Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Table of Contents

U. S. Securities and Exchange Commission

Washington, D. C. 20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 31, 2023

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File No. 333-184061

	TIANCI INTERNATIONAL, INC.
	(Exact Name of Registrant in its Charter)

Nevada		45-5440446
(State or Other Jurisdiction of incorporation or organization)		(I.R.S. Employer I.D. No.)

	Unit B,10/F., Ritz Plaza, No.122 Austin Road, Tsim Sha Tsui, Kowloon, Hong Kong
	(Address of Principal Executive Offices) 00000
	Issuer’s Telephone Number: 852-22510781
	(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	Not Applicable

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.) Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check One)

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the Registrant's classes of common stock, as of the latest practicable date:

December 14, 2023

Common Voting Stock: 5,903,481

TIANCI INTERNATIONAL, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE FISCAL QUARTER ENDED OCTOBER 31, 2023

TABLE OF CONTENTS

		*Page No.*
*Part I. Financial Information*

Item 1.	Financial Statements (unaudited):	1

	Condensed Balance Sheets – October 31, 2023 (Unaudited) and July 31, 2023	1

	Consolidated Statements of Operations (Unaudited) - for the Three Months Ended October 31, 2023 and 2022	2

	Condensed Statement of Changes in Stockholders' Equity (Deficit) (Unaudited) for the Three Months Ended October 31, 2023 and 2022	3

	Statements of Cash Flows (Unaudited) – for the Three Months Ended October 31, 2023 and 2022	4

	Notes to Consolidated Financial Statements (Unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	25

Item 4.	Controls and Procedures	25

*Part II. Other Information*

Item 1.	Legal Proceedings	27

Item 1A.	Risk Factors	27

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27

Item 3.	Defaults Upon Senior Securities	27

Item 4.	Mine Safety Disclosures	27

Item 5.	Other Information	27

Item 6.	Exhibits	27

	Signatures	28

PART I – FINANCIAL INFORMATION

ITEM 1

FINANCIAL STATEMENTS

TIANCI INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(EXPRESSED IN UNITED STATES DOLLARS)


	October 31,			July 31,
	2023			2023
	(Unaudited)
ASSETS
Current assets:
Cash	$	380,833		$	256,342
Accounts receivable		195,629			–
Prepaid expense		1,000			1,750
Due from related party		54,167			54,134
Total current assets		631,629			312,226

Other assets:
Lease security deposit		1,656			1,542
Right-of-use asset		–			6,436
Total non-current assets		1,656			7,978

TOTAL ASSETS	$	633,285		$	320,204

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	196,011		$	779
Income taxes payable		45,411			26,298
Due to related parties		276,077			276,077
Lease liability - current		–			4,368
Advances from customers		–			29,070
Accrued liabilities and other payables		400,530			260,176
Total current liabilities		918,029			596,768

Lease liability - noncurrent		–			2,068

Total liabilities		918,029			598,836

Commitments and contingencies		–			–

Stockholders’ equity (deficit):
Series A Preferred stock, $0.0001 par value; 80,000 shares authorized; 80,000 shares issued and outstanding as of October 31, 2023 and July 31, 2023		8			8
Undesignated preferred stock, $0.0001 par value; 20,000,000 shares authorized; no shares issued and outstanding		–			–
Common stock, $0.0001 par value, 100,000,000 shares authorized; 5,903,481 shares issued and outstanding as of October 31, 2023 and July 31, 2023, respectively*		590			590
Additional paid-in capital		4,982			4,982
Accumulated deficit		(292,305	)		(276,521	)
Total stockholders' deficit attributable to TIANCI INTERNATIONAL, INC.		(286,725	)		(270,941	)
Non-controlling interest		1,981			(7,691	)

Total stockholders’ (deficit)		(284,744	)		(278,632	)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	633,285		$	320,204

*	Shares are presented on a retroactive basis to reflect the reorganization on March 3, 2023

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

TIANCI INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(EXPRESSED IN UNITED STATES DOLLARS)


	For the three months ended October 31,
	2023			2022
	(Unaudited)			(Unaudited)
OPERATING REVENUES
Global logistics services	$	1,181,720		$	–
Other revenue		144,928			124,370
Total Operating Revenues		1,326,648			124,370

