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v3.20.1

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Summary of provisions for income tax expense | The provisions for income tax expense are summarized as follows (in thousands):
|  | For the Years Ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |  |  | 2019 |
|  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
Current tax expense |  |  | 20,936 |  |  |  | 19,819 |  |  |  | 23,218 |  |  |  | 3,336 |
Deferred tax (benefit)/expense |  |  | (6,153 | ) |  |  | 286 |  |  |  | (2,977 | ) |  |  | (428 | )
Income tax expense |  |  | 14,783 |  |  |  | 20,105 |  |  |  | 20,241 |  |  |  | 2,908 |
Components of income before tax and income tax expense for PRC and non-PRC operations | The components of income before tax and income tax expense for PRC and non-PRC operations are as follows (in thousands):
|  | For the Years Ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |  |  | 2019 |
|  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
Income/(loss) arising from PRC operations |  |  | 104,208 |  |  |  | (43,009 | ) |  |  | (214,743 | ) |  |  | (30,846 | )
(Loss)/income arising from non-PRC operations |  |  | (55,001 | ) |  |  | (2,498 | ) |  |  | 958,986 |  |  |  | 137,750 |
Income/(loss) before tax |  |  | 49,207 |  |  |  | (45,507 | ) |  |  | 744,243 |  |  |  | 106,904 |
Income tax expense relating to PRC operations |  |  | 14,739 |  |  |  | 20,129 |  |  |  | 20,243 |  |  |  | 2,908 |
Income tax expense/(benefit) relating to non-PRC operations |  |  | 44 |  |  |  | (24 | ) |  |  | (2 | ) |  |  | (0.3 | )
Income tax expense |  |  | 14,783 |  |  |  | 20,105 |  |  |  | 20,241 |  |  |  | 2,908 |
Effective tax rate for PRC operations |  |  | 14.1 | % |  |  | (46.8 | )% |  |  | (9.4 | )% |  |  | (9.4 | )%
Reconciliation of the differences between PRC statutory income tax rate and the Group's effective income tax rate for PRC operations | Reconciliation of the differences between PRC statutory income tax rate and the Group’s effective income tax rate for PRC operations for the years ended December 31, 2017, 2018 and 2019 is as follows:
|  | For the Years Ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
|  | % |  |  | % |  |  | % |
Statutory income tax rate |  |  | 25.0 |  |  |  | 25.0 |  |  |  | 25.0 |
Permanent differences* |  |  | (10.1 | ) |  |  | 46.2 |  |  |  | 18.0 |
Change in valuation allowance |  |  | 2.9 |  |  |  | (77.2 | ) |  |  | (33.0 | )
Effect of preferential tax treatment |  |  | (6.6 | ) |  |  | (37.5 | ) |  |  | (18.7 | )
Uncertain tax positions |  |  | 2.9 |  |  |  | (3.3 | ) |  |  | (0.7 | )
Effective income tax rate |  |  | 14.1 |  |  |  | (46.8 | ) |  |  | (9.4 | )
* Permanent differences mainly included the tax-deductible expenses of the research and development expenses so incurred in a year in determining their tax assessable profits for that year for enterprises engaging in research and development activities, which were of 150% before 2018 and of 175% beginning from January 1, 2018, according to policies promulgated by the State Tax Bureau of the PRC.
Combined effects of the income tax exemption and other preferential tax treatment | The combined effects of the income tax exemption and other preferential tax treatment available to the Group are as follows (in thousands, except per share data):
|  | For the Years Ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |  |  | 2019 |
|  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
Effect of preferential tax treatment |  |  | 6,836 |  |  |  | (16,128 | ) |  |  | (40,054 | ) |  |  | (5,753 | )
Basic net income/(loss) per share effect |  |  | 0.01 |  |  |  | (0.03 | ) |  |  | (0.07 | ) |  |  | (0.01 | )
Tax effects of temporary differences that give rise to deferred tax assets and liabilities | The tax effects of temporary differences that give rise to the deferred tax assets and liabilities balances as of December 31, 2018 and 2019 are as follows (in thousands):
|  | As of December 31, |
|  | 2018 |  |  | 2019 |  |  | 2019 |
|  | RMB |  |  | RMB |  |  | US$ |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Provision of allowance for doubtful accounts |  |  | 21,431 |  |  |  | 31,240 |  |  |  | 4,487 |
Accrued payroll and expenses and others |  |  | 25,576 |  |  |  | 32,849 |  |  |  | 4,720 |
Net operating loss carryforward |  |  | 69,150 |  |  |  | 136,503 |  |  |  | 19,607 |
Less: valuation allowance |  |  | (55,997 | ) |  |  | (126,904 | ) |  |  | (18,229 | )
Total deferred tax assets, net |  |  | 60,160 |  |  |  | 73,688 |  |  |  | 10,585 |
17. Income Taxes (Continued)
|  | As of December 31, |
|  | 2018 |  |  | 2019 |  |  | 2019 |
|  | RMB |  |  | RMB |  |  | US$ |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding gain of available-for-sale debt investments* |  |  | 132,272 |  |  |  | 190,830 |  |  |  | 27,412 |
Amortizable intangible assets from acquisition of a subsidiary |  |  | 7,376 |  |  |  | 5,668 |  |  |  | 814 |
Others |  |  | 1,312 |  |  |  | 1,312 |  |  |  | 188 |
Total deferred tax liabilities |  |  | 140,960 |  |  |  | 197,810 |  |  |  | 28,414 |
*The Company recognized a deferred tax liability of RMB132.3 million and RMB190.8 million (US$27.4 million) for the unrealized holding gain of available-for-sale debt investments in Particle, as of December 31, 2018 and 2019, respectively, which was recorded net against the pre-tax changes in other comprehensive income.
Movement of valuation allowance for deferred tax assets | The following table sets forth the movement of the valuation allowance for deferred tax assets (in thousands):
|  | 2017 |  |  | 2018 |  |  | 2019 |  |  | 2019 |
|  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
Balance as of January 1, |  |  | 11,402 |  |  |  | 14,208 |  |  |  | 55,997 |  |  |  | 8,043 |
Additions |  |  | 6,164 |  |  |  | 37,584 |  |  |  | 70,709 |  |  |  | 10,158 |
Increase from an acquired subsidiary |  |  | — |  |  |  | 8,576 |  |  |  | 997 |  |  |  | 143 |
Reversals |  |  | (3,358 | ) |  |  | (4,371 | ) |  |  | (799 | ) |  |  | (115 | )
Balance as of December 31, |  |  | 14,208 |  |  |  | 55,997 |  |  |  | 126,904 |  |  |  | 18,229 |
Reconciliation of liabilities associated with uncertain tax positions | A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows (in thousands):
|  | 2017 |  |  | 2018 |  |  | 2019 |  |  | 2019 |
|  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
Balance as of January 1, |  |  | 21,723 |  |  |  | 24,714 |  |  |  | 26,131 |  |  |  | 3,753 |
Increase related to current year tax positions |  |  | 2,991 |  |  |  | 1,417 |  |  |  | 1,481 |  |  |  | 213 |
Balance as of December 31, |  |  | 24,714 |  |  |  | 26,131 |  |  |  | 27,612 |  |  |  | 3,966 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + 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=116825942&loc=d3e330215-122817 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 25 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=117330534&loc=d3e28937-109314 + Details
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