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Thank you for standing by. Welcome to the Intchains Group Limited Fourth Quarter and Full Year 2025 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Alice Zhang with The Equity Group. You may begin.

Thank you, operator. Good evening to everyone. Welcome to Intchains' Fourth Quarter and Full 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 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 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 anticipated results. Investor 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 Intchains' website at www.ir.intchains.com. It is my pleasure to introduce Interim CFO, Mr. Charles Yan, who will provide an overview of full year 2025 financial results, recent operational achievements and the company's long-term growth strategy before opening the floor for questions. Charles, please go ahead.

Thank you, Alice, and welcome, everyone. Intchains engaged in the design and development of altcoin mining machines, ETH accumulation and yield-generating strategy as well as the delivery of Web3 infrastructure services. Starting December 2025 following the completion of acquisition and the launch of our Goldshell 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 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 properly 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 series of mining products, including ALEO, Dogecoin and XTM miners. In Q1, we introduced our first ALEO mining series to the market in response to the rapid growth of the ALEO product 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 byte -- Goldshell 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 law supports -- moral support mining across 6 different cryptocurrencies using our proprietary algorithm cards. Throughout 2025, these products experienced rapid iterations with multiple additional product models released for ALEO and Dogecoin miners. Late in this year, we introduced XTM miners, another high-performing minor series, which accounted for a significant portion of our Q4 net revenues. Together, these product launch have reinforced our market competency, reflecting Intchains' capabilities to seizing early market share in the innovative altcoin projects with the top-tier next-generation mines. During the year, we also continued to explore ways to evaluate -- to elevate our ETH accumulation, holding and staking strategies. On the ETH accumulation side, we continued executing our disciplined and self-funded ETH 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 ETH pricing, driven by macroeconomic uncertainty, shifting liquidity conditions and evolving institutional participation in digital assets. ETH experienced a period of sharp upward momentum followed by notable corrections, creating a volatile but opportunity-rich environment. During a year full of volatility in ETH and 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 critical assets in our cryptocurrency 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 point for long-term accumulation. As a result, we are pleased to announce that by February 23, 2026, we hit another significant milestone of our ETH accumulation strategy with over 9,000 units of ETH and remain one of the top players of ETH' treasury holders. Moving into the staking aspect of ETH holdings. In 2025, we expanded our digital asset strategy by partnering with FalconX to support ETH's staking activities. Through FalconX institutional-grade platform, we are able to securely stake a portion of our ETH holding, generating yields while maintain operational flexibility and strong risk controls. Furthermore, in December 2025, we acquired a Proof-of-Stake platform and launched Goldshell Stake platform, which operates as we independent PoS service platform under the Goldshell brand. As part of Intchains' comprehensive Web3 infrastructure offering, we now provide poof-of-currency stake services for individual and institutional investors. Converting ETH, our launch, Manta and Conflux and expect to expand this line business to broader international markets, leveraging Goldshell's existing customer base and market presence. I will provide additional details on staking strategy for 2026 shortly. Turning to a summary of our full year 2025 financial performance as compared to full year 2024. FY 2025 revenue of RMB 220.9 million or USD 31.6 million decreased by 21.6% due to cyclical fluctuations in the market and softer demand for our products in this period, whereby our ALEO mining machine series contributed to increased revenues in the first 6 months in 2025, and overall demand for our products become softer during the second half. FY '25 cost of revenue was RMB 204.9 million or USD 29.3 million, an increase of 56.1% (sic) [ 57.1% ], impacted by impairment charges recorded against excess mining machine inventory for certain altcoin minings during the period. FY 2025 total operating expenses were RMB 120.6 million or USD 17.3 million, decreased by 18.7,%, primarily as a result of lower sales and R&D expenses and primarily due to the reduced expenses related to the preliminary and research costs conducted for new altcoin mining projects. As a result of lower revenues and gross margins, FY 2025 loss for operating was RMB 104.7 million or USD 15 million compared to the income from operations of RMB 2.9 million. FY 2025 interest income was RMB 11 million or USD 1.6 million, decreased from FY 2024 mainly due to cash used to acquire ETH-based cryptocurrency. For the full year period, we recorded a gain in fair value of cryptocurrency of RMB 4.8 million or USD 0.7 million, primarily a result of increased ETH holdings by 3,170 units since the beginning of the year, partially offset by an approximately decrease of 12.6% in ETH's price during the period. Net loss for FY 2025 was RMB 52 million or USD 7.4 million compared to a net income of RMB 51.5 million in FY 2024. We continue to maintain a strong balance sheet. As of December 31, 2025, our cash position, which consisted of cash and cash equivalents, deposits and government securities listed in long-term investments and short-term investments was USD 67.8 million. We had current assets of USD 83.2 million, total assets of USD 145.2 million and total liability of just $6.2 million. And I would now like to provide an update to sales of our altcoin mining machines in Mainland China before discussing our 2026 strategies and business focus. On February 6, notice on further preventing and handling risks related to virtual currency was issued, prohibiting the provision of service 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 ratification measures. I would like to note that although our primary sales markets have consist of overseas end users as well as domestic channel partners within China, the company's business model is designed to serve a global customer base and our channel partners purchase are primarily for export purpose. So as detailed in our earnings release, management does not expect a notice to have a material adverse impact on company's business, financial condition or results 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 Goldshell 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 sales that were launched in 2025, including ALEO, Dogecoin, XTM and...

Excuse me, ladies and gentlemen, please continue to stand by. Your conference will resume momentarily. Thank you. Excuse me, ladies and gentlemen, your conference will now resume. Charles, go ahead.

