Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-35224 |
Entity Registrant Name | Xunlei Ltd |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 3709 Baishi Road |
Entity Address, Address Line Two | Nanshan District |
Entity Address, City or Town | Shenzhen |
Entity Address, Postal Zip Code | 518000 |
Entity Address, Country | CN |
Entity Common Stock, Shares Outstanding | 323,525,556 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Auditor Firm ID | 1424 |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Location | Shenzhen, the People’s Republic of China |
Entity Central Index Key | 0001510593 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact | |
Document and Entity Information | |
Entity Address, Address Line One | 3709 Baishi Road |
Entity Address, Address Line Two | Nanshan District |
Entity Address, City or Town | Shenzhen |
Entity Address, Postal Zip Code | 518000 |
Entity Address, Country | CN |
Contact Personnel Name | Naijiang (Eric) Zhou |
Contact Personnel Email Address | zhounaijiang@xunlei.com |
City Area Code | +86-0755 |
Local Phone Number | 61111571 |
ADR | |
Document and Entity Information | |
Title of 12(b) Security | American depositary shares |
Security Exchange Name | NASDAQ |
Trading Symbol | XNET |
Common shares | |
Document and Entity Information | |
Title of 12(b) Security | Common shares, par value US$0.00025 per share |
Security Exchange Name | NASDAQ |
Trading Symbol | XNET |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 170,802 | $ 177,154 |
Short-term investments | 101,078 | 83,626 |
Accounts receivable, net (Allowance for current expected credit losses of USD1,429 and USD1,022 as of December 31, 2022 and 2023, respectively) | 31,210 | 29,763 |
Inventories | 2,219 | 457 |
Due from related parties (Allowance for current expected credit losses of USD639 and USD388 as of December 31, 2022 and 2023, respectively) | 12,644 | 32,917 |
Prepayments and other current assets (Allowance for current expected credit losses of USD10,667 and USD6,186 as of December 31, 2022 and 2023, respectively) | 9,423 | 8,267 |
Total current assets | 327,376 | 332,184 |
Non-current assets: | ||
Restricted cash | 7,654 | |
Long-term investments | 32,134 | 30,811 |
Deferred tax assets | 478 | 213 |
Property and equipment, net | 60,028 | 61,734 |
Operating lease assets | 575 | 865 |
Intangible assets, net | 5,697 | 6,546 |
Goodwill | 20,826 | 21,179 |
Due from a related party (Allowance for current expected credit losses of nil and USD381 as of December 31, 2022 and 2023, respectively) | 19,619 | |
Long-term prepayments and other assets | 1,953 | 2,137 |
Total assets | 468,686 | 463,323 |
Current liabilities: | ||
Accounts payable (including accounts payable of the consolidated variable interest entities ("VIEs") without recourse to the Company of USD23,398 and USD21,517 as of December 31, 2022 and 2023, respectively) | 24,430 | 25,432 |
Due to related parties (including due to related parties of the consolidated VIEs without recourse to the Company of nil and nil as of December 31, 2022 and 2023, respectively) | 0 | 1,560 |
Contract liabilities, current portion (including contract liabilities, current portion of the consolidated VIEs without recourse to the Company of USD37,781 and USD34,723 as of December 31, 2022 and 2023, respectively) | 36,375 | 38,967 |
Income tax payable (including income tax payable of the consolidated VIEs without recourse to the Company of USD3,342 and USD4,739 as of December 31, 2022 and 2023, respectively) | 6,391 | 5,586 |
Accrued liabilities and other payables (including accrued liabilities and other payables of the consolidated VIEs without recourse to the Company of USD43,446 and USD42,035 as of December 31, 2022 and 2023, respectively) | 53,708 | 49,438 |
Bank borrowings (including bank borrowings of the consolidated VIEs without recourse to the Company of USD7,024 and USD6,906 as of December 31, 2022 and 2023, respectively) | 6,906 | 7,024 |
Lease liabilities (including lease liabilities, current portion of the consolidated VIEs without recourse to the Company of USD283 and USD276 as of December 31, 2022 and 2023, respectively) | 276 | 283 |
Total current liabilities | 128,086 | 128,290 |
Non-current liabilities: | ||
Contract liabilities (including contract liabilities of the consolidated VIEs without recourse to the Company of USD876 and USD846 as of December 31, 2022 and 2023, respectively) | 846 | 876 |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to the Company of USD687 and USD513 as of December 31, 2022 and 2023, respectively) | 513 | 687 |
Bank borrowings (including bank borrowings of the consolidated VIEs without recourse to the Company of USD24,750 and USD15,539 as of December 31, 2022 and 2023, respectively) | 15,539 | 24,750 |
Lease liabilities (including lease liabilities of the consolidated VIEs without recourse to the Company of USD299 and USD229 as of December 31, 2022 and 2023, respectively) | 229 | 299 |
Total liabilities | 145,213 | 154,902 |
Commitments and contingencies | ||
Equity | ||
Common shares (375,001,940 shares issued and 325,047,736 shares outstanding as of December 31, 2022; 375,001,940 shares issued and 323,525,556 shares outstanding as of December 31, 2023) | 81 | 81 |
Additional paid-in-capital | 482,484 | 477,495 |
Accumulated other comprehensive loss | (18,913) | (14,668) |
Statutory reserves | 8,142 | 7,036 |
Treasury shares (49,954,204 shares and 51,476,384 shares as of December 31, 2022 and 2023, respectively) | 12 | 12 |
Accumulated deficits | (146,944) | (160,063) |
Total Xunlei Limited's shareholders' equity | 324,862 | 309,893 |
Non-controlling interests | (1,389) | (1,472) |
Total liabilities and shareholders' equity | $ 468,686 | $ 463,323 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Allowance for credit losses of accounts receivable | $ 1,022 | $ 1,429 |
Allowance for credit losses of prepayments and other current assets | 6,186 | 10,667 |
Allowance for current expected credit losses of due from related parties | 388 | 639 |
Allowance for current expected credit losses of Due from related parties | $ 381 | $ 0 |
Common stock, shares issued | 375,001,940 | 375,001,940 |
Common stock, shares outstanding | 323,525,556 | 325,047,736 |
Treasury stock, shares | 51,476,384 | 49,954,204 |
VIEs | ||
Accounts payable, consolidated variable interest entities and VIE's subsidiaries without recourse | $ 21,517 | $ 23,398 |
Due to related party, consolidated variable interest entities and VIE's subsidiaries without recourse | 0 | 0 |
Contract liabilities, current portion of the consolidated variable interest entities and VIE's subsidiaries without recourse | 34,723 | 37,781 |
Income tax payable, consolidated variable interest entities and VIE's subsidiaries without recourse | 4,739 | 3,342 |
Accrued liabilities and other payables, consolidated variable interest entities and VIE's subsidiaries without recourse | 42,035 | 43,446 |
Bank borrowings, current, consolidated variable interest entities and VIE's subsidiaries without recourse | 6,906 | 7,024 |
Lease liabilities, current portion of the consolidated VIE and its subsidiaries without recourse | 276 | 283 |
Contract liabilities, non-current portion of the consolidated variable interest entities and VIE's subsidiaries without recourse | 846 | 876 |
Deferred Taxes Liabilities Consolidated Variable Interest Entities Without Recourse | 513 | 687 |
Bank borrowings, consolidated variable interest entities and VIE's subsidiaries without recourse | 15,539 | 24,750 |
Lease liabilities, non-current portion, consolidated variable interest entities and VIE's subsidiaries without recourse | $ 229 | $ 299 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net revenues | |||
Total revenues, net of rebates and discounts (including transactions with related parties of USD18,284, USD15,991 and USD17,270 for the years ended December 31, 2021, 2022 and 2023, respectively) | $ 364,911 | $ 342,564 | $ 239,601 |
Business taxes and surcharges | (1,189) | (1,067) | (819) |
Net revenues | 363,722 | 341,497 | 238,782 |
Costs of revenues (including transactions with related parties of USD730, USD87 and USD39 for the years ended December 31, 2021, 2022 and 2023, respectively) | (200,649) | (200,054) | (118,603) |
Gross profit | 163,073 | 141,443 | 120,179 |
Operating expenses | |||
Research and development expenses | (74,201) | (67,680) | (61,859) |
Sales and marketing expenses | (43,509) | (24,841) | (24,569) |
General and administrative expenses | (46,875) | (39,701) | (36,868) |
Credit loss (expenses)/write-back, net | (100) | 844 | (1,206) |
Total operating expenses | (164,685) | (131,378) | (124,502) |
Operating (loss)/income | (1,612) | 10,065 | (4,323) |
Interest income | 4,619 | 1,898 | 723 |
Interest expense | (1,514) | (93) | (95) |
Other income, net | 16,904 | 13,545 | 4,678 |
Income before income tax | 18,397 | 25,415 | 983 |
Income tax benefits/(expenses) | (4,131) | (4,068) | 125 |
Net income for the year | 14,266 | 21,347 | 1,108 |
Less: net (loss)/income attributable to the non-controlling interests | 41 | (116) | (83) |
Net income attributable to Xunlei Limited | 14,225 | 21,463 | 1,191 |
Net income for the year | 14,266 | 21,347 | 1,108 |
Other comprehensive income/(loss): Currency translation adjustments, net of tax | (4,203) | (16,427) | 4,116 |
Comprehensive income | 10,063 | 4,920 | 5,224 |
Less: comprehensive (loss)/income attributable to non-controlling interests | 83 | 408 | (99) |
Comprehensive income attributable to Xunlei Limited | $ 9,980 | $ 4,512 | $ 5,323 |
Income per share for common shares | |||
Basic (in dollars per share) | $ 0.0436 | $ 0.0639 | $ 0.0036 |
Diluted (in dollars per share) | $ 0.0435 | $ 0.0638 | $ 0.0035 |
Weighted average number of common shares used in calculating | |||
Basic (in shares) | 326,390,687 | 336,040,378 | 334,707,559 |
Diluted (in shares) | 326,849,502 | 336,235,501 | 335,969,780 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related party transactions | |||
Total revenues, net of rebates and discounts (including transactions with related parties) | $ 363,722 | $ 341,497 | $ 238,782 |
Costs of revenues (including transactions with related parties) | 200,649 | 200,054 | 118,603 |
Related parties | |||
Related party transactions | |||
Total revenues, net of rebates and discounts (including transactions with related parties) | 17,270 | 15,991 | 18,284 |
Costs of revenues (including transactions with related parties) | $ 39 | $ 87 | $ 730 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common shares | Treasury stock | Additional paid-in capital | Accumulated deficits | Statutory reserves | Accumulated other comprehensive (loss)/income | Total Xunlei Limited's shareholders' equity | Non-controlling interest | Total |
Beginning Balance, Amount at Dec. 31, 2020 | $ 84 | $ 8 | $ 469,887 | $ (181,095) | $ 5,414 | $ (2,144) | $ 292,154 | $ (1,781) | $ 290,373 |
Beginning Balance, Shares at Dec. 31, 2020 | 334,401,981 | 34,475,224 | |||||||
Share-based compensation | 6,170 | 6,170 | 6,170 | ||||||
Restricted shares vested (in shares) | 2,855,965 | (2,855,965) | |||||||
Appropriation of statutory reserves | (741) | 741 | |||||||
Net income | 1,191 | 1,191 | (83) | 1,108 | |||||
Currency translation adjustments | 4,132 | 4,132 | (16) | 4,116 | |||||
Ending Balance, Amount at Dec. 31, 2021 | $ 84 | $ 8 | 476,057 | (180,645) | 6,155 | 1,988 | 303,647 | (1,880) | 301,767 |
Ending Balance, Shares at Dec. 31, 2021 | 337,257,946 | 31,619,259 | |||||||
Issuance of common shares for vesting of restricted shares | $ 1 | (1) | |||||||
Issuance of common shares for vesting of restricted shares (in shares) | 6,124,735 | ||||||||
Repurchase of common shares | $ (5) | $ 5 | (6,747) | (6,747) | (6,747) | ||||
Repurchase of common shares (in shares) | (22,049,870) | 22,049,870 | |||||||
Share-based compensation | 8,184 | 8,184 | 8,184 | ||||||
Restricted shares vested | $ 2 | $ (2) | |||||||
Restricted shares vested (in shares) | 9,839,660 | (9,839,660) | |||||||
Appropriation of statutory reserves | (881) | 881 | |||||||
Disposal of subsidiaries | 2 | 2 | 358 | 360 | |||||
Capital injection in a subsidiary from noncontrolling interest shareholders | (63) | (63) | |||||||
Net income | 21,463 | 21,463 | (116) | 21,347 | |||||
Currency translation adjustments | (16,656) | (16,656) | 229 | (16,427) | |||||
Ending Balance, Amount at Dec. 31, 2022 | $ 81 | $ 12 | 477,495 | (160,063) | 7,036 | (14,668) | 309,893 | (1,472) | 308,421 |
Ending Balance, Shares at Dec. 31, 2022 | 325,047,736 | 49,954,204 | |||||||
Repurchase of common shares | $ (3) | $ 3 | (4,687) | (4,687) | (4,687) | ||||
Repurchase of common shares (in shares) | (13,037,345) | 13,037,345 | |||||||
Share-based compensation | 9,676 | 9,676 | 9,676 | ||||||
Restricted shares vested | $ 3 | $ (3) | |||||||
Restricted shares vested (in shares) | 11,515,165 | (11,515,165) | |||||||
Appropriation of statutory reserves | (1,106) | 1,106 | |||||||
Net income | 14,225 | 14,225 | 41 | 14,266 | |||||
Currency translation adjustments | (4,245) | (4,245) | 42 | (4,203) | |||||
Ending Balance, Amount at Dec. 31, 2023 | $ 81 | $ 12 | $ 482,484 | $ (146,944) | $ 8,142 | $ (18,913) | $ 324,862 | $ (1,389) | $ 323,473 |
Ending Balance, Shares at Dec. 31, 2023 | 323,525,556 | 51,476,384 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income for the year | $ 14,266,000 | $ 21,347,000 | $ 1,108,000 |
Adjustments to reconcile net income to net cash generated from operating activities | |||
Depreciation of property and equipment | 4,427,000 | 2,666,000 | 6,319,000 |
Amortization of intangible assets | 1,101,000 | 1,086,000 | 1,129,000 |
Amortization of operating lease assets | 551,000 | 56,000 | 1,934,000 |
Credit loss expenses/(write-back), net and impairment on prepayments | 100,000 | (844,000) | 1,213,000 |
Loss on disposal of property and equipment | 1,000 | 2,000 | 31,000 |
Gain on modification of operating lease | (33,000) | ||
Share - based compensation | 9,676,000 | 8,184,000 | 6,170,000 |
Net unrealized investment income from short-term investments | (1,390,000) | (367,000) | (404,000) |
Impairment of property and equipment | 1,146,000 | 0 | 0 |
Impairment of inventories | 0 | 15,000 | 429,000 |
Impairment on long-term investments | 0 | 590,000 | 0 |
Net unrealized gains on long-term investments | (437,000) | ||
Investment income on disposal of long-term investments | (24,000) | (42,000) | |
Interest expense accrued on long-term payables | 93,000 | 93,000 | 95,000 |
Deferred income taxes | (428,000) | (382,000) | (178,000) |
Deferred government grants | (162,000) | (169,000) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,997,000) | (5,979,000) | (2,168,000) |
Prepayments and other assets | (408,000) | 4,111,000 | (2,319,000) |
Due from/to related parties | (1,665,000) | 1,099,000 | (8,507,000) |
Accounts payable | (598,000) | 1,064,000 | 5,238,000 |
Inventories | (1,804,000) | 851,000 | (36,000) |
Contract liabilities | (1,954,000) | 5,739,000 | 2,112,000 |
Income tax payable | 904,000 | 3,434,000 | (77,000) |
Accrued liabilities and other payables | 3,134,000 | 8,621,000 | 9,605,000 |
Lease liabilities | 618,000 | 322,000 | (2,003,000) |
Net cash generated from operating activities | 25,716,000 | 51,109,000 | 19,480,000 |
Cash flows from investing activities | |||
Purchase of short-term investments | (378,162,000) | (517,411,000) | (337,738,000) |
Proceeds from collection upon maturities of short-term investments | 360,735,000 | 545,073,000 | 341,960,000 |
Purchase of property and equipment (including construction in progress) | (3,992,000) | (14,969,000) | (13,202,000) |
Purchase of intangible assets | (499,000) | (8,000) | (84,000) |
Purchase of long-term investments | (1,418,000) | (1,000,000) | (3,627,000) |
Proceeds from disposal of property and equipment | 15,000 | 6,000 | 207,000 |
Proceeds from disposal of long-term investments | 22,000 | 42,000 | |
(Payment)/repayment of loans to employees | (599,000) | 67,000 | (177,000) |
Loan to a related party | (20,000,000) | ||
Net cash (used in)/generated from investing activities | (23,898,000) | 11,758,000 | (32,619,000) |
Cash flows from financing activities | |||
Repurchase of common shares | (4,687,000) | (6,747,000) | |
Proceeds from bank borrowings | 4,254,000 | 16,656,000 | 2,196,000 |
Repayment of bank borrowings | (13,091,000) | (3,344,000) | (2,419,000) |
Capital injection from a non-controlling interest shareholder | 76,000 | ||
Net cash (used in)/generated from financing activities | (13,524,000) | 6,641,000 | (223,000) |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (11,706,000) | 69,508,000 | (13,362,000) |
Effect of exchange rates on cash and cash equivalents, and restricted cash | (2,300,000) | (12,136,000) | 2,009,000 |
Cash and cash equivalents at beginning of the year | 177,154,000 | 123,358,000 | 137,248,000 |
Restricted cash at beginning of the year | 7,654,000 | 4,078,000 | 1,541,000 |
Cash, cash equivalents and restricted cash at beginning of the year | 184,808,000 | 127,436,000 | 138,789,000 |
Cash and cash equivalents at end of the year | 170,802,000 | 177,154,000 | 123,358,000 |
Restricted cash at end of year | 7,654,000 | 4,078,000 | |
Cash, cash equivalents and restricted cash at end of the year | 170,802,000 | 184,808,000 | 127,436,000 |
Supplemental disclosure of cash flow information | |||
Income tax paid | 2,532,000 | 1,178,000 | 66,000 |
Interest paid | 1,376,000 | ||
Non-cash investing and financing activities | |||
Purchase of property and equipment in form of other payables | 148,000 | 593,000 | 568,000 |
Addition of operating lease assets and lease liabilities, net off impact from lease modification | $ 275,000 | $ 555,000 | $ 10,000 |
Organization and nature of oper
Organization and nature of operations | 12 Months Ended |
Dec. 31, 2023 | |
Organization and nature of operations | |
Organization and nature of operations | 1. Organization and nature of operations Xunlei Limited, previously known as Giganology Limited, (the “Company”) was incorporated under the law of the Cayman Islands as a limited liability company on February 3, 2005. The Company completed its initial public offering on June 24, 2014 on the NASDAQ Global Market. Each American Depositary Shares (“ADSs”) of the Company represents five common shares. These consolidated financial statements include the financial statements of the Company, its subsidiaries, the variable interest entity (“VIE”) and VIE’s subsidiaries (collectively referred to as the “Group”). As of December 31, 2023, the Company’s major subsidiaries, VIE and VIE’s subsidiaries are as follows: % of direct or indirect Place of Period of economic Name of entities incorporation incorporation Relationship ownership Principal activities Shenzhen Xunlei Networking Technologies Co., Ltd. (“Shenzhen Xunlei”) People’s Republic of China (“PRC”) January 2003 VIE 100 % Development of software, provision of online advertising and membership subscription Giganology (Shenzhen) Co., Ltd. (“Giganology Shenzhen”) PRC June 2005 Subsidiary 100 % Development of computer software and provision of information technology services to related companies Shenzhen Xunlei Wangwenhua Co., Ltd. (formerly known as “Shenzhen Fengdong Networking Technologies Co., Ltd.”) (“Wangwenhua”) PRC December 2005 VIE’s subsidiary 100 % Development of computer software, provision of advertising services and operation of live steaming platforms Xunlei Computer (Shenzhen) Co., Ltd. (“Xunlei Computer”) PRC November 2011 Subsidiary 100 % Development of computer software and provision of information technology services Shenzhen Onething Technologies Co., Ltd. (“Onething”) PRC September 2013 VIE’s subsidiary 100 % Development of cloud computing technology and provision of related services Beijing Xunjing Technologies Co., Ltd. (formerly known as “Wangxin Century Technologies (Beijing) Co., Ltd.”) PRC October 2015 VIE’s subsidiary 100 % Development of computer software and provision of information technology services 1. Organization and nature of operations (Continued) % of direct or indirect Place of Period of economic Name of entities incorporation incorporation Relationship ownership Principal activities Jiangxi Node Technology Service Co., Ltd. (“Jiangxi Node”) PRC July 2020 VIE’s subsidiary 100 % Development of cloud computing technology and provision of related services FUNI. PTE. LTD. (“FUNI”) Singapore April 2021 Subsidiary 100 % Operation of live streaming platforms Hainan Xunlei Hammer Network Technologies Co., Ltd. PRC September 2021 VIE’s subsidiary 100 % Development of computer software and operation of live steaming platforms Note: The English names of the PRC companies represent management’s translation of the Chinese names of these companies as they have not adopted formal English names. The Group engages primarily in the provision of premium downloading services to its members, sales of bandwidth, platforms for live streaming services and other internet value added services. To comply with the PRC laws and regulations that prohibit or restrict foreign ownership of companies that provide online services and hold Internet Content Provider (‘‘ICP’’) license, the Group mainly conducts its business through the VIE, Shenzhen Xunlei, and its subsidiaries in the PRC. Through the various agreements enacted among the Company, Giganology Shenzhen, a wholly owned subsidiary of the Company, Shenzhen Xunlei and legal registered shareholders of Shenzhen Xunlei, the Company as the primary beneficiary received all of the economic benefits and residual interest and absorbed all of the risks and expected losses from Shenzhen Xunlei. Details of these agreements are as follows: — Loan Agreements Under a separate loan agreement between Giganology Shenzhen and Mr. Sean Shenglong Zou as a legal registered shareholder of Shenzhen Xunlei, Giganology Shenzhen made an additional interest-free loan of RMB20 million to Mr. Sean Shenglong Zou, the entire amount of which was contributed to the registered capital of Shenzhen Xunlei, increasing the registered capital of Shenzhen Xunlei to RMB30 million. The term of this agreement lasts for two years from the date it was signed, and will be automatically extended afterwards on a yearly basis until Mr. Zou has repaid the loan in its entirety in accordance with the loan agreement. This loan will be deemed to be repaid when all equity interest held by the shareholders in Shenzhen Xunlei has been transferred to Giganology Shenzhen or its designated parties. At any time during the term of this loan agreement, the Company may, at their sole discretion, require all or any portion of the outstanding loan under the agreement to be repaid. — Business Operation Agreements 1. Organization and nature of operations (Continued) — Equity Pledge Agreement — Power of Attorney — Service Agreements For the Exclusive Technology Support and Services Agreement and the Exclusive Technology Consulting and Training Agreement, the term of these agreements will expire in 2025 and may be extended with Giganology Shenzhen’s written confirmation prior to the expiration date. Giganology Shenzhen is entitled to terminate the agreement at any time by providing 30 days’ prior written notice to Shenzhen Xunlei. For the Proprietary Technology License Contract, the term of this contract became expired in March 2022 and has been extended with Giganology Shenzhen to March 2032. Giganology Shenzhen grants Shenzhen Xunlei a non-exclusive and non-transferable right to use Giganology Shenzhen’s proprietary technology. Shenzhen Xunlei can only use the proprietary technology to conduct business according to its authorized business scope. Giganology Shenzhen or its designated representative(s) owns the rights to any new technology developed due to implementation of this contract. —Intellectual Properties Purchase Option Agreement — Call Option Agreement Giganology Shenzhen has an option to acquire all of the outstanding shares of Shenzhen Xunlei at a purchase price equal to As a result of these agreements (collectively defined as “Structured Service Contracts”), Giganology Shenzhen can exercise effective control over Shenzhen Xunlei, receives all of the economic benefits and residual interest and absorbs all of the risks and expected losses from Shenzhen Xunlei as if it were the sole shareholder, and has an exclusive option to purchase all of the equity interest in Shenzhen Xunlei at a minimal price. Therefore, Giganology Shenzhen is considered the primary beneficiary of Shenzhen Xunlei and accordingly Shenzhen Xunlei is regarded as VIE and its results of operations, assets and liabilities have been consolidated in the Company’s financial statements. 1. Organization and nature of operations (Continued) VIE-related risks A significant part of the Group’s business is conducted through Shenzhen Xunlei, the VIE of the Group, of which the Company is the primary beneficiary. In the opinion of management, the contractual arrangements with the VIE and the nominee shareholders are in compliance with PRC laws and regulations and are legally binding and enforceable. The nominee shareholders indicate they will not act contrary to the contractual arrangements. However, there are substantial uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if the nominee shareholders of the VIE were to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements. On March 15, 2019, the National People’s Congress approved the Foreign Investment Law, effective on January 1, 2020. The Foreign Investment Law and its current implementation and interpretation rules do not explicitly classify whether variable interest entities that are controlled through contractual arrangements would be deemed as foreign-invested enterprises if they are ultimately “controlled” by foreign investors. However, it has a catch-all provision under the definition of “foreign investment” that includes investments made by foreign investors in China through other means as provided by laws, administrative regulations, or the State Council. Therefore, it still leaves leeway for future laws, administrative regulations, or provisions of the State Council to provide for contractual arrangements as a form of foreign investment. Therefore, there can be no assurance that the Group’s control over the variable interest entities through contractual arrangements will not be deemed as a foreign investment in the future. Furthermore, if future laws, administrative regulations or provisions mandate further actions to be taken by companies with respect to existing contractual arrangements, the Group may face substantial uncertainties as to whether the Group can complete such actions in a timely manner, or at all. Failure to take timely and appropriate measures to cope with any of these or similar regulatory compliance challenges could materially and adversely affect the Group’s current corporate structure and business operations. If a finding was made by PRC authorities under existing laws and regulations and becomes effective, the Group’s operation of certain of its operations and businesses through VIE, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Group to restructure its ownership structure or operations, or requiring the Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Group’s business operations, and have a severe adverse impact on the Group’s cash flows, financial position and operating performance. In addition, it is possible that the contracts among the Group, the VIE and shareholders of VIE would not be enforceable in China if PRC government authorities or courts were to find that such contracts contravene PRC law and regulations or are otherwise not enforceable for public policy reasons. The Group’s operations also depend on the VIE and their nominee shareholders to honor their contractual arrangements with the Group. In the event that the Group was unable to enforce these contractual arrangements, the Group would not be able to exert effective control over the affected VIE. Consequently, such VIE’s results of operations, assets and liabilities would not be included in the Group’s consolidated financial statements. If such were the case, the Group’s cash flows, financial position and operating performance would be severely adversely affected. The Group’s contractual arrangements with respect to VIE are approved and in place. The Group’s management believes that such contracts constitute valid and legally binding obligations of each party to such contractual arrangements under the PRC laws, and considers the possibility remote that PRC regulatory authorities with jurisdiction over the Group’s operations and contractual relationships would find the contracts to be unenforceable. