0001410578-23-000797 | 20-F | XBRL Viewer

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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2022 shares
Document and Entity Information
Document Type	20-F
Document Period End Date	Dec. 31, 2022
Entity Central Index Key	0001510593
Entity Registrant Name	Xunlei Ltd
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	325,047,736
Entity Shell Company	false
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-35224
Entity Address, Address Line One	3709 Baishi Road
Entity Address, Address Line Two	Nanshan District
Entity Address, City or Town	Shenzhen
Entity Address, Postal Zip Code	518000
Entity Address, Country	CN
Entity Incorporation, State or Country Code	E9
Document Accounting Standard	U.S. GAAP
ICFR Auditor Attestation Flag	true
Auditor Name	PricewaterhouseCoopers Zhong Tian LLP
Auditor Firm ID	1424
Auditor Location	Shenzhen, the People’s Republic of China
Business Contact
Document and Entity Information
Contact Personnel Name	Naijiang (Eric) Zhou
Entity Address, Address Line One	3709 Baishi Road
Entity Address, Address Line Two	Nanshan District
Entity Address, City or Town	Shenzhen
Entity Address, Postal Zip Code	518000
Entity Address, Country	CN
City Area Code	+86-0755
Local Phone Number	61111571
Contact Personnel Email Address	zhounaijiang@xunlei.com
ADR
Document and Entity Information
Trading Symbol	XNET
Title of 12(b) Security	American depositary shares
Security Exchange Name	NASDAQ
Common shares
Document and Entity Information
Trading Symbol	XNET
Title of 12(b) Security	Common shares, par value US$0.00025 per share
Security Exchange Name	NASDAQ

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 177,154	$ 123,358
Short-term investments	83,626	115,652
Accounts receivable, net (Allowance for current expected credit losses of USD1,764 and USD1,429 as of December 31, 2021 and 2022, respectively)	29,763	26,135
Inventories	457	1,363
Due from related parties (Allowance for current expected credit losses of USD339 and USD639 as of December 31, 2021 and 2022, respectively)	32,917	15,578
Prepayments and other current assets (Allowance for current expected credit losses of USD11,069 and USD10,667 as of December 31, 2021 and 2022, respectively)	8,267	11,842
Total current assets	332,184	293,928
Non-current assets:
Restricted cash	7,654	4,078
Long-term investments	30,811	31,495
Deferred tax assets	213
Property and equipment, net	61,734	57,657
Right-of-use assets	865	27
Intangible assets, net	6,546	8,299
Goodwill	21,179	23,136
Due from a related party (Allowance for current expected credit losses of USD689 and nil as of December 31, 2021 and 2022, respectively)		19,311
Long-term prepayments and other assets	2,137	2,787
Total assets	463,323	440,718
Current liabilities:
Accounts payable (including accounts payable of the consolidated variable interest entities ("VIEs") without recourse to the Company of USD23,789 and USD23,398 as of December 31, 2021 and 2022, respectively)	25,432	26,407
Due to related parties (including due to related parties of the consolidated VIEs without recourse to the Company of USD91 and nil as of December 31, 2021 and 2022, respectively)	1,560	1,597
Contract liabilities and deferred income, current portion (including contract liabilities and deferred income, current portion of the consolidated VIEs without recourse to the Company of USD36,740 and USD37,781 as of December 31, 2021 and 2022, respectively)	38,967	36,892
Income tax payable (including income tax payable of the consolidated VIEs without recourse to the Company of USD2,451 and USD3,342 as of December 31, 2021 and 2022, respectively)	5,586	2,531
Accrued liabilities and other payables (including accrued liabilities and other payables of the consolidated VIEs without recourse to the Company of USD42,449 and USD43,446 as of December 31, 2021 and 2022, respectively)	49,438	49,557
Bank borrowings (including bank borrowings of the consolidated VIEs without recourse to the Company of USD2,876 and USD7,024 as of December 31, 2021 and 2022, respectively)	7,024	2,876
Lease liabilities (including lease liabilities, current portion of the consolidated VIEs without recourse to the Company of USD18 and USD283 as of December 31, 2021 and 2022, respectively)	283	18
Total current liabilities	128,290	119,878
Non-current liabilities:
Contract liabilities and deferred income (including contract liabilities and deferred income, non-current portion of the consolidated VIEs without recourse to the Company of USD845 and USD876 as of December 31, 2021 and 2022, respectively)	876	845
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to the Company of USD930 and USD687 as of December 31, 2021 and 2022, respectively)	687	930
Bank borrowings (including bank borrowings of the consolidated VIEs without recourse to the Company of USD17,291 and USD24,750 as of December 31, 2021 and 2022, respectively)	24,750	17,291
Lease liabilities (including lease liabilities, non-current portion of the consolidated VIEs without recourse to the Company of USD7 and USD299 as of December 31, 2021 and 2022, respectively)	299	7
Total liabilities	154,902	138,951
Commitments and contingencies
Equity
Common shares (368,877,205 shares issued and 337,257,946 shares outstanding as of December 31, 2021; 375,001,940 shares issued and 325,047,736 shares outstanding as of December 31, 2022)	81	84
Additional paid-in-capital	477,495	476,057
Accumulated other comprehensive income/(loss)	(14,668)	1,988
Statutory reserves	7,036	6,155
Treasury shares (31,619,259 shares and 49,954,204 shares as of December 31, 2021 and 2022, respectively)	12	8
Accumulated deficits	(160,063)	(180,645)
Total Xunlei Limited's shareholders' equity	309,893	303,647
Non-controlling interests	(1,472)	(1,880)
Total liabilities and shareholders' equity	$ 463,323	$ 440,718

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Allowance for credit losses of accounts receivable	$ 1,429	$ 1,764
Allowance for credit losses of prepayments and other current assets	10,667	11,069
Allowance for current expected credit losses of due from related parties	639	339
Allowance for current expected credit losses of Due from related parties	$ 0	$ 689
Common stock, shares issued	375,001,940	368,877,205
Common stock, shares outstanding	325,047,736	337,257,946
Treasury stock, shares	49,954,204	31,619,259
VIEs
Accounts payable, consolidated variable interest entities and VIE's subsidiaries without recourse	$ 23,398	$ 23,789
Due to related party, consolidated variable interest entities and VIE's subsidiaries without recourse	0	91
Contract liabilities and deferred income, current portion of the consolidated variable interest entities and VIE's subsidiaries without recourse	37,781	36,740
Income tax payable, consolidated variable interest entities and VIE's subsidiaries without recourse	3,342	2,451
Accrued liabilities and other payables, consolidated variable interest entities and VIE's subsidiaries without recourse	43,446	42,449
Bank borrowings, current, consolidated variable interest entities and VIE's subsidiaries without recourse	7,024	2,876
Lease liabilities, current portion of the consolidated VIE and its subsidiaries without recourse	283	18
Contract liabilities and deferred income, non-current portion of the consolidated variable interest entities and VIE's subsidiaries without recourse	876	845
Deferred Taxes Liabilities Consolidated Variable Interest Entities Without Recourse	687	930
Bank borrowings, consolidated variable interest entities and VIE's subsidiaries without recourse	24,750	17,291
Lease liabilities, non-current portion, consolidated variable interest entities and VIE's subsidiaries without recourse	$ 299	$ 7

Consolidated Statements of Comprehensive (Loss)/Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net revenues
Total revenues, net of rebates and discounts (including transactions with related parties of USD13,118, USD18,284 and USD15,991 for the years ended December 31, 2020, 2021 and 2022, respectively) Business taxes and surcharges	$ 342,564	$ 239,601	$ 186,683
Business taxes and surcharges	(1,067)	(819)	(312)
Net revenues	341,497	238,782	186,371
Costs of revenues (including transactions with related parties of nil, nil and USD87 for the years ended December 31, 2020, 2021 and 2022, respectively)	(200,054)	(118,603)	(92,637)
Gross profit	141,443	120,179	93,734
Operating expenses
Research and development expenses	(67,680)	(61,859)	(55,463)
Sales and marketing expenses	(24,841)	(24,569)	(18,064)
General and administrative expenses	(39,701)	(36,868)	(33,910)
Credit loss (expenses)/write-back, net	844	(1,206)	(5,090)
Total operating expenses	(131,378)	(124,502)	(112,527)
Operating (loss)/income	10,065	(4,323)	(18,793)
Interest income	1,898	723	1,471
Interest expense	(93)	(95)	(406)
Other income, net	13,545	4,678	4,737
(Loss)/income before income tax	25,415	983	(12,991)
Income tax (expenses)/benefits	(4,068)	125	(1,149)
Net (loss)/income for the year	21,347	1,108	(14,140)
Less: net loss attributable to the non-controlling interests	(116)	(83)	(300)
Net (loss)/income attributable to Xunlei Limited	21,463	1,191	(13,840)
Net (loss)/income for the year	21,347	1,108	(14,140)
Other comprehensive income/(loss): Currency translation adjustments, net of tax	(16,427)	4,116	11,135
Comprehensive (loss)/income	4,920	5,224	(3,005)
Less: comprehensive (loss)/income attributable to non-controlling interests	408	(99)	(446)
Comprehensive (loss)/income attributable to Xunlei Limited	$ 4,512	$ 5,323	$ (2,559)
Basic and diluted net (loss) income per share
Basic	$ 0.0639	$ 0.0036	$ (0.0410)
Diluted	$ 0.0638	$ 0.0035	$ (0.0410)
Weighted average number of common shares used in calculating
Basic	336,040,378	334,707,559	337,429,601
Diluted	336,235,501	335,969,780	337,429,601

Consolidated Statements of Comprehensive (Loss)/Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Consolidated Statements of Comprehensive (Loss)/Income
Total revenues, net of rebates and discounts (including transactions with related parties	$ 15,991	$ 18,284	$ 13,118
Costs of revenues (including transactions with related parties	$ 87	$ 0	$ 0

- Definition

Direct costs arising from transactions with related parties who are not affiliates or joint Ventures. These costs are categorized as cost of goods sold.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.2)
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

+ Details

- Definition

Amount of revenue, fees and commissions earned from transactions between (a) a parent company and its subsidiaries; (b) subsidiaries of a common parent; (c) an entity and trusts for the benefit of employees, for example, but not limited to, pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management; (d) an entity and its principal, owners, management, or members of their immediate families; and (e) affiliates.

+ References

+ Details

Consolidated statements of changes in shareholders' equity - USD ($) $ in Thousands	Common shares	Treasury stock	Additional paid-in capital [Member]	Retained earnings (Accumulated deficits) [Member]	Statutory reserves [Member]	Accumulated other comprehensive income/(loss) [Member]	Total Xunlei Limited's shareholders' equity [Member]	Non-controlling interest [Member]	Total
Beginning Balance, Amount at Dec. 31, 2019	$ 85	$ 7	$ 472,052	$ (166,973)	$ 5,132	$ (13,425)	$ 296,878	$ (1,335)	$ 295,543
Beginning Balance, Shares at Dec. 31, 2019	339,165,241	29,711,964
Repurchase of common shares, Amount	$ (1)	$ 1	(4,475)				(4,475)		(4,475)
Repurchase of common shares, shares	(5,956,960)	5,956,960
Share-based compensation			2,310				2,310		2,310
Restricted shares vested (Shares)	1,193,700	(1,193,700)
Appropriation of statutory reserves				(282)	282
Currency translation adjustments						11,281	11,281	(146)	11,135
Net (loss)/income				(13,840)			(13,840)	(300)	(14,140)
Ending Balance, Amount at Dec. 31, 2020	$ 84	$ 8	469,887	(181,095)	5,414	(2,144)	292,154	(1,781)	290,373
Ending Balance, Shares at Dec. 31, 2020	334,401,981	34,475,224
Share-based compensation			6,170				6,170		6,170
Restricted shares vested (Shares)	(2,855,965)	2,855,965
Appropriation of statutory reserves				(741)	741
Currency translation adjustments						4,132	4,132	(16)	4,116
Net (loss)/income				1,191			1,191	(83)	1,108
Ending Balance, Amount at Dec. 31, 2021	$ 84	$ 8	476,057	(180,645)	6,155	1,988	303,647	(1,880)	301,767
Ending Balance, Shares at Dec. 31, 2021	337,257,946	31,619,259
Repurchase of common shares, Amount	$ (5)	$ 5	(6,747)				(6,747)		(6,747)
Repurchase of common shares, shares	(22,049,870)	22,049,870
Share-based compensation			8,184				8,184		8,184
Restricted shares vested	$ 2	$ (2)
Restricted shares vested (Shares)	9,839,660	(9,839,660)
Appropriation of statutory reserves				(881)	881
Currency translation adjustments						(16,656)	(16,656)	229	(16,427)
Issuance of common shares for vesting of restricted shares		$ 1	(1)
Issuance of common shares for vesting of restricted shares (in shares)		6,124,735
Disposal of subsidiaries			2				2	358	360
Capital injection in a subsidiary from noncontrolling interest shareholders								(63)	(63)
Net (loss)/income				21,463			21,463	(116)	21,347
Ending Balance, Amount at Dec. 31, 2022	$ 81	$ 12	$ 477,495	$ (160,063)	$ 7,036	$ (14,668)	$ 309,893	$ (1,472)	$ 308,421
Ending Balance, Shares at Dec. 31, 2022	325,047,736	49,954,204

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Net (loss)/income for the year	$ 21,347	$ 1,108	$ (14,140)
Adjustments to reconcile net (loss)/income to net cash (used in)/generated from operating activities
Depreciation of property and equipment	2,666	6,319	9,277
Amortization of intangible assets	1,086	1,129	1,216
Amortization of the right-of-use assets	56	1,934	3,685
Credit loss expenses/(write-back), net and impairment on prepayments	(844)	1,213	5,305
(Gain)/loss on disposal of property and equipment	2	31	(55)
Share-based compensation	8,184	6,170	2,310
Net unrealized investment income from short-term investments	(367)	(404)	(664)
Impairment of inventories	15	429	3,283
Impairment of long-term investments	590	0	794
Net unrealized gains on long-term investments	(437)		(794)
Investment income on disposal of long-term investments		(42)	(214)
Interest expense accrued on long-term payables	93	95	406
Deferred income taxes	(382)	(178)	966
Deferred government grants	(162)	(169)	(865)
Changes in operating assets and liabilities:
Accounts receivable	(5,979)	(2,168)	5,048
Prepayments and other assets	4,111	(2,319)	(1,263)
Due from/to related parties	1,099	(8,507)	(8,598)
Accounts payable	1,064	5,238	(4,938)
Inventories	851	(36)	643
Contract liabilities	5,739	2,112	289
Income tax payable	3,434	(77)	(163)
Accrued liabilities and other payables	8,621	9,605	(11,707)
Lease liabilities	322	(2,003)	(3,732)
Net cash (used in)/generated from operating activities	51,109	19,480	(13,911)
Cash flows from investing activities
Purchase of short-term investments	(517,411)	(337,738)	(177,075)
Proceeds from collection upon maturities of short-term investments	545,073	341,960	167,439
Purchase of property and equipment (including construction in progress)	(14,969)	(13,202)	(13,554)
Purchase of intangible assets	(8)	(84)	(59)
Purchase of long-term investments	(1,000)	(3,627)
Proceeds from disposal of property and equipment	6	207	721
Proceeds from disposal of long-term investments		42	1,076
Repayment/(payment) of loans to employees	67	(177)	696
Loan to a related party		(20,000)
Net cash (used in)/generated from investing activities	11,758	(32,619)	(20,756)
Cash flows from financing activities
Repurchase of common shares	(6,747)		(4,475)
Proceeds from bank borrowings	16,656	2,196	7,816
Repayment of bank borrowings	(3,344)	(2,419)
Repayment of loans due to a related party arising from a business combination			(662)
Capital injection from a non-controlling interest shareholder	76
Net cash generated from/(used in) financing activities	6,641	(223)	2,679
Net (decrease)/increase in cash, cash equivalents and restricted cash	69,508	(13,362)	(31,988)
Effect of exchange rates on cash and cash equivalents, and restricted cash	(12,136)	2,009	5,329
Cash and cash equivalents at beginning of the year	123,358	137,248	162,465
Cash, cash equivalents and restricted cash at beginning of the year	4,078	1,541	2,983
Cash, cash equivalents and restricted cash at beginning of the year	127,436	138,789	165,448
Cash and cash equivalents at end of the year	177,154	123,358	137,248
Restricted cash at end of year	7,654	4,078	1,541
Cash, cash equivalents and restricted cash at end of the year	184,808	127,436	138,789
Supplemental disclosure of cash flow information
Income tax paid	1,178	66	356
Non-cash investing and financing activities
Purchase of property and equipment in form of other payables	593	568	5,217
Addition of right-of-use assets and lease liabilities, net off impact from lease modification	$ 555	$ 10	$ 3,325

Organization and nature of operations

12 Months Ended

Dec. 31, 2022

Organization and nature of operations

Organization and nature of operations

1. Organization and nature of operations

Xunlei Limited, previously known as Giganology Limited, (the “Company”) was incorporated under the law of the Cayman Islands as a limited liability company on February 3, 2005. The Company completed its initial public offering on June 24, 2014 on the NASDAQ Global Market. Each American Depositary Shares (“ADSs”) of the Company represents five common shares.

These consolidated financial statements include the financial statements of the Company, its subsidiaries, the variable interest entity (“VIE”) and VIE’s subsidiaries (collectively referred to as the “Group”). As of December 31, 2022, the Company’s major subsidiaries, VIE and VIE’s subsidiaries are as follows:


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

Giganology (Shenzhen) Co., Ltd. (“Giganology Shenzhen”)	PRC	June 2005	Subsidiary	100	%	Development of computer software and provision of information technology services to related companies

Shenzhen Xunlei Wangwenhua Co., Ltd. (formerly known as “Shenzhen Fengdong Networking Technologies Co., Ltd.”) (“Wangwenhua”)	PRC	December 2005	VIE’s subsidiary	100	%	Development of computer software, provision of advertising services and operation of live steaming platforms

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

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

Xunlei Network Technologies Limited (“Xunlei HK”)	Hong Kong	March 2011	Subsidiary	100	%	Investment holding company and development of computer software

Xunlei Computer (Shenzhen) Co., Ltd. (“Xunlei Computer”)	PRC	November 2011	Subsidiary	100	%	Development of computer software and provision of information technology services

Shenzhen Onething Technologies Co., Ltd. (“Onething”)	PRC	September 2013	VIE’s subsidiary	100	%	Development of cloud computing technology and provision of related services

Beijing Xunjing Technologies Co., Ltd. (formerly known as “Wangxin Century Technologies (Beijing) Co., Ltd.”)	PRC	October 2015	VIE’s subsidiary	100	%	Development of computer software and provision of information technology services

1. Organization and nature of operations (Continued)


				% of direct
				or indirect
	Place of	Period of		economic
Name of entities	incorporation	incorporation	Relationship	ownership		Principal activities
Henan Tourism Information Co., Ltd.	PRC	June 2018	VIE’s subsidiary	80	%	Software development, tourism consulting, ticket agent and other related services

Jiangxi Node Technology Service Co., Ltd. (“Jiangxi Node”)	PRC	July 2020	VIE’s subsidiary	100	%	Development of cloud computing technology and provision of related services

FUNI. PTE. LTD. (“FUNI”)	Singapore	April 2021	Subsidiary	100	%	Operation of a live streaming platform

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

The Group engages primarily in the provision of premium downloading services to its members, sales of bandwidth, platforms for live streaming services, advertising services and other internet value added services.

To comply with the PRC laws and regulations that prohibit or restrict foreign ownership of companies that provide online services and hold Internet Content Provider (‘‘ICP’’) license, the Group mainly conducts its business through the VIE, Shenzhen Xunlei, and its subsidiaries in the PRC.

Through the various agreements enacted among the Company, Giganology Shenzhen, a wholly owned subsidiary of the Company, Shenzhen Xunlei and legal registered shareholders of Shenzhen Xunlei, the Company as the primary beneficiary received all of the economic benefits and residual interest and absorbed all of the risks and expected losses from Shenzhen Xunlei. Details of these agreements are as follows:

—Loan Agreements between Giganology Shenzhen and the shareholders of Shenzhen Xunlei— Giganology Shenzhen provided interest-free loans of RMB9 million to the legal shareholders of Shenzhen Xunlei for them to make contributions as registered capital into Shenzhen Xunlei. The terms 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 registered shareholder of Shenzhen Xunlei, Giganology Shenzhen made an additional interest-free loan of RMB20 million to Mr. Sean Shenglong Zou, the entire amount of which was contributed to the registered capital of Shenzhen Xunlei, increasing the registered capital of Shenzhen Xunlei to RMB30 million. The term of this agreement lasts for two years from the date it was signed, and will be automatically extended afterwards on a yearly basis until Mr. Zou has repaid the loan in its entirety in accordance with the loan agreement. This loan will be deemed to be repaid when all equity interest held by the shareholders in Shenzhen Xunlei has been transferred to Giganology Shenzhen or its designated parties. At any time during the term of this loan agreement, the Company may, at their sole discretion, require all or any portion of the outstanding loan under the agreement to be repaid.

—Business Operation Agreements 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 may be extended with Giganology Shenzhen’s confirmation prior to the expiration date. The agreement became expired in November 2016 and has been extended to November 2026.

1.Organization and nature of operations (Continued)

—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 starting from May 2011 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. The agreement expired in May 2021 and has been extended to May 2031.

—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.

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

For the Proprietary Technology License Contract, the term of this contract became expired in March 2022 and has been extended with Giganology Shenzhen to March 2032. Giganology Shenzhen grants Shenzhen Xunlei a non-exclusive and non-transferable right to use Giganology Shenzhen’s proprietary technology. Shenzhen Xunlei can only use the proprietary technology to conduct business according to its authorized business scope. Giganology Shenzhen or its designated representative(s) owns the rights to any new technology developed due to implementation of this contract.

—Intellectual Properties Purchase Option Agreement 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 became expired in March 2022 and had been automatically extended for an additional 10 years at Giganology Shenzhen’s discretion to March 2032.

—Call Option Agreement — Giganology Shenzhen has an option to acquire all of the outstanding shares of Shenzhen Xunlei at a purchase price equal to RMB1 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 is regarded as VIE and its results of operations, assets and liabilities have been consolidated in the Company’s financial statements.

1.Organization and nature of operations (Continued)

VIE-related risks

A significant part of the Group’s business is conducted through Shenzhen Xunlei, the VIE of the Group, of which the Company is the ultimate primary beneficiary. In the opinion of management, the contractual arrangements with the VIE and the nominee shareholders are in compliance with PRC laws and regulations and are legally binding and enforceable. The nominee shareholders indicate they will not act contrary to the contractual arrangements. However, there are substantial uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if the nominee shareholders of the VIE were to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements.

On March 15, 2019, the National People’s Congress approved the Foreign Investment Law, effective on January 1, 2020. The Foreign Investment Law and its current implementation and interpretation rules do not explicitly classify whether variable interest entities that are controlled through contractual arrangements would be deemed as foreign-invested enterprises if they are ultimately “controlled” by foreign investors. However, it has a catch-all provision under the definition of “foreign investment” that includes investments made by foreign investors in China through other means as provided by laws, administrative regulations, or the State Council. Therefore, it still leaves leeway for future laws, administrative regulations, or provisions of the State Council to provide for contractual arrangements as a form of foreign investment. Therefore, there can be no assurance that the Group’s control over the variable interest entities through contractual arrangements will not be deemed as a foreign investment in the future. Furthermore, if future laws, administrative regulations or provisions mandate further actions to be taken by companies with respect to existing contractual arrangements, the Group may face substantial uncertainties as to whether the Group can complete such actions in a timely manner, or at all. Failure to take timely and appropriate measures to cope with any of these or similar regulatory compliance challenges could materially and adversely affect the Group’s current corporate structure and business operations.

If a finding was made by PRC authorities under existing laws and regulations and becomes effective, the Group’s operation of certain of its operations and businesses through VIE, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Group to restructure its ownership structure or operations, or requiring the Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Group’s business operations, and have a severe adverse impact on the Group’s cash flows, financial position and operating performance.

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

Summary of significant accounting policies

12 Months Ended

Dec. 31, 2022

Summary of significant accounting policies

Summary of significant accounting policies

2. Summary of significant accounting policies

(a) Basis of presentation and use of estimates

The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (‘‘U.S. GAAP’’). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and related disclosures. Actual results could differ materially from these estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements mainly include allowance for credit losses, valuation allowance of deferred tax assets, impairment assessment of goodwill and impairment assessment of long-lived assets.

