Six years of continuous loss, high-level exchange of blood, does Xunlei still have a play?

Xunlei and Chen Lei are in the center of public opinion because of the announcement of a case filed by Xunlei accusing former CEO Chen Lei of the crime of embezzlement, as well as the subsequent news of Chen Lei’s related “criminal evidence”. Except for an interview that did not involve key disputes, Chen Lei had no new response to the media. A few days ago, Chen Lei publicly stated that he was not suitable for sharing his experience in a official account, which he said was his senior vice president Dong Xue. According to Xunlei information, Chen Lei and Dong Hao have left the country since the end of April. Sun Hongxia, a lawyer from Beijing Jia Dong law firm, told the first financial reporter that Chen Lei was a criminal suspect. If he had never returned to the mainland, the court could not have tried and convicted him because he had the right to defense and other related rights from the perspective of criminal proceedings.

also said that Sun Hongxia needs to know whether the country of criminal suspect’s exit has judicial assistance agreement with China or extradition clause, if extradition agreement can be extradited, if it is not, it can only advise or wait for it. It is reported that Chen Lei and Dong Bai went to the United States by way of Hong Kong when they left the country. < / P > < p > this accusation against Chen Lei has also made Xunlei the focus of public opinion in the industry. After more than 100 million yuan of daily life, listing failure, bloody re listing, professional managers taking over, stock prices skyrocketing, stocks plummeting, professional managers out, retired old employees returning Xunlei has been stormy all the way. < / P > < p > what is Xunlei doing after six consecutive years of losses and high-level exchange? What changes have taken place in the company’s business focus, strategic direction and business model? These are not only the external doubts about Xunlei, but also the development problems in front of Xunlei. < p > < p > on March 12, this year, Xunlei’s financial report for the fourth quarter of 2019 and the whole year showed that Xunlei’s total revenue in 2019 was about 181 million US dollars, a year-on-year decrease of 21.9%; the net loss was 53.169 million US dollars, which was further expanded than the net loss of $39.278 million in 2018. < p > < p > while the net loss further expanded, the revenue shrank further. Cloud computing, member subscription and advertising revenue account for three major parts of Xunlei’s revenue. Among them, the revenue of cloud computing and other Internet value-added services was 84.1 million US dollars, a year-on-year decrease of 31.3%; the revenue of subscription services was 81.5 million US dollars, with a year-on-year decrease of 0.4%; and online services accounted for%. < p > < p > Yang Liu (pseudonym) is a former employee of netheart technology, a wholly-owned company of Xunlei. She told the first financial reporter that after Li Jinbo came to power, the current main business direction of Xunlei and netheart technology has not changed. “Shared cloud computing is profitable, so it is retained, and it is blockchain that loses money.” < / P > < p > Xunlei, which is famous for downloading but has missed the tickets of mobile Internet, once lost its way. The series of products such as Xunlei finance, Xunlei fast disk and Xunlei end game have all failed. During Chen Lei’s term of office, cloud computing and blockchain have become the life-saving straw of Xunlei’s business direction, as the driving force of its business growth. Among them, cloud computing services include Joker cloud, thunderbolt chain and star domain cloud. < / P > < p > The Joker cloud is called “the private cloud disk of happy download” by Xunlei, and is a blockchain application applied in the field of cloud computing. In addition to the function of private cloud disk, more importantly, users can contribute their own broadband and storage space to obtain the link token (playing coin) issued by Xunlei, and exchange more than 200 kinds of commodities such as Xunlei members, iqiyi members and Jingdong e-cards. < / P > < p > at that time, Linko was said to have reached a maximum of 9 yuan per piece, while the number of players was also rising. At the highest point, it sold to thousands of yuan. Within 10 days, the total crowdfunding amount reached 10.88 million yuan, 100 times higher than the original target. At one point, Xunlei’s share price soared to $27.

