Wed, Mar 12, 8:30 PM (46 days ago)
Tianci International, Inc. (Ticker: Not provided) reported a net loss of $110,971 for Q2 2025, compared to a net income of $100,714 for the same period in 2024. Revenue decreased by 28% to $2,079,203, primarily due to a reduction in order size from a major Vietnamese customer. However, the company saw a 20% increase in revenue for the six months ended January 31, 2025, driven by growth in its logistics business. Gross profit margins decreased to 3.9% for Q2 2025 and 6.1% for the six months ended January 31, 2025, compared to 11.7% and 13.6% respectively in the prior year. Operating expenses increased by 25% to $171,211 for Q2 2025, primarily due to higher payroll expenses. The company's cash position decreased by $232,575 to $180,554 for the six months ended January 31, 2025, mainly due to a net loss and increased payments for taxes and prepaid expenses. Tianci International faces uncertainties including economic conditions in Hong Kong, international trade environment, and its ability to source cargo space efficiently. The company plans to diversify its service regions and improve profit margins. Management acknowledged material weaknesses in internal controls, including inadequate segregation of duties and lack of formal policies for reviewing significant accounting transactions.