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation and use of estimates The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (‘‘U.S. GAAP’’). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and related disclosures. Actual results could differ materially from these estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements mainly include allowance for credit losses, valuation allowance of deferred tax assets, impairment assessment of goodwill and impairment assessment of long-lived assets. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. (b) Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE for which the Company is the primary beneficiary and its subsidiaries. All transactions and balances among the Company, its subsidiaries, the VIE and VIE’s subsidiaries have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one-half of the voting power, or has the power to appoint or remove the majority of the members of the board of directors to cast majority of votes at meetings of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. An entity is considered to be a VIE if the entity’s equity holders do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The Group consolidates entities for which the Company is the primary beneficiary if the entity’s other equity holders do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. In determining whether the Company or its subsidiary is the primary beneficiary of a VIE, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, including the power to appoint senior management, right to direct company strategy, power to approve capital expenditure budgets, and power to establish and manage ordinary business operation procedures and internal regulations and systems. 2. Summary of significant accounting policies (Continued) (b) Consolidation (Continued) Management has evaluated the contractual arrangements among Giganology Shenzhen, Shenzhen Xunlei and its shareholders and concluded that Giganology Shenzhen receives all of the economic benefits and absorbs all of the expected losses from Shenzhen Xunlei and has the power to direct the aforementioned activities that are significant to Shenzhen Xunlei’s economic performance, and is the primary beneficiary of Shenzhen Xunlei. Therefore, Shenzhen Xunlei and its subsidiaries’ results of operation, assets and liabilities have been included in the Group’s consolidated financial statements. Management monitors the regulatory risk associated with these contractual arrangements. See note 26 for further discussion. Non-controlling interests represent the portion of the net assets of a subsidiary attributable to interests that are not owned by the Company. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Group is presented on the face of the consolidated statements of comprehensive income as an allocation of the total income or loss for the year between non-controlling shareholders and the shareholders of the Company. (c) The Group accounts for acquisitions of entities that include inputs and processes and have the ability to generate economic benefit as business combinations. The Group allocates the purchase price of the acquisition to the tangible assets and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related costs are expensed as incurred. (d) Foreign currency translation The Company’s reporting and functional currency is the United States Dollar (‘‘USD’’). The functional currency of other subsidiaries, the VIE and VIE’s subsidiaries located in the Mainland China is the Renminbi (‘‘RMB’’), and the functional currency of other subsidiaries located outside the Mainland China is the USD. Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in foreign currencies are remeasured into the functional currency using the applicable exchange rates prevailing at the balance sheet date. The resulting exchange gains and losses from foreign currency transactions are included in “Other income, net” within the consolidated statements of comprehensive income. The Company uses the monthly average exchange rate for the year and the exchange rates at the balance sheet date to translate the operating results and financial position, respectively, of its subsidiaries whose functional currency is other than the USD. The resulting translation differences are recorded in cumulated translation adjustments, a component of shareholders’ equity. The exchange rate used is based on the rates released by Chinese State Administration of Foreign Exchange. 2. Summary of significant accounting policies (Continued) (e) Cash and cash equivalents and restricted cash Cash and cash equivalents include cash on hand, cash in bank and time deposits placed with banks or other financial institutions, which have original maturities of three months or less and are readily convertible to known amounts of cash. Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is included in the total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. The Group’s restricted cash represented the cash balance on deposit as required by the court for ongoing litigations as of December 31, 2022. (f) Short-term investments Short-term investments include deposits placed with banks with original maturities of more than three months but within one year and investments in financial instruments with a variable interest rate indexed to the performance of underlying assets. In accordance with ASC 825 Financial Instruments (g) Allowance for expected credit losses The current expected credit losses methodology requires that the full amount of expected credit losses for the lifetime of the financial instrument be recorded at the time it is originated or acquired, considering relevant historical experience, current conditions and reasonable and supportable macroeconomic forecasts that affect the collectability of financial assets, and adjusted for changes in expected lifetime credit losses subsequently, which may require earlier recognition of credit losses. The Group’s accounts receivable, due from related parties and other current assets (including other receivables) and other non-current assets (including other long-term receivables) are within the scope of ASC Topic 326. The Group assessed the credit loss for accounts receivable with similar risk characteristics on a pool basis. The credit loss assessment for each pool was mainly based on past collection experience, consideration of current and future economic conditions and changes in the Group’s collection trends. (h) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using actual cost on a weighted average basis. Net realizable value is the amount that can be realized from the sale of the inventory in the normal course of business after allowing for the costs of realization. 2. Summary of significant accounting policies (Continued) (i) Long-term investments The Group holds investments in privately held companies. The Group measures long-term equity investments, other than equity method investments, at fair value through earnings. For those investments over which the Group does not have significant influence and without readily determinable fair value, the Group elected to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of equity investments will be required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Management regularly evaluates the impairment of long-term equity investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognised equal to the excess of the investment costs over its fair value at the end of each reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. During the years ended December 31, 2021, 2022 and 2023, the Group recognized an impairment of nil, USD590,000 and nil, respectively. (j) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the asset at the end of the estimated useful life as a percentage of the original cost. If the Group commits to a plan to abandon a long-lived asset before the end of its previous estimated useful life, depreciation shall be revised to reflect a shortened useful life. Estimated useful lives Residual rate Office building 20 years 5 % Building decoration 10 years 5 % Servers and network equipment 3-5 years 5 % Computer equipment 5 years 5 % Furniture, fixtures and office equipment 3-5 years 5 % Motor vehicles 5 years 5 % Leasehold improvements Shorter of lease term or 3 years — Repair and maintenance costs are expensed as incurred. Expenditures that substantially increase an asset’s useful life are capitalized. Upon sale or disposal, gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income, the cost and related accumulated depreciation are removed from the consolidated balance sheets. 2. Summary of significant accounting policies (Continued) (k) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries, the VIE and VIE’s subsidiaries. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Group performs the quantitative impairment test by comparing the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired. If the carrying amount of a reporting unit exceeds its fair value, the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized as impairment. The Group’s goodwill was attributable to the Company as a whole. The Group applies the quantitative assessment for the impairment test of goodwill as of December 31, 2022 and 2023. The impairment test for goodwill determines the fair value of the reporting unit, the Company as a whole, and compares it to the carrying value of the assets and liabilities, including goodwill, of the reporting unit. The fair value of the Company was estimated by management using the discounted cash flow model derived from the long-term (five-year) cash flow projections, which included significant judgements and assumptions relating to revenue forecast and operating margins, discount rate that reflects market assessments of the time value and the specific risks relating to the Company, and cash flows beyond the five-year period are extrapolated using a terminal growth rate. No goodwill impairment losses were recognized for the years ended December 31, 2021, 2022 and 2023 based on the impairment test performed by the Group. (l) Intangible assets Intangible assets, which include land use rights, acquired computer software and audio-visual license, are carried at cost less accumulated amortization with no residual value and impairment loss, if any. Amortization of intangible assets is computed using the straight-line method over the estimated useful lives of the assets as follows: Estimated useful lives Land use rights 30 years Audio-visual license 9 years Acquired computer software 5 years Land use rights represent lease prepayments to the local government authorities, which were identified as operating lease assets. (m) Impairment of long-lived assets For other long-lived assets, the Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to be received from use of the assets and their eventual disposition at the lowest level of identifiable cash flows. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. If the Group identifies an impairment, the carrying value of the asset will be reduced to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. 2. Summary of significant accounting policies (Continued) (n) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. In regard to legal cost, the Group recorded such costs as incurred. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Group, but which will only be resolved when one or more future events occur or fail to occur. The Group’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Group or unasserted claims that may result in such proceedings, the Group, in consultation with its legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Group’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. (o) Operating leases Lessees are required to recognize an operating lease asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet under ASC Topic 842. Lessees shall follow the requirements to classify most leases as either financing or operating using principles similar to previous lease accounting. In the statement of comprehensive income, a lessee shall present both of the following: a) for finance leases, the interest expense on the lease liability and amortization of the operating lease asset are not required to be presented as separate line items and shall be presented in a manner consistent with how the entity presents other interest expense and depreciation or amortization of similar assets, respectively; b) for operating leases, lease expense shall be included in the lessee’s income from operations. The Group have elected the short-term lease exemption for all leases with a lease term of 12 months. Payments associated with short-term leases are recognized on a straight-line basis as an expense in profit or loss. The standard also requires a lessee to recognize a single lease cost related to operating lease, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The Group assesses, at contract inception, whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining the appropriate discount rate to use in calculating the present value of contractual lease payments, management regularly evaluates the lessee’s incremental borrowing rate, as the rate implicit in the lease cannot be readily determined. (p) Revenue recognition Revenue is recognized when or as the control of the services or goods is transferred to the customer. Depending on the terms of the contract and the laws that apply to the contract, control of the services and goods may be transferred over time or at a point in time. A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. Contract costs includes incremental costs of obtaining a contract and costs to fulfil a contract. The Group generates revenues from various streams. Net revenues presented in the consolidated statements of comprehensive income represent revenues from service and product sales net off sales discount, value-added tax and related surcharges. 2. Summary of significant accounting policies (Continued) (p) Revenue recognition (Continued) (I) Subscription revenues The Group operates a VIP membership program where VIP members can have access to high speed online acceleration services, online streaming and other access privileges. The membership fee is time-based and is collected up-front from subscribers. The terms of time-based subscriptions range from one month to twelve months, with the subscribers having the option to renew the contract. The receipt of subscription fee is initially recorded as contract liabilities. The Group satisfies its various performance obligations by providing services throughout the subscription period and revenue is recognized rateably over the period of subscription as services are rendered. Unrecognized portion beyond 12 months from balance sheet date is classified as a long-term liability. The Group evaluated the principal versus agent criteria and determined that the Group is the principal in the transaction and accordingly records revenue on a gross basis. In determining whether to report revenues gross for the amount of subscription revenue, the Group assesses whether it maintains the principal relationship with the VIP members, whether it bears the credit risk and whether it establishes prices for the end users. Service fees levied by online system and mobile payment channels (‘‘Payment handling charges’’) are recorded as the cost of revenues in the same period as the revenue for the membership fee is recognized. (II) Live streaming revenues The Group operates certain live streaming platforms where users can access the platform, view the live streaming content provided by performers, and purchase virtual gifts which they can grant to performers in the live streaming platform to show support for their favorite performers. Xunlei is the principal in the provision of the live streaming content and experience, which is considered as the performance obligation of the Group. The Group recognizes revenue from sales of virtual gifts to the viewers when the relevant virtual gifts are presented to the performers or over the duration of stated period of the time-based item. The Group does not have further obligations to the viewers after the virtual gifts are consumed immediately or after the stated period for time-based items, although the Group will continue to provide the live streaming content to the viewers in order to continue to generate sales of virtual gifts. (III) Cloud computing revenues On a monthly basis, the Group records the bandwidth it delivers and recognizes revenue from customers under contractual rates applied (price per Gigabyte (“GB”) of bandwidth multiplies total GBs of bandwidth per month). 2. Summary of significant accounting policies (Continued) (p) Revenue recognition (Continued) (IV) Other internet value-added services revenues (i) Advertising revenues Beijing Itui Online Network Technology Co., Ltd. (“Itui Online”), a company controlled by the Company’s principal shareholder has been handling substantially all of the Group’s advertising resources since May 2020, including negotiation and entering into contract with advertisers, matching the requirements of advertisers and dispatching the advertising content to Xunlei’s platforms, accordingly advertisers or advertising agencies are considered as customers of Itui Online and Itui Online is viewed as the customer of the Group. Revenue arising from this transaction is recognized monthly based on the data publicized on the platforms and pre-agreed sharing portion. (ii) Online games revenues The Group enters into a series of technical cooperation agreements with third party online game operators. Users access to the Group’s platform and purchase in-game virtual items which can then be used in games provided by the third-party online game operators. The Group provides the third-party online game operators with a portal which the online game operators can host the online games. The Group charges the online game operators based on a pre-determined portion of proceeds earned from paying users pursuant to the revenue sharing arrangements for the provision of portal and payment collection service to the online game operators. The third-party online game operators are the principal in the provision of games to users and the Group provides the relevant platform to the game operators, therefore, the game operators are viewed as the customers in these transactions. The service fees receivable from the third-party online game operators are variable, which are contingent upon future events (future cash proceeds paid by game players), and are recognized when the contingency is met provided that collectability is reasonably assured. (q) Sales and marketing expenses Sales and marketing expenses comprise primarily salaries and benefits of sales and marketing personnel and external advertising and market promotion expenses. The external advertising and market promotion expenses from operations amounted to approximately USD15,052,000, USD12,551,000 and USD29,140,000 for the years ended December 31, 2021, 2022 and 2023, respectively. (r) General and administrative expenses General and administrative expenses consist primarily of salaries and benefits (including related share-based compensation), depreciation of property and equipment, professional service fees, legal expenses and other administrative expenses. 2. Summary of significant accounting policies (Continued) (s) Research and development costs The Group incurred research and development costs to develop its acceleration products, live streaming platforms and bandwidth crowdsourcing technologies to enhance the competitive advantages of the Group’s key products. Costs incurred during the research phase are expensed as incurred. Costs incurred for the development of the downloading software, live streaming platforms and bandwidth crowdsourcing technologies prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. The development costs qualified for capitalization were immaterial for the periods presented. In addition, the Group incurred other research and development costs in relation to software used to support its operations. Any development costs qualified for capitalization were immaterial for the periods presented. (t) Taxation and uncertain tax positions Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements’ carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the difference is expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred tax assets if it is considered more likely than not that some portion, or all, of the deferred tax assets will not be realized. The estimation of future taxable income involves significant judgement and estimates. Based on management’s estimated future taxable income, management concluded that it is more likely than not that the net operating losses carried forward cannot be utilized prior to their respective expiration dates. The Group applied the ASC 740 “Income Taxes” regarding uncertain tax positions and evaluated its open tax positions that exist in each jurisdiction for each reporting period. If an uncertain tax position is taken or expected to be taken in a tax return, the tax benefit from that uncertain position is recognized in the Group’s consolidated financial statements if it is more likely than not that the position is sustainable upon examination by the relevant taxing authority. The Group did not have any significant uncertain tax position and there was no effect on its financial condition or results of operations as a result of applying the ASC 740 “ Income Taxes PRC Value-added Tax (“VAT”) VAT payable on goods sold or taxable labor services provided by a general VAT taxpayer for a taxable period is the net balance of the output VAT for the period after crediting the input VAT for the period. In addition to the product revenues currently subject to VAT at a rate of 13%, the Group’s revenue from subscription, live streaming, cloud computing services and other internet value-added services are subject to VAT at a rate of 6%. According to the policy of the PRC State Tax Bureau, enterprises that engage in postal services, telecommunication services and consumer services are entitled to claim 110%, 110% and 105% of the input tax incurred as tax credit in determining VAT payable for the years ended December 31, 2021, 2022 and 2023. 2. Summary of significant accounting policies (Continued) (u) Employee benefits Full-time employees of the Company’s subsidiaries, VIE and VIE’s subsidiaries in the PRC participate in a government mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the subsidiaries, VIE and VIE’s subsidiaries of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts from operations for such employee benefits, which are expensed as incurred, were USD12,411,000, USD14,266,000 and USD16,656,000 for the years ended December 31, 2021, 2022 and 2023, respectively. (v) Share-based compensation The Group measures share-based compensation based on the stock price at the grant date. As the Group has granted restricted shares with service-only condition, the Group elected to recognize compensation costs net of estimated forfeitures on a straight-line basis over the requisite service period, which is generally the same as the vesting period. The amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is vested at that date. (w) Government subsidies The Group receives subsidies from the local PRC government for general use or purchase of equipment. General-use subsidies which are not subject to any conditions or specific use requirements are recorded as subsidy income in the consolidated statements of comprehensive income. Subsidies for purchase of equipment are recorded as deferred government grant when received, and are recorded as other income over the expected useful life of the assets after the related equipment has been purchased. (x) Segment reporting The Group’s Chief Executive Officer has been identified as the chief operating decision maker, who reviews consolidated operating results of the Group when making decisions about allocating resources and assessing performance of the Group as a whole. The Group has internal reporting of revenues, costs and expenses that does not distinguish between segments, and reports costs and expenses by nature as a whole. The Group does not distinguish between markets or segments for the purpose of internal reporting. Management has determined that the Group operates and manages its business as a single segment, the Group’s long - lived assets are substantially located in the PRC, around 95%, 88% and 91% of revenues of the Group were derived from mainland China during the year ended December 31, 2021, 2022 and 2023, respectively. 2. Summary of significant accounting policies (Continued) (x) Segment reporting (Continued) An analysis of the different types of total revenues for the years ended December 31, 2021, 2022 and 2023 are summarized as follows: Revenue from operations Years ended December 31, (In thousands) 2021 2022 2023 Subscription revenue 91,174 100,557 119,343 Live streaming revenue and other internet value-added services (note a)and 53,614 122,372 122,157 Cloud computing services and product revenue (note b) 94,813 119,635 123,411 Total revenues 239,601 342,564 364,911 Notes: (a) Other internet value-added services mainly comprised online advertising, online games and other technical services. (b) Product revenue mainly comprised sales of OneThing Edge Cube and OneThing Edge Station devices and hard disks. (c) The total revenues were reclassified to present in three types for the year ended December 31, 2022, and accordingly the classification of total revenues has been adjusted retrospectively for the year ended December 31, 2021. (y) Net income per share Net basic income per share is computed by dividing net income attributable to holders of common shares by the weighted - average number of common shares outstanding during the year. Net diluted income per share is calculated by dividing net income attributable to common shareholders as adj |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents | |
Cash and cash equivalents | 3. Cash and cash equivalents Cash and cash equivalents represent cash on hand, cash held at bank, and time deposits placed with banks or other financial institutions, which have original maturities of three months or less. Cash and cash equivalents balance as of December 31, 2022 and 2023 primarily consist of the following currencies: December 31, 2022 December 31, 2023 USD USD (In thousands) Amount equivalent Amount equivalent RMB 699,666 100,461 648,445 91,553 USD 73,449 73,449 76,636 76,636 SGD 2,370 1,760 3,231 2,446 Hong Kong Dollar 1,223 157 1,275 163 Others Not applicable 1,327 Not applicable 4 Total 177,154 170,802 As of December 31, 2022 and 2023, included in the cash and cash equivalents are time deposits with original maturities of three months or less of USD54,350,000 and USD72,176,000, respectively. |
Short-term investments
Short-term investments | 12 Months Ended |
Dec. 31, 2023 | |
Short-term investments | |
Short-term investments | 4. Short-term investments (In thousands) December 31, 2022 December 31, 2023 Time deposits 51,044 51,176 Investments in financial instruments 32,582 49,902 Total 83,626 101,078 |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts receivable, net | |
Accounts receivable, net | 5. Accounts receivable, net (In thousands) December 31, 2022 December 31, 2023 Accounts receivable 31,192 32,232 Less: Allowance for current expected credit losses (1,429) (1,022) Accounts receivable, net 29,763 31,210 The following table presents movement in the allowance for current expected credit losses: (In thousands) December 31, 2021 December 31, 2022 December 31, 2023 Balance at beginning of the year 9,329 1,764 1,429 Additions 72 — 213 Reversals (481) (188) (189) Write-off (7,375) (2) (408) Exchange difference 219 (145) (23) Balance at end of the year 1,764 1,429 1,022 The accounts receivable due from the top 10 customers accounted for about 86% and 76% of the balance of accounts receivable as of December 31, 2022 and 2023, respectively. The following table summarizes customers with balances of accounts receivable which was greater than 10% of the Group’s total accounts receivable: December 31, 2022 December 31, 2023 Customer A 39 % 30 % Customer B 12 % * Customer C 17 % 18 % * |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventories | |
