$ 233,479

$ 199,504

138,915

181,960

40,632

14,536

3,879

374

1,221

Due from related parties

6,986

1,097

6,866

13,593

Held-for-sale assets

430,783

412,305

Long-term investments

42,741

40,792

Property and equipment, net

^[1]

6,072

3,272

24,685

20,996

5,511

10,746

Other long-term prepayments and receivables

21,760

20,497

1,885

1,187

533,437

509,795

Accounts payable (including accounts payable of the consolidated variable interest entities (“VIE”) and its subsidiaries without recourse to the Company of USD 44,162 and USD 68,469 as of December 31, 2016 and 2017, respectively)

49,819

33,376

Deferred revenue and income, current portion (including deferred revenue and income, current portion of the consolidated VIE and its subsidiaries without recourse to the Company of USD 22,923 and USD 27,738 as of December 31, 2016 and 2017, respectively)

28,046

23,194

Income tax payable (including income tax payable of the consolidated VIE and its subsidiaries without recourse to the Company of USD 2,253 and USD 3,128 as of December 31, 2016 and 2017, respectively)

3,128

2,321

Accrued liabilities and other payables (including accrued liabilities and other payables of the consolidated VIE and its subsidiaries without recourse to the Company of USD 104,114 and USD 132,901 as of December 31, 2016 and 2017, respectively)

59,871

33,131

Held-for-sale liabilities

822

1,338

141,696

93,405

Deferred revenue and income, non-current portion (including deferred revenue and income, non-current portion of the consolidated VIE and its subsidiaries without recourse to the Company of USD 3,539 and USD 2,934 as of December 31, 2016 and 2017, respectively)

^[2]

3,242

4,082

Deferred tax liabilities, non-current portion

635

4,737

4,537

Other long-term payable

925

886

150,600

103,545

Common shares ( USD0.00025 par value, 1,000,000,000 shares authorized, 368,877,209 shares issued and 330,545,000 shares outstanding as of December 31, 2016; 368,877,209 shares issued and 333,643,560 shares outstanding as of December 31, 2017)

Equity

Additional paid-in-capital

461,330

453,347

Accumulated other comprehensive loss

(7,031)

(13,629)

Statutory reserves

5,132

Treasury shares (38,332,209 shares and 35,233,649 shares as of December 31, 2016 and 2017, respectively)

Accumulated deficits

(74,526)

(36,704)

Total Xunlei Limited’s shareholders’ equity

384,997

408,238

Non-controlling interests

(2,160)

(1,988)

Total liabilities and shareholders’ equity

$ 533,437

$ 509,795

[1]	As at December 31, 2017, the deferred tax asset and liability balances are expected to be recoverable as follows
[2]	As of December 31, 2017, the non-current portion included membership subscription revenue of USD 425,000 (2016: USD 820,000), government grants of USD 2,509,000 (2016: USD 2,719,000), and reimbursement from the depositary of USD 308,000 (2016: USD 543,000).

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accounts payable, consolidated variable interest entities and VIE's subsidiaries without recourse	$ 68,469	$ 44,162
Due to related party, consolidated variable interest entities and VIE's subsidiaries without recourse	10	45
Deferred revenue and income, current portion of consolidated variable interest entities and VIE's subsidiaries without recourse	27,738	22,923
Income tax payable, consolidated variable interest entities and VIE's subsidiaries without recourse	3,128	2,253
Accrued liabilities and other payables, consolidated variable interest entities and VIE's subsidiaries without recourse	132,901	104,114
Deferred revenue, non-current portion of consolidated variable interest entities and VIE's subsidiaries without recourse	$ 2,934	$ 3,539
Common stock, par value	$ 0.00025	$ 0.00025
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	368,877,209	368,877,209
Common stock, shares outstanding	333,643,560	330,545,000
Treasury stock, shares	35,233,649	38,332,209

Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Net revenues

Service revenue

$ 169,017

$ 136,442

$ 102,325

Product revenue

32,894

4,543

2,512

Total revenues, net of rebates and discounts

201,911

140,985

104,837

Business taxes and surcharges

(1,328)

(779)

(316)

Net revenues

200,583

140,206

104,521

Cost of revenues

Service

(96,391)

(75,571)

(56,629)

Product

(21,485)

(4,357)

(2,621)

Total cost of revenues

(117,876)

(79,928)

(59,250)

Gross profit

82,707

60,278

45,271

Operating expenses

Research and development expenses

(66,947)

(61,169)

(35,762)

Sales and marketing expenses

(19,888)

(14,601)

(12,411)

General and administrative expenses

(36,517)

(26,010)

(28,619)

Assets impairment loss

(13,556)

Total operating expenses

(136,908)

(101,780)

(76,792)

Operating loss

(54,201)

(41,502)

(31,521)

Interest income

1,967

2,158

5,833

Interest expense

(239)

Other income, net

7,880

6,503

3,627

Share of loss from equity investees

(1,875)

^[1]

(195)

^[1]

(12)

Loss before income tax

(46,468)

(33,275)

(22,312)

Income tax benefit

2,252

2,469

3,745

Net loss from continuing operations

(44,216)

(30,806)

(18,567)

Discontinued operations

Income from discontinued operations before income taxes

7,538

7,791

9,008

Income tax expense

(1,131)

(1,168)

(4,907)

Net profit from discontinued operations

6,407

6,623

4,101

Net loss

(37,809)

(24,183)

(14,466)

Less: net profit/(loss) attributable to the non-controlling interest

(72)

(1,299)

Net loss attributable to Xunlei Limited

(37,822)

(24,111)

(13,167)

Net loss for the year

(37,809)

(24,183)

(14,466)

Other comprehensive (loss)/income: Currency translation adjustments, net of tax

6,413

(9,325)

(9,945)

Comprehensive loss

(31,396)

(33,508)

(24,411)

Less: comprehensive (loss)/income attributable to non-controlling interest

(172)

(1,198)

Comprehensive loss attributable to Xunlei Limited

$ (31,224)

$ (33,588)

$ (23,213)

Earnings/(loss) per share for common shares, basic

Continuing operations

$ (0.1333)

$ (0.0919)

$ (0.0514)

Total loss per share for common shares, basic

0.0193

0.0198

0.0122

(0.1140)

(0.0721)

(0.0392)

Earnings/(loss) per share for common shares, diluted

Continuing operations

(0.1333)

(0.0919)

(0.0514)

Total loss per share for common shares, diluted

0.0193

0.0198

0.0122

$ (0.1140)

$ (0.0721)

$ (0.0392)

Weighted average number of common shares used in calculating continuing operations—basic

331,731,963

334,155,668

335,987,595

Weighted average number of common shares used in calculating continuing operations—diluted

331,731,963

334,155,668

335,987,595

[1]

In 2016, the Group made an equity investment in a privately-held company, Big Data, of USD 1,442,000 for 43.16% equity interest. The Group classified Big Data as an equity method investment as it had only significant influence instead of control over Big Data. In January of 2017, Big Data issued certain new shares to a third party and its original shareholders and the Group’s interest in Big Data diluted from 43.16% to 28.77% with a dilution gain of USD 326,000 arising from the deemed disposal. As at December 31, 2017, the Group recognized full impairment of USD 1,251,000 for its interest in Big Data as share of loss from equity investees after taking into account the latest operation status and financial position of Big Data.

Consolidated statements of changes in shareholders' equity - USD ($) $ in Thousands	Total	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]	Non-controlling interest [Member]	Total Xunlei Limited’s shareholders’ equity [Member]
Beginning Balance, Amount at Dec. 31, 2014	$ 457,021	$ 82	$ 7	$ 446,202	$ 574	$ 5,132	$ 5,894	$ (870)	$ 457,891
Beginning Balance, Shares at Dec. 31, 2014		327,611,487	30,274,602
Issuance of common shares for the vesting of restricted shares and the exercise of share options, Amount	0		$ 3	(3)
Issuance of common shares for the vesting of restricted shares and the exercise of share options, shares			10,991,120
Issuance of common shares for exercised share options, Amount	3,630	$ 2	$ (2)	3,630					3,630
Issuance of common shares for exercised share options, shares		9,092,265	(9,092,265)
Repurchase of common shares, Amount	(1,287)			(1,287)					(1,287)
Repurchase of common shares, shares		(1,068,095)	1,068,095
Share-based compensation	9,728			9,728					9,728
Restricted shares vested, Amount	0	$ 1	$ (1)
Restricted shares vested, shares		3,683,458	(3,683,458)
Net loss	(13,167)				(13,167)			(1,299)	(13,167)
Currency translation adjustments at Dec. 31, 2015	(9,945)						(10,046)	101	(10,046)
Ending Balance, Amount at Dec. 31, 2015	444,681	$ 85	$ 7	458,270	(12,593)	5,132	(4,152)	(2,068)	446,749
Ending Balance, Shares at Dec. 31, 2015		339,319,115	29,558,094
Issuance of common shares for exercised share options, Amount	58			58					58
Issuance of common shares for exercised share options, shares		440,465	(440,465)
Repurchase of common shares, Amount	(14,329)	$ (3)	$ 3	(14,329)					(14,329)
Repurchase of common shares, shares		(12,272,500)	12,272,500
Share-based compensation	9,348			9,348					9,348
Restricted shares vested, Amount	0	$ 1	$ (1)
Restricted shares vested, shares		3,057,920	(3,057,920)
Net loss	(24,111)				(24,111)			(72)	(24,111)
Currency translation adjustments at Dec. 31, 2016	(9,325)						(9,477)	152	(9,477)
Ending Balance, Amount at Dec. 31, 2016	408,238	$ 83	$ 9	453,347	(36,704)	5,132	(13,629)	(1,988)	408,238
Ending Balance, Shares at Dec. 31, 2016		330,545,000	38,332,209
Issuance of common shares for exercised share options, Amount	11			11					11
Issuance of common shares for exercised share options, shares		4,000	(4,000)
Repurchase of common shares, Amount	(358)	$ (1)	$ 1	(358)					(358)
Repurchase of common shares, shares		(465,350)	465,350
Share-based compensation	8,330			8,330					8,330
Restricted shares vested, Amount	0	$ 1	$ (1)
Restricted shares vested, shares		3,559,910	(3,559,910)
Net loss	(37,822)				(37,822)			13	(37,822)
Currency translation adjustments at Dec. 31, 2017	6,413						6,598	(185)	6,598
Ending Balance, Amount at Dec. 31, 2017	$ 384,997	$ 83	$ 9	$ 461,330	$ (74,526)	$ 5,132	$ (7,031)	$ (2,160)	$ 384,997
Ending Balance, Shares at Dec. 31, 2017		333,643,560	35,233,649

Consolidated Statement of Cash Flows - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Cash flows from operating activities

Net loss for the year

$ (37,809)

$ (24,183)

$ (14,466)

Adjustments to reconcile net loss to net cash generated from operating activities (note)

Depreciation of property and equipment

7,948

6,165

5,646

Amortization of intangible assets

2,101

2,223

12,149

Allowance for doubtful accounts

Impairment of receivables from and prepayments to Kankan

8,723

Loss on disposal of property and equipment

Gain from barter transactions

(409)

Share-based compensation

8,330

9,348

9,728

Share of loss from equity investees

1,875

^[1]

195

^[1]

Investment income on short-term investments

(728)

(506)

(997)

Impairment of property and equipment

Impairment of intangible assets

4,833

Impairment of long-term investments

596

Deemed disposal gain on long-term investments

(491)

(689)

(702)

Interest expense accrued on long-term payable

239

Deferred taxes

(2,214)

(954)

873

Deferred government grants

(3,493)

(3,473)

(1,969)

Changes in operating assets and liabilities:

Accounts receivable

(20,040)

(5,168)

1,395

Prepayments and other assets

(11,418)

13,947

3,815

Due from/to related parties

(4,879)

(1,180)

(70)

Accounts payable

9,037

15,855

301

Accrued liabilities and other payables

(2,925)

(526)

Deferred revenue

(510)

2,631

(294)

Income tax payable

339

147

153

26,138

2,229

(1,122)

Net cash generated from/(used in) operating activities

(14,216)

16,970

13,764

Cash flows from investing activities

Purchase of short-term investments

(244,781)

(209,034)

(222,157)

Proceeds from disposal of short-term investments

291,568

94,139

175,513

Proceeds from disposal of property and equipment

Proceeds from disposal of Kankan

16,687

Proceeds from disposal of long-term investments

191

3,670

Purchase of intangible assets

(481)

(121)

(11,894)

Acquisition of long-term investments

(2,793)

(33,233)

(8,330)

Repayment of loans from /(loans to) employees

423

(22)

105

Acquisition of property and equipment

(5,318)

(13,756)

(4,931)

Acquisition of constructions in progress

(3,624)

Net cash generated from/(used in) investing activities

35,208

(158,335)

(54,982)

Cash flows from financing activities

Repurchase of shares

(358)

(14,319)

(1,287)

Prepayment for share repurchase plan

712

288

Governments grants received

2,908

2,508

1,055

Proceeds from exercise of vested share options

4,974

Net cash generated from/(used in) financing activities

2,561

(11,041)

5,030

Net (decrease)/increase in cash and cash equivalents

23,553

(152,406)

(36,188)

Cash and cash equivalents at beginning of year

199,504

361,777

404,275

Effect of exchange rates on cash and cash equivalents

10,422

(9,867)

(6,310)

Cash and cash equivalents at end of year

233,479

199,504

361,777

Supplemental disclosure of cash flow information

Income tax paid

Non cash investing and financing activities

Acquisition of property and equipment in form of other payables

(2,774)

(1,773)

4,468

Purchase of intangible assets in form of accounts payable

$ 62

[1]

Organization and nature of operations

12 Months Ended

Dec. 31, 2017

Organization and nature of operations [Abstract]

Organization and nature of operations

Organization and nature of operations

Xunlei Limited, previously known as Giganology Limited, (the “Company”) was incorporated under the law of the Cayman Islands (“Cayman”) as a limited liability company on February 3, 2005. The Company completed its initial public offering (“IPO”) 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 the VIE’s subsidiaries (collectively referred to as the “Group”) as follows:

Name of entities	Place of incorporation	Date of incorporation	Relationship	% of direct or indirect economic ownership	Principal activities
Shenzhen Xunlei Networking Technologies, Co., Ltd. (“Shenzhen Xunlei”)	People’s Republic of China (“PRC”)	January 2003	VIE	100%	Development of software, provision of online and related advertising, membership subscription and online game services; as well as sales of software licenses

Giganology (Shenzhen) Co., Ltd. (“Giganology Shenzhen”)	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 software for related companies, provision of advertising services and production of broadcast television programs

Xunlei Networking Technologies (Beijing) Co., Ltd. (“Beijing Xunlei”)	PRC	June 2009	VIE’s subsidiary	100%	Development of software for related companies (note b)

Shenzhen Zhuolian Software Co., Ltd. (formerly known as “Xunlei Software (Shenzhen) Co., Ltd.”) (“Zhuolian Software”)	PRC	January 2010	VIE’s subsidiary	100%	Provision of software technology development for related companies

Xunlei Games Development (Shenzhen) Co., Ltd. (“Xunlei Games”)	PRC	February 2010	VIE’s subsidiary	70%	Development of online game and computer software for related companies and provision of advertising services

Xunlei Network Technologies Limited (“Xunlei BVI”)	British Virgin Islands	February 2011	Subsidiary	100%	Holding company

Xunlei Network Technologies Limited (“Xunlei HK”)	Hong Kong	March 2011	Subsidiary	100%	Development computer software of related companies and provision of advertising services

Xunlei Computer (Shenzhen) Co., Ltd. (“Xunlei Computer”)	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 computer software, sale of hardware, and provision of information technology 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

Shenzhen Crystal Interactive Technologies Co., Ltd. (“Crystal Interactive”)	PRC	May 2016	VIE’s subsidiary	100%	Development of computer software and provision of information technology services

Shenzhen Xunlei Venture Capital Partnership Enterprise (Limited Partnership) (“Xunlei Venture Capital”)	PRC	June 2016	VIE’s subsidiary	99%	Investments in industries and consultation in investments (note c)

Beijing Onething Technologies Co., Ltd. (“Beijing Onething”)	PRC	January 2017	VIE’s subsidiary	100%	Provision of technology services and development of computer software

Note a: The English names of the PRC companies represent management’s translation of their Chinese names of these companies as they have not adopted formal English names.

Note b: Beijing Xunlei was deregistered in 2017.

Note c: As at December 31, 2017, Xunlei Venture Capital was in the process of deregistration.

The Group engages primarily in the provision of premium downloading services to its members, online advertising services on its websites and mobile phone applications, sales of bandwidth, sales of cloud computing hardwares, platform for live video services, online game platforms for game developers and users, 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, its consolidated VIE.

Through the various agreements enacted among the Company, Giganology Shenzhen, a wholly owned subsidiary of the Company, Shenzhen Xunlei and legal shareholders of Shenzhen Xunlei (the “Restructuring”), the Company received all of the economic benefits and residual interest and absorbed all of the risks and expected losses from Shenzhen Xunlei.

Details of certain key agreements with the VIE are as follows:

—Loan Agreements between Giganology Shenzhen and the shareholders of Shenzhen Xunlei— Giganology Shenzhen provided interest-free loans of RMB 9 million to the legal shareholders of Shenzhen Xunlei for them to make contributions as registered capital into Shenzhen Xunlei. The term of these agreements last for two years from the date it was signed, and will be automatically extended afterwards on a yearly basis until each legal shareholder of Shenzhen Xunlei has repaid the loans in its entirety in accordance with the loan agreement. The legal shareholders would not be allowed to transfer their interests in Shenzhen Xunlei without prior consent of Giganology Shenzhen. According to the loan agreements, the loans can only be repaid in the form of common shares of Shenzhen Xunlei. At any time during the term of the loan agreements, Giganology Shenzhen may, at their sole discretion, requires any of the legal shareholders of Shenzhen Xunlei to repay all or any portion of their outstanding loan under the agreement.

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 RMB 30 million. The term of this agreement last for two years from the date it was signed, and will be automatically extended afterwards on a yearly basis until Mr. Zou has repaid the loan in its entirety in accordance with the loan agreement. This loan will be deemed to be repaid when all equity interest held by the shareholders in Shenzhen Xunlei has been transferred to Giganology Shenzhen or its designated parties. At any time during the term of this loan agreement, the Company may, at their sole discretion, require all or any portion of the outstanding loan under the agreement to be repaid.

—Business Operation Agreements between Giganology Shenzhen and Shenzhen Xunlei—Under these agreements, Giganology Shenzhen has the rights to direct the operating activities of Shenzhen Xunlei, including the appointment of senior management. The legal shareholders of Shenzhen Xunlei also transferred all their shareholders’ rights to Giganology Shenzhen. The term of this agreement will expire in 2016 and may be extended with Giganology Shenzhen’s confirmation prior to the expiration date. For instance, in May 2011, Shenzhen Xunlei sought and obtained consent from Giganology Shenzhen and the Company to increase its registered capital by RMB20 million and to revise its articles of association accordingly. This agreement expired on November 15, 2016 and has been extended to 2026.

—Equity Pledge Agreement between Giganology Shenzhen and the legal shareholders of Shenzhen Xunlei—Under this agreement, the legal shareholders of Shenzhen Xunlei pledged all of their equity interests in Shenzhen Xunlei to Giganology Shenzhen. If Shenzhen Xunlei and/or its legal shareholders breach their contractual obligations under this agreement, Giganology Shenzhen, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests.

—Power of Attorney—Each legal shareholder of Shenzhen Xunlei appointed Giganology Shenzhen as its attorney-in-fact to exercise their shareholders’ rights in Shenzhen Xunlei, including shareholders’ voting rights. Each power of attorney will remain in force for 10 years unless the business operation agreement among Giganology Shenzhen, Shenzhen Xunlei and the legal shareholders of Shenzhen Xunlei is terminated in advance. This period may be extended at Giganology Shenzhen’s discretion.

—Service Agreements between Giganology Shenzhen and Shenzhen Xunlei—Under various service agreements, Giganology Shenzhen will provide services including technical support, training, as well as consulting services to Shenzhen Xunlei in exchange for a service fee. These service agreements include the Exclusive Technology Support and Services Agreement, the Exclusive Technology Consulting and Training Agreement and the Software and Proprietary Technology License Contract. Giganology Shenzhen is entitled to service fees equal to 20%, 20% and 40% of the pre-tax operating profit of Shenzhen Xunlei according to the terms and provisions of these agreements, respectively (in aggregate 80% of pre-tax operating profit of Shenzhen Xunlei). In addition, these agreements also allow both parties to review and adjust the above mentioned percentage every six months according to the business operation and income of Shenzhen Xunlei so as to enable Giganology Shenzhen to extract substantially all the after tax operating profit of Shenzhen Xunlei. The amount of service fees payable from Shenzhen Xunlei to Giganology Shenzhen for the years ended December 31, 2015, 2016 and 2017 was USD 1,235,000, USD 1,088,000 and USD 1,155,000, respectively.

For the Exclusive Technology Support and Services Agreement and the Exclusive Technology Consulting and Training Agreement, the term of these agreements will expire in 2025 and may be extended with Giganology Shenzhen’s written confirmation prior to the expiration date. Giganology Shenzhen is entitled to terminate the agreement at any time by providing 30 days’ prior written notice to Shenzhen Xunlei.

For the Proprietary Technology License Contract, the term of this contract will expire in 2022 and may be extended with Giganology Shenzhen’s written confirmation prior to the expiration date. Giganology Shenzhen grants Shenzhen Xunlei a non-exclusive and non-transferable right to use Giganology Shenzhen’s proprietary technology. Shenzhen Xunlei can only use the proprietary technology to conduct business according to its authorized business scope. Giganology Shenzhen or its designated representative(s) owns the rights to any new technology developed due to implementation of this contract.

—Intellectual Properties Purchase Option Agreement between Giganology Shenzhen and Shenzhen Xunlei. Giganology Shenzhen has an option to acquire Shenzhen Xunlei’s intellectual properties at the lowest price permissible by the then-applicable PRC laws and regulation. The term of this contract will expire in 2022 and may be automatically extended for an additional 10 years at Giganology Shenzhen’s discretion.

—Call Option Agreement—Giganology Shenzhen has an option to acquire all of the outstanding shares of Shenzhen Xunlei at a purchase price equal to RMB 1 or the lowest price permissible by the then-applicable PRC laws and regulation. The term of the agreement will expire in 2022 and may be extended at Giganology Shenzhen’s discretion.

As a result of these agreements (collectively defined as “Structured Service Contracts”), Giganology Shenzhen can exercise effective control over Shenzhen Xunlei, receives all of the economic benefits and residual interest and absorbs all of the risks and expected losses from Shenzhen Xunlei as if it were the sole shareholder, and has an exclusive option to purchase all of the equity interest in Shenzhen Xunlei at a minimal price. Therefore, Giganology Shenzhen is considered the primary beneficiary of Shenzhen Xunlei and accordingly Shenzhen Xunlei’s results of operations, assets and liabilities have been consolidated in the Company’s financial statements.

VIE-Related Risks

It is possible that the Group’s operation of certain of its operations and businesses through VIEs could be found by PRC authorities to be in violation of PRC 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 VIEs within the scope of entities that could be considered to be foreign invested enterprises (or “FIEs”) that would be subject to restrictions under existing PRC law on foreign investment in certain categories of industry. Specifically, the Draft FIE Law introduces the concept of “actual control” for determining whether an entity is considered to be an FIE. In addition to control through direct or indirect ownership or equity, the Draft FIE Law includes control through contractual arrangements within the definition of “actual control.” If the Draft FIE Law is passed by the People’s Congress of the PRC and goes into effect in its current form, these provisions regarding control through contractual arrangements could be construed to reach the Group’s VIE arrangements, and as a result the Group’s VIEs could become explicitly subject to the current restrictions on foreign investment in certain categories of industry. The Draft FIE Law includes provisions that would exempt from the definition of foreign invested enterprises entities where the ultimate controlling shareholders are either entities organized under PRC law or individuals who are PRC citizens. The Draft FIE Law does not make clear how “control” would be determined for such purpose, and is silent as to what type of enforcement action might be taken against existing VIEs that operate in restricted industries and are not controlled by entities organized under PRC law or individuals who are PRC citizens. If a finding were made by PRC authorities, under existing laws and regulations or under the Draft FIE Law if it becomes effective, that the Group’s operation of certain of its operations and businesses through VIEs, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Group to restructure its ownership structure or operations, or requiring the Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Group’s business operations, and have a severe adverse impact on the Group’s cash flows, financial position and operating performance.

In addition, it is possible that the contracts among the Group, the Group’s VIEs and shareholders of its VIEs would not be enforceable in China if PRC government authorities or courts were to find that such contracts contravene PRC law and regulations or are otherwise not enforceable for public policy reasons. In the event that the Group was unable to enforce these contractual arrangements, the Group would not be able to exert effective control over the affected VIEs. Consequently, such VIE’s results of operations, assets and liabilities would not be included in the Group’s consolidated financial statements. If such were the case, the Group’s cash flows, financial position and operating performance would be severely adversely affected. The Group’s contractual arrangements with respect to its consolidated VIEs are approved and in place. The Group’s management believes that such contracts are enforceable, and considers the possibility remote that PRC regulatory authorities with jurisdiction over the Group’s operations and contractual relationships would find the contracts to be unenforceable.

Summary of significant accounting policies

12 Months Ended

Dec. 31, 2017

Summary of significant accounting policies [Abstract]

Summary of significant accounting policies

2.	Summary of significant accounting policies

(a)

Basis of presentation and use of estimates

The 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 Restructuring was accounted for at historical costs. The assets and liabilities of Shenzhen Xunlei are consolidated in the Company’s financial statements at carryover basis.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and related disclosures. Actual results could differ materially from these estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements mainly include allowance for doubtful accounts, valuation allowance of deferred tax assets, sales rebate to advertising agencies, amortization period of online game revenue, amortization of content copyrights, fair value of content copyrights exchange, impairment assessment of goodwill and impairment assessment of long-lived assets. In addition, the Group uses assumptions in a valuation model to estimate the fair value of share options granted, warrants issued and underlying common shares.

Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.

(b)

Consolidation

The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE for which the Company is the primary beneficiary and its subsidiaries. All significant transactions and balances among the Company, its subsidiaries, VIE and its subsidiaries have been eliminated upon consolidation.

A subsidiary is an entity in which the Company, directly or indirectly, controls more than one-half of the voting power, or has the power to appoint or remove the majority of the members of the board of directors to cast majority of votes at meetings of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.

An entity is considered to be a VIE if the entity’s equity holders do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.

The Group consolidates entities for which the Company is the primary beneficiary if the entity’s other equity holders do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.

In determining whether the Company or its subsidiary is the primary beneficiary of a VIE, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, including the power to appoint senior management, right to direct company strategy, power to approve capital expenditure budgets, and power to establish and manage ordinary business operation procedures and internal regulations and systems.

Management has evaluated the contractual arrangements among Giganology Shenzhen, Shenzhen Xunlei and its shareholders and concluded that Giganology Shenzhen receives all of the economic benefits and absorbs all of the expected losses from Shenzhen Xunlei and has the power to direct the aforementioned activities that are significant to Shenzhen Xunlei’s economic performance, and is the primary beneficiary of Shenzhen Xunlei. Therefore, Shenzhen Xunlei and its subsidiaries’ results of operation, assets and liabilities have been included in the Group’s consolidated financial statements. Management monitors the regulatory risk associated with these contractual arrangements. See Note 25 for further discussion.

Non-controlling interests represent the portion of the net assets of a subsidiary attributable to interests that are not owned by the Company. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Group is presented on the face of the consolidated statements of comprehensive income as an allocation of the total income or loss for the year/period between non-controlling shareholders and the shareholders of the Company.

(c)

Discontinued operations

When disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity’s financial results and operations. Examples include a disposal of a major geographical location, line of business, or other significant part of the entity, or disposal of a major equity method investment. In the consolidated statement of comprehensive income, result from discontinued operations is reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. Cash flows for discontinuing operations are presented separately in note 3. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations.

Non-current assets or disposal groups are classified as assets held for sale when the carrying amount is to be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset or disposal group must be available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such assets or disposal groups and the sale must be highly probable. Non-current assets classified as held for sale and disposal groups are measured at the lower of their carrying or fair value less costs to sell.

(d)

Foreign currency translation

The Company’s reporting and functional currency is the United States Dollar (‘‘USD’’). Xunlei BVI and Xunlei HK’s functional currency is the USD. The functional currency of other subsidiaries, VIE and its subsidiaries located in the PRC is the Renminbi (‘‘RMB’’), which is their respective local currency. Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in foreign currencies are remeasured into the functional currency using the applicable exchange rates prevailing at the balance sheet date. The resulting exchange gains and losses from foreign currency transactions are included in other income (loss) within the consolidated statements of comprehensive income.

The Company uses the monthly average exchange rate for the year and the exchange rates at the balance sheet date to translate the operating results and financial position, respectively, of its subsidiaries whose functional currency is other than the USD. The resulting translation differences are recorded in cumulated translation adjustments, a component of shareholders’ equity.

The exchange rate used is released by Chinese State Administration of Foreign Exchange.

(e)

Cash and cash equivalents

Cash and cash equivalents include cash on hand, cash in bank and time deposits placed with banks or other financial institutions, which have original maturities of three months or less and are readily convertible to known amounts of cash.

(f)

Short-term investments

Short-term investments include deposits placed with banks with original maturities of more than three months but less than one year and investments in financial instruments with a variable interest rate indexed to the performance of underlying assets. In accordance with ASC 825 Financial Instruments, for investments in financial instruments with a variable interest rate indexed to performance of underlying assets, the Group elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in the fair value are reflected in the consolidated statements of comprehensive income. Interest generated from short term investments are recorded when interest payments are received at the maturity date. It is recorded as “other income” on the statement of comprehensive income and measured based on the actual amount of interest the Group received.

(g)

Fair value of financial instruments

The Group’s financial instruments consist principally of cash and cash equivalents, short-term investments, accounts receivable, other receivables, amounts due from/(to) related parties, accounts payable, and other payables. The carrying value of these balances, with the exception of short-term investments (see note 2 (f)), approximates their fair value due to the current and short term nature of these balances.

(h)

Accounts receivable, net

Accounts receivable are presented net of allowance for doubtful accounts. The Group evaluates the creditworthiness of each customer at the time when services are rendered and continuously monitor the recoverability of the accounts receivable.

The Group uses specific identification method in providing for bad debts when facts and circumstances indicate that collection is doubtful and a loss is probable and estimable. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances might be required. The allowance for doubtful accounts is based on the best facts available and is re-evaluated and adjusted on a regular basis as additional information is received.

Some of the factors that the Group considers in determining whether a bad debt allowance is recorded on an individual customer are:

1) the customer's past payment history and whether it fails to comply with its payment schedule;

2) whether the customer is in financial difficulty due to economic or legal factors;

3) a significant dispute with the customer has occurred;

4) the objective evidence which indicates non-collectability of the accounts receivable.

The allowances provided for Accounts Receivable from continuing operations as of December 31, 2016 and 2017 were USD 119,000 and USD 31,000, respectively.

If the Group determines that an allowance is needed for a customer, the Group will discontinue business with them unless they start to resume payment. The accounts receivable is written-off when the Group ceases pursuing collection. Any changes in the estimates may cause the Group's operating results to fluctuate.