collects resources from users idle, and thunder is integrated into the form of star cloud to sell Iqiyi, millet, Kwai, and B customers such as 360 to become an efficient shared cloud computing service (thunder, also known as distributed CDN business). At this time, the products of play guest cloud and star domain cloud are respectively connected to the C-end and b-end, and Xunlei makes “scissors difference” profits. < p > < p > Yang Liu said that the more users originally using the Joker cloud, the lower the cost of Xunlei to obtain idle resources, and its business chain is likely to achieve a closed-loop. However, the user’s pain point is not solved in essence. Without the attraction of currency, the user’s investment can not be returned, and it becomes a useless machine for some users. < / P > < p > with the warning of “disguised ICO” and policy supervision, after a series of twists and turns, the upsurge of Xunlei’s playing customer cloud has subsided, and the infighting between Xunlei and Xunlei’s big data has risen again, and Xunlei’s share price has continuously fallen back to US $3 per share. Link later moved to Hainan chain to enjoy cloud, on a number of small currency circle exchanges. This is also Xunlei high-level after the exchange of blood, Chen Lei was Xunlei blame “speculation” reasons. < / P > < p > subsequently, Xunlei put all its eggs in the blockchain technology. It is understood that thunderbolt chain has successively launched product solutions in six core areas, including finance, people’s livelihood, justice, medical care, government affairs and industry. According to its official website, Xunlei said that it had practical implementation plans in more than a dozen fields, such as copyright protection, traceability, public welfare, gene, supply chain and new retail. < / P > < p > however, in the annual report of 2019, thunderbolt’s revenue is not included in cloud computing and other Internet value-added services, and its R & D cost is 68.57 million US dollars, accounting for 37.8% of the revenue. According to Yang Liu, the R & D cost of netheart technology has always accounted for 80% of the total cost, and has hired several top cryptography experts. “The salary of netheart technology used to be benchmarked with Tencent. The salary level of our basic employees was top 5 in the industry, and the salary level of experts also reached the top 5 level.”. It is said that these top cryptography experts have also published articles in the world’s top journals, one of which is signed by Chen Lei. < p > < p > Yang Liu said frankly: “Chen Lei really spent the money of Xunlei to support a group of his own teams. I’m not sure if he’s profiting from the middle, but his actions will certainly hurt Xunlei. ” < p > < p > after Li Jinbo came to power, Yang Liu obviously felt that the people of the whole thunder chain project were becoming more and more idle in the later stage. Thunderbolt chain has retained the project to continue to do, no project almost stopped, for the official website is still hanging the updated thunder chain business, she said, “should be for reserved projects.”. < / P > < p > several cryptography experts left or were “optimized”. Yang Liu said that a group of technicians brought by Chen Lei from Tencent cloud have returned to work in Tencent cloud, such as Lai Xin, the former chief engineer of Xunlei chain. “The original thunder chain project more than 100 employees, now there should be only 10 people.”. It is understood that Li Jinbo, as the founder of Xunlei, has led many rounds of technological and product innovation, and after many years of continuous entrepreneurship, he is known as the most suitable person to take over Xunlei. Li Jinbo’s itui international exchanged shares with Xunlei shareholders. Xiaomi venture capital, Jinshan venture capital and Chenxing China all converted their shares of Xunlei into itui shares, which means that Li Jinbo’s influence as chairman and CEO has been further strengthened. Mr. Yang recalled that Li Jinbo, the new CEO, didn’t mention any strategic changes when he first spoke on a company open day in April. In an internal letter sent to employees, Xunlei once stressed the need to “stabilize business quickly”, overcome many difficulties and seize the opportunity of the times. This is also the reason why Li Jinbo has not changed the general strategic direction since taking office, and the change of products also shows that Xunlei is trying to optimize itself. During Chen Lei’s term of office, all in cloud computing and blockchain simultaneously suppressed the development space of some members’ subscription. After Li Jinbo was in charge, downloads and member subscriptions were updated. According to the first financial reporter, about the member subscription part, Xunlei’s new version returned to IOS after four years. This version not only provides simple mobile download service, but also has the function of thunderbolt cloud disk. In the storage space, super members support 6T storage space, while non members support 2T storage space. In terms of speed, there is no speed limit, and video can be downloaded and played at the same time. Besides conventional HTTP and HTTPS, files that can be downloaded also include BT, magnetic, electric donkey, etc. < / P > < p > a month ago, Xunlei’s new version of Android followed. According to the official website, the land granted to Xunlei six years ago by the Shenzhen Municipal Government for the construction of Xunlei headquarters base was also capped on the morning of June 18, 2020. However, Xunlei’s revenue in the second quarter of this year is still decreasing, with total revenue of US $44.3 million, down 8.3% month on month. Revenue from cloud computing and other Internet value-added services was $21 million, down 0.9% month on month. Subscription revenue was $20.7 million, down 11.4% month on month. Online%. At the same time, R & D expenses and sales expenses decreased. R & D was $14.5 million, accounting for 32.8% of total revenue, compared with $16.8 million in the first quarter, accounting for 34.8% of total revenue. Sales and marketing expenses were $4.4 million, or 9.9% of total revenue, compared with $6.7 million in the first quarter, or 13.9% of total revenue. The decrease was mainly due to the continuous optimization of the organizational structure in the quarter, as well as the decrease in marketing and promotion activities during the quarter, the financial report said. < p > < p > according to Yang Liu, the number of netheart employees has been optimized since May, from 400 to 200, further reducing expenses, but the remaining employees can still increase their salaries by 10% to 25% according to the annual salary adjustment opportunity. “Thunderbolt’s cash flow is quite stable.”. However, according to the second quarter financial report of Xunlei, the capital on Xunlei’s books has been decreasing. “The less money you make, the less it is proof that the business is shrinking,” says Yang. Xunlei has been looking for a new growth point, such as developing another business, but this is actually very difficult. After all, the internal plate is too big to drive the next round of growth. “. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. 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