Xunlei Ltd (NASDAQ:XNET) Offers Clarification On Market Development

Xunlei Ltd (NASDAQ:XNET) issued clarification on the latest market development. Presently, the company has 28.77% equity stake in Shenzhen Xunlei Big Data Information Services Company Ltd. with no management control. In response to specific public statements issued by Big Data, the board posted an open letter and supported the firm’s endeavor to use its several years of technical know-how in the segment of distributed computing to assess commercial applications with the support of blockchain technology.

The details

To safeguard the interests of the firm, with the nod of the Board, the firm has requested Big Data to halt utilizing the brand name of “Xunlei” immediately and also canceled its right to use the brand. For the preceding five successive years, Xunlei has been chosen as one of the leading 100 Internet Firms in China by MIIT and Internet Society of China. As a listed firm, Xunlei’s policy is to stand by applicable guidelines and government laws, implement corporate governance and function under the board guidance.

To ensure sustainable businesses and to safeguard all stake holders, the firm will engage and maintain in positive communications with authorities and execute an ID registration mechanism in mid-December for Wankebi operation and other preventive initiatives to ensure that Wankebi operation and other business plans are in compliance with pertinent laws and government guidelines.

Xunlei considers that Wankebi is a type of digital asset and can be utilized on the firm’s internet properties and should not be dealt on other transaction platforms. The company added that when advancing blockchain technology, it uses such features as transparence, security and openness for their apps. Wankebi is just a symbol of evidence for these applications, and not a matter of speculation.

In the last trading session, the stock price of Xunlei jumped more than 6% to close the day at $13.65.