Tianci International Inc(CIIT) - 2025 Q3 - Quarterly Report

Revenue Performance - Total revenue for the three months ended April 30, 2025, was $1,948,215, a slight increase of 0.4$1,940,346 for the same period in 2024[126] - For the nine months ended April 30, 2025, total revenue increased by 13.8% to $7,008,358 from$6,161,122 in 2024, driven by an expanding customer base[127] - Logistics service revenue accounted for 98% of total revenue for the three months ended April 30, 2025, and 96% for the nine months ended April 30, 2025, indicating a continued focus on logistics[128] Cost and Profitability - Cost of revenues for the three months ended April 30, 2025, increased by 11.5% to $1,890,232 from$1,695,639 in 2024[131] - For the nine months ended April 30, 2025, total cost of revenues rose by 24.3% to $6,641,966 from$5,343,534 in 2024, reflecting rising costs from logistics vendors[131] - The gross profit for the three months ended April 30, 2025, was $57,983, a decrease of 76$244,707 in 2024[124] - Gross profit decreased from $244,707 to$57,983 for the three months ended April 30, 2025, and from $817,588 to$366,392 for the nine months ended April 30, 2025[132] - Overall gross profit margin was 2.98% and 5.23% for the three and nine months ended April 30, 2025, down from 12.61% and 13.27% during the same periods in 2024[132] Losses and Expenses - Net loss attributable to the company for the three months ended April 30, 2025, was $947,987, a significant increase from a loss of$49,974 in 2024, representing a 1,797% change[124] - General and administrative expenses surged by 614% to $960,583 for the three months ended April 30, 2025, compared to$134,473 in 2024[124] - Operating expenses increased by $826,110 for the three months and$1,002,288 for the nine months ended April 30, 2025, compared to the same periods in the previous year[133] - Net losses amounted to $959,409 and$1,162,328 for the three and nine months ended April 30, 2025, compared to a net loss of $38,797 and a net income of$55,805 for the same periods in 2024[135] Cash Flow and Capital - As of April 30, 2025, the company had working capital of $4,509,290, primarily consisting of cash of$3,630,884 from the initial public offering[136] - Net cash used in operating activities was $2,000,182 for the nine months ended April 30, 2025, primarily due to the net loss and increases in accounts receivable and prepaid expenses[141] - Net cash provided by financing activities was$5,217,937 for the nine months ended April 30, 2025, mainly from the initial public offering[143] Strategic Initiatives - The company completed a $7 million initial public offering on April 11, 2025, and became listed on Nasdaq[119] - The acquisition of RQS United Group Limited on March 3, 2023, is expected to enhance the company's logistics capabilities and market presence[113] - The company plans to diversify its service region to include long-distance shipping lines, which typically yield higher profit margins[132] - The company may seek additional cash resources in the future for investments, acquisitions, or capital expenditures[137] - The company had no investing activities during the three and nine month periods ended April 30, 2025 and 2024[142]