Intchains Group Limited Q1 FY2025 earnings call

• Despite a challenging macroeconomic environment and crypto market volatility (18% decline in crypto market cap during the quarter), the company achieved solid operational performance. • Revenue exceeded the upper end of the Q1 2025 guidance range. • Gross margin improved significantly due to product optimization and operational efficiency. • Operating income turned positive after a loss in Q4 2024. • Continued to accumulate Ether as part of the long-term value creation strategy. • Launched the Aleo series miners in February, with the AE Max miner ranking sixth in daily profitability among all mining machines. • In March, launched the Goldshell Byte, an innovative power mining machine with hot-swappable mining cards for multiple cryptocurrencies. • Focus on refining miners through chip upgrades and product design to strengthen market position in altcoin mining.

Revenue for the first quarter of 2025 reached $18.2 million, a 78.5% quarter-over-quarter increase. This exceeded the upper end of the previously guided range of $15 million to $16 million. Gross margin improved to 56.9%, up from 26.2% in the previous quarter, representing a 286.9% growth. Operating income turned positive at $5.1 million. The company's business operates across three core segments: 1) Producing home miners for high-potential altcoins like Aleo and Dogecoin under the Goldshell brand. 2) Reinvesting profit to accumulate Ether, with the holding increasing by over 23% to 7,023 as of March 31, 2025. 3) Actively exploring Web3 innovations to drive long-term growth. The Aleo mining miner series accounted for nearly 75% of the total revenue in Q1.

• Projected first half of 2025 revenue to be approximately RMB 180 million to RMB 200 million, taking into account tariffs and crypto market volatility. • Anticipated catalysts for long-term upside: potential interest rate cuts improving liquidity conditions, broader regulatory support for crypto-linked ETFs, new blockchain applications in payment and AI agents, Ethereum protocol upgrades, and passage of new Bitcoin reserve deals at the US state level. • Remain optimistic about sustaining momentum into Q2 and beyond, with rapid product iteration positioning well for future growth.

• Significant volatility in the crypto market, which impacted cryptocurrency prices (e.g., Ethereum price dropped 46% in Q1). • Macroeconomic challenges affecting the overall business environment. • Tariffs potentially affecting operational costs and revenue.

Q: Regarding the mix of the company's mining rig revenue going forward, especially the proportion of Aleo, Doge miners, and new products like Goldshell Byte.

A: Chaowei Yan stated the company is optimistic about Doge miner development and will continuously upgrade Doge miners, aiming to be a top-tier supplier. Future revenue will come from Goldshell miners, Aleo miners, and new miners. Minty Wang added that Aleo series miners dominated revenue in the first half, and Goldshell Byte may contribute in the second half but specific guidance is hard to provide.

Q: Comment on inventory and the market feedback for Goldshell Byte.

A: Chaowei Yan said most inventory is Goldshell and Aleo related chip inventory, and will adjust based on market conditions. Minty Wang noted Goldshell Byte has a daily profit of $0.50 to $1 per day, helps expand the customer base.

Q: Question about R&D spending plans.

A: Chaowei Yan said they can't predict the exact date of R&D spending increase as some projects are in progress but no specific timeline has been set.