Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Xunlei Ltd |
Entity Central Index Key | 1,510,593 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Smaller Reporting Company |
Trading Symbol | XNET |
Entity Common Stock, Shares Outstanding | 330,545,000 |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 199,504 | $ 361,777 | |
Short-term investments | 181,960 | 70,328 | |
Accounts receivable, net | 14,536 | 11,266 | |
Inventories | 374 | 480 | |
Deferred tax assets | 1,221 | 689 | |
Due from related parties | 1,097 | 45 | |
Prepayments and other current assets | 13,593 | 13,068 | |
Total current assets | 412,285 | 457,653 | |
Non-current assets: | |||
Long-term investments | 40,792 | 11,319 | |
Deferred tax assets | 3,272 | 8,593 | |
Property and equipment, net | 21,016 | 18,036 | |
Intangible assets, net | 10,746 | 13,433 | |
Goodwill | 20,497 | 21,896 | |
Other long-term prepayments and receivables | 1,187 | 7,431 | |
Total assets | 509,795 | 538,361 | |
Current liabilities: | |||
Accounts payable (including accounts payable of the consolidated variable interest entities (“VIE”)and its subsidiaries without recourse to the Company of USD 33,262 and USD 44,162 as of December 31, 2015 and 2016, respectively) | 33,376 | 21,736 | |
Due to a related party (including due to a related party of the consolidated VIE and its subsidiaries without recourse to the Company of USD 38 and USD 45 as of December 31, 2015 and 2016, respectively) | 45 | 38 | |
Deferred revenue and income, current portion (including deferred revenue and income, current portion of the consolidated VIE and its subsidiaries without recourse to the Company of USD 24,902 and USD 24,260 as of December 31, 2015 and 2016, respectively) | 24,532 | 25,113 | |
Income tax payable (including income tax payable of the consolidated VIE and its subsidiaries without recourse to the Company of USD 2,407 and USD 2,253 as of December 31, 2015 and 2016, respectively) | 2,321 | 2,470 | |
Accrued liabilities and other payables (including accrued liabilities and other payables of the consolidated VIE and its subsidiaries without recourse to the Company of USD 131,312 and USD 104,114 as of December 31, 2015 and 2016, respectively) | 33,131 | 27,379 | |
Total current liabilities | 93,405 | 76,736 | |
Non-current liabilities: | |||
Deferred revenue and income, non-current portion (including deferred revenue and income, non-current portion of the consolidated VIE and its subsidiaries without recourse to the Company of USD 4,751 and USD 3,539 as of December 31, 2015 and 2016, respectively) | [1] | 4,082 | 5,383 |
Deferred tax liabilities, non-current portion | 635 | 6,378 | |
Due to related parties, non-current portion | 4,537 | 4,337 | |
Other long-term payable | 886 | 846 | |
Total liabilities | 103,545 | 93,680 | |
Commitments and contingencies | |||
Equity | |||
Common shares ( USD0.00025 par value, 1,000,000,000 shares authorized, 368,877,209 shares issued and 339,319,115 shares outstanding as at December 31, 2015; 368,877,209 shares issued and 330,545,000 shares outstanding as at December 31, 2016) | 83 | 85 | |
Additional paid-in-capital | 453,347 | 458,270 | |
Accumulated other comprehensive loss | (13,629) | (4,152) | |
Statutory reserves | 5,132 | 5,132 | |
Treasury shares (29,558,094 shares and 38,332,209 shares as at December 31, 2015 and 2016, respectively) | 9 | 7 | |
Accumulated deficits | (36,704) | (12,593) | |
Total Xunlei Limited’s shareholders’ equity | 408,238 | 446,749 | |
Non-controlling interest | (1,988) | (2,068) | |
Total liabilities and shareholders’ equity | $ 509,795 | $ 538,361 | |
[1] | As of December 31, 2016, the non-current portion included membership subscription revenue of USD 820 thousand (2015: USD719 th0usand), government grants of USD2,719 thousand (2015: USD4,032 thousand), and reimbursement from the depositary of USD543 thousand (2015: USD632 thousand). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts payable, consolidated variable interest entities and VIE's subsidiaries without recourse | $ 44,162 | $ 33,262 |
Due to related party, consolidated variable interest entities and VIE's subsidiaries without recourse | 45 | 38 |
Deferred revenue and income, current portion of consolidated variable interest entities and VIE's subsidiaries without recourse | 24,260 | 24,902 |
Income tax payable, consolidated variable interest entities and VIE's subsidiaries without recourse | 2,253 | 2,407 |
Accrued liabilities and other payables, consolidated variable interest entities and VIE's subsidiaries without recourse | 104,114 | 131,312 |
Deferred revenue, non-current portion of consolidated variable interest entities and VIE's subsidiaries without recourse | $ 3,539 | $ 4,751 |
Common stock, par value | $ 0.00025 | $ 0.00025 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 368,877,209 | 368,877,209 |
Common stock, shares outstanding | 330,545,000 | 339,319,115 |
Treasury stock, shares | 38,332,209 | 29,558,094 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues, net of rebates and discounts | $ 156,966 | $ 129,996 | $ 135,812 |
Business taxes and surcharges | (804) | (361) | (1,878) |
Net revenues | 156,162 | 129,635 | 133,934 |
Cost of revenues | (80,319) | (60,034) | (55,755) |
Gross profit | 75,843 | 69,601 | 78,179 |
Operating expenses | |||
Research and development expenses | (64,360) | (38,250) | (29,252) |
Sales and marketing expenses | (18,782) | (15,042) | (13,527) |
General and administrative expenses | (26,168) | (28,774) | (26,945) |
Total operating expenses | (109,310) | (82,066) | (69,724) |
Operating income / (loss) | (33,467) | (12,465) | 8,455 |
Interest income | 2,158 | 5,833 | 6,733 |
Interest expense | (239) | (239) | (163) |
Other income, net | 6,503 | 3,627 | 13,966 |
Share of loss from equity investees | (195) | (12) | (259) |
Income/(loss) from continuing operations before income tax | (25,240) | (3,256) | 28,732 |
Income tax (expense)/benefit | 1,264 | 886 | (463) |
Net income/(loss) from continuing operations | (23,976) | (2,370) | 28,269 |
Discontinued operations | |||
Loss from discontinued operations before income taxes | (243) | (10,048) | (20,330) |
Income tax benefit / (expense) | 36 | (2,048) | 1,923 |
Net loss from discontinued operations | (207) | (12,096) | (18,407) |
Net income/(loss) | (24,183) | (14,466) | 9,862 |
Less: net loss attributable to the non-controlling interest | (72) | (1,299) | (950) |
Net income/(loss) attributable to Xunlei Limited | (24,111) | (13,167) | 10,812 |
Acceleration of amortization of beneficial conversion feature | (49,346) | ||
Deemed dividend to certain shareholders from repurchase of shares | (14,926) | ||
Deemed dividend to preferred shareholders upon initial public offering | (32,807) | ||
Net loss attributable to Xunlei Limited’s common shareholders | (24,111) | (13,167) | (105,366) |
Net income/(loss) | (24,183) | (14,466) | 9,862 |
Other comprehensive loss: Foreign currency translation adjustment, net of tax | (9,325) | (9,945) | (114) |
Comprehensive income/(loss) | (33,508) | (24,411) | 9,748 |
Less: comprehensive (loss)/income attributable to non-controlling interest shareholders | 80 | (1,198) | (955) |
Comprehensive income/(loss) attributable to Xunlei Limited | $ (33,588) | $ (23,213) | $ 10,703 |
Basic net loss per share attributable to Xunlei Limited from continuing operations | $ (0.07) | $ 0 | $ (0.45) |
Basic net loss per share attributable to Xunlei Limited from discontinued operations | $ 0 | $ (0.04) | $ (0.09) |
Weighted average number of common shares outstandingbasic | 334,155,668 | 335,987,595 | 194,711,227 |
Diluted net loss per share attributable to Xunlei Limited from continuing operations | $ (0.07) | $ 0 | $ (0.45) |
Diluted net loss per share attributable to Xunlei Limited from discontinued operations | $ 0 | $ (0.04) | $ (0.09) |
Weighted average number of common shares outstandingdiluted | 334,155,668 | 335,987,595 | 194,711,227 |
Series D Preferred Stock [Member] | |||
Discontinued operations | |||
Accretion to convertible redeemable preferred shares redemption value | $ (1,870) | ||
Deemed dividend to shareholder from its modification | (279) | ||
Series C To One Series C [Member] | |||
Discontinued operations | |||
Contingent beneficial conversion feature | (57) | ||
Series E Preferred Shares [Member] | |||
Discontinued operations | |||
Accretion to convertible redeemable preferred shares redemption value | (12,754) | ||
Amortization of beneficial conversion feature | (4,139) | ||
Acceleration of amortization of beneficial conversion feature | $ (49,346) |
Consolidated statements of chan
Consolidated statements of changes in shareholders' equity - USD ($) $ in Thousands | Total | Kingsoft Cloud Storage Business [Member] | Series E tranche 1 [Member] | Series E Tranche 2 [Member] | Series D Preferred Stock [Member] | Series E Preferred Stock [Member] | Series C To One Series C [Member] | Initial Public Offering [Member] | Common shares [Member] | Common shares [Member]Kingsoft Cloud Storage Business [Member] | Common shares [Member]Series E tranche 1 [Member] | Common shares [Member]Series E Tranche 2 [Member] | Common shares [Member]Series D Preferred Stock [Member] | Common shares [Member]Series E Preferred Stock [Member] | Common shares [Member]Series C To One Series C [Member] | Common shares [Member]Initial Public Offering [Member] | Treasury stock [Member] | Treasury stock [Member]Kingsoft Cloud Storage Business [Member] | Treasury stock [Member]Series E tranche 1 [Member] | Treasury stock [Member]Series E Tranche 2 [Member] | Treasury stock [Member]Series D Preferred Stock [Member] | Treasury stock [Member]Series E Preferred Stock [Member] | Treasury stock [Member]Series C To One Series C [Member] | Treasury stock [Member]Initial Public Offering [Member] | Additional paid-in capital [Member] | Additional paid-in capital [Member]Kingsoft Cloud Storage Business [Member] | Additional paid-in capital [Member]Series E tranche 1 [Member] | Additional paid-in capital [Member]Series E Tranche 2 [Member] | Additional paid-in capital [Member]Series D Preferred Stock [Member] | Additional paid-in capital [Member]Series E Preferred Stock [Member] | Additional paid-in capital [Member]Series C To One Series C [Member] | Additional paid-in capital [Member]Initial Public Offering [Member] | Retained earnings (Accumulated deficits) [Member] | Retained earnings (Accumulated deficits) [Member]Kingsoft Cloud Storage Business [Member] | Retained earnings (Accumulated deficits) [Member]Series E tranche 1 [Member] | Retained earnings (Accumulated deficits) [Member]Series E Tranche 2 [Member] | Retained earnings (Accumulated deficits) [Member]Series D Preferred Stock [Member] | Retained earnings (Accumulated deficits) [Member]Series E Preferred Stock [Member] | Retained earnings (Accumulated deficits) [Member]Series C To One Series C [Member] | Retained earnings (Accumulated deficits) [Member]Initial Public Offering [Member] | Statutory reserves [Member] | Statutory reserves [Member]Kingsoft Cloud Storage Business [Member] | Statutory reserves [Member]Series E tranche 1 [Member] | Statutory reserves [Member]Series E Tranche 2 [Member] | Statutory reserves [Member]Series D Preferred Stock [Member] | Statutory reserves [Member]Series E Preferred Stock [Member] | Statutory reserves [Member]Series C To One Series C [Member] | Statutory reserves [Member]Initial Public Offering [Member] | Accumulated other comprehensive Income/(loss) [Member] | Accumulated other comprehensive Income/(loss) [Member]Kingsoft Cloud Storage Business [Member] | Accumulated other comprehensive Income/(loss) [Member]Series E tranche 1 [Member] | Accumulated other comprehensive Income/(loss) [Member]Series E Tranche 2 [Member] | Accumulated other comprehensive Income/(loss) [Member]Series D Preferred Stock [Member] | Accumulated other comprehensive Income/(loss) [Member]Series E Preferred Stock [Member] | Accumulated other comprehensive Income/(loss) [Member]Series C To One Series C [Member] | Accumulated other comprehensive Income/(loss) [Member]Initial Public Offering [Member] | Non-controlling interest [Member] | Non-controlling interest [Member]Series C [Member] | Non-controlling interest [Member]Series B [Member] | Non-controlling interest [Member]Series A-1 Preferred Stock [Member] | Non-controlling interest [Member]Series A [Member] | Non-controlling interest [Member]Kingsoft Cloud Storage Business [Member] | Non-controlling interest [Member]Series E tranche 1 [Member] | Non-controlling interest [Member]Series E Tranche 2 [Member] | Non-controlling interest [Member]Series D Preferred Stock [Member] | Non-controlling interest [Member]Series E Preferred Stock [Member] | Non-controlling interest [Member]Series C To One Series C [Member] | Non-controlling interest [Member]Initial Public Offering [Member] | Convertible non-redeemable preferred shares [Member]Series C [Member] | Convertible non-redeemable preferred shares [Member]Series B [Member] | Convertible non-redeemable preferred shares [Member]Series A-1 Preferred Stock [Member] | Convertible non-redeemable preferred shares [Member]Series A [Member] | Convertible non-redeemable preferred shares [Member]Initial Public Offering [Member]Series C [Member] | Convertible non-redeemable preferred shares [Member]Initial Public Offering [Member]Series B [Member] | Convertible non-redeemable preferred shares [Member]Initial Public Offering [Member]Series A-1 Preferred Stock [Member] | Convertible non-redeemable preferred shares [Member]Initial Public Offering [Member]Series A [Member] |
Beginning Balance, Amount at Dec. 31, 2013 | $ 1 | $ 8 | $ 9 | $ 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance, Amount at Dec. 31, 2013 | $ 79,194 | $ 15 | $ 2 | $ 61,634 | $ 7,037 | $ 4,478 | $ 6,003 | $ 84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance, Shares at Dec. 31, 2013 | 5,728,264 | 30,308,284 | 36,400,000 | 26,416,560 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance, Shares at Dec. 31, 2013 | 61,447,372 | 9,073,732 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion to convertible redeemable preferred shares redemption value | $ (1,870) | $ (12,754) | $ (717) | $ (10,229) | $ (1,153) | $ (2,525) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortisation of BCF | $ (4,139) | $ (3,206) | $ (933) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deemed dividend of convertible preferred shares from their modifications | $ (279) | $ (279) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent beneficial conversion feature | $ 57 | $ (57) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares, Amount | (59,082) | $ (4) | (47,403) | (11,674) | $ (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares, shares | (14,664,637) | (3,756,065) | (591,451) | (477,180) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceleration of amortization of beneficial conversion feature | (49,346) | (49,346) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deemed dividend to preferred shareholders upon initial public offering | (32,807) | (32,807) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares for share incentive plans, Amount | $ 470,759 | $ 71 | $ 5 | (5) | $ 470,712 | $ (1) | $ (7) | $ (9) | $ (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares for share incentive plans, Shares | 277,834,210 | 24,195,412 | (5,728,264) | (26,552,219) | (35,808,549) | (25,939,380) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
IPO expenses | (4,216) | (4,216) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercised share options, Amount | 295 | 295 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercised share options, Shares | 1,431,320 | (1,431,320) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vested restricted shares | 1,563,222 | (1,563,222) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | $ 303 | $ 303 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation - others | 7,644 | 7,644 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial conversion feature | $ 52,377 | $ 1,109 | $ 52,377 | $ 1,109 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statutory Reserve | (654) | 654 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income / (loss) | 10,812 | 10,812 | (949) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustments at Dec. 31, 2014 | (109) | (109) | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, Amount at Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, Amount at Dec. 31, 2014 | 457,891 | $ 82 | $ 7 | 446,202 | 574 | 5,132 | 5,894 | (870) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, Shares at Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, Shares at Dec. 31, 2014 | 327,611,487 | 30,274,602 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares, Amount | (1,287) | (1,287) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares, shares | (1,068,095) | 1,068,095 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deemed dividend to preferred shareholders upon initial public offering | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercised share options, Shares | 3,189,944 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares for the vesting of restricted shares and the exercise of share options, Amount | $ 3 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares for the vesting of restricted shares and the exercise of share options, shares | 10,991,120 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares for exercised share options, Amount | 3,630 | $ 2 | $ (2) | 3,630 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares for exercised share options, shares | 9,092,265 | (9,092,265) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 9,728 | 9,728 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted shares vested, Amount | $ 1 | $ (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted shares vested, shares | 3,683,458 | (3,683,458) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income / (loss) | (13,167) | (13,167) | (1,299) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustments at Dec. 31, 2015 | (10,046) | (10,046) | 101 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, Amount at Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, Amount at Dec. 31, 2015 | 446,749 | $ 85 | $ 7 | 458,270 | (12,593) | 5,132 | (4,152) | (2,068) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, Shares at Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, Shares at Dec. 31, 2015 | 339,319,115 | 29,558,094 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares, Amount | (14,319) | $ (3) | $ 3 | (14,329) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of shares, shares | (12,272,500) | 12,272,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deemed dividend to preferred shareholders upon initial public offering | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercised share options, Shares | 440,465 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares for exercised share options, Amount | $ 58 | 58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares for exercised share options, shares | 440,465 | (440,465) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 9,338 | 9,348 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted shares vested, Amount | $ 1 | $ (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted shares vested, shares | 3,057,920 | (3,057,920) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income / (loss) | (24,111) | (24,111) | (72) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustments at Dec. 31, 2016 | (9,477) | (9,477) | 152 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, Amount at Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, Amount at Dec. 31, 2016 | $ 408,238 | $ 83 | $ 9 | $ 453,347 | $ (36,704) | $ 5,132 | $ (13,629) | $ (1,988) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, Shares at Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, Shares at Dec. 31, 2016 | 330,545,000 | 38,332,209 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net income/(loss) | $ (24,183) | $ (14,466) | $ 9,862 |
Adjustments to reconcile net income/(loss) to net cash generated from operating activities (note) | |||
Depreciation of property and equipment | 6,165 | 5,646 | 6,500 |
Amortization of intangible assets | 2,223 | 12,149 | 38,741 |
Allowance for doubtful accounts | 4 | 1,767 | |
Loss on disposal of property and equipment | 85 | 4 | |
Gain from barter transactions | (409) | (4,428) | |
Share-based compensation | 9,348 | 9,728 | 7,644 |
Decrease in fair value of warrants | (8,054) | ||
Share of loss / (income) from equity investees | 195 | 12 | 259 |
Investment income on short-term investments | (506) | (997) | (317) |
Loss on exchange of warrants | 405 | ||
Deemed disposal gain on long-term investments | (689) | (702) | (449) |
Interest expense accrued on long-term payable | 239 | 239 | 163 |
Deferred taxes | (954) | 873 | (1,856) |
Deferred government grants | (3,473) | (1,969) | (2,059) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (5,168) | 1,395 | 4,699 |
Prepayments and other assets | 13,947 | 3,815 | (9,180) |
Due from/to related parties | (1,180) | (70) | (168) |
Accounts payable | 15,855 | 301 | 2,569 |
Inventories | 59 | (526) | |
Deferred revenue | 2,631 | (294) | (2,643) |
Income tax payable | 147 | 153 | (5) |
Accrued liabilities and other payables | 2,229 | (1,122) | 4,752 |
Net cash generated from operating activities | 16,970 | 13,764 | 48,202 |
Cash flows from investing activities | |||
Acquisition of property and equipment | (13,756) | (4,931) | (7,770) |
Purchase of short-term investments | (209,034) | (222,157) | (330,471) |
Proceeds from disposal of short-term investments | 94,139 | 175,513 | 341,792 |
Proceeds from disposal of fixed assets | 22 | 25 | |
Proceeds from disposal of Kankan | 16,687 | ||
Proceeds from disposal of long-term investments | 3,670 | ||
Purchase of intangible assets | (121) | (11,894) | (38,056) |
Acquisition of long-term investments | (33,233) | (8,330) | (2,359) |
Acquisition of Kingsoft Cloud Storage business | (33,000) | ||
Loans (to)/repayment of loan from employees | (22) | 105 | (767) |
Repayment of advance from a shareholder | 85 | ||
Net cash used in investing activities | (158,335) | (54,982) | (70,546) |
Cash flows from financing activities | |||
Repurchase of shares | (14,319) | (1,287) | (69,303) |
Proceeds from initial public offering | 93,881 | ||
Payment of initial public offering expenses | (3,504) | ||
Prepayment for share repurchase plan | 712 | 288 | (1,000) |
Governments grants received | 2,508 | 1,055 | 856 |
Proceeds from exercise of vested share options | 58 | 4,974 | 1,523 |
Initial public offering expenses reimbursement received | 1,158 | ||
Net cash generated from/(used in) financing activities | (11,041) | 5,030 | 333,268 |
Net increase/(decrease) in cash and cash equivalents | (152,406) | (36,188) | 310,924 |
Cash and cash equivalents at beginning of year | 361,777 | 404,275 | 93,906 |
Effect of exchange rates on cash and cash equivalents | (9,867) | (6,310) | (555) |
Cash and cash equivalents at end of year | 199,504 | 361,777 | 404,275 |
Supplemental disclosure of cash flow information | |||
Income tax paid | 82 | 241 | |
Non cash investing and financing activities | |||
Acquisition of property and equipment in form of other payables | (1,773) | 4,468 | 240 |
Initial public offering expenses in form of other payables | 712 | ||
Purchase of intangible assets in form of accounts payable | 62 | 21,860 | |
Acquisition of intangible assets in form of barter transactions | 4,030 | ||
Deemed dividend to certain shareholders from repurchase of shares | 14,926 | ||
Acceleration of amortization of beneficial conversion feature of Series E upon initial public offering | 49,346 | ||
Deemed dividend to preferred shareholders upon initial public offering | 32,807 | ||
Series D Preferred Stock [Member] | |||
Adjustments to reconcile net income/(loss) to net cash generated from operating activities (note) | |||
Loss on exchange of warrants | (405) | ||
Non cash investing and financing activities | |||
Deemed dividend to preferred shareholders | 279 | ||
Accretion to preferred shares redemption value | 1,870 | ||
Series E Preferred Shares [Member] | |||
Cash flows from financing activities | |||
Issuance of Series E preferred shares | 275,314 | ||
Issuance of Series E warrants | 34,686 | ||
Payment of Series E financing expenses | (343) | ||
Non cash investing and financing activities | |||
Accretion to preferred shares redemption value | 12,754 | ||
Amortization of beneficial conversion feature of Series E | 4,139 | ||
Acceleration of amortization of beneficial conversion feature of Series E upon initial public offering | 49,346 | ||
Series C To One Series C [Member] | |||
Non cash investing and financing activities | |||
Contingent beneficial conversion feature | $ 57 |
Organization and nature of oper
Organization and nature of operations | 12 Months Ended |
Dec. 31, 2016 | |
Organization and nature of operations [Abstract] | |
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 (“Cayman”) as a limited liability company on February 3, 2005. These consolidated financial statements include the financial statements of the Company, its subsidiaries, its variable interest entity (“VIE”) and the VIE’s subsidiaries (collectively referred to as the “Group”) as follows: Name of entities Place of incorporation Date of incorporation Relationship % of direct or indirect economic ownership Principal activities Shenzhen Xunlei Networking Technologies, Co., Ltd. (“Shenzhen Xunlei”) China January 2003 VIE 100% Development of software, provision of online and related advertising, membership subscription and online game services; as well as sales of software licenses Giganology (Shenzhen) Co., Ltd. (“Giganology Shenzhen”) China 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”) China December 2005 VIE’s subsidiary 100% Development of software for related companies Xunlei Networking Technologies (Beijing) Co., Ltd. (“Beijing Xunlei”) China June 2009 VIE’s subsidiary 100% Development of software for related companies Shenzhen Zhuolian Software Co., Ltd. (formerly known as “Xunlei Software (Shenzhen) Co., Ltd.”) (“Zhuolian Software”) China January 2010 VIE’s subsidiary 100% Provision of software technology development for related companies Name of entities Place of incorporation Date of incorporation Relationship % of direct or indirect economic ownership Principal activities Xunlei Games Development (Shenzhen) Co., Ltd. (“Xunlei Games”) China February 2010 VIE’s subsidiary 70 % Development of online game and computer software for related companies and provision of advertising services Xunlei Network Technologies Limited (“Xunlei BVI”) British Virgin Islands February 2011 Subsidiary 100 % Holding company Xunlei Network Technologies Limited (“Xunlei HK”) Hong Kong March 2011 Subsidiary 100 % Development computer software of related companies and provision of advertising services Xunlei Computer (Shenzhen) Co., Ltd. (“Xunlei Computer”) China November 2011 Subsidiary 100 % Development of computer software and provision of information technology services to related companies Shenzhen Onething Technologies Co., Ltd. (“Onething”) China September 2013 VIE’s subsidiary 100 % Development of computer software and provision of information technology services to related companies Beijing Xunjing Technologies Co., Ltd. (formerly known as “Wangxin Century Technologies (Beijing) Co., Ltd.”) (“Beijing Xunjing”) China October 2015 VIE’s subsidiary 100 % Development of computer software and provision of information technology services Shenzhen Crystal Interactive Technologies Co., Ltd. (“Crystal Interactive”) China May 2016 VIE’s subsidiary 100 % Development of computer software and provision of information technology services Shenzhen Xunlei Venture Capital Partnership Enterprise (Limited Partnership) (“Xunlei Venture Capital”) China June 2016 VIE’s subsidiary 99 % Investments in industries and consultation in investments Shenzhen Xunlei Kankan Information Technologies Co., Ltd. (formerly known as “155 Networking (Shenzhen) Co., Ltd.”) (“Xunlei Kankan”) China August 2008 VIE’s subsidiary 100 % Development of software for related companies(note a) Note a: Xunlei Kankan was disposed in 2015. See note 3 for details. Note b: The English names of the PRC companies represent management’s translation of their 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, online advertising services on its websites, sales of bandwidth and online game platforms for game developers and users. To comply with the PRC laws and regulations that prohibit or restrict foreign ownership of companies that provide online advertising services, operate online games, and hold Internet Content Provider (‘‘ICP’’) license, the company conducts its business through Shenzhen Xunlei, its consolidated VIE. Through the various agreements enacted among the Company, Giganology Shenzhen, a wholly owned subsidiary of the Company, Shenzhen Xunlei and legal shareholders of Shenzhen Xunlei (the “Restructuring”), the Company received all of the economic benefits and residual interest and absorbed all of the risks and expected losses from Shenzhen Xunlei. Details of certain key agreements with the VIE are as follows: Loan Agreements Under a separate loan agreement between Giganology Shenzhen and Mr. Sean Shenglong Zou as a 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 last 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 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 will expire in 2022 and may be extended with Giganology Shenzhen’s written confirmation prior to the expiration date. 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 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’s results of operations, assets and liabilities have been consolidated in the Company’s financial statements. VIE-Related Risks It is possible that the Group’s operation of certain of its operations and businesses through VIEs could be found by PRC authorities to be in violation of PRC law and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. While the Group’s management considers the possibility of such a finding by PRC regulatory authorities under current law and regulations to be remote, on January 19, 2015, the Ministry of Commerce of the PRC, or (the “MOFCOM”) released on its Website for public comment a proposed PRC law (the “Draft FIE Law”) that appears to include VIEs within the scope of entities that could be considered to be foreign invested enterprises (or “FIEs”) that would be subject to restrictions under existing PRC law on foreign investment in certain categories of industry. Specifically, the Draft FIE Law introduces the concept of “actual control” for determining whether an entity is considered to be an FIE. In addition to control through direct or indirect ownership or equity, the Draft FIE Law includes control through contractual arrangements within the definition of “actual control.” If the Draft FIE Law is passed by the People’s Congress of the PRC and goes into effect in its current form, these provisions regarding control through contractual arrangements could be construed to reach the Group’s VIE arrangements, and as a result the Group’s VIEs could become explicitly subject to the current restrictions on foreign investment in certain categories of industry. The Draft FIE Law includes provisions that would exempt from the definition of foreign invested enterprises entities where the ultimate controlling shareholders are either entities organized under PRC law or individuals who are PRC citizens. The Draft FIE Law does not make clear how “control” would be determined for such purpose, and is silent as to what type of enforcement action might be taken against existing VIEs that operate in restricted industries and are not controlled by entities organized under PRC law or individuals who are PRC citizens. If a finding were made by PRC authorities, under existing law and regulations or under the Draft FIE Law if it becomes effective, that the Group’s operation of certain of its operations and businesses through VIEs, 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 Group’s VIEs and shareholders of its VIEs 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. 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 VIEs. 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 its consolidated VIEs are approved and in place. The Group’s management believes that such contracts are enforceable, 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. Initial public offering The Company completed its initial public offering (“IPO”) on June 24, 2014 on the NASDAQ Global Market and the underwriters subsequently exercised their over-allotment option on June 27, 2014. The Company issued and sold a total of 8,412,250 American Depositary Shares (“ADSs”) pursuant to these transactions. Each ADS represents five common shares. The net proceeds received by the Company, after deducting commissions and offering expenses, amounted to approximately US$ 89,665 thousand. Upon the completion of the IPO, all of the Company’s outstanding preferred shares were converted into common shares immediately as of the same date. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of significant accounting policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation and use of estimates The accompanying consolidated financial statements 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 Restructuring was accounted for at historical costs. The assets and liabilities of Shenzhen Xunlei are consolidated in the Company’s financial statements at carryover basis. 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 the useful lives of property and equipment, allowance for doubtful accounts, valuation allowance of deferred tax assets, sales rebate to advertising agencies, amortization period of online game revenue, amortization of content copyrights, fair value of content copyrights exchange, impairment assessment of goodwill and impairment assessment of long-lived assets. In addition, the Group uses assumptions in a valuation model to estimate the fair value of share options granted, warrants issued and underlying common shares. 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 significant transactions and balances among the Company, its subsidiaries, VIE and its 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 25 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/period between non-controlling shareholders and the shareholders of the Company. (c) Discontinued operations When disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity’s financial results and operations. Examples include a disposal of a major geographical location, line of business, or other significant part of the entity, or disposal of a major equity method investment. In the consolidated income statement, result from discontinued operations is reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. Cash flows for discontinuing operations are presented separately in note 3. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. Non-current assets or disposal groups are classified as assets held for sale when the carrying amount is to be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset or disposal group must be available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such assets or disposal groups and the sale must be highly probable. Non-current assets classified as held for sale and disposal groups are measured at the lower of their carrying or fair value less costs to sell. (d) Foreign currency translation The Company’s reporting and functional currency is the United States Dollar (‘‘USD’’). Xunlei BVI and Xunlei HK’s functional currency is the USD. The functional currency of other subsidiaries, VIE and its subsidiaries located in the PRC is the Renminbi (‘‘RMB’’), which is their respective local currency. 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 (loss) 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 released by Chinese State Administration of Foreign Exchange. (e) Cash and cash equivalents 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. (f) Short-term investments Short-term investments include deposits placed with banks with original maturities of more than three months but less than 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) Fair value of financial instruments The Group’s financial instruments consist principally of cash and cash equivalents, short-term investments, accounts receivable, other receivables, amounts due from/(to) related parties, accounts payable, other payables and warrants liabilities. The carrying value of these balances, with the exception of short-term investments (see note 2 (f)), approximates their fair value due to the current and short term nature of these balances. (h) Accounts receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Group evaluates the creditworthiness of each customer at the time when services are rendered and continuously monitor the recoverability of the accounts receivable. The Group uses specific identification method in providing for bad debts when facts and circumstances indicate that collection is doubtful and a loss is probable and estimable. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances might be required. The allowance for doubtful accounts is based on the best facts available and is re-evaluated and adjusted on a regular basis as additional information is received. Some of the factors that the Group considers in determining whether a bad debt allowance is recorded on an individual customer are: 1) the customer's past payment history and whether it fails to comply with its payment schedule; 2) whether the customer is in financial difficulty due to economic or legal factors; 3) a significant dispute with the customer has occurred; 4) the objective evidence which indicates non-collectability of the accounts receivable. The allowances provided for Accounts Receivable from continuing operations as of December 31, 2 0 0 0.1 0.1 If the Group determines that an allowance is needed for a customer, the Group will discontinue business with them unless they start to resume payment. The accounts receivable is written-off when the Group ceases pursuing collection. Any changes in the estimates may cause the Group's operating results to fluctuate. (i) 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 inventory in the normal course of business after allowing for the costs of realization. An allowance is recorded for excess inventory and obsolescence based on the lower of cost or net realizable value. (j) Long-term investments The Group holds investments in privately held companies. The Group accounts for these investments over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method of accounting. For investments in an investee over which the Group does not have significant influence and of which the investee has no readily determinable fair value, the Group carries the investment using the cost method. Under the cost method, the investment is measured initially at cost. The investment carried at cost should recognize income when dividends are received from the distribution of the investee’s earnings. The Group assesses its long-term investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company-specific information. The fair value determination, particularly for investments in privately-held companies, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and determination of whether any identified impairment is other-than-temporary. During the year ended December 31, 2014, the Group did not impair any of its long-term investments. In 2015 and 2016, the Group recognised an impairment of USD 0.8 1.66 (k) 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. Estimated useful lives Residual rate Servers and network equipment 5 5 % Computer equipment 5 5 % Furniture, fittings and office equipment 5 5 % Motor vehicles 5 5 % Leasehold improvements shorter of lease term or 3 Repair and maintenance costs are expensed as incurred. Expenditures that substantially increase an asset’s useful life are capitalized. Upon sale or disposition, 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 operations. The cost and related accumulated depreciation are removed from the financial statements. (l) Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. (m) Impairment of goodwill Impairment of goodwill assessment is performed on at least an annual basis on December 31 or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. According to ASC 350-20-35, an entity may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, an entity may proceed directly to perform a two-step goodwill impairment test. The first step compares the fair values of a reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The judgment in estimating the fair value of a reporting unit includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of the fair value of a reporting unit. The Group selected directly to perform a two-step goodwill impairment test. For the first step, the impairment test was performed using a discounted cash flow analysis to assess the fair value of the Group, as a single reporting unit. The discounted cash flow analysis, that requires certain assumptions and estimates regarding economics and future profitability, use cash flow projections for the purposes of impairment reviews covering a five-year period. Cash flows beyond the five-year period are extrapolated using an estimated annual growth of not more than 2 18.2 the second step was not required. No goodwill impairment losses were recognized for the year ended December 31, 2016 based on the impairment test performed by the Group. (n) Intangible assets I ) Content copyrights Licensed copyrights of movies, TV series and variety shows (collectively “Content Copyrights”) are capitalized when 1) the cost of the content is known 2) the content has been accepted by the Group in accordance with the conditions of the license agreement and 3) the content is available for its first showing on the Group’s website. Content Copyrights are carried at cost less accumulated amortization and impairment loss, if any. The Group has two types of Content Copyrights, 1) non- exclusive Content Copyrights and 2) exclusive Content Copyrights. With non-exclusive Content Copyrights, the Group has the right to broadcast the contents on its own websites. While, with exclusive Content Copyrights, besides the broadcasting right, the Group also has the right to sub-license these exclusive Content Copyrights to third parties. For non-exclusive Content Copyrights, which only generates primarily indirect cash flows, the amortization method is based on the analysis of historical viewership consumption patterns. The Group determines consumption patterns by tracking the number of viewers watching the content throughout its life cycle. This information is then aggregated to come up with a viewership trend that can support an appropriate method to amortize non-exclusive Content Copyrights. The Group generally categorizes its contents in the Xunlei Kankan website into three broad categories, namely movies; TV series; and variety shows and others, which include reality shows, talent shows, talk shows and entertainment news. The Group adopted the method to amortize the non-exclusive Content Copyrights over the shorter of estimated useful lives or their respective licensing periods using an accelerated method based on consumption patterns. Estimates of the consumption patterns for these non-exclusive Content Copyrights are reviewed periodically and revised, if necessary. Exclusive Content Copyrights generate both direct and indirect cash flows. For the portion of exclusive Content Copyrights that generate indirect cash flows, the Group uses the amortization method based on the analysis of historical viewership consumption patterns, which is the same with that of non-exclusive Content Copyright as discussed above. For the portion of exclusive Content Copyrights that generates direct cash flows, the Group amortizes the purchase costs using an individual-film-forecast-computation method, which amortizes such costs based on the ratio of sub-licensing revenue and barter transaction gain (details described in Note 2(r)) generated for the current period to the total ultimate direct revenue estimated to be generated by the exclusive Content Copyrights for their whole license period or estimated useful lives. The Group revisits the forecast at each quarter and year end and makes adjustment, when appropriate. Content copyrights were disposed of in July 2015 as a result of the divestiture of the Company’s online video streaming platform (see note 3 for details). II) Other intangible assets Other intangible assets, which include computer software, internal use software development costs, online game licenses, domain names, land use right, trademarks, technology (including right-to-use) and non-compete agreement, are carried at cost less accumulated amortization and impairment loss, if any. Exclusive game licenses are amortized using the straight-line method over their licensing period of three years. Computer software, internal use software and domain name are amortized using the straight-line method over their estimated useful life of five years. Land use right is amortized using the straight-line method over their estimated useful life of thirty years. (o) Impairment of long-lived assets The Group evaluates the program usefulness of non-exclusive Content Copyrights and exclusive Content Copyrights pursuant to the guidance in ASC 920-350 IntangibleGoodwill and Other: Recognition For non-exclusive Content Copyrights which only generate indirect cash flows, the Group evaluates the net realizable value of the content library by its three content categories (i.e. movies, TV series, variety shows and others). If management’s expectations of programming usefulness, which represents the expected revenues and related net cash flows derived from the contents, are revised downward, they assess whether it is necessary to write down the unamortized costs to estimated net realizable value. The Group evaluates programming usefulness by category on an annual basis by comparing the unamortized cost to the estimated net realizable value. On a quarterly basis, the Group also monitors whether there are indicators of changes in their expected usage of program materials. The Group estimates net realizable value using expected net cash flows of the content based on expected future levels of advertising revenues. Such estimates consider historical amounts and anticipated levels of demand. Expected future revenues are reduced by estimated direct costs to provide access to the website and generate the related revenue, including bandwidth costs and server costs. For purposes of estimating revenues for each category of content, the Group considers both expected future advertising revenues sold based on number of impressions delivered as well as advertising sold based on the period of time that it is displayed. For exclusive Content Copyrights that generate both direct and indirect cash flows, the Group evaluates the net realizable value of the Group’s licensed copyright on a content by content basis. Impairment is assessed on an annual basis by comparing the unamortized cost to the Group’s estimated net realizable value. The Group estimates the net realizable value using expected net cash flows based on expected future levels of advertising and content sub-licensing revenues. For expected future levels of advertising revenue, the Group uses the same estimation methodology used for the impairment assessment of non-exclusive Content Copyrights. For both exclusive and non-exclusive Content Copyrights, there were no impairments for the years ended December 31, 2014, 2015 and 2016 because a significant portion of the contents was related to movies and TV series, of which approximately 70 90 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. The impairment of online game license were USD 808 770 721 (p) 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 regards 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. (q) Operating leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating lease are charged to the statements of comprehensive income on a straight-line basis over the period of the lease. (r) Revenue recognition The Group generates revenues from various streams. The Group operates a prepaid virtual items system, under which, prepaid virtual items at fixed face value are sold to third parties. Virtual items purchased can be used to subscribe for membership or purchase of virtual items in online games, as discussed below. Virtual items sold but not yet consumed by the users are recorded as “Receipts in advance from customers” and upon consumption, they are recognized as membership subscription and online game revenue according to the respective prescribed revenue recognition policies addressed below. 