0001104659-24-050566 | 20-F | XBRL Viewer

Bandwidth purchase commitments

The undiscounted cash payments for each of the next five years as of December 31, 2023 is:


(In thousands)
2024		297
2025		166
2026		70
Total undiscounted payments		533
Less: effect of discounting		(28)
Discounted lease liabilities		505


(In thousands)		December 31, 2023
2024		195

Capital commitments


(In thousands)		December 31, 2023
2024		7,851
2025 and after		59
		7,910

Taxation - Schedule of Current and Deferred Portions of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Taxation
Current income tax expenses	$ 4,559	$ 4,450	$ 53
Deferred income tax benefits	(428)	(382)	(178)
Income tax (benefits)/expenses	$ 4,131	$ 4,068	$ (125)

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

Summary of significant accounting policies - Schedule of Property and Equipment Estimated Useful Life (Details)	Dec. 31, 2023
Office building (note)
Property and equipment, net
Estimated useful lives	20 years
Residual rate	5.00%
Building decoration
Property and equipment, net
Estimated useful lives	10 years
Residual rate	5.00%
Servers and network equipment
Property and equipment, net
Residual rate	5.00%
Servers and network equipment \| Minimum
Property and equipment, net
Estimated useful lives	3 years
Servers and network equipment \| Maximum
Property and equipment, net
Estimated useful lives	5 years
Computer equipment
Property and equipment, net
Estimated useful lives	5 years
Residual rate	5.00%
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%
Leasehold improvements
Property and equipment, net
Estimated useful lives	3 years

Taxation

12 Months Ended

Dec. 31, 2023

Taxation

Taxation

21. Taxation

(i) Cayman Islands

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

(ii) British Virgin Islands (“BVI”)

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

(iii) Hong Kong

Subsidiaries in Hong Kong are subject to 16.5% income tax on their taxable income generated from operations in Hong Kong for the years ended December 31, 2021, 2022 and 2023, respectively.

21. Taxation (Continued)

(iv) Singapore

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

(v) PRC Enterprise Income Tax (“EIT”)

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

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

Shenzhen Xunlei, Onething, Wangwenhua and Xunlei Computer have been recognized as HNTE and entitled to preferential tax rate of 15% for the years ended December 31, 2021, 2022 and 2023. In addition, Onething was established in Qianhai Shenzhen Hongkong Modern Service Industry Cooperation Zone and met the requirements set out by the local authorities, accordingly it is also entitled to a preferential tax rate of 15% for the years ended December 31, 2021, 2022 and 2023.

Jiangxi Node was qualified for a preferential tax rate of 15% for the years ended December 31, 2021, 2022 and 2023. The preferential tax rate is awarded to companies which are located in the West Regions of China and operate in certain encouraged industries. This qualification needs to be assessed on an annual basis.

Certain subsidiaries of the Group or VIE’s subsidiaries in the PRC have been granted certain tax concessions to small scale entities by tax authorities in the PRC whereby the subsidiaries operating in the respective region are entitled to tax concessions. Jiangxi Node was also qualified for small scale entities for the year ended December 31, 2023, it elected to apply the tax concession accordingly. The remaining PRC subsidiaries and VIE’s subsidiaries are subject to a 25% EIT rate.

According to a policy of the PRC State Tax Bureau, enterprises that engage in research and development activities are entitled to claim 175% of the research and development expenses incurred in a year as tax deductible expenses in determining their tax assessable profits for that year (“Super Deduction”) from January 1, 2018. In addition, enterprises that engage in research and development activities are allowed to claim 200% of the research and development expenses incurred during October 1, 2022 to December 31, 2023 as tax deductible expenses in determining their tax assessable profits, based on the policy announced by the PRC State Tax Bureau in September 2022 and March 2023.

In addition, according to the EIT Law and its implementation rules, foreign enterprises, which have no establishment or place in the PRC but derive dividends, interest, rents, royalties and other income (including capital gains) from sources in the PRC are subject to PRC withholding tax, or WHT, at 10% (a further reduced WHT rate may be available according to the applicable double tax treaty arrangement). The 10% WHT is generally applicable to any dividends to be distributed from Giganology Shenzhen and Xunlei Computer to the Company out of any profits of Giganology Shenzhen and Xunlei Computer derived after January 1, 2008. Up to December 31, 2023, both Giganology Shenzhen and Xunlei Computer did not declare any dividend to the parent company and have determined that they have no present plan to declare and pay any dividends. The Group currently plans to continue to reinvest its subsidiaries’ undistributed earnings, if any, in its operations in China indefinitely. Accordingly, no withholding income tax was accrued or required to be accrued for the years ended December 31, 2021, 2022 and 2023.

21. Taxation (Continued)

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

Moreover, the current EIT Law treats enterprises established outside of China with “effective management and control” located in the PRC as PRC resident enterprises for tax purposes. The term “effective management and control” is generally defined as exercising overall management and control over the business, personnel, accounting, properties etc. of an enterprise. The Company, if considered a PRC resident enterprise for tax purposes, would be subject to the PRC EIT at the rate of 25% on its worldwide income for the period after January 1, 2008. As of December 31, 2022 and 2023, the Company has not accrued for PRC tax on such basis. The Company will continue to monitor its tax status.

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


	Years ended December 31,
(In thousands)	2021	2022	2023
Current income tax expenses	53	4,450	4,559
Deferred income tax benefits	(178)	(382)	(428)
Income tax (benefits)/expenses	(125)	4,068	4,131

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


	Years ended December 31,
	2021	2022	2023
Aggregate dollar effect (in thousands)	4,100	5,243	5,121
Per share effect—basic	0.01	0.02	0.02
Per share effect—diluted	0.01	0.02	0.02

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


	Years ended December 31,
(In thousands)	2021	2022	2023
Income tax expenses/(benefits) at PRC statutory rate (based on statutory tax rate applicable to enterprises in China)	246	5,047	3,965
Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC	2,571	1,640	1,615
Non-deductible expenses	47	468	306
Effect of Super Deduction	(2,262)	(2,594)	(3,609)
Effect of tax holidays and tax concessions	(4,100)	(5,243)	(5,121)
Change in valuation allowance of deferred tax assets	3,507	4,709	7,170
Others	(134)	41	(195)
Income tax (benefits)/expenses	(125)	4,068	4,131

21. Taxation (Continued)

(v)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, 2022 and 2023 are as follows:


(In thousands)	December 31, 2022	December 31, 2023
Deferred tax assets, non-current portion:
Net operating losses carried forward (note a)	41,240	49,921
Impairment of long-term equity investments	3,972	493
Provision of allowance for expected credit losses	1,841	1,071
Others	383	861
Valuation allowance (note b)	(47,223)	(51,868)
Deferred tax assets, net	213	478

Deferred tax liabilities:
Deferred credit arising from an asset acquisition	(687)	(513)

Notes:

(a)

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


(In thousands)	December 31, 2022	December 31, 2023
Within one year	165	162
After one year	522	351
Total	687	513

Movement of valuation allowance is as follows:


	Years ended December 31,
(In thousands)	2021	2022	2023
Beginning balance	40,924	45,580	47,223
Additions	3,507	5,931	7,406
Reversals	—	(1,222)	(236)
Exchange difference	1,149	(3,066)	(2,525)
Ending balance	45,580	47,223	51,868

For the years ended December 31, 2021, 2022 and 2023, valuation allowance was provided for net operating loss carryforwards from certain subsidiaries, the VIE and VIE’s subsidiaries because it was more likely than not that such deferred tax assets will not be realized based on the Group’s estimate of future taxable income of those companies.

As of December 31, 2023, the tax returns of the Group’s PRC subsidiaries, VIE and VIE’s subsidiaries for tax years 2019 through 2023 are still open to examination, the tax returns of FUNI for tax years 2022 and 2023 are still open to examination.

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

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

Certain risks and concentration (Tables)

12 Months Ended

Dec. 31, 2023

Certain risks and concentration


	As of December 31,
(In thousands)	2022	2023
Current assets:
Cash and cash equivalents	52,142	37,286
Short-term investments	—	14,825
Accounts receivable, net	29,162	27,851
Amount due from group companies	5,326	5,278
Due from related parties	13,121	12,330
Inventories	457	2,219
Prepayments and other current assets	2,574	2,579
Total current assets	102,782	102,368
Non-current assets:
Long-term investments	5,345	6,668
Property and equipment, net	61,545	59,882
Intangible assets, net	6,546	5,697
Goodwill	21,179	20,826
Long-term prepayments and other assets	2,094	1,928
Operating lease assets	865	575
Restricted cash	7,654	—
Total assets	208,010	197,944
Current liabilities:
Accounts payable	23,398	21,517
Amount due to group companies	71,925	93,740
Bank borrowings	7,024	6,906
Contract liabilities	37,781	34,723
Income tax payable	3,342	4,739
Accrued liabilities and other payables	43,446	42,035
Lease liabilities, current portion	283	276
Total current liabilities	187,199	203,936
Non-current liabilities:
Contract liabilities	876	846
Deferred tax liabilities	687	513
Amount due to group companies	97,617	68,902
Bank borrowings	24,750	15,539
Lease liabilities	299	229
Total liabilities	311,428	289,965


	Years ended December 31,
(In thousands)	2021	2022	2023
Third-party revenues	228,736	301,853	330,860
Third-party costs of revenues	(109,722)	(171,116)	(177,060)
Inter-company operating expenses	(8,032)	(4,863)	(12,896)
Third-party operating expenses	(110,367)	(115,578)	(139,613)
Net income attributable to Xunlei Limited	2,913	11,136	6,995


	Years ended December 31,
(In thousands)	2021	2022	2023
Purchases of goods and services from group companies	—	(29,738)	—
Sales of goods and services to group companies	—	—	217
Other operating activities with external parties	24,945	54,684	27,634
Net cash generated from operating activities	24,945	24,946	27,851
Other investing activities with external parties	(19,417)	(8,801)	(21,985)
Net cash used in investing activities	(19,417)	(8,801)	(21,985)
Loans from group companies	23,527	25,580	437
Repayment of loans to group companies	(24,425)	(10,830)	(19,285)
Other financing activities with external parties	(223)	13,388	(8,837)
Net cash (used in)/generated from financing activities	(1,121)	28,138	(27,685)
	4,407	44,283	(21,819)

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

Additional information: condensed financial statements of the Company

Additional information: condensed financial statements of the Company

12 Months Ended

Dec. 31, 2023

Additional information: condensed financial statements of the Company

27. Additional information: condensed financial statements of the Company

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

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

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

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

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

The Company did not have significant other commitments, long-term obligations, or guarantees as of December 31, 2023.

Condensed Balance Sheets


(In thousands)	December 31, 2022	December 31, 2023
Assets
Current assets:
Cash and cash equivalents	32,004	31,919
Short-term investments	29,342	28,382
Due from group companies	5,808	6,583
Prepayments and other current assets	927	1,720
Total current assets	68,081	68,604
Non-current assets:
Due from group companies	200,471	199,864
Investments in subsidiaries and consolidated VIEs	49,888	68,086
Total assets	318,440	336,554
Liabilities
Current liabilities:
Accounts payable	55	—
Due to group companies	5,028	8,150
Due to related parties	1,560	—
Income tax payable	10	72
Accrued liabilities and other payables	1,894	3,470
Total current liabilities	8,547	11,692
Total liabilities	8,547	11,692
Commitments and contingencies
Shareholders’ equity
Common shares	81	81
Treasury shares	12	12
Other shareholders’ equity	309,800	324,769
Total Xunlei Limited’s shareholders’ equity	309,893	324,862
Total liabilities and shareholders’ equity	318,440	336,554

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

Condensed Statements of Operations


	Years ended December 31,
(In thousands)	2021	2022	2023
Operating expenses
General and administrative expenses	(3,302)	(6,436)	(7,931)
Total operating expenses	(3,302)	(6,436)	(7,931)
Operating loss	(3,302)	(6,436)	(7,931)
Interest income	107	360	1,512
Interest expense	(95)	(93)	(93)
Other income, net	585	368	3,928
Income from subsidiaries and consolidated VIEs	3,935	27,300	16,948
Income before income tax	1,230	21,499	14,364
Income tax expenses	(39)	(36)	(139)
Net income	1,191	21,463	14,225
Net income attributable to Xunlei Limited’s common shareholders	1,191	21,463	14,225

Condensed Statements of Cash Flows


	Years ended December 31,
(In thousands)	2021	2022	2023
Other operating activities with external parties	(5,732)	(948)	(391)
Net cash used in operating activities	(5,732)	(948)	(391)
Loans to group companies	(26,391)	(3,450)	(188)
Other investing activities with external parties	6,553	11,134	2,031
Net cash (used in)/generated from investing activities	(19,838)	7,684	1,843
Loans from group companies	—	—	3,150
Other financing activities with external parties	—	(6,747)	(4,687)
Net cash used in financing activities	—	(6,747)	(1,537)
Net decrease in cash and cash equivalents	(25,570)	(11)	(85)
Cash and cash equivalents at beginning of year	57,585	32,015	32,004
Effect of exchange rates on cash and cash equivalents	—	—	—
Cash and cash equivalents at end of year	32,015	32,004	31,919

Share-based compensation - 2020 Plan (Details) - USD ($)	1 Months Ended					12 Months Ended
	Aug. 31, 2023	Jul. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2020	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2023
Share-based compensation
Number of shares available for grant									46,561,200
Number of shares repurchased under repurchase programs					9,667,230
Existing Plans
Share-based compensation
Common shares reserved for future issuance					21,039,742
Number of restricted share vested						320,000	330,000	426,000
Number of restricted share forfeited						0	0	210,000
Number of restricted share unvested						0
2020 Incentive Plan [Member]
Share-based compensation
Number of shares available for grant					31,000,000	4,155,445	2,202,325
Common shares reserved for future issuance					293,028
Restricted shares expected to vest						500
Future forfeitures rate						25.00%
Unrecognized compensation costs on restricted shares						$ 5,161,700	$ 10,161,200
2020 Incentive Plan [Member] \| Restricted shares [Member]
Share-based compensation
Number of restricted share vested						11,195,165	9,509,660	2,429,965
Number of restricted share forfeited						491,670	1,716,665	2,777,500
Number of restricted share unvested				25,884,375		17,656,965	16,858,050	25,884,375
2020 Incentive Plan [Member] \| Tranche One [Member] \| Restricted Shares With 2 Years Vesting Period [Member]
Share-based compensation
Restricted shares expected to vest						15,059,340
2020 Incentive Plan [Member] \| Tranche Two [Member] \| Restricted Shares With 2 Years Vesting Period [Member]
Share-based compensation
Vesting period						2 years
2020 Incentive Plan [Member] \| Tranche Two [Member] \| Restricted Shares With 3 Years Vesting Period [Member]
Share-based compensation
Restricted shares expected to vest						90,000
Number of restricted share vested				30,000
2020 Incentive Plan [Member] \| Tranche Three [Member] \| Restricted Shares With 3 Years Vesting Period [Member]
Share-based compensation
Vesting period						3 years
2020 Incentive Plan [Member] \| Tranche Three [Member] \| Restricted Shares With 3 Years Vesting Period And Vesting On Second and Third Anniversary [Member]
Share-based compensation
Restricted shares expected to vest						25,141,915
Vesting period						3 years
Number of restricted share vested	333,330	133,335	1,699,990
2020 Incentive Plan [Member] \| Tranche Four [Member] \| Restricted Shares With 5 Years Vesting Period [Member]
Share-based compensation
Restricted shares expected to vest						500,000
Vesting period						5 years
Number of restricted share vested				100,000
2020 Incentive Plan [Member] \| Minimum
Share-based compensation
Number of shares available for grant									31,000,000

