SenseTime Group (20) investor relations material

Executive summary

• Achieved first IFRS net profit since listing, with RMB617.3 million profit for H1 2026, reversing a RMB1,489.3 million loss in H1 2025, driven by revenue growth, margin expansion, and investment gains.

• Revenue rose 23.4% year-over-year to RMB2,911 million, led by generative AI, recurring revenue, and overseas expansion.

• 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 improved to 41.4% from 38.5% year-over-year, supported by business mix optimization and delivery efficiency.

Financial highlights

• Generative AI revenue grew 28.2% year-over-year to RMB2,327.2 million, now 79.9% of total revenue.

• Computer Vision revenue increased 13.9% to RMB496.8 million, with overseas revenue up 127% year-over-year.

• Adjusted EBITDA turned positive at RMB384.9 million, compared to a loss of RMB540.3 million in H1 2025.

• Adjusted (Non-IFRS) net loss narrowed 67.3% year-over-year to RMB385.9 million.

• EBITDA margin reached 47.7% (vs. -35.9% in H1 2025).

Outlook and guidance

• Strategic focus is shifting from model and compute provision to scalable, trustworthy multimodal agent capabilities and deeper enterprise integration.

• Plans to expand system-level AI delivery, multi-agent collaboration, and commercialize domestic compute infrastructure, including new centers in Hong Kong and Saudi Arabia.

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