$SENSETIME-W (HK0020) SenseTime announced its interim results, with the group's performance for the first half of 2025 exceeding market expectations. Total revenue increased 36% year-over-year to RMB 2.4 billion.

First, SenseTime's revenue for the first half of 2025 grew 36% year-over-year to RMB 2.4 billion, significantly surpassing market expectations. The core driving force lies in the synergistic deepening of its "Generative AI + Visual AI" dual-engine strategy. Generative AI revenue surged 73% year-over-year, with its proportion of total revenue rising to 77%, marking the company's successful transformation from traditional visual AI to a large model-dominated technological paradigm. The multimodal capabilities represented by the "SenseNova" large model V6.5 have reached world-leading levels, not only supporting the rapid penetration of productivity tools like "Raccoon" in finance, government affairs, and education sectors, but also driving a 510% annual growth in interactive tool usage duration through real-time interactive experiences combining audio and video, creating significant technical barriers and user stickiness.

Second, the Visual AI business achieved a "growth restart" under its high-quality customer strategy, demonstrating mature commercialization capabilities. SenseTime serves over 660 domestic and international enterprises by focusing on high-value customers, achieving a 57% repeat purchase rate and significant growth in overseas orders, reflecting its irreplaceable position in smart city and industrial inspection scenarios. This segment's cash flow and profit margins improved bidirectionally, providing solid support for overall loss narrowing—adjusted net loss narrowed 50% year-over-year, and operating cash flow net outflow was significantly reduced by 82%, demonstrating a crucial transformation from "cash-burning expansion" to "profit-generating growth."

Third, organizational mechanism innovation unleashed the vitality of the "X" segment, building a second growth curve for long-term development. SenseTime promoted "second joint entrepreneurship," establishing independent joint venture teams for innovative businesses such as intelligent driving, smart healthcare, and home robots, maintaining strategic focus while stimulating internal entrepreneurial momentum. This structural optimization not only improves operational efficiency but also enhances capital market imagination for independent valuation of various sub-sectors, facilitating ecosystem value realization.

Fourth, financial health significantly improved, providing guarantees for strategic continuity. Accounts receivable collection reached RMB 3.2 billion, up 96% year-over-year, with collection days shortened by 49%, indicating synchronized optimization of collection capabilities and customer quality. The sufficient cash reserve of RMB 13.2 billion can support long-cycle investments in large model R&D.

Against the backdrop of accelerated implementation of the national "AI+" action plan, SenseTime, leveraging its technological leadership and deep industrial cultivation, is progressing from a technology supplier to an AI ecosystem builder, with its performance turnaround demonstrating sustainability.