Intchains Group (ICG) Q2 2024 earnings summary

Executive summary

• Revenue surged 785.1% year-over-year in Q2 2024 to RMB123.0 million ($16.9 million), driven by strong sales of new ASIC chip products and successful product launches for Alephium, Kaspa, Litecoin, and Dogecoin mining equipment.

• Net income reached RMB50.4 million ($6.9 million), reversing a net loss of RMB20.5 million in Q2 2023 and reflecting improved profitability.

• Overseas revenue accounted for 71.7% of total, a significant shift from over 90% domestic revenue in the previous quarter, reflecting successful international expansion post-Goldshell acquisition.

• Cryptocurrency holdings at quarter-end were valued at RMB135.7 million ($18.7 million), mainly in ETH, USDT, and USDC, with ETH holdings rising to 2,417.

• The company continues to focus on technological innovation and expanding its Web3 product portfolio beyond mining machines.

Financial highlights

• Q2 2024 revenue reached RMB123 million ($16.9 million), up from RMB13.9 million ($1.9 million) in Q2 2023, a 785% YoY growth.

• Gross profit for Q2 2024 was RMB82.1 million ($11.3 million), compared to a loss of RMB16.8 million ($2.3 million) in Q2 2023.

• Basic and diluted net earnings per ordinary share were RMB0.42 ($0.06), compared to a net loss per share of RMB0.17 last year.

• Cost of revenue increased 33.2% to RMB40.9 million ($4.5 million), with a lower percentage increase than revenue due to higher gross margins on new products.

• Total operating expenses rose 40.2% to RMB24.3 million ($3.3 million), mainly from higher R&D, sales, and G&A expenses.

Outlook and guidance

• Plans to continue holding and accumulating Ether as a long-term asset, with holdings rising from 825 to 2,417 Ether in Q2 2024.

• Intends to further diversify product lines and expand internationally, leveraging the Goldshell brand.

• Focus remains on technological innovation and delivering efficient solutions for the WEB3 industry.

• Management expects continued growth opportunities from new product launches and overseas expansion.