(i)

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined using actual cost on a weighted average basis. Net realizable value is the amount that can be realized from the sale of the inventory in the normal course of business after allowing for the costs of realization.

An allowance is recorded for excess inventory and obsolescence based on the lower of cost or net realizable value.

(j)

Long-term investments

The Group holds investments in privately held companies. The Group accounts for these investments over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method of accounting. For investments in an investee over which the Group does not have significant influence and of which the investee has no readily determinable fair value, the Group carries the investment using the cost method. Under the cost method, the investment is measured initially at cost. The investment carried at cost should recognize income when dividends are received from the distribution of the investee’s earnings. The Group assesses its long-term investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company-specific information. The fair value determination, particularly for investments in privately-held companies, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and determination of whether any identified impairment is other-than-temporary. During the years ended December 31, 2015, 2016 and 2017 the Group recognised an impairment of USD 0.8 million, USD 1.66 million and USD 0.6 million, respectively. During the year ended December 31 2017, the Group recognised share of loss of associate of USD 1.3 million for Big Data.

(k)

Property and equipment

Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the asset at the end of the estimated useful life as a percentage of the original cost. If the company 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	5 years		5	%
Computer equipment	5 years		5	%
Furniture, fittings and office equipment	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 disposition, gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of operations. The cost and related accumulated depreciation are removed from the financial statements.

(l)

Goodwill

Goodwill represents the excess of the purchase 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 and consolidated VIEs. 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.

No goodwill impairment losses were recognized for the years ended December 31, 2016 and 2017 based on the impairment test performed by the Group.

(m)

Intangible assets

Intangible assets, which include computer software, internal use software development costs, online game licenses, domain names, land use right, trademarks, technology (including right-to-use) and non-compete agreement, are carried at cost less accumulated amortization and impairment loss, if any. Exclusive game licenses are amortized using the straight-line method over their licensing period of three years. Computer software, internal use software and domain name are amortized using the straight-line method over their estimated useful life of five years. Land use right is amortized using the straight-line method over their estimated useful life of thirty years.

(n)

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. The impairment of online game licenses were USD 770,000, USD 721,000 and USD 765,000 as of December 31, 2015, 2016 and 2017, respectively. The intangible assets arising from acquisition of Kingsoft Cloud Holdings, comprised of trademarks, non-compete agreement, and related technology (including right-to-use), were impaired by USD 3,232,000, USD 322,000 and USD 1,381,000, respectively as of December 31, 2017.

(o)

Commitments and contingencies

In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. In regards to legal cost, the Group recorded such costs as incurred.

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Group, but which will only be resolved when one or more future events occur or fail to occur. The Group’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Group or unasserted claims that may result in such proceedings, the Group, in consultation with its legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Group’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed.

(p)

Operating leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating lease are charged to the statements of comprehensive income on a straight-line basis over the period of the lease.

(q)

Revenue recognition

The Group generates revenues from various streams. Net revenues presented in the consolidated statements of operations and comprehensive income represent revenues from service and product sales net off sales discount, value-added tax and related surcharges. The Group operates a prepaid virtual items system, under which, prepaid virtual items at fixed face value are sold to third parties. Virtual items purchased can be used to subscribe for membership or purchase of virtual items in online games, as discussed below. Virtual items sold but not yet consumed by the users are recorded as “Receipts in advance from customers” and upon consumption, they are recognized as membership subscription and online game revenue according to the respective prescribed revenue recognition policies addressed below.

I)	Subscription revenues

The Group operates a VIP membership program where VIP members can have access to high speed online acceleration services, online streaming and other access privileges. The membership fee is time-based and is collected up-front from subscribers except in the cases when they elect to pay via their mobile operators. The membership fee is collected when the subscribers pay for the monthly phone bills. The terms of time-based subscriptions range from one month to twelve months, with the subscribers having the option to renew the contract. The receipt of subscription fee is initially recorded as deferred revenue and revenue is recognized 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 record revenue on a gross basis. In determining whether to report revenues gross for the amount of subscription revenue, the Group assesses whether it maintains the principal relationship with the VIP members, whether it bears the credit risk and whether it establishes prices for the end users. Service fees levied by online system, fixed phone line and mobile payment channels (‘‘Payment handling charges’’) are recorded as the cost of revenues in the same period as the revenue for the membership fee is recognized.

II)	Advertising revenues

Advertising revenues are derived principally from arrangements where the customers pay to place their advertisements on the Group’s platform in different formats over a particular period of time. Such formats generally includes but are not limited to videos, banners, links, logos and buttons. Advertisements on the Group’s platform are generally charged on the basis of duration, and advertising contracts are signed to establish the fixed price and the advertising services to be provided. The Group enters into advertising contracts with third party advertising agencies that represents advertisers, as well as directly with advertisers. A typical contract term would range from a few days to 3 months. Both third party advertising agencies and direct advertisers are generally billed at the end of the display period and payments are due usually within 3 months.

Where the Group’s customers purchase multiple advertising spaces with different display periods in the same contract, the Group allocates the total consideration to the various advertising elements based on their relative fair values and recognizes revenue for the different elements over their respective display periods. The Group determines the fair values of different advertising elements based on the prices charged when these elements were sold on a standalone basis. The Group recognizes revenue on the elements delivered and defers the recognition of revenue for the fair value of the undelivered elements until the remaining obligations have been satisfied. Where all of the elements within an arrangement are delivered uniformly over the agreement period, the revenue is recognized on a straight line basis over the contract period.

Transactions with third party advertising agencies

For contracts entered into with third party advertising agencies, the third party advertising agencies will in turn sell the advertising services to advertisers. Revenue is recognized ratably over the contract period of display based on the following criteria:

—There is persuasive evidence that an arrangement exists—the Group will enter into framework and execution agreements with the advertising agencies, specifying price, advertising content, format and timing

—Price is fixed and determinable—prices charged to the advertising agencies are specified in the agreements, including relevant discount and rebate rates

—Services are rendered—the Group recognizes revenue ratably over the contract period of display

—Collectability is reasonably assured—the Group assesses credit history of each advertising agency before entering into any framework and execution agreements. If the collectability from the agencies is assessed as not reasonably assured, the Group recognizes revenue only when the cash is received and all the other revenue criteria are met.

The Group provides sales incentives in the forms of discounts and rebates to third party advertising agencies based on purchase volume. As the advertising agencies are viewed as the customers in these transactions, revenue is recognized based on the price charged to the agencies, net of sales incentives provided to the agencies. Sales incentives are estimated and recorded at the time of revenue recognition based on the contracted rebate rates and estimated sales volume based on historical experience.

Transactions with third party advertising platforms

Xunlei began to cooperate with third party advertising platforms such as Guangdiantong and Baidu since the fourth quarter in 2015. In this business model, advertisers put their content on third party advertising platforms and platforms will dispatch the advertising content to Xunlei’s platforms by certain analysis systematically. As the third party advertising platforms are viewed as the customers in these transactions, revenue is recognized monthly based on the data publicized on third party platforms and the price charged to these advertising platforms.

Transactions with advertisers

The Group also enters into advertisement contracts directly with advertisers. Under these contracts, similar to transactions with third party advertising agencies, the Group recognizes revenue ratably over the contract period of display. The terms and conditions, including price, are fixed according to the contract between the Group and the advertisers. The Group also performs credit assessment of all advertisers prior to entering into contracts. Revenue is recognized based on the amount charged to the advertisers, net of discounts.

The Group has estimated and recorded sales rebates provided to the agencies and advertisers of USD 1,179,000, USD 15,000 and USD 440,000 for the years ended December 31, 2015, 2016 and 2017, respectively.

III)	Other internet value-added services

i)	Online game revenues

Online games comprise web games, mobile games and PC games. Users play games through the Group’s platform free of charge and are charged for purchases of virtual items including consumable and perpetual items, which can be utilized in the online games to enhance their game-playing experience. Consumable items represent virtual items that can be consumed by a specific user within a specified period of time. Perpetual items represent virtual items that are accessible to the users’ account over the life of the online game.

Pursuant to contracts signed between the Group and game developers, revenue from the sale of virtual items are shared based on a pre-agreed ratio for each game. The Group enters into both non-exclusive and exclusive licensing contracts with game developers.

Non-exclusive game licensed contracts

The games under non-exclusive licensed contracts are maintained, hosted and updated by the game developers. The Group mainly provides access to the platform and limited after-sale services to the game players. The determination of whether to record these revenues using the gross or net method is based on an assessment of various factors; the primary factors are whether the Group acts as the principal in offering services to the game players or as agent in the transaction, and the specific requirements of each contract. The Group determined that for non-exclusive game licensed arrangements, the third party game developers are the principal given that the game developers design and develop the game services offered, have reasonable latitude to establish prices of game virtual items, and are responsible for maintaining and upgrading the game content and virtual items. Accordingly, the Group records online game revenue, net of the portion remitted to the game developers.

Given that online games are managed and administered by the game developers for non-exclusive licensed games, the Group does not have access to the data on the consumption details and the types of virtual items purchased by the game players. The Group has adopted a policy to recognize revenues relating to both consumable and perpetual items over the shorter of 1) estimated lives of the games and 2) the estimated lives of the user relationship with the Group, which were approximately one to ten months for the periods presented.

Adjustments arising from the changes of estimated lives of virtual items are applied prospectively as such changes are resulted from new information indicating a change in the game player behavioral patterns.

Exclusive licensing game contracts

For exclusive licensing contracts with game developers, the games are maintained and hosted by the Group. Accordingly, the Group is determined to be the principal, the Group records online game revenue on a gross basis, with the amount remitted to the game developers reported as cost of revenue. Payment handling charges are recognized as cost of revenues when the related revenues are recognized.

For exclusive licensed games which are maintained on the Group’s server, the Group has access to the data on the consumption details and types of virtual items purchased by the game players. The Group does not maintain information on consumption details of virtual items, and only have limited information related to the frequency of log-ons. Given that a substantial portion of the virtual items purchased by the game players in exclusive licensed games are perpetual items, management determined that it would be most appropriate to recognize revenue over the shorter of 1) estimated lives of the games and 2) the estimated lives of the user relationship with the Group, which were approximately one to six months for the periods presented. Revenues related to consumable items are recognized immediately upon consumption.

Game players can purchase prepaid virtual items which can be used to purchase virtual items via online channels. The Group incurs service fees levied by those payment channels, and such payment expenses are recorded as the cost of revenues when the related revenues are recognized.

For both non-exclusive and exclusive licensed games, the Group estimates the life of virtual items to be the shorter of the estimated lives of the games and the estimated lives of the user relationship. The estimated user relationship period is based on data collected from those users who have purchased virtual items. To estimate the life of the user relationship, the Group maintains a software system that captures the following information for each user: the date of first log-on, the date the user ceases to play the game and frequency of log-ons. The Group estimates the life of the user relationship to be the weighted average period from the first purchase of a virtual item to the date the user ceases to play the game based on the frequency of log-ons.

To estimate the life of the games, the Group considers both games that they operate as well as games in the market that are of a similar nature. The Group categorizes these games by their nature, such as simulation games, role playing games and others, which appeal to players belonging to different demographics. The Group estimates that the life of each group of the games to be the average period from the date of launch for such games to the date the games are expected to be removed from the website or terminated altogether. When the Group launches a new game, they estimate the life of the game and user relationship based on lives of other similar games in the market until the new game establishes its own history. The Group also considers the game’s profile, attributes, target audience, and its appeal to players of different demographic groups in estimating the user relationship period.

The consideration of user relationship with each online game is based on the Group’s best estimate that takes into account all known and relevant information at the time of assessment. Adjustments arising from the changes of estimated lives of virtual items are applied prospectively as such changes are resulted from new information indicating a change in the game player behavioral patterns. Any changes in the estimates of lives of virtual items may result in the Group’s revenues being recognized on a basis different from prior periods and may cause the Group’s operating result to fluctuate. The Group periodically assesses the estimated lives of the virtual items and any changes from prior estimates are accounted for prospectively. Any adjustments arising from changes in user relationship as a result of new information will be accounted as a change in accounting estimate in accordance with ASC 250 Accounting Changes and Error Corrections.

The Group entered into a legally binding agreement to sell its web game business in December 2017. Web game revenue recognized from discontinued operations was USD 25,160,000, USD 15,981,000 and USD 11,428,000 for the years ended December 31, 2015, 2016 and 2017, respectively.

ii)	Live video revenue

The Group operates live video platform and users can purchase virtual items which they can then send to performers in the live video platform. The revenue from live video is recognized at fair value of the virtual items, as Xunlei is the principal in this arrangement, based on actual consumption of virtual items by the paying users.

iii)	Revenues from traffic referral programs

The Group enters into contracts with certain third party portals/websites to earn revenue by redirecting online traffic to these third party portals/websites. On a monthly basis, the Group receives data on the user traffic and the related monthly revenue from these third party portals/ websites. Under these programs, the Group recognizes its share of revenues based on contractual rates applied to user traffic redirected to the advertisements of the third parties.

iv)	Revenues from cloud computing

As part of the Group’s cloud computing business, Project Crystal, the Group engages in sale of Zhuanqianbao (“ZQB”) and OneThing Cloud. ZQB and OneThing Cloud are personal cloud hardware devices.

ZQB and OneThing Cloud also allow users to share their idle bandwidth with the Group, in exchange for crystal points and LinkTokens, respectively. Crystal points, which can be converted into cash based on a pre-set exchange rate, will only be given to the users when they successfully shared unused bandwidth with the Group, whereas LinkTokens are not convertible into cash but they can be redeemed for the services offered in the platforms of the Group under the terms determined by the Group. Although the Group has not publicly announced the full details of the redemption process, the LinkTokens represent the Group’s obligation to deliver future services. Therefore, the Group receives an identifiable benefit, being the bandwidth, from the users in exchange for the crystal points and LinkTokens. The Group determined that ZQB and OneThing Cloud sold to users represent identifiable benefit to the users that is separable from the ability to sell bandwidth back to the Group and the bandwidth purchased from the users represent identifiable benefit to the Group, which the Group can reasonably estimate the fair value of this benefit, that is separable from ZQB and OneThing Cloud.

The sales of ZQB and OneThing Cloud and purchase of excess bandwidth by the Group are considered separate transactions. Therefore, sales of ZQB and OneThing Cloud are reported as revenue, while crystal points and LinkTokens given for purchase of bandwidth are reported as bandwidth cost.

The Group sells ZQB and OneThing Cloud through online e-commerce platforms. The revenue from ZQB and OneThing Cloud is recognized when the item is dispatched to the end customers.

The LinkTokens issued represent the Group’s obligation to deliver future services. Therefore, deferred revenue was recognized for all LinkTokens issued. Revenue will be recognized upon redemption of the LinkTokens, the fair value of which is measured by bandwidth costs divided by total number of LinkTokens issued. Breakage is taken into account based on historical experience.

The core business principle of cloud computing is to collect idle uplink capacity from individuals with compensation, and sells to online video streaming platforms. On a monthly basis, the Group records the bandwidth it delivers and recognizes revenue from these online video streamers under contractual rates applied (price per GB of bandwidth multiplies total GBs of bandwidth per month). The cost of collecting idle bandwidth is recorded as bandwidth costs within cost of revenues upon the Group receives the idle bandwidth.

Revenue is recognized net of return allowances when the products are delivered and title passes to customers. Return allowances, which reduce net revenues, are estimated based on historical experiences. Product warranties are estimated and recognized at the time the Company recognizes revenue. The warranty periods is 1 year. The Company accrues warranty liabilities at the time of sale, based on historical and projected incident rates and expected future warranty costs.

(r)

Barter transactions

The Group also enters into agreements with third parties (mainly video streaming internet platform) to exchange content. The exchanged content provides rights for each respective party only to broadcast the content received on its own website; though, each party retains the right to continue broadcasting and or sub-license the rights to the content it surrendered in the exchange. These transactions are non-monetary transactions similar to barter transactions, and the Group follows ASC 845, Non-Monetary Transactions and ASC 360-10, Property, Plant, and Equipment. Such barter transactions should be recorded at fair value of the surrendered assets in the transaction unless such fair value are not determinable within reasonable limits. The Group estimated the fair value of the content by gathering ‘‘price reference’’ of cash sub-licensing transactions of each exclusive content right and categorizing it into two buckets (1) cash transaction prices with established counterparties and (2) cash transaction prices with less established counterparties. With this information, the Group calculates an ‘‘average cash transaction price’’ for each category to be used as a reference for the non-monetary transaction. The attributable cost of the related exclusive Content Copyright surrendered is released and recorded as the cost of the barter transaction using the individual-film-forecast computation method. This method calculates such cost based on the ratio of the estimated fair value of the exchanged content over the aggregated estimated fair value to be generated by the exclusive Content Copyrights for their whole license period or estimate useful lives. The Group revisits the forecast at each quarter or year end and make adjustment, when appropriate.

The Group generated net gains amounting to USD 137,000 from barter transactions, which is the net amount of proceeds of USD 409,000 after deducting related allocation of cost of USD 247,000 and business tax and surcharge of USD 25,000 for the year ended December 31, 2015. No similar transactions occurred for the years ended December 31, 2016 and 2017.

(s)

Sales and marketing expenses

Sales and marketing expenses comprise primarily of salary, commission and benefits of sales and marketing personnel and external advertising and market promotion expenses. The external advertising and market promotion expenses from continuing operations amounted to approximately USD 6,019,000, USD 6,666,000 and USD 10,345,000 for the years ended December 31, 2015, 2016 and 2017, respectively.

Shipping and handling fee is recorded in sales and marketing expenses.

(t)

General and administrative expenses

General and administrative expenses consist primarily of salary and benefits, professional service fees, legal expenses and other administrative expenses.

(u)

Research and development costs

The Group incurred research and development costs to develop its downloading software. Costs incurred during the research phase are expensed as incurred. Costs incurred for the development of the downloading software prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. The development costs qualified for capitalization have been immaterial for the periods presented.

The Group also incurred development costs in connection with an internal-use ERP software to further enhance management to monitor the business. While internal and external costs incurred during the preliminary project stage are expensed as incurred, costs relating to activities during the application development stages have been capitalized. During each of the three years ended December 31, 2017, no software development costs were capitalized as intangible assets.

In addition, the Group incurred other research and development costs in relation to software used to support its operations. Any development costs qualified for capitalization were immaterial for the periods presented.

(v)

Taxation and uncertain tax positions

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements’ carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the difference is expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred tax assets if it is considered more likely than not that some portion, or all, of the deferred tax assets will not be realized. The estimation of future taxable income involves significant judgement and estimates. Based on management's estimated future taxable income, management concluded that it is more likely than not that the net operating losses carried forward can be utilized prior to their respective expiration dates. The Group adopted the guidance regarding uncertain tax positions and evaluated its open tax positions that exist in each jurisdiction for each reporting period. If an uncertain tax position is taken or expected to be taken in a tax return, the tax benefit from that uncertain position is recognized in the Group’s consolidated financial statements if it is more likely than not that the position is sustainable upon examination by the relevant taxing authority. The Group did not have any significant uncertain tax position and there was no effect on its financial condition or results of operations as a result of implementing the new guidance. The Group recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense, if any. No significant interest and penalties were recorded in the years ended December 31, 2015, 2016 and 2017.

Transition from PRC Business Tax to PRC Value Added Tax

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 17%, the Group’s advertising revenues, subscription revenue, online game revenue, revenue from cloud computing and live video revenue are now subject to VAT at a rate of 6%.

(w)

Retirement benefits

Full-time employees of the Company’s subsidiaries, consolidated VIE and its subsidiaries in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the subsidiaries and VIEs of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts from continuing operations for such employee benefits, which are expensed as incurred, were USD 5,176,000, USD 8,645,000 and USD 10,123,000 for the years ended December 31, 2015, 2016 and 2017, respectively.

(x)

Share-based compensation

The Group measures share-based compensation at the grant date based on the fair value of the award determined using the Black-Scholes option pricing model. As the Group has granted share options and restricted shares with service-only condition, the Group elected to recognize compensation costs net of estimated forfeitures on a straight line basis over the requisite service period, which is generally the same as the vesting period. The amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is vested at that date.

(y)

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.

(z)

Segment reporting

The Group’s Chief Executive Officer has been identified as the chief operating decision maker (“CODM”), who reviews consolidated operating results of the Group when making decisions about allocating resources and assessing performance of the Group as a whole. The Group has internal reporting of revenue, cost and expenses that does not distinguish between segments, and reports costs and expense by nature as a whole. The Group does not distinguish between markets or segments for the purpose of internal reporting. Management has determined that the Group operates and manages its business as a single segment which is the operation of its online media platform. All revenues of the Group are derived from mainland China.

An analysis of the different types of revenues for the years ended December 31, 2015, 2016 and 2017 are summarized as follows:

Revenue from continuing operations	Years ended December 31,
(In thousands)	2015		2016		2017
Subscription revenue		82,435		90,163		84,956
Advertising revenue		4,802		16,874		22,484
Product revenue (note a)		2,512		4,543		32,894
Other internet value-added services (note b)		15,088		29,405		61,577
Total		104,837		140,985		201,911

note a:

Product revenue mainly comprise of sales of ZQB and OneThing Cloud devices.

note b:

Other internet value-added services mainly comprise of CDN revenue, live video services, provision of technical services, traffic referral programs, and online game revenue.

The Group is entitled to receive a mutually agreed revenue sharing of the net advertising income, with reference to market price, generated by Beijing Xiaomi Mobile Software on a products pre-installed with the technology solution provided by the Group for the period from January 2016 to mid-June 2017 totaling USD 5.8 million, which was recognized as revenue in 2017 (note 20).

(aa)

Net income / (loss) per share

Net basic income / (loss) per share is computed by dividing net income / (loss) attributable to holders of common shares by the weighted-average number of common shares outstanding during the year using the two class method. Using the two class method, net income / (loss) is allocated between common shares and other participating securities based on their participating rights.

Net diluted income / (loss) per share is calculated by dividing net income / (loss) attributable to common shareholders as adjusted for the effect of dilutive common equivalent shares, if any, by the weighted-average number of common and dilutive common equivalents shares outstanding during the year. Dilutive equivalent shares are excluded from the computation of diluted income / (loss) per share if their effects would be anti-dilutive. Common share equivalents consist of the common shares issuable upon the conversion of the stock options, using the treasury stock method.

(bb)

Comprehensive income

Comprehensive income is defined as the change in equity of a Group during the period from transactions and other events and circumstances excluding transactions resulting from investments from shareholders and distributions to shareholders. Accumulated other comprehensive income, as presented on the accompanying consolidated balance sheets, consists of cumulative translation adjustment.

(cc)

Profit appropriation and statutory reserves

The Group’s subsidiaries, consolidated VIE and its subsidiaries incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax profit determined in accordance with PRC accounting standards and regulations (“PRC GAAP”). Appropriation to the statutory general reserve should be at least 10% 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.

The following table presents the balances of registered capital, additional paid-in-capital and statutory reserves of entities within the Group incorporated in China as of December 31, 2016 and 2017 for the Group’s reporting purpose in China as determined under generally accepted accounting principles in China:

(In thousands)	December 31, 2016		December 31, 2017
Paid-in capital		118,733		137,194
Additional paid-in capital		161		161
Statutory reserves		5,132		5,132
Total		124,026		142,487

Relevant laws and regulations permit payments of dividends by the PRC subsidiaries and affiliated companies only out of their retained earnings, if any, as determined in accordance with respective accounting standards and regulations. Accordingly, the above balances are not allowed to be transferred to the Company in terms of cash dividends, loans or advances (See also Note 27).

(dd)

Dividends

Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2015, 2016 and 2017, respectively. The Group does not have any present plan to pay any dividends on common shares in the foreseeable future. The Group currently intends to retain the available funds and any future earnings to operate and expand its business.

(ee)

Recent accounting pronouncements

In November 2015, the FASB issued ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes. ASU 2015-17 simplifies the presentation of deferred income taxes, which require the deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for fiscal years and interim periods within those years beginning after December 15, 2016. The Group has adopted this ASU for the year ended December 31 2017 and present the deferred tax assets and liabilities as non-current. Prior periods were not retrospectively adjusted.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance will impact the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified the need for a valuation allowance on deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The accounting for other financial instruments, such as loans, investments in debt securities, and financial liabilities not under the fair value option is largely unchanged. The standard is effective for public business entities for annual periods (and interim periods within those annual periods) beginning after December 15, 2017. For equity investments (except those accounted for under the equity method) with no readily determinable fair value, the Group has elected to continuously apply cost method less impairment. However, the Group will closely monitor if any changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2018. Early adoption is permitted. The Group is currently evaluating the impact ASU2016-02 will have on the Group consolidated balance sheet, results of operations, cash flows and related disclosures.

The FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), on August 26, 2016, and ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (a consensus of the Emerging Issues Task Force), on November 17, 2016. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. For public business entities, both ASUs are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted for ASU 2016-18. Early adoption is also permitted for ASU 2016-15 provided that all of the amendments are adopted in the same period. Both ASUs require application using a retrospective transition method. The Group believes the adoption will not have material impact on the Group cash flows and related disclosures.

In 2016, the FASB and IASB issued several amendments and clarifications to the new revenue standards, primarily as a result of issues raised by stakeholders and discussed by the Transition Resource Group. Amendments were made to the guidance related to the principal versus agent assessment, identifying performance obligations, accounting for licenses of intellectual property, and other matters (such as the definition of completed contracts at transition, the addition of new practical expedients, and various technical corrections). As amended, the FASB's standard is effective for public entities for the first interim period within annual reporting periods beginning after December 15, 2017 (nonpublic companies have an additional year). The FASB’s standard will allow early adoption, but no earlier than the original effective date for public entities (reporting periods beginning after December 15, 2016). The IASB’s standard, as amended, is effective for the first interim period within annual reporting periods beginning on or after January 1, 2017, with early adoption permitted.

The core principle of the guidance is that an entity should recognize revenues to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps:

Step 1: Identify the contract(s) with a customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the transaction price.

Step 4: Allocate the transaction price to the performance obligations in the contract.

Step 5: Recognize revenues when (or as) the entity satisfies a performance obligation.

The Group has performed a thorough assessment of the impact of new revenue standard and identified differences which may impact on the Group’s consolidated financial statements, including but not limited to, the revenue recognition for membership subscription and live video revenue.

⋅

Rights from membership upgrade shall be considered as a separately identifiable benefit and accounted for separately. A small portion of revenue received for membership subscription will be allocated to the rights of membership upgrade and impact on the timing of recognizing the revenue. However, based on the assessment, the impact is considered to be immaterial.

⋅

Free virtual items on the live video platforms shall be considered as a separate performance obligation per and accounted for separately. A small portion of revenue received in respect of live video platforms will be allocated to the free virtual items and impact on the timing of recognizing the revenue. However, based on the assessment, the impact is considered to be immaterial.

The Group will be adopting the new standard effective January 1, 2018, using the modified retrospective method. Based on the results of management’s assessment described above, the impact upon adoption is immaterial. Accordingly, management does not expect to recognize any adjustment upon initial application.

In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The standard should be applied prospectively on or after the effective date. The Group is currently evaluating the impact ASU2017-01 will have on the Groups consolidated balance sheet, results of operations, cash flows and related disclosures.

In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group has early adopted the standard for the year ended December 31, 2017.

In May 2017, the FASB issued ASU 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in ASC 718. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The new guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The Group is evaluating the effects, if any, of the adoption of this guidance on the Groups consolidated balance sheet, results of operations, cash flows and related disclosures.

Discontinued operations

12 Months Ended

Dec. 31, 2017

Discontinued operations [Abstract]

Cash and cash equivalents [Abstract]

3.	Discontinued operations

(a)

Disposal of Xunlei Kankan

In July 2015, the Company completed the divesture of the Company’s entire stake in its online video streaming platform, Xunlei Kankan to Beijing Nesound International Media Corp., Ltd. (“Nesound”), an independent third party. The total sales price was RMB 130,000,000 (equivalent to approximately USD 19,896,000) (note 7). The disposal is due to a shift of strategy focusing on the Group’s most competitive operations.

Assets and liabilities related to Xunlei Kankan were reclassified as assets/liabilities held for sale as of December 31, 2014, while results of operations related to Xunlei Kankan, including comparatives, were reported as loss from discontinued operations.

Results of the discontinued operation

USD (In thousands)	2015		2016		2017
Revenues, net of rebates and discounts		15,677		—		—
Business taxes and surcharges		(447)		—		—
Net revenues		15,230		—		—
Cost of revenues		(13,240)		—		—
Gross profit		1,990		—		—
Operating expenses						—
Research and development expenses		(3,245)		5		—
Sales and marketing expenses		(7,384)		(27)		—
General and administrative expenses		(3,051)		(221)		—
Total operating expenses		(13,680)		(243)		—
Net gain from exchanges of content copyrights		137		—		—
Operating loss		(11,553)		(243)		—
Gain on disposal of Kankan		1,505		—		—
Income tax credit/(expenses)		(2,048)		36		—
Loss from discontinued operations		(12,096)		(207)		—

Cash flows generated from/ (used in) discontinued operations

USD (In thousands)	2015		2016		2017
Net cash used in operating activities		(1,554)		(215)		—
Net cash generated from investing activities		9,135		—		—
Net cash used in financing activities		—		—		—
Net cash flow for the year		7,581		(215)		—

The disposal of the online video streaming platform was completed on July 15, 2015 and a gain of USD 1,505,000 was recognized.

(b)

Disposal of web game business

In December 2017, the Company signed a contract (“Disposal Agreement”) to divest its web game business, a major line of the Group’s online game business, to Shenzhen Xunyi Network Technology Corp., Ltd. (“Buyer”), a company operated by a few former core members of Xunlei’s web game business. The total sales price was RMB 4,180,000 (equivalent to approximately USD 640,000). The disposal is due to a shift of strategy to allow the Group better manage its internal resources, including internal traffic referral and corporate allocation.

As part of the disposal and according to the Disposal Agreement, Xunlei agreed to assist the Buyer to collect and pay certain receivables and payables of the web game business for a period of no longer than one year after the completion of disposal. In addition, the Buyer agreed to enter into business cooperation services with Xunlei, including purchase of advertising services for not less than RMB 8,000,000 (equivalent to approximately USD 1,225,000) in the next 24 months, after signing the Disposal Agreement, under a separate negotiated term. Relevant business cooperation agreements have been signed in January 2018 at market term.

Assets and liabilities related to web game business were reclassified as assets/liabilities held for sale as of December 31, 2017, while results of operations related to web game, including comparatives, were reported as income from discontinued operations. Internal traffic referral and corporate allocation is not included in results of discontinued operation.