Sorry, everyone, let's continue for our earnings conference call. So 2026 is expected to be a year of margin improvement due to steps we took to implement cost management initiatives, including workforce reduction and organizational restructuring, aiming to enhance efficiency, optimize headcount and operate with leaner corporate level -- corporate model. We believe these initiatives will enable us to force resources on core R&D efforts to maintain a leading position in altcoin mining product industry, driving further margin expansion for FY 2026 and beyond. Prior to our altcoin hardware business, we are well equipped to enhance our ETH accumulation and restructure treasury holding strategy. In 2026, Intchains participates continuing a prudent approach in ETH purchasing by pursuing selective value-driven purchases when market conditions are favorable to gradually expand ETH's treasury holdings over time. As of December 31, 2025, the fair value of our cryptocurrency assets other than stablecoins such as USDC and USDT was RMB 187.6 million or USD 26.8 million, which includes approximately 8,826 ETH-based accrual currencies, valued at RMB 186.7 million. In 2026, Intchains continued to accumulate ETH. And as of February 23, 2026, total ETH held reached over 9,070 units. As part of our efforts to generate incremental returns from idle assets, we plan to continue our dual-platform staking approach using FalconX to stake ETH we have accumulated in our Goldshell stake platform to stake our third-party ETH. Staking on 2 platforms allows diversification, and we expect this practice of combination to maximize returns as we build our strategic ETH reserve and also from third-party staking. As an update, as of February 23, 2026, we have a total of 2,600 units of ETH or 28.7% of our total ETH treasury holding, currently staked with 1,000 units or 11% staked in -- on FalconX and 1,600 units or 18% staked in on our own Goldshell Stake platform. Additionally, Goldshell currently stake, 1,359 units of ETH currently owned by crypto investors. We remain optimistic about these initiatives, and we are implementing combining sale of new and existing altcoin mining machines and a solid ETH accumulation holding and staking strategy, along with cost-saving methods we are undertaking to drive solid top line results and improve operation margins in 2026. As a Web3 infrastructure provider, we have a market-leading altcoin hardware business and integrated hardware and software service portfolio, such as Goldshell Wallet and Goldshell Stake and a prudent long-term ETH strategy. With staking service serving as a second growth engine beyond our mining machine business, we have expanded into the blockchain infrastructure service sector. So we are looking to further generate synergies across our business lines, capture and act on additional opportunities as we emerge. With that, operator, please open it up for questions.

[Operator Instructions] Your first question comes from the line of Matthew Galinko with Maxim Group.

I think you've covered this in the prepared remarks, but just to clarify, do you expect to launch new mining products in the second half of '26 at this point?

Yes, we are targeting new altcoin mining machine in the second half, but it's also subject to market conditions and our R&D progress. Currently, we have multiple coins project is under R&D process.

Got it. And on the Goldshell Stake, I think you mentioned you have about 1,400 units of ETH staked by third-party investors. Did that come over with the acquisition? Or are those new users for the platform since you rebranded it?

I think it's both. Yes. The staked ETH is about -- we cannot -- after the acquisition, it have amount growth in the ETH units. So it's both and half are prior to the acquisition and another half post-acquisition. Thank you.

[Operator Instructions] And we have no further questions at this time. I would like to hand it back to Charles Yan for closing remarks.

Yes. Thanks again to all of you for joining us. We are always open to dialogue with investors. Please feel free to reach out to us or our Investor Relations firm, The Equity Group for any additional questions. We look forward to speaking with you all again on our next quarterly call. Thank you.

Thank you. And ladies and gentlemen, this now concludes today's conference call. Thank you all for joining. You may now disconnect.

Thank you for standing by. Welcome to the Intchains Group Limited Third Quarter 2025 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Alice Zhang with The Equity Group. You may begin.

Thank you, operator. Good evening to everyone. Welcome to Intchains Third Quarter 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 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, we 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 will discuss certain non-GAAP financial measures. Please also refer to the reconciliation of non-GAAP measures to the comparable GAAP measures in our earnings press release. The presentation and webcast replay of this conference call will be available on the Intchains website at www.ir.intchains.com. It is my pleasure to introduce Intchains' CFO, Mr. Charles Yan, who will provide an overview of third quarter and 9 months 2025 financial results, recent operational achievements and the company's long-term growth strategies before opening the floor for questions. Charles, please go ahead.

Thank you, Alice, and welcome, everyone. Intchains engages in design and development of altcoin mining machines, ETH accumulation and yield-generating strategies as well as Web3 application development. Among our 3 main business pillars, cryptocurrency mining machines are the primary revenue contributor, currently accounting for the entirety of our total net revenue. As we have previously discussed, our quarterly performance is heavily influenced by cyclical volatility, a common dynamic within our industry. And as expected, our Q3, our revenue was impacted by these factors. We had lower sales of mining machines as our flagship ALEO mining project which peaked in Q1 2025 has transitioned into a stable stage as market demand has gradually leveled out following the initial surge. Thus, revenue for Q3 2025 decreased to RMB 9.1 million, and we recorded a loss for operations for RMB 41.8 million due to softer demand for our products in the period. Our business operates in a dynamic market environment characterized by the natural volatility of the cryptocurrency and the mining machine industry. The fast-paced landscape presents both challenges and opportunities, and our strength lies in our ability to adapt swiftly, innovate continuously and capture emerging trends ahead of the competition. We differentiate ourselves by maintaining agility and technological leadership through careful market evaluation, committed R&D investment, rapid response to industry changes and the continuous introduction and upgrading of altcoin mining projects. We stay ahead of evolving trends. This allows us to deliver next-generation, high-performance mining machines that empower our community to participate early in the development and the mining of emerging altcoin ecosystem. Thus, similar to the performance trends of our peer group, our results are better measured on a year-to-date basis. We believe this provides a clearer reflection of Intchains' growth and overall business execution as crypto projects do not follow a fixed seasonal pattern and allows for meaningful quarter-over-quarter comparisons. That said, I would like to summarize our 9 months 2025 performance as compared to 9 months of 2024 by focusing on key metrics. Our 9 months 2025 revenues of RMB 184.7 million or $25.9 million decreased by 11% due to the cyclical fluctuations in the market and the softer demand for our products in this period. 9 months 2024 cost of revenue was RMB 108.2 million or $15.2 million and an increase of 42.9%, impacted by impairment charge recorded against excess mining machines inventory for certain altcoin mining machines during the period. 9 months 2025 total operating expenses were RMB 97.6 million or $13.7 million, increased by 6%, primarily as a result of higher G&A and sales expenses. 9 months 2025 loss from operations was RMB 21 million or $3 million compared to income from operations of RMB 39.8 million. Our 9-month 2025 interest income was RMB 8.6 million or $1.2 million, decreased from 9 months 2024, mainly due to the cash used to acquire ETH-based cryptocurrencies. For the 9-month period, we recorded a substantial gain in fair value of cryptocurrencies of about RMB 79.3 million or $11 million, primarily a result of increased ETH holding by 3,117 units since the beginning of the year and an approximate increase of 21.4% in ETH price during the period. As a result, our net income for 9 months 2025 was RMB 78.7 million or $11 million compared to RMB 38.7 million in 9 months 2024. Our balance sheet remains clean and strong. As of September 30, 2025, our cash position which consisted of cash and cash equivalents, deposits and government securities listed in long-term investment and short-term investments was $66.5 million. We had current assets of $93.2 million, total assets of $160.6 million and total liability of just $5.6 million. I would now like to discuss recent developments as part of our long-term growth strategies before opening the floor for the questions. For 2026 and beyond, we -- our growth is centered on the development and the sale of Goldshell mining machines and our ETH accumulation and staking activities. Our ability to identify and execution on new altcoin projects and to introduce new and competitive altcoin mining machines is built up on a continuous commitment to invest in R&D. Year-to-end, Intchains has invested approximately $9 million in R&D, underscoring our dedication to driving technological advancements and sustaining long-term growth. We view R&D not merely as cost, but as a core strategic pillar that enhances our competitiveness and responsiveness to evolving market dynamics. Through these efforts, we have successfully launched several key initiatives, which include the launch of new products and the implementation of continuous upgrades across our existing product line to enhance efficiency, performance and the user experience. Specifically, in February, we launched ALEO miner series service, which demonstrated our capability to deliver high-performance solutions tailored to emerging blockchain ecosystem. In March, we launched the Goldshell Byte, a dual mining machine that allows for the replacement of mining costs according to the market condition. In September 2025, we launched our first XTM mining service which compared -- which comprises of an XT BOX mining machines and XT CARD designed for our dual miner Goldshell Byte. The introduction of our new XTM miner series marks another milestone in our product road map, reinforcing our position in the forefront of the altcoin mining hardware industry and reflecting our ability to anticipate and meet the evolving needs of global miners. We expect the XTM miners to account for a meaningful revenue contribution in Q4 2025. In addition, we also added an AL CARD designed to mine altcoin into Goldshell -- to the Byte algorithm card portfolio, enabling Byte miner to seamlessly switch between mining of 6 cryptocurrency in total. In December 2025, we expect to receive our test chips of our new Dogecoin mining machine and are planning for the launch of this new mining machine in the first half of 2026. We are optimistic that upon commercial launch, this new product will become a top-tier Dogecoin mining machine, further growing the market share of our Goldshell brand and contributing to our top line growth for fiscal year 2026. Moving on to our ETH strategy. As of September 30, 2025, we had 9,919 ETH-based cryptocurrencies valued at approximately $37 million. While dollar cost averaging remains our long-term ETH acquisition strategy, we paused to purchase our ETH during Q3 due to a tactical funding allocation in response to the current market environment and currently do not plan to resume purchase activities in Q4. That said, we believe in the forward-looking asset appreciation potential of ETH and are actively exploring ways to enhance our ETH strategy to further unlock the value potential of our ETH position. In July, we announced a partnership with FalconX, aiming to enhance ETH acquisition efficiently and explore potential return enhancements through a structured ETH yield strategy. The cooperation focused on 2 key aspects: optimizing ETH acquisition utilizing FalconX customized derivative-based trading strategies; and pursue yield generation through a combination of lending and derivative-based strategy with annualized yield reaching as high as 10%. As part of this strategy, during Q3, we initiated a stake in a portion of our ETH strategy holding, about 1,000 units of ETH or approximately 11.3% of our total ETH holding within FalconX. With the goal of diversifying our ETH staking initiatives and in addition to our existing cooperation with FalconX to generate ETH return, we announced earlier today that the signing of definitive agreement to acquire a proof-of-stake technology platform, this transaction marks a significant step forward in expanding our blockchain infrastructure capability and strengthening our presence in the broader staking ecosystem. Through this acquisition, we are incorporating staking operations for 4 prominent blockchains, Ethereum, Avalanche, Manta and Conflux, which will further enhance our ability to provide a diversified, high-quality staking services and support the continued growth of our digital assets to operations. This acquisition positions us well to serve both individual and institutional crypto industries by creating ecosystem synergies through production-ready staking operations. By accelerating business expansion and leveraging established relationships with decentralized projects, we aim to explore new collaboration opportunities and further strengthen our position within the blockchain infrastructure ecosystem. We believe these business initiatives currently underway should drive tangible revenue growth and bottom line improvements in 2026. With the addition of the new staking operations, we have further broadened our -- broadening and strengthening our service and product portfolio, solidifying our presence in next-generation blockchain infrastructure. As our blockchain ecosystem continues to expand, we are confident that Intchains is well positioned to capture sustainable growth opportunities and enhance its role as a versatile player in this innovative and emerging sector. With that, operator, let's open it up for questions. Thank you.

