Tianci International Reports Revenue Increase but Significant Losses for Three and Nine Months Ended April 30, 2025

Tianci International, Inc. reported its financial results for the three and nine months ended April 30, 2025, revealing a slight increase in total operating revenues but significant losses. For the three months, the company generated $1.95 million in revenue, a marginal increase of 0.4% from $1.94 million in the same period last year. However, the net loss attributable to Tianci surged to $948,000, compared to a loss of $50,000 in the prior year. For the nine-month period, revenues rose 14% to $7.01 million, up from $6.16 million, but the net loss deepened to $1.15 million from a profit of $15,000 in the previous year.

The company's cost of revenues increased significantly, with total costs rising by 11.5% to $1.89 million for the three months and by 24.3% to $6.64 million for the nine months. This increase in costs outpaced revenue growth, leading to a gross profit decline of 76% for the quarter and 55% for the nine-month period. The gross profit margin fell to 2.98% for the three months and 5.23% for the nine months, down from 12.61% and 13.27%, respectively, in the prior year. The company attributed these losses primarily to rising logistics costs while maintaining stable service prices.

Strategically, Tianci completed a public offering on April 11, 2025, raising $7 million, which has bolstered its cash position to approximately $3.63 million as of April 30, 2025. The company has also expanded its customer base, particularly among high-paying clients, which contributed to the revenue increase. However, operational expenses surged, particularly in general and administrative costs, which rose by 614% to $961,000 for the three months and by 257% to $1.39 million for the nine months, largely due to advisory service agreements and a one-time bonus related to the IPO.

Looking ahead, Tianci plans to continue focusing on its logistics services, which accounted for 98% of its revenue in the latest quarter. The company aims to diversify its service offerings and expand its geographic reach, particularly in long-distance shipping, which typically yields higher profit margins. Despite the current losses, management believes that the liquidity from the IPO will support its operations and growth initiatives over the next twelve months. However, they acknowledge the need for additional capital if business conditions change or if new investment opportunities arise.