Tianci International Inc(CIIT) - 2025 Q2 - Quarterly Report

Revenue Performance - Revenues for the three months ended January 31, 2025, decreased by 28% to $2,079,203 from$2,894,128 for the same period in 2024[121] - For the six months ended January 31, 2025, revenues increased by 20% to $5,060,143 compared to$4,220,776 for the same period in 2024[122] - Global logistics service revenue represented 99% of total revenue for the three months ended January 31, 2025, indicating a strong focus on logistics[124] Cost and Profitability - Cost of revenues decreased by 22% for the three months ended January 31, 2025, but increased by 30% for the six months ended January 31, 2025[126] - Gross profit for the three months ended January 31, 2025, was $79,978, a decrease of 76$339,104 in the same period in 2024[121] - The overall gross profit margin for the three months ended January 31, 2025, was 3.9%, down from 11.7% in the same period in 2024[130] Strategic Initiatives - The company plans to adopt a customer-friendly pricing strategy to quickly build market share while diversifying service regions[130] - The acquisition of RQS United Group Limited was completed on March 3, 2023, enhancing the company's logistics capabilities[111] - The logistics business has seen significant growth since 2023, driven by the expertise of the CEO in shipping operation management[115] - The company has started providing shipping and freight forwarding services in 2023, indicating a potential for market expansion[136] Financial Position and Expenses - Operating expenses increased for the six months ended January 31, 2025, to $431,604 from$255,426 in the same period last year, primarily due to rising payroll expenses[131] - The company reported a net loss of $202,919 for the six months ended January 31, 2025, compared to a net loss of$94,602 for the same period in 2024[133] - As of January 31, 2025, the company had working capital of $585,435, with cash amounting to$180,554 and current liabilities of $189,669[134] - Net cash used in operating activities for the six months ended January 31, 2025, was$158,450, primarily due to a net loss of $202,919[139] - The company had no investing activities during the three and six months ended January 31, 2025 and 2024[141] - Net cash used in financing activities for the six months ended January 31, 2025, was$74,125, related to professional fees for a public offering[142] - The company anticipates that 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[135] Taxation - The company incurred an income tax expense of $6,891 for the six months ended January 31, 2025, compared to an income tax benefit of$(7,141) in the same period last year[132] Risk Factors - The company is exposed to risks from economic conditions in Hong Kong and the international trade environment, which could impact operations[118][119]