[Operator Instructions] Our first question comes from Mark Palmer with the Benchmark Company.

Yes. With regard to the Dogecoin launch in 2026, which is a big part of the company's growth strategy for next year, how should we think about the timing of that launch and then the timing of the rollout throughout the year?

Yes. Thank you for the question, Mark. Yes, our 2026 growth will be driven by the new product launch, especially Dogecoin is a key factor of our -- key contribution of our 2026. Currently, our schedule is that we expect to receive the test chip within 2025. And with that, we will know the power efficiency of our Dogecoin mining machine. And then we will deeply assess and develop the new mining machine. Currently, our plan is that the mining machine will be launched in first half of 2026 and will contribute revenue in the second half of 2026. Thank you.

And one follow-up question. With the announcement of the acquisition of the staking platform from ECHOLINK, assuming that, that deal closes as expected, how are you thinking about the role that staking would play within your platform? And to what extent would this be a platform you'd be using for your own staking versus what you would be able to do with third-party customers?

Yes. Yes. Thank you for your question. Yes, regarding the proof-of-stake platform acquisition, the transaction has not yet been closed, and we are still in the process of completing the required closing procedures. But that said, we have already done the preliminary work, mainly around the security assessment and the infrastructure validation and the total integration plan to ensure that once the deal closes, we can move quickly and in a disciplined manner. After the transaction is formally completed, we will provide a more detailed update to investors, yes, including our operational road map and the collaboration with third parties and the strategic goals we aim to achieve within the platform. But currently, what is confirmed that our Ethereum, our near 9,000 Ethereum units, will be [ staked ] in this platform to generate ETH.

And the next question comes from the line of Matthew Galinko with the Maxim Group.

Maybe firstly, if you can answer this now and maybe you'll have to wait until after the deal closes. But do you have any expectations on how you'll market the staking platform to customers? And do you think that would be branded under Goldshell or under its existing brand?

Yes, we will the new platform under our own brand. Now currently, we have not decided we use Intchains or Goldshell or a totally new brand to run this operation. But we think we will choose a better way to run the business. As I just mentioned before, after the transaction is formally completed, we will provide a more detailed update to investors, including our road map. Yes.

Got it. And as a follow-up, can you provide any help for 4Q R&D? Do you expect to be investing in the December quarter? Or is the number you reported in the third quarter a relatively good one to use for fourth quarter? It should be more like second quarter. Some kind of outlook for how we should be thinking about R&D for the balance of the year.

Yes. In the Q3, we have a new product launch. Our XTM miner is launched in Q4 and the R&D expense mainly occurred in Q3. And in Q4, currently, we did not expect some a new chip to [ tape ] out in this quarter. So we think Q4, R&D expense will decrease. And yes. And in the next year, 2026, we have some way to decrease the total R&D expenses. So once we have some updates, we will update to you. Thank you.

[Operator Instructions] And I'm showing no further questions at this time. I would like to turn it back to Charles Yan for closing remarks.

Yes. Thank you, everyone, to joining us, and we are always open to a dialogue with investors. Please feel free to reach out to us or our Investor Relations firm, The Equity Group, for any additional questions. We look forward to speaking with you again on our next quarterly call. Thank you.

Thank you. And this concludes today's conference call. Thank you all for joining. You may now disconnect.

Hello, and welcome to the Intchains Group Limited Second Quarter 2025 Earnings Conference Call. [Operator Instructions] Now I will turn the call over to Alex Zhang of the Equity Group. Please go ahead, Alex.

Thank you, operator. Good evening to everyone. Welcome to Intchains Second Quarter 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 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 investors that actual results may differ materially from the anticipated results. Investors should review other factors that may affect its future results and the company's registration statements 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 will 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 Intchains website at www.ir.intchains.com. It is my pleasure to introduce Intchains CFO, Mr. Charles Yan, who will provide an overview of second quarter and first half 2025 financial results, recent operational achievements and then discuss the company's long-term growth strategies before opening the floor for questions. Charles, please go ahead.

