Tianci International Inc(CIIT) - 2025 Q1 - Quarterly Report

Acquisition - The company acquired RQS United Group Limited on March 3, 2023, which holds 90% of its subsidiary, Roshing International Co., Limited, primarily engaged in logistics solutions [117][118]. Revenue and Profitability - For the three months ended October 31, 2024, total revenues increased to $2,980,940, a 125$1,326,648 in the same period of 2023, with global logistics services contributing 93% of total revenue [127][128]. - Gross profit decreased by $5,346 to$228,431 for the three months ended October 31, 2024, with a gross profit margin of 7.66%, down from 17.62% in 2023 [133]. Costs and Expenses - The cost of revenues rose to $2,752,509 for the three months ended October 31, 2024, up from$1,092,871 in 2023, reflecting the growth in global logistics services [131]. - Operating expenses increased significantly to $345,581 for the three months ended October 31, 2024, compared to$220,776 in 2023, primarily due to higher general and administrative expenses [134]. Net Loss - The company reported a net loss of $91,948 for the three months ended October 31, 2024, compared to a net loss of$6,112 in the same period of 2023 [136]. Cash Flow and Working Capital - As of October 31, 2024, the company had working capital of $696,406, with cash amounting to$323,793 and current liabilities of $197,908 [137]. - The company experienced a net cash outflow of$15,211 from operating activities for the three months ended October 31, 2024, primarily due to the net loss incurred [142]. - The company had no investing activities during the three months ended October 31, 2024 and 2023 [144]. - Net cash used in financing activities for the three months ended October 31, 2024 was $74,125, attributed to fees for a public offering of the Company's securities [145]. Future Financial Needs - The company anticipates needing additional cash resources in the future for potential investments, acquisitions, or capital expenditures [138]. Accounting Estimates and Standards - The Company made a critical accounting estimate regarding "deferred offering costs" related to a public offering, which may impact financial results if the offering does not close successfully [147]. - Management does not anticipate that any recently issued but not yet effective accounting standards will have a material effect on the Company's consolidated balance sheets [148].