ICG - Earnings call 4 2023 | Intchains Group Limited

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Intchains Fourth Quarter and Full Year 2023 Earnings Conference Call.Today's conference is being recorded.

If you have any objections, you may disconnect at this time.Joining us today is Mr. Chaowei Yan, Chief Financial Officer of Intchains. Mr. overview company's company's financial an details and provide the of results. will of performance the the Yan After that, we take your will conduct a question-and-answer questions. session to

the future answers are today's events as circumstances company's financial statements involve risks During current company forward-looking Chinese I or about English forward-looking company's would question-and-answer changes or be session, financial business that projections update may statements remind Yan the known based expectations, any contain or law. by continue, required deliver the and you The forward-looking affect condition, to that These Mr. strategy to translations.Before in we unknown its and will company reflect and its uncertainties undertakes needs. will may operations, to representative publicly believes no subsequent the the on obligation result except like or provide discussion that of corresponding and expectations will revise events and in statements. current

call believes and out reasonable, please turn encourages it actual differ the Although Mr. to results filings the CFO. you registration the affect investors statement are forward-looking will And company will Mr. assure review expectations with results I company's factors and Chaowei cautions ahead. the materially Yan, the its that investors these over to in in company may the that turn such may now other other Yan, anticipated future that the that company's go SEC.With be cannot statements correct. that, to results expressed expectations from the

Chaowei Yan

call, the our year joining we will call an for everyone full conference that, Q&A the financial to we was year rapid full a technology After operator, deeply innovation today's for XXXX. year-over-year. application layers. WEBX operational we in performance for fourth and will industry take session and quarter decreased a of industry, fluctuations, the The and quarter provide XXXX year for Thank conduct volatility. you, by overview by the XXXX.On fourth year earnings and short-term and your the Influenced while underlying revenue of both questions.XXXX XX% these challenging full for affected was by witnessed sustained company's Intchains

market of of the downturn, a development in well the marking fourth as of the successfully alongside NASDAQ empowered March, quarter and to for was This new remarkable application of the deliver revenue demand cryptocurrency outstanding In on products. us also firms. year quarter growth the XXXX, layers XXX% in for significantly of driving third beginning listed from our chapter rebounded heightened quarterly States, propelled United sustainable the for blockchain we fourth Intchains. quarter other sequential profitability.XXXX development a milestones However, as in numerous

in successfully our new we latest to verification smoothly The nanometer expect officially chip our is trial completed Furthermore, machine brand XX a have and entire sales. production and launch processing processes been of core complete products a to upgrading our entering our industry across our brand, young Goldshell value to the WEBX chain.In has the expanding focused processes and enhance As while on advising and QX, downstream algorithms product into mining machine the process today. production second and officially algorithm an transaction new featuring persistently and acquire we cheap and entered mining practitioner, agreement refining Intchains quarter competitiveness, offerings XXXX. the products service IC the

industry completion only will integration technology in in expand to foundation development XXXX, of to to experience participant, through landscape. tape-out relentlessly drive XXXX. extensive enhance the society and market. this is new of aim across industry's but will we our explore entire blockchain capabilities provide brand By the promoting in will propel and traditional our industry, change year nearing leverage further applications firmly propel and upward opportunities of In across the observing lifestyle currently improve market-wide. overview a we across people's transaction WEBX level. cryptocurrency related a development we WEBX full privacy a is we the with uncertainties, process as progress lingering development transformative will and with this lifestyle into efficiency long-term product carefully expand Intchains the increasing development and official for the capital industry that chosen key blockchain environment, industries, Company's of intend the I prospects and pioneering value chain, first dynamic with anticipation as users the industries industries, technological financial The sectors. drive for quarter for Ultimately, brief Furthermore, we chip short-term the confident these in XXXX, a advanced WEBX full fourth the opportunities investments ongoing utilization As XXXX. to We in associated at we slated of integration our a application whole.Now, XXXX traditional deeper society of innovation solidify also development the distinct computing within Despite WEBX. step technology believe are evolution remain whole.As industry's product of not and

a first fourth at for financial take Let's look the the quarter. overview

intelligent a was year-over-year quarter was fourth RMB Our products, XX.X X.X%. -- to sales increase due million due of in this to was primarily million of revenue generated one-off which fourth in or XX.X router increase $X RMB revenue XXXX. mainly the million The in quarter,

previous quarters XX to inventory to million categories year-over-year the primarily increase all $X.X RMB the RMB XX% of the million million Our to have in an router or by which XX.X% due by products, XX.X intelligent expenses. million downs in RMB million of to cost in WEBX recorded revenue quarter. XX.X of Due fourth decreased year-over-year increased expenses to operating quarter, fourth the sales $X in operating write of been XXXX.Our total in

million increase same research for million expenses period The quarter, million million the X or to expenses.Our year-over-year by fourth Sales primarily an increase costs million by expenses. $X for the in of in government. expenses million primarily quarter mainly year-over-year XX the XXX.X% increase largely expenses, IC and year-over-year to to an in RMB chips. to due $X due the expenses Specifically, increased by development local to fourth IP labor million XX our XX.X% the by an year-over-year to fourth the decreased management. fund the or income received design income to RMB XX.X% increased million XX.X% in fourth from effective expenses XX.X% attributable XXXX. was or lease-related X.X personnel-related the million million increased RMB the million Other and mostly or quarter, in in labor professional increased to RMB quarter, attributable in to to or fourth General marketing of from increase XXXX admin X.X $X.X costs decrease quarter, in grants the RMB and X.X and by and $X.X $X.X for due RMB interest

