Xunlei(US:XNET) Sou Hu Cai Jing·2026-01-19 04:18Core Viewpoint - The former CEO of Xunlei, Chen Lei, is facing legal action for allegedly embezzling approximately 200 million yuan through a shell company named "Xing Rong He" during his tenure, while also engaging in unethical personal relationships within the company [8][19][21]. Group 1: Embezzlement and Misconduct - Chen Lei utilized a shell company, Xing Rong He, to siphon off nearly 200 million yuan from Xunlei under the guise of service fees [13][19]. - He was reported to have transferred 20 million yuan just 72 hours before his dismissal from the company [19]. - Chen Lei's actions included hiring relatives of his mistress, Dong Xue, as key personnel in the company, including a 60-year-old farmer as a technical consultant for 2 million yuan [8][9][13]. Group 2: Personal Relationships and Company Culture - Chen Lei had an extramarital affair with Dong Xue, a former senior vice president at Xunlei, and they reportedly had a child together [9][19]. - The couple's relationship was an open secret within the company, leading to dissatisfaction among the board members [9][19]. - Chen Lei's management style was described as authoritarian, with reports of him forcing employees to sing praises at company events and creating a personal kingdom within the organization [13][19]. Group 3: Legal Proceedings and Company Recovery - Following the discovery of Chen Lei's misconduct, Xunlei's board dismissed him and initiated legal proceedings to recover the embezzled funds [19]. - Xunlei has since shown signs of recovery, with a reported revenue increase of 57.7% in Q3 of the previous year [9][19]. - The company has reiterated its commitment to combating corruption and ensuring accountability within its ranks [9][19].