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 except in the cases when they elect to pay via their mobile operators. The membership fee is collected when the subscribers pay for the monthly phone bills. 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 deferred revenue and revenue is recognized ratably 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 record 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, fixed phone line and mobile payment channels (‘‘Payment Handling Fees’’) are recorded as the cost of revenues in the same period as the revenue for the membership fee is recognized. II) Advertising revenues Advertising revenues are derived principally from arrangements where the customers pay to place their advertisements on the Group’s platform in different formats over a particular period of time. Such formats generally includes but not limited to videos, banners, links, logos and buttons. Advertisements on the Group’s platform are generally charged on the basis of duration, and advertising contracts are signed to establish the fixed price and the advertising services to be provided. The Group enters into advertising contracts with third party advertising agencies that represents advertisers, as well as directly with advertisers. A typical contract term would range from a few days to 3 months. Both third party advertising agencies and direct advertisers are generally billed at the end of the display period and payments are due usually within 3 months. Where the Group’s customers purchase multiple advertising spaces with different display periods in the same contract, the Group allocates the total consideration to the various advertising elements based on their relative fair values and recognizes revenue for the different elements over their respective display periods. The Group determines the fair values of different advertising elements based on the prices charged when these elements were sold on a standalone basis. The Group recognizes revenue on the elements delivered and defers the recognition of revenue for the fair value of the undelivered elements until the remaining obligations have been satisfied. Where all of the elements within an arrangement are delivered uniformly over the agreement period, the revenue is recognized on a straight line basis over the contract period. Transactions with third party advertising agencies For contracts entered into with third party advertising agencies, the third party advertising agencies will in turn sell the advertising services to advertisers. Revenue is recognized ratably over the contract period of display based on the following criteria: There is persuasive evidence that an arrangement existsthe Group will enter into framework and execution agreements with the advertising agencies, specifying price, advertising content, format and timing Price is fixed and determinableprices charged to the advertising agencies are specified in the agreements, including relevant discount and rebate rates Services are renderedthe Group recognizes revenue ratably over the contract period of display Collectability is reasonably assuredthe Group assesses credit history of each advertising agency before entering into any framework and execution agreements. If the collectability from the agencies is assessed as not reasonably assured, the Group recognizes revenue only when the cash is received and all the other revenue criteria are met. The Group provides sales incentives in the forms of discounts and rebates to third party advertising agencies based on purchase volume. As the advertising agencies are viewed as the customers in these transactions, revenue is recognized based on the price charged to the agencies, net of sales incentives provided to the agencies. Sales incentives are estimated and recorded at the time of revenue recognition based on the contracted rebate rates and estimated sales volume based on historical experience. Transactions with third party advertising platforms Xunlei began to cooperate with third party advertising platforms such as Guangdiantong and Baidu since the fourth quarter in 2015. In this business model, advertisers put their content on third party advertising platforms and platforms will dispatch the advertising content to Xunlei’s platforms by certain analysis systematically. As the third party advertising platforms are viewed as the customers in these transactions, revenue is recognized monthly based on the data publicized on third party platforms and the price charged to these advertising platforms. Transactions with advertisers The Group also enters into advertisement contracts directly with advertisers. Under these contracts, similar to transactions with third party advertising agencies, the Group recognizes revenue ratably over the contract period of display. The terms and conditions, including price, are fixed according to the contract between the Group and the advertisers. The Group also performs credit assessment of all advertisers prior to entering into contracts. Revenue is recognized based on the amount charged to the adv |
Discontinued operations
Discontinued operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued operations [Abstract] | |
Discontinued operations | 3. Discontinued operations In July 2015, the Company completed the divesture of the Company’s entire stake in its online video streaming platform, Xunlei Kankan to Beijing Nesound International Media Corp., Ltd., an independent third party. The total sales price was RMB 130,000 21,183 Assets and liabilities related to Xunlei Kankan were reclassified as assets/liabilities held for sale as of December 31, 2014, while results of operations related to Xunlei Kankan, including comparatives, were reported as loss from discontinued operations. Results of the discontinued operation USD (In thousands) 2014 2015 2016 Revenues, net of rebates and discounts 47,075 15,677 Business taxes and surcharges (1,480) (447) Net revenues 45,595 15,230 Cost of revenues (42,704) (13,240) Gross profit 2,891 1,990 Operating expenses Research and development expenses (6,035) (3,245) 5 Sales and marketing expenses (15,726) (7,384) (27) General and administrative expenses (3,016) (3,051) (221) Total operating expenses (24,777) (13,680) (243) Net gain from exchanges of content copyrights 1,556 137 Operating loss (20,330) (11,553) (243) Gain on disposal of Kankan 1,505 Income taxes benefits/(expenses) 1,923 (2,048) 36 Loss from discontinued operations (18,407) (12,096) (207) Assets and liabilities of the discontinued operation USD (In thousands) December 31, Assets Accounts receivable, net 23,741 Prepayments and other current assets 670 Copyrights related to content-current portion 16,013 Property and equipment, net 1,111 Intangible assets 4,997 Prepayment for content 456 Other long-term prepayments and receivables 57 Total assets held for sale 47,045 Liabilities Accounts payables 25,267 Deferred revenue, current portion 1,018 Accrued liabilities and other payables 1,082 Total liabilities held for sale 27,367 Cash flows generated from/ (used in) discontinued operations USD (In thousands) 2014 2015 2016 Net cash generated from/(used in) operating activities 2,293 (1,554) (215) Net cash (used in)/generated from investing activities (34,661) 9,135 Net cash used in financing activities Net cash flow for the year (32,368) 7,581 (215) The disposal of the online video streaming platform was completed on July 15, 2015 and a gain of USD 1,505 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2016 | |
Cash and cash equivalents [Abstract] | |
Cash and cash equivalents | 4. 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 on hand and cash held at bank balance as of December 31, 2015 and 2016 primarily consist of the following currencies: December 31, 2015 December 31, 2016 USD USD (In thousands) Amount equivalent Amount equivalent RMB 606,845 93,454 538,660 77,651 USD 268,198 268,198 121,726 121,726 HKD 969 125 987 127 Total 361,777 199,504 Time deposits with original maturities of three months or less as of December 31, 2015 and 2016 primarily consist of the following currencies: December 31, 2015 December 31, 2016 USD USD (In thousands) Amount equivalent Amount equivalent RMB 349,099 53,760 USD 260,597 260,597 115,944 115,944 Total 314,357 115,944 |
Short-term investments
Short-term investments | 12 Months Ended |
Dec. 31, 2016 | |
Short-term investments [Abstract] | |
Short-term investments | 5. Short-term investments December 31, December 31, (In thousands) 2015 2016 Time deposits 38,829 Investments in financial instruments (note) 70,328 143,131 Total 70,328 181,960 Note: the investments were issued by commercial banks in PRC with a variable interest rate indexed to performance of underlying assets. Since these investments’ maturity dates are within one year, they are classified as short-term investments. Time deposits and investments in financial instruments are stated on the balance sheet at the principal amount plus accrued interest. Interest income is recorded in “other income” in the statement of comprehensive income. |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2016 | |
Accounts receivable, net [Abstract] | |
Accounts receivable, net | 6. Accounts receivable, net December 31, December 31, (In thousands) 2015 2016 Accounts receivable 11,392 14,655 Less: Allowance for doubtful accounts (126) (119) Accounts receivable, net 11,266 14,536 The accounts receivable that was fully reserved as of December 31, 2015 and 2016 was USD 0.1 0.1 December 31, December 31, December 31, (In thousands) 2014 2015 2016 Balance at beginning of the year 131 126 Additions 523 4 Write-off (393) Exchange difference 1 (9) (7) Balance at end of the year 131 126 119 The top 10 39 76 |
Prepayments and other assets
Prepayments and other assets | 12 Months Ended |
Dec. 31, 2016 | |
Prepayments and other assets [Abstract] | |
Prepayments and other assets | 7. Prepayments and other assets December 31, December 31, (In thousands) 2015 2016 Current portion: Advance to suppliers 882 2,392 Interest-free loans to employees (note a) 3,200 3,964 Advance to employees for business purposes 957 351 Interest receivable 564 210 Rental and other deposits 224 1,014 Prepayment for share repurchase plan (note b) 712 Prepaid management insurance 209 145 Receivable from Nesound (note c) 4,004 3,748 Prepayment for taxation 2,041 1,392 Others 275 377 Total of prepayments and other current assets 13,068 13,593 Non-current portion: Prepayments for online game licenses 4,786 490 Long term receivable 1,812 Low-interest loans to employees, non-current portion (note d) 833 697 Total of long-term prepayments and other assets 7,431 1,187 Note a: The Group had entered into loan contracts with certain employees as at December 31, 2015 and 2016, under which the Group provided interest-free loans to these employees. The loan amounts vary amongst different employees and are repayable on demand. Note b: As of 31, 2015, the prepayment for share repurchase plan represented prepayment made to a securities broker for 20 announced in . In January 2016 another 20 0.7 securities broker. As of December 31, 2016, all the prepayment has been utilized Note c: The Group sold Kankan to Nesound in July 2015. As at December 31, 2016, there is a balance receivable amounted to USD 3,748 thousand which was past due. The Group have brought the claim against Nesound to the arbitration tribunal and considered that the balances can be collected in full. Note d: The Group had entered into loan contracts with certain employees as at December 31, 2015 and 2016, under which the Group provided low-interest loans to these employees. The loan amounts vary amongst different employees and are repayable in equal instalments on a monthly basis over the term of 10 |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property and equipment [Abstract] | |
Property and equipment | 8. Property and equipment December 31, December 31, (In thousands) 2015 2016 Servers and network equipment 37,332 42,641 Computer equipment 1,544 1,538 Furniture, fixtures and office equipment 856 845 Motor vehicles 320 299 Leasehold improvements 2,504 2,794 Total original costs 42,556 48,117 Less: Accumulated depreciation (24,534) (27,675) Sub-total 18,022 20,442 Construction in progress 14 574 Total 18,036 21,016 December 31, December 31, December 31, (In thousands) 2014 2015 2016 Cost of revenues 5,652 5,003 5,848 General and administrative expenses 715 628 306 Sales and marketing expenses 123 7 5 Research and development expenses 10 8 6 Total 6,500 5,646 6,165 No impairment loss had been recognized for the years ended December 31, 2014, 2015 and 2016. |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2016 | |
Intangible assets, net [Abstract] | |
Intangible assets, net | 9. Intangible assets, net December 31, 2015 December 31, 2016 Net book Net book (In thousands) Cost Amortization Impairment value Cost Amortization Impairment value Land use rights 5,123 (409) 4,714 4,796 (543) 4,253 Trademarks 5,812 (1,107) 4,705 5,441 (1,814) 3,627 Non-compete agreement 1,415 (472) 943 1,325 (773) 552 Technology (including right-to-use) 2,261 (377) 1,884 2,117 (617) 1,500 Acquired computer software 619 (255) 364 884 (420) 464 Internal use software development costs 675 (641) 34 631 (631) Online game licenses (note) 5,827 (4,268) (770) 789 5,454 (4,383) (721) 350 21,732 (7,529) (770) 13,433 20,648 (9,181) (721) 10,746 Note: As of December 31, 2015 and 2016, full provision for impairment has been provided for an online game license due to significant under-performance in the past. Years ended December 31 (In thousands) 2014 2015 2016 Cost of Revenues 1,141 693 403 General and administrative expenses 372 386 323 Research and development expenses 542 1,589 1,497 Total 2,055 2,668 2,223 (In thousands) Intangible assets 2017 2,057 2018 1,623 2019 1,251 2020 1,233 2021 and thereafter 4,582 December 31, December 31, (In year) 2015 2016 Land use right 30 30 Trademarks 7 7 Non-compete agreement 4 4 Technology (including right-to-use) 8 8 Acquired computer software 5 5 Internal use software development costs 5 5 Online game licenses 3 3 Total weighted average amortization periods 11 11 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventories [Abstract] | |
Inventories | 10. Inventories December 31, December 31, (In thousands) 2015 2016 ZQB (note a) 92 31 XZB (note b) 76 152 Online shopping mall inventories (note c) 153 47 Others 159 144 Total 480 374 Note a: ZQB, a proprietary hardware connected to users’ network routers, can allocate users’ idle uplink capacity to the Company for further allocation to internet content providers. Note b: XZB is a personal cloud hardware, which can remotely control downloading through mobile phones or computers, to expand storage of terminals unlimitedly and share data in cloud storage. Note c: online shopping mall inventories include Xiaomi TV box, gaming discs etc. |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2016 | |
Long-term investments [Abstract] | |
Long-term investments | 11. Long-term investments December 31, December 31, (In thousands) 2015 2016 Equity method investments: Balance at beginning of the year 2,965 2,162 Additions (i) 1,442 Disposal (iii) (701) Share of loss from equity investees (12) (195) Dilution gains arising from deemed disposal of investments (iv) 702 Transfer to cost method investments (1,349) (786) Exchange differences (144) (132) Balance at end of the year 2,162 1,790 Cost method investments: Balance at beginning of the year 2,533 9,157 Additions (i)(ii) 6,506 32,707 Disposal (iii) (2,220) Dilution gains arising from deemed disposal of investment (iii)(iv) 689 Transfer from equity method investments 1,349 786 Exchange difference (429) (463) Less: impairment loss on long-term investments (802) (1,654) Balance at end of the year 9,157 39,002 Total long-term investments 11,319 40,792 Details of the Group’s ownership are as follows: Percentage of ownership of shares as of December 31, Investee 2015 2016 Equity method investments: Zhuhai Qianyou Technology, Co., Ltd. (“Zhuhai Qianyou”), 19.00 % 19.00 % Guangzhou Yuechuan Network Technology, Co., Ltd. (“Guangzhou Yuechuan”) (iii) 19.13 % Shenzhen Xunlei Big Data Information Service Co., Ltd. (“Big Data”) (i) 43.16 % Cost method investments: Guangzhou Yuechuan Network Technology, Co., Ltd. (“Guangzhou Yuechuan”) (iii) 9.30 % Shenzhen Kushiduo Network Science and Technology Co., Ltd. (“Shenzhen Kushiduo”)(ii)(iv) 12.5 % 10.00 % Shanghai Guozhi Electronic Technology Co., Ltd. (“Shanghai Guozhi”) 21.00 % 16.80 % Guangzhou Wucai Information Technology Co., Ltd.(“Guangzhou Wucai”) (v) 10.00 % Guangzhou Hongsi Network Technology Co., Ltd.(“Guangzhou Hongsi”) 19.90 % 19.90 % Tianjin Kunzhiyi Network Technology Co., Ltd.(“Tianjin Kunzhiyi”) (iv) 19.99 % Chengdu Diting Technology, Co., Ltd. (“Chengdu Diting”) (iv) 13.27 % 12.74 % Suzhou Heidisi Network Technology Co., Ltd.("Suzhou Heidisi") (ii) (v) 19.90 % Xiamen Diensi Network Technology Co., Ltd.("Xiamen Diensi") (i)(ii)(iv) 15.00 % 14.25 % Nanjing Qianyi Video Information Technology Co., Ltd.("Nanjing Qianyi") (ii)(iii) 20.00 % 11.2 Capital I, L.P. ("11.2 Capital") (ii) 2.24 % 2.05 % Cloudtropy (i)(ii) 1.13 % 9.69 % Shanghai Lexiang Technology Co., Ltd. ("Shanghai Lexiang") (i) 15.00 % Hangzhou Feixiang Data Technology Co., Ltd. ("Hangzhou Feixiang") (i) 20.00 % Shenzhen Meizhi Interactive Technology Co., Ltd. ("Meizhi Interactive") (i)(iv) 8.13 % Beijing Yunhui Tianxia Technology Co., Ltd. ("Yunhui Tianxia") (i) 7.50 % Arashi Vision Interative (Cayman) Inc. ("Insta 360") (i) 11.46 % Cloudin Technology (Cayman) Limited ("Cloudin") (i) 4.47 % Shenzhen RenJian RenAi Networking Technology Co., Ltd. (“RenJian RenAi”) (i) In 2016, the Group made an equity investment in a privately-held company, Big Data, of USD 1,442 43.16 In 2016, the Group also made equity investments in seven 28,242 1.13 9.69 3,780 700 15 14.25 (ii) In 2015, the Group made equity investments in five 39 25 10 12.5 (iii) In January 2016, the Group disposed of 9 701 1.3 19.13 10.13 10.13 9.3 69 2.16 230 626 (iv) In May 2014, the Group obtained the right to appoint a director to Chengdu Diting and thus had one five 19.9 16.58 10 1,627 39.07 6.39 16.58 13.27 4.38 702 In 2016, in addition to a dilution gain arising from deemed disposal of equity investment in Guangzhou Yuechuan of USD 69 100 84 248 188 (v) In September of 2015, Tianjin Kunzhiyi suffered from financial difficulties and lost most of its core R&D staff. As a result, new games couldn't be promoted as committed in investment agreement with the Group. The Group recognized impairment of RMB 5 million (USD 802 thousand) for its interest in Tianjin Kunzhiyi as considered necessary. In 2016, in addition to impairment of RenJian RenAi (note 11 (iii)), the Group also recognized impairment against its investments in Guangzhou Wucai, Suzhou Heidisi, and Shanghai Guozhi of USD 301 597 526 |
Deferred revenue and income
Deferred revenue and income | 12 Months Ended |
Dec. 31, 2016 | |
Deferred revenue and income [Abstract] | |
Deferred revenue and income | 12. Deferred revenue and income December 31, December 31, (In thousands) 2015 2016 Deferred revenue Membership subscription revenues 24,502 22,115 Online game revenues (i) 1,120 1,490 Deferred income Government grants (ii) 4,032 4,195 Reimbursement from the depository (iii) 842 814 Total 30,496 28,614 Less: non-current portion (iv) (5,383) (4,082) Deferred revenue and income, current portion 25,113 24,532 (i) The estimated lives of the user relationship extended, as result of change in accounting estimate of the lives of online game. Accordingly, the portion recognized as deferred revenue of online game increased. (ii) In March and June of 2016, the Group received government grant of USD 2.5 5 (iii) In August 2016, the Company received from its depositary bank 0.27 0.6 5 (iv) As of December 31, 2016, the non-current portion included membership subscription revenue of USD 820 719 2,719 4,032 543 632 |
Accrued liabilities and other p
Accrued liabilities and other payables | 12 Months Ended |
Dec. 31, 2016 | |
Accrued liabilities and other payables [Abstract] | |
Accrued liabilities and other payables | 13. Accrued liabilities and other payables December 31, December 31, (In thousands) 2015 2016 Payroll and welfare 10,570 11,322 Agency commissions and rebatesonline advertising 2,443 2,297 Payables for advertisement on exclusive online games 1,643 1,521 Receipts in advance from customers (note a) 5,538 Tax levies 1,605 1,864 Payables for purchase of equipment 4,999 3,235 Legal and litigation related expenses (Note 26) 2,601 2,904 Professional fees 908 1,007 Staff reimbursements 611 452 Rental expense 4 5 Payables for proceeds from selling exercised stock options 177 352 Payables for gaming distribution 158 147 Payables to Nesound 622 807 Others 1,038 1,680 Total 27,379 33,131 note a: Receipts in advance from customers represents prepayment from a customer in respect of CDN and advertisements services. |
Cost of revenues
Cost of revenues | 12 Months Ended |
Dec. 31, 2016 | |
Cost of revenues [Abstract] | |
Cost of revenues | 14. Cost of revenues Cost of revenues from continuing operations (In thousands) Years ended December 31, 2014 2015 2016 Bandwidth costs 33,545 37,218 55,135 Content costs, including amortization 338 692 Payment handling fees 11,305 9,087 6,967 Depreciation of servers and other equipment 5,102 4,873 5,848 Games revenue sharing costs and others (note) 5,803 8,518 11,677 Total 55,755 60,034 80,319 Note: gaming revenue sharing costs and others mainly include gaming sharing costs, cost of ZQB and cost of live video. |
Redeemable convertible preferre
Redeemable convertible preferred shares | 12 Months Ended |
Dec. 31, 2016 | |
Redeemable convertible preferred shares [Abstract] | |
Redeemable convertible preferred shares | 15. Redeemable convertible preferred shares Series D convertible redeemable preferred shares On January 31, 2012, the Company entered into an agreement to issue Series D preferred shares and warrants to a third-party investor for a total consideration of USD 37,500 10,580,397 3.544 2,218,935 3.38 5,036,367 The key terms of the Series D preferred shares were as follows: Dividend rights The holders of the Series D preferred shares were entitled to participate in any dividend pari passu with common shareholders of the Company on an as-converted basis. Liquidation preferences Amount shall be paid to Series D holders before any distribution or payment shall be made to the holders of Series A, Series A- 1 Upon issuance of Series E preferred shares, the liquidation preference of Series D preferred shares was amended. Before any distribution or payment shall be made to the Series A, A- 1 Voting rights The holders of the Series D preferred shares shall be entitled to such number of votes equal to the whole number of common shares into which such Series D preferred shares are convertible. Conversion rights Each share of the Series D preferred shares was convertible at the option of the holder, at any time after the issuance of such shares, and each share can be converted into one common share of the Company In addition, each share of the Series D preferred shares would automatically be converted into common shares of the Company (i) upon the closing of an initial public offering of the Company’s shares or (ii) upon written notice to convert given to the Company by the holders of a majority of Series D preferred shareholders. Redemption Right th th 3.544 8 The Company had determined that the Series D preferred shares should be classified as mezzanine equity. The Series D warrant is initially measured at its fair value and the initial carrying value for Series D preference shares is allocated on a residual basis as it was liability classified. The initial carrying value for Series D preference shares was USD 32,481 2,012 The carrying value of the preferred shares was accreted from its carrying value on the date of issuance to the redemption value using effective interest method from date of issuance to the earliest redemption date. The accretion was recorded against retained earnings, or in the absence of retained earnings, by charging against additional paid-in capital. Once additional paid-in capital had been exhausted, additional charges were recorded by increasing the accumulated deficit. The Company had determined that conversion and redemption features embedded in the Series D convertible redeemable preferred shares were not required to be bifurcated and accounted for as a derivative. Series D Warrants 3,007 2,186 710 1,531 Exchange of Series D warrants and the issuance of Series E warrants The warrants to purchase 1,952,663 266,272 3.38 2,414 3,406,824 2.82 2,819 The exchange of the Series D warrants and the issuance of the Series E warrants were considered to be a related transaction and are accounted for as a single transaction because the holder was willing to allow the Series D warrants to expire in contemplation that they would be issued Series E warrants. A loss of USD 405 The fair value of the Series D warrants and the Series E warrants was estimated by the Company with the assistance of an independent valuation firm based on the Company’s estimates and assumptions. The valuation report provided the Group with guidelines in determining the fair value, but the determination was made by the Group. The Group applied the Black-Scholes Option Pricing Model to calculate the fair value of the Series D warrant on the valuation date. February 6, 2014 Spot price (1) 4.47 Risk-free interest rate (2) 0 %* Volatility rate (3) 0 %* Dividend yield (4) * Given that the maturity date of Series D warrant was February 6, 2014, the volatility rate and risk-free interest rate did not affect the valuation of the warrant on February 6, 2014. March 5, 2014 Spot price (1) 3.31 - 4.65 Risk-free interest rate (2) 0.04% - 0.12 % Volatility rate (3) 38.39% - 38.81 % Dividend yield (4) (1) Spot price based on the fair value of 100 80 10 10 (2) Risk-free interest rate based on the US Treasury Bond & Notes BFV curve from Bloomberg as at the valuation date. (3) Volatility based on the average historical volatility of the comparable companies from Bloomberg as at the valuation date. (4) The Company has no history or expectation of paying dividends on its common shares. Triggering of the anti-dilution clause 3.5 2.86 6,771,454 8,391,850 6,771,454 For the remaining 3,808,943 Upon the completion of the IPO on 24 June 2014, the Company adjusted the Series D conversion price from USD 2.86 2.27 6,771,454 10,581,726 6,771,454 4,008 Modification of redemption rights Upon issuance of the Series E preferred shares in March 2014, the Company amended the redemption rights of 6,771,454 279 In determining the accounting for the modification of the Series D preferred shares, the Company estimated the valuation of the Series D preferred shares with the assistance of an independent valuation firm based on the Company’s estimates and assumptions. Option-pricing method was used to allocate enterprise value to preferred and ordinary shares, taking into account the guidance prescribed by the AICPA Audit and Accounting Practice Aid, ‘‘Valuation of Privately-Held Company Equity Securities Issued as Compensation’’. The method treats common stock and preferred stock as call options on the enterprise’s value, with exercise prices determined based on the liquidation preference of the preferred stock. The option-pricing method involves making estimates of the anticipated timing of a potential liquidity event, such as a sale of the Company or an initial public offering, and estimates of the volatility of the Company’s equity securities. The anticipated timing was based on the plans of management. Estimating the volatility of the share price of a privately held company was complex because there is no readily available market for the shares. The Company estimated the volatility of its shares to range from 38.39 43.40 Modification of liquidation rights Upon issuance of the Series E preferred shares, the Company amended the liquidation rights of Skyline Holdings’ common shares, Series A preferred shares, Series A-1 preferred shares, and Series B preferred shares (collectively, the ‘‘Series D Investor Shares’’). As a result of this amendment, the Series D Investor Shares had priority to receive proceeds from the Company upon liquidation over the common shares, Series A preferred shares, Series A-1 preferred shares, Series B preferred shares and Series C preferred shares held by other investors. This right given to the Skyline Holdings was non-transferable to a third party. The amendment of the liquidation rights was accounted for as modification of the terms of Series D Investor Shares. However, the incremental value received by Skyline Holdings is deemed to be negligible. No accounting charge was recorded by the Company. Similar to the modification of the Series D preferred shares as stated above, the fair value of the Series D preferred shares was estimated by the Company with the assistance of an independent valuation firm based on the Company’s estimates and assumptions. The Option-pricing method as described above, was also used to account for this modification. The Company estimated the volatility of its shares to range from 38.39 43.40 The Group had determined that there was no beneficial conversion feature attributable to the Series D preferred shares because the initial and adjusted effective conversion prices of these preferred shares were higher than the fair value of the Company’s common shares determined by the Group with the assistance from an independent valuation firm. Initial public offering Upon the completion of the IPO on 24 June 2014, the Series D Investor did not exercise Series E warrants, and the fair value of Series E warrants was nil. The fair value gain of USD 2,922 10,581,726 Year ended Year ended December 31,2013 December 31,2014 Beginning balance 35,990 40,290 Deemed dividend to Series D shareholder from its modification 279 Accretion of Series D to convertible redeemable preferred shares redemption value 4,300 1,870 Repurchase of preferred shares (15,003) Deemed dividend to preferred shareholders upon IPO 4,008 Converted to common shares upon IPO (31,444) Ending balance 40,290 Series E convertible redeemable preferred shares On March 5, 2014, the Company entered into an agreement to issue Series E preferred shares (the ‘‘Series E Tranche 1 Preferred Shares’’) and warrants to a third-party investor (‘‘Series E Tranche 1 Investor’’) for a total consideration of USD 200 70,975,491 2.82 17,743,873 2.82 35,487,746 2.82 The key terms of the Series E preferred shares were as follows: Dividend rights The holders of the Series E preferred shares were entitled to participate in any dividend pari passu with common shareholders of the Company on an as-converted basis. Liquidation preferences Before any distribution or payment shall be made to the holders of Series A, Series A-1, Series B, Series C and D preferred shares, an amount shall be paid to Series E holders with respect to each Series E preferred share held by the Series E holder equal to 100 Voting rights The holders of the Series E preferred shares shall be entitled to such number of votes equal to the whole number of common shares into which such Series E preferred shares are convertible. Conversion rights Each of the Series E preferred shares was convertible at the option of the holder, at any time after the issuance of such shares, and each share could be converted into one common share of the Company. The conversion was subject to adjustments for certain events, including but not limited to additional equity securities issuance, reorganization, mergers, share dividends, distribution, subdivisions, redemptions, combinations, or consolidation of common shares. The conversion price was also subject to adjustment in the event the Company issues additional common shares at a price per share that was less than such conversion price. In such case, the conversion price shall be reduced to adjust for dilution on a weighted average basis. In addition, each of the Series E preferred shares would automatically be converted into common shares of the Company (i) upon the closing of an initial public offering of the Company’s shares or (ii) upon written notice to convert given to the Company by the holders of a majority of Series E preferred shareholders. Redemption right The Series E preferred shares were redeemable at the option of the investor any time after March 1, 2018 but not later than March 1, 2019. The redemption price shall be equal to the aggregate amount of price paid per such share pursuant to the share purchase agreement (i.e. USD 2.82 15 The Company had determined that the Series E preferred shares should be classified as mezzanine equity in the unaudited condensed consolidated balance sheets because the preferred shares are only contingently redeemable by the holder four years after the issuance date. The carrying value of the preferred shares is accreted from its carrying value on the date of issuance to the redemption value using the effective interest method from date of issuance to the earliest redemption date. The accretion was recorded against retained earnings, or in the absence of retained earnings, by charging against additional paid-in capital. Once additional paid-in capital has been exhausted, additional charges should be recorded by increasing the accumulated deficit. The Company assessed beneficial conversion feature attributable to the Series E Tranche 1 Preferred Shares and determined that there was a beneficial conversion feature with an amount of USD 52,377 52,377 2.31 3.05 2.82 2.31 December 31, (In thousands) 2014 Beginning balance Addition 275,314 Exercise of Series E subsequent sale rights 28,568 BCF upon Series E (53,486) Amortisation of BCF of Series E 4,139 Accretion of Series E to convertible redeemable preferred shares redemption value 12,754 Acceleration of amortization of BCF of Series E upon IPO 49,346 Deemed dividend to preferred shareholders upon IPO 27,396 Converted to common shares upon IPO (344,031) Ending balance Exchange of Series E Tranche 1 Investor options for transfer restrictions As part of the issuance of the Series E Tranche 1 Preferred Shares, the Series E Tranche 1 Investor and the Company’s founders (who are also employees) and two employees (collectively the ‘‘Grantees’’) of the Company agreed that (i) Series E Tranche 1 Investor will grant to the Grantees the right to purchase certain number of restricted shares of the Series E Tranche 1 Investor’s own shares with a total subscription consideration of not more than USD 20 10 39,934,162 3,394,564 180,000 180,000 75 The value of the Transfer Restrictions was determined to be significantly greater than the value of Series E Tranche 1 Investor Options. In determining the value of the Transfer Restrictions, the Company was assisted by an independent valuation firm based on data provided by the Company. The valuation of the Transfer Restrictions is estimated to be USD 43.3 10 43.3 30 200 10 30 To determine the fair value of the Transfer Restrictions, the Company valued the common shares with the Transfer Restrictions and compared this value to the value of the common shares without the restriction. The difference was determined to be the value of the Transfer Restrictions. A put option pricing model was used to determine the discount to be applied to the common shares to arrive at the value of common shares with the Transfer Restrictions. Pursuant to that model, the Company used the cost of a put option, which can be used to hedge the price change before a share subject to transfer restriction can be sold, as the basis to determine the discount for transfer restrictions. A put option was used because it incorporates certain company-specific factors, including timing of the expected initial public offering or duration of the Transfer Restriction and the volatility of the share price companies engaged in the same industry. Series E Warrants The Series E warrants (‘‘Series E warrants’’) granted to the Series E Tranche 1 Investor is exercisable at the option of the Series E Tranche 1 Investor, at any time, on or after January 1, 2015 and no later than March 1, 2015. The warrants are not exercisable if the Company has completed the initial public offering in the United States by December 31, 2014. The exercise price shall be adjusted from time to time as provided below: proportionate adjustment for issuance of additional common shares, share split and combination, dividend and distributions, reclassification, reorganization, merger, and consolidations. The warrants are not entitled to dividend rights nor to vote until the warrants are exercised and shares become issuable. The Series E warrants are initially measured at its fair value and the initial carrying value for Series E Tranche 1 Preferred Shares is allocated on a residual basis as the warrant is liability classified. The Series E warrants are initially measured at their fair value of USD 6,477 The fair value of the Series E warrants were estimated by the Company with the assistance from an independent valuation firm based on data provided by the Company. The valuation report provided by the Company with guidelines in determining the fair value, but the determination was made by the Company. The Company applied the Black-Scholes Option Pricing Model to calculate the fair value of the Series E warrants on the valuation date. March 5, 2014 Spot price (1) 4.50 - 4.65 Risk-free interest rate (2) 0.12 % Volatility rate (3) 38.81 % Dividend yield (4) (1) Spot price based on the fair value of 100 80 10 10 (2) Risk-free interest rate based on the US Treasury Bond & Notes BFV curve from Bloomberg as at the valuation date. (3) Volatility based on the average historical volatility of the comparable companies from Bloomberg as at the valuation date. (4) The Company has no history or expectation of paying dividends on its common shares. Subscription Rights Within 3 months after March 5, 2014, the Series E Tranche 1 Investor shall have Subscription Rights to purchase, or designate any other person/party to purchase from the Company an additional number of 35,487,746 2.82 On April 24, 2014, two of the three Series E Tranche 2 100 10 29,223 The fair value of the Subscription Rights was estimated by the Company with the assistance from an independent valuation firm based on data provided by the Company. The valuation report provided by the Company with guidelines in determining the fair value, but the determination was made by the Company. The Company applied the Black-Scholes Option Pricing Model to calculate the fair value of the Subscription Rights on the valuation date. The Subscription Rights are initially measured at their fair value of USD 28,208 29,223 March 5, April 24, 2014 2014 Spot price (1) 3.31 - 4.65 3.39 - 4.64 Risk-free interest rate (2) 0.04 % 0.02 % Volatility rate (3) 38.12 % 42.74 % Dividend yield (4) (1) Spot price based on the fair value of 100 80 10 10 (2) Risk-free interest rate based on the US Treasury Bond & Notes BFV curve from Bloomberg as at the valuation date. (3) Volatility based on the average historical volatility of the comparable companies from Bloomberg as at the valuation date. (4) The Company has no history or expectation of paying dividends on its common shares. Issuance of Series E Tranche 2 Preferred Shares On April 24, 2014, the Company issued Series E convertible redeemable preferred shares (the ‘‘Series E Tranche 2 Preferred Shares’’) to three investors (the ‘‘Series E Tranche 2 Investors’’) to subscribe 39,037,382 110 The Company assessed the beneficial conversion feature attributable to the Series E Tranche 2 Preferred Shares and determined that there was a beneficial conversion feature with an amount of USD 1,109 10 100 Initial public offering Upon the completion of the IPO on 24 June 2014, the Company adjusted the Series E conversion price from USD 2.82 2.4 110,014,440 129,166,667 27,396 49,346 Upon the completion of the IPO on 24 June 2014, the Series E warrants are not exercisable in future. As a result, the fair value of Series E warrants liability of USD 6,381 |
Convertible preferred shares
Convertible preferred shares | 12 Months Ended |
Dec. 31, 2016 | |
Convertible preferred shares [Abstract] | |
