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Tianci International Inc (CIIT0.00%). has submitted its 10-Q filing for the fiscal quarter ended January 31, 2025.
The filing includes financial statements for the quarter, showing a decrease in revenue to $2,079,203 from $2,894,128 in the same quarter the previous year. The decrease is attributed to a reduction in order size from a major Vietnamese customer.
Cost of revenues for the quarter was $1,999,225, representing 96% of revenues, compared to 88% in the same quarter of the previous year. This increase in cost ratio is due to higher logistics costs.
The company reported a gross profit of $79,978 for the quarter, compared to $339,104 in the previous year, with the decline attributed to increased costs.
Selling and marketing expenses decreased to $15,036 from $133,763, primarily due to reduced commission expenses.
General and administrative expenses increased to $171,211 from $136,721, primarily due to higher payroll expenses.
Net loss for the quarter was $110,971, compared to a net income of $100,714 in the previous year. After accounting for non-controlling interests, the net loss attributable to Tianci was $113,351, compared to a net income of $81,133 in the previous year.
Cash used in operating activities was $158,450, while cash used in financing activities was $74,125.
Tianci had a working capital of $585,435 as of January 31, 2025. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including a public offering agreement with Prime Number Capital LLC.
Tianci does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting due to inadequate segregation of duties and lack of formal review policies for significant transactions.
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 March 12, 2025. To report an error, please email earnings@qz.com.