Core Viewpoint - Xunlei Limited announces the resignation of independent director Mr. Ya Li and the appointment of Mr. He Huang as his replacement, effective November 14, 2024, highlighting a transition in the company's board composition [1][3]. Company Overview - Xunlei Limited, founded in 2003, is a leading technology company in China that provides distributed cloud services, including cloud acceleration, shared cloud computing, and digital entertainment, aimed at delivering an efficient and safe internet experience [4]. Leadership Changes - Mr. Ya Li has resigned for personal reasons, and Mr. He Huang has been appointed as an independent director, also joining the compensation committee, audit committee, and corporate governance and nominating committee [1][2]. - Mr. He Huang has a background as the CEO of Beijing Duwo Technology Co., Ltd. since 2015 and holds degrees in computer science from Beijing University of Technology [2]. Management Statements - The CEO of Xunlei, Mr. Jinbo Li, expressed gratitude for Mr. Ya Li's contributions and welcomed Mr. He Huang, emphasizing confidence in his ability to provide valuable insights and enhance strategic decision-making [3].

SHENZHEN, China, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Xunlei Limited (“Xunlei” or the “Company”) (NASDAQ: XNET), a leading technology company providing distributed cloud services in China, today announced that it plans to release its unaudited financial results for the third quarter ended September 30, 2024 before market opens on Thursday, Nov 14, 2024. The earnings press release will be available on the Company's investor relations page at http://ir.xunlei.com. Conference Call Xunlei's management will host a ...

SHENZHEN, China, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Xunlei Limited (“Xunlei” or the “Company”) (Nasdaq: XNET), a leading technology company providing distributed cloud services in China, today announced that the board of directors of the Company has appointed Mr. Hui Duan and Mr. Xiaosong Li as members of the board of directors of the Company, effective today. Mr. Hui Duan had served as a director of Xunlei from April 2020 to September 2023. He currently serves as the Chief Technology Officer of Beijing Itu ...

Financial Data and Key Metrics Changes - Total revenues for Q2 2024 were $79.6 million, a decrease of 23.7% year-over-year, primarily due to reduced revenues from the live streaming business [11] - Subscription revenues increased to $32.9 million, reflecting a year-over-year growth of 10.8%, driven by an increase in the subscriber base to 5.71 million [12] - Cloud computing revenues decreased by 13.8% year-over-year to $26.4 million, attributed to reduced sales volume and competition [13] - Gross profit was $14.7 million, down 11.3% year-over-year, with a gross profit margin of 51.1%, an increase from 44% in the same period of 2023 [15] - Net income attributable to common shareholders was $4.8 million, compared to $5 million in the same period of 2023, with diluted earnings per ADS at approximately $0.04 [18] Business Line Data and Key Metrics Changes - The subscription business saw a significant increase in user engagement, with a growth of about 1 million users over the past year [6] - The cloud computing business faced challenges, leading to a revenue decline of $26.4 million, a decrease of 13.8% year-over-year [8] - Revenue from live streaming and IVAS reached $20.3 million, showing a quarter-over-quarter increase of 18.7% but a year-over-year decline of 53.9% due to strategic downsizing [9][13] Market Data and Key Metrics Changes - The company is focusing on expanding its overseas market to mitigate the decline in domestic audio live streaming revenues [9] - The average revenue per subscriber decreased to RMB 39.5 from RMB 42.9 year-over-year, attributed to increased promotional activities [12] Company Strategy and Development Direction - The company aims to maintain its position as a leading distributed cloud service provider by focusing on innovation and user-centric strategies [10] - Xunlei has launched a new browser that integrates with its subscription services, enhancing user experience and engagement [6][22] - The company is exploring strategic partnerships to drive growth and improve product exposure [22] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitability and highlighted the importance of adapting strategies to the evolving industrial landscape [8][10] - The company anticipates total revenues for Q3 2024 to be between $81 million and $86 million, indicating a quarter-over-quarter increase of approximately 4.9% [20] Other Important Information - The company has authorized a share repurchase program of up to $20 million, with approximately $4.7 million spent as of June 30, 2024 [19] - Cash, cash equivalents, and short-term investments totaled $263.4 million as of June 30, 2024, down from $272.5 million as of March 31, 2024 [18] Q&A Session Summary Question: Any new initiatives for the subscription business? - Management highlighted the evolution of the subscription product over 20 years, incorporating new features and launching a browser that synergizes with existing services, receiving positive user feedback [22] Question: Will the company consider dividends to boost investor confidence? - Management stated that the Board has not discussed any relief measures yet but will keep investors updated, focusing on capital allocation for growth opportunities [24]

SHENZHEN, China, Aug. 13, 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 second quarter ended June 30, 2024. Second quarter 2024 Financial Highlights: Total revenues were US$79.6 million, representing a decrease of 23.7% year-over-year. Cloud computing revenues were US$26.4 million, representing a decrease of 13.8% year-over-year. Subscripti ...

Call End: Xunlei Limited (NASDAQ:XNET) Q1 2024 Earnings Call Transcript May 16, 2024 08:00 AM ET Company Participants Luhan Tang - Investor Relations Manager Jinbo Li - Chairman and Chief Executive Officer Eric Zhou - Chief Financial Officer Conference Call Participants Operator Welcome, ladies and gentlemen, and thank you for your patience. You've joined Xunlei's First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference ...

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 r ...

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 ...

SHENZHEN, China, April 24, 2024 (GLOBE NEWSWIRE) -- Xunlei Limited ("Xunlei" or the "Company") (NASDAQ:XNET), a leading technology company providing distributed cloud services in China, today announced that it filed its annual report on Form 20-F for the fiscal year ended December 31, 2023 with the Securities and Exchange Commission (the "SEC") on April 23, 2024. The annual report can be accessed on the Company's investor relations website at http://ir.xunlei.com or the SEC's website at www.sec.gov. About X ...

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]