COST OF REVENUES
Global logistics services		1,029,970			–
Other revenue		62,901			108,555
Total Cost of Revenues		1,092,871			108,555

Gross profit		233,777			15,815

Operating expenses:
Selling and marketing		102,071			2,159
General and administrative		118,705			15,012

Total operating expenses		220,776			17,171

(Loss) income from operations		13,001			(1,356	)

Other income (expense)		–			–

Income(loss) before provision for (benefit from) income taxes		13,001			(1,356	)
Provision for (benefit from) income taxes		19,113			(224	)

Net (loss)		(6,112	)		(1,132	)
Less: net (loss) income attributable to non-controlling interest		9,672			(113	)

Net loss attributable to TIANCI INTERNATIONAL, INC.	$	(15,784	)	$	(1,019	)

Weighted average number of common shares*
Basic and diluted		5,903,481			1,500,000

Loss per common share attributable to TIANCI INTERNATIONAL, INC.*
Basic and diluted	$	(0.00	)	$	(0.00	)

*	Shares are presented on a retroactive basis to reflect the reorganization on March 3, 2023

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

TIANCI INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED OCTOBER 31, 2023 AND 2022

(EXPRESSED IN UNITED STATES DOLLARS)


	Preferred Stock		Preferred Stock amount*		Common stock*		Common stock amount*		Subscription receivable*			Additional Paid-in Capital		(Accumulated Deficit) Retained Earnings			Noncontrolling interest			Total

Balance at July 31, 2022		–	$	–		1,500,000	$	150	$	(50,000	)	$	82,732	$	64,689		$	7,188		$	104,759
Payments of Shenzhen China rent by related parties (Note 3)		–		–		–		–		–			3,519		–			–			3,519
Net loss		–		–		–		–		–			–		(1,019	)		(113	)		(1,132	)
Balance at October 31, 2022 (unaudited)		–	$	–		1,500,000	$	150	$	(50,000	)	$	86,251	$	63,670		$	7,075		$	107,146

	Preferred Stock		Preferred Stock amount*		Common stock*		Common stock amount*		Subscription receivable*		Additional Paid-in Capital		(Accumulated Deficit)			Noncontrolling interest			Total
Balance at July 31, 2023		80,000	$	8		5,903,481	$	590	$	–	$	4,982	$	(276,521	)	$	(7,691	)	$	(278,632	)
Net loss		–		–		–		–		–		–		(15,784	)		9,672			(6,112	)
Balance at October 31, 2023 (unaudited)		80,000	$	8		5,903,481	$	590	$	–	$	4,982	$	(292,305	)	$	1,981		$	(284,744	)

*	Shares are presented on a retroactive basis to reflect the reorganization on March 3, 2023

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

TIANCI INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(EXPRESSED IN UNITED STATES DOLLARS)


	For the three months ended October 31,
	2023			2022
	(Unaudited)			(Unaudited)
Cash flows from operating activities:
Net (loss)	$	(6,112	)	$	(1,132	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Deferred income tax benefit		–			(224	)
Amortization of operating lease right-of-use asset		356			956
Change in operating assets and liabilities:
Accounts receivable		(195,629	)		(111,749	)
Prepaid expense		750			–
Lease security deposit		(114	)		–
Due from related party		(33	)		(52,550	)
Advances from customers		(29,070	)		–
Accounts payable		195,232			98,202
Income taxes payable		19,113			–
Operating lease liabilities		(356	)		(956	)
Accrued liabilities and other payables		140,354			–
Net cash (used in) provided by operating activities		124,491			(67,453	)

Cash flows from financing activities:
Working capital advances from related party		–			62,775
Repayment of working capital advances from related party		–			(1,285	)
Operating expenses directly paid by shareholders		–			23,977
Payments of Shenzhen China rent by related parties		–			3,519
Net cash (used in) provided by financing activities		–			88,986

Net increase in cash		124,491			21,533
Cash, beginning		256,342			21,237
Cash, ending	$	380,833		$	42,770

Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	–		$	–
Income taxes	$	–		$	–

Non-Cash Activities:
Initial recognition of right-of-use assets and lease liabilities	$	–		$	10,400
Early termination of right-of-use assets and lease liabilities	$	6,080		$	–

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

TIANCI INTERNATIONAL, INC.

