Acquisition - The company acquired RQS United Group Limited on March 3, 2023, enhancing its logistics capabilities[100] Revenue Growth - For the three months ended October 31, 2023, revenues increased by 1,326,648 compared to 1,181,720 to revenue, representing approximately 89% of total revenue for the quarter[105][106] Cost and Profit - Total cost of revenues rose by 1,092,871 for the three months ended October 31, 2023[104][107] - Gross profit increased by 233,777, with a gross profit margin of 17.6% for the three months ended October 31, 2023, compared to 12.7% in 2022[111] Net Loss - The company reported a net loss of 15,784[114] Working Capital and Cash Position - As of October 31, 2023, the company had a working capital deficit of 380,833[115] Industry Outlook - The company anticipates continued growth in the logistics service industry, driven by increasing global demand for coal, grains, electric vehicles, and green energy equipment[103] Operating Expenses - Operating expenses increased significantly to $220,776 for the three months ended October 31, 2023, primarily due to increased commissions and compliance service fees[112] Investing Activities - The company has no investing activities for the three months ended October 31, 2023 and 2022[122] Accounting Standards - The financial statements were prepared in accordance with U.S. GAAP, requiring estimates and judgments affecting reported amounts of assets, liabilities, revenues, and expenses[130] - For the three months ended October 31, 2023, there were no accounting estimates made that were subject to a high degree of uncertainty and critical to the results[131] - The Company does not anticipate that any recently issued but not yet effective accounting standards will have a material effect on its consolidated financial statements[132] Market Risk - There are no applicable quantitative and qualitative disclosures about market risk[133]
Tianci International Inc(CIIT) - 2024 Q1 - Quarterly Report