SHENZHEN, China, May 16, 2024 (GLOBE NEWSWIRE) -- Xunlei Limited ("Xunlei" or the "Company") (Nasdaq: XNET), a leading technology company providing distributed cloud services in China, today announced its unaudited financial results for the first quarter ended March 31, 2024. First Quarter 2024 Financial Highlights: Total revenues were US$80.4 million, representing a decrease of 19.0% year-over-year. Cloud computing revenues were US$30.2 million, representing a decrease of 7.8% year-over-year. Subscription ...

Core Viewpoint - Xunlei Limited reported a decrease in total revenues for Q1 2024, primarily driven by a significant decline in live streaming revenues, while subscription revenues showed growth, indicating a mixed performance in its business segments [2][4][5]. Financial Highlights - Total revenues for Q1 2024 were US$80.4 million, a decrease of 19.0% year-over-year [2][4]. - Cloud computing revenues were US$30.2 million, down 7.8% year-over-year [2][4]. - Subscription revenues increased to US$33.1 million, reflecting a growth of 12.9% year-over-year [2][5]. - Live streaming and other IVAS revenues fell to US$17.1 million, a decrease of 54.1% year-over-year [2][6]. - Gross profit was US$42.8 million, up 8.2% year-over-year, with a gross profit margin of 53.3% compared to 39.9% in Q1 2023 [2][9]. - Net income for the quarter was US$3.6 million, compared to US$1.2 million in the same period of 2023 [2][15]. - Non-GAAP net income was US$4.5 million, down from US$5.5 million year-over-year [2][15]. Revenue Breakdown - The decline in total revenues was mainly due to reduced revenues from the live streaming business, attributed to downsizing operations since June 2023 [4][6]. - The increase in subscription revenues was driven by a larger premium subscriber base, which grew to 5.76 million from 4.84 million year-over-year [5]. - The average revenue per subscriber decreased to RMB39.5 from RMB41.0, influenced by promotional activities [5]. Cost and Profitability - Costs of revenues were US$37.1 million, representing 46.2% of total revenues, down from 59.8% in the same period of 2023 [7]. - Bandwidth costs were US$27.1 million, accounting for 33.8% of total revenues, a decrease from 29.3% year-over-year [7]. - Operating income was US$4.0 million, an increase from US$0.7 million in Q1 2023 [13]. Cash Position and Share Repurchase - As of March 31, 2024, the company had cash, cash equivalents, and short-term investments totaling US$272.5 million, slightly up from US$271.9 million at the end of 2023 [16]. - The company initiated a share repurchase program in June 2023, with approximately US$4.7 million spent on buybacks by March 31, 2024 [17]. Guidance - For Q2 2024, Xunlei estimates total revenues to be between US$79 million and US$84 million, indicating a potential quarter-over-quarter increase of approximately 1.4% [18].

Core Viewpoint - Xunlei Limited has filed its annual report on Form 20-F for the fiscal year ended December 31, 2023, with the SEC, indicating ongoing compliance and transparency in its financial reporting [1]. Company Overview - Xunlei Limited, founded in 2003, is a leading technology company in China that provides distributed cloud services [2]. - The company offers a variety of products and services, including cloud acceleration, shared cloud computing, and digital entertainment, aimed at delivering an efficient, smart, and safe internet experience [2].

