Fri, Dec 6, 9:16 PM (37 days ago)
For the quarter ended October 31, 2024, Tianci International, Inc. (Ticker: TCI) reported a significant increase in revenue, reaching $2,980,940, up 125% from $1,326,648 in the same period last year. This growth was primarily driven by the global logistics segment, which accounted for 93% of total revenue. However, the company's gross profit decreased slightly to $228,431, resulting in a gross margin drop to 7.66% from 17.62% year-over-year, largely due to competitive pricing strategies. Operating expenses rose sharply to $345,581, up 56% from $220,776, mainly due to increased general and administrative costs linked to operational expansion. Consequently, the company incurred a net loss of $91,948, compared to a loss of $6,112 in the prior year. Cash flow from operations was negative at $(15,211), and cash at the end of the quarter stood at $323,793. Tianci faces uncertainties related to economic conditions in Hong Kong and international trade dynamics, which could impact future performance. The company is preparing for a public offering, incurring $74,125 in deferred offering costs. Overall, while revenue growth is promising, the rising costs and losses pose significant challenges for Tianci's financial health moving forward.