Intchains Group Limited Reports First Quarter 2025 Unaudited Financial Results

Core Insights - Intchains Group Limited reported total revenues of US$18.2 million for Q1 2025, a significant increase of 445.5% year-over-year, driven primarily by strong demand for its Aleo series mining machines [7][30] - The company achieved income from operations of US$5.1 million, marking a turnaround from a loss in the prior-year period [14][30] - The company held approximately 7,023 ETH as of March 31, 2025, reflecting a 23.2% increase quarter-over-quarter [5][30] Financial Performance - Total revenues for Q1 2025 were RMB132.4 million (US$18.2 million), up from RMB24.3 million in Q1 2024 [7][30] - Cost of revenue was RMB57.0 million (US$7.9 million), representing a 273.8% increase from RMB15.3 million in the same period of 2024, but the growth rate was lower than revenue growth due to higher gross margins from Aleo series machines [8][30] - Operating expenses decreased by 11.8% to RMB38.4 million (US$5.3 million) compared to RMB43.6 million in Q1 2024, primarily due to reduced research and development expenses [9][30] Cryptocurrency Strategy - The company introduced the Goldshell Byte, a dual-mining machine designed for flexibility and retail participation, enhancing its competitive position in the altcoin mining market [4][21] - Despite downward pressure on small- and mid-cap cryptocurrencies, the company maintained its long-term dollar-cost averaging strategy for Ethereum [5][6] - The fair value of the company's cryptocurrency assets, excluding stablecoins, was RMB101.6 million (US$14.0 million), primarily consisting of ETH [14][30] Market Position and Innovations - The Aleo series mining machines were launched in response to market dynamics and have proven profitable for miners, contributing significantly to the company's revenue [3][20] - The company views the recent Ethereum Pectra upgrade and the appointment of a new board of directors as positive developments for the blockchain technology landscape [6][30] - Sales volume of altcoin mining products, measured by the number of embedded ASIC chips, increased by 43.6% year-over-year, with 709,857 units sold in Q1 2025 [14][30]