Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2021 |
Entity Central Index Key | 0001510593 |
Entity Registrant Name | Xunlei Ltd |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 337,257,946 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-35224 |
Entity Address, Address Line One | 21-23/F, Block B, Building No. 12 |
Entity Address, Address Line Two | No.18 Shenzhen Bay ECO-Technology Park, |
Entity Address, Address Line Three | Keji South Road, Yuehai Street |
Entity Address, City or Town | Shenzhen |
Entity Address, Postal Zip Code | 518057 |
Entity Address, Country | CN |
Entity Incorporation, State or Country Code | E9 |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Shenzhen, the People’s Republic of China |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Contact Personnel Name | Naijiang (Eric) Zhou |
Entity Address, Address Line One | 21-23/F, Block B, Building No. 12 |
Entity Address, Address Line Two | No.18 Shenzhen Bay ECO-Technology Park, |
Entity Address, Address Line Three | Keji South Road, Yuehai Street |
Entity Address, City or Town | Shenzhen |
Entity Address, Postal Zip Code | 518057 |
Entity Address, Country | CN |
City Area Code | +86-755 |
Local Phone Number | 8633-8443 |
Contact Personnel Email Address | zhounaijiang@xunlei.com |
ADR | |
Entity Addresses [Line Items] | |
Trading Symbol | XNET |
Title of 12(b) Security | American depositary shares |
Security Exchange Name | NASDAQ |
Common shares [Member] | |
Entity Addresses [Line Items] | |
Trading Symbol | XNET |
Title of 12(b) Security | Common shares, par value US$0.00025 per share |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 123,358 | $ 137,248 |
Short-term investments | 115,652 | 117,821 |
Accounts receivable, net (Allowance for current expected credit losses of USD9,329 and USD1,764 as of December 31, 2020 and 2021, respectively) | 26,135 | 22,983 |
Inventories | 1,363 | 1,726 |
Due from related parties (Allowance for current expected credit losses of nil and USD339 as of December 31, 2020 and 2021, respectively) | 15,578 | 10,970 |
Prepayments and other current assets (Allowance for current expected credit losses of USD10,283 and USD10,364 as of December 31, 2020 and 2021, respectively) | 11,842 | 11,534 |
Total current assets | 293,928 | 302,282 |
Non-current assets: | ||
Restricted cash | 4,078 | 1,541 |
Long-term investments | 31,495 | 26,734 |
Property and equipment, net | 57,657 | 50,725 |
Right-of-use assets | 27 | 1,954 |
Intangible assets, net | 8,299 | 8,857 |
Goodwill | 23,136 | 22,607 |
Due from a related party, non-current portion (Allowance for current expected credit losses of nil and USD689 as of December 31, 2020 and 2021, respectively) | 19,311 | |
Long-term prepayments and other assets | 2,787 | 905 |
Total assets | 440,718 | 415,605 |
Current liabilities: | ||
Accounts payable (including accounts payable of the consolidated variable interest entity ("VIE") without recourse to the Company of USD20,588 and USD23,789 as of December 31, 2020 and 2021, respectively) | 26,407 | 20,644 |
Due to related parties (including due to related parties of the consolidated VIE without recourse to the Company of USD55 and USD91 as of December 31, 2020 and 2021, respectively) | 1,597 | 5,389 |
Contract liabilities and deferred income, current portion (including contract liabilities and deferred income, current portion of the consolidated VIE without recourse to the Company of USD34,040 and USD36,740 as of December 31, 2020 and 2021, respectively) | 36,892 | 34,040 |
Income tax payable (including income tax payable of the consolidated VIE without recourse to the Company of USD2,500 and USD2,451 as of December 31, 2020 and 2021, respectively) | 2,531 | 2,553 |
Accrued liabilities and other payables (including accrued liabilities and other payables of the consolidated VIE without recourse to the Company of USD33,361 and USD42,449 as of December 31, 2020 and 2021, respectively ) | 49,557 | 38,689 |
Bank borrowings (including bank borrowings of the consolidated VIE without recourse to the Company of nil and USD2,876 as of December 31, 2020 and 2021, respectively) | 2,876 | |
Lease liabilities (including lease liabilities, current portion of the consolidated VIE without recourse to the Company of USD1,912 and USD18 as of December 31, 2020 and 2021, respectively) | 18 | 1,961 |
Total current liabilities | 119,878 | 103,276 |
Non-current liabilities: | ||
Contract liabilities and deferred income, non-current portion (including contract liabilities and deferred income, non-current portion of the consolidated VIE without recourse to the Company of USD920 and USD845 as of December 31, 2020 and 2021, respectively) | 845 | 920 |
Deferred tax liabilities, non-current portion (including deferred tax liabilities of the consolidated VIE without recourse to the Company of USD1,085 and USD930 as of December 31, 2020 and 2021, respectively) | 930 | 1,085 |
Bank borrowings, non-current portion (including bank borrowings of the consolidated VIE without recourse to the Company of USD19,924 and USD17,291 as of December 31, 2020 and 2021, respectively) | 17,291 | 19,924 |
Lease liabilities, non-current portion (including lease liabilities, non-current portion of the consolidated VIE without recourse to the Company of USD27 and USD7 as of December 31, 2020 and 2021, respectively) | 7 | 27 |
Total liabilities | 138,951 | 125,232 |
Commitments and contingencies | ||
Equity | ||
Common shares (368,877,205 shares issued and 334,401,981 shares outstanding as of December 31, 2020; 368,877,205 shares issued and 337,257,946 shares outstanding as of December 31, 2021) | 84 | 84 |
Additional paid-in-capital | 476,057 | 469,887 |
Accumulated other comprehensive (loss)/income | 1,988 | (2,144) |
Statutory reserves | 6,155 | 5,414 |
Treasury shares (34,475,224 shares and 31,619,259 shares as of December 31, 2020 and 2021, respectively) | 8 | 8 |
Accumulated deficits | (180,645) | (181,095) |
Total Xunlei Limited's shareholders' equity | 303,647 | 292,154 |
Non-controlling interests | (1,880) | (1,781) |
Total liabilities and shareholders' equity | $ 440,718 | $ 415,605 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for credit losses of accounts receivable | $ 1,764,000 | $ 9,329,000 |
Allowance for credit losses of prepayments and other current assets | 10,364,000 | 10,283,000 |
Allowance for current expected credit losses of due from related parties | 339,000 | 0 |
Allowance for current expected credit losses of Due from related parties | $ 689,000 | $ 0 |
Common stock, shares issued | 368,877,205 | 368,877,205 |
Common stock, shares outstanding | 337,257,946 | 334,401,981 |
Treasury stock, shares | 31,619,259 | 34,475,224 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts payable, consolidated variable interest entities and VIE's subsidiaries without recourse | $ 23,789,000 | $ 20,588,000 |
Due to related party, consolidated variable interest entities and VIE's subsidiaries without recourse | 91,000 | 55,000 |
Contract liabilities and deferred income, current portion of the consolidated variable interest entities and VIE's subsidiaries without recourse | 36,740,000 | 34,040,000 |
Income tax payable, consolidated variable interest entities and VIE's subsidiaries without recourse | 2,451,000 | 2,500,000 |
Accrued liabilities and other payables, consolidated variable interest entities and VIE's subsidiaries without recourse | 42,449,000 | 33,361,000 |
Bank borrowings, current, consolidated variable interest entities and VIE's subsidiaries without recourse | 2,876,000 | 0 |
Lease liabilities, current portion of the consolidated VIE and its subsidiaries without recourse | 18,000 | 1,912,000 |
Contract liabilities and deferred income, non-current portion of the consolidated variable interest entities and VIE's subsidiaries without recourse | 845,000 | 920,000 |
Deferred Taxes Liabilities Consolidated Variable Interest Entities Without Recourse | 930,000 | 1,085,000 |
Bank borrowings, consolidated variable interest entities and VIE's subsidiaries without recourse | 17,291,000 | 19,924,000 |
Lease liabilities, non-current portion, consolidated variable interest entities and VIE's subsidiaries without recourse | $ 7,000 | $ 27,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net revenues | |||
Total revenues, net of rebates and discounts | $ 239,601 | $ 186,683 | $ 181,267 |
Business taxes and surcharges | (819) | (312) | (602) |
Net revenues | 238,782 | 186,371 | 180,665 |
Cost of revenues | (118,603) | (92,637) | (99,913) |
Gross profit | 120,179 | 93,734 | 80,752 |
Operating expenses | |||
Research and development expenses | (61,859) | (55,463) | (68,571) |
Sales and marketing expenses | (24,569) | (18,064) | (31,820) |
General and administrative expenses | (36,868) | (33,910) | (38,930) |
Asset impairment gain/(loss), net of recoveries | (1,206) | (5,090) | 2,147 |
Total operating expenses | (124,502) | (112,527) | (137,174) |
Operating loss | (4,323) | (18,793) | (56,422) |
Interest income | 723 | 1,471 | 1,897 |
Interest expense | (95) | (406) | (75) |
Other income, net | 4,678 | 4,737 | 5,861 |
(Loss)/income before income tax | 983 | (12,991) | (48,739) |
Income tax (expenses)/benefits | 125 | (1,149) | (4,676) |
Net (loss)/income for the year | 1,108 | (14,140) | (53,415) |
Less: net loss attributable to the non-controlling interests | (83) | (300) | (246) |
Net (loss)/income attributable to Xunlei Limited | 1,191 | (13,840) | (53,169) |
Net (loss)/income for the year | 1,108 | (14,140) | (53,415) |
Other comprehensive (loss)/income: Currency translation adjustments, net of tax | 4,116 | 11,135 | (650) |
Comprehensive (loss)/income | 5,224 | (3,005) | (54,065) |
Less: comprehensive loss attributable to non-controlling interests | (99) | (446) | (219) |
Comprehensive (loss)/income attributable to Xunlei Limited | $ 5,323 | $ (2,559) | $ (53,846) |
Basic and diluted net (loss)/income per share | |||
Basic net( loss)/ income per share | $ 0.0036 | $ (0.0410) | $ (0.1574) |
Diluted net (loss)/income per share | $ 0.0035 | $ (0.0410) | $ (0.1574) |
Weighted average number of common shares used in calculating | |||
Basic | 334,707,559 | 337,429,601 | 337,845,675 |
Diluted | 335,969,780 | 337,429,601 | 337,845,675 |
Consolidated statements of chan
Consolidated statements of changes in shareholders' equity - USD ($) $ in Thousands | Common shares [Member] | Treasury stock [Member] | Additional paid-in capital [Member] | Retained earnings (Accumulated deficits) [Member] | Statutory reserves [Member] | Accumulated other comprehensive income/(loss) [Member] | Total Xunlei Limited's shareholders' equity [Member] | Non-controlling interest [Member] | Total |
Beginning Balance, Amount at Dec. 31, 2018 | $ 84 | $ 8 | $ 466,624 | $ (113,804) | $ 5,132 | $ (12,748) | $ 345,296 | $ (1,116) | $ 344,180 |
Beginning Balance, Shares at Dec. 31, 2018 | 336,522,780 | 32,354,429 | |||||||
Repurchase of common shares, Amount | $ (1) | ||||||||
Share-based compensation | 5,428 | 5,428 | 5,428 | ||||||
Restricted shares vested | $ 1 | ||||||||
Restricted shares vested (Shares) | 2,642,465 | (2,642,465) | |||||||
Cancellation of common shares | (4) | ||||||||
Net (loss)/income | (53,169) | (53,169) | (246) | (53,415) | |||||
Currency translation adjustments | (677) | (677) | 27 | (650) | |||||
Ending Balance, Amount at Dec. 31, 2019 | $ 85 | $ 7 | 472,052 | (166,973) | 5,132 | (13,425) | 296,878 | (1,335) | 295,543 |
Ending Balance, Shares at Dec. 31, 2019 | 339,165,241 | 29,711,964 | |||||||
Repurchase of common shares, Amount | $ (1) | $ 1 | (4,475) | (4,475) | (4,475) | ||||
Repurchase of common shares, shares | (5,956,960) | 5,956,960 | |||||||
Share-based compensation | 2,310 | 2,310 | 2,310 | ||||||
Restricted shares vested (Shares) | 1,193,700 | (1,193,700) | |||||||
Appropriation of statutory reserves | (282) | 282 | |||||||
Net (loss)/income | (13,840) | (13,840) | (300) | (14,140) | |||||
Currency translation adjustments | 11,281 | 11,281 | (146) | 11,135 | |||||
Ending Balance, Amount at Dec. 31, 2020 | $ 84 | $ 8 | 469,887 | (181,095) | 5,414 | (2,144) | 292,154 | (1,781) | 290,373 |
Ending Balance, Shares at Dec. 31, 2020 | 334,401,981 | 34,475,224 | |||||||
Share-based compensation | 6,170 | 6,170 | 6,170 | ||||||
Restricted shares vested (Shares) | 2,855,965 | (2,855,965) | |||||||
Appropriation of statutory reserves | (741) | 741 | |||||||
Net (loss)/income | 1,191 | 1,191 | (83) | 1,108 | |||||
Currency translation adjustments | 4,132 | 4,132 | (16) | 4,116 | |||||
Ending Balance, Amount at Dec. 31, 2021 | $ 84 | $ 8 | $ 476,057 | $ (180,645) | $ 6,155 | $ 1,988 | $ 303,647 | $ (1,880) | $ 301,767 |
Ending Balance, Shares at Dec. 31, 2021 | 337,257,946 | 31,619,259 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net (loss)/income for the year | $ 1,108 | $ (14,140) | $ (53,415) |
Adjustments to reconcile net (loss)/income to net cash (used in)/generated from operating activities | |||
Depreciation of property and equipment | 6,319 | 9,277 | 5,824 |
Amortization of intangible assets | 1,129 | 1,216 | 1,200 |
Amortization of the right-of-use assets | (1,934) | (3,685) | (5,634) |
Allowance for doubtful accounts | 1,213 | 5,305 | (2,128) |
Loss/(gain) on disposal of property and equipment | 31 | (55) | 144 |
Share-based compensation | 6,170 | 2,310 | 5,428 |
Investment income from short-term investments | (404) | (664) | (1,708) |
Impairment of inventories | 429 | 3,283 | 3,578 |
Impairment of long-term investments | 794 | 19,831 | |
Net unrealized gains on long-term investments | (794) | (10,907) | |
Investment income on disposal of long-term investments | (42) | (214) | (579) |
Interest expense accrued on due to related parties | 95 | 406 | 75 |
Deferred taxes | (178) | 966 | 4,361 |
Deferred government grants | (169) | (865) | (1,735) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,168) | 5,048 | (8,739) |
Prepayments and other assets | (2,319) | (1,263) | 772 |
Due from/to related parties | (8,507) | (8,598) | (684) |
Accounts payable | 5,238 | (4,938) | 2,086 |
Inventories | (36) | 643 | 3,435 |
Contract liabilities | 2,112 | 289 | (664) |
Income tax payable | (77) | (163) | 98 |
Accrued liabilities and other payables | 9,605 | (11,707) | (12,580) |
Lease liabilities | (2,003) | (3,732) | (4,976) |
Net cash (used in)/generated from operating activities | 19,480 | (13,911) | (45,649) |
Cash flows from investing activities | |||
Purchase of short-term investments | (337,738) | (177,075) | (355,294) |
Proceeds from collection upon maturities of short-term investments | 341,960 | 167,439 | 450,687 |
Proceeds from disposal of property and equipment | 207 | 721 | 576 |
Proceeds from disposal of long-term investments | 42 | 1,076 | 528 |
Purchase of intangible assets | (84) | (59) | (433) |
Acquisition of long-term investments | (3,627) | (2,838) | |
Repayment/(payment) of loans to employees | 696 | 711 | |
Repayment/(payment) of loans to employees | (177) | ||
Acquisition of property and equipment | (5,821) | (134) | (3,084) |
Loan to a related party | (20,000) | ||
Payment for construction in progress | (7,381) | (13,420) | (11,593) |
Net cash generated from/(used in) investing activities | (32,619) | (20,756) | 79,260 |
Cash flows from financing activities | |||
Repurchase of shares | (4,475) | ||
Governments grants received | 853 | ||
Proceeds from bank borrowings | 2,196 | 7,816 | 11,324 |
Repayment of bank borrowings | (2,419) | ||
Repayment of loans due to a related party arising from a business combination | (662) | ||
Net cash generated from/(used in) financing activities | (223) | 2,679 | 12,177 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (13,362) | (31,988) | 45,788 |
Effect of exchange rates on cash and cash equivalents, and restricted cash | 2,009 | 5,329 | (3,270) |
Cash and cash equivalents at beginning of year | 137,248 | 162,465 | 122,930 |
Restricted cash at beginning of year | 1,541 | 2,983 | |
Cash, cash equivalents and restricted cash at beginning of year | 138,789 | 165,448 | 122,930 |
Cash and cash equivalents at end of year | 123,358 | 137,248 | 162,465 |
Restricted cash at end of year | 4,078 | 1,541 | 2,983 |
Cash, cash equivalents and restricted cash at end of year | 127,436 | 138,789 | 165,448 |
Supplemental disclosure of cash flow information | |||
Income tax paid | (66) | (356) | (142) |
Non-cash investing and financing activities | |||
-Acquisition of property and equipment in form of other payables | (568) | (5,217) | (321) |
-Acquisition of right-of-use assets and lease liabilities, net off impact from lease modification | $ (10) | $ (3,325) | $ 2,723 |
Organization and nature of oper
Organization and nature of operations | 12 Months Ended |
Dec. 31, 2021 | |
Organization and nature of operations | |
Organization and nature of operations | 1. Organization and nature of operations Xunlei Limited, previously known as Giganology Limited, (the ”Company”) was incorporated under the law of the Cayman Islands as a limited liability company on February 3, 2005. The Company completed its initial public offering on June 24, 2014 on the NASDAQ Global Market. Each American Depositary Shares (“ADSs”) of the Company represents five common shares. These consolidated financial statements include the financial statements of the Company, its subsidiaries, its variable interest entity (“VIE”) and VIE’s subsidiaries (collectively referred to as the “Group”). As of December 31, 2021, the Company’s major subsidiaries, VIE and VIE’s subsidiaries are as follows: % of direct or indirect Place of Period of economic Name of entities incorporation incorporation Relationship ownership Principal activities Shenzhen Xunlei Networking Technologies Co., Ltd. (“Shenzhen Xunlei”) People’s Republic of China (“PRC”) January 2003 VIE 100 % Development of software, provision of online advertising and membership subscription Giganology (Shenzhen) Co., Ltd. (“Giganology Shenzhen”) PRC June 2005 Subsidiary 100 % Development of computer software and provision of information technology services to related companies Shenzhen Xunlei Wangwenhua Co., Ltd. (formerly known as “Shenzhen Fengdong Networking Technologies Co., Ltd.”) (“Wangwenhua”) PRC December 2005 VIE’s subsidiary 100 % Development of computer software, provision of advertising services and operation of live steaming platforms Xunlei Games Development (Shenzhen) Co., Ltd. (“Xunlei Games”) PRC February 2010 VIE’s subsidiary 70 % Development of online game and computer software to related companies and provision of advertising services Xunlei Network Technologies Limited (“Xunlei BVI”) British Virgin Islands February 2011 Subsidiary 100 % Investment holding company Xunlei Network Technologies Limited (“Xunlei HK”) Hong Kong March 2011 Subsidiary 100 % Investment holding company and development of computer software Xunlei Computer (Shenzhen) Co., Ltd. (“Xunlei Computer”) PRC November 2011 Subsidiary 100 % Development of computer software and provision of information technology services Shenzhen Onething Technologies Co., Ltd. (“Onething”) PRC September 2013 VIE’s subsidiary 100 % Development of cloud computing technology and provision of related services Beijing Xunjing Technologies Co., Ltd. (formerly known as “Wangxin Century Technologies (Beijing) Co., Ltd.”) (“Beijing Xunjing”) PRC October 2015 VIE’s subsidiary 100 % Development of computer software and provision of information technology services 1. Organization and nature of operations (Continued) % of direct or indirect Place of Period of economic Name of entities incorporation incorporation Relationship ownership Principal activities Henan Tourism Information Co., Ltd. (“Henan Tourism”) PRC June 2018 VIE’s Subsidiary 80 % Software development, tourism consulting, ticket agent and other related services Jiangxi Node Technology Service Co., Ltd. (“Jiangxi Node”) PRC July 2020 VIE’s subsidiary 100 % Development of cloud computing technology and provision of related services FUNI. PTE. LTD. (“FUNI”) Singapore April 2021 Subsidiary 100 % Operation of live streaming platform Note: The English names of the PRC companies represent management’s translation of the Chinese names of these companies as they have not adopted formal English names. The Group engages primarily in the provision of premium downloading services to its members, sales of bandwidth, platforms for live streaming services, advertising services and other internet value added services. To comply with the PRC laws and regulations that prohibit or restrict foreign ownership of companies that provide online advertising services, operate online games, and hold Internet Content Provider (‘‘ICP’’) license, the Company conducts its business through Shenzhen Xunlei, the 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 Company as the primary beneficiary received all of the economic benefits and residual interest and absorbed all of the risks and expected losses from Shenzhen Xunlei. 1. Organization and nature of operations (Continued) 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 legal shareholder of Shenzhen Xunlei, Giganology Shenzhen made an additional interest-free loan of RMB20 million to Mr. Sean Shenglong Zou, the entire amount of which was contributed to the registered capital of Shenzhen Xunlei, increasing the registered capital of Shenzhen Xunlei to RMB30 million. The term of this agreement lasts for two years from the date it was signed, and will be automatically extended afterwards on a yearly basis until Mr. Zou has repaid the loan in its entirety in accordance with the loan agreement. This loan will be deemed to be repaid when all equity interest held by the shareholders in Shenzhen Xunlei has been transferred to Giganology Shenzhen or its designated parties. At any time during the term of this loan agreement, the Company may, at their sole discretion, require all or any portion of the outstanding loan under the agreement to be repaid. — Business Operation Agreements — Equity Pledge Agreement — Power of Attorney 1. Organization and nature of operations (Continued) — Service Agreements For the Exclusive Technology Support and Services Agreement and the Exclusive Technology Consulting and Training Agreement, the term of these agreements will expire in 2025 and may be extended with Giganology Shenzhen’s written confirmation prior to the expiration date. Giganology Shenzhen is entitled to terminate the agreement at any time by providing 30 days’ prior written notice to Shenzhen Xunlei. For the Proprietary Technology License Contract, the term of this contract became expired in March 2022 and has been extended with Giganology Shenzhen to March 2032. Giganology Shenzhen grants Shenzhen Xunlei a non-exclusive and non-transferable right to use Giganology Shenzhen’s proprietary technology. Shenzhen Xunlei can only use the proprietary technology to conduct business according to its authorized business scope. Giganology Shenzhen or its designated representative(s) owns the rights to any new technology developed due to implementation of this contract. —Intellectual Properties Purchase Option Agreement — Call Option Agreement 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. 1. Organization and nature of operations (Continued) VIE-related risks It is possible that the Group’s operation of certain of its operations and businesses through VIE could be found by PRC authorities to be in violation of PRC laws 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 laws 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 VIE 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 VIE arrangements, and as a result the VIE 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. On December 26, 2018, the Standing Committee of National People’s Congress published the Draft FIE Law on its official website for public consultation (the “2018 Draft Foreign Investment Law”). The 2018 Draft Foreign Investment Law does not explicitly recognize the variable interest entity structure as a form of foreign investment. Since the 2018 Draft Foreign Investment Law remains silent with respect to the variable interest entity structure as a form of foreign investment, the validity of the VIE structure as a whole and each of the agreements comprising VIE will not be affected by the 2018 Draft Foreign Investment Law. It leaves leeway for government’s future regulation of the variable interest entity structure. According to the deliberation and voting results from the final session of the 13 th If a finding was made by PRC authorities under existing laws and regulations and becomes effective, the Group’s operation of certain of its operations and businesses through VIE, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Group to restructure its ownership structure or operations, or requiring the Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Group’s business operations, and have a severe adverse impact on the Group’s cash flows, financial position and operating performance. In addition, it is possible that the contracts among the Group, the VIE and shareholders of VIE would not be enforceable in China if PRC government authorities or courts were to find that such contracts contravene PRC law and regulations or are otherwise not enforceable for public policy reasons. In the event that the Group was unable to enforce these contractual arrangements, the Group would not be able to exert effective control over the affected VIE. Consequently, such VIE’s results of operations, assets and liabilities would not be included in the Group’s consolidated financial statements. If such were the case, the Group’s cash flows, financial position and operating performance would be severely adversely affected. The Group’s contractual arrangements with respect to VIE are approved and in place. The Group’s management believes that such contracts 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. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation and use of estimates The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (‘‘U.S. GAAP’’). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and related disclosures. Actual results could differ materially from these estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements mainly include allowance for credit losses, valuation allowance of deferred tax assets, impairment assessment of goodwill and impairment assessment of long-lived assets. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. (b) Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE for which the Company is the primary beneficiary and its subsidiaries. All 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. 2. Summary of significant accounting policies (Continued) (b) Consolidation (Continued) Management has evaluated the contractual arrangements among Giganology Shenzhen, Shenzhen Xunlei and its shareholders and concluded that Giganology Shenzhen receives all of the economic benefits and absorbs all of the expected losses from Shenzhen Xunlei and has the power to direct the aforementioned activities that are significant to Shenzhen Xunlei’s economic performance, and is the primary beneficiary of Shenzhen Xunlei. Therefore, Shenzhen Xunlei and its subsidiaries’ results of operation, assets and liabilities have been included in the Group’s consolidated financial statements. Management monitors the regulatory risk associated with these contractual arrangements. See note 28 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 (loss)/income as an allocation of the total income or loss for the year between non-controlling shareholders and the shareholders of the Company. (c) The Group accounts for acquisitions of entities that include inputs and processes and have the ability to generate economic benefit as business combinations. The Group allocates the purchase price of the acquisition to the tangible assets and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related costs are expensed as incurred. (d) Foreign currency translation The Company’s reporting and functional currency is the United States Dollar (‘‘USD’’). The functional currency of Onething Co., Ltd. (Thailand) (“Thailand Onething”) is the Thai Baht (“THB”), the functional currency of other subsidiaries, VIE and VIE’s subsidiaries located in the Mainland China is the Renminbi (‘‘RMB’’), and the functional currency of other subsidiaries located outside the Mainland China is the USD, 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, net” within the consolidated statements of comprehensive (loss)/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 the one released by Chinese State Administration of Foreign Exchange. 2. Summary of significant accounting policies (Continued) (e) Cash and cash equivalents and restricted cash Cash and cash equivalents include cash on hand, cash in bank and time deposits placed with banks or other financial institutions, which have original maturities of three months or less and are readily convertible to known amounts of cash. Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is included in the total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. The Group’s restricted cash is substantially cash balance on deposit as required by the court for ongoing litigations. (f) Short-term investments Short-term investments include deposits placed with banks with original maturities of more than three months but within one year and investments in financial instruments with a variable interest rate indexed to the performance of underlying assets. In accordance with ASC 825 Financial Instruments (g) Allowance for expected credit losses Effective on January 1, 2020, the Group adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326) The Group assessed the credit loss for accounts receivable with similar risk characteristics on a pool basis. The credit loss assessment for each pool was mainly based on past collection experience, consideration of current and future economic conditions and changes in the Group’s collection trends. The credit allowances provided for accounts receivable as of December 31, 2020 and 2021 were USD9,329,000 and USD1,764,000, respectively. (h) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using actual cost on a weighted average basis. Net realizable value is the amount that can be realized from the sale of the inventory in the normal course of business after allowing for the costs of realization. 2. Summary of significant accounting policies (Continued) (i) Long-term investments The Group holds investments in privately held companies. On January 1, 2018, the Group adopted ASU 2016-01, Financial Instruments Management regularly evaluates the impairment of long-term equity investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognised equal to the excess of the investment costs over its fair value at the end of each reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. During the years ended December 31, 2019, 2020 and 2021 the Group recognized an impairment of USD19,831,000, USD794,000 and nil, and share of loss of equity investees of nil, nil and nil from equity method investments, respectively. (j) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the asset at the end of the estimated useful life as a percentage of the original cost. If the Group commits to a plan to abandon a long-lived asset before the end of its previous estimated useful life, depreciation shall be revised to reflect a shortened useful life. Estimated useful lives Residual rate Servers and network equipment 3-5 years 5 % Computer equipment 5 years 5 % Furniture, fixtures and office equipment 3-5 years 5 % Motor vehicles 5 years 5 % Leasehold improvements Shorter of lease term or 3 years — Repair and maintenance costs are expensed as incurred. Expenditures that substantially increase an asset’s useful life are capitalized. Upon sale or disposal, gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive (loss)/income. The cost and related accumulated depreciation are removed from the consolidated balance sheets. 2. Summary of significant accounting policies (Continued) (k) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries, VIE and VIE’s subsidiaries. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. Based on the qualitative assessment, if it is more likely than not that the fair value of each reporting unit is less than the carrying amount, the quantitative impairment test is performed. In performing the two-step quantitative impairment test, the first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be 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 goodwill to the carrying value of a reporting unit’s 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 the purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, allocation of assets, liabilities and goodwill to reporting units, and determination of the fair value of each reporting unit. Starting in 2020, the Company adopted the FASB issued ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (the “Update”). To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this Update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. It is more likely that, by adopting simplified measurement which eliminates the Step 2 from goodwill impairment test, an entity with the triggering event for goodwill impairment will recognize more goodwill impairment than it would do under the old model. The Group’s goodwill was attributable to the Company as a whole. The impairment test for goodwill determines the fair value of the reporting unit, the Company as a whole, and compares it to the carrying value of the assets and liabilities, including goodwill, of the reporting unit. The fair value of the Company was estimated by management using the discounted cash flow model derived from the long-term (five-year) cash flow projections, which included significant judgements and assumptions relating to revenue forecast and operating margins, discount rate of 18.2% that reflects market assessments of the time value and the specific risks relating to the Company, and cash flows beyond the five-year period are extrapolated using a terminal growth rate of 2%. No goodwill impairment losses were recognized for the years ended December 31, 2019, 2020 and 2021 based on the impairment test performed by the Group. 2. Summary of significant accounting policies (Continued) (l) Intangible assets Intangible assets, which include land use rights, acquired computer software and audio-visual license, are carried at cost less accumulated amortization with no residual value and impairment loss, if any. Amortization of intangible assets is computed using the straight-line method over the estimated useful lives of the assets as follows: Estimated useful lives Land use rights 30 years Acquired computer software 5 years Audio-visual license 9 years (m) Impairment of long-lived assets For other long-lived assets, the Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to be received from use of the assets and their eventual disposition at the lowest level of identifiable cash flows. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. If the Group identifies an impairment, the carrying value of the asset will be reduced to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. (n) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. In regard to legal cost, the Group recorded such costs as incurred. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Group, but which will only be resolved when one or more future events occur or fail to occur. The Group’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Group or unasserted claims that may result in such proceedings, the Group, in consultation with its legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Group’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. 2. Summary of significant accounting policies (Continued) (o) Operating leases On January 1, 2019, the Group adopted ASC Topic 842 Leases Lessees shall follow the requirements to classify most leases as either financing or operating using principles similar to previous lease accounting. In the statement of comprehensive (loss)/income, a lessee shall present both of the following: a) for finance leases, the interest expense on the lease liability and amortization of the right-of-use asset are not required to be presented as separate line items and shall be presented in a manner consistent with how the entity presents other interest expense and depreciation or amortization of similar assets, respectively; b) for operating leases, lease expense shall be included in the lessee’s income from operations. The Group adopted ASC 842 on a modified retrospective basis and did not restate comparative periods. The adoption of ASC 842 resulted in the recognition of right-of-use assets and related lease liabilities of approximately USD11.8 million and USD11.4 million, respectively, which were reported on the consolidated balance sheet as of January 1, 2019. The Group have elected the short-term lease exemption for all leases with a lease term of 12 months. Payments associated with short-term leases are recognized on a straight-line basis as an expense in profit or loss. The standard also requires a lessee to recognize a single lease cost related to operating lease, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The net profit after tax had not to be materially impacted as a result of adopting the new rules. With the adoption of ASC 842, the Group assesses, at contract inception, whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining the appropriate discount rate to use in calculating the present value of contractual lease payments, management regularly evaluates the lessee’s incremental borrowing rate, as the rate implicit in the lease cannot be readily determined. See note 11 for additional disclosures on operating lease arrangements. (p) Revenue recognition Revenue is recognized when or as the control of the services or goods is transferred to the customer. Depending on the terms of the contract and the laws that apply to the contract, control of the services and goods may be transferred over time or at a point in time. A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. Contract costs includes incremental costs of obtaining a contract and costs to fulfil a contract. The Group generates revenues from various streams. Net revenues presented in the consolidated statements of (loss)/income represent revenues from service and product sales net off sales discount, value-added tax and related surcharges. 2. Summary of significant accounting policies (Continued) (p) Revenue recognition (Continued) (I) Subscription revenues The Group operates a VIP membership program where VIP members can have access to high speed online acceleration services, online streaming and other access privileges. The membership fee is time-based and is collected up-front from subscribers. The terms of time-based subscriptions range from one month to twelve months, with the subscribers having the option to renew the contract. The receipt of subscription fee is initially recorded as contract liabilities. The Group satisfies its various performance obligations by providing services throughout the subscription period and revenue is recognized rateably over the period of subscription as services are rendered. Unrecognized portion beyond 12 months from balance sheet date is classified as a long-term liability. The Group evaluated the principal versus agent criteria and determined that the Group is the principal in the transaction and accordingly records revenue on a gross basis. In determining whether to report revenues gross for the amount of subscription revenue, the Group assesses whether it maintains the principal relationship with the VIP members, whether it bears the credit risk and whether it establishes prices for the end users. Service fees levied by online system and mobile payment channels (‘‘Payment handling charges’’) are recorded as the cost of revenues in the same period as the revenue for the membership fee is recognized. (II) Advertising revenues The Group cooperates with advertising platforms such as Guangdiantong and Baidu, of which, the advertising platforms are responsible for matching the requirements of advertisers or advertising agencies and dispatching the advertising content to Xunlei’s platforms by certain analysis systematically. As the advertising platforms are viewed as customers in these transactions, revenue is recognized monthly based on the data publicized on the platforms and pre-agreed sharing portion. In May 2020, the Group entered into a user traffic monetization agreement with Beijing Itui Online Network Technology Co., Ltd. (“Itui Online”), a company controlled by the Company’s principal shareholder. Since May 2020, Itui Online has been handling substantially all of the Group’s advertising resources, including matching the requirements of advertisers and dispatching the advertising content to Xunlei’s platforms. Itui Online is viewed as the customer and revenue is recognized monthly based on the data publicized on the platforms and pre-agreed sharing portion. (III) Live streaming revenues The Group operates certain live streaming platforms where users can access the platform, view the live streaming content provided by performers, and purchase virtual gifts which they can grant to performers in the live streaming platform to show support for their favorite performers. Xunlei is the principal in the provision of the live streaming content and experience, which is considered as the performance obligation of the Group. The Group recognizes revenue from sales of virtual gifts to the viewers when the relevant virtual gifts are presented to the performers or over the duration of stated period of the time-based item. The Group does not have further obligations to the viewers after the virtual gifts are consumed immediately or after the stated period for time-based items, although the Group will continue to provide the live streaming content to the viewers in order to continue to generate sales of virtual gifts. 2. Summary of significant accounting policies (Continued) (p) Revenue recognition (Continued) (IV) Cloud computing and other internet value-added services (i) Revenues from cloud computing service On a monthly basis, the Group records the bandwidth it delivers and recognizes revenue from customers under contractual rates applied (price per GB of bandwidth multiplies total GBs of bandwidth per month). (ii) Revenues from online games The Group enters into a series of technical cooperation agreements with third party online game operators. Users access to the Group’s platform and purchase in-game virtual items which can then be used in games provided by the third-party online game operators. The Group provides the third-party online game operators with a portal which the online game operators can host the online games. The Group charges the online game operators based on a pre-determined portion of proceeds earned from paying users pursuant to the revenue sharing arrangements for the provision of portal and payment collection service to the online game operators. The third-party online game operators are the principal in the provision of games to users and the Group provides the relevant platform to the game operators, therefore, the game operators are viewed as the customers in these transactions. The service fees receivable from the third-party online game operators are variable, which are contingent upon future events (future cash proceeds paid by game players), and are recognized when the contingency is met provided that collectability is reasonably assured. (q) Sales and marketing expenses Sales and marketing expenses comprise primarily salary, benefits of sales and marketing personnel and external advertising and market promotion expenses. The external advertising and market promotion expenses from operations amounted to approximately USD20,974,000, USD11,026,000 and USD15,052,000 for the years ended December 31, 2019, 2020 and 2021, respectively. (r) General and administrative expenses General and administrative expenses consist primarily of salaries and benefits (including related share-based compensation), professional service fees, legal expenses and other administrative expenses. 2. Summary of significant accounting policies (Continued) (s) Research and development costs The Group incurred research and development costs to develop its downloading software, live streaming platforms and bandwidth crowdsourcing technologies to enhance the competitive advantages of the Group’s key products, such as Xunlei Accelerator and cloud computing services. Costs incurred during the research phase are expensed as incurred. Costs incurred for the development of the downloading software, live streaming platforms and bandwidth crowdsourcing technologies prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. The development costs qualified for capitalization have been immaterial for the periods presented. In addition, the Group incurred other research and development costs in relation to software used to support its operations. Any development costs qualified for capitalization were immaterial for the periods presented. (t) Taxation and uncertain tax positions Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements’ carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the difference is expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred tax assets if it is considered more likely than not that some portion, or all, of the deferred tax assets will not be realized. The estimation of future taxable income involves significant judgement and estimates. Based on management’s estimated future taxable income, management concluded that it is more likely than not that the net operating losses carried forward cannot be utilized prior to their respective expiration dates. The Group adopted the ASC 740 “Income Taxes” regarding uncertain tax positions and evaluated its open tax positions that exist in each jurisdiction for each reporting period. If an uncertain tax position is taken or expected to be taken in a tax return, the tax benefit from that uncertain position is recognized in the Group’s consolidated financial statements if it is more likely than not that the position is sustainable upon examination by the relevant taxing authority. The Group did not have any significant uncertain tax position and there was no effect on its financial condition or results of operations as a result of implementing the ASC 740 “Income Taxes”. The Group recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense, if any. PRC Value-added Tax (“VAT”) VAT payable on goods sold or taxable labor services provided by a general VAT taxpayer for a taxable period is the net balance of the output VAT for the period after crediting the input VAT for the period. In addition to the product revenues currently subject to VAT at a rate of 13% (16% before April 1, 2019), the Group’s subscription revenue, live streaming revenue, cloud computing service revenue, online advertising revenue and online games revenue are now subject to VAT at a rate of 6%. According to the policy of the PRC State Tax Bureau, starting from April 1, 2019 to December 31, 2021 enterprises that engage in postal services, telecommunication services and consumer services are entitled to claim 110% of the input tax incurred as tax credit in determining VAT payable. The policy has been extended to December 31, 2022 by the PRC State Tax Bureau on February 18, 2022. 2. Summary of significant accounting policies (Continued) (u) Retirement benefits Full-time employees of the Company’s subsidiaries, VIE and VIE’s 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, VIE and VIE’s subsidiaries of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts from operations for such employee benefits, which are expensed as incurred, were USD12,337,000, USD7,949,000 and USD12,411,000 for the years ended December 31, 2019, 2020 and 2021, respectively. (v) Share-based compensation The Group measures share-based compensation based on the stock price at the grant date. As the Group has granted restricted shares with service-only condition, the Group elected to recognize compensation costs net of estimated forfeitures on a straight-line basis over the requisite service period, which is generally the same as the vesting period. The amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is vested at that date. (w) Government subsidies The Gro |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2021 | |
Business combination | |
Business combination | 3. Business combination In September 2020, the Group entered into a share purchase agreement to acquire 100% equity interests of Shenzhen Yunwang Wulian Technology Co., Ltd. (“Yunwang Wulian”), formerly known as Shenzhen Qianhai Shanxian Daojia Technology Co., Ltd. from Weimin Luo, a director and Chief Operating Officer of the Company (see note 25), and a third party individual at nil consideration while taking up the net liabilities of Yunwang Wulian. The allocation of the purchase price at the date of acquisition is as follows: USD (In thousands) As of acquisition date Property and equipment 17 Accrued liabilities and other payables (798) Goodwill 781 Total — Yunwang Wulian is a company principally operating an internet platform for daily services. The purpose of this acquisition is to acquire the skilled talents of Yunwang Wulian and goodwill arising from this acquisition is attributable to the acquired workforce. This acquisition was completed on September 30, 2020. The acquired goodwill is not deductible for tax purposes. Acquisition related costs were immaterial and were included in general and administrative expenses for the year ended December 31, 2020. Pro forma revenue data and pro forma earnings data was not disclosed because the impact was immaterial. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents | |
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, 2020 and 2021 primarily consist of the following currencies: December 31, 2020 December 31, 2021 USD USD (In thousands) Amount equivalent Amount equivalent RMB 312,581 47,906 356,535 55,922 USD 89,050 89,050 66,650 66,650 SGD — — 739 547 Hong Kong Dollar 1,737 224 1,413 181 THB 2,052 68 1,709 51 Indonesian Rupiah — — 101,762 7 Total 137,248 123,358 As of December 31, 2020 and 2021, included in the cash and cash equivalents are time deposits with original maturities of three months or less of USD27,200,000 and USD31,050,000, respectively. |
Short-term investments
Short-term investments | 12 Months Ended |
Dec. 31, 2021 | |
Short-term investments | |
Short-term investments | 5. Short-term investments (In thousands) December 31, 2020 December 31, 2021 Time deposits 68,828 62,379 Investments in financial instruments (note) 48,993 53,273 Total 117,821 115,652 Note: The investments were issued by commercial banks in the 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 sheets at the principal amount plus accrued interest. Interest income is recorded in “Other income, net” in the consolidated statements of comprehensive (loss)/income. |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2021 | |
Accounts receivable, net | |
Accounts receivable, net | 6. Accounts receivable, net (In thousands) December 31, 2020 December 31, 2021 Accounts receivable 32,312 27,899 Less: Allowance for credit losses (9,329) (1,764) Accounts receivable, net 22,983 26,135 6. Accounts receivable, net (Continued) The following table presents movement in the allowance for expected credit loss: (In thousands) December 31, 2019 December 31, 2020 December 31, 2021 Balance at beginning of the year 7,709 7,604 9,329 Additions 19 1,137 72 Reversals — — (481) Write-off — — (7,375) Exchange difference (124) 588 219 Balance at end of the year 7,604 9,329 1,764 The top 10 customers accounted for about 65% and 86% of accounts receivable as of December 31, 2020 and 2021, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Inventories | 7. Inventories (In thousands) December 31, 2020 December 31, 2021 Hardware devices (note) 4,830 1,595 Others 324 238 Less: Impairment (3,428) (470) Total 1,726 1,363 Note: Hardware devices mainly include OneThing Cloud and hard disks. OneThing Cloud is a hardware, which can act as a micro server between users and Xunlei, which enables users to share their idle uplink capacity with Xunlei. The inventory written down was USD3,283,000 and USD429,000 for the years ended December 31, 2020 and 2021, respectively. |
Prepayments and other assets
Prepayments and other assets | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments and other assets | |
Prepayments and other assets | 8. Prepayments and other assets (In thousands) December 31, 2020 December 31, 2021 Current portion: Deposit related to an ongoing litigation (note a) 4,751 4,862 Advances to suppliers (note b) 1,997 2,088 Loans to employees (note c) 1,896 1,614 Rental and other deposits 1,670 1,159 Others 1,220 2,119 Total of prepayments and other current assets 11,534 11,842 Non-current portion: Loans to employees, non-current portion (note c) 905 1,473 Advances to suppliers, non-current portion (note b) — 1,314 Total of long-term prepayments and other assets 905 2,787 Notes: (a) The balance as of December 31, 2020 and 2021 represented the deposits placed in a custodian bank account of the court to secure an order for preservation of assets against a supplier of the Group. (b) Advances to suppliers primarily include prepayments to bandwidth suppliers, prepayments for the construction of Xunlei Tower and other prepaid expenses. 8. Prepayments and other assets (Continued) (c) The Group had entered into loan contracts with certain employees as of December 31, 2020 and 2021, under which the Group provided interest-free loans or low-interest loans to these employees. The loan amounts vary amongst different employees from repayable on demand to repayable in equal installments on a monthly basis over a term of 5 to 10 years . The balances classified as current represented loan amounts that are repayable on demand or repayable within the next twelve months from the balance sheet date. |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2021 | |
Long-term investments | |
Long-term investments | 9. Long-term investments (In thousands) December 31, 2020 December 31, 2021 Equity interests without a readily determinable fair value: Balance at beginning of the year 26,365 26,734 Additions — 4,627 Net unrealized gains on investments held 794 — Exchange difference 369 134 Less: Impairment loss on long-term investments (794) — Balance at end of the year 26,734 31,495 Details of the Group’s ownership of the long-term investments are as follows: Percentage of ownership of shares as of December 31, Investee 2020 2021 Equity method investments: Zhuhai Qianyou Technology Co., Ltd. (“Zhuhai Qianyou”) (note a) 19.00 % — Shenzhen Mojingou Information Services Co., Ltd. 28.77 % 28.77 % Equity interests without a readily determinable fair value: Guangzhou Yuechuan Network Technology Co., Ltd. 9.30 % 9.30 % Chengdu Diting Technology Co., Ltd. 12.74 % 12.74 % Shanghai Guozhi Electronic Technology Co., Ltd. 16.80 % 16.80 % Guangzhou Hongsi Network Technology Co., Ltd. 19.90 % 19.90 % Xiamen Diensi Network Technology Co., Ltd. 14.25 % 14.25 % 11.2 Capital I, L.P. 2.03 % 2.03 % Cloudtropy 9.69 % 9.69 % Lexiang Technology Co., Ltd. (formerly named as “Shanghai Lexiang Technology Co., Ltd.") ("Lexiang") (note b) 7.81 % 6.93 % Hangzhou Feixiang Data Technology Co., Ltd. 28.00 % 28.00 % Shenzhen Meizhi Interactive Technology Co., Ltd. 9.40 % 9.40 % Beijing Yunhui Tianxia Technology Co., Ltd. 13.70 % 13.70 % Yingshi Innovation Technology Co., Ltd. (formerly named as “Shenzhen Arashi Vision Interative Technology Co., Ltd.”) 8.73 % 8.73 % Beijing Cloudin Technology Co., Ltd. 4.12 % 4.12 % Quanxun Huiju Networking Technology (Beijing) Co., Ltd. ("Quanxun Huiju") 5.40 % 5.40 % Blue Bayread Limited (“Blue Bayread”) (note c) — 1.63 % Clapper Media Group Inc. (“Clapper”) (note d) — 10.00 % Beijing Yunshang Hemei Culture Media Co., Ltd. (“Yunshang Hemei”) (note e) — 10.00 % 9. Long-term investments (Continued) Notes : (a) In May 2021, the equity interest in Zhuhai Qianyou was disposed by the Group at a consideration of USD 298 . (b) In October 2020, the Group disposed 4.82% of the equity interest in Lexiang, for which full impairment have been provided in December 2019, at a consideration of USD268,000. The remaining equity interest in Lexiang was remeasured based on this observable price change from the disposal, a fair value gain of USD794,000 was recognized accordingly. The Group recognized impairment against this investment of USD794,000 as of December 31, 2020, after considering Shanghai Lexiang’s operation performance, financial and liquidity position after the above transaction. In September 2021, the Group’s interest in Lexiang was diluted to 6.93% as additional shares were issued by Lexiang, no changes in the carrying value in Lexiang was made as the related transactions did not provide observable price changes to the Group. (c) In December 2021, the Group made an equity investment of USD 3,000,000 to acquire 1.63% equity interest of Blue Bayread, which is a privately-held company. (d) In October 2021, the Group made an equity investment of USD 1,000,000 to acquire 10% equity interest of Clapper, which is a privately-held company. (e) In December 2021, the Group made an equity investment of USD 627,384 (equivalent to RMB 4,000,000 ) to acquire 10% equity interest of Yunshang Hemei, which is a privately-held company . |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2021 | |
Property and equipment, net | |
Property and equipment, net | 10. Property and equipment, net Property and equipment consist of the following: (In thousands) December 31, 2020 December 31, 2021 Servers and network equipment 35,827 15,522 Computer equipment 1,565 1,737 Furniture, fixtures and office equipment 836 857 Motor vehicles 481 492 Leasehold improvements 6,604 7,428 Total original costs 45,313 26,036 Less: Accumulated depreciation (33,006) (18,638) Less: Accumulated impairment (3) (2) Sub-total 12,304 7,396 Construction in progress 38,421 50,261 Total 50,725 57,657 10. Property and equipment, net (Continued) No impairment loss was recognized for the years ended December 31, 2019, 2020 and 2021. Depreciation expense recognized for the years ended December 31, 2019, 2020 and 2021 are summarized as follows: Years ended December 31, (In thousands) 2019 2020 2021 Cost of revenues 5,198 6,247 4,805 Research and development expenses 300 529 436 General and administrative expenses 317 2,492 1,068 Sales and marketing expenses 9 9 10 Total 5,824 9,277 6,319 |
Right-of-use assets and lease l
Right-of-use assets and lease liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Right-of-use assets and lease liabilities | |
Right-of-use assets and lease liabilities | 11. Right-of-use assets and lease liabilities The right-of-use assets represented the leased office lease of the Group, are amortized over the lease terms, which are greater than 1 year but less than 3 years. Right-of-use assets for long-term operating leases were as below: (In thousands) Office leases Net book amount as of January 1, 2020 8,747 Additions 500 Modification of operating lease (3,825) Amortization (3,685) Effect of foreign currency exchange differences 217 Net book amount as of December 31, 2020 1,954 Additions 25 Modification of operating lease (43) Amortization (1,934) Effect of foreign currency exchange differences 25 Net book amount as of December 31, 2021 27 During the years ended December 31, 2019, 2020 and 2021, the general and administrative expenses for long-term operating lease were USD6,077,000, USD3,762,000 and USD1,934,000, respectively. A charge of USD301,000, USD291,000 and USD786,000 were recognized in relation to short-term lease for the years ended December 31, 2019, 2020 and 2021. The future minimum payments under non-cancellable short-term operating leases of office rental will be USD1,322,000 in 2022. The weighted average discount rate related to operating lease was 5.5%, 5.4% and 5.4%, respectively, as of December 31, 2019, 2020 and 2021, and the weighted average remaining lease term were 2 years, 1 year and 1 year as of December 31, 2019, 2020 and 2021, respectively. The total cash payments in respect of operating lease were USD5,149,000, USD3,797,000 and USD2,003,000 for the years ended December 31, 2019, 2020 and 2021, respectively. The undiscounted cash payments for each of the next five years as of December 31, 2020 is: (In thousands) 2021 1,998 2022 28 Total undiscounted payments 2,026 Less: effect of discounting (38) Discounted lease liabilities 1,988 11. Right-of-use assets and lease liabilities (Continued) The undiscounted cash payments for each of the next five years as of December 31, 2021 is: (In thousands) 2022 19 2023 7 Total undiscounted payments 26 Less: effect of discounting (1) Discounted lease liabilities 25 |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets, net | |
Intangible assets, net | 12. Intangible assets, net December 31, 2020 2021 Net book Net book (In thousands) Cost Amortization value Cost Amortization value Land use rights 5,099 (1,258) 3,841 5,218 (1,461) 3,757 Acquired computer software 3,530 (2,853) 677 3,875 (3,053) 822 Audio-visual license 6,010 (1,671) 4,339 6,151 (2,431) 3,720 14,639 (5,782) 8,857 15,244 (6,945) 8,299 Amortization expense recognized for the years ended December 31, 2019, 2020 and 2021 are summarized as follows: Years ended December 31 (In thousands) 2019 2020 2021 Cost of revenues 5 — 10 General and administrative expenses 1,136 1,210 1,113 Research and development expenses 59 6 6 Total 1,200 1,216 1,129 The estimated aggregate amortization expense for each of the next five years as of December 31, 2021 is: (In thousands) Intangible assets 2022 1,153 2023 1,140 2024 1,071 2025 974 2026 and thereafter 3,961 12. Intangible assets, net (Continued) The weighted average amortization periods of intangible assets as of December 31, 2020 and 2021 are as below: (In year) December 31, 2020 December 31, 2021 Land use rights 30 30 Acquired computer software 5 5 Audio-visual license 9 9 Total weighted average amortization periods 10 10 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill. | |
Goodwill | 13. Goodwill December 31, December 31, (In thousands) 2020 2021 Beginning balance 20,382 22,607 Addition (note) 815 — Foreign currency translation adjustment 1,410 529 Ending balance 22,607 23,136 Note: The addition of goodwill in 2020 was related to the acquisition of Yunwang Wulian, please refer to note 3 for the acquisition. No impairment loss was recognized for the years ended December 31, 2019, 2020 and 2021. |
Contract liabilities and deferr
Contract liabilities and deferred income | 12 Months Ended |
Dec. 31, 2021 | |
Contract liabilities and deferred income. | |
Contract liabilities and deferred income | 14. Contract liabilities and deferred income (In thousands) December 31, 2020 December 31, 2021 Contract liabilities (note a) Membership subscription 31,981 35,490 Others 2,513 2,075 Deferred income Government grants 466 172 Total 34,960 37,737 Less: non-current portion (note b) (920) (845) Contract liabilities and deferred income, current portion 34,040 36,892 Notes: (a) Contract liabilities were related to unsatisfied performance obligations at the end of the year. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following period. The amount of revenue recognized that was included in contract liabilities balance at the beginning of the year was USD 30,189,000 and USD 32,611,000 for the years ended December 31, 2020 and 2021, respectively . (b) As of December 31, 2020 and 2021, the non-current portion consists of membership subscription of USD751,000 and USD845,000, and government grants of USD169,000 and nil, respectively. |
Accrued liabilities and other p
Accrued liabilities and other payables | 12 Months Ended |
Dec. 31, 2021 | |
Accrued liabilities and other payables | |
Accrued liabilities and other payables | 15. Accrued liabilities and other payables (In thousands) December 31, 2020 December 31, 2021 Payroll and welfare 12,871 18,618 Tax levies 3,394 2,397 Payables related to Kankan 2,581 2,642 Payables for advertisement 1,895 3,821 Legal and litigation related expenses (note 27) 1,640 973 Professional service fees 2,106 2,175 Agency commissions and rebates—online advertising 2,696 2,759 Payables for construction in progress 5,291 9,750 Tax surcharges 1,095 — Others 5,120 6,422 Total 38,689 49,557 |
Bank borrowings
Bank borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Bank borrowings | |