Certain risks and concentration - Additional Information (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) customer	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Certain risks and concentration
Maximum foreign ownership in internet information provider or other value-added telecommunication service provider's business allowed under PRC laws and regulations	50.00%
Revenues	$ 363,722,000	$ 341,497,000	$ 238,782,000
Number of top customers accounted for net revenues \| customer	10
Restricted net assets	$ 173,226,000
Percentage of restricted net assets	53.00%
Shenzhen Xunlei
Certain risks and concentration
Term of operating contract	10 years
Net revenues \| Concentration of customer risk \| Top 10 customers
Certain risks and concentration
Percentage of net revenues accounted from customers	31.00%	33.00%	35.00%
Net revenues \| Concentration of customer risk \| Customer A
Certain risks and concentration
Percentage of net revenues accounted from customers	15.00%	14.00%	13.00%
Revenues	$ 53,900,000	$ 49,400,000	$ 31,400,000

Additional information: condensed financial statements of the Company - Schedule of Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 170,802	$ 177,154	$ 123,358	$ 137,248
Short-term investments	101,078	83,626
Due from related parties (Allowance for current expected credit losses of USD639 and USD388 as of December 31, 2022 and 2023, respectively)	12,644	32,917
Prepayments and other current assets	9,423	8,267
Total current assets	327,376	332,184
Non-current assets:
Due from a related party (Allowance for current expected credit losses of nil and USD381 as of December 31, 2022 and 2023, respectively)	19,619
Total assets	468,686	463,323
Current liabilities:
Accounts payable	24,430	25,432
Due to related parties	0	1,560
Income tax payable	6,391	5,586
Total current liabilities	128,086	128,290
Total liabilities	145,213	154,902
Commitments and contingencies
Shareholders' equity
Common shares	81	81
Treasury shares	12	12
Total Xunlei Limited's shareholders' equity	324,862	309,893
Total liabilities and shareholders' equity	468,686	463,323
Xunlei Limited
Current assets:
Cash and cash equivalents	31,919	32,004	$ 32,015	$ 57,585
Short-term investments	28,382	29,342
Due from related parties (Allowance for current expected credit losses of USD639 and USD388 as of December 31, 2022 and 2023, respectively)	6,583	5,808
Prepayments and other current assets	1,720	927
Total current assets	68,604	68,081
Non-current assets:
Due from a related party (Allowance for current expected credit losses of nil and USD381 as of December 31, 2022 and 2023, respectively)	199,864	200,471
Investments in subsidiaries and consolidated VIEs	68,086	49,888
Total assets	336,554	318,440
Current liabilities:
Accounts payable		55
Due to group companies	8,150	5,028
Due to related parties		1,560
Income tax payable	72	10
Accrued liabilities and other payables	3,470	1,894
Total current liabilities	11,692	8,547
Total liabilities	11,692	8,547
Commitments and contingencies
Shareholders' equity
Common shares	81	81
Treasury shares	12	12
Other shareholders' equity	324,769	309,800
Total Xunlei Limited's shareholders' equity	324,862	309,893
Total liabilities and shareholders' equity	$ 336,554	$ 318,440

Commitments and contingencies

12 Months Ended

Dec. 31, 2023

Commitments and contingencies

25. Commitments and contingencies

Bandwidth purchase commitments

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

As of December 31, 2023, future minimum payments under non-cancellable bandwidth contracts consist of the following:


(In thousands)		December 31, 2023
2024		195

Capital commitments

As of December 31, 2023, the Group has unconditional purchase obligations for office building and office equipment that had not been recognized as follows:


(In thousands)		December 31, 2023
2024		7,851
2025 and after		59
		7,910

Litigations

The Group is involved in a number of cases pending in various courts. These cases are substantially related to alleged copyright infringement as well as routine and incidental matters to its business, among others. Adverse results in these lawsuits may include awards of damages and may also result in, or even compel, a change in the Group’s business practices, which could impact the Group’s future financial results. The Group had incurred USD997,000, USD188,000 and USD935,000 legal and litigation related expenses for the years ended December 31, 2021, 2022 and 2023, respectively.

Up to April 23, 2024, which is the date when the consolidated financial statements were issued, the Group had 14 lawsuits pending against the Group, relating to the alleged copyright infringement and claims for other damages, with an aggregate claimed amount of approximately RMB20.1 million (USD2.9 million) which occurred before December 31, 2023 (2022: USD0.8 million). The Group had accrued for USD1,168,000 litigation related expenses in “Accrued liabilities and other payables” in the consolidated balance sheet as of December 31, 2023 (2022: USD634,000), which is the most probable and reasonably estimable outcome.

The Group estimated the litigation compensation based on judgments handed down by the court, out-of-court settlements of similar cases as well as advices from the Group’s legal counsels. The Group is in the process of appealing certain judgments for which the losses had been accrued. Although the results of unsettled litigation and claims cannot be predicted with certainty, the Group does not expect that the outcome of the 14 lawsuits will result in the amounts accrued materially different from the range of reasonably possible losses. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of recorded accrual, with respect to loss contingencies for asserted legal and other claims. However, the outcome of litigation is inherently uncertain. If one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be materially adversely affected.

Certain risks and concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Cash Flow (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Certain risks and concentration
Net (decrease)/increase in cash, cash equivalents and restricted cash	$ (11,706)	$ 69,508	$ (13,362)
VIEs
Certain risks and concentration
Purchases of goods and services from group companies		(29,738)
Sales of goods and services to group companies	217
Other operating activities with external parties	27,634	54,684	24,945
Net cash (used in)/generated from operating activities	(27,851)	(24,946)	(24,945)
Other investing activities with external parties	(21,985)	(8,801)	(19,417)
Net cash used in investing activities	(21,985)	(8,801)	(19,417)
Loans from group companies	437	25,580	23,527
Repayment of loans to group companies	(19,285)	(10,830)	(24,425)
Other financing activities with external parties	8,837	(13,388)	223
Net cash generated from/(used in) financing activities	(27,685)	28,138	(1,121)
Net (decrease)/increase in cash, cash equivalents and restricted cash	$ (21,819)	$ 44,283	$ 4,407

Accounts receivable, net (Tables)

12 Months Ended

Dec. 31, 2023

Accounts receivable, net

Schedule of accounts receivable


(In thousands)	December 31, 2022	December 31, 2023
Accounts receivable	31,192	32,232
Less: Allowance for current expected credit losses	(1,429)	(1,022)
Accounts receivable, net	29,763	31,210

Schedule of allowance for current expected credit loss


(In thousands)	December 31, 2021	December 31, 2022	December 31, 2023
Balance at beginning of the year	9,329	1,764	1,429
Additions	72	—	213
Reversals	(481)	(188)	(189)
Write-off	(7,375)	(2)	(408)
Exchange difference	219	(145)	(23)
Balance at end of the year	1,764	1,429	1,022

Schedule of summarizes customers with balances of accounts receivable


	December 31, 2022		December 31, 2023
Customer A	39	%	30	%
Customer B	12	%	*
Customer C	17	%	18	%

*Less than 10%.

Intangible assets, net

12 Months Ended

Dec. 31, 2023

Intangible assets, net

Intangible assets, net

11. Intangible assets, net


	December 31,
	2022			2023
			Net book			Net book
(In thousands)	Cost	Amortization	value	Cost	Amortization	value
Land use rights	4,777	(1,498)	3,279	4,697	(1,629)	3,068
Audio - visual license	5,631	(2,884)	2,747	5,537	(3,484)	2,053
Acquired computer software	3,264	(2,744)	520	3,565	(2,989)	576
Total	13,672	(7,126)	6,546	13,799	(8,102)	5,697

Amortization expense recognized for the years ended December 31, 2021, 2022 and 2023 are summarized as follows:


	Years ended December 31
(In thousands)	2021	2022	2023
Cost of revenues	10	54	53
Research and development expenses	6	—	—
General and administrative expenses	1,113	1,032	1,048
Total	1,129	1,086	1,101

The estimated aggregate amortization expense for each of the next five years as of December 31, 2023 is:


(In thousands)		Intangible assets
2024		1,016
2025		925
2026		913
2027		366
2028 and thereafter		2,477

The weighted average amortization periods of intangible assets as of December 31, 2022 and 2023 are as below:


(In year)	December 31, 2022	December 31, 2023
Land use rights	30	30
Audio-visual license	9	9
Acquired computer software	5	5
Total weighted average amortization periods	10	10

Summary of significant accounting policies - Intangible assets (Details)	Dec. 31, 2023
Land use rights
Intangible assets, net
Estimated useful lives	30 years
Audio - visual license
Intangible assets, net
Estimated useful lives	9 years
Acquired computer software
Intangible assets, net
Estimated useful lives	5 years

Prepayments and other assets - Additional information (Details) - Employees	12 Months Ended
	Dec. 31, 2023
Minimum
Term of interest-free loans to employees	5 years
Maximum
Term of interest-free loans to employees	10 years

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Net revenues
Total revenues, net of rebates and discounts (including transactions with related parties of USD18,284, USD15,991 and USD17,270 for the years ended December 31, 2021, 2022 and 2023, respectively)	$ 364,911	$ 342,564	$ 239,601
Business taxes and surcharges	(1,189)	(1,067)	(819)
Net revenues	363,722	341,497	238,782
Costs of revenues (including transactions with related parties of USD730, USD87 and USD39 for the years ended December 31, 2021, 2022 and 2023, respectively)	(200,649)	(200,054)	(118,603)
Gross profit	163,073	141,443	120,179
Operating expenses
Research and development expenses	(74,201)	(67,680)	(61,859)
Sales and marketing expenses	(43,509)	(24,841)	(24,569)
General and administrative expenses	(46,875)	(39,701)	(36,868)
Credit loss (expenses)/write-back, net	(100)	844	(1,206)
Total operating expenses	(164,685)	(131,378)	(124,502)
Operating (loss)/income	(1,612)	10,065	(4,323)
Interest income	4,619	1,898	723
Interest expense	(1,514)	(93)	(95)
Other income, net	16,904	13,545	4,678
Income before income tax	18,397	25,415	983
Income tax benefits/(expenses)	(4,131)	(4,068)	125
Net income for the year	14,266	21,347	1,108
Less: net (loss)/income attributable to the non-controlling interests	41	(116)	(83)
Net income attributable to Xunlei Limited	14,225	21,463	1,191
Net income for the year	14,266	21,347	1,108
Other comprehensive income/(loss): Currency translation adjustments, net of tax	(4,203)	(16,427)	4,116
Comprehensive income	10,063	4,920	5,224
Less: comprehensive (loss)/income attributable to non-controlling interests	83	408	(99)
Comprehensive income attributable to Xunlei Limited	$ 9,980	$ 4,512	$ 5,323
Income per share for common shares
Basic (in dollars per share)	$ 0.0436	$ 0.0639	$ 0.0036
Diluted (in dollars per share)	$ 0.0435	$ 0.0638	$ 0.0035
Weighted average number of common shares used in calculating
Basic (in shares)	326,390,687	336,040,378	334,707,559
Diluted (in shares)	326,849,502	336,235,501	335,969,780

Taxation - Schedule of Movement of Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Taxation
Beginning balance	$ 47,223	$ 45,580	$ 40,924
Additions	(7,406)	(5,931)	(3,507)
Exchange difference	2,525	3,066	(1,149)
Reversals	(236)	(1,222)
Ending balance	$ 51,868	$ 47,223	$ 45,580

Share-based compensation - Summary of Restricted Shares Activities (Details) - 2020 Incentive Plan [Member] - Restricted shares [Member] - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Number of restricted shares
Unvested at beginning of period	16,858,050	25,884,375
Granted	12,485,750	2,200,000	31,091,840
Vested	(11,195,165)	(9,509,660)	(2,429,965)
Forfeited	(491,670)	(1,716,665)	(2,777,500)
Unvested at end of period	17,656,965	16,858,050	25,884,375
Vested and expected to vest	13,242,724	12,643,538	19,413,281
Weighted-Average Grant-Date Fair Value
Weighted-Average Grant Date Fair Value, Granted	$ 0.36	$ 0.31	$ 0.83

Inventories (Tables)

12 Months Ended

Dec. 31, 2023

Inventories

Schedule of inventories


(In thousands)	December 31, 2022	December 31, 2023
Hardware devices	532	2,049
Others	206	420
Less: Impairment	(281)	(250)
Total	457	2,219

Bank borrowings (Details) - USD ($)	12 Months Ended
Bank borrowings (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Bank borrowings, current portion	$ 6,906,000	$ 7,024,000
Bank borrowings, non-current portion	15,539,000	24,750,000
Total	22,445,000	31,774,000
Net interest expense capitalized		$ 1,593,000	$ 1,000,000
Interest expense, expensed	$ 1,360,000
Minimum \| Loan Prime Rate
Debt Instrument [Line Items]
Spread on variable basis rate	15.00%
Median \| Loan Prime Rate
Debt Instrument [Line Items]
Spread on variable basis rate	30.00%
Maximum \| Loan Prime Rate
Debt Instrument [Line Items]
Spread on variable basis rate	98.50%

Costs of revenues (Tables)

12 Months Ended

Dec. 31, 2023

Costs of revenues.

Schedule of costs of revenues


	Years ended December 31,
(In thousands)	2021	2022	2023
Bandwidth costs	80,720	104,580	112,522
Revenue-sharing from live streaming business	26,506	78,636	67,302
Payment handling charges	3,066	6,500	8,494
Cost of inventories sold	1,516	2,228	5,911
Depreciation of servers and other equipment	4,805	1,363	740
Other costs (note)	1,990	6,747	5,680
Total	118,603	200,054	200,649

Note: Other costs mainly included content review costs and technical service costs.

Long-term investments

12 Months Ended

Dec. 31, 2023

Long-term investments

Long-term investments

8. Long-term investments


(In thousands)	December 31, 2022	December 31, 2023
Equity interests without a readily determinable fair value:
Balance at beginning of the year	31,495	30,811
Additions (note a)	—	1,418
Net unrealized gains on investments held	437	—
Impairment on long-term investments	(590)	—
Exchange difference	(531)	(95)
Balance at end of the year	30,811	32,134

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


	Percentage of ownership of
	shares as of December 31,
Investee	2022		2023
Equity method investment:
Shenzhen Mojingou Information Services Co., Ltd.	28.77	%	28.77	%
Equity interests without a readily determinable fair value:
Guangzhou Yuechuan Network Technology Co., Ltd. (“Guangzhou Yuechuan”) (note b)	9.30	%	—
Chengdu Diting Technology Co., Ltd.	12.74	%	12.74	%
Shanghai Guozhi Electronic Technology Co., Ltd.	16.80	%	16.80	%
Guangzhou Hongsi Network Technology Co., Ltd.	19.90	%	19.90	%
Xiamen Diensi Network Technology Co., Ltd.	14.25	%	14.25	%
11.2 Capital I, L.P.	2.03	%	2.03	%
Cloudtropy	9.69	%	9.69	%
Lexiang Technology Co., Ltd. (formerly named as “Shanghai Lexiang Technology Co., Ltd.”, “Lexiang”) (note c)	6.49	%	5.81	%
Hangzhou Feixiang Data Technology Co., Ltd.	28.00	%	28.00	%
Shenzhen Meizhi Interactive Technology Co., Ltd. (“Meizhi Interactive”) (note d)	9.40	%	—
Beijing Yunhui Tianxia Technology Co., Ltd.	13.70	%	13.70	%
Yingshi Innovation Technology Co., Ltd. (formerly named as “Shenzhen Arashi Vision Interative Technology Co., Ltd.”)	8.73	%	8.73	%
Beijing Cloudin Technology Co., Ltd.	4.12	%	4.12	%
Quanxun Huiju Networking Technology (Beijing) Co., Ltd. (“Quanxun Huiju”)	5.40	%	5.40	%
Blue Bayread Limited	1.63	%	1.63	%
Clapper Media Group Inc.	9.58	%	9.58	%
Beijing Yunshang Hemei Culture Media Co., Ltd.	10.00	%	10.00	%
Beijing Xiaosheng Xiaoyi Technology Co., Ltd. (“Xiaosheng Xiaoyi”) (note a)	—		20.00	%

Notes :

(a)	In September 2023, the Group made an equity investment of USD1,412,000 (equivalent to RMB10,000,000) to acquire 20.00% equity interest of Xiaosheng Xiaoyi, which is a privately held company.

