Transcript • Feb. 27, 2026 1:00 AM • Intchains Group Limited (ICG)
Transcript
Feb. 27, 2026 1:00 AM
Intchains Group Limited (ICG)
Operator: Thank you for standing by. Welcome to the InChance Group Limited fourth quarter and full year 2025 earnings conference call. All lines have been placed on you to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star 1 on your telephone keypad. If you would like to draw your question, please press the star 1 again. Thank you. I would now like to turn the conference over to Alice Zhang with Equity Group. You may begin.
Alice Zhang: Thank you, operator. Good evening to everyone. Welcome to Incheon's fourth quarter and four-year 2025 earnings conference call. Please be advised that the discussions on today's call will include forward-looking statements. These statements involve known and unknown risk 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 investors that actual results may differ materially from the anticipated results. Investors should review other factors that may affect its future results in the company's registration statement and other filings with the SEC. The company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances or changes in its expectations, except as required by law. Please note that in today's call, we'll discuss certain non-GAAP financial measures. Please also refer to the reconciliation of non-GAAP measures to the comparable GAAP measures in the earnings press release. The presentation and webcast replay of this conference call will be available on the InChance website at www.ir.inchance.com. It is my pleasure to introduce InChance CFO, Mr. Charles Yen, who will provide an overview of full-year 2025 financial results, recent operational achievements, and the company's long-term growth strategies before opening the floor for questions. Charles, please go ahead.
Charles Yen: Thank you, Alice, and welcome, everyone. engaged in the design and development of altcoin mining machines, each accumulation and yield generating strategies, as well as the delivery of Web3 infrastructure services. Starting December 2025, following the completion of acquisition and launch of our Gold Shield stake platform, we also provide cryptocurrency staking services for individual and institutional crypto investors. Altcoin mining hardware and Ethereum accumulation and staking activities are the other core pillars of our businesses and with sales of our mining machine being the primary source of our revenues. As discussed in the past, we operate in an industry heavily influenced by cyclical volatility and this has impacted net revenue for full year 2025. Despite short-term market volatility, our ability to continuously and promptly deliver state-of-the-art mining products showcases our business agility supported by a long-term commitment in R&D. 2025 was highlighted by launch of a series of mining products, including Allio, Dogecoin, and XTM Miners. In Q1, we introduced our first Allio mining series to the market in response to the rapid growth of the Allio crypto demand. The launch achieved a strong customer adoption and contributed to substantially increased revenues in the first quarter. During the year, we also launched our groundbreaking Gold Shield Byte dual miner. an innovative solution that allows our customers to maximize mining returns by switching seamlessly between algorithm cards according to market conditions. This new machine has generated significant market interest and more support mining across six different cryptocurrencies using our proprietary algorithm cards. Throughout 2025, These products experience rapid iterations with multiple additional product models released for Allio and Dogecoin miners. Late in this year, we introduced XTM miners, another high-performing miner series, which accounted for a significant portion of our Q4 net revenue. Together, these product launches have reinforced our market competency, reflecting InterChance's capabilities to season early market share in the innovative altcoin projects with the top tier next generation miners. During the year, we also continued to explore ways to elevate our ETH accumulation, holding, and staking strategies. On the East accumulation side, we continued executing a disciplined and a self-founded East purchase strategy, always mindful of prevailing market conditions and price, more so during the second half of the year. 2025 was characterized by significant swings in East pricing. driven by macroeconomic uncertainty, shifting liquidity conditions, and evolving institutional participation in digital assets. ETH experienced periods of sharp upward momentum, followed by notable corruptions, creating a volatile but opportunity-rich environment. During a year full of volatility in ETH and the overall crypto market, we adopted a more mindful approach in accumulating ETH. and took a conservative and strategic capital allocation approach in the second half of 2025. That said, our long-term conviction in Ethereum ecosystem hasn't changed, and ETH remains the core digital asset in our crypto transfer strategy. As of December 31, 2025, we held a total of 8,826 ETH, increasing