Thank you, Alex, and welcome, everyone. For those new to Intchains and our story, I would like to provide an overview of our 3 main business lines: altcoin mining machines, ETH accumulation and Web3 application development. Our core business, altcoin mining machine under the Goldshell brand is our primary revenue contributor. We designed altcoin mining machines incorporating in- house developed asset chips, which are used to mine a number of popular alternative cryptocurrencies, including Litecoin, Dogecoin, Aleo and more. And since first quarter 2024, we have implemented a strategic self-funded dollar cost averaging ETH accumulation strategy, as part of our value creation strategy to generate return on our capital. We also have our Web3 application development business and have launched a one-stop blockchain payment solutions, Goldshell Pay and our crypto wallet product, Goldshell Wallet. Moving on to our financial results during the second quarter and first half 2025 period. Revenue for Q2 2025 were RMB 43.2 million or $6 million, impacted by lower sales from mining machines compared to Q2 2024. The decline in Aleo price during Q2, combined with newly imposed short-term tariffs and that delayed the export of our machines, negatively impacted mining machine sales and result in lower revenue. We would like to note that quarterly fluctuations in mining machine sales are a common industry-wide phenomenon and are often driven by a combination of external market conditions including volatility in cryptocurrency price, changes in mining difficulty, seasonal demand shifts and evolving regulatory environments. These factors can influence customers' purchasing behavior and investment cycles, especially in the altcoin segment. As such, short-term sales -- short-term sales variability in our business should be viewed within a broader context of long-term growth trends and product innovation. Cost of revenue was RMB 32.9 million or $4.6 million for Q2 2025, a decrease of 20% from Q2 2024, primarily due to lower revenues recorded during the period. We also recorded an impairment charge related to excess mining machines inventory during the period. Total operating expenses were RMB 26.4 million or $3.7 million for Q2 2025, 10.2% lower versus Q2 2024. As a result, we recorded a loss from operations of RMB 16.2 million or $2.3 million for Q2 2025, compared to the income from operations of $8 million for Q2 2024. Interest income decreased to RMB 3.1 million or $0.4 million for Q2 2025 from Q2 2024, mainly due to cash used in acquired ETH-based cryptocurrencies. For the second quarter, we recorded a gain in fair value of cryptocurrencies of RMB 42.8 million or $6 million, primarily a result of increased holding of ETH-based crytorocurrency units by 1,793 units since Q1 2025, while ETH price increased by around 34% during the period. As a result, net income from Q2 2025 was RMB 38.3 million or $5.3 million, which was affected by lower revenues and offset by gains on fair value of cryptocurrency as we increased ETH holding and saw a 34% increase in ETH price during the period. Moving on to first half 2025 metrics. Revenues were RMB 175.6 million or USD 24.5 million, primarily supported by sales of our Aleo series mining machines during the first half. Net income for first half 2025 was RMB 4.3 million or $0.6 million, primarily impacted by lower gross profit and the losses on fair value of cryptocurrency as ETH price dropped by about 28% during the 6-month period. Our balance sheet remains strong. As of June 30, 2025, our cash position, which consisted of cash and cash equivalents, deposits and government securities listed in long-term investment and short-term investments were $71.6 million. Also, as of June 30, 2025, we had current assets of $94.5 million, total assets of $148 million and total liability of just $4.6 million. I would like to provide some color on our current and long-term growth strategies before opening the floor for questions. We currently compete in the cryptocurrency segment through the development, launch and ongoing enhancements of our Goldshell mining machines. In line with this strategic focus, we have invested $5.8 million in R&D so far this year. At the beginning of this year, we have launched new products and several upgrades to our existing portfolio of mining machines which together represented the primary source of our total revenues. Key highlights include the release of 6 major Aleo mining series following the debut of the first AE Box in February. Our Goldshell Byte dual-mining machine launched in Q1 2025 gained strong traction among the miner customers. As previously mentioned, at the beginning of 2024, we adopted an ETH dollar-cost averaging accumulation strategy and start to build our strategic reserve. As of June 30, 2025, Intchains has total holding of ETH units of 8,816 units, representing a 25.5% increase from the end of first quarter. According to recent publicly available information, including a report published by standard chartered in July 2025, the company was identified as one of the top ETH treasury holders among public companies globally. Notably, the price of ETH has risen 34% since the end of first quarter 2025. Looking ahead, our growth strategy rests on the same 2 core pillars. First is the launch of our new products and the continuous upgrade efficiency of mining machines and exploration of innovative new projects. Second is optimizing our ETH accumulation and yield generation strategies. On one hand, we remain firmly committed to long-term R&D investments, making every effort to stay ahead in the dynamic cryptocurrency market, leveraging our experienced -- leverage our experienced R&D team and past investments -- we have been able to quickly identify, assess and act on opportunities in the development of altcoin mining machines, achieving 100% profitability across all such projects to date. As we continue to explore new altcoin projects, we are also planning new upgrades of mining efficiency for our existing mining products, such as the Dogecoin series to expand our market share. On the other hand, we have taken several steps to increase our strategic ETH reserve and expand our long-term digital asset positioning and yield-generation strategy. As part of these efforts, we recently announced the cooperation with FalconX, which focused on 2 key aspects. First, we are optimizing our ETH acquisitions through customized derivative-based trading strategy, such as funded put selling, which may enable Intchains to accumulate ETH at a favorable price while also potentially generate premium income. Second, we are enhancing ETH yield by combining lending activities with derivative-based yield generation -- yield strategy, aiming to deliver superior returns compared to traditional passive ETH accumulation and staking method. Our goal is to achieve an increased annualized yield on our ETH holdings, which could potentially be as high as 10%. 2025 has been a transitional year for us as we make strategic moves to ensure we are well positioned for long-term sustainable growth. While we expect revenue for the second half of the year to be impacted by softer sales driven by altcoin price volatility. We see the value of investing into the future and have accelerated R&D investments to strengthen our technology leadership in the altcoin mining machine market, allowing us to advance new altcoin projects under development towards commercialization. At the same time, the expansion of our ETH reserve and new ETH yield-generating initiatives paved the way for improved overall profitability. We expect these strategic moves to reinforce our business pillars and translate into tangible growth in 2026. We believe that the ability to pivot quickly and innovate across evolving crypto mining ecosystem is critical to long-term success, particularly in a market defined by rapid technological change and regulatory shifts. We remain focused on executing our long-term vision and delivering sustained value through the technology leadership and our strong commitment to innovation to unlock long-term value and reinforce our leadership in the evolving blockchain ecosystem. By aligning our development road map with the needs of both enterprise and crypto-native users, we aim to be driving force in shaping the future. With that, operator, let's open it up to -- open it up for questions.

[Operator Instructions] And our first question comes from the line of Matthew Galinko with Maxim Group.

I wanted to maybe focus on the ETH accumulation strategy. Do you have any, I guess, concrete objectives on how aggressively you intend to accumulate ETH? Is there any thought to becoming more like the traditional Bitcoin strategies where they issue and use financial instruments to acquire more? Or are you intending to continue to sort of do it organically from cash flows that you could generate off the core business?