(b)	In October 2023, the Group disposed of its equity interest in Guangzhou Yuechuan, for which full impairment had been provided in 2018, at a consideration of RMB 1.

(c)	In March 2023, the Group’s interest in Lexiang was diluted to 5.81%, as additional shares were issued by Lexiang, no changes in the carrying value in Lexiang was made as the related transaction did not provide observable price changes to the Group.

(d)	In May 2023, the Group disposed of its equity interest in Meizhi Interactive, for which full impairment had been provided in 2018, at a consideration of RMB 1.

Certain risks and concentration - Schedule of Consolidated Financial Information of VIEs and VIE's Subsidiaries - Income Statement (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Certain risks and concentration
Revenues	$ 363,722	$ 341,497	$ 238,782
Cost of revenues	(200,649)	(200,054)	(118,603)
Operating expenses	(164,685)	(131,378)	(124,502)
Net income attributable to Xunlei Limited	14,225	21,463	1,191
VIEs
Certain risks and concentration
Net income attributable to Xunlei Limited	6,995	11,136	2,913
VIEs \| Third-party
Certain risks and concentration
Revenues	330,860	301,853	228,736
Cost of revenues	(177,060)	(171,116)	(109,722)
Operating expenses	(139,613)	(115,578)	(110,367)
VIEs \| Inter-company
Certain risks and concentration
Operating expenses	$ (12,896)	$ (4,863)	$ (8,032)

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

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

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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
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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).

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

Summary of significant accounting policies

Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of property and equipment estimated useful life


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

Schedule of estimated useful lives of the intangible assets


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

Schedule of analysis of different types of revenues


Revenue from operations	Years ended December 31,
(In thousands)	2021	2022	2023
Subscription revenue	91,174	100,557	119,343
Live streaming revenue and other internet value-added services (note a)and	53,614	122,372	122,157
Cloud computing services and product revenue (note b)	94,813	119,635	123,411
Total revenues	239,601	342,564	364,911

Notes:

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

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

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

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net income for the year	$ 14,266,000	$ 21,347,000	$ 1,108,000
Adjustments to reconcile net income to net cash generated from operating activities
Depreciation of property and equipment	4,427,000	2,666,000	6,319,000
Amortization of intangible assets	1,101,000	1,086,000	1,129,000
Amortization of operating lease assets	551,000	56,000	1,934,000
Credit loss expenses/(write-back), net and impairment on prepayments	100,000	(844,000)	1,213,000
Loss on disposal of property and equipment	1,000	2,000	31,000
Gain on modification of operating lease	(33,000)
Share - based compensation	9,676,000	8,184,000	6,170,000
Net unrealized investment income from short-term investments	(1,390,000)	(367,000)	(404,000)
Impairment of property and equipment	1,146,000	0	0
Impairment of inventories	0	15,000	429,000
Impairment on long-term investments	0	590,000	0
Net unrealized gains on long-term investments		(437,000)
Investment income on disposal of long-term investments	(24,000)		(42,000)
Interest expense accrued on long-term payables	93,000	93,000	95,000
Deferred income taxes	(428,000)	(382,000)	(178,000)
Deferred government grants		(162,000)	(169,000)
Changes in operating assets and liabilities:
Accounts receivable	(1,997,000)	(5,979,000)	(2,168,000)
Prepayments and other assets	(408,000)	4,111,000	(2,319,000)
Due from/to related parties	(1,665,000)	1,099,000	(8,507,000)
Accounts payable	(598,000)	1,064,000	5,238,000
Inventories	(1,804,000)	851,000	(36,000)
Contract liabilities	(1,954,000)	5,739,000	2,112,000
Income tax payable	904,000	3,434,000	(77,000)
Accrued liabilities and other payables	3,134,000	8,621,000	9,605,000
Lease liabilities	618,000	322,000	(2,003,000)
Net cash generated from operating activities	25,716,000	51,109,000	19,480,000
Cash flows from investing activities
Purchase of short-term investments	(378,162,000)	(517,411,000)	(337,738,000)
Proceeds from collection upon maturities of short-term investments	360,735,000	545,073,000	341,960,000
Purchase of property and equipment (including construction in progress)	(3,992,000)	(14,969,000)	(13,202,000)
Purchase of intangible assets	(499,000)	(8,000)	(84,000)
Purchase of long-term investments	(1,418,000)	(1,000,000)	(3,627,000)
Proceeds from disposal of property and equipment	15,000	6,000	207,000
Proceeds from disposal of long-term investments	22,000		42,000
(Payment)/repayment of loans to employees	(599,000)	67,000	(177,000)
Loan to a related party			(20,000,000)
Net cash (used in)/generated from investing activities	(23,898,000)	11,758,000	(32,619,000)
Cash flows from financing activities
Repurchase of common shares	(4,687,000)	(6,747,000)
Proceeds from bank borrowings	4,254,000	16,656,000	2,196,000
Repayment of bank borrowings	(13,091,000)	(3,344,000)	(2,419,000)
Capital injection from a non-controlling interest shareholder		76,000
Net cash (used in)/generated from financing activities	(13,524,000)	6,641,000	(223,000)
Net (decrease)/increase in cash, cash equivalents and restricted cash	(11,706,000)	69,508,000	(13,362,000)
Effect of exchange rates on cash and cash equivalents, and restricted cash	(2,300,000)	(12,136,000)	2,009,000
Cash and cash equivalents at beginning of the year	177,154,000	123,358,000	137,248,000
Restricted cash at beginning of the year	7,654,000	4,078,000	1,541,000
Cash, cash equivalents and restricted cash at beginning of the year	184,808,000	127,436,000	138,789,000
Cash and cash equivalents at end of the year	170,802,000	177,154,000	123,358,000
Restricted cash at end of year		7,654,000	4,078,000
Cash, cash equivalents and restricted cash at end of the year	170,802,000	184,808,000	127,436,000
Supplemental disclosure of cash flow information
Income tax paid	2,532,000	1,178,000	66,000
Interest paid	1,376,000
Non-cash investing and financing activities
Purchase of property and equipment in form of other payables	148,000	593,000	568,000
Addition of operating lease assets and lease liabilities, net off impact from lease modification	$ 275,000	$ 555,000	$ 10,000

Goodwill (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill.

Schedule of goodwill


	December 31,	December 31,
(In thousands)	2022	2023
Beginning balance	23,136	21,179
Foreign currency translation adjustment	(1,957)	(353)
Accumulated impairment	—	—
Ending balance	21,179	20,826

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

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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Related party transactions

Bank borrowings

12 Months Ended

Dec. 31, 2023

Bank borrowings

Bank borrowings

15. Bank borrowings


	December 31,	December 31,
(In thousands)	2022	2023
Bank borrowings, current portion	7,024	6,906
Bank borrowings, non-current portion	24,750	15,539
Total	31,774	22,445

The bank borrowings were borrowed by Shenzhen Xunlei for the construction of Xunlei Tower, which was pledged by the land use rights and Xunlei Tower. The interest expense of USD1,000,000 and USD1,593,000 has been capitalized for the years ended December 31, 2021 and 2022, the interest expense of USD1,360,000 has been expensed for the year ended December 31, 2023, respectively. The capitalized interest amount included in the carrying amount of Xunlei Tower is depreciated according to the Group’s accounting policies as stated in note 2(j).

The bank borrowings are denominated in RMB, and the interest rates are calculated based on the Loan Prime Rate plus 15 , 30 or 98.5 basis points.

As of December 31, 2023, the bank borrowings will be due according to the following schedule:


(In thousands)		Principal amounts
Within 1 year		6,906
Between 1 to 2 years		6,906
Between 2 to 3 years		6,906
Between 3 to 4 years		1,727

Fair value measurements - Schedule of financial instruments measured at fair value (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair value measurements
Investments in structured deposits and wealth management products	$ 49,902	$ 32,582
Level 2
Fair value measurements
Investments in structured deposits and wealth management products	$ 49,902	$ 32,582

Related party transactions

12 Months Ended

Dec. 31, 2023

Related party transactions

23. Related party transactions

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

Related party		Relationship with the Group
Aiden & Jasmine Limited		Shareholder of the Company
Millet Technology Co., Ltd. (“Xiaomi Technology”)		(note)
Guangzhou Millet Information Service Co., Ltd. (“Guangzhou Millet”)		(note)
Shenzhen Xiaomi Technology Co., Ltd. (“Shenzhen Xiaomi”)		(note)
Beijing Xiaobu Technology Co., Ltd. (“Beijing Xiaobu”)		Company owned by the principal shareholder of the Company
Sungai Pte. Ltd. (“Sungai”)		Company owned by the principal shareholder of the Company
Beijing Itui Technology Co., Ltd. (“Beijing Itui”)		Company owned by the principal shareholder of the Company
Itui Online		Company owned by the principal shareholder of the Company
Chizz (HK) Limited (“Chizz”)		Company owned by the principal shareholder of the Company

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

23. Related party transactions (Continued)

During the years ended December 31, 2021, 2022 and 2023, significant related party transactions were as follows:


	Years ended December 31,
(In thousands)	2021	2022	2023
Revenue from cloud computing services
Xiaomi Technology	2,798	4,978	7,604
Beijing Itui	821	592	358
Revenue from advertising
Itui Online	11,648	7,804	8,941
Shenzhen Xiaomi	380	112	13
Revenue from technical services
Guangzhou Millet	1,245	—	—
Shenzhen Xiaomi	1,392	2,505	354
Bandwidth costs
Quanxun Huiju	730	—	—
Interest income
Chizz	176	626	724

As of December 31, 2022 and 2023, the amounts due from/to related parties were as follows:


(In thousands)	December 31, 2022	December 31, 2023
Amounts due from related parties - current
Accounts receivable
Itui Online	7,910	9,061
Shenzhen Xiaomi	1,378	705
Xiaomi Technology	1,871	1,831
Beijing Xiaobu	1,419	394
Beijing Itui	537	333
Sungai.	92	—
Other receivables
Chizz (note)	19,689	300
Other related parties (individual balance was less than USD10)	21	20
Total	32,917	12,644
Amounts due from a related party - non-current
Other receivables
Chizz (note)	—	19,619
Total	—	19,619

Note: In September 2021, Xunlei Network provided a loan amounted to USD20 million to Chizz at an interest rate of 3% per annum for a term of 2 years. The loan was extended for another 2 years at an interest rate of 5.10% per annum in September 2023.


(In thousands)	December 31, 2022	December 31, 2023
Amounts due to related parties
Other payables
Aiden & Jasmine Limited	1,560	—
Total	1,560	—

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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Costs of revenues - Schedule of cost of revenues (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Costs of revenues
Total	$ 200,649	$ 200,054	$ 118,603
Bandwidth costs
Costs of revenues
Total	112,522	104,580	80,720
Revenue-sharing from live streaming business
Costs of revenues
Total	67,302	78,636	26,506
Payment handling charges
Costs of revenues
Total	8,494	6,500	3,066
Cost of inventories sold
Costs of revenues
Total	5,911	2,228	1,516
Depreciation of servers and other equipment
Costs of revenues
Total	740	1,363	4,805
Other costs
Costs of revenues
Total	$ 5,680	$ 6,747	$ 1,990

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

Short-term investments - Schedule of Short-Term Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Short-term investments
Short-term investments	$ 101,078	$ 83,626
Time deposits
Short-term investments
Short-term investments	51,176	51,044
Investments in financial instruments
Short-term investments
Short-term investments	$ 49,902	$ 32,582

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Summary of significant accounting policies

Property and equipment, net - Depreciation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property and equipment, net
Total	$ 4,427	$ 2,666	$ 6,319
Costs of revenues
Property and equipment, net
Total	740	1,362	4,805
Research and development expenses
Property and equipment, net
Total	390	467	436
Sales and marketing expenses
Property and equipment, net
Total	7	9	10
General and administrative expenses
Property and equipment, net
Total	$ 3,290	$ 828	$ 1,068

Contract liabilities

12 Months Ended

Dec. 31, 2023

Contract liabilities

Contract liabilities

13. Contract liabilities


(In thousands)	December 31, 2022	December 31, 2023
Contract liabilities (note a)
Membership subscription	37,721	35,969
Live streaming	969	830
Others	1,153	422
Total	39,843	37,221
Less: non-current portion (note b)	(876)	(846)
Contract liabilities, current portion	38,967	36,375

Notes:

(a)

Contract liabilities were related to unsatisfied performance obligations at the end of the year. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following period. The amount of revenue recognized that was included in contract liabilities balance at the beginning of the year was USD35,380,000 and USD38,016,000 for the years ended December 31, 2022 and 2023, respectively.

(b)	As of December 31, 2022 and 2023, the non-current portion consists of membership subscription of USD876,000 and USD846,000, respectively.

Related party transactions - Schedule of Amount Due to from Related Party (Detail) - USD ($) $ in Thousands	1 Months Ended
	Sep. 30, 2023	Sep. 30, 2021	Dec. 31, 2023	Dec. 31, 2022
Amounts due from related parties - current
Amounts due from related parties - current			$ 12,644	$ 32,917
Amounts due from a related party - non-current
Amounts due from related parties - non-current			19,619
Due to related parties			0	1,560
Itui Online
Amounts due from related parties - current
Amounts due from related parties - current			9,061	7,910
Shenzhen Xiaomi
Amounts due from related parties - current
Amounts due from related parties - current			705	1,378
Xiaomi Technology
Amounts due from related parties - current
Amounts due from related parties - current			1,831	1,871
Beijing Xiaobu
Amounts due from related parties - current
Amounts due from related parties - current			394	1,419
Beijing Itui Technology Co., Ltd.
Amounts due from related parties - current
Amounts due from related parties - current			333	537
Sungai
Amounts due from related parties - current
Amounts due from related parties - current				92
Chizz
Relationship between related parties with their groups
Face value		$ 20,000
Interest rate	5.10%	3.00%
Due to term		2 years
Extended term	2 years
Amounts due from related parties - current
Amounts due from related parties - current			300	19,689
Amounts due from a related party - non-current
Amounts due from related parties - non-current			19,619
Other related parties
Amounts due from related parties - current
Amounts due from related parties - current			20	21
Aiden & Jasmine Limited
Amounts due from a related party - non-current
Due to related parties			$ 0	$ 1,560

Summary of significant accounting policies

12 Months Ended

Dec. 31, 2023

Summary of significant accounting policies

2. Summary of significant accounting policies

(a) Basis of presentation and use of estimates

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

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

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

(b) Consolidation

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

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

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

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

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

2. Summary of significant accounting policies (Continued)

(b) Consolidation (Continued)

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

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

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

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

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

2. Summary of significant accounting policies (Continued)

(e) Cash and cash equivalents and restricted cash

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

Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is included in the total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. The Group’s restricted cash represented the cash balance on deposit as required by the court for ongoing litigations as of December 31, 2022.