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

(b) Consolidation

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

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

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

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

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

2. Summary of significant accounting policies (Continued)

(b) Consolidation (Continued)

Management has evaluated the contractual arrangements among Giganology Shenzhen, Shenzhen Xunlei and its shareholders and concluded that Giganology Shenzhen receives all of the economic benefits and absorbs all of the expected losses from Shenzhen Xunlei and has the power to direct the aforementioned activities that are significant to Shenzhen Xunlei’s economic performance, and is the primary beneficiary of Shenzhen Xunlei. Therefore, Shenzhen Xunlei and its subsidiaries’ results of operation, assets and liabilities have been included in the Group’s consolidated financial statements. Management monitors the regulatory risk associated with these contractual arrangements. See note 26 for further discussion.

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

(c)Business combinations

The Group accounts for acquisitions of entities that include inputs and processes and have the ability to generate economic benefit as business combinations. The Group allocates the purchase price of the acquisition to the tangible assets and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related costs are expensed as incurred.

(d) Foreign currency translation

The Company’s reporting and functional currency is the United States Dollar (‘‘USD’’). The functional currency of Onething Co., Ltd. (Thailand) (“Thailand Onething”) is the Thai Baht (“THB”), the functional currency of other subsidiaries, the VIE and VIE’s subsidiaries located in the Mainland China is the Renminbi (‘‘RMB’’), and the functional currency of other subsidiaries located outside the Mainland China is the USD. Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in foreign currencies are remeasured into the functional currency using the applicable exchange rates prevailing at the balance sheet date. The resulting exchange gains and losses from foreign currency transactions are included in “Other income, net” within the consolidated statements of comprehensive (loss)/income.

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

The exchange rate used is based on the rates released by Chinese State Administration of Foreign Exchange.

2. Summary of significant accounting policies (Continued)

(e) Cash and cash equivalents and restricted cash

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

Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is included in the total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. The Group’s restricted cash represented the cash balance on deposit as required by the court for ongoing litigations.

(f) Short-term investments

Short-term investments include deposits placed with banks with original maturities of more than three months but within one year and investments in financial instruments with a variable interest rate indexed to the performance of underlying assets. In accordance with ASC 825 Financial Instruments, 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 (loss)/income. Interest generated from short term investments are recorded when interest payments are received at the maturity date. It is recorded as “Other income, net” on the statement of comprehensive (loss)/income and measured based on the actual amount of interest the Group received.

(g) Allowance for expected credit losses

Effective on January 1, 2020, the Group adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326) under a modified retrospective transition, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost with the cumulative-effect adjustment recognized to the opening balance of accumulated deficit of the Group as of January 1, 2020. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, referred to as a current expected credit losses (“CECL”) methodology, which will result in more timely recognition of credit losses. The CECL methodology requires that the full amount of expected credit losses for the lifetime of the financial instrument be recorded at the time it is originated or acquired, considering relevant historical experience, current conditions and reasonable and supportable macroeconomic forecasts that affect the collectability of financial assets, and adjusted for changes in expected lifetime credit losses subsequently, which may require earlier recognition of credit losses. The Group’s accounts receivable, due from related parties and other current assets (including other receivables) and other long-term non-current assets (including other long-term receivables) are within the scope of ASC Topic 326.

The Group assessed the credit loss for accounts receivable with similar risk characteristics on a pool basis. The credit loss assessment for each pool was mainly based on past collection experience, consideration of current and future economic conditions and changes in the Group’s collection trends.

(h) Inventories

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

2. Summary of significant accounting policies (Continued)

(i) Long-term investments

The Group holds investments in privately held companies. The Group adopted ASU 2016-01, Financial Instruments, and measure long-term equity investments, other than equity method investments, at fair value through earnings. For those investments over which the Group does not have significant influence and without readily determinable fair value, the Group elected to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of equity investments will be required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer.

Management regularly evaluates the impairment of long-term equity investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognised equal to the excess of the investment costs over its fair value at the end of each reporting period for which the assessment is made. The fair value would then become the new cost basis of investment.

During the years ended December 31, 2020, 2021 and 2022, the Group recognized an impairment of USD794,000, nil and USD590,000, respectively.

(j) Property and equipment

Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the asset at the end of the estimated useful life as a percentage of the original cost. If the Group commits to a plan to abandon a long-lived asset before the end of its previous estimated useful life, depreciation shall be revised to reflect a shortened useful life.


	Estimated useful lives	Residual rate
Office building	20 years	5	%
Building decoration	10 years	5	%
Servers and network equipment	3-5 years	5	%
Computer equipment	5 years	5	%
Furniture, fixtures and office equipment	3-5 years	5	%
Motor vehicles	5 years	5	%
Leasehold improvements	Shorter of lease term or 3 years	—

Repair and maintenance costs are expensed as incurred. Expenditures that substantially increase an asset’s useful life are capitalized. Upon sale or disposal, gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive (loss)/income. The cost and related accumulated depreciation are removed from the consolidated balance sheets.

2. Summary of significant accounting policies (Continued)

(k) Goodwill

Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries, the VIE and VIE’s subsidiaries. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired.

On January 1, 2020, the Company adopted the ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. After adopting this guidance, the Group performs the quantitative impairment test by comparing the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired. If the carrying amount of a reporting unit exceeds its fair value, the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized as impairment.

The Group’s goodwill was attributable to the Company as a whole. The Group applies the quantitative assessment for the impairment test of goodwill as of December 31, 2021 and 2022. The impairment test for goodwill determines the fair value of the reporting unit, the Company as a whole, and compares it to the carrying value of the assets and liabilities, including goodwill, of the reporting unit. The fair value of the Company was estimated by management using the discounted cash flow model derived from the long-term (five-year) cash flow projections, which included significant judgements and assumptions relating to revenue forecast and operating margins, discount rate that reflects market assessments of the time value and the specific risks relating to the Company, and cash flows beyond the five-year period are extrapolated using a terminal growth rate.

No goodwill impairment losses were recognized for the years ended December 31, 2020, 2021 and 2022 based on the impairment test performed by the Group.

(l) Intangible assets

Intangible assets, which include land use rights, acquired computer software and audio-visual license, are carried at cost less accumulated amortization with no residual value and impairment loss, if any. Amortization of intangible assets is computed using the straight-line method over the estimated useful lives of the assets as follows:


		Estimated useful lives
Land use rights		30 years
Acquired computer software		5 years
Audio-visual license		9 years

(m) Impairment of long-lived assets

For other long-lived assets, the Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to be received from use of the assets and their eventual disposition at the lowest level of identifiable cash flows. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. If the Group identifies an impairment, the carrying value of the asset will be reduced to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values.

2. Summary of significant accounting policies (Continued)

(n) Commitments and contingencies

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

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

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

(o) Operating leases

The adoption of ASC Topic 842 Leases (“ASC 842”) requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet.

Lessees shall follow the requirements to classify most leases as either financing or operating using principles similar to previous lease accounting. In the statement of comprehensive (loss)/income, a lessee shall present both of the following: a) for finance leases, the interest expense on the lease liability and amortization of the right-of-use asset are not required to be presented as separate line items and shall be presented in a manner consistent with how the entity presents other interest expense and depreciation or amortization of similar assets, respectively; b) for operating leases, lease expense shall be included in the lessee’s income from operations.

The Group have elected the short-term lease exemption for all leases with a lease term of 12 months. Payments associated with short-term leases are recognized on a straight-line basis as an expense in profit or loss.

The standard also requires a lessee to recognize a single lease cost related to operating lease, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis.

With the adoption of ASC 842, the Group assesses, at contract inception, whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

In determining the appropriate discount rate to use in calculating the present value of contractual lease payments, management regularly evaluates the lessee’s incremental borrowing rate, as the rate implicit in the lease cannot be readily determined.

(p) Revenue recognition

Revenue is recognized when or as the control of the services or goods is transferred to the customer. Depending on the terms of the contract and the laws that apply to the contract, control of the services and goods may be transferred over time or at a point in time.

A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. Contract costs includes incremental costs of obtaining a contract and costs to fulfil a contract.

The Group generates revenues from various streams. Net revenues presented in the consolidated statements of comprehensive (loss)/income represent revenues from service and product sales net off sales discount, value-added tax and related surcharges.

2. Summary of significant accounting policies (Continued)

(p) Revenue recognition (Continued)

(I) Subscription revenues

The Group operates a VIP membership program where VIP members can have access to high speed online acceleration services, online streaming and other access privileges. The membership fee is time-based and is collected up-front from subscribers. The terms of time-based subscriptions range from one month to twelve months, with the subscribers having the option to renew the contract. The receipt of subscription fee is initially recorded as contract liabilities. The Group satisfies its various performance obligations by providing services throughout the subscription period and revenue is recognized rateably over the period of subscription as services are rendered. Unrecognized portion beyond 12 months from balance sheet date is classified as a long-term liability. The Group evaluated the principal versus agent criteria and determined that the Group is the principal in the transaction and accordingly records revenue on a gross basis. In determining whether to report revenues gross for the amount of subscription revenue, the Group assesses whether it maintains the principal relationship with the VIP members, whether it bears the credit risk and whether it establishes prices for the end users. Service fees levied by online system and mobile payment channels (‘‘Payment handling charges’’) are recorded as the cost of revenues in the same period as the revenue for the membership fee is recognized.

(II) Live streaming revenues

The Group operates certain live streaming platforms where users can access the platform, view the live streaming content provided by performers, and purchase virtual gifts which they can grant to performers in the live streaming platform to show support for their favorite performers. Xunlei is the principal in the provision of the live streaming content and experience, which is considered as the performance obligation of the Group. The Group recognizes revenue from sales of virtual gifts to the viewers when the relevant virtual gifts are presented to the performers or over the duration of stated period of the time-based item. The Group does not have further obligations to the viewers after the virtual gifts are consumed immediately or after the stated period for time-based items, although the Group will continue to provide the live streaming content to the viewers in order to continue to generate sales of virtual gifts.

(III) Cloud computing revenues

On a monthly basis, the Group records the bandwidth it delivers and recognizes revenue from customers under contractual rates applied (price per Gigabyte (“GB”) of bandwidth multiplies total GBs of bandwidth per month).

2. Summary of significant accounting policies (Continued)

(p) Revenue recognition (Continued)

(IV) Other internet value-added services revenues

(i) Advertising revenues

The Group entered into a user traffic monetization agreement with Beijing Itui Online Network Technology Co., Ltd. (“Itui Online”), a company controlled by the Company’s principal shareholder since May 2020. Itui Online has been handling substantially all of the Group’s advertising resources, including negotiation and entering into contract with advertisers, matching the requirements of advertisers and dispatching the advertising content to Xunlei’s platforms, accordingly advertisers or advertising agencies are considered as customers of Itui Online and Itui Online is viewed as the customer of the Group. Revenue arising from this transaction is recognized monthly based on the data publicized on the platforms and pre-agreed sharing portion.

Prior to the above arrangement, the Group cooperated with third-party advertising platforms for placing of the advertising content to the Group’s advertising resources. As these third-party advertising platforms are viewed as customers in these transactions, revenue is recognized monthly based on the data publicized on the platforms and pre-agreed sharing portion.

(ii) Online games revenues

The Group enters into a series of technical cooperation agreements with third party online game operators. Users access to the Group’s platform and purchase in-game virtual items which can then be used in games provided by the third-party online game operators. The Group provides the third-party online game operators with a portal which the online game operators can host the online games. The Group charges the online game operators based on a pre-determined portion of proceeds earned from paying users pursuant to the revenue sharing arrangements for the provision of portal and payment collection service to the online game operators. The third-party online game operators are the principal in the provision of games to users and the Group provides the relevant platform to the game operators, therefore, the game operators are viewed as the customers in these transactions.

The service fees receivable from the third-party online game operators are variable, which are contingent upon future events (future cash proceeds paid by game players), and are recognized when the contingency is met provided that collectability is reasonably assured.

(q) Sales and marketing expenses

Sales and marketing expenses comprise primarily salaries and benefits of sales and marketing personnel and external advertising and market promotion expenses. The external advertising and market promotion expenses from operations amounted to approximately USD11,026,000, USD15,052,000 and USD12,551,000 for the years ended December 31, 2020, 2021 and 2022, respectively.

(r) General and administrative expenses

General and administrative expenses consist primarily of salaries and benefits (including related share-based compensation), professional service fees, legal expenses and other administrative expenses.

2. Summary of significant accounting policies (Continued)

(s) Research and development costs

The Group incurred research and development costs to develop its acceleration products, live streaming platforms and bandwidth crowdsourcing technologies to enhance the competitive advantages of the Group’s key products, such as Xunlei Accelerator and cloud computing services. Costs incurred during the research phase are expensed as incurred. Costs incurred for the development of the downloading software, live streaming platforms and bandwidth crowdsourcing technologies prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. The development costs qualified for capitalization were immaterial for the periods presented.

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

(t) Taxation and uncertain tax positions

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements’ carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the difference is expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred tax assets if it is considered more likely than not that some portion, or all, of the deferred tax assets will not be realized. The estimation of future taxable income involves significant judgement and estimates. Based on management’s estimated future taxable income, management concluded that it is more likely than not that the net operating losses carried forward cannot be utilized prior to their respective expiration dates. The Group adopted the ASC 740 “Income Taxes” regarding uncertain tax positions and evaluated its open tax positions that exist in each jurisdiction for each reporting period. If an uncertain tax position is taken or expected to be taken in a tax return, the tax benefit from that uncertain position is recognized in the Group’s consolidated financial statements if it is more likely than not that the position is sustainable upon examination by the relevant taxing authority. The Group did not have any significant uncertain tax position and there was no effect on its financial condition or results of operations as a result of implementing the ASC 740 “Income Taxes”. The Group recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense, if any.

PRC Value-added Tax (“VAT”)

VAT payable on goods sold or taxable labor services provided by a general VAT taxpayer for a taxable period is the net balance of the output VAT for the period after crediting the input VAT for the period. In addition to the product revenues currently subject to VAT at a rate of 13%, the Group’s revenue from subscription, live streaming, cloud computing services, online advertising and other internet value-added services are now subject to VAT at a rate of 6%.

According to the policy of the PRC State Tax Bureau, starting from April 1, 2019 to December 31, 2021, enterprises that engage in postal services, telecommunication services and consumer services are entitled to claim 110% of the input tax incurred as tax credit in determining VAT payable. The policy has been extended to December 31, 2022 by the PRC State Tax Bureau on February 18, 2022. Starting from January 1, 2023 to December 31, 2023, enterprises that engage in previously mentioned services are entitled to claim 105% of the input tax incurred as tax credit in determining VAT payable according to the policy of the PRC State Tax Bureau on January 9, 2023.

2. Summary of significant accounting policies (Continued)

(u) Employee benefits

Full-time employees of the Company’s subsidiaries, VIE and VIE’s subsidiaries in the PRC participate in a government mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the subsidiaries, VIE and VIE’s subsidiaries of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts from operations for such employee benefits, which are expensed as incurred, were USD7,949,000, USD12,411,000 and USD14,266,000 for the years ended December 31, 2020, 2021 and 2022, respectively.

(v) Share-based compensation

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

(w) Government subsidies

The Group receives subsidies from the local PRC government for general use or purchase of equipment. General-use subsidies which are not subject to any conditions or specific use requirements are recorded as subsidy income in the consolidated statements of 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.

(x) Segment reporting

The Group’s Chief Executive Officer has been identified as the chief operating decision maker, who reviews consolidated operating results of the Group when making decisions about allocating resources and assessing performance of the Group as a whole. The Group has internal reporting of revenues, costs and expenses that does not distinguish between segments, and reports costs and expenses by nature as a whole. The Group does not distinguish between markets or segments for the purpose of internal reporting. Management has determined that the Group operates and manages its business as a single segment, around 88% of revenues of the Group were derived from mainland China during the year ended December 31, 2022.

2. Summary of significant accounting policies (Continued)

(x) Segment reporting (Continued)

An analysis of the different types of total revenues for the years ended December 31, 2020, 2021 and 2022 are summarized as follows:


Revenue from operations	Years ended December 31,
(In thousands)	2020	2021	2022
Subscription revenue	84,299	91,174	100,557
Live streaming revenue and other internet value-added services (note a)	38,039	53,614	122,372
Cloud computing services and product revenue (note b)	64,345	94,813	119,635
Total revenues	186,683	239,601	342,564

Notes:

(a)	Other internet value-added services mainly comprised online advertising, online games and other technical services.

(b)	Product revenue comprised sales of OneThing Cloud and Onething Edge Station devices and hard disks.

(c)The total revenues were reclassified to present in three types for the year ended December 31, 2022, and accordingly the classification of total revenues has been adjusted retrospectively for the years ended December 31, 2020 and 2021.

(y) Net (loss)/income per share

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

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

(z) Comprehensive (loss)/income

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

2. Summary of significant accounting policies (Continued)

(aa) Profit appropriation and statutory reserves

The Group’s subsidiaries, the VIE and VIE’s subsidiaries incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax profit determined in accordance with PRC accounting standards and regulations. Appropriation to the statutory general reserve should be at least 10% of the after-tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Group is not required to make appropriation to other reserve funds and the Group does not have any intentions to make appropriations to any other reserve funds.

The general reserve fund can only be used for specific purposes, such as setting off the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves.

There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Group does not do so.

(bb) Dividends

Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2020, 2021 and 2022. 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.

(cc) Recent accounting pronouncements

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which (1) to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) to amend a related illustrative example, and (3) to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The new amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance.

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted.

The Group does not expect that the adoption of those guidance will have a material impact on the consolidated financial statements.

Cash and cash equivalents

12 Months Ended

Dec. 31, 2022

Cash and cash equivalents

Cash and cash equivalents

3. Cash and cash equivalents

Cash and cash equivalents represent cash on hand, cash held at bank, and time deposits placed with banks or other financial institutions, which have original maturities of three months or less. Cash on hand and cash held at bank balance as of December 31, 2021 and 2022 primarily consist of the following currencies:


	December 31, 2021		December 31, 2022
		USD		USD
(In thousands)	Amount	equivalent	Amount	equivalent
RMB	356,535	55,922	699,666	100,461
USD	66,650	66,650	73,449	73,449
SGD	739	547	2,370	1,760
Hong Kong Dollar	1,413	181	1,223	157
Others	Not applicable	58	Not applicable	1,327
Total		123,358		177,154

As of December 31, 2021 and 2022, included in the cash and cash equivalents are time deposits with original maturities of three months or less of USD31,050,000 and USD54,350,000, respectively.

Short-term investments

12 Months Ended

Dec. 31, 2022

Short-term investments

Short-term investments

4. Short-term investments


(In thousands)	December 31, 2021	December 31, 2022
Time deposits	62,379	51,044
Investments in financial instruments (note a)	53,273	32,582
Total	115,652	83,626

Notes:

(a)	The financial instruments 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.

(b)	Time deposits and investments in financial instruments are stated on the balance sheets at the principal amount plus accrued interest. Interest income is recorded in “Other income, net” in the consolidated statements of comprehensive (loss)/income.

Accounts receivable, net

12 Months Ended

Dec. 31, 2022

Accounts receivable, net

Accounts receivable, net

5. Accounts receivable, net


(In thousands)	December 31, 2021	December 31, 2022
Accounts receivable	27,899	31,192
Less: Allowance for current expected credit losses	(1,764)	(1,429)
Accounts receivable, net	26,135	29,763

The following table presents movement in the allowance for current expected credit loss:


(In thousands)	December 31, 2020	December 31, 2021	December 31, 2022
Balance at beginning of the year	7,604	9,329	1,764
Additions	1,137	72	—
Reversals	—	(481)	(188)
Write-off	—	(7,375)	(2)
Exchange difference	588	219	(145)
Balance at end of the year	9,329	1,764	1,429

The accounts receivable due from the top 10 customers accounted for about 86% and 86% of the balance of accounts receivable as of December 31, 2021 and 2022, respectively. The following table summarizes customers with balances of accounts receivable which was greater than 10% of the Group’s total accounts receivable:


	December 31, 2021		December 31, 2022
Customer A	26	%	*
Customer B	16	%	39	%
Customer C	13	%	*
Customer D	11	%	12	%
Customer E	*		17	%

*Less than 10%.

Inventories

12 Months Ended

Dec. 31, 2022

Inventories

Inventories

6. Inventories


(In thousands)	December 31, 2021	December 31, 2022
Hardware devices	1,595	532
Others	238	206
Less: Impairment	(470)	(281)
Total	1,363	457

Note:

The inventories written down was USD429,000 and USD15,000 for the years ended December 31, 2021 and 2022, respectively.

Prepayments and other assets

12 Months Ended

Dec. 31, 2022

Prepayments and other assets

Prepayments and other assets

7. Prepayments and other assets


(In thousands)	December 31, 2021	December 31, 2022
Current portion:
Deposit related to an ongoing litigation (note a)	4,862	—
Advances to suppliers (note b)	3,003	4,042
Receivable related to an asset disposal in 2019	4,684	4,288
Receivable from a business disposal in 2015	3,623	3,316
Loans to employees (note c)	1,713	1,851
Rental and other deposits	1,159	1,397
Others	3,867	4,040
Less: Allowance for current expected credit losses	(11,069)	(10,667)
Total of prepayments and other current assets	11,842	8,267
Non-current portion:
Loans to employees, non-current portion (note c)	1,473	1,543
Advances to suppliers, non-current portion (note b)	1,314	594
Total of long-term prepayments and other assets	2,787	2,137

The following table presents movement in the allowance for current expected credit loss:


(In thousands)	December 31, 2020	December 31, 2021	December 31, 2022
Balance at beginning of the year	5,503	10,283	11,069
Additions	4,168	745	745
Reversals	—	(150)	(197)
Write-off	—	(54)	—
Exchange difference	612	245	(950)
Balance at end of the year	10,283	11,069	10,667

Notes:

(a)	The balance as of December 31, 2021 represented the deposits placed in a custodian bank account of the court to secure an order for preservation of assets against a supplier of the Group. The deposit was repaid to the Group when the related litigation was withdrawn in January 2022.

(b)	Advances to suppliers primarily include prepayments to bandwidth suppliers, prepayments for the construction and improvements related to Xunlei Tower and other prepaid expenses.

(c)

The Group entered into loan contracts with certain employees, under which the Group provided interest-free loans or low-interest loans to these employees. The loan amounts vary amongst different employees from repayable on demand to repayable in equal installments on a monthly basis over a term of 5 to 10 years. The balances classified as current represented loan amounts that are repayable on demand or repayable within the next twelve months from the balance sheet date.

Long-term investments

12 Months Ended

Dec. 31, 2022

Long-term investments

Long-term investments

8. Long-term investments


(In thousands)	December 31, 2021	December 31, 2022
Equity interests without a readily determinable fair value:
Balance at beginning of the year	26,734	31,495
Additions	4,627	—
Net unrealized gains on investments held (note c)	—	437
Impairment on long-term investments (note d)	—	(590)
Exchange difference	134	(531)
Balance at end of the year	31,495	30,811

Details of the Group’s ownership of the long-term investments are as follows:


	Percentage of ownership of
	shares as of December 31,
Investee	2021		2022
Equity method investment:
Shenzhen Mojingou Information Services Co., Ltd.	28.77	%	28.77	%
Equity interests without a readily determinable fair value:
Guangzhou Yuechuan Network Technology Co., Ltd.	9.30	%	9.30	%
Chengdu Diting Technology Co., Ltd.	12.74	%	12.74	%
Shanghai Guozhi Electronic Technology Co., Ltd.	16.80	%	16.80	%
Guangzhou Hongsi Network Technology Co., Ltd.	19.90	%	19.90	%
Xiamen Diensi Network Technology Co., Ltd.	14.25	%	14.25	%
11.2 Capital I, L.P.	2.03	%	2.03	%
Cloudtropy	9.69	%	9.69	%
Lexiang Technology Co., Ltd. (formerly named as “Shanghai Lexiang Technology Co., Ltd.”) (“Lexiang”) (note a)	6.93	%	6.49	%
Hangzhou Feixiang Data Technology Co., Ltd.	28.00	%	28.00	%
Shenzhen Meizhi Interactive Technology Co., Ltd.	9.40	%	9.40	%
Beijing Yunhui Tianxia Technology Co., Ltd.	13.70	%	13.70	%
Yingshi Innovation Technology Co., Ltd. (formerly named as “Shenzhen Arashi Vision Interative Technology Co., Ltd.”)	8.73	%	8.73	%
Beijing Cloudin Technology Co., Ltd.	4.12	%	4.12	%
Quanxun Huiju Networking Technology (Beijing) Co., Ltd. (“Quanxun Huiju”)	5.40	%	5.40	%
Blue Bayread Limited (“Blue Bayread”) (note b)	1.63	%	1.63	%
Clapper Media Group Inc. (“Clapper”) (note c)	10.00	%	9.58	%
Beijing Yunshang Hemei Culture Media Co., Ltd. (“Yunshang Hemei”) (note d)	10.00	%	10.00	%

Notes :

(a)

In October 2020, the Group disposed 4.82% of the equity interest in Lexiang, for which full impairment have been provided in December 2019, at a consideration of USD268,000. The remaining equity interest in Lexiang was remeasured based on this observable price change from the disposal, a fair value gain of USD794,000 was recognized accordingly.The Group recognized impairment against this investment of USD794,000 as of December 31, 2020, after considering Shanghai Lexiang’s operation performance, financial and liquidity position after the above transaction.

