Tianci International Inc(US:CIIT)2025-12-12 01:52Revenue Growth - Total revenue for the three months ended October 31, 2025, increased by 28% to $3,818,227 from $2,980,940 in the same period of 2024, driven by the launch of the global mineral trading business [131]. - Revenue from the global logistics services rose by 16% to $3,215,881, representing 84% of total revenue, while mineral trading contributed $505,465, accounting for approximately 13% of total revenue [132]. Cost and Expenses - Cost of revenues increased by 25% to $3,433,976, primarily due to the new mineral trading business, with logistics service costs rising by 19% to $3,081,657 [136]. - General and administrative expenses surged by 134% to $608,648, attributed to increased audit, accounting, and Nasdaq listing expenses [139]. - Selling and marketing expenses decreased by 48% to $44,410, reflecting efforts to reduce reliance on brokers for business development [140]. Profitability and Loss - Gross profit for the three months ended October 31, 2025, increased by 68% to $384,251, with an overall gross profit margin of 10.06%, up from 7.66% in the prior year [131][138]. - The net loss attributable to the company for the three months ended October 31, 2025, was $268,098, a 188% increase compared to a net loss of $93,056 in the same period of 2024 [131]. - The company incurred a net loss of $268,874 for the three months ended October 31, 2025, compared to a net loss of $91,948 for the same period in 2024 [142]. Business Operations - The company has expanded into the global trade of bulk chrome and manganese ore, aiming to create synergies with its logistics business [126]. - The logistics business is primarily conducted in Hong Kong and the Asia-Pacific region, with plans to enhance service offerings to African countries [124]. - The company does not own transportation assets, adopting an asset-light strategy to drive growth in logistics revenue since 2023 [124]. - The company started providing shipping and freight forwarding services in 2023 and entered the global mineral trading business during the recent quarter [145]. Cash Flow and Working Capital - Working capital as of October 31, 2025, was $2,636,809, primarily consisting of cash amounting to $1,677,949 from a public offering [143]. - The company used $727,403 in operating activities for the three months ended October 31, 2025, primarily due to a net loss and increases in inventory and accounts receivable [148]. - There were no investing activities reported for the three months ended October 31, 2025 or 2024 [150]. - Net cash used in financing activities was nil for the three months ended October 31, 2025, compared to $74,125 in 2024, related to public offering fees [151]. - A net cash change of $(727,403) was reported for the three months ended October 31, 2025, compared to $(89,336) in 2024 [147]. Future Outlook - The company may require significant capital expenditure for market share development in its new business ventures [145]. - The company believes its liquidity and working capital will be sufficient for the next twelve months, but may need additional cash resources for future investments or acquisitions [144]. - The company had no accounting estimates subject to a high degree of uncertainty that were critical to its results for the three months ended October 31, 2025 [153].