Bank borrowings | 16. Bank borrowings December 31, December 31, (In thousands) 2020 2021 Bank borrowings, current portion — 2,876 Bank borrowings, non-current portion 19,924 17,291 Total 19,924 20,167 The bank borrowings were borrowed by Shenzhen Xunlei for the construction of Xunlei Tower, which was pledged by the land use rights of Xunlei Tower and the building under construction. The interest expense of USD470,000, USD890,000 and USD1,000,000 has been capitalized for the years ended December 31, 2019, 2020 and 2021, respectively. The bank borrowings are denominated in RMB, and the interest rate is calculated based on Loan Prime Rate plus 15 basis points. As of December 31, 2021, the bank borrowings will be due according to the following schedule: (In thousands) Principal amounts Within 1 year 2,876 Between 1 to 2 years 3,207 Between 2 to 3 years 2,613 Between 3 to 4 years 2,128 Between 4 to 5 years 1,733 Beyond 5 years 7,610 |
Common shares
Common shares | 12 Months Ended |
Dec. 31, 2021 | |
Common shares | |
Common shares | 17. Common shares The Company’s Memorandum and Articles of Association authorizes the Company to issue 1,000,000,000 shares of USD 0.00025 par value per common share as of December 31, 2021. Each common share is entitled to one vote. The holders of common shares are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, which is subject to the approval by the holders of the common shares representing a majority of the aggregate voting power of all outstanding shares. As of December 31, 2020 and 2021, there were 334,401,981 and 337,257,946 common shares outstanding, respectively. |
Repurchase of shares
Repurchase of shares | 12 Months Ended |
Dec. 31, 2021 | |
Repurchase of shares | |
Repurchase of shares | 18. Repurchase of shares In June 2020, the board of directors of the Company authorized a share buyback program (the “Share Buyback Program”), whereby the Company may repurchase up to USD20 million of common shares or ADSs from June 29, 2020 for twelve months on the open market at the prevailing market prices, in privately negotiated transactions, in block trades and through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The following table is a summary of the shares repurchased by the Company under the Share Buyback Program. All shares were purchased from the open market pursuant to the Share Buyback Program: Total number of ADSs purchased as Average price Period part of the publicly announced plan paid per ADS July 8 - July 31 857,147 3.72 August 3 - August 18 334,245 3.86 Total for the year ended December 31, 2020 1,191,392 During the year ended December 31, 2020, 1,191,392 ADSs were purchased at an aggregate consideration of USD 4,475,000 under the Share Buyback Program. No shares were repurchased during the years ended December 31, 2019 and 2021. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based compensation | |
Share-based compensation | 19. Share-based compensation 2010 share incentive plan In December 2010, the Group adopted a share incentive plan, which is referred to as the 2010 Share Incentive 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 share options, restricted shares, or restricted share units may be granted is 26,822,828 shares (excluding the share options previously granted to the directors who are the founders of the Company). The number of shares available for such grants was nil as of December 31, 2021, as such shares have been transferred to the 2020 share incentive plan since its adoption in June 2020, please refer to the details below. The maximum term of any issued share option is seven (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). Share options granted to directors were subject to a vesting schedule of approximately 32 months. 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 November 2014 and January 2015, the Company issued to the depositary bank of 10,000,000 common shares and 10,991,120 common shares, respectively, which were reserved for the future exercise of share options or vesting of restricted shares. 19. Share-based compensation (Continued) 2010 share incentive plan (Continued) The following table summarizes the share option activities for the years ended December 31, 2019, 2020 and 2021: Weighted Weighted Weighted- average average average remaining Aggregate Number of exercise grant-date contractual life intrinsic share options price (USD) fair value (USD) (years) value (USD) Outstanding, January 1, 2019 16,500 3.97 — 1.37 — Vested and expected to vest as of January 1, 2019 16,500 3.97 1.56 1.37 — Exercisable as of January 1, 2019 16,500 3.97 1.56 1.37 — Expired (6,500) 3.97 Outstanding, December 31, 2019 10,000 3.97 — 1.16 — Vested and expected to vest as of December 31, 2019 10,000 3.97 1.01 1.16 — Exercisable as of December 31, 2019 10,000 3.97 1.01 1.16 — Expired (10,000) 3.97 Outstanding, December 31, 2020 — — — — — Vested and expected to vest as of December 31, 2020 and 2021 — — — — — As of December 31, 2020 and 2021, there were no unrecognized share-based compensation costs related to share options of 2010 Plan. As of December 31, 2021, 10,770,520 restricted shares (2020: 10,770,520), excluding those converted from share options, were granted to employees and officers under 2010 Plan and the outstanding unvested restricted shares granted to employees and officers vest as follows: (1) 330,000 of these restricted shares shall be vested within 2022. (2) 320,000 of these restricted shares shall be vested within 2023. 19. Share-based compensation (Continued) 2010 share incentive plan (Continued) A summary of the restricted shares activities under the 2010 Plan for the years ended December 31, 2019, 2020 and 2021 is presented below: Weighted-average Number of grant-date fair restricted shares value(USD) Unvested as of January 1, 2019 6,652,040 Expected to vest as of January 1, 2019 5,654,234 Granted 800,000 0.81 Vested (1,296,540) Forfeited (971,000) Unvested as of December 31, 2019 5,184,500 Expected to vest as of December 31, 2019 4,406,825 Vested (965,500) Forfeited (2,959,000) Unvested as of December 31, 2020 1,260,000 Expected to vest at December 31, 2020 1,071,000 Vested (400,000) Forfeited (210,000) Unvested as of December 31, 2021 650,000 Expected to vest as of December 31, 2021 552,500 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 15% for employees and nil for directors and advisors. As of December 31, 2020 and 2021, total unrecognized compensation expense relating to the restricted shares was USD2,000,000 and USD1,031,340, respectively. 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 officers to the success of the Group’s business. Under the 2013 Plan, the maximum number of restricted shares that may be granted is 9,073,732 shares. The number of shares available for such grants was nil as of December 31, 2021, as such shares have been transferred to the 2020 share incentive plan since its adoption in June 2020, please refer to the details below. The vesting schedule of the restricted shares under the 2013 Plan are determined by the directors of the Company. 19. Share-based compensation (Continued) 2013 share incentive plan (Continued) A summary of the restricted shares activities under the 2013 Plan for the years ended December 31, 2019, 2020 and 2021 is presented below: Number of restricted shares Unvested as of January 1, 2019 34,175 Vested (27,475) Forfeited (6,700) Unvested as of December 31, 2019 — Expected to vest as of December 31, 2019 — As of December 31, 2020 and 2021, total unrecognized compensation expense relating to the restricted shares was both nil. 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 shares to certain officers, directors or employees of, or advisors or consultants to the Company and its subsidiaries and VIE and VIE’s subsidiaries. The Company issued 14,195,412 common shares to Leading Advice Holdings Limited, a company owned by the co-founder, to facilitate the administration of the 2014 Plan. The number of shares available for such grants was nil as of December 31, 2021, as such shares have been transferred to the 2020 share incentive plan since its adoption in June 2020, please refer to the details below. 19. Share-based compensation (Continued) 2014 share incentive plan (Continued) A summary of the restricted shares activities under the 2014 Plan for the years ended December 31, 2019, 2020 and 2021 is presented below: Number of restricted shares Unvested as of January 1, 2019 3,476,650 Vested (1,318,450) Forfeited (837,000) Unvested as of December 31, 2019 1,321,200 Expected to vest as of December 31, 2019 1,123,020 Unvested as of January 1, 2020 1,321,200 Vested (228,200) Forfeited (1,067,000) Unvested as of December 31, 2020 26,000 Expected to vest as of December 31, 2020 22,100 Unvested as of January 1, 2021 26,000 Vested (26,000) Unvested as of December 31, 2021 — Expected to vest as of December 31, 2021 — As of December 31, 2021, the total unrecognized compensation expense relating to the restricted shares was nil (2020: USD12,000). 2020 share incentive plan In June 2020, the Group terminated its 2010 Plan, 2013 Plan and 2014 Plan (the “Existing Plans”) and adopted a 2020 share incentive plan, which is referred to as the 2020 Share Incentive Plan (the “2020 Plan”). Under the 2020 Plan, the maximum aggregate number of shares of the Company that may be granted is 31,000,000, among which 21,039,742 common shares reserved under the Existing Plans and had not been granted as of the termination of the Existing Plans, 9,667,230 common shares repurchased pursuant to the repurchase programs authorized by the Company in December 2014 and January 2016, and 293,028 common shares reserved for issuance under the 2020 Plan. The number of shares available for such grants as of December 31, 2021 is 2,685,660. Upon termination of the Existing Plans, the awards that are granted and outstanding under the Existing Plans remain effective under the 2020 Plan, subject to any amendment and modification to the original award agreements that the Company shall determine. As of December 31, 2021, the restricted shares units granted to employees and officers (excluding those forfeited) vest as follows: (1) 15,059,340 of these restricted shares will vest over a two-year schedule in which one-second of the restricted shares shall be vested upon the first and second anniversary of the grant day, respectively. (2) 90,000 of these restricted shares will vest over a three-year schedule in which one-third of the restricted shares shall be vested upon the first, second and third anniversary of the grant day, respectively. Among which, 30,000 shares were vested in an accelerated manner in December 2021. 19. Share-based compensation (Continued) 2020 share incentive plan (Continued) (3) 12,665,000 of these restricted shares will vest over a three-year schedule in which two-third of the restricted shares shall be vested upon the second anniversary and one-third of the restricted shares shall be vested upon the third anniversary of the grant day, respectively. Among which, 2,299,965 shares were vested in an accelerated manner in December 2021. (4) 500,000 of these restricted shares will vest over a five-year schedule in which one-fifth of the restricted shares shall be vested upon the first, second, third, fourth and fifth anniversary of the grant day, respectively. Among which, 100,000 shares were vested in an accelerated manner in December 2021. A summary of the restricted shares activities under the 2020 Plan for the year ended December 31, 2021 is presented below: Weighted-average Number of grant-date fair restricted shares value (USD) Unvested as of January 1,2021 — Granted 31,091,840 0.83 Vested (2,429,965) Forfeited (2,777,500) Unvested as of December 31, 2021 25,884,375 Expected to vest as of December 31, 2021 19,413,281 Based upon the Company’s historical and expected forfeitures for restricted share units granted, the directors of the Company estimated that its future forfeiture rate would be 25% for employees and directors. As of December 31, 2021, the total unrecognized compensation expense relating to the restricted shares was USD18,147,328 (2020: nil). Total compensation costs recognized for the years ended December 31, 2019, 2020 and 2021 are as follows: Years ended December 31, (In thousands) 2019 2020 2021 Sales and marketing expenses 381 185 59 General and administrative expenses 2,453 1,209 4,682 Research and development expenses 2,594 916 1,429 Total 5,428 2,310 6,170 |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2021 | |
Non-controlling interests | |
Non-controlling interests | 20. Non-controlling interests Non-controlling interests are recognized to reflect the portion of the equity of majority-owned subsidiaries and VIE’s which is not attributable, directly or indirectly, to the controlling shareholder. The non-controlling interests in the Company’s consolidated financial statements consist primarily of the non-controlling interests in Xunlei Games, Thailand Onething, Henan Tourism and Shanghai Anunachi Information Technology Co., Ltd. |
Costs of revenues
Costs of revenues | 12 Months Ended |
Dec. 31, 2021 | |
Costs of revenues | |
Costs of revenues | 21. Costs of revenues Years ended December 31, (In thousands) 2019 2020 2021 Bandwidth costs 57,093 62,384 80,720 Cost of inventories sold 7,181 1,660 1,516 Revenue-sharing from live streaming business 20,734 15,640 26,506 Depreciation of servers and other equipment 5,198 6,247 4,805 Payment handling charges 1,658 1,459 3,066 Other costs (note) 8,049 5,247 1,990 Total 99,913 92,637 118,603 Note: Other costs mainly included technical service costs and write-down of inventories. |
Other income, net
Other income, net | 12 Months Ended |
Dec. 31, 2021 | |
Other income, net | |
Other income, net | 22. Other income, net Years ended December 31, (In thousands) 2019 2020 2021 Government subsidy income 2,061 2,287 3,206 Investment income from short-term investments 4,020 2,943 2,486 Net unrealized gains arising from long-term investments 10,907 794 — Investment income on disposal of long-term investments 579 214 42 Impairment of long-term investments (19,831) (794) — Exchange loss, net (402) (2,948) (1,205) Settlement income 1,531 — — Gains from disposal of LinkToken program 6,630 — — VAT deduction 427 1,361 818 Others (61) 880 (669) Total 5,861 4,737 4,678 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2021 | |
Taxation | |
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) Subsidiaries in the BVI are exempted from income tax on its foreign-derived income in the BVI. There are no withholding taxes in the BVI. (iii) Subsidiaries in Hong Kong are subject to 16.5% income tax on their taxable income generated from operations in Hong Kong. (iv) Subsidiaries incorporated in Singapore were subject to 17% of their taxable income. 23. Taxation (Continued) (v) PRC Enterprise Income Tax (“EIT”) The EIT is calculated based on the taxable income determined under the PRC laws and accounting standards. Under the EIT Law, foreign invested enterprises and domestic enterprises are subject to a unified EIT rate of 25%. In accordance with the implementation rules of the EIT Law, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15%, a “Software Enterprise” (“SE”) is entitled exemption from income taxation for the first two years, counting from the first profitable year, and reduction by half for the next three years, and a certified National Key Software Enterprise (“NKSE”) is entitled a preferential tax rate of 10%. Shenzhen Xunlei, Onething, Wangwenhua and Xunlei Computer have been recognized as HNTE and entitled to preferential tax rate of 15%for the years ended December 31, 2019, 2020 and 2021. In addition, Onething was established in Qianhai Shenzhen Hongkong Modern Service Industry Cooperation Zone and met the requirements set out by the local authorities, accordingly it’s also entitled to a preferential tax rate of 15% for years ended December 31, 2019, 2020 and 2021. In July 2020, Jiangxi Node was qualified for a preferential tax rate of 15% and started to apply this rate from then on. The preferential tax rate is awarded to companies which are located in the West Regions of China and operate in certain encouraged industries. This qualification will need to be assessed on an annual basis. For the years ended December 31, 2020 and 2021, the tax rate assessed for Jiangxi Node was 15% and 15%, respectively. Certain subsidiaries of the Group in the PRC have been granted certain tax concessions to small scale entities by tax authorities in the PRC whereby the subsidiaries operating in the respective region are entitled to tax concessions, the remaining PRC subsidiaries and VIE’s subsidiaries are subject to a 25% EIT rate. According to a policy of the PRC State Tax Bureau, enterprises that engage in research and development activities are entitled to claim 175% of the research and development expenses incurred in a year as tax deductible expenses in determining their tax assessable profits for that year (“Super Deduction”). 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, 2021, both Giganology Shenzhen and Xunlei Computer did not declare any dividend to the parent company and have determined that they have no present plan to declare and pay any dividends. The Group currently plans to continue to reinvest its subsidiaries’ undistributed earnings, if any, in its operations in China indefinitely. Accordingly, no withholding income tax was accrued or required to be accrued for the years ended December 31, 2019, 2020 and 2021. Moreover, the current EIT Law treats enterprises established outside of China with “effective management and control” located in the PRC as PRC resident enterprises for tax purposes. The term “effective management and control” is generally defined as exercising overall management and control over the business, personnel, accounting, properties, etc. of an enterprise. The Company, if considered a PRC resident enterprise for tax purposes, would be subject to the PRC EIT at the rate of 25% on its worldwide income for the period after January 1, 2008. As of December 31, 2020 and 2021, the Company has not accrued for PRC tax on such basis. The Company will continue to monitor its tax status. 23. Taxation (Continued) The current and deferred portions of income tax expense included in the consolidated statements of operations are as follows: Years ended December 31, (In thousands) 2019 2020 2021 Current income tax expenses 315 183 53 Deferred income tax expenses/(benefits) 4,361 966 (178) Income tax expenses/(benefits) 4,676 1,149 (125) The aggregate amount and per share effect of the tax holidays and concession are as follows: Years ended December 31, 2019 2020 2021 Aggregate dollar effect (in thousands) (3,856) 197 4,100 Per share effect—basic (0.01) (0.00) 0.01 Per share effect—diluted (0.01) (0.00) 0.01 The reconciliation of total tax expenses/(benefits) computed by applying the respective statutory income tax rates to pre-tax loss is as follows: Years ended December 31, (In thousands) 2019 2020 2021 Income tax (benefits)/expenses at PRC statutory rate (based on statutory tax rate applicable to enterprises in China) (11,886) (3,736) 246 Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC 788 787 2,571 Non-deductible expenses 228 101 47 Effect of Super Deduction (1,920) (733) (2,262) Effect of tax holidays and tax concessions 3,856 (197) (4,100) Change in valuation allowance of deferred tax assets 13,180 4,704 3,507 Expiration of tax loss 400 84 — Others 30 139 (134) Income tax expenses/(benefits) 4,676 1,149 (125) 23. Taxation (Continued) The tax effects of temporary differences that give rise to the deferred tax assets and liabilities balances of December 31, 2020 and 2021 are as follows: (In thousands) December 31, 2020 December 31, 2021 Deferred tax assets: Net operating losses carried forward (note a) 32,458 39,188 Impairment of long-term equity investments 4,233 4,245 Impairment of other receivables 1,858 1,536 Impairment of accounts receivable 1,451 402 Impairment of inventories 540 70 Allowance for advances to suppliers 369 137 Impairment of property and equipment 15 2 Valuation allowance (40,924) (45,580) Deferred tax assets, net (note b) — — Deferred tax liabilities: Deferred credit arising from an asset acquisition (1,085) (930) Notes: (a) As of December 31, 2021, the accumulated net operating loss of USD 5,875,000 of the Group’s subsidiaries incorporated in Hong Kong can be carried forward indefinitely to offset future taxable income, the remaining accumulated net operating loss of USD 221,906,000 mainly arose from the Company’s subsidiaries, VIE and VIE’s subsidiaries established in the PRC, which can be carried forward to offset future taxable income and will expire during the period from 2022 to 2030. (b) As of December 31, 2020 and 2021, the deferred tax liabilities balances are expected to be recoverable as follows: Deferred tax liabilities (In thousands) 2020 2021 Within one year 176 180 After one year 909 750 1,085 930 Movement of valuation allowance is as follows: Years ended December 31, (In thousands) 2019 2020 2021 Beginning balance 20,181 34,257 40,924 Additions 13,180 4,704 3,507 Exchange difference 896 1,963 1,149 Ending balance 34,257 40,924 45,580 For the years ended December 31, 2019, 2020 and 2021, valuation allowance was provided for net operating loss carryforwards certain subsidiaries, VIE and VIE’s subsidiaries because it was more likely than not that such deferred tax assets will not be realized based on the Group’s estimate of future taxable income of those companies. As of December 31, 2021, the tax returns of the Group’s subsidiaries, VIE and VIE’s subsidiaries since their respective dates of incorporation are still open to examination. |
Basic and diluted net (loss) in
Basic and diluted net (loss) income per share | 12 Months Ended |
Dec. 31, 2021 | |
Basic and diluted net (loss)/income per share | |
Basic and diluted net (loss)/income per share | 24. Basic and diluted net (loss)/income per share Basic and diluted net (loss)/income per share for the years ended December 31, 2019, 2020 and 2021 are calculated as follows: (Amounts expressed in thousands of USD, except Years ended December 31, for number of shares and per share data) 2019 2020 2021 Numerator: Net (loss)/income (53,415) (14,140) 1,108 Less: Net loss attributable to the non-controlling interest (246) (300) (83) Net (loss)/income attributable to Xunlei Limited’s common shareholders (53,169) (13,840) 1,191 Numerator of basic net (loss)/income per share (53,169) (13,840) 1,191 Numerator for diluted net (loss)/income per share (53,169) (13,840) 1,191 Denominator: Denominator for basic net (loss)/income per share ‑ weighted average shares outstanding 337,845,675 337,429,601 334,707,559 Denominator for diluted net (loss)/income per share 337,845,675 337,429,601 335,969,780 Basic net( loss)/ income per share (0.1574) (0.0410) 0.0036 Diluted net (loss)/income per share (0.1574) (0.0410) 0.0035 All potentially dilutive securities were not included in the calculation of dilutive net (loss)/income per share for the years ended December 31, 2019 and 2020 as their effects would be anti-dilutive. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related party transactions | |
Related party transactions | 25. Related party transactions The table below sets forth the related parties and their relationships with the Group: Related party Relationship with the Group Chuan wang Chairman and director of the Company (note i) Shenglong Zou Co-founder, director and shareholder of the Company Weimin Luo Director and Chief Operating Officer of the Company (note i) Shenzhen Crystal Technology Co., Ltd. (“Shenzhen Crystal”) Company owned by a co-founder and director of the Company Vantage Point Global Limited Shareholder of the Company Aiden & Jasmine Limited Shareholder of the Company Millet Technology Co., Ltd. (“Xiaomi Technology”) (note ii) Millet Communication Technology Co., Ltd. (“Millet Communication Technology”) (note ii) Beijing Xiaomi Mobile Software Co., Ltd. (“Beijing Xiaomi Mobile Software”) (note ii) Beijing Millet Payment Technologies Co., Ltd. (“Beijing Millet Payment Technologies”) (note ii) Guangzhou Millet Information Service Co., Ltd. (“Guangzhou Millet”) (note ii) Shenzhen Xiaomi Technology Co., Ltd. (“Shenzhen Xiaomi”) (note ii) Beijing Itui Technology Co., Ltd. (“Beijing Itui”) Company owned by the principal shareholder of the Company (note iii) Itui Online Company owned by the principal shareholder of the Company (note iii) Chizz (HK) Limited (“Chizz”) Company owned by the principal shareholder of the Company (note iii) 25. Related party transactions (Continued) Notes: (i) Chuan Wang has resigned from the board on April 2, 2020, and Weimin Luo resigned from the board and resigned as the Chief Operating Officer on May 19, 2021 and June 1, 2021, respectively. (ii) Prior to April 2, 2020, these companies were related companies to the Company as they were affiliated companies of a shareholder of the Company, Xiaomi Ventures Limited (“Xiaomi Ventures”). On April 2, 2020, Xiaomi Ventures ceased to be the shareholder of the Company as Xiaomi Ventures together with certain shareholders of the Company exchanged their common shares of the Company for the shares of Itui International Inc. (“Itui”). In addition, Xiaomi Ventures entitled to certain veto rights in determining Itui’s voting on the Company. As a result, Xiaomi Ventures and the companies controlled by Xiaomi Ventures continued to be related parties of the Company. (iii) These companies become related parties of Xunlei since April 2, 2020 when Itui became the principal shareholder of the Company. During the years ended December 31, 2019, 2020 and 2021, significant related party transactions were as follows: Years ended December 31, (In thousands) 2019 2020 2021 Bandwidth revenue from Beijing Xiaomi Mobile Software (note a) 1,815 — — Bandwidth revenue from Xiaomi Technology (note a) 875 2,211 2,798 Advertisement revenue from Guangzhou Millet 19 — — Bandwidth revenue from Beijing Itui (note b) — 1,119 821 Advertisement revenue from Itui Online (note c) — 7,269 11,648 Advertisement revenue from Shenzhen Xiaomi (note d) — 53 380 Technology service revenue from Guangzhou Millet (note e) 2,460 2,466 1,245 Technology service revenue from Shenzhen Xiaomi (note e) — — 1,392 Interest income from Chizz — — 176 Bandwidth cost from Quanxun Huiju (note f) — 594 730 Forum service fees paid and payable to Xiaomi Technology 13 — — Interest accrued to Vantage Point Global Limited (note g) 46 243 — Interest accrued to Aiden & Jasmine Limited (note g) 17 91 55 Repayment of loans to Weimin Luo arising from a business combination (note 3) — 662 — 25. Related party transactions (Continued) Notes: (a) From July 2017 to July 2019, Onething entered into a contract with Beijing Xiaomi Mobile Software for the provision of bandwidth to Beijing Xiaomi Mobile Software at a price benchmarking against market price, based on actual usage. From August 2019 till now, Onething entered into the contract with Xiaomi Technology for the provision of bandwidth to Xiaomi Technology at a price benchmarking against market price, based on actual usage. (b) Onething entered into a sales contract with Beijing Itui for provision of bandwidth at a price benchmarking against market price and charged based on actual usage since July 2019. The contract was extended for one year from July 2021 to June 2022 based on the same term. (c) In May 2020, a user traffic monetization agreement was entered into with Itui Online, according to which Xunlei is entitled to receive a mutually agreed sharing of net advertising revenue covering a period from mid-May 2020 to mid-May 2021. The contract was extended for one year from mid-May 2021 to mid-May 2022 based on the same term. (d) In July 2020, a user traffic monetization agreement was entered into with Shenzhen Xiaomi, according to which Xunlei is entitled to receive a mutually agreed sharing of net advertising revenue. (e) The Group is entitled to receive a mutually agreed sharing of net advertising revenue covering a period from mid-June 2017 to mid-June 2019, as compensation for technology solution services provided to Guangzhou Millet. The contract was extended for two years from mid-June 2019 to mid-June 2021. A similar contract was entered into with Shenzhen Xiaomi in July 2021, covering a period of two years. (f) In July 2020, Onething entered into the contract with Quanxun Huiju, for the provision of bandwidth to Onething at a price benchmarking against market price, based on actual usage. The contract was extended for one year from July 2021 to June 2022 based on the same term. (g) In 2014, the Group repurchased 3,860,733 common shares from Aiden & Jasmine Limited (Co founder’s company) for USD10,879,000 and 10,334,679 common shares from Vantage Point Global Limited for USD29,121,000. 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 Seller has 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 Seller the Withheld Price with a simple interest thereon at the rate of five percent (5%) per annum from the Closing Date. Therefore, the Withheld Price for Aiden & Jasmine Limited and Vantage Point Global Limited was USD1,451,000 (including interest of USD363,000) and USD3,883,000 (including interest of USD971,000) respectively. The Group has repaid USD3,883,000 to Vantage Point Global Limited in January 2021. The interest accrued for the year ended December 31, 2021 was USD55,000 for Aiden & Jasmine Limited. 25. Related party transactions (Continued) As of December 31, 2020 and 2021, the amounts due from/to related parties were as follows: (In thousands) December 31, 2020 December 31, 2021 Amounts due from related parties -current Accounts receivable due from Guangzhou Millet 1,456 — Accounts receivable due from Xiaomi Technology 576 831 Accounts receivable due from Itui Online 7,689 12,156 Accounts receivable due from Beijing Itui 1,153 857 Accounts receivable due from Shenzhen Xiaomi 60 1,520 Other receivable due from Chizz (note) — 176 Other receivable due from Xiaomi Technology 15 16 Other receivable due from Shenzhen Crystal 6 7 Other receivable due from Shenglong Zou 9 9 Other receivable due from Chuan Wang 6 6 Amounts due from a related party - non-current Other receivable due from Chizz — 19,311 Note: In September 2021, Xunlei Network provided a loan amounted to USD20 million to Chizz at an interest rate of 3% per annum for a term of 2 years . (In thousands) December 31, 2020 December 31, 2021 Amounts due to related parties Accounts payable due to Quanxun Huiju 55 91 Other payable due to Vantage Point Global Limited 3,883 — Other payable due to Aiden & Jasmine Limited 1,451 1,506 |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair value measurements | |
Fair value measurements | 26. Fair value measurements ASC 820-10 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2 — Include other inputs that are directly or indirectly observable in the marketplace or based on quoted price in markets that are not active Level 3 — Unobservable inputs which are supported by little or no market activity and are significant to the overall fair value measurement ASC 820-10 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. 26. Fair value measurements (Continued) The following table sets forth the financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2020 and 2021. Fair value measurements as of December 31, 2020 Quoted prices Significant in active market other Significant for identical observable unobservable assets inputs inputs (In thousands) Total (Level 1) (Level 2) (Level 3) Short-term investments: Investments in structured deposits and wealth management products 48,993 — 48,993 — 48,993 — 48,993 — Fair value measurements as of December 31, 2021 Quoted prices Significant in active market other Significant for identical observable unobservable assets inputs inputs (In thousands) Total (Level 1) (Level 2) (Level 3) Short-term investments: Investments in structured deposits and wealth management products 53,273 — 53,273 — 53,273 — 53,273 — Investments in privately held companies for which the Company elected to record using the measurement alternative are re-measured on a non-recurring basis, and are categorized within Level 3 under the fair value hierarchy. The values are estimated based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs including volatility, as well as rights and obligations of the securities. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and contingencies | |