In September 2021 and May 2022, the Group’s interest in Lexiang was diluted to 6.93% and 6.49%, respectively, as additional shares were issued by Lexiang, no changes in the carrying value in Lexiang was made as the related transactions did not provide observable price changes to the Group.

8. Long-term investments (Continued)

(b)	In December 2021, the Group made an equity investment of USD3,000,000 to acquire 1.63% equity interest of Blue Bayread, which is a privately-held company.

(c)	In October 2021, the Group made an equity investment of USD1,000,000 to acquire 10% equity interest of Clapper, which is a privately-held company.

In March 2022, the Group’s interest in Clapper was diluted to 9.58% as additional shares were issued by Clapper, and fair value gain of USD437,000 was recognized based on the observable price changes of Clapper as indicated in its new financing.

(d)	In December 2021, the Group made an equity investment of USD627,384 (equivalent to RMB4,000,000) to acquire 10% equity interest of Yunshang Hemei, which is a privately-held company.

In March 2022, full impairment of USD590,000 (equivalent to RMB4,000,000) was provided by the Group, after considering Yunshang Hemei’s operation performance, financial and liquidity position.

Property and equipment, net

12 Months Ended

Dec. 31, 2022

Property and equipment, net

Property and equipment, net

9. Property and equipment, net

Property and equipment consist of the following:


(In thousands)	December 31, 2021	December 31, 2022
Servers and network equipment	15,522	15,065
Computer equipment	1,737	1,624
Furniture, fixtures and office equipment	857	790
Motor vehicles	492	449
Office building (note)	—	47,902
Building decoration and leasehold improvements (note)	7,428	8,705
Total original costs	26,036	74,535
Less: Accumulated depreciation	(18,638)	(12,801)
Less: Accumulated impairment	(2)	—
Sub-total	7,396	61,734
Construction in progress (note)	50,261	—
Total	57,657	61,734

Note: The construction of Xunlei Tower was completed in December 2022 and the balance of construction in progress was transferred to office building and building decoration accordingly. The ownership certificate of Xunlei Tower was still under registration process as of December 31, 2022.

No impairment loss was recognized for the years ended December 31, 2020, 2021 and 2022.

Depreciation expense recognized for the years ended December 31, 2020, 2021 and 2022 are summarized as follows:


	Years ended December 31,
(In thousands)	2020	2021	2022
Costs of revenues	6,247	4,805	1,362
Research and development expenses	529	436	467
General and administrative expenses	2,492	1,068	828
Sales and marketing expenses	9	10	9
Total	9,277	6,319	2,666

Right-of-use assets and lease liabilities

12 Months Ended

Dec. 31, 2022

Right-of-use assets and lease liabilities

Right-of-use assets and lease liabilities

10. Right-of-use assets and lease liabilities

The right-of-use assets, represented the leased offices of the Group, are amortized over the lease terms, which are greater than 1 year but less than 3 years. Right-of-use assets for long-term operating leases were as below:


(In thousands)		Office leases
Net book amount as of January 1, 2021		1,954
Additions		25
Modification of operating lease		(43)
Amortization		(1,934)
Effect of foreign currency exchange differences		25
Net book amount as of December 31, 2021		27
Additions		920
Amortization		(56)
Effect of foreign currency exchange differences		(26)
Net book amount as of December 31, 2022		865

During the years ended December 31, 2020, 2021 and 2022, the general and administrative expenses for long-term operating lease were USD3,762,000, USD1,934,000 and USD262,000, respectively. A charge of USD291,000, USD786,000 and USD2,457,000 were recognized in relation to short-term lease for the years ended December 31, 2020, 2021 and 2022.

As of December 31, 2022, the future minimum payments under non-cancellable short-term operating leases was USD45,000.

The weighted average discount rate related to operating leases was 5.4%, 5.4% and 5.4%, respectively, as of December 31, 2020, 2021 and 2022, and the weighted average remaining lease term were 1.0 year, 0.8 year and 3.0 years as of December 31, 2020, 2021 and 2022, respectively.

The total cash payments in respect of operating lease were USD3,797,000, USD2,003,000 and USD2,792,000 for the years ended December 31, 2020, 2021 and 2022, respectively.

The undiscounted cash payments for each of the next five years as of December 31, 2022 is:


(In thousands)
2023		316
2024		316
Total undiscounted payments		632
Less: effect of discounting		(50)
Discounted lease liabilities		582

Intangible assets, net

12 Months Ended

Dec. 31, 2022

Intangible assets, net

Intangible assets, net

11. Intangible assets, net


	December 31,
	2021			2022
			Net book			Net book
(In thousands)	Cost	Amortization	value	Cost	Amortization	value
Land use rights	5,218	(1,461)	3,757	4,777	(1,498)	3,279
Acquired computer software	3,875	(3,053)	822	3,264	(2,744)	520
Audio-visual license	6,151	(2,431)	3,720	5,631	(2,884)	2,747
Total	15,244	(6,945)	8,299	13,672	(7,126)	6,546

Amortization expense recognized for the years ended December 31, 2020, 2021 and 2022 are summarized as follows:


	Years ended December 31
(In thousands)	2020	2021	2022
Cost of revenues	—	10	54
General and administrative expenses	1,210	1,113	1,032
Research and development expenses	6	6	—
Total	1,216	1,129	1,086

The estimated aggregate amortization expense for each of the next five years as of December 31, 2022 is:


(In thousands)		Intangible assets
2023		1,046
2024		983
2025		892
2026		871
2027 and thereafter		2,754

The weighted average amortization periods of intangible assets as of December 31, 2021 and 2022 are as below:


(In year)	December 31, 2021	December 31, 2022
Land use rights	30	30
Acquired computer software	5	5
Audio-visual license	9	9
Total weighted average amortization periods	10	10

Goodwill

12 Months Ended

Dec. 31, 2022

Goodwill.

Goodwill

12. Goodwill


	December 31,	December 31,
(In thousands)	2021	2022
Beginning balance	22,607	23,136
Foreign currency translation adjustment	529	(1,957)
Ending balance	23,136	21,179

Contract liabilities and deferred income

12 Months Ended

Dec. 31, 2022

Contract liabilities and deferred income.

Contract liabilities and deferred income

13. Contract liabilities and deferred income


(In thousands)	December 31, 2021	December 31, 2022
Contract liabilities (note a)
Membership subscription	35,490	37,721
Live streaming	735	969
Others	1,340	1,153
Deferred income
Government grants	172	—
Total	37,737	39,843
Less: non-current portion (note b)	(845)	(876)
Contract liabilities and deferred income, current portion	36,892	38,967

Notes:

(a)

Contract liabilities were related to unsatisfied performance obligations at the end of the year. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following period. The amount of revenue recognized that was included in contract liabilities balance at the beginning of the year was USD32,611,000 and USD35,380,000 for the years ended December 31, 2021 and 2022, respectively.

(b)	As of December 31, 2021 and 2022, the non-current portion consists of membership subscription of USD845,000 and USD876,000, respectively.

Accrued liabilities and other payables

12 Months Ended

Dec. 31, 2022

Accrued liabilities and other payables

Accrued liabilities and other payables

14. Accrued liabilities and other payables


(In thousands)	December 31, 2021	December 31, 2022
Payroll and welfare	18,618	23,277
Tax levies	2,397	4,178
Payables related to Xunlei Kankan	2,642	2,418
Payables for advertisement	3,821	1,980
Legal and litigation related expenses (note 25)	973	634
Professional service fees	2,175	1,656
Agency commissions and rebates from online advertising	2,759	2,525
Payables for construction in progress and office building	9,750	8,528
Others	6,422	4,242
Total	49,557	49,438

Bank borrowings

12 Months Ended

Dec. 31, 2022

Bank borrowings

Bank borrowings

15. Bank borrowings


	December 31,	December 31,
(In thousands)	2021	2022
Bank borrowings, current portion	2,876	7,024
Bank borrowings, non-current portion	17,291	24,750
Total	20,167	31,774

The bank borrowings were borrowed by Shenzhen Xunlei for the construction of Xunlei Tower, which was pledged by the land use rights and Xunlei Tower. The interest expense of USD890,000, USD1,000,000 and USD1,593,000 has been capitalized for the years ended December 31, 2020, 2021 and 2022, respectively. The capitalized interest amount included in the carrying amount of Xunlei Tower is depreciated according to the Group’s accounting policies as stated in Note 2(j).

The bank borrowings are denominated in RMB, and the interest rate is calculated based on the Loan Prime Rate plus 15 basis points.

As of December 31, 2022, the bank borrowings will be due according to the following schedule:


(In thousands)		Principal amounts
Within 1 year		7,024
Between 1 to 2 years		7,024
Between 2 to 3 years		7,024
Between 3 to 4 years		7,024
Between 4 to 5 years		3,678

Common shares

12 Months Ended

Dec. 31, 2022

Common shares.

Common shares

16. Common shares

The Company’s Memorandum and Articles of Association authorizes the Company to issue 1,000,000,000 shares of USD 0.00025 par value per common share as of December 31, 2022. 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, 2021 and 2022, there were 337,257,946 and 325,047,736 common shares outstanding, respectively.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
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+ Details

Repurchase of shares

12 Months Ended

Dec. 31, 2022

Repurchase of shares

Repurchase of shares

17. Repurchase of shares

In June 2020, the Board of Directors of the Company authorized a share buyback program (the “2020 Share Buyback Program”), whereby the Company may repurchase up to USD20 million of common shares or ADSs from June 29, 2020 for twelve months on the open market at the prevailing market prices, in privately negotiated transactions, in block trades and through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. During the year ended December 31, 2020, 1,191,392 ADSs were purchased at an aggregate consideration of USD4.5 million under the 2020 Share Buyback Program. No shares were repurchased during the year ended December 31, 2021.

In March 2022, the Board of Directors of the Company authorized another share repurchase program (the “2022 Share Buyback Program”), whereby the Company may repurchase up to USD20 million of common shares or ADSs from March 31, 2022 for twelve months in the open market and through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. During the year ended December 31, 2022, 4,409,974 ADSs were purchased at an aggregate consideration of approximately USD6.7 million under the 2022 Share Buyback Program.

Share-based compensation

12 Months Ended

Dec. 31, 2022

Share-based compensation

Share-based compensation

18. Share-based compensation

2010 share incentive plan

In December 2010, the Group adopted a share incentive plan, which is referred to as the 2010 Share Incentive Plan (the “2010 Plan”). The purpose of the plan is to attract and retain the best available personnel by linking the personal interests of the members of the board, employees, and consultants to the success of the Group’s business and by providing such individuals with an incentive for outstanding performance to generate superior returns for our shareholders. Under the 2010 Plan, the maximum number of shares in respect of which share options, restricted shares, or restricted share units may be granted is 26,822,828 shares (excluding the share options previously granted to the directors who are the founders of the Company). The number of shares available for such grants was nil as of December 31, 2021 and 2022, as such shares have been transferred to the 2020 share incentive plan since its adoption in June 2020, please refer to the details below.

The maximum term of any issued share option is seven or ten years from the grant date. Share 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).

Share options granted to directors were subject to a vesting schedule of approximately 32 months.

All share-based payments to employees are measured based on their grant-date fair values. Compensation expense is recognized on a straight-line basis over the requisite service period.

In November 2014, January 2015 and October 2022, the Company issued to the depositary bank of 10,000,000 common shares, 10,991,120 common shares and 6,124,735 common shares, respectively, which were reserved for the future exercise of share options or vesting of restricted shares.

The following table summarizes the share option activities for the year ended December 31, 2020, 2021 and 2022:


				Weighted
		Weighted	Weighted-	average
		average	average	remaining	Aggregate
	Number of	exercise	grant-date	contractual life	intrinsic
	share options	price (USD)	fair value (USD)	(years)	value (USD)
Outstanding, January 1, 2020	10,000	3.97	—	1.16	—
Vested and expected to vest as of January 1, 2020	10,000	3.97	1.01	1.16	—
Expired	(10,000)	3.97	—	—	—
Outstanding, December 31, 2020	—	—	—	—	—
Vested and expected to vest as of December 31, 2020, 2021 and 2022	—	—	—	—	—

As of December 31, 2021 and 2022, there were no unrecognized share-based compensation costs related to share options of the 2010 Plan.

As of December 31, 2022, 10,770,520 restricted shares (2021: 10,770,520), excluding those converted from share options, were granted to employees and officers under the 2010 Plan.

18. Share-based compensation (Continued)

2010 share incentive plan (Continued)

A summary of the restricted shares activities under the 2010 Plan for the years ended December 31, 2020, 2021 and 2022 is presented below:



		Number of
		restricted shares
Unvested as of January 1, 2020		5,184,500
Expected to vest as of January 1, 2020		4,406,825
Vested		(965,500)
Forfeited		(2,959,000)
Unvested as of December 31, 2020		1,260,000
Expected to vest as of December 31, 2020		1,071,000
Vested		(400,000)
Forfeited		(210,000)
Unvested as of December 31, 2021		650,000
Expected to vest as of December 31, 2021		552,500
Vested		(330,000)
Unvested as of December 31, 2022		320,000
Expected to vest as of December 31, 2022		272,000

Based upon the Company’s historical and expected forfeitures for stock options granted, the directors of the Company estimated that its future forfeiture rate would be 15% for employees and nil for directors and advisors.

As of December 31, 2022, total unrecognized compensation expense relating to the restricted shares was USD352,479 (2021: USD1,031,340).

2013 share incentive plan

In November 2013, the Group adopted a share incentive plan, which is referred to as the 2013 Share Incentive Plan (the “2013 Plan”). The purpose of the plan is to motivate, attract and retain the best available personnel by linking the personal interests of senior officers to the success of the Group’s business. Under the 2013 Plan, the maximum number of restricted shares that may be granted is 9,073,732 shares. The number of shares available for such grants was nil as of December 31, 2021 and 2022, as such shares have been transferred to the 2020 share incentive plan in June 2020, please refer to the details below.

The vesting schedules of the restricted shares under the 2013 Plan are determined by the directors of the Company.

There were no restricted shares activities under the 2013 Plan for the years ended December 31, 2020, 2021 and 2022, and the number of unvested restricted shares were nil for the years then ended.

As of December 31, 2021 and 2022, total unrecognized compensation expense relating to the restricted shares was both nil.

18. Share-based compensation (Continued)

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 to officers, directors or employees of, or advisors or consultants to the Company and its subsidiaries, the VIE and VIE’s subsidiaries is 14,195,412 shares. The Company issued 14,195,412 common shares to Leading Advice Holdings Limited, a company owned by the co-founder, to facilitate the administration of the 2014 Plan. The number of shares available for such grants was nil as of December 31, 2021 and 2022, as such shares have been transferred to the 2020 share incentive plan in June 2020, please refer to the details below.

A summary of the restricted shares activities under the 2014 Plan for the years ended December 31, 2020, 2021 and 2022 is presented below:


		Number of
		restricted
		shares
Unvested as of January 1, 2020		1,321,200
Vested		(228,200)
Forfeited		(1,067,000)
Unvested as of December 31, 2020		26,000
Expected to vest as of December 31, 2020		22,100
Unvested as of January 1, 2021		26,000
Vested		(26,000)
Unvested as of December 31, 2021 and 2022		—
Expected to vest as of December 31, 2021 and 2022		—

As of December 31, 2022, the total unrecognized compensation expense relating to the restricted shares was nil (2021: nil).

18. Share-based compensation (Continued)

2020 share incentive plan

In June 2020, the Group terminated its 2010 Plan, 2013 Plan and 2014 Plan (the “Existing Plans”) and adopted a 2020 share incentive plan, which is referred to as the 2020 Share Incentive Plan (the “2020 Plan”). Under the 2020 Plan, the maximum aggregate number of shares of the Company that may be granted is 31,000,000, among which 21,039,742 common shares were reserved under the Existing Plans and had not been granted as of the termination of the Existing Plans, 9,667,230 common shares were repurchased pursuant to the repurchase programs authorized by the Company in December 2014 and January 2016, and 293,028 common shares were reserved for issuance under the 2020 Plan. The number of shares available for such grants as of December 31, 2022 is 2,202,325 (2021: 2,685,660).

Upon termination of the Existing Plans, the awards that are granted and outstanding under the Existing Plans remain effective under the 2020 Plan, subject to any amendment and modification to the original award agreements that the Company shall determine.

As of December 31, 2022, the restricted shares units granted to employees and officers (excluding those forfeited) under the 2020 Plan vest as follows:

(1)	15,059,340 of these restricted shares will vest over a two-year schedule in which one-second of the restricted shares shall be vested upon the first and second anniversary of the grant day, respectively.

(2)	90,000 of these restricted shares will vest over a three-year schedule in which one-third of the restricted shares shall be vested upon the first, second and third anniversary of the grant day, respectively. Among which, 30,000 shares were vested in an accelerated manner in December 2021.

(3)

13,148,335 of these restricted shares will vest over a three-year schedule in which two-third of the restricted shares shall be vested upon the second anniversary and one-third of the restricted shares shall be vested upon the third anniversary of the grant day, respectively. Among which, 2,299,965 shares, 1,699,990 shares and 133,335 shares were vested in an accelerated manner in December 2021, June 2022 and November 2022, respectively.

(4)

500,000 of these restricted shares will vest over a five-year schedule in which one-fifth of the restricted shares shall be vested upon the first, second, third, fourth and fifth anniversary of the grant day, respectively. Among which, 100,000 shares were vested in an accelerated manner in December 2021.

18. Share-based compensation (Continued)

2020 share incentive plan (Continued)

A summary of the restricted shares activities under the 2020 Plan for the years ended December 31,2021 and 2022 is presented below:


		Weighted-average
	Number of	grant-date fair
	restricted shares	value (USD)
Unvested as of January 1, 2021	—
Granted	31,091,840	0.83
Vested	(2,429,965)
Forfeited	(2,777,500)
Unvested as of December 31, 2021	25,884,375
Expected to vest as of December 31, 2021	19,413,281
Unvested as of January 1, 2022	25,884,375
Granted	2,200,000	0.31
Vested	(9,509,660)
Forfeited	(1,716,665)
Unvested as of December 31, 2022	16,858,050
Expected to vest as of December 31, 2022	12,643,538

Based upon the Company’s historical and expected forfeitures for restricted share units granted, the directors of the Company estimated that its future forfeiture rate would be 25% for employees and directors.

As of December 31, 2022, the total unrecognized compensation expense relating to the restricted shares was USD 10,161,241 (2021: USD18,147,328).

Total compensation costs recognized for the years ended December 31, 2020, 2021 and 2022 are as follows:


	Years ended December 31,
(In thousands)	2020	2021	2022
Sales and marketing expenses	185	59	—
General and administrative expenses	1,209	4,682	6,855
Research and development expenses	916	1,429	1,329
Total	2,310	6,170	8,184

Costs of revenues

12 Months Ended

Dec. 31, 2022

Costs of revenues.

Costs of revenues

19. Costs of revenues


	Years ended December 31,
(In thousands)	2020	2021	2022
Bandwidth costs	62,384	80,720	104,580
Revenue-sharing from live streaming business	15,640	26,506	78,636
Payment handling charges	1,459	3,066	6,500
Cost of inventories sold	1,660	1,516	2,228
Depreciation of servers and other equipment	6,247	4,805	1,363
Other costs (note)	5,247	1,990	6,747
Total	92,637	118,603	200,054

Note: Other costs mainly included content review costs, technical service costs and write-down of inventories.

Other income, net

12 Months Ended

Dec. 31, 2022

Other income, net

Other income, net

20. Other income, net


	Years ended December 31,
(In thousands)	2020	2021	2022
Government subsidy income	2,287	3,206	2,377
Investment income from short-term investments	2,943	2,486	2,903
Net unrealized gains arising from long-term investments	794	—	437
Investment income on disposal of long-term investments	214	42	—
Impairment on long-term investments	(794)	—	(590)
Exchange (losses)/gains, net	(2,948)	(1,205)	4,494
VAT deduction	1,361	818	1,220
Gains from reversal of long outstanding payables	—	—	3,239
Others	880	(669)	(535)
Total	4,737	4,678	13,545

Taxation

12 Months Ended

Dec. 31, 2022

Taxation

Taxation

21. Taxation

(i)Cayman Islands

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

(ii)British Virgin Islands (“BVI”)

Subsidiaries in the BVI are exempted from income tax on its foreign-derived income in the BVI. There are no withholding taxes in the BVI.

(iii)

Hong Kong

Subsidiaries in Hong Kong are subject to 16.5% income tax on their taxable income generated from operations in Hong Kong.

(iv)

Singapore

Subsidiaries incorporated in Singapore were subject to 17% of their taxable income.

(v)	PRC Enterprise Income Tax (“EIT”)

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

Under the EIT Law, foreign invested enterprises and domestic enterprises are subject to a unified EIT rate of 25%. In accordance with the implementation rules of the EIT Law, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15%.

Shenzhen Xunlei, Onething, Wangwenhua and Xunlei Computer have been recognized as HNTE and entitled to preferential tax rate of 15% for the years ended December 31, 2020, 2021 and 2022. In addition, Onething was established in Qianhai Shenzhen Hongkong Modern Service Industry Cooperation Zone and met the requirements set out by the local authorities, accordingly it is also entitled to a preferential tax rate of 15% for the years ended December 31, 2020, 2021 and 2022.

21. Taxation (Continued)

(v)	PRC Enterprise Income Tax (“EIT”) (Continued)

In July 2020, Jiangxi Node was qualified for a preferential tax rate of 15% and started to apply this rate from then on. The preferential tax rate is awarded to companies which are located in the West Regions of China and operate in certain encouraged industries. This qualification will need to be assessed on an annual basis. For the years ended December 31, 2020, 2021 and 2022, the tax rate assessed for Jiangxi Node was 15%.

Hainan Xunlei Hammer Network Technology Co., Ltd. was established in Hainan Free Trade Port and met the requirements set out by the local authorities, accordingly, it is entitled to a preferential tax rate of 15% for the years ended December 31, 2021 and 2022.

Certain subsidiaries of the Group in the PRC have been granted certain tax concessions to small scale entities by tax authorities in the PRC whereby the subsidiaries operating in the respective region are entitled to tax concessions, the remaining PRC subsidiaries and VIE’s subsidiaries are subject to a 25% EIT rate.

According to a policy of the PRC State Tax Bureau, enterprises that engage in research and development activities are entitled to claim 175% of the research and development expenses incurred in a year as tax deductible expenses in determining their tax assessable profits for that year (“Super Deduction”) from January 1, 2018. In addition, enterprises that engage in research and development activities are allowed to claim 200% of the research and development expenses incurred during October 1, 2022 to December 31, 2022 as tax deductible expenses in determining their tax assessable profits, based on the policy announced by the PRC State Tax Bureau in September 2022.

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, 2022, both Giganology Shenzhen and Xunlei Computer did not declare any dividend to the parent company and have determined that they have no present plan to declare and pay any dividends. The Group currently plans to continue to reinvest its subsidiaries’ undistributed earnings, if any, in its operations in China indefinitely. Accordingly, no withholding income tax was accrued or required to be accrued for the years ended December 31, 2020, 2021 and 2022.

