Detailed narrative
H1 2026 Performance Overview
Intchains reported H1 2026 revenue of RMB 11.1 million and a net loss per share of RMB 1.22, reflecting continued cyclical softness in demand and impacts from PRC mining machine sales restrictions. Total operating expenses for the period were RMB 42 million. The company ended the period with RMB 461 million in cash and cash equivalents, deposits, and government securities, enabling internal funding of its next-generation chip program.
Next-Generation Mining ASIC Development
The company successfully completed the tape-out of its next-generation mining ASIC in July 2026, a critical technical milestone. This chip is designed to optimize performance, efficiency, and reliability for retail and professional miners, utilizing a mature process. Initial production ramp and system-level integration are planned ahead of a Q4 2026 commercial launch, with modest revenue expected in H2 2026 and a more meaningful impact in FY27.
Strategic Diversification into AI
Intchains is in the early stages of evaluating new growth opportunities in artificial intelligence, including potential acquisitions. The goal is to extend core competencies in custom ASIC design and hardware systems integration into AI-enabled computing applications, aiming to reduce reliance on cryptocurrency market cycles and position the company in higher-value computing markets. More details are expected to be shared as plans develop.
Cost Optimization and Capital Allocation
The company realized approximately RMB 23.1 million in annualized labor cost savings as of June 30, 2026, through organizational restructuring, divestiture of noncore businesses, and increased use of AI tools. Management expects to continue these cost discipline initiatives. Capital allocation prioritizes internal R&D for the next-gen ASIC and new AI initiatives, with a $15 million share repurchase program also approved by the Board of Directors over the next two years.
ETH Treasury Management
As of June 30, 2026, the fair value of cryptocurrency assets (excluding stablecoins) was RMB 98.9 million, including 9,176 ETH. As of August 20, 2026, the company held 4,556 ETH, with 3,556 ETH deposited for staking and 1,000 ETH staked on Falcon X. The strategy is to preserve existing holdings and generate staking yields, not accumulate more ETH, prioritizing AI investments.