Intchains Group Limited

For first half 2026, Intchains reported revenue of RMB 11.1 million, total operating expenses of RMB 42 million, and a basic and diluted net loss per ordinary share of RMB 1.22. Management said results were affected by cyclical softness in outgoing demand and PRC mining machine sales restrictions announced in February. The company ended the period with RMB 461 million in cash and cash equivalents, deposits and government securities. Looking ahead, management expects the new ASIC to contribute modest revenue in H2 2026, with a larger contribution in fiscal 2027, and reiterated a Q4 2026 commercial launch target.

Chaowei Yan framed the quarter as a period of deliberate investment through a weak demand cycle, saying the company chose to keep funding next-generation ASIC development so it would be ready when the market turns. He emphasized that the July tape-out was a key milestone and said the new chip is designed to improve efficiency, reliability, supply availability, and unit economics for miners. He also highlighted an early-stage push into AI-related opportunities, including possible acquisitions, as part of a longer-term effort to reduce reliance on crypto cycles and build a more resilient revenue base.

Yan said the company finished the first half with RMB 461 million in cash and cash equivalents, deposits and government securities, which funded the next-generation chip program internally. He noted approximately RMB 23.1 million in annualized labor cost savings from organizational restructuring, divestiture of a noncore chip-related business, and expanded use of AI-enabled tools. On treasury management, he said the fair value of crypto assets excluding stablecoins was RMB 98.9 million, including about 9,176 ETH as of June 30, 2026, and that the company does not intend to sell ETH or further use current cash to buy ETH under its present strategy. He also said the board authorized up to $15 million of ADS repurchases over two years, funded from existing cash.

Analysts focused on capital allocation, asking how buybacks, R&D, ETH holdings, and possible AI M&A fit together. Management said the $15 million repurchase program is planned, routine ASIC R&D will continue, and AI/M&A spending will depend on the specific projects, with no precise capital estimate yet. On ETH, management said it will not sell ETH and currently intends to use operating profits rather than current cash to buy more, while keeping cash for R&D, the core mining business, and AI initiatives. Questions about 2027 and competition drew a response that the new ASIC should launch in Q4 2026, contribute some revenue in H2 2026, and become a much bigger driver in 2027, with management saying the product’s competitive position is strong and the market for the new coin is not intense.