Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of loss before income taxes

oss before income taxes consists of:

	Year ended December 31,
	2021			2022			2023
	RMB			RMB			RMB			US$
PRC		(490,025	)		(261,306	)		(251,578	)		(35,434	)
Non-PRC		150,454			(284,474	)		(386,072	)		(54,376	)
Total		(339,571	)		(545,780	)		(637,650	)		(89,810	)

Schedule of current and deferred portions of income tax expenses

The current and deferred portions of income tax expenses included in the consolidated statements of comprehensive loss are as follows:

	Year ended December 31,
	2021		2022			2023
	RMB		RMB			RMB			US$
Current income tax expenses (benefits)		12,713		(12,208	)		850			120
Deferred income tax (benefits) expenses		920		(12,881	)		(44,631	)		(6,286	)
Income tax expenses (benefits)		13,633		(25,089	)		(43,781	)		(6,166	)

Reconciliation of the differences between the statutory tax rate and the effective tax rate for enterprise income tax

A reconciliation of the differences between the statutory tax rate and the effective tax rate for enterprise income tax is as follows:

	Year ended December 31,
	2021			2022			2023
	RMB			RMB			RMB			US$
Loss before income tax		(339,571	)		(545,780	)		(637,650	)		(89,810	)
Income tax benefits computed at the PRC statutory tax rate of 25%		(84,894	)		(136,445	)		(159,413	)		(22,453	)
Effect of different tax rates in different jurisdictions		(16,764	)		49,280			84,086			11,843
Effect of tax holiday and preferential tax rates		44,909			4,908			2,981			420
Research and development super-deduction		(12,660	)		(9,361	)		(8,749	)		(1,232	)
Non-taxable income(i)		(25,713	)		(2,809	)		(5,488	)		(773	)
Non-deductible expenses(ii)		8,614			1,783			21,538			3,034
Effect of change in tax rate		(12,327	)		(106,824	)		3,080			434
Outside basis difference on investment		63			(3,800	)		(33,413	)		(4,706	)
Changes in uncertain tax position		(9,453	)		(11,903	)		(4,183	)		(589	)
Withholding tax and others		27,977			(4,345	)		22,683			3,194
Changes in valuation allowance		93,881			194,427			33,097			4,662
Income tax expenses (benefits)		13,633			(25,089	)		(43,781	)		(6,166	)

(i)Non-taxable income mainly consists of gains on disposal of subsidiaries and long-term investments or upward fair value adjustment of long-term investments that are not subject to tax under the tax laws of different jurisdictions.

(ii)Non-deductible expenses mainly consist of share-based compensation expenses, entertainments, disposal losses or impairment of long-term investments and other expenses that are not allowed to be deducted under the tax laws of different jurisdictions.

Schedule of deferred tax assets and deferred tax liabilities

Deferred taxes were measured using the enacted tax rates for the periods in which the temporary differences are expected to be reversed. The tax effects of temporary differences that give rise to the deferred tax balances as of December 31, 2022 and 2023 are as follows:

	As of December 31,
	2022			2023
	RMB			RMB			US$
Deferred tax assets:
Tax losses carry forward		411,544			708,815			99,835
Equity investment loss		157,319			185,553			26,135
Allowance for credit losses		36,089			35,983			5,068
Intangible assets and accrued expenses		8,687			7,906			1,114
Share-based compensation		263			235			33
Others		33,129			42,474			5,981
Valuation allowance		(617,264	)		(786,853	)		(110,826	)
Deferred tax assets		29,767			194,113			27,340
Deferred tax liabilities:
Outside basis difference on investment		55,770			23,403			3,296
Equity method investment and unrealized gains		1,813			1,112			157
Right-of-use asset and others		8,617			4,498			633
Intangible assets acquired from business acquisition		-			31,137			4,386
Deferred tax liabilities		66,200			60,150			8,472

	As of December 31,
	2023
	RMB		US$
Classification in the consolidated balance sheets:
Deferred tax assets		188,503		26,550
Deferred tax liabilities		54,540		7,682

The Group operates through several subsidiaries, VIEs and subsidiaries of VIEs and the valuation allowance is considered for each subsidiary, VIE and subsidiary of VIE on an individual basis. As of December 31, 2022, and 2023, the Group’s total deferred tax assets before valuation allowances were RMB647,031 and RMB980,966 (US$138,166), respectively. As of December 31, 2022 and 2023, the Group recorded valuation allowances of RMB617,264 and RMB786,853 (US$110,826), respectively, on its deferred tax assets that are sufficient to reduce the deferred tax assets to the amounts that are more-likely-than-not to be realized.

The following table sets forth the movement of the valuation allowances for deferred tax assets for the years presented:

	2022	2023
	RMB	RMB	US$
Balance at January 1	(422,837)	(617,264)	(86,940)
Additions(1)	(205,800)	(215,340)	(30,330)
Decreases	11,373	45,751	6,444
Balance at December 31	(617,264)	(786,853)	(110,826)

(1) RMB 136,492 (US$19,224) of which was from the business combination as set out in Note3.

Reconciliation of the beginning and ending amount of unrecognized tax benefit

A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows:

	2022			2023
	RMB			RMB			US$
Balance at January 1		177,526			172,557			24,304
Additions based on tax positions related to current year		588			3,086			435
Reversal based on tax positions related to prior years		(17,643	)		(9,651	)		(1,359	)
Foreign exchange translation adjustments		12,086			2,424			341
Balance at December 31		172,557			168,416			23,721