(f) Short-term investments

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

(g) Allowance for expected credit losses

The current expected credit losses methodology requires that the full amount of expected credit losses for the lifetime of the financial instrument be recorded at the time it is originated or acquired, considering relevant historical experience, current conditions and reasonable and supportable macroeconomic forecasts that affect the collectability of financial assets, and adjusted for changes in expected lifetime credit losses subsequently, which may require earlier recognition of credit losses. The Group’s accounts receivable, due from related parties and other current assets (including other receivables) and other non-current assets (including other long-term receivables) are within the scope of ASC Topic 326.

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

(h) Inventories

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

2. Summary of significant accounting policies (Continued)

(i) Long-term investments

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

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

During the years ended December 31, 2021, 2022 and 2023, the Group recognized an impairment of nil, USD590,000 and nil, respectively.

(j) Property and equipment

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


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

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

2. Summary of significant accounting policies (Continued)

(k) Goodwill

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

The Group performs the quantitative impairment test by comparing the fair value of each reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired. If the carrying amount of a reporting unit exceeds its fair value, the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized as impairment.

The Group’s goodwill was attributable to the Company as a whole. The Group applies the quantitative assessment for the impairment test of goodwill as of December 31, 2022 and 2023. The impairment test for goodwill determines the fair value of the reporting unit, the Company as a whole, and compares it to the carrying value of the assets and liabilities, including goodwill, of the reporting unit. The fair value of the Company was estimated by management using the discounted cash flow model derived from the long-term (five-year) cash flow projections, which included significant judgements and assumptions relating to revenue forecast and operating margins, discount rate that reflects market assessments of the time value and the specific risks relating to the Company, and cash flows beyond the five-year period are extrapolated using a terminal growth rate.

No goodwill impairment losses were recognized for the years ended December 31, 2021, 2022 and 2023 based on the impairment test performed by the Group.

(l) Intangible assets

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


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

Land use rights represent lease prepayments to the local government authorities, which were identified as operating lease assets.

(m) Impairment of long-lived assets

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

2. Summary of significant accounting policies (Continued)

(n) Commitments and contingencies

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

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

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

(o) Operating leases

Lessees are required to recognize an operating lease asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet under ASC Topic 842.

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

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

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

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

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

(p) Revenue recognition

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

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

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

2. Summary of significant accounting policies (Continued)

(p) Revenue recognition (Continued)

(I) Subscription revenues

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

(II) Live streaming revenues

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

(III) Cloud computing revenues

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

2. Summary of significant accounting policies (Continued)

(p) Revenue recognition (Continued)

(IV) Other internet value-added services revenues

(i) Advertising revenues

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

(ii) Online games revenues

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

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

(q) Sales and marketing expenses

Sales and marketing expenses comprise primarily salaries and benefits of sales and marketing personnel and external advertising and market promotion expenses. The external advertising and market promotion expenses from operations amounted to approximately USD15,052,000, USD12,551,000 and USD29,140,000 for the years ended December 31, 2021, 2022 and 2023, respectively.

(r) General and administrative expenses

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

2. Summary of significant accounting policies (Continued)

(s) Research and development costs

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

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

(t) Taxation and uncertain tax positions

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements’ carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the difference is expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred tax assets if it is considered more likely than not that some portion, or all, of the deferred tax assets will not be realized. The estimation of future taxable income involves significant judgement and estimates. Based on management’s estimated future taxable income, management concluded that it is more likely than not that the net operating losses carried forward cannot be utilized prior to their respective expiration dates. The Group applied the ASC 740 “Income Taxes” regarding uncertain tax positions and evaluated its open tax positions that exist in each jurisdiction for each reporting period. If an uncertain tax position is taken or expected to be taken in a tax return, the tax benefit from that uncertain position is recognized in the Group’s consolidated financial statements if it is more likely than not that the position is sustainable upon examination by the relevant taxing authority. The Group did not have any significant uncertain tax position and there was no effect on its financial condition or results of operations as a result of applying the ASC 740 “Income Taxes”. 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 and other internet value-added services are subject to VAT at a rate of 6%.

According to the policy of the PRC State Tax Bureau, enterprises that engage in postal services, telecommunication services and consumer services are entitled to claim 110%, 110% and 105% of the input tax incurred as tax credit in determining VAT payable for the years ended December 31, 2021, 2022 and 2023.

2. Summary of significant accounting policies (Continued)

(u) Employee benefits

Full-time employees of the Company’s subsidiaries, VIE and VIE’s subsidiaries in the PRC participate in a government mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the subsidiaries, VIE and VIE’s subsidiaries of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts from operations for such employee benefits, which are expensed as incurred, were USD12,411,000, USD14,266,000 and USD16,656,000 for the years ended December 31, 2021, 2022 and 2023, respectively.

(v) Share-based compensation

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

(w) Government subsidies

The Group receives subsidies from the local PRC government for general use or purchase of equipment. General-use subsidies which are not subject to any conditions or specific use requirements are recorded as subsidy income in the consolidated statements of comprehensive income. Subsidies for purchase of equipment are recorded as deferred government grant when received, and are recorded as other income over the expected useful life of the assets after the related equipment has been purchased.

(x) Segment reporting

The Group’s Chief Executive Officer has been identified as the chief operating decision maker, who reviews consolidated operating results of the Group when making decisions about allocating resources and assessing performance of the Group as a whole. The Group has internal reporting of revenues, costs and expenses that does not distinguish between segments, and reports costs and expenses by nature as a whole. The Group does not distinguish between markets or segments for the purpose of internal reporting. Management has determined that the Group operates and manages its business as a single segment, the Group’s long - lived assets are substantially located in the PRC, around 95%, 88% and 91% of revenues of the Group were derived from mainland China during the year ended December 31, 2021, 2022 and 2023, respectively.

2. Summary of significant accounting policies (Continued)

(x) Segment reporting (Continued)

An analysis of the different types of total revenues for the years ended December 31, 2021, 2022 and 2023 are summarized as follows:


Revenue from operations	Years ended December 31,
(In thousands)	2021	2022	2023
Subscription revenue	91,174	100,557	119,343
Live streaming revenue and other internet value-added services (note a)and	53,614	122,372	122,157
Cloud computing services and product revenue (note b)	94,813	119,635	123,411
Total revenues	239,601	342,564	364,911

Notes:

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

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

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

(y) Net income per share

Net basic income per share is computed by dividing net income attributable to holders of common shares by the weighted - average number of common shares outstanding during the year.

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

(z) Comprehensive income

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

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, 2021, 2022 and 2023. The Group does not have any present plan to pay any dividends on common shares in the foreseeable future. The Group currently intends to retain the available funds and any future earnings to operate and expand its business.

(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 November 2023, the FASB issued ASU No. 2023 - 07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires incremental disclosures related to a public entity’s reportable segments but does not change the definition of a segment, the method for determining segments, or the criteria for aggregating operating segments into reportable segments. The FASB issued the new guidance primarily to provide financial statement users with more disaggregated expense information about a public entity’s reportable segments. The new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and should be adopted retrospectively unless impracticable. Early adoption is permitted.

In December 2023, the FASB issued ASU No. 2023 - 09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This guidance is effective for periods beginning after December 15, 2024, 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.

Taxation - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
deferred tax liabilities balances
Within one year	$ 162	$ 165
After one year	351	522
Total deferred tax liabilities	$ 513	$ 687

Operating lease assets and lease liabilities - Net book amount (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating lease assets and lease liabilities
Net book amount, Beginning balance	$ 865,000	$ 27,000
Additions	927,000	920,000
Amortization	(551,000)	(56,000)	$ (1,934,000)
Modification	(652,000)
Effect of foreign currency exchange differences	(14,000)	(26,000)
Net book amount, Ending balance	575,000	865,000	27,000
Charge recognized in relation to short-term lease	1,645,000	$ 2,457,000	$ 786,000
Future minimum payments under non-cancellable short-term operating leases	$ 96,000
Discount rate related to operating lease (as a percent)	5.10%	5.40%	5.40%
Weighted average remaining lease term (in years)	2 years	3 years	9 months 18 days
Cash payments in respect of operating lease	$ 2,386,000	$ 2,792,000	$ 2,003,000
Minimum
Right-of-use assets and lease liabilities
Operating lease, term of contract (in years)	1 year
Maximum
Right-of-use assets and lease liabilities
Operating lease, term of contract (in years)	3 years

Commitments and contingencies - Capital commitments (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Commitments and contingencies
2024	$ 7,851
2025 and after	59
Unrecorded unconditional purchase obligation	$ 7,910

Intangible assets, net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Intangible assets, net
Cost	$ 13,799	$ 13,672
Amortization	(8,102)	(7,126)
Net book value	5,697	6,546
Land use rights
Intangible assets, net
Cost	4,697	4,777
Amortization	(1,629)	(1,498)
Net book value	3,068	3,279
Audio - visual license
Intangible assets, net
Cost	5,537	5,631
Amortization	(3,484)	(2,884)
Net book value	2,053	2,747
Acquired computer software
Intangible assets, net
Cost	3,565	3,264
Amortization	(2,989)	(2,744)
Net book value	$ 576	$ 520

Accrued liabilities and other payables (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accrued liabilities and other payables
Payroll and welfare	$ 24,702	$ 23,277
Tax levies	7,879	4,178
Payables related to Xunlei Kankan		2,418
Payables for advertisement	3,473	1,980
Legal and litigation related expenses (note 25)	1,168	634
Professional service fees	1,273	1,656
Agency commissions and rebates from online advertising		2,525
Payables for office building	8,623	8,528
Payables related to share repurchase	2,774	1,120
Others	3,816	3,122
Total	$ 53,708	$ 49,438

Basic and diluted net income per share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Numerator:
Net income	$ 14,266	$ 21,347	$ 1,108
Less: net (loss)/income attributable to the non-controlling interests	41	(116)	(83)
Net (loss)/income attributable to Xunlei Limited's common shareholders for basic net (loss)/income per share calculation	14,225	21,463	1,191
Numerator of basic net (loss)/income per share	$ 14,225	$ 21,463	$ 1,191
Denominator:
Weighted average number of common shares outstanding, basic (in shares)	326,390,687	336,040,378	334,707,559
Dilutive effect of restricted share units	458,815	195,123	1,262,221
Weighted average number of common shares outstanding, diluted (in shares)	326,849,502	336,235,501	335,969,780
Basic net income (in dollars per share)	$ 0.0436	$ 0.0639	$ 0.0036
Diluted net income (in dollars per share)	$ 0.0435	$ 0.0638	$ 0.0035

Property and equipment, net

12 Months Ended

Dec. 31, 2023

Property and equipment, net

Property and equipment, net

9. Property and equipment, net

Property and equipment consist of the following:


(In thousands)	December 31, 2022	December 31, 2023
Office building (note)	47,902	48,323
Servers and network equipment	15,065	15,471
Furniture, fixtures and office equipment	790	2,110
Computer equipment	1,624	1,811
Motor vehicles	449	517
Building decoration and leasehold improvements	8,705	8,725
Total original costs	74,535	76,957
Less: Accumulated depreciation	(12,801)	(15,704)
Less: Accumulated impairment	—	(1,225)
Total	61,734	60,028

Note: The construction of Xunlei Tower was completed in December 2022 and the ownership certificate of Xunlei Tower was obtained in March 2024.

The impairment loss recognized for the years ended December 31, 2021, 2022 and 2023 was nil, nil and USD1,146,000, respectively.

Depreciation expense recognized for the years ended December 31, 2021, 2022 and 2023 are summarized as follows:


	Years ended December 31,
(In thousands)	2021	2022	2023
Costs of revenues	4,805	1,362	740
Research and development expenses	436	467	390
Sales and marketing expenses	10	9	7
General and administrative expenses	1,068	828	3,290
Total	6,319	2,666	4,427

Common shares - Additional Information (Details)	12 Months Ended
Common shares - Additional Information (Details)	Dec. 31, 2023 Vote $ / shares shares	Dec. 31, 2022 shares
Common shares.
Common stock, shares authorized	1,000,000,000
Common stock, par value \| $ / shares	$ 0.00025
Number of votes per common share \| Vote	1
Common stock, shares outstanding	323,525,556	325,047,736

Common shares

12 Months Ended

Dec. 31, 2023

Common shares.

Common shares

16. Common shares

The Company’s Memorandum and Articles of Association authorizes the Company to issue 1,000,000,000 shares of USD0.00025 par value per common share as of December 31, 2023. Each common share is entitled to one vote. The holders of common shares are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, which is subject to the approval by the holders of the common shares representing a majority of the aggregate voting power of all outstanding shares. As of December 31, 2022 and 2023, there were 325,047,736 and 323,525,556 common shares outstanding, respectively.

The entire disclosure for equity.

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Basic and diluted net income per share

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

12 Months Ended

Dec. 31, 2023

Schedule of basic and diluted net income per share


(Amounts expressed in thousands of USD, except	Years ended December 31,
for number of shares and per share data)	2021	2022	2023
Numerator:
Net income	1,108	21,347	14,266
Less: Net (loss)/income attributable to the non-controlling interest	(83)	(116)	41
Net income attributable to Xunlei Limited’s common shareholders for basic/dilutive net income per share calculation	1,191	21,463	14,225
Denominator:
Weighted average number of common shares outstanding, basic	334,707,559	336,040,378	326,390,687
Dilutive effect of restricted share units	1,262,221	195,123	458,815
Weighted average number of common shares outstanding, diluted	335,969,780	336,235,501	326,849,502
Basic net income per share	0.0036	0.0639	0.0436
Diluted net income per share	0.0035	0.0638	0.0435

Summary of significant accounting policies - Analysis of Different Types of Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Net revenues
Net revenues	$ 364,911	$ 342,564	$ 239,601
Subscription revenue
Net revenues
Net revenues	119,343	100,557	91,174
Live streaming revenue and other internet value-added services
Net revenues
Net revenues	122,157	122,372	53,614
Cloud computing service and product revenue
Net revenues
Net revenues	$ 123,411	$ 119,635	$ 94,813

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.

