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Tianci International Inc(CIIT) - 2023 Q4 - Annual Report
CIITTianci International Inc(CIIT)2023-10-21 01:52

Financial Performance - Revenues for the year ended July 31, 2023, decreased by 300,430,orapproximately40300,430, or approximately 40%, to 452,409 from 752,839in2022[79].−GrosslossfortheyearendedJuly31,2023,was752,839 in 2022 [79]. - Gross loss for the year ended July 31, 2023, was 4,085 compared to a gross profit of 274,318in2022,indicatingasignificantdeclineinprofitability[85].−NetlossattributabletoTiancifortheyearendedJuly31,2023,was274,318 in 2022, indicating a significant decline in profitability [85]. - Net loss attributable to Tianci for the year ended July 31, 2023, was 341,210, a decrease of 485,359comparedtoanetincomeof485,359 compared to a net income of 144,149 in 2022 [79]. - Total cost of revenues decreased by 22,027,orapproximately522,027, or approximately 5%, to 456,494 for the year ended July 31, 2023, compared to 478,521in2022[83].−Thegrossprofitmarginforhardwareproductsdecreasedby9.9478,521 in 2022 [83]. - The gross profit margin for hardware products decreased by 9.9% to 22.8% for the year ended July 31, 2023, from 32.7% in 2022, due to rising raw material costs and market competition [86]. Operating Expenses - Operating expenses increased to 339,909 for the year ended July 31, 2023, from 82,502in2022,primarilyduetostockcompensationandprofessionalfeesrelatedtotheShareExchange[87].CashFlowandWorkingCapital−CashprovidedbyoperatingactivitiesfortheyearendedJuly31,2023,was82,502 in 2022, primarily due to stock compensation and professional fees related to the Share Exchange [87]. Cash Flow and Working Capital - Cash provided by operating activities for the year ended July 31, 2023, was 324,581, despite a net loss, due to a decrease in accounts receivable [93]. - As of July 31, 2023, the company's working capital deficit was (284,543),withcurrentliabilitiesamountingto(284,543), with current liabilities amounting to 596,768 [89]. - The company may seek additional cash resources in the future for investments, acquisitions, or capital expenditures if business conditions change [90]. Future Plans - The company plans to enter the shipping and freight forwarding services in 2023, which may require significant capital expenditure [91].