Okay. Thank you for your question, Matt. And our -- currently, the company primarily use our own funds to conduct a dollar cost averaging strategy to do the ETH purchases. This approach is -- we think, is a risk controlled prudent and consistent with our long- term strategy. But in the future, we may consider a moderate financing for ETH accumulation depending on market conditions and opportunities. But overall strategy, [indiscernible] will remain unchanged. The dollar cost averaging approach to continue to be the core of our ETH treasury operation. And I think -- we think, on the one hand, our profits from our mining machine business can directly support the ETH strategy. And I think compared to short-term gains, our approach is more resilient across market cycles and avoid some forced ETH sales or ETH disposal triggered by short-term price drops. Thank you.

And if I could ask one follow-up question. I think you mentioned targeting up to a 10% yield on your Ethereum treasury. Can you talk about how much of your holdings, any if you would consider putting towards a staking or trading strategy? Is it half or more? Just how much do you intend to put towards yield activity?

Yes. We -- yes, let me think about this question, how to answer your question. And -- currently, we cooperate with FalconX. The key point of this cooperation is to lower purchase price cost through certain trading strategies and to optimize returns through the lending. So in the future, we will also explore partnership with some taxes decentralized exchange and to expand the other staking. Overall, we will make decisions based on the market condition and the yield efficiency. But we will not put all our ETH in one place. So -- but we will put all -- over 80% of our ETH to generate -- to generate income, but maybe not put in one place. Yes, this is our long-term strategy. Thank you.

[Operator Instructions] And our next question comes from the line of Mark Palmer with The Benchmark Company.

Yes. Just the company's prepared remarks made reference to a pipeline of multiple altcoin projects that are moving toward commercialization. We saw the rollout of the new mining machines recently as well as the Goldshell Byte initiative. What can you tell us about what that pipeline of altcoin projects looks like? And what your thinking is with regard to their potential contribution especially in 2026?

Yes. Thank you. The Aleo mining has achieved a strong revenue growth in the first half of this year. And in the second half, we will launch new altcoin mining products, while our new state-of-the-art Dogecoin miner is expected to complete testing in 2025 and enter mass production in first half of 2026. And we will continue to invest in R&D to maintain product competitiveness. So for the second half of 2025, first is our Aleo miners and second is our Dogecoin miners. And we also will have a new -- new coin miners will launch in 2025. In 2026, there's Dogecoin miners. Thank you.

[Operator Instructions] And our next question comes from the line of Kevin Dede with H.C. Wainwright.

I'm just curious strategically, how you're thinking about the artificial intelligence market given excellence in semiconductor design. I'm just wondering where that might fall in your strategic thinking.

Yes. Currently, we don't have any plan to expand business in that area. Yes. Thank you for your question. But we will internally discuss further.

And your next question comes from the line of again with Matthew Galinko with Maxim Group.

I'm curious about if you could give us some thoughts about how to model R&D spending through the rest of 2025. Should we see that pick up in the back half of the year as you try to bring new products to market? Or do you think first quarter was maybe the high point of the year? Just some thoughts around that.

Yes, I think our R&D expenses have -- firstly, our product will -- the second half -- in the second half, we will have new products, just like I mentioned. But the R&D expenses are mostly occurred in the first half. So we believe that the second quarter, the base -- the base figure of the second half were -- were not -- were not large than -- were not big than the first half. And it will have maybe one tape-out and the process node is not very high. So I think the total R&D expenses were not larger than first half.

There is no further question at this time. I will now hand it over to Charles Yan for closing remarks. Charles?

Yes. Thanks again for all of you for joining us. We are always open to dialogue with investors. Please feel free to reach out to us or to our Investor Relations firm, the Equity Group for any additional questions. We look forward to speaking with you again on our next quarterly call. Thank you.

That concludes today's conference call. You may now disconnect.

Good day, ladies and gentlemen. Thank you for standing by, and welcome to Intchains Group Limited First Quarter 2025 Earnings Conference Call. Today's call is being recorded. If you have any objections, you may disconnect at this time. Joining us today, Mr. Chaowei Yan, Chief Financial Officer of Intchains Group Limited, and Ms. Minty Wang, Director of Investor Relations. Mr. Yan will provide an overview of the company's performance and financial results. Following his remarks, we will open the floor for a question and answer session. I'll now turn the call over to Minty Wang, please. Go ahead.

Thank you, Operator. Good day, everyone. I'm Minty Wang. Welcome to Intchains Group Limited's first quarter 2025 earnings call. On today's call, Mr. Chaowei Yan, our CFO, will present a comprehensive overview of the company's performance and financial results for the quarter. Before we begin, please note that today's discussion will include forward-looking statements. These statements involve known and unknown risks and uncertainties and are based on the company's current expectations and projections regarding future events that could affect its financial condition, operating results, and strategic direction. The company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events and changes in expectations except as required by law. Although the company believes these expectations are reasonable, there's no guarantee they will prove to be accurate. Actual results may differ materially from those anticipated. Investors should refer to our registration statements and other filings with the SEC for additional factors that may affect future performance. We'll also discuss certain non-GAAP financial measures. Please refer to the reconciliation of these non-GAAP measures to the comparable GAAP figures in our earnings press release. The presentation and a replay of this call will be available on our website at ir.intchains.com. With that, I'll turn the call over to Mr. Chaowei Yan. Please go ahead.

