Intchains Group Limited Reports First Quarter 2024 Unaudited Financial Results

Core Viewpoint - Intchains Group Limited reported a net loss of RMB14.8 million (US$2.1 million) for Q1 2024, a significant decline from a net income of RMB4.7 million in Q1 2023, highlighting challenges in revenue generation and increased operating expenses [2][7][8]. Financial Performance - Revenue for Q1 2024 was RMB24.3 million (US$3.4 million), down 6.8% from RMB26.0 million in Q1 2023, primarily due to a one-off sale of intelligent router products in the previous year [2][3]. - The sales volume of ASIC chips remained stable at 494,235 units in Q1 2024, compared to 497,854 units in Q1 2023, with 410,162 units sold directly to customers and 84,073 units embedded in computing equipment [2]. Cost and Expenses - Cost of revenue increased by 15.2% to RMB15.3 million (US$2.1 million) in Q1 2024, driven by a RMB4.4 million inventory write-down [4]. - Total operating expenses surged by 168.3% to RMB38.1 million (US$5.3 million) in Q1 2024, largely due to a 357.0% increase in research and development expenses to RMB36.5 million (US$5.1 million) [5]. Cryptocurrency Holdings - As of March 31, 2024, the fair value of the company's cryptocurrency assets was RMB23.6 million (US$3.3 million), primarily consisting of approximately 825 ETH valued at RMB21.9 million (US$3.1 million) [2]. - The company has initiated a cryptocurrency acquisition strategy focusing on ETH-based cryptocurrencies as a long-term asset reserve [8]. Recent Developments - The company began trial production and sales of the Goldshell-branded Box series computing equipment for blockchain applications in Q1 2024, which received positive market feedback [2]. - Intchains is committed to enhancing its R&D capabilities and developing additional ASIC chip products for the WEB3 industry [2].