Intchains Group (ICG) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $10.2 million (RMB74.2 million), up 109% year-over-year, driven by strong demand for altcoin mining products and a rebound in the cryptocurrency market, with some orders deferred to 2025 due to production cycles.

• Non-GAAP adjusted net income for Q4 2024 was $2 million (RMB14.8 million), a 54% increase year-over-year, with significant gains from Ethereum holdings and favorable market conditions.

• FY2024 revenue was $38.6 million (RMB281.8 million), up from $11.3 million in FY2023, with gross margin rising from 11.0% to 53.7%.

• ETH-based cryptocurrency holdings increased to 5,702 units as of Dec 31, 2024, up 37% quarter-over-quarter, with fair value at $19.7 million (RMB148.8 million).

• Strategic initiatives included launching the Aleo Series/AE BOX mining product and expanding the hardware wallet and Web3 application ecosystem.

Financial highlights

• Q4 2024 revenue: $10.2 million (RMB74.2 million), a 109% increase year-over-year; full-year revenue: $38.6 million (RMB281.8 million), up 242.7%.

• Non-GAAP adjusted net income: $2 million (RMB14.8 million) in Q4, up 54% year-over-year; FY2024 adjusted net income: $8.3 million (RMB60.5 million).

• Q4 2024 gross margin was 26.2%, down from 67.7% in Q3 2024 due to lower-margin product mix; FY2024 gross margin improved to 53.7%.

• Gain on fair value of cryptocurrency in Q4 was about $4 million (RMB29.2 million), mainly from a 31.5% increase in Ethereum price and a 37.4% increase in Ethereum holdings.

• Year-end total assets: $149 million; crypto assets: $24.7 million (16.6% of total), with Ethereum at 13.2%.

Outlook and guidance

• Q1 2025 revenue guidance is set conservatively at RMB100–120 million, reflecting current market pressures and risk appetite; H1 2025 projected at RMB200–250 million, driven by new product sales and continued market momentum.

• Strong demand expected for Aleo and Dogecoin mining rigs, with deferred Q4 orders to be recognized in Q1 2025.

• Ongoing Ethereum treasury strategy with dollar-cost averaging.

• The company remains optimistic about the crypto market, citing the ongoing bull cycle and interest rate cuts.