Inventories | 6. Inventories (In thousands) December 31, 2022 December 31, 2023 Hardware devices 532 2,049 Others 206 420 Less: Impairment (281) (250) Total 457 2,219 Note: The inventories written down was USD 15,000 and nil for the years ended December 31, 2022 and 2023, respectively. |
Prepayments and other assets
Prepayments and other assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and other assets | |
Prepayments and other assets | 7. Prepayments and other assets (In thousands) December 31, 2022 December 31, 2023 Current portion: Advances to suppliers (note a) 4,042 3,059 Receivable related to an asset disposal in 2019 3,316 3,247 Receivable from a business disposal in 2015 4,288 — Loans to employees (note b) 1,851 2,082 Rental and other deposits 1,397 1,561 Others 4,040 5,660 Less: Allowance for current expected credit losses (10,667) (6,186) Total of prepayments and other current assets 8,267 9,423 Non-current portion: Loans to employees, non-current portion (note b) 1,543 1,687 Advances to suppliers, non-current portion (note a) 594 266 Total of long-term prepayments and other assets 2,137 1,953 The following table presents movement in the allowance for current expected credit loss: (In thousands) December 31, 2021 December 31, 2022 December 31, 2023 Balance at beginning of the year 10,283 11,069 10,667 Additions 745 745 — Reversals (150) (197) (100) Write-off (54) — (4,234) Exchange difference 245 (950) (147) Balance at end of the year 11,069 10,667 6,186 Notes: (a) Advances to suppliers primarily include prepayments to bandwidth suppliers, prepayments for the construction and improvements related to Xunlei Tower and other prepaid expenses. (b) The Group entered into loan contracts with certain employees, under which the Group provided interest-free loans or low-interest loans to these employees. The loan amounts vary amongst different employees from repayable on demand to repayable in equal installments on a monthly basis over a term of 5 to 10 years . The balances classified as current represented loan amounts that are repayable on demand or repayable within the next twelve months from the balance sheet date. |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2023 | |
Long-term investments | |
Long-term investments | 8. Long-term investments (In thousands) December 31, 2022 December 31, 2023 Equity interests without a readily determinable fair value: Balance at beginning of the year 31,495 30,811 Additions (note a) — 1,418 Net unrealized gains on investments held 437 — Impairment on long-term investments (590) — Exchange difference (531) (95) Balance at end of the year 30,811 32,134 Details of the Group’s ownership of the long-term investments are as follows: Percentage of ownership of shares as of December 31, Investee 2022 2023 Equity method investment: Shenzhen Mojingou Information Services Co., Ltd. 28.77 % 28.77 % Equity interests without a readily determinable fair value: Guangzhou Yuechuan Network Technology Co., Ltd. (“Guangzhou Yuechuan”) (note b) 9.30 % — Chengdu Diting Technology Co., Ltd. 12.74 % 12.74 % Shanghai Guozhi Electronic Technology Co., Ltd. 16.80 % 16.80 % Guangzhou Hongsi Network Technology Co., Ltd. 19.90 % 19.90 % Xiamen Diensi Network Technology Co., Ltd. 14.25 % 14.25 % 11.2 Capital I, L.P. 2.03 % 2.03 % Cloudtropy 9.69 % 9.69 % Lexiang Technology Co., Ltd. (formerly named as “Shanghai Lexiang Technology Co., Ltd.”, “Lexiang”) (note c) 6.49 % 5.81 % Hangzhou Feixiang Data Technology Co., Ltd. 28.00 % 28.00 % Shenzhen Meizhi Interactive Technology Co., Ltd. (“Meizhi Interactive”) (note d) 9.40 % — Beijing Yunhui Tianxia Technology Co., Ltd. 13.70 % 13.70 % Yingshi Innovation Technology Co., Ltd. (formerly named as “Shenzhen Arashi Vision Interative Technology Co., Ltd.”) 8.73 % 8.73 % Beijing Cloudin Technology Co., Ltd. 4.12 % 4.12 % Quanxun Huiju Networking Technology (Beijing) Co., Ltd. (“Quanxun Huiju”) 5.40 % 5.40 % Blue Bayread Limited 1.63 % 1.63 % Clapper Media Group Inc. 9.58 % 9.58 % Beijing Yunshang Hemei Culture Media Co., Ltd. 10.00 % 10.00 % Beijing Xiaosheng Xiaoyi Technology Co., Ltd. (“Xiaosheng Xiaoyi”) (note a) — 20.00 % Notes : (a) In September 2023, the Group made an equity investment of USD 1,412,000 (equivalent to RMB 10,000,000 ) to acquire 20.00% equity interest of Xiaosheng Xiaoyi, which is a privately held company. (b) In October 2023, the Group disposed of its equity interest in Guangzhou Yuechuan, for which full impairment had been provided in 2018, at a consideration of RMB 1 . (c) In March 2023, the Group’s interest in Lexiang was diluted to 5.81% , as additional shares were issued by Lexiang, no changes in the carrying value in Lexiang was made as the related transaction did not provide observable price changes to the Group. (d) In May 2023, the Group disposed of its equity interest in Meizhi Interactive, for which full impairment had been provided in 2018, at a consideration of RMB 1 . |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property and equipment, net | |
Property and equipment, net | 9. Property and equipment, net Property and equipment consist of the following: (In thousands) December 31, 2022 December 31, 2023 Office building (note) 47,902 48,323 Servers and network equipment 15,065 15,471 Furniture, fixtures and office equipment 790 2,110 Computer equipment 1,624 1,811 Motor vehicles 449 517 Building decoration and leasehold improvements 8,705 8,725 Total original costs 74,535 76,957 Less: Accumulated depreciation (12,801) (15,704) Less: Accumulated impairment — (1,225) Total 61,734 60,028 Note: The construction of Xunlei Tower was completed in December 2022 and the ownership certificate of Xunlei Tower was obtained in March 2024. The impairment loss recognized for the years ended December 31, 2021, 2022 and 2023 was nil, nil and USD1,146,000, respectively. Depreciation expense recognized for the years ended December 31, 2021, 2022 and 2023 are summarized as follows: Years ended December 31, (In thousands) 2021 2022 2023 Costs of revenues 4,805 1,362 740 Research and development expenses 436 467 390 Sales and marketing expenses 10 9 7 General and administrative expenses 1,068 828 3,290 Total 6,319 2,666 4,427 |
Operating lease assets and leas
Operating lease assets and lease liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Operating lease assets and lease liabilities | |
Operating lease assets and lease liabilities | 10. Operating lease assets and lease liabilities The operating lease assets, represented the leased offices of the Group, are amortized over the lease terms, which are greater than 1 year but less than 3 years. Operating leases are as below: (In thousands) Office leases Net book amount as of January 1, 2022 27 Additions 920 Amortization (56) Effect of foreign currency exchange differences (26) Net book amount as of December 31, 2022 865 Additions 927 Amortization (551) Modification (652) Effect of foreign currency exchange differences (14) Net book amount as of December 31, 2023 575 The amortization expenses for long-term operating lease were USD1,934,000, USD56,000 and USD551,000 for the years ended December 31, 2021, 2022 and 2023, respectively. A charge of USD786,000, USD2,457,000 and USD1,645,000 were recognized in relation to short-term leases for the years ended December 31, 2021, 2022 and 2023, respectively. As of December 31, 2023, the future minimum payment under non-cancellable short-term operating leases was USD96,000. The weighted average discount rate related to operating leases was 5.4%, 5.4% and 5.1% as of December 31, 2021, 2022 and 2023, respectively. The weighted average remaining lease term were 0.8 year, 3.0 years and 2.0 years as of December 31, 2021, 2022 and 2023, respectively. The total cash payments in respect of operating lease were USD2,003,000, USD2,792,000 and USD2,386,000 for the years ended December 31, 2021, 2022 and 2023, respectively. The undiscounted cash payments for each of the next five years as of December 31, 2023 is: (In thousands) 2024 297 2025 166 2026 70 Total undiscounted payments 533 Less: effect of discounting (28) Discounted lease liabilities 505 |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets, net | |
Intangible assets, net | 11. Intangible assets, net December 31, 2022 2023 Net book Net book (In thousands) Cost Amortization value Cost Amortization value Land use rights 4,777 (1,498) 3,279 4,697 (1,629) 3,068 Audio - visual license 5,631 (2,884) 2,747 5,537 (3,484) 2,053 Acquired computer software 3,264 (2,744) 520 3,565 (2,989) 576 Total 13,672 (7,126) 6,546 13,799 (8,102) 5,697 Amortization expense recognized for the years ended December 31, 2021, 2022 and 2023 are summarized as follows: Years ended December 31 (In thousands) 2021 2022 2023 Cost of revenues 10 54 53 Research and development expenses 6 — — General and administrative expenses 1,113 1,032 1,048 Total 1,129 1,086 1,101 The estimated aggregate amortization expense for each of the next five years as of December 31, 2023 is: (In thousands) Intangible assets 2024 1,016 2025 925 2026 913 2027 366 2028 and thereafter 2,477 The weighted average amortization periods of intangible assets as of December 31, 2022 and 2023 are as below: (In year) December 31, 2022 December 31, 2023 Land use rights 30 30 Audio-visual license 9 9 Acquired computer software 5 5 Total weighted average amortization periods 10 10 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill. | |
Goodwill | 12. Goodwill December 31, December 31, (In thousands) 2022 2023 Beginning balance 23,136 21,179 Foreign currency translation adjustment (1,957) (353) Accumulated impairment — — Ending balance 21,179 20,826 |
Contract liabilities
Contract liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Contract liabilities | |
Contract liabilities | 13. Contract liabilities (In thousands) December 31, 2022 December 31, 2023 Contract liabilities (note a) Membership subscription 37,721 35,969 Live streaming 969 830 Others 1,153 422 Total 39,843 37,221 Less: non-current portion (note b) (876) (846) Contract liabilities, current portion 38,967 36,375 Notes: (a) Contract liabilities were related to unsatisfied performance obligations at the end of the year. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following period. The amount of revenue recognized that was included in contract liabilities balance at the beginning of the year was USD 35,380,000 and USD 38,016,000 for the years ended December 31, 2022 and 2023, respectively . (b) As of December 31, 2022 and 2023, the non-current portion consists of membership subscription of USD 876,000 and USD 846,000 , respectively. |
Accrued liabilities and other p
Accrued liabilities and other payables | 12 Months Ended |
Dec. 31, 2023 | |
Accrued liabilities and other payables | |
Accrued liabilities and other payables | 14. Accrued liabilities and other payables (In thousands) December 31, 2022 December 31, 2023 Payroll and welfare 23,277 24,702 Tax levies 4,178 7,879 Payables related to Xunlei Kankan 2,418 — Payables for advertisement 1,980 3,473 Legal and litigation related expenses (note 25) 634 1,168 Professional service fees 1,656 1,273 Agency commissions and rebates from online advertising 2,525 — Payables for office building 8,528 8,623 Payables related to share repurchase 1,120 2,774 Others 3,122 3,816 Total 49,438 53,708 |
Bank borrowings
Bank borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Bank borrowings | |
Bank borrowings | 15. Bank borrowings December 31, December 31, (In thousands) 2022 2023 Bank borrowings, current portion 7,024 6,906 Bank borrowings, non-current portion 24,750 15,539 Total 31,774 22,445 The bank borrowings were borrowed by Shenzhen Xunlei for the construction of Xunlei Tower, which was pledged by the land use rights and Xunlei Tower. The interest expense of USD1,000,000 and USD1,593,000 has been capitalized for the years ended December 31, 2021 and 2022, the interest expense of USD1,360,000 has been expensed for the year ended December 31, 2023, respectively. The capitalized interest amount included in the carrying amount of Xunlei Tower is depreciated according to the Group’s accounting policies as stated in note 2(j). The bank borrowings are denominated in RMB, and the interest rates are calculated based on the Loan Prime Rate plus 15 , 30 or 98.5 basis points. As of December 31, 2023, the bank borrowings will be due according to the following schedule: (In thousands) Principal amounts Within 1 year 6,906 Between 1 to 2 years 6,906 Between 2 to 3 years 6,906 Between 3 to 4 years 1,727 |
Common shares
Common shares | 12 Months Ended |
Dec. 31, 2023 | |
Common shares. | |
Common shares | 16. Common shares The Company’s Memorandum and Articles of Association authorizes the Company to issue 1,000,000,000 shares of USD0.00025 par value per common share as of December 31, 2023. Each common share is entitled to one vote. The holders of common shares are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, which is subject to the approval by the holders of the common shares representing a majority of the aggregate voting power of all outstanding shares. As of December 31, 2022 and 2023, there were 325,047,736 and 323,525,556 common shares outstanding, respectively. |
Repurchase of shares
Repurchase of shares | 12 Months Ended |
Dec. 31, 2023 | |
Repurchase of shares | |
Repurchase of shares | 17. Repurchase of shares In March 2022, the Board of Directors of the Company authorized another share repurchase program (the “2022 Share Buyback Program”), whereby the Company may repurchase up to USD20 million of its shares over the next twelve months through various legally permissible means, including open market purchases at prevailing prices and algorithmic trading, privately negotiated transactions, block trades, or other methods depending on market conditions and in compliance with applicable regulations. During the year ended December 31, 2023, 569,748 ADSs (2022: 4,409,974) were purchased at an aggregate consideration of approximately USD1.1 million (2022: USD6.7 million) under the 2022 Share Buyback Program. In June 2023, the Board of Directors of the Company authorized another share repurchase program (the “2023 Share Buyback Program”), whereby the Company may repurchase up to USD20 million of common shares or ADSs over the next twelve months through various legally permissible means, including open market purchases at prevailing prices and algorithmic trading, privately negotiated transactions, block trades, or other methods depending on market conditions and in compliance with applicable regulations. During the year ended December 31, 2023, 2,037,721 ADSs were purchased at an aggregate consideration of approximately USD3.6 million under the 2023 Share Buyback Program. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-based compensation | |
Share-based compensation | 18. Share-based compensation 2020 share incentive plan In June 2020, the Group terminated its share incentive plan adopted in December 2010, November 2013, April 2014 (the “Terminated Plans”) and adopted a 2020 share incentive plan, which is referred to as the 2020 Share Incentive Plan (the “2020 Plan”). The awards that are granted and outstanding under the Terminated Plans remain effective under the 2020 Plan, subject to any amendment and modification to the original award agreements that the Company shall determine. During the years ended December 31, 2021, 2022 and 2023, the number of vested shares relating to the Terminated Plans was 426,000, 330,000 and 320,000, the number of forfeited shares relating to the Terminated Plans was 210,000, nil and nil, respectively. As of December 31, 2023, the number of unvested shares relating to the Terminated Plans was nil. Under the 2020 Plan, the maximum aggregate number of shares of the Company that may be granted is 31,000,000, which consists of (i) 21,039,742 common shares reserved for issuance, which were previously reserved under the Terminated Plans but not granted under the Terminated Plans, (ii) 9,667,230 common shares repurchased pursuant to the share repurchase programs authorized by the Company, and (iii) 293,028 common shares reserved for issuance under the 2020 Plan. In March 2023, the Board of Directors of the Company amended and restated the 2020 Plan, the maximum aggregate number of shares of the Company available for grant of awards was increased from 31,000,000 to 46,561,200. The number of shares available for such grants as of December 31, 2023 is 4,155,445 (2022: 2,202,325). As of December 31, 2023, the restricted shares units granted to employees and officers (excluding those forfeited) under the 2020 Plan vest as follows: (1) 15,059,340 of these restricted shares should be vested over a two-year schedule in which half of the restricted shares shall be vested upon the first and second anniversary of the grant day, respectively. (2) 90,000 of these restricted shares should be vested over a three-year schedule in which one-third of the restricted shares shall be vested upon the first, second and third anniversary of the grant day, respectively. Among which, 30,000 shares were vested in an accelerated manner in December 2021. (3) 25,141,915 of these restricted shares should be vested over a three-year schedule in which two-third of the restricted shares shall be vested upon the second anniversary and one-third of the restricted shares shall be vested upon the third anniversary of the grant day, respectively. Among which, 1,699,990 shares, 133,335 shares and 333,330 shares were vested in an accelerated manner in June 2022, November 2022 and August 2023, respectively. (4) 500,000 of these restricted shares shall be vested over a five-year schedule in which one-fifth of the restricted shares shall be vested upon the first, second, third, fourth and fifth anniversary of the grant day, respectively. Among which, 100,000 shares were vested in an accelerated manner in December 2021. (5) 500 of these restricted shares should be vested immediately. 18. Share-based compensation (Continued) 2020 share incentive plan (Continued) A summary of the restricted shares activities under the 2020 Plan for the years ended December 31, 2021, 2022 and 2023 is presented below: Weighted-average Number of grant-date fair restricted shares value (USD) Unvested as of January 1, 2021 — Granted 31,091,840 0.83 Vested (2,429,965) Forfeited (2,777,500) Unvested as of December 31, 2021 25,884,375 Expected to vest as of December 31, 2021 19,413,281 Unvested as of January 1, 2022 25,884,375 Granted 2,200,000 0.31 Vested (9,509,660) Forfeited (1,716,665) Unvested as of December 31, 2022 16,858,050 Expected to vest as of December 31, 2022 12,643,538 Unvested as of January 1, 2023 16,858,050 Granted 12,485,750 0.36 Vested (11,195,165) Forfeited (491,670) Unvested as of December 31, 2023 17,656,965 Expected to vest as of December 31, 2023 13,242,724 Based upon the Company’s historical and expected forfeitures for restricted share units granted, the directors of the Company estimated that its future forfeiture rate would be 25% for employees and management. As of December 31, 2023, the total unrecognized compensation expense relating to the restricted shares was USD5,161,700 (2022: USD10,161,200). Total compensation costs recognized for the years ended December 31, 2021, 2022 and 2023 are as follows: Years ended December 31, (In thousands) 2021 2022 2023 Sales and marketing expenses 59 — 48 General and administrative expenses 4,682 6,855 8,113 Research and development expenses 1,429 1,329 1,515 Total 6,170 8,184 9,676 Note: For the year ended December 31, 2021, 2022 and 2023, the compensation costs recognized in relation to the shares awarded under the Terminated Plans amounted to USD800,700, USD748,800 and USD352,000, respectively. |
Costs of revenues
Costs of revenues | 12 Months Ended |
Dec. 31, 2023 | |
Costs of revenues. | |
Costs of revenues | 19. Costs of revenues Years ended December 31, (In thousands) 2021 2022 2023 Bandwidth costs 80,720 104,580 112,522 Revenue-sharing from live streaming business 26,506 78,636 67,302 Payment handling charges 3,066 6,500 8,494 Cost of inventories sold 1,516 2,228 5,911 Depreciation of servers and other equipment 4,805 1,363 740 Other costs (note) 1,990 6,747 5,680 Total 118,603 200,054 200,649 Note: Other costs mainly included content review costs and technical service costs. |
Other income, net
Other income, net | 12 Months Ended |
Dec. 31, 2023 | |
Other income, net | |
Other income, net | 20. Other income, net Years ended December 31, (In thousands) 2021 2022 2023 Gains from reversal of long outstanding payables — 3,239 6,831 Investment income from short-term investments (note) 2,486 2,903 4,354 Government subsidy income 3,206 2,377 2,360 Exchange (losses)/gains, net (1,205) 4,494 1,693 VAT deduction 818 1,220 840 Net unrealized gains arising from long-term investments — 437 — Impairment on long-term investments — (590) — Rental income — — 199 Others (627) (535) 627 Total 4,678 13,545 16,904 Note: For the years ended December 31, 2021, 2022 and 2023, investment income from short-term investments comprised interest income of USD599,000, USD361,000 and USD1,389,000 from time deposits with original maturities of more than three months but within one year, and investment income of USD1,888,000, USD2,543,000 and USD2,965,000 from investments in financial instruments, respectively. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2023 | |
Taxation | |
Taxation | 21. Taxation (i) Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. Additionally, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. (ii) British Virgin Islands (“BVI”) Subsidiaries in the BVI are exempted from income tax on its foreign-derived income in the BVI. There are no withholding taxes in the BVI. (iii) Hong Kong Subsidiaries in Hong Kong are subject to 16.5% income tax on their taxable income generated from operations in Hong Kong for the years ended December 31, 2021, 2022 and 2023, respectively. 21. Taxation (Continued) (iv) Singapore Subsidiaries incorporated in Singapore were subject to 17% of their taxable income. (v) PRC Enterprise Income Tax (“EIT”) The EIT is calculated based on the taxable income determined under the PRC laws and accounting standards. Under the EIT Law, foreign invested enterprises and domestic enterprises are subject to a unified EIT rate of 25%. In accordance with the implementation rules of the EIT Law, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15%. Shenzhen Xunlei, Onething, Wangwenhua and Xunlei Computer have been recognized as HNTE and entitled to preferential tax rate of 15% for the years ended December 31, 2021, 2022 and 2023. In addition, Onething was established in Qianhai Shenzhen Hongkong Modern Service Industry Cooperation Zone and met the requirements set out by the local authorities, accordingly it is also entitled to a preferential tax rate of 15% for the years ended December 31, 2021, 2022 and 2023. Jiangxi Node was qualified for a preferential tax rate of 15% for the years ended December 31, 2021, 2022 and 2023. The preferential tax rate is awarded to companies which are located in the West Regions of China and operate in certain encouraged industries. This qualification needs to be assessed on an annual basis. Certain subsidiaries of the Group or VIE’s subsidiaries in the PRC have been granted certain tax concessions to small scale entities by tax authorities in the PRC whereby the subsidiaries operating in the respective region are entitled to tax concessions. Jiangxi Node was also qualified for small scale entities for the year ended December 31, 2023, it elected to apply the tax concession accordingly. The remaining PRC subsidiaries and VIE’s subsidiaries are subject to a 25% EIT rate. According to a policy of the PRC State Tax Bureau, enterprises that engage in research and development activities are entitled to claim 175% of the research and development expenses incurred in a year as tax deductible expenses in determining their tax assessable profits for that year (“Super Deduction”) from January 1, 2018. In addition, enterprises that engage in research and development activities are allowed to claim 200% of the research and development expenses incurred during October 1, 2022 to December 31, 2023 as tax deductible expenses in determining their tax assessable profits, based on the policy announced by the PRC State Tax Bureau in September 2022 and March 2023. In addition, according to the EIT Law and its implementation rules, foreign enterprises, which have no establishment or place in the PRC but derive dividends, interest, rents, royalties and other income (including capital gains) from sources in the PRC are subject to PRC withholding tax, or WHT, at 10% (a further reduced WHT rate may be available according to the applicable double tax treaty arrangement). The 10% WHT is generally applicable to any dividends to be distributed from Giganology Shenzhen and Xunlei Computer to the Company out of any profits of Giganology Shenzhen and Xunlei Computer derived after January 1, 2008. Up to December 31, 2023, both Giganology Shenzhen and Xunlei Computer did not declare any dividend to the parent company and have determined that they have no present plan to declare and pay any dividends. The Group currently plans to continue to reinvest its subsidiaries’ undistributed earnings, if any, in its operations in China indefinitely. Accordingly, no withholding income tax was accrued or required to be accrued for the years ended December 31, 2021, 2022 and 2023. 21. Taxation (Continued) (v) Moreover, the current EIT Law treats enterprises established outside of China with “effective management and control” located in the PRC as PRC resident enterprises for tax purposes. The term “effective management and control” is generally defined as exercising overall management and control over the business, personnel, accounting, properties etc. of an enterprise. The Company, if considered a PRC resident enterprise for tax purposes, would be subject to the PRC EIT at the rate of 25% on its worldwide income for the period after January 1, 2008. As of December 31, 2022 and 2023, the Company has not accrued for PRC tax on such basis. The Company will continue to monitor its tax status. The current and deferred portions of income tax (benefits)/expenses included in the consolidated statements of operations are as follows: Years ended December 31, (In thousands) 2021 2022 2023 Current income tax expenses 53 4,450 4,559 Deferred income tax benefits (178) (382) (428) Income tax (benefits)/expenses (125) 4,068 4,131 The aggregate amount and per share effect of the tax holidays and concession are as follows: Years ended December 31, 2021 2022 2023 Aggregate dollar effect (in thousands) 4,100 5,243 5,121 Per share effect—basic 0.01 0.02 0.02 Per share effect—diluted 0.01 0.02 0.02 The reconciliation of total tax (benefits)/expenses computed by applying the respective statutory income tax rates to pre-tax income is as follows: Years ended December 31, (In thousands) 2021 2022 2023 Income tax expenses/(benefits) at PRC statutory rate (based on statutory tax rate applicable to enterprises in China) 246 5,047 3,965 Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC 2,571 1,640 1,615 Non-deductible expenses 47 468 306 Effect of Super Deduction (2,262) (2,594) (3,609) Effect of tax holidays and tax concessions (4,100) (5,243) (5,121) Change in valuation allowance of deferred tax assets 3,507 4,709 7,170 Others (134) 41 (195) Income tax (benefits)/expenses (125) 4,068 4,131 21. Taxation (Continued) (v) The tax effects of temporary differences that give rise to the deferred tax assets and liabilities balances of December 31, 2022 and 2023 are as follows: (In thousands) December 31, 2022 December 31, 2023 Deferred tax assets, non-current portion: Net operating losses carried forward (note a) 41,240 49,921 Impairment of long-term equity investments 3,972 493 Provision of allowance for expected credit losses 1,841 1,071 Others 383 861 Valuation allowance (note b) (47,223) (51,868) Deferred tax assets, net 213 478 Deferred tax liabilities: Deferred credit arising from an asset acquisition (687) (513) Notes: (a) As of December 31, 2023, the accumulated net operating loss of USD 5,795,000 of the Group’s subsidiaries incorporated in Hong Kong can be carried forward indefinitely to offset future taxable income, the remaining accumulated net operating loss of USD 241,049,000 , mainly arose from the Company’s subsidiaries, the VIE and VIE’s subsidiaries established in the PRC, can be carried forward to offset future taxable income and will expire during the period from 2024 to 2030. (b) The deferred tax liabilities balances are expected to be recoverable as follows: (In thousands) December 31, 2022 December 31, 2023 Within one year 165 162 After one year 522 351 Total 687 513 Movement of valuation allowance is as follows: Years ended December 31, (In thousands) 2021 2022 2023 Beginning balance 40,924 45,580 47,223 Additions 3,507 5,931 7,406 Reversals — (1,222) (236) Exchange difference 1,149 (3,066) (2,525) Ending balance 45,580 47,223 51,868 For the years ended December 31, 2021, 2022 and 2023, valuation allowance was provided for net operating loss carryforwards from certain subsidiaries, the VIE and VIE’s subsidiaries because it was more likely than not that such deferred tax assets will not be realized based on the Group’s estimate of future taxable income of those companies. As of December 31, 2023, the tax returns of the Group’s PRC subsidiaries, VIE and VIE’s subsidiaries for tax years 2019 through 2023 are still open to examination, the tax returns of FUNI for tax years 2022 and 2023 are still open to examination. |
