29.

Additional information: condensed financial statements of the Company

Regulation S-X require condensed financial information as to financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated and unconsolidated subsidiaries together exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.

The Company records its investment in its subsidiaries, VIE and VIE’s subsidiaries under the equity method of accounting.

Such investments are presented on the separate condensed balance sheets of the Company as “Long-term investments”.

The subsidiaries did not pay any dividends to the Company for the periods presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures represent supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Group.

The Company did not have significant other commitments, long-term obligations, or guarantees as of December 31, 2014.

Condensed balance sheets


(In thousands)	December 31, 2013		December 31, 2014
Assets
Current assets:
Cash and cash equivalents		28,863		309,457
Due from subsidiaries and consolidated VIEs		25,859		67,397
Prepayments and other current assets		653		6,709

Total current assets		55,375		383,563

Non-current assets:
Intangible assets, net		1,017		394
Investments in subsidiaries and consolidated VIEs		67,009		82,360

Total assets		123,401		466,317

Liabilities
Current liabilities:
Accounts payable		807		101
Deferred revenue and income, current portion		—		211
Accrued liabilities and other payables		924		2,328

Total current liabilities		1,731		2,640

Non-current liabilities:
Deferred revenue and income, non-current		—		842
Warrants liabilities		2,186		—
Due to related parties, non-current portion		—		4,137
Other long-term payable		—		807

Total liabilities		3,917		8,426

Commitments and contingencies
Mezzanine equity		40,290		—
Shareholders’ equity
Series C convertible non-redeemable preferred shares		1		—
Series B convertible non-redeemable preferred shares		8		—
Series A-1 convertible non-redeemable preferred shares		9		—
Series A convertible non-redeemable preferred shares		7		—
Common shares		15		82
Treasury shares 9,073,732 shares as at December 31, 2013 and 30,274,602 shares as at December 31, 2014		2		7
Other shareholders’ equity		79,152		457,802

Total Xunlei Limited’s shareholders’ equity		79,194		457,891

Total liabilities, mezzanine equity and shareholders’ equity		123,401		466,317

Condensed statements of operations


	Years ended December 31,
(In thousands)	2012			2013			2014
Revenues		—			—			—

Cost of revenues		(3,075	)		(2,264	)		(1,673	)

Gross profit		(3,075	)		(2,264	)		(1,673	)

Operating expenses
Research and development expenses		(1,369	)		—			—
Sales and marketing expenses		(489	)		(241	)		—
General and administrative expenses		(1,315	)		(972	)		(996	)

Total operating expenses		(3,173	)		(1,213	)		(996	)

Operating loss		(6,248	)		(3,477	)		(2,669	)

Interest income		1,089			706			6,171
Interest expense		—			—			(163	)
Other (loss) / income, net		(885	)		1,651			7,602
Income from subsidiaries and consolidated VIEs		6,547			11,782			(129	)

Income before income tax		503			10,662			10,812
Income tax		—			—			—

Net income		503			10,662			10,812
Net income attributable to the non-controlling interest		—			—			—

Net income attributable to Xunlei Limited’s common shareholders		503			10,662			10,812

Condensed statement of cash flows


	Years ended December 31,
(In thousands)	2012			2013			2014
Cash flows from operating activities
Net cash generated from / (used in) operating activities		695			4,708			(41,485	)
Cash flows from investing activities
Net cash used in investing activities		(37,302	)		(3,843	)		(10,333	)
Cash flows from financing activities
Net cash generated from / (used in) financing activities		35,488			(2,242	)		332,412

Net (decrease) / increase in cash and cash equivalents		(1,119	)		(1,377	)		280,594
Cash and cash equivalents at beginning of year		31,359			30,240			28,863
Effect of exchange rates on cash and cash equivalents		—			—			—

Cash and cash equivalents at end of year		30,240			28,863			309,457