ICG - Earnings call transcript Q3 2024 | Intchains Group Limited

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen. Thank you for standing by, and welcome to Intchains Third Quarter 2024 Earnings Conference Call. This conference call is being recorded.

If you have any objections, you may disconnect at this time.

Joining us today is Mr. Officer and Financial Chief Yan, of Ms. Intchains; Chaowei Wang, Investor Director. Relations Minty Mr. the an financial and provide will company's results. overview company's Yan the of performance of the details After to question-and-answer that, conduct questions. your session we will take a

of to like Limited. over Wang, Intchains the I'd Investor ahead. now at turn Relations go to call Minty Head Please Group

Minty Wang

day, Minty. XXXX operator. Welcome Call. Thank Earnings Group Intchains Good you, to everyone. I'm Quarter Limited Third

and Limited, financial call, Chaowei for the Yan, will Group provide Mr. Intchains of a today's For company's quarter. of performance results the overview comprehensive CFO

operating no and Before I company except discussion and its revise results The risks expectations as on proceed, known These would events reflect or we update based everyone like in current unknown be that condition, will statements obligation projections to law. regarding publicly forward-looking today's circumstances and required direction. and statements. undertakes statements any are to expectations company's may remind or uncertainties future subsequent and include strategic its events impact changes forward-looking to the or may financial involve by that

with expectations investors that SEC. company expectations should future that filings in anticipated to may statement may results the correct, out will the registration company that reasonable, expressed materially affect assure that believes are turn these forward-looking in such the results. actual and the be results review from other we cannot the Although and its differ Investors other factors cautions the statements you company's

webcast conference be release. the The website measures non-GAAP the press We Please at and refer on comparable measures the will also of a to to certain the replay available in call discuss reconciliation GAAP Intchains measures. this non-GAAP earnings ir.intchains.com. will of presentation financial

Mr. call over me Chaowei turn CFO, let Now Yan. our to Please? the

Chaowei Yan

call third to Q&A we performance. an questions. will for take operational you, and of conference conduct of On today's Intchains a we session overview will financial After everyone, for quarter that, provide call, XXXX. the Minty, our earnings Thank joining and your

the remaining reviewing industry's third focused Meme and due the institutional quarter of prevailing into national some decline. experienced cryptocurrency flowed to Bitcoin mostly narrative XXXX, stable, price market other relatively of of cryptos the in was while with funds sector ETH, crypto on degrees applications. In while The a primarily range lack bound investments varying

the as president crypto of However, pro investors' strengthened regulation, for optimism quarter began, leading about renewed to fourth development. the future U.S. result expectations crypto's election global

And payment In November RWA XXXX, also highs. Bitcoin Meme [ ], consistently price sectors as experienced and all-time broke growth. such rapid

of to preparing development crypto beginning new applications. We primary actively and are upcoming about market and confident ASICs the efforts the build blockchain

that long cycles the the based on is crypto growth focused company We ROI primarily transcend As accumulating through cycle. to projects WebX, vision enhanced the crypto the achieve short continuously Ether. company's exploring strategy the promising developing growth [ increasing is ROI during Intchains' in on in crypto term, applications term, while ] and through

cycle. crypto or to market the wave To will our Meanwhile, Dogecoin the in we and projects In accumulation our quarter by fourth ASICs peak first explore we current designing of of decision to us XXXX, produce whether trough trends expect sales drive the quarter cryptocurrency continue Alephium, strategy, to will development, equipment, actively to emerging mining. for Kaspa, the in new has we new XXXX. stick to effectively Ether crypto quarter. allowed This Goldshell-branded of and seize third computing Litecoin continued capture the

of cost that September cryptocurrencies excited high Ether of Ether September a cap XX. accumulating total continued third the as surpassing we the with historical to implement average as the reaching month, reached In XXXX, XX. This market as representing X,XXX XXXX, quarter Ether, XX.X% to increase of XX, strategy of price of our were we see holdings our to a June

on launch part complete Furthermore, a quarter, to solution will blockchain application wallet in offered industry, we the hardware of merchants. crypto into our one-stop the payment ecosystem. further a and in plan in which fourth Based crypto future Pay the confidence payment initial product quarter, for this expansion, we launched as our application Goldshell line the foray of enhance

fully We business as that and are Intchains' value confident become more our will potential and long-term company's positioning defined, model growing be realized.