Basic and diluted net income pe
Basic and diluted net income per share | 12 Months Ended |
Dec. 31, 2023 | |
Basic and diluted net income per share | |
Basic and diluted net income per share | 22. Basic and diluted net income per share Basic and diluted net income per share for the years ended December 31, 2021, 2022 and 2023 are calculated as follows: (Amounts expressed in thousands of USD, except Years ended December 31, for number of shares and per share data) 2021 2022 2023 Numerator: Net income 1,108 21,347 14,266 Less: Net (loss)/income attributable to the non-controlling interest (83) (116) 41 Net income attributable to Xunlei Limited’s common shareholders for basic/dilutive net income per share calculation 1,191 21,463 14,225 Denominator: Weighted average number of common shares outstanding, basic 334,707,559 336,040,378 326,390,687 Dilutive effect of restricted share units 1,262,221 195,123 458,815 Weighted average number of common shares outstanding, diluted 335,969,780 336,235,501 326,849,502 Basic net income per share 0.0036 0.0639 0.0436 Diluted net income per share 0.0035 0.0638 0.0435 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Related party transactions | 23. Related party transactions The table below sets forth the related parties and their relationships with the Group: Related party Relationship with the Group Aiden & Jasmine Limited Shareholder of the Company Millet Technology Co., Ltd. (“Xiaomi Technology”) (note) Guangzhou Millet Information Service Co., Ltd. (“Guangzhou Millet”) (note) Shenzhen Xiaomi Technology Co., Ltd. (“Shenzhen Xiaomi”) (note) Beijing Xiaobu Technology Co., Ltd. (“Beijing Xiaobu”) Company owned by the principal shareholder of the Company Sungai Pte. Ltd. (“Sungai”) Company owned by the principal shareholder of the Company Beijing Itui Technology Co., Ltd. (“Beijing Itui”) Company owned by the principal shareholder of the Company Itui Online Company owned by the principal shareholder of the Company Chizz (HK) Limited (“Chizz”) Company owned by the principal shareholder of the Company Note: In April 2020, Best Ventures Limited (“Best Ventures”, formerly known as Xiaomi Ventures Limited) ceased to be the shareholder of the Company as Best Ventures together with certain shareholders of the Company exchanged their common shares of the Company for the shares of Itui International Inc. (“Itui”). In addition, Best Ventures entitled to certain veto rights in determining Itui’s voting on the Company. As a result, Best Ventures and the companies controlled by Best Ventures continued to be related parties of the Company. 23. Related party transactions (Continued) During the years ended December 31, 2021, 2022 and 2023, significant related party transactions were as follows: Years ended December 31, (In thousands) 2021 2022 2023 Revenue from cloud computing services Xiaomi Technology 2,798 4,978 7,604 Beijing Itui 821 592 358 Revenue from advertising Itui Online 11,648 7,804 8,941 Shenzhen Xiaomi 380 112 13 Revenue from technical services Guangzhou Millet 1,245 — — Shenzhen Xiaomi 1,392 2,505 354 Bandwidth costs Quanxun Huiju 730 — — Interest income Chizz 176 626 724 As of December 31, 2022 and 2023, the amounts due from/to related parties were as follows: (In thousands) December 31, 2022 December 31, 2023 Amounts due from related parties - current Accounts receivable Itui Online 7,910 9,061 Shenzhen Xiaomi 1,378 705 Xiaomi Technology 1,871 1,831 Beijing Xiaobu 1,419 394 Beijing Itui 537 333 Sungai. 92 — Other receivables Chizz (note) 19,689 300 Other related parties (individual balance was less than USD10) 21 20 Total 32,917 12,644 Amounts due from a related party - non-current Other receivables Chizz (note) — 19,619 Total — 19,619 Note: In September 2021, Xunlei Network provided a loan amounted to USD20 million to Chizz at an interest rate of 3% per annum for a term of 2 years. The loan was extended for another 2 years at an interest rate of 5.10% per annum in September 2023. (In thousands) December 31, 2022 December 31, 2023 Amounts due to related parties Other payables Aiden & Jasmine Limited 1,560 — Total 1,560 — |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair value measurements | |
Fair value measurements | 24. Fair value measurements ASC 820-10 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2 — Include other inputs that are directly or indirectly observable in the marketplace or based on quoted price in markets that are not active Level 3 — Unobservable inputs which are supported by little or no market activity and are significant to the overall fair value measurement ASC 820-10 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The following table sets forth the financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2022 and 2023. Fair value measurements as of December 31, 2022 Quoted prices Significant in active market other Significant for identical observable unobservable assets inputs inputs (In thousands) Total (Level 1) (Level 2) (Level 3) Short-term investments: Investments in structured deposits and wealth management products 32,582 — 32,582 — Fair value measurements as of December 31, 2023 Quoted prices Significant in active market other Significant for identical observable unobservable assets inputs inputs (In thousands) Total (Level 1) (Level 2) (Level 3) Short-term investments: Investments in structured deposits and wealth management products 49,902 — 49,902 — Investments in privately held companies for which the Company elected to record using the measurement alternative are re-measured on a non-recurring basis, and are categorized within Level 3 under the fair value hierarchy. The values are estimated based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs including volatility, as well as rights and obligations of the securities. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies | |
Commitments and contingencies | 25. Commitments and contingencies Bandwidth purchase commitments The Group purchases bandwidth in the PRC under non-cancellable contracts expiring on different dates. Payments under purchase of bandwidth are expensed on a straight-line basis over the duration of the respective periods. As of December 31, 2023, future minimum payments under non-cancellable bandwidth contracts consist of the following: (In thousands) December 31, 2023 2024 195 Capital commitments As of December 31, 2023, the Group has unconditional purchase obligations for office building and office equipment that had not been recognized as follows: (In thousands) December 31, 2023 2024 7,851 2025 and after 59 7,910 Litigations The Group is involved in a number of cases pending in various courts. These cases are substantially related to alleged copyright infringement as well as routine and incidental matters to its business, among others. Adverse results in these lawsuits may include awards of damages and may also result in, or even compel, a change in the Group’s business practices, which could impact the Group’s future financial results. The Group had incurred USD997,000, USD188,000 and USD935,000 legal and litigation related expenses for the years ended December 31, 2021, 2022 and 2023, respectively. Up to April 23, 2024, which is the date when the consolidated financial statements were issued, the Group had 14 lawsuits pending against the Group, relating to the alleged copyright infringement and claims for other damages, with an aggregate claimed amount of approximately RMB20.1 million (USD2.9 million) which occurred before December 31, 2023 (2022: USD0.8 million). The Group had accrued for USD1,168,000 litigation related expenses in “Accrued liabilities and other payables” in the consolidated balance sheet as of December 31, 2023 (2022: USD634,000), which is the most probable and reasonably estimable outcome. The Group estimated the litigation compensation based on judgments handed down by the court, out-of-court settlements of similar cases as well as advices from the Group’s legal counsels. The Group is in the process of appealing certain judgments for which the losses had been accrued. Although the results of unsettled litigation and claims cannot be predicted with certainty, the Group does not expect that the outcome of the 14 lawsuits will result in the amounts accrued materially different from the range of reasonably possible losses. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of recorded accrual, with respect to loss contingencies for asserted legal and other claims. However, the outcome of litigation is inherently uncertain. If one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be materially adversely affected. |
Certain risks and concentration
Certain risks and concentration | 12 Months Ended |
Dec. 31, 2023 | |
Certain risks and concentration | |
Certain risks and concentration | 26. Certain risks and concentration PRC regulations Current PRC laws and regulations place certain restrictions on foreign ownership of companies that engage in internet businesses. Specifically, foreign ownership in an internet content provider or other value - added telecommunication service providers may not exceed 50%. The Group conducts its operations in China principally through contractual arrangements among Giganology Shenzhen, its wholly - owned PRC subsidiary, Shenzhen Xunlei and its shareholders. Shenzhen Xunlei holds the licenses and permits necessary to conduct its businesses in China and hold various operating subsidiaries that conduct a majority of its operations in China. The Company conducts substantially all of its operations in China through, Shenzhen Xunlei, a variable interest entity, which it consolidates as a result of a series contractual arrangements entered. If the Company had ownership of Shenzhen Xunlei, it would be able to exercise its rights as a shareholder to effect changes in the board of directors of Shenzhen Xunlei, which in turn could effect changes at the management level, subject to any applicable fiduciary obligations. However, under the current contractual arrangements, it relies on Shenzhen Xunlei and its shareholders’ performance of their contractual obligations to exercise effective control. In addition, its operating contract with Shenzhen Xunlei has a term of ten years, which is subject to Giganology Shenzhen’s unilateral termination right. None of Shenzhen Xunlei or its shareholders may terminate the contracts prior to the expiration date. Further, the Group believes that the contractual arrangements among Giganology Shenzhen, Shenzhen Xunlei and its shareholders are in compliance with PRC law and are legally enforceable. However, the Chinese government may issue from time to time new laws or new interpretations on existing laws to regulate this industry. Regulatory risk also encompasses the interpretation by the tax authorities of current tax laws, and the Group’s legal structure and scope of operations in the PRC, which could be subject to further restrictions resulting in limitations on the Company’s ability to conduct business in the PRC. The PRC government may also require the Company to restructure the Group’s operations entirely if it finds that its contractual arrangements do not comply with applicable laws and regulations. Furthermore, it could revoke the Group’s business and operating licenses, require it to discontinue or restrict its operations, restrict its right to collect revenues, block its website, require it to restructure its operations, impose additional conditions or requirements with which the Group may not be able to comply, or take other regulatory or enforcement actions against the Group that could be harmful to its business. The imposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct the Group’s business. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of Shenzhen Xunlei and its subsidiaries or the right to receive their economic benefits, the Group would no longer be able to consolidate Shenzhen Xunlei and its subsidiaries. The Group does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, Giganology Shenzhen or Shenzhen Xunlei. As stated above, Shenzhen Xunlei holds assets that are important to the operation of the Group’s business, including patents for proprietary technology, related domain names and trademarks. If Shenzhen Xunlei or its subsidiaries falls into bankruptcy and all or part of its assets become subject to liens or rights of third-party creditors, the Group may be unable to conduct its business activities in China, which could have a material adverse effect on the Group’s future financial position, results of operations or cash flows. However, the Group believes this is a normal business risk many companies face. The Group will continue to closely monitor the financial conditions of Shenzhen Xunlei and its subsidiaries. Shenzhen Xunlei and its subsidiaries’ assets comprise both recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets include intangible assets, purchased property and equipment. The balances of these assets held by Shenzhen Xunlei and its subsidiaries are included in “property and equipment, net” and “intangible assets, net” in the consolidated balance sheets and specifically in the VIE table on the following page. The unrecognized revenue-producing assets mainly consist of license, patents, trademarks, and domain names which are not recorded in the financial statement as they did not meet the recognition criteria set in ASC 350-30-25. The licenses stated above primarily consist of licenses that grant Shenzhen Xunlei and its subsidiaries the right to produce and broadcast internet, radio, and television programs. One of them is the ICP licenses as described in note 1. 26. Certain risks and concentration (Continued) PRC regulations (Continued) As of December 31, 2023, Shenzhen Xunlei and its subsidiaries held patents granted in the PRC and in the United States. Presently, certain patents applications are being examined by the State Intellectual Property Office of the PRC. As of December 31, 2023, Shenzhen Xunlei and its subsidiaries have applied to register trademarks, of which the Company has received registered trademarks in different applicable trademark categories, including registered with World Intellectual Property Organization. The following financial information of the consolidated VIEs (including VIE and VIE’s subsidiaries) was included in the accompanying consolidated financial statements, before elimination of balances with the Company and its subsidiaries, as of and for the years ended: As of December 31, (In thousands) 2022 2023 Current assets: Cash and cash equivalents 52,142 37,286 Short-term investments — 14,825 Accounts receivable, net 29,162 27,851 Amount due from group companies 5,326 5,278 Due from related parties 13,121 12,330 Inventories 457 2,219 Prepayments and other current assets 2,574 2,579 Total current assets 102,782 102,368 Non-current assets: Long-term investments 5,345 6,668 Property and equipment, net 61,545 59,882 Intangible assets, net 6,546 5,697 Goodwill 21,179 20,826 Long-term prepayments and other assets 2,094 1,928 Operating lease assets 865 575 Restricted cash 7,654 — Total assets 208,010 197,944 Current liabilities: Accounts payable 23,398 21,517 Amount due to group companies 71,925 93,740 Bank borrowings 7,024 6,906 Contract liabilities 37,781 34,723 Income tax payable 3,342 4,739 Accrued liabilities and other payables 43,446 42,035 Lease liabilities, current portion 283 276 Total current liabilities 187,199 203,936 Non-current liabilities: Contract liabilities 876 846 Deferred tax liabilities 687 513 Amount due to group companies 97,617 68,902 Bank borrowings 24,750 15,539 Lease liabilities 299 229 Total liabilities 311,428 289,965 26. Certain risks and concentration (Continued) PRC regulations (Continued) Years ended December 31, (In thousands) 2021 2022 2023 Third-party revenues 228,736 301,853 330,860 Third-party costs of revenues (109,722) (171,116) (177,060) Inter-company operating expenses (8,032) (4,863) (12,896) Third-party operating expenses (110,367) (115,578) (139,613) Net income attributable to Xunlei Limited 2,913 11,136 6,995 Years ended December 31, (In thousands) 2021 2022 2023 Purchases of goods and services from group companies — (29,738) — Sales of goods and services to group companies — — 217 Other operating activities with external parties 24,945 54,684 27,634 Net cash generated from operating activities 24,945 24,946 27,851 Other investing activities with external parties (19,417) (8,801) (21,985) Net cash used in investing activities (19,417) (8,801) (21,985) Loans from group companies 23,527 25,580 437 Repayment of loans to group companies (24,425) (10,830) (19,285) Other financing activities with external parties (223) 13,388 (8,837) Net cash (used in)/generated from financing activities (1,121) 28,138 (27,685) 4,407 44,283 (21,819) Foreign exchange risk The Group’s financing activities are denominated mainly in USD and RMB. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC and exchange of foreign currencies into the RMB require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The revenues and expenses of the Company’s subsidiaries incorporated in the PRC, the VIE and VIE’s subsidiaries are generally denominated in RMB and their assets and liabilities are denominated in RMB. Concentration of customer risk The top 10 customers accounted for approximately 35%, 33% and 31% of the net revenues for the years ended December 31, 2021, 2022 and 2023, respectively. For the years ended December 31, 2021, 2022 and 2023, revenue from Customer A was USD31.4 million, USD49.4 million and USD53.9 million, accounted for approximately 13%, 14% and 15% of the Group’s total revenues, respectively. Other than this, no revenue derived from transactions with any other single customer represented 10% or more of the Group’s total revenues. Credit risk As of December 31, 2022 and 2023, substantially all of the Group’s cash and cash equivalents, restricted cash and short-term investments were held at reputable financial institutions in the jurisdictions where the Company, the Company’s subsidiaries, the VIE and VIE’s subsidiaries are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has not experienced any losses on its deposits of cash and cash equivalents, restricted cash and short-term investments. 26. Certain risks and concentration (Continued) Credit risk (Continued) Prior to entering into sales agreements, the Group performs ongoing credit assessments of its customers, taking into account their financial position, credit history and other factors such as current market conditions. Further, the Group has not experienced any significant bad debts with respect to its accounts receivable for the years ended December 31, 2021, 2022 and 2023. The Group is exposed to credit risk in relation to other assets comprised of due from related parties and other receivables, which are typically unsecured. In evaluating the collectability of the balances, the Group considered various factors, including the related parties and third parties’ repayment history and their credit-worthiness. An allowance for credit losses is made when collection of the full amount is no longer probable. Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the Company’s subsidiaries, the VIE and VIE’s subsidiaries in China only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries, the VIE and VIE’s subsidiaries in China are required to make certain appropriation of net after-tax profits or increase in net assets to the statutory surplus fund (see note 2(aa)) prior to payment of any dividends. As a result of these and other restrictions under PRC laws and regulations, the Company’s subsidiaries, the VIE and VIE’s subsidiaries in China are restricted in their ability to transfer their net assets to the Company in terms of cash dividends, loans or advances, which restricted portion amounted to USD173,226,000 as of December 31, 2023, or 53% of the Company’s total consolidated net assets. Even though the Company currently does not require any such dividends, loans or advances from the PRC subsidiaries, the VIE and VIE’s subsidiaries for working capital and other funding purposes, the Company may in the future require additional cash resources from the Company’s subsidiaries, the VIE and VIE’s subsidiaries in China due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends to make distributions to shareholders. Furthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency at the time of requesting such conversion may temporarily delay the ability of the PRC subsidiaries, the VIE and VIE’s subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. |
Additional information_ condens
Additional information: condensed financial statements of the Company | 12 Months Ended |
Dec. 31, 2023 | |
Additional information: condensed financial statements of the Company | |
Additional information: condensed financial statements of the Company | 27. Additional information: condensed financial statements of the Company Regulation S-X requires condensed financial information as to financial position, statements of cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated and unconsolidated subsidiaries together exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company records its investment in its subsidiaries, the VIE and VIE’s subsidiaries under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “Investments in subsidiaries and consolidated VIEs”. 27. Additional information: condensed financial statements of the Company (Continued) The subsidiaries did not pay any dividends to the Company for the periods presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures represent supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Group. The Company did not have significant other commitments, long-term obligations, or guarantees as of December 31, 2023. Condensed Balance Sheets (In thousands) December 31, 2022 December 31, 2023 Assets Current assets: Cash and cash equivalents 32,004 31,919 Short-term investments 29,342 28,382 Due from group companies 5,808 6,583 Prepayments and other current assets 927 1,720 Total current assets 68,081 68,604 Non-current assets: Due from group companies 200,471 199,864 Investments in subsidiaries and consolidated VIEs 49,888 68,086 Total assets 318,440 336,554 Liabilities Current liabilities: Accounts payable 55 — Due to group companies 5,028 8,150 Due to related parties 1,560 — Income tax payable 10 72 Accrued liabilities and other payables 1,894 3,470 Total current liabilities 8,547 11,692 Total liabilities 8,547 11,692 Commitments and contingencies Shareholders’ equity Common shares 81 81 Treasury shares 12 12 Other shareholders’ equity 309,800 324,769 Total Xunlei Limited’s shareholders’ equity 309,893 324,862 Total liabilities and shareholders’ equity 318,440 336,554 27. Additional information: condensed financial statements of the Company (Continued) Condensed Statements of Operations Years ended December 31, (In thousands) 2021 2022 2023 Operating expenses General and administrative expenses (3,302) (6,436) (7,931) Total operating expenses (3,302) (6,436) (7,931) Operating loss (3,302) (6,436) (7,931) Interest income 107 360 1,512 Interest expense (95) (93) (93) Other income, net 585 368 3,928 Income from subsidiaries and consolidated VIEs 3,935 27,300 16,948 Income before income tax 1,230 21,499 14,364 Income tax expenses (39) (36) (139) Net income 1,191 21,463 14,225 Net income attributable to Xunlei Limited’s common shareholders 1,191 21,463 14,225 Condensed Statements of Cash Flows Years ended December 31, (In thousands) 2021 2022 2023 Other operating activities with external parties (5,732) (948) (391) Net cash used in operating activities (5,732) (948) (391) Loans to group companies (26,391) (3,450) (188) Other investing activities with external parties 6,553 11,134 2,031 Net cash (used in)/generated from investing activities (19,838) 7,684 1,843 Loans from group companies — — 3,150 Other financing activities with external parties — (6,747) (4,687) Net cash used in financing activities — (6,747) (1,537) Net decrease in cash and cash equivalents (25,570) (11) (85) Cash and cash equivalents at beginning of year 57,585 32,015 32,004 Effect of exchange rates on cash and cash equivalents — — — Cash and cash equivalents at end of year 32,015 32,004 31,919 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of significant accounting policies | |
Basis of presentation and use of estimates | (a) Basis of presentation and use of estimates The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (‘‘U.S. GAAP’’). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and related disclosures. Actual results could differ materially from these estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements mainly include allowance for credit losses, valuation allowance of deferred tax assets, impairment assessment of goodwill and impairment assessment of long-lived assets. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
Consolidation | (b) Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE for which the Company is the primary beneficiary and its subsidiaries. All transactions and balances among the Company, its subsidiaries, the VIE and VIE’s subsidiaries have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one-half of the voting power, or has the power to appoint or remove the majority of the members of the board of directors to cast majority of votes at meetings of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. An entity is considered to be a VIE if the entity’s equity holders do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The Group consolidates entities for which the Company is the primary beneficiary if the entity’s other equity holders do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. In determining whether the Company or its subsidiary is the primary beneficiary of a VIE, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, including the power to appoint senior management, right to direct company strategy, power to approve capital expenditure budgets, and power to establish and manage ordinary business operation procedures and internal regulations and systems. Management has evaluated the contractual arrangements among Giganology Shenzhen, Shenzhen Xunlei and its shareholders and concluded that Giganology Shenzhen receives all of the economic benefits and absorbs all of the expected losses from Shenzhen Xunlei and has the power to direct the aforementioned activities that are significant to Shenzhen Xunlei’s economic performance, and is the primary beneficiary of Shenzhen Xunlei. Therefore, Shenzhen Xunlei and its subsidiaries’ results of operation, assets and liabilities have been included in the Group’s consolidated financial statements. Management monitors the regulatory risk associated with these contractual arrangements. See note 26 for further discussion. Non-controlling interests represent the portion of the net assets of a subsidiary attributable to interests that are not owned by the Company. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Group is presented on the face of the consolidated statements of comprehensive income as an allocation of the total income or loss for the year between non-controlling shareholders and the shareholders of the Company. |
Business combinations | (c) The Group accounts for acquisitions of entities that include inputs and processes and have the ability to generate economic benefit as business combinations. The Group allocates the purchase price of the acquisition to the tangible assets and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related costs are expensed as incurred. |