Moreover, the current EIT Law treats enterprises established outside of China with “effective management and control” located in the PRC as PRC resident enterprises for tax purposes. The term “effective management and control” is generally defined as exercising overall management and control over the business, personnel, accounting, properties etc. of an enterprise. The Company, if considered a PRC resident enterprise for tax purposes, would be subject to the PRC EIT at the rate of 25% on its worldwide income for the period after January 1, 2008. As of December 31, 2021 and 2022, the Company has not accrued for PRC tax on such basis. The Company will continue to monitor its tax status.

21. Taxation (Continued)

(v)PRC Enterprise Income Tax (“EIT”) (Continued)

The current and deferred portions of income tax expenses/(benefits) included in the consolidated statements of operations are as follows:


	Years ended December 31,
(In thousands)	2020	2021	2022
Current income tax expenses	183	53	4,450
Deferred income tax expenses/(benefits)	966	(178)	(382)
Income tax expenses/(benefits)	1,149	(125)	4,068

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


	Years ended December 31,
	2020	2021	2022
Aggregate dollar effect (in thousands)	197	4,100	5,243
Per share effect—basic	(0.00)	0.01	0.02
Per share effect—diluted	(0.00)	0.01	0.02

The reconciliation of total tax expenses/(benefits) computed by applying the respective statutory income tax rates to pre-tax loss is as follows:


	Years ended December 31,
(In thousands)	2020	2021	2022
Income tax (benefits)/expenses at PRC statutory rate (based on statutory tax rate applicable to enterprises in China)	(3,736)	246	5,047
Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC	787	2,571	1,640
Non-deductible expenses	101	47	468
Effect of Super Deduction	(733)	(2,262)	(2,594)
Effect of tax holidays and tax concessions	(197)	(4,100)	(5,243)
Change in valuation allowance of deferred tax assets	4,704	3,507	4,709
Expiration of tax loss	84	—	—
Others	139	(134)	41
Income tax expenses/(benefits)	1,149	(125)	4,068

21. Taxation (Continued)

(v)PRC Enterprise Income Tax (“EIT”) (Continued)

The tax effects of temporary differences that give rise to the deferred tax assets and liabilities balances of December 31, 2021 and 2022 are as follows:


(In thousands)	December 31, 2021	December 31, 2022
Deferred tax assets, non-current portion:
Net operating losses carried forward (note a)	39,188	41,240
Impairment of long-term equity investments	4,245	3,972
Provision of allowance for expected credit losses	1,938	1,841
Others	209	383
Valuation allowance (note b)	(45,580)	(47,223)
Deferred tax assets, net	—	213

Deferred tax liabilities:
Deferred credit arising from an asset acquisition	(930)	(687)

Notes:

(a)

As of December 31, 2022, the accumulated net operating loss of USD5,854,000 of the Group’s subsidiaries incorporated in Hong Kong can be carried forward indefinitely to offset future taxable income, the remaining accumulated net operating loss of USD220,231,000, mainly arose from the Company’s subsidiaries, the VIE and VIE’s subsidiaries established in the PRC, can be carried forward to offset future taxable income and will expire during the period from 2023 to 2030.

(b)	The deferred tax liabilities balances are expected to be recoverable as follows:


(In thousands)	December 31, 2021	December 31, 2022
Within one year	180	165
After one year	750	522
Total	930	687

Movement of valuation allowance is as follows:


	Years ended December 31,
(In thousands)	2020	2021	2022
Beginning balance	34,257	40,924	45,580
Additions	4,704	3,507	5,931
Reversals	—	—	(1,222)
Exchange difference	1,963	1,149	(3,066)
Ending balance	40,924	45,580	47,223

For the years ended December 31, 2020, 2021 and 2022, valuation allowance was provided for net operating loss carryforwards from certain subsidiaries, the VIE and VIE’s subsidiaries because it was more likely than not that such deferred tax assets will not be realized based on the Group’s estimate of future taxable income of those companies.

As of December 31, 2022, the tax returns of the Group’s PRC subsidiaries, VIE and VIE’s subsidiaries for tax years 2018 through 2022 are still open to examination, the tax returns of FUNI for tax years 2021 through 2022 are still open to examination.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 740
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-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Subparagraph (b)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Basic and diluted net (loss) income per share

12 Months Ended

Dec. 31, 2022

Basic and diluted net (loss) income per share

Basic and diluted net (loss)/income per share

22. Basic and diluted net (loss)/income per share

Basic and diluted net (loss)/income per share for the years ended December 31, 2020, 2021 and 2022 are calculated as follows:



(Amounts expressed in thousands of USD, except	Years ended December 31,
for number of shares and per share data)	2020	2021	2022
Numerator:
Net (loss)/income	(14,140)	1,108	21,347
Less: Net loss attributable to the non-controlling interest	(300)	(83)	(116)
Net (loss)/income attributable to Xunlei Limited’s common shareholders for basic/dilutive net (loss)/income per share calculation	(13,840)	1,191	21,463
Denominator:
Weighted average number of common shares outstanding, basic	337,429,601	334,707,559	336,040,378
Dilutive effect of restricted share units	—	1,262,221	195,123
Weighted average number of common shares outstanding, diluted	337,429,601	335,969,780	336,235,501
Basic net( loss)/ income per share	(0.0410)	0.0036	0.0639
Diluted net (loss)/income per share	(0.0410)	0.0035	0.0638

All potentially dilutive securities, including the restricted share units, were not included in the calculation of dilutive net loss per share for the year ended December 31, 2020 as their effects would be anti-dilutive.

Related party transactions

12 Months Ended

Dec. 31, 2022

Related party transactions

Related party transactions

23. Related party transactions

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

Related party		Relationship with the Group
Weimin Luo		Former Director and Chief Operating Officer of the Company (note i)
Vantage Point Global Limited		Shareholder of the Company
Aiden & Jasmine Limited		Shareholder of the Company
Millet Technology Co., Ltd. (“Xiaomi Technology”)		(note ii)
Guangzhou Millet Information Service Co., Ltd. (“Guangzhou Millet”)		(note ii)
Shenzhen Xiaomi Technology Co., Ltd. (“Shenzhen Xiaomi”)		(note ii)
Beijing Xiaobu Technology Co., Ltd. (“Beijing Xiaobu”)		Company owned by the principal shareholder of the Company (note iii)
Sungai Pte. Ltd. (“Sungai”)		Company owned by the principal shareholder of the Company (note iii)
Beijing Itui Technology Co., Ltd. (“Beijing Itui”)		Company owned by the principal shareholder of the Company (note iii)
Itui Online		Company owned by the principal shareholder of the Company (note iii)
Chizz (HK) Limited (“Chizz”)		Company owned by the principal shareholder of the Company (note iii)

23. Related party transactions (Continued)

Notes:

(i)	Weimin Luo resigned from the board and resigned as the Chief Operating Officer of the Company on May 19, 2021 and June 1, 2021, respectively.

(ii)	Prior to April 2, 2020, these companies were related companies to the Company as they were affiliated companies of a shareholder of the Company,Best Ventures Limited (“Best Ventures”, formerly known as Xiaomi Ventures Limited).

On April 2, 2020, Best Ventures ceased to be the shareholder of the Company as Best Ventures together with certain shareholders of the Company exchanged their common shares of the Company for the shares of Itui International Inc. (“Itui”). In addition, Best Ventures entitled to certain veto rights in determining Itui’s voting on the Company. As a result, Best Ventures and the companies controlled by Best Ventures continued to be related parties of the Company.

(iii)

These companies become related parties of Xunlei since April 2, 2020 when Itui became the principal shareholder of the Company.

During the years ended December 31, 2020, 2021 and 2022, significant related party transactions were as follows:


	Years ended December 31,
(In thousands)	2020	2021	2022
Bandwidth revenue from Xiaomi Technology (note a)	2,211	2,798	4,978
Bandwidth revenue from Beijing Itui (note b)	1,119	821	592
Advertisement revenue from Itui Online (note c)	7,269	11,648	7,804
Advertisement revenue from Shenzhen Xiaomi	53	380	112
Technology service revenue from Guangzhou Millet (note d)	2,466	1,245	—
Technology service revenue from Shenzhen Xiaomi (note d)	—	1,392	2,505
Interest income from Chizz	—	176	176
Bandwidth cost from Quanxun Huiju	594	730	—
Interest accrued to Vantage Point Global Limited (note e)	243	—	—
Interest accrued to Aiden & Jasmine Limited (note e)	91	55	54
Distribution costs to Beijing Xiaobu	—	—	87
Repayment of loans to Weimin Luo arising from a business combination	662	—	—

Notes:

(a)	From August 2019 till now, Onething entered into the contract with Xiaomi Technology for the provision of bandwidth to Xiaomi Technology based on actual usage.

(b)	Onething entered into a sales contract with Beijing Itui for provision of bandwidth charged based on actual usage since July 2019. The contract was extended for one year from July 2021 to June 2022 and extended for another year to June 30, 2023, based on the same terms.

(c)

In May 2020, a user traffic monetization agreement was entered into with Itui Online, according to which Xunlei is entitled to receive a mutually agreed sharing of net advertising revenue covering a period from mid-May 2020 to mid-May 2021. The contract was extended for one year from mid-May 2021 to mid-May 2022 and extended for another year to May 13, 2023, based on the same terms.

(d)

The Group is entitled to receive a mutually agreed sharing of net advertising revenue covering a period from mid-June 2017 to mid-June 2019, as compensation for technology solution services provided to Guangzhou Millet. The contract was extended for two years from mid-June 2019 to mid-June 2021. A similar contract was entered into with Shenzhen Xiaomi in July 2021, covering a period of two years.

23. Related party transactions (Continued)

(e)

In 2014, the Group repurchased 3,860,733 common shares from Aiden & Jasmine Limited (Co founder’s company) for USD10,879,000 and 10,334,679 common shares from Vantage Point Global Limited for USD29,121,000. According to the repurchase contract, the Company was entitled to an amount (the “Withheld Price”) to withhold any taxes with respect to this repurchase as required under the applicable laws. If the Seller has not been specifically required by the applicable governmental or regulatory authority to pay any taxes as required under the applicable laws in connection with the repurchase, after the fifth anniversary of the Closing Date, the Company will pay to the Seller the Withheld Price with a simple interest thereon at the rate of five percent (5)% per annum from the Closing Date. Therefore, the Withheld Price for Aiden & Jasmine Limited and Vantage Point Global Limited was USD1,451,000 (including interest of USD363,000) and USD3,883,000 (including interest of USD971,000), respectively. The Group has repaid USD3,883,000 to Vantage Point Global Limited in January 2021.

As of December 31, 2021 and 2022, the amounts due from/to related parties were as follows:


(In thousands)	December 31, 2021	December 31, 2022
Amounts due from related parties -current
Accounts receivable due from Itui Online	12,156	7,910
Accounts receivable due from Shenzhen Xiaomi	1,520	1,378
Accounts receivable due from Xiaomi Technology	831	1,871
Accounts receivable due from Beijing Xiaobu	—	1,419
Accounts receivable due from Beijing Itui	857	537
Accounts receivable due from Sungai.	—	92
Other receivable due from Chizz (note)	176	19,689
Other receivable due from Xiaomi Technology	16	—
Other receivables due from other related parties (individual balance was less than USD10)	22	21
Total	15,578	32,917
Amounts due from a related party - non-current
Other receivable due from Chizz (note)	19,311	—
Total	19,311	—

Note: In September 2021, Xunlei Network provided a loan amounted to USD20 million to Chizz at an interest rate of 3% per annum for a term of 2 years.


(In thousands)	December 31, 2021	December 31, 2022
Amounts due to related parties
Accounts payable due to Quanxun Huiju	91	—
Other payable due to Aiden & Jasmine Limited	1,506	1,560
Total	1,597	1,560

Fair value measurements

12 Months Ended

Dec. 31, 2022

Fair value measurements

Fair value measurements

24. Fair value measurements

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

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

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

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

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

The following table sets forth the financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2021 and 2022.


	Fair value measurements as of December 31, 2021
		Quoted prices	Significant
		in active market	other	Significant
		for identical	observable	unobservable
		assets	inputs	inputs
(In thousands)	Total	(Level 1)	(Level 2)	(Level 3)
Short-term investments:
Investments in structured deposits and wealth management products	53,273	—	53,273	—


	Fair value measurements as of December 31, 2022
		Quoted prices	Significant
		in active market	other	Significant
		for identical	observable	unobservable
		assets	inputs	inputs
(In thousands)	Total	(Level 1)	(Level 2)	(Level 3)
Short-term investments:
Investments in structured deposits and wealth management products	32,582	—	32,582	—

Investments in privately held companies for which the Company elected to record using the measurement alternative are re-measured on a non-recurring basis, and are categorized within Level 3 under the fair value hierarchy. The values are estimated based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs including volatility, as well as rights and obligations of the securities.

- Definition

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.

+ References + Details

Commitments and contingencies

12 Months Ended

Dec. 31, 2022

Commitments and contingencies

Commitments and contingencies

25. Commitments and contingencies

Bandwidth purchase commitments

The Group purchase bandwidth in the PRC under non-cancellable contract expiring on different dates. Payments under purchase of bandwidth are expensed on a straight-line basis over the duration of the respective periods.

As of December 31, 2022, future minimum payments under non-cancellable bandwidth contracts consist of the following:


(In thousands)		December 31, 2022
2023		1,925

Capital commitments

As of December 31, 2022, the Group has unconditional purchase obligations for office building and office equipment that had not been recognized as follows:


(In thousands)		December 31, 2022
2023		7,311
2024 and after		1,090
		8,401

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 USD997,000 and USD188,000 legal and litigation related expenses for the years ended December 31, 2021 and 2022, respectively, while the Group reversed USD1,217,000 legal and litigation related expense for the year ended December 31, 2020.

Up to April 26, 2023, which is the date when the consolidated financial statements were issued, the Group had 5 lawsuits pending against the Group, relating to the alleged copyright infringement and claims for other damages with an aggregate claimed amount of approximately RMB5.6 million (USD0.8 million) which occurred before December 31, 2022 (2021: USD1.7 million). The Group had accrued for USD634,000 litigation related expenses in “Accrued liabilities and other payables” in the consolidated balance sheet as of December 31, 2022 (2021: USD973,000), which is the most probable and reasonably estimable outcome. In addition, there have been a dispute relating to a construction contract which is currently under arbitration procedure, the Group had recognized related payable in “Accrued liabilities and other payables” in the consolidated financial balance sheet as of December 31, 2022 based on the reasonably estimable outcome.

The Group estimated the litigation compensation based on judgments handed down by the court, out-of-court settlements of similar cases as well as advices from the Group’s legal counsels. The Group is in the process of appealing certain judgments for which the losses had been accrued. Although the results of unsettled litigation and claims cannot be predicted with certainty, the Group does not expect that the outcome of the 6 lawsuits will result in the amounts accrued materially different from the range of reasonably possible losses. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of recorded accrual, with respect to loss contingencies for asserted legal and other claims. However, the outcome of litigation is inherently uncertain. If one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be materially adversely affected.

Certain risks and concentration

12 Months Ended

Dec. 31, 2022

Certain risks and concentration

Certain risks and concentration

26. Certain risks and concentration

PRC regulations

Current PRC laws and regulations place certain restrictions on foreign ownership of companies that engage in internet businesses, including the provision of online advertising services and live streaming service. Specifically, foreign ownership in an internet content provider or other value-added telecommunication service providers may not exceed 50%. The Group conducts its operations in China principally through contractual arrangements among Giganology Shenzhen, its wholly-owned PRC subsidiary, 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 substantially all of its operations in China through, Shenzhen Xunlei, a variable interest entity, which it consolidates as a result of a series contractual arrangements entered. If the Company had ownership of Shenzhen Xunlei, it would be able to exercise its rights as a shareholder to effect changes in the board of directors of Shenzhen Xunlei, which in turn could effect changes at the management level, subject to any applicable fiduciary obligations. However, under the current contractual arrangements, it relies on Shenzhen Xunlei and its shareholders’ performance of their contractual obligations to exercise effective control. In addition, its operating contract with Shenzhen Xunlei has a term of ten years, which is subject to Giganology Shenzhen’s unilateral termination right. None of Shenzhen Xunlei or its shareholders may terminate the contracts prior to the expiration date.

Further, the Group believes that the contractual arrangements among Giganology Shenzhen, Shenzhen Xunlei and its shareholders are in compliance with PRC law and are legally enforceable. However, the Chinese government may issue from time to time new laws or new interpretations on existing laws to regulate this industry. Regulatory risk also encompasses the interpretation by the tax authorities of current tax laws, and the Group’s legal structure and scope of operations in the PRC, which could be subject to further restrictions resulting in limitations on the Company’s ability to conduct business in the PRC. The PRC government may also require the Company to restructure the Group’s operations entirely if it finds that its contractual arrangements do not comply with applicable laws and regulations. Furthermore, it could revoke the Group’s business and operating licenses, require it to discontinue or restrict its operations, restrict its right to collect revenues, block its website, require it to restructure its operations, impose additional conditions or requirements with which the Group may not be able to comply, or take other regulatory or enforcement actions against the Group that could be harmful to its business. The imposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct the Group’s business. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of Shenzhen Xunlei and its subsidiaries or the right to receive their economic benefits, the Group would no longer be able to consolidate Shenzhen Xunlei and its subsidiaries. The Group does not believe that any penalties imposed or actions taken by the PRC Government would result in the liquidation of the Company, Giganology Shenzhen or Shenzhen Xunlei.

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

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

26. Certain risks and concentration (Continued)

PRC regulations (Continued)

As of December 31, 2022, Shenzhen Xunlei and its subsidiaries held patents granted in the PRC and in the United States. Presently, certain patent applications are being examined by the State Intellectual Property Office of the PRC.

As of December 31, 2022, Shenzhen Xunlei and its subsidiaries have applied to register trademarks, of which the Company has received registered trademarks in different applicable trademark categories, including registered with World Intellectual Property Organization.

The following financial information of the consolidated VIEs (including VIE and VIE’s subsidiaries) was included in the accompanying consolidated financial statements, before elimination of balances with the Company and its subsidiaries, as of and for the years ended:


	As of December 31,
(In thousands)	2021	2022
Current assets:
Cash and cash equivalents	16,645	52,142
Short-term investments	6,373	—
Accounts receivable, net	26,003	29,162
Amount due from group companies	3,102	5,326
Due from related parties	15,387	13,121
Inventories	1,363	457
Prepayments and other current assets	7,142	2,574
Total current assets	76,015	102,782
Non-current assets:
Long-term investments	6,467	5,345
Property and equipment, net	57,417	61,545
Intangible assets, net	8,299	6,546
Goodwill	23,136	21,179
Long-term prepayments and other assets	2,684	2,094
Right-of-use assets	27	865
Restricted cash	4,078	7,654
Total assets	178,123	208,010
Current liabilities:
Accounts payable	23,789	23,398
Amount due to group companies	146,732	71,925
Due to related parties	91	—
Bank borrowings	2,876	7,024
Contract liabilities and deferred income	36,740	37,781
Income tax payable	2,451	3,342
Accrued liabilities and other payables	42,449	43,446
Lease liabilities, current portion	18	283
Total current liabilities	255,146	187,199
Non-current liabilities:
Contract liabilities and deferred income	845	876
Deferred tax liabilities	930	687
Amount due to group companies	31,369	97,617
Bank borrowings	17,291	24,750
Lease liabilities	7	299
Total liabilities	305,588	311,428

26. Certain risks and concentration (Continued)

PRC regulations (Continued)


	Years ended December 31,
(In thousands)	2020	2021	2022
Third-party revenues	186,679	228,736	301,853
Third-party costs of revenues	(92,388)	(109,722)	(171,116)
Inter-company operating expenses	(7,177)	(8,032)	(4,863)
Third-party operating expenses	(101,421)	(110,367)	(115,578)
Net (loss)/income attributable to Xunlei Limited	(10,673)	2,913	11,136


	Years ended December 31,
(In thousands)	2020	2021	2022
Purchases of goods and services from group companies	—	—	(29,738)
Other operating activities with external parties	(13,423)	24,945	54,684
Net cash (used in)/generated from operating activities	(13,423)	24,945	24,946
Loans to group companies	(6,329)	—	—
Repayment of loans from group companies	502	—	—
Other investing activities with external parties	(9,160)	(19,417)	(8,801)
Net cash used in investing activities	(14,987)	(19,417)	(8,801)
Loans from group companies	2,542	23,527	25,580
Repayment of loans to group companies	(4,300)	(24,425)	(10,830)
Other financing activities with external parties	7,154	(223)	13,388
Net cash generated from/(used in) financing activities	5,396	(1,121)	28,138
	(23,014)	4,407	44,283

26. Certain risks and concentration (Continued)

Foreign exchange risk

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

Concentration of customer risk

The top 10 customers accounted for approximately 38%, 35% and 33% of the net revenues for the years ended December 31, 2020, 2021 and 2022, respectively.

For the years ended December 31, 2020, 2021 and 2022, revenue from Customer A was USD21.0 million, USD14.9 million and USD8.2 million, accounted for approximately 11%, 6% and 2% of the Group’s total revenues, revenue from Customer B was USD14.2 million, USD31.4 million and USD49.4 million, accounted for approximately 8%, 13% and 14% of the Group’s total revenues, respectively. Other than this, no revenue derived from transactions with any other single customer represented 10% or more of the Group’s total revenues.

Credit risk

As of December 31, 2021 and 2022, substantially all of the Group’s cash and cash equivalents, restricted cash and short-term investments were held at reputable financial institutions in the jurisdictions where the Company, the Company’s subsidiaries, the VIE and VIE’s subsidiaries are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has not experienced any losses on its deposits of cash and cash equivalents, restricted cash and short-term investments.

Prior to entering into sales agreements, the Group performs ongoing credit assessments of its customers, taking into account their financial position, credit history and other factors such as current market conditions. Further, the Group has not experienced any significant bad debts with respect to its accounts receivable for the years ended December 31, 2020, 2021 and 2022.

The Group is exposed to credit risk in relation to other assets comprised of due from related parties and other receivables, which are typically unsecured. In evaluating the collectability of the balances, the Group considered various factors, including the related parties and third parties’ repayment history and their credit-worthiness. An allowance for credit losses is made when collection of the full amount is no longer probable.

26. Certain risks and concentration (Continued)

Restricted net assets

Relevant PRC laws and regulations permit payments of dividends by the Company’s subsidiaries, the VIE and VIE’s subsidiaries in China only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries, the VIE and VIE’s subsidiaries in China are required to make certain appropriation of net after-tax profits or increase in net assets to the statutory surplus fund (see note 2(aa)) prior to payment of any dividends. As a result of these and other restrictions under PRC laws and regulations, the Company’s subsidiaries, the VIE and VIE’s subsidiaries in China are restricted in their ability to transfer their net assets to the Company in terms of cash dividends, loans or advances, which restricted portion amounted to USD172,120,000 as of December 31, 2022, or 56% of the Company’s total consolidated net assets. Even though the Company currently does not require any such dividends, loans or advances from the PRC subsidiaries, the VIE and VIE’s subsidiaries for working capital and other funding purposes, the Company may in the future require additional cash resources from the Company’s subsidiaries, the VIE and VIE’s subsidiaries in China due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends to make distributions to shareholders.

Furthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency at the time of requesting such conversion may temporarily delay the ability of the PRC subsidiaries, the VIE and VIE’s subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations.

Subsequent events

12 Months Ended

Dec. 31, 2022

Subsequent events

Subsequent events

27. Subsequent events

On March 13, 2023, the Board of Directors of the Company amended and restated the 2020 Plan, the maximum aggregate number of shares of the Company available for grant of awards was increased from 31,000,000 to 46,561,200.

Additional information: condensed financial statements of the Company

12 Months Ended

Dec. 31, 2022

Additional information: condensed financial statements of the Company

Additional information: condensed financial statements of the Company

28. Additional information: condensed financial statements of the Company

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

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

Such investments are presented on the separate condensed balance sheets of the Company as “Investments in subsidiaries and consolidated VIEs”.

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.

28. Additional information: condensed financial statements of the Company (Continued)

The Company did not have significant other commitments, long-term obligations, or guarantees as of December 31, 2022.

