Intchains(US:ICG)2025-08-14 20:32Financial Performance - Revenue for Q2 2025 was RMB43.2 million (US$6.0 million), a decrease of 64.9% from RMB123.0 million in Q2 2024[21] - Loss from operations for Q2 2025 was RMB16.2 million (US$2.3 million), compared to income from operations of RMB58.1 million in Q2 2024[24] - Net income for Q2 2025 decreased by 24% to RMB38.3 million (US$5.3 million) from RMB50.4 million in Q2 2024[29] - Income from operations for H1 2025 was RMB20.8 million (US$2.9 million), a decrease of 11.7% from RMB23.5 million in H1 2024[37] - Interest income decreased by 24.8% to RMB6.2 million (US$0.9 million) in H1 2025 from RMB8.3 million in H1 2024[38] - Net income for H1 2025 was RMB4.3 million (US$0.6 million), significantly down from RMB35.6 million in H1 2024[41] - Non-GAAP adjusted net income for H1 2025 was RMB8.4 million (US$1.2 million), down from RMB39.3 million in H1 2024[42] - Basic and diluted net income per ordinary share for H1 2025 were both RMB0.04 (US$0.006), compared to RMB0.3 for the same period in 2024[43] - For the three months ended June 30, 2025, the company reported a net income of RMB 38,252, a decrease of 24% compared to RMB 50,355 in the same period of 2024[57] - The non-GAAP adjusted net income for the same period was RMB 40,413, down from RMB 52,637, reflecting a decline of 23%[57] - For the six months ended June 30, 2025, the company reported a net income of RMB 4,255, a significant drop from RMB 35,560 in the same period of 2024[59] - The non-GAAP adjusted net income for the first half of 2025 was RMB 8,438, down from RMB 39,294, indicating a decline of 79%[59] - The basic and diluted non-GAAP adjusted net income per share for the first half of 2025 was RMB 0.07, compared to RMB 0.33 in the first half of 2024, a decrease of 79%[59] Assets and Liabilities - Total current assets as of June 30, 2025, were RMB677.1 million (US$94.5 million), a decrease from RMB720.9 million as of December 31, 2024[52] - Total assets as of June 30, 2025, were RMB1,059.6 million (US$147.9 million), down from RMB1,089.5 million as of December 31, 2024[52] - Total liabilities decreased to RMB32.9 million (US$4.6 million) as of June 30, 2025, from RMB76.4 million as of December 31, 2024[52] Revenue Growth - Revenue for H1 2025 was RMB175.6 million (US$24.5 million), reflecting a 19.2% increase from RMB147.3 million in H1 2024[33] - Products revenue for H1 2025 was RMB175.6 million (US$24.5 million), an increase from RMB147.3 million in H1 2024[55] Cryptocurrency Holdings - The company accumulated 8,816 ETH as of June 30, 2025, a 25.5% increase from 7,023 ETH as of March 31, 2025[15] - The fair value of cryptocurrency assets, excluding stablecoins, was RMB157.7 million, primarily from ETH holdings valued at RMB157.4 million (US$22.0 million)[10] - The total market value of cryptocurrency held at the end of the quarter was approximately RMB 24,319,332, reflecting the company's significant investment in digital assets[61] - The company held 8,140 ETH with a market value of approximately RMB 21,186,437 as of June 30, 2025[61] Research and Development - Research and development expenses increased by 15.0% to RMB15.2 million (US$2.1 million) for Q2 2025 from RMB13.2 million in Q2 2024[28] - The company invested approximately RMB41.6 million in R&D for new mining machines since the beginning of 2025[10] Future Outlook - The company expects revenues for the second half of 2025 to be impacted by softer sales due to altcoin price volatility[12] - The company plans to deploy a portion of its ETH holdings into yield-generating activities, including staking and liquidity provisioning[16] Cryptocurrency Valuation Changes - The change in fair value of cryptocurrencies resulted in a loss of RMB28.0 million (US$3.9 million) for H1 2025, compared to a gain of RMB5.2 million in H1 2024, primarily due to a 28% decrease in ETH price[39] Share-Based Compensation - Share-based compensation expenses for Q2 2025 were RMB 2,161, slightly lower than RMB 2,282 in Q2 2024[57]