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 full-year 2025 results: annual revenue exceeded 5 billion yuan, and its interim EBITDA turned positive. China Galaxy International said in its research note that, thanks to the rapid growth of generated AI revenue and effective cost-control measures, SenseTime is showing a clear path to profitability. It maintains a “Buy” rating and expects the company to achieve profitability in fiscal year 2028.

Strong momentum in generative AI and a big boost in profitability

**　　China Galaxy International noted that SenseTime Technology’s FY2025 results came in above expectations: total revenue grew 33%, exceeding 5 billion yuan, which was 5% higher than its forecast.** This was mainly due to strong demand from clients such as JD.com and Xiaomi for its generative AI business’s intelligent compute centers. The financial report shows that in 2025, SenseTime’s generative AI revenue 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 said that selling and administrative expenses improved significantly; combined with the successful spin-off by two subsidiaries to unlock value in vertical areas, research and development expenses declined as well, jointly driving SenseTime’s net loss to narrow significantly. The financial report shows that SenseTime’s full-year 2025 net loss narrowed sharply by 58.6%. On an adjusted basis, net loss achieved year-over-year acceleration in reducing losses for four consecutive half-years. 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 systems will become the key growth driver for generative AI

**　　China Galaxy International expects that SenseTime’s large-scale systems will become a key growth driver for generative AI.** Its analysis said that SenseTime Technology optimizes power management by leveraging its own large language model, allowing AI data centers to enjoy lower power costs—thereby helping clients reduce AI training and inference costs.

The financial report shows that the total operating compute power scale of SenseTime’s large-scale systems has increased to 40.4 thousand PetaFLOPS (FP16). Throughout the year, it supported nearly one million model R&D tasks, bridging a complete path from underlying hardware to top-level applications and from the software stack to model adaptation. Its LightX2V world model inference system has outperformed overseas chip performance on domestically produced 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 Large-scale Systems Compute Mall.” In terms of compute-power and electricity co-optimization, SenseTime’s large-scale systems’ AI intelligent system can accurately predict power load based on compute-task data through large models and dynamically generate optimal energy dispatch strategies. It is projected that the system can deliver 7% electricity-fee savings and over 4,000 tons of carbon emission reductions.

Strategic synergies and a clear path to profitability

**　　China Galaxy International expects that driven by generative AI, SenseTime’s revenue CAGR for fiscal years 2025 to 2028 will reach 27%, and profitability will be achieved in fiscal year 2028.** The financial report shows that its visual AI business (CV2.0) has, for the first time, achieved both positive net profit and positive operating cash flow, and has ranked No. 1 in CV market share for nine consecutive years. Meanwhile, under its “1+X” strategy, ecosystem companies spun out have received recognition from external capital. The end-side chip and intelligent driving business segments have completed financing and achieved off-balance-sheet status 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” rating.

Looking ahead to 2026, SenseTime has made preparations for the “final” stage of the global artificial intelligence industry. It will continue to deepen its efforts in a native multimodal architecture and strengthen its global leading position in integrating native multimodal large models and spatial intelligence.

(Editor: Jiang Yongdan)

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