Results of the discontinued operation

USD (In thousands)	2015		2016		2017
Revenues, net of rebates and discounts		25,160		15,981		11,428
Business taxes and surcharges		(45)		(25)		(27)
Net revenues		25,115		15,956		11,401
Cost of revenues		(785)		(391)		(522)
Gross profit		24,330		15,565		10,879
Operating expenses
Research and development expenses		(2,488)		(3,192)		(2,217)
Sales and marketing expenses		(2,631)		(4,180)		(1,025)
General and administrative expenses		(155)		(159)		(99)
Total operating expenses		(5,274)		(7,531)		(3,341)
Operating income		19,056		8,034		7,538
Income tax expenses		(2,859)		(1,204)		(1,131)
Income from discontinued operations		16,197		6,830		6,407

Assets and liabilities of the discontinued operation

USD (In thousands)	2016		2017
Property and equipment, net		20		26
Total assets held for sale		20		26

Deferred revenue, current portion		1,338		822
Total liabilities held for sale		1,338		822

Cash flows generated from/ (used in) discontinued operations

USD (In thousands)	2015		2016		2017
Net cash generated from operating activities		15,286		5,492		5,585
Net cash used in investing activities		(1)		(12)		(13)
Net cash used in financing activities		—		—		—
Net cash flow for the year		15,285		5,480		5,572

(c)

Results of discontinued operations

The disposal of the web game business was completed in January 2018 resulting in a disposal gain of approximately USD 1,400,000.

Results of the discontinued operation

USD (In thousands)	2015		2016		2017
Operating loss of Xunlei Kankan		(11,553)		(243)		—
Gain on disposal of Kankan		1,505		—		—
Operating income of web game business		19,056		8,034		7,538
Total income from discontinued operations before income tax		9,008		7,791		7,538
Xunlei Kankan - Income tax (expenses)/benefit		(2,048)		36		—
Web game business - Income tax expenses		(2,859)		(1,204)		(1,131)
Total income tax expense from discontinued operations		(4,907)		(1,168)		(1,131)
Total net profit from discontinued operations		4,101		6,623		6,407

Cash and cash equivalents

12 Months Ended

Dec. 31, 2017

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, 2016 and 2017 primarily consist of the following currencies:

	December 31, 2016				December 31, 2017
(In thousands)	Amount		USD equivalent		Amount		USD equivalent
RMB		538,660		77,651		436,794		66,847
USD		121,726		121,726		166,530		166,530
HKD		987		127		794		102
Total				199,504				233,479

As at December 31, 2016 and 2017, included in the cash and cash equivalents are time deposits with original maturities of three months or less, of USD 115,944,000 and USD 115,534,000, primarily consist of USD.

Accounts receivable, net

12 Months Ended

Dec. 31, 2017

Accounts receivable, net [Abstract]

6.	Accounts receivable, net

(In thousands)	December 31, 2016		December 31, 2017
Accounts receivable		14,655		40,663
Less: Allowance for doubtful accounts		(119)		(31)
Accounts receivable, net		14,536		40,632

The following table presents movement in the allowance for doubtful accounts:

(In thousands)	December 31, 2015		December 31, 2016		December 31, 2017
Balance at beginning of the year		131		126		119
Additions		4		—		27
Write-off		—		—		(122)
Exchange difference		(9)		(7)		7
Balance at end of the year		126		119		31

The top 10 customers accounted for about 76% and 86% of accounts receivable as of December 31, 2016 and 2017, respectively.

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

Prepayments and other assets [Abstract]

Prepayments and other assets

12 Months Ended

Dec. 31, 2017

Prepayments and other assets

7.	Prepayments and other assets

(In thousands)	December 31, 2016		December 31, 2017
Current portion:
Advance to suppliers (note a)		2,392		672
Interest-free loans to employees (note c)		3,964		3,670
Advance to employees for business purposes		351		503
Interest receivable		210		313
Rental and other deposits		1,014		1,232
Prepaid management insurance		145		161
Receivable from Nesound (note b)		3,748		181
Prepayment for taxation		1,392		12
Others		377		122
Total of prepayments and other current assets		13,593		6,866
Non-current portion:
Prepayments for online game licenses		490		—
Low-interest loans to employees, non-current portion (note c)		697		416
Prepayment for investment (note d)		—		1,469
Total of long-term prepayments and other assets		1,187		1,885

Note a:

Advances to suppliers primarily include prepaid rental expenses, license costs and game sharing costs. During the year ended December 31, 2017, prepaid license costs of USD 535,000 was impaired, which was related to Kankan as disclosed in note b.

Note b:

Kankan failed to settle the transferred trade payables, which resulted in the creditors brought litigation against Kankan as well as Xunlei, due to the fact that Xunlei remained as the contracted party in the relevant purchase contracts. In light of this, Xunlei has settled these payables on behalf of Kankan. Up to December 31, 2015, 2016 and 2017, payables amounted to RMB 3,498,000 (USD 539,000), RMB 3,498,000 (USD 504,000) and RMB 33,388,000 (USD 5,110,000) were settled by Xunlei on behalf of Kankan respectively. In addition, as of December 31, 2017, unsettled balance of these transferred payables amounted to approximately RMB 18,094,000 (USD 2,769,000).

The Group has brought a claim against Nesound to the arbitration tribunal and considered the balances are recoverable as of December 31, 2016. With the progress of litigation in 2017, the Group considered the recoverability of the receivables from Nesound and amount settled on behalf of Kankan are remote. Thus, impairment of USD 3,719,000 and USD 5,004,000 have been provided for against the receivables from Nesound and amount settled on behalf of Kankan as “Assets impairment loss”, in addition, the Group also accrued USD 3,074,000 in respect of unsettled balance of transferred payables in 2017 (note 13) as legal expenses. As of December 31, 2017, balance of this accrual was USD 2,769,000.

Note c:

The Group had entered into loan contracts with certain employees as at December 31, 2016 and 2017, 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 the term 8 to 10 years. The balances classified as current represented loan amounts are repayable on demand or repayable within the next twelve months from the balance sheet date.

Note d:

The Group paid USD 1,469,000 to Henan Zhaoteng Investment Co., Ltd. for acquisition of 80% equity interest of Henan Tourism Information Co., Ltd. However, as the legal procedure of the investment has not completed up to December 31, 2017, the investment is classified as long-term prepayment.

Property and equipment

12 Months Ended

Dec. 31, 2017

Property and equipment [Abstract]

Property and equipment

8.	Property and equipment

Property and equipment consist of the following:

(In thousands)	December 31, 2016		December 31, 2017
Servers and network equipment		42,597		49,582
Computer equipment		1,538		1,785
Furniture, fixtures and office equipment		845		850
Motor vehicles		299		273
Leasehold improvements		2,793		3,157
Total original costs		48,072		55,647
Less: Accumulated depreciation		(27,650)		(35,459)
Less: Impairment		—		(20)
Sub-total		20,422		20,168
Construction in progress		574		4,517
Total		20,996		24,685

Depreciation expense recognized for the years ended December 31, 2015, 2016 and 2017 are summarized as follows:

(In thousands)	December 31, 2015		December 31, 2016		December 31, 2017
Cost of revenues		4,873		5,848		7,647
General and administrative expenses		628		306		277
Sales and marketing expenses		7		5		—
Research and development expenses		8		6		24
Total		5,516		6,165		7,948

Impairment loss of USD 20,000 has been recognized for the year ended December 31, 2017. No impairment loss was recognized for the years end December 31, 2015 and 2016.

Intangible assets, net

12 Months Ended

Dec. 31, 2017

Intangible assets, net [Abstract]

9.	Intangible assets, net

	December 31, 2016								December 31, 2017
(In thousands)	Cost		Amortization		Impairment		Net book value		Cost		Amortization		Impairment		Net book value
Land use rights		4,796		(543)		—		4,253		5,092		(746)		—		4,346
Trademarks (note a)		5,441		(1,814)		—		3,627		5,776		(2,544)		(3,232)		—
Non-compete agreement (note a)		1,325		(773)		—		552		1,407		(1,085)		(322)		—
Technology (including right-to-use) (note a)		2,117		(617)		—		1,500		2,247		(866)		(1,381)		—
Acquired computer software		884		(420)		—		464		1,981		(1,084)		—		897
Internal use software development costs		631		(631)		—		—		670		(670)		—		—
Online game licenses (note b)		5,454		(4,383)		(721)		350		6,309		(5,276)		(765)		268
		20,648		(9,181)		(721)		10,746		23,482		(12,271)		(5,700)		5,511

Note a:

With the launch of new cloud technology developed by the Group in 2017, the acquired intangible assets related to personal cloud storage business, arising from the acquisition of Kingsoft Cloud Holdings Limited in 2014, were no longer in use and full provision for impairment has been provided.

Note b:

As of December 31, 2016 and 2017, full provision for impairment has been provided for an online game license due to significant under performance in the past.

Amortization expense recognized for the years ended December 31, 2015, 2016 and 2017 are summarized as follows:

	Years ended December 31
(In thousands)	2015		2016		2017
Cost of revenues		147		243		241
General and administrative expenses		386		323		415
Research and development expenses		1,589		1,497		1,445
Total		2,122		2,063		2,101

The estimated aggregate amortization expense for each of the next five years as of December 31, 2017 is:

(In thousands)	Intangible assets
2018		697
2019		405
2020		338
2021		312
2022 and thereafter		3,759

The weighted average amortization periods of intangible assets as at December 31, 2016 and 2017 are as below:

(In year)	December 31, 2016		December 31, 2017
Land use right		30		30
Trademarks		7		7
Non-compete agreement		4		4
Technology (including right-to-use)		8		8
Acquired computer software		5		5
Internal use software development costs		5		5
Online game licenses		3		3
Total weighted average amortization periods		11		11

Inventories

12 Months Ended

Dec. 31, 2017

Inventories [Abstract]

Deferred revenue and income [Abstract]

10.

Inventories

(In thousands)	December 31, 2016		December 31, 2017
Hardware devices (note a)		183		3,546
Others		191		333
Total		374		3,879

Note a:

Hardware devices include OneThing Cloud, ZQB, XZB and hard discs.

OneThing Cloud is a hardware, which can be used as remote downloader, personal cloud storage and file management device. It can also act as a micro server between users and Xunlei, which enables users to share their idle uplink capacity with Xunlei, in return Xunlei will issue them “LinkToken” as a reward for exchange of idle uplink capacity.

XZB is a personal cloud hardware, which can remotely control downloading through mobile phones or computers, to expand storage of terminals unlimitedly and share data in cloud storage.

ZQB, a proprietary hardware connected to users’ network routers, can allocate users’ idle uplink capacity to the Company for further allocation to internet content providers. Similar to OneThing Cloud, Xunlei will issue users Crystal points as a reward for exchange of idle uplink capacity.

No inventory provision is charged for the years ended December 31, 2016 and 2017.

Long-term investments

12 Months Ended

Dec. 31, 2017

Long-term investments [Abstract]

Long-term investments

11.

Long-term investments

(In thousands)	December 31, 2016		December 31, 2017
Equity method investments:
Balance at beginning of the year		2,162		1,790
Additions		1,442		—
Disposal		(701)		—
Share of loss from equity investees (iv)		(195)		(1,875)
Dilution gains arising from deemed disposal of investments (iv)		—		326
Transfer to cost method investments		(786)		—
Exchange differences		(132)		70
Balance at end of the year		1,790		311
Cost method investments:
Balance at beginning of the year		9,157		39,002
Additions (i)		32,707		2,793
Disposal (ii)		(2,220)		(383)
Dilution gains arising from deemed disposal of investment (iii)		689		165
Transfer from equity method investments		786		—
Exchange difference		(463)		1,449
Less: impairment loss on long-term investments (v)		(1,654)		(596)
Balance at end of the year		39,002		42,430

Total long-term investments		40,792		42,741

Details of the Group’s ownership are as follows:

	Percentage of ownership of shares as of December 31,
Investee	2016			2017
Equity method investments:
Zhuhai Qianyou Technology, Co., Ltd. (“Zhuhai Qianyou”)		19.00	%		19.00	%
Shenzhen Mojingou Information Service Co., Ltd. (previously known as Xunlei Big Data Information Service Co., Ltd.) (“Big Data”) (iv)		43.16	%		28.77	%
Cost method investments:
Guangzhou Yuechuan Network Technology, Co., Ltd. (“Guangzhou Yuechuan”)		9.30	%		9.30	%
Shenzhen Kushiduo Network Science and Technology Co., Ltd. (“Shenzhen Kushiduo”) (ii)		10.00	%		—
Shanghai Guozhi Electronic Technology Co., Ltd. (“Shanghai Guozhi”) (v)		16.80	%		16.80	%
Guangzhou Hongsi Network Technology Co., Ltd. (“Guangzhou Hongsi”) (v)		19.90	%		19.90	%
Chengdu Diting Technology, Co., Ltd. (“Chengdu Diting”)		12.74	%		12.74	%
Xiamen Diensi Network Technology Co., Ltd. ("Xiamen Diensi")		14.25	%		14.25	%
11.2 Capital I, L.P. ("11.2 Capital")		2.03	%		2.03	%
Cloudtropy		9.69	%		9.69	%
Shanghai Lexiang Technology Co., Ltd. ("Shanghai Lexiang") (iii)		15.00	%		14.12	%
Hangzhou Feixiang Data Technology Co., Ltd. ("Hangzhou Feixiang") (i)		20.00	%		28.00	%
Shenzhen Meizhi Interactive Technology Co., Ltd. ("Meizhi Interactive")		8.13	%		9.40	%
Beijing Yunhui Tianxia Technology Co., Ltd. ("Yunhui Tianxia") (i)		7.50	%		13.70	%
Arashi Vision Interative (Cayman) Inc. ("Insta 360")		12.16	%		12.16	%
Cloudin Technology (Cayman) Limited ("Cloudin")		4.61	%		4.61	%

(i)

In May 2017, the Group made additional investment by USD 1,263,000 in Yunhui Tianxia from 7.5% to 13.7%. In July 2017, the Group also made additional equity investment in Hangzhou Feixiang of USD 1,530,000. As the result of the new investment, the Group’s equity interest increased from 20% to 28% and the Group continued to use the cost method to account for this investment due to the lack of significant influence over the investee as the company's investment is not in-substance common stock.

(ii)

In June 2017, the Group disposed of its entire interests (10%) in Shenzhen Kushiduo with a carrying value of USD 383,000 at a consideration of approximately USD 191,500. As a result of the disposal, the Group recognized a loss of USD 191,500 in the other income, net (Note 23).

(iii)

In January of 2017, Shanghai Lexiang issued new shares to a third party investor resulting in the Group’s interest in Shanghai Lexiang diluted from 15% to 14.12% with a dilution gain of USD 222,000 arising from the deemed disposal.

(iv)

(v)	The Group recognized impairment against its investments in Shanghai Guozhi and Guangzhou Hongsi of USD 149,000 and USD 447,000, respectively after considering the latest operation status and financial and liquidity position.

Deferred revenue and income

12 Months Ended

Dec. 31, 2017

Deferred revenue and income

12.

Deferred revenue and income

(In thousands)	December 31, 2016		December 31, 2017
Deferred revenue
Membership subscription revenues		22,115		26,303
Online game revenues		152		174
Others (i)		—		384
Deferred income
Government grants (ii)		4,195		3,811
Reimbursement from the depository (iii)		814		616
Total		27,276		31,288
Less: non-current portion (iv)		(4,082)		(3,242)
Deferred revenue and income, current portion		23,194		28,046

(i)

Others include live video revenues and issuance of LinkTokens.

(ii)

In June 2017, the Group received government grant of USD 1,224,000. This government grant was recognized as deferred income and amortized in 5 years under the property, plant and equipment depreciation policy.

(iii)

In December 2017, the Company received from its depositary bank a reimbursement of USD 127,000, net of withholding tax of USD 42,000. This reimbursement was recognized as deferred income and amortized over the depositary service period of 5 years.

(iv)	As of December 31, 2017, the non-current portion included membership subscription revenue of USD 425,000 (2016: USD 820,000), government grants of USD 2,509,000 (2016: USD 2,719,000), and reimbursement from the depositary of USD 308,000 (2016: USD 543,000).

Accrued liabilities and other payables

12 Months Ended

Dec. 31, 2017

Accrued liabilities and other payables [Abstract]

Accrued liabilities and other payables

13.

Accrued liabilities and other payables

(In thousands)	December 31, 2016		December 31, 2017
Payroll and welfare (note b)		11,624		15,170
Agency commissions and rebates—online advertising		2,297		2,890
Payables for advertisement on exclusive online games		1,521		1,826
Receipts in advance from customers (note a)		5,538		16,833
Tax levies (note b)		1,864		10,234
Payables for purchase of equipment		3,235		461
Legal and litigation related expenses (note 24)		2,904		1,755
Professional fees		1,007		1,045
Staff reimbursements		452		355
Rental expense		5		—
Payables for proceeds from selling exercised stock options		352		74
Payables for gaming distribution		147		199
Payables related to Kankan (note c)		807		4,501
Payables for technological services		234		944
Payables for construction in progress		—		345
Customer’s deposit		—		306
Payables for fulfillment services		—		298
Others		1,144		2,635
Total		33,131		59,871

note a:

As at December 31, 2017, receipts in advance from customers mainly represents prepayment from customers in respect of cloud computing, live video and mobile game. The increment is mainly driven by the popularity of OneThing Cloud.

Note b:

Payroll and welfare increased due to the performance bonus proposed in December 2017, resulting in an increase in individual income tax payable. Value added tax payable also increased, which is related to revenue increment in sale of product.

Note c:

Kankan failed to settle the transferred trade payables, which resulted in the creditors brought litigation against Kankan as well as Xunlei, due to the fact that Xunlei remained as the contracted party in the relevant purchase contracts. In light of this, for the year ended December 31, 2017, payables of USD 3,074,000 was accrued by Xunlei, out of which, USD 2,769,000 remain unsettled as of December 31, 2017 (note 7).

As at December 31, 2017, payables related to Kankan also include USD 1,732,000 collected by Xunlei on behalf of Kankan, related to receivables transferred to Kankan, pursuant to the sale and purchase agreement of Kankan Disposal.

Common shares

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Common shares

15.

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, 2017. 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, 2016 and 2017, there were 330,545,000 and 333,643,560 common shares outstanding, respectively.

Repurchase of shares

12 Months Ended

Dec. 31, 2017

Repurchase of shares [Abstract]

Repurchase of shares

16.

Repurchase of shares

The following table is a summary of the shares repurchased by the Company during 2015, 2016 and 2017 under the Repurchase Program. No shares were repurchased during 2015, 2016 and 2017 except during the months indicated and all shares were purchased through privately negotiated transactions as a mean of exercising share options from Xunlei’s employees and publicly purchasing from the open market pursuant to the Repurchase Program:

Period	Total Number of ADSs Purchased as Part of the Publicly Announced Plan		Average Price Paid Per ADS
March 15 – March 30		408,985		6.22
April 1– April 14		457,900		6.61
May 2 – May 31		449,696		6.28
June 9 – June 30		111,459		5.24
July 1 – July 29		555,357		5.33
August 1 – August 30		229,695		5.83
September 6 – September 30		15,467		5.33
October 13 - October 27		31,400		5.11
November 18 – November 30		21,229		4.61
December 2 – December 30		173,312		4.02
Total for the year ended December 31, 2016		2,454,500

January 13		994		4.34
February 10		5,553		3.75
March 7 – March 31		86,523		3.86
Total for the year ended December 31, 2017		93,070

Note a

In January 2016, the board of directors of the company authorized a share repurchase program, whereby the Company may repurchase up to USD20 million of common shares or ADSs from January 27, 2016 for twelve months through the same means as the Repurchase Program. The share repurchases may be made in accordance with applicable laws and regulations through open market transactions, privately negotiated transactions or other legally permissible means as determined by management, including through Rule 10b5-1 share repurchase plans.

Note b

During the years ended December 31, 2015, 2016 and 2017, nil, 2,454,500 and 93,070 ADSs purchased at an aggregate consideration of nil, USD 14,319,000 and USD 358,820 under the Repurchase Program. Due to the expiration of the Repurchase Program, the remaining unused amount of approximately USD 5.3 million was no longer available for repurchase after December 31, 2017.

Non-controlling interest

12 Months Ended

Dec. 31, 2017

Non-controlling interest [Abstract]

Non-controlling interest

17.

Non-controlling interest

Non-controlling interest includes the interest owned by a shareholder of the Company in a subsidiary of the consolidated VIE.

In February 2010, Shenzhen Xunlei set up a new subsidiary named Xunlei Games Development (Shenzhen) Co., Ltd. (“Xunlei Games”) and holds 70% of its equity interest. A shareholder of the Company contributed RMB 3,000,000 (equivalent to USD 439,000) and holds 30% equity interest in Xunlei Games, which was accounted for as a non-controlling interest of the Group.

Share-based compensation

12 Months Ended

Dec. 31, 2017

Share-based compensation [Abstract]

Share-based compensation

18.

Share-based compensation

2010 share incentive plan

During the years presented, the Company granted share options to employees, officers and directors of the Group.

These options were granted with exercise prices denominated in the USD, which is the functional currency of the Company. The maximum term of any issued stock option is seven or ten years from the grant date. Stock options granted to employees and officers vest over a four-year schedule as stated below:

(1)	One-fourth of the options shall be vested upon the first anniversary of the grant date;

(2)	The remaining three quarters of the options shall be vested on monthly basis over the next thirty-six months. (¹/₄₈ of options shall be vested per month subsequently)

Stock 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 December 2010, the Group adopted a share incentive plan, which is referred to as the 2010 Share Option Plan (“the 2010 Plan”). The purpose of the plan is to attract and retain the best available personnel by linking the personal interests of the members of the board, employees, and consultants to the success of the Group’s business and by providing such individuals with an incentive for outstanding performance to generate superior returns for our shareholders. Under the 2010 Plan, the maximum number of shares in respect of which options, restricted shares, or restricted share units may be granted is 26,822,828 shares (excluding the share options previously granted to the directors who are the founders of the Company). The amount of shares available for such grants as of December 31, 2017 is 2,627,465.

On June 11, 2014, the board of directors of the company decided to extend the contractual life for certain vested share options to June 11, 2015, because the maturity date of these options was from June to December in 2014, whereas, the lock-up period for the shares was 6 months from the IPO closing date, i.e. June 24, 2014, which would result in the expiration of these options before the exercise. The incremental share-based compensation of USD 768,000 is recognized at the time of modification.

In the business combination of personal cloud storage business completed on September 5, 2014, the Group granted share options under the 2010 Plan to replace the unvested awards owned by the employees who are transferred to the Group, the portion of the fair-value-based measure of the replacement award attribute to pre-combination service of USD 303,000 was allocated to the consideration, while the portion attribute to post-combination service of USD 44,000 was recorded as share based compensation expense over the remaining vesting period.

On December 1, 2014, the board of directors of the company approved the conversion of certain vested and unvested share options with relatively high exercise price into restricted shares. In this conversion, 3,776,711 share options were cancelled and 1,505,787 restricted shares were granted. The incremental share-based compensation of USD 2,214,000 is recorded over the remaining vesting period of 2 to 4.5 years.

In November 2014, the Company issued to a depositary bank for American Depositary Shares, 10,000,000 common shares, which were reserved for the future exercise of share options or vesting of restricted shares.

The following table summarizes the share option activity for the years ended December 31, 2015, 2016 and 2017:

							Weighted
					Weighted-		average
			Weighted		average		remaining		Aggregate
			average		grant-date		contractual		intrinsic
	Number of		exercise		fair		life		value (In
	share options		price (USD)		value (USD)		(years)		thousands)
Outstanding, December 31, 2015		2,130,820		2.13
Vested and expected to vest at December 31, 2015		1,008,645		1.76		0.73		4.62		464
Exercisable at December 31, 2015		1,430,870		2.16		0.86		4.03		406
Forfeited		(14,375)		3.21
Expired		(182,510)		2.22
Exercised		(440,465)		1.81
Outstanding, December 31, 2016		1,493,470		2.65				3.39		6
Vested and expected to vest at December 31, 2016		1,440,923		2.67		0.85		3.24		6
Exercisable at December 31, 2016		1,217,050		2.70		0.84		3.20		6
Forfeited		(109,925)		2.89
Expired		(989,730)		2.28
Exercised		(4,000)		0.83
Outstanding, December 31, 2017		389,815		3.90		—		4.64		—
Vested and expected to vest at December 31, 2017		170,545		3.90		0.95		4.64		—
Exercisable at December 31, 2017		389,190		3.90		0.95		4.64		—

A summary of the restricted shares activities under the 2010 Plan for the years ended December 31, 2017 is presented below:

	Number of restricted shares		Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2016		432,217
Granted		1,170,000		1.18
Vested		(274,960)
Forfeited		(384,037)
Unvested at December 31, 2016		943,220
Vested and expected to vest at December 31, 2016		801,737
Granted		2,050,000		0.69
Vested		(115,125)
Forfeited		(1,605,945)
Unvested at December 31, 2017		1,272,150
Vested and expected to vest at December 31, 2017		1,081,327

Forfeitures are estimated at the time of grant. If necessary, forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates. Based upon the Company’s historical and expected forfeitures for stock options granted, the directors of the Company estimated that its future forfeiture rate would be 20% for employees and nil for directors and advisors.

The aggregate intrinsic value in the table above represents the difference between the estimated fair value of the Company’s common shares as of December 31, 2016 and 2017 and the exercise price.

Total fair values of share options vested as of December 31, 2016 and 2017 were USD 6,831,000 and USD 6,963,000, respectively.

As of December 31, 2016 and 2017, there were USD 1,358,000 and USD 167,000 of unrecognized share-based compensation costs related to share options, which were expected to be recognized over a weighted-average vesting period of 3.20 and 4.64 years, respectively. To the extent the actual forfeiture rate is different from the Company’s estimate, the actual share-based compensation related to these awards may be different from the expectation.

The Black-Scholes option pricing model is used to determine the fair value of the stock options granted to employees. The fair values of stock options granted during the years ended December 31, 2016 and 2017 were estimated using the following assumptions:

Options granted to employees

Years ended December 31,	2016			2017
Risk-free interest rate⁽¹⁾		0.77% to 1.76	%		0.77% to 1.76	%
Dividend yield⁽²⁾		—			—
Volatility rate⁽³⁾		40.07% to 43.3	%		40.07% to 43.3	%
Expected term (in years)⁽⁴⁾		4.06 to 5.56			4.06 to 5.56

(1)

The risk-free interest rate of periods within the contractual life of the share option is based on the USD denominated China Government Bond yield as at the valuation dates.

(2)

The Company has no history or expectation of paying dividends on its common shares.

(3)

Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates.

(4)

The expected term is developed by assuming the share options will be exercised in the middle point between the vesting dates and maturity dates.

2013 share incentive plan

In November 2013, the Group adopted a share incentive plan, which is referred to as the 2013 Share Incentive Plan (“the 2013 Plan”). The purpose of the plan is to motivate, attract and retain the best available personnel by linking the personal interests of senior management to the success of the Group’s business.

In November 2013, the Company issued 9,073,732 common shares to Leading Advice. Although the shares were legally issued to Leading Advice, Leading Advice does not have any of the rights of a typical common share holder. Leading Advice 1) is not entitled to dividends 2) does not have the right to vote prior to vesting and 3) does not have the right to sell the unvested portion of the awards or awards that have not been granted. In addition, upon 1) the liquidation of Leading Advice 2) the dissolution of Leading Advice and 3) the expiration of the 2013 Plan, common shares not granted as awards shall be transferred back to the Group at no consideration. Given the structure of this arrangement, while the common shares have been legally issued, the common shares issued to Leading Advice do not have the attributes of unrestricted, issued and outstanding shares. Therefore, the 9,073,732 common shares issued to Leading Advice are accounted as treasury shares until these common shares are earned by the senior management or employees for service provided to the Group.

For the awards that have been granted and become vested, Leading Advice held shares for the grantees’ benefit and exercise the voting rights on their behalf. The grantees will be entitled to dividends and have the right to request Leading Advice to transfer vested award to a transferee designated by the grantees. Shares that have been granted and vested continued to be held by and voting rights exercised by Leading Advice on behalf of the grantee at the closing of a QIPO.

Before the closing of a QIPO, the Company would have a “right of first refusal” with respect to any proposed transfer of vested restricted shares. After the closing of a QIPO, vested restricted shares may not be sold or transferred for a period of six months or a period of time determined by the underwriter (the ‘‘lock up period’’). If the grantee terminates its employment prior to the closing date of a QIPO and a trade sale, the Group would have the right to acquire the vested restricted shares from the senior officer at a market price as determined by third-party valuation experts.

Upon the closing of IPO, the administrator of the 2013 Plan was changed from Leading Advice to the Company’s compensation committee.

Under the 2013 Plan, the maximum number of restricted shares that may be granted is 9,073,732 shares.

As of December 31, 2017, 8,664,980 (2016: 8,664,980) restricted shares were granted to few senior officers.

(1)	5,098,345 of these restricted shares will vest over a four-year schedule in which one-fourth of the restricted shares shall be vested upon the first, second, third, and fourth anniversary of the grant date, respectively.

(2)	1,102,430 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 date, respectively.

(3)	854,405 of these restricted shares will vest over a forty four-month schedule in which one-fourth of the restricted shares shall be vested upon the eighth month, and three-fourth of the restricted shares shall be vested during the remaining thirty six months.

(4)	689,700 of these restricted shares will vest over a four-year schedule in which half, one-fourth, and one-fourth of the restricted shares shall be vested upon the second, third and fourth anniversary of the grant date, respectively.

(5)	640,100 of these restricted shares will vest over a two-year schedule in which half of the restricted shares shall be vested upon the first and second anniversary of the grant date, respectively.

(6)	160,000 of these restricted shares will vest over a one-year schedule in which all of the restricted shares shall be vested upon the first anniversary of the grant date.

(7)	The remaining 120,000 of these restricted shares will vest immediately upon the grant date.

A summary of the restricted shares activities under the 2013 Plan for the years ended December 31, 2015, 2016 and 2017 is presented below:

	Number of restricted shares
Unvested at January 1, 2015		7,200,778
Vested		(2,627,815)
Forfeited		(776,565)
Unvested at December 31, 2015		3,796,398
Vested and expected to vest at December 31, 2015		3,226,939
Unvested at January 1, 2016		3,796,398
Vested		(1,520,760)
Forfeited		(561,103)
Unvested at December 31, 2016		1,714,535
Vested and expected to vest at December 31, 2016		1,457,355
Unvested at January 1, 2017		1,714,535
Vested		(996,835)
Forfeited		(129,940)
Unvested at December 31, 2017		587,760
Vested and expected to vest at December 31, 2017		499,596

Forfeitures are estimated at the time of grant. If necessary, forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates.

All restricted shares granted to senior officers are measured based on their grant-date fair values. Compensation expense is recognized on a straight-line basis over the requisite service period. As of December 31, 2017, total unrecognized compensation expense relating to the restricted shares was USD 1,424,000. 60,000 restricted shares were issued to non-employees and vested as of December 31, 2016 and 2017.

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 consolidated affiliated entities. The company issued 14,195,412 common shares to Leading Advice, a company owned by the Group’s chairman and chief executive officer. The issuance of common shares was to facilitate the administration of the 2014 plan. The 2014 Plan was administered by the Company’s compensation committee.

As of December 31, 2017, 14,536,000 restricted shares were granted to certain officers and employees of the Group:

(1)

9,040,500 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 date, respectively.

(2)

5,400,000 restricted shares will vest over a four-year schedule in which one-fourth of the restricted shares shall be vested upon the first, second, third and fourth anniversary of the grant date, respectively.

(3)

9,000 restricted shares will vest over a two-year schedule in which half of the restricted shares shall be vested upon the first and second anniversary of the grant date, respectively.

(4)

The remaining 86,500 restricted shares will vest immediately on the grant date.

