ICG - Earnings call transcript Q4 2024 | Intchains Group Limited

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Operator

Good day, ladies and gentlemen. Thank you for standing by and welcome to Intchains' Fourth Quarter 2024 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. Officer and Financial Chief Yan, of Ms. Intchains; Chaowei Wang, Investor Director. Relations Minty

Group to would of call Intchains I Instructions] hand Investor now at Head [Operator Wang, like the Minty over Relations Limited. to

go Please ahead.

Qianwen Wang

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

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

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

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

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

go our the ahead. CFO, Now Mr. Chaowei call turn Yan. to let Please me

Chaowei Yan

of joining for for Conference Call you, the Fourth and XXXX. Quarter Thank Earnings Minty; Intchains' everyone,

session financial will take of On to conduct provide performance. your Q&A a an and overview today's that, questions. we call, will After operational our I

translated performance presidential Dogecoin the quarter election, of $XX.X XXXX, this million, optimism that, In following cryptocurrency And orders and to [ from U.S. benefited In the for regulatory market renewed quarter, our is expectations environment. more for as rebounded robust Ethereum a the fourth increase positive revenue we the lead we crypto-friendly will into which important our environment recognized fourth note in ]. be operational spurred strongly. of resurgence placed company. some cycle, QX a production XXX% It year-over-year. due in remarkable achieved XXXX. to revenue This

to performance, addition million. our income adjusted by revenue our strong non-GAAP net rose to XX% In $X

accumulating holdings number on Ethereum focus strategic total cryptocurrencies as XX% Ethereum-based increased of Our X,XXX off, of units. by a paid our quarter-on-quarter to also

about -- performance optimistic In our product, XXXX, product upcoming we a launched be driver first to are we of the -- in a this Aleo significant February, expect year. ahead, half move launched mining we initiatives. a Looking our more we in series February

ecosystems hardware a steadfastly on upgrading Dogecoin Goldshell our introduced machines last wallet, while have new our series share We strategy. payment committed to Moreover, Ethereum year's Pay. also built to our application treasury additional long-term expanding market capture we pursuing mining remain

key segments. our those me operate core X our We business, For outline let operations. with in less briefly familiar

such Alephium, Goldshell mining produce Kaspa, Aleo. under altcoins Dogecoin the Firstly, for brand, promising we products and as

long-term Secondly, are we we WebX actively least, exploring accumulating Ethereum, profits structure. Last to not application but which reinvest our [indiscernible] by drive innovative the growth.

Our altcoin differentiated focused growth strategy ocean blue sector. mining on

of home position of in As Ethereum, a unique a markets. have products pioneers capital mining holder the of one and established we committed long-term

Ethereum. tokens generated approval states, miners. In industry these per between to promising day, progress year in the is world are into several poised upgrades the These of various U.S. XX bitcoin an ETFs, February, launching from catalysts proof in and forwards, of stride emerging significant new machines Looking designed anticipated a our crypto and already additional reserve experience return technologies legislation this made Aleo applications for to ranging zero-knowledge to tap miners. by Aleo with to -- -- mining XX attractive we to

will area. including continue and broadcasts U.S. We enhance see also maintain catalysts potential to this We the in to from Dogecoin, live of for short-term for several -- our products DOGE ETFs. our leadership Dogecoin department approval mining

have the advancing product allows suite expanded our an with without air-gapped application. an WebX We Internet technology step payments also Wallet, the our an in connection, featuring of launch Goldshell that important

and XXXX, to mining machines. operational be ahead of pillars half first DOGE built around our the will Aleo Looking our series

that gross and box cycle series margins. from confident contribute positively will orders have deferred for our -- series and some to we to strong the recognize QX QX revenue limitation, demand XXXX profitability DOGE products order the to will production While the are due Aleo XXXX our will

expectations I environment for conclusion in of U.S. relaxed will presidential industry more overview the a of the for the financial our XXXX. quarter, quarter market This with a the regulatory turning of filled fourth fourth witnessed a regulation Now brief future. In provide in cryptocurrency point optimistic the global cryptocurrency following industry was November. election

increase. XXX% to saw representing our QX performance. turning a million, So revenue year-over-year $XX.X reached financial our

rebound While orders as the -- in recognized note to market reflects limit. production revenue cycle XXXX the in the please be this in sentiment, will strong performance due QX that some

