SHANGHAI, China, Feb. 28, 2024 (GLOBE NEWSWIRE) — Intchains Group Limited (Nasdaq: ICG) (“we,” or the “Company”), a provider of integrated solutions consisting of high-performance computing ASIC chip products and ancillary software and hardware for blockchain applications, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2023.
Fourth Quarter 2023 Operating and Financial Highlights
- Sales volume of ASIC chips was 423,040 units for the fourth quarter of 2023, representing a decrease of 36.5% from 666,420 units for the same period of 2022. Fourth quarter ASIC chip sales consisted of 287,872 units sold directly to customers and 135,168 units embedded in computing equipment for blockchain applications that we began offering to customers in the fourth quarter of 2023.
- Revenue was RMB35.5 million (US$5.0 million) for the fourth quarter of 2023, representing an increase of 5.3% from RMB33.7 million for the same period of 2022.
- Net income was RMB8.1 million (US$1.1 million) for the fourth quarter of 2023, representing a decrease of 36.2% from RMB12.7 million for the same period of 2022.
Full Year 2023 Operating and Financial Highlights
- Sales volume of ASIC chips was 1,457,373 units for the year ended December 31, 2023, representing a year-over-year decrease of 55.0% from 3,235,235 units for 2022. Full year 2023 ASIC chip sales consisted of 1,322,205 units sold directly to customers and 135,168 units embedded in computing equipment for blockchain applications that we began offering to customers in the fourth quarter of 2023.
- Revenue was RMB82.2 million (US$11.6 million) for the year ended December 31, 2023, representing a year-over-year decrease of 82.6% from RMB473.7 million for 2022.
- Net loss was RMB26.8 million (US$3.8 million) for the year ended December 31, 2023, compared to a net income of RMB355.2 million for 2022.
Mr. Qiang Ding, Chairman of the Board of Directors and Chief Executive Officer, commented, “2023 was a year filled with accomplishments as well as challenges for Intchains. Our successful first quarter listing on the Nasdaq marked the commencement of an exciting new stage in our development. Throughout the year, we actively addressed evolving market conditions with investments in innovative technology, enhancing our competitiveness, and extending our presence across the industry value chain. Our latest ASIC chip, designed and manufactured using a 12nm process node, completed the relevant IC verification and trial production processes in February 2024 and is set to enter mass production in March 2024. Furthermore, following our successful acquisition of the Goldshell brand and related assets in February 2024, we expect to officially launch our Goldshell-branded computing equipment for blockchain applications in March 2024. In addition to these positive developments, our revenue for the fourth quarter of 2023 experienced significant growth of 418.2% compared to the third quarter, due to the fourth quarter rebound of the cryptocurrency market, following a downturn in the preceding quarter. As a result, we achieved quarterly profitability for the fourth quarter of 2023. Despite short-term volatility, we are confident in the industry’s trajectory for 2024 and the long-term prospects of the entire WEB3 landscape. We will continue to optimize capital utilization efficiency as we pursue further development opportunities along the value chain, laying a robust foundation for our sustainable growth.”
Fourth Quarter 2023 Financial Results
Revenue
Cost of Revenue
Operating Expenses
Total operating expenses were RMB22.8 million (US$3.2 million) for the fourth quarter of 2023, representing an increase of 79.0% from RMB12.7 million for the same period of 2022. This increase was due to an increase in each category of operating expenses.
- Research and development expenses increased by 40.2% to RMB14.0 million (US$2.0 million) for the fourth quarter of 2023 from RMB10.0 million for the same period of 2022. The increase was primarily attributable to increased intellectual property expenses, labor costs and depreciation and amortization expenses for the design of ASIC chips.
- Sales and marketing expenses increased by 65.3% to RMB1.8 million (US$0.3 million) for the fourth quarter of 2023 from RMB1.1 million for the same period of 2022, mainly driven by increased personnel-related expenses.
- General and administrative expenses increased by 316.6% to RMB7.0 million (US$1.0 million) for the fourth quarter of 2023 from RMB1.7 million for the same period of 2022, primarily due to increased lease-related expenses, labor costs, and professional expenses.
