Intchains Group Limited Reports Third Quarter 2024 Unaudited Financial Results

Core Viewpoint - Intchains Group Limited reported significant growth in its third quarter financial results for 2024, with a notable increase in revenue and a shift from net loss to net income, driven by the rising demand for its ASIC chip products and strategic cryptocurrency acquisitions [1][3]. Financial Performance - Sales volume of ASIC chips reached 207,838 units in Q3 2024, up 25.9% from 165,056 units in Q3 2023 [2]. - Revenue for Q3 2024 was RMB60.3 million (US$8.6 million), a substantial increase of 781.4% from RMB6.8 million in Q3 2023 [2][4]. - Net income for Q3 2024 was RMB3.2 million (US$0.5 million), compared to a net loss of RMB19.1 million in Q3 2023 [2][7]. - Non-GAAP adjusted net income for Q3 2024 was RMB6.4 million (US$0.9 million), a turnaround from a non-GAAP adjusted net loss of RMB17.6 million in Q3 2023 [2][7]. Cost and Expenses - Cost of revenue for Q3 2024 was RMB19.5 million (US$2.8 million), up 29.6% from RMB15.1 million in Q3 2023, but the increase was lower than revenue growth due to higher gross margins on new ASIC products [5]. - Total operating expenses were RMB37.7 million (US$5.4 million) for Q3 2024, a 90.8% increase from RMB19.7 million in Q3 2023, primarily due to higher research and development and general administrative expenses [6]. Cryptocurrency Holdings - As of September 30, 2024, the fair value of cryptocurrency assets was RMB149.5 million (US$21.3 million), including approximately 4,149 ETH valued at RMB76.4 million (US$10.9 million) [2][3]. - The company reported a loss on the fair value of cryptocurrency of RMB13.1 million (US$1.9 million) in Q3 2024, attributed to market volatility, with ETH prices falling approximately 24.2% during the quarter [6]. Strategic Initiatives - The company launched Goldshell Pay in Q3 2024, a blockchain payment solution aimed at providing a one-stop service for merchants, which is currently in trial phase [8]. - Plans to launch a hardware crypto wallet in Q4 2024 and to complete the production of new ASICs by Q1 2025 were announced, indicating ongoing commitment to innovation and application expansion [3].