Commitments and contingencies | 27. Commitments and contingencies Bandwidth purchase commitments The Group purchase bandwidth in the PRC under non-cancellable contract expiring on different dates. Payments under purchase of bandwidth are expensed on a straight-line basis over the duration of the respective periods. As of December 31, 2021, future minimum payments under non-cancellable bandwidth contracts consist of the following: (In thousands) December 31, 2021 2022 4,410 Capital commitments As of December 31, 2021, the Group has unconditional purchase obligations for office software and construction in progress that had not been recognized in the amount of USD18,291,000. (In thousands) December 31, 2021 2022 17,993 2023 and after 298 18,291 27. Commitments and contingencies (Continued) 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 USD1,955,000 and USD997,000 legal and litigation related expenses for the years ended December 31, 2019 and 2021, respectively, while the Group reversed USD1,217,000 legal and litigation related expense for the year ended December 31, 2020. Up to April 28, 2022, which is the date when the consolidated financial statements were issued, the Group had 17 lawsuits pending against the Group with an aggregate amount of claimed damages of approximately RMB10.9 million (USD1.7 million) which occurred before December 31, 2021 (2020: RMB13.3 million (USD1.9 million)). Of the 17 pending lawsuits, 9 lawsuits were relating to the alleged copyright infringement in the PRC. The Group had accrued for USD973,000 litigation related expenses in “Accrued liabilities and other payables” in the consolidated balance sheet as of December 31, 2021 (2020: USD1,640,000), which is the most probable and reasonably estimable outcome. The Group estimated the litigation compensation based on judgments handed down by the court, out-of-court settlements of similar cases as well as advices from the Group’s legal counsels. The Group is in the process of appealing certain judgments for which the losses had been accrued. Although the results of unsettled litigation and claims cannot be predicted with certainty, the Group does not expect that the outcome of the 17 lawsuits will result in the amounts accrued materially different from the range of reasonably possible losses. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of recorded accrual, with respect to loss contingencies for asserted legal and other claims. However, the outcome of litigation is inherently uncertain. If one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be materially adversely affected. Two putative shareholder class action lawsuits were filed in the United States District Courts for the Southern District of New York against the Company and certain current and former officers and directors of the Company. Purporting to sue on behalf of all investors who purchased or acquired Xunlei stock from October 10, 2017 to January 11, 2018, plaintiffs alleged that certain statements regarding OneCoin, later renamed as LinkToken, in the Company’s press releases and on a quarterly investor call were false and misleading because, among other things, they failed to disclose that OneCoin was a disguised “initial coin offering” and “initial miner offering” and constituted “unlawful financial activity.” Plaintiffs sought to recover under Sections 10(b) and 20(a) of the U.S. Securities Exchange Act of 1934 and Rule 10b-5 thereunder. On April 12, 2018, the court consolidated the actions under the caption In re Xunlei Limited Securities Litigation |
Certain risks and concentration
Certain risks and concentration | 12 Months Ended |
Dec. 31, 2021 | |
Certain risks and concentration | |
Certain risks and concentration | 28. 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 advertising services and live streaming service. Specifically, foreign ownership in an internet content provider or other value-added telecommunication service providers may not exceed 50%. The Group conducts its operations in China principally through contractual arrangements among Giganology Shenzhen, its wholly-owned PRC subsidiary, and Shenzhen Xunlei and its shareholders. Shenzhen Xunlei holds the licenses and permits necessary to conduct its resource discovery network, online advertising, online games and related businesses in China and hold various operating subsidiaries that conduct a majority of its operations in China. The Company conducts all of its operations in China through, Shenzhen Xunlei, a variable interest entity, which it consolidates as a result of a series contractual arrangements entered. If the Company had ownership of Shenzhen Xunlei, it would be able to exercise its rights as a shareholder to effect changes in the board of directors of Shenzhen Xunlei, which in turn could effect changes at the management level, subject to any applicable fiduciary obligations. However, under the current contractual arrangements, it relies on Shenzhen Xunlei and its shareholders’ performance of their contractual obligations to exercise effective control. In addition, its operating contract with Shenzhen Xunlei has a term of ten years, which is subject to Giganology Shenzhen’s unilateral termination right. None of Shenzhen Xunlei or its shareholders may terminate the contracts prior to the expiration date. Further, the Group believes that the contractual arrangements among Giganology Shenzhen, Shenzhen Xunlei and its shareholders are in compliance with PRC law and are legally enforceable. However, the Chinese government may issue from time to time new laws or new interpretations on existing laws to regulate this industry. Regulatory risk also encompasses the interpretation by the tax authorities of current tax laws, and the Group’s legal structure and scope of operations in the PRC, which could be subject to further restrictions resulting in limitations on the Company’s ability to conduct business in the PRC. The PRC government may also require the Company to restructure the Group’s operations entirely if it finds that its contractual arrangements do not comply with applicable laws and regulations. Furthermore, it could revoke the Group’s business and operating licenses, require it to discontinue or restrict its operations, restrict its right to collect revenues, block its website, require it to restructure its operations, impose additional conditions or requirements with which the Group may not be able to comply, or take other regulatory or enforcement actions against the Group that could be harmful to its business. The imposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct the Group’s business. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of the VIE and VIE’s 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 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 VIE’s 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 did not meet the recognition criteria set in ASC 350-30-25. The licenses stated above primarily consist of licenses that grant the VIE and VIE’s subsidiaries the right to produce and broadcast internet, radio, and television programs. One of them is the ICP licenses as described in note 1. 28. Certain risks and concentration (Continued) PRC regulations (Continued) As of December 31, 2021, Shenzhen Xunlei and its subsidiaries held patents granted in the PRC and in the United States. Presently, certain patent applications are being examined by the State Intellectual Property Office of the PRC. As of December 31, 2021, Shenzhen Xunlei and its subsidiaries have applied to register trademarks, of which the Company has received registered trademarks in different applicable trademark categories, including registered with World Intellectual Property Organization. The following financial information of the consolidated VIE (including VIE and VIE’s subsidiaries) was included in the accompanying consolidated financial statements, before elimination of balances with the Company and its subsidiaries, as of and for the years ended: As of December 31, (In thousands) 2020 2021 Current assets: Cash and cash equivalents 14,284 16,645 Short-term investments — 6,373 Accounts receivable, net 22,983 26,003 Amount due from group companies 15,168 3,102 Due from related parties 10,955 15,387 Inventories 1,726 1,363 Prepayments and other current assets 10,046 7,142 Total current assets 75,162 76,015 Non-current assets: Long-term investments 5,706 6,467 Property and equipment, net 50,532 57,417 Intangible assets, net 8,857 8,299 Goodwill 22,607 23,136 Long-term prepayments and other assets 905 2,684 Right-of-use assets 1,915 27 Restricted cash 1,541 4,078 Total assets 167,225 178,123 Current liabilities: Accounts payable 20,588 23,789 Amount due to group companies 106,240 146,732 Due to related parties 55 91 Bank borrowings — 2,876 Contract liabilities and deferred income 34,040 36,740 Income tax payable 2,500 2,451 Accrued liabilities and other payables 33,361 42,449 Lease liabilities, current portion 1,912 18 Total current liabilities 198,696 255,146 Non-current liabilities: Contract liabilities and deferred income, non-current portion 920 845 Deferred tax liabilities 1,085 930 Amount due to group companies, non-current portion 76,810 31,369 Bank borrowings, non-current portion 19,924 17,291 Lease liabilities, non-current portion 27 7 Total liabilities 297,462 305,588 28. Certain risks and concentration (Continued) PRC regulations (Continued) Years ended December 31, (In thousands) 2019 2020 2021 Third-party revenues 178,070 186,679 228,736 Third-party costs of revenues (99,781) (92,388) (109,722) Inter-company operating expenses (7,302) (7,177) (8,032) Third-party operating expenses (117,714) (101,421) (110,367) Net (loss)/income attributable to Xunlei Limited (56,328) (10,673) 2,913 Years ended December 31, (In thousands) 2019 2020 2021 Purchases of goods and services from group companies (11,941) — — Other operating activities with external parties (21,720) (13,423) 24,945 Net cash (used in)/generated from operating activities (33,661) (13,423) 24,945 Loans to group companies (3,369) (6,329) — Repayment of loans from group companies 485 502 — Other investing activities with external parties (5,001) (9,160) (19,417) Net cash used in investing activities (7,885) (14,987) (19,417) Loans from group companies 31,467 2,542 23,527 Repayment of loans to group companies (10,969) (4,300) (24,425) Other financing activities with external parties 11,707 7,154 (223) Net cash generated from/(used in) financing activities 32,205 5,396 (1,121) (9,341) (23,014) 4,407 Amounts previously reported for 2020 and 2019 have been revised, which the revisions, in the opinion of management, are immaterial. The impact of the revisions was eliminated in consolidation. There is no impact on the previously reported consolidated financial position, results of operations or cash flows. Certain long-term cash advances were provided to the consolidated VIE by group companies and previously reported in current payables in 2020. The amount due to group companies of the Group’s consolidated VIE as of December 31, 2020 have been revised to reflect an adjustment with a decrease of USD76.8 million in current payables and an increase of USD76.8 million in non-current payables. Certain cash advances provided to group companies by the consolidated VIE or vice versa, which were of investing or financing nature, were previously reported as operating activities in 2019 and 2020. The amounts of cash flow activities of the Group’s consolidated VIE have been revised to reflect an adjustment with an increase of USD17.6 million and a decrease of USD7.6 million in the net cash used in operating activities, an increase of USD2.9 million and USD5.8 million in the net cash used in investing activities and an increase of USD20.5 million and a decrease of USD1.8 million in the net cash generated from financing activities for the year ended December 31, 2019 and 2020, respectively. 28. Certain risks and concentration (Continued) Foreign exchange risk The Group’s financing activities are denominated mainly in 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 RMB into other currencies. The revenues and expenses of the Company’s subsidiaries, VIE and VIE’s subsidiaries are generally denominated in RMB and their assets and liabilities are denominated in RMB. Concentration of customer risk The top 10 customers accounted for 31%, 38% and 35% of the net revenues for the years ended December 31, 2019, 2020 and 2021, respectively. Credit risk As of December 31, 2020 and 2021, substantially all of the Group’s cash and cash equivalents, restricted cash and short-term investments were held at reputable financial institutions in the jurisdictions where the 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, restricted cash and short-term investments. Prior to entering into sales agreements, the Group performs ongoing credit assessments of its customers, taking into account their financial position, credit history and other factors such as current market conditions. Further, the Group has not experienced any significant bad debts with respect to its accounts receivable for the years ended December 31, 2020 and 2021. The Group is exposed to credit risk in relation to other assets comprised of due from related parties and other receivables, which are typically unsecured. In evaluating the collectability of the balances, the Group considered various factors, including the related parties and third parties’ repayment history and their credit-worthiness. An allowance for credit losses is made when collection of the full amount is no longer probable. Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the Company’s subsidiaries, 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(aa)) 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 USD169,235,000 as of December 31, 2021, or 56% of the Company’s total consolidated net assets. Even though the Company currently does not require any such dividends, loans or advances from the PRC subsidiaries, VIE and VIE’s subsidiaries for working capital and other funding purposes, the Company may in the future require additional cash resources from the Company’s subsidiaries, VIE and VIE’s subsidiaries in China due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends to make distributions to shareholders. 28. Certain risks and concentration (Continued) Restricted net assets (Continued) Furthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency at the time of requesting such conversion may temporarily delay the ability of the PRC subsidiaries, VIE and VIE’s subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent events | |
Subsequent events | 29. Subsequent events On March 31, 2022, the board of directors of the Company authorized a share buyback program, under which the Company may repurchase up to USD20 million of its shares over the next 12 months. |
Additional information_ condens
Additional information: condensed financial statements of the Company | 12 Months Ended |
Dec. 31, 2021 | |
Additional information: condensed financial statements of the Company | |
Additional information: condensed financial statements of the Company | 30. Additional information: condensed financial statements of the Company Regulation S-X requires condensed financial information as to financial position, statements of cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated and unconsolidated subsidiaries together exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company records its investment in its subsidiaries, VIE and VIE’s subsidiaries under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “Investments in subsidiaries and consolidated VIE”. 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. 30. Additional information: condensed financial statements of the Company (Continued) The Company did not have significant other commitments, long-term obligations, or guarantees as of December 31, 2021. Condensed Balance Sheets (In thousands) December 31, 2020 December 31, 2021 Assets Current assets: Cash and cash equivalents 57,585 32,015 Short-term investments 47,525 40,972 Due from group companies 3,323 107,484 Prepayments and other current assets 860 183 Total current assets 109,293 180,654 Non-current assets: Due from group companies, non-current portion 175,720 92,917 Investments in subsidiaries and consolidated VIE 20,064 36,324 Total assets 305,077 309,895 Liabilities Current liabilities: Accounts payable 55 55 Due to subsidiaries and consolidated VIE 10,750 2,546 Due to related parties — 1,506 Contract liabilities and deferred income 1 — Accrued liabilities and other payables 2,118 2,141 Total current liabilities 12,924 6,248 Total liabilities 12,924 6,248 Commitments and contingencies Shareholders’ equity Common shares 84 84 Treasury shares (34,475,224 shares and 31,619,259 shares as of December 31, 2020 and 2021, respectively) 8 8 Other shareholders’ equity 292,061 303,555 Total Xunlei Limited’s shareholders’ equity 292,153 303,647 Total liabilities and shareholders’ equity 305,077 309,895 30. Additional information: condensed financial statements of the Company (Continued) Condensed Statements of Operations Years ended December 31, (In thousands) 2019 2020 2021 Operating expenses Sales and marketing expenses (1) — — General and administrative expenses (1,247) (1,438) (3,302) Total operating expenses (1,248) (1,438) (3,302) Operating loss (1,248) (1,438) (3,302) Interest income 1,496 2 107 Interest expense (75) (399) (95) Other income, net 4,712 2,455 585 (Loss)/income from subsidiaries and consolidated VIE (57,787) (14,361) 3,935 (Loss)/income before income tax (52,902) (13,741) 1,230 Income tax expenses (267) (99) (39) Net (loss)/income (53,169) (13,840) 1,191 Net (loss)/income attributable to Xunlei Limited’s common shareholders (53,169) (13,840) 1,191 Condensed Statements of Cash Flows Years ended December 31, (In thousands) 2019 2020 2021 Other operating activities with external parties 3,854 649 (5,732) Net cash generated from/(used in) operating activities 3,854 649 (5,732) Capital contribution to group companies (100,000) — — Loans to group companies (25,750) (1,802) (26,391) Repayment of loans from group companies 2,459 500 — Other investing activities with external parties 79,339 55,030 6,553 Net cash (used in)/generated from investing activities (43,952) 53,728 (19,838) Other financing activities with external parties — (4,475) — Net cash used in financing activities — (4,475) — Net (decrease)/increase in cash and cash equivalents (40,098) 49,902 (25,570) Cash and cash equivalents at beginning of year 47,781 7,683 57,585 Effect of exchange rates on cash and cash equivalents — — — Cash and cash equivalents at end of year 7,683 57,585 32,015 Amounts previously reported for 2020 and 2019 have been revised, which revisions, in the opinion of management, are immaterial. The impact of the revisions was eliminated in consolidation. There is no impact on the previously reported consolidated financial position, results of operations or cash flows. The Company provided certain long-term cash advances to its subsidiaries and consolidated VIE which were previously reported as due from group companies under current receivables. The current portion of due from group companies, the non-current portion of due from group companies and investments in subsidiaries and consolidated VIE of the Company have been revised to reflect an adjustment with a decrease of USD275.7 million, an increase of USD175.7 million and USD100.0 million as of December 31, 2020, respectively. 30. Additional information: condensed financial statements of the Company (Continued) The cash advances provided to group companies, which were of investing nature, were previously reported as operating activities. The short-term investments at beginning of year were previously reported as cash and cash equivalents at beginning of year and the purchases and maturities of short-term investments were previously excluded from investing activities, and the amount of movements in investments in subsidiaries and consolidated VIE was previously reported as investing activities in 2019 and 2020. To properly reflect the condensed statements of cash flows, the amounts of cash flow activities of the Company have been revised to reflect an adjustment with an increase of USD175.7 million and USD13.4 million in the net cash generated from operating activities, an increase of USD96.3 million and a decrease of USD41.7 million in the net cash used in investing activities, and a decrease of USD181.9 million and USD102.6 million in the cash and cash equivalents at beginning of year for the year ended December 31, 2019 and 2020, respectively. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of significant accounting policies | |
Basis of presentation and use of estimates | (a) Basis of presentation and use of estimates The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (‘‘U.S. GAAP’’). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and related disclosures. Actual results could differ materially from these estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements mainly include allowance for credit losses, valuation allowance of deferred tax assets, impairment assessment of goodwill and impairment assessment of long-lived assets. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
Consolidation | (b) Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE for which the Company is the primary beneficiary and its subsidiaries. All 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. 2. Summary of significant accounting policies (Continued) (b) Consolidation (Continued) Management has evaluated the contractual arrangements among Giganology Shenzhen, Shenzhen Xunlei and its shareholders and concluded that Giganology Shenzhen receives all of the economic benefits and absorbs all of the expected losses from Shenzhen Xunlei and has the power to direct the aforementioned activities that are significant to Shenzhen Xunlei’s economic performance, and is the primary beneficiary of Shenzhen Xunlei. Therefore, Shenzhen Xunlei and its subsidiaries’ results of operation, assets and liabilities have been included in the Group’s consolidated financial statements. Management monitors the regulatory risk associated with these contractual arrangements. See note 28 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 (loss)/income as an allocation of the total income or loss for the year between non-controlling shareholders and the shareholders of the Company. |
Business combinations | (c) The Group accounts for acquisitions of entities that include inputs and processes and have the ability to generate economic benefit as business combinations. The Group allocates the purchase price of the acquisition to the tangible assets and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related costs are expensed as incurred. |
Foreign currency translation | (d) Foreign currency translation The Company’s reporting and functional currency is the United States Dollar (‘‘USD’’). The functional currency of Onething Co., Ltd. (Thailand) (“Thailand Onething”) is the Thai Baht (“THB”), the functional currency of other subsidiaries, VIE and VIE’s subsidiaries located in the Mainland China is the Renminbi (‘‘RMB’’), and the functional currency of other subsidiaries located outside the Mainland China is the USD, 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, net” within the consolidated statements of comprehensive (loss)/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 the one released by Chinese State Administration of Foreign Exchange. |
Cash and cash equivalents and restricted cash | (e) Cash and cash equivalents and restricted cash Cash and cash equivalents include cash on hand, cash in bank and time deposits placed with banks or other financial institutions, which have original maturities of three months or less and are readily convertible to known amounts of cash. Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is included in the total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. The Group’s restricted cash is substantially cash balance on deposit as required by the court for ongoing litigations. |
Short-term investments | (f) Short-term investments Short-term investments include deposits placed with banks with original maturities of more than three months but within one year and investments in financial instruments with a variable interest rate indexed to the performance of underlying assets. In accordance with ASC 825 Financial Instruments |
Allowance for expected credit losses | (g) Allowance for expected credit losses Effective on January 1, 2020, the Group adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326) The Group assessed the credit loss for accounts receivable with similar risk characteristics on a pool basis. The credit loss assessment for each pool was mainly based on past collection experience, consideration of current and future economic conditions and changes in the Group’s collection trends. The credit allowances provided for accounts receivable as of December 31, 2020 and 2021 were USD9,329,000 and USD1,764,000, respectively. |
Inventories | (h) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using actual cost on a weighted average basis. Net realizable value is the amount that can be realized from the sale of the inventory in the normal course of business after allowing for the costs of realization. |
Long-term investments | (i) Long-term investments The Group holds investments in privately held companies. On January 1, 2018, the Group adopted ASU 2016-01, Financial Instruments Management regularly evaluates the impairment of long-term equity investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognised equal to the excess of the investment costs over its fair value at the end of each reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. During the years ended December 31, 2019, 2020 and 2021 the Group recognized an impairment of USD19,831,000, USD794,000 and nil, and share of loss of equity investees of nil, nil and nil from equity method investments, respectively. |
Property and equipment | (j) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the asset at the end of the estimated useful life as a percentage of the original cost. If the Group commits to a plan to abandon a long-lived asset before the end of its previous estimated useful life, depreciation shall be revised to reflect a shortened useful life. Estimated useful lives Residual rate Servers and network equipment 3-5 years 5 % Computer equipment 5 years 5 % Furniture, fixtures and office equipment 3-5 years 5 % Motor vehicles 5 years 5 % Leasehold improvements Shorter of lease term or 3 years — Repair and maintenance costs are expensed as incurred. Expenditures that substantially increase an asset’s useful life are capitalized. Upon sale or disposal, gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive (loss)/income. The cost and related accumulated depreciation are removed from the consolidated balance sheets. |
Goodwill | (k) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries, VIE and VIE’s subsidiaries. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. Based on the qualitative assessment, if it is more likely than not that the fair value of each reporting unit is less than the carrying amount, the quantitative impairment test is performed. In performing the two-step quantitative impairment test, the first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be 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 goodwill to the carrying value of a reporting unit’s 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 the purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, allocation of assets, liabilities and goodwill to reporting units, and determination of the fair value of each reporting unit. Starting in 2020, the Company adopted the FASB issued ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (the “Update”). To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this Update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. It is more likely that, by adopting simplified measurement which eliminates the Step 2 from goodwill impairment test, an entity with the triggering event for goodwill impairment will recognize more goodwill impairment than it would do under the old model. The Group’s goodwill was attributable to the Company as a whole. The impairment test for goodwill determines the fair value of the reporting unit, the Company as a whole, and compares it to the carrying value of the assets and liabilities, including goodwill, of the reporting unit. The fair value of the Company was estimated by management using the discounted cash flow model derived from the long-term (five-year) cash flow projections, which included significant judgements and assumptions relating to revenue forecast and operating margins, discount rate of 18.2% that reflects market assessments of the time value and the specific risks relating to the Company, and cash flows beyond the five-year period are extrapolated using a terminal growth rate of 2%. No goodwill impairment losses were recognized for the years ended December 31, 2019, 2020 and 2021 based on the impairment test performed by the Group. |
Intangible assets | (l) Intangible assets Intangible assets, which include land use rights, acquired computer software and audio-visual license, are carried at cost less accumulated amortization with no residual value and impairment loss, if any. Amortization of intangible assets is computed using the straight-line method over the estimated useful lives of the assets as follows: Estimated useful lives Land use rights 30 years Acquired computer software 5 years Audio-visual license 9 years |
Impairment of long-lived assets | (m) Impairment of long-lived assets For other long-lived assets, the Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to be received from use of the assets and their eventual disposition at the lowest level of identifiable cash flows. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. If the Group identifies an impairment, the carrying value of the asset will be reduced to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. |
Commitments and contingencies | (n) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. In regard to legal cost, the Group recorded such costs as incurred. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Group, but which will only be resolved when one or more future events occur or fail to occur. The Group’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Group or unasserted claims that may result in such proceedings, the Group, in consultation with its legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Group’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. |
Operating leases | (o) Operating leases On January 1, 2019, the Group adopted ASC Topic 842 Leases Lessees shall follow the requirements to classify most leases as either financing or operating using principles similar to previous lease accounting. In the statement of comprehensive (loss)/income, a lessee shall present both of the following: a) for finance leases, the interest expense on the lease liability and amortization of the right-of-use asset are not required to be presented as separate line items and shall be presented in a manner consistent with how the entity presents other interest expense and depreciation or amortization of similar assets, respectively; b) for operating leases, lease expense shall be included in the lessee’s income from operations. The Group adopted ASC 842 on a modified retrospective basis and did not restate comparative periods. The adoption of ASC 842 resulted in the recognition of right-of-use assets and related lease liabilities of approximately USD11.8 million and USD11.4 million, respectively, which were reported on the consolidated balance sheet as of January 1, 2019. The Group have elected the short-term lease exemption for all leases with a lease term of 12 months. Payments associated with short-term leases are recognized on a straight-line basis as an expense in profit or loss. The standard also requires a lessee to recognize a single lease cost related to operating lease, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The net profit after tax had not to be materially impacted as a result of adopting the new rules. With the adoption of ASC 842, the Group assesses, at contract inception, whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining the appropriate discount rate to use in calculating the present value of contractual lease payments, management regularly evaluates the lessee’s incremental borrowing rate, as the rate implicit in the lease cannot be readily determined. See note 11 for additional disclosures on operating lease arrangements. |
