SenseTime revenue jumps 35% to $330m in H1 2025 on AI boom

SenseTime reported a 35.6% rise in revenue to 2.4 billion yuan (US$330 million) for H1 2025, narrowing its adjusted net loss by half to 1.2 billion yuan (US$168 million).

The Hong Kong-listed AI company reported revenue from its generative AI division jump 72.7% to 1.8 billion yuan (US$252 million), making up 77% of total sales.

Gross profit increased by 18.4% year-on-year to 908 million yuan (US$127 million), while gross margin dropped to 38.5% due to higher hardware and data center costs.

The computer vision segment posted 436 million yuan (US$61 million) in revenue, down 14.8% after changes in collaboration with a major client.

Research and development spending rose 12% to 2.1 billion yuan (US$294 million), while selling expenses fell 17.3% to 272 million yuan.

SenseTime launched a “compute mall” with several Chinese semiconductor partners to allow flexible AI computing resource use.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ SenseTime’s pivot from surveillance to generative AI reflects broader industry transformation

SenseTime’s shift in revenue composition reveals how Chinese AI companies are evolving beyond their original focus areas.

The company’s generative AI division now accounts for 77% of total revenue, up from 60.4% a year earlier, while traditional computer vision revenue declined 14.8%1. This marks a significant transformation from SenseTime’s origins as a surveillance-focused company that partnered with 40 public security bureaus and derived a third of its revenue from surveillance applications as recently as 20182.

The 72.7% surge in generative AI revenue to 1.82 billion yuan demonstrates how quickly established AI companies can pivot when market opportunities emerge1.

This strategic shift aligns with the broader Chinese AI landscape, where companies are racing to capitalize on generative AI following the global success of models like ChatGPT.

SenseTime’s ability to transition from computer vision and surveillance to generative AI while maintaining growth shows the adaptability of Chinese AI firms in responding to both market demands and potentially shifting regulatory environments.

2️⃣ China’s “AI Plus” initiative creates systematic support for AI company expansion

SenseTime’s growth trajectory directly benefits from China’s comprehensive AI Plus policy framework that aims to integrate AI across the entire economy.