Convertible preferred shares | 16. Convertible preferred shares The key terms of the Series A, Series A-1, Series B and Series C preferred shares are as follows: Dividend rights The holders of the Series A, Series A-1, Series B and Series C preferred shares are entitled to participate in any dividend pari passu with common shareholders of the Company on an as-converted basis. Liquidation preferences In the event of a liquidation, dissolution or winding up of the Company, available assets and funds of the Company are distributed to the holders of the preferred shares in order of 1) Series C and Series B which are grouped as one class for the purpose of liquidation preference, 2) Series A-1 and then 3) Series A, at their respective original issuance price per share plus any declared but unpaid dividends adjusted for share splits, share dividends, recapitalizations, and other adjustments. In the event that available assets and funds are insufficient to permit payment to the holders of the less senior class of preferred shares, the assets and funds will be distributed ratably to that class of preferred shareholders based on their proportional share ownership. After the distribution to the holders of Series C and Series B, Series A-1, Series A preferred shares and common shares are made, any remaining legally available assets and funds shall be distributed to the holders of common shares and Series C and Series B, Series A-1 and Series A preferred shares pro rata on an as-converted basis. In addition, the following events are deemed liquidation events in which case any proceeds derived from such deemed liquidation events will be distributed in the order discussed above. If no proceeds are derived from such deemed liquidation events, the Series B preferred shareholders shall have the right to require the Company to repurchase all or any of the outstanding Series B preferred shares at the original issue price. 1) Any consolidation or merger of the Company or other corporate reorganization, in which the shareholders of Company own less than a majority of the voting power of the Company or surviving company, after such consolidation, merger or reorganization 2) A sale of other disposition of all or substantially all of the assets of the Company or the Group 3) A transfer or an exclusive licensing of all or substantially all of the intellectual property of the Company However, all liquidation events or deemed liquidation event have to be approved by a special resolution passed by a duly convened general meeting of the Company, which require presence of a representative from the common shareholders, a representative from Series A-1 preferred shareholders and a representative from Series B preferred shareholders. Accordingly, the Company determined that the deemed liquidation events are within the control of the Company and the Series B preferred shareholders do not have control of the Company. Therefore, the deemed liquidation events do not preclude the Series B preferred shares from being classified within permanent equity. Voting rights The holders of the Series A, Series A-1, Series B and Series C preferred shares shall be entitled to such number of votes equal to the whole number of common shares into which such Series A, Series A-1, Series B and Series C preferred shares are convertible. Conversion rights Each share of the Series A, Series A-1, Series B and Series C preferred shares is convertible at the option of the holder, at any time after the issuance of such shares, and each share can be converted into one common share of the Company. In addition, each share of the Series A, Series A-1, Series B and Series C preferred shares would automatically be converted into common shares of the Company upon (i) an underwritten public offering of the company’s shares on major stock exchanges, including Nasdaq Global Market that results in proceeds to the Company of at least USD 50 million (“QIPO”) or (ii) upon written notice to convert given to the Company by the holders of a majority of such class or series of preferred shares in issue, in each case voting as a separate class on an as converted basis, as applicable. At the time of issuance, the Series A preferred shares issued to one of the shareholders in 2005 contained a beneficial conversion feature of USD 54 At the time of anti-dilution, the Series C preferred shares anti-diluted in 2012 contained a beneficial conversion feature of USD 286 In April, 2011, the Company removed the USD 50 None of the preferred shares are redeemable at the holders’ option. Modification in 2012 Upon issuance of Series D preferred shares in January 2012 as discussed in note 15, the Company adjusted the Series C conversion price from USD5.24 to USD4.14 per share; and obtained an exclusive option to purchase at any time within 12 months after the date of the conversion for all, but not less than all, of Series C preferred shares at the purchase price of USD 4.607 7,248,293 5,728,264 The Company concluded that the downward conversion price adjustment from USD 5.24 5.13 4.14 2,905 In determining the accounting for the modification of the Series C preferred shares, the Group also relied on, in part, a valuation report retrospectively prepared by an independent valuer based on data provided by the Group. The valuation report provided the Group with guidelines in determining the fair value, but the determination was made by the Group. Option-pricing method was used to allocate enterprise value to preferred and ordinary shares, taking into account the guidance prescribed by the AICPA Audit and Accounting Practice Aid, “Valuation of Privately-Held Company Equity Securities Issued as Compensation”. The method treats common stock and preferred stock as call options on the enterprise’s value, with exercise prices determined based on the liquidation preference of the preferred stock. The option-pricing method involves making estimates of the anticipated timing of a potential liquidity event, such as a sale of the Company or an initial public offering, and estimates of the volatility of the Group’s equity securities. The anticipated timing is based on the plans of management. Estimating the volatility of the share price of a privately held company is complex because there is no readily available market for the shares. The Group estimated the volatility of its shares to range from 55.36 59.91 Modification in 2014 In January of 2014, the Company modified the anti-dilution terms relating to 5,613,699 4.14 2.81 Triggering of the anti-dilution clause Upon issuance of Series E preferred shares in March and April 2014, the Company adjusted the Series C conversion price from USD 4.14 3.64 3.64 3.63 114,565 165,236 114,565 58 Upon the completion of the IPO on 24 June 2014, the Company adjusted the Series C conversion price from USD 4.14 3.89 3.63 3.45 5,613,699 114,565 7,724,419 1,403 As a result, 96,024,567 |
Common shares
Common shares | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Common shares | 17. Common shares The Company’s Memorandum and Articles of Association authorizes the Company to issue 1,000,000,000 0.00025 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. 339,319,115 330,545,000 |
Repurchase of shares
Repurchase of shares | 12 Months Ended |
Dec. 31, 2016 | |
Repurchase of shares [Abstract] | |
Repurchase of shares | 18. Repurchase of shares The following table is a summary of the shares repurchased by the Company during 2016 under the Repurchase Program. No shares were repurchased during 2016 except during the months indicated and all shares were purchased through privately negotiated transactions as a mean of exercising share options from Xunlei’s employees and publicly purchasing from the open market pursuant to the Repurchase Program: Total Number of ADSs Purchased as Part of the Publicly Average Price Periods Announced Plan Paid Per ADS March 15 March 30 408,985 6.22 April 1 April 14 457,900 6.61 May 2 May 31 449,696 6.28 June 9 June 30 111,459 5.24 July 1 July 29 555,357 5.33 August 1 August 30 229,695 5.83 September 6 September 30 15,467 5.33 October 13 - October 27 31,400 5.11 November 18 November 30 21,229 4.61 December 2 December 30 173,312 4.02 Total 2,454,500 Note a In January 2016, our board of directors authorized a share repurchase program, whereby the Company may repurchase up to US$ 20 Note b During the year ended December 31, 2016, 2,454,500 ADSs purchased at an aggregate consideration of USD 14,319 thousand under the Repurchase Program. the remaining unused of approximately USD 5.7 million was |
Non-controlling interest
Non-controlling interest | 12 Months Ended |
Dec. 31, 2016 | |
Non-controlling interest [Abstract] | |
Non-controlling interest | 19. Non-controlling interest Non-controlling interest includes the interest owned by a shareholder of the Company in a subsidiary of the consolidated VIE. In February 2010, Shenzhen Xunlei set up a new subsidiary named Xunlei Games Development (Shenzhen) Co., Ltd. (“Xunlei Games”) and holds 70 3,000 439 30 |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2016 | |
Share-based compensation [Abstract] | |
Share-based compensation | 20. Share-based compensation 2010 share incentive plan During the years presented, the Company granted share options to employees, officers and directors of the Group. These options were granted with exercise prices denominated in the USD, which is the functional currency of the Company. The maximum term of any issued stock option is seven ten (1) One-fourth of the options shall be vested upon the first anniversary of the grant date; (2) The remaining three quarters of the options shall be vested on monthly basis over the next thirty-six months. ( 1 48 Stock options granted to directors were subject to a vesting schedule of approximately 32 All share-based payments to employees are measured based on their grant-date fair values. Compensation expense is recognized on a straight-line basis over the requisite service period. In December 2010, the Group adopted a share incentive plan, which is referred to as the 2010 Share Option Plan (“the 2010 Plan”). The purpose of the plan is to attract and retain the best available personnel by linking the personal interests of the members of the board, employees, and consultants to the success of the Group’s business and by providing such individuals with an incentive for outstanding performance to generate superior returns for our shareholders. Under the 2010 Plan, the maximum number of shares in respect of which options, restricted shares, or restricted share units may be granted is 26,822,828 4,677,465 On June 11, 2014, our board of directors decided to extend the contractual life for certain vested share options to June 11, 2015 6 768 In the business combination of personal cloud storage business completed on September 5, 2014 303 44 On December 1, 2014, our board of directors approved the conversion of certain vested and unvested share options with relatively high exercise price into restricted shares. In this conversion, 3,776,711 1,505,787 2,214 2 4.5 In November 2014, the Company issued to a depositary bank for American Depositary Shares, 10,000,000 Weighted Weighted Weighted- average Aggregate average average remaining intrinsic Number of exercise grant-date contractual life value (in share options price (USD) fair value (USD) (years) thousands) Outstanding, December 31, 2014 9,940,285 1.88 1.95 3,067 Vested and expected to vest at December 31, 2014 9,642,307 1.86 0.49 1.87 3,057 Exercisable at December 31, 2014 9,129,958 1.81 0.41 1.49 3,042 Granted 561,705 0.88 0.76 Forfeited (1,494,922) 3.22 Expired (3,606,304) 1.78 Converted to restricted shares (80,000) 2.40 Exercised (3,189,944) 0.25 4.46 556 Outstanding, December 31, 2015 2,130,820 2.13 Vested and expected to vest at December 31, 2015 1,008,645 1.76 0.73 4.62 464 Exercisable at December 31, 2015 1,430,870 2.16 0.86 4.03 406 Granted - - - Forfeited (14,375) 3.21 Expired (182,510) 2.22 Converted to restricted shares - - Exercised (440,465) 1.81 Outstanding, December 31, 2016 1,493,470 2.65 3.39 6 Vested and expected to vest at December 31, 2016 1,440,923 2.67 0.85 3.24 6 Exercisable at December 31, 2016 1,217,050 2.70 0.84 3.20 6 Weighted-Average Number of Grant-Date Fair restricted shares Value Unvested at January 1, 2015 1,505,787 Converted from share options 80,000 1.71 Vested (390,560) Forfeited (763,010) Unvested at December 31, 2015 432,217 Vested and expected to vest at December 31, 2015 367,384 Granted 1,170,000 Vested (274,960) Forfeited (384,037) Unvested at December 31, 2016 943,220 Vested and expected to vest at December 31, 2016 801,737 Forfeitures are estimated at the time of grant. If necessary, forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates. Based upon the Company’s historical and expected forfeitures for stock options granted, the directors of the Company estimated that its future forfeiture rate would be 20 The aggregate intrinsic value in the table above represents the difference between the estimated fair value of the Company’s common shares as of December 31, 2015 and 2016 and the exercise price. Total fair values of share options vested as of December 31, 2015 and 2016 were USD 6,297 6,831 As of December 31, 2015 and 2016, there were USD 1,147 1,358 4.03 3.20 The Black-Scholes option pricing model is used to determine the fair value of the stock options granted to employees. Options granted to employees Years ended December 31, 2014 2015 Risk-free interest rate (1) 0.77% to 1.76% 0.77% to 1.76% Dividend yield (2) Volatility rate (3) 40.07% to 43.3% 40.07% to 43.3% Expected term (in years) (4) 4.13 to 4.58 4.07 to 5.57 (1) The risk-free interest rate of periods within the contractual life of the share option is based on the USD denominated China Government Bond yield as at the valuation dates. (2) The Company has no history or expectation of paying dividends on its common shares. (3) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (4) The expected term is developed by assuming the share options will be exercised in the middle point between the vesting dates and maturity dates. 2013 share incentive plan In November 2013, the Group adopted a share incentive plan, which is referred to as the 2013 Share Incentive Plan (“the 2013 Plan”). The purpose of the plan is to motivate, attract and retain the best available personnel by linking the personal interests of senior management to the success of the Group’s business. The Group appointed Leading Advice Holdings Limited (“Leading Advice”), a BVI company owned by the Group’s chairman and chief executive officer for no consideration, to administer the plan and as the Administrator. Leading Advice has no activities other than administering the plan and does not have employees. The Group has considered whether Leading Advice is a variable interest entity and, if so, whether the Group is the primary beneficiary. The Group concluded that it is not the primary beneficiary of Leading Advice. On behalf of the Group, the Administrator has the authority to select the eligible participants to whom awards will be granted: determine the types of awards and the number of shares covered: establish the terms, conditions and provisions of such awards; cancel or suspend awards; and, under certain conditions to accelerate the exercisability of awards. The Administrator is authorized to interpret the 2013 Plan; to establish, amend, and rescind any rules and regulations relating to the 2013 Plan; to determine the terms of agreements entered into with recipients under the 2013 Plan; and, to make all other determinations that may be necessary or advisable for the administration of the 2013 Plan. In the event of any disagreement between the Group and Leading Advice, the Group’s decision shall be final and binding. In November 2013, the Company issued 9,073,732 For the awards that have been granted and become vested, Leading Advice held shares for the grantees’ benefit and exercise the voting rights on their behalf. The grantees will be entitled to dividends and have the right to request Leading Advice to transfer vested award to a transferee designated by the grantees. Shares that have been granted and vested continued to be held by and voting rights exercised by Leading Advice on behalf of the grantee at the closing of a QIPO. Before the closing of a QIPO, the Company would have a “right of first refusal” with respect to any proposed transfer of vested restricted shares. After the closing of a QIPO, vested restricted shares may not be sold or transferred for a period of six months or a period of time determined by the underwriter (the ‘‘lock up period’’). If the grantee terminates its employment prior to the closing date of a QIPO and a trade sale, the Group would have the right to acquire the vested restricted shares from the senior officer at a market price as determined by third-party valuation experts. Upon the closing of IPO, the administrator of the 2013 Plan was changed from Leading Advice to the Company’s compensation committee. Under the 2013 Plan, the maximum number of restricted shares that may be granted is 9,073,732 As of December 31, 2016, 8,664,980 (2015: 7,987,435 (1) 5,098,345 (2) 1,102,430 (3) 854,405 (4) 689,700 (5) 640,100 (6) 160,000 (7) The remaining 120,000 Number of Weighted-Average restricted Grant-Date Fair shares Value Unvested at January 1, 2014 8,095,238 Granted 4,233,558 2.89 Vested (1,563,222) Forfeited (3,564,796) Unvested at December 31, 2014 7,200,778 Vested and expected to vest at December 31, 2014 6,120,662 Unvested at January 1, 2015 7,200,778 Vested (2,627,815) Forfeited (776,565) Unvested at December 31, 2015 3,796,398 Vested and expected to vest at December 31, 2015 3,226,939 Unvested at January 1, 2016 3,796,398 Vested (1,520,760) Forfeited (561,103) Unvested at December 31, 2016 1,714,535 Vested and expected to vest at December 31, 2016 1,457,355 Forfeitures are estimated at the time of grant. If necessary, forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates. All restricted shares granted to senior officers are measured based on their grant-date fair values. Compensation expense is recognized on a straight-line basis over the requisite service period. As of December 31, 2016, total unrecognized compensation expense relating to the restricted shares was USD 10,138 60,000 2014 share incentive plan In April 2014, the Group adopted a share incentive plan, which is referred to as the 2014 Share Incentive Plan (“the 2014 Plan”). The purpose of the plan is to motivate, attract and retain the best available personnel by linking the personal interests of senior management to the success of the Group’s business. Under the 2014 Plan, the maximum number of restricted shares that may be granted is 14,195,412 14,195,412 As of December 31, 2016, 14,536,000 (1) 9,040,500 (2) 5,400,000 (3) 9,000 (4) The remaining 86,500 Number of Weighted-Average restricted Grant-Date Fair shares Value Unvested at January 1, 2015 3,896,500 Granted 3,890,500 1.53 Vested (859,100) Forfeited (1,166,500) Unvested at December 31, 2015 5,761,400 Vested and expected to vest at December 31, 2015 4,897,100 Unvested at January 1, 2016 5,761,400 Granted 6,749,000 Vested (1,262,200) Forfeited (971,900) Unvested at December 31, 2016 10,276,300 Vested and expected to vest at December 31, 2016 8,734,855 Forfeitures are estimated at the time of grant. If necessary, forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates. All restricted shares granted are measured based on their grant-date fair values. Compensation expense is recognized on a straight-line basis over the requisite service period. As of December 31, 2016, the total unrecognized compensation expense relating to the restricted shares was USD 12,416 60,000 Years ended December 31, (In thousands) 2014 2015 2016 Sales and marketing expenses 66 131 98 General and administrative expenses 6,407 6,701 6,267 Research and development expenses 1,171 2,896 2,983 Total 7,644 9,728 9,348 |
Basic and diluted net income _
Basic and diluted net income / (loss) per share | 12 Months Ended |
Dec. 31, 2016 | |
Basic and diluted net (loss) / income per share [Abstract] | |
Basic and diluted net (loss) / income per share | 21. Basic and diluted net income/ (loss) per share Basic and diluted net income/ (loss) per share for the years ended December 31, 2014, 2015 and 2016 are calculated as follows: (Amounts expressed in thousands of United States dollars (“USD”), except for number of shares and per share data) Years ended December 31, 2014 2015 2016 Numerator: Net income/(loss) from continuing operations 28,269 (2,370) (23,976) Net loss from discontinued operations (18,407) (12,096) (207) Net income/(loss) 9,862 (14,466) (24,183) Less: Net (loss) attributable to the non-controlling interest (950) (1,299) (72) Net income/(loss) attributable to Xunlei Limited 10,812 (13,167) (24,111) Accretion of Series D to convertible redeemable preferred shares redemption value (1,870) Contingent beneficial conversion feature of series C to one Series C shareholder (57) Deemed dividend to Series D shareholder from its modification (279) Accretion of Series E to convertible redeemable preferred shares redemption value (12,754) Amortization of beneficial conversion feature of Series E (4,139) Deemed dividend to certain shareholders from repurchase of shares (14,926) Acceleration of amortization of beneficial conversion feature of Series E upon initial public offering (49,346) Deemed dividend to preferred shareholders upon IPO (32,807) Net loss attributable to Xunlei Limited’s common shareholders (105,366) (13,167) (24,111) Numerator of basic net loss per share from continuing operations (86,959) (1,071) (23,904) Numerator of basic net loss per share from discontinued operations (18,407) (12,096) (207) Numerator for diluted loss per share from continuing operations (86,959) (1,071) (23,904) Numerator for diluted loss per share from discontinued operations (18,407) (12,096) (207) Denominator: Denominator for basic net loss per share-weighted average shares outstanding 194,711,227 335,987,595 334,155,668 Denominator for diluted net loss per share 194,711,227 335,987,595 334,155,668 Basic net loss per share from continuing operations (0.45) (0.00) (0.07) Basic net loss per share from discontinued operations (0.09) (0.04) (0.00) Diluted net loss per share from continuing operations (0.45) (0.00) (0.07) Diluted net loss per share from discontinued operations (0.09) (0.04) (0.00) The following common shares equivalents were excluded from the computation of diluted net income per common share for the periods presented because including them would have had an anti-dilutive effect: Years ended December 31, 2014 2015 2016 Preferred sharesweighted average 93,213,683 Share options and restricted shares weighted average 9,041,434 1,673,342 2,902,950 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related party transactions [Abstract] | |
Related party transactions | 22. Related party transactions The table below sets forth the related parties and their relationships with the Group: Related Party Relationship with the Group Zhuhai Qianyou Hao Cheng Chuan Wang Shenglong Zou Beijing Millet Technology Co., Ltd. (“Beijing Xiaomi”) Leading Advice Holdings Limited Vantage Point Global Limited Aiden & Jasmine Limited Kingsoft Corporation Limited King Venture Holdings Limited Xiaomi Venture Limited Morningside Technology Investments Limited Shenzhen Xunlei Big Data Information Service Co., Ltd. Shenzhen Xunlei Finance Information Service Co., Ltd. Subsidiary of the Group’s equity investment Shenzhen Crystal Technology Co., Ltd. Millet Communication Technology Co., Ltd. (“Millet Communication Technology”) Beijing Millet Electronic Products Co., Ltd. Beijing Millet Digital Technology Co., Ltd. Millet Technology Co., Ltd. Beijing Millet Payment Technology Co., Ltd. Company owned by a shareholder of the Group During the years ended December 31, 2014, 2015 and 2016, significant related party transactions were as follows: Years ended December 31, (In thousands) 2014 2015 2016 Game sharing costs paid and payable to Zhuhai Qianyou (note a) 402 127 154 Repayment from Hao Cheng 85 Bandwidth revenue from Millet Technology Co., Ltd. 316 Technology service revenue from Beijing Xiaomi 303 344 1,010 Bandwidth revenue from Millet Communication Technology Co., Ltd. (note b) 2,483 Marketing expense to Millet Communication Technology Co., Ltd. 20 Advertisement revenue from Beijing Xiaomi 871 Advance to Shenglong Zou 10 Advance to Chuan Wang 7 Accrued to Aiden & Jasmine Limited (note c) 1,125 54 54 Accrued to Vantage Point Global Limited (note c) 3,012 146 146 note a The Company obtained an exclusive game operation right from Zhuhai Qianyou, which is specialized in developing online games. According to the agreement, the Company will share revenues derived by the licensed games with Zhuhai Qianyou. note b In 2016, Shenzhen Onething Technology entered into a contract with Millet Communication Technology for the provision of bandwidth to Millet Communication Technology at a mutually agreed price. note c In 2014, the Group repurchased 3,860,733 10,879 10,334,679 29,121 5 1,125 37 3,012 100 54 146 As of December 31, 2014, 2015 and 2016, the amounts due to / from related parties were as follows: December 31, December 31, December 31, (In thousands) 2014 2015 2016 Amounts due to related parties Accounts payable to Zhuhai Qianyou 84 38 45 Long-term payable to Aiden & Jasmine Limited 1,125 1,179 1,233 Long-term payable to Vantage Point Global Limited 3,012 3,158 3,304 December 31, December 31, December 31, (In thousands) 2014 2015 2016 Amounts due from related parties Accounts receivable from Beijing Xiaomi 5 30 95 Accounts receivable from Millet Communication Technology Co., Ltd. 939 Accounts receivable from Beijing Millet Payment Technologies Limited 38 Accounts receivable from Shenzhen Xunlei Finance Information Service Co., Ltd. 5 Other receivable from Shenzhen Crystal Technology Co., Ltd. 6 Other receivable from Shenglong Zou 10 9 9 Other receivable from Chuan Wang 7 6 5 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2016 | |
Taxation [Abstract] | |
Taxation | 23. 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) PRC Enterprise Income Tax (“EIT”) The PRC enterprise income tax is calculated based on the taxable income determined under the PRC laws and accounting standards. On March 16, 2007, the PRC National People’s Congress promulgated the EIT Law, adopting a unified EIT rate of 25 18 20 22 24 25 On April 14, 2008, relevant PRC governmental regulatory authorities released further qualification criteria, application procedures and assessment processes for meeting the High and New Technology Enterprise, or HNTE status under the EIT Law which would entitle qualified and approved entities to a favorable statutory tax rate of 15 In April 2009, the State Administration for Taxation, or SAT, issued Circular Guoshuihan 2009 No. 203 stipulating that entities qualified for the HNTE status should apply with the relevant tax authorities to enjoy the reduced EIT rate of 15 In February 2011, Shenzhen Xunlei obtained the HNTE certificate and has renewed the HNTE certificate in September 2014 for the years ended December 31, 2015, 2016 and 2017, which enables Shenzhen Xunlei to enjoy the preferential tax rate of 15 According to a policy of the PRC State tax bureau, enterprises that engage in research and development activities are entitled to claim 150 Shenzhen Xunlei has been claiming this Super Deduction in ascertaining its tax assessable profits and brought forward tax losses from 2009 onwards. In addition, following the approval by the relevant tax authority in July 2010, Shenzhen Xunlei was recognized as an enterprise engaged in software development activities. Accordingly, it is entitled to a tax holiday of 2-year Exemption and 3-year 50% Reduction from 2010 onwards. 10 10 15 15 Xunlei Computer was established in 2011 in the Shenzhen Special Economic Zone, the PRC. As approved by the relevant tax authority in June 2013, Xunlei Computer was further exempted from EIT for two years commencing from its first year of profitable operation after offsetting prior years’ tax losses, followed by a 50% reduction for the next three years (“2-year Exemption and 3-year 50% Reduction”). The first year of profit operation of Xunlei Computer is 2013. Shenzhen Onething was established in 2013 in the Shenzhen Special Economic Zone, the PRC. In 2015, Shenzhen Onething filed for the Qianhai Enterprise, which enables Shenzhen Onething to enjoy the preferential tax rate of 15 15 The Group’s other subsidiaries and VIE’s subsidiaries, which were established after January 1, 2008, are subject to EIT at a rate of 25%. 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 or 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, 2016, both Giganology Shenzhen and Xunlei Computer did not declare any dividend to the parent company and have determined that it has 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 as of December 31, 2015 and 2016. The undistributed earnings from the Group’s PRC entities as of December 31, 2015 and 2016 amounted to USD 34,313 19,883 3,431 1,988 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 Enterprise Income Tax at the rate of 25 The current and deferred portions of income tax expense included in the consolidated statements of operations are as follows: Continuing operations Years ended December 31, (In thousands) 2014 2015 2016 Current income tax expenses 397 289 71 Deferred income tax benefits 66 (1,175) (1,335) Taxation for the year 463 (886) (1,264) The aggregate amount and per share effect of the tax holiday are as follows: Years ended December 31, 2014 2015 2016 Aggregate dollar effect (in thousands) 2,784 (830) (1,430) Per share effectbasic 0.01 0.00 0.00 Per share effectdiluted 0.01 0.00 0.00 The reconciliation of total tax expense/(benefit) computed by applying the respective statutory income tax rates to pre-tax income/(loss) is as follows: Continuing operations Years ended December 31, (In thousands) 2014 2015 2016 Income tax expense/(benefit) at PRC statutory rate (based on statutory tax rate applicable to enterprises in Shenzhen, China) 7,211 (438) (6,310) Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC (838) 2,400 2,145 Non-deductible expenses 714 14 12 Effect of Super Deduction available to Shenzhen Xunlei (1,365) - (901) Effect of tax holiday (4,613) (369) 1,430 Change in valuation allowance of deferred tax assets 291 4,750 6,396 Effect on deferred tax assets due to change in tax rates (103) (8) - Outside basis difference arising from VIE and its subsidiaries in the PRC 478 (2,174) (5,743) Expiration of tax loss 51 290 90 Others (1,363) (5,351) 1,617 Income tax expense/ (benefit) 463 (886) (1,264) The tax effects of temporary differences that give rise to the deferred tax asset and liability balances at December 31, 2015 and 2016 are as follows: December 31, December 31, (In thousands) 2015 2016 Deferred tax assets, current portion: Net operating loss carried forward (Note a) 417 1,276 Amortization of intangible assets arising from intragroup transactions (Note b) 95 51 Impairment of online game licenses 23 Impairment of long-term equity investment 115 Allowance for advance to suppliers 120 Valuation allowance (81) (106) Deferred tax assets, current portion, net 689 1,221 Deferred tax assets, non-current portion: Net operating loss carried forward(Note a) 13,016 12,093 Amortization of intangible assets arising from intragroup transactions (Note b) 54 Impairment of long-term equity investment 348 Allowance for advance to suppliers 576 Valuation allowance (4,477) (9,745) Deferred tax assets, non-current portion, net 8,593 3,272 Deferred tax liabilities, non-current portion: Outside basis difference (Note c) (6,378) (635) Note a: As of December 31, 2016, the Group had tax loss carryforwards of USD 17,363 (In thousands) 2017 775 2018 5,795 2019 3,414 2020 559 2021 and thereafter 6,820 17,363 Note b: Before 2008, Giganology Shenzhen sold several self-developed software at a market valuation of approximately RMB 42 Note c: The deferred tax liabilities arising from the aggregate retained earnings and reserves of the VIE and its subsidiaries that are expected to be recovered by Giganology Shenzhen and other affiliates of the Group in the future periods, amounted to USD 25,512 2,541 Movement of valuation allowance is as follows Years ended December 31, (In thousands) 2014 2015 2016 Beginning balance (291) (4,559) Additions (291) (4,268) (5,292) Write-off Ending balance (291) (4,559) (9,851) In 2014, valuation allowance was provided for net operating loss carryforwards because it was more likely than not that such deferred tax assets will not be realized based on the Group's estimate of Onething’s future taxable income. In 2015, valuation allowance was provided for net operating loss carry forward of Xunlei Beijing, Xunlei Games and Onething because it was more likely than not that such deferred tax assets will not be realized based on the Group's estimate of their future taxable income, and the fact that the three entities were not included in the tax strategy plan. In 2016, valuation allowance was provided for net operating loss carryforwards of Xunlei Beijing, Xunlei Games, Onething, Beijing Xunjing and Crystal Interactive because it was more likely than not that such deferred tax assets will not be realized based on the Group's estimate of their future taxable income, and the fact that the five entities were not included in the tax strategy plan. As of December 31, 2016, the tax returns of the Group’s subsidiaries, VIE and its subsidiaries since their respective dates of incorporation are still open to examination. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair value measurements [Abstract] | |
Fair value measurements | 24. Fair value measurements Effective January 1, 2008, the Group adopted ASC 820-10, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value and expands financial statement disclosures about fair value measurements. Although adoption did not impact the Group’s consolidated financial statements, ASC 820-10 requires additional disclosures to be provided on fair value measurements. ASC 820-10 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level1Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2Include other inputs that are directly or indirectly observable in the marketplace or based on quoted price in markets that are not active Level 3Unobservable 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, 2015 and 2016. Fair value measurements as at December 31, 2015 Quoted prices Significant in active market other Significant for identical observable observable (In thousands) Total (Level 1) (Level 2) (Level 3) Cash equivalent: time deposits with original maturities less than three months 314,357 314,357 Short term investments: Investments in financial instruments 70,328 70,328 384,685 384,685 Fair value measurements as at December 31, 2016 Quoted prices Significant in active market other Significant for identical observable observable (In thousands) Total (Level 1) (Level 2) (Level 3) Cash equivalent: time deposits with original maturities less than three months 115,944 115,944 Short term investments: Investments in financial instruments 143,131 143,131 259,075 259,075 |
Other income, net
Other income, net | 12 Months Ended |
Dec. 31, 2016 | |
Other income, net [Abstract] | |
Other income, net | 25. Other income, net Continuing Operations Years ended December 31, (In thousands) 2014 2015 2016 Subsidy income 2,236 1,902 2,358 Fair value changes of warrants liabilities 8,054 Investment income from short-term investments 3,471 3,666 4,054 Dilution gains arising from deemed disposal of investment (note 11) 449 702 689 Investment income-disposal of long-term investment (note 11) 626 Investment loss-impairment of long-term investment (note 11) (802) (1,654) Exchange losses (176) (2,771) (354) Settlement income 489 755 326 Others (557) 175 458 13,966 3,627 6,503 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and contingencies [Abstract] | |
Commitments and contingencies | 26. Commitments and contingencies Rental commitments The Group leases facilities in the PRC under non-cancellable operating leases expiring on different dates. Payments under operating leases are expensed on a straight-line basis over the periods of the respective leases, including any free rental periods. Total office rental expenses under all operating leases were USD 3,068 2,751 2,382 Future minimum payments under non-cancellable operating leases of office rental consist of the following as of December 31, 2016: (In thousands) 2017 2,969 2018 2,573 2019 1,009 6,551 Bandwidth lease commitments The Group leases bandwidth in the PRC under non-cancellable operating leases expiring on different dates. Payments under bandwidth leases are expensed on a straight-line basis over the duration of the respective lease periods, including any lease free periods. Total bandwidth leasing costs for continuing operations under all operating leases were USD 33,545 37,218 55,135 6,828 2,983 Future minimum payments under non-cancellable bandwidth leases consist of the following as of December 31, 2016: (In thousands) 2017 18,651 2018 322 18,973 Capital commitments As at December 31, 2016, the Group has unconditional purchase obligations for switchboard, servers, office software and construction in process that had not been recognized in the amount of USD 7,527 Litigation 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 USD 1,073 3,307 1,669 Up to April 20, 2017, which is the date when the consolidated financial statements were issued, the Group had 61 89.27 12.87 98 million 56 2,062 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 counsel. 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 61 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 a recorded accrual, with respect to loss contingencies for asserted legal and other claims. However, the outcome of litigation is inherently uncertain. Therefore, although management considers the likelihood of such an outcome to be remote, 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. In May 2014, the Group entered into a content protection agreement with the Motion Picture Association of America, Inc., or MPAA, and six major U.S. entertainment content providers, which are the members of MPAA. In January 2015, a number of MPAA member studios filed copyright infringement lawsuits against the Group with an aggregate amount of claimed damages of RMB 8.40 1.37 |
Certain risks and concentration
Certain risks and concentration | 12 Months Ended |
Dec. 31, 2016 | |
Certain risks and concentration [Abstract] | |
Certain risks and concentration | 27. Certain risks and concentration PRC regulations Current PRC laws and regulations place certain restrictions on foreign ownership of companies that engage in internet businesses, including the provision of online video and online advertising services. Specifically, foreign ownership in an internet content provider or other value-added telecommunication service providers may not exceed 50 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 the VIE and its subsidiaries or the right to receive their economic benefits, the Group would no longer be able to consolidate the VIE. 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 of December 31, 2016, the aggregate retained earnings and distributable reserves of VIE and VIE’s subsidiaries amounted to approximately USD 2,541 25,512 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 the VIE and its subsidiaries are included in “property and equipment, net” and “intangible assets, net” in the consolidated balance sheet 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 didn’t meet the recognition criteria set in ASC 350-30-25. The licenses stated above primarily consist of licenses that grant the VIE 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. As of December 31, 2016, Shenzhen Xunlei and its subsidiaries held patents granted in the PRC and in the United States. Presently, patent applications are being examined by the State Intellectual Property Office of the PRC and also patent application is being reviewed by the United States Patent and Trademark Office. As of December 31, 2016, Shenzhen Xunlei and its subsidiaries have applied to register trademarks, of which the Company has received registered trademarks in different applicable trademark categories including trademark registered with the United States Patent and Trademark Office and trademark registered with World Intellectual Property Organization. The following consolidated financial information of the Group’s VIE and its subsidiaries from continuing operations was included in the accompanying consolidated financial statements , before elimination of balances with the Company and its subsidiaries, As of December 31, (In thousands) 2015 2016 Current assets: Cash and cash equivalents 32,461 40,393 Short-term investments 69,522 28,749 Accounts receivable, net 11,573 14,824 Due from related parties 30 1,083 Deferred tax assets 351 971 Inventories 480 374 Prepayments and other current assets 31,659 15,123 Total current assets 146,076 101,517 Non-current assets: Equity method investments 9,884 25,479 Deferred tax assets 6,791 1,849 Property and equipment, net 17,991 20,059 Construction in progress 14 574 Intangible assets, net 14,297 11,083 Goodwill 21,896 20,497 Other long-term prepayments 7,430 1,187 Total non-current assets 78,303 80,728 Total assets 224,379 182,245 Current liabilities: Accounts payable (note a) 33,262 44,162 Due to a related party 38 45 Deferred revenue and income, current portion 24,902 24,260 Income tax payable 2,407 2,253 Accrued liabilities and other payables (note b) 131,312 104,114 Total current liabilities 191,921 174,834 Non-current liabilities: Deferred revenue and income, non-current portion 4,751 3,539 Total non-current liabilities 4,751 3,539 Total liabilities 196,672 178,373 Note a. The balance included inter-companies balances with the Company and its subsidiaries of USD 11,626 9,360 Note b. The balance included inter-companies balances with the Company and its subsidiaries of USD 105,872 91,477 Years ended December 31, (In thousands) 2014 2015 2016 Net revenue from continuing operations 132,515 129,198 156,192 Net income / (loss) attributable to Xunlei Limited 12,677 (6,408) (32,402) Years ended December 31, (In thousands) 2014 2015 2016 Net cash provided by operating activities 70,822 41,723 3,565 Net cash (used in)/provided by investing activities (78,335) (51,721) 1,859 Net cash provided by financing activities 856 1,055 2,508 (6,657) (8,943) 7,932 Foreign exchange risk The Group’s financing activities are denominated mainly in the USD. 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 the RMB into other currencies. The revenues and expenses of the Company’s subsidiaries, consolidated VIE and its subsidiaries are generally denominated in the RMB and their assets and liabilities are denominated in the RMB. Concentration of customer risk The top 10 16 26 18 Credit risk As of December 31, 2015 and 2016, substantially all of the Group’s cash and cash equivalents were held at reputable financial institutions in the jurisdictions where the Group and its 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. Prior to entering into sales agreements, the Group performs credit assessments of its customers to assess the credit history of its customers. Further, the Group has not experienced any significant bad debts with respect to its accounts receivable. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent events [Abstract] | |
Subsequent events | 28. Subsequent events Restricted shares grant In March 2017, 1,130,000 under the 2010 share incentive plan. Repurchase of shares In the first quarter of 2017, 465,350 Investments In December 2016, the Group agreed to pay USD 3.5 24 80 |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2016 | |
Restricted net assets [Abstract] | |
Restricted net assets | 29. Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the Company’s subsidiaries, 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, 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(dd)) prior to payment of any dividends. As a result of these and other restrictions under PRC laws and regulations, the Company’s subsidiaries, 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 USD 117,728 124,026 |
Kingsoft acquisition in 2014
Kingsoft acquisition in 2014 | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 30. Kingsoft acquisition in 2014 In September 2014, the Group acquired assets relating to a personal cloud storage business from Kingsoft Corporation Limited, for cash consideration of USD 33 0.3 (In thousands) Property and equipment 255 Intangible assets Trademarks 6,120 Technology (including right-to-use) 2,381 Non-compete agreement 1,490 Goodwill 23,057 33,303 The business combination was completed on September 5, 2014 and the Company has finalised the purchase price allocation. The excess of purchase price over tangible assets and identifiable intangible assets acquired was recorded as goodwill. There was no liability assumed arising from the acquisition. In connection with this acquisition, the Group is obligated to issue share options to replace the unvested awards owned by the employees who are transferred to the Group, the portion of the fair-value-based measure of the replacement award attribute to pre-combination service of USD 303 44 |
Additional information_ condens
Additional information: condensed financial statements of the Company | 12 Months Ended |
Dec. 31, 2016 | |
Additional information: condensed financial statements of the Company [Abstract] | |
Additional information: condensed financial statements of the Company | 31. Additional information: condensed financial statements of the Company Regulation S-X require condensed financial information as to financial position, statement 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, 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 “Long-term investments”. 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, 2016. December 31, December 31, (In thousands) 2015 2016 Assets Current assets: Cash and cash equivalents 292,175 273,160 Due from subsidiaries and consolidated VIEs 92,864 101,130 Prepayments and other current assets 1,090 348 Total current assets 386,129 374,638 Non-current assets: Property, equipment and software, net 3 Investments in subsidiaries and consolidated VIEs 68,481 43,447 Total assets 454,610 418,088 Liabilities Current liabilities: Accounts payable 55 55 Due to subsidiaries and consolidated VIEs 388 1,862 Deferred revenue and income, current portion 211 272 Accrued liabilities and other payables 1,393 1,695 Total current liabilities 2,047 3,884 Non-current liabilities: Deferred revenue and income, non-current 632 543 Due to related parties, non-current portion 4,337 4,537 Other long-term payable 845 886 Total liabilities 7,861 9,850 Commitments and contingencies Shareholders’ equity Common shares 85 83 Treasury shares 29,558,094 shares as at December 31, 2015 and 38,332,209 shares as at December 31, 2016 7 9 Other shareholders’ equity 446,657 408,146 Total Xunlei Limited’s shareholders’ equity 446,749 408,238 Total liabilities and shareholders’ equity 454,610 418,088 Years ended December 31, (In thousands) 2014 2015 2016 Revenues Cost of revenues (1,673) (131) Gross loss (1,673) (131) Operating expenses Research and development expenses Sales and marketing expenses (10) General and administrative expenses (996) (1,314) (1,193) Total operating expenses (996) (1,314) (1,203) Operating loss (2,669) (1,445) (1,203) Interest income 6,171 5,318 1,521 Interest expense (163) (239) (239) Other income, net 7,602 (3,261) 715 Loss from subsidiaries and consolidated VIEs (129) (13,540) (24,905) Income / (loss) before income tax 10,812 (13,167) (24,111) Income tax Net income / (loss) 10,812 (13,167) (24,111) Net income attributable to the non-controlling interest Net income / (loss) attributable to Xunlei Limited’s common shareholders 10,812 (13,167) (24,111) Years ended December 31, (In thousands) 2014 2015 2016 Cash flows from operating activities Net cash used in operating activities (41,485) (26,069) (20,312) Cash flows from investing activities Net cash (used in) / generated from investing activities (10,333) 3,812 15,557 Cash flows from financing activities Net cash generated from / (used in) financing activities 332,412 4,975 (14,260) Net increase / (decrease) in cash and cash equivalents 280,594 (17,282) (19,015) Cash and cash equivalents at beginning of year 28,863 309,457 292,175 Effect of exchange rates on cash and cash equivalents Cash and cash equivalents at end of year 309,457 292,175 273,160 |