Financial Performance - Revenues from the variable interest entity accounted for 90.67% of total revenues in 2023, compared to 88.12% in 2022 and 95.47% in 2021[17] - For the year ended December 31, 2023, the consolidated group reported third-party total revenues of US$364.911 million[40] - The net income attributable to Xunlei Limited for the year ended December 31, 2023, was US$14.225 million[40] - The net income attributable to Xunlei Limited for the year ended December 31, 2022, was US$21.463 million[38] - The company reported a profit from subsidiaries and consolidated VIE of US$16.948 million for the year ended December 31, 2023[40] - In 2022, third-party total revenues amounted to US$342.564 million, with third-party costs of revenues at US$200.054 million[36] Debt and Financing - The variable interest entity received debt financing of US$25.5 million in 2022, but only US$0.4 million in 2023[29] - For the year ended December 31, 2023, the company reported a significant decrease in debt financing received by the variable interest entity compared to previous years[29] - The company incurred $12.9 million in fees related to technical services provided by its WFOE for the year ended December 31, 2023, with an unsettled balance of $17.5 million[49] - The company experienced a net cash used in financing activities of $13,524 thousand in 2023, compared to a net cash generated of $6,641 thousand in 2022[47] Regulatory Compliance - Shenzhen Xunlei is in the process of renewing its Internet Publishing Services License, which expired on September 17, 2022[27] - The company has obtained the necessary licenses for its operations, but uncertainties remain regarding future regulatory compliance[25] - The PCAOB has determined it can inspect registered public accounting firms in mainland China and Hong Kong, affecting the company's compliance status under the HFCAA[23] - The company may face restrictions on dividend payments from its PRC subsidiaries due to PRC laws and regulations[30] - The company is subject to various PRC government regulations, including the requirement to complete record filing for internet application programs by March 2024[113] - The company may face administrative penalties or removal of mobile applications if it fails to comply with privacy regulations, as evidenced by past regulatory actions[103] Assets and Liabilities - Total assets increased to $468.686 million as of December 31, 2023, compared to $463.323 million in the previous year, reflecting a growth of approximately 1.6%[42] - Total liabilities decreased to $145.213 million from $154.902 million, showing a reduction of about 6.3%[42] - As of December 31, 2023, the restricted amounts for the PRC subsidiaries and the variable interest entity totaled US$173.2 million[31] - Amount due from group companies, non-current portion, was reported at $199.864 million, indicating a decrease from $229.187 million, a reduction of about 12.7%[42] Cash Flow - For the year ended December 31, 2023, net cash generated from operating activities was $25,716 thousand, compared to a net cash used of $5,942 thousand in the previous year[47] - The company reported a net cash generated from investing activities of $1,843 thousand in 2023, a significant improvement from a net cash used of $15,510 thousand in 2022[47] - The company’s total cash and cash equivalents at the beginning of the year were $184,808 thousand, reflecting a decrease of $11,706 thousand by the end of the year[47] Market and Competition - The company is focusing on market expansion and new product development strategies to enhance future growth prospects[42] - The company faces significant competition in the cloud computing sector from major players like Alibaba and Tencent, which may impact its market share[129] - The company may face challenges in retaining its user base and converting users into subscribers due to competition and changing user preferences[66] Risks and Challenges - The company is subject to various risks in international operations, including compliance with foreign laws and regulations[70] - The company may face challenges in effectively managing the supply and pricing of virtual items, impacting its revenue model for live streaming[84] - A severe or prolonged downturn in the global or Chinese economy could materially and adversely affect the company's business and financial condition[147] - The company may face risks associated with strategic alliances, investments, or acquisitions, which could adversely affect its business and reputation[143] Intellectual Property and Security - The company may not be able to prevent unauthorized use of its intellectual property, which could harm its competitiveness and financial condition[80] - The company has established information security systems to protect user privacy and comply with evolving data protection laws, including the PRC Personal Information Protection Law[102] - The company does not maintain insurance policies for network system losses due to limited available products in the Chinese insurance market, increasing financial risk[98] Shareholder and Equity Matters - Xunlei Limited has not declared or paid any cash dividends and intends to retain most of its available funds for business development[32] - The company may continue to grant share awards under its share incentive plans, potentially increasing share-based compensation expenses[136] - The company believes that granting incentive awards is crucial for attracting and retaining key personnel, which may lead to increased expenses associated with share-based compensation in the future[138] Regulatory Environment - The PRC government has intensified regulations on internet content, leading to a decline in user subscriptions due to compliance efforts[187] - The complexities of PRC regulations may result in non-compliance risks and additional costs for compliance activities, affecting business operations[193] - The evolving PRC legal system poses risks of potential violations of existing or future laws, which could adversely affect business operations[196]

Xunlei Limited (NASDAQ:XNET) Q4 2023 Results Conference Call March 14, 2024 8:00 AM ET Company Participants Luhan Tang - Investor Relations Manager Jinbo Li - Chairman and Chief Executive Officer Eric Zhou - Chief Financial Officer Operator Welcome, ladies and gentlemen, and thank you for your patience. You've joined Xunlei's Fourth Quarter and Fiscal Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. I w ...

