as follows:
|  | Year ended December 31,
|  | 2019 |  |  | 2020 |  |  | 2021
|  | RMB |  |  | RMB |  |  | RMB
Net income per share effect – basic |  | 0.13 |  |  | 0.14 |  |  | 0.02
Net income per share effect – diluted |  |  | 0.13 |  |  |  | 0.13 |  |  | 0.02
Significant Components of Deferred Tax Assets | The significant components of the Group’s deferred tax assets were as follows:
|  | As of December 31, |
|  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |
Accrued expenses and others |  |  | 12,466 |  |  |  | 18,567 |
Net operating loss carry forwards |  |  | 32,985 |  |  |  | 69,852 |
Inventories write downs |  |  | 1,463 |  |  |  | 985 |
Deferred income |  |  | 201 |  |  |  | 161 |
Total deferred tax assets |  |  | 47,115 |  |  |  | 89,565 |
Less: valuation allowance |  |  | (32,926 | ) |  |  | (54,261 | )
Deferred tax assets, net |  |  | 14,189 |  |  |  | 35,304 |
Movement of Valuation Allowance | Movement of valuation allowance
|  | Year ended December 31, |
|  | 2019 |  |  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |
Balance at beginning of the year |  |  | 1,554 |  |  |  | 3,146 |  |  |  | 32,926 |
Provided |  |  | 1,592 |  |  |  | 29,780 |  |  |  | 21,335 |
Balance at end of the year |  |  | 3,146 |  |  |  | 32,926 |  |  |  | 54,261 |

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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure of the income tax exemptions and reductions which have been granted by taxing authorities for a specified period, applicable term of the exemptions and reductions, estimated dollar value of tax benefits, and per share benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 + Details
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