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Schedule of property and equipment

Related party transactions - Schedule of Relationship Between Related Parties with their Groups (Detail)	12 Months Ended
	Dec. 31, 2023
Aiden & Jasmine Limited
Relationship between related parties with their groups
Relationship with the Group	Shareholder of the Company
Millet Technology Co., Ltd. ("Xiaomi Technology")
Relationship between related parties with their groups
Relationship with the Group	(note)
Guangzhou Millet Information Service Co., Ltd. ("Guangzhou Millet")
Relationship between related parties with their groups
Relationship with the Group	(note)
Shenzhen Xiaomi Technology Co., Ltd. ("Shenzhen Xiaomi")
Relationship between related parties with their groups
Relationship with the Group	(note)
Beijing Xiaobu Technology Co., Ltd. ("Beijing Xiaobu")
Relationship between related parties with their groups
Relationship with the Group	Company owned by the principal shareholder of the Company
Sungai Pte. Ltd. ("Sungai")
Relationship between related parties with their groups
Relationship with the Group	Company owned by the principal shareholder of the Company
Beijing Itui Technology Co., Ltd. ("Beijing Itui")
Relationship between related parties with their groups
Relationship with the Group	Company owned by the principal shareholder of the Company
Itui Online
Relationship between related parties with their groups
Relationship with the Group	Company owned by the principal shareholder of the Company
Chizz (HK) Limited ("Chizz")
Relationship between related parties with their groups
Relationship with the Group	Company owned by the principal shareholder of the Company

Long-term investments (Details) - USD ($)	12 Months Ended
Long-term investments (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cost method investments:
Balance at beginning of the year	$ 30,811,000	$ 31,495,000
Additions	1,418,000	0
Net unrealized gains on investments held		437,000
Impairment on long-term investments	0	(590,000)	$ 0
Exchange difference	95,000	531,000
Balance at end of the year	$ 32,134,000	$ 30,811,000	$ 31,495,000

Accounts receivable, net

12 Months Ended

Dec. 31, 2023

Accounts receivable, net

Accounts receivable, net

5. Accounts receivable, net


(In thousands)	December 31, 2022	December 31, 2023
Accounts receivable	31,192	32,232
Less: Allowance for current expected credit losses	(1,429)	(1,022)
Accounts receivable, net	29,763	31,210

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


(In thousands)	December 31, 2021	December 31, 2022	December 31, 2023
Balance at beginning of the year	9,329	1,764	1,429
Additions	72	—	213
Reversals	(481)	(188)	(189)
Write-off	(7,375)	(2)	(408)
Exchange difference	219	(145)	(23)
Balance at end of the year	1,764	1,429	1,022

The accounts receivable due from the top 10 customers accounted for about 86% and 76% of the balance of accounts receivable as of December 31, 2022 and 2023, respectively. The following table summarizes customers with balances of accounts receivable which was greater than 10% of the Group’s total accounts receivable:


	December 31, 2022		December 31, 2023
Customer A	39	%	30	%
Customer B	12	%	*
Customer C	17	%	18	%

*Less than 10%.

Property and equipment, net (Tables)

12 Months Ended

Dec. 31, 2023

Property and equipment, net


(In thousands)	December 31, 2022	December 31, 2023
Office building (note)	47,902	48,323
Servers and network equipment	15,065	15,471
Furniture, fixtures and office equipment	790	2,110
Computer equipment	1,624	1,811
Motor vehicles	449	517
Building decoration and leasehold improvements	8,705	8,725
Total original costs	74,535	76,957
Less: Accumulated depreciation	(12,801)	(15,704)
Less: Accumulated impairment	—	(1,225)
Total	61,734	60,028

Note: The construction of Xunlei Tower was completed in December 2022 and the ownership certificate of Xunlei Tower was obtained in March 2024.

Summary of depreciation expense


	Years ended December 31,
(In thousands)	2021	2022	2023
Costs of revenues	4,805	1,362	740
Research and development expenses	436	467	390
Sales and marketing expenses	10	9	7
General and administrative expenses	1,068	828	3,290
Total	6,319	2,666	4,427

Related party transactions (Tables)

12 Months Ended

Dec. 31, 2023

Related party transactions

Schedule of relationship between related parties with their groups

Related party		Relationship with the Group
Aiden & Jasmine Limited		Shareholder of the Company
Millet Technology Co., Ltd. (“Xiaomi Technology”)		(note)
Guangzhou Millet Information Service Co., Ltd. (“Guangzhou Millet”)		(note)
Shenzhen Xiaomi Technology Co., Ltd. (“Shenzhen Xiaomi”)		(note)
Beijing Xiaobu Technology Co., Ltd. (“Beijing Xiaobu”)		Company owned by the principal shareholder of the Company
Sungai Pte. Ltd. (“Sungai”)		Company owned by the principal shareholder of the Company
Beijing Itui Technology Co., Ltd. (“Beijing Itui”)		Company owned by the principal shareholder of the Company
Itui Online		Company owned by the principal shareholder of the Company
Chizz (HK) Limited (“Chizz”)		Company owned by the principal shareholder of the Company

Schedule of significant related party transactions


	Years ended December 31,
(In thousands)	2021	2022	2023
Revenue from cloud computing services
Xiaomi Technology	2,798	4,978	7,604
Beijing Itui	821	592	358
Revenue from advertising
Itui Online	11,648	7,804	8,941
Shenzhen Xiaomi	380	112	13
Revenue from technical services
Guangzhou Millet	1,245	—	—
Shenzhen Xiaomi	1,392	2,505	354
Bandwidth costs
Quanxun Huiju	730	—	—
Interest income
Chizz	176	626	724

Schedule of amount due to from related party


(In thousands)	December 31, 2022	December 31, 2023
Amounts due from related parties - current
Accounts receivable
Itui Online	7,910	9,061
Shenzhen Xiaomi	1,378	705
Xiaomi Technology	1,871	1,831
Beijing Xiaobu	1,419	394
Beijing Itui	537	333
Sungai.	92	—
Other receivables
Chizz (note)	19,689	300
Other related parties (individual balance was less than USD10)	21	20
Total	32,917	12,644
Amounts due from a related party - non-current
Other receivables
Chizz (note)	—	19,619
Total	—	19,619


(In thousands)	December 31, 2022	December 31, 2023
Amounts due to related parties
Other payables
Aiden & Jasmine Limited	1,560	—
Total	1,560	—

Additional information: condensed financial statements of the Company - Schedule of Condensed Statement of Cash Flows (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from financing activities
Net (decrease)/increase in cash, cash equivalents and restricted cash	$ (11,706)	$ 69,508	$ (13,362)
Cash and cash equivalents at beginning of the year	177,154	123,358	137,248
Effect of exchange rates on cash and cash equivalents	(2,300)	(12,136)	2,009
Cash and cash equivalents at end of the year	170,802	177,154	123,358
Xunlei Limited
Cash flows from operating activities
Other operating activities with external parties	(391)	(948)	(5,732)
Net cash used in operating activities	(391)	(948)	(5,732)
Cash flows from investing activities
Loans to group companies	(188)	(3,450)	(26,391)
Other investing activities with external parties	2,031	11,134	6,553
Net cash (used in)/generated from investing activities	1,843	7,684	(19,838)
Cash flows from financing activities
Loans from group companies	3,150
Other financing activities with external parties	(4,687)	(6,747)
Net cash used in financing activities	(1,537)	(6,747)
Net (decrease)/increase in cash, cash equivalents and restricted cash	(85)	(11)	(25,570)
Cash and cash equivalents at beginning of the year	32,004	32,015	57,585
Effect of exchange rates on cash and cash equivalents	0	0	0
Cash and cash equivalents at end of the year	$ 31,919	$ 32,004	$ 32,015

Cash and cash equivalents - Additional Information (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Cash and cash equivalents
Cash and cash equivalents are time deposits	$ 72,176,000	$ 54,350,000

Property and equipment, net - Impairment loss (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property and equipment, net
Impairment of property and equipment	$ 1,146,000	$ 0	$ 0

Taxation - Summary of Aggregate Amount and Per Share Effect of Tax Holiday (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Taxation
Aggregate dollar effect (in thousands)	$ 5,121	$ 5,243	$ 4,100
Per share effect-basic	$ 0.02	$ 0.02	$ 0.01
Per share effect-diluted	$ 0.02	$ 0.02	$ 0.01

Cash and cash equivalents (Tables)

12 Months Ended

Dec. 31, 2023

Cash and cash equivalents

Schedule of cash on hand and cash held at bank


	December 31, 2022		December 31, 2023
		USD		USD
(In thousands)	Amount	equivalent	Amount	equivalent
RMB	699,666	100,461	648,445	91,553
USD	73,449	73,449	76,636	76,636
SGD	2,370	1,760	3,231	2,446
Hong Kong Dollar	1,223	157	1,275	163
Others	Not applicable	1,327	Not applicable	4
Total		177,154		170,802

Intangible assets, net (Tables)

12 Months Ended

Dec. 31, 2023

Intangible assets, net

Schedule of intangible assets


	December 31,
	2022			2023
			Net book			Net book
(In thousands)	Cost	Amortization	value	Cost	Amortization	value
Land use rights	4,777	(1,498)	3,279	4,697	(1,629)	3,068
Audio - visual license	5,631	(2,884)	2,747	5,537	(3,484)	2,053
Acquired computer software	3,264	(2,744)	520	3,565	(2,989)	576
Total	13,672	(7,126)	6,546	13,799	(8,102)	5,697

Summary of amortization expense recognized


	Years ended December 31
(In thousands)	2021	2022	2023
Cost of revenues	10	54	53
Research and development expenses	6	—	—
General and administrative expenses	1,113	1,032	1,048
Total	1,129	1,086	1,101

Schedule of estimated aggregate amortization expense

The estimated aggregate amortization expense for each of the next five years as of December 31, 2023 is:


(In thousands)		Intangible assets
2024		1,016
2025		925
2026		913
2027		366
2028 and thereafter		2,477

Schedule of weighted average amortization periods of intangible assets


(In year)	December 31, 2022	December 31, 2023
Land use rights	30	30
Audio-visual license	9	9
Acquired computer software	5	5
Total weighted average amortization periods	10	10

Basic and diluted net income per share

12 Months Ended

Dec. 31, 2023

Basic and diluted net income per share

Basic and diluted net income per share

22. Basic and diluted net income per share

Basic and diluted net income per share for the years ended December 31, 2021, 2022 and 2023 are calculated as follows:


(Amounts expressed in thousands of USD, except	Years ended December 31,
for number of shares and per share data)	2021	2022	2023
Numerator:
Net income	1,108	21,347	14,266
Less: Net (loss)/income attributable to the non-controlling interest	(83)	(116)	41
Net income attributable to Xunlei Limited’s common shareholders for basic/dilutive net income per share calculation	1,191	21,463	14,225
Denominator:
Weighted average number of common shares outstanding, basic	334,707,559	336,040,378	326,390,687
Dilutive effect of restricted share units	1,262,221	195,123	458,815
Weighted average number of common shares outstanding, diluted	335,969,780	336,235,501	326,849,502
Basic net income per share	0.0036	0.0639	0.0436
Diluted net income per share	0.0035	0.0638	0.0435

Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill
Beginning balance	$ 21,179	$ 23,136
Foreign currency translation adjustment	(353)	(1,957)
Ending balance	$ 20,826	$ 21,179

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.

Accrued liabilities and other payables

Repurchase of shares

12 Months Ended

Dec. 31, 2023

Repurchase of shares

Repurchase of shares

17. Repurchase of shares

In March 2022, the Board of Directors of the Company authorized another share repurchase program (the “2022 Share Buyback Program”), whereby the Company may repurchase up to USD20 million of its shares over the next twelve months through various legally permissible means, including open market purchases at prevailing prices and algorithmic trading, privately negotiated transactions, block trades, or other methods depending on market conditions and in compliance with applicable regulations. During the year ended December 31, 2023, 569,748 ADSs (2022: 4,409,974) were purchased at an aggregate consideration of approximately USD1.1 million (2022: USD6.7 million) under the 2022 Share Buyback Program.

In June 2023, the Board of Directors of the Company authorized another share repurchase program (the “2023 Share Buyback Program”), whereby the Company may repurchase up to USD20 million of common shares or ADSs over the next twelve months through various legally permissible means, including open market purchases at prevailing prices and algorithmic trading, privately negotiated transactions, block trades, or other methods depending on market conditions and in compliance with applicable regulations. During the year ended December 31, 2023, 2,037,721 ADSs were purchased at an aggregate consideration of approximately USD3.6 million under the 2023 Share Buyback Program.

Accrued liabilities and other payables

12 Months Ended

Dec. 31, 2023

Accrued liabilities and other payables

14. Accrued liabilities and other payables


(In thousands)	December 31, 2022	December 31, 2023
Payroll and welfare	23,277	24,702
Tax levies	4,178	7,879
Payables related to Xunlei Kankan	2,418	—
Payables for advertisement	1,980	3,473
Legal and litigation related expenses (note 25)	634	1,168
Professional service fees	1,656	1,273
Agency commissions and rebates from online advertising	2,525	—
Payables for office building	8,528	8,623
Payables related to share repurchase	1,120	2,774
Others	3,122	3,816
Total	49,438	53,708

Summary of significant accounting policies - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Summary of significant accounting policies
Impairment of long-term investments	$ 0	$ 590,000	$ 0
Cash flow projection period	5 years
Goodwill impairment losses	$ 0	0	0
External advertising and market promotion expenses from continuing operations	$ 29,140,000	$ 12,551,000	$ 15,052,000
Value added tax rate from product revenue	13.00%
Value added tax on sub-licensing revenues	6.00%
VAT payable incurred as tax credit	105.00%	110.00%	110.00%
Employee benefit costs	$ 16,656,000	$ 14,266,000	$ 12,411,000
Statutory general reserve rate	10.00%
Statutory general reserve rate of registered capital	50.00%
Dividends declared	$ 0	$ 0	$ 0
Minimum
Summary of significant accounting policies
Term of time-based subscriptions	1 month
Maximum
Summary of significant accounting policies
Term of time-based subscriptions	12 months
Net revenues \| Geographic Concentration Risk \| China \| Minimum
Summary of significant accounting policies
Percentage of revenue derived from mainland china	91.00%	88.00%	95.00%

Inventories

12 Months Ended

Dec. 31, 2023

Inventories

Inventories

6. Inventories


(In thousands)	December 31, 2022	December 31, 2023
Hardware devices	532	2,049
Others	206	420
Less: Impairment	(281)	(250)
Total	457	2,219

Note:

The inventories written down was USD15,000 and nil for the years ended December 31, 2022 and 2023, respectively.

