Black Sesame International Holding (2533) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025 rose 40.4% year-over-year to RMB252.9 million, driven by increased sales of driving assistance products and solutions.

• Net loss for the period was RMB762.4 million, compared to a net profit of RMB1,104.8 million in the prior year, mainly due to the absence of a one-time fair value gain on financial instruments recorded in 2024.

• Adjusted net loss (non-IFRS) narrowed to RMB548.7 million from RMB602.3 million year-over-year.

• The company expanded collaborations with major automotive OEMs, secured record overseas projects, and diversified into robotics and unmanned logistics vehicles.

• Significant progress in mass production and overseas expansion of driving assistance solutions, with new designated projects secured for both domestic and international vehicle models.

Financial highlights

• Gross profit decreased 30.4% to RMB62.7 million, with overall gross margin dropping from 50.0% to 24.8% due to higher hardware and labor costs.

• R&D expenses fell 10.1% to RMB618.1 million, reflecting improved efficiency.

• General and administrative expenses decreased 6.8% to RMB170.1 million, mainly from lower listing expenses.

• Cash and cash equivalents increased to RMB1,966.5 million as of June 30, 2025.

• Gearing ratio improved from 61.7% at end-2024 to 37.5% at June 30, 2025.

Outlook and guidance

• Plans to continue mass production and delivery of driving assistance solutions, with overseas sales ramping up in the second half of 2025.

• Focus on expanding into robotics, unmanned logistics, and new AI chip applications through strategic investments and acquisitions.

• Aims to achieve broader AI scenario coverage and commercial scale expansion.

• Plans to acquire a cost-effective, low-power AI chip enterprise to broaden product offerings and achieve synergies.