Notes To Interim Condensed Consolidated Financial Statements

Three Months Ended October 31, 2023 and 2022

(Unaudited)

NOTE 1 – NATURE OF BUSINESS AND ORGANIZATION

Tianci International, Inc. (the “Company”, “Tianci”) was incorporated under the laws of the State of Nevada as Freedom Petroleum, Inc. on June 13, 2012. In May 2015, the Company changed its name to Steampunk Wizards, Inc. and on November 9, 2016, the Company changed its name to Tianci International, Inc. The Company is a holding company. As of October 31, 2023, the Company had one operating subsidiary, Roshing International Co., Ltd. (“Roshing”). The Company owns 90% of the capital stock of Roshing through RQS United, a wholly-owned subsidiary. The Company’s fiscal year end is July 31.

On February 13, 2023, the Company incorporated a wholly owned subsidiary, Tianci Group Holding Limited, in the Republic of Seychelles.

Reorganization

On March 3, 2023 the Company entered into a Share Exchange Agreement with RQS United Group Limited (“RQS United”) and RQS Capital Limited (“RQS Capital”), which was the sole shareholder of RQS United (the “Exchange Agreement”). RQS United owns 90% of the equity in Roshing International Co., Ltd. (“Roshing”), which is engaged in the business of providing global logistics services including ocean freight forwarding and related logistics solutions, distributing electronic components and providing software services. Pursuant to the Exchange Agreement, on March 6, 2023 RQS Capital transferred all of the issued and outstanding capital stock of RQS United to the Company, and the Company issued to RQS Capital 1,500,000 shares of our common stock and paid a cash price of $350,000 (the “Share Exchange”). Pursuant to the Exchange Agreement, the Company also issued a total of 700,000 shares of our common stock to nine employees or affiliates of Roshing to induce continued services to Roshing.

As a result of the Share Exchange, RQS United became our wholly-owned subsidiary and the former RQS United stockholder became our controlling stockholder. The share exchange transaction was treated as a reverse acquisition, with RQS United as the acquirer and the Company as the acquired party for accounting purposes. Unless the context suggests otherwise, when we refer in this report to business and financial information for periods prior to the consummation of the reverse acquisition, we are referring to the business and financial information of RQS United and its consolidated subsidiary, Roshing.

Prior to the Share Exchange, the Company was a shell company as defined in Rule 12b-2 under the Exchange Act. As a result of the transactions under the Exchange Agreement, the Company ceased to be a shell company.

RQS United is a holding company incorporated on November 4, 2022 in the Republic of Seychelles. RQS United has no substantive operations other than holding 90% of the outstanding share capital of its subsidiary, Roshing, which was incorporated on June 22, 2011 in Hong Kong, is principally engaged in global logistics services, sales of electronic device hardware components, development of logistics software and websites, technical consulting, and software maintenance. Roshing’s business is primarily carried out in Hong Kong.

Going Concern Uncertainty

The accompanying consolidated Financial Statements have been prepared in accordance with accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As of October 31, 2023, the Company had cash of $380,833 and negative working capital of $286,400. For the three months ended October 31, 2023 and 2022, the Company had total operating revenues of $1,326,648 and $124,370, respectively, and net losses of $6,112 and $1,132, respectively. These factors among others raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. Management plans to seek debt and/or equity financing to operate until such time as the Company has established sufficient ongoing revenues to cover its costs. However, there is no assurance that management will be successful in accomplishing its plans. These financial statements do not include any adjustments relating to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The interim financial information referred to above has been prepared and presented in U.S. dollars in conformity with accounting principles generally accepted in the United States applicable to interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The interim financial information has been prepared on a basis consistent with prior interim periods and years and includes all disclosures that are necessary and required by applicable laws and regulations. These interim financial statements include all adjustments that, in the opinion of management, are necessary in order to make the financial statements not misleading. This report on Form 10-Q should be read in conjunction with the Company’s financial statements for the years ended July 31, 2023 and 2022 and notes thereto included in the Company’s Form 10-K filed with the SEC on October 23, 2023.