Foreign currency translation | (d) Foreign currency translation The Company’s reporting and functional currency is the United States Dollar (‘‘USD’’). The functional currency of other subsidiaries, the VIE and VIE’s subsidiaries located in the Mainland China is the Renminbi (‘‘RMB’’), and the functional currency of other subsidiaries located outside the Mainland China is the USD. Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in foreign currencies are remeasured into the functional currency using the applicable exchange rates prevailing at the balance sheet date. The resulting exchange gains and losses from foreign currency transactions are included in “Other income, net” within the consolidated statements of comprehensive income. The Company uses the monthly average exchange rate for the year and the exchange rates at the balance sheet date to translate the operating results and financial position, respectively, of its subsidiaries whose functional currency is other than the USD. The resulting translation differences are recorded in cumulated translation adjustments, a component of shareholders’ equity. The exchange rate used is based on the rates released by Chinese State Administration of Foreign Exchange. |
Cash and cash equivalents and restricted cash | (e) Cash and cash equivalents and restricted cash Cash and cash equivalents include cash on hand, cash in bank and time deposits placed with banks or other financial institutions, which have original maturities of three months or less and are readily convertible to known amounts of cash. Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is included in the total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. The Group’s restricted cash represented the cash balance on deposit as required by the court for ongoing litigations as of December 31, 2022. |
Short-term investments | (f) Short-term investments Short-term investments include deposits placed with banks with original maturities of more than three months but within one year and investments in financial instruments with a variable interest rate indexed to the performance of underlying assets. In accordance with ASC 825 Financial Instruments |
Allowance for expected credit losses | (g) Allowance for expected credit losses The current expected credit losses methodology requires that the full amount of expected credit losses for the lifetime of the financial instrument be recorded at the time it is originated or acquired, considering relevant historical experience, current conditions and reasonable and supportable macroeconomic forecasts that affect the collectability of financial assets, and adjusted for changes in expected lifetime credit losses subsequently, which may require earlier recognition of credit losses. The Group’s accounts receivable, due from related parties and other current assets (including other receivables) and other non-current assets (including other long-term receivables) are within the scope of ASC Topic 326. The Group assessed the credit loss for accounts receivable with similar risk characteristics on a pool basis. The credit loss assessment for each pool was mainly based on past collection experience, consideration of current and future economic conditions and changes in the Group’s collection trends. |
Inventories | (h) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using actual cost on a weighted average basis. Net realizable value is the amount that can be realized from the sale of the inventory in the normal course of business after allowing for the costs of realization. |
Long-term investments | (i) Long-term investments The Group holds investments in privately held companies. The Group measures long-term equity investments, other than equity method investments, at fair value through earnings. For those investments over which the Group does not have significant influence and without readily determinable fair value, the Group elected to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of equity investments will be required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Management regularly evaluates the impairment of long-term equity investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognised equal to the excess of the investment costs over its fair value at the end of each reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. During the years ended December 31, 2021, 2022 and 2023, the Group recognized an impairment of nil, USD590,000 and nil, respectively. |
Property and equipment | (j) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the asset at the end of the estimated useful life as a percentage of the original cost. If the Group commits to a plan to abandon a long-lived asset before the end of its previous estimated useful life, depreciation shall be revised to reflect a shortened useful life. Estimated useful lives Residual rate Office building 20 years 5 % Building decoration 10 years 5 % Servers and network equipment 3-5 years 5 % Computer equipment 5 years 5 % Furniture, fixtures and office equipment 3-5 years 5 % Motor vehicles 5 years 5 % Leasehold improvements Shorter of lease term or 3 years — Repair and maintenance costs are expensed as incurred. Expenditures that substantially increase an asset’s useful life are capitalized. Upon sale or disposal, gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income, the cost and related accumulated depreciation are removed from the consolidated balance sheets. |
Goodwill | (k) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries, the VIE and VIE’s subsidiaries. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Group performs the quantitative impairment test by comparing the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired. If the carrying amount of a reporting unit exceeds its fair value, the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized as impairment. The Group’s goodwill was attributable to the Company as a whole. The Group applies the quantitative assessment for the impairment test of goodwill as of December 31, 2022 and 2023. The impairment test for goodwill determines the fair value of the reporting unit, the Company as a whole, and compares it to the carrying value of the assets and liabilities, including goodwill, of the reporting unit. The fair value of the Company was estimated by management using the discounted cash flow model derived from the long-term (five-year) cash flow projections, which included significant judgements and assumptions relating to revenue forecast and operating margins, discount rate that reflects market assessments of the time value and the specific risks relating to the Company, and cash flows beyond the five-year period are extrapolated using a terminal growth rate. No goodwill impairment losses were recognized for the years ended December 31, 2021, 2022 and 2023 based on the impairment test performed by the Group. |
Intangible assets | (l) Intangible assets Intangible assets, which include land use rights, acquired computer software and audio-visual license, are carried at cost less accumulated amortization with no residual value and impairment loss, if any. Amortization of intangible assets is computed using the straight-line method over the estimated useful lives of the assets as follows: Estimated useful lives Land use rights 30 years Audio-visual license 9 years Acquired computer software 5 years Land use rights represent lease prepayments to the local government authorities, which were identified as operating lease assets. |
Impairment of long-lived assets | (m) Impairment of long-lived assets For other long-lived assets, the Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to be received from use of the assets and their eventual disposition at the lowest level of identifiable cash flows. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. If the Group identifies an impairment, the carrying value of the asset will be reduced to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. |
Commitments and contingencies | (n) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. In regard to legal cost, the Group recorded such costs as incurred. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Group, but which will only be resolved when one or more future events occur or fail to occur. The Group’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Group or unasserted claims that may result in such proceedings, the Group, in consultation with its legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Group’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. |
Operating leases | (o) Operating leases Lessees are required to recognize an operating lease asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet under ASC Topic 842. Lessees shall follow the requirements to classify most leases as either financing or operating using principles similar to previous lease accounting. In the statement of comprehensive income, a lessee shall present both of the following: a) for finance leases, the interest expense on the lease liability and amortization of the operating lease asset are not required to be presented as separate line items and shall be presented in a manner consistent with how the entity presents other interest expense and depreciation or amortization of similar assets, respectively; b) for operating leases, lease expense shall be included in the lessee’s income from operations. The Group have elected the short-term lease exemption for all leases with a lease term of 12 months. Payments associated with short-term leases are recognized on a straight-line basis as an expense in profit or loss. The standard also requires a lessee to recognize a single lease cost related to operating lease, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The Group assesses, at contract inception, whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining the appropriate discount rate to use in calculating the present value of contractual lease payments, management regularly evaluates the lessee’s incremental borrowing rate, as the rate implicit in the lease cannot be readily determined. |
Revenue recognition | (p) Revenue recognition Revenue is recognized when or as the control of the services or goods is transferred to the customer. Depending on the terms of the contract and the laws that apply to the contract, control of the services and goods may be transferred over time or at a point in time. A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. Contract costs includes incremental costs of obtaining a contract and costs to fulfil a contract. The Group generates revenues from various streams. Net revenues presented in the consolidated statements of comprehensive income represent revenues from service and product sales net off sales discount, value-added tax and related surcharges. (I) Subscription revenues The Group operates a VIP membership program where VIP members can have access to high speed online acceleration services, online streaming and other access privileges. The membership fee is time-based and is collected up-front from subscribers. The terms of time-based subscriptions range from one month to twelve months, with the subscribers having the option to renew the contract. The receipt of subscription fee is initially recorded as contract liabilities. The Group satisfies its various performance obligations by providing services throughout the subscription period and revenue is recognized rateably over the period of subscription as services are rendered. Unrecognized portion beyond 12 months from balance sheet date is classified as a long-term liability. The Group evaluated the principal versus agent criteria and determined that the Group is the principal in the transaction and accordingly records revenue on a gross basis. In determining whether to report revenues gross for the amount of subscription revenue, the Group assesses whether it maintains the principal relationship with the VIP members, whether it bears the credit risk and whether it establishes prices for the end users. Service fees levied by online system and mobile payment channels (‘‘Payment handling charges’’) are recorded as the cost of revenues in the same period as the revenue for the membership fee is recognized. (II) Live streaming revenues The Group operates certain live streaming platforms where users can access the platform, view the live streaming content provided by performers, and purchase virtual gifts which they can grant to performers in the live streaming platform to show support for their favorite performers. Xunlei is the principal in the provision of the live streaming content and experience, which is considered as the performance obligation of the Group. The Group recognizes revenue from sales of virtual gifts to the viewers when the relevant virtual gifts are presented to the performers or over the duration of stated period of the time-based item. The Group does not have further obligations to the viewers after the virtual gifts are consumed immediately or after the stated period for time-based items, although the Group will continue to provide the live streaming content to the viewers in order to continue to generate sales of virtual gifts. (III) Cloud computing revenues On a monthly basis, the Group records the bandwidth it delivers and recognizes revenue from customers under contractual rates applied (price per Gigabyte (“GB”) of bandwidth multiplies total GBs of bandwidth per month). (IV) Other internet value-added services revenues (i) Advertising revenues Beijing Itui Online Network Technology Co., Ltd. (“Itui Online”), a company controlled by the Company’s principal shareholder has been handling substantially all of the Group’s advertising resources since May 2020, including negotiation and entering into contract with advertisers, matching the requirements of advertisers and dispatching the advertising content to Xunlei’s platforms, accordingly advertisers or advertising agencies are considered as customers of Itui Online and Itui Online is viewed as the customer of the Group. Revenue arising from this transaction is recognized monthly based on the data publicized on the platforms and pre-agreed sharing portion. (ii) Online games revenues The Group enters into a series of technical cooperation agreements with third party online game operators. Users access to the Group’s platform and purchase in-game virtual items which can then be used in games provided by the third-party online game operators. The Group provides the third-party online game operators with a portal which the online game operators can host the online games. The Group charges the online game operators based on a pre-determined portion of proceeds earned from paying users pursuant to the revenue sharing arrangements for the provision of portal and payment collection service to the online game operators. The third-party online game operators are the principal in the provision of games to users and the Group provides the relevant platform to the game operators, therefore, the game operators are viewed as the customers in these transactions. The service fees receivable from the third-party online game operators are variable, which are contingent upon future events (future cash proceeds paid by game players), and are recognized when the contingency is met provided that collectability is reasonably assured. |
Sales and marketing expenses | (q) Sales and marketing expenses Sales and marketing expenses comprise primarily salaries and benefits of sales and marketing personnel and external advertising and market promotion expenses. The external advertising and market promotion expenses from operations amounted to approximately USD15,052,000, USD12,551,000 and USD29,140,000 for the years ended December 31, 2021, 2022 and 2023, respectively. |
General and administrative expenses | (r) General and administrative expenses General and administrative expenses consist primarily of salaries and benefits (including related share-based compensation), depreciation of property and equipment, professional service fees, legal expenses and other administrative expenses. |
Research and development costs | (s) Research and development costs The Group incurred research and development costs to develop its acceleration products, live streaming platforms and bandwidth crowdsourcing technologies to enhance the competitive advantages of the Group’s key products. Costs incurred during the research phase are expensed as incurred. Costs incurred for the development of the downloading software, live streaming platforms and bandwidth crowdsourcing technologies prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. The development costs qualified for capitalization were immaterial for the periods presented. In addition, the Group incurred other research and development costs in relation to software used to support its operations. Any development costs qualified for capitalization were immaterial for the periods presented. |
Taxation and uncertain tax positions | (t) Taxation and uncertain tax positions Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements’ carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the difference is expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred tax assets if it is considered more likely than not that some portion, or all, of the deferred tax assets will not be realized. The estimation of future taxable income involves significant judgement and estimates. Based on management’s estimated future taxable income, management concluded that it is more likely than not that the net operating losses carried forward cannot be utilized prior to their respective expiration dates. The Group applied the ASC 740 “Income Taxes” regarding uncertain tax positions and evaluated its open tax positions that exist in each jurisdiction for each reporting period. If an uncertain tax position is taken or expected to be taken in a tax return, the tax benefit from that uncertain position is recognized in the Group’s consolidated financial statements if it is more likely than not that the position is sustainable upon examination by the relevant taxing authority. The Group did not have any significant uncertain tax position and there was no effect on its financial condition or results of operations as a result of applying the ASC 740 “ Income Taxes PRC Value-added Tax (“VAT”) VAT payable on goods sold or taxable labor services provided by a general VAT taxpayer for a taxable period is the net balance of the output VAT for the period after crediting the input VAT for the period. In addition to the product revenues currently subject to VAT at a rate of 13%, the Group’s revenue from subscription, live streaming, cloud computing services and other internet value-added services are subject to VAT at a rate of 6%. According to the policy of the PRC State Tax Bureau, enterprises that engage in postal services, telecommunication services and consumer services are entitled to claim 110%, 110% and 105% of the input tax incurred as tax credit in determining VAT payable for the years ended December 31, 2021, 2022 and 2023. |
Employee benefits | (u) Employee benefits Full-time employees of the Company’s subsidiaries, VIE and VIE’s subsidiaries in the PRC participate in a government mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the subsidiaries, VIE and VIE’s subsidiaries of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts from operations for such employee benefits, which are expensed as incurred, were USD12,411,000, USD14,266,000 and USD16,656,000 for the years ended December 31, 2021, 2022 and 2023, respectively. |
Share-based compensation | (v) Share-based compensation The Group measures share-based compensation based on the stock price at the grant date. As the Group has granted restricted shares with service-only condition, the Group elected to recognize compensation costs net of estimated forfeitures on a straight-line basis over the requisite service period, which is generally the same as the vesting period. The amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is vested at that date. |
Government subsidies | (w) Government subsidies The Group receives subsidies from the local PRC government for general use or purchase of equipment. General-use subsidies which are not subject to any conditions or specific use requirements are recorded as subsidy income in the consolidated statements of comprehensive income. Subsidies for purchase of equipment are recorded as deferred government grant when received, and are recorded as other income over the expected useful life of the assets after the related equipment has been purchased. |
Segment reporting | (x) Segment reporting The Group’s Chief Executive Officer has been identified as the chief operating decision maker, who reviews consolidated operating results of the Group when making decisions about allocating resources and assessing performance of the Group as a whole. The Group has internal reporting of revenues, costs and expenses that does not distinguish between segments, and reports costs and expenses by nature as a whole. The Group does not distinguish between markets or segments for the purpose of internal reporting. Management has determined that the Group operates and manages its business as a single segment, the Group’s long - lived assets are substantially located in the PRC, around 95%, 88% and 91% of revenues of the Group were derived from mainland China during the year ended December 31, 2021, 2022 and 2023, respectively. An analysis of the different types of total revenues for the years ended December 31, 2021, 2022 and 2023 are summarized as follows: Revenue from operations Years ended December 31, (In thousands) 2021 2022 2023 Subscription revenue 91,174 100,557 119,343 Live streaming revenue and other internet value-added services (note a)and 53,614 122,372 122,157 Cloud computing services and product revenue (note b) 94,813 119,635 123,411 Total revenues 239,601 342,564 364,911 Notes: (a) Other internet value-added services mainly comprised online advertising, online games and other technical services. (b) Product revenue mainly comprised sales of OneThing Edge Cube and OneThing Edge Station devices and hard disks. (c) The total revenues were reclassified to present in three types for the year ended December 31, 2022, and accordingly the classification of total revenues has been adjusted retrospectively for the year ended December 31, 2021. |
Net income per share | (y) Net income per share Net basic income per share is computed by dividing net income attributable to holders of common shares by the weighted - average number of common shares outstanding during the year. Net diluted income per share is calculated by dividing net income attributable to common shareholders as adjusted for the effect of dilutive common equivalent shares, if any, by the weighted - average number of common and dilutive common equivalents shares outstanding during the year. Dilutive equivalent shares are excluded from the computation of diluted income per share if their effects would be anti-dilutive. Common share equivalents are included for the unvested stock under the treasury stock method. |
Comprehensive income | (z) Comprehensive income Comprehensive income is defined as the change in equity of the Group during the period from transactions and other events and circumstances excluding transactions resulting from investments from shareholders and distributions to shareholders. Accumulated other comprehensive loss, as presented on the accompanying consolidated balance sheets, consists of cumulative translation adjustments. |
Profit appropriation and statutory reserves | (aa) Profit appropriation and statutory reserves The Group’s subsidiaries, the VIE and VIE’s subsidiaries incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax profit determined in accordance with PRC accounting standards and regulations. Appropriation to the statutory general reserve should be at least 10% of the after-tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Group is not required to make appropriation to other reserve funds and the Group does not have any intentions to make appropriations to any other reserve funds. The general reserve fund can only be used for specific purposes, such as setting off the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves. There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Group does not do so. |
Dividends | (bb) Dividends Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2021, 2022 and 2023. The Group does not have any present plan to pay any dividends on common shares in the foreseeable future. The Group currently intends to retain the available funds and any future earnings to operate and expand its business. |
Recent accounting pronouncements | (cc) Recent accounting pronouncements In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions Topic 820, Fair Value Measurement In November 2023, the FASB issued ASU No. 2023 - 07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU No. 2023 - 09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures The Group does not expect that the adoption of those guidance will have a material impact on the consolidated financial statements. |
Organization and nature of op_2
Organization and nature of operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and nature of operations | |
Schedule of consolidated financial statements include the financial statements of the Company, its subsidiaries, the variable interest entity ("VIE") and VIE's subsidiaries (collectively referred to as the "Group") | % of direct or indirect Place of Period of economic Name of entities incorporation incorporation Relationship ownership Principal activities Shenzhen Xunlei Networking Technologies Co., Ltd. (“Shenzhen Xunlei”) People’s Republic of China (“PRC”) January 2003 VIE 100 % Development of software, provision of online advertising and membership subscription Giganology (Shenzhen) Co., Ltd. (“Giganology Shenzhen”) PRC June 2005 Subsidiary 100 % Development of computer software and provision of information technology services to related companies Shenzhen Xunlei Wangwenhua Co., Ltd. (formerly known as “Shenzhen Fengdong Networking Technologies Co., Ltd.”) (“Wangwenhua”) PRC December 2005 VIE’s subsidiary 100 % Development of computer software, provision of advertising services and operation of live steaming platforms Xunlei Computer (Shenzhen) Co., Ltd. (“Xunlei Computer”) PRC November 2011 Subsidiary 100 % Development of computer software and provision of information technology services Shenzhen Onething Technologies Co., Ltd. (“Onething”) PRC September 2013 VIE’s subsidiary 100 % Development of cloud computing technology and provision of related services Beijing Xunjing Technologies Co., Ltd. (formerly known as “Wangxin Century Technologies (Beijing) Co., Ltd.”) PRC October 2015 VIE’s subsidiary 100 % Development of computer software and provision of information technology services % of direct or indirect Place of Period of economic Name of entities incorporation incorporation Relationship ownership Principal activities Jiangxi Node Technology Service Co., Ltd. (“Jiangxi Node”) PRC July 2020 VIE’s subsidiary 100 % Development of cloud computing technology and provision of related services FUNI. PTE. LTD. (“FUNI”) Singapore April 2021 Subsidiary 100 % Operation of live streaming platforms Hainan Xunlei Hammer Network Technologies Co., Ltd. PRC September 2021 VIE’s subsidiary 100 % Development of computer software and operation of live steaming platforms |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of significant accounting policies | |
Schedule of property and equipment estimated useful life | Estimated useful lives Residual rate Office building 20 years 5 % Building decoration 10 years 5 % Servers and network equipment 3-5 years 5 % Computer equipment 5 years 5 % Furniture, fixtures and office equipment 3-5 years 5 % Motor vehicles 5 years 5 % Leasehold improvements Shorter of lease term or 3 years — |
Schedule of estimated useful lives of the intangible assets | Estimated useful lives Land use rights 30 years Audio-visual license 9 years Acquired computer software 5 years |
