Intchains Group H1 Earnings Call Highlights
Key Points
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- Weak first-half performance: Intchains reported RMB 11.1 million in H1 2026 revenue and a net loss of RMB 1.22 per share, with demand further hurt by PRC restrictions on mining-machine sales. The company ended the period with RMB 461 million in cash, deposits and government securities.
- Next-generation ASIC targeted for Q4 launch: The company completed tape-out in July and has begun engineering-sample production and testing, with a commercial launch planned through its Goldshell Miner series. Management expects a modest 2026 contribution and a more significant revenue impact in 2027.
- Capital allocation is shifting toward growth initiatives: Intchains achieved about RMB 23.1 million in annualized labor-cost savings, plans to maintain its ETH holdings and staking strategy without currently selling ETH, and authorized up to $15 million in share repurchases. It is also exploring AI acquisitions and custom-chip opportunities to reduce reliance on cryptocurrency cycles.
Intchains Group (NASDAQ:ICG) reported first-half 2026 revenue of RMB 11.1 million as demand for its products remained soft and was further affected by PRC restrictions on mining-machine sales announced in February. The company recorded total operating expenses of RMB 42 million and a basic and diluted net loss of RMB 1.22 per ordinary share.
Chief Financial Officer Charles Yan said Intchains ended the first half with RMB 461 million in cash and cash equivalents, deposits and government securities. He said the balance sheet has enabled the company to fund development of its next-generation mining chip program internally.
New ASIC Moves Toward Fourth-Quarter Launch
Intchains said it completed the tape-out of its next-generation mining application-specific integrated circuit, or ASIC, in July, marking the transition from chip design completion into manufacturing. The company is targeting a commercial launch in the fourth quarter of 2026.
Yan said the chip was designed using a mature manufacturing process and is intended to balance performance, efficiency, reliability and supply availability. The company has begun engineering-sample production and laboratory testing, including performance, reliability and thermal testing against internal benchmarks.
Subject to successful validation, Intchains plans to begin an initial production ramp and system-level integration before the planned launch. The new chip will be sold through the company’s Goldshell Miner series, according to Yan.
Management expects the ASIC to make a modest revenue contribution during the second half of 2026, with a more meaningful impact expected in 2027 as commercial production accelerates. Yan told analysts that mass production is expected to be on track in 2027 and that the company expects revenue that year to be better than in 2024 and 2025.
During the question-and-answer session, Yan said Intchains believes its forthcoming mining machine will offer leading performance among competitors for the new cryptocurrency it is designed to support, although he said the company may not be the first entrant in that market.
He added that if cryptocurrency markets do not recover, the new product would be Intchains’ primary revenue driver. If prices of cryptocurrencies including Dogecoin and Aleo recover, the company could see contributions from existing product lines, as it has already completed tape-outs and could order more wafers from its fabrication partner.
Cost Savings and ETH Treasury Strategy
Intchains said it had achieved about RMB 23.1 million in annualized labor-cost savings as of June 30 through organizational restructuring, the divestiture of a non-core chip-related business and increased use of artificial intelligence-enabled tools across operations. Yan said the company expects to continue its cost-discipline initiatives through the rest of the year.
As of June 30, the fair value of Intchains’ cryptocurrency assets, excluding stablecoins such as USDC and USDT, was RMB 98.9 million. Its holdings included about 9,176 ETH.
As of Aug. 20, the company had 4,556 ETH staked, including 3,556 ETH deposited through the Goldshell Staking platform and awaiting validator activation, as well as 1,000 ETH staked through FalconX.
Yan said Intchains plans to maintain a prudent ETH treasury and staking position, preserve its existing holdings and continue generating staking yield. However, the company intends to prioritize capital allocation toward its next-generation ASIC program and AI initiatives rather than additional ETH accumulation.
Responding to an analyst question, Yan said the company does not currently intend to sell ETH. He said Intchains’ strategy is to use profits from mining-machine sales to purchase ETH, while using cash for research and development, mining-machine sales, current operations and AI initiatives.
Share Repurchase and AI Opportunities
Intchains’ board approved a program authorizing the repurchase of up to $15 million of its American depositary shares over the next two years. The repurchases would be funded from the company’s existing cash balance.
Yan said the company intends to continue funding its ASIC business in a manner consistent with prior projects, including tape-outs, inventory purchases and product sales. The scale of capital required for potential AI acquisitions or initiatives will depend on the specific projects pursued, he said.
The company is evaluating early-stage growth opportunities in artificial intelligence, including potential acquisitions that could extend its custom ASIC design and hardware-system integration capabilities into AI-enabled computing applications. Management said the effort is intended to reduce the company’s reliance on cryptocurrency market cycles over time, though it did not provide a timetable or financial projections for those initiatives.
Yan said Intchains expects staking to provide more meaningful revenue in 2027 than in 2026 and 2025. He added that any meaningful progress in the company’s AI initiatives could provide additional revenue, but said the company could not yet estimate the size of that contribution.
About Intchains Group (NASDAQ:ICG)
Intchains Group Ltd (NASDAQ: ICG) is a technology company specializing in blockchain-based big data solutions. The company offers a suite of products and services aimed at enhancing data security, traceability and certification across diverse industries. Its core offerings include blockchain-powered data rights management, digital certificate issuance, supply-chain traceability platforms and analytics tools that leverage immutable ledgers to ensure data integrity.
Established in 2016 and headquartered in Beijing, Intchains Group serves a range of clients including government agencies, logistics providers, manufacturers and financial institutions.
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