SenseTime Group (20) investor relations material

Executive summary

• Achieved first IFRS net profit of RMB617.3 million for the six months ended June 30, 2026, reversing a loss of RMB1,489.3 million year-over-year, driven by revenue growth, improved gross margin, and fair value gains on investments.

• Revenue rose 23.4% year-over-year to RMB2,910.9 million, with Generative AI revenue up 28.2% and Computer Vision revenue up 13.9%.

• Recurring Revenue (RR) surged 124.4% to RMB1,144.7 million, now 39.3% of total revenue, reflecting a shift to ongoing service models.

• Gross margin expanded to 41.4% from 38.5% year-over-year, supported by business mix optimization and efficiency gains.

Financial highlights

• Gross profit increased 32.9% to RMB1,206.2 million, outpacing revenue growth.

• EBITDA reached RMB1,388.1 million, compared to a loss of RMB847.7 million in the prior year.

• Adjusted EBITDA was RMB384.9 million, versus a loss of RMB540.3 million year-over-year.

• Adjusted net loss narrowed 67.3% to RMB385.9 million.

• Operating profit was RMB945.2 million, compared to a loss of RMB1,453.2 million in the prior year.

Outlook and guidance

• Strategic focus is on scaling multimodal agent capabilities, expanding recurring revenue, and deepening system-level AI integration.

• Plans to further commercialize domestic compute, enhance Token Factory efficiency, and drive multi-agent collaboration in enterprise and personal workflows.

• Emphasis on evolving from per-Token billing to task-based pricing and delivery.