Tianci International Inc(CIIT) - 2024 Q3 - Quarterly Report

Revenue Growth - Revenues increased significantly to $1,940,346 for the three months ended April 30, 2024, from$144,013 in the same period of 2023, representing a growth of 1,247%[117] - For the nine months ended April 30, 2024, revenues reached $6,161,122, up from$367,113 in 2023, marking a 1,578% increase[118] - The global logistics service contributed 99% of total revenue for the three months and 96% for the nine months ended April 30, 2024[119] Cost and Profitability - Cost of revenues rose to $1,695,639 for the three months ended April 30, 2024, compared to$260,700 in 2023, a 550% increase[121] - Gross profit for the three months ended April 30, 2024, was $244,707, a significant improvement from a gross loss of$116,687 in the same period of 2023[125] - The overall gross profit margin improved to 12.6% for the three months ended April 30, 2024, compared to a gross loss margin of 81% in 2023[125] Expenses - Selling and marketing expenses increased by 133% to $91,950 for the three months ended April 30, 2024, from$39,532 in 2023[117] - Total operating expenses increased to $226,423 and$717,683 for the three and nine months ended April 30, 2024, compared to $197,441 and$238,876 for the same periods in 2023, primarily due to higher commission expenses and professional fees[126] - Income tax expense rose to $10,051 and$22,023 for the three and nine months ended April 30, 2024, compared to $1,280 and$2,219 for the same periods in 2023, reflecting increased revenue[127] Net Loss and Income - Net loss attributable to Tianci decreased by 83% to $49,974 for the three months ended April 30, 2024, compared to a loss of$296,194 in 2023[117] - The company reported a net loss of $(38,797) for the three months ended April 30, 2024, but net income of$55,805 for the nine months, with attributable net income to shareholders of $(49,974) and$15,375 respectively, compared to net losses of $315,408 and$322,037 in 2023[128] Liquidity and Cash Flow - As of April 30, 2024, the company had working capital of $733,839, with cash amounting to$646,031 and current liabilities of $241,813[129] - Net cash provided by operating activities was$121,476 for the nine months ended April 30, 2024, primarily due to net income and an increase in accrued liabilities, offset by an increase in accounts receivable[134] - Net cash provided by financing activities was $268,213 for the nine months ended April 30, 2024, mainly from proceeds of$513,213 from a private offering of preferred stock[137] - The company believes its liquidity and working capital will be sufficient to sustain operations for the next twelve months, but may require additional cash resources for future investments or acquisitions[130] Strategic Developments - RQS United Group Limited was acquired on March 3, 2023, expanding the company's logistics capabilities[107] - The company started providing shipping and freight forwarding services in the quarter ended October 31, 2023, indicating potential for significant capital expenditure to develop market position[131] - The company incurred a net cash used in financing activities of $72,463 during the nine months ended April 30, 2023, primarily for repayment of a working capital loan[138]