Shangtang responds to grizzly bear short selling report: unfounded and contains unfounded speculation and misleading conclusions and interpretations

Thank you, Mr. Air, a netizen of CTOnews.com, for your clue delivery! CTOnews.com, November 28, this morning, Grizzly Research, a US short seller, released a report on SenseTime Group's core artificial intelligence business, saying it deliberately exaggerated its income. Affected by this, the share price of Shangtang plunged in the short term, from rising to falling.

SenseTime Group is now issuing an announcement in response to this short selling report.

The Company believes that the report is unfounded and contains unfounded speculation and misleading conclusions and interpretations. It also lacks a basic understanding of the company's business model and financial reporting structure, and a comprehensive interpretation of the company's public information. The author of the report did not contact the Group to confirm the authenticity of the relevant information or to gain any understanding of the Group's financial report.

According to the Grizzly Research report, SenseTime Group misstated his income and his core business was no longer profitable. As a result, SenseTime Group's Hong Kong shares fell 9.7 per cent at one point, the biggest intraday drop in April. As of CTOnews.com, the decline narrowed to 5.56 per cent.

According to the financial report, SenseTime Group achieved an operating income of 1.43 billion yuan in the first half of this year, an increase of 1.3% over the same period last year, a gross profit of 650 million yuan, a gross profit of 45.3%, and operating costs down 6.5% from the same period last year. The net loss was 3.14 billion yuan, and the adjusted net loss was 2.393 billion yuan, which was 2.0% and 6.7% respectively compared with the same period last year.

In the international market, SenseTime Group earned 229 million yuan in the first half of the year, accounting for 16% of his income. The small increase in group revenue was mainly due to an increase in revenue from smart business and smart living, which was offset by a decline in revenue from smart cities and smart cars.

The group's smart business revenue in the first half of the year was 853 million yuan, an increase of 50.2% over the same period last year, mainly due to taking advantage of the new business opportunities related to generative AI; smart car revenue was 83.9 million yuan, down 30.5% from the same period last year.