continue across Moving industry, the the drive growth forward, Intchains to lead robust to crypto partners collaborating cycles. with will

I'm million, the third was will second XX.X% for representing the overseas revenue I to third financial momentum brief third XXXX. continuing of or the XXXX. USD of a XX.X increase the year-on-year Now XXXX. X.X growth a pleased quarter that Revenue strong XXX%, report quarter provide on the quarter quarter in accounted the CNY overview of of company's million from from

Our well global continued since second expansion the has quarter. been strategy

third the sales by was for XXX,XXX XX%. same units sales quarter volume an not driven of units chips Our price. but in by ASIC representing volume the the third in average for the increase for the more increase of quarter only to was compared XXX,XXX XXXX, selling importantly of Revenue period rise

in primarily higher reaching for margins our gross chips XX.X% to since the latest ASIC due to the older was ASIC the products. in level third compared products the margin quarter, gross XXXX chips highest The QX launched XXXX,

XX.X value it due XX.X% XXXX. expenses. the The fair of increase the or and In increase third was on X.X was expenses, of the of for of for incentive to of million period share-based cryptocurrency USD same terms an loss an quarter, total increase representing operating million CNY primarily

value was the to end falling cryptocurrency with the of from Ether second third the end the market of price million. volatility The to quarter. quarter for loss on third cryptocurrency the was or XX.X% due CNY of million fair quarter the It XX.X X.X of primarily USD

XXXX. as in mentioned holdings cost average November, surpassed the as While Ether the before, XX, our price of September of

loss faster turning And a the third for Our adjusted non-GAAP XXX,XXX, year. in profit primarily third a to to same net XXX,XXX. quarter compared to of the the to income growth revenue and compared of period in cost quarter was last the million due USD from growth million X.X revenue expenses. This operating was CNY XX.X or USD net CNY the or income was the both

This quarter, -- non-GAAP primarily operational believe net we income exclude profit adjusted We company's non-GAAP to performance. share-based disclose and reflects net ongoing non-GAAP net compensation the adjustments expenses. started

company's share X.XX each X.XX shares. net Basic per third for loss earnings A was quarter same X the ordinary compared the and and ADS net of RMB basic RMB diluted diluted of of ordinary the period share XXXX of to representing the Class XXXX, for

continue our technology for progress. partners. your look continued We you ahead, innovation you project focus and adoption and the to on updating Thank our support. on clients we Looking for blockchain and will product of to foster forward

Minty Wang

Mr. this Thank questions. to like for you, point, Yan. At I'd floor open the

when translation for You're In convenience any the in original to ask only. discrepancies, we statements refer to please purpose questions welcome case language. or will provide English, of and in our Chinese necessary English management's

start Q&A you. Thank Now the operator, session. we may

Operator

first The [ from of question Instructions] ] Chang [Operator comes [ from Research. Marco line the Golonghui ]

Unknown Analyst

This Golonghui [ on growth is strong [ Research. company's from in ] ] Marco QX. the Congrats

crypto Firstly, said that the company QX. launched app you hardware noticed and in launch I an a you to Pay in called plan wallet Goldshell QX,

what yourself Goldshell is my bit of that, about tell And Pay wallets the differentiates assumptions more in for from app crypto So wallet? little other you question and us your market? a and hardware your can the the

Chaowei Yan

your question. Okay. Thank for you

to analytics. merchants is limited including cryptos, Pay one-stop a released risk Litecoin, and Pay Goldshell merchants -- payment the not was and serves Coin global supports for but it quarter. to both Bitcoin, Tether Ether, only Polygon third data And the currently USD. serving Dogecoin, payment and in in including platform the First, our receive USD Goldshell monitoring process

still generate stage. However, in revenue the We do it's the not expect short it early in term. to

we will is application product wallet development both course, an Pay line their that the still by And it's the for have custodian our ecosystem. say and and is store function, products confidential our users wallet, and what But should step key not any their can and explore own, security important of hardware yes. us And Goldshell develop doing both for Goldshell to in process.