Summary of significant accoun38
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of significant accounting policies [Abstract] | |
Basis of presentation and use of estimates | (a) Basis of presentation and use of estimates The accompanying consolidated financial statements 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 Restructuring was accounted for at historical costs. The assets and liabilities of Shenzhen Xunlei are consolidated in the Company’s financial statements at carryover basis. 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 the useful lives of property and equipment, allowance for doubtful accounts, valuation allowance of deferred tax assets, sales rebate to advertising agencies, amortization period of online game revenue, amortization of content copyrights, fair value of content copyrights exchange, impairment assessment of goodwill and impairment assessment of long-lived assets. In addition, the Group uses assumptions in a valuation model to estimate the fair value of share options granted, warrants issued and underlying common shares. 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 significant transactions and balances among the Company, its subsidiaries, VIE and its 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 25 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/period between non-controlling shareholders and the shareholders of the Company. |
Discontinued operations | (c) Discontinued operations When disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity’s financial results and operations. Examples include a disposal of a major geographical location, line of business, or other significant part of the entity, or disposal of a major equity method investment. In the consolidated income statement, result from discontinued operations is reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. Cash flows for discontinuing operations are presented separately in note 3. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. Non-current assets or disposal groups are classified as assets held for sale when the carrying amount is to be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset or disposal group must be available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such assets or disposal groups and the sale must be highly probable. Non-current assets classified as held for sale and disposal groups are measured at the lower of their carrying or fair value less costs to sell. |
Foreign currency translation | (d) Foreign currency translation The Company’s reporting and functional currency is the United States Dollar (‘‘USD’’). Xunlei BVI and Xunlei HK’s functional currency is the USD. The functional currency of other subsidiaries, VIE and its subsidiaries located in the PRC is the Renminbi (‘‘RMB’’), which is their respective local currency. 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 (loss) 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 released by Chinese State Administration of Foreign Exchange. |
Cash and cash equivalents | (e) Cash and cash equivalents 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. |
Short-term investments | (f) Short-term investments Short-term investments include deposits placed with banks with original maturities of more than three months but less than 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 |
Fair value of financial instruments | (g) Fair value of financial instruments The Group’s financial instruments consist principally of cash and cash equivalents, short-term investments, accounts receivable, other receivables, amounts due from/(to) related parties, accounts payable, other payables and warrants liabilities. The carrying value of these balances, with the exception of short-term investments (see note 2 (f)), approximates their fair value due to the current and short term nature of these balances. |
Accounts receivable, net | (h) Accounts receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Group evaluates the creditworthiness of each customer at the time when services are rendered and continuously monitor the recoverability of the accounts receivable. The Group uses specific identification method in providing for bad debts when facts and circumstances indicate that collection is doubtful and a loss is probable and estimable. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances might be required. The allowance for doubtful accounts is based on the best facts available and is re-evaluated and adjusted on a regular basis as additional information is received. Some of the factors that the Group considers in determining whether a bad debt allowance is recorded on an individual customer are: 1) the customer's past payment history and whether it fails to comply with its payment schedule; 2) whether the customer is in financial difficulty due to economic or legal factors; 3) a significant dispute with the customer has occurred; 4) the objective evidence which indicates non-collectability of the accounts receivable. The allowances provided for Accounts Receivable from continuing operations as of December 31, 2 0 0 0.1 0.1 If the Group determines that an allowance is needed for a customer, the Group will discontinue business with them unless they start to resume payment. The accounts receivable is written-off when the Group ceases pursuing collection. Any changes in the estimates may cause the Group's operating results to fluctuate. |
Inventories | (i) 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 inventory in the normal course of business after allowing for the costs of realization. An allowance is recorded for excess inventory and obsolescence based on the lower of cost or net realizable value. |
Long-term investments | (j) Long-term investments The Group holds investments in privately held companies. The Group accounts for these investments over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method of accounting. For investments in an investee over which the Group does not have significant influence and of which the investee has no readily determinable fair value, the Group carries the investment using the cost method. Under the cost method, the investment is measured initially at cost. The investment carried at cost should recognize income when dividends are received from the distribution of the investee’s earnings. The Group assesses its long-term investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company-specific information. The fair value determination, particularly for investments in privately-held companies, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and determination of whether any identified impairment is other-than-temporary. During the year ended December 31, 2014, the Group did not impair any of its long-term investments. In 2015 and 2016, the Group recognised an impairment of USD 0.8 1.66 |
Property and equipment | (k) 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. Estimated useful lives Residual rate Servers and network equipment 5 5 % Computer equipment 5 5 % Furniture, fittings and office equipment 5 5 % Motor vehicles 5 5 % Leasehold improvements shorter of lease term or 3 Repair and maintenance costs are expensed as incurred. Expenditures that substantially increase an asset’s useful life are capitalized. Upon sale or disposition, 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 operations. The cost and related accumulated depreciation are removed from the financial statements. |
Goodwill | (l) Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. |
Impairment of goodwill | (m) Impairment of goodwill Impairment of goodwill assessment is performed on at least an annual basis on December 31 or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. According to ASC 350-20-35, an entity may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, an entity may proceed directly to perform a two-step goodwill impairment test. The first step compares the fair values of a reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The judgment in estimating the fair value of a reporting unit includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of the fair value of a reporting unit. The Group selected directly to perform a two-step goodwill impairment test. For the first step, the impairment test was performed using a discounted cash flow analysis to assess the fair value of the Group, as a single reporting unit. The discounted cash flow analysis, that requires certain assumptions and estimates regarding economics and future profitability, use cash flow projections for the purposes of impairment reviews covering a five-year period. Cash flows beyond the five-year period are extrapolated using an estimated annual growth of not more than 2 18.2 the second step was not required. No goodwill impairment losses were recognized for the year ended December 31, 2016 based on the impairment test performed by the Group. |
Intangible assets | (n) Intangible assets I ) Content copyrights Licensed copyrights of movies, TV series and variety shows (collectively “Content Copyrights”) are capitalized when 1) the cost of the content is known 2) the content has been accepted by the Group in accordance with the conditions of the license agreement and 3) the content is available for its first showing on the Group’s website. Content Copyrights are carried at cost less accumulated amortization and impairment loss, if any. The Group has two types of Content Copyrights, 1) non- exclusive Content Copyrights and 2) exclusive Content Copyrights. With non-exclusive Content Copyrights, the Group has the right to broadcast the contents on its own websites. While, with exclusive Content Copyrights, besides the broadcasting right, the Group also has the right to sub-license these exclusive Content Copyrights to third parties. For non-exclusive Content Copyrights, which only generates primarily indirect cash flows, the amortization method is based on the analysis of historical viewership consumption patterns. The Group determines consumption patterns by tracking the number of viewers watching the content throughout its life cycle. This information is then aggregated to come up with a viewership trend that can support an appropriate method to amortize non-exclusive Content Copyrights. The Group generally categorizes its contents in the Xunlei Kankan website into three broad categories, namely movies; TV series; and variety shows and others, which include reality shows, talent shows, talk shows and entertainment news. The Group adopted the method to amortize the non-exclusive Content Copyrights over the shorter of estimated useful lives or their respective licensing periods using an accelerated method based on consumption patterns. Estimates of the consumption patterns for these non-exclusive Content Copyrights are reviewed periodically and revised, if necessary. Exclusive Content Copyrights generate both direct and indirect cash flows. For the portion of exclusive Content Copyrights that generate indirect cash flows, the Group uses the amortization method based on the analysis of historical viewership consumption patterns, which is the same with that of non-exclusive Content Copyright as discussed above. For the portion of exclusive Content Copyrights that generates direct cash flows, the Group amortizes the purchase costs using an individual-film-forecast-computation method, which amortizes such costs based on the ratio of sub-licensing revenue and barter transaction gain (details described in Note 2(r)) generated for the current period to the total ultimate direct revenue estimated to be generated by the exclusive Content Copyrights for their whole license period or estimated useful lives. The Group revisits the forecast at each quarter and year end and makes adjustment, when appropriate. Content copyrights were disposed of in July 2015 as a result of the divestiture of the Company’s online video streaming platform (see note 3 for details). II) Other intangible assets Other intangible assets, which include computer software, internal use software development costs, online game licenses, domain names, land use right, trademarks, technology (including right-to-use) and non-compete agreement, are carried at cost less accumulated amortization and impairment loss, if any. Exclusive game licenses are amortized using the straight-line method over their licensing period of three years. Computer software, internal use software and domain name are amortized using the straight-line method over their estimated useful life of five years. Land use right is amortized using the straight-line method over their estimated useful life of thirty years. |
Impairment of long-lived assets | (o) Impairment of long-lived assets The Group evaluates the program usefulness of non-exclusive Content Copyrights and exclusive Content Copyrights pursuant to the guidance in ASC 920-350 IntangibleGoodwill and Other: Recognition For non-exclusive Content Copyrights which only generate indirect cash flows, the Group evaluates the net realizable value of the content library by its three content categories (i.e. movies, TV series, variety shows and others). If management’s expectations of programming usefulness, which represents the expected revenues and related net cash flows derived from the contents, are revised downward, they assess whether it is necessary to write down the unamortized costs to estimated net realizable value. The Group evaluates programming usefulness by category on an annual basis by comparing the unamortized cost to the estimated net realizable value. On a quarterly basis, the Group also monitors whether there are indicators of changes in their expected usage of program materials. The Group estimates net realizable value using expected net cash flows of the content based on expected future levels of advertising revenues. Such estimates consider historical amounts and anticipated levels of demand. Expected future revenues are reduced by estimated direct costs to provide access to the website and generate the related revenue, including bandwidth costs and server costs. For purposes of estimating revenues for each category of content, the Group considers both expected future advertising revenues sold based on number of impressions delivered as well as advertising sold based on the period of time that it is displayed. For exclusive Content Copyrights that generate both direct and indirect cash flows, the Group evaluates the net realizable value of the Group’s licensed copyright on a content by content basis. Impairment is assessed on an annual basis by comparing the unamortized cost to the Group’s estimated net realizable value. The Group estimates the net realizable value using expected net cash flows based on expected future levels of advertising and content sub-licensing revenues. For expected future levels of advertising revenue, the Group uses the same estimation methodology used for the impairment assessment of non-exclusive Content Copyrights. For both exclusive and non-exclusive Content Copyrights, there were no impairments for the years ended December 31, 2014, 2015 and 2016 because a significant portion of the contents was related to movies and TV series, of which approximately 70 90 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. The impairment of online game license were USD 808 770 721 |
Commitments and contingencies | (p) 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 regards 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 | (q) Operating leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating lease are charged to the statements of comprehensive income on a straight-line basis over the period of the lease. |
Revenue recognition | (r) Revenue recognition The Group generates revenues from various streams. The Group operates a prepaid virtual items system, under which, prepaid virtual items at fixed face value are sold to third parties. Virtual items purchased can be used to subscribe for membership or purchase of virtual items in online games, as discussed below. Virtual items sold but not yet consumed by the users are recorded as “Receipts in advance from customers” and upon consumption, they are recognized as membership subscription and online game revenue according to the respective prescribed revenue recognition policies addressed below. 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 except in the cases when they elect to pay via their mobile operators. The membership fee is collected when the subscribers pay for the monthly phone bills. 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 deferred revenue and revenue is recognized ratably 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 record 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, fixed phone line and mobile payment channels (‘‘Payment Handling Fees’’) are recorded as the cost of revenues in the same period as the revenue for the membership fee is recognized. II) Advertising revenues Advertising revenues are derived principally from arrangements where the customers pay to place their advertisements on the Group’s platform in different formats over a particular period of time. Such formats generally includes but not limited to videos, banners, links, logos and buttons. Advertisements on the Group’s platform are generally charged on the basis of duration, and advertising contracts are signed to establish the fixed price and the advertising services to be provided. The Group enters into advertising contracts with third party advertising agencies that represents advertisers, as well as directly with advertisers. A typical contract term would range from a few days to 3 months. Both third party advertising agencies and direct advertisers are generally billed at the end of the display period and payments are due usually within 3 months. Where the Group’s customers purchase multiple advertising spaces with different display periods in the same contract, the Group allocates the total consideration to the various advertising elements based on their relative fair values and recognizes revenue for the different elements over their respective display periods. The Group determines the fair values of different advertising elements based on the prices charged when these elements were sold on a standalone basis. The Group recognizes revenue on the elements delivered and defers the recognition of revenue for the fair value of the undelivered elements until the remaining obligations have been satisfied. Where all of the elements within an arrangement are delivered uniformly over the agreement period, the revenue is recognized on a straight line basis over the contract period. Transactions with third party advertising agencies For contracts entered into with third party advertising agencies, the third party advertising agencies will in turn sell the advertising services to advertisers. Revenue is recognized ratably over the contract period of display based on the following criteria: There is persuasive evidence that an arrangement existsthe Group will enter into framework and execution agreements with the advertising agencies, specifying price, advertising content, format and timing Price is fixed and determinableprices charged to the advertising agencies are specified in the agreements, including relevant discount and rebate rates Services are renderedthe Group recognizes revenue ratably over the contract period of display Collectability is reasonably assuredthe Group assesses credit history of each advertising agency before entering into any framework and execution agreements. If the collectability from the agencies is assessed as not reasonably assured, the Group recognizes revenue only when the cash is received and all the other revenue criteria are met. The Group provides sales incentives in the forms of discounts and rebates to third party advertising agencies based on purchase volume. As the advertising agencies are viewed as the customers in these transactions, revenue is recognized based on the price charged to the agencies, net of sales incentives provided to the agencies. Sales incentives are estimated and recorded at the time of revenue recognition based on the contracted rebate rates and estimated sales volume based on historical experience. Transactions with third party advertising platforms Xunlei began to cooperate with third party advertising platforms such as Guangdiantong and Baidu since the fourth quarter in 2015. In this business model, advertisers put their content on third party advertising platforms and platforms will dispatch the advertising content to Xunlei’s platforms by certain analysis systematically. As the third party advertising platforms are viewed as the customers in these transactions, revenue is recognized monthly based on the data publicized on third party platforms and the price charged to these advertising platforms. Transactions with advertisers The Group also enters into advertisement contracts directly with advertisers. Under these contracts, similar to transactions with third party advertising agencies, the Group recognizes revenue ratably over the contract period of display. The terms and conditions, including price, are fixed according to the contract between the Group and the advertisers. The Group also performs credit assessment of all advertisers prior to entering into contracts. Revenue is recognized based on the amount charged to the advertisers, net of discounts. The Group has estimated and recorded sales rebates provided to the agencies and advertisers of USD 5,005 1,179 15 III) Other internet value-added services i) Online game revenues Users play games through the Group’s platform free of charge and are charged for purchases of virtual items including consumable and perpetual items, which can be utilized in the online games to enhance their game-playing experience. Consumable items represent virtual items that can be consumed by a specific user within a specified period of time. Perpetual items represent virtual items that are accessible to the users’ account over the life of the online game. Pursuant to contracts signed between the Group and game developers, revenue from the sale of virtual items are shared based on a pre-agreed ratio for each game. The Group enters into both non-exclusive and exclusive licensing contracts with game developers. Non-exclusive game licensed contracts The games under non-exclusive licensed contracts are maintained, hosted and updated by the game developers. The Group mainly provides access to the platform and limited after-sale services to the game players. The determination of whether to record these revenues using the gross or net method is based on an assessment of various factors; the primary factors are whether the Group acts as the principal in offering services to the game players or as agent in the transaction, and the specific requirements of each contract. The Group determined that for non-exclusive game licensed arrangements, the third party game developers are the principal given that the game developers design and develop the game services offered, have reasonable latitude to establish prices of game virtual items, and are responsible for maintaining and upgrading the game content and virtual items. Accordingly, the Group records online game revenue, net of the portion remitted to the game developers. Given that online games are managed and administered by the game developers for non-exclusive licensed games, the Group does not have access to the data on the consumption details and the types of virtual items purchased by the game players. The Group has adopted a policy to recognize revenues relating to both consumable and perpetual items over the shorter of 1) estimated lives of the games and 2) the estimated lives of the user relationship with the Group, which were approximately one to ten months for the periods presented. Adjustments arising from the changes of estimated lives of virtual items are applied prospectively as such changes are resulted from new information indicating a change in the game player behavioral patterns. Exclusive licensing game contracts For exclusive licensing contracts with game developers, the games are maintained and hosted by the Group. Accordingly, the Group is determined to be the principal, the Group records online game revenue on a gross basis, with the amount remitted to the game developers reported as cost of revenue. Payment Handling Fees are recognized as cost of revenues when the related revenues are recognized. For exclusive licensed games which are maintained on the Group’s server, the Group has access to the data on the consumption details and types of virtual items purchased by the game players. The Group does not maintain information on consumption details of virtual items, and only have limited information related to the frequency of log-ons. Given that a substantial portion of the virtual items purchased by the game players in exclusive licensed games are perpetual items, management determined that it would be most appropriate to recognize revenue over the shorter of 1) estimated lives of the games and 2) the estimated lives of the user relationship with the Group, which were approximately one to six months for the periods presented. Revenues related to consumable items are recognized immediately upon consumption. Game players can purchase prepaid virtual items which can be used to purchase virtual items via online channels. The Group incurs service fees levied by those payment channels, and such payment expenses are recorded as the cost of revenues when the related revenues are recognized. For both non-exclusive and exclusive licensed games, the Group estimates the life of virtual items to be the shorter of the estimated lives of the games and the estimated lives of the user relationship. The estimated user relationship period is based on data collected from those users who have purchased virtual items. To estimate the life of the user relationship, the Group maintains a software system that captures the following information for each user: the date of first log-on, the date the user ceases to play the game and frequency of log-ons. The Group estimates the life of the user relationship to be the weighted average period from the first purchase of a virtual item to the date the user ceases to play the game based on the frequency of log-ons. To estimate the life of the games, the Group considers both games that they operate as well as games in the market that are of a similar nature. The Group categorizes these games by their nature, such as simulation games, role playing games and others, which appeal to players belonging to different demographics. The Group estimates that the life of each group of the games to be the average period from the date of launch for such games to the date the games are expected to be removed from the website or terminated altogether. When the Group launches a new game, they estimate the life of the game and user relationship based on lives of other similar games in the market until the new game establishes its own history. The Group also considers the game’s profile, attributes, target audience, and its appeal to players of different demographic groups in estimating the user relationship period. The consideration of user relationship with each online game is based on the Group’s best estimate that takes into account all known and relevant information at the time of assessment. Adjustments arising from the changes of estimated lives of virtual items are applied prospectively as such changes are resulted from new information indicating a change in the game player behavioral patterns. Any changes in the estimates of lives of virtual items may result in the Group’s revenues being recognized on a basis different from prior periods and may cause the Group’s operating result to fluctuate. The Group periodically assesses the estimated lives of the virtual items and any changes from prior estimates are accounted for prospectively. Any adjustments arising from changes in user relationship as a result of new information will be accounted as a change in accounting estimate in accordance with ASC 250 Accounting Changes and Error Corrections ii) Content sub-licensing revenue With the exclusive Content Copyrights, the Group has the right to sub-license the broadcasting rights to third parties. The Group generates revenue from sub-licensing these broadcasting rights on a recurring basis to third party customers for cash, mainly video streaming internet platforms, for cash payments at a fixed rate for a fixed period of time that falls within the original exclusive license period. Revenue is recognized in full at the later of the delivery of the master copy of the content with acceptance acknowledged by the customers and the commencement of the license period, as the Group is not obliged to provide any other services. The Group performs credit assessment of its customers prior to entering into contracts to ensure that collection of the arrangement fee is reasonably assured. There is no ongoing obligation of the Group after delivery of the master copy of the content. Content sub-licensing revenue was discontinued in July 2015 as a result of the divestiture of the Company’s online video streaming platform (see note 3 for details). The Group recognized content sub-licensing revenue from discontinued operations of USD 9,218 2,929 iii) Pay per view subscription revenue The Group operates a pay per view subscription program in which subscribers pay a monthly fee to watch and have access to a collection of movie contents. The subscription fee is time-based and is collected up-front from subscribers except in the cases where they elect to pay via their mobile operators. The subscription fee is collected when the subscribers pay for their monthly phone fees. 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 revenue is initially recorded as deferred revenue and revenue is recognized ratably over the period of subscription as services are rendered. iv) Live video revenue Live video was launched in 2015 as a new service of Xunlei. Users can purchase virtual items which they can then send to performers in the live videos. The revenue from live video is recognized at fair value of the virtual items, as Xunlei is the principal in this arrangement, based on actual consumption of virtual items by the paying users. v) Revenues from traffic referral programs The Group enters into contracts with certain third party portals/websites to earn revenue by redirecting online traffic to these third party portals/websites. On a monthly basis, the Group receives data on the user traffic and the related monthly revenue from these third party portals/ websites. Under these programs, the Group recognizes its share of revenues based on contractual rates applied to user traffic redirected to the advertisements of the third parties vi) Revenues from cloud computing As part of the Group’s cloud computing service, Project Crystal, the Group engages in sale of zhuanqianbao (“ZQB”). ZQB is a hardware which could be worked as a micro-computer based on Linux system, it also contains CPU, RAM, ROM and input/output devices. ZQB also allows users to share their idle bandwidth with the Group, in exchange for crystal points. Crystal points, which can be converted into cash based on a pre-set exchange rate, will only be given to the users when they successfully shared unused bandwidth with the Group. Therefore, the Group receives an identifiable benefit, being the bandwidth, from the users in exchange for the crystal points which the Group can reasonably estimate the fair value of this benefit. The Group determined that ZQB sold to users represent identifiable benefit to the users that is separable from the ability to sell bandwidth back to the Group and the bandwidth purchased from the users represent identifiable benefit to the Group, which the Group can reasonably estimate the fair value of this benefit, that is separable from ZQB. The sales of ZQB and purchase of excess bandwidth by the Group are considered separate transactions. Therefore, sales of ZQB are reported as revenue, while crystal points given for purchase of bandwidth are reported as bandwidth cost. The Group sells ZQB through online e-commerce platforms. The revenue from ZQB is recognized when the item is dispatched to the end customers. The core business principle of cloud computing is to collect idle uplink capacity from individual with compensation, and sells to online video streaming platforms. On a monthly basis, the Group records the bandwidth it delivers and recognize revenue from these online video streamers under contractual rates applied (price per GB of bandwidth multiplies total GBs of bandwidth per month). The cost of collecting unused bandwidth is recorded as bandwidth costs within cost of revenue. |
Barter transactions | Barter transactions The Group also enters into agreements with third parties (mainly video streaming internet platform) to exchange content. The exchanged content provides rights for each respective party only to broadcast the content received on its own website; though, each party retains the right to continue broadcasting and or sub-license the rights to the content it surrendered in the exchange. These transactions are non-monetary transactions similar to barter transactions, and the Group follows ASC 845, Non-Monetary Transactions and ASC 360-10, Property, Plant, and Equipment. Such barter transactions should be recorded at fair value of the surrendered assets in the transaction unless such fair value are not determinable within reasonable limits. The Group estimated the fair value of the content by gathering ‘‘price reference’’ of cash sub-licensing transactions of each exclusive content right and categorizing it into two buckets (1) cash transaction prices with established counterparties and (2) cash transaction prices with less established counterparties. With this information, the Group calculates an ‘‘average cash transaction price’’ for each category to be used as a reference for the non-monetary transaction. The attributable cost of the related exclusive Content Copyright surrendered is released and recorded as the cost of the barter transaction using the individual-film-forecast computation method. This method calculates such cost based on the ratio of the estimated fair value of the exchanged content over the aggregated estimated fair value to be generated by the exclusive Content Copyrights for their whole license period or estimate useful lives. The Group revisits the forecast at each quarter or year end and make adjustment, when appropriate. The Group generated net gains amounted to nil (2014:USD 1,556 137 4,428 409 2,606 247 266 25 |
Sales and marketing expenses | (t) Sales and marketing expenses Sales and marketing expenses comprise primarily of salary, commission and benefits of sales and marketing personnel and external advertising and market promotion expenses. The external advertising and market promotion expenses from continuing operations amounted to approximately USD 5,978 8,089 10,008 |
General and administrative expenses | (u) General and administrative expenses General and administrative expenses consist primarily of salary and benefits, professional service fees, legal expenses and other administrative expenses. |
Research and development costs | (v) Research and development costs The Group incurred research and development costs to develop its downloading software. Costs incurred during the research phase are expensed as incurred. Costs incurred for the development of the downloading software 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 have been immaterial for the periods presented. The Group also incurred development costs in connection with an internal-use ERP software to further enhance management to monitor the business. While internal and external costs incurred during the preliminary project stage are expensed as incurred, costs relating to activities during the application development stages have been capitalized. During each of the three years ended December 31, 2016, no software development costs were capitalized as intangible assets. 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 have been immaterial for the periods presented. |
Taxation and uncertain tax positions | (w) 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 can be utilized prior to their respective expiration dates. On January 1, 2007, the Group adopted the guidance 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 implementing the new guidance. The Group recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense, if any. Nevertheless, no significant interest and penalties were recorded in the years ended December 31, 2014, 2015 and 2016. Transition from PRC Business Tax to PRC Value Added Tax Effective September 1, 2012, the Chinese government has begun a pilot program (the “Pilot Program”) for transition from imposing business tax to imposing of value added tax (“VAT”) for revenues generated in certain industries. The Pilot Program has been expanded from Shanghai to eight other cities and provinces in China, including Beijing and Shenzhen. The Group’s advertising and content sub-licensing revenues are subject to the Pilot Program since November 1, 2012, and its subscription revenue, online game revenue and pay per view subscription revenue are subject to the Pilot Program since June 1, 2014. Business Tax has been imposed primarily on revenues from the provision of taxable services, assignments of intangible assets and transfers of real estate. 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. Before the implementation of the Pilot Program, the Group was mainly subject to a small amount of VAT mainly for revenues of the sale of software. VAT has been imposed on those revenues at a rate of 17 6 |
Retirement benefits | (x) Retirement benefits Full-time employees of the Company’s subsidiaries, consolidated VIE and its subsidiaries in the PRC participate in a government mandated multi-employer 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 and VIEs 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 for such employee benefits, which are expensed as incurred, were USD 3,818 5,481 9,237 |
Share-based compensation | (y) Share-based compensation The Group measures share-based compensation at the grant date based on the fair value of the award determined using the Black-Scholes option pricing model. As the Group has granted share options and 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 | 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 operations. 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 | Segment reporting The Group’s Chief Executive Officer has been identified as the chief operating decision maker (“CODM”), 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 revenue, cost and expenses that does not distinguish between segments, and reports costs and expense 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 which is the operation of its online media platform. All revenues of the Group are derived from mainland China. An analysis of the different types of revenues for the years ended December 31, 2014, 2015 and 2016 are summarized as follows: Years ended December 31, (In thousands) 2014 2015 2016 Subscription revenue 98,189 82,435 90,163 Advertising revenue 5,834 4,802 16,874 Other internet value-added services (note a) 31,789 42,759 49,929 Total 135,812 129,996 156,966 note a: Other internet value-added services mainly comprise revenue from online game, traffic referral programs, technical services regarding online acceleration, online sales revenue, sales of software licenses, cloud computing revenue (including revenue from sale of ZQB and idle bandwidth) and live video. |
Net income / (loss) per share | (bb) Net income / (loss) per share Net basic income / (loss) per share is computed by dividing net income / (loss) attributable to holders of common shares by the weighted-average number of common shares outstanding during the year using the two class method. Using the two class method, net income / (loss) is allocated between common shares and other participating securities based on their participating rights. Net diluted income / (loss) per share is calculated by dividing net income / (loss) 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 / (loss) per share if their effects would be anti-dilutive. Common share equivalents consist of the common shares issuable in connection with the Group’s convertible non-redeemable and redeemable preferred shares using the if-converted method, and common shares issuable upon the conversion of the stock options, using the treasury stock method. |
Comprehensive income | (cc) Comprehensive income Comprehensive income is defined as the change in equity of a 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 income, as presented on the accompanying consolidated balance sheets, consists of cumulative translation adjustment. |
Profit appropriation and statutory reserves | (dd) Profit appropriation and statutory reserves The Group’s subsidiaries, consolidated VIE and its 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 (“PRC GAAP”). Appropriation to the statutory general reserve should be at least 10 50 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. The following table presents the balances of registered capital, additional paid-in-capital and statutory reserves of entities within the Group incorporated in China as of December 31, 2015 and 2016 for the Group’s reporting purpose in China as determined under generally accepted accounting principles in China: December 31, December 31, (In thousands) 2015 2016 Paid-in capital 112,435 118,733 Additional paid-in capital 161 161 Statutory reserves 5,132 5,132 Total 117,728 124,026 Relevant laws and regulations permit payments of dividends by the PRC subsidiaries and affiliated companies only out of their retained earnings, if any, as determined in accordance with respective accounting standards and regulations. Accordingly, the above balances are not allowed to be transferred to the Company in terms of cash dividends, loans or advances (See also Note 29). |
