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…

[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.