A summary of the restricted shares activities under the 2014 Plan for the years ended December 31, 2016 and 2017 is presented below:

	Number of restricted shares		Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2016		5,761,400
Granted		6,749,000		1.12
Vested		(1,262,200)
Forfeited		(971,900)
Unvested at December 31, 2016		10,276,300
Vested and expected to vest at December 31, 2016		8,734,855
Unvested at January 1, 2017		10,276,300
Granted		—
Vested		(2,447,950)
Forfeited		(2,022,000)
Unvested at December 31, 2017		5,806,350
Vested and expected to vest at December 31, 2017		4,935,398

Forfeitures are estimated at the time of grant. If necessary, forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates.

All restricted shares granted are measured based on their grant-date fair values. Compensation expense is recognized on a straight-line basis over the requisite service period. As of December 31, 2017, the total unrecognized compensation expense relating to the restricted shares was USD 7,448,000. 60,000 restricted shares were issued to non-employees and vested as of December 31, 2016 and 2017.

Total compensation costs recognized for the years ended December 31, 2015, 2016 and 2017 are as follows:

	Years ended December 31,
(In thousands)	2015		2016		2017
Sales and marketing expenses		131		98		88
General and administrative expenses		6,701		6,267		5,800
Research and development expenses		2,896		2,983		2,442
Total		9,728		9,348		8,330

Basic and diluted net income / (loss) per share

12 Months Ended

Dec. 31, 2017

Basic and diluted net income/ (loss) per share [Abstract]

Basic and diluted net (loss) / income per share

19.

Basic and diluted net income/ (loss) per share

Basic and diluted net income/ (loss) per share for the years ended December 31, 2015, 2016 and 2017 are calculated as follows:

(Amounts expressed in thousands of United States
dollars (“USD”), except for number of shares and per	Years ended December 31,
share data)	2015		2016		2017
Numerator:
Net loss from continuing operations		(18,567)		(30,806)		(44,216)
Net income from discontinued operations		4,101		6,623		6,407
Net loss		(14,466)		(24,183)		(37,809)
Less: Net income/(loss) attributable to the non-controlling interest		(1,299)		(72)		13
Net loss attributable to Xunlei Limited		(13,167)		(24,111)		(37,822)
Net loss attributable to Xunlei Limited’s common shareholders		(13,167)		(24,111)		(37,822)
Numerator of basic net loss per share from continuing operations		(17,268)		(30,734)		(44,229)
Numerator of basic net income per share from discontinued operations		4,101		6,623		6,407
Numerator for diluted loss per share from continuing operations		(17,268)		(30,734)		(44,229)
Numerator for diluted income per share from discontinued operations		4,101		6,623		6,407
Denominator:
Denominator for basic net loss per share-weighted average shares outstanding		335,987,595		334,155,668		331,731,963
Denominator for diluted net loss per share		335,987,595		334,155,668		331,731,963
Basic net loss per share from continuing operations		(0.0514)		(0.0919)		(0.1333)
Basic net income per share from discontinued operations		0.0122		0.0198		0.0193
Diluted net loss per share from continuing operations		(0.0514)		(0.0919)		(0.1333)
Diluted net income per share from discontinued operations		0.0122		0.0198		0.0193

The following common shares equivalents were excluded from the computation of diluted net income per common share for the periods presented because including them would have had an anti-dilutive effect:

	Years ended December 31,
	2015		2016		2017
Share options and restricted shares —weighted average		1,673,342		2,902,950		5,621,418

Related party transactions

12 Months Ended

Dec. 31, 2017

Related party transactions

20.

Related party transactions

The table below sets forth the related parties and their relationships with the Group:

Related Party		Relationship with the Group
Zhuhai Qianyou		Equity investment of the Group
Hao Cheng		Co-founder and shareholder of the Group
Chuan Wang		Director of the Company
Shenglong Zou		Co-founder and shareholder of the Group
Beijing Millet Technology Co., Ltd. (“Beijing Xiaomi”)		Company owned by a shareholder of the Group
Leading Advice Holdings Limited		Company owned by a Co-founder and shareholder of the Group
Vantage Point Global Limited		Shareholder of the Company
Aiden & Jasmine Limited		Shareholder of the Company
Kingsoft Corporation Limited		Shareholder of the Company
King Venture Holdings Limited		Principal shareholder of the Group (shareholding >=10%)
Xiaomi Venture Limited		Principal shareholder of the Group
Morningside Technology Investments Limited		Shareholder of the Group
Shenzhen Mojingou Information Service Co., Ltd.		Equity investment of the Group
Shenzhen Xunlei Finance Information Service Co., Ltd.		Subsidiary of the Group’s equity investment
Shenzhen Thunder Trade Service Co., Ltd.		Subsidiary of the Group’s equity investment
Shenzhen Thunder Economic Consulting Co., Ltd.		Subsidiary of the Group’s equity investment
Shenzhen thunderbolt Digital Technology Co., Ltd.		Subsidiary of the Group’s equity investment
Shenzhen Crystal Technology Co., Ltd.		Company owned by a Co-founder and director of the Group
Millet Communication Technology Co., Ltd. (“Millet Communication Technology”)		Company owned by a shareholder of the Group
Beijing Millet Electronic Products Co., Ltd.		Company owned by a shareholder of the Group
Beijing Millet Digital Technology Co., Ltd.		Company owned by a shareholder of the Group
Millet Technology Co., Ltd.		Company owned by a shareholder of the Group
Beijing Xiaomi Mobile Software Co., Ltd. (“Beijing Xiaomi Mobile Software”)		Company owned by a shareholder of the Group
Guangzhou Millet Information Service Co., Ltd.		Company owned by a shareholder of the Group
Shenzhen Xunyi Network Technology Corp., Ltd. (“Shenzhen Xunyi”)		Company operated by few former core members of Xunlei’s web game business

During the years ended December 31, 2015, 2016 and 2017, significant related party transactions were as follows:

	Years ended December 31,
(In thousands)	2015		2016		2017
Game sharing costs paid and payable to Zhuhai Qianyou (note a)		127		154		84
Bandwidth revenue from Millet Technology Co., Ltd.		—		316		—
Technology service revenue from Beijing Xiaomi		344		1,010		1
Bandwidth revenue from Millet Communication Technology Co., Ltd.		—		2,483		1,701
Bandwidth revenue from Beijing Xiaomi Mobile Software Co., Ltd. (note b)		—		—		2,245
Marketing expense to Millet Communication Technology Co., Ltd.		—		20		—
Advertisement revenue from Guangzhou Millet Information Service Co., Ltd.		—		—		125
Technology service revenue from Beijing Xiaomi Mobile Software Co., Ltd. (note c)		—		—		5,803
Accrued to Aiden & Jasmine Limited (note d)		54		54		54
Accrued to Vantage Point Global Limited (note d)		146		146		146

note a – The Company obtained an exclusive game operation right from Zhuhai Qianyou, which is specialized in developing online games. According to the agreement, the Company will share revenues derived by the licensed games with Zhuhai Qianyou.

note b – In 2017, 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.

note c – The Group is entitled to receive a mutually agreed percentage of net advertising revenue with reference to market price, covering a period from January 2016 to mid-June 2017, as compensation for technology solution services provided to Beijing Xiaomi Mobile Software.

note d – 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 (Founder’s company) 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 Sellers (Aiden & Jasmine Limited and Vantage Point Global Limited) have not been specifically required by the applicable governmental or regulatory authority to pay any taxes as required under the applicable laws in connection with the repurchase, after the fifth anniversary of the Closing Date, the Company will pay to the Sellers the Withheld Price with a simple interest thereon at the rate of five percent (5%) per annum (the “repayment price”) from the Closing Date. Therefore, the Withheld Price for Aiden & Jasmine Limited and Vantage Point Global Limited was USD 1,125,000 (including interest of USD 37,000) and USD 3,012,000 (including interest of USD 100,000) respectively. The interest accrued in 2017 was USD 54,000 and 146,000 for Aiden & Jasmine Limited and Vantage Point Global Limited respectively.

note e –

In December 2017, the Company signed Disposal Agreement to divest its web game business, a major line of the Group’s online game business, to Shenzhen Xunyi at a price resulted from negotiation based on commercial terms. (note 3)

As of December 31, 2015, 2016 and 2017, the amounts due to / from related parties were as follows:

(In thousands)	December 31, 2016		December 31, 2017
Amounts due to related parties
Accounts payable to Zhuhai Qianyou		45		10
Long-term payable to Aiden & Jasmine Limited		1,233		1,289
Long-term payable to Vantage Point Global Limited		3,304		3,448

(In thousands)	December 31, 2016		December 31, 2017
Amounts due from related parties
Accounts receivable from Beijing Xiaomi		95		—
Accounts receivable from Millet Communication Technology Co., Ltd.		939		—
Accounts receivable from Beijing Xiaomi Mobile Software Co., Ltd.		—		6,738
Accounts receivable from Beijing Millet Payment Technologies Limited		38		92
Accounts receivable from Guangzhou Millet Information Service Co., Ltd.		—		136
Accounts receivable from Shenzhen Xunlei Finance Information Service Co., Ltd.		5		—
Other receivable from Shenzhen Crystal Technology Co., Ltd.		6		6
Other receivable from Shenglong Zou		9		9
Other receivable from Chuan Wang		5		5

Taxation

12 Months Ended

Dec. 31, 2017

Taxation [Abstract]

Taxation

21.

Taxation

(i)

Cayman Islands

Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. Additionally, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed.

(ii)

PRC Enterprise Income Tax (“EIT”)

The PRC enterprise income tax is calculated based on the taxable income determined under the PRC laws and accounting standards.

Under the Corporate Income Tax (“CIT”) Law, which became effective on January 1, 2008, foreign invested enterprises and domestic enterprises are subject to a unified CIT rate of 25%. In accordance with the implementation rules of the CIT Law, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15% and a “Software Enterprise”(“SE”) is entitled exemption from income taxation for the first two years, counting from the year the enterprise makes profit, and reduction half for the next three years.

Shenzhen Xunlei has been recognized as HNTE under the CIT law by relevant government authorities entitled to preferential tax rate of 15% for the years ended December 31, 2015, 2016 and 2017. Onething and Wangwenhua have been recognized as HNTE under the CIT law by relevant government authorities entitled to preferential tax rate of 15% for the years ended December 31, 2017.

Xunlei Computer was further exempted from EIT for two years commencing from its first year of profitable operation after offsetting prior years’ tax losses, followed by a 50% reduction for the next three years (“2-year Exemption and 3-year 50% Reduction”). The first year of profitable operation of Xunlei Computer is 2013. Xunlei Computer is eligible for a 50% deduction for the years ended December 31, 2015, 2016 and 2017.

According to a policy of the PRC State tax bureau, enterprises that engage in research and development activities are entitled to claim 150% of the research and development expenses incurred in a year as tax deductible expenses in determining their tax assessable profits for that year, or Super Deduction. Shenzhen Xunlei has been claiming this Super Deduction for the years ended December 31, 2015, 2016 and 2017.

The other PRC subsidiaries and Consolidated VIEs are subject to a 25% EIT rate.

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, 2017, both Giganology Shenzhen and Xunlei Computer did not declare any dividend to the parent company and have determined that it has no present plan to declare and pay any dividends. The Group currently plans to continue to reinvest its subsidiaries’ undistributed earnings, if any, in its operations in China indefinitely. Accordingly, no withholding income tax was accrued or required to be accrued as of December 31, 2016 and 2017. The undistributed earnings from the Group’s PRC entities as of December 31, 2016 and 2017 amounted to USD 19,883,000 and USD 12,568,000 respectively. An estimated foreign withholding taxes of USD 1,988,000 and USD 1,257,000 would be due if these earnings were remitted as dividends as of December 31, 2016 and 2017, respectively.

Moreover, the current EIT Law treats enterprises established outside of China with “effective management and control” located in the PRC as PRC resident enterprises for tax purposes. The term “effective management and control” is generally defined as exercising overall management and control over the business, personnel, accounting, properties, etc. of an enterprise. The Company, if considered a PRC resident enterprise for tax purposes, would be subject to the PRC Enterprise Income Tax at the rate of 25% on its worldwide income for the period after January 1, 2008. As of December 31, 2017, the Company has not accrued for PRC tax on such basis. The Company will continue to monitor its tax status.

The current and deferred portions of income tax expense included in the consolidated statements of operations are as follows:

Continuing operations	Years ended December 31,
(In thousands)	2015		2016		2017
Current income tax expenses /(benefit)		289		71		(38)
Deferred income tax benefit		(4,034)		(2,540)		(2,214)
Income tax benefit		(3,745)		(2,469)		(2,252)

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

	Years ended December 31,
	2015		2016		2017
Aggregate dollar effect (In thousands)		(830)		(1,430)		(4,102)
Per share effect—basic		0.00		0.00		(0.01)
Per share effect—diluted		0.00		0.00		(0.01)

The reconciliation of total tax benefit computed by applying the respective statutory income tax rates to pre-tax loss is as follows:

Continuing operations	Years ended December 31,
(In thousands)	2015		2016		2017
Income tax benefit at PRC statutory rate (based on statutory tax rate applicable to enterprises in China)		(5,202)		(8,319)		(11,617)
Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC		2,400		2,145		1,341
Non-deductible expenses		14		12		32
Effect of Super Deduction available to Shenzhen Xunlei		—		(901)		(546)
Effect of tax holiday		1,537		2,234		4,102
Change in valuation allowance of deferred tax assets		4,750		—		6,748
Effect on deferred tax assets due to change in tax rates		(8)		—		—
Outside basis difference arising from VIE and its subsidiaries in the PRC		(2,174)		(5,743)		(652)
Expiration of tax loss		290		91		—
Others		(5,352)		8,012		(1,660)
Income tax benefit		(3,745)		(2,469)		(2,252)

The tax effects of temporary differences that give rise to the deferred tax asset and liability balances at December 31, 2016 and 2017 are as follows:

(In thousands)	December 31, 2016		December 31, 2017
Deferred tax assets, current portion:
Net operating loss carried forward (note a)		1,276		—
Amortization of intangible assets arising from intragroup transactions (note b)		51		—
Valuation allowance		(106)		—
Deferred tax assets, current portion, net		1,221		—

Deferred tax assets, non-current portion:
Net operating losses carried forward (note a)		12,093		19,246
Impairment of long-term equity investment		348		562
Allowance for advance to suppliers		576		88
Impairment of intangible assets		—		686
Impairment of property and equipment		—		151
Impairment of other receivables		—		1,938
Valuation allowance		(9,745)		(16,599)
Deferred tax assets, non-current portion, net (note d)		3,272		6,072

Deferred tax liabilities, non-current portion:
Outside basis difference (note c)		(635)		—

Upon adoption of ASU2015-17, deferred tax assets and liabilities are classified as noncurrent in the statement of financial position for the year ended December 31, 2017. Prior periods were not retrospectively adjusted.

Note a:

As of December 31, 2017, the Group had tax loss carryforwards of USD 10,314,000, which can be carried forward to offset future taxable income. The net operating tax loss carryforwards will begin to expire as follows:

(In thousands)
2018			5,721
2019			3,389
2020			555
2021			75
2022 and thereafter			574
			10,314

Note b:

Before 2008, Giganology Shenzhen sold several self-developed software at a market valuation of approximately RMB 42 million (USD 6.4 million) to Shenzhen Xunlei. Shenzhen Xunlei was entitled to capitalize the amounts as intangible assets for tax purposes and the respective amortization charges could be entitled to claim tax deduction. As a result, this transaction had created a temporary difference between the accounting base (on a group basis) and the tax base (on Shenzhen Xunlei standalone basis) and led to origination of a deferred tax asset.

Note c:

The deferred tax liabilities arising from the aggregate retained earnings and reserves of the VIE and its subsidiaries that are expected to be recovered by Giganology Shenzhen and other affiliates of the Group in the future periods, amounted to USD 2,541,000 and nil as of December 31, 2016 and 2017, respectively.

Note d:

As at December 31, 2017, the deferred tax asset and liability balances are expected to be recoverable as follows:

(In thousands)
Within one year			6,033
After one year			39
			6,072

Movement of valuation allowance is as follows:

	Years ended December 31,
(In thousands)	2015		2016		2017
Beginning balance		(291)		(4,559)		(9,851)
Additions		(4,268)		(5,292)		(6,748)
Write-off		—		—		—
Ending balance		(4,559)		(9,851)		(16,599)

In 2016, valuation allowance was provided for net operating loss carryforwards of Beijing Xunlei, Xunlei Games, Onething, Beijing Xunjing and Crystal Interactive because it was more likely than not that such deferred tax assets will not be realized based on the Group's estimate of their future taxable income, and the fact that the five entities were not included in the tax strategy plan. In 2017, valuation allowance was provided for net operating loss carryforwards of Beijing Xunlei, Xunlei Games, Onething, Beijing Xunjing and Crystal Interactive because it was more likely than not that such deferred tax assets will not be realized based on the Group's estimate of their future taxable income, and the fact that the five entities were not included in the tax strategy plan.

As of December 31, 2017, the tax returns of the Group’s subsidiaries, VIE and its subsidiaries since their respective dates of incorporation are still open to examination.

Fair value measurements

12 Months Ended

Dec. 31, 2017

Fair value measurements [Abstract]

Fair value measurements

22.

Fair value measurements

Effective January 1, 2008, the Group adopted ASC 820-10, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value and expands financial statement disclosures about fair value measurements. Although adoption did not impact the Group’s consolidated financial statements, ASC 820-10 requires additional disclosures to be provided on fair value measurements.

ASC 820-10 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets

Level 2—Include other inputs that are directly or indirectly observable in the marketplace or based on quoted price in markets that are not active

Level 3—Unobservable inputs which are supported by little or no market activity and are significant to the overall fair value measurement

ASC 820-10 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The following table sets forth the financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2016 and 2017.

	Fair value measurements as at December 31, 2016
(In thousands)	Total		Quoted prices in active market for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents: time deposits with original maturities less than three months		115,944		—		115,944		—
Short term investments:
Investments in financial instruments		143,131		—		143,131		—
		259,075		—		259,075		—

	Fair value measurements as at December 31, 2017
(In thousands)	Total		Quoted prices in active market for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents: time deposits with original maturities less than three months		115,534		—		115,534		—
Short term investments:
Investments in financial instruments		138,915		—		138,915		—
		254,449		—		254,449		—

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Commitments and contingencies [Abstract]

Commitments and contingencies

12 Months Ended

Dec. 31, 2017

Certain risks and concentration [Abstract]

24.

Commitments and contingencies

Rental commitments

The Group leases facilities in the PRC under non-cancellable operating leases expiring on different dates. Payments under operating leases are expensed on a straight-line basis over the periods of the respective leases, including any free rental periods.

Total office rental expenses under all operating leases were USD 2,751,000, USD 2,382,000 and USD 2,976,000 for the years ended December 31, 2015, 2016 and 2017, respectively.

Future minimum payments under non-cancellable operating leases of office rental consist of the following as of December 31, 2017:

(In thousands)
2018			3,440
2019			1,784
2020			232
			5,456

Bandwidth lease commitments

The Group leases bandwidth in the PRC under non-cancellable operating leases expiring on different dates. Payments under bandwidth leases are expensed on a straight-line basis over the duration of the respective lease periods, including any lease free periods.

Total bandwidth leasing costs for continuing operations under all operating leases were USD 37,218,000, USD 55,135,000 and USD 68,441,000 for the years ended December 31, 2015, 2016 and 2017. Total bandwidth leasing costs for discontinued operations under all operating leases were USD 2,983,000, nil and nil for the years ended December 31, 2015, 2016 and 2017.

Future minimum payments under non-cancellable bandwidth leases consist of the following as of December 31, 2017:

(In thousands)
2018			11,536
2019			418
2020			84
			12,038

Capital commitments

As at December 31, 2017, the Group has unconditional purchase obligations for switchboards, servers, office software and construction in progress that had not been recognized in the amount of USD 4,368,000.

(In thousands)
2018			2,953
2019			971
2020			444
			4,368

Litigation

The Group is involved in a number of cases pending in various courts. These cases are substantially related to alleged copyright infringement as well as routine and incidental matters to its business, among others. Adverse results in these lawsuits may include awards of damages and may also result in, or even compel, a change in the Group’s business practices, which could impact the Group’s future financial results. The Group had incurred USD 3,307,000, USD 1,669,000 and USD 9,453,000 legal and litigation related expenses for the years ended December 31, 2015, 2016 and 2017, respectively. For the year ended December 31, 2017, legal and litigation related expenses include a settlement of USD3.9 million reached during the year.

Up to April 25, 2018, which is the date when the consolidated financial statements were issued, the Group had 42 lawsuits pending against the Group with an aggregate amount of claimed damages of approximately RMB 112 million (USD 16.76 million) which occurred before December 31, 2017 (2016: RMB 89.27 million (USD 12.87 million)). Of the 42 pending lawsuits, 39 lawsuits were relating to the alleged copyright infringement in the PRC. The Group had accrued for USD 1,755,000 litigation related expenses in ‘‘Accrued expenses and other liabilities’’ in the consolidated balance sheet as of December 31, 2017 (2016: USD 2,062,000), 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 counsel. The Group is in the process of appealing certain judgments for which the losses had been accrued. Although the results of unsettled litigation and claims cannot be predicted with certainty, the Group does not expect that the outcome of the 42 lawsuits will result in the amounts accrued materially different from the range of reasonably possible losses. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies for asserted legal and other claims. However, the outcome of litigation is inherently uncertain. If one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be materially adversely affected.

In May 2014, the Group entered into a content protection agreement with the Motion Picture Association of America, Inc., or MPAA, and its members, which are six major U.S. entertainment content providers. In that agreement, the Group agreed to implement a comprehensive system of measures designed to prevent unauthorized downloading of and access to such content providers’ works. After beginning the roll-out for several months, the Group suspended implementation of the filter but have identified and are in the process of implementing a new filter. Even with the implementation of a new filter, however, the Group’s copyright protection measures would not be able to fully protect the Group against copyright infringement suits. In January 2015, a number of MPAA member studios filed 28 copyright infringement lawsuits against the Group on 28 video products in the Shenzhen Nanshan District Court in China. The court combined these cases into two cases for trial and entered a judgment on both cases on August 21, 2017. The court held, among others, that the Group infringed the plaintiffs’ copyright on 13 of 28 video products and were required by the court to compensate the plaintiff for a total of RMB1.4 million. As of the date of this annual report, those cases are awaiting decisions of appellate court.

Certain risks and concentration

12 Months Ended

Dec. 31, 2017

Certain risks and concentration

25.

Certain risks and concentration

PRC regulations

Current PRC laws and regulations place certain restrictions on foreign ownership of companies that engage in internet businesses, including the provision of online video and online advertising services. Specifically, foreign ownership in an internet content provider or other value-added telecommunication service providers may not exceed 50%. 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 enacted. If the Company had direct 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 its subsidiaries or the right to receive their economic benefits, the Group would no longer be able to consolidate the VIE. The Group does not believe that any penalties imposed or actions taken by the PRC Government would result in the liquidation of the Company, Giganology Shenzhen or Shenzhen Xunlei.

As of December 31, 2017, the aggregate loss and distributable reserves of VIE and VIE’s subsidiaries amounted to approximately USD 32,222,000 and the aggregate retained earnings and distributable reserves amounted to USD 2,541,000 as of December 31, 2016, which has been included in the consolidated financial statements.

As stated above, Shenzhen Xunlei holds assets that are important to the operation of the Group’s business, including patents for proprietary technology, related domain names and trademarks. If Shenzhen Xunlei or its subsidiaries falls into bankruptcy and all or part of its assets become subject to liens or rights of third-party creditors, the Group may be unable to conduct its business activities in China, which could have a material adverse effect on the Group’s future financial position, results of operations or cash flows. However, the Group believes this is a normal business risk many companies face. The Group will continue to closely monitor the financial conditions of Shenzhen Xunlei and its subsidiaries.

Shenzhen Xunlei and its subsidiaries’ assets comprise both recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets include intangible assets, purchased property and equipment. The balances of these assets held by the VIE and its subsidiaries are included in “property and equipment, net” and “intangible assets, net” in the consolidated balance sheet and specifically in the VIE table on the following page. The unrecognized revenue-producing assets mainly consist of license, patents, trademarks, and domain names which are not recorded in the financial statement as they didn’t meet the recognition criteria set in ASC 350-30-25. The licenses stated above primarily consist of licenses that grant the VIE and its subsidiaries the right to produce and broadcast internet, radio, and television programs. One of them is the ICP licenses as described in note 1.

As of December 31, 2017, Shenzhen Xunlei and its subsidiaries held patents granted in the PRC and in the United States. Presently, patent applications are being examined by the State Intellectual Property Office of the PRC and also patent application is being reviewed by the United States Patent and Trademark Office.

As of December 31, 2017, 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 consolidated financial information of the Group’s VIE and its subsidiaries from continuing operations was included in the accompanying consolidated financial statements, before elimination of balances with the Company and its subsidiaries, as of and for the years ended:

	As of December 31,
(In thousands)	2016		2017
Current assets:
Cash and cash equivalents		40,393		48,044
Short-term investments		28,749		7,853
Accounts receivable, net		14,824		40,938
Due from related parties		1,083		6,970
Deferred tax assets		971		-
Inventories		374		3,880
Prepayments and other current assets		15,123		10,963
Held-for-sale assets		20		26
Total current assets		101,537		118,674
Non-current assets:
Equity method investments		25,479		27,428
Deferred tax assets		1,849		4,555
Property and equipment, net		20,039		19,491
Construction in progress		574		4,517
Intangible assets, net		11,083		5,511
Goodwill		20,497		21,760
Other long-term prepayments		1,187		1,885
Total non-current assets		80,708		85,147
Total assets		182,245		203,821
Current liabilities:
Accounts payable (note a)		44,162		68,469
Due to a related party		45		10
Deferred revenue and income, current portion		22,923		27,738
Income tax payable		2,253		3,128
Accrued liabilities and other payables (note b)		104,114		132,322
Held-for-sale liabilities		1,337		822
Total current liabilities		174,834		232,489
Non-current liabilities:
Deferred revenue and income, non-current portion		3,539		2,934
Total non-current liabilities		3,539		2,934
Total liabilities		178,373		235,423

Note a.

The balance included inter-companies balances with the Company and its subsidiaries of USD 9,360,000 and USD 18,704,000 as of December 31, 2016 and 2017, respectively.

Note b.

The balance included inter-companies balances with the Company and its subsidiaries of USD 91,477,000 and USD 74,394,000 as of December 31, 2016 and 2017, respectively.

	Years ended December 31,
(In thousands)	2015		2016		2017
Net revenue from continuing operations		119,761		140,236		200,591
Net loss attributable to Xunlei Limited		(15,646)		(31,196)		(49,339)

	Years ended December 31,
(In thousands)	2015		2016		2017
Net cash (used in)/provided by operating activities		41,723		3,565		(6,992)
Net cash (used in)/provided by investing activities		(51,721)		1,859		13,463
Net cash provided by financing activities		1,055		2,508		1,180
		(8,943)		7,932		7,651

Foreign exchange risk

The Group’s financing activities are denominated mainly in the USD. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC and exchange of foreign currencies into the RMB require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the RMB into other currencies. The revenues and expenses of the Company’s subsidiaries, consolidated VIE and its subsidiaries are generally denominated in the RMB and their assets and liabilities are denominated in the RMB.

Concentration of customer risk

The top 10 customers accounted for 26%, 18% and 27% of the net revenues for the years ended December 31, 2015, 2016 and 2017, respectively. Prior to entering into sales agreements, the Group performs credit assessments of its customers to assess the credit history of its customers. Further, the Group has not experienced any significant bad debts with respect to its accounts receivable.

Credit risk

As of December 31, 2016 and 2017, substantially all of the Group’s cash and cash equivalents were held at reputable financial institutions in the jurisdictions where the Group and its subsidiaries are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has not experienced any losses on its deposits of cash and cash equivalents.

Prior to entering into sales agreements, the Group performs credit assessments of its customers to assess the credit history of its customers. Further, the Group has not experienced any significant bad debts with respect to its accounts receivable.

Subsequent events

12 Months Ended

Dec. 31, 2017

Subsequent events [Abstract]

Subsequent events

26.

Subsequent events

Restricted shares grant

In March 2018, 2,815,520 restricted shares had been granted to certain executive officers or employees of the Group under the 2010 share incentive plan.

Investments

In November 2017, the Group has prepaid USD 1.5 million (RMB 9.6 million) to Henan Zhaoteng Investment Co., Ltd. for acquisition 80% of its equity interests in Henan Tourism Information Co., Ltd. This acquisition was not closed as of April 25, 2018.

Class action lawsuits against the Company

In January 2018, two putative shareholder class action lawsuits were filed in the United States District Courts for the Southern District of New York against Xunlei and certain of its current and former officers and directors: Dookeran v. Xunlei Limited, et al. (filed on January 18, 2018, Case No: 18-cv-467 (S.D.N.Y.)), and Peng Li v. Xunlei Limited, et al. (filed on January 24, 2018, Case No. 18-cv-646 (S.D.N.Y.)). Purporting to sue on behalf of all investors who purchased or acquired Xunlei stock from October 10, 2017, to January 11, 2018, Plaintiffs allege that certain statements regarding OneCoin (now called “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 seek 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, No. 18-cv-467 (RJS), and appointed lead plaintiffs and lead plaintiffs’ counsel. The proceedings are still at an early stage, and the consolidated amended complaint has not yet been filed.

Given the early stage of the proceedings, no provision in respect of these putative class action lawsuits is considered necessary apart from the legal fee to be accrued in 2018 according to ASC450-20-25, which requires an estimated loss from a loss contingency be accrued by a charge to income if both probable and reasonably estimable.

Sale of web game business

On December 28, 2017, Xunlei entered into a legally binding agreement to sell its web game business with Xunyi. The disposal was completed in January 2018 with a disposal gain recorded approximate USD 1,400,000 in 2018 (note 3).

Restricted net assets

12 Months Ended

Dec. 31, 2017

Restricted net assets [Abstract]

Restricted net assets

27.

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(cc)) prior to payment of any dividends. As a result of these and other restrictions under PRC laws and regulations, the Company’s subsidiaries, VIE and VIE’s subsidiaries in China are restricted in their ability to transfer their net assets to the Company in terms of cash dividends, loans or advances, which restricted portion amounted to USD 124,026,000 and USD 142,487,000 as of December 31, 2016 and 2017, respectively. 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 a 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.

Additional information: condensed financial statements of the Company

12 Months Ended

Dec. 31, 2017

Additional information: condensed financial statements of the Company [Abstract]

Additional information: condensed financial statements of the Company

28.

Additional information: condensed financial statements of the Company

Regulation S-X require condensed financial information as to financial position, statement of cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated and unconsolidated subsidiaries together exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.

The Company records its investment in its subsidiaries, VIE and VIE’s subsidiaries under the equity method of accounting.

Such investments are presented on the separate condensed balance sheets of the Company as “Long-term investments”.

The subsidiaries did not pay any dividends to the Company for the periods presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures represent supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Group.

The Company did not have significant other commitments, long-term obligations, or guarantees as of December 31, 2017.