Condensed Balance Sheets


(In thousands)	December 31, 2021	December 31, 2022
Assets
Current assets:
Cash and cash equivalents	32,015	32,004
Short-term investments	40,972	29,342
Due from group companies	107,484	5,808
Prepayments and other current assets	183	927
Total current assets	180,654	68,081
Non-current assets:
Due from group companies	92,917	200,471
Investments in subsidiaries and consolidated VIEs	36,324	49,888
Total assets	309,895	318,440
Liabilities
Current liabilities:
Accounts payable	55	55
Due to group companies	2,546	5,028
Due to related parties	1,506	1,560
Income tax payables	—	10
Accrued liabilities and other payables	2,141	1,894
Total current liabilities	6,248	8,547
Total liabilities	6,248	8,547
Commitments and contingencies
Shareholders’ equity
Common shares	84	81
Treasury shares (31,619,259 shares and 49,954,204 shares as of December 31, 2021 and 2022, respectively)	8	12
Other shareholders’ equity	303,555	309,800
Total Xunlei Limited’s shareholders’ equity	303,647	309,893
Total liabilities and shareholders’ equity	309,895	318,440

28. Additional information: condensed financial statements of the Company (Continued)

Condensed Statements of Operations


	Years ended December 31,
(In thousands)	2020	2021	2022
Operating expenses
General and administrative expenses	(1,438)	(3,302)	(6,436)
Total operating expenses	(1,438)	(3,302)	(6,436)
Operating loss	(1,438)	(3,302)	(6,436)
Interest income	2	107	360
Interest expense	(399)	(95)	(93)
Other income, net	2,455	585	368
(Loss)/income from subsidiaries and consolidated VIEs	(14,361)	3,935	27,300
(Loss)/income before income tax	(13,741)	1,230	21,499
Income tax expenses	(99)	(39)	(36)
Net (loss)/income	(13,840)	1,191	21,463
Net (loss)/income attributable to Xunlei Limited’s common shareholders	(13,840)	1,191	21,463

Condensed Statements of Cash Flows


	Years ended December 31,
(In thousands)	2020	2021	2022
Other operating activities with external parties	649	(5,732)	(948)
Net cash generated from/(used in) operating activities	649	(5,732)	(948)
Loans to group companies	(1,802)	(26,391)	(3,450)
Repayment of loans from group companies	500	—	—
Other investing activities with external parties	55,030	6,553	11,134
Net cash generated from/(used in) investing activities	53,728	(19,838)	7,684
Other financing activities with external parties	(4,475)	—	(6,747)
Net cash used in financing activities	(4,475)	—	(6,747)
Net increase/(decrease) in cash and cash equivalents	49,902	(25,570)	(11)
Cash and cash equivalents at beginning of year	7,683	57,585	32,015
Effect of exchange rates on cash and cash equivalents	—	—	—
Cash and cash equivalents at end of year	57,585	32,015	32,004

Summary of significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2022

Summary of significant accounting policies

Basis of presentation and use of estimates

(a) Basis of presentation and use of estimates

Consolidation

(b) Consolidation

Business combinations

(c)Business combinations

Foreign currency translation

(d) Foreign currency translation

The exchange rate used is based on the rates released by Chinese State Administration of Foreign Exchange.

Cash and cash equivalents and restricted cash

(e) Cash and cash equivalents and restricted cash

Short-term investments

(f) Short-term investments

Allowance for expected credit losses

(g) Allowance for expected credit losses

Inventories

(h) Inventories

Long-term investments

(i) Long-term investments

During the years ended December 31, 2020, 2021 and 2022, the Group recognized an impairment of USD794,000, nil and USD590,000, respectively.

Property and equipment

(j) Property and equipment


	Estimated useful lives	Residual rate
Office building	20 years	5	%
Building decoration	10 years	5	%
Servers and network equipment	3-5 years	5	%
Computer equipment	5 years	5	%
Furniture, fixtures and office equipment	3-5 years	5	%
Motor vehicles	5 years	5	%
Leasehold improvements	Shorter of lease term or 3 years	—

Goodwill

(k) Goodwill

No goodwill impairment losses were recognized for the years ended December 31, 2020, 2021 and 2022 based on the impairment test performed by the Group.

Intangible assets

(l) Intangible assets


		Estimated useful lives
Land use rights		30 years
Acquired computer software		5 years
Audio-visual license		9 years

Impairment of long-lived assets

(m) Impairment of long-lived assets

Commitments and contingencies

(n) Commitments and contingencies

Operating leases

(o) Operating leases

Revenue recognition

(p) Revenue recognition

2. Summary of significant accounting policies (Continued)

(p) Revenue recognition (Continued)

(I) Subscription revenues

(II) Live streaming revenues

(III) Cloud computing revenues

2. Summary of significant accounting policies (Continued)

(p) Revenue recognition (Continued)

(IV) Other internet value-added services revenues

(i) Advertising revenues

(ii) Online games revenues

Sales and marketing expenses

(q) Sales and marketing expenses

General and administrative expenses

(r) General and administrative expenses

Research and development costs

(s) Research and development costs

Taxation and uncertain tax positions

(t) Taxation and uncertain tax positions

PRC Value-added Tax (“VAT”)

Employee benefits

(u) Employee benefits

Share-based compensation

(v) Share-based compensation

Government subsidies

(w) Government subsidies

Segment reporting

(x) Segment reporting

2. Summary of significant accounting policies (Continued)

(x) Segment reporting (Continued)

An analysis of the different types of total revenues for the years ended December 31, 2020, 2021 and 2022 are summarized as follows:


Revenue from operations	Years ended December 31,
(In thousands)	2020	2021	2022
Subscription revenue	84,299	91,174	100,557
Live streaming revenue and other internet value-added services (note a)	38,039	53,614	122,372
Cloud computing services and product revenue (note b)	64,345	94,813	119,635
Total revenues	186,683	239,601	342,564

Notes:

(a)	Other internet value-added services mainly comprised online advertising, online games and other technical services.

(b)	Product revenue comprised sales of OneThing Cloud and Onething Edge Station devices and hard disks.

Net (loss)/income per share

(y) Net (loss)/income per share

Comprehensive (loss)/income

(z) Comprehensive (loss)/income

Profit appropriation and statutory reserves

(aa) 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.

Dividends

(bb) Dividends

Recent accounting pronouncements

(cc) Recent accounting pronouncements

The Group does not expect that the adoption of those guidance will have a material impact on the consolidated financial statements.

Organization and nature of operations (Tables)

12 Months Ended

Dec. 31, 2022

Organization and nature of operations

Schedule of consolidated financial statements include the financial statements of the Company, its subsidiaries, the variable interest entity ("VIE") and VIE's subsidiaries (collectively referred to as the "Group")


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

Giganology (Shenzhen) Co., Ltd. (“Giganology Shenzhen”)	PRC	June 2005	Subsidiary	100	%	Development of computer software and provision of information technology services to related companies

Shenzhen Xunlei Wangwenhua Co., Ltd. (formerly known as “Shenzhen Fengdong Networking Technologies Co., Ltd.”) (“Wangwenhua”)	PRC	December 2005	VIE’s subsidiary	100	%	Development of computer software, provision of advertising services and operation of live steaming platforms

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

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

Xunlei Network Technologies Limited (“Xunlei HK”)	Hong Kong	March 2011	Subsidiary	100	%	Investment holding company and development of computer software

Xunlei Computer (Shenzhen) Co., Ltd. (“Xunlei Computer”)	PRC	November 2011	Subsidiary	100	%	Development of computer software and provision of information technology services

Shenzhen Onething Technologies Co., Ltd. (“Onething”)	PRC	September 2013	VIE’s subsidiary	100	%	Development of cloud computing technology and provision of related services

Beijing Xunjing Technologies Co., Ltd. (formerly known as “Wangxin Century Technologies (Beijing) Co., Ltd.”)	PRC	October 2015	VIE’s subsidiary	100	%	Development of computer software and provision of information technology services


				% of direct
				or indirect
	Place of	Period of		economic
Name of entities	incorporation	incorporation	Relationship	ownership		Principal activities
Henan Tourism Information Co., Ltd.	PRC	June 2018	VIE’s subsidiary	80	%	Software development, tourism consulting, ticket agent and other related services

Jiangxi Node Technology Service Co., Ltd. (“Jiangxi Node”)	PRC	July 2020	VIE’s subsidiary	100	%	Development of cloud computing technology and provision of related services

FUNI. PTE. LTD. (“FUNI”)	Singapore	April 2021	Subsidiary	100	%	Operation of a live streaming platform

Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2022

Summary of significant accounting policies

Schedule of property and equipment estimated useful life


	Estimated useful lives	Residual rate
Office building	20 years	5	%
Building decoration	10 years	5	%
Servers and network equipment	3-5 years	5	%
Computer equipment	5 years	5	%
Furniture, fixtures and office equipment	3-5 years	5	%
Motor vehicles	5 years	5	%
Leasehold improvements	Shorter of lease term or 3 years	—

Schedule of estimated useful lives of the intangible assets


		Estimated useful lives
Land use rights		30 years
Acquired computer software		5 years
Audio-visual license		9 years

Schedule of analysis of different types of revenues


Revenue from operations	Years ended December 31,
(In thousands)	2020	2021	2022
Subscription revenue	84,299	91,174	100,557
Live streaming revenue and other internet value-added services (note a)	38,039	53,614	122,372
Cloud computing services and product revenue (note b)	64,345	94,813	119,635
Total revenues	186,683	239,601	342,564

Notes:

(a)	Other internet value-added services mainly comprised online advertising, online games and other technical services.

(b)	Product revenue comprised sales of OneThing Cloud and Onething Edge Station devices and hard disks.

Cash and cash equivalents (Tables)

12 Months Ended

Dec. 31, 2022

Cash and cash equivalents

Schedule of cash on hand and cash held at bank


	December 31, 2021		December 31, 2022
		USD		USD
(In thousands)	Amount	equivalent	Amount	equivalent
RMB	356,535	55,922	699,666	100,461
USD	66,650	66,650	73,449	73,449
SGD	739	547	2,370	1,760
Hong Kong Dollar	1,413	181	1,223	157
Others	Not applicable	58	Not applicable	1,327
Total		123,358		177,154

Short-term investments (Tables)

12 Months Ended

Dec. 31, 2022

Short-term investments

Schedule of short-term investments


(In thousands)	December 31, 2021	December 31, 2022
Time deposits	62,379	51,044
Investments in financial instruments (note a)	53,273	32,582
Total	115,652	83,626

Notes:

(a)	The financial instruments 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.

(b)	Time deposits and investments in financial instruments are stated on the balance sheets at the principal amount plus accrued interest. Interest income is recorded in “Other income, net” in the consolidated statements of comprehensive (loss)/income.

Accounts receivable, net (Tables)

12 Months Ended

Dec. 31, 2022

Accounts receivable, net

Schedule of accounts receivable


(In thousands)	December 31, 2021	December 31, 2022
Accounts receivable	27,899	31,192
Less: Allowance for current expected credit losses	(1,764)	(1,429)
Accounts receivable, net	26,135	29,763

Schedule of allowance for current expected credit loss


(In thousands)	December 31, 2020	December 31, 2021	December 31, 2022
Balance at beginning of the year	7,604	9,329	1,764
Additions	1,137	72	—
Reversals	—	(481)	(188)
Write-off	—	(7,375)	(2)
Exchange difference	588	219	(145)
Balance at end of the year	9,329	1,764	1,429

Schedule of summarizes customers with balances of accounts receivable


	December 31, 2021		December 31, 2022
Customer A	26	%	*
Customer B	16	%	39	%
Customer C	13	%	*
Customer D	11	%	12	%
Customer E	*		17	%

*Less than 10%.

Inventories (Tables)

12 Months Ended

Dec. 31, 2022

Inventories

Schedule of inventories


(In thousands)	December 31, 2021	December 31, 2022
Hardware devices	1,595	532
Others	238	206
Less: Impairment	(470)	(281)
Total	1,363	457

Prepayments and other assets (Tables)

12 Months Ended

Dec. 31, 2022

Prepayments and other assets

Schedule of prepayments and other assets


(In thousands)	December 31, 2021	December 31, 2022
Current portion:
Deposit related to an ongoing litigation (note a)	4,862	—
Advances to suppliers (note b)	3,003	4,042
Receivable related to an asset disposal in 2019	4,684	4,288
Receivable from a business disposal in 2015	3,623	3,316
Loans to employees (note c)	1,713	1,851
Rental and other deposits	1,159	1,397
Others	3,867	4,040
Less: Allowance for current expected credit losses	(11,069)	(10,667)
Total of prepayments and other current assets	11,842	8,267
Non-current portion:
Loans to employees, non-current portion (note c)	1,473	1,543
Advances to suppliers, non-current portion (note b)	1,314	594
Total of long-term prepayments and other assets	2,787	2,137

Notes:

(a)	The balance as of December 31, 2021 represented the deposits placed in a custodian bank account of the court to secure an order for preservation of assets against a supplier of the Group. The deposit was repaid to the Group when the related litigation was withdrawn in January 2022.

(b)	Advances to suppliers primarily include prepayments to bandwidth suppliers, prepayments for the construction and improvements related to Xunlei Tower and other prepaid expenses.

(c)

Schedule of movement in allowance for current expected credit loss


(In thousands)	December 31, 2020	December 31, 2021	December 31, 2022
Balance at beginning of the year	5,503	10,283	11,069
Additions	4,168	745	745
Reversals	—	(150)	(197)
Write-off	—	(54)	—
Exchange difference	612	245	(950)
Balance at end of the year	10,283	11,069	10,667

Long-term investments (Tables)

12 Months Ended

Dec. 31, 2022

Long-term investments

Schedule of long-term investments


(In thousands)	December 31, 2021	December 31, 2022
Equity interests without a readily determinable fair value:
Balance at beginning of the year	26,734	31,495
Additions	4,627	—
Net unrealized gains on investments held (note c)	—	437
Impairment on long-term investments (note d)	—	(590)
Exchange difference	134	(531)
Balance at end of the year	31,495	30,811

(c)	In October 2021, the Group made an equity investment of USD1,000,000 to acquire 10% equity interest of Clapper, which is a privately-held company.

(d)	In December 2021, the Group made an equity investment of USD627,384 (equivalent to RMB4,000,000) to acquire 10% equity interest of Yunshang Hemei, which is a privately-held company.

In March 2022, full impairment of USD590,000 (equivalent to RMB4,000,000) was provided by the Group, after considering Yunshang Hemei’s operation performance, financial and liquidity position.

Schedule of equity investments, percentage of ownership of common share


	Percentage of ownership of
	shares as of December 31,
Investee	2021		2022
Equity method investment:
Shenzhen Mojingou Information Services Co., Ltd.	28.77	%	28.77	%
Equity interests without a readily determinable fair value:
Guangzhou Yuechuan Network Technology Co., Ltd.	9.30	%	9.30	%
Chengdu Diting Technology Co., Ltd.	12.74	%	12.74	%
Shanghai Guozhi Electronic Technology Co., Ltd.	16.80	%	16.80	%
Guangzhou Hongsi Network Technology Co., Ltd.	19.90	%	19.90	%
Xiamen Diensi Network Technology Co., Ltd.	14.25	%	14.25	%
11.2 Capital I, L.P.	2.03	%	2.03	%
Cloudtropy	9.69	%	9.69	%
Lexiang Technology Co., Ltd. (formerly named as “Shanghai Lexiang Technology Co., Ltd.”) (“Lexiang”) (note a)	6.93	%	6.49	%
Hangzhou Feixiang Data Technology Co., Ltd.	28.00	%	28.00	%
Shenzhen Meizhi Interactive Technology Co., Ltd.	9.40	%	9.40	%
Beijing Yunhui Tianxia Technology Co., Ltd.	13.70	%	13.70	%
Yingshi Innovation Technology Co., Ltd. (formerly named as “Shenzhen Arashi Vision Interative Technology Co., Ltd.”)	8.73	%	8.73	%
Beijing Cloudin Technology Co., Ltd.	4.12	%	4.12	%
Quanxun Huiju Networking Technology (Beijing) Co., Ltd. (“Quanxun Huiju”)	5.40	%	5.40	%
Blue Bayread Limited (“Blue Bayread”) (note b)	1.63	%	1.63	%
Clapper Media Group Inc. (“Clapper”) (note c)	10.00	%	9.58	%
Beijing Yunshang Hemei Culture Media Co., Ltd. (“Yunshang Hemei”) (note d)	10.00	%	10.00	%

Notes :

(a)

(b)	In December 2021, the Group made an equity investment of USD3,000,000 to acquire 1.63% equity interest of Blue Bayread, which is a privately-held company.

(c)	In October 2021, the Group made an equity investment of USD1,000,000 to acquire 10% equity interest of Clapper, which is a privately-held company.

(d)	In December 2021, the Group made an equity investment of USD627,384 (equivalent to RMB4,000,000) to acquire 10% equity interest of Yunshang Hemei, which is a privately-held company.

In March 2022, full impairment of USD590,000 (equivalent to RMB4,000,000) was provided by the Group, after considering Yunshang Hemei’s operation performance, financial and liquidity position.

Property and equipment, net (Tables)

12 Months Ended

Dec. 31, 2022

Property and equipment, net

Schedule of property and equipment


(In thousands)	December 31, 2021	December 31, 2022
Servers and network equipment	15,522	15,065
Computer equipment	1,737	1,624
Furniture, fixtures and office equipment	857	790
Motor vehicles	492	449
Office building (note)	—	47,902
Building decoration and leasehold improvements (note)	7,428	8,705
Total original costs	26,036	74,535
Less: Accumulated depreciation	(18,638)	(12,801)
Less: Accumulated impairment	(2)	—
Sub-total	7,396	61,734
Construction in progress (note)	50,261	—
Total	57,657	61,734

Summary of depreciation expense


	Years ended December 31,
(In thousands)	2020	2021	2022
Costs of revenues	6,247	4,805	1,362
Research and development expenses	529	436	467
General and administrative expenses	2,492	1,068	828
Sales and marketing expenses	9	10	9
Total	9,277	6,319	2,666

Right-of-use assets and lease liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Right-of-use assets and lease liabilities

Schedule of right-of-use assets for long-term operating leases


(In thousands)		Office leases
Net book amount as of January 1, 2021		1,954
Additions		25
Modification of operating lease		(43)
Amortization		(1,934)
Effect of foreign currency exchange differences		25
Net book amount as of December 31, 2021		27
Additions		920
Amortization		(56)
Effect of foreign currency exchange differences		(26)
Net book amount as of December 31, 2022		865

Schedule of undiscounted cash payment


(In thousands)
2023		316
2024		316
Total undiscounted payments		632
Less: effect of discounting		(50)
Discounted lease liabilities		582

Intangible assets, net (Tables)

12 Months Ended

Dec. 31, 2022

Intangible assets, net

Schedule of Intangible assets


	December 31,
	2021			2022
			Net book			Net book
(In thousands)	Cost	Amortization	value	Cost	Amortization	value
Land use rights	5,218	(1,461)	3,757	4,777	(1,498)	3,279
Acquired computer software	3,875	(3,053)	822	3,264	(2,744)	520
Audio-visual license	6,151	(2,431)	3,720	5,631	(2,884)	2,747
Total	15,244	(6,945)	8,299	13,672	(7,126)	6,546

Summary of Amortization expense recognized


	Years ended December 31
(In thousands)	2020	2021	2022
Cost of revenues	—	10	54
General and administrative expenses	1,210	1,113	1,032
Research and development expenses	6	6	—
Total	1,216	1,129	1,086

Schedule of estimated aggregate amortization expense


(In thousands)		Intangible assets
2023		1,046
2024		983
2025		892
2026		871
2027 and thereafter		2,754

Schedule of weighted average amortization periods of intangible assets


(In year)	December 31, 2021	December 31, 2022
Land use rights	30	30
Acquired computer software	5	5
Audio-visual license	9	9
Total weighted average amortization periods	10	10

Goodwill (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill.

Schedule of goodwill


	December 31,	December 31,
(In thousands)	2021	2022
Beginning balance	22,607	23,136
Foreign currency translation adjustment	529	(1,957)
Ending balance	23,136	21,179

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
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-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=121556970&loc=SL108378252-109267

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 55
-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

Contract liabilities and deferred income (Tables)

12 Months Ended

Dec. 31, 2022

Contract liabilities and deferred income.

Schedule of Contract liabilities and deferred income


(In thousands)	December 31, 2021	December 31, 2022
Contract liabilities (note a)
Membership subscription	35,490	37,721
Live streaming	735	969
Others	1,340	1,153
Deferred income
Government grants	172	—
Total	37,737	39,843
Less: non-current portion (note b)	(845)	(876)
Contract liabilities and deferred income, current portion	36,892	38,967

Notes:

(a)

(b)	As of December 31, 2021 and 2022, the non-current portion consists of membership subscription of USD845,000 and USD876,000, respectively.

Accrued liabilities and other payables (Tables)

12 Months Ended

Dec. 31, 2022

Accrued liabilities and other payables

Schedule of Accrued Liabilities and Other Payables


(In thousands)	December 31, 2021	December 31, 2022
Payroll and welfare	18,618	23,277
Tax levies	2,397	4,178
Payables related to Xunlei Kankan	2,642	2,418
Payables for advertisement	3,821	1,980
Legal and litigation related expenses (note 25)	973	634
Professional service fees	2,175	1,656
Agency commissions and rebates from online advertising	2,759	2,525
Payables for construction in progress and office building	9,750	8,528
Others	6,422	4,242
Total	49,557	49,438

Bank borrowings (Tables)

12 Months Ended

Dec. 31, 2022

Bank borrowings

Schedule of bank borrowings


	December 31,	December 31,
(In thousands)	2021	2022
Bank borrowings, current portion	2,876	7,024
Bank borrowings, non-current portion	17,291	24,750
Total	20,167	31,774

Schedule of maturity of bank borrowings

As of December 31, 2022, the bank borrowings will be due according to the following schedule:


(In thousands)		Principal amounts
Within 1 year		7,024
Between 1 to 2 years		7,024
Between 2 to 3 years		7,024
Between 3 to 4 years		7,024
Between 4 to 5 years		3,678

Share-based compensation (Tables)

12 Months Ended

Dec. 31, 2022

Summary of Share Option Activity


				Weighted
		Weighted	Weighted-	average
		average	average	remaining	Aggregate
	Number of	exercise	grant-date	contractual life	intrinsic
	share options	price (USD)	fair value (USD)	(years)	value (USD)
Outstanding, January 1, 2020	10,000	3.97	—	1.16	—
Vested and expected to vest as of January 1, 2020	10,000	3.97	1.01	1.16	—
Expired	(10,000)	3.97	—	—	—
Outstanding, December 31, 2020	—	—	—	—	—
Vested and expected to vest as of December 31, 2020, 2021 and 2022	—	—	—	—	—

Schedule of Recognized Compensation Costs


	Years ended December 31,
(In thousands)	2020	2021	2022
Sales and marketing expenses	185	59	—
General and administrative expenses	1,209	4,682	6,855
Research and development expenses	916	1,429	1,329
Total	2,310	6,170	8,184

2010 share incentive plan [Member]

Summary of Restricted Shares Activities



		Number of
		restricted shares
Unvested as of January 1, 2020		5,184,500
Expected to vest as of January 1, 2020		4,406,825
Vested		(965,500)
Forfeited		(2,959,000)
Unvested as of December 31, 2020		1,260,000
Expected to vest as of December 31, 2020		1,071,000
Vested		(400,000)
Forfeited		(210,000)
Unvested as of December 31, 2021		650,000
Expected to vest as of December 31, 2021		552,500
Vested		(330,000)
Unvested as of December 31, 2022		320,000
Expected to vest as of December 31, 2022		272,000

2014 Plan [Member]

Summary of Restricted Shares Activities


		Number of
		restricted
		shares
Unvested as of January 1, 2020		1,321,200
Vested		(228,200)
Forfeited		(1,067,000)
Unvested as of December 31, 2020		26,000
Expected to vest as of December 31, 2020		22,100
Unvested as of January 1, 2021		26,000
Vested		(26,000)
Unvested as of December 31, 2021 and 2022		—
Expected to vest as of December 31, 2021 and 2022		—

2020 Incentive Plan

Summary of Restricted Shares Activities


		Weighted-average
	Number of	grant-date fair
	restricted shares	value (USD)
Unvested as of January 1, 2021	—
Granted	31,091,840	0.83
Vested	(2,429,965)
Forfeited	(2,777,500)
Unvested as of December 31, 2021	25,884,375
Expected to vest as of December 31, 2021	19,413,281
Unvested as of January 1, 2022	25,884,375
Granted	2,200,000	0.31
Vested	(9,509,660)
Forfeited	(1,716,665)
Unvested as of December 31, 2022	16,858,050
Expected to vest as of December 31, 2022	12,643,538

Costs of revenues (Tables)

12 Months Ended

Dec. 31, 2022

Costs of revenues.