Inventories (Details) - USD ($) $ in Thousands	12 Months Ended
Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Inventories
Less: Impairment	$ (250)	$ (281)
Inventories	2,219	457
Hardware devices
Inventories
Inventories	2,049	532
Others
Inventories
Inventories	$ 420	$ 206

Cash and cash equivalents - Summary of Cash on Hand and Cash Held at Bank (Details) ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 HKD ($)	Dec. 31, 2023 SGD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 HKD ($)	Dec. 31, 2022 SGD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Cash and cash equivalents
Cash on hand and cash held at bank	$ 170,802				$ 177,154				$ 123,358	$ 137,248
RMB
Cash and cash equivalents
Cash on hand and cash held at bank	91,553	¥ 648,445			100,461	¥ 699,666
USD
Cash and cash equivalents
Cash on hand and cash held at bank	76,636				73,449
SGD
Cash and cash equivalents
Cash on hand and cash held at bank	2,446			$ 3,231	1,760			$ 2,370
HKD
Cash and cash equivalents
Cash on hand and cash held at bank	163		$ 1,275		157		$ 1,223
Other Currency [Member]
Cash and cash equivalents
Cash on hand and cash held at bank	$ 4				$ 1,327

Accounts receivable, net - Allowance for current expected credit loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounts receivable, net
Balance at beginning of the year	$ 1,429	$ 1,764	$ 9,329
Additions	213		72
Reversals	(189)	(188)	(481)
Write-off	(408)	(2)	(7,375)
Exchange difference	(23)	(145)	219
Balance at end of the year	$ 1,022	$ 1,429	$ 1,764

Prepayments and other assets (Tables)

12 Months Ended

Dec. 31, 2023

Prepayments and other assets

Schedule of prepayments and other assets


(In thousands)	December 31, 2022	December 31, 2023
Current portion:
Advances to suppliers (note a)	4,042	3,059
Receivable related to an asset disposal in 2019	3,316	3,247
Receivable from a business disposal in 2015	4,288	—
Loans to employees (note b)	1,851	2,082
Rental and other deposits	1,397	1,561
Others	4,040	5,660
Less: Allowance for current expected credit losses	(10,667)	(6,186)
Total of prepayments and other current assets	8,267	9,423
Non-current portion:
Loans to employees, non-current portion (note b)	1,543	1,687
Advances to suppliers, non-current portion (note a)	594	266
Total of long-term prepayments and other assets	2,137	1,953

Notes:

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

(b)

Schedule of movement in allowance for current expected credit loss


(In thousands)	December 31, 2021	December 31, 2022	December 31, 2023
Balance at beginning of the year	10,283	11,069	10,667
Additions	745	745	—
Reversals	(150)	(197)	(100)
Write-off	(54)	—	(4,234)
Exchange difference	245	(950)	(147)
Balance at end of the year	11,069	10,667	6,186

Additional information: condensed financial statements of the Company - Schedule of Condensed Statements of Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating expenses
General and administrative expenses	$ (46,875)	$ (39,701)	$ (36,868)
Total operating expenses	(164,685)	(131,378)	(124,502)
Operating loss	(1,612)	10,065	(4,323)
Interest income	4,619	1,898	723
Interest expense	(1,514)	(93)	(95)
Other income, net	16,904	13,545	4,678
Income before income tax	18,397	25,415	983
Income tax expenses	(4,131)	(4,068)	125
Net income	14,266	21,347	1,108
Net income attributable to Xunlei Limited's common shareholders	14,225	21,463	1,191
Xunlei Limited
Operating expenses
General and administrative expenses	(7,931)	(6,436)	(3,302)
Total operating expenses	(7,931)	(6,436)	(3,302)
Operating loss	(7,931)	(6,436)	(3,302)
Interest income	1,512	360	107
Interest expense	(93)	(93)	(95)
Other income, net	3,928	368	585
Income from subsidiaries and consolidated VIEs	16,948	27,300	3,935
Income before income tax	14,364	21,499	1,230
Income tax expenses	(139)	(36)	(39)
Net income	14,225	21,463	1,191
Net income attributable to Xunlei Limited's common shareholders	$ 14,225	$ 21,463	$ 1,191

Related party transactions - Schedule of Significant Related Party Transactions (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Relationship between related parties with their groups
Revenues	$ 363,722	$ 341,497	$ 238,782
Costs of revenues (including transactions with related parties)	200,649	200,054	118,603
Xiaomi Technology \| Cloud computing services
Relationship between related parties with their groups
Revenues	7,604	4,978	2,798
Guangzhou Millet \| Technical service
Relationship between related parties with their groups
Revenues			1,245
Beijing Itui Technology Co., Ltd. \| Cloud computing services
Relationship between related parties with their groups
Revenues	358	592	821
Itui Online \| Advertising
Relationship between related parties with their groups
Revenues	8,941	7,804	11,648
Shenzhen Xiaomi Technology Co., Ltd. \| Technical service
Relationship between related parties with their groups
Revenues	354	2,505	1,392
Shenzhen Xiaomi Technology Co., Ltd. \| Advertising
Relationship between related parties with their groups
Revenues	13	112	380
Quanxun Huiju \| Bandwidth
Relationship between related parties with their groups
Costs of revenues (including transactions with related parties)			730
Chizz \| Technical service
Relationship between related parties with their groups
Interest income from Chizz	$ 724	$ 626	$ 176

Share-based compensation - Schedule of Recognized Compensation Costs (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based compensation
Total compensation costs	$ 9,676,000	$ 8,184,000	$ 6,170,000
Terminated plans
Share-based compensation
Total compensation costs	352,000	748,800	800,700
Sales and marketing expenses
Share-based compensation
Total compensation costs	48,000		59,000
General and administrative expenses
Share-based compensation
Total compensation costs	8,113,000	6,855,000	4,682,000
Research and development expenses
Share-based compensation
Total compensation costs	$ 1,515,000	$ 1,329,000	$ 1,429,000

Certain risks and concentration

12 Months Ended

Dec. 31, 2023

Certain risks and concentration

Certain risks and concentration

26. Certain risks and concentration

PRC regulations

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

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

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

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

26. Certain risks and concentration (Continued)

PRC regulations (Continued)

As of December 31, 2023, Shenzhen Xunlei and its subsidiaries held patents granted in the PRC and in the United States. Presently, certain patents applications are being examined by the State Intellectual Property Office of the PRC.

As of December 31, 2023, Shenzhen Xunlei and its subsidiaries have applied to register trademarks, of which the Company has received registered trademarks in different applicable trademark categories, including registered with World Intellectual Property Organization.

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


	As of December 31,
(In thousands)	2022	2023
Current assets:
Cash and cash equivalents	52,142	37,286
Short-term investments	—	14,825
Accounts receivable, net	29,162	27,851
Amount due from group companies	5,326	5,278
Due from related parties	13,121	12,330
Inventories	457	2,219
Prepayments and other current assets	2,574	2,579
Total current assets	102,782	102,368
Non-current assets:
Long-term investments	5,345	6,668
Property and equipment, net	61,545	59,882
Intangible assets, net	6,546	5,697
Goodwill	21,179	20,826
Long-term prepayments and other assets	2,094	1,928
Operating lease assets	865	575
Restricted cash	7,654	—
Total assets	208,010	197,944
Current liabilities:
Accounts payable	23,398	21,517
Amount due to group companies	71,925	93,740
Bank borrowings	7,024	6,906
Contract liabilities	37,781	34,723
Income tax payable	3,342	4,739
Accrued liabilities and other payables	43,446	42,035
Lease liabilities, current portion	283	276
Total current liabilities	187,199	203,936
Non-current liabilities:
Contract liabilities	876	846
Deferred tax liabilities	687	513
Amount due to group companies	97,617	68,902
Bank borrowings	24,750	15,539
Lease liabilities	299	229
Total liabilities	311,428	289,965

26. Certain risks and concentration (Continued)

PRC regulations (Continued)


	Years ended December 31,
(In thousands)	2021	2022	2023
Third-party revenues	228,736	301,853	330,860
Third-party costs of revenues	(109,722)	(171,116)	(177,060)
Inter-company operating expenses	(8,032)	(4,863)	(12,896)
Third-party operating expenses	(110,367)	(115,578)	(139,613)
Net income attributable to Xunlei Limited	2,913	11,136	6,995


	Years ended December 31,
(In thousands)	2021	2022	2023
Purchases of goods and services from group companies	—	(29,738)	—
Sales of goods and services to group companies	—	—	217
Other operating activities with external parties	24,945	54,684	27,634
Net cash generated from operating activities	24,945	24,946	27,851
Other investing activities with external parties	(19,417)	(8,801)	(21,985)
Net cash used in investing activities	(19,417)	(8,801)	(21,985)
Loans from group companies	23,527	25,580	437
Repayment of loans to group companies	(24,425)	(10,830)	(19,285)
Other financing activities with external parties	(223)	13,388	(8,837)
Net cash (used in)/generated from financing activities	(1,121)	28,138	(27,685)
	4,407	44,283	(21,819)

Foreign exchange risk

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

Concentration of customer risk

The top 10 customers accounted for approximately 35%, 33% and 31% of the net revenues for the years ended December 31, 2021, 2022 and 2023, respectively.

For the years ended December 31, 2021, 2022 and 2023, revenue from Customer A was USD31.4 million, USD49.4 million and USD53.9 million, accounted for approximately 13%, 14% and 15% of the Group’s total revenues, respectively. Other than this, no revenue derived from transactions with any other single customer represented 10% or more of the Group’s total revenues.

Credit risk

As of December 31, 2022 and 2023, substantially all of the Group’s cash and cash equivalents, restricted cash and short-term investments were held at reputable financial institutions in the jurisdictions where the Company, the Company’s subsidiaries, the VIE and VIE’s subsidiaries are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. The Group has not experienced any losses on its deposits of cash and cash equivalents, restricted cash and short-term investments.

26. Certain risks and concentration (Continued)

Credit risk (Continued)

Prior to entering into sales agreements, the Group performs ongoing credit assessments of its customers, taking into account their financial position, credit history and other factors such as current market conditions. Further, the Group has not experienced any significant bad debts with respect to its accounts receivable for the years ended December 31, 2021, 2022 and 2023.

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

Restricted net assets

Relevant PRC laws and regulations permit payments of dividends by the Company’s subsidiaries, the VIE and VIE’s subsidiaries in China only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries, the VIE and VIE’s subsidiaries in China are required to make certain appropriation of net after-tax profits or increase in net assets to the statutory surplus fund (see note 2(aa)) prior to payment of any dividends. As a result of these and other restrictions under PRC laws and regulations, the Company’s subsidiaries, the VIE and VIE’s subsidiaries in China are restricted in their ability to transfer their net assets to the Company in terms of cash dividends, loans or advances, which restricted portion amounted to USD173,226,000 as of December 31, 2023, or 53% of the Company’s total consolidated net assets. Even though the Company currently does not require any such dividends, loans or advances from the PRC subsidiaries, the VIE and VIE’s subsidiaries for working capital and other funding purposes, the Company may in the future require additional cash resources from the Company’s subsidiaries, the VIE and VIE’s subsidiaries in China due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends to make distributions to shareholders.

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

Prepayments and other assets- Movement in allowance for current expected credit loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Balance at beginning of the year	$ 10,667	$ 11,069	$ 10,283
Additions		745	745
Reversals	(100)	(197)	(150)
Write-off	(4,234)		(54)
Exchange difference	(147)	(950)	245
Balance at end of the year	$ 6,186	$ 10,667	$ 11,069

Organization and nature of operations

12 Months Ended

Dec. 31, 2023

Organization and nature of operations

Organization and nature of operations

1. Organization and nature of operations

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

These consolidated financial statements include the financial statements of the Company, its subsidiaries, the variable interest entity (“VIE”) and VIE’s subsidiaries (collectively referred to as the “Group”). As of December 31, 2023, the Company’s major subsidiaries, VIE and VIE’s subsidiaries are as follows:


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

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

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

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

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

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

1. Organization and nature of operations (Continued)


				% of direct
				or indirect
	Place of	Period of		economic
Name of entities	incorporation	incorporation	Relationship	ownership		Principal activities
Jiangxi Node Technology Service Co., Ltd. (“Jiangxi Node”)	PRC	July 2020	VIE’s subsidiary	100	%	Development of cloud computing technology and provision of related services

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

Hainan Xunlei Hammer Network Technologies Co., Ltd.	PRC	September 2021	VIE’s subsidiary	100	%	Development of computer software and operation of live steaming platforms

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

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

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

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

—Loan Agreements 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 became expired in March 2022 and had been automatically extended for an additional 10 years at Giganology Shenzhen’s discretion to March 2032.

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

1.Organization and nature of operations (Continued)

VIE-related risks

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

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

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

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

Short-term investments

12 Months Ended

Dec. 31, 2023

Short-term investments

Short-term investments

4. Short-term investments


(In thousands)	December 31, 2022	December 31, 2023
Time deposits	51,044	51,176
Investments in financial instruments	32,582	49,902
Total	83,626	101,078

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common shares	Treasury stock	Additional paid-in capital	Accumulated deficits	Statutory reserves	Accumulated other comprehensive (loss)/income	Total Xunlei Limited's shareholders' equity	Non-controlling interest	Total
Beginning Balance, Amount at Dec. 31, 2020	$ 84	$ 8	$ 469,887	$ (181,095)	$ 5,414	$ (2,144)	$ 292,154	$ (1,781)	$ 290,373
Beginning Balance, Shares at Dec. 31, 2020	334,401,981	34,475,224
Share-based compensation			6,170				6,170		6,170
Restricted shares vested (in shares)	2,855,965	(2,855,965)
Appropriation of statutory reserves				(741)	741
Net income				1,191			1,191	(83)	1,108
Currency translation adjustments						4,132	4,132	(16)	4,116
Ending Balance, Amount at Dec. 31, 2021	$ 84	$ 8	476,057	(180,645)	6,155	1,988	303,647	(1,880)	301,767
Ending Balance, Shares at Dec. 31, 2021	337,257,946	31,619,259
Issuance of common shares for vesting of restricted shares		$ 1	(1)
Issuance of common shares for vesting of restricted shares (in shares)		6,124,735
Repurchase of common shares	$ (5)	$ 5	(6,747)				(6,747)		(6,747)
Repurchase of common shares (in shares)	(22,049,870)	22,049,870
Share-based compensation			8,184				8,184		8,184
Restricted shares vested	$ 2	$ (2)
Restricted shares vested (in shares)	9,839,660	(9,839,660)
Appropriation of statutory reserves				(881)	881
Disposal of subsidiaries			2				2	358	360
Capital injection in a subsidiary from noncontrolling interest shareholders								(63)	(63)
Net income				21,463			21,463	(116)	21,347
Currency translation adjustments						(16,656)	(16,656)	229	(16,427)
Ending Balance, Amount at Dec. 31, 2022	$ 81	$ 12	477,495	(160,063)	7,036	(14,668)	309,893	(1,472)	308,421
Ending Balance, Shares at Dec. 31, 2022	325,047,736	49,954,204
Repurchase of common shares	$ (3)	$ 3	(4,687)				(4,687)		(4,687)
Repurchase of common shares (in shares)	(13,037,345)	13,037,345
Share-based compensation			9,676				9,676		9,676
Restricted shares vested	$ 3	$ (3)
Restricted shares vested (in shares)	11,515,165	(11,515,165)
Appropriation of statutory reserves				(1,106)	1,106
Net income				14,225			14,225	41	14,266
Currency translation adjustments						(4,245)	(4,245)	42	(4,203)
Ending Balance, Amount at Dec. 31, 2023	$ 81	$ 12	$ 482,484	$ (146,944)	$ 8,142	$ (18,913)	$ 324,862	$ (1,389)	$ 323,473
Ending Balance, Shares at Dec. 31, 2023	323,525,556	51,476,384

Repurchase of shares (Details) - USD ($) $ in Millions	12 Months Ended
Repurchase of shares (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023	Mar. 31, 2022
Share Buyback Program 2022
Equity, Class of Treasury Stock [Line Items]
Share repurchase authorized amount				$ 20.0
Total number of ADS Purchased	569,748	4,409,974
ADS repurchased	$ 1.1	$ 6.7
Share Buyback Program 2023
Equity, Class of Treasury Stock [Line Items]
Share repurchase authorized amount			$ 20.0
Total number of ADS Purchased	2,037,721
ADS repurchased	$ 3.6

Contract liabilities - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Contract Liabilities [Line Items]
Contract liabilities	$ 38,016,000	$ 35,380,000
Contract liabilities (including contract liabilities of the consolidated VIEs without recourse to the Company of USD876 and USD846 as of December 31, 2022 and 2023, respectively)	846,000	876,000
Membership subscription
Contract Liabilities [Line Items]
Contract liabilities (including contract liabilities of the consolidated VIEs without recourse to the Company of USD876 and USD846 as of December 31, 2022 and 2023, respectively)	$ 846,000	$ 876,000

Costs of revenues

12 Months Ended

Dec. 31, 2023

Costs of revenues.

