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TAXATION (Tables) | 12 Months Ended
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Dec. 31, 2021
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of the differences between the statutory EIT rate applicable to losses of the consolidated entities and the income tax expenses of the Group:
|  | Year Ended December 31, 2019 |  |  | Year Ended December 31, 2020 |  |  | Year Ended December 31, 2021 |
PRC Statutory income tax rate |  |  | 25 | % |  |  | 25 | % |  |  | 25 | %
Effect on tax rates in different tax jurisdiction |  |  | 8 | % |  |  | -9 | % |  |  | 5 | %
The effect of change in the tax rate of subsidiaries |  |  | 26 | % |  |  | 0 | % |  |  | 0 | %
Non-deductible expenses |  |  | -2 | % |  |  | -1 | % |  |  | 1 | %
Additional deduction for research and development expenditures |  |  | 16 | % |  |  | 48 | % |  |  | -6 | %
Share-based compensation |  |  | -23 | % |  |  | -23 | % |  |  | 4 | %
Non-taxable income |  |  | 0 | % |  |  | 0 | % |  |  | -2 | %
Permanent book-tax differences |  |  | 2 | % |  |  | 7 | % |  |  | 4 | %
Change in valuation allowance |  |  | -40 | % |  |  | -83 | % |  |  | -2 | %
Effective tax rates |  |  | 12 | % |  |  | -36 | % |  |  | 29 | %
Summary of Valuation Allowance | Movement of valuation allowance
|  | Year Ended December 31, 2019 |  |  | Year Ended December 31, 2020 |  |  | Year Ended December 31, 2021 |
|  | RMB |  |  | RMB |  |  | RMB |
Balance at beginning of the year |  |  | (10,004 | ) |  |  | (65,225 | ) |  |  | (156,150 | )
Changes of valuation allowance (1) |  |  | (55,221 | ) |  |  | (90,925 | ) |  |  | 59,661 |
Balance at end of the year |  |  | (65,225 | ) |  |  | (156,150 | ) |  |  | (96,489 | )
(1) | Valuation allowances have been provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination as of December 31, 2021 , the Group evaluates a variety of factors supporting the utilization of carry-forwards through a forecast of future taxable profits for each impacted entity within a specific tax jurisdiction, including : the Group’s entities’ operating history and forecast , accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2020 and 2021, valuation allowances on a large part of deferred tax assets were provided because it was more likely than not that the Group will not be able to utilize tax loss carry forwards generated by certain unprofitable subsidiaries. As of December 31, 2019 and 2020, valuation allowances of RMB 55,221 and 90,925 were provided against deferred tax assets because it was more likely than not that such portion of deferred tax will not be realized based on the Company’s estimate of future taxable incomes of all its subsidiaries.
Summary of Operating Loss Carryforwards | As of December 31, 2021, net operating loss carry forwards from PRC entities will expire as follows:
At December 31, |  | RMB |
2022 |  |  | 6,264 |
2023 |  |  | 484 |
2024 |  |  | 288,839 |
2025 |  |  | 227,979 |
2026 |  |  | 48,915 |
|  |  | 572,481 |
Deferred tax assets [Member] |
Schedule of Deferred Tax Assets and Liabilities | The following table sets forth the significant components of the deferred tax assets:
|  | As of December 31, |
|  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |
Deferred tax assets |  |  |  |  |  |  |  |
Net accumulated losses-carry forward |  |  | 205,487 |  |  |  | 108,667 |
Deferred membership program revenue |  |  | — |  |  |  | 212 |
Refund payable to members |  |  | 1,100 |  |  |  | 172 |
Inventory write-downs |  |  | 2,632 |  |  |  | 1,749 |
Allowance for credit losses |  |  | 3,272 |  |  |  | 2,813 |
Others |  |  | 4,101 |  |  |  | 1,021 |
Less: valuation allowance |  |  | (156,150 | ) |  |  | (96,489 | )
Total deferred tax assets |  |  | 60,442 |  |  |  | 18,145 |
|  | As of December 31, |
|  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |
Deferred tax liabilities |  |  |  |  |  |  |  |
Gain or loss from changes in fair values |  |  | 2,684 |  |  |  | 2,572 |
Others |  |  | 135 |  |  |  | 648 |
Total deferred tax liabilities |  |  | 2,819 |  |  |  | 3,220 |

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