Tianci International Reports 28% Revenue Growth to $3.82 Million Despite Increased Net Loss

Tianci International, Inc. reported a significant increase in its financial performance for the three months ended October 31, 2025, with total operating revenues reaching $3.82 million, up 28% from $2.98 million in the same period last year. This growth was primarily driven by the launch of the company's new global mineral trading business, which contributed $505,465 to total revenues. Revenue from global logistics services also saw a 16% increase, amounting to $3.22 million, while other service revenues decreased to $96,881 from $221,247.

Despite the revenue growth, Tianci International experienced a net loss of $268,874 for the quarter, compared to a loss of $91,948 in the prior year. The increase in losses was attributed to a substantial rise in operating expenses, which surged to $653,058 from $345,581, largely due to higher general and administrative costs associated with being a public company. The gross profit for the quarter improved to $384,251, reflecting a gross profit margin of 10.06%, up from 7.66% in the previous year, indicating enhanced profitability from the new mineral trading operations.

Operationally, the company has expanded its service offerings and geographic reach. The logistics services are primarily conducted in Hong Kong, with additional operations in Japan, South Korea, and Vietnam. The company has also increased its employee headcount to support its growing business, although specific figures were not disclosed. The launch of the mineral trading business is expected to create synergies with existing logistics services, enhancing overall operational efficiency.

In terms of financial health, Tianci International reported total current assets of $3.03 million as of October 31, 2025, slightly up from $3.00 million at the end of July 2025. However, total liabilities increased significantly to $437,326 from $159,054, primarily due to a rise in accounts payable and advances from customers. The company's stockholders' equity decreased to $2.72 million from $2.99 million, reflecting the net loss incurred during the quarter.

Looking ahead, Tianci International aims to leverage its new mineral trading business to further enhance revenue streams and operational synergies. The company believes that its liquidity, bolstered by the recent public offering that raised $7 million, will be sufficient to support its operations over the next twelve months. However, management acknowledges the potential need for additional capital to pursue growth opportunities and manage operational costs effectively.