Schedule of costs of revenues


	Years ended December 31,
(In thousands)	2020	2021	2022
Bandwidth costs	62,384	80,720	104,580
Revenue-sharing from live streaming business	15,640	26,506	78,636
Payment handling charges	1,459	3,066	6,500
Cost of inventories sold	1,660	1,516	2,228
Depreciation of servers and other equipment	6,247	4,805	1,363
Other costs (note)	5,247	1,990	6,747
Total	92,637	118,603	200,054

Note: Other costs mainly included content review costs, technical service costs and write-down of inventories.

Other income, net (Tables)

12 Months Ended

Dec. 31, 2022

Other income, net

Schedule of other income, net


	Years ended December 31,
(In thousands)	2020	2021	2022
Government subsidy income	2,287	3,206	2,377
Investment income from short-term investments	2,943	2,486	2,903
Net unrealized gains arising from long-term investments	794	—	437
Investment income on disposal of long-term investments	214	42	—
Impairment on long-term investments	(794)	—	(590)
Exchange (losses)/gains, net	(2,948)	(1,205)	4,494
VAT deduction	1,361	818	1,220
Gains from reversal of long outstanding payables	—	—	3,239
Others	880	(669)	(535)
Total	4,737	4,678	13,545

Taxation (Tables)

12 Months Ended

Dec. 31, 2022

Taxation

Schedule of Current and Deferred Portions of Income Tax Expense


	Years ended December 31,
(In thousands)	2020	2021	2022
Current income tax expenses	183	53	4,450
Deferred income tax expenses/(benefits)	966	(178)	(382)
Income tax expenses/(benefits)	1,149	(125)	4,068

Summary of Aggregate Amount and Per Share Effect of Tax Holiday


	Years ended December 31,
	2020	2021	2022
Aggregate dollar effect (in thousands)	197	4,100	5,243
Per share effect—basic	(0.00)	0.01	0.02
Per share effect—diluted	(0.00)	0.01	0.02

Reconciliation of Total Tax (Benefits)/Expenses


	Years ended December 31,
(In thousands)	2020	2021	2022
Income tax (benefits)/expenses at PRC statutory rate (based on statutory tax rate applicable to enterprises in China)	(3,736)	246	5,047
Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC	787	2,571	1,640
Non-deductible expenses	101	47	468
Effect of Super Deduction	(733)	(2,262)	(2,594)
Effect of tax holidays and tax concessions	(197)	(4,100)	(5,243)
Change in valuation allowance of deferred tax assets	4,704	3,507	4,709
Expiration of tax loss	84	—	—
Others	139	(134)	41
Income tax expenses/(benefits)	1,149	(125)	4,068

Summary of Changes in Deferred Tax Asset and Liability Balances


(In thousands)	December 31, 2021	December 31, 2022
Deferred tax assets, non-current portion:
Net operating losses carried forward (note a)	39,188	41,240
Impairment of long-term equity investments	4,245	3,972
Provision of allowance for expected credit losses	1,938	1,841
Others	209	383
Valuation allowance (note b)	(45,580)	(47,223)
Deferred tax assets, net	—	213

Deferred tax liabilities:
Deferred credit arising from an asset acquisition	(930)	(687)

Notes:

(a)

Schedule of Deferred Tax Assets and Liabilities Balances


(In thousands)	December 31, 2021	December 31, 2022
Within one year	180	165
After one year	750	522
Total	930	687

Schedule of Movement of Valuation Allowance


	Years ended December 31,
(In thousands)	2020	2021	2022
Beginning balance	34,257	40,924	45,580
Additions	4,704	3,507	5,931
Reversals	—	—	(1,222)
Exchange difference	1,963	1,149	(3,066)
Ending balance	40,924	45,580	47,223

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

12 Months Ended

Dec. 31, 2022

Basic and diluted net (loss) income per share

Schedule of Basic and Diluted Net Loss Per Share



(Amounts expressed in thousands of USD, except	Years ended December 31,
for number of shares and per share data)	2020	2021	2022
Numerator:
Net (loss)/income	(14,140)	1,108	21,347
Less: Net loss attributable to the non-controlling interest	(300)	(83)	(116)
Net (loss)/income attributable to Xunlei Limited’s common shareholders for basic/dilutive net (loss)/income per share calculation	(13,840)	1,191	21,463
Denominator:
Weighted average number of common shares outstanding, basic	337,429,601	334,707,559	336,040,378
Dilutive effect of restricted share units	—	1,262,221	195,123
Weighted average number of common shares outstanding, diluted	337,429,601	335,969,780	336,235,501
Basic net( loss)/ income per share	(0.0410)	0.0036	0.0639
Diluted net (loss)/income per share	(0.0410)	0.0035	0.0638

Related party transactions (Tables)

12 Months Ended

Dec. 31, 2022

Related party transactions

Schedule of relationship between related parties with their groups

Related party		Relationship with the Group
Weimin Luo		Former Director and Chief Operating Officer of the Company (note i)
Vantage Point Global Limited		Shareholder of the Company
Aiden & Jasmine Limited		Shareholder of the Company
Millet Technology Co., Ltd. (“Xiaomi Technology”)		(note ii)
Guangzhou Millet Information Service Co., Ltd. (“Guangzhou Millet”)		(note ii)
Shenzhen Xiaomi Technology Co., Ltd. (“Shenzhen Xiaomi”)		(note ii)
Beijing Xiaobu Technology Co., Ltd. (“Beijing Xiaobu”)		Company owned by the principal shareholder of the Company (note iii)
Sungai Pte. Ltd. (“Sungai”)		Company owned by the principal shareholder of the Company (note iii)
Beijing Itui Technology Co., Ltd. (“Beijing Itui”)		Company owned by the principal shareholder of the Company (note iii)
Itui Online		Company owned by the principal shareholder of the Company (note iii)
Chizz (HK) Limited (“Chizz”)		Company owned by the principal shareholder of the Company (note iii)

23. Related party transactions (Continued)

Notes:

(i)	Weimin Luo resigned from the board and resigned as the Chief Operating Officer of the Company on May 19, 2021 and June 1, 2021, respectively.

(ii)	Prior to April 2, 2020, these companies were related companies to the Company as they were affiliated companies of a shareholder of the Company,Best Ventures Limited (“Best Ventures”, formerly known as Xiaomi Ventures Limited).

(iii)

These companies become related parties of Xunlei since April 2, 2020 when Itui became the principal shareholder of the Company.

Schedule of significant related party transactions


	Years ended December 31,
(In thousands)	2020	2021	2022
Bandwidth revenue from Xiaomi Technology (note a)	2,211	2,798	4,978
Bandwidth revenue from Beijing Itui (note b)	1,119	821	592
Advertisement revenue from Itui Online (note c)	7,269	11,648	7,804
Advertisement revenue from Shenzhen Xiaomi	53	380	112
Technology service revenue from Guangzhou Millet (note d)	2,466	1,245	—
Technology service revenue from Shenzhen Xiaomi (note d)	—	1,392	2,505
Interest income from Chizz	—	176	176
Bandwidth cost from Quanxun Huiju	594	730	—
Interest accrued to Vantage Point Global Limited (note e)	243	—	—
Interest accrued to Aiden & Jasmine Limited (note e)	91	55	54
Distribution costs to Beijing Xiaobu	—	—	87
Repayment of loans to Weimin Luo arising from a business combination	662	—	—

Notes:

(a)	From August 2019 till now, Onething entered into the contract with Xiaomi Technology for the provision of bandwidth to Xiaomi Technology based on actual usage.

(b)	Onething entered into a sales contract with Beijing Itui for provision of bandwidth charged based on actual usage since July 2019. The contract was extended for one year from July 2021 to June 2022 and extended for another year to June 30, 2023, based on the same terms.

(c)

(d)

23. Related party transactions (Continued)

(e)

Schedule of amount due to from related party


(In thousands)	December 31, 2021	December 31, 2022
Amounts due from related parties -current
Accounts receivable due from Itui Online	12,156	7,910
Accounts receivable due from Shenzhen Xiaomi	1,520	1,378
Accounts receivable due from Xiaomi Technology	831	1,871
Accounts receivable due from Beijing Xiaobu	—	1,419
Accounts receivable due from Beijing Itui	857	537
Accounts receivable due from Sungai.	—	92
Other receivable due from Chizz (note)	176	19,689
Other receivable due from Xiaomi Technology	16	—
Other receivables due from other related parties (individual balance was less than USD10)	22	21
Total	15,578	32,917
Amounts due from a related party - non-current
Other receivable due from Chizz (note)	19,311	—
Total	19,311	—

Note: In September 2021, Xunlei Network provided a loan amounted to USD20 million to Chizz at an interest rate of 3% per annum for a term of 2 years.


(In thousands)	December 31, 2021	December 31, 2022
Amounts due to related parties
Accounts payable due to Quanxun Huiju	91	—
Other payable due to Aiden & Jasmine Limited	1,506	1,560
Total	1,597	1,560

Fair value measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair value measurements

Schedule of financial instruments measured at fair value


	Fair value measurements as of December 31, 2021
		Quoted prices	Significant
		in active market	other	Significant
		for identical	observable	unobservable
		assets	inputs	inputs
(In thousands)	Total	(Level 1)	(Level 2)	(Level 3)
Short-term investments:
Investments in structured deposits and wealth management products	53,273	—	53,273	—


	Fair value measurements as of December 31, 2022
		Quoted prices	Significant
		in active market	other	Significant
		for identical	observable	unobservable
		assets	inputs	inputs
(In thousands)	Total	(Level 1)	(Level 2)	(Level 3)
Short-term investments:
Investments in structured deposits and wealth management products	32,582	—	32,582	—

Commitments and contingencies (Tables)

12 Months Ended

Dec. 31, 2022

Loss Contingencies [Line Items]

Schedule of undiscounted cash payment


(In thousands)
2023		316
2024		316
Total undiscounted payments		632
Less: effect of discounting		(50)
Discounted lease liabilities		582

Bandwidth Purchase Commitments [Member]

Loss Contingencies [Line Items]

Schedule of undiscounted cash payment


(In thousands)		December 31, 2022
2023		1,925

Capital commitments [Member]

Loss Contingencies [Line Items]

Schedule of undiscounted cash payment


(In thousands)		December 31, 2022
2023		7,311
2024 and after		1,090
		8,401

Certain risks and concentration (Tables)

12 Months Ended

Dec. 31, 2022

Certain risks and concentration

Schedule of consolidated financial information of VIEs and VIE's subsidiaries


	As of December 31,
(In thousands)	2021	2022
Current assets:
Cash and cash equivalents	16,645	52,142
Short-term investments	6,373	—
Accounts receivable, net	26,003	29,162
Amount due from group companies	3,102	5,326
Due from related parties	15,387	13,121
Inventories	1,363	457
Prepayments and other current assets	7,142	2,574
Total current assets	76,015	102,782
Non-current assets:
Long-term investments	6,467	5,345
Property and equipment, net	57,417	61,545
Intangible assets, net	8,299	6,546
Goodwill	23,136	21,179
Long-term prepayments and other assets	2,684	2,094
Right-of-use assets	27	865
Restricted cash	4,078	7,654
Total assets	178,123	208,010
Current liabilities:
Accounts payable	23,789	23,398
Amount due to group companies	146,732	71,925
Due to related parties	91	—
Bank borrowings	2,876	7,024
Contract liabilities and deferred income	36,740	37,781
Income tax payable	2,451	3,342
Accrued liabilities and other payables	42,449	43,446
Lease liabilities, current portion	18	283
Total current liabilities	255,146	187,199
Non-current liabilities:
Contract liabilities and deferred income	845	876
Deferred tax liabilities	930	687
Amount due to group companies	31,369	97,617
Bank borrowings	17,291	24,750
Lease liabilities	7	299
Total liabilities	305,588	311,428


	Years ended December 31,
(In thousands)	2020	2021	2022
Third-party revenues	186,679	228,736	301,853
Third-party costs of revenues	(92,388)	(109,722)	(171,116)
Inter-company operating expenses	(7,177)	(8,032)	(4,863)
Third-party operating expenses	(101,421)	(110,367)	(115,578)
Net (loss)/income attributable to Xunlei Limited	(10,673)	2,913	11,136


	Years ended December 31,
(In thousands)	2020	2021	2022
Purchases of goods and services from group companies	—	—	(29,738)
Other operating activities with external parties	(13,423)	24,945	54,684
Net cash (used in)/generated from operating activities	(13,423)	24,945	24,946
Loans to group companies	(6,329)	—	—
Repayment of loans from group companies	502	—	—
Other investing activities with external parties	(9,160)	(19,417)	(8,801)
Net cash used in investing activities	(14,987)	(19,417)	(8,801)
Loans from group companies	2,542	23,527	25,580
Repayment of loans to group companies	(4,300)	(24,425)	(10,830)
Other financing activities with external parties	7,154	(223)	13,388
Net cash generated from/(used in) financing activities	5,396	(1,121)	28,138
	(23,014)	4,407	44,283

- Definition

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.

+ References + Details

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

12 Months Ended

Dec. 31, 2022

Additional information: condensed financial statements of the Company

Schedule of condensed balance sheets


(In thousands)	December 31, 2021	December 31, 2022
Assets
Current assets:
Cash and cash equivalents	32,015	32,004
Short-term investments	40,972	29,342
Due from group companies	107,484	5,808
Prepayments and other current assets	183	927
Total current assets	180,654	68,081
Non-current assets:
Due from group companies	92,917	200,471
Investments in subsidiaries and consolidated VIEs	36,324	49,888
Total assets	309,895	318,440
Liabilities
Current liabilities:
Accounts payable	55	55
Due to group companies	2,546	5,028
Due to related parties	1,506	1,560
Income tax payables	—	10
Accrued liabilities and other payables	2,141	1,894
Total current liabilities	6,248	8,547
Total liabilities	6,248	8,547
Commitments and contingencies
Shareholders’ equity
Common shares	84	81
Treasury shares (31,619,259 shares and 49,954,204 shares as of December 31, 2021 and 2022, respectively)	8	12
Other shareholders’ equity	303,555	309,800
Total Xunlei Limited’s shareholders’ equity	303,647	309,893
Total liabilities and shareholders’ equity	309,895	318,440

Schedule of condensed statements of operations

Condensed Statements of Operations


	Years ended December 31,
(In thousands)	2020	2021	2022
Operating expenses
General and administrative expenses	(1,438)	(3,302)	(6,436)
Total operating expenses	(1,438)	(3,302)	(6,436)
Operating loss	(1,438)	(3,302)	(6,436)
Interest income	2	107	360
Interest expense	(399)	(95)	(93)
Other income, net	2,455	585	368
(Loss)/income from subsidiaries and consolidated VIEs	(14,361)	3,935	27,300
(Loss)/income before income tax	(13,741)	1,230	21,499
Income tax expenses	(99)	(39)	(36)
Net (loss)/income	(13,840)	1,191	21,463
Net (loss)/income attributable to Xunlei Limited’s common shareholders	(13,840)	1,191	21,463

Schedule of condensed statements of cash flows

Condensed Statements of Cash Flows


	Years ended December 31,
(In thousands)	2020	2021	2022
Other operating activities with external parties	649	(5,732)	(948)
Net cash generated from/(used in) operating activities	649	(5,732)	(948)
Loans to group companies	(1,802)	(26,391)	(3,450)
Repayment of loans from group companies	500	—	—
Other investing activities with external parties	55,030	6,553	11,134
Net cash generated from/(used in) investing activities	53,728	(19,838)	7,684
Other financing activities with external parties	(4,475)	—	(6,747)
Net cash used in financing activities	(4,475)	—	(6,747)
Net increase/(decrease) in cash and cash equivalents	49,902	(25,570)	(11)
Cash and cash equivalents at beginning of year	7,683	57,585	32,015
Effect of exchange rates on cash and cash equivalents	—	—	—
Cash and cash equivalents at end of year	57,585	32,015	32,004

Organization and nature of operations - Additional Information (Details) ¥ / shares in Units, ¥ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥) ¥ / shares
Organization and nature of operations
Number of year's power of attorney retained	10 years
Percentage of pre-tax operating profit	80.00%
Giganology Shenzhen
Organization and nature of operations
Termination of agreement, notice period	30 days
Agreement expiration date	2022
Automated extended period of agreement	10 years
Agreement expiration extended date	2032
Agreement between Giganology Shenzhen and Mr. Sean Shenglong Zou [Member]
Organization and nature of operations
Additional interest-free loans	¥ 20
Increase in registered capital	30
Agreement between Giganology Shenzhen and Shareholders of Shenzhen Xunlei [Member]
Organization and nature of operations
Interest-free loans	¥ 9
Call Option Agreement [Member] \| Giganology Shenzhen
Organization and nature of operations
Agreement expiration date	2022
Outstanding share, purchase price per share \| ¥ / shares	¥ 1
Exclusive Technology Support and Services Agreement [Member]
Organization and nature of operations
Percentage of pre-tax operating profit	20.00%
Exclusive Technology Support and Services Agreement [Member] \| Giganology Shenzhen
Organization and nature of operations
Term agreement expiration year	2025
Exclusive Technology Consulting and Training Agreement [Member]
Organization and nature of operations
Percentage of pre-tax operating profit	20.00%
Software and Proprietary Technology License Contract [Member]
Organization and nature of operations
Percentage of pre-tax operating profit	40.00%

Organization and nature of operations - Accompanying Consolidated Financial Statements Include Financial Statements of Company, Subsidiaries, Variable Interest Entity ("VIE") and VIE's Subsidiaries (Details)	12 Months Ended
	Dec. 31, 2022
Giganology Shenzhen
Organization and nature of operations
Place of incorporation	PRC
Period of incorporation	Jun. 30, 2005
Relationship	Subsidiary
Percentage of direct or indirect economic ownership	100.00%
Principal activities	Development of computer software and provision of information technology services to related companies
Xunlei BVI
Organization and nature of operations
Place of incorporation	British Virgin Islands
Period of incorporation	Feb. 28, 2011
Relationship	Subsidiary
Percentage of direct or indirect economic ownership	100.00%
Principal activities	Investment holding company
Xunlei HK
Organization and nature of operations
Place of incorporation	Hong Kong
Period of incorporation	Mar. 31, 2011
Relationship	Subsidiary
Percentage of direct or indirect economic ownership	100.00%
Principal activities	Investment holding company and development of computer software
Xunlei Computer
Organization and nature of operations
Place of incorporation	PRC
Period of incorporation	Nov. 30, 2011
Relationship	Subsidiary
Percentage of direct or indirect economic ownership	100.00%
Principal activities	Development of computer software and provision of information technology services
FUNI
Organization and nature of operations
Place of incorporation	Singapore
Period of incorporation	Apr. 30, 2021
Relationship	Subsidiary
Percentage of direct or indirect economic ownership	100.00%
Principal activities	Operation of a live streaming platform
Shenzhen Xunlei
Organization and nature of operations
Place of incorporation	People’s Republic of China (“PRC”)
Period of incorporation	Jan. 31, 2003
Relationship	VIE
Percentage of direct or indirect economic ownership	100.00%
Principal activities	Development of software, provision of online advertising and membership subscription
Wangwenhua
Organization and nature of operations
Place of incorporation	PRC
Period of incorporation	Dec. 31, 2005
Relationship	VIE’s subsidiary
Percentage of direct or indirect economic ownership	100.00%
Principal activities	Development of computer software, provision of advertising services and operation of live steaming platforms
Xunlei Games
Organization and nature of operations
Place of incorporation	PRC
Period of incorporation	Feb. 28, 2010
Relationship	VIE’s subsidiary
Principal activities	Development of online game and computer software to related companies and provision of advertising services
Onething
Organization and nature of operations
Place of incorporation	PRC
Period of incorporation	Sep. 30, 2013
Relationship	VIE’s subsidiary
Percentage of direct or indirect economic ownership	100.00%
Principal activities	Development of cloud computing technology and provision of related services
Beijing Xunjing
Organization and nature of operations
Place of incorporation	PRC
Period of incorporation	Oct. 31, 2015
Relationship	VIE’s subsidiary
Percentage of direct or indirect economic ownership	100.00%
Principal activities	Development of computer software and provision of information technology services
Henan Tourism
Organization and nature of operations
Place of incorporation	PRC
Period of incorporation	Jun. 30, 2018
Relationship	VIE’s subsidiary
Principal activities	Software development, tourism consulting, ticket agent and other related services
Jiangxi Node
Organization and nature of operations
Place of incorporation	PRC
Period of incorporation	Jul. 31, 2020
Relationship	VIE’s subsidiary
Percentage of direct or indirect economic ownership	100.00%
Principal activities	Development of cloud computing technology and provision of related services

Summary of significant accounting policies - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of significant accounting policies
Impairment of long-term investments	$ 590,000	$ 0	$ 794,000
Cash flow projection period	5 years
Goodwill impairment losses	$ 0	0	0
External advertising and market promotion expenses from continuing operations	$ 12,551,000	15,052,000	11,026,000
Value added tax on revenues	13.00%
Value added tax on sub-licensing revenues	6.00%
Employee benefit costs	$ 14,266,000	$ 12,411,000	$ 7,949,000
Statutory general reserve rate	10.00%
Statutory general reserve rate of registered capital	50.00%
Dividends declared	$ 0	$ 0	$ 0
Long-term Investments
Summary of significant accounting policies
Impairment of long-term investments	$ 590,000	$ 0	$ 794,000
Minimum
Summary of significant accounting policies
Term of time-based subscriptions	1 month
Maximum
Summary of significant accounting policies
Term of time-based subscriptions	12 months
Net revenues \| Geographic Concentration Risk \| China \| Minimum
Summary of significant accounting policies
Percent of revenue	88.00%

Summary of significant accounting policies - Schedule of Property and Equipment Estimated Useful Life (Details)	12 Months Ended
	Dec. 31, 2022
Office building(note)
Property and equipment, net
Estimated useful lives	20 years
Residual rate	5.00%
Building decoration
Property and equipment, net
Estimated useful lives	10 years
Residual rate	5.00%
Servers and Network Equipment [Member]
Property and equipment, net
Residual rate	5.00%
Servers and Network Equipment [Member] \| Minimum
Property and equipment, net
Estimated useful lives	3 years
Servers and Network Equipment [Member] \| Maximum
Property and equipment, net
Estimated useful lives	5 years
Computer equipment
Property and equipment, net
Estimated useful lives	5 years
Residual rate	5.00%
Furniture, fixtures and office equipment
Property and equipment, net
Residual rate	5.00%
Furniture, fixtures and office equipment \| Minimum
Property and equipment, net
Estimated useful lives	3 years
Furniture, fixtures and office equipment \| Maximum
Property and equipment, net
Estimated useful lives	5 years
Motor vehicles
Property and equipment, net
Estimated useful lives	5 years
Residual rate	5.00%
Building decoration and leasehold improvements (note)
Property and equipment, net
Estimated useful lives	3 years

Summary of significant accounting policies - Intangible assets (Details)	12 Months Ended
	Dec. 31, 2022
Land use rights
Finite-lived intangible assets
Estimated useful lives	30 years
Acquired computer software
Finite-lived intangible assets
Estimated useful lives	5 years
Audio-visual license
Finite-lived intangible assets
Estimated useful lives	9 years

Summary of significant accounting policies - Analysis of Different Types of Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net revenues
Net revenues	$ 342,564	$ 239,601	$ 186,683
Subscription revenue
Net revenues
Net revenues	100,557	91,174	84,299
Live streaming revenue and other internet value-added services
Net revenues
Net revenues	122,372	53,614	38,039
Cloud computing service, other internet value-added services and product revenue
Net revenues
Net revenues	$ 119,635	$ 94,813	$ 64,345

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Cash and cash equivalents - Additional Information (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Cash and cash equivalents
Cash and cash equivalents are time deposits	$ 54,350,000	$ 31,050,000