Revenue recognition | (p) Revenue recognition Revenue is recognized when or as the control of the services or goods is transferred to the customer. Depending on the terms of the contract and the laws that apply to the contract, control of the services and goods may be transferred over time or at a point in time. A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. Contract costs includes incremental costs of obtaining a contract and costs to fulfil a contract. The Group generates revenues from various streams. Net revenues presented in the consolidated statements of (loss)/income represent revenues from service and product sales net off sales discount, value-added tax and related surcharges. 2. Summary of significant accounting policies (Continued) (p) Revenue recognition (Continued) (I) Subscription revenues The Group operates a VIP membership program where VIP members can have access to high speed online acceleration services, online streaming and other access privileges. The membership fee is time-based and is collected up-front from subscribers. The terms of time-based subscriptions range from one month to twelve months, with the subscribers having the option to renew the contract. The receipt of subscription fee is initially recorded as contract liabilities. The Group satisfies its various performance obligations by providing services throughout the subscription period and revenue is recognized rateably over the period of subscription as services are rendered. Unrecognized portion beyond 12 months from balance sheet date is classified as a long-term liability. The Group evaluated the principal versus agent criteria and determined that the Group is the principal in the transaction and accordingly records revenue on a gross basis. In determining whether to report revenues gross for the amount of subscription revenue, the Group assesses whether it maintains the principal relationship with the VIP members, whether it bears the credit risk and whether it establishes prices for the end users. Service fees levied by online system and mobile payment channels (‘‘Payment handling charges’’) are recorded as the cost of revenues in the same period as the revenue for the membership fee is recognized. (II) Advertising revenues The Group cooperates with advertising platforms such as Guangdiantong and Baidu, of which, the advertising platforms are responsible for matching the requirements of advertisers or advertising agencies and dispatching the advertising content to Xunlei’s platforms by certain analysis systematically. As the advertising platforms are viewed as customers in these transactions, revenue is recognized monthly based on the data publicized on the platforms and pre-agreed sharing portion. In May 2020, the Group entered into a user traffic monetization agreement with Beijing Itui Online Network Technology Co., Ltd. (“Itui Online”), a company controlled by the Company’s principal shareholder. Since May 2020, Itui Online has been handling substantially all of the Group’s advertising resources, including matching the requirements of advertisers and dispatching the advertising content to Xunlei’s platforms. Itui Online is viewed as the customer and revenue is recognized monthly based on the data publicized on the platforms and pre-agreed sharing portion. (III) Live streaming revenues The Group operates certain live streaming platforms where users can access the platform, view the live streaming content provided by performers, and purchase virtual gifts which they can grant to performers in the live streaming platform to show support for their favorite performers. Xunlei is the principal in the provision of the live streaming content and experience, which is considered as the performance obligation of the Group. The Group recognizes revenue from sales of virtual gifts to the viewers when the relevant virtual gifts are presented to the performers or over the duration of stated period of the time-based item. The Group does not have further obligations to the viewers after the virtual gifts are consumed immediately or after the stated period for time-based items, although the Group will continue to provide the live streaming content to the viewers in order to continue to generate sales of virtual gifts. 2. Summary of significant accounting policies (Continued) (p) Revenue recognition (Continued) (IV) Cloud computing and other internet value-added services (i) Revenues from cloud computing service On a monthly basis, the Group records the bandwidth it delivers and recognizes revenue from customers under contractual rates applied (price per GB of bandwidth multiplies total GBs of bandwidth per month). (ii) Revenues from online games The Group enters into a series of technical cooperation agreements with third party online game operators. Users access to the Group’s platform and purchase in-game virtual items which can then be used in games provided by the third-party online game operators. The Group provides the third-party online game operators with a portal which the online game operators can host the online games. The Group charges the online game operators based on a pre-determined portion of proceeds earned from paying users pursuant to the revenue sharing arrangements for the provision of portal and payment collection service to the online game operators. The third-party online game operators are the principal in the provision of games to users and the Group provides the relevant platform to the game operators, therefore, the game operators are viewed as the customers in these transactions. The service fees receivable from the third-party online game operators are variable, which are contingent upon future events (future cash proceeds paid by game players), and are recognized when the contingency is met provided that collectability is reasonably assured. |
Sales and marketing expenses | (q) Sales and marketing expenses Sales and marketing expenses comprise primarily salary, benefits of sales and marketing personnel and external advertising and market promotion expenses. The external advertising and market promotion expenses from operations amounted to approximately USD20,974,000, USD11,026,000 and USD15,052,000 for the years ended December 31, 2019, 2020 and 2021, respectively. |
General and administrative expenses | (r) General and administrative expenses General and administrative expenses consist primarily of salaries and benefits (including related share-based compensation), professional service fees, legal expenses and other administrative expenses. |
Research and development costs | (s) Research and development costs The Group incurred research and development costs to develop its downloading software, live streaming platforms and bandwidth crowdsourcing technologies to enhance the competitive advantages of the Group’s key products, such as Xunlei Accelerator and cloud computing services. Costs incurred during the research phase are expensed as incurred. Costs incurred for the development of the downloading software, live streaming platforms and bandwidth crowdsourcing technologies prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. The development costs qualified for capitalization have been immaterial for the periods presented. In addition, the Group incurred other research and development costs in relation to software used to support its operations. Any development costs qualified for capitalization were immaterial for the periods presented. |
Taxation and uncertain tax positions | (t) Taxation and uncertain tax positions Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements’ carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the difference is expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred tax assets if it is considered more likely than not that some portion, or all, of the deferred tax assets will not be realized. The estimation of future taxable income involves significant judgement and estimates. Based on management’s estimated future taxable income, management concluded that it is more likely than not that the net operating losses carried forward cannot be utilized prior to their respective expiration dates. The Group adopted the ASC 740 “Income Taxes” regarding uncertain tax positions and evaluated its open tax positions that exist in each jurisdiction for each reporting period. If an uncertain tax position is taken or expected to be taken in a tax return, the tax benefit from that uncertain position is recognized in the Group’s consolidated financial statements if it is more likely than not that the position is sustainable upon examination by the relevant taxing authority. The Group did not have any significant uncertain tax position and there was no effect on its financial condition or results of operations as a result of implementing the ASC 740 “Income Taxes”. The Group recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense, if any. PRC Value-added Tax (“VAT”) VAT payable on goods sold or taxable labor services provided by a general VAT taxpayer for a taxable period is the net balance of the output VAT for the period after crediting the input VAT for the period. In addition to the product revenues currently subject to VAT at a rate of 13% (16% before April 1, 2019), the Group’s subscription revenue, live streaming revenue, cloud computing service revenue, online advertising revenue and online games revenue are now subject to VAT at a rate of 6%. According to the policy of the PRC State Tax Bureau, starting from April 1, 2019 to December 31, 2021 enterprises that engage in postal services, telecommunication services and consumer services are entitled to claim 110% of the input tax incurred as tax credit in determining VAT payable. The policy has been extended to December 31, 2022 by the PRC State Tax Bureau on February 18, 2022. |
Retirement benefits | (u) Retirement benefits Full-time employees of the Company’s subsidiaries, VIE and VIE’s 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, VIE and VIE’s subsidiaries of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts from operations for such employee benefits, which are expensed as incurred, were USD12,337,000, USD7,949,000 and USD12,411,000 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Share-based compensation | (v) Share-based compensation The Group measures share-based compensation based on the stock price at the grant date. As the Group has granted restricted shares with service-only condition, the Group elected to recognize compensation costs net of estimated forfeitures on a straight-line basis over the requisite service period, which is generally the same as the vesting period. The amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is vested at that date. |
Government subsidies | (w) Government subsidies The Group receives subsidies from the local PRC government for general use or purchase of equipment. General-use subsidies which are not subject to any conditions or specific use requirements are recorded as subsidy income in the consolidated statements of 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 | (x) Segment reporting The Group’s Chief Executive Officer has been identified as the chief operating decision maker, who reviews consolidated operating results of the Group when making decisions about allocating resources and assessing performance of the Group as a whole. The Group has internal reporting of revenues, costs and expenses that does not distinguish between segments, and reports costs and expenses by nature as a whole. The Group does not distinguish between markets or segments for the purpose of internal reporting. Management has determined that the Group operates and manages its business as a single segment, over 95%of revenues of the Group were derived from mainland China. An analysis of the different types of revenues for the years ended December 31, 2019, 2020 and 2021 are summarized as follows: Revenue from operations Years ended December 31, (In thousands) 2019 2020 2021 Subscription revenue 81,532 84,299 91,174 Live streaming revenue 26,920 20,866 35,102 Advertising revenue 15,643 13,206 12,267 Product revenue (note a) 8,269 1,412 1,897 Cloud computing service and other internet value-added services (note b) 48,903 66,900 99,161 Total 181,267 186,683 239,601 2. Summary of significant accounting policies (Continued) (x) Segment reporting (Continued) Notes: (a) Product revenue comprised sales of OneThing Cloud devices and hard disks. (b) Other internet value-added services mainly comprised provision of technical services. |
Net (loss)/income per share | (y) Net (loss)/income per share Net basic (loss)/income per share is computed by dividing net (loss)/income 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 (loss)/income is allocated between common shares and other participating securities based on their participating rights. Net diluted (loss)/income per share is calculated by dividing net (loss)/income attributable to common shareholders as adjusted for the effect of dilutive common equivalent shares, if any, by the weighted-average number of common and dilutive common equivalents shares outstanding during the year. Dilutive equivalent shares are excluded from the computation of diluted (loss)/income per share if their effects would be anti-dilutive. Common share equivalents are included for the unvested stock under the treasury stock method. |
Comprehensive income | (z) Comprehensive income Comprehensive income is defined as the change in equity of 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 adjustments. |
Profit appropriation and statutory reserves | (aa) Profit appropriation and statutory reserves The Group’s subsidiaries, VIE and VIE’s subsidiaries incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax profit determined in accordance with PRC accounting standards and regulations (“PRC GAAP”). Appropriation to the statutory general reserve should be at least 10% of the after-tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Group is not required to make appropriation to other reserve funds and the Group does not have any intentions to make appropriations to any other reserve funds. The general reserve fund can only be used for specific purposes, such as setting off the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves. There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Group does not do so. |
Dividends | (bb) Dividends Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2019, 2020 and 2021. The Group does not have any present plan to pay any dividends on common shares in the foreseeable future. The Group currently intends to retain the available funds and any future earnings to operate and expand its business. |
Recent accounting pronouncements | (cc) Recent accounting pronouncements In January 2021, the FASB issued ASU No. 2021-01, Reference rate reform (Topic 848): ASU 2021-01 is to clarify that the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848 and that a receive-variable-rate, pay-variable-rate cross-currency interest rate swap may be considered an eligible hedging instrument in a net investment hedge if both legs of the swap do not have the same repricing intervals and dates as a result of reference rate reform. ASU 2021-01 is effective on the issuance date of January 7, 2021 through December 31, 2022. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers The new amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): ASU 2021-10 is issuing the update to increase the transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. The amendments in this Update are effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021 and early application of the amendments is permitted. The Company is currently evaluating the effect of the disclosure requirements of ASU 2021-10. The Group is currently evaluating the impact of the new guidance as stated above and does not expect that the adoption of those guidance will have a material impact on the consolidated financial statements. |
Organization and nature of op_2
Organization and nature of operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization and nature of operations | |
Accompanying Consolidated Financial Statements Include Financial Statements of Company, Subsidiaries, Variable Interest Entity ("VIE") and VIE's Subsidiaries | These consolidated financial statements include the financial statements of the Company, its subsidiaries, its variable interest entity (“VIE”) and VIE’s subsidiaries (collectively referred to as the “Group”). As of December 31, 2021, the Company’s major subsidiaries, VIE and VIE’s subsidiaries are as follows: % of direct or indirect Place of Period of economic Name of entities incorporation incorporation Relationship ownership Principal activities Shenzhen Xunlei Networking Technologies Co., Ltd. (“Shenzhen Xunlei”) People’s Republic of China (“PRC”) January 2003 VIE 100 % Development of software, provision of online advertising and membership subscription Giganology (Shenzhen) Co., Ltd. (“Giganology Shenzhen”) PRC June 2005 Subsidiary 100 % Development of computer software and provision of information technology services to related companies Shenzhen Xunlei Wangwenhua Co., Ltd. (formerly known as “Shenzhen Fengdong Networking Technologies Co., Ltd.”) (“Wangwenhua”) PRC December 2005 VIE’s subsidiary 100 % Development of computer software, provision of advertising services and operation of live steaming platforms Xunlei Games Development (Shenzhen) Co., Ltd. (“Xunlei Games”) PRC February 2010 VIE’s subsidiary 70 % Development of online game and computer software to related companies and provision of advertising services Xunlei Network Technologies Limited (“Xunlei BVI”) British Virgin Islands February 2011 Subsidiary 100 % Investment holding company Xunlei Network Technologies Limited (“Xunlei HK”) Hong Kong March 2011 Subsidiary 100 % Investment holding company and development of computer software Xunlei Computer (Shenzhen) Co., Ltd. (“Xunlei Computer”) PRC November 2011 Subsidiary 100 % Development of computer software and provision of information technology services Shenzhen Onething Technologies Co., Ltd. (“Onething”) PRC September 2013 VIE’s subsidiary 100 % Development of cloud computing technology and provision of related services Beijing Xunjing Technologies Co., Ltd. (formerly known as “Wangxin Century Technologies (Beijing) Co., Ltd.”) (“Beijing Xunjing”) PRC October 2015 VIE’s subsidiary 100 % Development of computer software and provision of information technology services 1. Organization and nature of operations (Continued) % of direct or indirect Place of Period of economic Name of entities incorporation incorporation Relationship ownership Principal activities Henan Tourism Information Co., Ltd. (“Henan Tourism”) PRC June 2018 VIE’s Subsidiary 80 % Software development, tourism consulting, ticket agent and other related services Jiangxi Node Technology Service Co., Ltd. (“Jiangxi Node”) PRC July 2020 VIE’s subsidiary 100 % Development of cloud computing technology and provision of related services FUNI. PTE. LTD. (“FUNI”) Singapore April 2021 Subsidiary 100 % Operation of live streaming platform Note: The English names of the PRC companies represent management’s translation of the Chinese names of these companies as they have not adopted formal English names. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of significant accounting policies | |
Schedule of Property and Equipment Estimated Useful Life | Estimated useful lives Residual rate Servers and network equipment 3-5 years 5 % Computer equipment 5 years 5 % Furniture, fixtures and office equipment 3-5 years 5 % Motor vehicles 5 years 5 % Leasehold improvements Shorter of lease term or 3 years — |
Summary of estimated useful lives of the intangible assets | Estimated useful lives Land use rights 30 years Acquired computer software 5 years Audio-visual license 9 years |
Analysis of Different Types of Revenues | An analysis of the different types of revenues for the years ended December 31, 2019, 2020 and 2021 are summarized as follows: Revenue from operations Years ended December 31, (In thousands) 2019 2020 2021 Subscription revenue 81,532 84,299 91,174 Live streaming revenue 26,920 20,866 35,102 Advertising revenue 15,643 13,206 12,267 Product revenue (note a) 8,269 1,412 1,897 Cloud computing service and other internet value-added services (note b) 48,903 66,900 99,161 Total 181,267 186,683 239,601 |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business combination | |
Summary of the allocation of the purchase price at the date of acquisition | USD (In thousands) As of acquisition date Property and equipment 17 Accrued liabilities and other payables (798) Goodwill 781 Total — |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents | |
Summary of Cash on Hand and Cash Held at Bank | 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, 2020 and 2021 primarily consist of the following currencies: December 31, 2020 December 31, 2021 USD USD (In thousands) Amount equivalent Amount equivalent RMB 312,581 47,906 356,535 55,922 USD 89,050 89,050 66,650 66,650 SGD — — 739 547 Hong Kong Dollar 1,737 224 1,413 181 THB 2,052 68 1,709 51 Indonesian Rupiah — — 101,762 7 Total 137,248 123,358 |
Short-term investments (Tables)
Short-term investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short-term investments | |
Schedule of Short-Term Investments | (In thousands) December 31, 2020 December 31, 2021 Time deposits 68,828 62,379 Investments in financial instruments (note) 48,993 53,273 Total 117,821 115,652 Note: The investments were issued by commercial banks in the 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, 2021 | |
Accounts receivable, net | |
Schedule of Accounts Receivable | (In thousands) December 31, 2020 December 31, 2021 Accounts receivable 32,312 27,899 Less: Allowance for credit losses (9,329) (1,764) Accounts receivable, net 22,983 26,135 |
Schedule of Allowance for Doubtful Accounts | The following table presents movement in the allowance for expected credit loss: (In thousands) December 31, 2019 December 31, 2020 December 31, 2021 Balance at beginning of the year 7,709 7,604 9,329 Additions 19 1,137 72 Reversals — — (481) Write-off — — (7,375) Exchange difference (124) 588 219 Balance at end of the year 7,604 9,329 1,764 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Schedule of inventories | (In thousands) December 31, 2020 December 31, 2021 Hardware devices (note) 4,830 1,595 Others 324 238 Less: Impairment (3,428) (470) Total 1,726 1,363 Note: Hardware devices mainly include OneThing Cloud and hard disks. OneThing Cloud is a hardware, which can act as a micro server between users and Xunlei, which enables users to share their idle uplink capacity with Xunlei. |
Prepayments and other assets (T
Prepayments and other assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments and other assets | |
Schedule of Prepayments and Other Assets | (In thousands) December 31, 2020 December 31, 2021 Current portion: Deposit related to an ongoing litigation (note a) 4,751 4,862 Advances to suppliers (note b) 1,997 2,088 Loans to employees (note c) 1,896 1,614 Rental and other deposits 1,670 1,159 Others 1,220 2,119 Total of prepayments and other current assets 11,534 11,842 Non-current portion: Loans to employees, non-current portion (note c) 905 1,473 Advances to suppliers, non-current portion (note b) — 1,314 Total of long-term prepayments and other assets 905 2,787 Notes: (a) The balance as of December 31, 2020 and 2021 represented the deposits placed in a custodian bank account of the court to secure an order for preservation of assets against a supplier of the Group. (b) Advances to suppliers primarily include prepayments to bandwidth suppliers, prepayments for the construction of Xunlei Tower and other prepaid expenses. 8. Prepayments and other assets (Continued) (c) The Group had entered into loan contracts with certain employees as of December 31, 2020 and 2021, under which the Group provided interest-free loans or low-interest loans to these employees. The loan amounts vary amongst different employees from repayable on demand to repayable in equal installments on a monthly basis over a term of 5 to 10 years . The balances classified as current represented loan amounts that are repayable on demand or repayable within the next twelve months from the balance sheet date. |
Long-term investments (Tables)
Long-term investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term investments | |
Schedule of Long-Term Investments | (In thousands) December 31, 2020 December 31, 2021 Equity interests without a readily determinable fair value: Balance at beginning of the year 26,365 26,734 Additions — 4,627 Net unrealized gains on investments held 794 — Exchange difference 369 134 Less: Impairment loss on long-term investments (794) — Balance at end of the year 26,734 31,495 |
Schedule of Equity Investments, Percentage of Ownership of Common Share | Percentage of ownership of shares as of December 31, Investee 2020 2021 Equity method investments: Zhuhai Qianyou Technology Co., Ltd. (“Zhuhai Qianyou”) (note a) 19.00 % — Shenzhen Mojingou Information Services Co., Ltd. 28.77 % 28.77 % Equity interests without a readily determinable fair value: Guangzhou Yuechuan Network Technology Co., Ltd. 9.30 % 9.30 % Chengdu Diting Technology Co., Ltd. 12.74 % 12.74 % Shanghai Guozhi Electronic Technology Co., Ltd. 16.80 % 16.80 % Guangzhou Hongsi Network Technology Co., Ltd. 19.90 % 19.90 % Xiamen Diensi Network Technology Co., Ltd. 14.25 % 14.25 % 11.2 Capital I, L.P. 2.03 % 2.03 % Cloudtropy 9.69 % 9.69 % Lexiang Technology Co., Ltd. (formerly named as “Shanghai Lexiang Technology Co., Ltd.") ("Lexiang") (note b) 7.81 % 6.93 % Hangzhou Feixiang Data Technology Co., Ltd. 28.00 % 28.00 % Shenzhen Meizhi Interactive Technology Co., Ltd. 9.40 % 9.40 % Beijing Yunhui Tianxia Technology Co., Ltd. 13.70 % 13.70 % Yingshi Innovation Technology Co., Ltd. (formerly named as “Shenzhen Arashi Vision Interative Technology Co., Ltd.”) 8.73 % 8.73 % Beijing Cloudin Technology Co., Ltd. 4.12 % 4.12 % Quanxun Huiju Networking Technology (Beijing) Co., Ltd. ("Quanxun Huiju") 5.40 % 5.40 % Blue Bayread Limited (“Blue Bayread”) (note c) — 1.63 % Clapper Media Group Inc. (“Clapper”) (note d) — 10.00 % Beijing Yunshang Hemei Culture Media Co., Ltd. (“Yunshang Hemei”) (note e) — 10.00 % |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property and equipment, net | |
Schedule of Property and Equipment | (In thousands) December 31, 2020 December 31, 2021 Servers and network equipment 35,827 15,522 Computer equipment 1,565 1,737 Furniture, fixtures and office equipment 836 857 Motor vehicles 481 492 Leasehold improvements 6,604 7,428 Total original costs 45,313 26,036 Less: Accumulated depreciation (33,006) (18,638) Less: Accumulated impairment (3) (2) Sub-total 12,304 7,396 Construction in progress 38,421 50,261 Total 50,725 57,657 |
Summary of Depreciation Expense | Years ended December 31, (In thousands) 2019 2020 2021 Cost of revenues 5,198 6,247 4,805 Research and development expenses 300 529 436 General and administrative expenses 317 2,492 1,068 Sales and marketing expenses 9 9 10 Total 5,824 9,277 6,319 |
Right-of-use assets and lease_2
Right-of-use assets and lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Right-of-use assets and lease liabilities | |
Schedule of right-of-use assets for long-term operating leases | (In thousands) Office leases Net book amount as of January 1, 2020 8,747 Additions 500 Modification of operating lease (3,825) Amortization (3,685) Effect of foreign currency exchange differences 217 Net book amount as of December 31, 2020 1,954 Additions 25 Modification of operating lease (43) Amortization (1,934) Effect of foreign currency exchange differences 25 Net book amount as of December 31, 2021 27 |
Schedule of undiscounted cash payment | The undiscounted cash payments for each of the next five years as of December 31, 2020 is: (In thousands) 2021 1,998 2022 28 Total undiscounted payments 2,026 Less: effect of discounting (38) Discounted lease liabilities 1,988 The undiscounted cash payments for each of the next five years as of December 31, 2021 is: (In thousands) 2022 19 2023 7 Total undiscounted payments 26 Less: effect of discounting (1) Discounted lease liabilities 25 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets, net | |
Schedule of Intangible Assets | December 31, 2020 2021 Net book Net book (In thousands) Cost Amortization value Cost Amortization value Land use rights 5,099 (1,258) 3,841 5,218 (1,461) 3,757 Acquired computer software 3,530 (2,853) 677 3,875 (3,053) 822 Audio-visual license 6,010 (1,671) 4,339 6,151 (2,431) 3,720 14,639 (5,782) 8,857 15,244 (6,945) 8,299 |
Schedule of Amortization Expense Recognized | Years ended December 31 (In thousands) 2019 2020 2021 Cost of revenues 5 — 10 General and administrative expenses 1,136 1,210 1,113 Research and development expenses 59 6 6 Total 1,200 1,216 1,129 |
Schedule of Estimated Aggregate Amortization Expense | (In thousands) Intangible assets 2022 1,153 2023 1,140 2024 1,071 2025 974 2026 and thereafter 3,961 |
Schedule of Weighted Average Amortization Periods of Intangible Assets | (In year) December 31, 2020 December 31, 2021 Land use rights 30 30 Acquired computer software 5 5 Audio-visual license 9 9 Total weighted average amortization periods 10 10 |
Goodwil (Tables)
Goodwil (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill. | |
Summary of goodwill | December 31, December 31, (In thousands) 2020 2021 Beginning balance 20,382 22,607 Addition (note) 815 — Foreign currency translation adjustment 1,410 529 Ending balance 22,607 23,136 Note: The addition of goodwill in 2020 was related to the acquisition of Yunwang Wulian, please refer to note 3 for the acquisition. |
Contract liabilities and defe_2
Contract liabilities and deferred income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Contract liabilities and deferred income. | |
Schedule of Contract Liabilities and Deferred Income | (In thousands) December 31, 2020 December 31, 2021 Contract liabilities (note a) Membership subscription 31,981 35,490 Others 2,513 2,075 Deferred income Government grants 466 172 Total 34,960 37,737 Less: non-current portion (note b) (920) (845) Contract liabilities and deferred income, current portion 34,040 36,892 Notes: (a) Contract liabilities were related to unsatisfied performance obligations at the end of the year. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following period. The amount of revenue recognized that was included in contract liabilities balance at the beginning of the year was USD 30,189,000 and USD 32,611,000 for the years ended December 31, 2020 and 2021, respectively . (b) As of December 31, 2020 and 2021, the non-current portion consists of membership subscription of USD751,000 and USD845,000, and government grants of USD169,000 and nil, respectively. |
Accrued liabilities and other_2
Accrued liabilities and other payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued liabilities and other payables | |
Schedule of Accrued Liabilities and Other Payables | (In thousands) December 31, 2020 December 31, 2021 Payroll and welfare 12,871 18,618 Tax levies 3,394 2,397 Payables related to Kankan 2,581 2,642 Payables for advertisement 1,895 3,821 Legal and litigation related expenses (note 27) 1,640 973 Professional service fees 2,106 2,175 Agency commissions and rebates—online advertising 2,696 2,759 Payables for construction in progress 5,291 9,750 Tax surcharges 1,095 — Others 5,120 6,422 Total 38,689 49,557 |
Bank borrowings (Tables)
Bank borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Bank borrowings | |
Summary of bank borrowings | December 31, December 31, (In thousands) 2020 2021 Bank borrowings, current portion — 2,876 Bank borrowings, non-current portion 19,924 17,291 Total 19,924 20,167 |
Summary of maturity of bank borrowings | As of December 31, 2021, the bank borrowings will be due according to the following schedule: (In thousands) Principal amounts Within 1 year 2,876 Between 1 to 2 years 3,207 Between 2 to 3 years 2,613 Between 3 to 4 years 2,128 Between 4 to 5 years 1,733 Beyond 5 years 7,610 |
Repurchase of shares (Tables)
Repurchase of shares (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Repurchase of shares | |
