FAST NEWS: SenseTime’s loss widens despite cost controls

The latest: Artificial intelligence (AI) company SenseTime Group Inc. (0020.HK) said its revenue fell 10.6% to 3.41 billion yuan ($472 million) last year, while its non-GAAP net loss rose 14.2% to 5.41 billion yuan, according to its latest results published on Tuesday.

Looking up: The company’s selling, administrative and R&D expenses fell between 3% and 14% last year, as it worked to control its costs.

Take Note: SenseTime’s core AI revenue plunged 41.1% to 1.84 billion yuan last year, mainly due to its decision to de-emphasize its smart city business and focus more on generative AI.

Digging Deeper: SenseTime is distinguished from its rivals by its prowess in computer vision artificial intelligence (AI) and its provision of “AI-as-a-Service” to government and enterprise customers for applications like smart cities, surveillance and autonomous driving. Listed in December 2021, the company has been unprofitable since its inception in 2014 due to huge R&D expenses. The company’s share price has come under constant pressure since its listing due to the sensitive nature of its products. Its shares came under additional pressure after its founder and executive director Tang Xiao’ou died last December at the age of 55, and after major shareholders Softbank (9984.T) and Alibaba (BABA.US; 9988.HK) cut their holdings.

Market Reaction: SenseTime’s shares fell on Wednesday and were down 7.7% to HK$0.72 by the midday break, hitting an all-time low.

Translation by A. Au

To subscribe to Bamboo Works weekly free newsletter, click here