Costs of revenues

19. Costs of revenues


	Years ended December 31,
(In thousands)	2021	2022	2023
Bandwidth costs	80,720	104,580	112,522
Revenue-sharing from live streaming business	26,506	78,636	67,302
Payment handling charges	3,066	6,500	8,494
Cost of inventories sold	1,516	2,228	5,911
Depreciation of servers and other equipment	4,805	1,363	740
Other costs (note)	1,990	6,747	5,680
Total	118,603	200,054	200,649

Note: Other costs mainly included content review costs and technical service costs.

Bank borrowings - Maturity of bank borrowings (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Maturity of bank borrowings
Within 1 year	$ 6,906
Between 1 to 2 years	6,906
Between 2 to 3 years	6,906
Between 3 to 4 years	$ 1,727

Other income, net

12 Months Ended

Dec. 31, 2023

Other income, net

Other income, net

20. Other income, net


	Years ended December 31,
(In thousands)	2021	2022	2023
Gains from reversal of long outstanding payables	—	3,239	6,831
Investment income from short-term investments (note)	2,486	2,903	4,354
Government subsidy income	3,206	2,377	2,360
Exchange (losses)/gains, net	(1,205)	4,494	1,693
VAT deduction	818	1,220	840
Net unrealized gains arising from long-term investments	—	437	—
Impairment on long-term investments	—	(590)	—
Rental income	—	—	199
Others	(627)	(535)	627
Total	4,678	13,545	16,904

Note: For the years ended December 31, 2021, 2022 and 2023, investment income from short-term investments comprised interest income of USD599,000, USD361,000 and USD1,389,000 from time deposits with original maturities of more than three months but within one year, and investment income of USD1,888,000, USD2,543,000 and USD2,965,000 from investments in financial instruments, respectively.

Contract liabilities (Details) - USD ($)

Dec. 31, 2023

Dec. 31, 2022

Less: non-current portion (note b)

$ 37,221,000

$ 39,843,000

(846,000)

(876,000)

Contract liabilities, current portion

36,375,000

38,967,000

Membership subscription

Less: non-current portion (note b)

35,969,000

37,721,000

(846,000)

(876,000)

Live Streaming

830,000

969,000

Others

Organization and nature of operations

^[1]

$ 422,000

$ 1,153,000

[1]

Commitments and contingencies - Future Minimum Payments under Non-Cancellable Leases (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Future minimum payments under non-cancellable
2024	$ 297
Bandwidth purchase commitments
Future minimum payments under non-cancellable
2024	$ 195

Operating lease assets and lease liabilities - Undiscounted cash payments (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Undiscounted cash payment
2024	$ 297
2025	166
2026	70
Total undiscounted payments	533
Less: effect of discounting	(28)
Discounted lease liabilities	$ 505

Organization and nature of operations (Tables)

12 Months Ended

Dec. 31, 2023

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


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

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

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

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

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

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


				% of direct
				or indirect
	Place of	Period of		economic
Name of entities	incorporation	incorporation	Relationship	ownership		Principal activities
Jiangxi Node Technology Service Co., Ltd. (“Jiangxi Node”)	PRC	July 2020	VIE’s subsidiary	100	%	Development of cloud computing technology and provision of related services

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

Hainan Xunlei Hammer Network Technologies Co., Ltd.	PRC	September 2021	VIE’s subsidiary	100	%	Development of computer software and operation of live steaming platforms

Short-term investments (Tables)

12 Months Ended

Dec. 31, 2023

Short-term investments

Schedule of short-term investments


(In thousands)	December 31, 2022	December 31, 2023
Time deposits	51,044	51,176
Investments in financial instruments	32,582	49,902
Total	83,626	101,078

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Related party transactions
Total revenues, net of rebates and discounts (including transactions with related parties)	$ 363,722	$ 341,497	$ 238,782
Costs of revenues (including transactions with related parties)	200,649	200,054	118,603
Related parties
Related party transactions
Total revenues, net of rebates and discounts (including transactions with related parties)	17,270	15,991	18,284
Costs of revenues (including transactions with related parties)	$ 39	$ 87	$ 730

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

Fair value measurements

12 Months Ended

Dec. 31, 2023

Fair value measurements

Fair value measurements

24. Fair value measurements

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

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

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

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

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

The following table sets forth the financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2022 and 2023.


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


	Fair value measurements as of December 31, 2023
		Quoted prices	Significant
		in active market	other	Significant
		for identical	observable	unobservable
		assets	inputs	inputs
(In thousands)	Total	(Level 1)	(Level 2)	(Level 3)
Short-term investments:
Investments in structured deposits and wealth management products	49,902	—	49,902	—

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

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.

Operating lease assets and lease liabilities

Operating lease assets and lease liabilities

12 Months Ended

Dec. 31, 2023

Operating lease assets and lease liabilities

10. Operating lease assets and lease liabilities

The operating lease assets, represented the leased offices of the Group, are amortized over the lease terms, which are greater than 1 year but less than 3 years. Operating leases are as below:


(In thousands)		Office leases
Net book amount as of January 1, 2022		27
Additions		920
Amortization		(56)
Effect of foreign currency exchange differences		(26)
Net book amount as of December 31, 2022		865
Additions		927
Amortization		(551)
Modification		(652)
Effect of foreign currency exchange differences		(14)
Net book amount as of December 31, 2023		575

The amortization expenses for long-term operating lease were USD1,934,000, USD56,000 and USD551,000 for the years ended December 31, 2021, 2022 and 2023, respectively.

A charge of USD786,000, USD2,457,000 and USD1,645,000 were recognized in relation to short-term leases for the years ended December 31, 2021, 2022 and 2023, respectively.

As of December 31, 2023, the future minimum payment under non-cancellable short-term operating leases was USD96,000.

The weighted average discount rate related to operating leases was 5.4%, 5.4% and 5.1% as of December 31, 2021, 2022 and 2023, respectively. The weighted average remaining lease term were 0.8 year, 3.0 years and 2.0 years as of December 31, 2021, 2022 and 2023, respectively.

The total cash payments in respect of operating lease were USD2,003,000, USD2,792,000 and USD2,386,000 for the years ended December 31, 2021, 2022 and 2023, respectively.

The undiscounted cash payments for each of the next five years as of December 31, 2023 is:


(In thousands)
2024		297
2025		166
2026		70
Total undiscounted payments		533
Less: effect of discounting		(28)
Discounted lease liabilities		505

Other income, net - Schedule of Other income, net (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other income, net
Gains from reversal of long outstanding payables	$ 6,831,000	$ 3,239,000
Investment income from short-term investments	4,354,000	2,903,000	$ 2,486,000
Government subsidy income	2,360,000	2,377,000	3,206,000
Exchange (losses)/gains, net	1,693,000	4,494,000	(1,205,000)
VAT deduction	840,000	1,220,000	818,000
Net unrealized gains arising from long-term investments		437,000
Impairment of long-term investments		(590,000)
Rental income	199,000
Others	627,000	(535,000)	(627,000)
Total	16,904,000	13,545,000	4,678,000
Interest income from time deposits	1,389,000	361,000	599,000
Investment income from investments in financial instruments	$ 2,965,000	$ 2,543,000	$ 1,888,000

Organization and nature of operations - Additional Information (Details) ¥ / shares in Units, ¥ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥) ¥ / shares
Organization and nature of operations
Number of year's power of attorney retained	10 years
Percentage of pre-tax operating profit	80.00%
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%

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

12 Months Ended

Dec. 31, 2023

Additional information: condensed financial statements of the Company

Schedule of condensed balance sheets


(In thousands)	December 31, 2022	December 31, 2023
Assets
Current assets:
Cash and cash equivalents	32,004	31,919
Short-term investments	29,342	28,382
Due from group companies	5,808	6,583
Prepayments and other current assets	927	1,720
Total current assets	68,081	68,604
Non-current assets:
Due from group companies	200,471	199,864
Investments in subsidiaries and consolidated VIEs	49,888	68,086
Total assets	318,440	336,554
Liabilities
Current liabilities:
Accounts payable	55	—
Due to group companies	5,028	8,150
Due to related parties	1,560	—
Income tax payable	10	72
Accrued liabilities and other payables	1,894	3,470
Total current liabilities	8,547	11,692
Total liabilities	8,547	11,692
Commitments and contingencies
Shareholders’ equity
Common shares	81	81
Treasury shares	12	12
Other shareholders’ equity	309,800	324,769
Total Xunlei Limited’s shareholders’ equity	309,893	324,862
Total liabilities and shareholders’ equity	318,440	336,554

Schedule of condensed statements of operations

Condensed Statements of Operations


	Years ended December 31,
(In thousands)	2021	2022	2023
Operating expenses
General and administrative expenses	(3,302)	(6,436)	(7,931)
Total operating expenses	(3,302)	(6,436)	(7,931)
Operating loss	(3,302)	(6,436)	(7,931)
Interest income	107	360	1,512
Interest expense	(95)	(93)	(93)
Other income, net	585	368	3,928
Income from subsidiaries and consolidated VIEs	3,935	27,300	16,948
Income before income tax	1,230	21,499	14,364
Income tax expenses	(39)	(36)	(139)
Net income	1,191	21,463	14,225
Net income attributable to Xunlei Limited’s common shareholders	1,191	21,463	14,225

Schedule of condensed statements of cash flows

Condensed Statements of Cash Flows


	Years ended December 31,
(In thousands)	2021	2022	2023
Other operating activities with external parties	(5,732)	(948)	(391)
Net cash used in operating activities	(5,732)	(948)	(391)
Loans to group companies	(26,391)	(3,450)	(188)
Other investing activities with external parties	6,553	11,134	2,031
Net cash (used in)/generated from investing activities	(19,838)	7,684	1,843
Loans from group companies	—	—	3,150
Other financing activities with external parties	—	(6,747)	(4,687)
Net cash used in financing activities	—	(6,747)	(1,537)
Net decrease in cash and cash equivalents	(25,570)	(11)	(85)
Cash and cash equivalents at beginning of year	57,585	32,015	32,004
Effect of exchange rates on cash and cash equivalents	—	—	—
Cash and cash equivalents at end of year	32,015	32,004	31,919

Prepayments and other assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current portion:
Advance to suppliers	$ 3,059	$ 4,042
Receivable related to an asset disposal in 2019	3,247	3,316
Receivable from a business disposal in 2015		4,288
Loans to employees	2,082	1,851
Rental and other deposits	1,561	1,397
Others	5,660	4,040
Less: Allowance for current expected credit losses	(6,186)	(10,667)	$ (11,069)	$ (10,283)
Total of prepayments and other current assets	9,423	8,267
Non-current portion:
Loans to employees, non-current portion	1,687	1,543
Advances to suppliers, non-current portion	266	594
Total of long-term prepayments and other assets	$ 1,953	$ 2,137

Inventories - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Inventories
Impairment of inventories	$ 0	$ 15,000	$ 429,000

Long-term investments (Tables)

12 Months Ended

Dec. 31, 2023

Long-term investments

Schedule of long-term investments


(In thousands)	December 31, 2022	December 31, 2023
Equity interests without a readily determinable fair value:
Balance at beginning of the year	31,495	30,811
Additions (note a)	—	1,418
Net unrealized gains on investments held	437	—
Impairment on long-term investments	(590)	—
Exchange difference	(531)	(95)
Balance at end of the year	30,811	32,134

(a)	In September 2023, the Group made an equity investment of USD1,412,000 (equivalent to RMB10,000,000) to acquire 20.00% equity interest of Xiaosheng Xiaoyi, which is a privately held company.

Schedule of equity investments, percentage of ownership of common share


	Percentage of ownership of
	shares as of December 31,
Investee	2022		2023
Equity method investment:
Shenzhen Mojingou Information Services Co., Ltd.	28.77	%	28.77	%
Equity interests without a readily determinable fair value:
Guangzhou Yuechuan Network Technology Co., Ltd. (“Guangzhou Yuechuan”) (note b)	9.30	%	—
Chengdu Diting Technology Co., Ltd.	12.74	%	12.74	%
Shanghai Guozhi Electronic Technology Co., Ltd.	16.80	%	16.80	%
Guangzhou Hongsi Network Technology Co., Ltd.	19.90	%	19.90	%
Xiamen Diensi Network Technology Co., Ltd.	14.25	%	14.25	%
11.2 Capital I, L.P.	2.03	%	2.03	%
Cloudtropy	9.69	%	9.69	%
Lexiang Technology Co., Ltd. (formerly named as “Shanghai Lexiang Technology Co., Ltd.”, “Lexiang”) (note c)	6.49	%	5.81	%
Hangzhou Feixiang Data Technology Co., Ltd.	28.00	%	28.00	%
Shenzhen Meizhi Interactive Technology Co., Ltd. (“Meizhi Interactive”) (note d)	9.40	%	—
Beijing Yunhui Tianxia Technology Co., Ltd.	13.70	%	13.70	%
Yingshi Innovation Technology Co., Ltd. (formerly named as “Shenzhen Arashi Vision Interative Technology Co., Ltd.”)	8.73	%	8.73	%
Beijing Cloudin Technology Co., Ltd.	4.12	%	4.12	%
Quanxun Huiju Networking Technology (Beijing) Co., Ltd. (“Quanxun Huiju”)	5.40	%	5.40	%
Blue Bayread Limited	1.63	%	1.63	%
Clapper Media Group Inc.	9.58	%	9.58	%
Beijing Yunshang Hemei Culture Media Co., Ltd.	10.00	%	10.00	%
Beijing Xiaosheng Xiaoyi Technology Co., Ltd. (“Xiaosheng Xiaoyi”) (note a)	—		20.00	%

Notes :

(a)	In September 2023, the Group made an equity investment of USD1,412,000 (equivalent to RMB10,000,000) to acquire 20.00% equity interest of Xiaosheng Xiaoyi, which is a privately held company.

(b)	In October 2023, the Group disposed of its equity interest in Guangzhou Yuechuan, for which full impairment had been provided in 2018, at a consideration of RMB 1.

(c)	In March 2023, the Group’s interest in Lexiang was diluted to 5.81%, as additional shares were issued by Lexiang, no changes in the carrying value in Lexiang was made as the related transaction did not provide observable price changes to the Group.

(d)	In May 2023, the Group disposed of its equity interest in Meizhi Interactive, for which full impairment had been provided in 2018, at a consideration of RMB 1.

Cash and cash equivalents

12 Months Ended

Dec. 31, 2023

Cash and cash equivalents

Cash and cash equivalents

3. Cash and cash equivalents

Cash and cash equivalents represent cash on hand, cash held at bank, and time deposits placed with banks or other financial institutions, which have original maturities of three months or less. Cash and cash equivalents balance as of December 31, 2022 and 2023 primarily consist of the following currencies:


	December 31, 2022		December 31, 2023
		USD		USD
(In thousands)	Amount	equivalent	Amount	equivalent
RMB	699,666	100,461	648,445	91,553
USD	73,449	73,449	76,636	76,636
SGD	2,370	1,760	3,231	2,446
Hong Kong Dollar	1,223	157	1,275	163
Others	Not applicable	1,327	Not applicable	4
Total		177,154		170,802

As of December 31, 2022 and 2023, included in the cash and cash equivalents are time deposits with original maturities of three months or less of USD54,350,000 and USD72,176,000, respectively.

