SENSETIME-W (00020) issued a profit warning, expecting a mid-term profit of approximately 500 million to 700 million yuan, turning from loss to profit year-on-year.

SENSETIME-W (00020) announced that (a) the Group expects to achieve a profit of approximately RMB 500 million to RMB 700 million for the six months ending June 30, 2026 (the first half of 2026), while it recorded a loss of approximately RMB 1.48927 billion for the six months ending June 30, 2025 (the first half of 2025). (b) The Group expects that the adjusted net loss for the first half of 2026, measured in accordance with non-International Financial Reporting Standards (IFRS), will decrease by 60% to 70% compared to the adjusted net loss in the first half of 2025, indicating a further narrowing of the adjusted net loss in the first half of 2026 (i.e., comparing the first half of 2026 with the first half of 2025) compared to the narrowing extent for the fiscal year ending December 31, 2025 (i.e., comparing the fiscal year 2025 with fiscal year 2024). The consolidated profit for the first half of 2026, measured in accordance with IFRS, is expected to turn from a loss in the first half of 2025 to a profit. This will mark the first time since the Companys listing on the Hong Kong Stock Exchange that it has achieved consolidated profitability. The changes in the first half of 2026 measured according to IFRS are primarily due to: (i) a reduction in losses from the Group's main business segment in the first half of 2026 compared to the first half of 2025; and (ii) gains resulting from changes in the fair value of AI ecosystem enterprise investments strategically built by the Group over the years.