Chinese AI pioneer SenseTime has achieved its first-ever first-half net profit of 617.3 million yuan (US$92.0 million) since its 2021 listing, contrasting with rivals MiniMax and Zhipu AI which posted heavy losses. SenseTime's turnaround is driven by generative AI monetization, which generated 2.33 billion yuan. Concurrently, global investors are flocking to Chinese equity derivatives through firms like Barclays and UBS to diversify away from crowded AI trades in Korea and Japan.
SenseTime profitability milestone
- ▪SenseTime reported a net profit of 617.3 million yuan (US$92.0 million) for the first half of 2026, marking its first-ever first-half profit under International Financial Reporting Standards since its 2021 Hong Kong listing.
- ▪SenseTime's revenue rose 23.4 percent year on year to 2.91 billion yuan for the first half of 2026.
Generative AI monetization strategy
- ▪SenseTime's recurring revenue surged 124.4 percent year on year to 1.14 billion yuan in the first half of 2026, representing nearly 40 percent of total sales.
- ▪SenseTime's generative AI business contributed 2.33 billion yuan in the first half of 2026, accounting for nearly 80 percent of the company's total group sales.
Global investor demand
- ▪Financial strategists are increasingly recommending derivative trades to position for gains in Chinese equities, particularly in the mid- and small-cap space.
- ▪Global investors seeking to diversify beyond crowded AI trades in Korea and Japan are increasingly purchasing Chinese equity derivatives.
Chinese equity derivatives trading
- ▪The rising demand for bullish options and swap contracts tied to China's CSI indexes is driven by global traders seeking alternative AI-related equity exposure.
- ▪Trading desks at Barclays Plc and UBS Group AG have experienced rising client demand for bullish options and swap contracts tied to China's CSI indexes in late August and early September 2026.
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