Taxation - Reconciliation of Total Tax (Benefits) Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Continuing operations
Income tax expenses/(benefits) at PRC statutory rate (based on statutory tax rate applicable to enterprises in China)	$ 3,965	$ 5,047	$ 246
Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC	1,615	1,640	2,571
Non-deductible expenses	306	468	47
Effect of Super Deduction	(3,609)	(2,594)	(2,262)
Effect of tax holidays and tax concessions	(5,121)	(5,243)	(4,100)
Change in valuation allowance of deferred tax assets	7,170	4,709	3,507
Others	(195)	41	(134)
Income tax (benefits)/expenses	$ 4,131	$ 4,068	$ (125)

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

Accrued liabilities and other payables

Share-based compensation

12 Months Ended

Dec. 31, 2023

Share-based compensation

Share-based compensation

18. Share-based compensation

2020 share incentive plan

In June 2020, the Group terminated its share incentive plan adopted in December 2010, November 2013, April 2014 (the “Terminated Plans”) and adopted a 2020 share incentive plan, which is referred to as the 2020 Share Incentive Plan (the “2020 Plan”). The awards that are granted and outstanding under the Terminated Plans remain effective under the 2020 Plan, subject to any amendment and modification to the original award agreements that the Company shall determine.

During the years ended December 31, 2021, 2022 and 2023, the number of vested shares relating to the Terminated Plans was 426,000, 330,000 and 320,000, the number of forfeited shares relating to the Terminated Plans was 210,000, nil and nil, respectively. As of December 31, 2023, the number of unvested shares relating to the Terminated Plans was nil.

Under the 2020 Plan, the maximum aggregate number of shares of the Company that may be granted is 31,000,000, which consists of (i) 21,039,742 common shares reserved for issuance, which were previously reserved under the Terminated Plans but not granted under the Terminated Plans, (ii) 9,667,230 common shares repurchased pursuant to the share repurchase programs authorized by the Company, and (iii) 293,028 common shares reserved for issuance under the 2020 Plan.

In March 2023, the Board of Directors of the Company amended and restated the 2020 Plan, the maximum aggregate number of shares of the Company available for grant of awards was increased from 31,000,000 to 46,561,200. The number of shares available for such grants as of December 31, 2023 is 4,155,445 (2022: 2,202,325).

As of December 31, 2023, the restricted shares units granted to employees and officers (excluding those forfeited) under the 2020 Plan vest as follows:

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

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

(3)

25,141,915 of these restricted shares should be vested over a three-year schedule in which two-third of the restricted shares shall be vested upon the second anniversary and one-third of the restricted shares shall be vested upon the third anniversary of the grant day, respectively. Among which, 1,699,990 shares, 133,335 shares and 333,330 shares were vested in an accelerated manner in June 2022, November 2022 and August 2023, respectively.

(4)

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

(5)	500 of these restricted shares should be vested immediately.

18. Share-based compensation (Continued)

2020 share incentive plan (Continued)

A summary of the restricted shares activities under the 2020 Plan for the years ended December 31, 2021, 2022 and 2023 is presented below:


		Weighted-average
	Number of	grant-date fair
	restricted shares	value (USD)
Unvested as of January 1, 2021	—
Granted	31,091,840	0.83
Vested	(2,429,965)
Forfeited	(2,777,500)
Unvested as of December 31, 2021	25,884,375
Expected to vest as of December 31, 2021	19,413,281
Unvested as of January 1, 2022	25,884,375
Granted	2,200,000	0.31
Vested	(9,509,660)
Forfeited	(1,716,665)
Unvested as of December 31, 2022	16,858,050
Expected to vest as of December 31, 2022	12,643,538
Unvested as of January 1, 2023	16,858,050
Granted	12,485,750	0.36
Vested	(11,195,165)
Forfeited	(491,670)
Unvested as of December 31, 2023	17,656,965
Expected to vest as of December 31, 2023	13,242,724

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

As of December 31, 2023, the total unrecognized compensation expense relating to the restricted shares was USD5,161,700 (2022: USD10,161,200).

Total compensation costs recognized for the years ended December 31, 2021, 2022 and 2023 are as follows:


	Years ended December 31,
(In thousands)	2021	2022	2023
Sales and marketing expenses	59	—	48
General and administrative expenses	4,682	6,855	8,113
Research and development expenses	1,429	1,329	1,515
Total	6,170	8,184	9,676

Note: For the year ended December 31, 2021, 2022 and 2023, the compensation costs recognized in relation to the shares awarded under the Terminated Plans amounted to USD800,700, USD748,800 and USD352,000, respectively.

Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2023 shares
Document and Entity Information
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-35224
Entity Registrant Name	Xunlei Ltd
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	3709 Baishi Road
Entity Address, Address Line Two	Nanshan District
Entity Address, City or Town	Shenzhen
Entity Address, Postal Zip Code	518000
Entity Address, Country	CN
Entity Common Stock, Shares Outstanding	323,525,556
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Auditor Firm ID	1424
Auditor Name	PricewaterhouseCoopers Zhong Tian LLP
Auditor Location	Shenzhen, the People’s Republic of China
Entity Central Index Key	0001510593
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
Business Contact
Document and Entity Information
Entity Address, Address Line One	3709 Baishi Road
Entity Address, Address Line Two	Nanshan District
Entity Address, City or Town	Shenzhen
Entity Address, Postal Zip Code	518000
Entity Address, Country	CN
Contact Personnel Name	Naijiang (Eric) Zhou
Contact Personnel Email Address	zhounaijiang@xunlei.com
City Area Code	+86-0755
Local Phone Number	61111571
ADR
Document and Entity Information
Title of 12(b) Security	American depositary shares
Security Exchange Name	NASDAQ
Trading Symbol	XNET
Common shares
Document and Entity Information
Title of 12(b) Security	Common shares, par value US$0.00025 per share
Security Exchange Name	NASDAQ
Trading Symbol	XNET

Accrued liabilities and other payables (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Accrued Liabilities and Other Payables


(In thousands)	December 31, 2022	December 31, 2023
Payroll and welfare	23,277	24,702
Tax levies	4,178	7,879
Payables related to Xunlei Kankan	2,418	—
Payables for advertisement	1,980	3,473
Legal and litigation related expenses (note 25)	634	1,168
Professional service fees	1,656	1,273
Agency commissions and rebates from online advertising	2,525	—
Payables for office building	8,528	8,623
Payables related to share repurchase	1,120	2,774
Others	3,122	3,816
Total	49,438	53,708

Intangible assets, net - Estimated aggregate amortization expense (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Intangible assets, net
2024	$ 1,016
2025	925
2026	913
2027	366
2028 and thereafter	$ 2,477

Property and equipment, net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property and equipment, net
Total original costs	$ 76,957	$ 74,535
Less: Accumulated depreciation	(15,704)	(12,801)
Less: Accumulated impairment	(1,225)
Total	60,028	61,734
Office building (note)
Property and equipment, net
Total original costs	48,323	47,902
Servers and network equipment
Property and equipment, net
Total original costs	15,471	15,065
Furniture, fixtures and office equipment
Property and equipment, net
Total original costs	2,110	790
Computer equipment
Property and equipment, net
Total original costs	1,811	1,624
Motor vehicles
Property and equipment, net
Total original costs	517	449
Building decoration and leasehold improvements
Property and equipment, net
Total original costs	$ 8,725	$ 8,705

Accounts receivable, net - Additional Information (Details) - customer	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accounts receivable, net
Number of top customers	10
Credit concentration risk [Member] \| Accounts receivable \| Top 10 customers
Accounts receivable, net
Accounts receivable, percentage	76.00%	86.00%
Credit concentration risk [Member] \| Accounts receivable \| Customer A
Accounts receivable, net
Accounts receivable, percentage	30.00%	39.00%
Credit concentration risk [Member] \| Accounts receivable \| Customer B
Accounts receivable, net
Accounts receivable, percentage		12.00%
Credit concentration risk [Member] \| Accounts receivable \| Customer C
Accounts receivable, net
Accounts receivable, percentage	18.00%	17.00%

Long-term investments - Group's ownership of the long-term investments (Details)	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Shenzhen Mojingou Information Service Co., Ltd
Equity method investments:
Equity method investments, Percentage of ownership of common share	28.77%		28.77%
Guangzhou Yuechuan
Cost method investments:
Cost method investments, Percentage of ownership of common share			9.30%
Chengdu Diting
Cost method investments:
Cost method investments, Percentage of ownership of common share	12.74%		12.74%
Shanghai Guozhi
Cost method investments:
Cost method investments, Percentage of ownership of common share	16.80%		16.80%
Guangzhou Hongsi
Cost method investments:
Cost method investments, Percentage of ownership of common share	19.90%		19.90%
Xiamen Diensi
Cost method investments:
Cost method investments, Percentage of ownership of common share	14.25%		14.25%
11.2 Capital
Cost method investments:
Cost method investments, Percentage of ownership of common share	2.03%		2.03%
Cloudtropy
Cost method investments:
Cost method investments, Percentage of ownership of common share	9.69%		9.69%
Shanghai Lexiang
Cost method investments:
Cost method investments, Percentage of ownership of common share	5.81%	5.81%	6.49%
Hangzhou Feixiang
Cost method investments:
Cost method investments, Percentage of ownership of common share	28.00%		28.00%
Shenzhen Meizhi Interactive Technology Co Ltd
Cost method investments:
Cost method investments, Percentage of ownership of common share			9.40%
Beijing Yunhui Tianxia
Cost method investments:
Cost method investments, Percentage of ownership of common share	13.70%		13.70%
Shen Zhen Arashi
Cost method investments:
Cost method investments, Percentage of ownership of common share	8.73%		8.73%
Beijing Cloudin Technology
Cost method investments:
Cost method investments, Percentage of ownership of common share	4.12%		4.12%
Quanxun Huiju
Cost method investments:
Cost method investments, Percentage of ownership of common share	5.40%		5.40%
Blue Bayread Limited
Cost method investments:
Cost method investments, Percentage of ownership of common share	1.63%		1.63%
Clapper Media Group Inc.
Cost method investments:
Cost method investments, Percentage of ownership of common share	9.58%		9.58%
Yunshang Hemei
Cost method investments:
Cost method investments, Percentage of ownership of common share	10.00%		10.00%
Beijing Xiaosheng Xiaoyi Technology
Cost method investments:
Cost method investments, Percentage of ownership of common share	20.00%

Bank borrowings (Tables)

12 Months Ended

Dec. 31, 2023

Bank borrowings

Schedule of bank borrowings


	December 31,	December 31,
(In thousands)	2022	2023
Bank borrowings, current portion	7,024	6,906
Bank borrowings, non-current portion	24,750	15,539
Total	31,774	22,445

Schedule of maturity of bank borrowings

As of December 31, 2023, the bank borrowings will be due according to the following schedule:


(In thousands)		Principal amounts
Within 1 year		6,906
Between 1 to 2 years		6,906
Between 2 to 3 years		6,906
Between 3 to 4 years		1,727

Long-term investments - Additional Information (Details)	1 Months Ended				12 Months Ended
	Oct. 31, 2023 CNY (¥)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 CNY (¥)	May 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2023	Dec. 31, 2022
Long-term investments
Proceeds from disposal of long-term investments \| $					$ 22,000	$ 42,000
Shanghai Lexiang
Long-term investments
Cost method investments, Percentage of ownership of common share					5.81%		5.81%	6.49%
Guangzhou Yuechuan
Long-term investments
Cost method investments, Percentage of ownership of common share								9.30%
Proceeds from disposal of long-term investments	¥ 1
Shenzhen Meizhi Interactive Technology Co Ltd
Long-term investments
Cost method investments, Percentage of ownership of common share								9.40%
Proceeds from disposal of long-term investments				¥ 1
Beijing Xiaosheng Xiaoyi Technology
Long-term investments
Payments to acquire equity method investments		$ 1,412,000	¥ 10,000,000
Cost method investments, Percentage of ownership of common share					20.00%
Cost Method Investments, Ownership Percentage Acquired		20.00%	20.00%

Intangible assets, net - Amortization expense recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Intangible assets, net
Amortization expense	$ 1,101	$ 1,086	$ 1,129
Costs of revenues
Intangible assets, net
Amortization expense	53	54	10
Research and development expenses
Intangible assets, net
Amortization expense			6
General and administrative expenses
Intangible assets, net
Amortization expense	$ 1,048	$ 1,032	$ 1,113

Other income, net (Tables)

12 Months Ended

Dec. 31, 2023

Other income, net

Schedule of other income, net


	Years ended December 31,
(In thousands)	2021	2022	2023
Gains from reversal of long outstanding payables	—	3,239	6,831
Investment income from short-term investments (note)	2,486	2,903	4,354
Government subsidy income	3,206	2,377	2,360
Exchange (losses)/gains, net	(1,205)	4,494	1,693
VAT deduction	818	1,220	840
Net unrealized gains arising from long-term investments	—	437	—
Impairment on long-term investments	—	(590)	—
Rental income	—	—	199
Others	(627)	(535)	627
Total	4,678	13,545	16,904

Contract liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Contract liabilities

Schedule of Contract liabilities


(In thousands)	December 31, 2022	December 31, 2023
Contract liabilities (note a)
Membership subscription	37,721	35,969
Live streaming	969	830
Others	1,153	422
Total	39,843	37,221
Less: non-current portion (note b)	(876)	(846)
Contract liabilities, current portion	38,967	36,375

Notes:

(a)

(b)	As of December 31, 2022 and 2023, the non-current portion consists of membership subscription of USD876,000 and USD846,000, respectively.

Intangible assets, net - Weighted average amortization periods of intangible assets (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Intangible assets, net
Total weighted average amortization periods	10 years	10 years
Land use rights
Intangible assets, net
Total weighted average amortization periods	30 years	30 years
Audio-visual license
Intangible assets, net
Total weighted average amortization periods	9 years	9 years
Acquired computer software
Intangible assets, net
Total weighted average amortization periods	5 years	5 years

Accounts receivable, net - Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts receivable, net
Accounts receivable	$ 32,232	$ 31,192
Less: Allowance for current expected credit losses	(1,022)	(1,429)	$ (1,764)	$ (9,329)
Accounts receivable, net	$ 31,210	$ 29,763

Commitments and contingencies - Additional Information (Details) ¥ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) case	Dec. 31, 2023 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Commitments and contingencies
Legal and litigation related expenses	$ 935,000		$ 188,000	$ 997,000
Number of lawsuits pending \| case	14
Legal and litigation related expenses	$ 1,168,000		634,000
Pending Litigation
Commitments and contingencies
Number of lawsuits pending \| case	14
Aggregate amount of claimed damages	$ 2,900,000	¥ 20.1	800,000
Legal and litigation related expenses	$ 1,168,000		$ 634,000

Operating lease assets and lease liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Operating lease assets and lease liabilities

Schedule of operating lease assets that are amortized over the lease term of greater than one year


(In thousands)		Office leases
Net book amount as of January 1, 2022		27
Additions		920
Amortization		(56)
Effect of foreign currency exchange differences		(26)
Net book amount as of December 31, 2022		865
Additions		927
Amortization		(551)
Modification		(652)
Effect of foreign currency exchange differences		(14)
Net book amount as of December 31, 2023		575