Results of the three months ended October 31, 2023 are not necessarily indicative of the results that may be expected for the year ending July 31, 2024 or any other future periods.

Principles of consolidation

The consolidated financial statements include the financial statements of Tianci and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting periods. Actual results could differ from these good faith estimates and judgments.

Foreign currency translation and transactions

The Company uses the U.S. dollar as its reporting currency and functional currency. Transaction gains and losses are recognized in the consolidated statement of operations.

Cash and Cash Equivalents

Cash and cash equivalents consist primarily of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. The Company maintains its bank accounts in United States and Hong Kong.

Accounts receivable, net

Accounts receivable include trade accounts due from customers which are generally collected within six months. In establishing the allowance for doubtful accounts, management considers historical collection experience, aging of the receivables, the economic environment, industry trend analysis, and the credit history and financial condition of the customer. Management reviews its receivables on a regular basis to determine if the allowance for doubtful accounts is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of October 31, 2023 and July 31, 2023, no allowance for doubtful accounts was deemed necessary.

Fair Value Measurements

The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company.

The accounting standard defines fair value, establishes as a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follow:

·		Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

·		Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in inactive markets and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.

·		Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Financial instruments included in current assets and current liabilities (such as cash, accounts receivable, due from related party, accounts payable, and due to related parties) are reported in the consolidated balance sheets at cost, which approximates fair value because of the short period of time between the origination of such instruments and their expected realization.

Revenue recognition

The Company follows the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606. This standard requires the use of a five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identifies the contract with the customer, (ii) identifies the performance obligations in the contract, (iii) determines the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocates the transaction price to the respective performance obligations in the contract, and (v) recognizes revenue when (or as) the Company satisfies the performance obligations.

The Company records revenue net of sales taxes which are subsequently remitted to governmental authorities and are excluded from the transaction price.

The Company’s revenue recognition policies are as follows:

a. Global Logistics Services

The Company provides global logistics services, including ocean freight forwarding and related logistics solutions. As a non-asset-based carrier, the Company does not own transportation assets.

The Company derives its revenues by entering into agreements that are generally comprised of a single performance obligation, which is that freight is shipped for and received by the customer via either container ships or general cargo vessels. The most significant drivers of changes in gross revenues and related transportation expenses are volume and weight.

In general, each shipment transaction or service order constitutes a separate contract with the customer. A performance obligation is created once a customer agreement with an agreed upon transaction price exists. The transaction price, which is based on volume, weight, and shipping time, is fixed and not contingent upon the occurrence or non-occurrence of any other event.

The Company typically satisfies its performance obligations at a point in time when freight is shipped to destination port and accepted by its customers. The Company does not have significant variable consideration in its contracts. Taxes assessed concurrently with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenues.

The Company evaluates whether amounts billed to customers should be reported as gross or net revenue. Revenue is recorded on a gross basis when the Company is primarily responsible for fulfilling the promise to provide the services, when it assumes risk of loss, when it has discretion in setting the prices for the services to the customers, and when the Company has the ability to direct the use of the services provided by the third party. In most cases we act as an indirect carrier. When acting as an indirect carrier, we issue a Fixture Note to customers as the contract of carriage. In turn, when the freight is physically tendered to a direct carrier, we receive a Master Ocean Bill of Lading.

The Company’s evaluation determined that it is in control of establishing the transaction price, managing all aspects of the shipment process and assumes the risk of loss for delivery, collection, and returns. Based on its evaluation of the control of services and risk involved, the Company determined that it acts as a principal rather than an agent in global logistics service arrangements and such revenues are reported on a gross basis.

b. Electronic Device Hardware Components Products Sales

The Company is a distributor of electronic device hardware components and generates revenue through resale of these components. The Company’s products include high performance computer chips, Wi-Fi modules, Bluetooth modules, 4G network modules, LED screens, and touch screens. In accordance with ASC 606, Revenue Recognition: Principal Agent Consideration, an entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. Otherwise, the entity is an agent in the transaction. The Company evaluates three indicators of control in accordance with ASC 606: 1) For hardware sales, the Company is the most visible entity to customers and assumes fulfillment risk and risks related to the acceptability of products, including addressing customer complaints directly and handling of product returns or refunds directly; 2) The Company is exposed to inventory risk before transfer of control to customers; and 3) The Company determines the resale price of hardware products. After evaluating the above circumstances, the Company considers itself the principal of these arrangements and records hardware sales revenue on a gross basis.