Schedule of share repurchase activity | Total number of ADSs purchased as Average price Period part of the publicly announced plan paid per ADS July 8 - July 31 857,147 3.72 August 3 - August 18 334,245 3.86 Total for the year ended December 31, 2020 1,191,392 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Share Option Activity | Weighted Weighted Weighted- average average average remaining Aggregate Number of exercise grant-date contractual life intrinsic share options price (USD) fair value (USD) (years) value (USD) Outstanding, January 1, 2019 16,500 3.97 — 1.37 — Vested and expected to vest as of January 1, 2019 16,500 3.97 1.56 1.37 — Exercisable as of January 1, 2019 16,500 3.97 1.56 1.37 — Expired (6,500) 3.97 Outstanding, December 31, 2019 10,000 3.97 — 1.16 — Vested and expected to vest as of December 31, 2019 10,000 3.97 1.01 1.16 — Exercisable as of December 31, 2019 10,000 3.97 1.01 1.16 — Expired (10,000) 3.97 Outstanding, December 31, 2020 — — — — — Vested and expected to vest as of December 31, 2020 and 2021 — — — — — |
Schedule of Recognized Compensation Costs | Total compensation costs recognized for the years ended December 31, 2019, 2020 and 2021 are as follows: Years ended December 31, (In thousands) 2019 2020 2021 Sales and marketing expenses 381 185 59 General and administrative expenses 2,453 1,209 4,682 Research and development expenses 2,594 916 1,429 Total 5,428 2,310 6,170 |
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, 2019, 2020 and 2021 is presented below: Number of restricted shares Unvested as of January 1, 2019 34,175 Vested (27,475) Forfeited (6,700) Unvested as of December 31, 2019 — Expected to vest as of December 31, 2019 — |
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, 2019, 2020 and 2021 is presented below: Weighted-average Number of grant-date fair restricted shares value(USD) Unvested as of January 1, 2019 6,652,040 Expected to vest as of January 1, 2019 5,654,234 Granted 800,000 0.81 Vested (1,296,540) Forfeited (971,000) Unvested as of December 31, 2019 5,184,500 Expected to vest as of December 31, 2019 4,406,825 Vested (965,500) Forfeited (2,959,000) Unvested as of December 31, 2020 1,260,000 Expected to vest at December 31, 2020 1,071,000 Vested (400,000) Forfeited (210,000) Unvested as of December 31, 2021 650,000 Expected to vest as of December 31, 2021 552,500 |
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, 2019, 2020 and 2021 is presented below: Number of restricted shares Unvested as of January 1, 2019 3,476,650 Vested (1,318,450) Forfeited (837,000) Unvested as of December 31, 2019 1,321,200 Expected to vest as of December 31, 2019 1,123,020 Unvested as of January 1, 2020 1,321,200 Vested (228,200) Forfeited (1,067,000) Unvested as of December 31, 2020 26,000 Expected to vest as of December 31, 2020 22,100 Unvested as of January 1, 2021 26,000 Vested (26,000) Unvested as of December 31, 2021 — Expected to vest as of December 31, 2021 — |
2020 Incentive Plan | |
Summary of Restricted Shares Activities | Weighted-average Number of grant-date fair restricted shares value (USD) Unvested as of January 1,2021 — Granted 31,091,840 0.83 Vested (2,429,965) Forfeited (2,777,500) Unvested as of December 31, 2021 25,884,375 Expected to vest as of December 31, 2021 19,413,281 |
Costs of revenues (Tables)
Costs of revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Costs of revenues | |
Schedule of costs of revenues | Years ended December 31, (In thousands) 2019 2020 2021 Bandwidth costs 57,093 62,384 80,720 Cost of inventories sold 7,181 1,660 1,516 Revenue-sharing from live streaming business 20,734 15,640 26,506 Depreciation of servers and other equipment 5,198 6,247 4,805 Payment handling charges 1,658 1,459 3,066 Other costs (note) 8,049 5,247 1,990 Total 99,913 92,637 118,603 Note: Other costs mainly included technical service costs and write-down of inventories. |
Other income, net (Tables)
Other income, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other income, net | |
Schedule of other income, net | Years ended December 31, (In thousands) 2019 2020 2021 Government subsidy income 2,061 2,287 3,206 Investment income from short-term investments 4,020 2,943 2,486 Net unrealized gains arising from long-term investments 10,907 794 — Investment income on disposal of long-term investments 579 214 42 Impairment of long-term investments (19,831) (794) — Exchange loss, net (402) (2,948) (1,205) Settlement income 1,531 — — Gains from disposal of LinkToken program 6,630 — — VAT deduction 427 1,361 818 Others (61) 880 (669) Total 5,861 4,737 4,678 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Taxation | |
Schedule of Current and Deferred Portions of Income Tax Expense | Years ended December 31, (In thousands) 2019 2020 2021 Current income tax expenses 315 183 53 Deferred income tax expenses/(benefits) 4,361 966 (178) Income tax expenses/(benefits) 4,676 1,149 (125) |
Summary of Aggregate Amount and Per Share Effect of Tax Holiday | Years ended December 31, 2019 2020 2021 Aggregate dollar effect (in thousands) (3,856) 197 4,100 Per share effect—basic (0.01) (0.00) 0.01 Per share effect—diluted (0.01) (0.00) 0.01 |
Reconciliation of Total Tax (Benefits)/Expenses | Years ended December 31, (In thousands) 2019 2020 2021 Income tax (benefits)/expenses at PRC statutory rate (based on statutory tax rate applicable to enterprises in China) (11,886) (3,736) 246 Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC 788 787 2,571 Non-deductible expenses 228 101 47 Effect of Super Deduction (1,920) (733) (2,262) Effect of tax holidays and tax concessions 3,856 (197) (4,100) Change in valuation allowance of deferred tax assets 13,180 4,704 3,507 Expiration of tax loss 400 84 — Others 30 139 (134) Income tax expenses/(benefits) 4,676 1,149 (125) |
Summary of Changes in Deferred Tax Asset and Liability Balances | (In thousands) December 31, 2020 December 31, 2021 Deferred tax assets: Net operating losses carried forward (note a) 32,458 39,188 Impairment of long-term equity investments 4,233 4,245 Impairment of other receivables 1,858 1,536 Impairment of accounts receivable 1,451 402 Impairment of inventories 540 70 Allowance for advances to suppliers 369 137 Impairment of property and equipment 15 2 Valuation allowance (40,924) (45,580) Deferred tax assets, net (note b) — — Deferred tax liabilities: Deferred credit arising from an asset acquisition (1,085) (930) Notes: (a) As of December 31, 2021, the accumulated net operating loss of USD 5,875,000 of the Group’s subsidiaries incorporated in Hong Kong can be carried forward indefinitely to offset future taxable income, the remaining accumulated net operating loss of USD 221,906,000 mainly arose from the Company’s subsidiaries, VIE and VIE’s subsidiaries established in the PRC, which can be carried forward to offset future taxable income and will expire during the period from 2022 to 2030. |
Schedule of Deferred Tax Assets and Liabilities Balances | Deferred tax liabilities (In thousands) 2020 2021 Within one year 176 180 After one year 909 750 1,085 930 |
Schedule of Movement of Valuation Allowance | Years ended December 31, (In thousands) 2019 2020 2021 Beginning balance 20,181 34,257 40,924 Additions 13,180 4,704 3,507 Exchange difference 896 1,963 1,149 Ending balance 34,257 40,924 45,580 |
Basic and diluted net (loss) _2
Basic and diluted net (loss) income per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Basic and diluted net (loss)/income per share | |
Schedule of Basic and Diluted Net Loss Per Share | Basic and diluted net (loss)/income per share for the years ended December 31, 2019, 2020 and 2021 are calculated as follows: (Amounts expressed in thousands of USD, except Years ended December 31, for number of shares and per share data) 2019 2020 2021 Numerator: Net (loss)/income (53,415) (14,140) 1,108 Less: Net loss attributable to the non-controlling interest (246) (300) (83) Net (loss)/income attributable to Xunlei Limited’s common shareholders (53,169) (13,840) 1,191 Numerator of basic net (loss)/income per share (53,169) (13,840) 1,191 Numerator for diluted net (loss)/income per share (53,169) (13,840) 1,191 Denominator: Denominator for basic net (loss)/income per share ‑ weighted average shares outstanding 337,845,675 337,429,601 334,707,559 Denominator for diluted net (loss)/income per share 337,845,675 337,429,601 335,969,780 Basic net( loss)/ income per share (0.1574) (0.0410) 0.0036 Diluted net (loss)/income per share (0.1574) (0.0410) 0.0035 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related party transactions | |
Schedule of Relationship Between Related Parties with their Groups | The table below sets forth the related parties and their relationships with the Group: Related party Relationship with the Group Chuan wang Chairman and director of the Company (note i) Shenglong Zou Co-founder, director and shareholder of the Company Weimin Luo Director and Chief Operating Officer of the Company (note i) Shenzhen Crystal Technology Co., Ltd. (“Shenzhen Crystal”) Company owned by a co-founder and director of the Company Vantage Point Global Limited Shareholder of the Company Aiden & Jasmine Limited Shareholder of the Company Millet Technology Co., Ltd. (“Xiaomi Technology”) (note ii) Millet Communication Technology Co., Ltd. (“Millet Communication Technology”) (note ii) Beijing Xiaomi Mobile Software Co., Ltd. (“Beijing Xiaomi Mobile Software”) (note ii) Beijing Millet Payment Technologies Co., Ltd. (“Beijing Millet Payment Technologies”) (note ii) Guangzhou Millet Information Service Co., Ltd. (“Guangzhou Millet”) (note ii) Shenzhen Xiaomi Technology Co., Ltd. (“Shenzhen Xiaomi”) (note ii) Beijing Itui Technology Co., Ltd. (“Beijing Itui”) Company owned by the principal shareholder of the Company (note iii) Itui Online Company owned by the principal shareholder of the Company (note iii) Chizz (HK) Limited (“Chizz”) Company owned by the principal shareholder of the Company (note iii) 25. Related party transactions (Continued) Notes: (i) Chuan Wang has resigned from the board on April 2, 2020, and Weimin Luo resigned from the board and resigned as the Chief Operating Officer on May 19, 2021 and June 1, 2021, respectively. (ii) Prior to April 2, 2020, these companies were related companies to the Company as they were affiliated companies of a shareholder of the Company, Xiaomi Ventures Limited (“Xiaomi Ventures”). On April 2, 2020, Xiaomi Ventures ceased to be the shareholder of the Company as Xiaomi Ventures together with certain shareholders of the Company exchanged their common shares of the Company for the shares of Itui International Inc. (“Itui”). In addition, Xiaomi Ventures entitled to certain veto rights in determining Itui’s voting on the Company. As a result, Xiaomi Ventures and the companies controlled by Xiaomi Ventures continued to be related parties of the Company. (iii) These companies become related parties of Xunlei since April 2, 2020 when Itui became the principal shareholder of the Company. |
Schedule of Significant Related Party Transactions | During the years ended December 31, 2019, 2020 and 2021, significant related party transactions were as follows: Years ended December 31, (In thousands) 2019 2020 2021 Bandwidth revenue from Beijing Xiaomi Mobile Software (note a) 1,815 — — Bandwidth revenue from Xiaomi Technology (note a) 875 2,211 2,798 Advertisement revenue from Guangzhou Millet 19 — — Bandwidth revenue from Beijing Itui (note b) — 1,119 821 Advertisement revenue from Itui Online (note c) — 7,269 11,648 Advertisement revenue from Shenzhen Xiaomi (note d) — 53 380 Technology service revenue from Guangzhou Millet (note e) 2,460 2,466 1,245 Technology service revenue from Shenzhen Xiaomi (note e) — — 1,392 Interest income from Chizz — — 176 Bandwidth cost from Quanxun Huiju (note f) — 594 730 Forum service fees paid and payable to Xiaomi Technology 13 — — Interest accrued to Vantage Point Global Limited (note g) 46 243 — Interest accrued to Aiden & Jasmine Limited (note g) 17 91 55 Repayment of loans to Weimin Luo arising from a business combination (note 3) — 662 — Notes: (a) From July 2017 to July 2019, Onething entered into a contract with Beijing Xiaomi Mobile Software for the provision of bandwidth to Beijing Xiaomi Mobile Software at a price benchmarking against market price, based on actual usage. From August 2019 till now, Onething entered into the contract with Xiaomi Technology for the provision of bandwidth to Xiaomi Technology at a price benchmarking against market price, based on actual usage. (b) Onething entered into a sales contract with Beijing Itui for provision of bandwidth at a price benchmarking against market price and charged based on actual usage since July 2019. The contract was extended for one year from July 2021 to June 2022 based on the same term. (c) In May 2020, a user traffic monetization agreement was entered into with Itui Online, according to which Xunlei is entitled to receive a mutually agreed sharing of net advertising revenue covering a period from mid-May 2020 to mid-May 2021. The contract was extended for one year from mid-May 2021 to mid-May 2022 based on the same term. (d) In July 2020, a user traffic monetization agreement was entered into with Shenzhen Xiaomi, according to which Xunlei is entitled to receive a mutually agreed sharing of net advertising revenue. (e) The Group is entitled to receive a mutually agreed sharing of net advertising revenue covering a period from mid-June 2017 to mid-June 2019, as compensation for technology solution services provided to Guangzhou Millet. The contract was extended for two years from mid-June 2019 to mid-June 2021. A similar contract was entered into with Shenzhen Xiaomi in July 2021, covering a period of two years. (f) In July 2020, Onething entered into the contract with Quanxun Huiju, for the provision of bandwidth to Onething at a price benchmarking against market price, based on actual usage. The contract was extended for one year from July 2021 to June 2022 based on the same term. (g) In 2014, the Group repurchased 3,860,733 common shares from Aiden & Jasmine Limited (Co founder’s company) for USD10,879,000 and 10,334,679 common shares from Vantage Point Global Limited for USD29,121,000. 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 Seller has 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 Seller the Withheld Price with a simple interest thereon at the rate of five percent (5%) per annum from the Closing Date. Therefore, the Withheld Price for Aiden & Jasmine Limited and Vantage Point Global Limited was USD1,451,000 (including interest of USD363,000) and USD3,883,000 (including interest of USD971,000) respectively. The Group has repaid USD3,883,000 to Vantage Point Global Limited in January 2021. The interest accrued for the year ended December 31, 2021 was USD55,000 for Aiden & Jasmine Limited. |
Schedule of Amount Due to from Related Party | (In thousands) December 31, 2020 December 31, 2021 Amounts due from related parties -current Accounts receivable due from Guangzhou Millet 1,456 — Accounts receivable due from Xiaomi Technology 576 831 Accounts receivable due from Itui Online 7,689 12,156 Accounts receivable due from Beijing Itui 1,153 857 Accounts receivable due from Shenzhen Xiaomi 60 1,520 Other receivable due from Chizz (note) — 176 Other receivable due from Xiaomi Technology 15 16 Other receivable due from Shenzhen Crystal 6 7 Other receivable due from Shenglong Zou 9 9 Other receivable due from Chuan Wang 6 6 Amounts due from a related party - non-current Other receivable due from Chizz — 19,311 Note: In September 2021, Xunlei Network provided a loan amounted to USD20 million to Chizz at an interest rate of 3% per annum for a term of 2 years . (In thousands) December 31, 2020 December 31, 2021 Amounts due to related parties Accounts payable due to Quanxun Huiju 55 91 Other payable due to Vantage Point Global Limited 3,883 — Other payable due to Aiden & Jasmine Limited 1,451 1,506 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair value measurements | |
Schedule of Financial Instruments Measured at Fair Value | Fair value measurements as of December 31, 2020 Quoted prices Significant in active market other Significant for identical observable unobservable assets inputs inputs (In thousands) Total (Level 1) (Level 2) (Level 3) Short-term investments: Investments in structured deposits and wealth management products 48,993 — 48,993 — 48,993 — 48,993 — Fair value measurements as of December 31, 2021 Quoted prices Significant in active market other Significant for identical observable unobservable assets inputs inputs (In thousands) Total (Level 1) (Level 2) (Level 3) Short-term investments: Investments in structured deposits and wealth management products 53,273 — 53,273 — 53,273 — 53,273 — |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of undiscounted cash payment | The undiscounted cash payments for each of the next five years as of December 31, 2020 is: (In thousands) 2021 1,998 2022 28 Total undiscounted payments 2,026 Less: effect of discounting (38) Discounted lease liabilities 1,988 The undiscounted cash payments for each of the next five years as of December 31, 2021 is: (In thousands) 2022 19 2023 7 Total undiscounted payments 26 Less: effect of discounting (1) Discounted lease liabilities 25 |
Bandwidth Purchase Commitments [Member] | |
Schedule of undiscounted cash payment | (In thousands) December 31, 2021 2022 4,410 |
Capital commitments [Member] | |
Schedule of undiscounted cash payment | (In thousands) December 31, 2021 2022 17,993 2023 and after 298 18,291 |
Certain risks and concentrati_2
Certain risks and concentration (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Certain risks and concentration | |
Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries | The following financial information of the consolidated VIE (including VIE and VIE’s subsidiaries) was included in the accompanying consolidated financial statements, before elimination of balances with the Company and its subsidiaries, as of and for the years ended: As of December 31, (In thousands) 2020 2021 Current assets: Cash and cash equivalents 14,284 16,645 Short-term investments — 6,373 Accounts receivable, net 22,983 26,003 Amount due from group companies 15,168 3,102 Due from related parties 10,955 15,387 Inventories 1,726 1,363 Prepayments and other current assets 10,046 7,142 Total current assets 75,162 76,015 Non-current assets: Long-term investments 5,706 6,467 Property and equipment, net 50,532 57,417 Intangible assets, net 8,857 8,299 Goodwill 22,607 23,136 Long-term prepayments and other assets 905 2,684 Right-of-use assets 1,915 27 Restricted cash 1,541 4,078 Total assets 167,225 178,123 Current liabilities: Accounts payable 20,588 23,789 Amount due to group companies 106,240 146,732 Due to related parties 55 91 Bank borrowings — 2,876 Contract liabilities and deferred income 34,040 36,740 Income tax payable 2,500 2,451 Accrued liabilities and other payables 33,361 42,449 Lease liabilities, current portion 1,912 18 Total current liabilities 198,696 255,146 Non-current liabilities: Contract liabilities and deferred income, non-current portion 920 845 Deferred tax liabilities 1,085 930 Amount due to group companies, non-current portion 76,810 31,369 Bank borrowings, non-current portion 19,924 17,291 Lease liabilities, non-current portion 27 7 Total liabilities 297,462 305,588 Years ended December 31, (In thousands) 2019 2020 2021 Third-party revenues 178,070 186,679 228,736 Third-party costs of revenues (99,781) (92,388) (109,722) Inter-company operating expenses (7,302) (7,177) (8,032) Third-party operating expenses (117,714) (101,421) (110,367) Net (loss)/income attributable to Xunlei Limited (56,328) (10,673) 2,913 Years ended December 31, (In thousands) 2019 2020 2021 Purchases of goods and services from group companies (11,941) — — Other operating activities with external parties (21,720) (13,423) 24,945 Net cash (used in)/generated from operating activities (33,661) (13,423) 24,945 Loans to group companies (3,369) (6,329) — Repayment of loans from group companies 485 502 — Other investing activities with external parties (5,001) (9,160) (19,417) Net cash used in investing activities (7,885) (14,987) (19,417) Loans from group companies 31,467 2,542 23,527 Repayment of loans to group companies (10,969) (4,300) (24,425) Other financing activities with external parties 11,707 7,154 (223) Net cash generated from/(used in) financing activities 32,205 5,396 (1,121) (9,341) (23,014) 4,407 |
Additional information_ conde_2
Additional information: condensed financial statements of the Company (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Additional information: condensed financial statements of the Company | |
Schedule of Condensed Balance Sheets | The Company did not have significant other commitments, long-term obligations, or guarantees as of December 31, 2021. Condensed Balance Sheets (In thousands) December 31, 2020 December 31, 2021 Assets Current assets: Cash and cash equivalents 57,585 32,015 Short-term investments 47,525 40,972 Due from group companies 3,323 107,484 Prepayments and other current assets 860 183 Total current assets 109,293 180,654 Non-current assets: Due from group companies, non-current portion 175,720 92,917 Investments in subsidiaries and consolidated VIE 20,064 36,324 Total assets 305,077 309,895 Liabilities Current liabilities: Accounts payable 55 55 Due to subsidiaries and consolidated VIE 10,750 2,546 Due to related parties — 1,506 Contract liabilities and deferred income 1 — Accrued liabilities and other payables 2,118 2,141 Total current liabilities 12,924 6,248 Total liabilities 12,924 6,248 Commitments and contingencies Shareholders’ equity Common shares 84 84 Treasury shares (34,475,224 shares and 31,619,259 shares as of December 31, 2020 and 2021, respectively) 8 8 Other shareholders’ equity 292,061 303,555 Total Xunlei Limited’s shareholders’ equity 292,153 303,647 Total liabilities and shareholders’ equity 305,077 309,895 |
Schedule of Condensed Statements of Operations | Condensed Statements of Operations Years ended December 31, (In thousands) 2019 2020 2021 Operating expenses Sales and marketing expenses (1) — — General and administrative expenses (1,247) (1,438) (3,302) Total operating expenses (1,248) (1,438) (3,302) Operating loss (1,248) (1,438) (3,302) Interest income 1,496 2 107 Interest expense (75) (399) (95) Other income, net 4,712 2,455 585 (Loss)/income from subsidiaries and consolidated VIE (57,787) (14,361) 3,935 (Loss)/income before income tax (52,902) (13,741) 1,230 Income tax expenses (267) (99) (39) Net (loss)/income (53,169) (13,840) 1,191 Net (loss)/income attributable to Xunlei Limited’s common shareholders (53,169) (13,840) 1,191 |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Years ended December 31, (In thousands) 2019 2020 2021 Other operating activities with external parties 3,854 649 (5,732) Net cash generated from/(used in) operating activities 3,854 649 (5,732) Capital contribution to group companies (100,000) — — Loans to group companies (25,750) (1,802) (26,391) Repayment of loans from group companies 2,459 500 — Other investing activities with external parties 79,339 55,030 6,553 Net cash (used in)/generated from investing activities (43,952) 53,728 (19,838) Other financing activities with external parties — (4,475) — Net cash used in financing activities — (4,475) — Net (decrease)/increase in cash and cash equivalents (40,098) 49,902 (25,570) Cash and cash equivalents at beginning of year 47,781 7,683 57,585 Effect of exchange rates on cash and cash equivalents — — — Cash and cash equivalents at end of year 7,683 57,585 32,015 |
Organization and nature of op_3
Organization and nature of operations - Additional Information (Details) ¥ / shares in Units, $ in Thousands, ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021¥ / shares | |
Variable Interest Entity [Line Items] | |||||
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 | $ | $ 239,601 | $ 186,683 | $ 181,267 | ||
Right-of-use assets | $ | 27 | 1,954 | $ 8,747 | ||
Lease liabilities | $ | $ 25 | $ 1,988 | |||
Giganology Shenzhen | |||||
Variable Interest Entity [Line Items] | |||||
Termination of agreement, notice period | 30 days | 30 days | |||
Automated extended period of agreement | 10 years | 10 years | |||
Agreement expiration date | 2022 | 2022 | |||
Agreement between Giganology Shenzhen and Mr. Sean Shenglong Zou [Member] | |||||
Variable Interest Entity [Line Items] | |||||
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 | ||||
Call Option Agreement [Member] | Giganology Shenzhen | |||||
Variable Interest Entity [Line Items] | |||||
Agreement expiration date | 2022 | 2022 | |||
Agreement expiration extended date | 2032 | 2032 | |||
Outstanding share, purchase price per share | ¥ / shares | ¥ 1 | ||||
Exclusive Technology Support and Services Agreement [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of pre-tax operating profit | 20.00% | 20.00% | |||
Exclusive Technology Support and Services Agreement [Member] | Giganology Shenzhen | |||||
Variable Interest Entity [Line Items] | |||||
Term agreement expiration year | 2025 | 2025 | |||
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% |
Organization and nature of op_4
Organization and nature of operations - Accompanying Consolidated Financial Statements Include Financial Statements of Company, Subsidiaries, Variable Interest Entity ("VIE") and VIE's Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Giganology Shenzhen | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Period 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 |
Xunlei BVI | |
Variable Interest Entity [Line Items] | |
Place of incorporation | British Virgin Islands |
Period of incorporation | Feb. 28, 2011 |
Relationship | Subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Investment holding company |
Xunlei HK | |
Variable Interest Entity [Line Items] | |
Place of incorporation | Hong Kong |
Period of incorporation | Mar. 31, 2011 |
Relationship | Subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Investment holding company and development of computer software |
Xunlei Computer | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Period 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 |
FUNI | |
Variable Interest Entity [Line Items] | |
Place of incorporation | Singapore |
Period of incorporation | Apr. 30, 2021 |
Relationship | Subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Operation of live streaming platform |
Shenzhen Xunlei | |
Variable Interest Entity [Line Items] | |
Place of incorporation | People’s Republic of China (“PRC”) |
Period of incorporation | Jan. 31, 2003 |
Relationship | VIE |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of software, provision of online advertising and membership subscription |
Wangwenhua | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Period of incorporation | Dec. 31, 2005 |
Relationship | VIE’s subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of computer software, provision of advertising services and operation of live steaming platforms |
Xunlei Games | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Period 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 to related companies and provision of advertising services |
Onething | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Period of incorporation | Sep. 30, 2013 |
Relationship | VIE’s subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of cloud computing technology and provision of related services |
Beijing Xunjing | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Period of incorporation | Oct. 31, 2015 |
Relationship | VIE’s subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of computer software and provision of information technology services |
Henan Tourism | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Period of incorporation | Jun. 30, 2018 |
Relationship | VIE’s Subsidiary |
Percentage of direct or indirect economic ownership | 80.00% |
Principal activities | Software development, tourism consulting, ticket agent and other related services |
Jiangxi Node | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Period of incorporation | Jul. 31, 2020 |
Relationship | VIE’s subsidiary |
Percentage of direct or indirect economic ownership | 100.00% |
Principal activities | Development of cloud computing technology and provision of related services |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Accounting Policies and General Information [Line Items] | ||||||
Allowance for doubtful accounts | $ 1,764,000 | $ 9,329,000 | $ 7,604,000 | $ 7,709,000 | ||
Impairment of long-term investments | 794,000 | 19,831,000 | ||||
Cash flow projection period | 5 years | |||||
Discount rate | 18.20% | |||||
Terminal Growth Rate to extrapolate the cash flows beyond five-year period | 2.00% | |||||
Goodwill impairment losses | $ 0 | 0 | 0 | |||
External advertising and market promotion expenses from continuing operations | $ 15,052,000 | 11,026,000 | 20,974,000 | |||
Value added tax on revenues | 16.00% | 13.00% | ||||
Value added tax on sub-licensing revenues | 6.00% | |||||
Employee benefit costs | $ 12,411,000 | $ 7,949,000 | $ 12,337,000 | |||
Statutory general reserve rate | 10.00% | |||||
Statutory general reserve rate of registered capital | 50.00% | |||||
Dividends declared | $ 0 | $ 0 | $ 0 | |||
Right-of-use assets | $ 27,000 | $ 1,954,000 | $ 8,747,000 | |||
Lease liabilities | 25,000 | 1,988,000 | ||||
Shenzhen Mojingou Information Service Co., Ltd [Member] | ||||||
Accounting Policies and General Information [Line Items] | ||||||
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | |||
Long-term Investments [Member] | ||||||
Accounting Policies and General Information [Line Items] | ||||||
Impairment of long-term investments | 0 | 794,000 | 19,831,000 | |||
Income (Loss) from Equity and Cost Method Investments | $ 42,000 | $ 214,000 | $ 579,000 | |||
Minimum | ||||||
Accounting Policies and General Information [Line Items] | ||||||
Term of time-based subscriptions | 1 month | |||||
Maximum [Member] | ||||||
Accounting Policies and General Information [Line Items] | ||||||
Term of time-based subscriptions | 12 months | |||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | China [Member] | Minimum | ||||||
Accounting Policies and General Information [Line Items] | ||||||
Percent of revenue | 95.00% | 95.00% | 95.00% | |||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Adjustment | ||||||
Accounting Policies and General Information [Line Items] | ||||||
Right-of-use assets | $ 11,800,000 | |||||
Lease liabilities | $ 11,400,000 | |||||
Land use rights | ||||||
Accounting Policies and General Information [Line Items] | ||||||
Other intangible assets, amortization period | 30 years |
Summary of significant accoun_5
Summary of significant accounting policies - Schedule of Property and Equipment Estimated Useful Life (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Servers and network equipment | |
Property, Plant and Equipment [Line Items] | |
Residual rate | 5.00% |
Servers and network equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Servers and network equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Residual rate | 5.00% |
Furniture, fixtures and office equipment | |
Property, Plant and Equipment [Line Items] | |
Residual rate | 5.00% |
Furniture, fixtures and office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture, fixtures and office equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Motor vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Residual rate | 5.00% |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Summary of significant accoun_6
Summary of significant accounting policies - Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Land use rights | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 30 years |
Acquired computer software | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Audio-visual license | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 9 years |
Summary of significant accoun_7
Summary of significant accounting policies - Analysis of Different Types of Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net revenues | |||
Net revenues | $ 239,601 | $ 186,683 | $ 181,267 |
Subscription revenue | |||
Net revenues | |||
Net revenues | 91,174 | 84,299 | 81,532 |
Product revenue | |||
Net revenues | |||
Net revenues | 1,897 | 1,412 | 8,269 |
Live streaming revenue | |||
Net revenues | |||
Net revenues | 35,102 | 20,866 | 26,920 |
Advertising | |||
Net revenues | |||
Net revenues | 12,267 | 13,206 | 15,643 |
Product and Service, Other [Member] | |||
Net revenues | |||
Net revenues | $ 99,161 | $ 66,900 | $ 48,903 |
Business combination (Details)
Business combination (Details) - Yunwang Wulian $ in Thousands | 1 Months Ended |