dip million, proportion slight period, a significant QX in Our XX% non-GAAP the increased miner adjusted despite to higher higher-margin Kaspa sales margin $X turnaround Dogecoin previous income net lower-margin by in products. Alephium a and compared to gross QX's of attributed to from

in R&D have for projects made new XXXX. investment for related substantial a We

the of XXXX, The net pressure was of was and the contributed lighter an Ethereum of price growth in cryptocurrency XX.X% gain expense gain company's our which support million due to fourth XX.X% approximately of QX. about expect half significantly profitability increase We in this also increase should quarter the to in Ethereum. fair the first further in primarily year. approximately income Moreover, $X for the in on value the and number

the sales in our altcoins Alephium full Kaspa and revenue performance was not the key XXX, industry also largely achieved In only underscore approach but investment achieved across insights across a growth metrics. sector. XXXX, also validates the year For This driven lines. we we our deep products mining by our Dogecoin, -- significant financial of

operational Our margin of gross that income level, remain adjusted we the confidence compared cycle. bull remain -- our middle -- an rebounds to in in net in experienced we'll revenue, and we'll the XXXX, non-GAAP reinforcing the under most

At the year-end, our total at assets stood $XXX million. approximately

totaled cash, Ethereum-based Our initiatives $XX.X underpins treasury strategy. future valued and total assets. representing $XX with million, crypto our assets at and equivalents, investments were comprised assets, or Ethereum ongoing about total Ethereum around roughly of short-term XX.X%. cash balance XX.X% XX% our cryptocurrencies holding million sheet of growth our around -- robust This Combined reinforces

million, anticipate approximately projected driven XXX half by to RMB RMB to product to of sales XXX XXXX market momentum. RMB million, with largely Looking QX continued around million revenue RMB million first reach forward, XXX we XXXX and new revenue XXX

Thank as you progress we crypto for the on across your attention. to our look drive cycle. growth We to updating continue forward you

Qianwen Wang

Thank you, Mr. Yan.

to At for I would questions. floor point, this open like the

You're welcome to ask questions in English. Chinese or

when purpose will necessary, discrepancy, statement for any our convenience We of In please language. management to translation case provide in refer only. original English the

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

Operator

from Benchmark -- Instructions] Palmer the of The Company. questions Mark line [Operator of from the First comes

Mark Palmer

fourth which you regard are to demand the quarter. are in mining of a point? nicely. bit talk crypto and what markets in for what definitely particularly about little for appreciate at to have Dogecoin XXXX Can increase the I with the seeing Dogecoin demand And you for your this terms extent we Dogecoin saw rebounded, expectations rigs

Chaowei Yan

Mark, you, Thank yes. yes,

of market always machines. future; potential, about considering of or are mining half a potential, the second We Dogecoin XXXX, the pioneer the the of the From we're seriously Dogecoin.

-- So to Dogecoin a we Dogecoin market, have the of have a -- R&D the surpass market on possibility so market. decade the to have believe decided serious is bitcoin we input potential the Dogecoin that a in mining mining mining to deep mining the market, future the

expect is And yes. for So firstly, patient, XXXX of firstly, keep for efficiency. machines mining yes, -- cost improve to further, diversify and perspective, existing -- -- hardware costs plan in just or we and our XXXX please will reduce our Dogecoin in reduce -- then the the the mining mining -- the mining the that we we --

have mining into Thank market We year. products the more competitive you. will Dogecoin launching this

Qianwen Wang

And to specifically. be

recognized order Some our very first revenue still machine of according Dogecoin the also, of is this And strong. be year. demand in will the to the of book, the quarter

Chaowei Yan

yes. yes, after Dogecoin's the surge we underestimated -- price firstly, -- Yes, Because, the election. Trump's

this mining significantly. So didn't Dogecoin prepared we balance in rigs. QX. can don't you. will turn you revenue Thank see these will -- And sheet enough increased on our And liability liability reflect -- prepared we our into contract contract that

Mark Palmer

Aleo mining the you And in can which is the I in move gone question coming time Very the expecting has company Can also you a zero-knowledge good. demand the talk about into terms of proof for space? are your what first mining, that Aleo into months? about equipment ask

Chaowei Yan

for you question. your Thank Yes.