Condensed balance sheets

(In thousands)	December 31, 2016		December 31, 2017
Assets
Current assets:
Cash and cash equivalents		273,160		280,196
Due from subsidiaries and consolidated VIEs		101,130		98,129
Prepayments and other current assets		348		439
Total current assets		374,638		378,764
Non-current assets:
Property, equipment and software, net		3		1
Investments in subsidiaries and consolidated VIEs		43,447		17,375
Total assets		418,088		396,140
Liabilities
Current liabilities:
Accounts payable		55		55
Due to subsidiaries and consolidated VIEs		1,862		4,079
Deferred revenue and income, current portion		272		308
Accrued liabilities and other payables		1,695		732
Total current liabilities		3,884		5,174
Non-current liabilities:
Deferred revenue and income, non-current		543		308
Due to related parties, non-current portion		4,537		4,737
Other long-term payable		886		925
Total liabilities		9,850		11,144
Commitments and contingencies
Shareholders’ equity
Common shares		83		83
Treasury shares 38,332,209 shares as at December 31, 2016 and 35,233,649 shares as at December 31, 2017		9		9
Other shareholders’ equity		408,146		384,904
Total Xunlei Limited’s shareholders’ equity		408,238		384,996
Total liabilities and shareholders’ equity		418,088		396,140

Condensed statements of operations

	Years ended December 31,
(In thousands)	2015		2016		2017
Cost of revenues		(131)		—		—
Gross loss		(131)		—		—
Operating expenses
Sales and marketing expenses		—		(10)		—
General and administrative expenses		(1,314)		(1,193)		(1,153)
Total operating expenses		(1,314)		(1,203)		(1,153)
Operating loss		(1,445)		(1,203)		(1,153)
Interest income		5,318		1,521		1,262
Interest expense		(239)		(239)		(239)
Other (loss)/income, net		(3,261)		715		3,308
(Loss)/income from subsidiaries and consolidated VIE
- Continuing operations		(17,641)		(31,528)		(47,407)
- Discontinued operations		4,101		6,623		6,407
Loss before income tax		(13,167)		(24,111)		(37,822)
Income tax		—		—		—
Net loss		(13,167)		(24,111)		(37,822)
Net income attributable to the non-controlling interest		—		—		—
Net loss attributable to Xunlei Limited’s common shareholders		(13,167)		(24,111)		(37,822)

Condensed statement of cash flows

	Years ended December 31,
(In thousands)	2015		2016		2017
Cash flows from operating activities
Net cash used in operating activities		(26,069)		(20,312)		(25,333)
Cash flows from investing activities
Net cash generated from investing activities		3,812		15,557		32,670
Cash flows from financing activities
Net cash generated from / (used in) financing activities		4,975		(14,260)		(301)
Net (decrease) / increase in cash and cash equivalents		(17,282)		(19,015)		7,036
Cash and cash equivalents at beginning of year		309,457		292,175		273,160
Effect of exchange rates on cash and cash equivalents		—		—		—
Cash and cash equivalents at end of year		292,175		273,160		280,196

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

Summary of significant accounting policies [Abstract]

Summary of significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2017

Basis of presentation and use of estimates

(a)

Basis of presentation and use of estimates

The Restructuring was accounted for at historical costs. The assets and liabilities of Shenzhen Xunlei are consolidated in the Company’s financial statements at carryover basis.

Consolidation

(b)

Consolidation

Foreign currency translation

(c)

Discontinued operations

(d)

Foreign currency translation

The exchange rate used is released by Chinese State Administration of Foreign Exchange.

(e)

Cash and cash equivalents

Fair value of financial instruments

(f)

Short-term investments

(g)

Fair value of financial instruments

(h)

Accounts receivable, net

Some of the factors that the Group considers in determining whether a bad debt allowance is recorded on an individual customer are:

1) the customer's past payment history and whether it fails to comply with its payment schedule;

2) whether the customer is in financial difficulty due to economic or legal factors;

3) a significant dispute with the customer has occurred;

4) the objective evidence which indicates non-collectability of the accounts receivable.

The allowances provided for Accounts Receivable from continuing operations as of December 31, 2016 and 2017 were USD 119,000 and USD 31,000, respectively.

(i)

Inventories

An allowance is recorded for excess inventory and obsolescence based on the lower of cost or net realizable value.

Long-term investments

(j)

Long-term investments

Property and equipment

(k)

Property and equipment

	Estimated useful lives	Residual rate
Servers and network equipment	5 years		5	%
Computer equipment	5 years		5	%
Furniture, fittings and office equipment	5 years		5	%
Motor vehicles	5 years		5	%
Leasehold improvements	shorter of lease term or 3 years		—

Impairment of long-lived assets

(l)

Goodwill

No goodwill impairment losses were recognized for the years ended December 31, 2016 and 2017 based on the impairment test performed by the Group.

Intangible assets

(m)

Intangible assets

(n)

Impairment of long-lived assets

Sales and marketing expenses

(o)

Commitments and contingencies

Operating leases

(p)

Operating leases

Revenue recognition

(q)

Revenue recognition

I)	Subscription revenues

II)	Advertising revenues

Transactions with third party advertising agencies

—Price is fixed and determinable—prices charged to the advertising agencies are specified in the agreements, including relevant discount and rebate rates

—Services are rendered—the Group recognizes revenue ratably over the contract period of display

Transactions with third party advertising platforms

Transactions with advertisers

III)	Other internet value-added services

i)	Online game revenues

Non-exclusive game licensed contracts

Exclusive licensing game contracts

ii)	Live video revenue

iii)	Revenues from traffic referral programs

iv)	Revenues from cloud computing

The Group sells ZQB and OneThing Cloud through online e-commerce platforms. The revenue from ZQB and OneThing Cloud is recognized when the item is dispatched to the end customers.

Barter transactions

(r)

Barter transactions

(s)

Sales and marketing expenses

Shipping and handling fee is recorded in sales and marketing expenses.

General and administrative expenses

(t)

General and administrative expenses

General and administrative expenses consist primarily of salary and benefits, professional service fees, legal expenses and other administrative expenses.

Research and development costs

(u)

Research and development costs

Taxation and uncertain tax positions

(v)

Taxation and uncertain tax positions

Transition from PRC Business Tax to PRC Value Added Tax

Retirement benefits

(w)

Retirement benefits

Share-based compensation

(x)

Share-based compensation

Government subsidies

(y)

Government subsidies

Segment reporting

(z)

Segment reporting

An analysis of the different types of revenues for the years ended December 31, 2015, 2016 and 2017 are summarized as follows:

Revenue from continuing operations	Years ended December 31,
(In thousands)	2015		2016		2017
Subscription revenue		82,435		90,163		84,956
Advertising revenue		4,802		16,874		22,484
Product revenue (note a)		2,512		4,543		32,894
Other internet value-added services (note b)		15,088		29,405		61,577
Total		104,837		140,985		201,911

note a:

Product revenue mainly comprise of sales of ZQB and OneThing Cloud devices.

note b:

Other internet value-added services mainly comprise of CDN revenue, live video services, provision of technical services, traffic referral programs, and online game revenue.

Net income / (loss) per share

(aa)

Net income / (loss) per share

Comprehensive income

(bb)

Comprehensive income

Profit appropriation and statutory reserves

(cc)

Profit appropriation and 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.

(In thousands)	December 31, 2016		December 31, 2017
Paid-in capital		118,733		137,194
Additional paid-in capital		161		161
Statutory reserves		5,132		5,132
Total		124,026		142,487

Dividends

(dd)

Dividends

Recent accounting pronouncements

(ee)

Recent accounting pronouncements

Step 1: Identify the contract(s) with a customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the transaction price.

Step 4: Allocate the transaction price to the performance obligations in the contract.

Step 5: Recognize revenues when (or as) the entity satisfies a performance obligation.

⋅

Organization and nature of operations (Tables)

12 Months Ended

Dec. 31, 2017

Organization and nature of operations [Abstract]

Accompanying Consolidated Financial Statements Include Financial Statements of Company, Subsidiaries, Variable Interest Entity ("VIE") and VIE's Subsidiaries

Name of entities	Place of incorporation	Date of incorporation	Relationship	% of direct or indirect economic ownership	Principal activities
Shenzhen Xunlei Networking Technologies, Co., Ltd. (“Shenzhen Xunlei”)	People’s Republic of China (“PRC”)	January 2003	VIE	100%	Development of software, provision of online and related advertising, membership subscription and online game services; as well as sales of software licenses

Giganology (Shenzhen) Co., Ltd. (“Giganology Shenzhen”)	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 software for related companies, provision of advertising services and production of broadcast television programs

Xunlei Networking Technologies (Beijing) Co., Ltd. (“Beijing Xunlei”)	PRC	June 2009	VIE’s subsidiary	100%	Development of software for related companies (note b)

Shenzhen Zhuolian Software Co., Ltd. (formerly known as “Xunlei Software (Shenzhen) Co., Ltd.”) (“Zhuolian Software”)	PRC	January 2010	VIE’s subsidiary	100%	Provision of software technology development for related companies

Xunlei Games Development (Shenzhen) Co., Ltd. (“Xunlei Games”)	PRC	February 2010	VIE’s subsidiary	70%	Development of online game and computer software for related companies and provision of advertising services

Xunlei Network Technologies Limited (“Xunlei BVI”)	British Virgin Islands	February 2011	Subsidiary	100%	Holding company

Xunlei Network Technologies Limited (“Xunlei HK”)	Hong Kong	March 2011	Subsidiary	100%	Development computer software of related companies and provision of advertising services

Xunlei Computer (Shenzhen) Co., Ltd. (“Xunlei Computer”)	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 computer software, sale of hardware, and provision of information technology 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

Shenzhen Crystal Interactive Technologies Co., Ltd. (“Crystal Interactive”)	PRC	May 2016	VIE’s subsidiary	100%	Development of computer software and provision of information technology services

Shenzhen Xunlei Venture Capital Partnership Enterprise (Limited Partnership) (“Xunlei Venture Capital”)	PRC	June 2016	VIE’s subsidiary	99%	Investments in industries and consultation in investments (note c)

Beijing Onething Technologies Co., Ltd. (“Beijing Onething”)	PRC	January 2017	VIE’s subsidiary	100%	Provision of technology services and development of computer software

Note a: The English names of the PRC companies represent management’s translation of their Chinese names of these companies as they have not adopted formal English names.

Note b: Beijing Xunlei was deregistered in 2017.

Note c: As at December 31, 2017, Xunlei Venture Capital was in the process of deregistration.

Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2017

Summary of significant accounting policies [Abstract]

Schedule of Property and Equipment Estimated Useful Life

	Estimated useful lives	Residual rate
Servers and network equipment	5 years		5	%
Computer equipment	5 years		5	%
Furniture, fittings and office equipment	5 years		5	%
Motor vehicles	5 years		5	%
Leasehold improvements	shorter of lease term or 3 years		—

Analysis of Different Types of Revenues

Revenue from continuing operations	Years ended December 31,
(In thousands)	2015		2016		2017
Subscription revenue		82,435		90,163		84,956
Advertising revenue		4,802		16,874		22,484
Product revenue (note a)		2,512		4,543		32,894
Other internet value-added services (note b)		15,088		29,405		61,577
Total		104,837		140,985		201,911

note a:

Product revenue mainly comprise of sales of ZQB and OneThing Cloud devices.

note b:

Other internet value-added services mainly comprise of CDN revenue, live video services, provision of technical services, traffic referral programs, and online game revenue.

Schedule of Balances of Registered Capital, Additional Paid-in-Capital and Statutory Reserves

(In thousands)	December 31, 2016		December 31, 2017
Paid-in capital		118,733		137,194
Additional paid-in capital		161		161
Statutory reserves		5,132		5,132
Total		124,026		142,487

Discontinued operations (Tables)

12 Months Ended

Dec. 31, 2017

Disposal Groups, Including Discontinued Operations

Results of discontinued operations

The disposal of the web game business was completed in January 2018 resulting in a disposal gain of approximately USD 1,400,000.

Results of the discontinued operation

USD (In thousands)	2015		2016		2017
Operating loss of Xunlei Kankan		(11,553)		(243)		—
Gain on disposal of Kankan		1,505		—		—
Operating income of web game business		19,056		8,034		7,538
Total income from discontinued operations before income tax		9,008		7,791		7,538
Xunlei Kankan - Income tax (expenses)/benefit		(2,048)		36		—
Web game business - Income tax expenses		(2,859)		(1,204)		(1,131)
Total income tax expense from discontinued operations		(4,907)		(1,168)		(1,131)
Total net profit from discontinued operations		4,101		6,623		6,407

Web Game Business [Member]

Disposal Groups, Including Discontinued Operations

Results of the discontinued operation

USD (In thousands)	2015		2016		2017
Revenues, net of rebates and discounts		25,160		15,981		11,428
Business taxes and surcharges		(45)		(25)		(27)
Net revenues		25,115		15,956		11,401
Cost of revenues		(785)		(391)		(522)
Gross profit		24,330		15,565		10,879
Operating expenses
Research and development expenses		(2,488)		(3,192)		(2,217)
Sales and marketing expenses		(2,631)		(4,180)		(1,025)
General and administrative expenses		(155)		(159)		(99)
Total operating expenses		(5,274)		(7,531)		(3,341)
Operating income		19,056		8,034		7,538
Income tax expenses		(2,859)		(1,204)		(1,131)
Income from discontinued operations		16,197		6,830		6,407

Assets and liabilities of the discontinued operation

USD (In thousands)	2016		2017
Property and equipment, net		20		26
Total assets held for sale		20		26

Deferred revenue, current portion		1,338		822
Total liabilities held for sale		1,338		822

Cash flows generated from/ (used in) discontinued operations

USD (In thousands)	2015		2016		2017
Net cash generated from operating activities		15,286		5,492		5,585
Net cash used in investing activities		(1)		(12)		(13)
Net cash used in financing activities		—		—		—
Net cash flow for the year		15,285		5,480		5,572

Xunlei Kankan [Member]

Disposal Groups, Including Discontinued Operations

Results of the discontinued operation

USD (In thousands)	2015		2016		2017
Revenues, net of rebates and discounts		15,677		—		—
Business taxes and surcharges		(447)		—		—
Net revenues		15,230		—		—
Cost of revenues		(13,240)		—		—
Gross profit		1,990		—		—
Operating expenses						—
Research and development expenses		(3,245)		5		—
Sales and marketing expenses		(7,384)		(27)		—
General and administrative expenses		(3,051)		(221)		—
Total operating expenses		(13,680)		(243)		—
Net gain from exchanges of content copyrights		137		—		—
Operating loss		(11,553)		(243)		—
Gain on disposal of Kankan		1,505		—		—
Income tax credit/(expenses)		(2,048)		36		—
Loss from discontinued operations		(12,096)		(207)		—

Cash flows generated from/ (used in) discontinued operations

USD (In thousands)	2015		2016		2017
Net cash used in operating activities		(1,554)		(215)		—
Net cash generated from investing activities		9,135		—		—
Net cash used in financing activities		—		—		—
Net cash flow for the year		7,581		(215)		—

Schedule of Accounts Receivable

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Section 45
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

Accounts receivable, net (Tables)

12 Months Ended

Dec. 31, 2017

Accounts receivable, net [Abstract]

(In thousands)	December 31, 2016		December 31, 2017
Accounts receivable		14,655		40,663
Less: Allowance for doubtful accounts		(119)		(31)
Accounts receivable, net		14,536		40,632

Schedule of Allowance for Doubtful Accounts

The following table presents movement in the allowance for doubtful accounts:

(In thousands)	December 31, 2015		December 31, 2016		December 31, 2017
Balance at beginning of the year		131		126		119
Additions		4		—		27
Write-off		—		—		(122)
Exchange difference		(9)		(7)		7
Balance at end of the year		126		119		31

Prepayments and other assets (Tables)

12 Months Ended

Dec. 31, 2017

Prepayments and other assets [Abstract]

Schedule of Prepayments and Other Assets

(In thousands)	December 31, 2016		December 31, 2017
Current portion:
Advance to suppliers (note a)		2,392		672
Interest-free loans to employees (note c)		3,964		3,670
Advance to employees for business purposes		351		503
Interest receivable		210		313
Rental and other deposits		1,014		1,232
Prepaid management insurance		145		161
Receivable from Nesound (note b)		3,748		181
Prepayment for taxation		1,392		12
Others		377		122
Total of prepayments and other current assets		13,593		6,866
Non-current portion:
Prepayments for online game licenses		490		—
Low-interest loans to employees, non-current portion (note c)		697		416
Prepayment for investment (note d)		—		1,469
Total of long-term prepayments and other assets		1,187		1,885

Note a:

Note b:

Note c:

Note d:

Property and equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property and equipment [Abstract]

Schedule of Property and Equipment

(In thousands)	December 31, 2016		December 31, 2017
Servers and network equipment		42,597		49,582
Computer equipment		1,538		1,785
Furniture, fixtures and office equipment		845		850
Motor vehicles		299		273
Leasehold improvements		2,793		3,157
Total original costs		48,072		55,647
Less: Accumulated depreciation		(27,650)		(35,459)
Less: Impairment		—		(20)
Sub-total		20,422		20,168
Construction in progress		574		4,517
Total		20,996		24,685

Summary of Depreciation Expense

(In thousands)	December 31, 2015		December 31, 2016		December 31, 2017
Cost of revenues		4,873		5,848		7,647
General and administrative expenses		628		306		277
Sales and marketing expenses		7		5		—
Research and development expenses		8		6		24
Total		5,516		6,165		7,948

Intangible assets, net (Tables)

12 Months Ended

Dec. 31, 2017

Intangible assets, net [Abstract]

Schedule of Intangible Assets

	December 31, 2016								December 31, 2017
(In thousands)	Cost		Amortization		Impairment		Net book value		Cost		Amortization		Impairment		Net book value
Land use rights		4,796		(543)		—		4,253		5,092		(746)		—		4,346
Trademarks (note a)		5,441		(1,814)		—		3,627		5,776		(2,544)		(3,232)		—
Non-compete agreement (note a)		1,325		(773)		—		552		1,407		(1,085)		(322)		—
Technology (including right-to-use) (note a)		2,117		(617)		—		1,500		2,247		(866)		(1,381)		—
Acquired computer software		884		(420)		—		464		1,981		(1,084)		—		897
Internal use software development costs		631		(631)		—		—		670		(670)		—		—
Online game licenses (note b)		5,454		(4,383)		(721)		350		6,309		(5,276)		(765)		268
		20,648		(9,181)		(721)		10,746		23,482		(12,271)		(5,700)		5,511

Note a:

Note b:

As of December 31, 2016 and 2017, full provision for impairment has been provided for an online game license due to significant under performance in the past.

Schedule of Amortization Expense Recognized

	Years ended December 31
(In thousands)	2015		2016		2017
Cost of revenues		147		243		241
General and administrative expenses		386		323		415
Research and development expenses		1,589		1,497		1,445
Total		2,122		2,063		2,101

Schedule of Estimated Aggregate Amortization Expense

(In thousands)	Intangible assets
2018		697
2019		405
2020		338
2021		312
2022 and thereafter		3,759

Schedule of Weighted Average Amortization Periods of Intangible Assets

(In year)	December 31, 2016		December 31, 2017
Land use right		30		30
Trademarks		7		7
Non-compete agreement		4		4
Technology (including right-to-use)		8		8
Acquired computer software		5		5
Internal use software development costs		5		5
Online game licenses		3		3
Total weighted average amortization periods		11		11

Inventories (Tables)

12 Months Ended

Dec. 31, 2017

Inventories [Abstract]

Schedule of inventories

(In thousands)	December 31, 2016		December 31, 2017
Hardware devices (note a)		183		3,546
Others		191		333
Total		374		3,879

Note a:

Hardware devices include OneThing Cloud, ZQB, XZB and hard discs.

Long-term investments (Tables)

12 Months Ended

Dec. 31, 2017

Long-term investments [Abstract]

Schedule of Long-Term Investments

(In thousands)	December 31, 2016		December 31, 2017
Equity method investments:
Balance at beginning of the year		2,162		1,790
Additions		1,442		—
Disposal		(701)		—
Share of loss from equity investees (iv)		(195)		(1,875)
Dilution gains arising from deemed disposal of investments (iv)		—		326
Transfer to cost method investments		(786)		—
Exchange differences		(132)		70
Balance at end of the year		1,790		311
Cost method investments:
Balance at beginning of the year		9,157		39,002
Additions (i)		32,707		2,793
Disposal (ii)		(2,220)		(383)
Dilution gains arising from deemed disposal of investment (iii)		689		165
Transfer from equity method investments		786		—
Exchange difference		(463)		1,449
Less: impairment loss on long-term investments (v)		(1,654)		(596)
Balance at end of the year		39,002		42,430

Total long-term investments		40,792		42,741

Schedule of Equity Investments, Percentage of Ownership of Common Share

Details of the Group’s ownership are as follows:

	Percentage of ownership of shares as of December 31,
Investee	2016			2017
Equity method investments:
Zhuhai Qianyou Technology, Co., Ltd. (“Zhuhai Qianyou”)		19.00	%		19.00	%
Shenzhen Mojingou Information Service Co., Ltd. (previously known as Xunlei Big Data Information Service Co., Ltd.) (“Big Data”) (iv)		43.16	%		28.77	%
Cost method investments:
Guangzhou Yuechuan Network Technology, Co., Ltd. (“Guangzhou Yuechuan”)		9.30	%		9.30	%
Shenzhen Kushiduo Network Science and Technology Co., Ltd. (“Shenzhen Kushiduo”) (ii)		10.00	%		—
Shanghai Guozhi Electronic Technology Co., Ltd. (“Shanghai Guozhi”) (v)		16.80	%		16.80	%
Guangzhou Hongsi Network Technology Co., Ltd. (“Guangzhou Hongsi”) (v)		19.90	%		19.90	%
Chengdu Diting Technology, Co., Ltd. (“Chengdu Diting”)		12.74	%		12.74	%
Xiamen Diensi Network Technology Co., Ltd. ("Xiamen Diensi")		14.25	%		14.25	%
11.2 Capital I, L.P. ("11.2 Capital")		2.03	%		2.03	%
Cloudtropy		9.69	%		9.69	%
Shanghai Lexiang Technology Co., Ltd. ("Shanghai Lexiang") (iii)		15.00	%		14.12	%
Hangzhou Feixiang Data Technology Co., Ltd. ("Hangzhou Feixiang") (i)		20.00	%		28.00	%
Shenzhen Meizhi Interactive Technology Co., Ltd. ("Meizhi Interactive")		8.13	%		9.40	%
Beijing Yunhui Tianxia Technology Co., Ltd. ("Yunhui Tianxia") (i)		7.50	%		13.70	%
Arashi Vision Interative (Cayman) Inc. ("Insta 360")		12.16	%		12.16	%
Cloudin Technology (Cayman) Limited ("Cloudin")		4.61	%		4.61	%

(i)

(ii)

(iii)

(iv)

(v)	The Group recognized impairment against its investments in Shanghai Guozhi and Guangzhou Hongsi of USD 149,000 and USD 447,000, respectively after considering the latest operation status and financial and liquidity position.

Deferred revenue and income (Tables)

12 Months Ended

Dec. 31, 2017

Deferred revenue and income [Abstract]

Schedule of Deferred Revenue and Income

(In thousands)	December 31, 2016		December 31, 2017
Deferred revenue
Membership subscription revenues		22,115		26,303
Online game revenues		152		174
Others (i)		—		384
Deferred income
Government grants (ii)		4,195		3,811
Reimbursement from the depository (iii)		814		616
Total		27,276		31,288
Less: non-current portion (iv)		(4,082)		(3,242)
Deferred revenue and income, current portion		23,194		28,046

(i)

Others include live video revenues and issuance of LinkTokens.

(ii)

(iii)

(iv)	As of December 31, 2017, the non-current portion included membership subscription revenue of USD 425,000 (2016: USD 820,000), government grants of USD 2,509,000 (2016: USD 2,719,000), and reimbursement from the depositary of USD 308,000 (2016: USD 543,000).

Accrued liabilities and other payables (Tables)

12 Months Ended

Dec. 31, 2017

Accrued liabilities and other payables [Abstract]

Schedule of Accrued Liabilities and Other Payables

(In thousands)	December 31, 2016		December 31, 2017
Payroll and welfare (note b)		11,624		15,170
Agency commissions and rebates—online advertising		2,297		2,890
Payables for advertisement on exclusive online games		1,521		1,826
Receipts in advance from customers (note a)		5,538		16,833
Tax levies (note b)		1,864		10,234
Payables for purchase of equipment		3,235		461
Legal and litigation related expenses (note 24)		2,904		1,755
Professional fees		1,007		1,045
Staff reimbursements		452		355
Rental expense		5		—
Payables for proceeds from selling exercised stock options		352		74
Payables for gaming distribution		147		199
Payables related to Kankan (note c)		807		4,501
Payables for technological services		234		944
Payables for construction in progress		—		345
Customer’s deposit		—		306
Payables for fulfillment services		—		298
Others		1,144		2,635
Total		33,131		59,871

note a:

Note b:

Note c:

Kankan failed to settle the transferred trade payables, which resulted in the creditors brought litigation against Kankan as well as Xunlei, due to the fact that Xunlei remained as the contracted party in the relevant purchase contracts. In light of this, for the year ended December 31, 2017, payables of USD 3,074,000 was accrued by Xunlei, out of which, USD 2,769,000 remain unsettled as of December 31, 2017 (note 7).

Repurchase of shares (Tables)

12 Months Ended

Dec. 31, 2017

Repurchase of shares [Abstract]

Schedule of share repurchase activity

Period	Total Number of ADSs Purchased as Part of the Publicly Announced Plan		Average Price Paid Per ADS
March 15 – March 30		408,985		6.22
April 1– April 14		457,900		6.61
May 2 – May 31		449,696		6.28
June 9 – June 30		111,459		5.24
July 1 – July 29		555,357		5.33
August 1 – August 30		229,695		5.83
September 6 – September 30		15,467		5.33
October 13 - October 27		31,400		5.11
November 18 – November 30		21,229		4.61
December 2 – December 30		173,312		4.02
Total for the year ended December 31, 2016		2,454,500

January 13		994		4.34
February 10		5,553		3.75
March 7 – March 31		86,523		3.86
Total for the year ended December 31, 2017		93,070

Note a

Note b

Share-based compensation (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Share Option Activity

The following table summarizes the share option activity for the years ended December 31, 2015, 2016 and 2017:

							Weighted
					Weighted-		average
			Weighted		average		remaining		Aggregate
			average		grant-date		contractual		intrinsic
	Number of		exercise		fair		life		value (In
	share options		price (USD)		value (USD)		(years)		thousands)
Outstanding, December 31, 2015		2,130,820		2.13
Vested and expected to vest at December 31, 2015		1,008,645		1.76		0.73		4.62		464
Exercisable at December 31, 2015		1,430,870		2.16		0.86		4.03		406
Forfeited		(14,375)		3.21
Expired		(182,510)		2.22
Exercised		(440,465)		1.81
Outstanding, December 31, 2016		1,493,470		2.65				3.39		6
Vested and expected to vest at December 31, 2016		1,440,923		2.67		0.85		3.24		6
Exercisable at December 31, 2016		1,217,050		2.70		0.84		3.20		6
Forfeited		(109,925)		2.89
Expired		(989,730)		2.28
Exercised		(4,000)		0.83
Outstanding, December 31, 2017		389,815		3.90		—		4.64		—
Vested and expected to vest at December 31, 2017		170,545		3.90		0.95		4.64		—
Exercisable at December 31, 2017		389,190		3.90		0.95		4.64		—

Schedule of Fair Values of Stock Options Granted

The fair values of stock options granted during the years ended December 31, 2016 and 2017 were estimated using the following assumptions:

Options granted to employees

Years ended December 31,	2016			2017
Risk-free interest rate⁽¹⁾		0.77% to 1.76	%		0.77% to 1.76	%
Dividend yield⁽²⁾		—			—
Volatility rate⁽³⁾		40.07% to 43.3	%		40.07% to 43.3	%
Expected term (in years)⁽⁴⁾		4.06 to 5.56			4.06 to 5.56

(1)

The risk-free interest rate of periods within the contractual life of the share option is based on the USD denominated China Government Bond yield as at the valuation dates.

(2)

The Company has no history or expectation of paying dividends on its common shares.

(3)

Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates.

(4)

The expected term is developed by assuming the share options will be exercised in the middle point between the vesting dates and maturity dates.