Dividends | (ee) Dividends Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2014, 2015 and 2016, respectively. 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 | Recent accounting pronouncements On February 18, 2015, the FASB issued Accounting Standards Update 2015-02, Consolidation (Topic 810) Amendments to the Consolidation Analysis. The new guidance applies to entities in all industries and provides a new scope exception to registered money market funds and similar unregistered money market funds. It provide new guidance to companies in determining whether an entity is a variable interest entity (VIE), assessing fees paid to a decision maker or a service provider, and consideration of related parties in the economics test. The standard is effective for public business entities for annual periods beginning after December 15, 2015. This new guidance did not have significant impact to the Group's existing structure. In July 2015, the FASB issued Accounting Standards Update 2015-11, Inventory (Topic 330) Simplifying the Measurement of Inventory. The amendments apply to inventory that is measured using the first-in, first-out (FIFO) or average cost method. The main change is in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of this Update. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in this update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption of this ASU is not expected to have significant impact to the Group’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes. ASU 2015-17 simplifies the presentation of deferred income taxes, which require the deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for fiscal years and interim periods within those years beginning after December 15, 2016. . The Group believes that this ASU will have an impact on the Group’s consolidated balance sheet and related disclosures. In January 2016, the FASB issued ASU 2016-01, Financial InstrumentsOverall: Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance will impact the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified the need for a valuation allowance on deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The accounting for other financial instruments, such as loans, investments in debt securities, and financial liabilities not under the fair value option is largely unchanged. The standard is effective for public business entities for annual periods (and interim periods within those annual periods) beginning after December 15, 2017. The adoption of this ASU is not expected to have significant impact to the Group’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The core principle of Topic 842 is that a lessee should recognise the assets and liabilities that arise from leases. A lessee should recognise in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognise lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2018. Early adoption is permitted. The Group is currently evaluating the impact ASU2016-02 will have on the Group consolidated balance sheet, results of operations, cash flows and related disclosures. On 30 March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 affect all entities that issue share-based payment awards to their employees and involve multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. All excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Tax benefits should be classified along with other income tax cash flows as an operating activity. An entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (consistent with current GAAP) or account for forfeitures when they occur. Under current GAAP, one of the requirements for an award to qualify for equity classification is that an entity cannot partially settle the award in cash in excess of the employer's minimum statutory withholding requirements. Under ASU 2016-09, the threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions. Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. For public business entities, ASU 2016-09 is effective for annual periods beginning after 15 December 2016, and interim periods within those annual periods. The Group is currently evaluating the impact ASU2016-09 will have on the Group consolidated balance sheet, results of operations, cash flows and related disclosures. The FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), on August 26, 2016, and ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (a consensus of the Emerging Issues Task Force), on November 17, 2016. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. For public business entities, both ASUs are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted for ASU 2016-18. Early adoption is also permitted for ASU 2016-15 provided that all of the amendments are adopted in the same period. Both ASUs require application using a retrospective transition method. The Group is currently evaluating the impact ASU2016-15 and ASU2016-18 will have on the Groups consolidated balance sheet, results of operations, cash flows and related disclosures. In 2016, the FASB and IASB issued several amendments and clarifications to the new revenue standards, primarily as a result of issues raised by stakeholders and discussed by the Transition Resource Group. Amendments were made to the guidance related to the principal versus agent assessment, identifying performance obligations, accounting for licenses of intellectual property, and other matters (such as the definition of completed contracts at transition, the addition of new practical expedients, and various technical corrections). As amended, the FASB's standard is effective for public entities for the first interim period within annual reporting periods beginning after December 15, 2017 (nonpublic companies have an additional year). The FASB’s standard will allow early adoption, but no earlier than the original effective date for public entities (reporting periods beginning after December 15, 2016). The IASB’s standard, as amended, is effective for the first interim period within annual reporting periods beginning on or after January 1, 2017, with early adoption permitted. The Group is currently evaluating the impact that will have on the Groups consolidated balance sheet, results of operations, cash flows and related disclosures. In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The standard should be applied prospectively on or after the effective date. The Group is currently evaluating the impact ASU2017-01 will have on the Groups consolidated balance sheet, results of operations, cash flows and related disclosures. In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04, “Simplifying the Test for Goodwill Impairment.” The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group is currently evaluating the impact ASU2017-04 will have on the Groups consolidated balance sheet, results of operations, cash flows and related disclosures. |
Organization and nature of op39
Organization and nature of operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization and nature of operations [Abstract] | |
Accompanying Consolidated Financial Statements Include Financial Statements of Company, Subsidiaries, Variable Interest Entity ("VIE") and VIE's Subsidiaries | Name of entities Place of incorporation Date of incorporation Relationship % of direct or indirect economic ownership Principal activities Shenzhen Xunlei Networking Technologies, Co., Ltd. (“Shenzhen Xunlei”) China January 2003 VIE 100% Development of software, provision of online and related advertising, membership subscription and online game services; as well as sales of software licenses Giganology (Shenzhen) Co., Ltd. (“Giganology Shenzhen”) China 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”) China December 2005 VIE’s subsidiary 100% Development of software for related companies Xunlei Networking Technologies (Beijing) Co., Ltd. (“Beijing Xunlei”) China June 2009 VIE’s subsidiary 100% Development of software for related companies Shenzhen Zhuolian Software Co., Ltd. (formerly known as “Xunlei Software (Shenzhen) Co., Ltd.”) (“Zhuolian Software”) China January 2010 VIE’s subsidiary 100% Provision of software technology development for related companies Name of entities Place of incorporation Date of incorporation Relationship % of direct or indirect economic ownership Principal activities Xunlei Games Development (Shenzhen) Co., Ltd. (“Xunlei Games”) China February 2010 VIE’s subsidiary 70 % Development of online game and computer software for related companies and provision of advertising services Xunlei Network Technologies Limited (“Xunlei BVI”) British Virgin Islands February 2011 Subsidiary 100 % Holding company Xunlei Network Technologies Limited (“Xunlei HK”) Hong Kong March 2011 Subsidiary 100 % Development computer software of related companies and provision of advertising services Xunlei Computer (Shenzhen) Co., Ltd. (“Xunlei Computer”) China November 2011 Subsidiary 100 % Development of computer software and provision of information technology services to related companies Shenzhen Onething Technologies Co., Ltd. (“Onething”) China September 2013 VIE’s subsidiary 100 % Development of computer software and provision of information technology services to related companies Beijing Xunjing Technologies Co., Ltd. (formerly known as “Wangxin Century Technologies (Beijing) Co., Ltd.”) (“Beijing Xunjing”) China October 2015 VIE’s subsidiary 100 % Development of computer software and provision of information technology services Shenzhen Crystal Interactive Technologies Co., Ltd. (“Crystal Interactive”) China May 2016 VIE’s subsidiary 100 % Development of computer software and provision of information technology services Shenzhen Xunlei Venture Capital Partnership Enterprise (Limited Partnership) (“Xunlei Venture Capital”) China June 2016 VIE’s subsidiary 99 % Investments in industries and consultation in investments Shenzhen Xunlei Kankan Information Technologies Co., Ltd. (formerly known as “155 Networking (Shenzhen) Co., Ltd.”) (“Xunlei Kankan”) China August 2008 VIE’s subsidiary 100 % Development of software for related companies(note a) Note a: Xunlei Kankan was disposed in 2015. See note 3 for details. Note b: The English names of the PRC companies represent management’s translation of their Chinese names of these companies as they have not adopted formal English names. |
Summary of significant accoun40
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of significant accounting policies [Abstract] | |
Analysis of Different Types of Revenues | Years ended December 31, (In thousands) 2014 2015 2016 Subscription revenue 98,189 82,435 90,163 Advertising revenue 5,834 4,802 16,874 Other internet value-added services (note a) 31,789 42,759 49,929 Total 135,812 129,996 156,966 note a: Other internet value-added services mainly comprise revenue from online game, traffic referral programs, technical services regarding online acceleration, online sales revenue, sales of software licenses, cloud computing revenue (including revenue from sale of ZQB and idle bandwidth) and live video. |
Schedule of Balances of Registered Capital, Additional Paid-in-Capital and Statutory Reserves | December 31, December 31, (In thousands) 2015 2016 Paid-in capital 112,435 118,733 Additional paid-in capital 161 161 Statutory reserves 5,132 5,132 Total 117,728 124,026 |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued operations [Abstract] | |
Schedule of results of the discontinued operation, assets and liabilities of the discontinued operation and cash flows (used in) discontinued operations | Results of the discontinued operation USD (In thousands) 2014 2015 2016 Revenues, net of rebates and discounts 47,075 15,677 Business taxes and surcharges (1,480) (447) Net revenues 45,595 15,230 Cost of revenues (42,704) (13,240) Gross profit 2,891 1,990 Operating expenses Research and development expenses (6,035) (3,245) 5 Sales and marketing expenses (15,726) (7,384) (27) General and administrative expenses (3,016) (3,051) (221) Total operating expenses (24,777) (13,680) (243) Net gain from exchanges of content copyrights 1,556 137 Operating loss (20,330) (11,553) (243) Gain on disposal of Kankan 1,505 Income taxes benefits/(expenses) 1,923 (2,048) 36 Loss from discontinued operations (18,407) (12,096) (207) Assets and liabilities of the discontinued operation USD (In thousands) December 31, Assets Accounts receivable, net 23,741 Prepayments and other current assets 670 Copyrights related to content-current portion 16,013 Property and equipment, net 1,111 Intangible assets 4,997 Prepayment for content 456 Other long-term prepayments and receivables 57 Total assets held for sale 47,045 Liabilities Accounts payables 25,267 Deferred revenue, current portion 1,018 Accrued liabilities and other payables 1,082 Total liabilities held for sale 27,367 Cash flows generated from/ (used in) discontinued operations USD (In thousands) 2014 2015 2016 Net cash generated from/(used in) operating activities 2,293 (1,554) (215) Net cash (used in)/generated from investing activities (34,661) 9,135 Net cash used in financing activities Net cash flow for the year (32,368) 7,581 (215) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash and cash equivalents [Abstract] | |
Summary of Cash on Hand and Cash Held at Bank | December 31, 2015 December 31, 2016 USD USD (In thousands) Amount equivalent Amount equivalent RMB 606,845 93,454 538,660 77,651 USD 268,198 268,198 121,726 121,726 HKD 969 125 987 127 Total 361,777 199,504 |
Summary of Time Deposits | December 31, 2015 December 31, 2016 USD USD (In thousands) Amount equivalent Amount equivalent RMB 349,099 53,760 USD 260,597 260,597 115,944 115,944 Total 314,357 115,944 |
Short-term investments (Tables)
Short-term investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Short-term investments [Abstract] | |
Schedule of Short-Term Investments | December 31, December 31, (In thousands) 2015 2016 Time deposits 38,829 Investments in financial instruments (note) 70,328 143,131 Total 70,328 181,960 Note: the investments were issued by commercial banks in PRC with a variable interest rate indexed to performance of underlying assets. Since these investments’ maturity dates are within one year, they are classified as short-term investments. |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts receivable, net [Abstract] | |
Schedule of Accounts Receivable | December 31, December 31, (In thousands) 2015 2016 Accounts receivable 11,392 14,655 Less: Allowance for doubtful accounts (126) (119) Accounts receivable, net 11,266 14,536 |
Schedule of Allowance for Doubtful Accounts | The following table presents movement in the allowance for doubtful accounts: December 31, December 31, December 31, (In thousands) 2014 2015 2016 Balance at beginning of the year 131 126 Additions 523 4 Write-off (393) Exchange difference 1 (9) (7) Balance at end of the year 131 126 119 |
Prepayments and other assets (T
Prepayments and other assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Prepayments and other assets [Abstract] | |
Schedule of Prepayments and Other Assets | December 31, December 31, (In thousands) 2015 2016 Current portion: Advance to suppliers 882 2,392 Interest-free loans to employees (note a) 3,200 3,964 Advance to employees for business purposes 957 351 Interest receivable 564 210 Rental and other deposits 224 1,014 Prepayment for share repurchase plan (note b) 712 Prepaid management insurance 209 145 Receivable from Nesound (note c) 4,004 3,748 Prepayment for taxation 2,041 1,392 Others 275 377 Total of prepayments and other current assets 13,068 13,593 Non-current portion: Prepayments for online game licenses 4,786 490 Long term receivable 1,812 Low-interest loans to employees, non-current portion (note d) 833 697 Total of long-term prepayments and other assets 7,431 1,187 Note a: The Group had entered into loan contracts with certain employees as at December 31, 2015 and 2016, under which the Group provided interest-free loans to these employees. The loan amounts vary amongst different employees and are repayable on demand. Note b: As of 31, 2015, the prepayment for share repurchase plan represented prepayment made to a securities broker for 20 announced in . In January 2016 another 20 0.7 securities broker. As of December 31, 2016, all the prepayment has been utilized Note c: The Group sold Kankan to Nesound in July 2015. As at December 31, 2016, there is a balance receivable amounted to USD 3,748 thousand which was past due. The Group have brought the claim against Nesound to the arbitration tribunal and considered that the balances can be collected in full. Note d: The Group had entered into loan contracts with certain employees as at December 31, 2015 and 2016, under which the Group provided low-interest loans to these employees. The loan amounts vary amongst different employees and are repayable in equal instalments on a monthly basis over the term of 10 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property and equipment [Abstract] | |
Schedule of Property and Equipment | December 31, December 31, (In thousands) 2015 2016 Servers and network equipment 37,332 42,641 Computer equipment 1,544 1,538 Furniture, fixtures and office equipment 856 845 Motor vehicles 320 299 Leasehold improvements 2,504 2,794 Total original costs 42,556 48,117 Less: Accumulated depreciation (24,534) (27,675) Sub-total 18,022 20,442 Construction in progress 14 574 Total 18,036 21,016 |
Summary of Depreciation Expense | December 31, December 31, December 31, (In thousands) 2014 2015 2016 Cost of revenues 5,652 5,003 5,848 General and administrative expenses 715 628 306 Sales and marketing expenses 123 7 5 Research and development expenses 10 8 6 Total 6,500 5,646 6,165 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Intangible assets, net [Abstract] | |
Schedule of Intangible Assets | December 31, 2015 December 31, 2016 Net book Net book (In thousands) Cost Amortization Impairment value Cost Amortization Impairment value Land use rights 5,123 (409) 4,714 4,796 (543) 4,253 Trademarks 5,812 (1,107) 4,705 5,441 (1,814) 3,627 Non-compete agreement 1,415 (472) 943 1,325 (773) 552 Technology (including right-to-use) 2,261 (377) 1,884 2,117 (617) 1,500 Acquired computer software 619 (255) 364 884 (420) 464 Internal use software development costs 675 (641) 34 631 (631) Online game licenses (note) 5,827 (4,268) (770) 789 5,454 (4,383) (721) 350 21,732 (7,529) (770) 13,433 20,648 (9,181) (721) 10,746 Note: As of December 31, 2015 and 2016, full provision for impairment has been provided for an online game license due to significant under-performance in the past. |
Schedule of Amortization Expense Recognized | Years ended December 31 (In thousands) 2014 2015 2016 Cost of Revenues 1,141 693 403 General and administrative expenses 372 386 323 Research and development expenses 542 1,589 1,497 Total 2,055 2,668 2,223 |
Schedule of Estimated Aggregate Amortization Expense | (In thousands) Intangible assets 2017 2,057 2018 1,623 2019 1,251 2020 1,233 2021 and thereafter 4,582 |
Schedule of Weighted Average Amortization Periods of Intangible Assets | December 31, December 31, (In year) 2015 2016 Land use right 30 30 Trademarks 7 7 Non-compete agreement 4 4 Technology (including right-to-use) 8 8 Acquired computer software 5 5 Internal use software development costs 5 5 Online game licenses 3 3 Total weighted average amortization periods 11 11 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventories [Abstract] | |
Schedule of inventories | December 31, December 31, (In thousands) 2015 2016 ZQB (note a) 92 31 XZB (note b) 76 152 Online shopping mall inventories (note c) 153 47 Others 159 144 Total 480 374 Note a: ZQB, a proprietary hardware connected to users’ network routers, can allocate users’ idle uplink capacity to the Company for further allocation to internet content providers. Note b: XZB is a personal cloud hardware, which can remotely control downloading through mobile phones or computers, to expand storage of terminals unlimitedly and share data in cloud storage. Note c: online shopping mall inventories include Xiaomi TV box, gaming discs etc. |
Long-term investments (Tables)
Long-term investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-term investments [Abstract] | |
Schedule of Long-Term Investments | December 31, December 31, (In thousands) 2015 2016 Equity method investments: Balance at beginning of the year 2,965 2,162 Additions (i) 1,442 Disposal (iii) (701) Share of loss from equity investees (12) (195) Dilution gains arising from deemed disposal of investments (iv) 702 Transfer to cost method investments (1,349) (786) Exchange differences (144) (132) Balance at end of the year 2,162 1,790 Cost method investments: Balance at beginning of the year 2,533 9,157 Additions (i)(ii) 6,506 32,707 Disposal (iii) (2,220) Dilution gains arising from deemed disposal of investment (iii)(iv) 689 Transfer from equity method investments 1,349 786 Exchange difference (429) (463) Less: impairment loss on long-term investments (802) (1,654) Balance at end of the year 9,157 39,002 Total long-term investments 11,319 40,792 |
Schedule of Equity Investments, Percentage of Ownership of Common Share | Percentage of ownership of shares as of December 31, Investee 2015 2016 Equity method investments: Zhuhai Qianyou Technology, Co., Ltd. (“Zhuhai Qianyou”), 19.00 % 19.00 % Guangzhou Yuechuan Network Technology, Co., Ltd. (“Guangzhou Yuechuan”) (iii) 19.13 % Shenzhen Xunlei Big Data Information Service Co., Ltd. (“Big Data”) (i) 43.16 % Cost method investments: Guangzhou Yuechuan Network Technology, Co., Ltd. (“Guangzhou Yuechuan”) (iii) 9.30 % Shenzhen Kushiduo Network Science and Technology Co., Ltd. (“Shenzhen Kushiduo”)(ii)(iv) 12.5 % 10.00 % Shanghai Guozhi Electronic Technology Co., Ltd. (“Shanghai Guozhi”) 21.00 % 16.80 % Guangzhou Wucai Information Technology Co., Ltd.(“Guangzhou Wucai”) (v) 10.00 % Guangzhou Hongsi Network Technology Co., Ltd.(“Guangzhou Hongsi”) 19.90 % 19.90 % Tianjin Kunzhiyi Network Technology Co., Ltd.(“Tianjin Kunzhiyi”) (iv) 19.99 % Chengdu Diting Technology, Co., Ltd. (“Chengdu Diting”) (iv) 13.27 % 12.74 % Suzhou Heidisi Network Technology Co., Ltd.("Suzhou Heidisi") (ii) (v) 19.90 % Xiamen Diensi Network Technology Co., Ltd.("Xiamen Diensi") (i)(ii)(iv) 15.00 % 14.25 % Nanjing Qianyi Video Information Technology Co., Ltd.("Nanjing Qianyi") (ii)(iii) 20.00 % 11.2 Capital I, L.P. ("11.2 Capital") (ii) 2.24 % 2.05 % Cloudtropy (i)(ii) 1.13 % 9.69 % Shanghai Lexiang Technology Co., Ltd. ("Shanghai Lexiang") (i) 15.00 % Hangzhou Feixiang Data Technology Co., Ltd. ("Hangzhou Feixiang") (i) 20.00 % Shenzhen Meizhi Interactive Technology Co., Ltd. ("Meizhi Interactive") (i)(iv) 8.13 % Beijing Yunhui Tianxia Technology Co., Ltd. ("Yunhui Tianxia") (i) 7.50 % Arashi Vision Interative (Cayman) Inc. ("Insta 360") (i) 11.46 % Cloudin Technology (Cayman) Limited ("Cloudin") (i) 4.47 % Shenzhen RenJian RenAi Networking Technology Co., Ltd. (“RenJian RenAi”) (i) In 2016, the Group made an equity investment in a privately-held company, Big Data, of USD 1,442 43.16 In 2016, the Group also made equity investments in seven 28,242 1.13 9.69 3,780 700 15 14.25 (ii) In 2015, the Group made equity investments in five 39 25 10 12.5 (iii) In January 2016, the Group disposed of 9 701 1.3 19.13 10.13 10.13 9.3 69 2.16 230 626 (iv) In May 2014, the Group obtained the right to appoint a director to Chengdu Diting and thus had one five 19.9 16.58 10 1,627 39.07 6.39 16.58 13.27 4.38 702 In 2016, in addition to a dilution gain arising from deemed disposal of equity investment in Guangzhou Yuechuan of USD 69 100 84 248 188 (v) In September of 2015, Tianjin Kunzhiyi suffered from financial difficulties and lost most of its core R&D staff. As a result, new games couldn't be promoted as committed in investment agreement with the Group. The Group recognized impairment of RMB 5 million (USD 802 thousand) for its interest in Tianjin Kunzhiyi as considered necessary. In 2016, in addition to impairment of RenJian RenAi (note 11 (iii)), the Group also recognized impairment against its investments in Guangzhou Wucai, Suzhou Heidisi, and Shanghai Guozhi of USD 301 597 526 |
Deferred revenue and income (Ta
Deferred revenue and income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred revenue and income [Abstract] | |
Schedule of Deferred Revenue and Income | December 31, December 31, (In thousands) 2015 2016 Deferred revenue Membership subscription revenues 24,502 22,115 Online game revenues (i) 1,120 1,490 Deferred income Government grants (ii) 4,032 4,195 Reimbursement from the depository (iii) 842 814 Total 30,496 28,614 Less: non-current portion (iv) (5,383) (4,082) Deferred revenue and income, current portion 25,113 24,532 (i) The estimated lives of the user relationship extended, as result of change in accounting estimate of the lives of online game. Accordingly, the portion recognized as deferred revenue of online game increased. (ii) In March and June of 2016, the Group received government grant of USD 2.5 5 (iii) In August 2016, the Company received from its depositary bank 0.27 0.6 5 (iv) As of December 31, 2016, the non-current portion included membership subscription revenue of USD 820 719 2,719 4,032 543 632 |
Accrued liabilities and other51
Accrued liabilities and other payables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued liabilities and other payables [Abstract] | |
Schedule of Accrued Liabilities and Other Payables | December 31, December 31, (In thousands) 2015 2016 Payroll and welfare 10,570 11,322 Agency commissions and rebatesonline advertising 2,443 2,297 Payables for advertisement on exclusive online games 1,643 1,521 Receipts in advance from customers (note a) 5,538 Tax levies 1,605 1,864 Payables for purchase of equipment 4,999 3,235 Legal and litigation related expenses (Note 26) 2,601 2,904 Professional fees 908 1,007 Staff reimbursements 611 452 Rental expense 4 5 Payables for proceeds from selling exercised stock options 177 352 Payables for gaming distribution 158 147 Payables to Nesound 622 807 Others 1,038 1,680 Total 27,379 33,131 note a: Receipts in advance from customers represents prepayment from a customer in respect of CDN and advertisements services. |
Cost of revenues (Tables)
Cost of revenues (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cost of revenues [Abstract] | |
Schedule of Cost of Revenues | Cost of revenues from continuing operations (In thousands) Years ended December 31, 2014 2015 2016 Bandwidth costs 33,545 37,218 55,135 Content costs, including amortization 338 692 Payment handling fees 11,305 9,087 6,967 Depreciation of servers and other equipment 5,102 4,873 5,848 Games revenue sharing costs and others (note) 5,803 8,518 11,677 Total 55,755 60,034 80,319 Note: gaming revenue sharing costs and others mainly include gaming sharing costs, cost of ZQB and cost of live video. |
Redeemable convertible prefer53
Redeemable convertible preferred shares (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Subscription Rights [Member] | |
Assumptions to Estimated Fair Value of Warrants | The major assumptions used in calculating the fair value of the Series D warrants include: February 6, 2014 Spot price (1) 4.47 Risk-free interest rate (2) 0 %* Volatility rate (3) 0 %* Dividend yield (4) * Given that the maturity date of Series D warrant was February 6, 2014, the volatility rate and risk-free interest rate did not affect the valuation of the warrant on February 6, 2014. |
Series E Preferred Shares [Member] | Convertible Redeemable Preferred Shares [Member] | |
Summary of Redeemable Convertible Preferred Shares | December 31, (In thousands) 2014 Beginning balance Addition 275,314 Exercise of Series E subsequent sale rights 28,568 BCF upon Series E (53,486) Amortisation of BCF of Series E 4,139 Accretion of Series E to convertible redeemable preferred shares redemption value 12,754 Acceleration of amortization of BCF of Series E upon IPO 49,346 Deemed dividend to preferred shareholders upon IPO 27,396 Converted to common shares upon IPO (344,031) Ending balance |
Series D Warrants [Member] | |
Assumptions to Estimated Fair Value of Warrants | The major assumptions used in calculating the fair value of the Subscription Rights include: March 5, April 24, 2014 2014 Spot price (1) 3.31 - 4.65 3.39 - 4.64 Risk-free interest rate (2) 0.04 % 0.02 % Volatility rate (3) 38.12 % 42.74 % Dividend yield (4) (1) Spot price based on the fair value of 100 80 10 10 (2) Risk-free interest rate based on the US Treasury Bond & Notes BFV curve from Bloomberg as at the valuation date. (3) Volatility based on the average historical volatility of the comparable companies from Bloomberg as at the valuation date. (4) The Company has no history or expectation of paying dividends on its common shares. |
Series D Warrants [Member] | Convertible Redeemable Preferred Shares [Member] | |
Summary of Redeemable Convertible Preferred Shares | Year ended Year ended December 31,2013 December 31,2014 Beginning balance 35,990 40,290 Deemed dividend to Series D shareholder from its modification 279 Accretion of Series D to convertible redeemable preferred shares redemption value 4,300 1,870 Repurchase of preferred shares (15,003) Deemed dividend to preferred shareholders upon IPO 4,008 Converted to common shares upon IPO (31,444) Ending balance 40,290 |
Series E Warrants [Member] | |
Assumptions to Estimated Fair Value of Warrants | The major assumptions used in calculating the fair value of the Series E warrants include: March 5, 2014 Spot price (1) 3.31 - 4.65 Risk-free interest rate (2) 0.04% - 0.12 % Volatility rate (3) 38.39% - 38.81 % Dividend yield (4) (1) Spot price based on the fair value of 100 80 10 10 (2) Risk-free interest rate based on the US Treasury Bond & Notes BFV curve from Bloomberg as at the valuation date. (3) Volatility based on the average historical volatility of the comparable companies from Bloomberg as at the valuation date. (4) The Company has no history or expectation of paying dividends on its common shares. |
Series E Warrants [Member] | Convertible Redeemable Preferred Shares [Member] | |
Assumptions to Estimated Fair Value of Warrants | The major assumptions used in calculating the fair value of the Series E warrants include: March 5, 2014 Spot price (1) 4.50 - 4.65 Risk-free interest rate (2) 0.12 % Volatility rate (3) 38.81 % Dividend yield (4) (1) Spot price based on the fair value of 100 80 10 10 (2) Risk-free interest rate based on the US Treasury Bond & Notes BFV curve from Bloomberg as at the valuation date. (3) Volatility based on the average historical volatility of the comparable companies from Bloomberg as at the valuation date. (4) The Company has no history or expectation of paying dividends on its common shares. |
Repurchase of shares (Tables)
Repurchase of shares (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Repurchase of shares [Abstract] | |
Schedule of share repurchase activity | Total Number of ADSs Purchased as Part of the Publicly Average Price Periods Announced Plan Paid Per ADS March 15 March 30 408,985 6.22 April 1 April 14 457,900 6.61 May 2 May 31 449,696 6.28 June 9 June 30 111,459 5.24 July 1 July 29 555,357 5.33 August 1 August 30 229,695 5.83 September 6 September 30 15,467 5.33 October 13 - October 27 31,400 5.11 November 18 November 30 21,229 4.61 December 2 December 30 173,312 4.02 Total 2,454,500 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Share Option Activity | The following table summarizes the share option activity for the years ended December 31, 2014, 2015 and 2016: Weighted Weighted Weighted- average Aggregate average average remaining intrinsic Number of exercise grant-date contractual life value (in share options price (USD) fair value (USD) (years) thousands) Outstanding, December 31, 2014 9,940,285 1.88 1.95 3,067 Vested and expected to vest at December 31, 2014 9,642,307 1.86 0.49 1.87 3,057 Exercisable at December 31, 2014 9,129,958 1.81 0.41 1.49 3,042 Granted 561,705 0.88 0.76 Forfeited (1,494,922) 3.22 Expired (3,606,304) 1.78 Converted to restricted shares (80,000) 2.40 Exercised (3,189,944) 0.25 4.46 556 Outstanding, December 31, 2015 2,130,820 2.13 Vested and expected to vest at December 31, 2015 1,008,645 1.76 0.73 4.62 464 Exercisable at December 31, 2015 1,430,870 2.16 0.86 4.03 406 Granted - - - Forfeited (14,375) 3.21 Expired (182,510) 2.22 Converted to restricted shares - - Exercised (440,465) 1.81 Outstanding, December 31, 2016 1,493,470 2.65 3.39 6 Vested and expected to vest at December 31, 2016 1,440,923 2.67 0.85 3.24 6 Exercisable at December 31, 2016 1,217,050 2.70 0.84 3.20 6 |
Schedule of Fair Values of Stock Options Granted | The fair values of stock options granted during the years ended December 31, 2014 and 2015 were estimated using the following assumptions: Options granted to employees Years ended December 31, 2014 2015 Risk-free interest rate (1) 0.77% to 1.76% 0.77% to 1.76% Dividend yield (2) Volatility rate (3) 40.07% to 43.3% 40.07% to 43.3% Expected term (in years) (4) 4.13 to 4.58 4.07 to 5.57 (1) The risk-free interest rate of periods within the contractual life of the share option is based on the USD denominated China Government Bond yield as at the valuation dates. (2) The Company has no history or expectation of paying dividends on its common shares. (3) Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. (4) The expected term is developed by assuming the share options will be exercised in the middle point between the vesting dates and maturity dates. |
Schedule of Recognized Compensation Costs | Total compensation costs recognized for the years ended December 31, 2014, 2015 and 2016 are as follows: Years ended December 31, (In thousands) 2014 2015 2016 Sales and marketing expenses 66 131 98 General and administrative expenses 6,407 6,701 6,267 Research and development expenses 1,171 2,896 2,983 Total 7,644 9,728 9,348 |
2013 Plan [Member] | |
Summary of Restricted Shares Activities | A summary of the restricted shares activities under the 2013 Plan for the years ended December 31, 2014, 2015 and 2016 is presented below: Number of Weighted-Average restricted Grant-Date Fair shares Value Unvested at January 1, 2014 8,095,238 Granted 4,233,558 2.89 Vested (1,563,222) Forfeited (3,564,796) Unvested at December 31, 2014 7,200,778 Vested and expected to vest at December 31, 2014 6,120,662 Unvested at January 1, 2015 7,200,778 Vested (2,627,815) Forfeited (776,565) Unvested at December 31, 2015 3,796,398 Vested and expected to vest at December 31, 2015 3,226,939 Unvested at January 1, 2016 3,796,398 Vested (1,520,760) Forfeited (561,103) Unvested at December 31, 2016 1,714,535 Vested and expected to vest at December 31, 2016 1,457,355 |
2010 share incentive plan [Member] | |
Summary of Restricted Shares Activities | A summary of the restricted shares activities under the 2010 Plan for the years ended December 31, 2016 is presented below: Weighted-Average Number of Grant-Date Fair restricted shares Value Unvested at January 1, 2015 1,505,787 Converted from share options 80,000 1.71 Vested (390,560) Forfeited (763,010) Unvested at December 31, 2015 432,217 Vested and expected to vest at December 31, 2015 367,384 Granted 1,170,000 Vested (274,960) Forfeited (384,037) Unvested at December 31, 2016 943,220 Vested and expected to vest at December 31, 2016 801,737 |
2014 Plan [Member] | |
Summary of Restricted Shares Activities | A summary of the restricted shares activities under the 2014 Plan for the years ended December 31, 2015 and 2016 is presented below: Number of Weighted-Average restricted Grant-Date Fair shares Value Unvested at January 1, 2015 3,896,500 Granted 3,890,500 1.53 Vested (859,100) Forfeited (1,166,500) Unvested at December 31, 2015 5,761,400 Vested and expected to vest at December 31, 2015 4,897,100 Unvested at January 1, 2016 5,761,400 Granted 6,749,000 Vested (1,262,200) Forfeited (971,900) Unvested at December 31, 2016 10,276,300 Vested and expected to vest at December 31, 2016 8,734,855 |
Basic and diluted net income 56
Basic and diluted net income / (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Basic and diluted net (loss) / income per share [Abstract] | |
Schedule of Basic and Diluted Net (Loss) / Income Per Share | (Amounts expressed in thousands of United States dollars (“USD”), except for number of shares and per share data) Years ended December 31, 2014 2015 2016 Numerator: Net income/(loss) from continuing operations 28,269 (2,370) (23,976) Net loss from discontinued operations (18,407) (12,096) (207) Net income/(loss) 9,862 (14,466) (24,183) Less: Net (loss) attributable to the non-controlling interest (950) (1,299) (72) Net income/(loss) attributable to Xunlei Limited 10,812 (13,167) (24,111) Accretion of Series D to convertible redeemable preferred shares redemption value (1,870) Contingent beneficial conversion feature of series C to one Series C shareholder (57) Deemed dividend to Series D shareholder from its modification (279) Accretion of Series E to convertible redeemable preferred shares redemption value (12,754) Amortization of beneficial conversion feature of Series E (4,139) Deemed dividend to certain shareholders from repurchase of shares (14,926) Acceleration of amortization of beneficial conversion feature of Series E upon initial public offering (49,346) Deemed dividend to preferred shareholders upon IPO (32,807) Net loss attributable to Xunlei Limited’s common shareholders (105,366) (13,167) (24,111) Numerator of basic net loss per share from continuing operations (86,959) (1,071) (23,904) Numerator of basic net loss per share from discontinued operations (18,407) (12,096) (207) Numerator for diluted loss per share from continuing operations (86,959) (1,071) (23,904) Numerator for diluted loss per share from discontinued operations (18,407) (12,096) (207) Denominator: Denominator for basic net loss per share-weighted average shares outstanding 194,711,227 335,987,595 334,155,668 Denominator for diluted net loss per share 194,711,227 335,987,595 334,155,668 Basic net loss per share from continuing operations (0.45) (0.00) (0.07) Basic net loss per share from discontinued operations (0.09) (0.04) (0.00) Diluted net loss per share from continuing operations (0.45) (0.00) (0.07) Diluted net loss per share from discontinued operations (0.09) (0.04) (0.00) |
Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Income per Common Share | Years ended December 31, 2014 2015 2016 Preferred sharesweighted average 93,213,683 Share options and restricted shares weighted average 9,041,434 1,673,342 2,902,950 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related party transactions [Abstract] | |
Schedule of Relationship Between Related Parties with their Groups | Related Party Relationship with the Group Zhuhai Qianyou Hao Cheng Chuan Wang Shenglong Zou Beijing Millet Technology Co., Ltd. (“Beijing Xiaomi”) Leading Advice Holdings Limited Vantage Point Global Limited Aiden & Jasmine Limited Kingsoft Corporation Limited King Venture Holdings Limited Xiaomi Venture Limited Morningside Technology Investments Limited Shenzhen Xunlei Big Data Information Service Co., Ltd. Shenzhen Xunlei Finance Information Service Co., Ltd. Subsidiary of the Group’s equity investment Shenzhen Crystal Technology Co., Ltd. Millet Communication Technology Co., Ltd. (“Millet Communication Technology”) Beijing Millet Electronic Products Co., Ltd. Beijing Millet Digital Technology Co., Ltd. Millet Technology Co., Ltd. Beijing Millet Payment Technology Co., Ltd. Company owned by a shareholder of the Group |
Schedule of Significant Related Party Transactions | Years ended December 31, (In thousands) 2014 2015 2016 Game sharing costs paid and payable to Zhuhai Qianyou (note a) 402 127 154 Repayment from Hao Cheng 85 Bandwidth revenue from Millet Technology Co., Ltd. 316 Technology service revenue from Beijing Xiaomi 303 344 1,010 Bandwidth revenue from Millet Communication Technology Co., Ltd. (note b) 2,483 Marketing expense to Millet Communication Technology Co., Ltd. 20 Advertisement revenue from Beijing Xiaomi 871 Advance to Shenglong Zou 10 Advance to Chuan Wang 7 Accrued to Aiden & Jasmine Limited (note c) 1,125 54 54 Accrued to Vantage Point Global Limited (note c) 3,012 146 146 note a The Company obtained an exclusive game operation right from Zhuhai Qianyou, which is specialized in developing online games. According to the agreement, the Company will share revenues derived by the licensed games with Zhuhai Qianyou. note b In 2016, Shenzhen Onething Technology entered into a contract with Millet Communication Technology for the provision of bandwidth to Millet Communication Technology at a mutually agreed price. note c In 2014, the Group repurchased 3,860,733 10,879 10,334,679 29,121 5 1,125 37 3,012 100 54 146 |
Schedule of Amount Due to from Related Party | December 31, December 31, December 31, (In thousands) 2014 2015 2016 Amounts due to related parties Accounts payable to Zhuhai Qianyou 84 38 45 Long-term payable to Aiden & Jasmine Limited 1,125 1,179 1,233 Long-term payable to Vantage Point Global Limited 3,012 3,158 3,304 December 31, December 31, December 31, (In thousands) 2014 2015 2016 Amounts due from related parties Accounts receivable from Beijing Xiaomi 5 30 95 Accounts receivable from Millet Communication Technology Co., Ltd. 939 Accounts receivable from Beijing Millet Payment Technologies Limited 38 Accounts receivable from Shenzhen Xunlei Finance Information Service Co., Ltd. 5 Other receivable from Shenzhen Crystal Technology Co., Ltd. 6 Other receivable from Shenglong Zou 10 9 9 Other receivable from Chuan Wang 7 6 5 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Taxation [Abstract] | |
Schedule of Current and Deferred Portions of Income Tax Expense | Continuing operations Years ended December 31, (In thousands) 2014 2015 2016 Current income tax expenses 397 289 71 Deferred income tax benefits 66 (1,175) (1,335) Taxation for the year 463 (886) (1,264) |
Summary of Aggregate Amount and Per Share Effect of Tax Holiday | Years ended December 31, 2014 2015 2016 Aggregate dollar effect (in thousands) 2,784 (830) (1,430) Per share effectbasic 0.01 0.00 0.00 Per share effectdiluted 0.01 0.00 0.00 |
Reconciliation of Total Tax Expense (Benefit) | Continuing operations Years ended December 31, (In thousands) 2014 2015 2016 Income tax expense/(benefit) at PRC statutory rate (based on statutory tax rate applicable to enterprises in Shenzhen, China) 7,211 (438) (6,310) Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC (838) 2,400 2,145 Non-deductible expenses 714 14 12 Effect of Super Deduction available to Shenzhen Xunlei (1,365) - (901) Effect of tax holiday (4,613) (369) 1,430 Change in valuation allowance of deferred tax assets 291 4,750 6,396 Effect on deferred tax assets due to change in tax rates (103) (8) - Outside basis difference arising from VIE and its subsidiaries in the PRC 478 (2,174) (5,743) Expiration of tax loss 51 290 90 Others (1,363) (5,351) 1,617 Income tax expense/ (benefit) 463 (886) (1,264) |
Summary of Changes in Deferred Tax Asset and Liability Balances | December 31, December 31, (In thousands) 2015 2016 Deferred tax assets, current portion: Net operating loss carried forward (Note a) 417 1,276 Amortization of intangible assets arising from intragroup transactions (Note b) 95 51 Impairment of online game licenses 23 Impairment of long-term equity investment 115 Allowance for advance to suppliers 120 Valuation allowance (81) (106) Deferred tax assets, current portion, net 689 1,221 Deferred tax assets, non-current portion: Net operating loss carried forward(Note a) 13,016 12,093 Amortization of intangible assets arising from intragroup transactions (Note b) 54 Impairment of long-term equity investment 348 Allowance for advance to suppliers 576 Valuation allowance (4,477) (9,745) Deferred tax assets, non-current portion, net 8,593 3,272 Deferred tax liabilities, non-current portion: Outside basis difference (Note c) (6,378) (635) |
Summary of Net Operating Tax Loss Carryforwards | (In thousands) 2017 775 2018 5,795 2019 3,414 2020 559 2021 and thereafter 6,820 17,363 |
Schedule of Movement of Valuation Allowance | Years ended December 31, (In thousands) 2014 2015 2016 Beginning balance (291) (4,559) Additions (291) (4,268) (5,292) Write-off Ending balance (291) (4,559) (9,851) |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair value measurements [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value | Fair value measurements as at December 31, 2015 Quoted prices Significant in active market other Significant for identical observable observable (In thousands) Total (Level 1) (Level 2) (Level 3) Cash equivalent: time deposits with original maturities less than three months 314,357 314,357 Short term investments: Investments in financial instruments 70,328 70,328 384,685 384,685 Fair value measurements as at December 31, 2016 Quoted prices Significant in active market other Significant for identical observable observable (In thousands) Total (Level 1) (Level 2) (Level 3) Cash equivalent: time deposits with original maturities less than three months 115,944 115,944 Short term investments: Investments in financial instruments 143,131 143,131 259,075 259,075 |
Other income, net (Tables)
Other income, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other income, net [Abstract] | |
Schedule of Other Income, Net | Continuing Operations Years ended December 31, (In thousands) 2014 2015 2016 Subsidy income 2,236 1,902 2,358 Fair value changes of warrants liabilities 8,054 Investment income from short-term investments 3,471 3,666 4,054 Dilution gains arising from deemed disposal of investment (note 11) 449 702 689 Investment income-disposal of long-term investment (note 11) 626 Investment loss-impairment of long-term investment (note 11) (802) (1,654) Exchange losses (176) (2,771) (354) Settlement income 489 755 326 Others (557) 175 458 13,966 3,627 6,503 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Rental commitments [Member] | |
Future Minimum Payments under Non-Cancellable Leases | (In thousands) 2017 2,969 2018 2,573 2019 1,009 6,551 |
Bandwidth Lease Commitments [Member] | |
Future Minimum Payments under Non-Cancellable Leases | (In thousands) 2017 18,651 2018 322 18,973 |
Certain risks and concentrati62
Certain risks and concentration (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Certain risks and concentration [Abstract] | |
Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries | As of December 31, (In thousands) 2015 2016 Current assets: Cash and cash equivalents 32,461 40,393 Short-term investments 69,522 28,749 Accounts receivable, net 11,573 14,824 Due from related parties 30 1,083 Deferred tax assets 351 971 Inventories 480 374 Prepayments and other current assets 31,659 15,123 Total current assets 146,076 101,517 Non-current assets: Equity method investments 9,884 25,479 Deferred tax assets 6,791 1,849 Property and equipment, net 17,991 20,059 Construction in progress 14 574 Intangible assets, net 14,297 11,083 Goodwill 21,896 20,497 Other long-term prepayments 7,430 1,187 Total non-current assets 78,303 80,728 Total assets 224,379 182,245 Current liabilities: Accounts payable (note a) 33,262 44,162 Due to a related party 38 45 Deferred revenue and income, current portion 24,902 24,260 Income tax payable 2,407 2,253 Accrued liabilities and other payables (note b) 131,312 104,114 Total current liabilities 191,921 174,834 Non-current liabilities: Deferred revenue and income, non-current portion 4,751 3,539 Total non-current liabilities 4,751 3,539 Total liabilities 196,672 178,373 Note a. The balance included inter-companies balances with the Company and its subsidiaries of USD 11,626 9,360 Note b. The balance included inter-companies balances with the Company and its subsidiaries of USD 105,872 91,477 Years ended December 31, (In thousands) 2014 2015 2016 Net revenue from continuing operations 132,515 129,198 156,192 Net income / (loss) attributable to Xunlei Limited 12,677 (6,408) (32,402) Years ended December 31, (In thousands) 2014 2015 2016 Net cash provided by operating activities 70,822 41,723 3,565 Net cash (used in)/provided by investing activities (78,335) (51,721) 1,859 Net cash provided by financing activities 856 1,055 2,508 (6,657) (8,943) 7,932 |
