Tianci International Inc(CIIT) - 2026 Q2 - Quarterly Report

Revenue Growth - Total revenue for the three months ended January 31, 2026, increased by 87% to $3,884,684 from $2,079,203 for the same period in 2025 [129]. - For the six months ended January 31, 2026, total revenue increased by 52% to $7,702,911 from $5,060,143 for the same period in 2025 [132]. - Revenue from the global mineral trading business contributed $1,315,855, representing approximately 34% of total revenue for the three months ended January 31, 2026 [131]. - Revenue from core global logistics services increased by 19% to $5,747,241 for the six months ended January 31, 2026, compared to $4,829,776 for the same period in 2025 [132]. Cost and Profit Analysis - Cost of revenues for the three months ended January 31, 2026, was $3,794,374, a 90% increase from $1,999,225 in the same period in 2025 [129]. - Total cost of revenue increased by 90% from $1,995,569 to $2,522,643 for the three months ended January 31, 2026 [135]. - Gross profit for the three months ended January 31, 2026, was $90,310, reflecting a 13% increase from $79,978 in the same period in 2025 [129]. - Gross profit increased by $10,332 to $90,310 for the three months ended January 31, 2026, with a gross profit margin of 2.32% [136]. - The gross profit margin from the newly launched mineral trading business partially offset the decline in logistics services gross profit margin [136]. Net Loss and Expenses - The company reported a net loss attributable to Tianci of $399,898 for the three months ended January 31, 2026, compared to a net loss of $113,351 for the same period in 2025, representing a 253% increase in losses [129]. - Net loss amounted to $417,124 for the three months ended January 31, 2026, compared to a net loss of $110,971 for the same period in 2025 [140]. - Operating expenses increased significantly, with general and administrative expenses rising by $291,053 to $462,264 for the three months ended January 31, 2026 [137]. - General and administrative expenses are expected to remain elevated as the company scales up operations as a public company [137]. Liquidity and Cash Flow - Working capital as of January 31, 2026, was $2,506,100, indicating sufficient liquidity for the next twelve months [141]. - Net cash used in operating activities was $1,682,251 for the six months ended January 31, 2026, primarily due to a net loss of $685,998 [146]. - The company had no investing activities during the six months ended January 31, 2026 [148]. - Net cash used in financing activities was nil for the three months ended January 31, 2026, compared to $74,125 in the same period of 2025 [149]. Strategic Initiatives - The company completed a $7 million public offering and became a listed company on Nasdaq on April 11, 2025 [123]. - The introduction of the mineral trading business is expected to generate operational and strategic synergies with existing logistics services, enhancing overall efficiency [124]. - The cost of global logistics services represented 66.5% of total cost of revenues during the three months ended January 31, 2026 [134].