down, and of challenging average of volume market sales XX.X%. and price selling Our XX.X% our or look $X.X XXXX million in partially attributable The was year million share net year-over-year results. $XX.X let's shares.Now, the million cryptocurrency or and our decrease XXXX, and decrease RMB RMB X or million and RMB sales expenses. X.X RMB to a of in ADS million chips. $X.XX an income the prepayment in diluted marketing expenses in million.Total million in the was ASIC approximately general The of X.XX Each year-over-year resulted administrative of XX.X due decrease or in ordinary million RMB RMB to to our earnings decrease in which decreased mainly XXXX, Cost quarter. decrease largely year-over-year fourth revenue XX% in per by fourth the volume in expenses, Class expenses ordinary company's increased primarily $XX.X or at ASIC revenue and write by operating full was to quarter. and XXXX, XX.X A totaling increase chips, was offset in down by due net Basic by write our offset XX represents mainly XXXX. research XX.X to $XX.X The development inventory was financial million sales

Our XX.X% and XX.X% General research in the $X.X different to increase and costs in RMB year-over-year development in expenses, The effective income and million offset XXXX, period, received our increased million our XXX.X% year-over-year and to RMB XX.X primarily primarily of RMB amortization rental year-over-year during XXXX, RMB due and XX.X in attributable was increase in by increase by million $X.X to or X.X R&D XX.X in million RMB admin XXXX expenses to expenses an XX.X% labor or decrease Other million from in respective the costs expenses. Interest XX or an by attributable XXXX, labor grants year-over-year local million XX.X depreciation million million $X.X million expenses. RMB we're due to Sales in expenses largely income by $X.X to in stage by to of or and expenses. management. increased marketing to professional to million due or mainly to in decreased a decrease XX.X% government. mostly XXXX, decreased increased projects by from fund million $X XXXX. personnel-related

or was Our $X.X XXXX. XX.X loss million million RMB net in

volatility share in our business XXXX. basic resulting in Our exerted A our top both ordinary line X.XX company's ADS loss year-over-year of development, and declines on was pressure net line Class represents ordinary bottom RMB industry X XXXX, per diluted $X.XX performance. in Each or great and shares.In

embraced the as However, related applications the are regulators evolves, mainstream and by investors. industry crypto increasingly

a We has the committed remain and sensed clearly a of phase, the have industry deeply entered anticipate WEBX prospects to are range we its confident broader We applications cycle. that development. to WEBX the upward of new in emerge. In long-term industry this much

strengthen that the As along competitiveness bolster pursue our our to we continue and such, foothold value chain. initiatives

proactively look step we opportunities for to industry ourselves will our support. increase you updating to position in progress, on long-term future. in progress you into your continued within sustained forward investment better for development exploring our we the We XXXX, the As growth.Thank

I'd the any Now, over turn to for operator to discussion questions. like

Operator

from The of Liz Instructions]. Kenyon [Operator Thank Group. comes And the you. Piacente line with it

Liz Kenyon

fourth that conditions and insights sales Can you in please as further on as well XXXX? quarter your impact into outlook provide growth market for the

Chaowei Yan

and Thank industry the a the BTC ETF price major question. Language] especially fourth to [Foreign Bitcoin by In you developments, decrease. the for other varying quarter, of anticipation approval positive driven cryptocurrency, rebounded of the

product Language] downstream $X to given our robust XXXX, orders market Looking result, marking profitability a year in a recovery has quarters growth for of fourth ahead data outlook to X million consecutive sales quarter our the of improved. our clear boosted return to the trends, As losses.[Foreign

products featuring a newly than later hit node First, no scheduled quarter. XX-nanometer process second company's market the to the announced are

this We chips. process. particularly XX-nanometer process privacy chip field edge the to projects the capital. to out disclose and we R&D our we cutting technology, accelerated Additionally, second XXXX, we of R&D Language] have pursue node to quarter.[Foreign initiated aim the related project's and non-computing Currently, ramp development multiple the have in computing conclude return In in publicly will a before up latest on investment higher

as given vision and diversified industry financial specific Nevertheless, However, provider we the for unable of WEBX control industry a alongside in with ongoing have reserves, ample long-term well we strategy WEBX are prudent to as to practices, for and financial year. and the infrastructure.Thank provide confidence volatility, ability you answer. a forecast grow leading the industry operational as and emerge the risk our a

move next let's Now, the question. to

Operator

the of from proceed. [indiscernible]. line comes Please It

Unknown Analyst

on you how are they the brand provide expected insights your to [Foreign and strategy Language] Goldshell please post influence and sales acquisition for performance? Could

Chaowei Yan

on products company become a HPC the deal with except of global provider to will other brand, leading This our sell Language] mining a closed today. computing Goldshell and in Starting perspective, media regions.[Foreign to global successfully and We seamlessly all equipped channels. the social From brand WEBX chips aim and take website Goldshell its directly over to tomorrow, and us strategy infrastructure. certain enable market machines scale, Language] Intchains sales regulated a the [Foreign the

Therefore, By users, new We HPC conducted infrastructure extensive move. acquiring for Language] sales establishing represents company's brand already channels its downstream we independent products.[Foreign brand brand future beyond among significant structurally have efforts WEBX on delivering a acquisition Goldshell products the blockchain are R&D influence chips. the and

sales impact it depend short-term and performance, on product the dynamics. and ultimately the on offering the for industry As will

to us volatility the this for point. impact of it challenging at Given blockchain industry, very is quantify

yield we answer. in for it you believe outcomes However, will the positive run.Thank long the highly

next the question. move Let's to

Operator

may conclude And for just any in and for queue. And further Thank period this you I'm you conference showing today. will not questions all I disconnect. the participating. now

Intchains Group Limited (ICG) 29 Feb 242023 Q4 Earnings call transcript