Schedule of Recognized Compensation Costs

Total compensation costs recognized for the years ended December 31, 2015, 2016 and 2017 are as follows:

	Years ended December 31,
(In thousands)	2015		2016		2017
Sales and marketing expenses		131		98		88
General and administrative expenses		6,701		6,267		5,800
Research and development expenses		2,896		2,983		2,442
Total		9,728		9,348		8,330

2013 Plan [Member]

Summary of Restricted Shares Activities

A summary of the restricted shares activities under the 2010 Plan for the years ended December 31, 2017 is presented below:

	Number of restricted shares		Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2016		432,217
Granted		1,170,000		1.18
Vested		(274,960)
Forfeited		(384,037)
Unvested at December 31, 2016		943,220
Vested and expected to vest at December 31, 2016		801,737
Granted		2,050,000		0.69
Vested		(115,125)
Forfeited		(1,605,945)
Unvested at December 31, 2017		1,272,150
Vested and expected to vest at December 31, 2017		1,081,327

2010 share incentive plan [Member]

Summary of Restricted Shares Activities

A summary of the restricted shares activities under the 2013 Plan for the years ended December 31, 2015, 2016 and 2017 is presented below:

	Number of restricted shares
Unvested at January 1, 2015		7,200,778
Vested		(2,627,815)
Forfeited		(776,565)
Unvested at December 31, 2015		3,796,398
Vested and expected to vest at December 31, 2015		3,226,939
Unvested at January 1, 2016		3,796,398
Vested		(1,520,760)
Forfeited		(561,103)
Unvested at December 31, 2016		1,714,535
Vested and expected to vest at December 31, 2016		1,457,355
Unvested at January 1, 2017		1,714,535
Vested		(996,835)
Forfeited		(129,940)
Unvested at December 31, 2017		587,760
Vested and expected to vest at December 31, 2017		499,596

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, 2016 and 2017 is presented below:

	Number of restricted shares		Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2016		5,761,400
Granted		6,749,000		1.12
Vested		(1,262,200)
Forfeited		(971,900)
Unvested at December 31, 2016		10,276,300
Vested and expected to vest at December 31, 2016		8,734,855
Unvested at January 1, 2017		10,276,300
Granted		—
Vested		(2,447,950)
Forfeited		(2,022,000)
Unvested at December 31, 2017		5,806,350
Vested and expected to vest at December 31, 2017		4,935,398

Basic and diluted net income / (loss) per share (Tables)

12 Months Ended

Dec. 31, 2017

Basic and diluted net income/ (loss) per share [Abstract]

Schedule of Basic and Diluted Net (Loss) / Income Per Share

(Amounts expressed in thousands of United States
dollars (“USD”), except for number of shares and per	Years ended December 31,
share data)	2015		2016		2017
Numerator:
Net loss from continuing operations		(18,567)		(30,806)		(44,216)
Net income from discontinued operations		4,101		6,623		6,407
Net loss		(14,466)		(24,183)		(37,809)
Less: Net income/(loss) attributable to the non-controlling interest		(1,299)		(72)		13
Net loss attributable to Xunlei Limited		(13,167)		(24,111)		(37,822)
Net loss attributable to Xunlei Limited’s common shareholders		(13,167)		(24,111)		(37,822)
Numerator of basic net loss per share from continuing operations		(17,268)		(30,734)		(44,229)
Numerator of basic net income per share from discontinued operations		4,101		6,623		6,407
Numerator for diluted loss per share from continuing operations		(17,268)		(30,734)		(44,229)
Numerator for diluted income per share from discontinued operations		4,101		6,623		6,407
Denominator:
Denominator for basic net loss per share-weighted average shares outstanding		335,987,595		334,155,668		331,731,963
Denominator for diluted net loss per share		335,987,595		334,155,668		331,731,963
Basic net loss per share from continuing operations		(0.0514)		(0.0919)		(0.1333)
Basic net income per share from discontinued operations		0.0122		0.0198		0.0193
Diluted net loss per share from continuing operations		(0.0514)		(0.0919)		(0.1333)
Diluted net income per share from discontinued operations		0.0122		0.0198		0.0193

Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Income per Common Share

	Years ended December 31,
	2015		2016		2017
Share options and restricted shares —weighted average		1,673,342		2,902,950		5,621,418

Related party transactions (Tables)

12 Months Ended

Dec. 31, 2017

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
Zhuhai Qianyou		Equity investment of the Group
Hao Cheng		Co-founder and shareholder of the Group
Chuan Wang		Director of the Company
Shenglong Zou		Co-founder and shareholder of the Group
Beijing Millet Technology Co., Ltd. (“Beijing Xiaomi”)		Company owned by a shareholder of the Group
Leading Advice Holdings Limited		Company owned by a Co-founder and shareholder of the Group
Vantage Point Global Limited		Shareholder of the Company
Aiden & Jasmine Limited		Shareholder of the Company
Kingsoft Corporation Limited		Shareholder of the Company
King Venture Holdings Limited		Principal shareholder of the Group (shareholding >=10%)
Xiaomi Venture Limited		Principal shareholder of the Group
Morningside Technology Investments Limited		Shareholder of the Group
Shenzhen Mojingou Information Service Co., Ltd.		Equity investment of the Group
Shenzhen Xunlei Finance Information Service Co., Ltd.		Subsidiary of the Group’s equity investment
Shenzhen Thunder Trade Service Co., Ltd.		Subsidiary of the Group’s equity investment
Shenzhen Thunder Economic Consulting Co., Ltd.		Subsidiary of the Group’s equity investment
Shenzhen thunderbolt Digital Technology Co., Ltd.		Subsidiary of the Group’s equity investment
Shenzhen Crystal Technology Co., Ltd.		Company owned by a Co-founder and director of the Group
Millet Communication Technology Co., Ltd. (“Millet Communication Technology”)		Company owned by a shareholder of the Group
Beijing Millet Electronic Products Co., Ltd.		Company owned by a shareholder of the Group
Beijing Millet Digital Technology Co., Ltd.		Company owned by a shareholder of the Group
Millet Technology Co., Ltd.		Company owned by a shareholder of the Group
Beijing Xiaomi Mobile Software Co., Ltd. (“Beijing Xiaomi Mobile Software”)		Company owned by a shareholder of the Group
Guangzhou Millet Information Service Co., Ltd.		Company owned by a shareholder of the Group
Shenzhen Xunyi Network Technology Corp., Ltd. (“Shenzhen Xunyi”)		Company operated by few former core members of Xunlei’s web game business

Schedule of Significant Related Party Transactions

During the years ended December 31, 2015, 2016 and 2017, significant related party transactions were as follows:

	Years ended December 31,
(In thousands)	2015		2016		2017
Game sharing costs paid and payable to Zhuhai Qianyou (note a)		127		154		84
Bandwidth revenue from Millet Technology Co., Ltd.		—		316		—
Technology service revenue from Beijing Xiaomi		344		1,010		1
Bandwidth revenue from Millet Communication Technology Co., Ltd.		—		2,483		1,701
Bandwidth revenue from Beijing Xiaomi Mobile Software Co., Ltd. (note b)		—		—		2,245
Marketing expense to Millet Communication Technology Co., Ltd.		—		20		—
Advertisement revenue from Guangzhou Millet Information Service Co., Ltd.		—		—		125
Technology service revenue from Beijing Xiaomi Mobile Software Co., Ltd. (note c)		—		—		5,803
Accrued to Aiden & Jasmine Limited (note d)		54		54		54
Accrued to Vantage Point Global Limited (note d)		146		146		146

note e –

Schedule of Amount Due to from Related Party

(In thousands)	December 31, 2016		December 31, 2017
Amounts due to related parties
Accounts payable to Zhuhai Qianyou		45		10
Long-term payable to Aiden & Jasmine Limited		1,233		1,289
Long-term payable to Vantage Point Global Limited		3,304		3,448

(In thousands)	December 31, 2016		December 31, 2017
Amounts due from related parties
Accounts receivable from Beijing Xiaomi		95		—
Accounts receivable from Millet Communication Technology Co., Ltd.		939		—
Accounts receivable from Beijing Xiaomi Mobile Software Co., Ltd.		—		6,738
Accounts receivable from Beijing Millet Payment Technologies Limited		38		92
Accounts receivable from Guangzhou Millet Information Service Co., Ltd.		—		136
Accounts receivable from Shenzhen Xunlei Finance Information Service Co., Ltd.		5		—
Other receivable from Shenzhen Crystal Technology Co., Ltd.		6		6
Other receivable from Shenglong Zou		9		9
Other receivable from Chuan Wang		5		5

Taxation (Tables)

12 Months Ended

Dec. 31, 2017

Taxation [Abstract]

Schedule of Current and Deferred Portions of Income Tax Expense

Continuing operations	Years ended December 31,
(In thousands)	2015		2016		2017
Current income tax expenses /(benefit)		289		71		(38)
Deferred income tax benefit		(4,034)		(2,540)		(2,214)
Income tax benefit		(3,745)		(2,469)		(2,252)

Summary of Aggregate Amount and Per Share Effect of Tax Holiday

	Years ended December 31,
	2015		2016		2017
Aggregate dollar effect (In thousands)		(830)		(1,430)		(4,102)
Per share effect—basic		0.00		0.00		(0.01)
Per share effect—diluted		0.00		0.00		(0.01)

Reconciliation of Total Tax Expense (Benefit)

The reconciliation of total tax benefit computed by applying the respective statutory income tax rates to pre-tax loss is as follows:

Continuing operations	Years ended December 31,
(In thousands)	2015		2016		2017
Income tax benefit at PRC statutory rate (based on statutory tax rate applicable to enterprises in China)		(5,202)		(8,319)		(11,617)
Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC		2,400		2,145		1,341
Non-deductible expenses		14		12		32
Effect of Super Deduction available to Shenzhen Xunlei		—		(901)		(546)
Effect of tax holiday		1,537		2,234		4,102
Change in valuation allowance of deferred tax assets		4,750		—		6,748
Effect on deferred tax assets due to change in tax rates		(8)		—		—
Outside basis difference arising from VIE and its subsidiaries in the PRC		(2,174)		(5,743)		(652)
Expiration of tax loss		290		91		—
Others		(5,352)		8,012		(1,660)
Income tax benefit		(3,745)		(2,469)		(2,252)

Summary of Changes in Deferred Tax Asset and Liability Balances

The tax effects of temporary differences that give rise to the deferred tax asset and liability balances at December 31, 2016 and 2017 are as follows:

(In thousands)	December 31, 2016		December 31, 2017
Deferred tax assets, current portion:
Net operating loss carried forward (note a)		1,276		—
Amortization of intangible assets arising from intragroup transactions (note b)		51		—
Valuation allowance		(106)		—
Deferred tax assets, current portion, net		1,221		—

Deferred tax assets, non-current portion:
Net operating losses carried forward (note a)		12,093		19,246
Impairment of long-term equity investment		348		562
Allowance for advance to suppliers		576		88
Impairment of intangible assets		—		686
Impairment of property and equipment		—		151
Impairment of other receivables		—		1,938
Valuation allowance		(9,745)		(16,599)
Deferred tax assets, non-current portion, net (note d)		3,272		6,072

Deferred tax liabilities, non-current portion:
Outside basis difference (note c)		(635)		—

Summary of Net Operating Tax Loss Carryforwards

Note a:

(In thousands)
2018			5,721
2019			3,389
2020			555
2021			75
2022 and thereafter			574
			10,314

Note b:

Note c:

Note d:

As at December 31, 2017, the deferred tax asset and liability balances are expected to be recoverable as follows:

Disclosure of Deferred Tax Asset And Liability Balances That Are Expected To Be Recoverable [Table Text Block]

As at December 31, 2017, the deferred tax asset and liability balances are expected to be recoverable as follows:

(In thousands)
Within one year			6,033
After one year			39
			6,072

Schedule of Movement of Valuation Allowance

	Years ended December 31,
(In thousands)	2015		2016		2017
Beginning balance		(291)		(4,559)		(9,851)
Additions		(4,268)		(5,292)		(6,748)
Write-off		—		—		—
Ending balance		(4,559)		(9,851)		(16,599)

Fair value measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair value measurements [Abstract]

Schedule of Financial Instruments Measured at Fair Value

	Fair value measurements as at December 31, 2016
(In thousands)	Total		Quoted prices in active market for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents: time deposits with original maturities less than three months		115,944		—		115,944		—
Short term investments:
Investments in financial instruments		143,131		—		143,131		—
		259,075		—		259,075		—

	Fair value measurements as at December 31, 2017
(In thousands)	Total		Quoted prices in active market for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents: time deposits with original maturities less than three months		115,534		—		115,534		—
Short term investments:
Investments in financial instruments		138,915		—		138,915		—
		254,449		—		254,449		—

Commitments and contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Rental commitments [Member]

Future Minimum Payments under Non-Cancellable Leases

(In thousands)
2018			3,440
2019			1,784
2020			232
			5,456

Bandwidth Lease Commitments [Member]

Future Minimum Payments under Non-Cancellable Leases

(In thousands)
2018			11,536
2019			418
2020			84
			12,038

Capital commitments [Member]

Future Minimum Payments under Non-Cancellable Leases

(In thousands)
2018			2,953
2019			971
2020			444
			4,368

Certain risks and concentration (Tables)

12 Months Ended

Dec. 31, 2017

Certain risks and concentration [Abstract]

Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries

	As of December 31,
(In thousands)	2016		2017
Current assets:
Cash and cash equivalents		40,393		48,044
Short-term investments		28,749		7,853
Accounts receivable, net		14,824		40,938
Due from related parties		1,083		6,970
Deferred tax assets		971		-
Inventories		374		3,880
Prepayments and other current assets		15,123		10,963
Held-for-sale assets		20		26
Total current assets		101,537		118,674
Non-current assets:
Equity method investments		25,479		27,428
Deferred tax assets		1,849		4,555
Property and equipment, net		20,039		19,491
Construction in progress		574		4,517
Intangible assets, net		11,083		5,511
Goodwill		20,497		21,760
Other long-term prepayments		1,187		1,885
Total non-current assets		80,708		85,147
Total assets		182,245		203,821
Current liabilities:
Accounts payable (note a)		44,162		68,469
Due to a related party		45		10
Deferred revenue and income, current portion		22,923		27,738
Income tax payable		2,253		3,128
Accrued liabilities and other payables (note b)		104,114		132,322
Held-for-sale liabilities		1,337		822
Total current liabilities		174,834		232,489
Non-current liabilities:
Deferred revenue and income, non-current portion		3,539		2,934
Total non-current liabilities		3,539		2,934
Total liabilities		178,373		235,423

Note a.

The balance included inter-companies balances with the Company and its subsidiaries of USD 9,360,000 and USD 18,704,000 as of December 31, 2016 and 2017, respectively.

Note b.

The balance included inter-companies balances with the Company and its subsidiaries of USD 91,477,000 and USD 74,394,000 as of December 31, 2016 and 2017, respectively.

	Years ended December 31,
(In thousands)	2015		2016		2017
Net revenue from continuing operations		119,761		140,236		200,591
Net loss attributable to Xunlei Limited		(15,646)		(31,196)		(49,339)

	Years ended December 31,
(In thousands)	2015		2016		2017
Net cash (used in)/provided by operating activities		41,723		3,565		(6,992)
Net cash (used in)/provided by investing activities		(51,721)		1,859		13,463
Net cash provided by financing activities		1,055		2,508		1,180
		(8,943)		7,932		7,651

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

Additional information: condensed financial statements of the Company [Abstract]

Additional information: condensed financial statements of the Company (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Condensed Balance Sheets

(In thousands)	December 31, 2016		December 31, 2017
Assets
Current assets:
Cash and cash equivalents		273,160		280,196
Due from subsidiaries and consolidated VIEs		101,130		98,129
Prepayments and other current assets		348		439
Total current assets		374,638		378,764
Non-current assets:
Property, equipment and software, net		3		1
Investments in subsidiaries and consolidated VIEs		43,447		17,375
Total assets		418,088		396,140
Liabilities
Current liabilities:
Accounts payable		55		55
Due to subsidiaries and consolidated VIEs		1,862		4,079
Deferred revenue and income, current portion		272		308
Accrued liabilities and other payables		1,695		732
Total current liabilities		3,884		5,174
Non-current liabilities:
Deferred revenue and income, non-current		543		308
Due to related parties, non-current portion		4,537		4,737
Other long-term payable		886		925
Total liabilities		9,850		11,144
Commitments and contingencies
Shareholders’ equity
Common shares		83		83
Treasury shares 38,332,209 shares as at December 31, 2016 and 35,233,649 shares as at December 31, 2017		9		9
Other shareholders’ equity		408,146		384,904
Total Xunlei Limited’s shareholders’ equity		408,238		384,996
Total liabilities and shareholders’ equity		418,088		396,140

Schedule of Condensed Statements of Operations

Condensed statements of operations

	Years ended December 31,
(In thousands)	2015		2016		2017
Cost of revenues		(131)		—		—
Gross loss		(131)		—		—
Operating expenses
Sales and marketing expenses		—		(10)		—
General and administrative expenses		(1,314)		(1,193)		(1,153)
Total operating expenses		(1,314)		(1,203)		(1,153)
Operating loss		(1,445)		(1,203)		(1,153)
Interest income		5,318		1,521		1,262
Interest expense		(239)		(239)		(239)
Other (loss)/income, net		(3,261)		715		3,308
(Loss)/income from subsidiaries and consolidated VIE
- Continuing operations		(17,641)		(31,528)		(47,407)
- Discontinued operations		4,101		6,623		6,407
Loss before income tax		(13,167)		(24,111)		(37,822)
Income tax		—		—		—
Net loss		(13,167)		(24,111)		(37,822)
Net income attributable to the non-controlling interest		—		—		—
Net loss attributable to Xunlei Limited’s common shareholders		(13,167)		(24,111)		(37,822)

Schedule of Condensed Statement of Cash Flows

Condensed statement of cash flows

	Years ended December 31,
(In thousands)	2015		2016		2017
Cash flows from operating activities
Net cash used in operating activities		(26,069)		(20,312)		(25,333)
Cash flows from investing activities
Net cash generated from investing activities		3,812		15,557		32,670
Cash flows from financing activities
Net cash generated from / (used in) financing activities		4,975		(14,260)		(301)
Net (decrease) / increase in cash and cash equivalents		(17,282)		(19,015)		7,036
Cash and cash equivalents at beginning of year		309,457		292,175		273,160
Effect of exchange rates on cash and cash equivalents		—		—		—
Cash and cash equivalents at end of year		292,175		273,160		280,196

Organization and nature of operations - Additional Information (Detail) ¥ / shares in Units, ¥ in Millions	1 Months Ended	12 Months Ended
	May 31, 2011 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥) ¥ / shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
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 \| $		$ 1,155,000		$ 1,088,000	$ 1,235,000
Exclusive Technology Support and Services Agreement [Member]
Variable Interest Entity [Line Items]
Percentage of pre-tax operating profit		20.00%	20.00%
Exclusive Technology Consulting and Training Agreement [Member]
Variable Interest Entity [Line Items]
Percentage of pre-tax operating profit		20.00%	20.00%
Software and Proprietary Technology License Contract [Member]
Variable Interest Entity [Line Items]
Percentage of pre-tax operating profit		40.00%	40.00%
Giganology (Shenzhen) Co. Ltd [Member]
Variable Interest Entity [Line Items]
Termination of agreement, notice period		30 days	30 days
Automated extended period of agreement		10 years	10 years
Agreement expiration date		2022	2022
Giganology (Shenzhen) Co. Ltd [Member] \| Exclusive Technology Support and Services Agreement [Member]
Variable Interest Entity [Line Items]
Term agreement expiration year		2025	2025
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
Agreement between Giganology Shenzhen and Shenzhen Xunlei [Member]
Variable Interest Entity [Line Items]
Increase in registered capital	¥ 20
Term agreement expiration year		2016	2016
Call Option Agreement [Member] \| Giganology (Shenzhen) Co. Ltd [Member]
Variable Interest Entity [Line Items]
Agreement expiration date		2022	2022
Outstanding share, purchase price per share \| ¥ / shares			¥ 1

Organization and nature of operations - Accompanying Consolidated Financial Statements Include Financial Statements of Company, Subsidiaries, Variable Interest Entity ("VIE") and VIE's Subsidiaries (Detail)

12 Months Ended

Dec. 31, 2017

Shenzhen Xunlei Networking Technologies, Co., Ltd [Member]

Feb. 03, 2005

People’s Republic of China

Jan. 31, 2003

Percentage of direct or indirect economic ownership

VIE

100.00%

Giganology (Shenzhen) Co. Ltd [Member]

Development of software, provision of online and related advertising, membership subscription and online game services; as well as sales of software licenses

PRC

Jun. 30, 2005

Percentage of direct or indirect economic ownership

Subsidiary

100.00%

Shenzhen Xunlei Wangwenhua Co Ltd [Member]

Development of computer software and provision of information technology services to related companies

PRC

Dec. 31, 2005

Percentage of direct or indirect economic ownership

VIE’s subsidiary

100.00%

Xunlei Networking Technologies Beijing Co Ld [Member]

Development of software for related companies, provision of advertising services and production of broadcast television programs

PRC

Jun. 30, 2009

Percentage of direct or indirect economic ownership

VIE’s subsidiary

100.00%

Xunlei Games Development (Shenzhen) Co., Ltd. [Member]

Development of software for related companies

^[1]

PRC

Feb. 28, 2010

Percentage of direct or indirect economic ownership

VIE’s subsidiary

70.00%

Xunlei Network Technologies Limited BVI [Member]

Development of online game and computer software for related companies and provision of advertising services

British Virgin Islands

Feb. 28, 2011

Percentage of direct or indirect economic ownership

Subsidiary

100.00%

Xunlei Network Technologies Limited HK [Member]

Holding company

Hong Kong

Mar. 31, 2011

Percentage of direct or indirect economic ownership

Subsidiary

100.00%

Xunlei Computer (Shenzhen) Co., Ltd. [Member]

Development computer software of related companies and provision of advertising services

PRC

Nov. 30, 2011

Percentage of direct or indirect economic ownership

Subsidiary

100.00%

Shenzhen Onething Technologies Co Ltd [Member]

Development of computer software and provision of information technology services

PRC

Sep. 30, 2013

Percentage of direct or indirect economic ownership

VIE’s subsidiary

100.00%

Beijing Xunjing Technologies Co Ltd [Member]

Development of computer software, sale of hardware, and provision of information technology services

PRC

Oct. 31, 2015

Percentage of direct or indirect economic ownership

VIE’s subsidiary

100.00%

Shenzhen Crystal Interactive Technologies Co [Member]

Development of computer software and provision of information technology services

PRC

May 31, 2016

Percentage of direct or indirect economic ownership

VIE’s subsidiary

100.00%

Shenzhen Xunlei Venture Capital Partnership Enterprise [Member]

Development of computer software and provision of information technology services

PRC

Jun. 30, 2016

Percentage of direct or indirect economic ownership

VIE’s subsidiary

99.00%

Shenzhen Zhuolian Software Co., Ltd [Member]

Investments in industries and consultation in investments

^[2]

PRC

Jan. 31, 2010

Percentage of direct or indirect economic ownership

VIE’s subsidiary

100.00%

Beijing Onething Technologies Co., Ltd. [Member]

Provision of software technology development for related companies

PRC

Jan. 31, 2017

Percentage of direct or indirect economic ownership

VIE’s subsidiary

100.00%

Accounting Policies and General Information [Line Items]

Provision of technology services and development of computer software

[1]	Beijing Xunlei was deregistered in 2017.
[2]	As at December 31, 2017, Xunlei Venture Capital was in the process of deregistration.

Summary of significant accounting policies - Additional Information (Detail) - USD ($)

12 Months Ended

18 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Jun. 15, 2017

Dec. 31, 2014

Allowance for doubtful accounts

$ 31,000

$ 119,000

$ 126,000

$ 131,000

Impairment of long-term investments

596,000

Goodwill impairment losses

Sales rebates provided to the agencies and advertisers

440,000

15,000

1,179,000

Net gains from barter transactions

137,000

Net proceeds from barter transactions

409,000

Barter transaction cost

247,000

Business tax and surcharge on barter transactions

25,000

External advertising and market promotion expenses from continuing operations

$ 10,345,000

6,666,000

6,019,000

Value added tax on revenues

17.00%

Value added tax on sub-licensing revenues

6.00%

Employee benefit costs

$ 10,123,000

$ 8,645,000

$ 5,176,000

Statutory general reserve rate

10.00%

Statutory general reserve rate of registered capital

50.00%

Dividends declared

$ 0

Income (Loss) from Equity Method Investments

$ (1,875,000)

^[1]

$ (195,000)

^[1]

$ (12,000)

Disposal Group, Including Discontinued Operation, Revenue

4,833,000

11,428,000

15,981,000

25,160,000

Advertising Revenue

22,484,000

16,874,000

4,802,000

Beijing Millet Technology Co., Ltd. [Member]

Accounting Policies and General Information [Line Items]

Advertising Revenue

$ 5,800,000

Non Compete Agreement [Member]

Accounting Policies and General Information [Line Items]

Related Technology [Member]

322,000

Accounting Policies and General Information [Line Items]

Accounting Policies and General Information [Line Items]

1,381,000

Trademarks [Member]

Accounting Policies and General Information [Line Items]

3,232,000

Big Data [Member]

Income (Loss) from Equity Method Investments

1,300,000

Online game licenses [Member]

Accounting Policies and General Information [Line Items]

Impairment of intangible assets

$ 765,000

$ 721,000

$ 770,000

Domain name [Member]

Accounting Policies and General Information [Line Items]

Other intangible assets, amortization period

5 years

Land use right [Member]

Accounting Policies and General Information [Line Items]

Other intangible assets, amortization period

30 years

[1]

Summary of significant accounting policies - Schedule of Property and Equipment Estimated Useful Life (Detail)	12 Months Ended
	Dec. 31, 2017
Servers and network equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5
Residual rate	5.00%
Computer equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5
Residual rate	5.00%
Furniture, fittings and office equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5
Residual rate	5.00%
Motor vehicles [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5
Residual rate	5.00%
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	shorter of lease term or 3 years
Residual rate	0.00%

Summary of significant accounting policies - Analysis of Different Types of Revenues (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Revenue from continuing operations

Subscription revenue

$ 84,956

$ 90,163

$ 82,435

Advertising revenue

22,484

16,874

4,802

Product revenue (note a)

32,894

4,543

2,512

Other internet value-added services (note b)

^[1]

61,577

29,405

15,088

Total

$ 201,911

$ 140,985

$ 104,837

[1]	Other internet value-added services mainly comprise of CDN revenue, live video services, provision of technical services, traffic referral programs, and online game revenue.

Summary of significant accounting policies - Schedule of Balances of Registered Capital, Additional Paid-in-Capital and Statutory Reserves (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies and General Information [Line Items]
Additional paid-in capital	$ 461,330	$ 453,347
Statutory reserves	5,132	5,132
China [Member]
Accounting Policies and General Information [Line Items]
Paid-in capital	137,194	118,733
Additional paid-in capital	161	161
Statutory reserves	5,132	5,132
Total	$ 142,487	$ 124,026

Discontinued operations (Narrative) (Details)		12 Months Ended
Discontinued operations (Narrative) (Details)	Jul. 15, 2015 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2017 CNY (¥)	Jul. 31, 2015 USD ($)	Jul. 31, 2015 CNY (¥)
Discontinued operations [Line Items]
Sales price								$ 19,896,000	¥ 130,000,000
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax	$ 1,505,000
Sales Revenue, Services, Net				$ 169,017,000	$ 136,442,000	$ 102,325,000
Shenzhen Xunyi Network Technology Corp., Ltd. [Member] \| Minimum [Member] \| Scenario, Forecast [Member]
Discontinued operations [Line Items]
Sales Revenue, Services, Net		$ 1,225,000	¥ 8,000,000
Xunlei Kankan [Member]
Discontinued operations [Line Items]
Sales price								$ 19,896,000	¥ 130,000,000
Web Game Business [Member]
Discontinued operations [Line Items]
Sales price				$ 640,000			¥ 4,180,000

Discontinued operations (Schedule of Discontinued Operations) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Results of the discontinued operation
Revenues, net of rebates and discounts	$ 11,428,000	$ 15,981,000	$ 25,160,000
Income tax expenses	(1,131,000)	(1,168,000)	(4,907,000)
Assets
Total assets held for sale	26,000	20,000
Current liabilities
Total liabilities held for sale	822,000	1,338,000
Xunlei Kankan [Member]
Results of the discontinued operation
Revenues, net of rebates and discounts	0	0	15,677,000
Business taxes and surcharges	0	0	(447,000)
Net revenues	0	0	15,230,000
Cost of revenues	0	0	(13,240,000)
Gross profit	0	0	1,990,000
Research and development expenses	0	5,000	(3,245,000)
Sales and marketing expenses	0	(27,000)	(7,384,000)
General and administrative expenses	0	(221,000)	(3,051,000)
Total operating expenses	0	(243,000)	(13,680,000)
Net gain from exchanges of content copyrights	0	0	137,000
Operating loss	0	(243,000)	(11,553,000)
Gain on disposal of Kankan	0	0	1,505,000
Income tax expenses	0	36,000	(2,048,000)
Loss from discontinued operations	0	(207,000)	(12,096,000)
Cash flows generated from/ (used in) discontinued operations
Net cash used in operating activities	0	(215,000)	(1,554,000)
Net cash generated from investing activities		0	9,135,000
Net cash used in financing activities
Net cash flow for the year	0	(215,000)	7,581,000
Web Game Business [Member]
Results of the discontinued operation
Revenues, net of rebates and discounts	11,428,000	15,981,000	25,160,000
Business taxes and surcharges	(27,000)	(25,000)	(45,000)
Net revenues	11,401,000	15,956,000	25,115,000
Cost of revenues	(522,000)	(391,000)	(785,000)
Gross profit	10,879,000	15,565,000	24,330,000
Research and development expenses	(2,217,000)	(3,192,000)	(2,488,000)
Sales and marketing expenses	(1,025,000)	(4,180,000)	(2,631,000)
General and administrative expenses	(99,000)	(159,000)	(155,000)
Total operating expenses	(3,341,000)	(7,531,000)	(5,274,000)
Operating loss	7,538,000	8,034,000	19,056,000
Income tax expenses	(1,131,000)	(1,204,000)	(2,859,000)
Loss from discontinued operations	6,407,000	6,830,000	16,197,000
Assets
Property and equipment, net	26,000	20,000
Total assets held for sale	26,000	20,000
Current liabilities
Deferred revenue, current portion	822,000	1,338,000
Total liabilities held for sale	822,000	1,338,000
Cash flows generated from/ (used in) discontinued operations
Net cash used in operating activities	5,585,000	5,492,000	15,286,000
Net cash generated from investing activities	(13,000)	(12,000)	(1,000)
Net cash used in financing activities	0	0	0
Net cash flow for the year	$ 5,572,000	$ 5,480,000	$ 15,285,000

Discontinued operations (Results of discontinued operations) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	$ 7,538	$ 7,791	$ 9,008
Discontinued Operation, Tax Effect of Discontinued Operation	1,131	1,168	4,907
Total net profit from discontinued operations	6,407	6,623	4,101
Xunlei Kankan [Member]
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	0	(243)	(11,553)
Discontinued Operation, Tax Effect of Discontinued Operation	0	36	(2,048)
Kankan [Member]
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	0	0	1,505
Web Game Business [Member]
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	7,538	8,034	19,056
Discontinued Operation, Tax Effect of Discontinued Operation	$ 1,131	$ 1,204	$ 2,859

Amount before tax of income (loss) from a discontinued operation. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

Amount of tax expense (benefit) related to a discontinued operation. Includes, but is not limited to, tax expense (benefit) related to income (loss) from operations during the phase-out period, tax expense (benefit) related to gain (loss) on disposal, tax expense (benefit) related to gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and tax expense (benefit) related to adjustments of a prior period gain (loss) on disposal.