Thank you, Minty, and thank you all for joining today's first quarter 2025 earnings conference call. Today, I will provide an overview of our operational and financial performance, followed by a Q&A session. We are pleased to report solid operational performance despite a challenging macroeconomic environment and significant volatility in the crypto market, particularly an 18% decline in the total market cap of cryptocurrency during the quarter. Our revenue reached $18.2 million, a 78.5% quarter-over-quarter increase. In our previous earnings call, we guided Q1 2025 revenue to be between $15 million to $16 million. Our results exceeded the upper end of that range. Gross margin grew by 286.9%, with gross margin improving to 56.9%, up from 26.2% last quarter. This reflects our continued focus on product optimization and operational efficiency. Our operating income turned positive at $5.1 million, a strong recovery from the loss in Q4 2024. While net income was impacted by a non-cash revaluation loss on its service, we remain committed to our Ether accumulation strategy, increasing our holding by over 23% to 7,023. This long-term approach remains central to our value creation strategy. For context, our business operates across three core segments. Firstly, we produce home miners for high-potential altcoins such as Aleo and Dogecoin under the Goldshell brand. Secondly, we reinvest the profit to accumulate Ether, optimizing our asset structure. Last but not least, we actively explore Web3 innovations to drive long-term growth. As a pioneer in home mining products and a long-term Ether holder, we occupy a unique position in the US capital market. Our differentiated strategy focused on blue ocean altcoin miners and mining sector enables us to maintain gross margins higher than the industry average for Bitcoin miners, regardless of market cycles. This strategic focus has allowed us to achieve a cumulative net profit from 2019 to 2024 that outperforms our peers, making us one of the few consistently profitable mining companies. In early 2025, we further solidified our leadership in altcoin mining machines. Since launching the Aleo series miners in February, we have released five iterations, strengthening our market position. According to a third-party miner evaluation website, our AE Max miner currently ranks sixth in daily profitability among all the mining machines, outperforming most Bitcoin miners. In March, we launched the Goldshell Byte, an innovative power mining machine that supports Aleo, Dogecoin, and Litecoin. With hot-swappable mining cards, users can switch between cryptocurrencies based on market conditions to maximize returns. This product showcases our technical strength in developing advanced altcoin mining machines. Looking ahead, we plan to continue refining our Goldshell miner through chip upgrades and enhanced product design, aiming to become a top-tier player in Goldshell mining equipment. Now let's review our financial results for the first quarter of 2025. During Q1, the price of Ether, Dogecoin, and Aleo fell by 46%, 49%, and 75%, respectively. However, prices have shown signs of recovery in Q2. Despite these headwinds, we delivered strong results. Revenue for Q1 was $18.2 million, exceeding the high end of our guidance and marking our highest quarterly revenue since 2023. This performance was largely driven by the successful launch of our Aleo mining miner series, which accounted for nearly 75% of our total revenue. The product's strong margin and timely launch helped us respond quickly to market demand. Revenue increased 78% quarter over quarter, significantly outperforming industry peers. Cost of revenue rose modestly from $7.5 million in Q4 to $7.9 million in Q1, growing at a much lower pace than revenue due to the high margins of Aleo miners. Operating income turned positive at $5.1 million, driven by top-line growth and reduced R&D expenses as several early-stage projects concluded. Among crypto mining companies, we are one of the few to report positive operating income in Q1 2025. Net income was negative $4.7 million compared to a profit in the previous quarter, primarily due to the $9.8 million non-cash loss from revaluation of our cryptocurrency holding, mainly due to the Ethereum price drop of 46%. Despite the downturn, we maintain a steady pace of Ethereum accumulation. As of March 31, 2025, we held approximately 7,023 units of Ether, up 23.2% quarter over quarter. Non-GAAP net income was negative $4.4 million, also declined from the previous quarter. As of March 31, 2025, our cash, cash equivalents, and short-term investments totaled $74.9 million, up from year-end 2024. Thanks to positive operating income, our USDC and cryptocurrency holdings other than Ether amounted to $16.1 million. Including Ether, our account amounted to $60.1 million. As of May 21, 2025, our total assets represented 147% of our market capitalization. Looking forward, several catalysts could drive long-term upside in 2025. First is anticipated interest rate cuts potentially improving liquidity conditions. Second is broader regulatory support for crypto-linked ETFs beyond Bitcoin. Third is new blockchain applications in payment and AI agents. Fourth is continued advancement in zero-knowledge proofs and the Ethereum protocol upgrade. And finally, the passage of new half-share Bitcoin reserve deals at the US state level may encourage similar moves elsewhere. Ethereum has also undergone significant updates, including the Petra upgrade completed in May, anticipated layer one scaling, and new leadership at the Ethereum Foundation. We remain confident in Ethereum's future and the broader blockchain ecosystem, and we will continue our long-term Ethereum accumulation strategy. Looking ahead, we are optimistic about sustaining momentum into Q2 and beyond. Market sentiment is improving, and our rapid product iteration, especially in the AE and 30 series, positions us well for future growth. However, taking into account tariffs and the crypto market volatility, we project the first half of 2025 revenue of approximately RMB 180 million to RMB 200 million. In conclusion, we remain focused on innovation, disciplined execution, and long-term value creation. As we navigate the evolving crypto and Web3 landscape, our strategy is anchored in technological leadership, operational excellence, and prudent capital management. Thank you for your attention. We look forward to keeping you updated on our progress as we continue to grow across different market cycles.

Thank you, Mr. Yan. We are now beginning the question and answer session. You are welcome to ask questions in either Chinese or English. For convenience, English translations will be provided by Minty Wang. In case of discrepancies, please refer to the original language used by the management. Operator, please begin the Q&A session. Thank you. Star one one again. A moment for this question. Mark Palmer from The Benchmark Company. Please go ahead, Mark.

Yes. Thank you for taking my question. And congratulations on the strong operating performance during what was a challenging quarter in the cryptocurrency industry. With regard to the mix of the company's revenue going forward, insofar as about 75% of revenue was derived from Aleo chips and miners during the first quarter, and at the same time, the company continues to develop new iterations of Doge miners, how should we think about the mix of the company's mining rigs in the second quarter and, you know, perhaps during the balance of the year?

