Tianci International, Inc. — Fiscal Year Ended July 31, 2026 Earnings Summary

Financial Performance

• Total revenue increased to $14,242,611 for the year ended July 31, 2026, from $9,282,997 in the prior year, representing a 53.4% increase.
• Revenue from global logistics services was $8,939,720, a 0.7% decrease from the prior year, accounting for 63% of total revenue.
• New global mineral trading business generated $4,409,563 in revenue, representing approximately 31% of total revenue.
• Other revenue (sale of electronic parts and business consulting) was $893,328, up from $276,590 in the prior year.
• Gross profit percentage for the fiscal year was 7.43%, compared to 4.85% in the prior year.
• Gross profit margins by segment: Global logistics services (2.29%, down from 3.93%), mineral sales (7.43%), and other services (58.8%).
• Net loss was $2,454,798, an improvement from the net loss of $2,686,357 in fiscal 2025.
• Net loss per common share was $5.63, compared to $8.86 in the prior year.
• Operating expenses increased to $3,512,521 from $3,158,038, driven by a rise in general and administrative expenses to $3,230,154 from $2,927,260.
• Net cash used in operating activities was $2,199,382, compared to $3,225,714 in the prior year.
• Cash balance increased to $4,442,982 as of July 31, 2026, from $2,405,352 in the prior year.
• Total assets grew to $5,692,715 from $3,145,971, while total liabilities decreased to $130,083 from $159,054.
• Stockholders' equity increased to $5,562,632 from $2,986,917.

Guidance and Future Outlook

• The Company intends to reorient its logistics focus toward long-distance shipping lines to achieve higher profit margins.
• Roshing plans to utilize optimized bulk vessel and container shipping to provide end-to-end supply chain solutions for metallurgical and steelmaking customers.
• The Company aims to reduce dependence on local demand for shipping services by leveraging core resource control capabilities and supply chain integration.

Business Segments and Product Lines

• Global Logistics Services: Specializes in ocean freight forwarding (container and bulk goods) across the Asia-Pacific region (Hong Kong, Japan, South Korea, Vietnam) under an asset-light model.
• Mineral Trading: Expanded into global trade of bulk chrome and manganese ore, sourcing high-grade minerals directly from resource-rich regions for resale.
• Other Services: Includes the sale of electronic parts and business consulting.
• Completed initial mineral sales during the fiscal year, yielding $4,409,563 in revenue.

Market and Competitive Landscape

• Demand for logistics services was reduced due to concerns regarding tariff implementation and overall pricing pressures.
• The Southeast Asia market experienced declining demand, prompting the strategic shift to long-distance shipping lines.
• The Company is entering the global commodity trade arena to diversify revenue streams beyond local shipping demand.

Risks and Challenges

• Implementation of tariffs and pricing pressures continue to impact demand for logistics services.
• The Company reported a net loss for the fiscal year, though the loss narrowed year-over-year.
• Forward-looking statements involve known and unknown risks and uncertainties regarding future events, financial condition, and business strategy.

Management Commentary and Tone

• Management highlighted the strategic pivot to mineral trading as a key driver for revenue growth and margin improvement.
• The Company expressed confidence in utilizing its supply chain strengths to release itself from dependence on local shipping demand.
• The tone indicates a strategic transition from a pure logistics provider to a diversified logistics and commodity trading entity.

Other Key Points

• Completed a public offering in June 2026 with net proceeds of $4,390,512, which offset the reduction in cash balance from operations.
• Issued 1,080,299 common shares as of July 31, 2026, up from 236,247 in the prior year.
• Converted all 80,000 outstanding Series B Preferred shares to common stock during the fiscal year.
• Recorded stock-based compensation of $352,000 for the year.
• Acquired property and equipment valued at $153,500.
• Issued common stock for inventory purchases totaling $288,000.
• Accounts receivable increased to $452,800 from zero in the prior year.
• Inventory increased to $231,790 from $215,346, reflecting the new mineral trading operations.