Amount after tax of income (loss) from a discontinued operation including the portion attributable to the noncontrolling interest. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

Schedule of Investments [Line Items]

Cash and cash equivalents - Additional Information (Detail) - USD ($)	1 Months Ended
	Jan. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents [Line Items]
Time Deposits, at Carrying Value		$ 115,534,000	$ 115,944,000
Web Game Business [Member] \| Subsequent Event [Member]
Cash and Cash Equivalents [Line Items]
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	$ 1,400,000

Cash and cash equivalents - Summary of Cash on Hand and Cash Held at Bank (Detail) ¥ in Thousands, $ in Thousands, $ in Thousands	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 HKD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 HKD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Cash and Cash Equivalents [Line Items]
Cash on hand and cash held at bank		$ 233,479			$ 199,504		$ 361,777	$ 404,275
RMB [Member]
Cash and Cash Equivalents [Line Items]
Cash on hand and cash held at bank	¥ 436,794	66,847		¥ 538,660	77,651
USD [Member]
Cash and Cash Equivalents [Line Items]
Cash on hand and cash held at bank		166,530			121,726
HKD [Member]
Cash and Cash Equivalents [Line Items]
Cash on hand and cash held at bank		$ 102	$ 794		$ 127	$ 987

Short-term investments - Schedule of Short-Term Investments (Detail) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Schedule of Investments [Line Items]

$ 138,915

$ 181,960

Time deposits [Member]

Investments in financial instruments [Member]

118,779

38,829

Schedule of Investments [Line Items]

Interest-free loans to employees

^[1]

$ 20,136

$ 143,131

[1]	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 - Schedule of Accounts Receivable (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets held for sale
Accounts receivable	$ 40,663	$ 14,655
Less: Allowance for doubtful accounts	(31)	(119)	$ (126)	$ (131)
Accounts receivable, net	$ 40,632	$ 14,536

Accounts receivable, net - Schedule of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of the year	$ 119	$ 126	$ 131
Additions	27	0	4
Write-off	(122)	0	0
Exchange difference	7	(7)	(9)
Balance at end of the year	$ 31	$ 119	$ 126

Accounts receivable, net - Additional Information (Detail) - Customer	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of top customers	10
Credit concentration risk [Member] \| Accounts receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, percentage	86.00%	76.00%

Prepayments and other assets - Schedule of Prepayments and Other Assets (Detail)
$ in Thousands

Dec. 31, 2017

USD ($)

Dec. 31, 2017

CNY (¥)

Dec. 31, 2016

USD ($)

Current portion:

Advance to suppliers

^[1]

$ 672

$ 2,392

^[2]

3,670

3,964

Advance to employees for business purposes

503

351

Interest receivable

313

210

Rental and other deposits

1,232

1,014

Prepaid management insurance

161

145

Receivable from Nesound

181

^[3]

¥ 26,000,000

3,748

^[3]

Prepayment for taxation

1,392

Others

122

377

Total of prepayments and other current assets

6,866

13,593

Non-current portion:

Low-interest loans to employees, non-current portion

^[2]

416

697

Prepayment for investment

^[4]

1,469

Total of long-term prepayments and other assets

1,885

1,187

Online game licenses [Member]

Non-current portion:

Prepayments for online game licenses

$ 0

$ 490

[1]	Advances to suppliers primarily include prepaid rental expenses, license costs and game sharing costs. Prepaid license costs of USD 535,000 was impaired, which was related to Kankan as disclosed in note b.
[2]	The Group had entered into loan contracts with certain employees as at December 31, 2016 and 2017, 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 the term 8 to 10 years. The balances classified as current represented loan amounts are repayable on demand or repayable within the next twelve months from the balance sheet date.
[3]	The Group disposed Kankan to Nesound in July 2015 at a cash consideration of RMB 130,000,000 (USD 19,896,000). As of December 31, 2017, there is a balance receivable amounted to RMB 26,000,000 (USD 3,979,000) which was past due. In addition, for the purpose of disposal and pursuant to the sale and purchase agreement of Kankan Disposal, certain right and obligation to trade receivables and trade payables transferred to Kankan will be collected and settled by Xunlei on Kankan’s behalf. Kankan failed to settle the transferred trade payables resulted in the creditors brought litigation against Kankan as well as Xunlei, due to the fact that Xunlei remained as the contracted party in the relevant purchase contracts. Payables settled by Xunlei on behalf of Kankan as of December 31, 2015, 2016 and 2017 were RMB [3,498,000] (USD 539,000), RMB [3,498,000] (USD [504,000]) and RMB 33,360,000 (USD 5,105,000) respectively. The Group has brought claim against Nesound to the arbitration tribunal and considered the balances recoverable as of December 31, 2016. With the progress of litigation in 2017, the Group considered the recoverability f the receivables from Nesound and amount settled on behalf of Kankan are remote. Thus, impairment of USD 3,719,000 and USD 5,004,000 have been provided for against the receivables from Nesound and amount settled on behalf of Kankan as “Assets impairment loss”, in addition, the Group also accrued USD 3,074,000 in respect of unsettled balance of transferred payables in 2017 (note 13) as legal expenses. As of December 31, 2017, balance of this accrual was USD 2,769,000.
[4]	The Group paid USD 1,469,000 to Henan Zhaoteng Investment Co., Ltd. for acquisition of 80% equity interest of Henan Tourism Information Co., Ltd. However, as the legal procedure of the investment has not completed up to December 31, 2017, the investment is classified as long-term prepayment.

Prepayments and other assets - Schedule of Prepayments and Other Assets (Parenthetical) (Detail)

12 Months Ended

Dec. 31, 2017

USD ($)

Dec. 31, 2017

CNY (¥)

Dec. 31, 2016

USD ($)

Dec. 31, 2016

CNY (¥)

Dec. 31, 2015

USD ($)

Dec. 31, 2015

CNY (¥)

Dec. 31, 2017

CNY (¥)

Jul. 31, 2015

USD ($)

Jul. 31, 2015

CNY (¥)

Disposal Group, Including Discontinued Operation, Consideration

$ 19,896,000

¥ 130,000,000

Disposal Group Including Discontinued Operation Payment to be Received by Entity

$ 181,000

^[1]

$ 3,748,000

^[1]

¥ 26,000,000

Repayments of Notes Payable

(5,105,000)

¥ (33,360,000)

(504,000)

¥ (3,498,000)

$ (539,000)

¥ (3,498,000)

Prepaid Investments, Noncurrent

^[2]

1,469,000

$ 0

Receivables from Nesound [Member]

Other Asset Impairment Charges

3,719,000

Balances related to Kankan [Member]

Other Asset Impairment Charges

5,004,000

Kankan [Member]

Disposal Group, Including Discontinued Operation, Accounts Payable

2,769,000

¥ 18,094,000

Disposal Group Including Discontinued Operation, Amount Of Accrual Of Unsettled Balances As Legal Expenses

$ 3,074,000

Henan Zhaoteng Investment Co [Member]

Business Acquisition, Percentage of Voting Interests Acquired

80.00%

Employees [Member] | Minimum [Member]

Loans Receivables Term

8 years

Employees [Member] | Maximum [Member]

Loans Receivables Term

10 years

[1]

The Group disposed Kankan to Nesound in July 2015 at a cash consideration of RMB 130,000,000 (USD 19,896,000). As of December 31, 2017, there is a balance receivable amounted to RMB 26,000,000 (USD 3,979,000) which was past due. In addition, for the purpose of disposal and pursuant to the sale and purchase agreement of Kankan Disposal, certain right and obligation to trade receivables and trade payables transferred to Kankan will be collected and settled by Xunlei on Kankan’s behalf. Kankan failed to settle the transferred trade payables resulted in the creditors brought litigation against Kankan as well as Xunlei, due to the fact that Xunlei remained as the contracted party in the relevant purchase contracts. Payables settled by Xunlei on behalf of Kankan as of December 31, 2015, 2016 and 2017 were RMB [3,498,000] (USD 539,000), RMB [3,498,000] (USD [504,000]) and RMB 33,360,000 (USD 5,105,000) respectively. The Group has brought claim against Nesound to the arbitration tribunal and considered the balances recoverable as of December 31, 2016. With the progress of litigation in 2017, the Group considered the recoverability f the receivables from Nesound and amount settled on behalf of Kankan are remote. Thus, impairment of USD 3,719,000 and USD 5,004,000 have been provided for against the receivables from Nesound and amount settled on behalf of Kankan as “Assets impairment loss”, in addition, the Group also accrued USD 3,074,000 in respect of unsettled balance of transferred payables in 2017 (note 13) as legal expenses. As of December 31, 2017, balance of this accrual was USD 2,769,000.

[2]

Property and equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 55,647	$ 48,072
Less: Accumulated depreciation	(35,459)	(27,650)
Less: Impairment	(20)	0
Sub-total	20,168	20,422
Construction in progress	4,517	574
Total	24,685	20,996
Servers and network equipment [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	49,582	42,597
Computer equipment [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	1,785	1,538
Furniture, fittings and office equipment [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	850	845
Motor vehicles [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	273	299
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 3,157	$ 2,793

Property and equipment - Summary of Depreciation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 7,948	$ 6,165	$ 5,646
Cost of Revenue [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	7,647	5,848	4,873
General and administrative expenses [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	277	306	628
Sales and marketing expenses [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	0	5	7
Research and Development Expense [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 24	$ 6	$ 8

Intangible assets, net - Schedule of Intangible Assets (Detail) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

$ 23,482

$ 20,648

(12,271)

(9,181)

(5,700)

(721)

5,511

10,746

Land use right [Member]

5,092

4,796

(746)

(543)

4,346

4,253

Trademarks [Member]

^[1]

5,776

5,441

^[1]

(2,544)

(1,814)

^[1]

(3,232)

Non-compete agreement [Member]

^[1]

3,627

^[1]

1,407

1,325

^[1]

(1,085)

(773)

^[1]

(322)

Technology (including right-to-use) [Member]

^[1]

552

^[1]

2,247

2,117

^[1]

(866)

(617)

^[1]

(1,381)

Acquired computer software [Member]

^[1]

1,500

1,981

884

(1,084)

(420)

Internal use software development costs [Member]

897

464

670

631

(670)

(631)

Online game licenses [Member]

^[2]

6,309

5,454

^[2]

(5,276)

(4,383)

^[2]

(765)

(721)

^[2]

$ 268

$ 350

[1]	With the launch of new cloud technology developed by the Group in 2017, the acquired intangible assets related to personal cloud storage business, arising from the acquisition of Kingsoft Cloud Holdings Limited in 2014, were no longer in use and full provision for impairment has been provided.
[2]	As of December 31, 2016 and 2017, full provision for impairment has been provided for an online game license due to significant under performance in the past.

Intangible assets, net - Schedule of Amortization Expense Recognized (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 2,101	$ 2,063	$ 2,122
Cost of Revenues [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	241	243	147
General and administrative expenses [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	415	323	386
Research and development expenses [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 1,445	$ 1,497	$ 1,589

Intangible assets, net - Schedule of Estimated Aggregate Amortization Expense (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Finite-Lived Intangible Assets [Line Items]
2018	$ 697
2019	405
2020	338
2021	312
2022 and thereafter	$ 3,759

Intangible assets, net - Schedule of Weighted Average Amortization Periods of Intangible Assets (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization periods of intangible assets	11 years	11 years
Land use right [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization periods of intangible assets	30 years	30 years
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization periods of intangible assets	7 years	7 years
Non-compete agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization periods of intangible assets	4 years	4 years
Technology (including right-to-use) [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization periods of intangible assets	8 years	8 years
Acquired computer software [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization periods of intangible assets	5 years	5 years
Internal use software development costs [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization periods of intangible assets	5 years	5 years
Online game licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization periods of intangible assets	3 years	3 years

Inventories (Details) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Inventories [Line Items]

$ 3,879

$ 374

Others [Member]

Inventories [Line Items]

Hardware Devices [Member]

333

191

Inventories [Line Items]

^[1]

$ 3,546

$ 183

[1]	Hardware devices include OneThing Cloud, ZQB, XZB and hard discs.

Long-term investments - Schedule of Long-Term Investments (Detail) - USD ($)

1 Months Ended

12 Months Ended

Jan. 31, 2017

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Balance at beginning of the year

$ 1,790,000

$ 2,162,000

Additions

1,442,000

Disposal

(701,000)

Share of loss from equity investees

(1,875,000)

^[1]

(195,000)

^[1]

$ (12,000)

Dilution gains arising from deemed disposal of investments

326,000

^[1]

Transfer to cost method investments

(786,000)

Exchange differences

70,000

(132,000)

Balance at end of the year

311,000

1,790,000

2,162,000

Balance at beginning of the year

$ 39,002,000

39,002,000

9,157,000

Additions

^[2]

2,793,000

32,707,000

Disposal

^[3]

(383,000)

(2,220,000)

Dilution gains arising from deemed disposal of investment

^[4]

165,000

689,000

Transfer from equity method investments

786,000

Exchange difference

1,449,000

(463,000)

Less: impairment loss on long-term investments

^[5]

(596,000)

(1,654,000)

Balance at end of the year

42,430,000

39,002,000

$ 9,157,000

Total long-term investments

$ 42,741,000

$ 40,792,000

[1]	In 2016, the Group made an equity investment in a privately-held company, Big Data, of USD 1,442,000 for 43.16% equity interest. The Group classified Big Data as an equity method investment as it had only significant influence instead of control over Big Data. In January of 2017, Big Data issued certain new shares to a third party and its original shareholders and the Group’s interest in Big Data diluted from 43.16% to 28.77% with a dilution gain of USD 326,000 arising from the deemed disposal. As at December 31, 2017, the Group recognized full impairment of USD 1,251,000 for its interest in Big Data as share of loss from equity investees after taking into account the latest operation status and financial position of Big Data.
[2]	In May 2017, the Group made additional investment by USD 1,263,000 in Yunhui Tianxia from 7.5% to 13.7%. In July 2017, the Group also made additional equity investment in Hangzhou Feixiang of USD 1,530,000. As the result of the new investment, the Group’s equity interest increased from 20% to 28% and the Group continued to use the cost method to account for this investment due to the lack of significant influence over the investee.
[3]	In June 2017, the Group disposed of entire interests (10%) in Shenzhen Kushiduo with a carrying value of USD 383,000 at a consideration of approximately USD 191,500. As a result of the disposal, the Group recognized in a disposal loss of USD 191,500 in the other income, net (Note 23).
[4]	In January of 2017, Shanghai Lexiang issued new shares to a third party investor resulting in the Group’s interest in Shanghai Lexiang diluted from 15% to 14.12% with a dilution gain of USD 222,000 arising from the deemed disposal.
[5]	The Group recognized impairment against its investments in Shanghai Guozhi and Guangzhou Hongsi of USD 149,000 and USD 447,000, respectively after considering the latest operation status and financial and liquidity position.

Long-term investments - Schedule of Equity Investments, Percentage of Ownership of Common Share (Detail)

Dec. 31, 2017

Jun. 30, 2017

Jan. 31, 2017

Dec. 31, 2016

Zhuhai Qianyou [Member]

Equity method investments, Percentage of ownership of common share

19.00%

Guangzhou Yuechuan [Member]

Equity method investments, Percentage of ownership of common share

9.30%

Chengdu Diting [Member]

Equity method investments, Percentage of ownership of common share

12.74%

Shenzhen Kushiduo [Member]

Cost method investments, Percentage of ownership of common share

0.00%

^[1]

10.00%

^[1]

Shanghai Guozhi [Member]

Cost method investments, Percentage of ownership of common share

^[2]

16.80%

Guangzhou Hongsi [Member]

Cost method investments, Percentage of ownership of common share

^[2]

19.90%

Xiamen Diensi [Member]

Cost method investments, Percentage of ownership of common share

14.25%

11.2 Capital [Member]

Cost method investments, Percentage of ownership of common share

2.03%

Cloudtropy [Member]

Cost method investments, Percentage of ownership of common share

9.69%

Equity method investments, Percentage of ownership of common share

^[3]

28.77%

43.16%

Shanghai Lexiang [Member]

Equity method investments, Percentage of ownership of common share

28.77%

43.16%

Cost method investments, Percentage of ownership of common share

14.12%

^[4]

14.12%

15.00%

^[4]

Hangzhou Feixiang [Member]

Equity method investments, Percentage of ownership of common share

20.00%

28.00%

Cost method investments, Percentage of ownership of common share

^[5]

28.00%

20.00%

Shenzhen Meizhi Interactive Technology Co Ltd [Member]

Cost method investments, Percentage of ownership of common share

9.40%

8.13%

Beijing Yunhui [Member]

Cost method investments, Percentage of ownership of common share

^[5]

13.70%

7.50%

Arashi Vision [Member]

Cost method investments, Percentage of ownership of common share

12.16%

Cloudin Technology [Member]

Cost method investments, Percentage of ownership of common share

4.61%

[1]	In June 2017, the Group disposed of entire interests (10%) in Shenzhen Kushiduo with a carrying value of USD 383,000 at a consideration of approximately USD 191,500. As a result of the disposal, the Group recognized in a disposal loss of USD 191,500 in the other income, net (Note 23).
[2]	The Group recognized impairment against its investments in Shanghai Guozhi and Guangzhou Hongsi of USD 149,000 and USD 447,000, respectively after considering the latest operation status and financial and liquidity position.
[3]	In 2016, the Group made an equity investment in a privately-held company, Big Data, of USD 1,442,000 for 43.16% equity interest. The Group classified Big Data as an equity method investment as it had only significant influence instead of control over Big Data. In January of 2017, Big Data issued certain new shares to a third party and its original shareholders and the Group’s interest in Big Data diluted from 43.16% to 28.77% with a dilution gain of USD 326,000 arising from the deemed disposal. As at December 31, 2017, the Group recognized full impairment of USD 1,251,000 for its interest in Big Data as share of loss from equity investees after taking into account the latest operation status and financial position of Big Data.
[4]	In January of 2017, Shanghai Lexiang issued new shares to a third party investor resulting in the Group’s interest in Shanghai Lexiang diluted from 15% to 14.12% with a dilution gain of USD 222,000 arising from the deemed disposal.
[5]	In May 2017, the Group made additional investment by USD 1,263,000 in Yunhui Tianxia from 7.5% to 13.7%. In July 2017, the Group also made additional equity investment in Hangzhou Feixiang of USD 1,530,000. As the result of the new investment, the Group’s equity interest increased from 20% to 28% and the Group continued to use the cost method to account for this investment due to the lack of significant influence over the investee.

Long-term investments -Additional Information (Detail)

1 Months Ended

12 Months Ended

Jun. 30, 2017

USD ($)

Jan. 31, 2017

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Jul. 31, 2017

USD ($)

Jul. 31, 2015

USD ($)

Jul. 31, 2015

CNY (¥)

Cost Method Investments

$ 42,430,000

$ 39,002,000

$ 9,157,000

Disposal Group, Including Discontinued Operation, Consideration

$ 19,896,000

¥ 130,000,000

Equity Method Investment, Deferred Gain on Sale

$ 326,000

326,000

^[1]

Other than Temporary Impairment Losses, Investments

596,000

Cost Method Investment, Deferred Gain on Sale

^[2]

$ 165,000

$ 689,000

Hangzhou Feixiang [Member]

Disposal Group, Including Discontinued Operation, Other Income

^[3]

28.00%

20.00%

$ 1,530,000

Equity Method Investment, Ownership Percentage

20.00%

28.00%

Yunhui Tianxia [Member]

Shanghai Lexiang [Member]

7.50%

13.70%

Cost Method Investments

$ 1,263,000

Equity Method Investment, Ownership Percentage

14.12%

^[2]

15.00%

^[2]

28.77%

43.16%

Cost Method Investment, Deferred Gain on Sale

$ 222,000

Shenzhen Kushiduo [Member]

Disposal Group, Including Discontinued Operation, Consideration

10.00%

0.00%

^[4]

10.00%

^[4]

Cost Method Investments

$ 383,000

191,500

Disposal Group, Including Discontinued Operation, Other Income

$ 191,500

Shanghai Guozhi [Member]

Other than Temporary Impairment Losses, Investments

^[5]

16.80%

$ 149,000

Guangzhou Hongsi [Member]

Other than Temporary Impairment Losses, Investments

^[5]

19.90%

$ 447,000

Equity Method Investment, Ownership Percentage

^[1]

28.77%

43.16%

[1]	In 2016, the Group made an equity investment in a privately-held company, Big Data, of USD 1,442,000 for 43.16% equity interest. The Group classified Big Data as an equity method investment as it had only significant influence instead of control over Big Data. In January of 2017, Big Data issued certain new shares to a third party and its original shareholders and the Group’s interest in Big Data diluted from 43.16% to 28.77% with a dilution gain of USD 326,000 arising from the deemed disposal. As at December 31, 2017, the Group recognized full impairment of USD 1,251,000 for its interest in Big Data as share of loss from equity investees after taking into account the latest operation status and financial position of Big Data.
[2]	In January of 2017, Shanghai Lexiang issued new shares to a third party investor resulting in the Group’s interest in Shanghai Lexiang diluted from 15% to 14.12% with a dilution gain of USD 222,000 arising from the deemed disposal.
[3]	In May 2017, the Group made additional investment by USD 1,263,000 in Yunhui Tianxia from 7.5% to 13.7%. In July 2017, the Group also made additional equity investment in Hangzhou Feixiang of USD 1,530,000. As the result of the new investment, the Group’s equity interest increased from 20% to 28% and the Group continued to use the cost method to account for this investment due to the lack of significant influence over the investee.
[4]	In June 2017, the Group disposed of entire interests (10%) in Shenzhen Kushiduo with a carrying value of USD 383,000 at a consideration of approximately USD 191,500. As a result of the disposal, the Group recognized in a disposal loss of USD 191,500 in the other income, net (Note 23).
[5]	The Group recognized impairment against its investments in Shanghai Guozhi and Guangzhou Hongsi of USD 149,000 and USD 447,000, respectively after considering the latest operation status and financial and liquidity position.

Commitments and contingencies - Capital commitments (Details) $ in Thousands	Dec. 31, 2017 USD ($)
2018	$ 2,953
2019	971
2020	444
Unrecorded Unconditional Purchase Obligation	$ 4,368

Taxation - Deferred Tax Asset and Liability Balances (Detail) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Deferred Tax Assets, Net of Valuation Allowance, Noncurrent

^[1]

$ 6,072

$ 3,272

Within one year

Deferred Tax Assets, Net of Valuation Allowance, Noncurrent

6,033

After one year

Deferred Tax Assets, Net of Valuation Allowance, Noncurrent

$ 39

[1]	As at December 31, 2017, the deferred tax asset and liability balances are expected to be recoverable as follows

Deferred revenue and income - Schedule of Deferred Revenue and Income (Detail) - USD ($)

Dec. 31, 2017

Dec. 31, 2016

$ 31,288,000

$ 27,276,000

^[1]

(3,242,000)

(4,082,000)

Membership subscription revenues [Member]

28,046,000

23,194,000

26,303,000

22,115,000

Online game revenues [Member]

(425,000)

(820,000)

Government grants [Member]

174,000

152,000

^[2]

3,811,000

4,195,000

Reimbursement from the depository [Member]

(2,509,000)

(2,719,000)

^[3]

616,000

814,000

Other Deferred Revenue [Member]

(308,000)

(543,000)

^[4]

$ 384,000

$ 0

[1]	As of December 31, 2017, the non-current portion included membership subscription revenue of USD 425,000 (2016: USD 820,000), government grants of USD 2,509,000 (2016: USD 2,719,000), and reimbursement from the depositary of USD 308,000 (2016: USD 543,000).
[2]	In June 2017, the Group received government grant of USD 1,224,000. This government grant was recognized as deferred income and amortized in 5 years under the property, plant and equipment depreciation policy.
[3]	In December 2017, the Company received from its depositary bank a reimbursement of USD 127,000, net of withholding tax of USD 42,000. This reimbursement was recognized as deferred income and amortized over the depositary service period of 5 years.
[4]	Others include live video revenues and issuance of LinkTokens.

The carrying amount of consideration received or receivable as of the balance sheet date on potential earnings that were not recognized as revenue in conformity with GAAP, and which are expected to be recognized as such within one year or the normal operating cycle, if longer, including sales, license fees, and royalties, but excluding interest income.

The noncurrent portion of deferred revenue amount as of balance sheet date. Deferred revenue is a liability related to a revenue producing activity for which revenue has not yet been recognized, and is not expected to be recognized in the next twelve months. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

Deferred revenue and income - Schedule of Deferred Revenue and Income (Parenthetical) (Detail) - USD ($)

1 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Reimbursement received from depository

$ 127,000

Deferred income withholding tax

$ 42,000

Deferred income amortized depositary service period

5 years

Increase Decrease In Deferred Government Grants

^[1]

$ 3,242,000

$ 4,082,000

$ 1,224,000

(3,493,000)

(3,473,000)

$ (1,969,000)

Deferred Income Amortization Period For Government Grant

5 years

Membership subscription revenues [Member]

Government grants [Member]

425,000

820,000

Reimbursement from the depository [Member]

2,509,000

2,719,000

Payroll and welfare (note b)

$ 308,000

$ 543,000

[1]	As of December 31, 2017, the non-current portion included membership subscription revenue of USD 425,000 (2016: USD 820,000), government grants of USD 2,509,000 (2016: USD 2,719,000), and reimbursement from the depositary of USD 308,000 (2016: USD 543,000).

Accrued liabilities and other payables - Schedule of Accrued Liabilities and Other Payables (Detail) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

^[1]

$ 15,170

$ 11,624

Agency commissions and rebates—online advertising

2,890

2,297

Payables for advertisement on exclusive online games

1,826

1,521

Receipts in advance from customers

^[2]

16,833

5,538

Tax levies

^[1]

10,234

1,864

Payables for purchase of equipment

461

3,235

Legal and litigation related expenses (Note 24)

1,755

2,904

Professional fees

1,045

1,007

Staff reimbursements

355

452

Rental expense

Payables for proceeds from selling exercised stock options

352

Payables for gaming distribution

199

147

^[3]

4,501

807

Payables for Technological Services

944

234

Payables for construction in progress

345

Customer’s deposit

306

Payables for Fulfilment Services

298

Others

2,635

1,144

Total

$ 59,871

$ 33,131

[1]	Payroll and welfare increased due to the performance bonus proposed in December 2017, resulting in an incrase in individual income tax payable. Value added tax payable also increased, which is related to revenue increment in sale of product.
[2]	As at December 31, 2017, receipts in advance from customers mainly represents prepayment from customers in respect of cloud computing, live video and mobile game. The increment is mainly driven by the popularity of OneThing Cloud.
[3]	Kankan failed to settle the transferred trade payables, which resulted in the creditors brought litigation against Kankan as well as Xunlei, due to the fact that Xunlei remained as the contracted party in the relevant purchase contracts. In light of this, for the year ended December 31, 2017, payables of USD 3,074,000 was accured by Xunlei, out of which, USD 2,769,000 remain unsettled as of December 31, 2017 (note 7).

Accrued liabilities and other payables - Schedule of Accrued Liabilities and Other Payables (Parenthetical) (Details) - 12 months ended Dec. 31, 2017 - Kankan [Member]	USD ($)	CNY (¥)
Disposal Group Including Discontinued Operation, Amount Of Accrual Of Unsettled Balances As Legal Expenses	$ 3,074,000
Disposal Group, Including Discontinued Operation, Accounts Payable	2,769,000	¥ 18,094,000
Proceeds from Collection of Notes Receivable	$ 1,732,000

Cost of revenues - Schedule of Cost of Revenues (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred Revenue Arrangement [Line Items]
Cost of revenues	$ 117,876	$ 79,928	$ 59,250
Bandwidth costs [Member]
Deferred Revenue Arrangement [Line Items]
Cost of revenues	68,441	55,135	37,218
Payment handling fees [Member]
Deferred Revenue Arrangement [Line Items]
Cost of revenues	4,855	6,919	8,909
Depreciation of servers and other equipment [Member]
Deferred Revenue Arrangement [Line Items]
Cost of revenues	7,647	5,848	4,873
Cost Of Inventories Sold [Member]
Deferred Revenue Arrangement [Line Items]
Cost of revenues	21,485	4,357	2,621
Cost Of Live Video [Member]
Deferred Revenue Arrangement [Line Items]
Cost of revenues	12,724	2,505	204
Other Cost Of Reveue [Member]
Deferred Revenue Arrangement [Line Items]
Cost of revenues	$ 2,724	$ 5,164	$ 5,425

Common shares - Additional Information (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, par value	$ 0.00025	$ 0.00025
Common stock, shares outstanding	333,643,560	330,545,000
Common stock voting rights, description	The holders of common shares are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, which is subject to the approval by the holders of the common shares representing a majority of the aggregate voting power of all outstanding shares.

Repurchase of shares - Additional Information (Detail) - $ / shares						1 Months Ended									12 Months Ended
	Feb. 10, 2017	Jan. 13, 2017	Nov. 30, 2016	Oct. 27, 2016	Apr. 14, 2016	Dec. 31, 2017	Mar. 31, 2017	Dec. 30, 2016	Sep. 30, 2016	Aug. 30, 2016	Jul. 29, 2016	Jun. 30, 2016	May 31, 2016	Mar. 30, 2016	Dec. 31, 2016
Share Repurchase Program, 2016 [Member]
Equity, Class of Treasury Stock [Line Items]
Total Number of ADS Purchased			21,229	31,400	457,900			173,312	15,467	229,695	555,357	111,459	449,696	408,985	2,454,500
Average Price Paid Per Share			$ 4.61	$ 5.11	$ 6.61			$ 4.02	$ 5.33	$ 5.83	$ 5.33	$ 5.24	$ 6.28	$ 6.22
Share Repurchase Program 2017 [Member]
Equity, Class of Treasury Stock [Line Items]
Total Number of ADS Purchased	5,553	994				93,070	86,523
Average Price Paid Per Share	$ 3.75	$ 4.34					$ 3.86

Non-controlling interest - Additional Information (Detail)	Feb. 28, 2010 USD ($)	Feb. 28, 2010 CNY (¥)
Noncontrolling Interest [Line Items]
Minority interest owned by shareholder, amount \| $	$ 439,000
Xunlei Games Development (Shenzhen) Co., Ltd. [Member]
Noncontrolling Interest [Line Items]
Percentage of equity interest owned by parent	70.00%	70.00%
Minority interest owned by shareholder, percent	30.00%	30.00%
Minority interest owned by shareholder, amount \| ¥		¥ 3,000,000

Share-based compensation - Additional Information (Detail) - USD ($) $ in Thousands				1 Months Ended			12 Months Ended
	Dec. 01, 2014	Sep. 05, 2014	Jun. 11, 2014	Nov. 30, 2014	Apr. 30, 2014	Nov. 30, 2013	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2015	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares expected to vest							170,545	1,440,923		1,008,645
Incremental share-based compensation to be recognized	$ 2,214,000
Share options cancelled	3,776,711
Common shares issued				10,000,000
Total fair value, share options vested							$ 6,963,000	$ 6,831,000
Unrecognized share-based compensation costs							$ 167,000	$ 1,358,000
Weighted-average vesting period expected to be recognized							4 years 7 months 20 days	3 years 2 months 12 days
Leading Advice Holdings Limited [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares issued					14,195,412	9,073,732
Restricted shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted	1,505,787
Kingsoft Cloud Storage Business [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Replacement award attributable to pre-combination service		$ 303,000
Business acquisition date							Sep. 05, 2014
Replacement award attributable to post-combination service		$ 44,000
2010 share incentive plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vesting period, description							Stock options granted to employees and officers vest over a four-year schedule as stated below: (1) One-fourth of the options shall be vested upon the first anniversary of the grant date; (2) The remaining three quarters of the options shall be vested on monthly basis over the next thirty-six months. (1/48 of options shall be vested per month subsequently)
Number of shares available for grant							2,627,465
Extended maturity date of share options							Jun. 11, 2015
Lock-up period for shares from IPO closing date							6 months
Incremental share-based compensation to be recognized			$ 768,000
2010 share incentive plan [Member] \| Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vesting period							32 months
2010 share incentive plan [Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated forfeiture rate							20.00%
2010 share incentive plan [Member] \| Restricted shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted							2,050,000	1,170,000
2010 share incentive plan [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vesting period	2 years
2010 share incentive plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vesting period	4 years 6 months
Number of shares available for grant											26,822,828
2013 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted							8,664,980	8,664,980
2013 Plan [Member] \| Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares expected to vest							5,098,345
Stock option vesting period							4 years
Stock option vesting period, description							one-fourth of the restricted shares shall be vested upon the first, second, third, and fourth anniversary of the grant date, respectively.
2013 Plan [Member] \| Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares expected to vest							1,102,430
Stock option vesting period							5 years
Stock option vesting period, description							one-fifth of the restricted shares shall be vested upon the first, second, third, fourth and fifth anniversary of the grant date, respectively.
2013 Plan [Member] \| Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares expected to vest							854,405
Stock option vesting period							44 months
Stock option vesting period, description							one-fourth of the restricted shares shall be vested upon the eighth month, and three-fourth of the restricted shares shall be vested during the remaining thirty six months.
2013 Plan [Member] \| Tranche Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares expected to vest							689,700
Stock option vesting period							4 years
Stock option vesting period, description							one-fourth, and one-fourth of the restricted shares shall be vested upon the second, third and fourth anniversary of the grant date, respectively.
2013 Plan [Member] \| Tranche Five [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares expected to vest							640,100
Stock option vesting period							2 years
Stock option vesting period, description							half of the restricted shares shall be vested upon the first and second anniversary of the grant date, respectively.
2013 Plan [Member] \| Tranche Six [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares expected to vest							160,000
Stock option vesting period							1 year
Stock option vesting period, description							one-year schedule in which all of the restricted shares shall be vested upon the first anniversary of the grant date.
2013 Plan [Member] \| Tranche Seven [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares expected to vest							120,000
2013 Plan [Member] \| Restricted shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant							9,073,732
2013 Plan [Member] \| Restricted shares [Member] \| Scenario, Forecast [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant									9,073,732
2014 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant					14,195,412
Unrecognized compensation expense relating to the restricted shares							$ 7,448,000
Restricted shares issued to non-employees							60,000
2014 Plan [Member] \| Senior Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense relating to the restricted shares							$ 1,424,000
Restricted shares issued to non-employees							60,000
2014 Plan [Member] \| Tranche One [Member] \| Certain Officers and Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares expected to vest							9,040,500
Stock option vesting period							5 years
Stock option vesting period, description							one-fifth of the restricted shares shall be vested upon the first, second, third, fourth and fifth anniversary of the grant date, respectively.
2014 Plan [Member] \| Tranche Two [Member] \| Certain Officers and Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares expected to vest							5,400,000
Stock option vesting period							4 years
Stock option vesting period, description							one-fourth of the restricted shares shall be vested upon the first, second, third and fourth anniversary of the grant date, respectively.
2014 Plan [Member] \| Tranche Three [Member] \| Certain Officers and Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares expected to vest							9,000
Stock option vesting period							2 years
Stock option vesting period, description							half of the restricted shares shall be vested upon the first and second anniversary of the grant date, respectively.
2014 Plan [Member] \| Restricted shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted							0	6,749,000
2014 Plan [Member] \| Restricted shares [Member] \| Certain Officers and Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted							14,536,000
2014 Plan [Member] \| Restricted shares [Member] \| Tranche Four [Member] \| Certain Officers and Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares expected to vest							86,500

