Core Viewpoint - Xunlei Limited has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, 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 diverse range of products and services, including cloud acceleration, shared cloud computing, and digital entertainment, aimed at delivering an efficient, smart, and safe internet experience [2].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ OR ☐ SHELL COMPANY ...

Xunlei Limited (NASDAQ: XNET ), a provider of digital entertainment, cloud computing and distributed cloud services in China, was by no means alone in getting whacked, but the stock has nonetheless been adversely affected by the recent selloff in stocks, which cameWelcome to my author's site. As an avid follower of SeekingAlpha, I take great interest in articles posted as the subject matter is often something that appeals to me. However, I will sometimes encounter an article that I might not agree with. My ...

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1][10]. Core Insights - The company, Xunlei (XNET), reported a total revenue of $324 million for 2024, a year-on-year decrease of 11.1%. The revenue for Q4 was $84 million, showing a year-on-year increase of 9.3%. The gross margin improved to 51.7%, up by 7.0 percentage points from the previous year. The net profit attributable to shareholders was $1.2 million, with a net profit margin of 0.4%, down by 3.5 percentage points year-on-year. The Non-GAAP net profit was $24 million, with a Non-GAAP net margin of 7.4%, an increase of 0.8 percentage points year-on-year [4][6][7]. Revenue Breakdown - Membership business revenue reached $134 million, up 12.0% year-on-year, driven by an increase in membership numbers, which grew to 6.38 million by the end of 2024 from 5.99 million in 2023. Cloud computing revenue was $105 million, down 15.3% year-on-year due to intensified competition and pricing pressures. Revenue from live streaming and other internet value-added services was $86 million, down 29.5% year-on-year, primarily due to a reduction in domestic live streaming activities [6][9]. Financial Projections - The company forecasts total revenues of $370 million, $421 million, and $464 million for 2025, 2026, and 2027, respectively, representing year-on-year growth rates of 15%, 14%, and 10%. The net profit attributable to shareholders is projected to be $1.9 million, $2.2 million, and $2.5 million for the same years, with growth rates of 1,453%, 18%, and 13% respectively [8][9]. Strategic Developments - Xunlei has reached an agreement to acquire the operating company of Hupu for RMB 500 million, expected to positively impact profitability. Additionally, the company will hold a 7.8% stake in Ying Shi Innovation, a provider of panoramic camera solutions, which is set to go public on the Shanghai Stock Exchange [9][10].

Financial Data and Key Metrics Changes - In Q4 2024, total revenues were $84.3 million, representing a 9.3% year-over-year increase [22] - Subscription revenues were $34.4 million, a 9% year-over-year increase, with total subscribers reaching 6.38 million, up from 5.99 million in the previous year [23] - Cloud computing revenues fell to $22.7 million, a decrease of 25.6% year-over-year [24] - Live-streaming and IVAS revenues increased to $27.2 million, reflecting an 80.7% year-over-year growth [24] - Operating loss was $20.5 million, compared to an operating loss of $0.7 million in the same period of 2023 [31] - Net loss was $9.9 million, compared to net income of $3.7 million in the same period of 2023 [31] - Non-GAAP net income was $11.3 million, compared to $4.5 million in the same period of 2023 [32] Business Line Data and Key Metrics Changes - Subscription business generated $34.4 million in Q4, with a subscriber count of 6.38 million, up from 5.99 million [23] - Cloud computing revenue decreased by 25.6% year-over-year to $22.7 million due to increased competition and pricing pressure [24][14] - Live-streaming and IVAS revenue surged to $27.2 million, an 80.7% increase year-over-year, driven by growth in overseas audio live-streaming [24][16] Market Data and Key Metrics Changes - The cloud computing sector faced challenges from heightened competition and regulatory changes, impacting revenue [15] - The live-streaming business pivoted towards emerging markets like Southeast Asia and EMEA, resulting in significant revenue growth [16] Company Strategy and Development Direction - The company aims to continue its strategic transformation and growth initiatives, including the acquisition of Hupu to enhance its community and content offerings [18][19] - Focus on integrating advanced technologies to improve user engagement and operational efficiency [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged intensified competition and pricing pressures in the cloud computing sector, which affected revenue [9][15] - The company is optimistic about future growth, particularly in the subscription and live-streaming segments, and plans to explore corporate restructuring for better focus [18][19] Other Important Information - A non-cash goodwill impairment of $20.7 million was recorded due to the decline in cloud computing revenue [27][40] - Cash, cash equivalents, and short-term investments increased to $287.5 million as of December 31, 2024, compared to $271.9 million a year earlier [42] Q&A Session Summary Question: What is the company's plan following the IPO and will the company sell shares? - Management indicated it is too early to address the question as the IPO has not been completed yet, but expressed confidence in the company's future success [46][47] Question: What is the business model of Hupu and its revenue and profit conditions? - Hupu operates as a sports blog providing comprehensive sports coverage and generates revenue primarily from advertising. The acquisition is expected to be earnings accretive after closing [48][50]

