Taxation (Tables)

12 Months Ended

Dec. 31, 2022

Major components of tax expense (income) [abstract]

Summary of Income Tax Expense

The income tax expense of the Group is analyzed as follows:

	Year ended December 31,
	2020			2021			2022
	RMB’million			RMB’million			RMB’million
Current income tax		634			530			604
Deferred income tax (note b)		(178	)		(113	)		(70	)
Total income tax expense		456			417			534

Summary of Reconciliation of Income Tax

The taxation on the Group’s profit before income tax differs from the theoretical amount that would arise using the tax rate of 25% for the years ended December 31, 2020, 2021 and 2022, being the tax rate of the major subsidiaries of the Group before enjoying preferential tax treatments, as follows:

	Year ended December 31,
	2020			2021			2022
	RMB’million			RMB’million			RMB’million
Profit before income tax		4,632			3,632			4,373
Tax calculated at a tax rate of 25%		1,158			908			1,093
Effects of different tax rates applicable to different subsidiaries of the Group		34			29			(22	)
Effects of tax holiday on assessable profit of certain subsidiaries		(214	)		(34	)	-
Effects of preferential tax rate on assessable profit of certain subsidiaries		(631	)		(664	)		(764	)
Expense not deductible for tax purposes		82			191			222
Income not subject to tax		-			(3	)	-
Unrecognized deferred income tax assets		46			27			44
Utilization of previously unrecognized tax assets		(11	)		(38	)		(33	)
Others		(8	)		1			(6	)
		456			417			534

Summary of Amount and Per Share Effect of Tax Holiday

The aggregate amount and per share effect of the tax holiday are as follows:

	Year ended December 31,
	2020		2021		2022
	RMB’million		RMB’million		RMB’million
Effects of tax holiday on assessable profit of certain subsidiaries		214		34	-
Per ordinary share effect—basic		0.06		0.01	-
Per ordinary share effect—diluted		0.06		0.01	-

Summary of Profit Before Tax

The Group’s profit before tax consists of:

	Year ended December 31,
	2020 RMB’million			2021 RMB’million			2022 RMB’million
Non-PRC		(4	)		(5	)		219
PRC		4,636			3,637			4,154
		4,632			3,632			4,373

Summary of Deferred Tax Assets and Deferred Tax Liabilities

	As at December 31,
	2021			2022
	RMB’million			RMB’million
The deferred tax assets comprise temporary differences attributable to:
Prepayments		134			134
Deferred revenue		83			49
Accruals		118			159
Others		15			9
Total deferred tax assets		350			351
Set-off of deferred tax liabilities pursuant to set-off provisions		(4	)		(4	)
Net deferred tax assets		346			347
The deferred tax liabilities comprise temporary differences attributable to:
Intangible assets acquired in business combinations		275			215
Total deferred tax liabilities		275			215
Set-off of deferred tax liabilities pursuant to set-off provisions		(4	)		(4	)
Net deferred liabilities		271			211

Summary of Recovery of Deferred Income Tax

The recovery of deferred income tax:

	As at December 31,
	2021		2022
	RMB’million		RMB’million
Deferred tax assets:
to be recovered after more than 12 months		48		12
to be recovered within 12 months		298		335
		346		347
Deferred tax liabilities:
to be recovered after more than 12 months		201		152
to be recovered within 12 months		70		59
		271		211

Summary of Movements of Deferred Income Tax Assets

The movements of deferred income tax assets were as follows:

	Prepayment and other investments		Deferred revenue			Accruals			Others			Total
	RMB’million		RMB’million			RMB’million			RMB’million			RMB’million
At January 1, 2021		105		55			136			12			308
Credited/(charged) to income statement		29		28			(18	)		3			42
At December 31, 2021		134		83			118			15			350
(Charged)/credited to income statement	-			(34	)		41			(6	)		1
At December 31, 2022		134		49			159			9			351

Disclosure of Movement of Deferred Income Tax Liabilities Explanatory

The movements of deferred income tax liabilities were as follows:

	Intangible assets
	RMB’million
At January 1, 2021		270
Credited to income statement		(71	)
Business combinations		76
At December 31, 2021		275
Credited to income statement		(69	)
Business combinations		9
At December 31, 2022		215