SenseTime Group (00020) issued a positive profit alert on the evening of August 16, signaling a significant financial turnaround. According to preliminary estimates based on information currently available to the board, the company expects to record a profit of approximately RMB 500 million to RMB 700 million for the first half of 2026. At the same time, the adjusted net loss measured under non-IFRS standards is projected to narrow by 60% to 70% compared to the same period in 2025.

The announcement indicates that the year-on-year reduction in adjusted net loss is accelerating compared to the 2025 fiscal year, marking the first time SenseTime has achieved consolidated profitability since its listing. This performance shift is not driven by a single factor. On one hand, losses from the company's core business segments decreased in the first half of 2026 compared to the prior year. On the other hand, fair value gains from SenseTime's strategically built AI ecosystem investment portfolio, accumulated over several years, contributed to the overall improvement in financial results.

In recent years, SenseTime has been transitioning from an early business model centered on AI fundamental research and technology capabilities toward a larger-scale focus on AI infrastructure, generative AI, and AI application ecosystems. Concurrently, the company's ongoing investment layout across the AI industry chain forms a key part of its AI ecosystem strategy. Notably, SenseTime is undergoing structural changes in its operations: losses in its core business are steadily narrowing, adjusted losses are significantly decreasing, and the long-term AI ecosystem buildout is starting to deliver periodic financial value.

The announcement also disclosed that SenseTime expects to publish its interim results for the first half of 2026 on August 26, 2026.