Share-based compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based compensation
Number of share options, Forfeited	(109,925)	(14,375)
Number of share options, Expired	(989,730)	(182,510)
Number of share options, Exercised	(4,000)	(440,465)
Number of share options, Outstanding, Ending balance	389,815	1,493,470	2,130,820
Number of share options, Vested and expected to vest, Ending balance	170,545	1,440,923	1,008,645
Number of share options, Exercisable, Ending balance	389,190	1,217,050	1,430,870
Weighted average exercise price, Forfeited	$ 2.89	$ 3.21
Weighted average exercise price, Expired	2.28	2.22
Weighted average exercise price, Exercised	0.83	1.81
Weighted average exercise price, Ending balance	3.9	2.65	$ 2.13
Weighted average exercise price, Vested and expected to vest at end of period	3.9	2.67	1.76
Weighted average exercise price, Exercisable at end of period	3.9	2.7	2.16
Weighted-average grant date fair value, Granted	0
Weighted-average grant date fair value, Vested and expected to vest, Ending balance	0.95	0.85	0.73
Weighted-average grant date fair value, Exercisable, Ending balance	$ 0.95	$ 0.84	$ 0.86
Weighted-average remaining contractual life, Ending balance	4 years 7 months 20 days	3 years 4 months 20 days
Weighted-average remaining contractual life, Vested and expected to vest, Ending balance	4 years 7 months 20 days	3 years 2 months 26 days	4 years 7 months 13 days
Weighted-average remaining contractual life, Exercisable, Ending balance	4 years 7 months 20 days	3 years 2 months 12 days	4 years 11 days
Aggregate intrinsic value, Outstanding	$ 0	$ 6	$ 464
Aggregate intrinsic value, Vested and expected to vest, Ending balance	0	6	$ 406
Aggregate intrinsic value, Exercisable, Ending balance	$ 0	$ 6

Share-based compensation - Summary of Restricted Shares Activities (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
2010 share incentive plan [Member] \| Restricted shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares, Unvested, beginning balance	943,220	432,217
Number of restricted shares, Granted	2,050,000	1,170,000
Number of restricted shares, Vested	(115,125)	(274,960)
Number of restricted shares, Forfeited	(1,605,945)	(384,037)
Number of restricted shares, Unvested, Ending balance	1,272,150	943,220	432,217
Number of restricted shares, Vested and expected to vest, Ending balance	1,081,327	801,737
Weighted-Average Grant Date Fair Value, Granted	$ 0.69	$ 1.18
2013 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares, Granted	8,664,980	8,664,980
2013 Plan [Member] \| Restricted shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares, Unvested, beginning balance	1,714,535	3,796,398	7,200,778
Number of restricted shares, Vested	(996,835)	(1,520,760)	(2,627,815)
Number of restricted shares, Forfeited	(129,940)	(561,103)	(776,565)
Number of restricted shares, Unvested, Ending balance	587,760	1,714,535	3,796,398
Number of restricted shares, Vested and expected to vest, Ending balance	499,596	1,457,355	3,226,939
2014 Plan [Member] \| Restricted shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares, Unvested, beginning balance	10,276,300	5,761,400
Number of restricted shares, Granted	0	6,749,000
Number of restricted shares, Vested	(2,447,950)	(1,262,200)
Number of restricted shares, Forfeited	(2,022,000)	(971,900)
Number of restricted shares, Unvested, Ending balance	5,806,350	10,276,300	5,761,400
Number of restricted shares, Vested and expected to vest, Ending balance	4,935,398	8,734,855
Weighted-Average Grant Date Fair Value, Granted	$ 0	$ 1.12

Share-based compensation - Schedule of Fair Values of Stock Options Granted (Detail)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Risk-free interest rate, Minimum

^[1]

0.77%

Risk-free interest rate, Maximum

^[1]

1.76%

Dividend yield

^[2]

0.00%

Volatility rate, Minimum

^[3]

40.07%

Volatility rate, Maximum

^[3]

43.30%

Minimum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Expected term (in years)

^[4]

4 years 22 days

Maximum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Expected term (in years)

^[4]

5 years 6 months 22 days

[1]	The risk-free interest rate of periods within the contractual life of the share option is based on the USD denominated China Government Bond yield as at the valuation dates.
[2]	The Company has no history or expectation of paying dividends on its common shares.
[3]	Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates.
[4]	The expected term is developed by assuming the share options will be exercised in the middle point between the vesting dates and maturity dates.

Share-based compensation - Schedule of Recognized Compensation Costs (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total compensation costs	$ 8,330	$ 9,348	$ 9,728
Sales and marketing expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total compensation costs	88	98	131
General and administrative expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total compensation costs	5,800	6,267	6,701
Research and development expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total compensation costs	$ 2,442	$ 2,983	$ 2,896

Basic and Diluted Net income / (loss) Per Share (Schedule of Basic and Diluted Net income / (loss) Per Share) (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Numerator:
Net loss from continuing operations	$ (44,216)	$ (30,806)	$ (18,567)
Net loss from discontinued operations	6,407	6,623	4,101
Net loss	(37,809)	(24,183)	(14,466)
Less: Net income/(loss) attributable to the non-controlling interest	13	(72)	(1,299)
Net loss attributable to Xunlei Limited	(37,822)	(24,111)	(13,167)
Net loss attributable to Xunlei Limited’s common shareholders	(37,822)	(24,111)	(13,167)
Numerator of basic net loss per share from continuing operations	(44,229)	(30,734)	(17,268)
Numerator of basic net income per share from discontinued operations	6,407	6,623	4,101
Numerator for diluted loss per share from continuing operations	(44,229)	(30,734)	(17,268)
Numerator for diluted loss per share from discontinued operations	$ 6,407	$ 6,623	$ 4,101
Denominator:
Denominator for basic net loss per share-weighted average shares outstanding	331,731,963	334,155,668	335,987,595
Denominator for diluted net loss per share	331,731,963	334,155,668	335,987,595
Basic net loss per share from continuing operations	$ (0.1333)	$ (0.0919)	$ (0.0514)
Basic net loss per share from discontinued operations	0.0193	0.0198	0.0122
Diluted net loss per share from continuing operations	(0.1333)	(0.0919)	(0.0514)
Diluted net loss per share from discontinued operations	$ 0.0193	$ 0.0198	$ 0.0122

Basic and diluted net income / (loss) per share (Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Income per Common Share) (Detail) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stock options and restricted shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share options and restricted shares —weighted average	5,621,418	2,902,950	1,673,342

Related Party Transactions - Schedule of Relationship Between Related Parties with their Groups (Detail)	12 Months Ended
	Dec. 31, 2017
Zhuhai Qianyou [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Equity investment of the Group
Hao Cheng [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Co-founder and shareholder of the Group
Chuan Wang [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Director of the Company
Shenglong Zou [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Co-founder and shareholder of the Group
Beijing Millet Technology Co., Ltd. (“Beijing Xiaomi”) [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Company owned by a shareholder of the Group
Leading Advice Holdings Limited [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Company owned by a Co-founder and shareholder of the Group
Vantage Point Global Limited [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Shareholder of the Company
Aiden & Jasmine Limited [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Shareholder of the Company
Kingsoft Corporation Limited [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Shareholder of the Company
King Venture Holdings Limited [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Principal shareholder of the Group (shareholding >=10%)
Xiaomi Venture Limited [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Principal shareholder of the Group
Morningside Technology Investments Limited [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Shareholder of the Group
Shenzhen Mojingou Information Service Co., Ltd [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Equity investment of the Group
Shenzhen Xunlei Finance Information Service Co., Ltd. [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Subsidiary of the Group’s equity investment
Shenzhen Crystal Technology Co., Ltd. [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Company owned by a Co-founder and director of the Group
Millet Communication Technology Co., Ltd. (“Millet Communication Technology”) [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Company owned by a shareholder of the Group
Beijing Millet Electronic Products Co., Ltd. [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Company owned by a shareholder of the Group
Beijing Millet Digital Technology Co., Ltd. [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Company owned by a shareholder of the Group
Millet Technology Co., Ltd. [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Company owned by a shareholder of the Group
Shenzhen Thunder Trade Service Co., Ltd [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Subsidiary of the Group’s equity investment
Shenzhen Thunder Economic Consulting Co., Ltd [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Subsidiary of the Group’s equity investment
Shenzhen thunderbolt Digital Technology Co., Ltd [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Subsidiary of the Group’s equity investment
Beijing Millet Mobile Software Co., Ltd [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Company owned by a shareholder of the Group
Guangzhou Millet Information Service Co., Ltd [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Company owned by a shareholder of the Group
Shenzhen Xunyi Network Technology Corp., Ltd. Shenzhen Xunyi [Member]
Schedule of Other Related Party Transactions [Line Items]
Related parties relationship	Company operated by few former core members of Xunlei’s web game business

Related Party Transactions - Schedule of Significant Related Party Transactions (Detail) - USD ($)
$ in Thousands

12 Months Ended

18 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Jun. 15, 2017

Schedule of Other Related Party Transactions [Line Items]

Schedule of Other Related Party Transactions [Line Items]

$ 200,583

$ 140,206

$ 104,521

Advertisement revenue

22,484

16,874

4,802

Zhuhai Qianyou [Member]

Game sharing costs paid and payable to Zhuhai Qianyou

^[1]

154

127

Millet Technology Co., Ltd. [Member]

Schedule of Other Related Party Transactions [Line Items]

Millet Communication Technology Co., Ltd. [Member]

316

Schedule of Other Related Party Transactions [Line Items]

Beijing Millet Technology Co., Ltd. [Member]

1,701

2,483

Marketing Expense

Schedule of Other Related Party Transactions [Line Items]

Technology service revenue related party

1,010

344

Advertisement revenue

$ 5,800

Beijing Xiaomi [Member]

Schedule of Other Related Party Transactions [Line Items]

Advertisement revenue

125

Aiden & Jasmine Limited [Member]

Schedule of Other Related Party Transactions [Line Items]

Accrued to related party

^[2]

Vantage Point Global Limited [Member]

Schedule of Other Related Party Transactions [Line Items]

Accrued to related party

^[2]

146

Beijing Xiaomi Mobile Software Co., Ltd. [Member]

Schedule of Other Related Party Transactions [Line Items]

Technology service revenue related party

^[3]

2,245

^[4]

$ 5,803

$ 0

[1]	The Company obtained an exclusive game operation right from Zhuhai Qianyou, which is specialized in developing online games. According to the agreement, the Company will share revenues derived by the licensed games with Zhuhai Qianyou.
[2]	In 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 (Founder’s company) 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 Sellers (Aiden & Jasmine Limited and Vantage Point Global Limited) have not been specifically required by the applicable governmental or regulatory authority to pay any taxes as required under the applicable laws in connection with the repurchase, after the fifth anniversary of the Closing Date, the Company will pay to the Sellers the Withheld Price with a simple interest thereon at the rate of five percent (5%) per annum (the “repayment price”) from the Closing Date. Therefore, the Withheld Price for Aiden & Jasmine Limited and Vantage Point Global Limited was USD 1,125,000 (including interest of USD 37,000) and USD 3,012,000 (including interest of USD 100,000) respectively. The interest accrued in 2017 was USD 54,000 and 146,000 for Aiden & Jasmine Limited and Vantage Point Global Limited respectively.
[3]	In 2017, Onething Technology entered into a contract with Beijing Millet Mobile Software for the provision of bandwidth to Beijing Millet Mobile Software at a mutually agreed price.
[4]	The Group is entitled to receive a mutually agreed percentage of net advertising revenue covering a period from January 2016 to mid-June 2017, as compensation for technology solution services provided to Beijing Xiaomi Mobile Software.

Related Party Transactions - Additional Information (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2014

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Treasury stock [Member]

Schedule of Other Related Party Transactions [Line Items]

Interest on withheld tax price

5.00%

Aiden & Jasmine Limited [Member]

Schedule of Other Related Party Transactions [Line Items]

Aiden & Jasmine Limited [Member] | Treasury stock [Member]

^[1]

$ 54

Schedule of Other Related Party Transactions [Line Items]

Shares repurchased

3,860,733

Shares repurchased, value

$ 10,879,000

Interest on withheld tax

37,000

Vantage Point Global Limited [Member]

$ 1,125,000

54,000

Schedule of Other Related Party Transactions [Line Items]

Vantage Point Global Limited [Member] | Treasury stock [Member]

^[1]

146

$ 146

Schedule of Other Related Party Transactions [Line Items]

Shares repurchased

10,334,679

Shares repurchased, value

$ 29,121,000

Interest on withheld tax

100,000

$ 3,012,000

$ 146,000

[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 (Founder’s company) 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 Sellers (Aiden & Jasmine Limited and Vantage Point Global Limited) have not been specifically required by the applicable governmental or regulatory authority to pay any taxes as required under the applicable laws in connection with the repurchase, after the fifth anniversary of the Closing Date, the Company will pay to the Sellers the Withheld Price with a simple interest thereon at the rate of five percent (5%) per annum (the “repayment price”) from the Closing Date. Therefore, the Withheld Price for Aiden & Jasmine Limited and Vantage Point Global Limited was USD 1,125,000 (including interest of USD 37,000) and USD 3,012,000 (including interest of USD 100,000) respectively. The interest accrued in 2017 was USD 54,000 and 146,000 for Aiden & Jasmine Limited and Vantage Point Global Limited respectively.

Related Party Transactions - Schedule of Amount Due to from Related Party (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Schedule of Other Related Party Transactions [Line Items]
Accounts payable to related party	$ 10	$ 45
Long-term payable to related party	4,737	4,537
Accounts and other receivable from related party	6,986	1,097
Zhuhai Qianyou [Member]
Schedule of Other Related Party Transactions [Line Items]
Accounts payable to related party	10	45
Aiden & Jasmine Limited [Member]
Schedule of Other Related Party Transactions [Line Items]
Long-term payable to related party	1,289	1,233
Vantage Point Global Limited [Member]
Schedule of Other Related Party Transactions [Line Items]
Long-term payable to related party	3,448	3,304
Beijing Xiaomi [Member]
Schedule of Other Related Party Transactions [Line Items]
Accounts and other receivable from related party	0	95
Millet Communication Technology Co., Ltd. [Member]
Schedule of Other Related Party Transactions [Line Items]
Accounts and other receivable from related party	0	939
Beijing Xiaomi Mobile Software Co., Ltd.
Schedule of Other Related Party Transactions [Line Items]
Accounts and other receivable from related party	6,738	0
Beijing Millet Payment Technologies Limited [Member]
Schedule of Other Related Party Transactions [Line Items]
Accounts and other receivable from related party	92	38
Guangzhou Millet Information Service Co., Ltd [Member]
Schedule of Other Related Party Transactions [Line Items]
Accounts and other receivable from related party	136	0
Shenzhen Xunlei Finance Information Service Co., Ltd. [Member]
Schedule of Other Related Party Transactions [Line Items]
Accounts and other receivable from related party	0	5
Shenzhen Crystal Technology Co., Ltd. [Member]
Schedule of Other Related Party Transactions [Line Items]
Accounts and other receivable from related party	6	6
Shenglong Zou [Member]
Schedule of Other Related Party Transactions [Line Items]
Accounts and other receivable from related party	9	9
Chuan Wang [Member]
Schedule of Other Related Party Transactions [Line Items]
Accounts and other receivable from related party	$ 5	$ 5

Taxation - Additional Information (Detail) - USD ($)

1 Months Ended

12 Months Ended

Jan. 31, 2008

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Favorable statutory tax rate

25.00%

Undistributed earnings of foreign subsidiaries

$ 12,568,000

$ 19,883,000

Foreign withholding taxes

1,257,000

$ 1,988,000

Tax Credit Carryforward, Amount

^[1]

$ 10,314,000

PRC Enterprise [Member]

Effective income tax rate

25.00%

Income tax holiday description

Computer was further exempted from EIT for two years commencing from its first year of profitable operation after offsetting prior years tax losses, followed by a 50% reduction for the next three years (2-year Exemption and 3-year 50% Reduction).

Xunlei Computer [Member]

Effective Income Tax Rate Reconciliation, Deduction, Research And Development, Percent

50.00%

[1]	As at December 31, 2017, the deferred tax asset and liability balances are expected to be recoverable as follows

Taxation - Schedule of Current and Deferred Portions of Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current income tax expenses /(benefit)	$ (38)	$ 71	$ 289
Deferred income tax benefit	(2,214)	(2,540)	(4,034)
Income tax benefit	$ (2,252)	$ (2,469)	$ (3,745)

Taxation - Summary of Aggregate Amount and Per Share Effect of Tax Holiday (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Aggregate dollar effect	$ (4,102)	$ (1,430)	$ (830)
Per share effect—basic	$ (0.01)	$ 0	$ 0
Per share effect—diluted	$ (0.01)	$ 0	$ 0

Taxation - Reconciliation of Total Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Continuing operations
Income tax benefit at PRC statutory rate (based on statutory tax rate applicable to enterprises in China)	$ (11,617)	$ (8,319)	$ (5,202)
Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC	1,341	2,145	2,400
Non-deductible expenses	32	12	14
Effect of Super Deduction available to Shenzhen Xunlei	(546)	(901)	0
Effect of tax holiday	4,102	2,234	1,537
Change in valuation allowance of deferred tax assets	6,748	0	4,750
Effect on deferred tax assets due to change in tax rates	0	0	(8)
Outside basis difference arising from VIE and its subsidiaries in the PRC	(652)	(5,743)	(2,174)
Expiration of tax loss	0	91	290
Others	(1,660)	8,012	(5,352)
Income tax benefit	$ (2,252)	$ (2,469)	$ (3,745)

Taxation - Summary of Changes in Deferred Tax Asset and Liability Balances (Detail) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Deferred tax assets, current portion:

Net operating loss carried forward

$ 0

$ 1,276

Amortization of intangible assets arising from intragroup transactions

Valuation allowance

(106)

Deferred tax assets, current portion, net

1,221

Deferred tax assets, non-current portion:

Net operating loss carried forward

19,246

12,093

Impairment of long-term equity investment

562

348

Allowance for advance to suppliers

576

Impairment of Intangible asset

686

Impairment of fixed asset

151

Impairment of other receivables

1,938

Valuation allowance

(16,599)

(9,745)

Deferred tax assets, non-current portion, net

^[1]

6,072

3,272

Deferred tax liabilities, non-current portion:

Outside basis difference

$ (635)

[1]	As at December 31, 2017, the deferred tax asset and liability balances are expected to be recoverable as follows

Taxation - Summary of Changes in Deferred Tax Asset and Liability Balances (Parenthetical) (Detail) - Dec. 31, 2017
¥ in Millions

USD ($)

CNY (¥)

^[1]

$ 10,314,000

Deferred tax liabilities

Capitalized software sold at market valuation

$ 6,400,000

¥ 42

[1]	As at December 31, 2017, the deferred tax asset and liability balances are expected to be recoverable as follows

Taxation - Summary of Net Operating Loss Carryforwards (Detail)
$ in Thousands

Dec. 31, 2017

USD ($)

Net operating tax loss carryforwards [Line Items]

Net operating tax loss carryforwards [Line Items]

$ 10,314

^[1]

2018 [Member]

Net operating tax loss carryforwards [Line Items]

5,721

2019 [Member]

Net operating tax loss carryforwards [Line Items]

3,389

2020 [Member]

Net operating tax loss carryforwards [Line Items]

555

2021 [Member]

2022 and thereafter [Member]

Net operating tax loss carryforwards [Line Items]

Government subsidy income

$ 574

[1]	As at December 31, 2017, the deferred tax asset and liability balances are expected to be recoverable as follows

Taxation - Schedule of Movement of Valuation Allowance (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Beginning balance	$ (9,851)	$ (4,559)	$ (291)
Additions	(6,748)	(5,292)	(4,268)
Write-off	0	0	0
Ending balance	$ (16,599)	$ (9,851)	$ (4,559)

Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Fair value measurements, Short term investments	$ 138,915	$ 181,960
Fair value measurements, Total	254,449	259,075
Time deposits [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Fair value measurements, Cash equivalent, time deposits with original maturities less than three months	115,534	115,944
Investments in financial instruments [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Fair value measurements, Short term investments	138,915	143,131
Significant other observable inputs (Level 2) [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Fair value measurements, Total	254,449	259,075
Significant other observable inputs (Level 2) [Member] \| Time deposits [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Fair value measurements, Cash equivalent, time deposits with original maturities less than three months	115,534	115,944
Significant other observable inputs (Level 2) [Member] \| Investments in financial instruments [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Fair value measurements, Short term investments	$ 138,915	$ 143,131

Other Income, Net - Schedule of Other Income, Net (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

$ 2,788

$ 2,358

$ 1,902

Deemed disposal gain on long-term investments

(491)

(689)

(702)

Investment income/loss on disposal of long-term investment

(1,875)

^[1]

(195)

^[1]

(12)

Investment loss on impairment of long-term investment

(596)

(1,654)

(802)

Exchange losses, net

(57)

(354)

(2,771)

Settlement income

533

326

755

Others

704

458

175

Other income, net

7,880

6,503

3,627

Short-term Investments [Member]

Investment income/loss on disposal of long-term investment

4,204

4,054

3,666

Other Long-term Investments [Member]

Investment income/loss on disposal of long-term investment

$ (187)

$ 626

$ 0

[1]

Commitments and contingencies - Additional Information (Detail) ¥ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 USD ($)	Apr. 25, 2018
Loss Contingencies [Line Items]
Legal and litigation related expenses	$ 9,453,000		$ 1,669,000		$ 3,307,000
Legal and litigation related expenses	1,755,000		$ 2,904,000
Litigation Settlement, Amount Awarded to Other Party	3,900,000
Pending Litigation [Member]
Loss Contingencies [Line Items]
Number of lawsuits pending			39
Aggregate amount of claimed damages	16,760,000	¥ 112,000	$ 12,870,000	¥ 89,270
Pending Litigation [Member] \| Scenario, Forecast [Member]
Loss Contingencies [Line Items]
Number of lawsuits pending						42
Switchboard, Servers, Office Software And Construction In Process [Member]
Loss Contingencies [Line Items]
Irrevocable purchase obligations	4,368,000
Rental commitments [Member]
Loss Contingencies [Line Items]
Total lease expenses	2,976,000		2,382,000		2,751,000
Bandwidth Lease Commitments [Member]
Loss Contingencies [Line Items]
Total lease expenses for continuing operations	$ 68,441,000		$ 55,135,000		37,218,000
Total lease expenses for discontinued operations					$ 2,983,000

Commitments and contingencies - Future Minimum Payments under Non-Cancellable Leases (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Rental commitments [Member]
Operating Leased Assets [Line Items]
2018	$ 3,440
2019	1,784
2020	232
Future minimum payments, Total	5,456
Bandwidth Lease Commitments [Member]
Operating Leased Assets [Line Items]
2018	11,536
2019	418
2020	84
Future minimum payments, Total	$ 12,038

Certain risks and concentration - Additional Information (Detail)
$ in Thousands

12 Months Ended

Dec. 31, 2017

USD ($)

Customer

Dec. 31, 2016

USD ($)

Dec. 31, 2015

Maximum foreign ownership in internet information provider or other value-added telecommunication service provider's business allowed under PRC laws and regulations

^[1]

50.00%

Retained earnings and distributable reserves

$ (74,526)

$ (36,704)

Number of top customers accounted for net revenues | Customer

Accounts Payable,Inter-companies Balance, Current

$ 18,704,000

9,360,000

Accrued Liabilities and Other Liabilities, Inter-companies Balance

$ 74,394,000

$ 91,477,000

Net revenues [Member] | Customer concentration risk [Member]

Percentage of net revenues accounted from customers

27.00%

18.00%

26.00%

Variable Interest Entity, Primary Beneficiary [Member]

Retained earnings and distributable reserves

$ 32,222,000

Variable Interest Entity, Not Primary Beneficiary [Member]

Retained earnings and distributable reserves

$ 2,541,000

[1]	In June 2017, the Group disposed of entire interests (10%) in Kushiduo with a carrying value of USD 383,000 at a consideration of approximately USD 191,500. As a result of the disposal, the Group recognized in a disposal loss of USD 191,500 in the other income, net (Note 23).

Certain risks and concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Balance sheet (Detail) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

$ 233,479

$ 199,504

$ 361,777

$ 404,275

138,915

181,960

40,632

14,536

Due from related parties

6,986

1,097

1,221

3,879

374

6,866

13,593

430,783

412,305

Property and equipment, net

^[1]

6,072

3,272

24,685

20,996

Construction in progress

4,517

574

5,511

10,746

Other long-term prepayments

21,760

20,497

1,885

1,187

533,437

509,795

Accounts payable (note a)

49,819

33,376

Due to a related party

Accrued liabilities and other payables (note b)

28,046

23,194

59,871

33,131

141,696

93,405

Deferred revenue and income, non-current portion

^[2]

3,242

4,082

Variable Interest Entity, Primary Beneficiary [Member]

150,600

103,545

48,044

40,393

7,853

28,749

40,938

14,824

Due from related parties

6,970

1,083

971

3,880

374

10,963

15,123

Held-for-sale assets

118,674

101,537

Equity method investments

27,428

25,479

Property and equipment, net

4,555

1,849

19,491

20,039

Construction in progress

4,517

574

5,511

11,083

Other long-term prepayments

21,760

20,497

1,885

1,187

Total non-current assets

85,147

80,708

203,821

182,245

Accounts payable (note a)

^[3]

68,469

44,162

Due to a related party

Accrued liabilities and other payables (note b)

27,738

22,923

Income tax payable

3,128

2,253

^[4]

132,322

104,114

Held-for-sale liabilities

822

1,337

232,489

174,834

Deferred revenue and income, non-current portion

2,934

3,539

Total non-current liabilities

2,934

3,539

$ 235,423

$ 178,373

[1]	As at December 31, 2017, the deferred tax asset and liability balances are expected to be recoverable as follows
[2]	As of December 31, 2017, the non-current portion included membership subscription revenue of USD 425,000 (2016: USD 820,000), government grants of USD 2,509,000 (2016: USD 2,719,000), and reimbursement from the depositary of USD 308,000 (2016: USD 543,000).
[3]	The balance included inter-companies balances with the Company and its subsidiaries of USD 9,360,000 and USD 18,704,000 as of December 31, 2016 and 2017, respectively.
[4]	The balance included inter-companies balances with the Company and its subsidiaries of USD 91,477,000 and USD 74,394,000 as of December 31, 2016 and 2017, respectively.

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, 2017	Dec. 31, 2016	Dec. 31, 2015
Net revenue from continuing operations	$ 200,583	$ 140,206	$ 104,521
Net loss attributable to Xunlei Limited	(37,822)	(24,111)	(13,167)
Variable Interest Entity, Primary Beneficiary [Member]
Net revenue from continuing operations	200,591	140,236	119,761
Net loss attributable to Xunlei Limited	$ (49,339)	$ (31,196)	$ (15,646)

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, 2017	Dec. 31, 2016	Dec. 31, 2015
Net increase in cash and cash equivalents	$ 23,553	$ (152,406)	$ (36,188)
Variable Interest Entity, Primary Beneficiary [Member]
Net cash (used in)/provided by operating activities	(6,992)	3,565	41,723
Net cash (used in)/provided by investing activities	13,463	1,859	(51,721)
Net cash provided by financing activities	1,180	2,508	1,055
Net increase in cash and cash equivalents	$ 7,651	$ 7,932	$ (8,943)

Subsequent events - Additional Information (Detail) ¥ in Millions	1 Months Ended	3 Months Ended
	Jan. 31, 2018 USD ($)	Mar. 31, 2018 shares	Nov. 30, 2017 USD ($)	Nov. 30, 2017 CNY (¥)
Henan Tourism Information Co., Ltd., [Member]
Subsequent Event [Line Items]
Business Combination, Consideration Payable			$ 1,500,000	¥ 9.6
Business Acquisition, Percentage of Voting Interests Acquired			80.00%	80.00%
Subsequent Event [Member] \| Web Game Business [Member]
Subsequent Event [Line Items]
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax \| $	$ 1,400,000
Subsequent Event [Member] \| Treasury Stock [Member]
Subsequent Event [Line Items]
Treasury Stock, Shares, Acquired		0
Subsequent Event [Member] \| Restricted shares [Member]
Subsequent Event [Line Items]
Restricted stock granted		2,815,520

Additional information: condensed financial statements of the Company - Schedule of Condensed Balance Sheets (Detail) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

$ 233,479

$ 199,504

$ 361,777

$ 404,275

6,866

13,593

430,783

412,305

Property, equipment and software, net

24,685

20,996

533,437

509,795

Accounts payable

49,819

33,376

28,046

23,194

141,696

93,405

^[1]

3,242

4,082

4,737

4,537

Other long-term payable

925

886

150,600

103,545

Treasury shares 38,332,209 shares as at December 31, 2016 and 35,233,649 shares as at December 31, 2017

Shareholders' equity

Common shares

(9)

Total Xunlei Limited’s shareholders’ equity

384,997

408,238

444,681

457,021

Total liabilities and shareholders’ equity

533,437

509,795

Xunlei Limited [Member]

Due from subsidiaries and consolidated VIEs

280,196

273,160

$ 292,175

$ 309,457

98,129

101,130

439

348

378,764

374,638

Property, equipment and software, net

Investments in subsidiaries and consolidated VIEs

17,375

43,447

396,140

418,088

Due to subsidiaries and consolidated VIEs

Accounts payable

4,079

1,862

Accrued liabilities and other payables

308

272

732

1,695

5,174

3,884

308

543

4,737

4,537

Other long-term payable

925

886

11,144

9,850