SenseTime's 2025 revenue exceeds 5 billion, with generative AI surging by 51%! Galaxy International maintains a "Buy" rating.

On March 24, SenseTime-W (0020.HK) released its 2025 full-year performance: annual revenue exceeded 5 billion yuan, and half-year EBITDA turned positive. China Galaxy International noted in a research report on this release that, driven by the rapid growth of generated AI revenue and effective cost-control measures, SenseTime is showing a clear path to profitability. It maintains a “Buy/Increase Holdings” rating and expects the company to achieve profits in fiscal year 2028.

Strong momentum in generative AI, with a major boost in profitability

**　　China Galaxy International said that SenseTime Technology’s 2025 fiscal year results beat expectations, with total revenue growing 33%, exceeding 5 billion yuan, which was 5% higher than its forecast.** This was mainly due to strong demand from customers such as JD.com and Xiaomi for its generated AI business’s intelligent computing center. The financial report shows that SenseTime’s generative AI revenue in 2025 was 3.63 billion yuan, up 51% year over year, accounting for 72.4%.

In terms of improved profitability, effective cost control played a key role. China Galaxy International’s analysis pointed out that selling and administrative expenses improved significantly, and together with the successful spin-off of two subsidiaries to unlock value in vertical fields, research and development expenses declined, jointly pushing SenseTime’s net loss to narrow substantially. The financial report shows that SenseTime’s full-year 2025 net loss narrowed sharply by 58.6%. On an adjusted basis, net loss achieved accelerated reductions for four consecutive half-years on a year-over-year basis. In the second half, profit before interest, taxes, depreciation, and amortization (EBITDA) was 380 million yuan, marking the first time it turned positive since listing.

Large-scale infrastructure will become a key growth driver for generative AI

**　　China Galaxy International expects that SenseTime’s large-scale infrastructure will become a key growth driver for generative AI.** Its analysis said that SenseTime Technology uses its own large language model to optimize power management, enabling AI data centers to enjoy lower power costs, thereby helping customers reduce AI training and inference costs.

The financial report shows that the total operational compute power scale of SenseTime’s large-scale infrastructure has been increased to 40.4 thousand PetaFLOPS (FP16). Over the full year, it supports nearly one million model research and development tasks, bridging an end-to-end path from underlying hardware to upper-layer applications, and from the software stack to model adaptation. Its LightX2V world model inference system achieves a catch-up and surpasses overseas chip performance on domestic hardware platforms.

In addition, in building a domestic compute-power ecosystem, SenseTime, together with more than a dozen chip manufacturers including Huawei Ascend, Hygon, and Cambricon, jointly released the “SenseTime Large-scale Infrastructure Compute Mall.” In terms of compute-power and power-supply synergy, the AI intelligent system built by SenseTime’s large-scale infrastructure can precisely predict power load based on compute-task data through large models, dynamically generate optimal energy scheduling strategies, and is expected to deliver 7% in electricity-fee savings and over 4,000 tons of carbon emissions reductions.

Strategic synergy and a clear path to profitability

**　　China Galaxy International expects that driven by generative AI, SenseTime’s revenue compound annual growth rate for fiscal years 2025 to 2028 will reach 27%, and it will achieve profitability in fiscal year 2028.** The financial report shows that its vision AI business (CV2.0) has, for the first time, achieved both positive net profit and positive cash flow, maintaining the #1 position in the CV market share for nine consecutive years. At the same time, under the “1+X” strategy, the ecosystem companies split out gained recognition from external capital; the on-device chip and intelligent driving business segments have completed financing and achieved deconsolidated independent operation.

Based on the rapid growth of generative AI demand and SenseTime’s clear path to profitability, China Galaxy International reiterates a “Buy/Increase Holdings” rating.

Looking ahead to 2026, SenseTime has prepared for the “final round” of the global artificial intelligence industry. It will continue to deepen its native multimodal architecture, consolidating its global leading position in the fusion of native multimodal large models and spatial intelligence.

(Editor: Jiang Yongdan)

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