XML 72 R54.htm IDEA: XBRL DOCUMENT v3.8.0.1

Taxation (Tables)

12 Months Ended

Dec. 31, 2017

Taxation [Abstract]

Schedule of Current and Deferred Portions of Income Tax Expense

Continuing operations		Years ended December 31,
(In thousands)		2015			2016			2017
Current income tax expenses /(benefit)			289			71			(38)
Deferred income tax benefit			(4,034)			(2,540)			(2,214)
Income tax benefit			(3,745)			(2,469)			(2,252)

Summary of Aggregate Amount and Per Share Effect of Tax Holiday

		Years ended December 31,
		2015			2016			2017
Aggregate dollar effect (In thousands)			(830)			(1,430)			(4,102)
Per share effect—basic			0.00			0.00			(0.01)
Per share effect—diluted			0.00			0.00			(0.01)

Reconciliation of Total Tax Expense (Benefit)

The reconciliation of total tax benefit computed by applying the respective statutory income tax rates to pre-tax loss is as follows:

Continuing operations		Years ended December 31,
(In thousands)		2015			2016			2017
Income tax benefit at PRC statutory rate (based on statutory tax rate applicable to enterprises in China)			(5,202)			(8,319)			(11,617)
Effects of differences in tax rates in different jurisdictions applicable to entities of the Group outside of the PRC			2,400			2,145			1,341
Non-deductible expenses			14			12			32
Effect of Super Deduction available to Shenzhen Xunlei			—			(901)			(546)
Effect of tax holiday			1,537			2,234			4,102
Change in valuation allowance of deferred tax assets			4,750			—			6,748
Effect on deferred tax assets due to change in tax rates			(8)			—			—
Outside basis difference arising from VIE and its subsidiaries in the PRC			(2,174)			(5,743)			(652)
Expiration of tax loss			290			91			—
Others			(5,352)			8,012			(1,660)
Income tax benefit			(3,745)			(2,469)			(2,252)

Summary of Changes in Deferred Tax Asset and Liability Balances

The tax effects of temporary differences that give rise to the deferred tax asset and liability balances at December 31, 2016 and 2017 are as follows:

(In thousands)		December 31, 2016			December 31, 2017
Deferred tax assets, current portion:
Net operating loss carried forward (note a)			1,276			—
Amortization of intangible assets arising from intragroup transactions (note b)			51			—
Valuation allowance			(106)			—
Deferred tax assets, current portion, net			1,221			—
Deferred tax assets, non-current portion:
Net operating losses carried forward (note a)			12,093			19,246
Impairment of long-term equity investment			348			562
Allowance for advance to suppliers			576			88
Impairment of intangible assets			—			686
Impairment of property and equipment			—			151
Impairment of other receivables			—			1,938
Valuation allowance			(9,745)			(16,599)
Deferred tax assets, non-current portion, net (note d)			3,272			6,072
Deferred tax liabilities, non-current portion:
Outside basis difference (note c)			(635)			—

Summary of Net Operating Tax Loss Carryforwards

Note a: As of December 31, 2017, the Group had tax loss carryforwards of USD 10,314,000, which can be carried forward to offset future taxable income. The net operating tax loss carryforwards will begin to expire as follows:

(In thousands)
2018			5,721
2019			3,389
2020			555
2021			75
2022 and thereafter			574
			10,314

Note b: Before 2008, Giganology Shenzhen sold several self-developed software at a market valuation of approximately RMB 42 million (USD 6.4 million) to Shenzhen Xunlei. Shenzhen Xunlei was entitled to capitalize the amounts as intangible assets for tax purposes and the respective amortization charges could be entitled to claim tax deduction. As a result, this transaction had created a temporary difference between the accounting base (on a group basis) and the tax base (on Shenzhen Xunlei standalone basis) and led to origination of a deferred tax asset.

Note c: The deferred tax liabilities arising from the aggregate retained earnings and reserves of the VIE and its subsidiaries that are expected to be recovered by Giganology Shenzhen and other affiliates of the Group in the future periods, amounted to USD 2,541,000 and nil as of December 31, 2016 and 2017, respectively.

Note d: As at December 31, 2017, the deferred tax asset and liability balances are expected to be recoverable as follows:

Disclosure of Deferred Tax Asset And Liability Balances That Are Expected To Be Recoverable [Table Text Block]

As at December 31, 2017, the deferred tax asset and liability balances are expected to be recoverable as follows:

(In thousands)
Within one year			6,033
After one year			39
			6,072

Schedule of Movement of Valuation Allowance

		Years ended December 31,
(In thousands)		2015			2016			2017
Beginning balance			(291)			(4,559)			(9,851)
Additions			(4,268)			(5,292)			(6,748)
Write-off			—			—			—
Ending balance			(4,559)			(9,851)			(16,599)

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the income tax exemptions and reductions which have been granted by taxing authorities for a specified period, applicable term of the exemptions and reductions, estimated dollar value of tax benefits, and per share benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 25
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=96869850&loc=d3e28937-109314

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=34349781&loc=d3e330215-122817

+ Details

Name:	us-gaap_SummaryOfIncomeTaxHolidayTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319

+ Details

Name:	us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The amount of deferred tax asset and liability balances are expected to be recoverable.

+ References

No definition available.

+ Details

Name:	xnet_DisclosureOfDeferredTaxAssetAndLiabilityBalancesThatAreExpectedToBeRecoverableTableTextBlock
Namespace Prefix:	xnet_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration