Q2 2026 Intchains Group Ltd Earnings Call Transcript
Key Points
- Successfully completed the tape-out of the next-generation mining ASIC in July 2026, a major technical milestone that keeps the company on track for a commercial launch in Q4 2026.
- The new ASIC is architected to optimize performance, efficiency, and reliability using a mature process, which is expected to improve unit economics and returns on invested capital for miners.
- The company has a strong balance sheet with RMB461 million in cash, cash equivalents, deposits, and government securities, allowing it to fund next-generation chip development entirely from internal resources.
- Cost optimization efforts have realized approximately RMB23.1 million in annualized labor cost savings through organizational restructuring, divestiture of non-core business, and use of AI-enabled tools.
- The Board of Directors approved a $15 million share repurchase program over the next two years, reflecting confidence in the company's long-term strategic direction and commitment to shareholder value.
- The company is exploring new growth opportunities in artificial intelligence, including potential acquisitions, to extend its core competencies in custom ASIC design and hardware systems integration into AI-enabled computing applications.
- Revenue for the first half of 2026 was only RMB11.1 million, reflecting continued cyclical softness in mining demand and the impact of PRC mining machine sales restrictions announced in February.
- The company reported a net loss per ordinary share of RMB1.22 for the first half of 2026, with total operating expenses of RMB42 million.
- The new mining ASIC is expected to contribute only modest revenue in H2 2026, with a more meaningful impact not expected until fiscal 2027.
- The company expects continued market headwinds in the second half of 2026, which could further pressure financial performance.
- The company's strategy to not sell ETH and instead use operating cash to buy ETH may limit its ability to fund other initiatives if operating cash flow remains weak.
- The AI initiatives are still in early stages, and the company cannot provide accurate estimates of capital requirements or potential revenue contributions, adding uncertainty to future growth plans.
Thank you for standing by. My name is Prilla and I will be your conference operator today. At this time, I would like to welcome everyone to the Intchains Group Limited first half 2026 earnings conference call. (Operator Instruction) Thank you.
I would now like to turn the conference over to Alice Zhang with Equity Group. Please go ahead.
Thank you, operator. Good evening to everyone. Welcome to Intchains's first half 2026 earnings conference call.
Please be advised that the discussions on today's call will include forward-looking statements. These statements involve non and unknown risks and uncertainties and are based on the company's current expectations and projections regarding future events that may impact its financial condition, operating results and strategic direction. 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
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