from 5,702 a year ago, growing this position by 56%. The same volatility continued in 2026, with ETH trading within a broad range as macro and crypto sentiment fluctuated. In February, ETH stabilized in a range that highlighted opportunistic entry points for long-term accumulation. As a result, we are pleased to announce that by February 23, 2026, we hit another significant milestone of our yeast accumulation strategy with over 9,000 units of yeast and remain one of the top players of yeast treasury holders. Moving into the staking aspect of yeast holding, In 2025, we expanded our digital asset strategy by partnering with FalconX to support e-staking activities. Through FalconX institutional-grade platform, we are able to securely stake a portion of our e-holding, generating yields while maintaining operational flexibility and strong risk controls. Furthermore, In December 2025, we acquired a proof-of-stake platform and launched GoldShow stake platform, which operates as an independent POS service platform under the GoldShow brand. As part of Interchange's comprehensive Web3 infrastructure offering, we now provide proof-of-currency stake services for individual and institutional investors, converting ETH, Avalanche, Menta, and Conflux and expect to expand this line business to broader international market, leveraging GoldShield's existing customer base and market presence. I will provide additional details on dating strategy for 2026 shortly, turning to a summary of our full year 2025 financial performance as compared to full year 2024. FY2025 revenue of 220.9 million RMB or 31.6 million US dollar decreased by 21.6% due to cyclical fluctuations in the market and softer demand for our products in this period. Whereby our aluminum mining machine series contributed to increased revenues in the first six months in 2025 and overall demand for our products become softer during the second half. FY2025 cost of revenue was 204.9 million RMB or 29.3 million US dollar, an increase of 56.1% impacted by impairment charges recorded against excess mining machines inventory for certain altcoin mining machines during the period. FY205 total operating expenses were 120.6 million RMB or 17.3 million USD decreased by 18.7%, primarily as a result of lower sales and RMB expenses. and primarily due to the reduced expenses related to the preliminary research costs conducted for new altcoin mining projects. As a result of lower revenues and gross margins, FY 2025 loss for operating was 104.7 million RMB or 50 million USD compared to the income from operations of 2.9 million RMB. FY 2025 interest income was 11 million RMB or 1.6 million USD decreased from FY2024 mainly due to cash used to acquire East-based cryptocurrency. For the full year period, we recorded a gain in fair value of cryptocurrency of 4.8 million RMB or 0.7 million USD, primarily a result of increased East holdings by 3,117 units since the beginning of the year, partially offset by an approximately decrease of 12.6% in each price during the period. That loss for FY 2025 was 52 million RMB or 7.4 million US dollar, compared to a net income of 51.5 million RMB in FY2024. We continue to maintain a strong balance sheet. As of December 31, 2025, our cash provision, which consisted of cash and cash equivalents, deposits, and government securities listed in long-term investments and short-term investments, was 67.8 million US dollars. We had current assets of 83.2 million US dollars, total assets of 145.2 million US dollars, and total liability of just 6.2 million dollars. And I would now like to provide an update to sales of our outpoint mining machines in mainland China before discussing our 2026 strategies and business focus. On February 6th, a notice on further preventing and handling risks related to virtual currency was issued, prohibiting the provision of services such as sale of mining machines within mainland China by mining machine production enterprises. In response to the notice and to ensure full compliance, we are enhancing internal control policies and undertaking rectification measures. I would like to note that although our primary sales markets have consists of overseas end users as well as domestic channel partners within China, the companies This model is designed to serve a global customer base and our channel partners purchase are primarily for export purpose. So as detailed in our early release, management does not expect a notice to have a material adverse impact on company's business, financial condition, or result of operations. Now moving on to our 2026 business strategies. For 2026 and beyond, our growth is centralized on continued investment in R&D on the development and the sale of our gold shale mining machines and our ETH accumulation and staking activities, supplemented with cost optimization to improve overall financial performance. In first half of 2026, we remain focused on generating revenues from the sale of our existing mining machine series that were launched in 2025, including Alio, Dogecoin, XTM,
Operator: Excuse me, ladies and gentlemen, please continue to stand by. Our conference will resume momentarily. Thank you.