Cash and cash equivalents - Summary of Cash on Hand and Cash Held at Bank (Details) ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 HKD ($)	Dec. 31, 2022 SGD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 HKD ($)	Dec. 31, 2021 SGD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Cash and cash equivalents
Cash on hand and cash held at bank	$ 177,154				$ 123,358				$ 137,248	$ 162,465
RMB
Cash and cash equivalents
Cash on hand and cash held at bank	100,461	¥ 699,666			55,922	¥ 356,535
USD
Cash and cash equivalents
Cash on hand and cash held at bank	73,449				66,650
SGD
Cash and cash equivalents
Cash on hand and cash held at bank	1,760			$ 2,370	547			$ 739
HKD
Cash and cash equivalents
Cash on hand and cash held at bank	157		$ 1,223		181		$ 1,413
Others
Cash and cash equivalents
Cash on hand and cash held at bank	$ 1,327				$ 58

Short-term investments - Schedule of Short-Term Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Short-term investments
Short-term investments	$ 83,626	$ 115,652
Time deposits
Short-term investments
Short-term investments	51,044	62,379
Investments in financial instruments
Short-term investments
Short-term investments	$ 32,582	$ 53,273

Accounts receivable, net - Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounts receivable, net
Accounts receivable	$ 31,192	$ 27,899
Less: Allowance for current expected credit losses	(1,429)	(1,764)	$ (9,329)	$ (7,604)
Accounts receivable, net	$ 29,763	$ 26,135

Accounts receivable, net - Allowance for current expected credit loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts receivable, net
Balance at beginning of the year	$ 1,764	$ 9,329	$ 7,604
Additions		72	1,137
Reversals	(188)	(481)
Write-off	(2)	(7,375)
Exchange difference	(145)	219	588
Balance at end of the year	$ 1,429	$ 1,764	$ 9,329

Accounts receivable, net - Additional Information (Details) - customer	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Accounts receivable, net
Number of top customers	10
Credit concentration risk [Member] \| Accounts receivable \| Top 10 customers
Accounts receivable, net
Accounts receivable, percentage	86.00%	86.00%
Credit concentration risk [Member] \| Accounts receivable \| Customer A
Accounts receivable, net
Accounts receivable, percentage		26.00%
Credit concentration risk [Member] \| Accounts receivable \| Customer B
Accounts receivable, net
Accounts receivable, percentage	39.00%	16.00%
Credit concentration risk [Member] \| Accounts receivable \| Customer C
Accounts receivable, net
Accounts receivable, percentage		13.00%
Credit concentration risk [Member] \| Accounts receivable \| Customer D
Accounts receivable, net
Accounts receivable, percentage	12.00%	11.00%
Credit concentration risk [Member] \| Accounts receivable \| Customer E
Accounts receivable, net
Accounts receivable, percentage	17.00%

Inventories - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Inventories
Inventory written down	$ 15,000	$ 429,000

Inventories (Details) - USD ($) $ in Thousands	12 Months Ended
Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventories
Less: Impairment	$ (281)	$ (470)
Inventories	457	1,363
Hardware Devices [Member]
Inventories
Inventories	532	1,595
Others [Member]
Inventories
Inventories	$ 206	$ 238

Prepayments and other assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current portion:
Deposit related to an ongoing litigation		$ 4,862
Advance to suppliers	$ 4,042	3,003
Receivable related to an asset disposal in 2019	4,288	4,684
Receivable from a business disposal in 2015	3,316	3,623
Loans to employees	1,851	1,713
Rental and other deposits	1,397	1,159
Others	4,040	3,867
Less: Allowance for current expected credit losses	(10,667)	(11,069)	$ (10,283)	$ (5,503)
Total of prepayments and other current assets	8,267	11,842
Non-current portion:
Loans to employees, non-current portion	1,543	1,473
Advances to suppliers, non-current portion	594	1,314
Total of long-term prepayments and other assets	$ 2,137	$ 2,787

Prepayments and other assets - Additional information (Details) - Employees [Member]	12 Months Ended
	Dec. 31, 2022
Minimum
Term of interest-free loans to employees	5 years
Maximum
Term of interest-free loans to employees	10 years

Prepayments and other assets- Movement in allowance for current expected credit loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Balance at beginning of the year	$ 11,069	$ 10,283	$ 5,503
Additions	745	745	4,168
Reversals	(197)	(150)
Write-off		(54)
Exchange difference	(950)	245	612
Balance at end of the year	$ 10,667	$ 11,069	$ 10,283

Long-term investments (Details) - USD ($) $ in Thousands	12 Months Ended
Long-term investments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cost method investments:
Balance at beginning of the year	$ 31,495	$ 26,734
Additions		4,627
Net unrealized gains on investments held	437	0
Impairment on long-term investments	(590)	0	$ (794)
Exchange difference	531	(134)
Balance at end of the year	$ 30,811	$ 31,495	$ 26,734

Long-term investments - Group's ownership of the long-term investments (Details)	1 Months Ended
	Dec. 31, 2021	Oct. 31, 2021	Dec. 31, 2022	May 31, 2022	Jan. 31, 2022	Sep. 30, 2021
Shenzhen Mojingou Information Service Co., Ltd
Equity method investments:
Equity method investments, Percentage of ownership of common share	28.77%		28.77%
Guangzhou Yuechuan [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	9.30%		9.30%
Chengdu Diting [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	12.74%		12.74%
Shanghai Guozhi [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	16.80%		16.80%
Guangzhou Hongsi [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	19.90%		19.90%
Xiamen Diensi [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	14.25%		14.25%
11.2 Capital [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	2.03%		2.03%
Cloudtropy [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	9.69%		9.69%
Shanghai Lexiang [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	6.93%		6.49%	6.49%		6.93%
Hangzhou Feixiang [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	28.00%		28.00%
Shenzhen Meizhi Interactive Technology Co Ltd [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	9.40%		9.40%
Beijing Yunhui Tianxia [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	13.70%		13.70%
Shen Zhen Arashi [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	8.73%		8.73%
Beijing Cloudin Technology [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	4.12%		4.12%
Quanxun Huiju
Cost method investments:
Cost method investments, Percentage of ownership of common share	5.40%		5.40%
Blue Bayread Limited [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	1.63%		1.63%
Blue Bayread Limited [Member] \| Xunlei BVI
Cost method investments:
Cost Method Investments, Ownership Percentage Acquired	1.63%
Clapper Media Group Inc. [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	10.00%		9.58%		9.58%
Clapper Media Group Inc. [Member] \| Xunlei HK
Cost method investments:
Cost Method Investments, Ownership Percentage Acquired		10.00%
Yunshang Hemei [Member]
Cost method investments:
Cost method investments, Percentage of ownership of common share	10.00%		10.00%
Yunshang Hemei [Member] \| Wangwenhua
Cost method investments:
Cost Method Investments, Ownership Percentage Acquired	10.00%

Long-term investments - Additional Information (Details)	1 Months Ended						12 Months Ended
	Jan. 31, 2022 USD ($)	Jan. 31, 2022 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 CNY (¥)	Oct. 31, 2021 USD ($)	Oct. 31, 2020	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	May 31, 2022	Sep. 30, 2021
Long-term investments
Net unrealized gains on investments held							$ 437,000	$ 0
Impairment of long-term investments							590,000	$ 0	$ 794,000
Shanghai Lexiang [Member]
Long-term investments
Percentage of equity interest disposed						4.82
Consideration for disposal of equity interest										$ 268,000
Net unrealized gains on investments held							$ 794,000
Impairment of long-term investments									$ 794,000
Cost method investments, Percentage of ownership of common share			6.93%	6.93%			6.49%	6.93%			6.49%	6.93%
Clapper Media Group Inc. [Member]
Long-term investments
Net unrealized gains on investments held	$ 437,000
Cost method investments, Percentage of ownership of common share	9.58%	9.58%	10.00%	10.00%			9.58%	10.00%
Clapper Media Group Inc. [Member] \| Xunlei HK
Long-term investments
Payments to Acquire Equity Method Investments					$ 1,000,000
Cloudtropy [Member]
Long-term investments
Cost method investments, Percentage of ownership of common share			9.69%	9.69%			9.69%	9.69%
Beijing Cloudin Technology [Member]
Long-term investments
Cost method investments, Percentage of ownership of common share			4.12%	4.12%			4.12%	4.12%
Shen Zhen Arashi [Member]
Long-term investments
Cost method investments, Percentage of ownership of common share			8.73%	8.73%			8.73%	8.73%
Chengdu Diting [Member]
Long-term investments
Cost method investments, Percentage of ownership of common share			12.74%	12.74%			12.74%	12.74%
Hangzhou Feixiang [Member]
Long-term investments
Cost method investments, Percentage of ownership of common share			28.00%	28.00%			28.00%	28.00%
Guangzhou Yuechuan [Member]
Long-term investments
Cost method investments, Percentage of ownership of common share			9.30%	9.30%			9.30%	9.30%
Yunshang Hemei [Member]
Long-term investments
Impairment of long-term investments	$ 590,000	¥ 4,000,000
Cost method investments, Percentage of ownership of common share			10.00%	10.00%			10.00%	10.00%
Yunshang Hemei [Member] \| Wangwenhua
Long-term investments
Payments to Acquire Equity Method Investments			$ 627,384	¥ 4,000,000
Quanxun Huiju
Long-term investments
Cost method investments, Percentage of ownership of common share			5.40%	5.40%			5.40%	5.40%
Blue Bayread Limited [Member]
Long-term investments
Cost method investments, Percentage of ownership of common share			1.63%	1.63%			1.63%	1.63%
Blue Bayread Limited [Member] \| Xunlei BVI
Long-term investments
Payments to Acquire Equity Method Investments			$ 3,000,000

Property and equipment, net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property and equipment, net
Total original costs	$ 74,535	$ 26,036
Less: Accumulated depreciation	(12,801)	(18,638)
Less: Accumulated impairment		(2)
Sub-total	61,734	7,396
Construction in progress		50,261
Total	61,734	57,657
Servers and network equipment
Property and equipment, net
Total original costs	15,065	15,522
Computer equipment
Property and equipment, net
Total original costs	1,624	1,737
Furniture, fixtures and office equipment
Property and equipment, net
Total original costs	790	857
Motor vehicles
Property and equipment, net
Total original costs	449	492
Building decoration and leasehold improvements (note)
Property and equipment, net
Total original costs	8,705	$ 7,428
Office building(note)
Property and equipment, net
Total original costs	$ 47,902

Property and equipment, net - Impairment loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property and equipment, net
Impairment of property and equipment	$ 0	$ 0	$ 0

Property and equipment, net - Depreciation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property and equipment, net
Depreciation expense	$ 2,666	$ 6,319	$ 9,277
Costs of revenues
Property and equipment, net
Depreciation expense	1,362	4,805	6,247
Research and Development Expense [Member]
Property and equipment, net
Depreciation expense	467	436	529
General and Administrative Expense [Member]
Property and equipment, net
Depreciation expense	828	1,068	2,492
Selling and Marketing Expense [Member]
Property and equipment, net
Depreciation expense	$ 9	$ 10	$ 9

Right-of-use assets and lease liabilities - Operating leases (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Right-of-use assets for long-term operating leases
Beginning balance	$ 27,000	$ 1,954,000
Additions	920,000	25,000
Modification of operating lease		(43,000)
Amortization	(56,000)	(1,934,000)	$ (3,685,000)
Effect of foreign currency exchange differences	(26,000)	25,000
Ending balance	865,000	27,000	1,954,000
General and administrative expenses for long-term operating lease	262,000	1,934,000	3,762,000
Charge recognized in relation to short-term lease	2,457,000	$ 786,000	$ 291,000
Future minimum payments under non-cancellable short-term operating leases in 2020	$ 45,000
Discount rate related to operating lease (as a percent)	5.40%	5.40%	5.40%
Weighted average remaining lease term (in years)	3 years	9 months 18 days	1 year
Cash payments in respect of operating lease	$ 2,792,000	$ 2,003,000	$ 3,797,000
Minimum
Right-of-use assets and lease liabilities
Operating lease, term of contract	1 year
Maximum
Right-of-use assets and lease liabilities
Operating lease, term of contract	3 years

Right-of-use assets and lease liabilities - Undiscounted cash payment (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Undiscounted cash payment
2023	$ 316
2024	316
Total undiscounted payments	632
Less: effect of discounting	(50)
Discounted lease liabilities	$ 582

Intangible assets, net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Finite-lived intangible assets
Cost	$ 13,672	$ 15,244
Amortization	(7,126)	(6,945)
Net book value	6,546	8,299
Land use rights
Finite-lived intangible assets
Cost	4,777	5,218
Amortization	(1,498)	(1,461)
Net book value	3,279	3,757
Acquired computer software
Finite-lived intangible assets
Cost	3,264	3,875
Amortization	(2,744)	(3,053)
Net book value	520	822
Audio-visual license
Finite-lived intangible assets
Cost	5,631	6,151
Amortization	(2,884)	(2,431)
Net book value	$ 2,747	$ 3,720

Intangible assets, net - Amortization expense recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-lived intangible assets
Amortization expense	$ 1,086	$ 1,129	$ 1,216
Costs of revenues
Finite-lived intangible assets
Amortization expense	54	10
General and Administrative Expense [Member]
Finite-lived intangible assets
Amortization expense	$ 1,032	1,113	1,210
Research and Development Expense [Member]
Finite-lived intangible assets
Amortization expense		$ 6	$ 6

Intangible assets, net - Estimated aggregate amortization expense (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Intangible assets, net
2023	$ 1,046
2024	983
2025	892
2026	871
2027 and thereafter	$ 2,754

Intangible assets, net - Weighted average amortization periods of intangible assets (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Finite-lived intangible assets
Total weighted average amortization periods	10 years	10 years
Land use rights
Finite-lived intangible assets
Total weighted average amortization periods	30 years	30 years
Acquired computer software
Finite-lived intangible assets
Total weighted average amortization periods	5 years	5 years
Audio-visual license
Finite-lived intangible assets
Total weighted average amortization periods	9 years	9 years

Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Goodwill
Beginning balance	$ 23,136	$ 22,607
Foreign currency translation adjustment	(1,957)	529
Ending balance	$ 21,179	$ 23,136

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Contract liabilities and deferred income - (Detail) - USD ($)

Dec. 31, 2022

Dec. 31, 2021

Contract liabilities and deferred income

Total

$ 35,380,000

$ 32,611,000

Total

39,843,000

37,737,000

Less: non-current portion (note b)

(876,000)

(845,000)

Contract liabilities and deferred income, current portion

38,967,000

36,892,000

Membership subscription

Contract liabilities and deferred income

Total

37,721,000

35,490,000

Less: non-current portion (note b)

(876,000)

(845,000)

Live Streaming

Contract liabilities and deferred income

Total

969,000

735,000

Government grants

Contract liabilities and deferred income

Total

172,000

Others

Contract liabilities and deferred income

Total

^[1]

$ 1,153,000

$ 1,340,000

[1]

Contract liabilities and deferred income - Additional Information (Detail) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Contract liabilities and deferred income
Total	$ 35,380,000	$ 32,611,000
Contract liabilities and deferred income	876,000	845,000
Membership subscription
Contract liabilities and deferred income
Total	37,721,000	35,490,000
Contract liabilities and deferred income	$ 876,000	$ 845,000

Accrued liabilities and other payables (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accrued liabilities and other payables
Payroll and welfare	$ 23,277	$ 18,618
Tax levies	4,178	2,397
Payables related to Xunlei Kankan	2,418	2,642
Payables for advertisement	1,980	3,821
Legal and litigation related expenses	634	973
Professional service fees	1,656	2,175
Agency commissions and rebates from online advertising	2,525	2,759
Payables for construction in progress and office building	8,528	9,750
Others	4,242	6,422
Total	$ 49,438	$ 49,557

Bank borrowings (Details) - USD ($)	12 Months Ended
Bank borrowings (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Bank borrowings, current portion	$ 7,024,000	$ 2,876,000
Bank borrowings, non-current portion	24,750,000	17,291,000
Total	31,774,000	20,167,000
Net interest expense capitalized	$ 1,593,000	$ 1,000,000	$ 890,000
Minimum \| Loan Prime Rate
Debt Instrument [Line Items]
Spread on variable basis rate	15.00%

Bank borrowings - Maturity of bank borrowings (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Maturity of bank borrowings
Within 1 year	$ 7,024
Between 1 to 2 years	7,024
Between 2 to 3 years	7,024
Between 3 to 4 years	7,024
Between 4 to 5 years	$ 3,678

Common shares - Additional Information (Details)	12 Months Ended
Common shares - Additional Information (Details)	Dec. 31, 2022 Vote $ / shares shares	Dec. 31, 2021 shares
Common shares.
Common stock, shares authorized	1,000,000,000
Common stock, par value \| $ / shares	$ 0.00025
Number of votes per common share \| Vote	1
Common stock, shares outstanding	325,047,736	337,257,946

Repurchase of shares (Details) - Share Buyback Program [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Mar. 31, 2022	Jun. 30, 2020
Equity, Class of Treasury Stock [Line Items]
Share repurchase authorized amount				$ 20.0	$ 20.0
Total number of ADS Purchased	4,409,974	0	1,191,392
ADS repurchased	$ 6.7		$ 4.5

Share-based compensation - 2010 Plan (Details) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2022	Jan. 31, 2015	Nov. 30, 2014
Share-based compensation
Common shares reserved for future issuance					6,124,735	10,991,120	10,000,000
Minimum \| Share options
Share-based compensation
Vesting period	7 years
Maximum \| Share options
Share-based compensation
Vesting period	10 years
2010 share incentive plan [Member] \| Directors [Member]
Share-based compensation
Vesting period		32 months
2010 share incentive plan [Member] \| Share options
Share-based compensation
Unrecognized compensation costs on share options		$ 0	$ 0
2010 share incentive plan [Member] \| Restricted shares [Member]
Share-based compensation
Number of restricted share vested		330,000	400,000	965,500
Unrecognized compensation costs on restricted shares		$ 352,479	$ 1,031,340
2010 share incentive plan [Member] \| Restricted shares [Member] \| Directors [Member]
Share-based compensation
Restricted shares expected to vest		10,770,520	10,770,520
2010 share incentive plan [Member] \| Maximum
Share-based compensation
Maximum aggregate number of shares available for grant	26,822,828

Share-based compensation - 2013 Plan (Details) - 2013 Plan [Member] - Restricted shares [Member] - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Nov. 30, 2013
Share-based compensation
Maximum aggregate number of shares available for grant				9,073,732
Unrecognized compensation costs on restricted shares	$ 0	$ 0
Number of restricted share vested	0	0	0

Share-based compensation - 2014 Plan (Details) - 2014 Plan [Member] - USD ($)	1 Months Ended	12 Months Ended
	Apr. 30, 2014	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2022
Share-based compensation
Maximum aggregate number of shares available for grant		0		0
Leading Advice Holdings Limited [Member]
Share-based compensation
Stock Issued During Period, Shares, New Issues	14,195,412
Restricted shares [Member]
Share-based compensation
Number of restricted share vested		26,000	228,200
Unrecognized compensation costs on restricted shares		$ 0		$ 0
Restricted shares [Member] \| Maximum
Share-based compensation
Maximum aggregate number of shares available for grant	14,195,412

Share-based compensation - Summary of Stock Option Activity (Details) - Share options - 2010 share incentive plan [Member] - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Number of share options
Outstanding at beginning of period	10,000
Vested and expected to vest		10,000
Expired	(10,000)
Outstanding at end of period		10,000
Weighted average exercise price (USD)
Outstanding at beginning of period	$ 3.97
Vested and expected to vest		$ 3.97
Expired	$ 3.97
Outstanding at end of period		3.97
Weighted average grant-date fair value (USD)
Vested and expected to vest		$ 1.01
Share option activity - additional disclosures
Weighted-average remaining contractual life, vested and expected to vest		1 year 1 month 28 days
Weighted-average remaining contractual life, outstanding		1 year 1 month 28 days

Share-based compensation - Summary of Restricted Shares Activities (Details) - Restricted shares [Member] - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
2010 share incentive plan [Member]
Number of restricted shares
Unvested at beginning of period	650,000	1,260,000	5,184,500
Vested	(330,000)	(400,000)	(965,500)
Forfeited		(210,000)	(2,959,000)
Unvested at end of period	320,000	650,000	1,260,000	5,184,500
Vested and expected to vest	272,000	552,500	1,071,000	4,406,825
2013 Plan [Member]
Number of restricted shares
Unvested at beginning of period	0	0
Vested	0	0	0
Unvested at end of period	0	0	0
2014 Plan [Member]
Number of restricted shares
Unvested at beginning of period		26,000	1,321,200
Vested		(26,000)	(228,200)
Forfeited			(1,067,000)
Unvested at end of period			26,000	1,321,200
Vested and expected to vest			22,100
2020 Incentive Plan
Number of restricted shares
Unvested at beginning of period	25,884,375
Granted	2,200,000	31,091,840
Vested	(9,509,660)	(2,429,965)
Forfeited	(1,716,665)	(2,777,500)
Unvested at end of period	16,858,050	25,884,375
Vested and expected to vest	12,643,538	19,413,281
Weighted-Average Grant-Date Fair Value
Weighted-Average Grant Date Fair Value, Granted	$ 0.31	$ 0.83

Share-based compensation - 2020 Plan (Details) - USD ($)	1 Months Ended				12 Months Ended
	Nov. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2022	Jan. 31, 2015	Nov. 30, 2014
Share-based compensation
Common shares reserved for future issuance								6,124,735	10,991,120	10,000,000
Number of shares repurchased under repurchase programs				9,667,230
2010 share incentive plan [Member] \| Restricted shares [Member]
Share-based compensation
Number of restricted share vested					330,000	400,000	965,500
Unrecognized compensation costs on restricted shares			$ 1,031,340		$ 352,479	$ 1,031,340
2010 share incentive plan [Member] \| Certain Officers and Employees [Member] \| Restricted shares [Member]
Share-based compensation
Future forfeitures rate					15.00%
Existing Plans
Share-based compensation
Common shares reserved for future issuance				21,039,742
2020 Incentive Plan
Share-based compensation
Number of shares available for grant			2,685,660	31,000,000	2,202,325	2,685,660
Common shares reserved for future issuance				293,028
Future forfeitures rate					25.00%
Unrecognized compensation costs on restricted shares			$ 18,147,328		$ 10,161,241	$ 18,147,328
2020 Incentive Plan \| Restricted shares [Member]
Share-based compensation
Number of shares granted					2,200,000	31,091,840
Number of restricted share vested					9,509,660	2,429,965
2020 Incentive Plan \| Tranche One [Member] \| Restricted Shares With 2 Years Vesting Period [Member]
Share-based compensation
Restricted shares expected to vest					15,059,340
2020 Incentive Plan \| Tranche Two [Member] \| Restricted Shares With 2 Years Vesting Period [Member]
Share-based compensation
Vesting period					2 years
2020 Incentive Plan \| Tranche Two [Member] \| Restricted Shares With 3 Years Vesting Period [Member]
Share-based compensation
Number of restricted share vested			30,000
Restricted shares expected to vest					90,000
2020 Incentive Plan \| Tranche Three [Member] \| Restricted Shares With 3 Years Vesting Period [Member]
Share-based compensation
Vesting period					3 years
2020 Incentive Plan \| Tranche Three [Member] \| Restricted Shares With 3 Years Vesting Period And Vesting On Second and Third Anniversary [Member]
Share-based compensation
Number of restricted share vested	133,335	1,699,990	2,299,965
Restricted shares expected to vest					13,148,335
2020 Incentive Plan \| Tranche Four [Member] \| Restricted Shares With 3 Years Vesting Period And Vesting On Second and Third Anniversary [Member]
Share-based compensation
Vesting period					3 years
2020 Incentive Plan \| Tranche Five [Member] \| Restricted Shares With 5 Years Vesting Period [Member]
Share-based compensation
Number of restricted share vested			100,000
Restricted shares expected to vest					500,000
Vesting period					5 years

Share-based compensation - Schedule of Recognized Compensation Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based compensation
Total compensation costs	$ 8,184	$ 6,170	$ 2,310
Sales and marketing expenses
Share-based compensation
Total compensation costs		59	185
General and administrative expenses
Share-based compensation
Total compensation costs	6,855	4,682	1,209
Research and development expenses
Share-based compensation
Total compensation costs	$ 1,329	$ 1,429	$ 916

