Xunlei Networking Technologies Co, a large online video company in China, said on Tuesday that some financial businesses using the Xunlei logo are not controlled or operated by Xunlei, and it is withdrawing the logo authorization to protect its users and investors.
Such businesses as "Xunlei Finance", "Xunlei Yidai" and "Xunlei loves trade" all belong to the Xunlei Big Data Information Services Co and its subsidiaries, which are not developed under Xunlei, the NASDAQ-listed firm said in a post on its Sina Weibo account on Tuesday.
Big Data Co was invested in by Xunlei in August 2016, but Xunlei's share in the company had decreased to 28.77 percent as of December 2016, meaning it lost the board seat accordingly, said the post.
Xunlei has officially withdrawn the authorization for Big Data Co and its subsidiaries to use Xunlei's logo, it noted.
However, the Shenzhen-based Xunlei Big Data Co rebutted Xunlei's post the same day on its WeChat account, saying that the establishment of the company and its financial affiliates were approved by the Xunlei board, and that the logo it is using is protected by an agreement and the law.
Xunlei's shares slumped on Tuesday in the U.S. bourse, falling 17.6 percent as of press time.