External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>SenseTime reported FY23 financial results on 26 Mar: total revenue declined by 11% YoY to RMB3.4bn in FY23, below consensus estimate of RMB4.3bn, primarily due to the decline in the Traditional AI business as the company shifted its strategic focus to Generative AI business; adjusted net loss widened by 14% YoY to RMB5.4bn in FY23, versus consensus estimate of RMB3.7bn, due to investment in AI infra and impairment loss of RMB1.8bn (mainly for trade receivables of the smart city business).</li><li>For 2024, the company will further accelerate the monetization of generative AI services, which we expect to support its revenue rebound.</li><li>Meanwhile, the company will enhance operating efficiency and improve cash flow conversion capability in 2024, via cutting non-core businesses.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SenseTime reported FY23 financial results on 26 Mar: total revenue declined by 11% YoY to RMB3.4bn in FY23, below consensus estimate of RMB4.3bn, primarily due to the decline in the Traditional AI business as the company shifted its strategic focus to Generative AI business; adjusted net loss widened by 14% YoY to RMB5.4bn in FY23, versus consensus estimate of RMB3.7bn, due to investment in AI infra and impairment loss of RMB1.8bn (mainly for trade receivables of the smart city business).For 2024, the company will further accelerate the monetization of generative AI services, which we expect to support its revenue rebound.Meanwhile, the company will enhance operating efficiency and improve cash flow conversion capability in 2024, via cutting non-core businesses.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SenseTime (20 HK) - Accelerating Generative AI Monetization

<ul><li>SenseTime announced 1H23 financial results on 28 Aug: total revenue resumed positive YoY growth of 1% and reached RMB1.43bn; adjusted net loss narrowed by 7% YoY to RMB2.39bn, in line with our estimate.</li><li>SenseTime optimized its business strategy: reduce exposure to non-core Smart City business and focus on the development of its Generative AI business, revenue of which has already accounted for 20% of 1H23 total revenue.</li><li>We expect the adjustment will refuel total revenue to grow 18% YoY and unleash operating leverage in 2H23E. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SenseTime announced 1H23 financial results on 28 Aug: total revenue resumed positive YoY growth of 1% and reached RMB1.43bn; adjusted net loss narrowed by 7% YoY to RMB2.39bn, in line with our estimate.SenseTime optimized its business strategy: reduce exposure to non-core Smart City business and focus on the development of its Generative AI business, revenue of which has already accounted for 20% of 1H23 total revenue.We expect the adjustment will refuel total revenue to grow 18% YoY and unleash operating leverage in 2H23E. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SenseTime (20 HK) – Focus on Generative AI Business Development

<ul><li>SenseTime hosted a Tech Day event on 10 Apr unveiling self-developed large model set SenseNova.</li><li>SenseNova consists of NLP, content generation, automated data annotation and custom model training capabilities.</li><li>In the event, SenseTime showed live demo of ChatGPT-like chatbot SenseChat that can write invitation, tell story, comprehend legal documents and Midjourney-like textto-image generator. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SenseTime hosted a Tech Day event on 10 Apr unveiling self-developed large model set SenseNova.SenseNova consists of NLP, content generation, automated data annotation and custom model training capabilities.In the event, SenseTime showed live demo of ChatGPT-like chatbot SenseChat that can write invitation, tell story, comprehend legal documents and Midjourney-like textto-image generator. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SenseTime (20 HK) – Unveiled large model SenseNova with live demo

<ul><li>SenseTime delivered weaker than expected FY22 results with revenue of RMB3.81bn (-19% YoY), mainly due to Smart City projects delay.</li><li>However, we are positive to see the ramp up of the recurring AIaaS business as the Company sells its SenseCore capabilities to external entities.</li><li>Eight key customers took up 7,000 GPUs related to the training of large AI models.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SenseTime delivered weaker than expected FY22 results with revenue of RMB3.81bn (-19% YoY), mainly due to Smart City projects delay.However, we are positive to see the ramp up of the recurring AIaaS business as the Company sells its SenseCore capabilities to external entities.Eight key customers took up 7,000 GPUs related to the training of large AI models.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SenseTime (20 HK) – Leading in the China large AI model race

Thematic (Sector/Industry)

<ul><li>Number of China public security projects bidding remained weak in 3Q22 at -7% YoY (vs. -4% YoY in 2Q22) as Sep number deteriorated (-9% YoY).</li><li>Meanwhile, the US has broadened the restrictions from targeting specific companies (Entity List) to specific products (semiconductors/ equipment above certain computing threshold). </li><li>Our channel checks suggested that the new rules have limited impact to existing commercial AI applications.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Number of China public security projects bidding remained weak in 3Q22 at -7% YoY (vs. -4% YoY in 2Q22) as Sep number deteriorated (-9% YoY).Meanwhile, the US has broadened the restrictions from targeting specific companies (Entity List) to specific products (semiconductors/ equipment above certain computing threshold). Our channel checks suggested that the new rules have limited impact to existing commercial AI applications.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China AI – Public Security Demand Remained Weak in 3Q22

China

SenseTime Group Inc. offers information technology services. The Company develops artificial intelligence software products, computer vision software products, and other products. SenseTime Group provides its services throughout China.

SenseTime Group (20 HK)

SenseTime (20 HK) - Accelerating Generative AI Monetization

For 2024, the company will further accelerate the monetization of generative AI services, which we expect to support its revenue rebound.

CMB International

SenseTime (20 HK) – Focus on Generative AI Business Development

SenseTime announced 1H23 financial results on 28 Aug: total revenue resumed positive YoY growth of 1% and reached RMB1.43bn; adjusted net loss...

CMB International

SenseTime (20 HK) – Unveiled large model SenseNova with live demo

SenseTime showed live demo of ChatGPT-like chatbot SenseChat that can write invitation, tell story, comprehend legal documents and Midjourney-like...

CMB International

SenseTime (20 HK) – Leading in the China large AI model race

SenseTime delivered weaker than expected FY22 results with revenue of RMB3.81bn (-19% YoY), mainly due to Smart City projects delay.

CMB International

China AI – Public Security Demand Remained Weak in 3Q22

Number of China public security projects bidding remained weak in 3Q22 at -7% YoY (vs. -4% YoY in 2Q22) as Sep number deteriorated (-9% YoY).

CMB International