Schedule of analysis of different types of revenues | Revenue from operations Years ended December 31, (In thousands) 2021 2022 2023 Subscription revenue 91,174 100,557 119,343 Live streaming revenue and other internet value-added services (note a)and 53,614 122,372 122,157 Cloud computing services and product revenue (note b) 94,813 119,635 123,411 Total revenues 239,601 342,564 364,911 Notes: (a) Other internet value-added services mainly comprised online advertising, online games and other technical services. (b) Product revenue mainly comprised sales of OneThing Edge Cube and OneThing Edge Station devices and hard disks. (c) The total revenues were reclassified to present in three types for the year ended December 31, 2022, and accordingly the classification of total revenues has been adjusted retrospectively for the year ended December 31, 2021. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents | |
Schedule of cash on hand and cash held at bank | December 31, 2022 December 31, 2023 USD USD (In thousands) Amount equivalent Amount equivalent RMB 699,666 100,461 648,445 91,553 USD 73,449 73,449 76,636 76,636 SGD 2,370 1,760 3,231 2,446 Hong Kong Dollar 1,223 157 1,275 163 Others Not applicable 1,327 Not applicable 4 Total 177,154 170,802 |
Short-term investments (Tables)
Short-term investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Short-term investments | |
Schedule of short-term investments | (In thousands) December 31, 2022 December 31, 2023 Time deposits 51,044 51,176 Investments in financial instruments 32,582 49,902 Total 83,626 101,078 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts receivable, net | |
Schedule of accounts receivable | (In thousands) December 31, 2022 December 31, 2023 Accounts receivable 31,192 32,232 Less: Allowance for current expected credit losses (1,429) (1,022) Accounts receivable, net 29,763 31,210 |
Schedule of allowance for current expected credit loss | (In thousands) December 31, 2021 December 31, 2022 December 31, 2023 Balance at beginning of the year 9,329 1,764 1,429 Additions 72 — 213 Reversals (481) (188) (189) Write-off (7,375) (2) (408) Exchange difference 219 (145) (23) Balance at end of the year 1,764 1,429 1,022 |
Schedule of summarizes customers with balances of accounts receivable | December 31, 2022 December 31, 2023 Customer A 39 % 30 % Customer B 12 % * Customer C 17 % 18 % * |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventories | |
Schedule of inventories | (In thousands) December 31, 2022 December 31, 2023 Hardware devices 532 2,049 Others 206 420 Less: Impairment (281) (250) Total 457 2,219 |
Prepayments and other assets (T
Prepayments and other assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and other assets | |
Schedule of prepayments and other assets | (In thousands) December 31, 2022 December 31, 2023 Current portion: Advances to suppliers (note a) 4,042 3,059 Receivable related to an asset disposal in 2019 3,316 3,247 Receivable from a business disposal in 2015 4,288 — Loans to employees (note b) 1,851 2,082 Rental and other deposits 1,397 1,561 Others 4,040 5,660 Less: Allowance for current expected credit losses (10,667) (6,186) Total of prepayments and other current assets 8,267 9,423 Non-current portion: Loans to employees, non-current portion (note b) 1,543 1,687 Advances to suppliers, non-current portion (note a) 594 266 Total of long-term prepayments and other assets 2,137 1,953 Notes: (a) Advances to suppliers primarily include prepayments to bandwidth suppliers, prepayments for the construction and improvements related to Xunlei Tower and other prepaid expenses. (b) The Group entered into loan contracts with certain employees, under which the Group provided interest-free loans or low-interest loans to these employees. The loan amounts vary amongst different employees from repayable on demand to repayable in equal installments on a monthly basis over a term of 5 to 10 years . The balances classified as current represented loan amounts that are repayable on demand or repayable within the next twelve months from the balance sheet date. |
Schedule of movement in allowance for current expected credit loss | (In thousands) December 31, 2021 December 31, 2022 December 31, 2023 Balance at beginning of the year 10,283 11,069 10,667 Additions 745 745 — Reversals (150) (197) (100) Write-off (54) — (4,234) Exchange difference 245 (950) (147) Balance at end of the year 11,069 10,667 6,186 |
Long-term investments (Tables)
Long-term investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-term investments | |
Schedule of long-term investments | (In thousands) December 31, 2022 December 31, 2023 Equity interests without a readily determinable fair value: Balance at beginning of the year 31,495 30,811 Additions (note a) — 1,418 Net unrealized gains on investments held 437 — Impairment on long-term investments (590) — Exchange difference (531) (95) Balance at end of the year 30,811 32,134 (a) In September 2023, the Group made an equity investment of USD 1,412,000 (equivalent to RMB 10,000,000 ) to acquire 20.00% equity interest of Xiaosheng Xiaoyi, which is a privately held company. |
Schedule of equity investments, percentage of ownership of common share | Percentage of ownership of shares as of December 31, Investee 2022 2023 Equity method investment: Shenzhen Mojingou Information Services Co., Ltd. 28.77 % 28.77 % Equity interests without a readily determinable fair value: Guangzhou Yuechuan Network Technology Co., Ltd. (“Guangzhou Yuechuan”) (note b) 9.30 % — Chengdu Diting Technology Co., Ltd. 12.74 % 12.74 % Shanghai Guozhi Electronic Technology Co., Ltd. 16.80 % 16.80 % Guangzhou Hongsi Network Technology Co., Ltd. 19.90 % 19.90 % Xiamen Diensi Network Technology Co., Ltd. 14.25 % 14.25 % 11.2 Capital I, L.P. 2.03 % 2.03 % Cloudtropy 9.69 % 9.69 % Lexiang Technology Co., Ltd. (formerly named as “Shanghai Lexiang Technology Co., Ltd.”, “Lexiang”) (note c) 6.49 % 5.81 % Hangzhou Feixiang Data Technology Co., Ltd. 28.00 % 28.00 % Shenzhen Meizhi Interactive Technology Co., Ltd. (“Meizhi Interactive”) (note d) 9.40 % — Beijing Yunhui Tianxia Technology Co., Ltd. 13.70 % 13.70 % Yingshi Innovation Technology Co., Ltd. (formerly named as “Shenzhen Arashi Vision Interative Technology Co., Ltd.”) 8.73 % 8.73 % Beijing Cloudin Technology Co., Ltd. 4.12 % 4.12 % Quanxun Huiju Networking Technology (Beijing) Co., Ltd. (“Quanxun Huiju”) 5.40 % 5.40 % Blue Bayread Limited 1.63 % 1.63 % Clapper Media Group Inc. 9.58 % 9.58 % Beijing Yunshang Hemei Culture Media Co., Ltd. 10.00 % 10.00 % Beijing Xiaosheng Xiaoyi Technology Co., Ltd. (“Xiaosheng Xiaoyi”) (note a) — 20.00 % Notes : (a) In September 2023, the Group made an equity investment of USD 1,412,000 (equivalent to RMB 10,000,000 ) to acquire 20.00% equity interest of Xiaosheng Xiaoyi, which is a privately held company. (b) In October 2023, the Group disposed of its equity interest in Guangzhou Yuechuan, for which full impairment had been provided in 2018, at a consideration of RMB 1 . (c) In March 2023, the Group’s interest in Lexiang was diluted to 5.81% , as additional shares were issued by Lexiang, no changes in the carrying value in Lexiang was made as the related transaction did not provide observable price changes to the Group. (d) In May 2023, the Group disposed of its equity interest in Meizhi Interactive, for which full impairment had been provided in 2018, at a consideration of RMB 1 . |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and equipment, net | |
Schedule of property and equipment | (In thousands) December 31, 2022 December 31, 2023 Office building (note) 47,902 48,323 Servers and network equipment 15,065 15,471 Furniture, fixtures and office equipment 790 2,110 Computer equipment 1,624 1,811 Motor vehicles 449 517 Building decoration and leasehold improvements 8,705 8,725 Total original costs 74,535 76,957 Less: Accumulated depreciation (12,801) (15,704) Less: Accumulated impairment — (1,225) Total 61,734 60,028 Note: The construction of Xunlei Tower was completed in December 2022 and the ownership certificate of Xunlei Tower was obtained in March 2024. |
Summary of depreciation expense | Years ended December 31, (In thousands) 2021 2022 2023 Costs of revenues 4,805 1,362 740 Research and development expenses 436 467 390 Sales and marketing expenses 10 9 7 General and administrative expenses 1,068 828 3,290 Total 6,319 2,666 4,427 |
Operating lease assets and le_2
Operating lease assets and lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Operating lease assets and lease liabilities | |
Schedule of operating lease assets that are amortized over the lease term of greater than one year | (In thousands) Office leases Net book amount as of January 1, 2022 27 Additions 920 Amortization (56) Effect of foreign currency exchange differences (26) Net book amount as of December 31, 2022 865 Additions 927 Amortization (551) Modification (652) Effect of foreign currency exchange differences (14) Net book amount as of December 31, 2023 575 |
Schedule of undiscounted cash payments | The undiscounted cash payments for each of the next five years as of December 31, 2023 is: (In thousands) 2024 297 2025 166 2026 70 Total undiscounted payments 533 Less: effect of discounting (28) Discounted lease liabilities 505 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets, net | |
Schedule of intangible assets | December 31, 2022 2023 Net book Net book (In thousands) Cost Amortization value Cost Amortization value Land use rights 4,777 (1,498) 3,279 4,697 (1,629) 3,068 Audio - visual license 5,631 (2,884) 2,747 5,537 (3,484) 2,053 Acquired computer software 3,264 (2,744) 520 3,565 (2,989) 576 Total 13,672 (7,126) 6,546 13,799 (8,102) 5,697 |
Summary of amortization expense recognized | Years ended December 31 (In thousands) 2021 2022 2023 Cost of revenues 10 54 53 Research and development expenses 6 — — General and administrative expenses 1,113 1,032 1,048 Total 1,129 1,086 1,101 |
Schedule of estimated aggregate amortization expense | The estimated aggregate amortization expense for each of the next five years as of December 31, 2023 is: (In thousands) Intangible assets 2024 1,016 2025 925 2026 913 2027 366 2028 and thereafter 2,477 |
Schedule of weighted average amortization periods of intangible assets | (In year) December 31, 2022 December 31, 2023 Land use rights 30 30 Audio-visual license 9 9 Acquired computer software 5 5 Total weighted average amortization periods 10 10 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill. | |
Schedule of goodwill | December 31, December 31, (In thousands) 2022 2023 Beginning balance 23,136 21,179 Foreign currency translation adjustment (1,957) (353) Accumulated impairment — — Ending balance 21,179 20,826 |
Contract liabilities (Tables)
Contract liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Contract liabilities | |
Schedule of Contract liabilities | (In thousands) December 31, 2022 December 31, 2023 Contract liabilities (note a) Membership subscription 37,721 35,969 Live streaming 969 830 Others 1,153 422 Total 39,843 37,221 Less: non-current portion (note b) (876) (846) Contract liabilities, current portion 38,967 36,375 Notes: (a) Contract liabilities were related to unsatisfied performance obligations at the end of the year. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following period. The amount of revenue recognized that was included in contract liabilities balance at the beginning of the year was USD 35,380,000 and USD 38,016,000 for the years ended December 31, 2022 and 2023, respectively . (b) As of December 31, 2022 and 2023, the non-current portion consists of membership subscription of USD 876,000 and USD 846,000 , respectively. |
Accrued liabilities and other_2
Accrued liabilities and other payables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued liabilities and other payables | |
Schedule of Accrued Liabilities and Other Payables | (In thousands) December 31, 2022 December 31, 2023 Payroll and welfare 23,277 24,702 Tax levies 4,178 7,879 Payables related to Xunlei Kankan 2,418 — Payables for advertisement 1,980 3,473 Legal and litigation related expenses (note 25) 634 1,168 Professional service fees 1,656 1,273 Agency commissions and rebates from online advertising 2,525 — Payables for office building 8,528 8,623 Payables related to share repurchase 1,120 2,774 Others 3,122 3,816 Total 49,438 53,708 |
Bank borrowings (Tables)
Bank borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Bank borrowings | |
Schedule of bank borrowings | December 31, December 31, (In thousands) 2022 2023 Bank borrowings, current portion 7,024 6,906 Bank borrowings, non-current portion 24,750 15,539 Total 31,774 22,445 |
Schedule of maturity of bank borrowings | As of December 31, 2023, the bank borrowings will be due according to the following schedule: (In thousands) Principal amounts Within 1 year 6,906 Between 1 to 2 years 6,906 Between 2 to 3 years 6,906 Between 3 to 4 years 1,727 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of recognized compensation costs | Years ended December 31, (In thousands) 2021 2022 2023 Sales and marketing expenses 59 — 48 General and administrative expenses 4,682 6,855 8,113 Research and development expenses 1,429 1,329 1,515 Total 6,170 8,184 9,676 |
2020 Incentive Plan [Member] | |
Summary of restricted shares activities | Weighted-average Number of grant-date fair restricted shares value (USD) Unvested as of January 1, 2021 — Granted 31,091,840 0.83 Vested (2,429,965) Forfeited (2,777,500) Unvested as of December 31, 2021 25,884,375 Expected to vest as of December 31, 2021 19,413,281 Unvested as of January 1, 2022 25,884,375 Granted 2,200,000 0.31 Vested (9,509,660) Forfeited (1,716,665) Unvested as of December 31, 2022 16,858,050 Expected to vest as of December 31, 2022 12,643,538 Unvested as of January 1, 2023 16,858,050 Granted 12,485,750 0.36 Vested (11,195,165) Forfeited (491,670) Unvested as of December 31, 2023 17,656,965 Expected to vest as of December 31, 2023 13,242,724 |
Costs of revenues (Tables)
Costs of revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Costs of revenues. | |
Schedule of costs of revenues | Years ended December 31, (In thousands) 2021 2022 2023 Bandwidth costs 80,720 104,580 112,522 Revenue-sharing from live streaming business 26,506 78,636 67,302 Payment handling charges 3,066 6,500 8,494 Cost of inventories sold 1,516 2,228 5,911 Depreciation of servers and other equipment 4,805 1,363 740 Other costs (note) 1,990 6,747 5,680 Total 118,603 200,054 200,649 Note: Other costs mainly included content review costs and technical service costs. |
Other income, net (Tables)
Other income, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other income, net | |
Schedule of other income, net | Years ended December 31, (In thousands) 2021 2022 2023 Gains from reversal of long outstanding payables — 3,239 6,831 Investment income from short-term investments (note) 2,486 2,903 4,354 Government subsidy income 3,206 2,377 2,360 Exchange (losses)/gains, net (1,205) 4,494 1,693 VAT deduction 818 1,220 840 Net unrealized gains arising from long-term investments — 437 — Impairment on long-term investments — (590) — Rental income — — 199 Others (627) (535) 627 Total 4,678 13,545 16,904 Note: For the years ended December 31, 2021, 2022 and 2023, investment income from short-term investments comprised interest income of USD599,000, USD361,000 and USD1,389,000 from time deposits with original maturities of more than three months but within one year, and investment income of USD1,888,000, USD2,543,000 and USD2,965,000 from investments in financial instruments, respectively. |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Taxation | |
Schedule of current and deferred portions of income tax (benefits)/expenses | Years ended December 31, (In thousands) 2021 2022 2023 Current income tax expenses 53 4,450 4,559 Deferred income tax benefits (178) (382) (428) Income tax (benefits)/expenses (125) 4,068 4,131 |
Schedule of aggregate amount and per share effect of the tax holidays | Years ended December 31, 2021 2022 2023 Aggregate dollar effect (in thousands) 4,100 5,243 5,121 Per share effect—basic 0.01 0.02 0.02 Per share effect—diluted 0.01 0.02 0.02 |
Schedule of reconciliation of total tax (benefits)/expenses | Years ended December 31, (In thousands) 2021 2022 2023 Income tax expenses/(benefits) at PRC statutory rate (based on statutory tax rate applicable to enterprises in China) 246 5,047 3,965 Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC 2,571 1,640 1,615 Non-deductible expenses 47 468 306 Effect of Super Deduction (2,262) (2,594) (3,609) Effect of tax holidays and tax concessions (4,100) (5,243) (5,121) Change in valuation allowance of deferred tax assets 3,507 4,709 7,170 Others (134) 41 (195) Income tax (benefits)/expenses (125) 4,068 4,131 |
Schedule of changes in deferred tax asset and liabilities balances | (In thousands) December 31, 2022 December 31, 2023 Deferred tax assets, non-current portion: Net operating losses carried forward (note a) 41,240 49,921 Impairment of long-term equity investments 3,972 493 Provision of allowance for expected credit losses 1,841 1,071 Others 383 861 Valuation allowance (note b) (47,223) (51,868) Deferred tax assets, net 213 478 Deferred tax liabilities: Deferred credit arising from an asset acquisition (687) (513) Notes: (a) As of December 31, 2023, the accumulated net operating loss of USD 5,795,000 of the Group’s subsidiaries incorporated in Hong Kong can be carried forward indefinitely to offset future taxable income, the remaining accumulated net operating loss of USD 241,049,000 , mainly arose from the Company’s subsidiaries, the VIE and VIE’s subsidiaries established in the PRC, can be carried forward to offset future taxable income and will expire during the period from 2024 to 2030. |
Schedule of deferred tax liabilities balances | (In thousands) December 31, 2022 December 31, 2023 Within one year 165 162 After one year 522 351 Total 687 513 |
Schedule of Movement of valuation allowance | Years ended December 31, (In thousands) 2021 2022 2023 Beginning balance 40,924 45,580 47,223 Additions 3,507 5,931 7,406 Reversals — (1,222) (236) Exchange difference 1,149 (3,066) (2,525) Ending balance 45,580 47,223 51,868 |
Basic and diluted net (loss) in
Basic and diluted net (loss) income per share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Basic and diluted net income per share | |
Schedule of basic and diluted net income per share | (Amounts expressed in thousands of USD, except Years ended December 31, for number of shares and per share data) 2021 2022 2023 Numerator: Net income 1,108 21,347 14,266 Less: Net (loss)/income attributable to the non-controlling interest (83) (116) 41 Net income attributable to Xunlei Limited’s common shareholders for basic/dilutive net income per share calculation 1,191 21,463 14,225 Denominator: Weighted average number of common shares outstanding, basic 334,707,559 336,040,378 326,390,687 Dilutive effect of restricted share units 1,262,221 195,123 458,815 Weighted average number of common shares outstanding, diluted 335,969,780 336,235,501 326,849,502 Basic net income per share 0.0036 0.0639 0.0436 Diluted net income per share 0.0035 0.0638 0.0435 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Schedule of relationship between related parties with their groups | Related party Relationship with the Group Aiden & Jasmine Limited Shareholder of the Company Millet Technology Co., Ltd. (“Xiaomi Technology”) (note) Guangzhou Millet Information Service Co., Ltd. (“Guangzhou Millet”) (note) Shenzhen Xiaomi Technology Co., Ltd. (“Shenzhen Xiaomi”) (note) Beijing Xiaobu Technology Co., Ltd. (“Beijing Xiaobu”) Company owned by the principal shareholder of the Company Sungai Pte. Ltd. (“Sungai”) Company owned by the principal shareholder of the Company Beijing Itui Technology Co., Ltd. (“Beijing Itui”) Company owned by the principal shareholder of the Company Itui Online Company owned by the principal shareholder of the Company Chizz (HK) Limited (“Chizz”) Company owned by the principal shareholder of the Company Note: In April 2020, Best Ventures Limited (“Best Ventures”, formerly known as Xiaomi Ventures Limited) ceased to be the shareholder of the Company as Best Ventures together with certain shareholders of the Company exchanged their common shares of the Company for the shares of Itui International Inc. (“Itui”). In addition, Best Ventures entitled to certain veto rights in determining Itui’s voting on the Company. As a result, Best Ventures and the companies controlled by Best Ventures continued to be related parties of the Company. |
Schedule of significant related party transactions | Years ended December 31, (In thousands) 2021 2022 2023 Revenue from cloud computing services Xiaomi Technology 2,798 4,978 7,604 Beijing Itui 821 592 358 Revenue from advertising Itui Online 11,648 7,804 8,941 Shenzhen Xiaomi 380 112 13 Revenue from technical services Guangzhou Millet 1,245 — — Shenzhen Xiaomi 1,392 2,505 354 Bandwidth costs Quanxun Huiju 730 — — Interest income Chizz 176 626 724 |
Schedule of amount due to from related party | (In thousands) December 31, 2022 December 31, 2023 Amounts due from related parties - current Accounts receivable Itui Online 7,910 9,061 Shenzhen Xiaomi 1,378 705 Xiaomi Technology 1,871 1,831 Beijing Xiaobu 1,419 394 Beijing Itui 537 333 Sungai. 92 — Other receivables Chizz (note) 19,689 300 Other related parties (individual balance was less than USD10) 21 20 Total 32,917 12,644 Amounts due from a related party - non-current Other receivables Chizz (note) — 19,619 Total — 19,619 Note: In September 2021, Xunlei Network provided a loan amounted to USD20 million to Chizz at an interest rate of 3% per annum for a term of 2 years. The loan was extended for another 2 years at an interest rate of 5.10% per annum in September 2023. (In thousands) December 31, 2022 December 31, 2023 Amounts due to related parties Other payables Aiden & Jasmine Limited 1,560 — Total 1,560 — |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair value measurements | |
Schedule of financial instruments measured at fair value | Fair value measurements as of December 31, 2022 Quoted prices Significant in active market other Significant for identical observable unobservable assets inputs inputs (In thousands) Total (Level 1) (Level 2) (Level 3) Short-term investments: Investments in structured deposits and wealth management products 32,582 — 32,582 — Fair value measurements as of December 31, 2023 Quoted prices Significant in active market other Significant for identical observable unobservable assets inputs inputs (In thousands) Total (Level 1) (Level 2) (Level 3) Short-term investments: Investments in structured deposits and wealth management products 49,902 — 49,902 — |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies | |
Schedule of undiscounted cash payments | The undiscounted cash payments for each of the next five years as of December 31, 2023 is: (In thousands) 2024 297 2025 166 2026 70 Total undiscounted payments 533 Less: effect of discounting (28) Discounted lease liabilities 505 |
Bandwidth purchase commitments | |
Commitments and contingencies | |
Schedule of undiscounted cash payments | (In thousands) December 31, 2023 2024 195 |
Capital commitments | |
Commitments and contingencies | |
Schedule of undiscounted cash payments | (In thousands) December 31, 2023 2024 7,851 2025 and after 59 7,910 |
Certain risks and concentrati_2
Certain risks and concentration (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Certain risks and concentration | |
Schedule of consolidated financial information of VIEs and VIE's subsidiaries | As of December 31, (In thousands) 2022 2023 Current assets: Cash and cash equivalents 52,142 37,286 Short-term investments — 14,825 Accounts receivable, net 29,162 27,851 Amount due from group companies 5,326 5,278 Due from related parties 13,121 12,330 Inventories 457 2,219 Prepayments and other current assets 2,574 2,579 Total current assets 102,782 102,368 Non-current assets: Long-term investments 5,345 6,668 Property and equipment, net 61,545 59,882 Intangible assets, net 6,546 5,697 Goodwill 21,179 20,826 Long-term prepayments and other assets 2,094 1,928 Operating lease assets 865 575 Restricted cash 7,654 — Total assets 208,010 197,944 Current liabilities: Accounts payable 23,398 21,517 Amount due to group companies 71,925 93,740 Bank borrowings 7,024 6,906 Contract liabilities 37,781 34,723 Income tax payable 3,342 4,739 Accrued liabilities and other payables 43,446 42,035 Lease liabilities, current portion 283 276 Total current liabilities 187,199 203,936 Non-current liabilities: Contract liabilities 876 846 Deferred tax liabilities 687 513 Amount due to group companies 97,617 68,902 Bank borrowings 24,750 15,539 Lease liabilities 299 229 Total liabilities 311,428 289,965 Years ended December 31, (In thousands) 2021 2022 2023 Third-party revenues 228,736 301,853 330,860 Third-party costs of revenues (109,722) (171,116) (177,060) Inter-company operating expenses (8,032) (4,863) (12,896) Third-party operating expenses (110,367) (115,578) (139,613) Net income attributable to Xunlei Limited 2,913 11,136 6,995 Years ended December 31, (In thousands) 2021 2022 2023 Purchases of goods and services from group companies — (29,738) — Sales of goods and services to group companies — — 217 Other operating activities with external parties 24,945 54,684 27,634 Net cash generated from operating activities 24,945 24,946 27,851 Other investing activities with external parties (19,417) (8,801) (21,985) Net cash used in investing activities (19,417) (8,801) (21,985) Loans from group companies 23,527 25,580 437 Repayment of loans to group companies (24,425) (10,830) (19,285) Other financing activities with external parties (223) 13,388 (8,837) Net cash (used in)/generated from financing activities (1,121) 28,138 (27,685) 4,407 44,283 (21,819) |
Additional information_ conde_2
Additional information: condensed financial statements of the Company (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Additional information: condensed financial statements of the Company | |
Schedule of condensed balance sheets | (In thousands) December 31, 2022 December 31, 2023 Assets Current assets: Cash and cash equivalents 32,004 31,919 Short-term investments 29,342 28,382 Due from group companies 5,808 6,583 Prepayments and other current assets 927 1,720 Total current assets 68,081 68,604 Non-current assets: Due from group companies 200,471 199,864 Investments in subsidiaries and consolidated VIEs 49,888 68,086 Total assets 318,440 336,554 Liabilities Current liabilities: Accounts payable 55 — Due to group companies 5,028 8,150 Due to related parties 1,560 — Income tax payable 10 72 Accrued liabilities and other payables 1,894 3,470 Total current liabilities 8,547 11,692 Total liabilities 8,547 11,692 Commitments and contingencies Shareholders’ equity Common shares 81 81 Treasury shares 12 12 Other shareholders’ equity 309,800 324,769 Total Xunlei Limited’s shareholders’ equity 309,893 324,862 Total liabilities and shareholders’ equity 318,440 336,554 |
Schedule of condensed statements of operations | Condensed Statements of Operations Years ended December 31, (In thousands) 2021 2022 2023 Operating expenses General and administrative expenses (3,302) (6,436) (7,931) Total operating expenses (3,302) (6,436) (7,931) Operating loss (3,302) (6,436) (7,931) Interest income 107 360 1,512 Interest expense (95) (93) (93) Other income, net 585 368 3,928 Income from subsidiaries and consolidated VIEs 3,935 27,300 16,948 Income before income tax 1,230 21,499 14,364 Income tax expenses (39) (36) (139) Net income 1,191 21,463 14,225 Net income attributable to Xunlei Limited’s common shareholders 1,191 21,463 14,225 |
Schedule of condensed statements of cash flows | Condensed Statements of Cash Flows Years ended December 31, (In thousands) 2021 2022 2023 Other operating activities with external parties (5,732) (948) (391) Net cash used in operating activities (5,732) (948) (391) Loans to group companies (26,391) (3,450) (188) Other investing activities with external parties 6,553 11,134 2,031 Net cash (used in)/generated from investing activities (19,838) 7,684 1,843 Loans from group companies — — 3,150 Other financing activities with external parties — (6,747) (4,687) Net cash used in financing activities — (6,747) (1,537) Net decrease in cash and cash equivalents (25,570) (11) (85) Cash and cash equivalents at beginning of year 57,585 32,015 32,004 Effect of exchange rates on cash and cash equivalents — — — Cash and cash equivalents at end of year 32,015 32,004 31,919 |
Organization and nature of op_3
Organization and nature of operations - Additional Information (Details) ¥ / shares in Units, ¥ in Millions | 12 Months Ended |
