Tianci International Inc(CIIT) - 2025 Q4 - Annual Results

Fiscal Year 2025 Financial Results Overview Highlights of Fiscal Year 2025 Tianci International reported 8% logistics revenue growth but a $2.69 million net loss due to higher costs and Nasdaq listing expenses, prompting a strategic shift - Revenue from logistics operations increased by 8% in FY2025[3] - Cost of revenue increased by 17% from FY2024 to FY2025, leading to a decrease in gross profit margin from 12.24% to 4.85%[3] - Operating expenses increased from $886,876 in fiscal year 2024 to $3,158,038 in fiscal year 2025, primarily due to transactions related to the Company's listing on Nasdaq[7] - The Company incurred a net loss of $2,686,357 in fiscal 2025, after recording net income of $110,320 in fiscal 2024[7] - The Company intends to reorient its focus towards long-distance shipping lines, which generally produce higher profit margins, and is accumulating inventory for global commodity trade[4] - Completed a public offering of 1,750,000 common shares for net proceeds of $5,217,937, resulting in working capital of $2,906,601 at July 31, 2025[5][7] - The Company's common stock was listed for trading on the Nasdaq Capital Market[7] About Tianci International, Inc. Tianci International, through its subsidiary Roshing, provides global logistics services specializing in ocean freight forwarding, operating under an asset-light model across Asia-Pacific - Tianci International Inc., through its subsidiary Roshing, provides global logistics services specializing in ocean freight forwarding, including container and bulk goods shipping[6] - Operates under an asset-light model, with logistics solutions tailored for customers across the Asia-Pacific, including Japan, South Korea, and Vietnam[6] - Generates revenue from the sale of electronic parts and business consulting services in addition to logistics[6] - Company's mission is to provide customers with efficient, reliable, and safe shipping services that create value[6] Financial Statements Consolidated Balance Sheets As of July 31, 2025, total assets significantly increased to $3.15 million, driven by cash and lease assets, while stockholders' equity rose to $2.99 million from public offerings despite an accumulated deficit | Item | July 31, 2025 | July 31, 2024 | Change (YoY) | | :-------------------------------- | :-------------- | :-------------- | :------------- | | ASSETS | | | | | Total current assets | $3,003,252 | $910,305 | +230% | | Total non-current assets | $142,719 | $1,656 | +8511% | | TOTAL ASSETS | $3,145,971 | $911,961 | +245% | | LIABILITIES | | | | | Total current liabilities | $97,651 | $121,951 | -20% | | Total liabilities | $159,054 | $121,951 | +30% | | STOCKHOLDERS' EQUITY | | | | | Total stockholders' equity | $2,986,917 | $790,010 | +278% | - Cash increased significantly from $413,129 in 2024 to $2,405,352 in 2025[12] - Additional paid-in capital surged from $962,416 in 2024 to $5,845,505 in 2025, reflecting capital raised from public offerings[12] - Accumulated deficit increased from $(222,071) in 2024 to $(2,862,860) in 2025[12] Consolidated Statements of Operations For FY2025, Tianci International reported an 8% revenue increase to $9.28 million, but a 16.8% rise in cost of revenues and a 256% surge in operating expenses led to a $2.69 million net loss, reversing the prior year's net income | Item | 2025 | 2024 | Change (YoY) | | :------------------------------------- | :----------- | :----------- | :------------- | | Total Operating Revenues | $9,282,997 | $8,617,265 | +8% | | Total Cost of Revenues | $8,832,874 | $7,562,086 | +16.8% | | Gross profit | $450,123 | $1,055,179 | -57.4% | | Total operating expenses | $3,158,038 | $886,876 | +256% | | Income (loss) from operations | $(2,707,915) | $168,303 | N/A (loss from income) | | Net income (loss) | $(2,686,357) | $110,320 | N/A (loss from income) | | Net income (loss) attributable to TIANCI INTERNATIONAL, INC. | $(2,640,789) | $54,450 | N/A (loss from income) | | Basic and diluted Income (loss) per common share | $(0.17) | $0.01 | N/A (loss from income) | - Global logistics services revenue increased from $8,320,402 in 2024 to $9,006,407 in 2025[14] - General and administrative expenses significantly increased from $520,884 in 2024 to $2,927,260 in 2025, contributing to the net loss[14] Consolidated Statements of Cash Flows In fiscal year 2025, Tianci International experienced a significant net cash outflow of $(3.23) million from operating activities, offset by a substantial $5.22 million inflow from financing activities, primarily public offerings, resulting in a net cash increase of $1.99 million and an ending cash balance of $2.41 million | Item | 2025 | 2024 | Change (YoY) | | :------------------------------------- | :----------- | :----------- | :------------- | | Net cash (used in) provided by operating activities | $(3,225,714) | $112,740 | N/A (outflow from inflow) | | Net cash provided by financing activities | $5,217,937 | $44,047 | +11744% | | Net increase in cash | $1,992,223 | $156,787 | +1171% | | Cash, ending | $2,405,352 | $413,129 | +482% | - Net loss of $(2,686,357) was a primary factor for the negative operating cash flow[17] - Proceeds received from public or private offerings totaled $5,439,333 in 2025, significantly boosting financing cash flow[17] Additional Information Forward-Looking Statements This report contains forward-looking statements subject to known and unknown risks and uncertainties, where actual results may differ materially from expectations, and the Company disclaims any obligation to update them unless legally required - Forward-looking statements involve known and unknown risks and uncertainties, based on current expectations and projections[8] - Actual results may differ materially from anticipated results[8] - The Company undertakes no obligation to update or revise publicly any forward-looking statements, except as may be required by law[8] - Investors are encouraged to review other factors that may affect future results discussed in the Company's filings with the U.S. Securities and Exchange Commission[8] Investor and Media Inquiries For investor and media inquiries, contact Tianci International, Inc. Investor Relations via email, and refer to the audited financial statements filed with the SEC on Form 10-K for further details - For investor and media inquiries, contact Tianci International, Inc. Investor Relations via email: ir@rqscapital.com[9] - Financial information should be read in conjunction with audited financial statements and notes filed on Form 10-K for the period ended July 31, 2025, available on www.sec.gov and www.tianci-ciit.com[9](index=9&type=chunk)