Yeah. Thank you for your question, Mark. Yeah. The first thing, we are very optimistic about the Dogecoin future development, and we will upgrade our Dogecoin miners' progress continuously. So we aim to become the top-tier supplier of Goldshell mining miners in this industry. But we will also identify promising innovative projects in the future, not only as miners. So we also hope to lead the market launching of corresponding miners. This is similar to how we launched the Aleo Series miner in Q1, creating substantial returns for miners and contributing to the project ecosystem while earning our share of the reward. So in conclusion, our future revenue will come from Goldshell miners, Aleo miners, and new miners, maybe launched in the second or third quarter. Yeah. Thank you.

And thank you. And one other question. Just wanted to touch base on Goldshell Byte, you know, the new dual miner that you introduced in March. Could you talk a bit about the potential of that miner in terms of revenue generation and how we should think about the timing of that rollout?

Yeah. Yeah. The Goldshell Byte, at the end of March 2025, our company launched this product, which accounted for mining of cryptocurrencies such as Aleo and Dogecoin, but in the future, maybe with potential compatibility for more projects through the flexible mining card. So the primary motivation behind this product was addressing a common pain point for individual miners. Every time they switch projects, they typically need to purchase entirely new machines, which also take up significant space at home. So in response, we introduced the standardized miner with flexible mining cards, allowing the miner to easily switch cards based on market conditions. From a company perspective, this product helps us to standardize the hardware design while leveraging our technical expertise across multiple cryptocurrencies. For the crypto industry, we hope this project will lower the barrier to entry and encourage more people to participate in crypto mining, ultimately contributing to the decentralization of more blockchain projects.

And, Mark, in conclusion, for your first and these questions, we think that for the first half of this year, most of our revenues were generated from the Aleo series miners. Yeah. And for the second half of this year, we think some revenues may come from the Goldshell Byte products, but it's kind of hard to give you a specific guidance. But for the first half of this year, we think the Aleo series miners will still be very competitive in the market among all the PoW machines. And for the whole year, just as Chaowei stated, we may launch some new innovative miners in this quarter or maybe the next quarter. Yeah. So we think regarding the revenues of the whole year, our revenue will be comprised of the sales of the Aleo miners, innovative miners, and the Dogecoin miners. But the percentage of these miners will depend on the market price of these miners. So it's kind of hard for us to give you a precise percentage. Yeah. Thank you.

Thank you very much.

Thank you. We will now take our next question from the line of Matthew Galinko from Mac Group. Please ask your question, Matthew.

Hey. Thanks. Thanks for taking my questions. And congratulations on the strong quarter. I noticed that inventories remain pretty high, down a little bit from the fourth quarter. But I was curious if you could comment on what we could expect from the inventory through the balance of the year.

Yeah. In fact, most of our inventory is for Goldshell miners, and some of them are Aleo miners related chip inventory. So now we cannot predict strong performance during this quarter. But in the future, we will adjust our price depending on the market condition. So what we can predict is we will try our best to sell these inventories to the market instead of writing off the inventory. But it still depends on the market condition in the next quarters. Thank you.

Got it. Thank you. And I guess as a follow-up question also on Goldshell Byte, can you talk about where you're getting the feedback from the market that, you know, consumers want that kind of all-in-one style device for providing the ability to mine multiple currencies? Is it direct feedback you're getting from existing customers? Is it kind of broad industry expectations? Or, you know, talk a little bit about that feedback.

Okay. Yeah. Yeah. Goldshell Byte was very welcomed by many individual miners. We assessed and explored our customer base because we received a lot of feedback from new customers. And all these will be a good entry for these new customers. So our market strategy is that we use home miners to attract new customers and use professional miners to maintain them. Because from a profit perspective, maybe the small miner like Goldshell Byte will not have a big return, but it will be a good entry for some new customers. So this is our market strategy. So I think the Goldshell Byte individually may not have a big proportion of our total revenue stream, but eventually, the launch of this kind of product will further our customer base and will have a positive impact on our revenue. Thank you.

And still, the Goldshell Byte is kind of a profitable product for the individual miners because you can check the daily profit of our Goldshell Byte. If you use two Aleo mining cards, you may get about $0.50 to $1 daily profit per day, and you may get your cost back, I think, within three to four hundred days. Yeah. So for three to four hundred days, I think it's still more profitable than some Bitcoin or other cryptocurrencies mining machines.

Yeah. But for individual users, maybe they don't care about this hundred percent. It's an interesting product. Yeah. And if they want a higher return, they will purchase our box miners or other miners instead. Yeah. Yeah. It's just like the switch in the mining sector. Yeah. Yeah. Thank you. Thank you.

As a reminder, to ask a question, please press star one one on your telephone. We will now take our next question from the line of Theresa Lowe from Eastgate. Alright. Theresa has left the call. Once again, to ask a question, please press star one one on your telephone. We now have a follow-up question from the line of Matthew Galinko.

Thanks for taking my follow-up question. I just wanted to ask about R&D spending this year. I think, you know, Q1 was down from Q4. But just given your, you know, plans to launch additional new products and the success of the Aleo Miner, should we expect, you know, a return to higher R&D spending at some point this year, or, you know, can you sort of level set us?

Yeah. Maybe we cannot predict the date because last year and the first of this year, we launched three new projects rapidly. So this year, currently, we have some projects in progress. But now we cannot actually predict when to do the wafer tape-out at this time. Yeah.

Thank you. Thank you.

Thank you. Once again, to ask a question, please press star one one on your telephone. I'm not showing any further questions. And with that, we conclude our conference call for today. Thank you for participating. You may now disconnect your lines.