Interest Income
Other Income, Net
Our other income, net, decreased by 29.6% to RMB7.5 million (US$1.1 million) for the fourth quarter of 2023 from RMB10.6 million for the same period of 2022. The decrease was primarily due to a decrease in grants received from the local government. The grants were issued in support of eligible IC industry projects with no repayment obligations.
Net Income
As a result of the foregoing, we recorded a net income of RMB8.1 million (US$1.1 million) for the fourth quarter of 2023, representing a decrease of 36.2% from RMB12.7 million for the same period of 2022.
Basic and Diluted Net Earnings Per Ordinary Share
Full Year 2023 Financial Results
Revenue
Cost of Revenue
Operating Expenses
Total operating expenses were RMB74.0 million (US$10.4 million) for 2023, representing an increase of 15.7% from RMB64.0 million for 2022. This increase was primarily due to increases in both sales and marketing expenses and general and administrative expenses, partially offset by a decrease in research and development expenses.
- Research and development expenses decreased by 12.6% to RMB42.3 million (US$6.0 million) for 2023 from RMB48.4 million for 2022. The decrease was primarily attributable to the different stages of our research and development projects during the reporting period, partially offset by an increase in labor costs and depreciation and amortization expenses.
- Sales and marketing expenses increased by 60.5% to RMB6.5 million (US$0.9 million) for 2023 from RMB4.1 million for 2022, mainly due to an increase in personnel-related expenses.
- General and administrative expenses increased by 118.1% to RMB25.2 million (US$3.6 million) for 2023 from RMB11.6 million for 2022, primarily due to an increase in rental expenses, labor costs and professional expenses.
Interest Income
Other Income, Net
Net Loss
As a result of the foregoing, we recorded a net loss of RMB26.8 million (US$3.8 million) for the year ended December 31, 2023, compared with a net income of RMB355.2 million for the year ended December 31, 2022.
Basic and Diluted Net Loss Per Ordinary Share
Basic and diluted net loss per ordinary share were RMB0.22 (US$0.03) for the year ended December 31, 2023, compared with basic and diluted net earnings per ordinary share of RMB3.02 for the year ended December 31, 2022. Each ADS represents two of the Company’s Class A ordinary shares.
Recent Developments
On February 28, 2024, the Company completed its previously reported acquisition of certain assets from Singapore-based GOLDSHELL PTE. LTD., or the Seller, in accordance with an asset acquisition agreement between the Company and the Seller dated December 8, 2023. Pursuant to the terms and conditions of such asset acquisition agreement, the Company acquired the Goldshell brand and certain related assets for a cash consideration of US$550,000.
On January 22, 2024, Maxim Partners LLC exercised the underwriter’s warrants granted in connection with our initial public offering on the Nasdaq Capital Market in full through a cashless exercise to acquire 7,921 of our ADSs.
Conference Call Information
Event Title:
Date:
Time:
Registration Link:
Intchains Group Limited Fourth Quarter and Full Year 2023 Earnings Conference Call
February 28, 2024
8:00 P.M. U.S. Eastern Time
https://register.vevent.com/register/BI57545434a6a24bcd8e534e49cf5b4c7d
All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of dial-in numbers and a personal access PIN, which will be used to join the conference call.
Additionally, a live and archived webcast of the conference call will also be available at the Company’s website at: https://intchains.com/.
About Intchains Group Limited
Exchange Rate Information
Forward Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Forward-looking statements include, but are not limited to, statements about: (i) our goals and strategies; (ii) our future business development, formed condition and results of operations; (iii) expected changes in our revenue, costs or expenditures; (iv) growth of and competition trends in our industry; (v) our expectations regarding demand for, and market acceptance of, our products; (vi) general economic and business conditions in the markets in which we operate; (vii) relevant government policies and regulations relating to our business and industry; and (viii) assumptions underlying or related to any of the foregoing. Investors can identify these forward-looking statements by words or phrases such as “may,” “could,” “will,” “should,” “would,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “project” or “continue” or the negative of these terms or other comparable terminology. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.
For investor and media inquiries, please contact:
Intchains Group Limited
Investor relations
Email: [email protected]
Piacente Financial Communications
In China
Helen Wu
Tel: +86-10-6508-0677
Email: [email protected]
In The United States
Brandi Piacente
Tel: +1-212-481-2050
Email: [email protected]
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