Kingsoft acquisition in 2014 (T
Kingsoft acquisition in 2014 (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The allocation of the purchase price at the date of acquisition is as follows: (In thousands) Property and equipment 255 Intangible assets Trademarks 6,120 Technology (including right-to-use) 2,381 Non-compete agreement 1,490 Goodwill 23,057 33,303 |
Additional information_ conde64
Additional information: condensed financial statements of the Company (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Additional information: condensed financial statements of the Company [Abstract] | |
Schedule of Condensed Balance Sheets | Condensed balance sheets December 31, December 31, (In thousands) 2015 2016 Assets Current assets: Cash and cash equivalents 292,175 273,160 Due from subsidiaries and consolidated VIEs 92,864 101,130 Prepayments and other current assets 1,090 348 Total current assets 386,129 374,638 Non-current assets: Property, equipment and software, net 3 Investments in subsidiaries and consolidated VIEs 68,481 43,447 Total assets 454,610 418,088 Liabilities Current liabilities: Accounts payable 55 55 Due to subsidiaries and consolidated VIEs 388 1,862 Deferred revenue and income, current portion 211 272 Accrued liabilities and other payables 1,393 1,695 Total current liabilities 2,047 3,884 Non-current liabilities: Deferred revenue and income, non-current 632 543 Due to related parties, non-current portion 4,337 4,537 Other long-term payable 845 886 Total liabilities 7,861 9,850 Commitments and contingencies Shareholders’ equity Common shares 85 83 Treasury shares 29,558,094 shares as at December 31, 2015 and 38,332,209 shares as at December 31, 2016 7 9 Other shareholders’ equity 446,657 408,146 Total Xunlei Limited’s shareholders’ equity 446,749 408,238 Total liabilities and shareholders’ equity 454,610 418,088 |
Schedule of Condensed Statements of Operations | Condensed statements of operations Years ended December 31, (In thousands) 2014 2015 2016 Revenues Cost of revenues (1,673) (131) Gross loss (1,673) (131) Operating expenses Research and development expenses Sales and marketing expenses (10) General and administrative expenses (996) (1,314) (1,193) Total operating expenses (996) (1,314) (1,203) Operating loss (2,669) (1,445) (1,203) Interest income 6,171 5,318 1,521 Interest expense (163) (239) (239) Other income, net 7,602 (3,261) 715 Loss from subsidiaries and consolidated VIEs (129) (13,540) (24,905) Income / (loss) before income tax 10,812 (13,167) (24,111) Income tax Net income / (loss) 10,812 (13,167) (24,111) Net income attributable to the non-controlling interest Net income / (loss) attributable to Xunlei Limited’s common shareholders 10,812 (13,167) (24,111) |
Schedule of Condensed Statement of Cash Flows | Condensed statement of cash flows Years ended December 31, (In thousands) 2014 2015 2016 Cash flows from operating activities Net cash used in operating activities (41,485) (26,069) (20,312) Cash flows from investing activities Net cash (used in) / generated from investing activities (10,333) 3,812 15,557 Cash flows from financing activities Net cash generated from / (used in) financing activities 332,412 4,975 (14,260) Net increase / (decrease) in cash and cash equivalents 280,594 (17,282) (19,015) Cash and cash equivalents at beginning of year 28,863 309,457 292,175 Effect of exchange rates on cash and cash equivalents Cash and cash equivalents at end of year 309,457 292,175 273,160 |
Organization and Nature of Op65
Organization and Nature of Operations - Additional Information (Detail) ¥ / shares in Units, $ in Thousands, ¥ in Millions | Jun. 24, 2014USD ($)shares | Nov. 30, 2014shares | May 31, 2011CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥)¥ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Variable Interest Entity [Line Items] | |||||||
Date of incorporation | Feb. 3, 2005 | Feb. 3, 2005 | |||||
Number of year's power of attorney retained | 10 years | 10 years | |||||
Percentage of pre-tax operating profit | 80.00% | 80.00% | |||||
Service fees payable | $ | $ 1,088 | $ 1,235 | $ 1,228 | ||||
Number of securities issued | shares | 10,000,000 | ||||||
Net proceeds received from IPO | $ | $ 93,881 | ||||||
American Depository Shares (ADSs) [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Date of completion of IPO | Jun. 24, 2014 | Jun. 24, 2014 | |||||
Number of securities issued | shares | 8,412,250 | ||||||
Number of shares equivalent to each ADS | 5 | ||||||
Net proceeds received from IPO | $ | $ 89,665 | ||||||
Exclusive Technology Support and Services Agreement [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Percentage of pre-tax operating profit | 20.00% | 20.00% | |||||
Exclusive Technology Consulting and Training Agreement [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Percentage of pre-tax operating profit | 20.00% | 20.00% | |||||
Software and Proprietary Technology License Contract [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Percentage of pre-tax operating profit | 40.00% | 40.00% | |||||
Giganology (Shenzhen) Co. Ltd [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Date of incorporation | Jun. 30, 2005 | Jun. 30, 2005 | |||||
Termination of agreement, notice period | 30 days | 30 days | |||||
Automated extended period of agreement | 10 years | 10 years | |||||
Agreement expiration date | 2,022 | 2,022 | |||||
Giganology (Shenzhen) Co. Ltd [Member] | Exclusive Technology Support and Services Agreement [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Term agreement expiration year | 2,025 | 2,025 | |||||
Giganology (Shenzhen) Co. Ltd [Member] | Exclusive Technology Consulting and Training Agreement [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Term agreement expiration year | 2,025 | 2,025 | |||||
Shenzhen Xunlei and Xunlei Computer [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
License agreement, term | 2 years | 2 years | |||||
Agreement between Giganology Shenzhen and Mr. Sean Shenglong Zou [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Agreement term years | 2 years | 2 years | |||||
Loan agreements description | The term of this agreement last 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 | The term of this agreement last 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 | |||||
Additional interest-free loans | ¥ 20 | ||||||
Increase in registered capital | 30 | ||||||
Agreement between Giganology Shenzhen and Shareholders of Shenzhen Xunlei [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Interest-free loans | ¥ 9 | ||||||
Agreement term years | 2 years | 2 years | |||||
Loan agreements description | The term of these agreements last for two years from the date it was signed, and will be automatically extended afterwards on a yearly basis until each shareholder of Shenzhen Xunlei has repaid the loans in its entirety in accordance with the loan agreement | The term of these agreements last for two years from the date it was signed, and will be automatically extended afterwards on a yearly basis until each shareholder of Shenzhen Xunlei has repaid the loans in its entirety in accordance with the loan agreement | |||||
Agreement between Giganology Shenzhen and Shenzhen Xunlei [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Increase in registered capital | ¥ 20 | ||||||
Term agreement expiration year | 2,016 | 2,016 | |||||
Call Option Agreement [Member] | Giganology (Shenzhen) Co. Ltd [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Agreement expiration date | 2,022 | 2,022 | |||||
Outstanding share, purchase price per share | ¥ / shares | ¥ 1 |
Organization and Nature of Op66
Organization and Nature of Operations - Accompanying Consolidated Financial Statements Include Financial Statements of Company, Subsidiaries, Variable Interest Entity ("VIE") and VIE's Subsidiaries (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |
Date of incorporation | Feb. 3, 2005 |
Shenzhen Xunlei Networking Technologies, Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | China |
Date of incorporation | Jan. 31, 2003 |
Relationship | VIE |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of software, provision of online and related advertising, membership subscription and online game services; as well as sales of software licenses |
Giganology (Shenzhen) Co. Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | China |
Date of incorporation | Jun. 30, 2005 |
Relationship | Subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of computer software and provision of information technology services to related companies |
Shenzhen Xunlei Wangwenhua Co Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | China |
Date of incorporation | Dec. 31, 2005 |
Relationship | VIEs subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of software for related companies |
Xunlei Networking Technologies Beijing Co Ld [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | China |
Date of incorporation | Jun. 30, 2009 |
Relationship | VIEs subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of software for related companies |
Xunlei Zhuolian Software Co Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | China |
Date of incorporation | Jan. 31, 2010 |
Relationship | VIEs subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Provision of software technology development for related companies |
Xunlei Games Development (Shenzhen) Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | China |
Date of incorporation | Feb. 28, 2010 |
Relationship | VIE’s subsidiary |
Percentage of direct or indirect economic ownership | 70.00% |
Principal activities | Development of online game and computer software for related companies and provision of advertising services |
Xunlei Network Technologies Limited BVI [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | British Virgin Islands |
Date of incorporation | Feb. 28, 2011 |
Relationship | Subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Holding company |
Xunlei Network Technologies Limited HK [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | Hong Kong |
Date of incorporation | Mar. 31, 2011 |
Relationship | Subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development computer software of related companies and provision of advertising services |
Xunlei Computer (Shenzhen) Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | China |
Date of incorporation | Nov. 30, 2011 |
Relationship | Subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of computer software and provision of information technology services to related companies |
Shenzhen Onething Technologies Co Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | China |
Date of incorporation | Sep. 30, 2013 |
Relationship | VIEs subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of computer software and provision of information technology services to related companies |
Beijing Xunjing Technologies Co Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | China |
Date of incorporation | Oct. 31, 2015 |
Relationship | VIEs subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of computer software and provision of information technology services |
Shenzhen Crystal Interactive Technologies Co [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | China |
Date of incorporation | May 31, 2016 |
Relationship | VIEs subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of computer software and provision of information technology services |
Shenzhen Xunlei Venture Capital Partnership Enterprise [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | China |
Date of incorporation | Jun. 30, 2016 |
Relationship | VIEs subsidiary |
Percentage of direct or indirect economic ownership | 99.00% |
Principal activities | Investments in industries and consultation in investments |
Shenzhen Xunlei Kankan Information Technologies Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | China |
Date of incorporation | Aug. 31, 2008 |
Relationship | VIEs subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of software for related companies (note a) |
Summary of Significant Accoun67
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies and General Information [Line Items] | ||||
Allowance for doubtful accounts | $ 119 | $ 126 | $ 131 | |
Impairment of long-term investments | $ 1,660 | 800 | ||
Fair value of a reporting unit less than carrying amount, including goodwill | 50.00% | |||
Goodwill impairment losses | $ 0 | |||
Sales rebates provided to the agencies and advertisers | 15 | 1,179 | 5,005 | |
Content sub-licensing revenue from discontinued operations | 2,929 | 9,218 | ||
Net gains from barter transactions | 137 | 1,556 | ||
Net proceeds from barter transactions | 409 | 4,428 | ||
Barter transaction cost | 247 | 2,606 | ||
Business tax and surcharge on barter transactions | 25 | 266 | ||
External advertising and market promotion expenses from continuing operations | 10,008 | 8,089 | 5,978 | |
Capitalization of software development costs | ||||
Interest and penalties net of tax recognized | $ 0 | 0 | 0 | |
Value added tax on revenues | 17.00% | |||
Value added tax on sub-licensing revenues | 6.00% | |||
Employee benefit costs | $ 9,237 | $ 5,481 | $ 3,818 | |
Statutory general reserve rate | 10.00% | |||
Statutory general reserve rate of registered capital | 50.00% | |||
Dividends declared | $ 0 | $ 0 | $ 0 | |
Fair Value Inputs, Discount Rate | 18.20% | |||
Minimum [Member] | ||||
Accounting Policies and General Information [Line Items] | ||||
Amortization percentage of intangible assets | 70.00% | |||
Maximum [Member] | ||||
Accounting Policies and General Information [Line Items] | ||||
Amortization percentage of intangible assets | 90.00% | |||
Fair Value Discounted Cash Flow, Estimated Annual Growth Rate | 2.00% | |||
Online game licenses [Member] | ||||
Accounting Policies and General Information [Line Items] | ||||
Other intangible assets, amortization period | 3 years | |||
Impairment of intangible assets | $ 721 | $ 770 | $ 808 | |
Acquired computer software [Member] | ||||
Accounting Policies and General Information [Line Items] | ||||
Other intangible assets, amortization period | 5 years | |||
Internal use software development costs [Member] | ||||
Accounting Policies and General Information [Line Items] | ||||
Other intangible assets, amortization period | 5 years | |||
Domain name [Member] | ||||
Accounting Policies and General Information [Line Items] | ||||
Other intangible assets, amortization period | 5 years | |||
Land use right [Member] | ||||
Accounting Policies and General Information [Line Items] | ||||
Other intangible assets, amortization period | 30 years |
Summary of Significant Accoun68
Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Life (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Servers and network equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Residual rate | 5.00% |
Computer equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Residual rate | 5.00% |
Furniture, fittings and office equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Residual rate | 5.00% |
Motor vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Residual rate | 5.00% |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | shorter of lease term or 3 years |
Estimated useful lives | 3 years |
Summary of Significant Accoun69
Summary of Significant Accounting Policies - Analysis of Different Types of Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenue from continuing operations | ||||
Subscription revenue | $ 90,163 | $ 82,435 | $ 98,189 | |
Advertising revenue | 16,874 | 4,802 | 5,834 | |
Other internet value-added services | [1] | 49,929 | 42,759 | 31,789 |
Total | $ 156,966 | $ 129,996 | $ 135,812 | |
[1] | Other internet value-added services mainly comprise revenue from online game, traffic referral programs, technical services regarding online acceleration, online sales revenue, sales of software licenses, cloud computing revenue (including revenue from sale of ZQB and idle bandwidth) and live video. |
Summary of Significant Accoun70
Summary of Significant Accounting Policies - Schedule of Balances of Registered Capital, Additional Paid-in-Capital and Statutory Reserves (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies and General Information [Line Items] | ||
Additional paid-in capital | $ 453,347 | $ 458,270 |
Statutory reserves | 5,132 | 5,132 |
China [Member] | ||
Accounting Policies and General Information [Line Items] | ||
Paid-in capital | 118,733 | 112,435 |
Additional paid-in capital | 161 | 161 |
Statutory reserves | 5,132 | 5,132 |
Total | $ 124,026 | $ 117,728 |
Discontinued operations (Narrat
Discontinued operations (Narrative) (Details) ¥ in Thousands, $ in Thousands | Jul. 15, 2015USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2015CNY (¥) |
Discontinued operations [Line Items] | |||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 1,505 | ||
Xunlei Kankan [Member] | |||
Discontinued operations [Line Items] | |||
Sales price | $ 21,183 | ¥ 130,000 |
Discontinued operations (Schedu
Discontinued operations (Schedule of Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Results of the discontinued operation | |||
Income taxes benefits/(expenses) | $ 36 | $ (2,048) | $ 1,923 |
Xunlei Kankan [Member] | |||
Results of the discontinued operation | |||
Revenues, net of rebates and discounts | 15,677 | 47,075 | |
Business taxes and surcharges | (447) | (1,480) | |
Net revenues | 15,230 | 45,595 | |
Cost of revenues | (13,240) | (42,704) | |
Gross profit | 1,990 | 2,891 | |
Research and development expenses | 5 | (3,245) | (6,035) |
Sales and marketing expenses | (27) | (7,384) | (15,726) |
General and administrative expenses | (221) | (3,051) | (3,016) |
Total operating expenses | (243) | (13,680) | (24,777) |
Net gain from exchanges of content copyrights | 137 | 1,556 | |
Operating loss | (243) | (11,553) | (20,330) |
Gain on disposal of Kankan | 1,505 | ||
Income taxes benefits/(expenses) | 36 | (2,048) | 1,923 |
Loss from discontinued operations | (207) | (12,096) | (18,407) |
Assets | |||
Accounts receivable, net | 23,741 | ||
Prepayments and other current assets | 670 | ||
Copyrights related to content-current portion | 16,013 | ||
Property and equipment, net | 1,111 | ||
Intangible assets | 4,997 | ||
Prepayment for content | 456 | ||
Other long-term prepayments and receivables | 57 | ||
Total assets held for sale | 47,045 | ||
Current liabilities | |||
Accounts payables | 25,267 | ||
Deferred revenue, current portion | 1,018 | ||
Accrued liabilities and other payables | 1,082 | ||
Total liabilities held for sale | 27,367 | ||
Cash flows generated from/ (used in) discontinued operations | |||
Net cash generated from/(used in) operating activities | (215) | (1,554) | 2,293 |
Net cash (used in)/generated from investing activities | 9,135 | (34,661) | |
Net cash used in financing activities | |||
Net cash flow for the year | $ (215) | $ 7,581 | $ (32,368) |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Line Items] | |
Cash and cash equivalents maturity period | 3 months |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash on Hand and Cash Held at Bank (Detail) ¥ in Thousands, HKD in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016HKD | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015HKD | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Cash and Cash Equivalents [Line Items] | ||||||||
Cash on hand and cash held at bank | $ 199,504 | $ 361,777 | $ 404,275 | $ 93,906 | ||||
RMB [Member] | ||||||||
Cash and Cash Equivalents [Line Items] | ||||||||
Cash on hand and cash held at bank | ¥ 538,660 | 77,651 | ¥ 606,845 | 93,454 | ||||
USD [Member] | ||||||||
Cash and Cash Equivalents [Line Items] | ||||||||
Cash on hand and cash held at bank | 121,726 | 268,198 | ||||||
HKD [Member] | ||||||||
Cash and Cash Equivalents [Line Items] | ||||||||
Cash on hand and cash held at bank | $ 127 | HKD 987 | $ 125 | HKD 969 |
Cash and Cash Equivalents - S75
Cash and Cash Equivalents - Summary of Time Deposits (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) |
Cash and Cash Equivalents [Line Items] | ||||
Time deposits | $ 115,944 | $ 314,357 | ||
RMB [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Time deposits | ¥ 349,099 | 53,760 | ||
USD [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Time deposits | $ 115,944 | $ 260,597 |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Short-Term Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Investments [Line Items] | |||
Short-term investments | $ 181,960 | $ 70,328 | |
Time deposits [Member] | |||
Schedule of Investments [Line Items] | |||
Short-term investments | 38,829 | 0 | |
Investments in financial instruments [Member] | |||
Schedule of Investments [Line Items] | |||
Short-term investments | [1] | $ 143,131 | $ 70,328 |
[1] | the investments were issued by commercial banks in PRC with a variable interest rate indexed to performance of underlying assets. Since these investments’ maturity dates are within one year, they are classified as short-term investments. |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Short-term investments' maturity period | 1 year |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets held for sale | ||||
Accounts receivable | $ 14,655 | $ 11,392 | ||
Less: Allowance for doubtful accounts | (119) | (126) | $ (131) | |
Accounts receivable, net | $ 14,536 | $ 11,266 |
Accounts Receivable, Net - Sc79
Accounts Receivable, Net - Schedule of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Balance at beginning of the year | $ 126 | $ 131 | |
Additions | 4 | 523 | |
Write-off | (393) | ||
Exchange difference | (7) | (9) | 1 |
Balance at end of the year | $ 119 | $ 126 | $ 131 |
Accounts Receivable, Net - Addi
Accounts Receivable, Net - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable reserved | $ | $ 0.1 | $ 0.1 |
Number of top customers | Customer | 10 | |
Credit concentration risk [Member] | Accounts receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, percentage | 76.00% | 39.00% |
Prepayments and other assets -
Prepayments and other assets - Schedule of Prepayments and Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 31, 2016 | Dec. 31, 2015 | |||
Current portion: | ||||||
Advance to suppliers | $ 2,392 | $ 882 | ||||
Interest-free loans to employees | [1] | 3,964 | 3,200 | |||
Advance to employees for business purposes | 351 | 957 | ||||
Interest receivable | 210 | 564 | ||||
Rental and other deposits | 1,014 | 224 | ||||
Prepayment for share repurchase plan | [2] | $ 700 | 712 | [2] | ||
Prepaid management insurance | 145 | 209 | ||||
Receivable from Nesound | [3] | 3,748 | 4,004 | |||
Prepayment for taxation | 1,392 | 2,041 | ||||
Others | 377 | 275 | ||||
Total of prepayments and other current assets | 13,593 | 13,068 | ||||
Non-current portion: | ||||||
Long term receivable | 1,812 | |||||
Low-interest loans to employees, non-current portion | [4] | 697 | 833 | |||
Total of long-term prepayments and other assets | 1,187 | 7,431 | ||||
Online game licenses [Member] | ||||||
Non-current portion: | ||||||
Prepayments for intangible assets | $ 490 | $ 4,786 | ||||
[1] | The Group had entered into loan contracts with certain employees as at December 31, 2015 and 2016, under which the Group provided interest-free loans to these employees. The loan amounts vary amongst different employees and are repayable on demand. | |||||
[2] | As of December 31, 2015, the prepayment for share repurchase plan represented prepayment made to a securities broker for a share repurchase program up to USD 20 million announced in December 2014. In January 2016, the Company announced another share repurchase program to purchase up to USD 20 million shares and prepaid USD 0.7 million to a securities broker. As of December 31, 2016, all the prepayment has been utilized. | |||||
[3] | The Group sold Kankan to Nesound in July 2015. As at December 31, 2016, there is a balance receivable amounted to USD 3,748 thousand which was past due. The Group have brought the claim against Nesound to the arbitration tribunal and considered that the balances can be collected in full. | |||||
[4] | The Group had entered into loan contracts with certain employees as at December 31, 2015 and 2016, under which the Group provided low-interest loans to these employees. The loan amounts vary amongst different employees and are repayable in equal instalments on a monthly basis over the term of 10 years. |
Prepayments and other assets 82
Prepayments and other assets - Schedule of Prepayments and Other Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Low-interest employee loan repayable period | 10 years | |||||
Share repurchase program amount | $ 20,000 | |||||
Prepaid amount to security broker | [1] | $ 700 | $ 712 | [1] | ||
Stock Repurchase Program, Prepayment to Broker | $ 20,000 | |||||
[1] | As of December 31, 2015, the prepayment for share repurchase plan represented prepayment made to a securities broker for a share repurchase program up to USD 20 million announced in December 2014. In January 2016, the Company announced another share repurchase program to purchase up to USD 20 million shares and prepaid USD 0.7 million to a securities broker. As of December 31, 2016, all the prepayment has been utilized. |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 48,117 | $ 42,556 |
Less: Accumulated depreciation | (27,675) | (24,534) |
Sub-total | 20,442 | 18,022 |
Construction in progress | 574 | 14 |
Total | 21,016 | 18,036 |
Servers and network equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 42,641 | 37,332 |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 1,538 | 1,544 |
Furniture, fittings and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 845 | 856 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 299 | 320 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 2,794 | $ 2,504 |
Property and Equipment - Summar
Property and Equipment - Summary of Depreciation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 6,165 | $ 5,646 | $ 6,500 |
Cost of Revenue [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 5,848 | 5,003 | 5,652 |
General and administrative expenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 306 | 628 | 715 |
Sales and marketing expenses [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 5 | 7 | 123 |
Research and Development Expense [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 6 | $ 8 | $ 10 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Impairment loss | $ 0 | $ 0 | $ 0 |
Intangible assets, net - Schedu
Intangible assets, net - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 20,648 | $ 21,732 | |
Amortization | (9,181) | (7,529) | |
Impairment | (721) | (770) | |
Net book value | 10,746 | 13,433 | |
Land use right [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 4,796 | 5,123 | |
Amortization | (543) | (409) | |
Impairment | |||
Net book value | 4,253 | 4,714 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 5,441 | 5,812 | |
Amortization | (1,814) | (1,107) | |
Impairment | |||
Net book value | 3,627 | 4,705 | |
Non-compete agreement [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 1,325 | 1,415 | |
Amortization | (773) | (472) | |
Impairment | |||
Net book value | 552 | 943 | |
Technology (including right-to-use) [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 2,117 | 2,261 | |
Amortization | (617) | (377) | |
Impairment | |||
Net book value | 1,500 | 1,884 | |
Acquired computer software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 884 | 619 | |
Amortization | (420) | (255) | |
Impairment | |||
Net book value | 464 | 364 | |
Internal use software development costs [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 631 | 675 | |
Amortization | (631) | (641) | |
Impairment | |||
Net book value | 0 | 34 | |
Online game licenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | [1] | 5,454 | 5,827 |
Amortization | [1] | (4,383) | (4,268) |
Impairment | [1] | (721) | (770) |
Net book value | [1] | $ 350 | $ 789 |
[1] | As of December 31, 2015 and 2016, full provision for impairment has been provided for an online game license due to significant under-performance in the past. |
Intangible assets, net - Sche87
Intangible assets, net - Schedule of Amortization Expense Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 2,223 | $ 2,668 | $ 2,055 |
Cost of Revenues [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 403 | 693 | 1,141 |
General and administrative expenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 323 | 386 | 372 |
Research and development expenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 1,497 | $ 1,589 |
Intangible assets, net - Sche88
Intangible assets, net - Schedule of Estimated Aggregate Amortization Expense (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | $ 2,057 |
2,018 | 1,623 |
2,019 | 1,251 |
2,020 | 1,233 |
2021 and thereafter | $ 4,582 |
Intangible assets, net - Sche89
Intangible assets, net - Schedule of Weighted Average Amortization Periods of Intangible Assets (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization periods of intangible assets | 11 years | 11 years |
Land use right [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization periods of intangible assets | 30 years | 30 years |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization periods of intangible assets | 7 years | 7 years |
Non-compete agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization periods of intangible assets | 4 years | 4 years |
Technology (including right-to-use) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization periods of intangible assets | 8 years | 8 years |
Acquired computer software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization periods of intangible assets | 5 years | 5 years |
Internal use software development costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization periods of intangible assets | 5 years | 5 years |
Online game licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization periods of intangible assets | 3 years | 3 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventories [Line Items] | |||
Inventories | $ 374 | $ 480 | |
ZQB [Member] | |||
Inventories [Line Items] | |||
Inventories | [1] | 31 | 92 |
XZB [Member] | |||
Inventories [Line Items] | |||
Inventories | [2] | 152 | 76 |
Online Shopping Mall Inventories [Member] | |||
Inventories [Line Items] | |||
Inventories | [3] | 47 | 153 |
Others [Member] | |||
Inventories [Line Items] | |||
Inventories | $ 144 | $ 159 | |
[1] | ZQB, a proprietary hardware connected to users’ network routers, can allocate users’ idle uplink capacity to the Company for further allocation to internet content providers. | ||
[2] | XZB is a personal cloud hardware, which can remotely control downloading through mobile phones or computers, to expand storage of terminals unlimitedly and share data in cloud storage. | ||
[3] | online shopping mall inventories include Xiaomi TV box, gaming discs etc. |
Long-term investments - Schedul
Long-term investments - Schedule of Long-Term Investments (Detail) $ in Thousands, ¥ in Millions | 12 Months Ended | ||||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | ||||
Equity method investments: | |||||||
Balance at beginning of the year | $ 2,162 | $ 2,965 | |||||
Additions | [1] | 1,442 | |||||
Disposal | [2] | (701) | |||||
Share of loss from equity investees | (195) | (12) | $ (259) | ||||
Dilution gains arising from deemed disposal of investments | 689 | [3] | 702 | [3] | 449 | ||
Transfer to cost method investments | (786) | (1,349) | |||||
Exchange differences | (132) | (144) | |||||
Balance at end of the year | 1,790 | 2,162 | 2,965 | ||||
Cost method investments: | |||||||
Balance at beginning of the year | 9,157 | 2,533 | |||||
Additions | [1],[4] | 32,707 | 6,506 | ||||
Disposal | [2] | (2,220) | |||||
Dilution gains arising from deemed disposal of investment | [2],[3] | 689 | |||||
Transfer from equity method investments | 786 | 1,349 | |||||
Exchange difference | (463) | (429) | |||||
Less: impairment loss on long-term investments | (1,654) | (802) | ¥ (5) | ||||
Balance at end of the year | 39,002 | 9,157 | $ 2,533 | ||||
Total long-term investments | $ 40,792 | $ 11,319 | |||||
[1] | In 2016, the Group made an equity investment in a privately-held company, Big Data, of USD 1,442 thousand for 43.16% equity interest. The Group classified Big Data as an equity method investment as it had only significant influence instead of control over Big Data. In 2016, the Group also made equity investments in seven unrelated privately-held companies for aggregate consideration of USD 28,242 thousand. The shares held by the Group are not in-substance common stock and therefore the Group accounted for these investments according to ASC 320 as equity activities using the cost method. In addition, the Group increased its investment in Cloudtropy from 1.13% to 9.69% equity interest at a consideration of USD 3,780 thousand. The Group also participated in a new round of financing of Xiamen Diensi to the extent of USD 700 thousand while the Group’s equity interest in Xiamen Diensi diluted from 15% to 14.25% by other investors. | ||||||
[2] | In January 2016, the Group disposed of 9% interest in Guangzhou Yuechuan with a carrying value of USD 701 thousand at a consideration of approximately USD 1.3 million. As a result of the disposal, the Group’s interest in Guangzhou Yuechuan decreased from 19.13% to 10.13% and transferred this investment from equity method to cost method as the Group no longer has significant influence over this investee. At the same time, Guangzhou Yuechuan also issued certain new shares to a third party and the Group’s interest in Guangzhou Yuechuan diluted from 10.13% to 9.3% with a dilution gain of USD 69 thousand arising from the deemed disposal. In addition, the Group also disposed of its entire interest in Nanjing Qianyi with a carrying value of USD2.16 million and RenJianRenAi with a carrying value of USD58 thousand (after an impairment of USD230 thousand made during 2016 against its carrying value). These disposals resulted in a disposal gain of USD 626 thousand recognized in the other income, net (note 25). | ||||||
[3] | In May 2014, the Group obtained the right to appoint a director to Chengdu Diting and thus had one out of five seats on the board of directors of this investee. Given the existence of significant influence, the Group started to apply equity method in May 2014 although the Group's ownership interest in Chengdu Diting decreased from 19.9% to 16.58% because Chengdu Diting issued new shares to a third party for a total consideration of RMB 10 million (USD 1,627 thousand). In April of 2015, the new investor of Chengdu Diting injected capital of RMB 39.07 million (USD 6.39 million). As a result of the transaction, the Group 's ownership interest in Chengdu Diting was diluted from 16.58% to 13.27%. So the recognition of Chengdu Diting's ownership for the Group transferred from equity method to cost method. The Group recorded a dilution gain of RMB 4.38 million (USD 702 thousand) arising from the sale of shares by the investee to third parties at a price in excess of the per share carrying value of the shares owned by the Group in 2015. | ||||||
[4] | In 2015, the Group made equity investments in five more unrelated privately-held companies. The shares held by the Group are not in-substance common stock and therefore the Group accounted for these investments according to ASC 320 as equity activities using the cost method. In August 2015, the Group increased investment of USD 39 thousand to purchase 25 thousand shares of Shenzhen Kushiduo. As a result, the Group's ownership interest in Shenzhen Kushiduo increased from 10% to 12.5%. |
Long-term investments - Sched92
Long-term investments - Schedule of Equity Investments, Percentage of Ownership of Common Share (Detail) | Dec. 31, 2016 | Dec. 31, 2015 | |
Zhuhai Qianyou [Member] | |||
Equity method investments: | |||
Equity method investments, Percentage of ownership of common share | 19.00% | 19.00% | |
Guangzhou Yuechuan [Member] | |||
Equity method investments: | |||
Equity method investments, Percentage of ownership of common share | [1] | 10.13% | 19.13% |
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [1] | 9.30% | 10.13% |
Chengdu Diting [Member] | |||
Equity method investments: | |||
Equity method investments, Percentage of ownership of common share | [2] | 12.74% | 13.27% |
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 13.27% | 16.58% | |
Shenzhen Kushiduo [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [2],[3] | 10.00% | 12.50% |
Shanghai Guozhi [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 16.80% | 21.00% | |
Guangzhou Wucai [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [4] | 10.00% | |
Guangzhou Hongsi [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | 19.90% | 19.90% | |
Tianjin Kunzhiyi [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [2] | 19.99% | |
Suzhou Heidisi [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [3],[4] | 19.90% | |
Xiamen Diensi [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [2],[3],[5] | 14.25% | 15.00% |
Nanjing Qianyi [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [1],[3] | 20.00% | |
11.2 Capital [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [3] | 2.05% | 2.24% |
Cloudtropy [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [3],[5] | 9.69% | 1.13% |
Shenzhen Xunlei [Member] | |||
Equity method investments: | |||
Equity method investments, Percentage of ownership of common share | [5] | 43.16% | |
Shanghai Lexiang [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [5] | 15.00% | |
Hangzhou Feixiang [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [5] | 20.00% | |
Shenzhen Meizhi Interactive Technology Co Ltd [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [2],[5] | 8.13% | |
Beijing Yunhui [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [5] | 7.50% | |
Arashi Vision [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [5] | 11.46% | |
Cloudin Technology [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | [5] | 4.47% | |
Shenzhen RenJian RenAi Networking Technology Co Ltd [Member] | |||
Cost method investments: | |||
Cost method investments, Percentage of ownership of common share | |||
[1] | In January 2016, the Group disposed of 9% interest in Guangzhou Yuechuan with a carrying value of USD 701 thousand at a consideration of approximately USD 1.3 million. As a result of the disposal, the Group’s interest in Guangzhou Yuechuan decreased from 19.13% to 10.13% and transferred this investment from equity method to cost method as the Group no longer has significant influence over this investee. At the same time, Guangzhou Yuechuan also issued certain new shares to a third party and the Group’s interest in Guangzhou Yuechuan diluted from 10.13% to 9.3% with a dilution gain of USD 69 thousand arising from the deemed disposal. In addition, the Group also disposed of its entire interest in Nanjing Qianyi with a carrying value of USD2.16 million and RenJianRenAi with a carrying value of USD58 thousand (after an impairment of USD230 thousand made during 2016 against its carrying value). These disposals resulted in a disposal gain of USD 626 thousand recognized in the other income, net (note 25). | ||
[2] | In May 2014, the Group obtained the right to appoint a director to Chengdu Diting and thus had one out of five seats on the board of directors of this investee. Given the existence of significant influence, the Group started to apply equity method in May 2014 although the Group's ownership interest in Chengdu Diting decreased from 19.9% to 16.58% because Chengdu Diting issued new shares to a third party for a total consideration of RMB 10 million (USD 1,627 thousand). In April of 2015, the new investor of Chengdu Diting injected capital of RMB 39.07 million (USD 6.39 million). As a result of the transaction, the Group 's ownership interest in Chengdu Diting was diluted from 16.58% to 13.27%. So the recognition of Chengdu Diting's ownership for the Group transferred from equity method to cost method. The Group recorded a dilution gain of RMB 4.38 million (USD 702 thousand) arising from the sale of shares by the investee to third parties at a price in excess of the per share carrying value of the shares owned by the Group in 2015. | ||
[3] | In 2015, the Group made equity investments in five more unrelated privately-held companies. The shares held by the Group are not in-substance common stock and therefore the Group accounted for these investments according to ASC 320 as equity activities using the cost method. In August 2015, the Group increased investment of USD 39 thousand to purchase 25 thousand shares of Shenzhen Kushiduo. As a result, the Group's ownership interest in Shenzhen Kushiduo increased from 10% to 12.5%. | ||
[4] | In September of 2015, Tianjin Kunzhiyi suffered from financial difficulties and lost most of its core R&D staff. As a result, new games couldn't be promoted as committed in investment agreement with the Group. The Group recognized impairment of RMB 5 million (USD 802 thousand) for its interest in Tianjin Kunzhiyi as considered necessary. In 2016, in addition to impairment of RenJian RenAi (note 11 (iii)), the Group also recognized impairment against its investments in Guangzhou Wucai, Suzhou Heidisi, and Shanghai Guozhi of USD 301 thousand, USD 597 thousand and USD 526 thousand, respectively after considering the latest operation status and financial and liquidity position. | ||
[5] | In 2016, the Group made an equity investment in a privately-held company, Big Data, of USD 1,442 thousand for 43.16% equity interest. The Group classified Big Data as an equity method investment as it had only significant influence instead of control over Big Data. In 2016, the Group also made equity investments in seven unrelated privately-held companies for aggregate consideration of USD 28,242 thousand. The shares held by the Group are not in-substance common stock and therefore the Group accounted for these investments according to ASC 320 as equity activities using the cost method. In addition, the Group increased its investment in Cloudtropy from 1.13% to 9.69% equity interest at a consideration of USD 3,780 thousand. The Group also participated in a new round of financing of Xiamen Diensi to the extent of USD 700 thousand while the Group’s equity interest in Xiamen Diensi diluted from 15% to 14.25% by other investors. |
Long-term investments - Sched93
Long-term investments - Schedule of Equity Investments, Percentage of Ownership of Common Share (Parenthetical) (Detail) ¥ in Thousands, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||
Aug. 31, 2015USD ($)shares | Apr. 30, 2015USD ($) | Apr. 30, 2015CNY (¥) | May 31, 2014USD ($) | May 31, 2014CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | ||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Number of equity investments | 7 | 7 | 5 | 5 | |||||||||
Diluted gain arising from sale of shares | $ 689 | [1] | $ 702 | [1] | $ 449 | ||||||||
Disposal Of Cost Method Investments | [2] | (2,220) | |||||||||||
Cost Method Investment, Deferred Gain on Sale | [1],[2] | 689 | |||||||||||
Cost-method Investments, Other than Temporary Impairment | 1,654 | 802 | ¥ 5,000 | ||||||||||
Equity Method Investments | 1,790 | 2,162 | 2,965 | ||||||||||
Cost Method Investments Additions | [3],[4] | 32,707 | 6,506 | ||||||||||
Payments to Acquire Equity Method Investments | 28,242 | ||||||||||||
Other Long-term Investments [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Investment Income, Interest and Dividend | 626 | ||||||||||||
Guangzhou Yuechuan [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Consideration received by equity method investee | $ 1,300 | ||||||||||||
Equity method investments, Percentage of ownership of common share | [2] | 10.13% | 19.13% | ||||||||||
Diluted gain arising from sale of shares | $ 69 | ||||||||||||
Investments in cost method investment | $ 701 | ||||||||||||
Cost method investments, ownership percentage | [2] | 9.30% | 10.13% | ||||||||||
Equity Method Investment, Decrease In Ownership Percentage | 9.00% | 9.00% | |||||||||||
Chengdu Diting [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Consideration received by equity method investee | $ 1,627 | ¥ 10,000 | |||||||||||
Equity method investments, Percentage of ownership of common share | [1] | 12.74% | 13.27% | ||||||||||
Diluted gain arising from sale of shares | $ 702 | ¥ 4,380 | |||||||||||
Investments in cost method investment | $ 6,390 | ¥ 39,070 | |||||||||||
Cost method investments, ownership percentage | 13.27% | 16.58% | |||||||||||
Number of board of directors seats of investee to be appointed by Group | 1 | 1 | |||||||||||
Number of board of directors seats of investee | 5 | 5 | |||||||||||
Cost Method Investment, Deferred Gain on Sale | $ 248 | ||||||||||||
Shenzhen Kushiduo [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Investments in cost method investment | $ 39 | ||||||||||||
Number of shares acquired of cost method investee | shares | 25 | ||||||||||||
Cost method investments, ownership percentage | [1],[3] | 10.00% | 12.50% | ||||||||||