Dec. 31, 2023 CNY (¥) ¥ / shares | |
Organization and nature of operations | |
Number of year's power of attorney retained | 10 years |
Percentage of pre-tax operating profit | 80% |
Giganology Shenzhen | |
Organization and nature of operations | |
Termination of agreement, notice period | 30 days |
Agreement expiration date | 2022 |
Automated extended period of agreement | 10 years |
Agreement expiration extended date | 2032 |
Agreement between Giganology Shenzhen and Mr. Sean Shenglong Zou [Member] | |
Organization and nature of operations | |
Additional interest-free loans | ¥ 20 |
Increase in registered capital | 30 |
Agreement between Giganology Shenzhen and Shareholders of Shenzhen Xunlei [Member] | |
Organization and nature of operations | |
Interest-free loans | ¥ 9 |
Call Option Agreement [Member] | Giganology Shenzhen | |
Organization and nature of operations | |
Agreement expiration date | 2022 |
Outstanding share, purchase price per share | ¥ / shares | ¥ 1 |
Exclusive Technology Support and Services Agreement [Member] | |
Organization and nature of operations | |
Percentage of pre-tax operating profit | 20% |
Exclusive Technology Support and Services Agreement [Member] | Giganology Shenzhen | |
Organization and nature of operations | |
Term agreement expiration year | 2025 |
Exclusive Technology Consulting and Training Agreement [Member] | |
Organization and nature of operations | |
Percentage of pre-tax operating profit | 20% |
Software and Proprietary Technology License Contract [Member] | |
Organization and nature of operations | |
Percentage of pre-tax operating profit | 40% |
Organization and nature of op_4
Organization and nature of operations - Accompanying Consolidated Financial Statements Include Financial Statements of Company, Subsidiaries, Variable Interest Entity ("VIE") and VIE's Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Giganology Shenzhen | |
Organization and nature of operations | |
Place of incorporation | PRC |
Period of incorporation | Jun. 30, 2005 |
Relationship | Subsidiary |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | Development of computer software and provision of information technology services to related companies |
Xunlei Computer | |
Organization and nature of operations | |
Place of incorporation | PRC |
Period of incorporation | Nov. 30, 2011 |
Relationship | Subsidiary |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | Development of computer software and provision of information technology services |
FUNI | |
Organization and nature of operations | |
Place of incorporation | Singapore |
Period of incorporation | Apr. 30, 2021 |
Relationship | Subsidiary |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | Operation of live streaming platforms |
Shenzhen Xunlei | |
Organization and nature of operations | |
Place of incorporation | People’s Republic of China (“PRC”) |
Period of incorporation | Jan. 31, 2003 |
Relationship | VIE |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | Development of software, provision of online advertising and membership subscription |
Wangwenhua | |
Organization and nature of operations | |
Place of incorporation | PRC |
Period of incorporation | Dec. 31, 2005 |
Relationship | VIE’s subsidiary |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | Development of computer software, provision of advertising services and operation of live steaming platforms |
Onething | |
Organization and nature of operations | |
Place of incorporation | PRC |
Period of incorporation | Sep. 30, 2013 |
Relationship | VIE’s subsidiary |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | Development of cloud computing technology and provision of related services |
Beijing Xunjing | |
Organization and nature of operations | |
Place of incorporation | PRC |
Period of incorporation | Oct. 31, 2015 |
Relationship | VIE’s subsidiary |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | Development of computer software and provision of information technology services |
Jiangxi Node | |
Organization and nature of operations | |
Place of incorporation | PRC |
Period of incorporation | Jul. 31, 2020 |
Relationship | VIE’s subsidiary |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | Development of cloud computing technology and provision of related services |
Hainan Xunlei Hammer Network Technologies Co., Ltd. | |
Organization and nature of operations | |
Place of incorporation | PRC |
Period of incorporation | Sep. 30, 2021 |
Relationship | VIE’s subsidiary |
Percentage of direct or indirect economic ownership | 100% |
Principal activities | Development of computer software and operation of live steaming platforms |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of significant accounting policies | |||
Impairment of long-term investments | $ 0 | $ 590,000 | $ 0 |
Cash flow projection period | 5 years | ||
Goodwill impairment losses | $ 0 | 0 | 0 |
External advertising and market promotion expenses from continuing operations | $ 29,140,000 | $ 12,551,000 | $ 15,052,000 |
Value added tax rate from product revenue | 13% | ||
Value added tax on sub-licensing revenues | 6% | ||
VAT payable incurred as tax credit | 105% | 110% | 110% |
Employee benefit costs | $ 16,656,000 | $ 14,266,000 | $ 12,411,000 |
Statutory general reserve rate | 10% | ||
Statutory general reserve rate of registered capital | 50% | ||
Dividends declared | $ 0 | $ 0 | $ 0 |
Minimum | |||
Summary of significant accounting policies | |||
Term of time-based subscriptions | 1 month | ||
Maximum | |||
Summary of significant accounting policies | |||
Term of time-based subscriptions | 12 months | ||
Net revenues | Geographic Concentration Risk | China | Minimum | |||
Summary of significant accounting policies | |||
Percentage of revenue derived from mainland china | 91% | 88% | 95% |
Summary of significant accoun_5
Summary of significant accounting policies - Schedule of Property and Equipment Estimated Useful Life (Details) | Dec. 31, 2023 |
Office building (note) | |
Property and equipment, net | |
Estimated useful lives | 20 years |
Residual rate | 5% |
Building decoration | |
Property and equipment, net | |
Estimated useful lives | 10 years |
Residual rate | 5% |
Servers and network equipment | |
Property and equipment, net | |
Residual rate | 5% |
Servers and network equipment | Minimum | |
Property and equipment, net | |
Estimated useful lives | 3 years |
Servers and network equipment | Maximum | |
Property and equipment, net | |
Estimated useful lives | 5 years |
Computer equipment | |
Property and equipment, net | |
Estimated useful lives | 5 years |
Residual rate | 5% |
Furniture, fixtures and office equipment | |
Property and equipment, net | |
Residual rate | 5% |
Furniture, fixtures and office equipment | Minimum | |
Property and equipment, net | |
Estimated useful lives | 3 years |
Furniture, fixtures and office equipment | Maximum | |
Property and equipment, net | |
Estimated useful lives | 5 years |
Motor vehicles | |
Property and equipment, net | |
Estimated useful lives | 5 years |
Residual rate | 5% |
Leasehold improvements | |
Property and equipment, net | |
Estimated useful lives | 3 years |
Summary of significant accoun_6
Summary of significant accounting policies - Intangible assets (Details) | Dec. 31, 2023 |
Land use rights | |
Intangible assets, net | |
Estimated useful lives | 30 years |
Audio - visual license | |
Intangible assets, net | |
Estimated useful lives | 9 years |
Acquired computer software | |
Intangible assets, net | |
Estimated useful lives | 5 years |
Summary of significant accoun_7
Summary of significant accounting policies - Analysis of Different Types of Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net revenues | |||
Net revenues | $ 364,911 | $ 342,564 | $ 239,601 |
Subscription revenue | |||
Net revenues | |||
Net revenues | 119,343 | 100,557 | 91,174 |
Live streaming revenue and other internet value-added services | |||
Net revenues | |||
Net revenues | 122,157 | 122,372 | 53,614 |
Cloud computing service and product revenue | |||
Net revenues | |||
Net revenues | $ 123,411 | $ 119,635 | $ 94,813 |
Cash and cash equivalents - Add
Cash and cash equivalents - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and cash equivalents | ||
Cash and cash equivalents are time deposits | $ 72,176,000 | $ 54,350,000 |
Cash and cash equivalents - Sum
Cash and cash equivalents - Summary of Cash on Hand and Cash Held at Bank (Details) ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 SGD ($) | Dec. 31, 2023 HKD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 SGD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Cash and cash equivalents | ||||||||||
Cash on hand and cash held at bank | $ 170,802 | $ 177,154 | $ 123,358 | $ 137,248 | ||||||
RMB | ||||||||||
Cash and cash equivalents | ||||||||||
Cash on hand and cash held at bank | 91,553 | ¥ 648,445 | 100,461 | ¥ 699,666 | ||||||
USD | ||||||||||
Cash and cash equivalents | ||||||||||
Cash on hand and cash held at bank | 76,636 | 73,449 | ||||||||
SGD | ||||||||||
Cash and cash equivalents | ||||||||||
Cash on hand and cash held at bank | 2,446 | $ 3,231 | 1,760 | $ 2,370 | ||||||
HKD | ||||||||||
Cash and cash equivalents | ||||||||||
Cash on hand and cash held at bank | 163 | $ 1,275 | 157 | $ 1,223 | ||||||
Other Currency [Member] | ||||||||||
Cash and cash equivalents | ||||||||||
Cash on hand and cash held at bank | $ 4 | $ 1,327 |
Short-term investments - Schedu
Short-term investments - Schedule of Short-Term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term investments | ||
Short-term investments | $ 101,078 | $ 83,626 |
Time deposits | ||
Short-term investments | ||
Short-term investments | 51,176 | 51,044 |
Investments in financial instruments | ||
Short-term investments | ||
Short-term investments | $ 49,902 | $ 32,582 |
Accounts receivable, net - Acco
Accounts receivable, net - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts receivable, net | ||||
Accounts receivable | $ 32,232 | $ 31,192 | ||
Less: Allowance for current expected credit losses | (1,022) | (1,429) | $ (1,764) | $ (9,329) |
Accounts receivable, net | $ 31,210 | $ 29,763 |
Accounts receivable, net - Allo
Accounts receivable, net - Allowance for current expected credit loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts receivable, net | |||
Balance at beginning of the year | $ 1,429 | $ 1,764 | $ 9,329 |
Additions | 213 | 72 | |
Reversals | (189) | (188) | (481) |
Write-off | (408) | (2) | (7,375) |
Exchange difference | (23) | (145) | 219 |
Balance at end of the year | $ 1,022 | $ 1,429 | $ 1,764 |
Accounts receivable, net - Addi
Accounts receivable, net - Additional Information (Details) - customer | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts receivable, net | ||
Number of top customers | 10 | |
Credit concentration risk [Member] | Accounts receivable | Top 10 customers | ||
Accounts receivable, net | ||
Accounts receivable, percentage | 76% | 86% |
Credit concentration risk [Member] | Accounts receivable | Customer A | ||
Accounts receivable, net | ||
Accounts receivable, percentage | 30% | 39% |
Credit concentration risk [Member] | Accounts receivable | Customer B | ||
Accounts receivable, net | ||
Accounts receivable, percentage | 12% | |
Credit concentration risk [Member] | Accounts receivable | Customer C | ||
Accounts receivable, net | ||
Accounts receivable, percentage | 18% | 17% |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventories | |||
Impairment of inventories | $ 0 | $ 15,000 | $ 429,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Inventories | ||
Less: Impairment | $ (250) | $ (281) |
Inventories | 2,219 | 457 |
Hardware devices | ||
Inventories | ||
Inventories | 2,049 | 532 |
Others | ||
Inventories | ||
Inventories | $ 420 | $ 206 |
Prepayments and other assets (D
Prepayments and other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current portion: | ||||
Advance to suppliers | $ 3,059 | $ 4,042 | ||
Receivable related to an asset disposal in 2019 | 3,247 | 3,316 | ||
Receivable from a business disposal in 2015 | 4,288 | |||
Loans to employees | 2,082 | 1,851 | ||
Rental and other deposits | 1,561 | 1,397 | ||
Others | 5,660 | 4,040 | ||
Less: Allowance for current expected credit losses | (6,186) | (10,667) | $ (11,069) | $ (10,283) |
Total of prepayments and other current assets | 9,423 | 8,267 | ||
Non-current portion: | ||||
Loans to employees, non-current portion | 1,687 | 1,543 | ||
Advances to suppliers, non-current portion | 266 | 594 | ||
Total of long-term prepayments and other assets | $ 1,953 | $ 2,137 |
Prepayments and other assets -
Prepayments and other assets - Additional information (Details) - Employees | 12 Months Ended |
Dec. 31, 2023 | |
Minimum | |
Term of interest-free loans to employees | 5 years |
Maximum | |
Term of interest-free loans to employees | 10 years |
Prepayments and other assets- M
Prepayments and other assets- Movement in allowance for current expected credit loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Balance at beginning of the year | $ 10,667 | $ 11,069 | $ 10,283 |
Additions | 745 | 745 | |
Reversals | (100) | (197) | (150) |
Write-off | (4,234) | (54) | |
Exchange difference | (147) | (950) | 245 |
Balance at end of the year | $ 6,186 | $ 10,667 | $ 11,069 |
Long-term investments (Details)
Long-term investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cost method investments: | |||
Balance at beginning of the year | $ 30,811,000 | $ 31,495,000 | |
Additions | 1,418,000 | 0 | |
Net unrealized gains on investments held | 437,000 | ||
Impairment on long-term investments | 0 | (590,000) | $ 0 |
Exchange difference | 95,000 | 531,000 | |
Balance at end of the year | $ 32,134,000 | $ 30,811,000 | $ 31,495,000 |
Long-term investments - Group's
Long-term investments - Group's ownership of the long-term investments (Details) | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Shenzhen Mojingou Information Service Co., Ltd | |||
Equity method investments: | |||
Equity method investments, Percentage of ownership of common share | 28.77% | 28.77% | |
Guangzhou Yuechuan | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 9.30% | ||
Chengdu Diting | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 12.74% | 12.74% | |
Shanghai Guozhi | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 16.80% | 16.80% | |
Guangzhou Hongsi | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 19.90% | 19.90% | |
Xiamen Diensi | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 14.25% | 14.25% | |
11.2 Capital | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 2.03% | 2.03% | |
Cloudtropy | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 9.69% | 9.69% | |
Shanghai Lexiang | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 5.81% | 5.81% | 6.49% |
Hangzhou Feixiang | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 28% | 28% | |
Shenzhen Meizhi Interactive Technology Co Ltd | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 9.40% | ||
Beijing Yunhui Tianxia | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 13.70% | 13.70% | |
Shen Zhen Arashi | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 8.73% | 8.73% | |
Beijing Cloudin Technology | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 4.12% | 4.12% | |
Quanxun Huiju | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 5.40% | 5.40% | |
Blue Bayread Limited | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 1.63% | 1.63% | |
Clapper Media Group Inc. | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 9.58% | 9.58% | |
Yunshang Hemei | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 10% | 10% | |
Beijing Xiaosheng Xiaoyi Technology | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 20% |
Long-term investments - Additio
Long-term investments - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | May 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | |
Long-term investments | ||||||||
Proceeds from disposal of long-term investments | $ | $ 22,000 | $ 42,000 | ||||||
Shanghai Lexiang | ||||||||
Long-term investments | ||||||||
Cost method investments, Percentage of ownership of common share | 5.81% | 5.81% | 6.49% | |||||
Guangzhou Yuechuan | ||||||||
Long-term investments | ||||||||
Cost method investments, Percentage of ownership of common share | 9.30% | |||||||
Proceeds from disposal of long-term investments | ¥ 1 | |||||||
Shenzhen Meizhi Interactive Technology Co Ltd | ||||||||
Long-term investments | ||||||||
Cost method investments, Percentage of ownership of common share | 9.40% | |||||||
Proceeds from disposal of long-term investments | ¥ 1 | |||||||
Beijing Xiaosheng Xiaoyi Technology | ||||||||
Long-term investments | ||||||||
Payments to acquire equity method investments | $ 1,412,000 | ¥ 10,000,000 | ||||||
Cost method investments, Percentage of ownership of common share | 20% | |||||||
Cost Method Investments, Ownership Percentage Acquired | 20% | 20% |
Property and equipment, net (De
Property and equipment, net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property and equipment, net | ||
Total original costs | $ 76,957 | $ 74,535 |
Less: Accumulated depreciation | (15,704) | (12,801) |
Less: Accumulated impairment | (1,225) | |
Total | 60,028 | 61,734 |
Office building (note) | ||
Property and equipment, net | ||
Total original costs | 48,323 | 47,902 |
Servers and network equipment | ||
Property and equipment, net | ||
Total original costs | 15,471 | 15,065 |
Furniture, fixtures and office equipment | ||
Property and equipment, net | ||
Total original costs | 2,110 | 790 |
Computer equipment | ||
Property and equipment, net | ||
Total original costs | 1,811 | 1,624 |
Motor vehicles | ||
Property and equipment, net | ||
Total original costs | 517 | 449 |
Building decoration and leasehold improvements | ||
Property and equipment, net | ||
Total original costs | $ 8,725 | $ 8,705 |
Property and equipment, net - I
Property and equipment, net - Impairment loss (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property and equipment, net | |||
Impairment of property and equipment | $ 1,146,000 | $ 0 | $ 0 |
Property and equipment, net - D
Property and equipment, net - Depreciation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property and equipment, net | |||
Total | $ 4,427 | $ 2,666 | $ 6,319 |
Costs of revenues | |||
Property and equipment, net | |||
Total | 740 | 1,362 | 4,805 |
Research and development expenses | |||
Property and equipment, net | |||
Total | 390 | 467 | 436 |
Sales and marketing expenses | |||
Property and equipment, net | |||
Total | 7 | 9 | 10 |
General and administrative expenses | |||
Property and equipment, net | |||
Total | $ 3,290 | $ 828 | $ 1,068 |
Operating lease assets and le_3
Operating lease assets and lease liabilities - Net book amount (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating lease assets and lease liabilities | |||
Net book amount, Beginning balance | $ 865,000 | $ 27,000 | |
Additions | 927,000 | 920,000 | |
Amortization | (551,000) | (56,000) | $ (1,934,000) |
Modification | (652,000) | ||
Effect of foreign currency exchange differences | (14,000) | (26,000) | |
Net book amount, Ending balance | 575,000 | 865,000 | 27,000 |
Charge recognized in relation to short-term lease | 1,645,000 | $ 2,457,000 | $ 786,000 |
Future minimum payments under non-cancellable short-term operating leases | $ 96,000 | ||
Discount rate related to operating lease (as a percent) | 5.10% | 5.40% | 5.40% |
Weighted average remaining lease term (in years) | 2 years | 3 years | 9 months 18 days |
Cash payments in respect of operating lease | $ 2,386,000 | $ 2,792,000 | $ 2,003,000 |
Minimum | |||
Right-of-use assets and lease liabilities | |||
Operating lease, term of contract (in years) | 1 year | ||
Maximum | |||
Right-of-use assets and lease liabilities | |||
Operating lease, term of contract (in years) | 3 years |
Operating lease assets and le_4
Operating lease assets and lease liabilities - Undiscounted cash payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Undiscounted cash payment | |
2024 | $ 297 |
2025 | 166 |
2026 | 70 |
Total undiscounted payments | 533 |
Less: effect of discounting | (28) |
Discounted lease liabilities | $ 505 |
Intangible assets, net (Details
Intangible assets, net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible assets, net | ||
Cost | $ 13,799 | $ 13,672 |
Amortization | (8,102) | (7,126) |
Net book value | 5,697 | 6,546 |
Land use rights | ||
Intangible assets, net | ||
Cost | 4,697 | 4,777 |
Amortization | (1,629) | (1,498) |
Net book value | 3,068 | 3,279 |
Audio - visual license | ||
Intangible assets, net | ||
Cost | 5,537 | 5,631 |
Amortization | (3,484) | (2,884) |
Net book value | 2,053 | 2,747 |
Acquired computer software | ||
Intangible assets, net | ||
Cost | 3,565 | 3,264 |
Amortization | (2,989) | (2,744) |
Net book value | $ 576 | $ 520 |
Intangible assets, net - Amorti
Intangible assets, net - Amortization expense recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets, net | |||
Amortization expense | $ 1,101 | $ 1,086 | $ 1,129 |
Costs of revenues | |||
Intangible assets, net | |||
Amortization expense | 53 | 54 | 10 |
Research and development expenses | |||
Intangible assets, net | |||
Amortization expense | 6 | ||
General and administrative expenses | |||
Intangible assets, net | |||
Amortization expense | $ 1,048 | $ 1,032 | $ 1,113 |
Intangible assets, net - Estima
Intangible assets, net - Estimated aggregate amortization expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Intangible assets, net | |
2024 | $ 1,016 |
2025 | 925 |
2026 | 913 |
2027 | 366 |
2028 and thereafter | $ 2,477 |
Intangible assets, net - Weight
Intangible assets, net - Weighted average amortization periods of intangible assets (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Intangible assets, net | ||
Total weighted average amortization periods | 10 years | 10 years |
Land use rights | ||
Intangible assets, net | ||
Total weighted average amortization periods | 30 years | 30 years |
Audio-visual license | ||
Intangible assets, net | ||
Total weighted average amortization periods | 9 years | 9 years |
Acquired computer software | ||
Intangible assets, net | ||
Total weighted average amortization periods | 5 years | 5 years |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill | ||
Beginning balance | $ 21,179 | $ 23,136 |
Foreign currency translation adjustment | (353) | (1,957) |
Ending balance | $ 20,826 | $ 21,179 |
Contract liabilities (Details)
Contract liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Contract Liabilities [Line Items] | |||
Total | $ 37,221,000 | $ 39,843,000 | |
Less: non-current portion (note b) | (846,000) | (876,000) | |
Contract liabilities, current portion | 36,375,000 | 38,967,000 | |
Membership subscription | |||
Contract Liabilities [Line Items] | |||
Total | 35,969,000 | 37,721,000 | |
Less: non-current portion (note b) | (846,000) | (876,000) | |
Live Streaming | |||
Contract Liabilities [Line Items] | |||
Total | 830,000 | 969,000 | |
Others | |||
Contract Liabilities [Line Items] | |||
Total | [1] | $ 422,000 | $ 1,153,000 |
[1] Contract liabilities were related to unsatisfied performance obligations at the end of the year. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following period. The amount of revenue recognized that was included in contract liabilities balance at the beginning of the year was USD 35,380,000 and USD 38,016,000 for the years ended December 31, 2022 and 2023, respectively |
Contract liabilities - Addition
Contract liabilities - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contract Liabilities [Line Items] | ||
Contract liabilities | $ 38,016,000 | $ 35,380,000 |
Contract liabilities (including contract liabilities of the consolidated VIEs without recourse to the Company of USD876 and USD846 as of December 31, 2022 and 2023, respectively) | 846,000 | 876,000 |
Membership subscription | ||
Contract Liabilities [Line Items] | ||
Contract liabilities (including contract liabilities of the consolidated VIEs without recourse to the Company of USD876 and USD846 as of December 31, 2022 and 2023, respectively) | $ 846,000 | $ 876,000 |
Accrued liabilities and other_3
Accrued liabilities and other payables (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued liabilities and other payables | ||
Payroll and welfare | $ 24,702 | $ 23,277 |
Tax levies | 7,879 | 4,178 |
Payables related to Xunlei Kankan | 2,418 | |
Payables for advertisement | 3,473 | 1,980 |
Legal and litigation related expenses (note 25) | 1,168 | 634 |
Professional service fees | 1,273 | 1,656 |
Agency commissions and rebates from online advertising | 2,525 | |
Payables for office building | 8,623 | 8,528 |
Payables related to share repurchase | 2,774 | 1,120 |
Others | 3,816 | 3,122 |
Total | $ 53,708 | $ 49,438 |
Bank borrowings (Details)
Bank borrowings (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Bank borrowings, current portion | $ 6,906,000 | $ 7,024,000 | |
Bank borrowings, non-current portion | 15,539,000 | 24,750,000 | |
Total | 22,445,000 | 31,774,000 | |
Net interest expense capitalized | $ 1,593,000 | $ 1,000,000 | |
Interest expense, expensed | $ 1,360,000 | ||
Minimum | Loan Prime Rate | |||
Debt Instrument [Line Items] | |||
Spread on variable basis rate | 15% | ||
Median | Loan Prime Rate | |||
Debt Instrument [Line Items] | |||
Spread on variable basis rate | 30% | ||
Maximum | Loan Prime Rate | |||
Debt Instrument [Line Items] | |||
Spread on variable basis rate | 98.50% |
Bank borrowings - Maturity of b
Bank borrowings - Maturity of bank borrowings (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Maturity of bank borrowings | |
Within 1 year | $ 6,906 |
Between 1 to 2 years | 6,906 |
Between 2 to 3 years | 6,906 |
Between 3 to 4 years | $ 1,727 |
Common shares - Additional Info
Common shares - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 Vote $ / shares shares | Dec. 31, 2022 shares | |
Common shares. | ||
Common stock, shares authorized | 1,000,000,000 | |
Common stock, par value | $ / shares | $ 0.00025 | |
Number of votes per common share | Vote | 1 | |
Common stock, shares outstanding | 323,525,556 | 325,047,736 |
Repurchase of shares (Details)
Repurchase of shares (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Mar. 31, 2022 | |
Share Buyback Program 2022 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Share repurchase authorized amount | $ 20 | |||
Total number of ADS Purchased | 569,748 | 4,409,974 | ||
ADS repurchased | $ 1.1 | $ 6.7 | ||
Share Buyback Program 2023 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Share repurchase authorized amount | $ 20 | |||
Total number of ADS Purchased | 2,037,721 | |||
ADS repurchased | $ 3.6 |
Share-based compensation - 2020
Share-based compensation - 2020 Plan (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Aug. 31, 2023 | Jul. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | |
Share-based compensation | |||||||||
Number of shares available for grant | 46,561,200 | ||||||||
Number of shares repurchased under repurchase programs | 9,667,230 | ||||||||
Existing Plans | |||||||||
Share-based compensation | |||||||||
Common shares reserved for future issuance | 21,039,742 | ||||||||
Number of restricted share vested | 320,000 | 330,000 | 426,000 | ||||||
Number of restricted share forfeited | 0 | 0 | 210,000 | ||||||
Number of restricted share unvested | 0 | ||||||||
2020 Incentive Plan [Member] | |||||||||
Share-based compensation | |||||||||
Number of shares available for grant | 31,000,000 | 4,155,445 | 2,202,325 | ||||||
Common shares reserved for future issuance | 293,028 | ||||||||
Restricted shares expected to vest | 500 | ||||||||
Future forfeitures rate | 25% | ||||||||
Unrecognized compensation costs on restricted shares | $ 5,161,700 | $ 10,161,200 | |||||||
2020 Incentive Plan [Member] | Restricted shares [Member] | |||||||||
Share-based compensation | |||||||||
Number of restricted share vested | 11,195,165 | 9,509,660 | 2,429,965 | ||||||
Number of restricted share forfeited | 491,670 | 1,716,665 | 2,777,500 | ||||||
Number of restricted share unvested | 25,884,375 | 17,656,965 | 16,858,050 | 25,884,375 | |||||
2020 Incentive Plan [Member] | Tranche One [Member] | Restricted Shares With 2 Years Vesting Period [Member] | |||||||||
Share-based compensation | |||||||||
Restricted shares expected to vest | 15,059,340 | ||||||||
2020 Incentive Plan [Member] | Tranche Two [Member] | Restricted Shares With 2 Years Vesting Period [Member] | |||||||||
Share-based compensation | |||||||||
Vesting period | 2 years | ||||||||