Sep. 30, 2020USD ($) | |
Business Acquisition [Line Items] | |
Percentage of equity acquired | 100.00% |
Cash consideration | $ 0 |
Business combination - Purchase
Business combination - Purchase price at the date of acquisitions (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Allocation of the purchase price at the date of acquisition | ||||
Goodwill | $ 23,136 | $ 22,607 | $ 20,382 | |
Yunwang Wulian | ||||
Allocation of the purchase price at the date of acquisition | ||||
Property and equipment | $ 17 | |||
Accrued liabilities and other payables | (798) | |||
Shanxian Daojia | ||||
Allocation of the purchase price at the date of acquisition | ||||
Goodwill | $ 781 |
Cash and cash equivalents - Add
Cash and cash equivalents - Additional Information (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents | ||
Time Deposits, at Carrying Value | $ 31,050,000 | $ 27,200,000 |
Cash and cash equivalents - Sum
Cash and cash equivalents - Summary of Cash on Hand and Cash Held at Bank (Details) ฿ in Thousands, ¥ in Thousands, Rp in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021SGD ($) | Dec. 31, 2021HKD ($) | Dec. 31, 2021THB (฿) | Dec. 31, 2021IDR (Rp) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020HKD ($) | Dec. 31, 2020THB (฿) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Cash and Cash Equivalents [Line Items] | ||||||||||||
Cash on hand and cash held at bank | $ 123,358 | $ 137,248 | $ 162,465 | $ 122,930 | ||||||||
RMB [Member] | ||||||||||||
Cash and Cash Equivalents [Line Items] | ||||||||||||
Cash on hand and cash held at bank | 55,922 | ¥ 356,535 | 47,906 | ¥ 312,581 | ||||||||
USD [Member] | ||||||||||||
Cash and Cash Equivalents [Line Items] | ||||||||||||
Cash on hand and cash held at bank | 66,650 | 89,050 | ||||||||||
SGD [Member] | ||||||||||||
Cash and Cash Equivalents [Line Items] | ||||||||||||
Cash on hand and cash held at bank | 547 | $ 739 | ||||||||||
HKD [Member] | ||||||||||||
Cash and Cash Equivalents [Line Items] | ||||||||||||
Cash on hand and cash held at bank | 181 | $ 1,413 | 224 | $ 1,737 | ||||||||
THB [Member] | ||||||||||||
Cash and Cash Equivalents [Line Items] | ||||||||||||
Cash on hand and cash held at bank | 51 | ฿ 1,709 | $ 68 | ฿ 2,052 | ||||||||
IDR [Member] | ||||||||||||
Cash and Cash Equivalents [Line Items] | ||||||||||||
Cash on hand and cash held at bank | $ 7 | Rp 101,762 |
Short-term investments - Schedu
Short-term investments - Schedule of Short-Term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Short-term investments | $ 115,652 | $ 117,821 |
Time deposits [Member] | ||
Schedule of Investments [Line Items] | ||
Short-term investments | 62,379 | 68,828 |
Investments in financial instruments [Member] | ||
Schedule of Investments [Line Items] | ||
Short-term investments | $ 53,273 | $ 48,993 |
Accounts receivable, net - Addi
Accounts receivable, net - Additional Information (Details) - customer | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of top customers | 10 | |
Credit concentration risk [Member] | Accounts receivable [Member] | Top 10 customers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, percentage | 86.00% | 65.00% |
Accounts receivable, net - Sche
Accounts receivable, net - Schedule of Accounts Receivable (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, net | ||||
Accounts receivable | $ 27,899,000 | $ 32,312,000 | ||
Less: Allowance for credit losses | (1,764,000) | (9,329,000) | $ (7,604,000) | $ (7,709,000) |
Accounts receivable, net | $ 26,135,000 | $ 22,983,000 |
Accounts receivable, net - Sc_2
Accounts receivable, net - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts receivable, net | |||
Balance at beginning of the year | $ 9,329,000 | $ 7,604,000 | $ 7,709,000 |
Additions | 72,000 | 1,137,000 | 19,000 |
Reversals | (481,000) | ||
Write-off | (7,375,000) | ||
Exchange difference | 219,000 | 588,000 | (124,000) |
Balance at end of the year | $ 1,764,000 | $ 9,329,000 | $ 7,604,000 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories | ||
Inventory Write-down | $ 429,000 | $ 3,283,000 |
Inventories - Schedule (Details
Inventories - Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories [Line Items] | ||
Less: Impairment | $ (470) | $ (3,428) |
Inventories | 1,363 | 1,726 |
Hardware Devices [Member] | ||
Inventories [Line Items] | ||
Inventories | 1,595 | 4,830 |
Others [Member] | ||
Inventories [Line Items] | ||
Inventories | $ 238 | $ 324 |
Prepayments and other assets -
Prepayments and other assets - Schedule of Prepayments and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current portion: | ||
Deposit related to an ongoing litigation (note a) | $ 4,862 | $ 4,751 |
Advance to suppliers (note b) | 2,088 | 1,997 |
Loans to employees (note c) | 1,614 | 1,896 |
Rental and other deposits | 1,159 | 1,670 |
Others | 2,119 | 1,220 |
Total of prepayments and other current assets | 11,842 | 11,534 |
Non-current portion: | ||
Loans to employees, non-current portion (note c) | 1,473 | 905 |
Advances to suppliers, non-current portion (note b) | 1,314 | |
Total of long-term prepayments and other assets | $ 2,787 | $ 905 |
Prepayments and other assets _2
Prepayments and other assets - Schedule of Prepayments and Other Assets (Parenthetical) (Details) - Employees [Member] | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Term of interest-free loans to employees | 5 years |
Maximum [Member] | |
Term of interest-free loans to employees | 10 years |
Long-term investments - Schedul
Long-term investments - Schedule of Long-Term Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cost method investments: | |||
Balance at beginning of the year | $ 26,734 | $ 26,734 | $ 26,365 |
Additions | 4,627 | 0 | |
Net unrealized gains on investments held | 794 | ||
Exchange difference | 134 | 369 | |
Less: Impairment loss on long-term investments | (794) | ||
Balance at end of the year | $ 31,495 | $ 26,734 | $ 26,734 |
Long-term investments - Sched_2
Long-term investments - Schedule of Equity Investments, Percentage of Ownership of Common Share (Details) | 1 Months Ended | |||
Dec. 31, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Zhuhai Qianyou [Member] | ||||
Equity method investments: | ||||
Equity method investments, Percentage of ownership of common share | 19.00% | |||
Shenzhen Mojingou Information Service Co., Ltd [Member] | ||||
Equity method investments: | ||||
Equity method investments, Percentage of ownership of common share | 28.77% | 28.77% | ||
Guangzhou Yuechuan [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 9.30% | 9.30% | ||
Chengdu Diting [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 12.74% | 12.74% | ||
Shanghai Guozhi [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 16.80% | 16.80% | ||
Guangzhou Hongsi [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 19.90% | 19.90% | ||
Xiamen Diensi [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 14.25% | 14.25% | ||
11.2 Capital [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 2.03% | 2.03% | ||
Cloudtropy [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 9.69% | 9.69% | ||
Shanghai Lexiang [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 6.93% | 6.93% | 7.81% | |
Hangzhou Feixiang [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 28.00% | 28.00% | ||
Shenzhen Meizhi Interactive Technology Co Ltd [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 9.40% | 9.40% | ||
Beijing Yunhui Tianxia [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 13.70% | 13.70% | ||
Shen Zhen Arashi [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 8.73% | 8.73% | ||
Beijing Cloudin Technology [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 4.12% | 4.12% | ||
Quanxun Huiju [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 5.40% | 5.40% | ||
Blue Bayread Limited [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 1.63% | |||
Blue Bayread Limited [Member] | Xunlei BVI | ||||
Cost method investments: | ||||
Cost Method Investments, Ownership Percentage Acquired | 1.63% | |||
Clapper Media Group Inc. [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 10.00% | |||
Clapper Media Group Inc. [Member] | Xunlei HK | ||||
Cost method investments: | ||||
Cost Method Investments, Ownership Percentage Acquired | 10.00% | |||
Yunshang Hemei [Member] | ||||
Cost method investments: | ||||
Cost method investments, Percentage of ownership of common share | 10.00% | |||
Yunshang Hemei [Member] | Wangwenhua | ||||
Cost method investments: | ||||
Cost Method Investments, Ownership Percentage Acquired | 10.00% |
Long-term investments - Additio
Long-term investments - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Oct. 31, 2021USD ($) | May 31, 2021USD ($) | Oct. 31, 2020 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Net unrealized gains on investments held | $ 794,000 | ||||||
Impairment of long-term investments | 794,000 | $ 19,831,000 | |||||
Shanghai Lexiang [Member] | |||||||
Percentage of equity interest disposed | 4.82 | ||||||
Consideration for disposal of equity interest | $ 268,000 | ||||||
Net unrealized gains on investments held | 794,000 | ||||||
Impairment of long-term investments | $ 794,000 | ||||||
Clapper Media Group Inc. [Member] | Xunlei HK | |||||||
Payments to Acquire Equity Method Investments | $ 1,000,000 | ||||||
Zhuhai Qianyou [Member] | |||||||
Consideration for disposal of equity interest | $ 298,000 | ||||||
Percent of equity interest owned | 19.00% | ||||||
Yunshang Hemei [Member] | Wangwenhua | |||||||
Payments to Acquire Equity Method Investments | $ 627,384 | ¥ 4,000,000 | |||||
Blue Bayread Limited [Member] | Xunlei BVI | |||||||
Payments to Acquire Equity Method Investments | $ 3,000,000 |
Property and equipment, net - S
Property and equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total original costs | $ 26,036 | $ 45,313 |
Less: Accumulated depreciation | (18,638) | (33,006) |
Less: Accumulated impairment | (2) | (3) |
Sub-total | 7,396 | 12,304 |
Construction in progress | 50,261 | 38,421 |
Total | 57,657 | 50,725 |
Servers and network equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total original costs | 15,522 | 35,827 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total original costs | 1,737 | 1,565 |
Furniture, fixtures and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total original costs | 857 | 836 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total original costs | 492 | 481 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total original costs | $ 7,428 | $ 6,604 |
Property and equipment, net - I
Property and equipment, net - Impairment loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property and equipment, net | |||
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 0 | $ 0 |
Property and equipment, net -_2
Property and equipment, net - Summary of Depreciation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 6,319 | $ 9,277 | $ 5,824 |
Cost of revenues. | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 4,805 | 6,247 | 5,198 |
Research and development expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 436 | 529 | 300 |
General and administrative expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 1,068 | 2,492 | 317 |
Sales and marketing expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 10 | $ 9 | $ 9 |
Right-of-use assets and lease_3
Right-of-use assets and lease liabilities - Operating leases (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Right-of-use assets for long-term operating leases | |||
Beginning balance | $ 1,954,000 | $ 8,747,000 | |
Additions | 25,000 | 500,000 | |
Modification of operating lease | (43,000) | (3,825,000) | |
Amortization | (1,934,000) | (3,685,000) | $ (5,634,000) |
Effect of foreign currency exchange differences | 25,000 | 217,000 | |
Ending balance | 27,000 | 1,954,000 | 8,747,000 |
General and administrative expenses for long-term operating lease | 1,934,000 | 3,762,000 | 6,077,000 |
Charge recognized in relation to short-term lease | 786,000 | $ 291,000 | $ 301,000 |
Future minimum payments under non-cancellable short-term operating leases in 2020 | $ 1,322,000 | ||
Discount rate related to operating lease (as a percent) | 5.40% | 5.40% | 5.50% |
Weighted average remaining lease term (in years) | 1 year | 1 year | 2 years |
Cash payments in respect of operating lease | $ 2,003,000 | $ 3,797,000 | $ 5,149,000 |
Minimum | |||
Right-of-use assets and lease liabilities | |||
Operating lease, term of contract | 1 year | ||
Maximum [Member] | |||
Right-of-use assets and lease liabilities | |||
Operating lease, term of contract | 3 years |
Right-of-use assets and lease_4
Right-of-use assets and lease liabilities - Undiscounted cash payment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Undiscounted cash payment | ||
2021 | $ 1,998 | |
2022 | $ 19 | 28 |
2023 | 7 | |
Total undiscounted payments | 26 | 2,026 |
Less: effect of discounting | (1) | (38) |
Discounted lease liabilities | $ 25 | $ 1,988 |
Intangible assets, net - Schedu
Intangible assets, net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 15,244 | $ 14,639 |
Amortization | (6,945) | (5,782) |
Net book value | 8,299 | 8,857 |
Land use rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 5,218 | 5,099 |
Amortization | (1,461) | (1,258) |
Net book value | 3,757 | 3,841 |
Acquired computer software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,875 | 3,530 |
Amortization | (3,053) | (2,853) |
Net book value | 822 | 677 |
Audio-visual license | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 6,151 | 6,010 |
Amortization | (2,431) | (1,671) |
Net book value | $ 3,720 | $ 4,339 |
Intangible assets, net - Sche_2
Intangible assets, net - Schedule of Amortization Expense Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 1,129 | $ 1,216 | $ 1,200 |
Cost of revenues. | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 10 | 5 | |
General and administrative expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 1,113 | 1,210 | 1,136 |
Research and development expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 6 | $ 6 | $ 59 |
Intangible assets, net - Sche_3
Intangible assets, net - Schedule of Estimated Aggregate Amortization Expense (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Intangible assets, net | |
2022 | $ 1,153 |
2023 | 1,140 |
2024 | 1,071 |
2025 | 974 |
2026 and thereafter | $ 3,961 |
Intangible assets, net - Sche_4
Intangible assets, net - Schedule of Weighted Average Amortization Periods of Intangible Assets (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total weighted average amortization periods | 10 years | 10 years |
Land use rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total weighted average amortization periods | 30 years | 30 years |
Acquired computer software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total weighted average amortization periods | 5 years | 5 years |
Audio-visual license | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total weighted average amortization periods | 9 years | 9 years |
Goodwill (Details)
Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | $ 22,607,000 | $ 20,382,000 | |
Addition (note) | 815,000 | ||
Foreign currency translation adjustment | 529,000 | 1,410,000 | |
Goodwill, Ending Balance | 23,136,000 | 22,607,000 | $ 20,382,000 |
Impairment loss | $ 0 | $ 0 | $ 0 |
Contract liabilities and defe_3
Contract liabilities and deferred income - Schedule of Contract liabilities and deferred income (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Contract Liabilities And Deferred Income [Line Items] | |||
Total | $ 32,611,000 | $ 30,189,000 | |
Total | 37,737,000 | 34,960,000 | |
Less: non-current portion | [1] | (845,000) | (920,000) |
Contract liabilities and deferred income, current portion | 36,892,000 | 34,040,000 | |
Membership subscription | |||
Contract Liabilities And Deferred Income [Line Items] | |||
Total | [2] | 35,490,000 | 31,981,000 |
Less: non-current portion | (845,000) | (751,000) | |
Government grants | |||
Contract Liabilities And Deferred Income [Line Items] | |||
Total | 172,000 | 466,000 | |
Less: non-current portion | 0 | (169,000) | |
Others | |||
Contract Liabilities And Deferred Income [Line Items] | |||
Total | [2] | $ 2,075,000 | $ 2,513,000 |
[1] | As of December 31, 2020 and 2021, the non-current portion consists of membership subscription of USD751,000 and USD845,000, and government grants of USD169,000 and nil, respectively. | ||
[2] | Contract liabilities were related to unsatisfied performance obligations at the end of the year. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following period. The amount of revenue recognized that was included in contract liabilities balance at the beginning of the year was USD 30,189,000 and USD 32,611,000 for the years ended December 31, 2020 and 2021, respectively |
Contract liabilities and defe_4
Contract liabilities and deferred income - Schedule of Contract liabilities and deferred income (Parenthetical) (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Contract Liabilities And Deferred Income [Line Items] | |||
Contract Liabilities | $ 32,611,000 | $ 30,189,000 | |
Deferred revenue and income, non-current | [1] | 845,000 | 920,000 |
Membership subscription | |||
Contract Liabilities And Deferred Income [Line Items] | |||
Contract Liabilities | [2] | 35,490,000 | 31,981,000 |
Deferred revenue and income, non-current | 845,000 | 751,000 | |
Government grants | |||
Contract Liabilities And Deferred Income [Line Items] | |||
Deferred revenue and income, non-current | $ 0 | $ 169,000 | |
[1] | As of December 31, 2020 and 2021, the non-current portion consists of membership subscription of USD751,000 and USD845,000, and government grants of USD169,000 and nil, respectively. | ||
[2] | Contract liabilities were related to unsatisfied performance obligations at the end of the year. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following period. The amount of revenue recognized that was included in contract liabilities balance at the beginning of the year was USD 30,189,000 and USD 32,611,000 for the years ended December 31, 2020 and 2021, respectively |
Accrued liabilities and other_3
Accrued liabilities and other payables - Schedule of Accrued Liabilities and Other Payables (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued liabilities and other payables | ||
Payroll and welfare | $ 18,618 | $ 12,871 |
Tax levies | 2,397 | 3,394 |
Payables related to Kankan | 2,642 | 2,581 |
Payables for advertisement | 3,821 | 1,895 |
Legal and litigation related expenses (note 27) | 973 | 1,640 |
Professional service fees | 2,175 | 2,106 |
Agency commissions and rebates-online advertising | 2,759 | 2,696 |
Payables for construction in progress | 9,750 | 5,291 |
Tax surcharges | 1,095 | |
Others | 6,422 | 5,120 |
Total | $ 49,557 | $ 38,689 |
Bank borrowings (Details)
Bank borrowings (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Bank borrowings, current portion | $ 2,876,000 | ||
Bank borrowings, non-current portion | 17,291,000 | $ 19,924,000 | |
Total | 20,167,000 | 19,924,000 | |
Net interest expense capitalized | $ 1,000,000 | $ 890,000 | $ 470,000 |
Minimum | Loan Prime Rate | |||
Debt Instrument [Line Items] | |||
Spread on variable basis rate | 15.00% |
Bank borrowings - Maturity of b
Bank borrowings - Maturity of bank borrowings (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Maturity of bank borrowings | |
Within 1 year | $ 2,876 |
Between 1 to 2 years | 3,207 |
Between 2 to 3 years | 2,613 |
Between 3 to 4 years | 2,128 |
Between 4 to 5 years | 1,733 |
Beyond 5 years | $ 7,610 |
Common shares - Additional Info
Common shares - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2021Vote$ / sharesshares | Dec. 31, 2020shares | |
Common shares | ||
Common stock, shares authorized | 1,000,000,000 | |
Common stock, par value | $ / shares | $ 0.00025 | |
Number of votes per common share | Vote | 1 | |
Common stock, shares outstanding | 337,257,946 | 334,401,981 |
Repurchase of shares - Summary
Repurchase of shares - Summary of the Shares Repurchased by the Company (Detail) - Share Buyback Program [Member] - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Aug. 18, 2020 | Jul. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Share repurchase authorized amount | $ 20,000,000 | |||||
Total number of ADS Purchased | 334,245 | 857,147 | 0 | 1,191,392 | 0 | |
ADS repurchased | $ 4,475,000 | |||||
Average price paid per share | $ 3.86 | $ 3.72 |
Share-based compensation - 2010
Share-based compensation - 2010 Plan (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2010 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 31, 2015 | Nov. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common shares reserved for future issuance | 10,991,120 | 10,000,000 | ||||
Minimum | Share options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 7 years | |||||
Maximum [Member] | Share options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 10 years | |||||
2010 share incentive plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation costs on restricted shares | $ 18,147,328 | |||||
2010 share incentive plan [Member] | Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 32 months | |||||
2010 share incentive plan [Member] | Share options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation costs on share options | $ 0 | $ 0 | ||||
2010 share incentive plan [Member] | Restricted shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted | 800,000 | |||||
Number of restricted share vested | 400,000 | 965,500 | 1,296,540 | |||
Unrecognized compensation costs on restricted shares | $ 1,031,340 | $ 2,000,000 | ||||
2010 share incentive plan [Member] | Restricted shares [Member] | Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted shares expected to vest | 10,770,520 | 10,770,520 | ||||
2010 share incentive plan [Member] | Restricted shares [Member] | Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted shares expected to vest | 330,000 | |||||
2010 share incentive plan [Member] | Restricted shares [Member] | Tranche Three [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted shares expected to vest | 320,000 | |||||
2010 share incentive plan [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant | 26,822,828 |
Share-based compensation - 2013
Share-based compensation - 2013 Plan (Detail) - 2013 Plan [Member] - Restricted shares [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | 9,073,732 | ||
Unrecognized compensation costs on restricted shares | $ 0 | $ 0 | |
Number of restricted share vested | 27,475 |
Share-based compensation - 2014
Share-based compensation - 2014 Plan (Detail) - 2014 Plan [Member] - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2014 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | 0 | |||
Leading Advice Holdings Limited [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 14,195,412 | |||
Restricted shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted share vested | 26,000 | 228,200 | 1,318,450 | |
Unrecognized compensation costs on restricted shares | $ 0 | $ 12 | ||
Restricted shares [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | 14,195,412 |
Share-based compensation - Summ
Share-based compensation - Summary of Stock Option Activity (Detail) - Share options - 2010 share incentive plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | |
Number of share options | ||||
Outstanding at beginning of period | 10,000 | 16,500 | ||
Vested and expected to vest | 10,000 | 16,500 | ||
Exercisable | 10,000 | 16,500 | ||
Expired | (10,000) | (6,500) | ||
Outstanding at end of period | 10,000 | 16,500 | ||
Weighted average exercise price (USD) | ||||
Outstanding at beginning of period | $ 3.97 | $ 3.97 | ||
Vested and expected to vest | 3.97 | $ 3.97 | ||
Exercisable | 3.97 | 3.97 | ||
Expired | 3.97 | |||
Outstanding at end of period | 3.97 | 3.97 | ||
Weighted average grant-date fair value (USD) | ||||
Vested and expected to vest | 1.01 | 1.56 | ||
Exercisable | $ 1.01 | $ 1.56 | ||
Share option activity - additional disclosures | ||||
Weighted-average remaining contractual life, vested and expected to vest | 1 year 1 month 28 days | 1 year 4 months 13 days | ||
Weighted-average remaining contractual life, exercisable | 1 year 1 month 28 days | 1 year 4 months 13 days | ||
Weighted-average remaining contractual life, outstanding | 1 year 1 month 28 days | 1 year 4 months 13 days | ||
Aggregate intrinsic value, vested and expected to vest | $ 0 | $ 0 | $ 0 | $ 0 |
Aggregate intrinsic value, exercisable | 0 | 0 | ||
Aggregate intrinsic value, outstanding | $ 0 | $ 0 | $ 0 |
Share-based compensation - Su_2
Share-based compensation - Summary of Restricted Shares Activities (Detail) - Restricted shares [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
2010 share incentive plan [Member] | ||||
Number of restricted shares | ||||
Unvested at beginning of period | 1,260,000 | 5,184,500 | 6,652,040 | |
Granted | 800,000 | |||
Vested | (400,000) | (965,500) | (1,296,540) | |
Forfeited | (210,000) | (2,959,000) | (971,000) | |
Unvested at end of period | 650,000 | 1,260,000 | 5,184,500 | 6,652,040 |
Vested and expected to vest | 552,500 | 1,071,000 | 4,406,825 | 5,654,234 |
Weighted-Average Grant-Date Fair Value | ||||
Weighted-Average Grant Date Fair Value, Granted | $ 0.81 | |||
2013 Plan [Member] | ||||
Number of restricted shares | ||||
Unvested at beginning of period | 34,175 | |||
Vested | (27,475) | |||
Forfeited | (6,700) | |||
Unvested at end of period | 34,175 | |||
2014 Plan [Member] | ||||
Number of restricted shares | ||||
Unvested at beginning of period | 26,000 | 1,321,200 | 3,476,650 | |
Vested | (26,000) | (228,200) | (1,318,450) | |
Forfeited | (1,067,000) | (837,000) | ||
Unvested at end of period | 26,000 | 26,000 | 1,321,200 | 3,476,650 |
Vested and expected to vest | 22,100 | 1,123,020 | ||
2020 Incentive Plan | ||||
Number of restricted shares | ||||
Granted | 31,091,840 | |||
Vested | (2,429,965) | |||
Forfeited | (2,777,500) | |||
Unvested at end of period | 25,884,375 | |||
Vested and expected to vest | 19,413,281 | |||
Weighted-Average Grant-Date Fair Value | ||||
Weighted-Average Grant Date Fair Value, Granted | $ 0.83 |
Share-based compensation - 2020
Share-based compensation - 2020 Plan (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 31, 2015 | Nov. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common shares reserved for future issuance | 10,991,120 | 10,000,000 | ||||
Number of shares repurchased under repurchase programs | 9,667,230 | |||||
Tranche One [Member] | Restricted Shares With 2 Years Vesting Period [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted shares expected to vest | 15,059,340 | |||||
2010 share incentive plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation costs on restricted shares | $ 18,147,328 | |||||
2010 share incentive plan [Member] | Restricted shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 800,000 | |||||
Number of restricted share vested | 400,000 | 965,500 | 1,296,540 | |||
Unrecognized compensation costs on restricted shares | $ 1,031,340 | $ 2,000,000 | ||||
2010 share incentive plan [Member] | Tranche Two [Member] | Restricted shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted shares expected to vest | 330,000 | |||||
2010 share incentive plan [Member] | Tranche Three [Member] | Restricted shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted shares expected to vest | 320,000 | |||||
2010 share incentive plan [Member] | Certain Officers and Employees [Member] | Restricted shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Future forfeitures rate | 15.00% | |||||
Existing Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common shares reserved for future issuance | 21,039,742 | |||||
2020 Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant | 31,000,000 | 2,685,660 | ||||
Common shares reserved for future issuance | 293,028 | |||||
Future forfeitures rate | 25.00% | |||||
Unrecognized compensation costs on restricted shares | $ 0 | |||||
2020 Incentive Plan | Restricted shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 31,091,840 | |||||
Number of restricted share vested | 2,429,965 | |||||
2020 Incentive Plan | Tranche Two [Member] | Restricted Shares With 2 Years Vesting Period [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | |||||
2020 Incentive Plan | Tranche Two [Member] | Restricted Shares With 3 Years Vesting Period [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of restricted share vested | 30,000 | |||||
Restricted shares expected to vest | 90,000 | |||||
2020 Incentive Plan | Tranche Three [Member] | Restricted Shares With 3 Years Vesting Period [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
2020 Incentive Plan | Tranche Three [Member] | Restricted Shares With 3 Years Vesting Period And Vesting On Second and Third Anniversary [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of restricted share vested | 2,299,965 | |||||
Restricted shares expected to vest | 12,665,000 | |||||
2020 Incentive Plan | Tranche Four [Member] | Restricted Shares With 3 Years Vesting Period And Vesting On Second and Third Anniversary [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
2020 Incentive Plan | Tranche Five [Member] | Restricted Shares With 5 Years Vesting Period [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of restricted share vested | 100,000 | |||||
Restricted shares expected to vest | 500,000 | |||||
Vesting period | 5 years |
Share-based compensation - Sche
Share-based compensation - Schedule of Recognized Compensation Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation costs | $ 6,170 | $ 2,310 | $ 5,428 |
Sales and marketing expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation costs | 59 | 185 | 381 |
General and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation costs | 4,682 | 1,209 | 2,453 |
Research and development expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation costs | $ 1,429 | $ 916 | $ 2,594 |
Costs of revenues - Schedule of
Costs of revenues - Schedule of cost of revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Contract Liabilities And Deferred Income [Line Items] | |||
Total | $ 118,603 | $ 92,637 | $ 99,913 |
Bandwidth costs [Member] | |||
Contract Liabilities And Deferred Income [Line Items] | |||
Total | 80,720 | 62,384 | 57,093 |
Cost of inventories sold [Member] | |||
Contract Liabilities And Deferred Income [Line Items] | |||
Total | 1,516 | 1,660 | 7,181 |
Revenue-sharing from live streaming business | |||
Contract Liabilities And Deferred Income [Line Items] | |||
Total | 26,506 | 15,640 | 20,734 |
Depreciation of servers and other equipment [Member] | |||
Contract Liabilities And Deferred Income [Line Items] | |||
Total | 4,805 | 6,247 | 5,198 |
Payment handling fees [Member] | |||
Contract Liabilities And Deferred Income [Line Items] | |||
Total | 3,066 | 1,459 | 1,658 |
Other costs (note) [Member] | |||
Contract Liabilities And Deferred Income [Line Items] | |||
Total | $ 1,990 | $ 5,247 | $ 8,049 |
Other income, net - Schedule of
Other income, net - Schedule of Other income, net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Government subsidy income | $ 3,206 | $ 2,287 | $ 2,061 |
Net unrealized gains arising from long-term investments | 794 | 10,907 | |
Impairment of long-term investments | (794) | (19,831) | |
Exchange loss, net | (1,205) | (2,948) | (402) |
Settlement income | 1,531 | ||
VAT deduction | 818 | 1,361 | 427 |
Others | (669) | 880 | (61) |
Total | 4,678 | 4,737 | 5,861 |
Linktoken program [Member] | |||
Gains from disposal of LinkToken program | 6,630 | ||
Short-term Investments [Member] | |||
Investment income | $ 2,486 | $ 2,943 | $ 4,020 |
Taxation - Schedule of Current
Taxation - Schedule of Current and Deferred Portions of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Taxation | |||
Current income tax (benefits)/expenses | $ 53 | $ 183 | $ 315 |
Deferred income tax expenses | (178) | 966 | 4,361 |
Income tax (benefits)/expenses | $ (125) | $ 1,149 | $ 4,676 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Taxation | |||
Aggregate dollar effect (In thousands) | $ (4,100) | $ (197) | $ (3,856) |
Per share effect-basic | $ 0.01 | $ 0 | $ (0.01) |
Per share effect-diluted | $ 0.01 | $ 0 | $ (0.01) |
Taxation - Reconciliation of To
Taxation - Reconciliation of Total Tax (Benefits) Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Continuing operations | |||
Income tax (benefits)/expenses at PRC statutory rate (based on statutory tax rate applicable to enterprises in China) | $ 246 | $ (3,736) | $ (11,886) |
Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC | 2,571 | 787 | 788 |
Non-deductible expenses | 47 | 101 | 228 |
Effect of Super Deduction | (2,262) | (733) | (1,920) |
Effect of tax holidays and tax concessions | (4,100) | (197) | 3,856 |
Change in valuation allowance of deferred tax assets | 3,507 | 4,704 | 13,180 |
Expiration of tax loss | 84 | 400 | |
Others | (134) | 139 | 30 |
Income tax (benefits)/expenses | $ (125) | $ 1,149 | $ 4,676 |
Taxation - Summary of Changes i
Taxation - Summary of Changes in Deferred Tax Asset and Liability Balances (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred tax assets: | ||||||
Net operating losses carried forward (note a) | [1] | $ 39,188,000 | $ 32,458,000 | |||
Impairment of long-term equity investment | 4,245,000 | 4,233,000 | ||||
Impairment of other receivables | 1,536,000 | 1,858,000 | ||||
Impairment of accounts receivable | 402,000 | 1,451,000 | ||||
Impairment of inventories | 70,000 | 540,000 | ||||
Allowance for advance to suppliers | 137,000 | 369,000 | ||||
Impairment of property and equipment | 2,000 | 15,000 | ||||
Valuation allowance | (45,580,000) | (40,924,000) | $ (34,257,000) | $ (34,257,000) | $ (20,181,000) | |
Total deferred tax assets, net | [2] | 0 | 0 | |||
Deferred tax liabilities: | ||||||
Deferred credit arising from an asset acquisition | (930,000) | $ (1,085,000) | ||||
Accumulated net operating loss which can be carried forward indefinitely | 5,875,000 | |||||
Accumulated net operating loss which can be carried forward and will expire during the period from 2021 to 2030 | $ 221,906,000 | |||||
[1] | As of December 31, 2021, the accumulated net operating loss of USD 5,875,000 of the Group’s subsidiaries incorporated in Hong Kong can be carried forward indefinitely to offset future taxable income, the remaining accumulated net operating loss of USD 221,906,000 mainly arose from the Company’s subsidiaries, VIE and VIE’s subsidiaries established in the PRC, which can be carried forward to offset future taxable income and will expire during the period from 2022 to 2030. | |||||
[2] | As of December 31, 2020 and 2021, the deferred tax liabilities balances are expected to be recoverable as follows: |
Taxation - Deferred Tax Assets
Taxation - Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Tax Assets, Net [Abstract] | |||
Total deferred tax assets, net | [1] | $ 0 | $ 0 |
Deferred Tax Liabilities, Net [Abstract] | |||
Within one year | 180 | 176 | |
After one year | 750 | 909 | |
Total deferred tax liabilities | $ 930 | $ 1,085 | |
[1] | As of December 31, 2020 and 2021, the deferred tax liabilities balances are expected to be recoverable as follows: |
Taxation - Schedule of Movement
Taxation - Schedule of Movement of Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Taxation | |||
Beginning balance | $ 40,924 | $ 34,257 | $ 34,257 |
Additions | (3,507) | (4,704) | (13,180) |
Exchange difference | (1,149) | (1,963) | (896) |
Ending balance | $ 45,580 | $ 40,924 | $ 34,257 |
Taxation - Additional Informati
Taxation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Giganology Shenzhen and Xunlei Computer [Member] | ||||
Income Tax [Line Items] | ||||
Withholding taxes on dividends paid | $ 10 | |||
PRC Enterprise [Member] | ||||
Income Tax [Line Items] | ||||
Effective income tax rate | 25.00% | |||
Jiangxi Node | ||||
Income Tax [Line Items] | ||||
Preferential tax rate (as a percent) | 15.00% | 15.00% | 15.00% | |
Qianhai Shenzhen Hongkong Modern Service Industry Cooperation Zoon | ||||
Income Tax [Line Items] | ||||
Preferential tax rate (as a percent) | 15.00% | 15.00% | 15.00% | |
High And New Technology Enterprises [Member] | Shenzhen Xunlei, Onething, Wangwenhua and Xunlei Computer | ||||
Income Tax [Line Items] | ||||
Preferential tax rate (as a percent) | 15.00% | 15.00% | 15.00% | |
State Administration of Taxation, China [Member] | Research And Development Enterprise Activities [Member] | Shenzhen Xunlei [Member] | ||||
Income Tax [Line Items] | ||||
Portion of research and development expenses incurred that are allowable as tax deductible expenses (as a percent) | 175.00% | |||
Domestic Tax Authority [Member] | ||||
Income Tax [Line Items] | ||||
Withholding tax rate on foreign enterprises | 10.00% | |||
Withholding tax accrued or required to be accrued | $ 0 | $ 0 | $ 0 | |
Domestic Tax Authority [Member] | High And New Technology Enterprises [Member] | PRC Enterprise [Member] | ||||
Income Tax [Line Items] | ||||
Preferential tax rate (as a percent) | 15.00% | |||
Domestic Tax Authority [Member] | Software Enterprise [Member] | PRC Enterprise [Member] | ||||
Income Tax [Line Items] | ||||
Period of full exemption from income tax | 2 years | |||
Period of 50% reduction to income tax rate | 3 years | |||
Domestic Tax Authority [Member] | National Key Software Enterprise [Member] | PRC Enterprise [Member] | ||||
Income Tax [Line Items] | ||||
Preferential tax rate (as a percent) | 10.00% | |||
Foreign Tax Authority [Member] | British Virgin Islands | ||||
Income Tax [Line Items] | ||||
Withholding taxes on dividends paid | $ 0 | |||
Foreign Tax Authority [Member] | Hong Kong Subsidiaries | ||||
Income Tax [Line Items] | ||||
Income tax rate | 16.50% | |||
Foreign Tax Authority [Member] | Singapore Subsidiaries | ||||
Income Tax [Line Items] | ||||
Income tax rate | 17.00% | |||
Foreign Tax Authority [Member] | Cayman Islands Tax Information Authority [Member] | ||||
Income Tax [Line Items] | ||||
Withholding taxes on dividends paid | $ 0 |
Basic and diluted net (loss) _3
Basic and diluted net (loss) income per share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net (loss)/income | $ 1,108 | $ (14,140) | $ (53,415) |
Less: net loss attributable to the non-controlling interests | (83) | (300) | (246) |
Net (loss)/income attributable to Xunlei Limited | 1,191 | (13,840) | (53,169) |
Numerator of basic net (loss)/income per share | 1,191 | (13,840) | (53,169) |
Numerator of diluted net (loss)/income per share | $ 1,191 | $ (13,840) | $ (53,169) |
Denominator: | |||
Denominator for basic net (loss)/income per share weighted average shares outstanding | 334,707,559 | 337,429,601 | 337,845,675 |
Denominator for diluted net (loss)/income per share | 335,969,780 | 337,429,601 | 337,845,675 |
Basic net( loss)/ income per share | $ 0.0036 | $ (0.0410) | $ (0.1574) |
Diluted net (loss)/income per share | $ 0.0035 | $ (0.0410) | $ (0.1574) |
Related party transactions - Ad
Related party transactions - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2014 | Dec. 31, 2021 | |
Schedule of Other Related Party Transactions [Line Items] | ||||
Repayment of loans to related party | $ 662,000 | |||
Treasury stock [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Interest on withheld tax price | 5.00% | |||
Aiden & Jasmine Limited | Treasury stock [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Shares repurchased | 3,860,733 | |||
Shares repurchased, value | $ 10,879,000 | |||
Interest on withheld tax | 363,000 | |||
Withholding Tax Payable Non-current | $ 1,451,000 | |||
Vantage Point Global Limited | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Interest on withheld tax | $ 55,000 | |||
Repayment of loans to related party | $ 3,883,000 | |||
Vantage Point Global Limited | Treasury stock [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Shares repurchased | 10,334,679 | |||
Shares repurchased, value | $ 29,121,000 | |||
Interest on withheld tax | 971,000 | |||
Withholding Tax Payable Non-current | $ 3,883,000 |
Related party transactions - Sc
Related party transactions - Schedule of Relationship Between Related Parties with their Groups (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2021 | |
Chuan Wang | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | Chairman and director of the Company (note i) | |
Shenglong Zou | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | Co-founder, director and shareholder of the Company | |
Weimin Luo | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | Director and Chief Operating Officer of the Company (note i) | |
Shenzhen Crystal Technology Co., Ltd. | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | Company owned by a co-founder and director of the Company | |
Vantage Point Global Limited | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | Shareholder of the Company | |
Aiden & Jasmine Limited | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | Shareholder of the Company | |
Millet Technology Co., Ltd. [Member] | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | (note ii) | |
Millet Communication Technology Co., Ltd. [Member] | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | (note ii) | |
Beijing Xiaomi Mobile Software Co., Ltd. ("Beijing Xiaomi Mobile Software") [Member] | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | (note ii) | |
Beijing Millet Payment Technologies Co., Ltd. ("Beijing Millet Payment Technologies") [Member] | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | (note ii) | |
Guangzhou Millet Information Service Co Ltd [Member] | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | (note ii) | |
Shenzhen Xiaomi Technology Co., Ltd. | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | (note ii) | |
Beijing Itui | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | Company owned by the principal shareholder of the Company (note iii) | |
Itui Online | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | Company owned by the principal shareholder of the Company (note iii) | |
Chizz | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Related parties relationship | Company owned by the principal shareholder of the Company (note iii) | |
Loan amount provided by Xunlei Network to Chizz | $ 20 | |
Interest rate | 3.00% | |
Debt Instrument, Term | 2 years |
Related party transactions - _2
Related party transactions - Schedule of Significant Related Party Transactions (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Schedule of Other Related Party Transactions [Line Items] | |||||
Repayment of loans to related party | $ 662,000 | ||||
Beijing Xiaomi Mobile Software Co., Ltd. [Member] | Bandwidth | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Revenue from related party | $ 1,815,000 | ||||
Xiaomi Technology | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Forum service fees | 13,000 | ||||
Xiaomi Technology | Bandwidth | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Revenue from related party | $ 2,798,000 | 2,211,000 | 875,000 | ||
Guangzhou Millet | Technology Service [Member] | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Revenue from related party | [1] | 1,245,000 | 2,466,000 | 2,460,000 | |
Guangzhou Millet | Advertising | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Revenue from related party | 19,000 | ||||
Vantage Point Global Limited | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Interest accrued | 243,000 | 46,000 | |||
Repayment of loans to related party | $ 3,883,000 | ||||
Aiden & Jasmine Limited | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Interest accrued | 55,000 | 91,000 | $ 17,000 | ||
Itui Online | Advertising | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Revenue from related party | [2] | 11,648,000 | 7,269,000 | ||
Itui Online | Bandwidth | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Revenue from related party | 821,000 | 1,119,000 | |||
Shenzhen Xiaomi Technology Co., Ltd. | Technology Service [Member] | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Revenue from related party | 1,392,000 | ||||
Shenzhen Xiaomi Technology Co., Ltd. | Advertising | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Revenue from related party | [2] | 380,000 | 53,000 | ||
Weimin Luo | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Repayment of loans to related party | 662,000 | ||||
Quanxun Huiju [Member] | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Bandwidth cost from Quanxun Huiju (note g) | 730,000 | $ 594,000 | |||
Chizz | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Interest income from Chizz (note f) | $ 176,000 | ||||
[1] | In 2014, the Group repurchased 3,860,733 common shares from Aiden & Jasmine Limited (Co founder’s company) for USD10,879,000 and 10,334,679 common shares from Vantage Point Global Limited for USD29,121,000. 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 Seller has 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 Seller the Withheld Price with a simple interest thereon at the rate of five percent (5%) per annum from the Closing Date. Therefore, the Withheld Price for Aiden & Jasmine Limited and Vantage Point Global Limited was USD1,451,000 (including interest of USD363,000) and USD3,883,000 (including interest of USD971,000) respectively. The Group has repaid USD3,883,000 to Vantage Point Global Limited in January 2021. | ||||
[2] | In July 2020, Onething entered into the contract with Quanxun Huiju, for the provision of bandwidth to Onething at a price benchmarking against market price, based on actual usage. The contract was extended for one year from July 2021 to June 2022 based on the same term. |
Related party transactions - _3
Related party transactions - Schedule of Amount Due to from Related Party (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Due from Related Parties, Current [Abstract] | ||
Accounts payable to related party | $ 1,597 | $ 5,389 |
Accounts and other receivable from related party | 15,578 | 10,970 |
Guangzhou Millet | ||
Due from Related Parties, Current [Abstract] | ||
Accounts and other receivable from related party | 1,456 | |
Xiaomi Technology | ||
Due from Related Parties, Current [Abstract] | ||
Accounts and other receivable from related party | 831 | 576 |
Due from Other Related Parties, Current | 16 | 15 |
Itui Online | ||
Due from Related Parties, Current [Abstract] | ||
Accounts and other receivable from related party | 12,156 | 7,689 |
Beijing Itui | ||
Due from Related Parties, Current [Abstract] | ||
Accounts and other receivable from related party | 857 | 1,153 |
Shenzhen Xiaomi Technology Co., Ltd. | ||
Due from Related Parties, Current [Abstract] | ||
Accounts and other receivable from related party | 1,520 | 60 |
Shenzhen Crystal Technology Co., Ltd. | ||
Due from Related Parties, Current [Abstract] | ||
Due from Other Related Parties, Current | 7 | 6 |
Shenglong Zou | ||
Due from Related Parties, Current [Abstract] | ||
Due from Other Related Parties, Current | 9 | 9 |
Chuan Wang | ||
Due from Related Parties, Current [Abstract] | ||
Due from Other Related Parties, Current | 6 | 6 |
Vantage Point Global Limited | ||
Due from Related Parties, Current [Abstract] | ||
Due to Other Related Parties, Current | 0 | 3,883 |
Aiden & Jasmine Limited | ||
Due from Related Parties, Current [Abstract] | ||
Due to Other Related Parties, Current | 1,506 | 1,451 |
Chizz | ||
Due from Related Parties, Current [Abstract] | ||
Due from Other Related Parties, Current | 176 | |
Due from Related Parties, Noncurrent [Abstract] | ||
Other receivable due from related party | 19,311 | |
Quanxun Huiju [Member] | ||
Due from Related Parties, Current [Abstract] | ||
Accounts payable to related party | $ 91 | $ 55 |
Fair value measurements - Sched
Fair value measurements - Schedule of financial instruments measured at fair value (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total | $ 53,273 | $ 48,993 |
Investments in financial instruments [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Investments in structured deposits and wealth management products | 53,273 | 48,993 |
Significant other observable inputs (Level 2) [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Total | 53,273 | 48,993 |
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] | ||
Investments in structured deposits and wealth management products | $ 53,273 | $ 48,993 |
Commitments and contingencies -
Commitments and contingencies - Additional Information (Detail) ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2018case | Dec. 31, 2021USD ($)case | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Apr. 22, 2020USD ($) | |
Loss Contingencies [Line Items] | |||||||
Legal and litigation related expenses | $ 997,000 | $ 1,955,000 | |||||
Legal expense reversed | $ 1,217,000 | ||||||
Number of lawsuits pending | case | 17 | ||||||
Legal and litigation related expenses | $ 973,000 | 1,640,000 | |||||
Putative Shareholder Class Action [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Claims filed during the period | case | 2 | ||||||
Pending Litigation [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of lawsuits pending | case | 17 | ||||||
Aggregate amount of claimed damages | $ 1,700,000 | ¥ 10.9 | 1,900,000 | ¥ 13.3 | |||
Legal and litigation related expenses | $ 973,000 | $ 1,640,000 | |||||
Pending Litigation [Member] | Copyright Infringement [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of lawsuits pending | 9 |
Commitments and contingencies_2
Commitments and contingencies - Future Minimum Payments under Non-Cancellable Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leased Assets [Line Items] | ||
2022 | $ 19 | $ 28 |
Bandwidth Purchase Commitments [Member] | ||
Operating Leased Assets [Line Items] | ||
2022 | $ 4,410 |
Commitments and contingencies_3
Commitments and contingencies - Capital commitments (Details) | Dec. 31, 2021USD ($) |
Commitments and contingencies | |
2022 | $ 17,993,000 |
2023 and after | 298,000 |
Unrecorded Unconditional Purchase Obligation | $ 18,291,000 |
Certain risks and concentrati_3
Certain risks and concentration - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2021USD ($)customer | Dec. 31, 2020USD ($) | Dec. 31, 2019 | |
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 | $ (180,645,000) | $ (181,095,000) | |
Number of top customers accounted for net revenues | customer | 10 | ||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | $ 169,235,000 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Concentration Risk [Line Items] | |||
Accounts payable, consolidated variable interest entities and VIE's subsidiaries without recourse | 23,789,000 | 20,588,000 | |
Accrued liabilities and other payables, consolidated variable interest entities and VIE's subsidiaries without recourse | $ 42,449,000 | $ 33,361,000 | |
Shenzhen Xunlei | |||
Concentration Risk [Line Items] | |||
Term of operating contract | 10 years | ||
Sales Revenue, Net [Member] | Customer concentration risk [Member] | Top 10 customers | |||
Concentration Risk [Line Items] | |||
Percentage of net revenues accounted from customers | 35.00% | 38.00% | 31.00% |
Certain risks and concentrati_4
Certain risks and concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Balance sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current assets: | |||||
Cash and cash equivalents | $ 123,358 | $ 137,248 | $ 162,465 | $ 122,930 | |
Short-term investments | 115,652 | 117,821 | |||
Accounts receivable, net | 26,135 | 22,983 | |||
Due from related parties | 15,578 | 10,970 | |||
Inventories | 1,363 | 1,726 | |||
Prepayments and other current assets | 11,842 | 11,534 | |||
Total current assets | 293,928 | 302,282 | |||
Non-current assets: | |||||
Long-term investments | 31,495 | 26,734 | |||
Property and equipment, net | 57,657 | 50,725 | |||
Intangible assets, net | 8,299 | 8,857 | |||
Goodwill | 23,136 | 22,607 | 20,382 | ||
Long-term prepayments and other assets | 2,787 | 905 | |||
Right-of-use assets | 27 | 1,954 | $ 8,747 | ||
Restricted cash | 4,078 | 1,541 | |||
Total assets | 440,718 | 415,605 | |||
Current liabilities: | |||||
Accounts payable | 26,407 | 20,644 | |||
Due to related parties | 1,597 | 5,389 | |||
Bank borrowings | 2,876 | ||||
Contract liabilities and deferred income | 36,892 | 34,040 | |||
Accrued liabilities and other payables | 49,557 | 38,689 | |||
Lease liabilities, current portion | 18 | 1,961 | |||
Total current liabilities | 119,878 | 103,276 | |||
Non-current liabilities: | |||||
Contract liabilities and deferred income, non-current portion | [1] | 845 | 920 | ||
Deferred tax liabilities | 930 | 1,085 | |||
Bank borrowings, non-current portion | 17,291 | 19,924 | |||
Lease liabilities, non-current portion | 7 | 27 | |||
Total liabilities | 138,951 | 125,232 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 16,645 | 14,284 | |||
Short-term investments | 6,373 | ||||
Accounts receivable, net | 26,003 | 22,983 | |||
Amount due from group companies | 3,102 | 15,168 | |||
Due from related parties | 15,387 | 10,955 | |||
Inventories | 1,363 | 1,726 | |||
Prepayments and other current assets | 7,142 | 10,046 | |||
Total current assets | 76,015 | 75,162 | |||
Non-current assets: | |||||
Long-term investments | 6,467 | 5,706 | |||
Property and equipment, net | 57,417 | 50,532 | |||
Intangible assets, net | 8,299 | 8,857 | |||
Goodwill | 23,136 | 22,607 | |||
Long-term prepayments and other assets | 2,684 | 905 | |||
Right-of-use assets | 27 | 1,915 | |||
Restricted cash | 4,078 | 1,541 | |||
Total assets | 178,123 | 167,225 | |||
Current liabilities: | |||||
Accounts payable | 23,789 | 20,588 | |||
Amount due to group companies | 146,732 | 106,240 | |||
Due to related parties | 91 | 55 | |||
Bank borrowings | 2,876 | ||||
Contract liabilities and deferred income | 36,740 | 34,040 | |||
Income tax payable | 2,451 | 2,500 | |||
Accrued liabilities and other payables | 42,449 | 33,361 | |||
Lease liabilities, current portion | 18 | 1,912 | |||
Total current liabilities | 255,146 | 198,696 | |||
Non-current liabilities: | |||||
Contract liabilities and deferred income, non-current portion | 845 | 920 | |||
Deferred tax liabilities | 930 | 1,085 | |||
Amount due to group companies, non-current portion | 31,369 | 76,810 | |||
Bank borrowings, non-current portion | 17,291 | 19,924 | |||
Lease liabilities, non-current portion | 7 | 27 | |||
Total liabilities | $ 305,588 | $ 297,462 | |||
[1] | As of December 31, 2020 and 2021, the non-current portion consists of membership subscription of USD751,000 and USD845,000, and government grants of USD169,000 and nil, respectively. |
Certain risks and concentrati_5
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net revenues | $ 238,782 | $ 186,371 | $ 180,665 |
Cost of revenues | (118,603) | (92,637) | (99,913) |
Operating expenses | (124,502) | (112,527) | (137,174) |
Net (loss)/income attributable to Xunlei Limited | 1,191 | (13,840) | (53,169) |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Net (loss)/income attributable to Xunlei Limited | 2,913 | (10,673) | (56,328) |
Variable Interest Entity, Primary Beneficiary [Member] | Third-party | |||
Net revenues | 228,736 | 186,679 | 178,070 |
Cost of revenues | (109,722) | (92,388) | (99,781) |
Operating expenses | (110,367) | (101,421) | (117,714) |
Variable Interest Entity, Primary Beneficiary [Member] | Inter-company | |||
Operating expenses | $ (8,032) | $ (7,177) | $ (7,302) |
Certain risks and concentrati_6
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | $ (13,362) | $ (31,988) | $ 45,788 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Purchases of goods and services from group companies | (11,941) | ||
Other operating activities with external parties | 24,945 | (13,423) | (21,720) |
Net cash (used in)/generated from operating activities | 24,945 | (13,423) | (33,661) |
Loans to group companies | (6,329) | (3,369) | |
Repayment of loans from group companies | 502 | 485 | |
Other investing activities with external parties | (19,417) | (9,160) | (5,001) |
Net cash used in investing activities | (19,417) | (14,987) | (7,885) |
Loans from group companies | 23,527 | 2,542 | 31,467 |
Repayment of loans to group companies | (24,425) | (4,300) | (10,969) |
Other financing activities with external parties | (223) | 7,154 | 11,707 |
Net cash generated from/(used in) financing activities | (1,121) | 5,396 | 32,205 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | $ 4,407 | $ (23,014) | $ (9,341) |
Certain risks and concentrati_7
Certain risks and concentration - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase in net cash used in operating activities | $ 19,480 | $ (13,911) | $ (45,649) |
Increase in net cash used in investing activities | (32,619) | (20,756) | 79,260 |
Increase in net cash used in financing activities | $ (223) | 2,679 | 12,177 |
Adjustment | |||
Increase in net cash used in operating activities | 17,600 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Adjustment | |||
Decrease in current liabilities | 76,800 | ||
Increase in non-current liabilities | 76,800 | ||
Increase in net cash used in operating activities | 7,600 | ||
Increase in net cash used in investing activities | 5,800 | 2,900 | |
Increase in net cash used in financing activities | $ 1,800 | $ 20,500 |
Subsequent events (Details)
Subsequent events (Details) $ in Millions | Mar. 31, 2022USD ($) |
Subsequent event | |
Subsequent Event [Line Items] | |
Authorized amount of share buyback program | $ 20 |
Additional information_ conde_3
Additional information: condensed financial statements of the Company - Schedule of Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 123,358 | $ 137,248 | $ 162,465 | $ 122,930 |
Short-term investments | 115,652 | 117,821 | ||
Prepayments and other current assets | 11,842 | 11,534 | ||
Total current assets | 293,928 | 302,282 | ||
Non-current assets: | ||||
Total assets | 440,718 | 415,605 | ||
Current liabilities: | ||||
Accounts payable | 26,407 | 20,644 | ||
Due to related parties | 1,597 | 5,389 | ||
Contract liabilities and deferred income | 36,892 | 34,040 | ||
Bank borrowings (including bank borrowings of the consolidated VIE without recourse to the Company of nil and USD2,876 as of December 31, 2020 and 2021, respectively) | 2,876 | |||
Total current liabilities | 119,878 | 103,276 | ||
Total liabilities | 138,951 | 125,232 | ||
Commitments and contingencies | ||||
Shareholders' equity | ||||
Common shares | 84 | 84 | ||
Treasury shares (34,475,224 shares and 31,619,259 shares as of December 31, 2020 and 2021, respectively) | 8 | 8 | ||
Total Xunlei Limited's shareholders' equity | 303,647 | 292,154 | ||
Total liabilities and shareholders' equity | 440,718 | 415,605 | ||
Xunlei Limited [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 32,015 | 57,585 | ||
Short-term investments | 40,972 | 47,525 | ||
Due from group companies | 107,484 | 3,323 | ||
Prepayments and other current assets | 183 | 860 | ||
Total current assets | 180,654 | 109,293 | ||
Non-current assets: | ||||
Due from group companies, non-current portion | 92,917 | 175,720 | ||
Investments in subsidiaries and consolidated VIE | 36,324 | 20,064 | ||
Total assets | 309,895 | 305,077 | ||
Current liabilities: | ||||
Accounts payable | 55 | 55 | ||
Due to subsidiaries and consolidated VIE | 2,546 | 10,750 | ||
Due to related parties | 1,506 | |||
Contract liabilities and deferred income | 1 | |||
Accrued liabilities and other payables | 2,141 | 2,118 | ||
Total current liabilities | 6,248 | 12,924 | ||
Total liabilities | 6,248 | 12,924 | ||
Commitments and contingencies | ||||
Shareholders' equity | ||||
Common shares | 84 | 84 | ||
Treasury shares (34,475,224 shares and 31,619,259 shares as of December 31, 2020 and 2021, respectively) | 8 | 8 | ||
Other shareholders' equity | 303,555 | 292,061 | ||
Total Xunlei Limited's shareholders' equity | 303,647 | 292,153 | ||
Total liabilities and shareholders' equity | $ 309,895 | $ 305,077 |
Additional information_ conde_4
Additional information: condensed financial statements of the Company - Schedule of Condensed Balance Sheets (Parenthetical) (Detail) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheet Statements Captions [Line Items] | ||
Treasury stock, shares | 31,619,259 | 34,475,224 |
Xunlei Limited [Member] | ||
Consolidated Balance Sheet Statements Captions [Line Items] | ||
Treasury stock, shares | 31,619,259 | 34,475,224 |
Additional information_ conde_5
Additional information: condensed financial statements of the Company - Schedule of Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating expenses | |||
Sales and marketing expenses | $ (24,569) | $ (18,064) | $ (31,820) |
General and administrative expenses | (36,868) | (33,910) | (38,930) |
Total operating expenses | (124,502) | (112,527) | (137,174) |
Operating loss | (4,323) | (18,793) | (56,422) |
Interest income | 723 | 1,471 | 1,897 |
Interest expense | (95) | (406) | (75) |
Other income, net | 4,678 | 4,737 | 5,861 |
(Loss)/income before income tax | 983 | (12,991) | (48,739) |
Income tax expenses | 125 | (1,149) | (4,676) |
Net (loss)/income | 1,108 | (14,140) | (53,415) |
Net (loss)/income attributable to Xunlei Limited's common shareholders | 1,191 | (13,840) | (53,169) |
Xunlei Limited [Member] | |||
Operating expenses | |||
Sales and marketing expenses | 0 | 0 | (1) |
General and administrative expenses | (3,302) | (1,438) | (1,247) |
Total operating expenses | (3,302) | (1,438) | (1,248) |
Operating loss | (3,302) | (1,438) | (1,248) |
Interest income | 107 | 2 | 1,496 |
Interest expense | (95) | (399) | (75) |
Other income, net | 585 | 2,455 | 4,712 |
(Loss)/income from subsidiaries and consolidated VIE | 3,935 | (14,361) | (57,787) |
(Loss)/income before income tax | 1,230 | (13,741) | (52,902) |
Income tax expenses | (39) | (99) | (267) |
Net (loss)/income | 1,191 | (13,840) | (53,169) |
Net (loss)/income attributable to Xunlei Limited's common shareholders | $ 1,191 | $ (13,840) | $ (53,169) |
Additional information_ conde_6
Additional information: condensed financial statements of the Company - Schedule of Condensed Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from investing activities | |||
Repayment of loans from group companies | $ 177 | ||
Cash flows from financing activities | |||
Net increase/(decrease) in cash, cash equivalents and restricted cash | (13,362) | $ (31,988) | $ 45,788 |
Cash, cash equivalents and restricted cash at beginning of year | 138,789 | 165,448 | 122,930 |
Effect of exchange rates on cash and cash equivalents | 2,009 | 5,329 | (3,270) |
Cash, cash equivalents and restricted cash at end of year | 127,436 | 138,789 | 165,448 |
Xunlei Limited [Member] | |||
Cash flows from operating activities | |||
Other operating activities with external parties | (5,732) | 649 | 3,854 |
Net cash generated from/(used in) operating activities | (5,732) | 649 | 3,854 |
Cash flows from investing activities | |||
Capital contribution to group companies | (100,000) | ||
Loans to group companies | (26,391) | (1,802) | (25,750) |
Repayment of loans from group companies | 500 | 2,459 | |
Other investing activities with external parties | 6,553 | 55,030 | 79,339 |
Net cash (used in)/generated from investing activities | (19,838) | 53,728 | (43,952) |
Cash flows from financing activities | |||
Other financing activities with external parties | (4,475) | ||
Net cash used in financing activities | (4,475) | ||
Net increase/(decrease) in cash, cash equivalents and restricted cash | (25,570) | 49,902 | (40,098) |
Cash, cash equivalents and restricted cash at beginning of year | 57,585 | 7,683 | 47,781 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash at end of year | $ 32,015 | $ 57,585 | $ 7,683 |
Additional information_ conde_7
Additional information: condensed financial statements of the Company - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Decrease in net cash used in operating activities | $ 19,480 | $ (13,911) | $ (45,649) | |
Increase (decrease) net cash generated from investing activities | (32,619) | (20,756) | 79,260 | |
Decrease in cash and cash equivalents | 127,436 | 138,789 | 165,448 | $ 122,930 |
Adjustment | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Decrease in net cash used in operating activities | 17,600 | |||
Xunlei Limited [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Increase in investments in subsidiaries and consolidated VIE | 36,324 | 20,064 | ||
Decrease in cash and cash equivalents | $ 32,015 | 57,585 | 7,683 | $ 47,781 |
Xunlei Limited [Member] | Adjustment | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Decrease in current portion of due from subsidiaries and consolidated VIE | 275,700 | |||
Increase in non-current portion of due from subsidiaries and consolidated VIE | 175,700 | |||
Increase in investments in subsidiaries and consolidated VIE | 100,000 | |||
Decrease in net cash used in operating activities | 13,400 | 175,700 | ||
Increase (decrease) net cash generated from investing activities | 41,700 | 96,300 | ||
Decrease in cash and cash equivalents | $ 102,600 | $ 181,900 |