Nanjing Qianyi Video Information Technology Co Ltd [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Cost method investments, ownership percentage | [2],[3] | 20.00% | |||||||||||
Disposal Of Cost Method Investments | $ 2,160 | ||||||||||||
Shenzhen RenJian RenAi Networking Technology Co Ltd [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Cost method investments, ownership percentage | |||||||||||||
Cost-method Investments, Other than Temporary Impairment | $ 230 | ||||||||||||
Xiamen Diensi Network Technology Company Limited [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Cost method investments, ownership percentage | [1],[3],[4] | 14.25% | 15.00% | ||||||||||
Cost Method Investment, Deferred Gain on Sale | $ 100 | ||||||||||||
Guangzhou Wucai [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Cost method investments, ownership percentage | [5] | 10.00% | |||||||||||
Cost-method Investments, Other than Temporary Impairment | $ 301 | ||||||||||||
Suzhou Heidisi Network Technology Company Ltd [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Cost method investments, ownership percentage | [3],[5] | 19.90% | |||||||||||
Cost-method Investments, Other than Temporary Impairment | $ 597 | ||||||||||||
Shanghai Guozhi [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Cost method investments, ownership percentage | 16.80% | 21.00% | |||||||||||
Cost-method Investments, Other than Temporary Impairment | $ 526 | ||||||||||||
Shenzhen Xunlei Big Data Information Service Co., Ltd. [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity method investments, Percentage of ownership of common share | 43.16% | ||||||||||||
Payments to Acquire Equity Method Investments | $ 1,442 | ||||||||||||
Cloudtropy [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Cost method investments, ownership percentage | [3],[4] | 9.69% | 1.13% | ||||||||||
Cost Method Investments Additions | $ 3,780 | ||||||||||||
Xiamen Diensi Technology Co., Ltd [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity method investments, Percentage of ownership of common share | 14.25% | 15.00% | |||||||||||
Equity Method Investments | $ 700 | ||||||||||||
Meizhi Interactive [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Cost Method Investment, Deferred Gain on Sale | 84 | ||||||||||||
Kushiduo [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Cost Method Investment, Deferred Gain on Sale | 188 | ||||||||||||
RenJianRenAi [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Investments in cost method investment | $ 58 | ||||||||||||
[1] | In May 2014, the Group obtained the right to appoint a director to Chengdu Diting and thus had one out of five seats on the board of directors of this investee. Given the existence of significant influence, the Group started to apply equity method in May 2014 although the Group's ownership interest in Chengdu Diting decreased from 19.9% to 16.58% because Chengdu Diting issued new shares to a third party for a total consideration of RMB 10 million (USD 1,627 thousand). In April of 2015, the new investor of Chengdu Diting injected capital of RMB 39.07 million (USD 6.39 million). As a result of the transaction, the Group 's ownership interest in Chengdu Diting was diluted from 16.58% to 13.27%. So the recognition of Chengdu Diting's ownership for the Group transferred from equity method to cost method. The Group recorded a dilution gain of RMB 4.38 million (USD 702 thousand) arising from the sale of shares by the investee to third parties at a price in excess of the per share carrying value of the shares owned by the Group in 2015. | ||||||||||||
[2] | In January 2016, the Group disposed of 9% interest in Guangzhou Yuechuan with a carrying value of USD 701 thousand at a consideration of approximately USD 1.3 million. As a result of the disposal, the Group’s interest in Guangzhou Yuechuan decreased from 19.13% to 10.13% and transferred this investment from equity method to cost method as the Group no longer has significant influence over this investee. At the same time, Guangzhou Yuechuan also issued certain new shares to a third party and the Group’s interest in Guangzhou Yuechuan diluted from 10.13% to 9.3% with a dilution gain of USD 69 thousand arising from the deemed disposal. In addition, the Group also disposed of its entire interest in Nanjing Qianyi with a carrying value of USD2.16 million and RenJianRenAi with a carrying value of USD58 thousand (after an impairment of USD230 thousand made during 2016 against its carrying value). These disposals resulted in a disposal gain of USD 626 thousand recognized in the other income, net (note 25). | ||||||||||||
[3] | In 2015, the Group made equity investments in five more unrelated privately-held companies. The shares held by the Group are not in-substance common stock and therefore the Group accounted for these investments according to ASC 320 as equity activities using the cost method. In August 2015, the Group increased investment of USD 39 thousand to purchase 25 thousand shares of Shenzhen Kushiduo. As a result, the Group's ownership interest in Shenzhen Kushiduo increased from 10% to 12.5%. | ||||||||||||
[4] | In 2016, the Group made an equity investment in a privately-held company, Big Data, of USD 1,442 thousand for 43.16% equity interest. The Group classified Big Data as an equity method investment as it had only significant influence instead of control over Big Data. In 2016, the Group also made equity investments in seven unrelated privately-held companies for aggregate consideration of USD 28,242 thousand. The shares held by the Group are not in-substance common stock and therefore the Group accounted for these investments according to ASC 320 as equity activities using the cost method. In addition, the Group increased its investment in Cloudtropy from 1.13% to 9.69% equity interest at a consideration of USD 3,780 thousand. The Group also participated in a new round of financing of Xiamen Diensi to the extent of USD 700 thousand while the Group’s equity interest in Xiamen Diensi diluted from 15% to 14.25% by other investors. | ||||||||||||
[5] | In September of 2015, Tianjin Kunzhiyi suffered from financial difficulties and lost most of its core R&D staff. As a result, new games couldn't be promoted as committed in investment agreement with the Group. The Group recognized impairment of RMB 5 million (USD 802 thousand) for its interest in Tianjin Kunzhiyi as considered necessary. In 2016, in addition to impairment of RenJian RenAi (note 11 (iii)), the Group also recognized impairment against its investments in Guangzhou Wucai, Suzhou Heidisi, and Shanghai Guozhi of USD 301 thousand, USD 597 thousand and USD 526 thousand, respectively after considering the latest operation status and financial and liquidity position. |
Deferred revenue and income - S
Deferred revenue and income - Schedule of Deferred Revenue and Income (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | ||
Deferred Revenue Arrangement [Line Items] | ||||
Deferred revenue and income, Total | $ 28,614 | $ 30,496 | ||
Less: non-current portion | [1] | (4,082) | (5,383) | |
Deferred revenue and income, current portion | 24,532 | 25,113 | ||
Membership subscription revenues [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Deferred revenue and income, Total | 22,115 | 24,502 | ||
Less: non-current portion | (820) | (719) | ||
Online game revenues [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Deferred revenue and income, Total | 1,490 | [2] | 1,120 | |
Government grants [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Deferred revenue and income, Total | [3] | 4,195 | 4,032 | |
Less: non-current portion | (2,719) | (4,032) | ||
Reimbursement from the depository [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Deferred revenue and income, Total | [4] | 814 | 842 | |
Less: non-current portion | $ (543) | $ (632) | ||
[1] | As of December 31, 2016, the non-current portion included membership subscription revenue of USD 820 thousand (2015: USD719 th0usand), government grants of USD2,719 thousand (2015: USD4,032 thousand), and reimbursement from the depositary of USD543 thousand (2015: USD632 thousand). | |||
[2] | The estimated lives of the user relationship extended, as result of change in accounting estimate of the lives of online game. Accordingly, the portion recognized as deferred revenue of online game increased. | |||
[3] | In March and June of 2016, the Group received government grant of USD 2.5 million. This government grant was recognized as deferred income and amortized in 5 years under the property, plant and equipment depreciation policy. | |||
[4] | In August 2016, the Company received from its depositary bank a reimbursement of USD 0.27 million, net of withholding tax of USD 0.6 million. This reimbursement was recognized as deferred income and amortized over the depositary service period of 5 years. |
Deferred revenue and income -95
Deferred revenue and income - Schedule of Deferred Revenue and Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 4 Months Ended | 12 Months Ended | |||
Aug. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Deferred Revenue Arrangement [Line Items] | ||||||
Reimbursement received from depository | $ 270 | $ 1,158 | ||||
Deferred income withholding tax | $ 600 | |||||
Deferred income amortized depositary service period | 5 years | |||||
Deferred revenue and income, non-current | [1] | 4,082 | 5,383 | |||
Increase Decrease In Deferred Government Grants | $ 2,500 | (3,473) | (1,969) | $ (2,059) | ||
Deferred Income Amortization Period For Government Grant | 5 years | |||||
Membership subscription revenues [Member] | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred revenue and income, non-current | 820 | 719 | ||||
Government grants [Member] | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred revenue and income, non-current | 2,719 | 4,032 | ||||
Reimbursement from the depository [Member] | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred revenue and income, non-current | $ 543 | $ 632 | ||||
[1] | As of December 31, 2016, the non-current portion included membership subscription revenue of USD 820 thousand (2015: USD719 th0usand), government grants of USD2,719 thousand (2015: USD4,032 thousand), and reimbursement from the depositary of USD543 thousand (2015: USD632 thousand). |
Accrued liabilities and other96
Accrued liabilities and other payables - Schedule of Accrued Liabilities and Other Payables (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Payroll and welfare | $ 11,322 | $ 10,570 | |
Agency commissions and rebatesonline advertising | 2,297 | 2,443 | |
Payables for advertisement on exclusive online games | 1,521 | 1,643 | |
Receipts in advance from customers | [1] | 5,538 | |
Tax levies | 1,864 | 1,605 | |
Payables for purchase of equipment | 3,235 | 4,999 | |
Legal and litigation related expenses | 2,904 | 2,601 | |
Professional fees | 1,007 | 908 | |
Staff reimbursements | 452 | 611 | |
Rental expense | 5 | 4 | |
Payables for proceeds from selling exercised stock options | 352 | 177 | |
Payables for gaming distribution | 147 | 158 | |
Payables to Nesound | 807 | 622 | |
Others | 1,680 | 1,038 | |
Total | $ 33,131 | $ 27,379 | |
[1] | Receipts in advance from customers represents prepayment from a customer in respect of CDN and advertisements services. |
Cost of revenues - Schedule of
Cost of revenues - Schedule of Cost of Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Deferred Revenue Arrangement [Line Items] | ||||
Cost of revenues | $ 80,319 | $ 60,034 | $ 55,755 | |
Bandwidth costs [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Cost of revenues | 55,135 | 37,218 | 33,545 | |
Content costs, including amortization [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Cost of revenues | 692 | 338 | ||
Payment handling fees [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Cost of revenues | 6,967 | 9,087 | 11,305 | |
Depreciation of servers and other equipment [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Cost of revenues | 5,848 | 4,873 | 5,102 | |
Games revenue sharing costs and others [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Cost of revenues | [1] | $ 11,677 | $ 8,518 | $ 5,803 |
[1] | gaming revenue sharing costs and others mainly include gaming sharing costs, cost of ZQB and cost of live video. |
Redeemable Convertible Prefer98
Redeemable Convertible Preferred Shares - Series D Convertible Redeemable Preferred Shares - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 31, 2012 | Dec. 31, 2016 | Feb. 06, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 24, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Mar. 05, 2014 | Mar. 01, 2014 | |
Conversion of Stock [Line Items] | ||||||||||||||
Total consideration from issuance of Series D preferred shares and warrants | $ 37,500 | |||||||||||||
Loss on exchange of warrants | $ (405) | |||||||||||||
Retained earnings | $ (36,704) | (36,704) | $ (12,593) | |||||||||||
Fair value of gain recognized in other income | $ 2,922 | |||||||||||||
Initial Public Offering [Member] | ||||||||||||||
Conversion of Stock [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 80.00% | 80.00% | ||||||||||||
Minimum [Member] | ||||||||||||||
Conversion of Stock [Line Items] | ||||||||||||||
Volatility rate | 55.36% | |||||||||||||
Maximum [Member] | ||||||||||||||
Conversion of Stock [Line Items] | ||||||||||||||
Volatility rate | 59.91% | |||||||||||||
Series D Preferred Stock [Member] | ||||||||||||||
Conversion of Stock [Line Items] | ||||||||||||||
Warrants to purchase preferred shares | 1,952,663 | 266,272 | ||||||||||||
Warrants to purchase preferred per shares | $ 3.38 | |||||||||||||
Conversion, description | Upon issuance of Series E preferred shares in March and April 2014, the Company adjusted the Series D conversion price from USD3.5 to USD2.86 per share for 6,771,454 Series D preferred shares held by the Series D Investor. | |||||||||||||
Converted into common share | 8,391,850 | |||||||||||||
Fair value of warrants | $ 2,414 | $ 2,414 | ||||||||||||
Loss on exchange of warrants | $ 405 | |||||||||||||
Initial conversion price | $ 3.5 | |||||||||||||
Adjusted conversion price | $ 2.86 | |||||||||||||
Preferred Stock, Shares Outstanding | 6,771,454 | |||||||||||||
Remaining shares held by investor | 3,808,943 | |||||||||||||
Beneficial conversion feature for preferred shares anti-diluted | $ 4,008 | |||||||||||||
Number of shares redeemed under rights | 6,771,454 | |||||||||||||
Retained earnings | $ 279 | $ 279 | ||||||||||||
Series D Preferred Stock [Member] | Initial Public Offering [Member] | ||||||||||||||
Conversion of Stock [Line Items] | ||||||||||||||
Converted into common share | 10,581,726 | 10,581,726 | ||||||||||||
Initial conversion price | $ 2.86 | |||||||||||||
Adjusted conversion price | 2.27 | |||||||||||||
Preferred Stock, Shares Outstanding | 6,771,454 | 6,771,454 | ||||||||||||
Series D Preferred Stock [Member] | Minimum [Member] | ||||||||||||||
Conversion of Stock [Line Items] | ||||||||||||||
Volatility rate | 38.39% | 38.39% | ||||||||||||
Series D Preferred Stock [Member] | Maximum [Member] | ||||||||||||||
Conversion of Stock [Line Items] | ||||||||||||||
Volatility rate | 43.40% | 43.40% | ||||||||||||
Series D Warrants [Member] | ||||||||||||||
Conversion of Stock [Line Items] | ||||||||||||||
Warrants, exercisable period description | The holder of Series D warrants had the right to exercise the warrants at the earlier of (i) 24 months from date of Initial Closing or (ii) automatically exercised immediately prior to the closing of the following transactions: (a) mergers or consolidation of the Company, b) initial public offering, c) transaction in which in excess of 50% of the Companys equity is transferred to any person, d) sale, transfer, lease, assignment conveyance, exchange, mortgage, or other disposition of all or substantially all of the assets of the Company | |||||||||||||
Initial fair value of warrants | $ 3,007 | $ 3,007 | ||||||||||||
Fair value of warrants | $ 2,186 | |||||||||||||
Fair value of (loss)/gain of warrants | $ 1,531 | $ 710 | ||||||||||||
Volatility rate | [1],[2] | 0.00% | ||||||||||||
Series E Preferred Shares [Member] | ||||||||||||||
Conversion of Stock [Line Items] | ||||||||||||||
Warrants to purchase preferred shares | 3,406,824 | |||||||||||||
Warrants to purchase preferred per shares | $ 2.82 | |||||||||||||
Converted into common share | 129,166,667 | 129,166,667 | ||||||||||||
Initial fair value of warrants | $ 2,819 | $ 2,819 | ||||||||||||
Initial conversion price | 2.82 | |||||||||||||
Adjusted conversion price | $ 2.4 | |||||||||||||
Remaining shares held by investor | 110,014,440 | |||||||||||||
Convertible Redeemable Preferred Shares [Member] | ||||||||||||||
Conversion of Stock [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 10.00% | 10.00% | ||||||||||||
Convertible Redeemable Preferred Shares [Member] | Series D Preferred Stock [Member] | ||||||||||||||
Conversion of Stock [Line Items] | ||||||||||||||
Preferred stock, issued | 10,580,397 | |||||||||||||
Preferred stock, price per share | $ 3.544 | |||||||||||||
Warrants to purchase preferred shares | 2,218,935 | |||||||||||||
Warrants to purchase preferred per shares | $ 3.38 | |||||||||||||
Number of shares issued from existing shareholders to third-party investors | 5,036,367 | |||||||||||||
Converted into common share | 1 | 1 | ||||||||||||
Preferred shares, redemption rights | The Series D preferred shares were redeemable at any time after the 4th anniversary of the initial closing of February 6, 2012 to request the Company to purchase all Series D preferred shares and shares issuable upon the conversion or exercise of the Series D warrants if an initial public offering is not consummated. This redemption right expires after the 5th anniversary of the initial closing of the transaction. The redemption price shall be equal to the aggregate amount of price paid at USD3.544, plus all declared but unpaid dividends up to the date of redemption plus interest of 8% per annum compounded annually from the closing of the Series D preferred shares investment(Initial Closing) up to and including the date of redemption. | |||||||||||||
Preferred shares redemption price per share, minimum | $ 3.544 | $ 3.544 | ||||||||||||
Compound interest rate per annum on unpaid dividends | 8.00% | |||||||||||||
Preferred shares, carrying value | $ 32,481 | |||||||||||||
Capitalized expense | $ 2,012 | |||||||||||||
Convertible Redeemable Preferred Shares [Member] | Series E Preferred Shares [Member] | ||||||||||||||
Conversion of Stock [Line Items] | ||||||||||||||
Conversion, description | Each share of the Series D preferred shares was convertible at the option of the holder, at any time after the issuance of such shares, and each share can be converted into one common share of the Company | |||||||||||||
Converted into common share | 1 | 1 | ||||||||||||
[1] | Given that the maturity date of Series D warrant was February 6, 2014, the volatility rate and risk-free interest rate did not affect the valuation of the warrant on February 6, 2014. | |||||||||||||
[2] | Volatility based on the average historical volatility of the comparable companies from Bloomberg as at the valuation date. |
Redeemable Convertible Prefer99
Redeemable Convertible Preferred Shares - Assumptions to Estimated Fair Value of Warrants (Detail) - $ / shares | Apr. 24, 2014 | Mar. 05, 2014 | Feb. 06, 2014 | Dec. 31, 2016 | ||
Series E Warrants [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Dividend yield | [1] | 0.00% | ||||
Series D Warrants [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Spot price | [2] | $ 4.47 | ||||
Risk-free interest rate | [3],[4] | 0.00% | ||||
Volatility rate | [3],[5] | 0.00% | ||||
Dividend yield | [1] | 0.00% | ||||
Convertible Redeemable Preferred Shares [Member] | Series E Warrants [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Risk-free interest rate | [4] | 0.12% | ||||
Volatility rate | [5] | 38.81% | ||||
Subscription Rights [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Risk-free interest rate | [4] | 0.02% | 0.04% | |||
Volatility rate | [5] | 42.74% | 38.12% | |||
Minimum [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Volatility rate | 55.36% | |||||
Minimum [Member] | Series E Warrants [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Spot price | [2] | $ 3.31 | ||||
Risk-free interest rate | [4] | 0.04% | ||||
Volatility rate | [5] | 38.39% | ||||
Dividend yield | [1] | 0.00% | ||||
Minimum [Member] | Convertible Redeemable Preferred Shares [Member] | Series E Warrants [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Spot price | [6] | $ 4.50 | ||||
Minimum [Member] | Subscription Rights [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Spot price | [6] | $ 3.39 | $ 3.31 | |||
Dividend yield | [1] | 0.00% | 0.00% | |||
Maximum [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Volatility rate | 59.91% | |||||
Maximum [Member] | Series E Warrants [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Spot price | $ 4.65 | |||||
Risk-free interest rate | [4] | 0.12% | ||||
Volatility rate | [5] | 38.81% | ||||
Maximum [Member] | Convertible Redeemable Preferred Shares [Member] | Series E Warrants [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Spot price | [6] | $ 4.65 | ||||
Maximum [Member] | Subscription Rights [Member] | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||||
Spot price | [6] | $ 4.64 | $ 4.65 | |||
Dividend yield | 0.00% | 0.00% | [1] | |||
[1] | The Company has no history or expectation of paying dividends on its common shares. | |||||
[2] | Spot price based on the fair value of 100 percent equity interest of the Company which was allocated to preferred shares and common shares of the Company as at the valuation date under different scenarios. For the valuation on March 5, 2014 and March 31, 2014, the probability of the occurrence of an IPO is assumed to be 80%, the probability of the occurrence of a liquidation event is assumed to be 10% and the probability of the occurrence of a redemption event is assumed to be 10%. | |||||
[3] | Given that the maturity date of Series D warrant was February 6, 2014, the volatility rate and risk-free interest rate did not affect the valuation of the warrant on February 6, 2014. | |||||
[4] | Risk-free interest rate based on the US Treasury Bond & Notes BFV curve from Bloomberg as at the valuation date. | |||||
[5] | Volatility based on the average historical volatility of the comparable companies from Bloomberg as at the valuation date. | |||||
[6] | Spot price based on the fair value of 100 percent equity interest of the Company which is allocated to preferred shares and common shares of the Company as at the valuation date under different scenarios. The probability of the occurrence of an IPO is assumed to be 80%, the probability of the occurrence of a liquidation event is assumed to be 10% and the probability of the occurrence of a redemption event is assumed to be 10%. |
Redeemable Convertible Prefe100
Redeemable Convertible Preferred Shares - Assumptions to Estimated Fair Value of Warrants - (Parenthetical) (Detail) | Apr. 24, 2014 | Mar. 05, 2014 |
Subscription Rights [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Probability of occurrence of event | 100.00% | |
Series E Warrants [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Probability of occurrence of event | 100.00% | |
Initial Public Offering [Member] | Subscription Rights [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Probability of occurrence of event | 80.00% | |
Initial Public Offering [Member] | Series E Warrants [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Probability of occurrence of event | 80.00% | |
Liquidation Event [Member] | Subscription Rights [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Probability of occurrence of event | 10.00% | |
Liquidation Event [Member] | Series E Warrants [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Probability of occurrence of event | 10.00% | |
Redemption Event [Member] | Subscription Rights [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Probability of occurrence of event | 10.00% | |
Redemption Event [Member] | Series E Warrants [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Probability of occurrence of event | 10.00% |
Redeemable Convertible Prefe101
Redeemable Convertible Preferred Shares - Summary of Redeemable Convertible Preferred Shares (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Temporary Equity [Line Items] | ||||
Repurchase of preferred shares | $ (14,319) | $ (1,287) | $ (59,082) | |
Converted to common shares upon IPO | ||||
Initial Public Offering [Member] | ||||
Temporary Equity [Line Items] | ||||
Converted to common shares upon IPO | 470,759 | |||
Series E Tranche 1 Preferred Shares [Member] | ||||
Temporary Equity [Line Items] | ||||
BCF upon Series E | 52,377 | |||
Series D Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Accretion of Series D to convertible redeemable preferred shares redemption value | 1,870 | |||
Accretion of Series E to convertible redeemable preferred shares redemption value | (1,870) | |||
Convertible Redeemable Preferred Shares [Member] | Series E Tranche 1 Preferred Shares [Member] | ||||
Temporary Equity [Line Items] | ||||
Beginning balance | ||||
Addition | 275,314 | |||
Exercise of Series E subsequent sale rights | 28,568 | |||
BCF upon Series E | (53,486) | |||
Amortisation of BCF of Series E | 4,139 | |||
Accretion of Series E to convertible redeemable preferred shares redemption value | 12,754 | |||
Acceleration of amortization of BCF of Series E upon IPO | 49,346 | |||
Converted to common shares upon IPO | (344,031) | |||
Ending balance | ||||
Convertible Redeemable Preferred Shares [Member] | Series E Tranche 1 Preferred Shares [Member] | Initial Public Offering [Member] | ||||
Temporary Equity [Line Items] | ||||
Deemed dividend to preferred shareholders upon IPO | 27,396 | |||
Convertible Redeemable Preferred Shares [Member] | Series D Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Beginning balance | 40,290 | 35,990 | ||
Deemed dividend to preferred shareholders upon IPO | 279 | |||
Accretion of Series D to convertible redeemable preferred shares redemption value | 1,870 | 4,300 | ||
Repurchase of preferred shares | (15,003) | |||
Ending balance | 40,290 | |||
Convertible Redeemable Preferred Shares [Member] | Series D Preferred Stock [Member] | Initial Public Offering [Member] | ||||
Temporary Equity [Line Items] | ||||
Deemed dividend to preferred shareholders upon IPO | 4,008 | |||
Converted to common shares upon IPO | $ (31,444) |
Redeemable Convertible Prefe102
Redeemable Convertible Preferred Shares - Series E Convertible Redeemable Preferred Shares - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jun. 24, 2014USD ($)$ / sharesshares | Apr. 24, 2014USD ($)shares | Mar. 05, 2014USD ($)$ / sharesshares | Jun. 04, 2014$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Aug. 31, 2013USD ($) |
Conversion of Stock [Line Items] | ||||||||
Fair value of warrant liability | $ (8,054) | |||||||
First Two Investors [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Total consideration | $ 100,000 | |||||||
Third Investor [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Total consideration | 10,000 | |||||||
Unvested restricted stock [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Number of shares imposed transfer restrictions | shares | 3,394,564 | |||||||
Unvested options [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Number of shares imposed transfer restrictions | shares | 180,000 | |||||||
Vested options [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Number of shares imposed transfer restrictions | shares | 180,000 | |||||||
Common shares [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Shares subscribed | shares | 39,934,162 | |||||||
Subscription Rights [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Initial fair value of subscription rights | 28,208 | |||||||
Fair value of subscription rights | $ 29,223 | |||||||
Series E Tranche 1 Investor [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Warrants to purchase preferred shares | shares | 17,743,873 | |||||||
Warrants exercise price | $ / shares | $ 2.82 | |||||||
Series E Tranche 1 Investor [Member] | Subscription Rights [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Shares subscribed | shares | 35,487,746 | |||||||
Series E Preferred Shares [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Total consideration from issuance of Series E preferred shares and warrants | $ 20,000 | |||||||
Preferred stock, shares issued | shares | 70,975,491 | |||||||
Preferred stock issued price | $ / shares | $ 2.82 | |||||||
Warrants to purchase preferred shares | shares | 3,406,824 | |||||||
Warrants exercise price | $ / shares | $ 2.82 | |||||||
Percentage of issue price | 100.00% | |||||||
Converted into common share | shares | 129,166,667 | |||||||
Interest rate for delayed period | 15.00% | |||||||
Initial conversion price | $ / shares | $ 2.82 | |||||||
Adjusted conversion price | $ / shares | $ 2.4 | |||||||
Initial fair value of warrants | $ 2,819 | |||||||
Fair value of warrant liability | $ 6,381 | |||||||
Beneficial conversion feature | 27,396 | |||||||
Shares held by investors | shares | 110,014,440 | |||||||
Unamortized beneficial conversion feature for preferred shares anti-diluted | $ 49,346 | |||||||
Series E Preferred Shares [Member] | Subscription Rights [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Right to purchase additional number of preferred shares by investor | shares | 35,487,746 | |||||||
Series E Tranche 1 Preferred Shares [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Amount of beneficial conversion feature | $ 52,377 | |||||||
Common stock fair value per share | $ / shares | $ 3.05 | |||||||
Initial conversion price | $ / shares | 2.82 | |||||||
Adjusted conversion price | $ / shares | $ 2.31 | |||||||
Series E Tranche 1 Investor Options [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Valuation based on subscription price | $ 30,000,000 | $ 10,000,000 | $ 10,000,000 | |||||
Percentage of approval for transfer of preferred shares | 75.00% | |||||||
Valuation of transfer restriction | $ 43,300 | |||||||
Percentage increase in valuation | 200.00% | |||||||
Series E Warrants [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Initial fair value of warrants | $ 6,477 | |||||||
Preferred stock, price per share repurchased | $ / shares | $ 2.82 | |||||||
Series E Tranche 2 Investor [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Number of investors | 2 | |||||||
Number of investors exercised the Subscription Rights | 3 | |||||||
Series E Tranche 2 Preferred Shares [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Shares subscribed | shares | 39,037,382 | |||||||
Total consideration | $ 110 | |||||||
Fair value of warrant liability | 29,223 | |||||||
Series E Tranche 2 Preferred Shares [Member] | First Two Investors [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Total consideration | 100,000 | |||||||
Beneficial conversion feature | 1,109 | |||||||
Series E Tranche 2 Preferred Shares [Member] | Third Investor [Member] | ||||||||
Conversion of Stock [Line Items] | ||||||||
Total consideration | $ 10,000 |
Convertible Preferred Shares -
Convertible Preferred Shares - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2012 | Dec. 31, 2015 | Jun. 24, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2012 | Apr. 30, 2011 | |
Conversion of Stock [Line Items] | ||||||||||
Threshold removed, amount | $ 50,000 | |||||||||
Additional paid-in-capital | $ 453,347 | $ 458,270 | ||||||||
Common shares issued | 10,000,000 | |||||||||
Conversion after anti-dilution | $ 5.13 | |||||||||
Minimum [Member] | ||||||||||
Conversion of Stock [Line Items] | ||||||||||
Volatility rate | 55.36% | |||||||||
Maximum [Member] | ||||||||||
Conversion of Stock [Line Items] | ||||||||||
Volatility rate | 59.91% | |||||||||
Series A [Member] | ||||||||||
Conversion of Stock [Line Items] | ||||||||||
Beneficial conversion feature for preferred shares | $ 54 | |||||||||
Series C [Member] | ||||||||||
Conversion of Stock [Line Items] | ||||||||||
Beneficial conversion feature for preferred shares anti-diluted | $ 286 | |||||||||
Initial conversion price | $ 5.24 | |||||||||
Adjusted conversion price | 4.14 | |||||||||
Preferred shares at purchase price per common share | $ 4.607 | |||||||||
Purchase option exercise period | 12 months | |||||||||
Conversion , description | Upon issuance of Series D preferred shares in January 2012 as discussed in note 15, the Company adjusted the Series C conversion price from USD5.24 to USD4.14 per share; and obtained an exclusive option to purchase at any time within 12 months after the date of the conversion for all, but not less than all, of Series C preferred shares at the purchase price of USD4.607 per common share. | |||||||||
Converted into common share | 7,248,293 | |||||||||
Preferred shares outstanding | 5,728,264 | |||||||||
Additional paid-in-capital | $ 2,905 | |||||||||
Common shares issued | 96,024,567 | |||||||||
Series C [Member] | Anti-dilution clause 1 [Member] | ||||||||||
Conversion of Stock [Line Items] | ||||||||||
Beneficial conversion feature for preferred shares anti-diluted | $ 58 | |||||||||
Conversion , description | Upon issuance of Series E preferred shares in March and April 2014, the Company adjusted the Series C conversion price from USD4.14 to USD3.64 and from USD3.64 to USD3.63 per share relating to 114,565 Series C preferred shares held by one investor (‘‘Series C Investor 2''), respectively. The Company concluded that the downward conversion price adjustment is in accordance with the anti-dilution clause in the original Series C financing agreement. | |||||||||
Converted into common share | 5,728,264 | |||||||||
Preferred shares outstanding | 114,565 | |||||||||
Series C [Member] | Anti-dilution clause 2 [Member] | ||||||||||
Conversion of Stock [Line Items] | ||||||||||
Beneficial conversion feature for preferred shares anti-diluted | $ 1,403 | |||||||||
Conversion , description | Upon the completion of the IPO on 24 June 2014, the Company adjusted the Series C conversion price from USD4.14 to USD3.89 and from USD3.63 to USD3.45 per share relating to 5,613,699 Series C preferred shares held by Series C Investor 1 and 114,565 Series C preferred shares held by Series C Investor 2, respectively. The Company concluded that the downward conversion price adjustment is in accordance with the anti-dilution clause in the latest shareholders agreement. | |||||||||
Converted into common share | 7,724,419 | |||||||||
Preferred shares outstanding | 114,565 | |||||||||
Series C [Member] | Series C Investor 1 [Member] | ||||||||||
Conversion of Stock [Line Items] | ||||||||||
Initial conversion price | $ 4.14 | $ 4.14 | ||||||||
Adjusted conversion price | $ 3.89 | |||||||||
Conversion after anti-dilution | $ 2.81 | |||||||||
Shares held by investors | 5,613,699 | 5,613,699 | ||||||||
Series C [Member] | Series C Investor 2 [Member] | ||||||||||
Conversion of Stock [Line Items] | ||||||||||
Initial conversion price | $ 3.63 | $ 3.64 | $ 4.14 | |||||||
Adjusted conversion price | $ 3.45 | $ 3.63 | $ 3.64 | |||||||
Shares held by investors | 114,565 | 114,565 | 114,565 |
Common shares - Additional Info
Common shares - Additional Information (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, par value | $ 0.00025 | $ 0.00025 |
Common stock, shares outstanding | 330,545,000 | 339,319,115 |
Common stock voting rights, description | 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. |
Repurchase of shares - Addition
Repurchase of shares - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Apr. 14, 2016 | Dec. 31, 2016 | Dec. 30, 2016 | Nov. 30, 2016 | Oct. 27, 2016 | Sep. 30, 2016 | Aug. 30, 2016 | Jul. 29, 2016 | Jun. 30, 2016 | May 31, 2016 | Mar. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||
Total Number of ADS Purchased | 2,454,500 | |||||||||||||
Approximate Dollar Value of ADSs that May Yet Be Purchased Under the Plan | $ 5,700 | $ 5,700 | ||||||||||||
Share repurchase program amount | $ 20,000 | |||||||||||||
Payments for Repurchase of Preferred Stock and Preference Stock | 14,319 | $ 1,287 | $ 69,303 | |||||||||||
Share Repurchase Program, 2016 [Member] | ||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||
Total Number of ADS Purchased | 457,900 | 2,454,500 | 173,312 | 21,229 | 31,400 | 15,467 | 229,695 | 555,357 | 111,459 | 449,696 | 408,985 | |||
Average Price Paid Per Share | $ 6.61 | $ 4.02 | $ 4.61 | $ 5.11 | $ 5.33 | $ 5.83 | $ 5.33 | $ 5.24 | $ 6.28 | $ 6.22 | ||||
Share repurchase program amount | $ 20,000 | $ 20,000 |
Non-controlling interest - Addi
Non-controlling interest - Additional Information (Detail) - Xunlei Games Development (Shenzhen) Co., Ltd. [Member] ¥ in Thousands, $ in Thousands | Feb. 28, 2010USD ($) | Feb. 28, 2010CNY (¥) |
Noncontrolling Interest [Line Items] | ||
Percentage of equity interest owned by parent | 70.00% | 70.00% |
Minority interest owned by shareholder, percent | 30.00% | 30.00% |
Minority interest owned by shareholder, amount | $ 439 | ¥ 3,000 |
Share-based compensation - Addi
Share-based compensation - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 01, 2014 | Sep. 05, 2014 | Jun. 11, 2014 | Nov. 30, 2014 | Apr. 30, 2014 | Nov. 30, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares expected to vest | 1,440,923 | 1,008,645 | 9,642,307 | |||||||
Incremental share-based compensation to be recognized | $ 2,214 | |||||||||
Share options cancelled | 3,776,711 | 0 | 80,000 | |||||||
Common shares issued | 10,000,000 | |||||||||
Total fair value, share options vested | $ 6,831 | $ 6,297 | ||||||||
Unrecognized share-based compensation costs | $ 1,358 | $ 1,147 | ||||||||
Weighted-average vesting period expected to be recognized | 3 years 2 months 12 days | 4 years 11 days | ||||||||
Leading Advice Holdings Limited [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common shares issued | 14,195,412 | 9,073,732 | ||||||||
Restricted shares [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock granted | 1,505,787 | |||||||||
Kingsoft Cloud Storage Business [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Replacement award attributable to pre-combination service | $ 303 | |||||||||
Business acquisition date | Sep. 5, 2014 | |||||||||
Replacement award attributable to post-combination service | $ 44 | |||||||||
2010 share incentive plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock option vesting period, description | Stock options granted to employees and officers vest over a four-year schedule as stated below: (1) One-fourth of the options shall be vested upon the first anniversary of the grant date; (2) The remaining three quarters of the options shall be vested on monthly basis over the next thirty-six months. ( 1/48 of options shall be vested per month subsequently) | |||||||||
Number of shares available for grant | 4,677,465 | |||||||||
Extended maturity date of share options | Jun. 11, 2015 | |||||||||
Lock-up period for shares from IPO closing date | 6 months | |||||||||
Incremental share-based compensation to be recognized | $ 768 | |||||||||
2010 share incentive plan [Member] | Employee and officers [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock option vesting period | 4 years | |||||||||
2010 share incentive plan [Member] | Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock option vesting period | 32 months | |||||||||
2010 share incentive plan [Member] | Employees [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Estimated forfeiture rate | 20.00% | |||||||||
2010 share incentive plan [Member] | Restricted shares [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock granted | 80,000 | |||||||||
Restricted stock granted | 1,170,000 | |||||||||
2010 share incentive plan [Member] | Minimum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock option term | 7 years | |||||||||
Stock option vesting period | 2 years | |||||||||
2010 share incentive plan [Member] | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock option term | 10 years | |||||||||
Stock option vesting period | 4 years 6 months | |||||||||
Number of shares available for grant | 26,822,828 | |||||||||
2013 Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock granted | 8,664,980 | 7,987,435 | ||||||||
2013 Plan [Member] | Restricted shares [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant | 9,073,732 | |||||||||
Restricted stock granted | 4,233,558 | |||||||||
2013 Plan [Member] | Restricted shares [Member] | Tranche One [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares expected to vest | 5,098,345 | |||||||||
Stock option vesting period | 4 years | |||||||||
Stock option vesting period, description | one-fourth of the restricted shares shall be vested upon the first, second, third, and fourth anniversary of the grant date, respectively. | |||||||||
2013 Plan [Member] | Restricted shares [Member] | Tranche Two [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares expected to vest | 1,102,430 | |||||||||
Stock option vesting period | 5 years | |||||||||
Stock option vesting period, description | one-fifth of the restricted shares shall be vested upon the first, second, third, fourth and fifth anniversary of the grant date, respectively. | |||||||||
2013 Plan [Member] | Restricted shares [Member] | Tranche Three [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares expected to vest | 854,405 | |||||||||
Stock option vesting period | 44 months | |||||||||
Stock option vesting period, description | one-fourth of the restricted shares shall be vested upon the eighth month, and three-fourth of the restricted shares shall be vested during the remaining thirty six months. | |||||||||
2013 Plan [Member] | Restricted shares [Member] | Tranche Four [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares expected to vest | 689,700 | |||||||||
Stock option vesting period | 4 years | |||||||||
Stock option vesting period, description | one-fourth, and one-fourth of the restricted shares shall be vested upon the second, third and fourth anniversary of the grant date, respectively. | |||||||||
2013 Plan [Member] | Restricted shares [Member] | Tranche Five [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares expected to vest | 640,100 | |||||||||
Stock option vesting period | 2 years | |||||||||
Stock option vesting period, description | half of the restricted shares shall be vested upon the first and second anniversary of the grant date, respectively. | |||||||||
2013 Plan [Member] | Restricted shares [Member] | Tranche Six [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares expected to vest | 160,000 | |||||||||
Stock option vesting period | 1 year | |||||||||
Stock option vesting period, description | one-year schedule in which all of the restricted shares shall be vested upon the first anniversary of the grant date. | |||||||||
2013 Plan [Member] | Restricted shares [Member] | Tranche Seven [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares expected to vest | 120,000 | |||||||||
2014 Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant | 14,195,412 | |||||||||
Unrecognized compensation expense relating to the restricted shares | $ 12,416 | |||||||||
Restricted shares issued to non-employees | 60,000 | |||||||||
2014 Plan [Member] | Senior Officers [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized compensation expense relating to the restricted shares | $ 10,138 | |||||||||
Restricted shares issued to non-employees | 60,000 | |||||||||
2014 Plan [Member] | Restricted shares [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock granted | 6,749,000 | 3,890,500 | ||||||||
2014 Plan [Member] | Restricted shares [Member] | Certain Officers and Employees [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock granted | 14,536,000 | |||||||||
2014 Plan [Member] | Restricted shares [Member] | Tranche One [Member] | Certain Officers and Employees [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares expected to vest | 9,040,500 | |||||||||
Stock option vesting period | 5 years | |||||||||
Stock option vesting period, description | one-fifth of the restricted shares shall be vested upon the first, second, third, fourth and fifth anniversary of the grant date, respectively. | |||||||||
2014 Plan [Member] | Restricted shares [Member] | Tranche Two [Member] | Certain Officers and Employees [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares expected to vest | 5,400,000 | |||||||||
Stock option vesting period | 4 years | |||||||||
Stock option vesting period, description | one-fourth of the restricted shares shall be vested upon the first, second, third and fourth anniversary of the grant date, respectively. | |||||||||
2014 Plan [Member] | Restricted shares [Member] | Tranche Three [Member] | Certain Officers and Employees [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares expected to vest | 9,000 | |||||||||
Stock option vesting period | 2 years | |||||||||
2014 Plan [Member] | Restricted shares [Member] | Tranche Four [Member] | Certain Officers and Employees [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares expected to vest | 86,500 | |||||||||
Stock option vesting period, description | half of the restricted shares shall be vested upon the first and second anniversary of the grant date, respectively. |
Share-based compensation - Summ
Share-based compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 01, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based compensation [Abstract] | ||||