Costs of revenues - Schedule of cost of revenues (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Costs of revenues
Total	$ 200,054	$ 118,603	$ 92,637
Bandwidth costs
Costs of revenues
Total	104,580	80,720	62,384
Revenue-sharing from live streaming business
Costs of revenues
Total	78,636	26,506	15,640
Payment handling charges
Costs of revenues
Total	6,500	3,066	1,459
Cost of inventories sold
Costs of revenues
Total	2,228	1,516	1,660
Depreciation of servers and other equipment
Costs of revenues
Total	1,363	4,805	6,247
Other costs
Costs of revenues
Total	$ 6,747	$ 1,990	$ 5,247

- Definition

The aggregate cost of goods produced and sold and services rendered during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.2)
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

+ Details

Other income, net - Schedule of Other income, net (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other income, net
Government subsidy income	$ 2,377	$ 3,206	$ 2,287
Net unrealized gains arising from long-term investments	437		794
Impairment of long-term investments	(590)		(794)
Exchange loss, net	4,494	(1,205)	(2,948)
VAT deduction	1,220	818	1,361
Gains from reversal of long outstanding payables	3,239
Others	(535)	(669)	880
Total	13,545	4,678	4,737
Short-term investments
Other income, net
Investment income	$ 2,903	2,486	2,943
Long-term investments
Other income, net
Income (Loss) from Equity and Cost Method Investments		$ 42	$ 214

Taxation - Schedule of Current and Deferred Portions of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Taxation
Current income tax (benefits)/expenses	$ 4,450	$ 53	$ 183
Deferred income tax expenses	(382)	(178)	966
Income tax (benefits)/expenses	$ 4,068	$ (125)	$ 1,149

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Taxation - Summary of Aggregate Amount and Per Share Effect of Tax Holiday (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Taxation
Aggregate dollar effect (In thousands)	$ 5,243	$ 4,100	$ 197
Per share effect-basic	$ 0.02	$ 0.01	$ 0.00
Per share effect-diluted	$ 0.02	$ 0.01	$ 0.00

Taxation - Reconciliation of Total Tax (Benefits) Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Continuing operations
Income tax (benefits)/expenses at PRC statutory rate (based on statutory tax rate applicable to enterprises in China)	$ 5,047	$ 246	$ (3,736)
Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC	1,640	2,571	787
Non-deductible expenses	468	47	101
Effect of Super Deduction	(2,594)	(2,262)	(733)
Effect of tax holidays and tax concessions	(5,243)	(4,100)	(197)
Change in valuation allowance of deferred tax assets	4,709	3,507	4,704
Expiration of tax loss			84
Others	41	(134)	139
Income tax (benefits)/expenses	$ 4,068	$ (125)	$ 1,149

Taxation - Summary of Changes in Deferred Tax Asset and Liability Balances (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Net operating losses carried forward (note a)	$ 41,240,000	$ 39,188,000
Impairment of long-term equity investment	3,972,000	4,245,000
Allowance for advance to suppliers	1,841,000	1,938,000
Impairment of property and equipment	383,000	209,000
Valuation allowance	(47,223,000)	(45,580,000)	$ (40,924,000)	$ (34,257,000)
Total deferred tax assets, net	213,000	0
Deferred tax liabilities:
Deferred credit arising from an asset acquisition	(687,000)	$ (930,000)
Accumulated net operating loss which can be carried forward indefinitely	5,854,000
Accumulated net operating loss which can be carried forward and will expire during the period from 2021 to 2030	$ 220,231,000

Taxation - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred Tax Assets, Net [Abstract]
Total deferred tax assets, net	$ 213	$ 0
Deferred Tax Liabilities, Net [Abstract]
Within one year	165	180
After one year	522	750
Total deferred tax liabilities	$ 687	$ 930

Taxation - Schedule of Movement of Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Taxation
Beginning balance	$ 45,580	$ 40,924	$ 34,257
Additions	(5,931)	(3,507)	(4,704)
Exchange difference	3,066	(1,149)	(1,963)
Reversals	(1,222)
Ending balance	$ 47,223	$ 45,580	$ 40,924

Taxation - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
Taxation - Additional Information (Details) - USD ($)	Jul. 31, 2020	Dec. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Giganology Shenzhen and Xunlei Computer [Member]
Taxation
Withholding taxes on dividends paid			$ 10
PRC Enterprise [Member]
Taxation
Effective income tax rate			25.00%
Jiangxi Node
Taxation
Preferential tax rate (as a percent)	15.00%		15.00%	15.00%	15.00%
Qianhai Shenzhen Hongkong Modern Service Industry Cooperation Zoon
Taxation
Preferential tax rate (as a percent)			15.00%	15.00%	15.00%
High And New Technology Enterprises [Member] \| Shenzhen Xunlei, Onething, Wangwenhua and Xunlei Computer
Taxation
Preferential tax rate (as a percent)			15.00%	15.00%	15.00%
State Administration of Taxation, China [Member] \| Research And Development Enterprise Activities [Member] \| Shenzhen Xunlei [Member]
Taxation
Portion of research and development expenses incurred that are allowable as tax deductible expenses (as a percent)		200.00%	175.00%
Domestic Tax Authority
Taxation
Withholding tax rate on foreign enterprises			10.00%
Withholding tax accrued or required to be accrued			$ 0	$ 0	$ 0
Domestic Tax Authority \| High And New Technology Enterprises [Member] \| PRC Enterprise [Member]
Taxation
Preferential tax rate (as a percent)			15.00%
Foreign Tax Authority \| British Virgin Islands
Taxation
Withholding taxes on dividends paid			$ 0
Foreign Tax Authority \| Hong Kong Subsidiaries
Taxation
Income tax rate			16.50%
Foreign Tax Authority \| Singapore Subsidiaries
Taxation
Income tax rate			17.00%
Foreign Tax Authority \| Cayman Islands Tax Information Authority [Member]
Taxation
Withholding taxes on dividends paid			$ 0

Basic and diluted net (loss) income per share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net (loss)/income	$ 21,347	$ 1,108	$ (14,140)
Less: net loss attributable to the non-controlling interests	(116)	(83)	(300)
Net (loss)/income attributable to Xunlei Limited's common shareholders for basic net (loss)/income per share calculation	21,463	1,191	(13,840)
Net (loss)/income attributable to Xunlei Limited's common shareholders for dilutive net (loss)/income per share calculation	21,463	1,191	(13,840)
Net (loss)/income attributable to Xunlei Limited	21,463	1,191	(13,840)
Numerator of basic net (loss)/income per share	21,463	1,191	(13,840)
Numerator of diluted net (loss)/income per share	$ 21,463	$ 1,191	$ (13,840)
Denominator:
Denominator for basic net (loss)/income per share weighted average shares outstanding	336,040,378	334,707,559	337,429,601
Dilutive effect of restricted share units	195,123	1,262,221
Denominator for diluted net (loss)/income per share	336,235,501	335,969,780	337,429,601
Basic	$ 0.0639	$ 0.0036	$ (0.0410)
Diluted	$ 0.0638	$ 0.0035	$ (0.0410)

Related party transactions - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Jan. 31, 2021	Dec. 31, 2020	Dec. 31, 2014
Relationship between related parties with their groups
Repayment of loans		$ 662,000
Treasury stock
Relationship between related parties with their groups
Interest on withheld tax price			5.00%
Aiden & Jasmine Limited \| Treasury stock
Relationship between related parties with their groups
Shares repurchased			3,860,733
Shares repurchased, value			$ 10,879,000
Interest on withheld tax			363,000
Withholding Tax Payable Non-current			$ 1,451,000
Vantage Point Global Limited
Relationship between related parties with their groups
Repayment of loans	$ 3,883,000
Vantage Point Global Limited \| Treasury stock
Relationship between related parties with their groups
Shares repurchased			10,334,679
Shares repurchased, value			$ 29,121,000
Interest on withheld tax			971,000
Withholding Tax Payable Non-current			$ 3,883,000

Related party transactions - Schedule of Relationship Between Related Parties with their Groups (Detail)	12 Months Ended
	Dec. 31, 2022
Weimin Luo
Relationship between related parties with their groups
Related parties relationship	Former Director and Chief Operating Officer of the Company (note i)
Vantage Point Global Limited
Relationship between related parties with their groups
Related parties relationship	Shareholder of the Company
Aiden & Jasmine Limited
Relationship between related parties with their groups
Related parties relationship	Shareholder of the Company
Millet Technology Co., Ltd.
Relationship between related parties with their groups
Related parties relationship	(note ii)
Guangzhou Millet Information Service Co., Ltd.
Relationship between related parties with their groups
Related parties relationship	(note ii)
Shenzhen Xiaomi Technology Co., Ltd.
Relationship between related parties with their groups
Related parties relationship	(note ii)
Beijing Xiaochuan Technology Co., Ltd.
Relationship between related parties with their groups
Related parties relationship	Company owned by the principal shareholder of the Company (note iii)
Sungai Pte. Ltd.
Relationship between related parties with their groups
Related parties relationship	Company owned by the principal shareholder of the Company (note iii)
Beijing Itui Technology Co., Ltd.
Relationship between related parties with their groups
Related parties relationship	Company owned by the principal shareholder of the Company (note iii)
Itui Online
Relationship between related parties with their groups
Related parties relationship	Company owned by the principal shareholder of the Company (note iii)
Chizz
Relationship between related parties with their groups
Related parties relationship	Company owned by the principal shareholder of the Company (note iii)

Related party transactions - Schedule of Significant Related Party Transactions (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Jan. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Relationship between related parties with their groups
Revenue from related party		$ 15,991,000	$ 18,284,000	$ 13,118,000
Bandwidth cost from Quanxun Huiju		87,000	0	0
Repayment of loans				662,000
Xiaomi Technology \| Bandwidth
Relationship between related parties with their groups
Revenue from related party		4,978,000	2,798,000	2,211,000
Guangzhou Millet \| Technology Service [Member]
Relationship between related parties with their groups
Revenue from related party			1,245,000	2,466,000
Vantage Point Global Limited
Relationship between related parties with their groups
Interest accrued				243,000
Repayment of loans	$ 3,883,000
Aiden & Jasmine Limited
Relationship between related parties with their groups
Interest accrued		54,000	55,000	91,000
Itui Online \| Advertising
Relationship between related parties with their groups
Revenue from related party		7,804,000	11,648,000	7,269,000
Itui Online \| Bandwidth
Relationship between related parties with their groups
Revenue from related party		592,000	821,000	1,119,000
Shenzhen Xiaomi Technology Co., Ltd. \| Technology Service [Member]
Relationship between related parties with their groups
Revenue from related party		2,505,000	1,392,000
Shenzhen Xiaomi Technology Co., Ltd. \| Advertising
Relationship between related parties with their groups
Revenue from related party		112,000	380,000	53,000
Weimin Luo
Relationship between related parties with their groups
Repayment of loans				662,000
Quanxun Huiju
Relationship between related parties with their groups
Bandwidth cost from Quanxun Huiju			730,000	$ 594,000
Chizz
Relationship between related parties with their groups
Interest income from Chizz		176,000	$ 176,000
Beijing Xiaobu
Relationship between related parties with their groups
Revenue from related party		$ 87,000

Related party transactions - Schedule of Amount Due to from Related Party (Detail) - USD ($) $ in Thousands	1 Months Ended
	Sep. 30, 2021	Dec. 31, 2022	Dec. 31, 2021
Due from related parties - Current
Amounts due from related parties -current		$ 32,917	$ 15,578
Amounts due from a related party - non-current			19,311
Accounts payable to related party		1,560	1,597
Itui Online
Due from related parties - Current
Amounts due from related parties -current		7,910	12,156
Shenzhen Xiaomi
Due from related parties - Current
Amounts due from related parties -current		1,378	1,520
Xiaomi Technology
Due from related parties - Current
Amounts due from related parties -current		1,871	831
Other related parties
Due from related parties - Current
Other receivable due from related parties		21	22
Beijing Xiaobu
Due from related parties - Current
Amounts due from related parties -current		1,419
Beijing Itui Technology Co., Ltd.
Due from related parties - Current
Amounts due from related parties -current		537	857
Sungai
Due from related parties - Current
Amounts due from related parties -current		92
Chizz
Relationship between related parties with their groups
Face value	$ 20,000
Interest rate	3.00%
Due to term	2 years
Due from related parties - Current
Other receivable due from related parties		19,689	176
Due from related parties - Non current
Other receivable due from related party			19,311
Shenzhen Xiaomi Technology Co., Ltd.
Due from related parties - Current
Other receivable due from related parties			16
Aiden & Jasmine Limited
Due from related parties - Current
Other payable due to related parties		1,560	1,506
Quanxun Huiju
Due from related parties - Current
Accounts payable to related party		$ 0	$ 91

Fair value measurements - Schedule of financial instruments measured at fair value (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair value measurements
Investments in structured deposits and wealth management products	$ 32,582	$ 53,273
Level 2
Fair value measurements
Investments in structured deposits and wealth management products	$ 32,582	$ 53,273

Commitments and contingencies - Additional Information (Details) ¥ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) case	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Commitments and contingencies
Legal and litigation related expenses	$ 188,000		$ 997,000
Legal expense reversed				$ 1,217,000
Number of lawsuits pending \| case	6
Legal and litigation related expenses	$ 634,000		973,000
Pending Litigation
Commitments and contingencies
Number of lawsuits pending \| case	5
Aggregate amount of claimed damages	$ 800,000	¥ 5.6	1,700,000
Legal and litigation related expenses	$ 634,000		$ 973,000

Commitments and contingencies - Future Minimum Payments under Non-Cancellable Leases (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Future minimum payments under non-cancellable
2023	$ 316
Bandwidth purchase commitments
Future minimum payments under non-cancellable
2023	$ 1,925

Commitments and contingencies - Capital commitments (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Commitments and contingencies
2023	$ 7,311
2024 and after	1,090
Unrecorded unconditional purchase obligation	$ 8,401

Certain risks and concentration - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) customer	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Certain risks and concentration
Maximum foreign ownership in internet information provider or other value-added telecommunication service provider's business allowed under PRC laws and regulations	50.00%
Net revenues	$ 341,497	$ 238,782	$ 186,371
Number of top customers accounted for net revenues \| customer	10
Shenzhen Xunlei
Certain risks and concentration
Term of operating contract	10 years
Net revenues \| Concentration of customer risk \| Top 10 customers
Certain risks and concentration
Percentage of net revenues accounted from customers	33.00%	35.00%	38.00%
Net revenues \| Concentration of customer risk \| Customer A
Certain risks and concentration
Percentage of net revenues accounted from customers	2.00%	6.00%	11.00%
Net revenues	$ 8,200	$ 14,900	$ 21,000
Net revenues \| Concentration of customer risk \| Customer B
Certain risks and concentration
Percentage of net revenues accounted from customers	14.00%	13.00%	8.00%
Net revenues	$ 49,400	$ 31,400	$ 14,200

Certain risks and concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Balance sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 177,154	$ 123,358	$ 137,248	$ 162,465
Short-term investments	83,626	115,652
Accounts receivable, net	29,763	26,135
Due from related parties	32,917	15,578
Inventories	457	1,363
Prepayments and other current assets	8,267	11,842
Total current assets	332,184	293,928
Non-current assets:
Long-term investments	30,811	31,495
Property and equipment, net	61,734	57,657
Intangible assets, net	6,546	8,299
Goodwill	21,179	23,136	22,607
Long-term prepayments and other assets	2,137	2,787
Right-of-use assets	865	27	$ 1,954
Restricted cash	7,654	4,078
Total assets	463,323	440,718
Current liabilities:
Accounts payable	25,432	26,407
Due to related parties	1,560	1,597
Bank borrowings	7,024	2,876
Contract liabilities and deferred income	38,967	36,892
Accrued liabilities and other payables	49,438	49,557
Lease liabilities, current portion	283	18
Total current liabilities	128,290	119,878
Non-current liabilities:
Contract liabilities and deferred income	876	845
Deferred tax liabilities	687	930
Bank borrowings	24,750	17,291
Lease liabilities, non-current portion	299	7
Total liabilities	154,902	138,951
VIEs
Current assets:
Cash and cash equivalents	52,142	16,645
Short-term investments		6,373
Accounts receivable, net	29,162	26,003
Amount due from group companies	5,326	3,102
Due from related parties	13,121	15,387
Inventories	457	1,363
Prepayments and other current assets	2,574	7,142
Total current assets	102,782	76,015
Non-current assets:
Long-term investments	5,345	6,467
Property and equipment, net	61,545	57,417
Intangible assets, net	6,546	8,299
Goodwill	21,179	23,136
Long-term prepayments and other assets	2,094	2,684
Right-of-use assets	865	27
Restricted cash	7,654	4,078
Total assets	208,010	178,123
Current liabilities:
Accounts payable	23,398	23,789
Amount due to group companies	71,925	146,732
Due to related parties		91
Bank borrowings	7,024	2,876
Contract liabilities and deferred income	37,781	36,740
Income tax payable	3,342	2,451
Accrued liabilities and other payables	43,446	42,449
Lease liabilities, current portion	283	18
Total current liabilities	187,199	255,146
Non-current liabilities:
Contract liabilities and deferred income	876	845
Deferred tax liabilities	687	930
Amount due to group companies	97,617	31,369
Bank borrowings	24,750	17,291
Lease liabilities, non-current portion	299	7
Total liabilities	$ 311,428	$ 305,588

Certain risks and concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Income Statement (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Certain risks and concentration
Net revenues	$ 341,497	$ 238,782	$ 186,371
Costs of revenues (including transactions with related parties of nil, nil and USD87 for the years ended December 31, 2020, 2021 and 2022, respectively)	(200,054)	(118,603)	(92,637)
Operating expenses	(131,378)	(124,502)	(112,527)
Net (loss)/income attributable to Xunlei Limited	21,463	1,191	(13,840)
VIEs
Certain risks and concentration
Net (loss)/income attributable to Xunlei Limited	11,136	2,913	(10,673)
VIEs \| Third-party
Certain risks and concentration
Net revenues	301,853	228,736	186,679
Costs of revenues (including transactions with related parties of nil, nil and USD87 for the years ended December 31, 2020, 2021 and 2022, respectively)	(171,116)	(109,722)	(92,388)
Operating expenses	(115,578)	(110,367)	(101,421)
VIEs \| Inter-company
Certain risks and concentration
Operating expenses	$ (4,863)	$ (8,032)	$ (7,177)

- Definition

The aggregate cost of goods produced and sold and services rendered during the reporting period.

+ References

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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+ Details

Certain risks and concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Cash Flow (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Certain risks and concentration
Net (decrease)/increase in cash, cash equivalents and restricted cash	$ 69,508	$ (13,362)	$ (31,988)
VIEs
Certain risks and concentration
Purchases of goods and services from group companies	(29,738)
Other operating activities with external parties	54,684	24,945	(13,423)
Net cash (used in)/generated from operating activities	24,946	24,945	(13,423)
Loans to group companies			(6,329)
Repayment of loans from group companies			502
Other investing activities with external parties	(8,801)	(19,417)	(9,160)
Net cash used in investing activities	(8,801)	(19,417)	(14,987)
Loans from group companies	25,580	23,527	2,542
Repayment of loans to group companies	(10,830)	(24,425)	(4,300)
Other financing activities with external parties	13,388	(223)	7,154
Net cash generated from/(used in) financing activities	28,138	(1,121)	5,396
Net (decrease)/increase in cash, cash equivalents and restricted cash	$ 44,283	$ 4,407	$ (23,014)

Subsequent events (Details) - Subsequent event - 2020 Plan	Mar. 13, 2023 shares
Minimum
Subsequent events
Maximum aggregate number of shares available for grant	31,000,000
Maximum
Subsequent events
Maximum aggregate number of shares available for grant	46,561,200

Additional information: condensed financial statements of the Company - Schedule of Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 177,154	$ 123,358	$ 137,248	$ 162,465
Short-term investments	83,626	115,652
Prepayments and other current assets	8,267	11,842
Total current assets	332,184	293,928
Non-current assets:
Total assets	463,323	440,718
Current liabilities:
Accounts payable	25,432	26,407
Due to related parties	1,560	1,597
Income tax payables	5,586	2,531
Total current liabilities	128,290	119,878
Total liabilities	154,902	138,951
Commitments and contingencies
Shareholders' equity
Common shares	81	84
Treasury shares (31,619,259 shares and 49,954,204 shares as of December 31, 2021 and 2022, respectively)	12	8
Total Xunlei Limited's shareholders' equity	309,893	303,647
Total liabilities and shareholders' equity	463,323	440,718
Xunlei Limited
Current assets:
Cash and cash equivalents	32,004	32,015	$ 57,585	$ 7,683
Short-term investments	29,342	40,972
Due from group companies	5,808	107,484
Prepayments and other current assets	927	183
Total current assets	68,081	180,654
Non-current assets:
Due from group companies	200,471	92,917
Investments in subsidiaries and consolidated VIEs	49,888	36,324
Total assets	318,440	309,895
Current liabilities:
Accounts payable	55	55
Due to group companies	5,028	2,546
Due to related parties	1,560	1,506
Income tax payables	10
Accrued liabilities and other payables	1,894	2,141
Total current liabilities	8,547	6,248
Total liabilities	8,547	6,248
Commitments and contingencies
Shareholders' equity
Common shares	81	84
Treasury shares (31,619,259 shares and 49,954,204 shares as of December 31, 2021 and 2022, respectively)	12	8
Other shareholders' equity	309,800	303,555
Total Xunlei Limited's shareholders' equity	309,893	303,647
Total liabilities and shareholders' equity	$ 318,440	$ 309,895

Additional information: condensed financial statements of the Company - Schedule of Condensed Balance Sheets (Parenthetical) (Detail) - shares	Dec. 31, 2022	Dec. 31, 2021
Condensed Balance Sheets
Treasury stock, shares	49,954,204	31,619,259
Xunlei Limited
Condensed Balance Sheets
Treasury stock, shares	49,954,204	31,619,259

Additional information: condensed financial statements of the Company - Schedule of Condensed Statements of Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating expenses
General and administrative expenses	$ (39,701)	$ (36,868)	$ (33,910)
Total operating expenses	(131,378)	(124,502)	(112,527)
Operating loss	10,065	(4,323)	(18,793)
Interest income	1,898	723	1,471
Interest expense	(93)	(95)	(406)
Other income, net	13,545	4,678	4,737
(Loss)/income before income tax	25,415	983	(12,991)
Income tax expenses	(4,068)	125	(1,149)
Net (loss)/income	21,347	1,108	(14,140)
Net (loss)/income attributable to Xunlei Limited's common shareholders	21,463	1,191	(13,840)
Xunlei Limited
Operating expenses
General and administrative expenses	(6,436)	(3,302)	(1,438)
Total operating expenses	(6,436)	(3,302)	(1,438)
Operating loss	(6,436)	(3,302)	(1,438)
Interest income	360	107	2
Interest expense	(93)	(95)	(399)
Other income, net	368	585	2,455
(Loss)/income from subsidiaries and consolidated VIEs	27,300	3,935	(14,361)
(Loss)/income before income tax	21,499	1,230	(13,741)
Income tax expenses	(36)	(39)	(99)
Net (loss)/income	21,463	1,191	(13,840)
Net (loss)/income attributable to Xunlei Limited's common shareholders	$ 21,463	$ 1,191	$ (13,840)

Additional information: condensed financial statements of the Company - Schedule of Condensed Statement of Cash Flows (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from financing activities
Net (decrease)/increase in cash, cash equivalents and restricted cash	$ 69,508	$ (13,362)	$ (31,988)
Cash and cash equivalents at beginning of the year	123,358	137,248	162,465
Effect of exchange rates on cash and cash equivalents	(12,136)	2,009	5,329
Cash and cash equivalents at end of the year	177,154	123,358	137,248
Xunlei Limited
Cash flows from operating activities
Other operating activities with external parties	(948)	(5,732)	649
Net cash generated from/(used in) operating activities	(948)	(5,732)	649
Cash flows from investing activities
Loans to group companies	(3,450)	(26,391)	(1,802)
Repayment of loans from group companies			500
Other investing activities with external parties	11,134	6,553	55,030
Net cash generated from/(used in) investing activities	7,684	(19,838)	53,728
Cash flows from financing activities
Other financing activities with external parties	(6,747)		(4,475)
Net cash used in financing activities	(6,747)		(4,475)
Net (decrease)/increase in cash, cash equivalents and restricted cash	(11)	(25,570)	49,902
Cash and cash equivalents at beginning of the year	32,015	57,585	7,683
Effect of exchange rates on cash and cash equivalents	0	0	0
Cash and cash equivalents at end of the year	$ 32,004	$ 32,015	$ 57,585