Chinese AI Company SenseTime Reports First IFRS Profit as Generative AI Drives 80% of Revenue

Chinese AI firm SenseTime Group announced its first profit under International Financial Reporting Standards on August 26, driven by growth in generative AI and gains from investments in its AI ecosystem. Half-year revenue rose 23.4% year on year to RMB2.91 billion ($405 million), with gross profit increasing 32.9% to RMB1.21 billion.

Gross margin expanded by 2.9 percentage points to 41.4%. Generative AI accounted for nearly 80% of total revenue, with overseas revenue up 127% from a year earlier. The company disclosed recurring revenue for the first time, amounting to RMB1.14 billion (39.3% of group revenue). SenseTime reported an IFRS net profit of RMB620 million, compared to losses in previous periods.

However, its non-IFRS adjusted net result remained a loss of RMB390 million, though the deficit narrowed by 67.3% year on year. The IFRS profit represents a turning point, but the adjusted loss indicates that core operations have not yet reached full profitability. SenseTime's commercial AI strategy focuses on foundation models, computing infrastructure called a "Token Factory," and an agent platform connecting models with enterprise tools and workflows.

The company released models for multimodal reasoning, visual perception, content generation, spatial intelligence, and robotics, including the SenseNova U1 series and the Kairos 3.1 world model. SenseCore, its computing infrastructure, processed an average of 2.4 trillion tokens daily, approximately 22 times the volume a year earlier. Total deployed computing power reached 48,000 petaflops by the reporting date.