Tianci International Inc(US:CIIT)2023-10-21 01:52Financial Performance - Revenues for the year ended July 31, 2023, decreased by $300,430, or approximately 40%, to $452,409 from $752,839 in 2022 [79]. - Gross loss for the year ended July 31, 2023, was $4,085 compared to a gross profit of $274,318 in 2022, indicating a significant decline in profitability [85]. - Net loss attributable to Tianci for the year ended July 31, 2023, was $341,210, a decrease of $485,359 compared to a net income of $144,149 in 2022 [79]. - Total cost of revenues decreased by $22,027, or approximately 5%, to $456,494 for the year ended July 31, 2023, compared to $478,521 in 2022 [83]. - The gross profit margin for hardware products decreased by 9.9% to 22.8% for the year ended July 31, 2023, from 32.7% in 2022, due to rising raw material costs and market competition [86]. Operating Expenses - Operating expenses increased to $339,909 for the year ended July 31, 2023, from $82,502 in 2022, primarily due to stock compensation and professional fees related to the Share Exchange [87]. Cash Flow and Working Capital - Cash provided by operating activities for the year ended July 31, 2023, was $324,581, despite a net loss, due to a decrease in accounts receivable [93]. - As of July 31, 2023, the company's working capital deficit was $(284,543), with current liabilities amounting to $596,768 [89]. - The company may seek additional cash resources in the future for investments, acquisitions, or capital expenditures if business conditions change [90]. Future Plans - The company plans to enter the shipping and freight forwarding services in 2023, which may require significant capital expenditure [91].