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Xunlei ( (XNET) ) just unveiled an update.
On March 3, 2026, Xunlei announced that its variable interest entity Shenzhen Xunlei Networking Technologies agreed to sell a combined 50% stake in edge-computing CDN provider Shenzhen Onething for RMB125 million in cash. The buyer group includes Wuhan Kingsoft Cloud, a VIE of Kingsoft Cloud Holdings, acquiring 20%, and Xinghan Zhilian, a vehicle for Onething’s management team, acquiring 30%.
Before the deal, Shenzhen Xunlei owned 70% of Shenzhen Onething, but upon completion it will retain only 20% and will cease consolidating Onething’s financial results. The transaction value was set after arm’s length negotiations, considering Onething’s improving financial profile, including a swing from a RMB21.4 million loss after tax in 2024 to a RMB9.9 million profit in 2025 and a move from net liabilities to net assets.
The agreements include staggered payments by Xinghan Zhilian, a single payment by Wuhan Kingsoft Cloud, and mutual closing conditions, with completion targeted by the end of April 2026. Xunlei’s audit committee, advised by Kroll and issuing a fairness opinion, led the negotiations and unanimously recommended the deal, which the board approved as being in the company’s best financial interests.
Post-closing, a new shareholders agreement will govern Shenzhen Onething, with Xunlei, Kingsoft Cloud and management sharing rights according to their revised stakes. Xunlei expects the disposal to streamline its resource allocation and business portfolio, reduce regulatory exposure, and still give it upside participation through its remaining minority holding in Shenzhen Onething.
The most recent analyst rating on (XNET) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Xunlei stock, see the XNET Stock Forecast page.
Spark’s Take on XNET Stock
According to Spark, TipRanks’ AI Analyst, XNET is a Neutral.
Xunlei’s overall stock score is driven by strong earnings call performance and undervaluation, offset by technical analysis indicating bearish trends and financial performance concerns. The company’s strategic investments and revenue growth are positive, but operational inefficiencies and cost challenges need addressing.
To see Spark’s full report on XNET stock, click here.
More about Xunlei
Xunlei Limited, founded in 2003 and listed on Nasdaq under the ticker XNET, is a Chinese technology company specializing in distributed cloud services. The company offers cloud acceleration, shared cloud computing and digital entertainment products aimed at delivering an efficient, intelligent and secure internet experience for users in China.
Average Trading Volume: 293,915
Technical Sentiment Signal: Hold
Current Market Cap: $359.8M
See more insights into XNET stock on TipRanks’ Stock Analysis page.