Operator

the ]. from is question Tao Next [ from coming [ Maxim of ] line

Unknown Analyst

the to in be wallet short future. to My launched also question the is related

could some the a to be partner is project? company or this about is third-party wallet? like this also, by launch cost you revenue And would what how be have projections to So developed in-house the cryptocurrency project the give -- us driven and this

Chaowei Yan

Okay.

also proven our Okay. is comfort our The few Ether accumulation years, providing application, remain -- company's -- firmly zone. over behind primarily management is long-term these altcoins. are our blockchain one it's believe assets on have that projects that But successful. which however, of for the the future not in the In to of past past company reasons confined the we And mining focused strategy.

for curve continuously the have sought growth we instead So our company. next

applications blockchain mentioned, we business not ASIC we survival focus as because on primary years, into in achieving was through previous our venture sales. did So

to cash reserve to sufficient sustained and fee that applications. solutions, cash reserve us to applications, to with sustain -- starting risk functions one-stop cycle certain to -- with sustain blockchain the through time blockchain providing collected begin the level payments. a it sufficient process. has us -- exploring of Now market and is have and in the merchants Pay developed of operating The management other offer awareness believes to is a monitoring Goldshell service designed the payment we data,

upon the is in And be But to quarter. product set be will another launch. wallet disclosed released our fourth hardware the details further

expect not to Goldshell these specific it's So and to in materially both a contribute provide profits wallet stage. time do difficult Pay this line. We our currently, are during will phase, and all trial commercialization

zone achieve long-term and to So breakout -- exploring aim directions of we but current Thank then comfort variety stable and application our of growth. operational continue you.

Operator

question Premier ] line Li You [ ] of is coming Instructions] David the Partners. [Operator [ from of

Unknown Analyst

is which one company the bit popular MicroStrategy. is accumulating different had it wonder, has which is accumulating saying the from been Ether, more strategy, of that strategies little Bitcoin a -- like I

that. leveraging can even company in So And adopting financing other do on like particular? some some also, management also -- strategy some are that elaborate to or the other

So company planning is so? the to also do

Chaowei Yan

it's And as market, to regardless is, the an firstly, or why The Ether choose in Ether altcoin bear development company. the for Ether. reason sticking is whether position company remains right? accumulating, cumulative bull question So us we we of accumulating

focused primary PoW chips promising coins. Our on ASIC for providing business

portfolio, similar growth consensus offers aim beta Ether. altcoin accumulating in to As of investing higher PoS which in investing sense a POS Therefore, a in in one besides sector by all of PoW, is Intchains the enhanced markets. main mechanism share to we

Secondly, a in industry. the and the widespread application background founder technical certainly believes crypto of has company's

public also Ether Currently, dominant Ether making We blockchain accumulating of trials accumulating Ether application, applications. remains initial natural -- a begun have fit. the chain for is WebX in strategy our

has operating profits Finally, untapped complete company relatively consistently the altcoin crypto growth. and and overcome cycle. self-sustaining is market generated The maintain

during ROI healthy serves bull market. company reserve crypto smoothly us reserve. a our cash tends improve As lower the has markets This navigate to allow bear way a ROI. overall Ether and one Accumulating result, as to to

possibility to the its finally, And primarily accumulate for financing the own assets. -- accumulate assets. strategy to cash used At of company present, financing

listed approach. we company indicate, to like their aware that MicroStrategy. deployed However, of investors have recognition give their financing some accumulate stock full are cryptocurrency U.S. price, you as And strategy

we their such, will explore accumulation and options time. at financing as joining the you. So consider asset for experience successful Thank may appropriate

Operator

line. appears this Instructions] hand it be more the for back to Allow me call time, the [Operator no to the management closing. At questions to from

Minty Wang

our have you, I you Okay. you the or you online, maybe if us after Thank And operator, contact e-mail can to Thank maybe it listed. visit operator. you that also, conference, questions, questions to everyone. can thank no we this there a say materials can -- want If refer let's more you, to are and you, through website day. call further

Operator

That for participation. today's conclude your you Thank does conference call.

now You may lines. your disconnect

Intchains Group Limited (ICG) 21 Nov 242024 Q3 Earnings call transcript