| Discontinued operations |
|
3. |
Discontinued operations |
In July 2015, the Company completed the divesture of the Company's entire stake in its online video streaming platform, Xunlei Kankan to Beijing Nesound International Media Corp., Ltd., an independent third party. The total sales price was RMB 130,000 thousand (USD 21,183 thousand). The disposal is due to a shift of strategy focusing on the Group's most competitive operations.
Assets and liabilities related to Xunlei Kankan were reclassified as assets/liabilities held for sale as of December 31, 2014, while results of operations related to Xunlei Kankan, including comparatives, were reported as loss from discontinued operations.
Results of the discontinued operation
| USD (In thousands) |
|
2013 |
|
|
2014 |
|
|
2015 |
|
| Revenues, net of rebates and discounts |
|
|
58,213 |
|
|
|
47,075 |
|
|
|
15,677 |
|
| Business taxes and surcharges |
|
|
(1,746 |
) |
|
|
(1,480 |
) |
|
|
(447 |
) |
| Net revenues |
|
|
56,467 |
|
|
|
45,595 |
|
|
|
15,230 |
|
| Cost of revenues |
|
|
(43,002 |
) |
|
|
(42,704 |
) |
|
|
(13,240 |
) |
| Gross profit |
|
|
13,465 |
|
|
|
2,891 |
|
|
|
1,990 |
|
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development expenses |
|
|
(7,092 |
) |
|
|
(6,035 |
) |
|
|
(3,245 |
) |
| Sales and marketing expenses |
|
|
(16,762 |
) |
|
|
(15,726 |
) |
|
|
(7,384 |
) |
| General and administrative expenses |
|
|
(4,410 |
) |
|
|
(3,016 |
) |
|
|
(3,051 |
) |
| Total operating expenses |
|
|
(28,264 |
) |
|
|
(24,777 |
) |
|
|
(13,680 |
) |
| Net gain from exchanges of content copyrights |
|
|
1,020 |
|
|
|
1,556 |
|
|
|
137 |
|
| Operating loss |
|
|
(13,779 |
) |
|
|
(20,330 |
) |
|
|
(11,553 |
) |
| Gain on disposal of Kankan |
|
|
— |
|
|
|
— |
|
|
|
1,505 |
|
| Income taxes benefits/(expenses) |
|
|
1,207 |
|
|
|
1,923 |
|
|
|
(2,048 |
) |
| Loss from discontinued operations |
|
|
(12,572 |
) |
|
|
(18,407 |
) |
|
|
(12,096 |
) |
Assets and liabilities of the discontinued operation
| USD (In thousands) |
|
December 31,
2014 |
|
| Assets |
|
|
|
|
| Accounts receivable, net |
|
|
23,741 |
|
| Prepayments and other current assets |
|
|
670 |
|
| Copyrights related to content-current portion |
|
|
16,013 |
|
| Property and equipment, net |
|
|
1,111 |
|
| Intangible assets |
|
|
4,997 |
|
| Prepayment for content |
|
|
456 |
|
| Other long-term prepayments and receivables |
|
|
57 |
|
| Total assets held for sale |
|
|
47,045 |
|
| |
|
|
|
|
| Liabilities |
|
|
|
|
| Accounts payables |
|
|
25,267 |
|
| Deferred revenue, current portion |
|
|
1,018 |
|
| Accrued liabilities and other payables |
|
|
1,082 |
|
| Total liabilities held for sale |
|
|
27,367 |
|
Cash flows generated from/ (used in) discontinued operations
| USD (In thousands) |
|
2013 |
|
|
2014 |
|
|
2015 |
|
| Net cash generated from/(used in) operating activities |
|
|
10,439 |
|
|
|
2,293 |
|
|
|
(1,554) |
|
| Net cash (used in)/generated from investing activities |
|
|
(16,402 |
) |
|
|
(34,661 |
) |
|
|
9,135 |
|
| Net cash used in financing activities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Net cash flow for the year |
|
|
(5,963) |
|
|
|
(32,368 |
) |
|
|
7,581 |
|
The disposal of the online video streaming platform was completed on 15 July 2015 and a gain of USD 1,505 thousand was recognized.
|