2020 Incentive Plan [Member] | Tranche Two [Member] | Restricted Shares With 3 Years Vesting Period [Member] | |||||||||
Share-based compensation | |||||||||
Restricted shares expected to vest | 90,000 | ||||||||
Number of restricted share vested | 30,000 | ||||||||
2020 Incentive Plan [Member] | Tranche Three [Member] | Restricted Shares With 3 Years Vesting Period [Member] | |||||||||
Share-based compensation | |||||||||
Vesting period | 3 years | ||||||||
2020 Incentive Plan [Member] | Tranche Three [Member] | Restricted Shares With 3 Years Vesting Period And Vesting On Second and Third Anniversary [Member] | |||||||||
Share-based compensation | |||||||||
Restricted shares expected to vest | 25,141,915 | ||||||||
Vesting period | 3 years | ||||||||
Number of restricted share vested | 333,330 | 133,335 | 1,699,990 | ||||||
2020 Incentive Plan [Member] | Tranche Four [Member] | Restricted Shares With 5 Years Vesting Period [Member] | |||||||||
Share-based compensation | |||||||||
Restricted shares expected to vest | 500,000 | ||||||||
Vesting period | 5 years | ||||||||
Number of restricted share vested | 100,000 | ||||||||
2020 Incentive Plan [Member] | Minimum | |||||||||
Share-based compensation | |||||||||
Number of shares available for grant | 31,000,000 |
Share-based compensation - Summ
Share-based compensation - Summary of Restricted Shares Activities (Details) - 2020 Incentive Plan [Member] - Restricted shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of restricted shares | |||
Unvested at beginning of period | 16,858,050 | 25,884,375 | |
Granted | 12,485,750 | 2,200,000 | 31,091,840 |
Vested | (11,195,165) | (9,509,660) | (2,429,965) |
Forfeited | (491,670) | (1,716,665) | (2,777,500) |
Unvested at end of period | 17,656,965 | 16,858,050 | 25,884,375 |
Vested and expected to vest | 13,242,724 | 12,643,538 | 19,413,281 |
Weighted-Average Grant-Date Fair Value | |||
Weighted-Average Grant Date Fair Value, Granted | $ 0.36 | $ 0.31 | $ 0.83 |
Share-based compensation - Sche
Share-based compensation - Schedule of Recognized Compensation Costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based compensation | |||
Total compensation costs | $ 9,676,000 | $ 8,184,000 | $ 6,170,000 |
Terminated plans | |||
Share-based compensation | |||
Total compensation costs | 352,000 | 748,800 | 800,700 |
Sales and marketing expenses | |||
Share-based compensation | |||
Total compensation costs | 48,000 | 59,000 | |
General and administrative expenses | |||
Share-based compensation | |||
Total compensation costs | 8,113,000 | 6,855,000 | 4,682,000 |
Research and development expenses | |||
Share-based compensation | |||
Total compensation costs | $ 1,515,000 | $ 1,329,000 | $ 1,429,000 |
Costs of revenues - Schedule of
Costs of revenues - Schedule of cost of revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Costs of revenues | |||
Total | $ 200,649 | $ 200,054 | $ 118,603 |
Bandwidth costs | |||
Costs of revenues | |||
Total | 112,522 | 104,580 | 80,720 |
Revenue-sharing from live streaming business | |||
Costs of revenues | |||
Total | 67,302 | 78,636 | 26,506 |
Payment handling charges | |||
Costs of revenues | |||
Total | 8,494 | 6,500 | 3,066 |
Cost of inventories sold | |||
Costs of revenues | |||
Total | 5,911 | 2,228 | 1,516 |
Depreciation of servers and other equipment | |||
Costs of revenues | |||
Total | 740 | 1,363 | 4,805 |
Other costs | |||
Costs of revenues | |||
Total | $ 5,680 | $ 6,747 | $ 1,990 |
Other income, net - Schedule of
Other income, net - Schedule of Other income, net (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other income, net | |||
Gains from reversal of long outstanding payables | $ 6,831,000 | $ 3,239,000 | |
Investment income from short-term investments | 4,354,000 | 2,903,000 | $ 2,486,000 |
Government subsidy income | 2,360,000 | 2,377,000 | 3,206,000 |
Exchange (losses)/gains, net | 1,693,000 | 4,494,000 | (1,205,000) |
VAT deduction | 840,000 | 1,220,000 | 818,000 |
Net unrealized gains arising from long-term investments | 437,000 | ||
Impairment of long-term investments | (590,000) | ||
Rental income | 199,000 | ||
Others | 627,000 | (535,000) | (627,000) |
Total | 16,904,000 | 13,545,000 | 4,678,000 |
Interest income from time deposits | 1,389,000 | 361,000 | 599,000 |
Investment income from investments in financial instruments | $ 2,965,000 | $ 2,543,000 | $ 1,888,000 |
Taxation - Schedule of Current
Taxation - Schedule of Current and Deferred Portions of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxation | |||
Current income tax expenses | $ 4,559 | $ 4,450 | $ 53 |
Deferred income tax benefits | (428) | (382) | (178) |
Income tax (benefits)/expenses | $ 4,131 | $ 4,068 | $ (125) |
Taxation - Summary of Aggregate
Taxation - Summary of Aggregate Amount and Per Share Effect of Tax Holiday (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxation | |||
Aggregate dollar effect (in thousands) | $ 5,121 | $ 5,243 | $ 4,100 |
Per share effect-basic | $ 0.02 | $ 0.02 | $ 0.01 |
Per share effect-diluted | $ 0.02 | $ 0.02 | $ 0.01 |
Taxation - Reconciliation of To
Taxation - Reconciliation of Total Tax (Benefits) Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Continuing operations | |||
Income tax expenses/(benefits) at PRC statutory rate (based on statutory tax rate applicable to enterprises in China) | $ 3,965 | $ 5,047 | $ 246 |
Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC | 1,615 | 1,640 | 2,571 |
Non-deductible expenses | 306 | 468 | 47 |
Effect of Super Deduction | (3,609) | (2,594) | (2,262) |
Effect of tax holidays and tax concessions | (5,121) | (5,243) | (4,100) |
Change in valuation allowance of deferred tax assets | 7,170 | 4,709 | 3,507 |
Others | (195) | 41 | (134) |
Income tax (benefits)/expenses | $ 4,131 | $ 4,068 | $ (125) |
Taxation - Summary of Changes i
Taxation - Summary of Changes in Deferred Tax Asset and Liability Balances (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||||
Net operating losses carried forward (note a) | $ 49,921,000 | $ 41,240,000 | ||
Impairment of long-term equity investments | 493,000 | 3,972,000 | ||
Provision of allowance for expected credit losses | 1,071,000 | 1,841,000 | ||
Others | 861,000 | 383,000 | ||
Valuation allowance (note b) | (51,868,000) | (47,223,000) | $ (45,580,000) | $ (40,924,000) |
Deferred tax assets, net | 478,000 | 213,000 | ||
Deferred tax liabilities: | ||||
Deferred credit arising from an asset acquisition | (513,000) | $ (687,000) | ||
Accumulated net operating loss which can be carried forward indefinitely | 5,795,000 | |||
Accumulated net operating loss which can be carried forward and will expire during the period from 2024 to 2030 | $ 241,049,000 |
Taxation - Deferred Tax Assets
Taxation - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
deferred tax liabilities balances | ||
Within one year | $ 162 | $ 165 |
After one year | 351 | 522 |
Total deferred tax liabilities | $ 513 | $ 687 |
Taxation - Schedule of Movement
Taxation - Schedule of Movement of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxation | |||
Beginning balance | $ 47,223 | $ 45,580 | $ 40,924 |
Additions | (7,406) | (5,931) | (3,507) |
Exchange difference | 2,525 | 3,066 | (1,149) |
Reversals | (236) | (1,222) | |
Ending balance | $ 51,868 | $ 47,223 | $ 45,580 |
Taxation - Additional Informati
Taxation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Giganology Shenzhen and Xunlei Computer | ||||
Taxation | ||||
Withholding tax rate on foreign enterprises | 10% | |||
PRC Enterprise | ||||
Taxation | ||||
Effective income tax rate | 25% | |||
Jiangxi Node | ||||
Taxation | ||||
Preferential tax rate (as a percent) | 15% | 15% | 15% | |
Qianhai Shenzhen Hongkong Modern Service Industry Cooperation Zoon | ||||
Taxation | ||||
Preferential tax rate (as a percent) | 15% | 15% | 15% | |
High And New Technology Enterprises | Shenzhen Xunlei, Onething, Wangwenhua and Xunlei Computer | ||||
Taxation | ||||
Preferential tax rate (as a percent) | 15% | 15% | 15% | |
State authority of china | Research And Development Enterprise Activities | Shenzhen Xunlei | ||||
Taxation | ||||
Portion of research and development expenses incurred that are allowable as tax deductible expenses (as a percent) | 200% | 175% | ||
Domestic Tax Authority | ||||
Taxation | ||||
Withholding tax rate on foreign enterprises | 10% | |||
Withholding tax accrued or required to be accrued | $ 0 | $ 0 | $ 0 | |
Domestic Tax Authority | High And New Technology Enterprises | PRC Enterprise | ||||
Taxation | ||||
Preferential tax rate (as a percent) | 15% | |||
Foreign Tax Authority | British Virgin Islands | ||||
Taxation | ||||
Withholding taxes on dividends paid | $ 0 | |||
Foreign Tax Authority | Hong Kong Subsidiaries | ||||
Taxation | ||||
Income tax rate | 16.50% | 16.50% | 16.50% | |
Foreign Tax Authority | Singapore Subsidiaries | ||||
Taxation | ||||
Income tax rate | 17% | |||
Foreign Tax Authority | Cayman Islands | ||||
Taxation | ||||
Withholding taxes on dividends paid | $ 0 |
Basic and diluted net income _2
Basic and diluted net income per share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income | $ 14,266 | $ 21,347 | $ 1,108 |
Less: net (loss)/income attributable to the non-controlling interests | 41 | (116) | (83) |
Net (loss)/income attributable to Xunlei Limited's common shareholders for basic net (loss)/income per share calculation | 14,225 | 21,463 | 1,191 |
Numerator of basic net (loss)/income per share | $ 14,225 | $ 21,463 | $ 1,191 |
Denominator: | |||
Weighted average number of common shares outstanding, basic (in shares) | 326,390,687 | 336,040,378 | 334,707,559 |
Dilutive effect of restricted share units | 458,815 | 195,123 | 1,262,221 |
Weighted average number of common shares outstanding, diluted (in shares) | 326,849,502 | 336,235,501 | 335,969,780 |
Basic net income (in dollars per share) | $ 0.0436 | $ 0.0639 | $ 0.0036 |
Diluted net income (in dollars per share) | $ 0.0435 | $ 0.0638 | $ 0.0035 |
Related party transactions - Sc
Related party transactions - Schedule of Relationship Between Related Parties with their Groups (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Aiden & Jasmine Limited | |
Relationship between related parties with their groups | |
Relationship with the Group | Shareholder of the Company |
Millet Technology Co., Ltd. ("Xiaomi Technology") | |
Relationship between related parties with their groups | |
Relationship with the Group | (note) |
Guangzhou Millet Information Service Co., Ltd. ("Guangzhou Millet") | |
Relationship between related parties with their groups | |
Relationship with the Group | (note) |
Shenzhen Xiaomi Technology Co., Ltd. ("Shenzhen Xiaomi") | |
Relationship between related parties with their groups | |
Relationship with the Group | (note) |
Beijing Xiaobu Technology Co., Ltd. ("Beijing Xiaobu") | |
Relationship between related parties with their groups | |
Relationship with the Group | Company owned by the principal shareholder of the Company |
Sungai Pte. Ltd. ("Sungai") | |
Relationship between related parties with their groups | |
Relationship with the Group | Company owned by the principal shareholder of the Company |
Beijing Itui Technology Co., Ltd. ("Beijing Itui") | |
Relationship between related parties with their groups | |
Relationship with the Group | Company owned by the principal shareholder of the Company |
Itui Online | |
Relationship between related parties with their groups | |
Relationship with the Group | Company owned by the principal shareholder of the Company |
Chizz (HK) Limited ("Chizz") | |
Relationship between related parties with their groups | |
Relationship with the Group | Company owned by the principal shareholder of the Company |
Related party transactions - _2
Related party transactions - Schedule of Significant Related Party Transactions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Relationship between related parties with their groups | |||
Revenues | $ 363,722 | $ 341,497 | $ 238,782 |
Costs of revenues (including transactions with related parties) | 200,649 | 200,054 | 118,603 |
Xiaomi Technology | Cloud computing services | |||
Relationship between related parties with their groups | |||
Revenues | 7,604 | 4,978 | 2,798 |
Guangzhou Millet | Technical service | |||
Relationship between related parties with their groups | |||
Revenues | 1,245 | ||
Beijing Itui Technology Co., Ltd. | Cloud computing services | |||
Relationship between related parties with their groups | |||
Revenues | 358 | 592 | 821 |
Itui Online | Advertising | |||
Relationship between related parties with their groups | |||
Revenues | 8,941 | 7,804 | 11,648 |
Shenzhen Xiaomi Technology Co., Ltd. | Technical service | |||
Relationship between related parties with their groups | |||
Revenues | 354 | 2,505 | 1,392 |
Shenzhen Xiaomi Technology Co., Ltd. | Advertising | |||
Relationship between related parties with their groups | |||
Revenues | 13 | 112 | 380 |
Quanxun Huiju | Bandwidth | |||
Relationship between related parties with their groups | |||
Costs of revenues (including transactions with related parties) | 730 | ||
Chizz | Technical service | |||
Relationship between related parties with their groups | |||
Interest income from Chizz | $ 724 | $ 626 | $ 176 |
Related party transactions - _3
Related party transactions - Schedule of Amount Due to from Related Party (Detail) - USD ($) $ in Thousands | 1 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Amounts due from related parties - current | ||||
Amounts due from related parties - current | $ 12,644 | $ 32,917 | ||
Amounts due from a related party - non-current | ||||
Amounts due from related parties - non-current | 19,619 | |||
Due to related parties | 0 | 1,560 | ||
Itui Online | ||||
Amounts due from related parties - current | ||||
Amounts due from related parties - current | 9,061 | 7,910 | ||
Shenzhen Xiaomi | ||||
Amounts due from related parties - current | ||||
Amounts due from related parties - current | 705 | 1,378 | ||
Xiaomi Technology | ||||
Amounts due from related parties - current | ||||
Amounts due from related parties - current | 1,831 | 1,871 | ||
Beijing Xiaobu | ||||
Amounts due from related parties - current | ||||
Amounts due from related parties - current | 394 | 1,419 | ||
Beijing Itui Technology Co., Ltd. | ||||
Amounts due from related parties - current | ||||
Amounts due from related parties - current | 333 | 537 | ||
Sungai | ||||
Amounts due from related parties - current | ||||
Amounts due from related parties - current | 92 | |||
Chizz | ||||
Relationship between related parties with their groups | ||||
Face value | $ 20,000 | |||
Interest rate | 5.10% | 3% | ||
Due to term | 2 years | |||
Extended term | 2 years | |||
Amounts due from related parties - current | ||||
Amounts due from related parties - current | 300 | 19,689 | ||
Amounts due from a related party - non-current | ||||
Amounts due from related parties - non-current | 19,619 | |||
Other related parties | ||||
Amounts due from related parties - current | ||||
Amounts due from related parties - current | 20 | 21 | ||
Aiden & Jasmine Limited | ||||
Amounts due from a related party - non-current | ||||
Due to related parties | $ 0 | $ 1,560 |
Fair value measurements - Sched
Fair value measurements - Schedule of financial instruments measured at fair value (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair value measurements | ||
Investments in structured deposits and wealth management products | $ 49,902 | $ 32,582 |
Level 2 | ||
Fair value measurements | ||
Investments in structured deposits and wealth management products | $ 49,902 | $ 32,582 |
Commitments and contingencies -
Commitments and contingencies - Future Minimum Payments under Non-Cancellable Leases (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Future minimum payments under non-cancellable | |
2024 | $ 297 |
Bandwidth purchase commitments | |
Future minimum payments under non-cancellable | |
2024 | $ 195 |
Commitments and contingencies_2
Commitments and contingencies - Capital commitments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and contingencies | |
2024 | $ 7,851 |
2025 and after | 59 |
Unrecorded unconditional purchase obligation | $ 7,910 |
Commitments and contingencies_3
Commitments and contingencies - Additional Information (Details) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) case | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Commitments and contingencies | ||||
Legal and litigation related expenses | $ 935,000 | $ 188,000 | $ 997,000 | |
Number of lawsuits pending | case | 14 | |||
Legal and litigation related expenses | $ 1,168,000 | 634,000 | ||
Pending Litigation | ||||
Commitments and contingencies | ||||
Number of lawsuits pending | case | 14 | |||
Aggregate amount of claimed damages | $ 2,900,000 | ¥ 20.1 | 800,000 | |
Legal and litigation related expenses | $ 1,168,000 | $ 634,000 |
Certain risks and concentrati_3
Certain risks and concentration - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) customer | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Certain risks and concentration | |||
Maximum foreign ownership in internet information provider or other value-added telecommunication service provider's business allowed under PRC laws and regulations | 50% | ||
Revenues | $ 363,722,000 | $ 341,497,000 | $ 238,782,000 |
Number of top customers accounted for net revenues | customer | 10 | ||
Restricted net assets | $ 173,226,000 | ||
Percentage of restricted net assets | 53% | ||
Shenzhen Xunlei | |||
Certain risks and concentration | |||
Term of operating contract | 10 years | ||
Net revenues | Concentration of customer risk | Top 10 customers | |||
Certain risks and concentration | |||
Percentage of net revenues accounted from customers | 31% | 33% | 35% |
Net revenues | Concentration of customer risk | Customer A | |||
Certain risks and concentration | |||
Percentage of net revenues accounted from customers | 15% | 14% | 13% |
Revenues | $ 53,900,000 | $ 49,400,000 | $ 31,400,000 |
Certain risks and concentrati_4
Certain risks and concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Balance sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||||
Cash and cash equivalents | $ 170,802 | $ 177,154 | $ 123,358 | $ 137,248 |
Short-term investments | 101,078 | 83,626 | ||
Accounts receivable, net | 31,210 | 29,763 | ||
Due from related parties (Allowance for current expected credit losses of USD639 and USD388 as of December 31, 2022 and 2023, respectively) | 12,644 | 32,917 | ||
Inventories | 2,219 | 457 | ||
Prepayments and other current assets | 9,423 | 8,267 | ||
Total current assets | 327,376 | 332,184 | ||
Non-current assets: | ||||
Long-term investments | 32,134 | 30,811 | ||
Property and equipment, net | 60,028 | 61,734 | ||
Intangible assets, net | 5,697 | 6,546 | ||
Goodwill | 20,826 | 21,179 | 23,136 | |
Long-term prepayments and other assets | 1,953 | 2,137 | ||
Operating lease assets | 575 | 865 | $ 27 | |
Restricted cash | 7,654 | |||
Total assets | 468,686 | 463,323 | ||
Current liabilities: | ||||
Accounts payable | 24,430 | 25,432 | ||
Due to related parties | 0 | 1,560 | ||
Bank borrowings, current portion | 6,906 | 7,024 | ||
Accrued liabilities and other payables | 53,708 | 49,438 | ||
Lease liabilities, current portion | 276 | 283 | ||
Total current liabilities | 128,086 | 128,290 | ||
Non-current liabilities: | ||||
Contract liabilities | 846 | 876 | ||
Deferred tax liabilities | 513 | 687 | ||
Bank borrowings | 15,539 | 24,750 | ||
Lease liabilities | 229 | 299 | ||
Total liabilities | 145,213 | 154,902 | ||
VIEs | ||||
Current assets: | ||||
Cash and cash equivalents | 37,286 | 52,142 | ||
Short-term investments | 14,825 | |||
Accounts receivable, net | 27,851 | 29,162 | ||
Due from related parties (Allowance for current expected credit losses of USD639 and USD388 as of December 31, 2022 and 2023, respectively) | 5,278 | 5,326 | ||
Due from related parties | 12,330 | 13,121 | ||
Inventories | 2,219 | 457 | ||
Prepayments and other current assets | 2,579 | 2,574 | ||
Total current assets | 102,368 | 102,782 | ||
Non-current assets: | ||||
Long-term investments | 6,668 | 5,345 | ||
Property and equipment, net | 59,882 | 61,545 | ||
Intangible assets, net | 5,697 | 6,546 | ||
Goodwill | 20,826 | 21,179 | ||
Long-term prepayments and other assets | 1,928 | 2,094 | ||
Operating lease assets | 575 | 865 | ||
Restricted cash | 7,654 | |||
Total assets | 197,944 | 208,010 | ||
Current liabilities: | ||||
Accounts payable | 21,517 | 23,398 | ||
Due to related parties | 93,740 | 71,925 | ||
Bank borrowings, current portion | 6,906 | 7,024 | ||
Contract liabilities | 34,723 | 37,781 | ||
Income tax payable | 4,739 | 3,342 | ||
Accrued liabilities and other payables | 42,035 | 43,446 | ||
Lease liabilities, current portion | 276 | 283 | ||
Total current liabilities | 203,936 | 187,199 | ||
Non-current liabilities: | ||||
Contract liabilities | 846 | 876 | ||
Deferred tax liabilities | 513 | 687 | ||
Amount due to group companies | 68,902 | 97,617 | ||
Bank borrowings | 15,539 | 24,750 | ||
Lease liabilities | 229 | 299 | ||
Total liabilities | $ 289,965 | $ 311,428 |
Certain risks and concentrati_5
Certain risks and concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Certain risks and concentration | |||
Revenues | $ 363,722 | $ 341,497 | $ 238,782 |
Cost of revenues | (200,649) | (200,054) | (118,603) |
Operating expenses | (164,685) | (131,378) | (124,502) |
Net income attributable to Xunlei Limited | 14,225 | 21,463 | 1,191 |
VIEs | |||
Certain risks and concentration | |||
Net income attributable to Xunlei Limited | 6,995 | 11,136 | 2,913 |
VIEs | Third-party | |||
Certain risks and concentration | |||
Revenues | 330,860 | 301,853 | 228,736 |
Cost of revenues | (177,060) | (171,116) | (109,722) |
Operating expenses | (139,613) | (115,578) | (110,367) |
VIEs | Inter-company | |||
Certain risks and concentration | |||
Operating expenses | $ (12,896) | $ (4,863) | $ (8,032) |
Certain risks and concentrati_6
Certain risks and concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Certain risks and concentration | |||
Net (decrease)/increase in cash, cash equivalents and restricted cash | $ (11,706) | $ 69,508 | $ (13,362) |
VIEs | |||
Certain risks and concentration | |||
Purchases of goods and services from group companies | (29,738) | ||
Sales of goods and services to group companies | 217 | ||
Other operating activities with external parties | 27,634 | 54,684 | 24,945 |
Net cash (used in)/generated from operating activities | (27,851) | (24,946) | (24,945) |
Other investing activities with external parties | (21,985) | (8,801) | (19,417) |
Net cash used in investing activities | (21,985) | (8,801) | (19,417) |
Loans from group companies | 437 | 25,580 | 23,527 |
Repayment of loans to group companies | (19,285) | (10,830) | (24,425) |
Other financing activities with external parties | 8,837 | (13,388) | 223 |
Net cash generated from/(used in) financing activities | (27,685) | 28,138 | (1,121) |
Net (decrease)/increase in cash, cash equivalents and restricted cash | $ (21,819) | $ 44,283 | $ 4,407 |
Additional information_ conde_3
Additional information: condensed financial statements of the Company - Schedule of Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||||
Cash and cash equivalents | $ 170,802 | $ 177,154 | $ 123,358 | $ 137,248 |
Short-term investments | 101,078 | 83,626 | ||
Due from related parties (Allowance for current expected credit losses of USD639 and USD388 as of December 31, 2022 and 2023, respectively) | 12,644 | 32,917 | ||
Prepayments and other current assets | 9,423 | 8,267 | ||
Total current assets | 327,376 | 332,184 | ||
Non-current assets: | ||||
Due from a related party (Allowance for current expected credit losses of nil and USD381 as of December 31, 2022 and 2023, respectively) | 19,619 | |||
Total assets | 468,686 | 463,323 | ||
Current liabilities: | ||||
Accounts payable | 24,430 | 25,432 | ||
Due to related parties | 0 | 1,560 | ||
Income tax payable | 6,391 | 5,586 | ||
Total current liabilities | 128,086 | 128,290 | ||
Total liabilities | 145,213 | 154,902 | ||
Commitments and contingencies | ||||
Shareholders' equity | ||||
Common shares | 81 | 81 | ||
Treasury shares | 12 | 12 | ||
Total Xunlei Limited's shareholders' equity | 324,862 | 309,893 | ||
Total liabilities and shareholders' equity | 468,686 | 463,323 | ||
Xunlei Limited | ||||
Current assets: | ||||
Cash and cash equivalents | 31,919 | 32,004 | $ 32,015 | $ 57,585 |
Short-term investments | 28,382 | 29,342 | ||
Due from related parties (Allowance for current expected credit losses of USD639 and USD388 as of December 31, 2022 and 2023, respectively) | 6,583 | 5,808 | ||
Prepayments and other current assets | 1,720 | 927 | ||
Total current assets | 68,604 | 68,081 | ||
Non-current assets: | ||||
Due from a related party (Allowance for current expected credit losses of nil and USD381 as of December 31, 2022 and 2023, respectively) | 199,864 | 200,471 | ||
Investments in subsidiaries and consolidated VIEs | 68,086 | 49,888 | ||
Total assets | 336,554 | 318,440 | ||
Current liabilities: | ||||
Accounts payable | 55 | |||
Due to group companies | 8,150 | 5,028 | ||
Due to related parties | 1,560 | |||
Income tax payable | 72 | 10 | ||
Accrued liabilities and other payables | 3,470 | 1,894 | ||
Total current liabilities | 11,692 | 8,547 | ||
Total liabilities | 11,692 | 8,547 | ||
Commitments and contingencies | ||||
Shareholders' equity | ||||
Common shares | 81 | 81 | ||
Treasury shares | 12 | 12 | ||
Other shareholders' equity | 324,769 | 309,800 | ||
Total Xunlei Limited's shareholders' equity | 324,862 | 309,893 | ||
Total liabilities and shareholders' equity | $ 336,554 | $ 318,440 |
Additional information_ conde_4
Additional information: condensed financial statements of the Company - Schedule of Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating expenses | |||
General and administrative expenses | $ (46,875) | $ (39,701) | $ (36,868) |
Total operating expenses | (164,685) | (131,378) | (124,502) |
Operating loss | (1,612) | 10,065 | (4,323) |
Interest income | 4,619 | 1,898 | 723 |
Interest expense | (1,514) | (93) | (95) |
Other income, net | 16,904 | 13,545 | 4,678 |
Income before income tax | 18,397 | 25,415 | 983 |
Income tax expenses | (4,131) | (4,068) | 125 |
Net income | 14,266 | 21,347 | 1,108 |
Net income attributable to Xunlei Limited's common shareholders | 14,225 | 21,463 | 1,191 |
Xunlei Limited | |||
Operating expenses | |||
General and administrative expenses | (7,931) | (6,436) | (3,302) |
Total operating expenses | (7,931) | (6,436) | (3,302) |
Operating loss | (7,931) | (6,436) | (3,302) |
Interest income | 1,512 | 360 | 107 |
Interest expense | (93) | (93) | (95) |
Other income, net | 3,928 | 368 | 585 |
Income from subsidiaries and consolidated VIEs | 16,948 | 27,300 | 3,935 |
Income before income tax | 14,364 | 21,499 | 1,230 |
Income tax expenses | (139) | (36) | (39) |
Net income | 14,225 | 21,463 | 1,191 |
Net income attributable to Xunlei Limited's common shareholders | $ 14,225 | $ 21,463 | $ 1,191 |
Additional information_ conde_5
Additional information: condensed financial statements of the Company - Schedule of Condensed Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from financing activities | |||
Net (decrease)/increase in cash, cash equivalents and restricted cash | $ (11,706) | $ 69,508 | $ (13,362) |
Cash and cash equivalents at beginning of the year | 177,154 | 123,358 | 137,248 |
Effect of exchange rates on cash and cash equivalents | (2,300) | (12,136) | 2,009 |
Cash and cash equivalents at end of the year | 170,802 | 177,154 | 123,358 |
Xunlei Limited | |||
Cash flows from operating activities | |||
Other operating activities with external parties | (391) | (948) | (5,732) |
Net cash used in operating activities | (391) | (948) | (5,732) |
Cash flows from investing activities | |||
Loans to group companies | (188) | (3,450) | (26,391) |
Other investing activities with external parties | 2,031 | 11,134 | 6,553 |
Net cash (used in)/generated from investing activities | 1,843 | 7,684 | (19,838) |
Cash flows from financing activities | |||
Loans from group companies | 3,150 | ||
Other financing activities with external parties | (4,687) | (6,747) | |
Net cash used in financing activities | (1,537) | (6,747) | |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (85) | (11) | (25,570) |
Cash and cash equivalents at beginning of the year | 32,004 | 32,015 | 57,585 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at end of the year | $ 31,919 | $ 32,004 | $ 32,015 |