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Chinese Tech Firm SenseTime Files for IPO Despite Regulatory Crackdown

SenseTime wants to go public and has filed for an initial public offering in Hong Kong. They are one of China’s leading AI firms.  This is amidst China’s regulatory crackdown on technology companies. SenseTime sells AI software platforms, facial recognition, and autonomous driving technology products. 

Alibaba and SoftBank have been backing SenseTime. The company was in the mid of growing US and Chinese conflicts. 

SenseTime was ‘implicated in human rights violations and abuses in implementing China’s repression campaign’. As well as surveillance of minority Islamic groups in China, using advanced technology.

However,  Beijing denied the allegations of human rights abuse.

The US has blacklisted SenseTime due to these allegations. SenseTime denies having businesses in the Xinjiang region. They said they are not aware of the use of their technology in those regions. 

SenseTime’s representatives said that if they remain on the blacklist, it will impact their businesses negatively, and they will not be able to stay competitive. 

The recent crackdown on tech companies by Chinese regulators is a risk to SenseTime’s business. At the same time, China is passing a heap of new regulations that aims at anti-monopoly and safeguarding of data. 

SenseTime- Chinese rules and laws are complex

The company said that if they had alleged lacking compliance with the data protection laws, regulations, and government policies, it could damage their reputation. They feel the rules are complex. 

It could prevent future customers from purchasing and using their products and services. Therefore this could cause immense legal and financial implications. 

SenseTime’s revenue was up 14% in 2020, and it earned 3.45 billion in revenue. Their operating loss increased to 1.81 billion yuan.

SenseTime was thriving during the pandemic. Moreover, theirAi technology which uses facial recognition, has been in high demand. The Chinese government used it for temperature screening, determining identities through faces, and checking if people wore masks. 

Those familiar with the SenseTime IPO said the company was trying to raise $8.5 billion as a pre-funding valuation in 2020.

SenseTime’s revenue was up 14% in 2020, additionally, they earned 3.45 billion in revenue. Their operating loss increased to 1.81 billion yuan.

SenseTime’s revenue was up by 91.8% vs last year. They earned 1.65 billion yuan ($255.4 million). However, from January to June this year, they suffered a loss of 3.71 billion yuan. MetaNews to update further.

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Justin N. Richards

Justin N. Richards is a Florida-based technical analyst, market researcher, educator, and trader. Justin began his career in Chicago in 2001 performing futures market analysis for floor traders at the Chicago Board of Trade and the Chicago Mercantile Exchange. He also worked for numerous brokerage firms during that time, all of which hold him in high regard, and he has been providing outstanding analysis services for traders worldwide ever since. Mr. Richards is an expert in the area of market patterns, price and time analysis as it applies to futures, Forex, and stocks. In addition to these talents, he provides educational services for investors looking to improve their analysis and trade skills. Justin has a B.A. in Business Administration from UCLA and an M.S. in Financial Markets and Trading from the Illinois Institute of Technology. Justin’s professional experience, education, and discipline, not only make him an exceptional analyst, they point him out as a reliable, hard working and intelligent business strategist who is dedicated to his craft.
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