In This Story
Tianci International Inc (CIIT) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenues to $2,980,940 from $1,326,648 in the same quarter of the previous year. This growth is attributed to the expansion of the global logistics service and an increase in the client base.
Cost of revenues for the quarter was $2,752,509, up from $1,092,871 in the same quarter of the previous year. The increase aligns with the growth in global logistics services.
The company reported a gross profit of $228,431 for the quarter, compared to $233,777 in the previous year. The gross profit margin decreased to 7.66% from 17.62% due to a competitive pricing strategy.
Selling and marketing expenses decreased to $85,188 from $102,071, while general and administrative expenses increased to $260,393 from $118,705. The increase in administrative expenses is attributed to payroll expansion and costs related to a planned securities offering.
Net loss for the quarter was $91,948, compared to a net loss of $6,112 in the previous year. After accounting for non-controlling interests, the net loss attributable to Tianci was $93,056, compared to $15,784 in the previous year.
Cash used in operating activities was $15,211, while cash used in financing activities was $74,125, primarily due to deferred offering costs.
Tianci had a working capital of $696,406 as of October 31, 2024. The company anticipates that its liquidity and working capital will be sufficient to sustain operations for the next twelve months.
The filing also discusses the company's strategic focus on expanding its global logistics services and the impact of economic conditions in Hong Kong and the international trade environment on its operations.
Tianci identified material weaknesses in its internal controls over financial reporting, including inadequate segregation of duties and lack of formal policies for reviewing significant accounting transactions.
The company continues to monitor and evaluate its internal controls and is committed to implementing necessary improvements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Tianci International Inc quarterly 10-Q report dated December 6, 2024. To report an error, please email earnings@qz.com.