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SenseTime Says AI Workflows Helped Deliver Its First IFRS Profit

The company’s new explanation of its turnaround centers on task delivery and repeatable sales, though investment gains and a continuing adjusted loss limit the result’s operating read-through.

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SenseTime Says AI Workflows Helped Deliver Its First IFRS Profit
SenseTime Says AI Workflows Helped Deliver Its First IFRS Profit

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SenseTime says it has reached its first IFRS profit since listing, reporting six hundred twenty million renminbi in first-half net income. But the more important part of the turnaround is how the company says it got there: by selling AI systems that complete work, not just generate content. Revenue rose 23.4 percent year over year to 2.91 billion renminbi. Generative AI contributed 2.33 billion of that—nearly 80 percent—and SenseTime disclosed recurring revenue for the first time, at 39.3 percent of group sales. Chief executive Xu Li describes the commercial stack as three connected pieces. The models provide the intelligence. Token Factory optimizes models and infrastructure to reduce token costs. Agent Harness connects those models to company knowledge, tools, and workflows, so the output can become an end-to-end task. That distinction matters because SenseTime says it wants to price Token Factory around completed outcomes rather than token volume. The headline profit still needs qualification. The company reported a 390 million renminbi non-IFRS adjusted loss, and fair-value gains on some AI ecosystem investments contributed to the IFRS result, meaning the milestone does not purely reflect operating performance. MiniMax and Z.ai grew faster but remained loss-making. The key constraint now is execution: outcome-based Token Factory pricing is still a plan, not a reported result.

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SenseTime reported RMB620 million in first-half IFRS net profit, its first since listing, as generative AI reached RMB2.33 billion of RMB2.91 billion revenue. The company attributes its commercial progress to a stack combining models, Token Factory infrastructure optimization, and Agent Harness workflow connections, with recurring revenue disclosed at 39.3% of sales. The turnaround remains financially qualified:...

  1. 01

    Generative AI generated nearly 80% of first-half revenue, while total sales increased 23.4% year over year.

  2. 02

    Recurring revenue was disclosed for the first time and represented 39.3% of group revenue.

  3. 03

    SenseTime plans to price Token Factory around completed task outcomes rather than token volume; this has not yet been reported as a result.

SenseTime executives say the company reached its first IFRS profit by concentrating on AI tools that complete work for enterprises and solo entrepreneurs. The explanation, published after its half-year results, puts workflow delivery and recurring revenue at the center of a turnaround that still included an adjusted loss and investment-related gains.

The company reported RMB620 million in first-half IFRS net profit, its first since its public listing. Revenue rose 23.4% to RMB2.91 billion, while generative AI produced RMB2.33 billion—nearly 80% of group sales.

The commercial stack is meant to sell completed tasks

Chief executive Xu Li said SenseTime’s models, Token Factory and Agent Harness each formed an independent commercial closed loop. The company describes the system as a way to combine models with computing optimization and workflow-connected agents, moving from AI-generated output toward end-to-end task execution.

How SenseTime divides that work

  • The model system is intended to extend the complexity of tasks its agents can handle.
  • The Token Factory combines model and infrastructure optimization to lower token costs and improve cost-based pricing power, according to SenseTime.
  • The Agent Harness connects models, knowledge, tools and workflows for enterprise and individual users.

The accounting result has an important boundary

SenseTime also recorded a RMB390 million non-IFRS adjusted net loss, even as core operating losses narrowed. It said fair-value gains from certain AI ecosystem investments contributed to IFRS profit, so the headline result does not solely reflect the operating business.

The milestone separates SenseTime from two domestic peers cited in the comparison: MiniMax and Z.ai reported triple-digit revenue growth for the same period but remained loss-making, with net losses of US$358 million and RMB2.07 billion, respectively. SenseTime says it plans to shift Token Factory pricing from token volume toward task outcomes; that change remains a plan, not a reported result.

Sources

  1. sensetime.comSenseTime Records First‑Ever Profit in First Half of 2026; "Models + Token Factory + Agent Harness" Framework Unlocks High‑Value Commercialization
  2. scmp.comHow generative AI helps SenseTime turn a profit even as Chinese peers struggle

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