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

March 24, SenseTime-W (0020.HK) released its full-year 2025 performance: annual revenue exceeded 5 billion yuan, with H1 EBITDA turning positive. China Galaxy International commented on this in a research note, stating that thanks to the rapid growth of generative AI revenue and effective cost-control measures, SenseTime is demonstrating a clear path to profitability. It maintains a “Buy/Increase Holdings” rating and expects the company to become profitable in fiscal year 2028.

Strong Momentum in Generative AI, Significantly Enhanced Profitability

**　　China Galaxy International noted that SenseTime Technology’s FY2025 results came in above expectations, with total revenue growing by 33%, exceeding 5 billion yuan, which was 5% higher than its forecast.** This was mainly driven by strong demand from customers such as JD.com and Xiaomi for its generative AI business’s intelligent compute data centers. According to the financial report, 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 analyzed that selling and administrative expenses improved significantly, and in addition, two subsidiaries successfully separated to extract value in vertical domains, driving a decline in R&D expenses—together pushing SenseTime’s net losses to narrow markedly. The financial report shows that SenseTime’s full-year net loss in 2025 narrowed sharply by 58.6%; the adjusted net loss achieved year-over-year accelerating loss reduction for four consecutive half-years. In H2, earnings before interest, taxes, depreciation, and amortization (EBITDA) was 380 million yuan, turning profitable for the first time since listing.

Large-Scale Infrastructure (Big Installations) 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 indicates that by leveraging its own large language models to optimize power management, SenseTime Technology enables AI data centers to enjoy lower power costs, thereby helping customers reduce AI training and inference costs.

According to the financial report, the total operating compute capacity scale of SenseTime’s large-scale infrastructure has increased to 40.4k PetaFLOPS (FP16). The full year supported nearly one million model research and development tasks, bridging the complete path from underlying hardware to top-layer applications, and from the software stack to model adaptation. Its LightX2V world model inference system has outperformed overseas chip performance on domestic hardware platforms.

In addition, in building a compute-power localization ecosystem, SenseTime, together with more than ten chip manufacturers including Huawei Ascend, Hygon, and Cambricon, jointly released “SenseTime’s large-scale infrastructure compute Mall.” In terms of compute-and-power coordination, the AI intelligent system built by SenseTime’s large-scale infrastructure can accurately predict power load based on compute task data through large models, dynamically generating the optimal energy dispatch strategy. It is estimated that the system can deliver 7% savings on electricity bills and over 4,000 tons of carbon emission reductions.

Strategic Synergy, Clear Profitability Path

**　　China Galaxy International expects that driven by generative AI, SenseTime’s revenue compound annual growth rate will reach 27% for fiscal years 2025 to 2028, and it will turn profitable 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 operating cash flow, and it has topped the CV market share for nine consecutive years. At the same time, under the “1+X” strategy, ecosystem companies separated out have received recognition from external capital; the on-device chip and intelligent driving business segments have completed financing and have been listed off for independent operations.

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 is ready for the “final race” of the global artificial intelligence industry. It will continue to focus on its native multimodal architecture, and further solidify its global leading position in integrated native multimodal large models and the field of spatial intelligence.

(Editor: Jiang Yongdan)

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