Core Viewpoint - Xunlei Limited reported its financial results for Q4 and full year 2024, highlighting a significant impairment charge to goodwill and a notable decline in cloud computing revenue, while subscription and live-streaming revenues showed growth [1][2][14]. Financial Highlights - **Fourth Quarter 2024 Financial Results** - Total revenues reached US$84.3 million, up 9.3% year-over-year [2][4]. - Subscription revenues were US$34.4 million, an increase of 9.0% year-over-year [2][5]. - Cloud computing revenues fell to US$22.7 million, down 25.6% year-over-year [2][6]. - Live-streaming and other IVAS revenues surged to US$27.2 million, up 80.7% year-over-year [2][7]. - Gross profit was US$43.6 million, reflecting an 8.7% increase year-over-year, with a gross profit margin of 51.7% [2][10]. - Net loss was US$9.9 million, compared to a net income of US$3.7 million in Q4 2023 [2][17]. - Non-GAAP net income was US$11.3 million, up from US$4.5 million in the same period last year [2][17]. - Diluted loss per ADS was US$0.16, compared to diluted earnings of US$0.06 in Q4 2023 [2][18]. - **Full Year 2024 Financial Results** - Total revenues were US$324.4 million, down 11.1% year-over-year [22]. - Subscription revenues increased to US$133.7 million, up 12.0% year-over-year [23]. - Cloud computing revenues decreased to US$104.6 million, down 15.3% year-over-year [24]. - Live-streaming and other IVAS revenues fell to US$86.1 million, down 29.5% year-over-year [25]. - Gross profit for the year was US$167.6 million, a 2.8% increase year-over-year, with a gross profit margin of 51.7% [29]. - Net income was US$0.7 million, down from US$14.3 million in the previous year [36]. - Non-GAAP net income remained stable at US$23.9 million [36]. Cost Structure - **Costs of Revenues** - Costs of revenues totaled US$40.4 million in Q4 2024, representing 47.9% of total revenues [8]. - Bandwidth costs were US$23.9 million, accounting for 28.3% of total revenues, down from 34.2% in Q4 2023 [9]. - **Operating Expenses** - Research and development expenses were US$18.7 million, 22.2% of total revenues [11]. - Sales and marketing expenses increased to US$12.5 million, 14.8% of total revenues [12]. - General and administrative expenses were US$12.1 million, 14.4% of total revenues [13]. Impairment and Losses - An impairment charge of US$20.7 million was recorded in Q4 2024 due to a decline in cloud computing revenue growth [14][33]. - Operating loss for Q4 was US$20.5 million, compared to a loss of US$0.7 million in Q4 2023 [15]. Cash Position and Share Repurchase - As of December 31, 2024, cash, cash equivalents, and short-term investments totaled US$287.5 million, up from US$272.0 million as of September 30, 2024 [19]. - The company spent US$5.6 million on share buybacks under a new program authorized in June 2024 [20]. Future Outlook - For Q1 2025, Xunlei estimates total revenues between US$85 million and US$89 million, indicating a potential quarter-over-quarter increase of approximately 3.2% [40].

Core Viewpoint - Xunlei Limited plans to release its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024, on March 13, 2025, before market open [1] Financial Results Announcement - The earnings press release will be available on the Company's investor relations page [1] - A conference call will be hosted by Xunlei's management at 8:00 a.m. U.S. Eastern Time on March 13, 2025, to discuss the results and recent business developments [2] Conference Call Details - Participants are required to register online to join the conference call and should dial in 10 minutes before the scheduled start [3] - A live audio webcast of the conference call will be available on the investor relations page, and an archive will be accessible after the call [4] Company Overview - Founded in 2003, Xunlei Limited is a leading technology company in China providing distributed cloud services, including cloud acceleration, shared cloud computing, and digital entertainment [4]

Core Viewpoint - Xunlei Limited has announced a definitive agreement to acquire Shanghai Kuanghui Internet Technology Co., Ltd., which operates Hupu, for a total cash consideration of RMB500 million, aiming to enhance its content ecosystem and user engagement in the sports media sector [1][2]. Group 1: Acquisition Details - The acquisition of Hupu is valued at RMB500 million, subject to certain adjustments, and is expected to close in the first half of 2025 [1]. - Hupu is recognized as China's leading sports media and data platform, which will complement Xunlei's existing services [1]. Group 2: Strategic Implications - The acquisition is anticipated to create synergies by leveraging Xunlei's user base and technological expertise alongside Hupu's high-quality sports content and community [2]. - This strategic move aims to foster content downloads, community interaction, and sports consumption in a niche market characterized by high user loyalty [2]. - The integration of Hupu's premium sports content is expected to enhance Xunlei's community operations and overall user experience [2]. Group 3: Company Background - Founded in 2003, Xunlei Limited is a leading technology company in China, providing distributed cloud services, cloud acceleration, shared cloud computing, and digital entertainment [3].

Core Viewpoint - Xunlei Limited has appointed JPMorgan Chase Bank as the successor depositary for its American Depositary Receipt (ADR) program, effective December 31, 2024 [1][2]. 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 [4]. Changes in Depositary - The company has entered into an amended and restated deposit agreement with J.P. Morgan to replace the previous deposit agreement, and a registration statement on Form F-6 has been filed with the Securities and Exchange Commission [2]. - Holders of Xunlei's ADRs are not required to take any action regarding the change of depositary [3]. J.P. Morgan's Role - J.P. Morgan is recognized as a global leader in financial services, providing customized depositary receipt solutions since 1927 [3].

Group 1 - Xunlei Limited (NASDAQ: XNET) is expected to finish 2024 positively, with gains for the year, following a stock turnaround since late 2022 [1]