There was apparently music and dialogues too (at least partially completed)

According to this article (http://teoremacinema.com/storia-del-cinema-danimazione-italiano-6-il-pinocchio-di-raul-verdini/) "Tra il 1935 e il 1936 comparvero su diversi giornali delle pagine pubblicitarie e vari articoli che, con molto entusiasmo, annunciavano il film, ma, dopo un anno, quando la prima parte era già stata montata a sincrono con musica e dialoghi e si stava lavorando al secondo tempo, la CAIR dovette cessare l’attività, avendo esaurito i finanziamenti." [Rough translation] "Between 1935 and 1936 ads started appearing on newspapers that announced the film but, after an year, when the first half was already synced with music and dialogue and they started working on the second half, CAIR had to stop production, beceause it didn't have any more money."