And the project, Aleo been is think on developing therefore, finalized, company technology. began it's we based specialized zero-knowledge specialized future private of crypto we proof Firstly, Aleo trend. the immediately Aleo -- algorithm has And once optimistic the our And about computing field. that for algorithm the projects always was project, a a miner. the --

-- using we of we're So quick our our used consistent to market. time approach

for for mining close the road decision their -- mining in demand and it development mining attractive and also machine the mining the generating first Aleo Aleo market Aleo product And future very believe the upgrade and -- plan, make future future conditions are machines, so -- mining the -- the currently -- we plan, we Now the machine have quite Aleo monitor market. map, for the the -- make the And good. the the we the on we mining depend first this development total projects the will is that are accordingly. And of projects decision returns. also will

Qianwen Wang

Yes.

produce the said, -- And -- watch because of which asset think least first per machines and And professional for a series per around you products, $XX for that, buy it first DOGE of sales Aleo our in us, which Charles -- the Aleos that very of provider as generates series the series will this at day, our of to for we products which miners mining that rigs, of Aleo so year. our Just it around $XX machines half product miners. if strong day, attractive makes be around may very get products we Aleo this of world. will main a makes XX means sales demand. can to are And XX a you the is drivers the you attractive for Aleo revenue, the very this the

Operator

comes questions from Laura from next Our the Premia Lui Partners. of line

Laura Lui

for in to guidance based current So ask. on the the quarter, so Under I first first market the Or already about the overall half year the pressure about assumptions of the performances or development company's please? the did in quarter, the you of market market the optimistic first first the would what's neutral the current pressure? mentioned like quarter, you crypto also the of and make

Chaowei Yan

And market coins, all Yes. things -- Currently crypto the issuance to pressure. appetite. first the leading meme events, the think of concern to the a the of is we in recession, risk over for decline and series due many a decline economic -- -- an overall market hack improper including Bybit these leading to under

rate we interest cycle. still a However, believe in that is now cutting

crypto So of now, new keep it's the, for company develop so will cycle. into taken and yes the a assumptions the well, we QX Thank you. market, it bull the industry. the our we are -- for consideration. quarter is guidance. for And our -- -- and the our -- crypto remain and accumulating confident we And Ethereum in miners, relatively the -- And a fourth very situation conservative -- guidance quarter, current believe revenue market for now have XXXX

Laura Lui

the about market, for about ask also I year? crypto mentioned crypto you that now outlook the the can this company's So market

Chaowei Yan

Yes.

I think, yes...

Qianwen Wang

has just mentioned Actually outlook. Charles his

Chaowei Yan

Yes.

Qianwen Wang

just He channel. market interest is that that a the cutting believes rate he stated global in has

the So market way, although the to no the very think of market the on the days, we to has crypto liquidity whole whole we a relationship price a think is more a preference crypto bull very risk didn't cycle perform adjustment. recent we market, well the are the think in during but we but money about still the close -- world. of -- very It's

So still very optimistic the we're performance the about of whole market.

very to good it's well the we're performed market just -- the opportunity that the not seems -- Eric say, -- still as but buy dip. a Trump recently, Although

our Aleo And So order we a strong rigs we're performance. book, rigs. and still year's according this still very to confident on mining very mining series have our demand about series Dogecoin

our -- well are according Dogecoin this insist us, and strategy still seems market. some So of miners year. we upgrade it rebound all we why mining the of to that And accumulating are that's our prepared still -- in will the series machines for Ethereum

Operator

Yu from [ Our come Management ]. from questions Grow Investment next Kelvin

Unknown Analyst

the the market company's What XXXX, just mentioned in please? own catalysts are the growth The catalysts. company for

Chaowei Yan

you for Thank question. your

for catalysts, technology will Dogecoin Firstly, initiative performance. the new third market. also of our for in And performance, it is, the firstly altcoins, -- or which company's the price the have ETF Litecoin one they the if is increase price applies projects crypto And the of approval. financial our course, a new and good

all could So company's performance. these our factors enhance Thank potentially you.

Operator

Thank the questions. you for

We have the the back to hand no would for to questions further I closing. line. from like call management

Qianwen Wang

for website further questions joining -- a we'll you. our materials And conference. maybe line, further from day. the our no Thank can the are you there for for call in e-mail if thank information. it or visit you team IR Okay, IR And

Operator

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

disconnect. now may You

Intchains Group Limited (ICG) 28 Feb 252024 Q4 Earnings call transcript