Intchains Group Limited Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results

Core Viewpoint - Intchains Group Limited reported a significant decline in sales volume and revenue for both the fourth quarter and full year of 2023, while also highlighting recent strategic developments and a rebound in the cryptocurrency market towards the end of the year [1][4]. Fourth Quarter 2023 Operating and Financial Highlights - Sales volume of ASIC chips decreased by 36.5% to 423,040 units compared to 666,420 units in Q4 2022 [2]. - Revenue for Q4 2023 was RMB35.5 million (US$5.0 million), an increase of 5.3% from RMB33.7 million in Q4 2022 [2][5]. - Net income for Q4 2023 was RMB8.1 million (US$1.1 million), down 36.2% from RMB12.7 million in Q4 2022 [2][12]. Full Year 2023 Operating and Financial Highlights - Total sales volume of ASIC chips for 2023 was 1,457,373 units, a decrease of 55.0% from 3,235,235 units in 2022 [3]. - Full year revenue was RMB82.2 million (US$11.6 million), representing an 82.6% decline from RMB473.7 million in 2022 [3][14]. - The company recorded a net loss of RMB26.8 million (US$3.8 million) for 2023, compared to a net income of RMB355.2 million in 2022 [3][20]. Recent Developments - The company completed the acquisition of the Goldshell brand and related assets for US$550,000 in February 2024, which is expected to enhance its product offerings in the blockchain space [4][22]. - A new ASIC chip designed with a 12nm process node is set to enter mass production in March 2024 [4]. Revenue and Cost Analysis - The increase in Q4 2023 revenue was primarily due to a one-off sale of intelligent router products, generating RMB12.6 million, which offset the decline in ASIC chip sales [5]. - Cost of revenue for Q4 2023 was RMB14.1 million (US$2.0 million), a decrease of 29.3% from RMB20.0 million in Q4 2022, mainly due to the reversal of a previous write-off related to intelligent router products [7][14]. - Total operating expenses for Q4 2023 increased by 79.0% to RMB22.8 million (US$3.2 million) compared to RMB12.7 million in Q4 2022, driven by higher research and development, sales and marketing, and general and administrative expenses [8][9]. Earnings Per Share - Basic and diluted net earnings per ordinary share decreased by 36.4% to RMB0.07 (US$0.01) for Q4 2023 from RMB0.11 in Q4 2022 [13][34].