Number of share options, Granted | 0 | 561,705 | ||
Number of share options, Forfeited | (14,375) | (1,494,922) | ||
Number of share options, Expired | (182,510) | (3,606,304) | ||
Number of share options, Converted to restricted shares | (3,776,711) | 0 | (80,000) | |
Number of share options, Exercised | (440,465) | (3,189,944) | ||
Number of share options, Outstanding, Ending balance | 1,493,470 | 2,130,820 | 9,940,285 | |
Number of share options, Vested and expected to vest, Ending balance | 1,440,923 | 1,008,645 | 9,642,307 | |
Number of share options, Exercisable, Ending balance | 1,217,050 | 1,430,870 | 9,129,958 | |
Weighted average exercise price, Granted | $ 0 | $ 0.88 | ||
Weighted average exercise price, Forfeited | 3.21 | 3.22 | ||
Weighted average exercise price, Expired | 2.22 | 1.78 | ||
Weighted average exercise price, Converted to restricted shares | 0 | 2.4 | ||
Weighted average exercise price, Exercised | 1.81 | 0.25 | ||
Weighted average exercise price, Ending balance | 2.65 | 2.13 | $ 1.88 | |
Weighted average exercise price, Vested and expected to vest at end of period | 2.67 | 1.76 | 1.86 | |
Weighted average exercise price, Exercisable at end of period | 2.7 | 2.16 | 1.81 | |
Weighted-average grant date fair value, Granted | 0 | 0.76 | ||
Weighted-average grant date fair value, Vested and expected to vest, Ending balance | 0.85 | 0.73 | 0.49 | |
Weighted-average grant date fair value, Exercisable, Ending balance | $ 0.84 | $ 0.86 | $ 0.41 | |
Weighted-average remaining contractual life, Ending balance | 3 years 4 months 20 days | 4 years 5 months 16 days | 1 year 11 months 12 days | |
Weighted-average remaining contractual life, Vested and expected to vest, Ending balance | 3 years 2 months 26 days | 4 years 7 months 13 days | 1 year 10 months 13 days | |
Weighted-average remaining contractual life, Exercisable, Ending balance | 3 years 2 months 12 days | 4 years 11 days | 1 year 5 months 26 days | |
Aggregate intrinsic value, Outstanding | $ 6 | $ 556 | $ 3,067 | |
Aggregate intrinsic value, Vested and expected to vest, Ending balance | 6 | 464 | 3,057 | |
Aggregate intrinsic value, Exercisable, Ending balance | $ 6 | $ 406 | $ 3,042 |
Share-based compensation - S109
Share-based compensation - Summary of Restricted Shares Activities (Detail) - $ / shares | Dec. 01, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted shares, Converted from share options | 1,505,787 | |||
2010 share incentive plan [Member] | Restricted shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted shares, Unvested, beginning balance | 432,217 | 1,505,787 | ||
Number of restricted shares, Converted from share options | 80,000 | |||
Number of restricted shares, Granted | 1,170,000 | |||
Number of restricted shares, Vested | (274,960) | (390,560) | ||
Number of restricted shares, Forfeited | (384,037) | (763,010) | ||
Number of restricted shares, Unvested, Ending balance | 943,220 | 432,217 | 1,505,787 | |
Number of restricted shares, Vested and expected to vest, Ending balance | 801,737 | 367,384 | ||
Weighted-Average Grant-Date Fair Value, Converted from share options | $ 1.71 | |||
Weighted-Average Grant Date Fair Value, Granted | $ 0 | |||
2013 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted shares, Granted | 8,664,980 | 7,987,435 | ||
2013 Plan [Member] | Restricted shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted shares, Unvested, beginning balance | 3,796,398 | 7,200,778 | 8,095,238 | |
Number of restricted shares, Granted | 4,233,558 | |||
Number of restricted shares, Vested | (1,520,760) | (2,627,815) | (1,563,222) | |
Number of restricted shares, Forfeited | (561,103) | (776,565) | (3,564,796) | |
Number of restricted shares, Unvested, Ending balance | 1,714,535 | 3,796,398 | 7,200,778 | |
Number of restricted shares, Vested and expected to vest, Ending balance | 1,457,355 | 3,226,939 | 6,120,662 | |
Weighted-Average Grant Date Fair Value, Granted | $ 2.89 | |||
2014 Plan [Member] | Restricted shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted shares, Unvested, beginning balance | 5,761,400 | 3,896,500 | ||
Number of restricted shares, Granted | 6,749,000 | 3,890,500 | ||
Number of restricted shares, Vested | (1,262,200) | (859,100) | ||
Number of restricted shares, Forfeited | (971,900) | (1,166,500) | ||
Number of restricted shares, Unvested, Ending balance | 10,276,300 | 5,761,400 | 3,896,500 | |
Number of restricted shares, Vested and expected to vest, Ending balance | 8,734,855 | 4,897,100 | ||
Weighted-Average Grant Date Fair Value, Granted | $ 0 | $ 1.53 |
Share-based compensation - Sche
Share-based compensation - Schedule of Fair Values of Stock Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, Minimum | [1] | 0.77% | 0.77% |
Risk-free interest rate, Maximum | [1] | 1.76% | 1.76% |
Dividend yield | [2] | ||
Volatility rate, Minimum | [3] | 40.07% | 40.07% |
Volatility rate, Maximum | [3] | 43.30% | 43.30% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | [4] | 4 years 25 days | 4 years 1 month 17 days |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | [4] | 5 years 6 months 25 days | 4 years 6 months 29 days |
[1] | The risk-free interest rate of periods within the contractual life of the share option is based on the USD denominated China Government Bond yield as at the valuation dates. | ||
[2] | The Company has no history or expectation of paying dividends on its common shares. | ||
[3] | Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates. | ||
[4] | The expected term is developed by assuming the share options will be exercised in the middle point between the vesting dates and maturity dates. |
Share-based compensation - S111
Share-based compensation - Schedule of Recognized Compensation Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation costs | $ 9,348 | $ 9,728 | $ 7,644 |
Sales and marketing expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation costs | 98 | 131 | 66 |
General and administrative expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation costs | 6,267 | 6,701 | 6,407 |
Research and development expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation costs | $ 2,983 | $ 2,896 | $ 1,171 |
Basic and Diluted Net income112
Basic and Diluted Net income / (loss) Per Share (Schedule of Basic and Diluted Net income / (loss) Per Share) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||
Net income/(loss) from continuing operations | $ (23,976) | $ (2,370) | $ 28,269 |
Net loss from discontinued operations | (207) | (12,096) | (18,407) |
Net income/(loss) | (24,183) | (14,466) | 9,862 |
Less: Net (loss) attributable to the non-controlling interest | (72) | (1,299) | (950) |
Net income/(loss) attributable to Xunlei Limited | (24,111) | (13,167) | 10,812 |
Deemed dividend to certain shareholders from repurchase of shares | (14,926) | ||
Acceleration of amortization of beneficial conversion feature of Series E upon initial public offering | (49,346) | ||
Deemed dividend to preferred shareholders upon IPO | (32,807) | ||
Net loss attributable to Xunlei Limited’s common shareholders | (24,111) | (13,167) | (105,366) |
Numerator of basic net loss per share from continuing operations | (23,904) | (1,071) | (86,959) |
Net loss from discontinued operations | (207) | (12,096) | (18,407) |
Numerator for diluted loss per share from continuing operations | (23,904) | (1,071) | (86,959) |
Numerator for diluted loss per share from discontinued operations | $ (207) | $ (12,096) | $ (18,407) |
Denominator: | |||
Denominator for basic net loss per share-weighted average shares outstanding | 334,155,668 | 335,987,595 | 194,711,227 |
Denominator for diluted net loss per share | 334,155,668 | 335,987,595 | 194,711,227 |
Basic net loss per share from continuing operations | $ (0.07) | $ 0 | $ (0.45) |
Basic net loss per share from discontinued operations | 0 | (0.04) | (0.09) |
Diluted net loss per share from continuing operations | (0.07) | 0 | (0.45) |
Diluted net loss per share from discontinued operations | $ 0 | $ (0.04) | $ (0.09) |
Series D Preferred Stock [Member] | |||
Numerator: | |||
Accretion to convertible redeemable preferred shares redemption value | $ (1,870) | ||
Deemed dividend to preferred shareholders | (279) | ||
Series C To One Series C [Member] | |||
Numerator: | |||
Contingent beneficial conversion feature | (57) | ||
Series E Preferred Shares [Member] | |||
Numerator: | |||
Accretion to convertible redeemable preferred shares redemption value | (12,754) | ||
Amortization of beneficial conversion feature | (4,139) | ||
Acceleration of amortization of beneficial conversion feature of Series E upon initial public offering | $ (49,346) |
Basic and diluted net income113
Basic and diluted net income / (loss) per share (Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Income per Common Share) (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock options and restricted shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from computation of diluted net income per common share | 2,902,950 | 1,673,342 | 9,041,434 |
Preferred shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from computation of diluted net income per common share | 93,213,683 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Relationship Between Related Parties with their Groups (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Zhuhai Qianyou [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Equity investment of the Group |
Hao Cheng [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Co-founder and shareholder of the Group |
Chuan Wang [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Director of the Company |
Shenglong Zou [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Co-founder and shareholder of the Group |
Beijing Millet technology Co., LTD ("Beijing Xiaomi") [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Company owned by a shareholder of the Group |
Leading Advice Holdings Limited [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Company owned by a Co-founder and shareholder of the Group |
Vantage Point Global Limited [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Shareholder of the Company |
Aiden & Jasmine Limited [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Shareholder of the Company |
Kingsoft Corporation Limited [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Shareholder of the Company |
King Venture Holdings Limited [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Principal shareholder of the Group (shareholding >=10%) |
Xiaomi Venture Limited [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Principal shareholder of the Group |
Morningside Technology Investments Limited [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Principal shareholder of the Group |
Shenzhen Xunlei Big Data Information Service Co., Ltd. [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Equity investment of the Group |
Shenzhen Xunlei Finance Information Service Co., Ltd. [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Subsidiary of the Group’s equity investment |
Millet Communication Technology Co., Ltd. (“Millet Communication Technology”) [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Company owned by a shareholder of the Group |
Beijing Millet Electronic Products Co., Ltd. [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Company owned by a shareholder of the Group |
Beijing Millet Digital Technology Co., Ltd. [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Company owned by a shareholder of the Group |
Millet Technology Co., Ltd. [Member] | |
Schedule of Other Related Party Transactions [Line Items] | |
Related parties relationship | Company owned by a shareholder of the Group |
Related Party Transactions -115
Related Party Transactions - Schedule of Significant Related Party Transactions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Other Related Party Transactions [Line Items] | ||||
Revenue, Net | $ 156,162 | $ 129,635 | $ 133,934 | |
Advertisement revenue | 16,874 | 4,802 | 5,834 | |
Zhuhai Qianyou [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Game sharing costs paid and payable to Zhuhai Qianyou | [1] | 154 | 127 | 402 |
Hao Cheng [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Repayment from related party | 85 | |||
Millet Technology Co., Ltd. [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Revenue, Net | 316 | |||
Beijing Millet Technology Co., LTD [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Technology service revenue related party | 1,010 | 344 | 303 | |
Advertisement revenue | 871 | |||
Millet Communication Technology Co., Ltd. [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Revenue, Net | [2] | 2,483 | ||
Marketing Expense | 20 | |||
Shenglong Zou [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Advance to related party | 10 | |||
Chuan Wang [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Advance to related party | 7 | |||
Aiden & Jasmine Limited [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Accrued to related party | [3] | 54 | 54 | 1,125 |
Vantage Point Global Limited [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Accrued to related party | [3] | $ 146 | $ 146 | $ 3,012 |
[1] | The Company obtained an exclusive game operation right from Zhuhai Qianyou, which is specialized in developing online games. According to the agreement, the Company will share revenues derived by the licensed games with Zhuhai Qianyou. | |||
[2] | In 2016, Shenzhen Onething Technology entered into a contract with Millet Communication Technology for the provision of bandwidth to Millet Communication Technology at a mutually agreed price. | |||
[3] | In 2014, the Group repurchased 3,860,733 common shares from Aiden & Jasmine Limited (Co founder’s company) for USD10,879 thousand and 10,334,679 common shares from Vantage Point Global Limited (Founder’s company) for USD29,121 thousand. According to the repurchase contract, the Company was entitled to an amount (the “Withheld Price”) to withhold any taxes with respect to this repurchase as required under the applicable laws. If the Sellers (Aiden & Jasmine Limited and Vantage Point Global Limited) have not been specifically required by the applicable governmental or regulatory authority to pay any taxes as required under the applicable laws in connection with the repurchase, after the fifth anniversary of the Closing Date, the Company will pay to the Sellers the Withheld Price with a simple interest thereon at the rate of five percent (5%) per annum (the “repayment price”) from the Closing Date. Therefore, the Withheld Price for Aiden & Jasmine Limited and Vantage Point Global Limited was USD 1,125 thousand (including interest of USD 37 thousand) and USD 3,012 thousand (including interest of USD 100 thousand) respectively. The interest accrued in 2016 was USD 54 thousand and 146 thousand for Aiden & Jasmine Limited and Vantage Point Global Limited respectively. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2015 | ||
Treasury stock [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Interest on withheld tax price | 5.00% | |||
Aiden & Jasmine Limited [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Withholding Tax Payable Non-current | [1] | $ 54 | $ 1,125 | $ 54 |
Aiden & Jasmine Limited [Member] | Treasury stock [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Shares repurchased | 3,860,733 | |||
Shares repurchased, value | $ 10,879 | |||
Interest on withheld tax | 37 | |||
Withholding Tax Payable Non-current | 1,125 | 54 | ||
Vantage Point Global Limited [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Withholding Tax Payable Non-current | [1] | 146 | $ 3,012 | 146 |
Vantage Point Global Limited [Member] | Treasury stock [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Shares repurchased | 10,334,679 | |||
Shares repurchased, value | $ 29,121 | |||
Interest on withheld tax | $ 100 | |||
Withholding Tax Payable Non-current | $ 3,012 | $ 146 | ||
[1] | In 2014, the Group repurchased 3,860,733 common shares from Aiden & Jasmine Limited (Co founder’s company) for USD10,879 thousand and 10,334,679 common shares from Vantage Point Global Limited (Founder’s company) for USD29,121 thousand. According to the repurchase contract, the Company was entitled to an amount (the “Withheld Price”) to withhold any taxes with respect to this repurchase as required under the applicable laws. If the Sellers (Aiden & Jasmine Limited and Vantage Point Global Limited) have not been specifically required by the applicable governmental or regulatory authority to pay any taxes as required under the applicable laws in connection with the repurchase, after the fifth anniversary of the Closing Date, the Company will pay to the Sellers the Withheld Price with a simple interest thereon at the rate of five percent (5%) per annum (the “repayment price”) from the Closing Date. Therefore, the Withheld Price for Aiden & Jasmine Limited and Vantage Point Global Limited was USD 1,125 thousand (including interest of USD 37 thousand) and USD 3,012 thousand (including interest of USD 100 thousand) respectively. The interest accrued in 2016 was USD 54 thousand and 146 thousand for Aiden & Jasmine Limited and Vantage Point Global Limited respectively. |
Related Party Transactions -117
Related Party Transactions - Schedule of Amount Due to from Related Party (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Other Related Party Transactions [Line Items] | |||
Accounts payable to related party | $ 45 | $ 38 | |
Long-term payable to related party | 4,537 | 4,337 | |
Accounts and other receivable from related party | 1,097 | 45 | |
Zhuhai Qianyou [Member] | |||
Schedule of Other Related Party Transactions [Line Items] | |||
Accounts payable to related party | 45 | 38 | $ 84 |
Aiden & Jasmine Limited [Member] | |||
Schedule of Other Related Party Transactions [Line Items] | |||
Long-term payable to related party | 1,233 | 1,179 | 1,125 |
Vantage Point Global Limited [Member] | |||
Schedule of Other Related Party Transactions [Line Items] | |||
Long-term payable to related party | 3,304 | 3,158 | 3,012 |
Beijing Millet Technology Co., LTD [Member] | |||
Schedule of Other Related Party Transactions [Line Items] | |||
Accounts and other receivable from related party | 95 | 30 | 5 |
Shenglong Zou [Member] | |||
Schedule of Other Related Party Transactions [Line Items] | |||
Accounts and other receivable from related party | 9 | 9 | 10 |
Chuan Wang [Member] | |||
Schedule of Other Related Party Transactions [Line Items] | |||
Accounts and other receivable from related party | 5 | 6 | 7 |
Millet Communication Technology Co., Ltd. [Member] | |||
Schedule of Other Related Party Transactions [Line Items] | |||
Accounts and other receivable from related party | 939 | ||
Beijing Millet Payment Technologies Limited [Member] | |||
Schedule of Other Related Party Transactions [Line Items] | |||
Accounts and other receivable from related party | 38 | ||
Shenzhen Xunlei Finance Information Service Co., Ltd. [Member] | |||
Schedule of Other Related Party Transactions [Line Items] | |||
Accounts and other receivable from related party | 5 | ||
Shenzhen Crystal Technology Co., Ltd. [Member] | |||
Schedule of Other Related Party Transactions [Line Items] | |||
Accounts and other receivable from related party | $ 6 |
Taxation - Additional Informati
Taxation - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 14, 2008 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 |
Income Tax [Line Items] | ||||||||||
Effective income tax rate | 15.00% | 15.00% | 10.00% | |||||||
Tax rate percent | 15.00% | |||||||||
Research and development expense percentage | 150.00% | |||||||||
Preferential tax rate | 10.00% | 10.00% | ||||||||
Undistributed earnings of foreign subsidiaries | $ 19,883 | $ 34,313 | ||||||||
Foreign withholding taxes | 1,988 | $ 3,431 | ||||||||
Tax Credit Carryforward, Amount | $ 17,363 | |||||||||
PRC Enterprise [Member] | ||||||||||
Income Tax [Line Items] | ||||||||||
Effective income tax rate | 25.00% | |||||||||
Shenzhen Xunlei [Member] | ||||||||||
Income Tax [Line Items] | ||||||||||
Income tax holiday description | Shenzhen Xunlei has been claiming this Super Deduction in ascertaining its tax assessable profits and brought forward tax losses from 2009 onwards. In addition, following the approval by the relevant tax authority in July 2010, Shenzhen Xunlei was recognized as an enterprise engaged in software development activities. Accordingly, it is entitled to a tax holiday of 2-year Exemption and 3-year 50% Reduction from 2010 onwards. | |||||||||
Preferential tax rate | 15.00% | 15.00% | ||||||||
Shenzhen Xunlei [Member] | Scenario, Forecast [Member] | ||||||||||
Income Tax [Line Items] | ||||||||||
Preferential tax rate | 15.00% | |||||||||
Shenzhen Onething [Member] | ||||||||||
Income Tax [Line Items] | ||||||||||
Effective income tax rate | 15.00% | |||||||||
Preferential tax rate | 15.00% | |||||||||
New Enterprise Income Tax Rate [Member] | ||||||||||
Income Tax [Line Items] | ||||||||||
Favorable statutory tax rate | 15.00% | |||||||||
New Enterprise Income Tax Rate [Member] | Subsidiaries And VIE's Subsidiaries [Member] | ||||||||||
Income Tax [Line Items] | ||||||||||
Effective income tax rate | 25.00% | |||||||||
Enterprise Income Tax Rate [Member] | ||||||||||
Income Tax [Line Items] | ||||||||||
Effective income tax rate | 15.00% | |||||||||
Shenzhen Special Economic Zone [Member] | ||||||||||
Income Tax [Line Items] | ||||||||||
Effective income tax rate | 25.00% | 25.00% | 25.00% | |||||||
Transitional income tax rates | 24.00% | 22.00% | 20.00% | 18.00% |
Taxation - Schedule of Current
Taxation - Schedule of Current and Deferred Portions of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current income tax expenses | $ 71 | $ 289 | $ 397 |
Deferred income tax benefits | (1,335) | (1,175) | 66 |
Income tax expense/ (benefit) | $ (1,264) | $ (886) | $ 463 |
Taxation - Summary of Aggregate
Taxation - Summary of Aggregate Amount and Per Share Effect of Tax Holiday (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Aggregate dollar effect | $ (1,430) | $ (830) | $ 2,784 |
Per share effectbasic | $ 0 | $ 0 | $ 0.01 |
Per share effectdiluted | $ 0 | $ 0 | $ 0.01 |
Taxation - Reconciliation of To
Taxation - Reconciliation of Total Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Continuing operations | |||
Income tax expense/(benefit) at PRC statutory rate (based on statutory tax rate applicable to enterprises in Shenzhen, China) | $ (6,310) | $ (438) | $ 7,211 |
Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC | 2,145 | 2,400 | (838) |
Non-deductible expenses | 12 | 14 | 714 |
Effect of Super Deduction available to Shenzhen Xunlei | (901) | (1,365) | |
Effect of tax holiday | 1,430 | (369) | (4,613) |
Change in valuation allowance of deferred tax assets | 6,396 | 4,750 | 291 |
Effect on deferred tax assets due to change in tax rates | (8) | (103) | |
Outside basis difference arising from VIE and its subsidiaries in the PRC | (5,743) | (2,174) | 478 |
Expiration of tax loss | 90 | 290 | 51 |
Others | 1,617 | (5,351) | (1,363) |
Income tax expense/ (benefit) | $ (1,264) | $ (886) | $ 463 |
Taxation - Summary of Changes i
Taxation - Summary of Changes in Deferred Tax Asset and Liability Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets, current portion: | ||
Net operating loss carried forward | $ 1,276 | $ 417 |
Amortization of intangible assets arising from intragroup transactions | 51 | 95 |
Impairment of long-term equity investment | 115 | |
Allowance for advance to suppliers | 120 | |
Valuation allowance | (106) | (81) |
Deferred tax assets, current portion, net | 1,221 | 689 |
Deferred tax assets, non-current portion: | ||
Net operating loss carried forward | 12,093 | 13,016 |
Amortization of intangible assets arising from intragroup transactions | 54 | |
Impairment of long-term equity investment | 348 | |
Allowance for advance to suppliers | 576 | |
Valuation allowance | (9,745) | (4,477) |
Deferred tax assets, non-current portion, net | 3,272 | 8,593 |
Deferred tax liabilities, non-current portion: | ||
Outside basis difference | (635) | (6,378) |
Online game licenses [Member] | ||
Deferred tax assets, current portion: | ||
Impairment of online game licenses | $ 23 |
Taxation - Summary of Change123
Taxation - Summary of Changes in Deferred Tax Asset and Liability Balances (Parenthetical) (Detail) $ in Thousands, ¥ in Millions | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) |
Income Tax [Line Items] | |||
Net operating tax loss carryforwards | $ 17,363 | ||
Deferred tax liabilities | $ 25,512 | $ 2,541 | |
Shenzhen Xunlei [Member] | |||
Income Tax [Line Items] | |||
Capitalized software sold at market valuation | ¥ | ¥ 42 |
Taxation - Summary of Net Opera
Taxation - Summary of Net Operating Loss Carryforwards (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Net operating tax loss carryforwards [Line Items] | |
Net operating tax loss carryforwards | $ 17,363 |
2017 [Member] | |
Net operating tax loss carryforwards [Line Items] | |
Net operating tax loss carryforwards | 775 |
2018 [Member] | |
Net operating tax loss carryforwards [Line Items] | |
Net operating tax loss carryforwards | 5,795 |
2019 [Member] | |
Net operating tax loss carryforwards [Line Items] | |
Net operating tax loss carryforwards | 3,414 |
2020 [Member] | |
Net operating tax loss carryforwards [Line Items] | |
Net operating tax loss carryforwards | 559 |
2021 and thereafter [Member] | |
Net operating tax loss carryforwards [Line Items] | |
Net operating tax loss carryforwards | $ 6,820 |
Taxation - Schedule of Movement
Taxation - Schedule of Movement of Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Beginning balance | $ (4,559) | $ (291) | |
Additions | (5,292) | (4,268) | (291) |
Write-off | |||
Ending balance | $ (9,851) | $ (4,559) | $ (291) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair value measurements, Short term investments | $ 181,960 | $ 70,328 |
Fair value measurements, Total | 259,075 | 384,685 |
Time deposits [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair value measurements, Cash equivalent, time deposits with original maturities less than three months | 115,944 | 314,357 |
Investments in financial instruments [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair value measurements, Short term investments | 143,131 | 70,328 |
Significant other observable inputs (Level 2) [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair value measurements, Total | 259,075 | 384,685 |
Significant other observable inputs (Level 2) [Member] | Time deposits [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair value measurements, Cash equivalent, time deposits with original maturities less than three months | 115,944 | 314,357 |
Significant other observable inputs (Level 2) [Member] | Investments in financial instruments [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair value measurements, Short term investments | $ 143,131 | $ 70,328 |
Other Income, Net - Schedule of
Other Income, Net - Schedule of Other Income, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Subsidy income | $ 2,358 | $ 1,902 | $ 2,236 | ||
Fair value changes of warrants liabilities | 8,054 | ||||
Dilution gains arising from deemed disposal of investment (note 11) | 689 | [1] | 702 | [1] | 449 |
Investment loss-impairment of long-term investment (note 11) | (1,654) | (802) | |||
Exchange losses | (354) | (2,771) | (176) | ||
Settlement income | 326 | 755 | 489 | ||
Others | 458 | 175 | (557) | ||
Other income, net | 6,503 | 3,627 | 13,966 | ||
Short-term Investments [Member] | |||||
Investment income from short-term investments | 4,054 | 3,666 | 3,471 | ||
Other Long-term Investments [Member] | |||||
Investment income from short-term investments | $ 626 | ||||
[1] | In May 2014, the Group obtained the right to appoint a director to Chengdu Diting and thus had one out of five seats on the board of directors of this investee. Given the existence of significant influence, the Group started to apply equity method in May 2014 although the Group's ownership interest in Chengdu Diting decreased from 19.9% to 16.58% because Chengdu Diting issued new shares to a third party for a total consideration of RMB 10 million (USD 1,627 thousand). In April of 2015, the new investor of Chengdu Diting injected capital of RMB 39.07 million (USD 6.39 million). As a result of the transaction, the Group 's ownership interest in Chengdu Diting was diluted from 16.58% to 13.27%. So the recognition of Chengdu Diting's ownership for the Group transferred from equity method to cost method. The Group recorded a dilution gain of RMB 4.38 million (USD 702 thousand) arising from the sale of shares by the investee to third parties at a price in excess of the per share carrying value of the shares owned by the Group in 2015. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2015USD ($) | Jan. 31, 2015CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Apr. 20, 2017 | |
Loss Contingencies [Line Items] | |||||||
Legal and litigation related expenses | $ 1,669 | $ 3,307 | $ 1,073 | ||||
Aggregate amount of claimed damages | $ 1,370 | ¥ 8,400 | |||||
Legal and litigation related expenses | 2,904 | 2,601 | |||||
Scenario, Forecast [Member] | Copyright infringement [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of lawsuits pending | 56 | ||||||
Pending Litigation [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Aggregate amount of claimed damages | 12,870 | ¥ 89,270 | 13,980 | ||||
Pending Litigation [Member] | Scenario, Forecast [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of lawsuits pending | 61 | ||||||
Switchboard, Servers, Office Software And Construction In Process [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Irrevocable purchase obligations | 7,527 | ||||||
Rental commitments [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Total lease expenses | 2,382 | 2,751 | 3,068 | ||||
Bandwidth Lease Commitments [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Total lease expenses for continuing operations | $ 55,135 | 37,218 | 33,545 | ||||
Total lease expenses for discontinued operations | $ 2,983 | $ 6,828 |
Commitments and Contingencie129
Commitments and Contingencies - Future Minimum Payments under Non-Cancellable Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Rental commitments [Member] | |
Operating Leased Assets [Line Items] | |
2,017 | $ 2,993 |
2,018 | 2,761 |
2,019 | 1,182 |
Future minimum payments, Total | 6,936 |
Bandwidth Lease Commitments [Member] | |
Operating Leased Assets [Line Items] | |
2,017 | 18,651 |
2,018 | 322 |
2,019 | $ 18,973 |
Certain Risks and Concentrat130
Certain Risks and Concentration - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($) | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Maximum foreign ownership in internet information provider or other value-added telecommunication service provider's business allowed under PRC laws and regulations | 50.00% | ||
Retained earnings and distributable reserves | $ (36,704) | $ (12,593) | |
Number of top customers accounted for net revenues | 10 | 10 | 10 |
Accounts Payable,Inter-companies Balance, Current | $ 9,360 | $ 11,626 | |
Accrued Liabilities and Other Liabilities, Inter-companies Balance | $ 91,477 | $ 105,872 | |
Net revenues [Member] | Customer concentration risk [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of net revenues accounted from customers | 18.00% | 26.00% | 16.00% |
Shenzhen Xunlei Networking Technologies, Co., Ltd [Member] | |||
Concentration Risk [Line Items] | |||
operating contract term | 10 years | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Concentration Risk [Line Items] | |||
Retained earnings and distributable reserves | $ 2,541 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Concentration Risk [Line Items] | |||
Retained earnings and distributable reserves | $ 25,512 |
Certain Risks and Concentrat131
Certain Risks and Concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Balance sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current assets: | |||||
Cash and cash equivalents | $ 199,504 | $ 361,777 | $ 404,275 | $ 93,906 | |
Short-term investments | 181,960 | 70,328 | |||
Accounts receivable, net | 14,536 | 11,266 | |||
Due from related parties | 1,097 | 45 | |||
Deferred tax assets | 1,221 | 689 | |||
Inventories | 374 | 480 | |||
Prepayments and other current assets | 13,593 | 13,068 | |||
Total current assets | 412,285 | 457,653 | |||
Non-current assets: | |||||
Deferred tax assets | 3,272 | 8,593 | |||
Property and equipment, net | 21,016 | 18,036 | |||
Construction in progress | 574 | 14 | |||
Intangible assets, net | 10,746 | 13,433 | |||
Goodwill | 20,497 | 21,896 | |||
Other long-term prepayments | 1,187 | 7,431 | |||
Total assets | 509,795 | 538,361 | |||
Current liabilities: | |||||
Accounts payable (note a) | 33,376 | 21,736 | |||
Due to a related party | 45 | 38 | |||
Deferred revenue and income, current portion | 24,532 | 25,113 | |||
Accrued liabilities and other payables (note b) | 33,131 | 27,379 | |||
Total current liabilities | 93,405 | 76,736 | |||
Non-current liabilities: | |||||
Deferred revenue and income, non-current portion | [1] | 4,082 | 5,383 | ||
Total liabilities | 103,545 | 93,680 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 40,393 | 32,461 | |||
Short-term investments | 28,749 | 69,522 | |||
Accounts receivable, net | 14,824 | 11,573 | |||
Due from related parties | 1,083 | 30 | |||
Deferred tax assets | 971 | 351 | |||
Inventories | 374 | 480 | |||
Prepayments and other current assets | 15,123 | 31,659 | |||
Total current assets | 101,517 | 146,076 | |||
Non-current assets: | |||||
Equity method investments | 25,479 | 9,884 | |||
Deferred tax assets | 1,849 | 6,791 | |||
Property and equipment, net | 20,059 | 17,991 | |||
Construction in progress | 574 | 14 | |||
Intangible assets, net | 11,083 | 14,297 | |||
Goodwill | 20,497 | 21,896 | |||
Other long-term prepayments | 1,187 | 7,430 | |||
Total non-current assets | 80,728 | 78,303 | |||
Total assets | 182,245 | 224,379 | |||
Current liabilities: | |||||
Accounts payable (note a) | [2] | 44,162 | 33,262 | ||
Due to a related party | 45 | 38 | |||
Deferred revenue and income, current portion | 24,260 | 24,902 | |||
Income tax payable | 2,253 | 2,407 | |||
Accrued liabilities and other payables (note b) | [3] | 104,114 | 131,312 | ||
Total current liabilities | 174,834 | 191,921 | |||
Non-current liabilities: | |||||
Deferred revenue and income, non-current portion | 3,539 | 4,751 | |||
Total non-current liabilities | 3,539 | 4,751 | |||
Total liabilities | $ 178,373 | $ 196,672 | |||
[1] | As of December 31, 2016, the non-current portion included membership subscription revenue of USD 820 thousand (2015: USD719 th0usand), government grants of USD2,719 thousand (2015: USD4,032 thousand), and reimbursement from the depositary of USD543 thousand (2015: USD632 thousand). | ||||
[2] | The balance included inter-companies balances with the Company and its subsidiaries of USD 11,626 thousand and USD 9,360 thousand as of December 31, 2015 and 2016, respectively. | ||||
[3] | The balance included inter-companies balances with the Company and its subsidiaries of USD 105,872 thousand and USD 91,477 thousand as of December 31, 2015 and 2016, respectively. |
Certain Risks and Concentrat132
Certain Risks and Concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Income Statement (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net revenue from continuing operations | $ 156,162 | $ 129,635 | $ 133,934 |
Net income / (loss) attributable to Xunlei Limited | (24,111) | (13,167) | 10,812 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Net revenue from continuing operations | 156,192 | 129,198 | 132,515 |
Net income / (loss) attributable to Xunlei Limited | $ (32,402) | $ (6,408) | $ 12,677 |
Certain Risks and Concentrat133
Certain Risks and Concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Cash Flow (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net cash provided by operating activities | $ 16,970 | $ 13,764 | $ 48,202 |
Net cash (used in)/provided by investing activities | (158,335) | (54,982) | (70,546) |
Net cash provided by financing activities | (11,041) | 5,030 | 333,268 |
Net increase in cash and cash equivalents | (152,406) | (36,188) | 310,924 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Net cash provided by operating activities | 3,565 | 41,723 | 70,822 |
Net cash (used in)/provided by investing activities | 1,859 | (51,721) | (78,335) |
Net cash provided by financing activities | 2,508 | 1,055 | 856 |
Net increase in cash and cash equivalents | $ 7,932 | $ (8,943) | $ (6,657) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) ¥ in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2017shares | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | |
Henan Tourism Information Co., Ltd., [Member] | |||
Subsequent Event [Line Items] | |||
Business Combination, Consideration Payable | $ 3.5 | ¥ 24 | |
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | 80.00% | |
Subsequent Event [Member] | Treasury Stock [Member] | |||
Subsequent Event [Line Items] | |||
Treasury Stock, Shares, Acquired | 465,350 | ||
Subsequent Event [Member] | Restricted shares [Member] | |||
Subsequent Event [Line Items] | |||
Restricted stock granted | 1,130,000 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restriction on transfer of net assets | $ 124,026 | $ 117,728 |
Kingsoft acquisition in 2014 Ad
Kingsoft acquisition in 2014 Additional Information (Detail) - Kingsoft Corporation Limited [Member] $ in Thousands | Sep. 05, 2014USD ($) |
Business Combination, Consideration Transferred, Fair value of share based award | $ 300 |
Business Combination, Consideration Transferred, Fair value of share based award attribute to Serives by Employess Before combination | 303 |
Business Combination, Consideration Transferred, Fair value of share based award attribute to Serives by Employess After combination | 44 |
Payments to Acquire Businesses, Gross | $ 33,000 |
Kingsoft acquisition in 2014 (D
Kingsoft acquisition in 2014 (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property and equipment | $ 255 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||
Goodwill | 20,497 | $ 21,896 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 33,303 | |
Trademarks [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 6,120 | |
Noncompete Agreements [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1,490 | |
Technology [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2,381 |
Additional information_ cond138
Additional information: condensed financial statements of the Company - Schedule of Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current assets: | |||||
Cash and cash equivalents | $ 199,504 | $ 361,777 | $ 404,275 | $ 93,906 | |
Prepayments and other current assets | 13,593 | 13,068 | |||
Total current assets | 412,285 | 457,653 | |||
Non-current assets: | |||||
Property, equipment and software, net | 21,016 | 18,036 | |||
Total assets | 509,795 | 538,361 | |||
Current liabilities: | |||||
Accounts payable | 33,376 | 21,736 | |||
Deferred revenue and income, current portion | 24,532 | 25,113 | |||
Total current liabilities | 93,405 | 76,736 | |||
Non-current liabilities: | |||||
Deferred revenue and income, non-current | [1] | 4,082 | 5,383 | ||
Due to related parties, non-current portion | 4,537 | 4,337 | |||
Other long-term payable | 886 | 846 | |||
Total liabilities | 103,545 | 93,680 | |||
Commitments and contingencies | |||||
Shareholders' equity | |||||
Common shares | 83 | 85 | |||
Treasury shares 29,558,094 shares as at December 31, 2015 and 38,332,209 shares as at December 31, 2016 | 9 | 7 | |||
Total Xunlei Limited’s shareholders’ equity | 408,238 | 446,749 | 457,891 | 79,194 | |
Total liabilities and shareholders’ equity | 509,795 | 538,361 | |||
Xunlei Limited [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 273,160 | 292,175 | $ 309,457 | $ 28,863 | |
Due from subsidiaries and consolidated VIEs | 101,130 | 92,864 | |||
Prepayments and other current assets | 348 | 1,090 | |||
Total current assets | 374,638 | 386,129 | |||
Non-current assets: | |||||
Property, equipment and software, net | 3 | 0 | |||
Investments in subsidiaries and consolidated VIEs | 43,447 | 68,481 | |||
Total assets | 418,088 | 454,610 | |||
Current liabilities: | |||||
Accounts payable | 55 | 55 | |||
Due to subsidiaries and consolidated VIEs | 1,862 | 388 | |||
Deferred revenue and income, current portion | 272 | 211 | |||
Accrued liabilities and other payables | 1,695 | 1,393 | |||
Total current liabilities | 3,884 | 2,047 | |||
Non-current liabilities: | |||||
Deferred revenue and income, non-current | 543 | 632 | |||
Due to related parties, non-current portion | 4,537 | 4,337 | |||
Other long-term payable | 886 | 845 | |||
Total liabilities | 9,850 | 7,861 | |||
Commitments and contingencies | |||||
Shareholders' equity | |||||
Common shares | 83 | 85 | |||
Treasury shares 29,558,094 shares as at December 31, 2015 and 38,332,209 shares as at December 31, 2016 | 9 | 7 | |||
Other shareholders' equity | 408,146 | 446,657 | |||
Total Xunlei Limited’s shareholders’ equity | 408,238 | 446,749 | |||
Total liabilities and shareholders’ equity | $ 418,088 | $ 454,610 | |||
[1] | As of December 31, 2016, the non-current portion included membership subscription revenue of USD 820 thousand (2015: USD719 th0usand), government grants of USD2,719 thousand (2015: USD4,032 thousand), and reimbursement from the depositary of USD543 thousand (2015: USD632 thousand). |
Additional information_ cond139
Additional information: condensed financial statements of the Company - Schedule of Condensed Balance Sheets (Parenthetical) (Detail) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheet Statements Captions [Line Items] | ||
Treasury stock, shares | 38,332,209 | 29,558,094 |
Xunlei Limited [Member] | ||
Consolidated Balance Sheet Statements Captions [Line Items] | ||
Treasury stock, shares | 38,332,209 | 29,558,094 |
Additional information_ cond140
Additional information: condensed financial statements of the Company - Schedule of Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||
Revenues | $ 156,162 | $ 129,635 | $ 133,934 |
Cost of revenues | (80,319) | (60,034) | (55,755) |
Gross loss | 75,843 | 69,601 | 78,179 |
Operating expenses | |||
Research and development expenses | (64,360) | (38,250) | (29,252) |
Sales and marketing expenses | (18,782) | (15,042) | (13,527) |
General and administrative expenses | (26,168) | (28,774) | (26,945) |
Total operating expenses | (109,310) | (82,066) | (69,724) |
Operating income / (loss) | (33,467) | (12,465) | 8,455 |
Interest income | 2,158 | 5,833 | 6,733 |
Interest expense | (239) | (239) | (163) |
Other income, net | 6,503 | 3,627 | 13,966 |
Income/(loss) from continuing operations before income tax | (25,240) | (3,256) | 28,732 |
Income tax | 1,264 | 886 | (463) |
Net income / (loss) | (24,183) | (14,466) | 9,862 |
Net income attributable to the non-controlling interest | (72) | (1,299) | (950) |
Net loss attributable to Xunlei Limited’s common shareholders | (24,111) | (13,167) | (105,366) |
Xunlei Limited [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Revenues | |||
Cost of revenues | (131) | (1,673) | |
Gross loss | (131) | (1,673) | |
Operating expenses | |||
Research and development expenses | |||
Sales and marketing expenses | (10) | ||
General and administrative expenses | (1,193) | (1,314) | (996) |
Total operating expenses | (1,203) | (1,314) | (996) |
Operating income / (loss) | (1,203) | (1,445) | (2,669) |
Interest income | 1,521 | 5,318 | 6,171 |
Interest expense | (239) | (239) | (163) |
Other income, net | 715 | (3,261) | 7,602 |
Loss from subsidiaries and consolidated VIEs | (24,905) | (13,540) | (129) |
Income/(loss) from continuing operations before income tax | (24,111) | (13,167) | 10,812 |
Income tax | |||
Net income / (loss) | (24,111) | (13,167) | 10,812 |
Net income attributable to the non-controlling interest | |||
Net loss attributable to Xunlei Limited’s common shareholders | $ (24,111) | $ (13,167) | $ 10,812 |
Additional information_ cond141
Additional information: condensed financial statements of the Company - Schedule of Condensed Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net cash used in operating activities | $ 16,970 | $ 13,764 | $ 48,202 |
Cash flows from investing activities | |||
Net cash (used in) /generated from investing activities | (158,335) | (54,982) | (70,546) |
Cash flows from financing activities | |||
Net cash generated from /(used in) financing activities | (11,041) | 5,030 | 333,268 |
Net increase/(decrease) in cash and cash equivalents | (152,406) | (36,188) | 310,924 |
Cash and cash equivalents at beginning of year | 361,777 | 404,275 | 93,906 |
Effect of exchange rates on cash and cash equivalents | (9,867) | (6,310) | (555) |
Cash and cash equivalents at end of year | 199,504 | 361,777 | 404,275 |
Xunlei Limited [Member] | |||
Cash flows from operating activities | |||
Net cash used in operating activities | (20,312) | (26,069) | (41,485) |
Cash flows from investing activities | |||
Net cash (used in) /generated from investing activities | 15,557 | 3,812 | (10,333) |
Cash flows from financing activities | |||
Net cash generated from /(used in) financing activities | (14,260) | 4,975 | 332,412 |
Net increase/(decrease) in cash and cash equivalents | (19,015) | (17,282) | 280,594 |
Cash and cash equivalents at beginning of year | 292,175 | 309,457 | 28,863 |
Effect of exchange rates on cash and cash equivalents | |||
Cash and cash equivalents at end of year | $ 273,160 | $ 292,175 | $ 309,457 |