Xunlei Limited Announces Entry into Definitive Agreements for Disposition of Majority Equity Interest in Shenzhen Onething

Core Viewpoint - Xunlei Limited has announced a transaction to transfer a 50% equity interest in Shenzhen Onething Technology Co., Ltd. for a total cash consideration of RMB125 million, which will result in Xunlei retaining a 20% stake in Shenzhen Onething after the transaction [1][3][9] Group 1: Transaction Details - Shenzhen Xunlei will transfer 20% of its equity interest in Shenzhen Onething to Wuhan Kingsoft Cloud for RMB50 million and 30% to Shenzhen Xinghan Zhilian for RMB75 million [2] - The transaction will reduce Xunlei's ownership in Shenzhen Onething from 70% to 20%, meaning it will no longer consolidate Shenzhen Onething's financial results post-transaction [3][9] - The transaction consideration was determined based on Shenzhen Onething's unaudited net asset value, market conditions, and the equity interest percentages being acquired [4] Group 2: Payment Structure - The payment obligations for Wuhan Kingsoft Cloud and Xinghan Zhilian are separate, with Xinghan Zhilian paying RMB15 million within ten business days and the remaining RMB60 million on closing, while Wuhan Kingsoft Cloud will pay RMB50 million in a single installment [5] - The transaction is subject to various closing conditions, including corporate approvals and compliance with U.S. Securities and Exchange Commission disclosure obligations [6] Group 3: Governance and Evaluation - A shareholders agreement has been established to govern Shenzhen Onething post-closing [7] - The audit committee of Xunlei's board, with the assistance of an independent financial advisor, evaluated and negotiated the transaction, concluding it is in the company's best interest [8][9] Group 4: Financial Performance of Shenzhen Onething - Shenzhen Onething reported a profit before tax of RMB12.4 million for the year ended December 31, 2025, compared to a loss of RMB21.3 million in 2024 [15] - The total assets of Shenzhen Onething increased from RMB398.0 million in 2024 to RMB522.1 million in 2025, while net liabilities decreased from RMB668.2 million to RMB240.0 million during the same period [15]