Xunlei Limited (NASDAQ:XNET) Q3 2023 Results Conference Call November 14, 2023 8:00 AM ET Company Participants Luhan Tang - IR Jinbo Li - Chairman and CEO Eric Zhou - Chief Financial Officer Operator Welcome, ladies and gentlemen, and thank you for your patience. You joined Xunlei's 2023 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. I would now like to turn the call over to your host, Investor R ...

Xunlei Limited (NASDAQ:XNET) Q2 2023 Earnings Conference Call August 15, 2023 8:00 AM ET Company Participants Luhan Tang - IR Manager Jinbo Li - Chairman & CEO Eric Zhou - CFO Conference Call Participants Operator Welcome, ladies and gentlemen, and thank you for your patience. You've joined Xunlei's 2023 Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. I would now like to turn the call over to the ...

Exhibit 99.1 XUNLEI ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2023 Shenzhen, China, August 15, 2023 (GLOBE NEWSWIRE) - Xunlei Limited ("Xunlei" or the "Company") (NASDAQ: XNET), a leading innovator in shared cloud computing and blockchain technology in China, today announced its unaudited financial results for the second quarter ended June 30, 2023. Second Quarter 2023 Financial Highlights: · Total revenues were US$104.3 million, an increase of 33.3% year-over-year. · Cloud ...

Xunlei Limited (NASDAQ:XNET) Q1 2023 Earnings Conference Call May 16, 2023 8:00 AM ET Company Participants Luhan Tang - IR Manager Jinbo Li - Chairman & CEO Eric Zhou - CFO Operator Welcome, ladies and gentlemen, and thank you for your patience. You've joined Xunlei's 2023 First Quarter Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the call over to the host, Investor Relations Manager, Ms. Luhan Tang. Please go ahead. ...

[Supplemental Submission Regarding HFCAA](index=2&type=section&id=Supplemental%20Submission%20Pursuant%20to%20Item%2016I(a)%20of%20Form%2020-F) This submission addresses the company's HFCAA identification and asserts it is not controlled by a Chinese governmental entity [Background and Purpose of Submission](index=2&type=section&id=Background%20and%20Purpose%20of%20Submission) The company explains its HFCAA identification and the purpose of this submission to prove non-government control - On May 26, 2022, the SEC conclusively identified Xunlei Limited as a **Commission-Identified Issuer** pursuant to the HFCAA[4](index=4&type=chunk) - The identification resulted from the company's 2021 annual report being audited by PricewaterhouseCoopers Zhong Tian LLP, a firm in a jurisdiction the **PCAOB could not fully inspect** until December 2022[4](index=4&type=chunk) - The company asserts that the information provided in this report establishes that it is **not owned or controlled by a governmental entity** in China[4](index=4&type=chunk) [Analysis of Ownership and Control](index=2&type=section&id=Analysis%20of%20Ownership%20and%20Control) The company details its ownership structure to demonstrate a lack of Chinese government control or influence Major Shareholders (as of March 31, 2023) | Shareholder | Beneficial Ownership & Voting Power | Key Details | | :--- | :--- | :--- | | Itui International Inc. | 41.1% | Beneficially owned by Mr. Jinbo Li (Chairman & CEO) and Best Ventures Limited (wholly owned by Xiaomi Corporation) | | Sean Shenglong Zou | 7.1% | Co-founder and director, holding shares through various entities | - Mr. Jinbo Li (Chairman and CEO) and Best Ventures Limited (a Xiaomi subsidiary) are deemed beneficial owners of the **41.1% stake** held by Itui International Inc[6](index=6&type=chunk) - The company states that to its knowledge, **Xiaomi Corporation is not owned or controlled** by a governmental entity of mainland China[6](index=6&type=chunk) - The company affirms it is not aware of any Chinese governmental entity that has the power to direct or cause the direction of its management and policies[8](index=8&type=chunk) [Signatures](index=4&type=section&id=Signatures) This section provides the official authorization and signature for the submitted report [Authorization](index=4&type=section&id=Authorization) The report was duly authorized and signed on behalf of Xunlei Limited on April 26, 2023 - The report was signed by **Naijiang (Eric) Zhou, Chief Financial Officer** of Xunlei Limited[9](index=9&type=chunk) - The date of the signature is **April 26, 2023**[9](index=9&type=chunk)