(Yicai Global) March 9 -- SoftBank Group has reduced its shareholding in Chinese artificial intelligence giant SenseTime for the third time in 10 months, pocketing a combined HKD189 million (USD24.1 million), as the Japanese venture capital firm looks to cash in on profitable assets as it battles record losses.

SoftBank, which is the second-largest shareholder in the Hong Kong-based AI firm, sold 9.8 million of its SenseTime shares on March 2 at a price of HKD2.54 (USD0.32) apiece, securing HKD24.8 million (USD3.2 million), the Tokyo-based company said in a filing to the Hong Kong bourse.

In total, SoftBank has raised HKD189 million (USD24.1 million) in three share reductions since May last year. As soon as the lock-up period for SenseTime's stock was over, the investment firm sold 12.9 million shares for HKD1.98 each in May 2022 and on Feb. 2 it sold another 50 million shares, for HKD2.77 apiece. It now owns a 15.9 percent stake in SenseTime, down from 18 percent a year ago.

SoftBank, which logged record losses last year due to the poor performance of some of its tech investments and a weak Japanese yen, holds its equity in SenseTime through its Singapore unit SVF Sense, with a cost-of-carry of around USD1.4 billion (HKD11.2 billion), equivalent to HKD2.37 apiece, according to SenseTime’s prospectus.

SenseTime’s share price [HKG:0020] was trading up 1.2 percent at HKD2.53 (USD0.32) as of 12 noon China time today. This is higher than SoftBank’s cost-of carry of HKD2.37. The stock has gained 12.6 percent in value so far this year.

SoftBank logged losses of JPY783 billion (USD6 billion) in the third quarter of 2022 financial year, and has been selling assets to raise cash, according to its latest quarterly report released on Feb. 7.

Editor: Kim Taylor