Tianci International Inc(CIIT) - 2024 Q2 - Quarterly Report

Revenue Growth - Revenues increased significantly to $2,894,128 for the three months ended January 31, 2024, from$98,730 in the same period of 2023, representing a growth of 2,831%[124] - For the six months ended January 31, 2024, revenues reached $4,220,776, up from$223,100 in the prior year, marking a 1,792% increase[125] - The global logistics service contributed 97% of revenue in Q1 2024 and 95% in the first half of 2024, highlighting its importance to overall performance[126] Profit and Expenses - Gross profit for the three months ended January 31, 2024, was $339,104, a substantial increase of$319,174 compared to the same period in 2023[132] - Operating expenses surged to $270,484 for the three months ended January 31, 2024, compared to$25,203 in the same period of 2023, primarily due to increased commissions and professional fees[133] - Net income attributable to Tianci International was $81,133 for the three months ended January 31, 2024, compared to a net loss of$4,947 in the same period of 2023[135] Cash Flow and Working Capital - As of January 31, 2024, the company had working capital of $692,636, with cash amounting to$799,377 and current liabilities of $193,504[136] - The company reported net cash provided by operating activities of$109,822 for the six months ended January 31, 2024, primarily driven by net income[141] - Net cash provided by operating activities for the six months ended January 31, 2023 was $217,000, primarily due to a decrease in accounts receivable of$540,914, partially offset by a decrease in accounts payable of $325,062[142] - Net cash provided by financing activities for the six months ended January 31, 2024 was$433,213, attributed to proceeds from a private offering of common stock[144] - Net cash used in financing activities during the six months ended January 31, 2023 was $63,305, primarily due to repayment of a working capital loan of$296,884[145] Cost of Revenues - The total cost of revenues increased to $2,555,024 for the three months ended January 31, 2024, from$78,800 in the same period of 2023, reflecting the growth of global logistics services[128] Future Outlook - The company anticipates that gross margins from logistics services will improve as demand increases post-pandemic, with current margins at 11.1% for Q1 2024[132] Accounting Estimates - There were no accounting estimates made that were subject to a high degree of uncertainty and critical to the results for the three and six months ended January 31, 2024[147] - The company does not believe that any recently issued but not yet effective accounting standards would have a material effect on its consolidated financial statements[148]