Hardware sales contracts are on a fixed price basis with no separate sales rebate, discount, or other incentive. Revenue is recognized at a point in time when the Company has delivered products that have been accepted by its customer with no future obligations. The Company generally permits returns of products due to product failure; however, returns are historically insignificant.

c. Software and Website Development Services

The Company generates revenue by developing customized freight shipping and related logistic software and websites, which are generally on a fixed-priced basis. The software helps wholesalers, ecommerce retailers, and freight shipping providers to manage complex workflows and improve work efficiency. The Company generally has no enforceable right to payment for performance completed to date and is only entitled to payment after software is fully developed, delivered, tested, and accepted by the customer. As a result, revenues from software development contracts are recognized at a point in time when services are fully rendered, and written acceptances have been received from customers.

d. Technical Consulting and Training Services

The Company provides technical consulting and training services to help customers, generally its existing customers, to better understand and properly use its customized software and related hardware. Services are generally carried out on a per-time fixed rate basis. Revenue is recognized at a point in time when service is rendered and the customer confirms the completion of consulting or training.

e. Software Maintenance and Business Promotion Services

The Company provides software maintenance service to keep customer’s software up to date and assists customers in promoting business with ongoing marketing support. The Company charges a flat rate for a fixed duration on a subscription basis, generally 12 months. Revenue is recognized ratably each month over the contract period.

f. Business Consulting Services

The Company provides business consulting services to help customers apply for immigration and non-immigration visas. The Company is responsible for performing background checks, case analysis, and preparing related application paper works. The Company charges a flat fee for the visa application services. Revenue is recognized at a point in time when an application is submitted with proper authorities.

Cost of revenues

For global logistics services, cost of revenue consists primarily of cargo space charged by direct ocean carriers, freight forwarders and ancillary logistics services fees.

For hardware products sales, the cost of revenue consists primarily of the costs of hardware products sold.

For software, consulting, services-based revenue, the cost of revenue consists primarily of costs paid to outsourced service providers and compensation expenses paid the Company’s service vendor.

Advertising costs

Advertising costs amounted to $0 and $192 for the three months ended October 31, 2023 and 2022, respectively. Advertising costs are expensed as incurred and included in selling and marketing expenses.

Operating leases

Effective August 1, 2022, the Company adopted FASB ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that does not require the Company to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. For lease terms of twelve months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company also adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. Upon adoption of ASU 2016-02 effective August 1, 2022, the Company recognized a $8,704 right of use (“ROU”) asset and operating lease liabilities in January 2023 based on the present value of the future minimum rental payments of leases, using an incremental borrowing rate of 5%.

The Company determines if a contract contains a lease at inception. US GAAP requires that the Company’s leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option would result in an economic penalty. All of the Company’s real estate leases are classified as operating leases.

Lease payments for an operating lease transitioning to ASC 842 using the effective date are based on future payments at the transition date and on the present value of lease payments over the remaining lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term.

Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception; therefore, operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Lease expense is recognized on a straight-line basis over the lease term.

The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations.

The lease for the Company’s Hong Kong office facility was early terminated in September 2023, which resulted in a derecognition of $6,080 right of use (“ROU”) asset and operating lease liabilities in August 2023.

Income taxes

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. The charge for taxation is based on the results for the fiscal year as adjusted for items which are non-taxable or non-deductible. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the unaudited interim consolidated financial statements and the corresponding tax bases used in the computation of taxable income (loss). In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the statements of operations, except when it is related to items credited or charged directly to equity, in which case the deferred tax is dealt with in equity. Net deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the net deferred tax asset will not be realized.

An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax for uncertain tax positions are classified as income tax expense in the period incurred.

The Hong Kong tax returns filed for 2016 and subsequent years are subject to examination by the applicable tax authorities.

The US tax returns filed for 2019 and subsequent years are subject to examination by the applicable tax authorities.

Earnings (loss) per share

The Company computes earnings (loss) per share (“EPS”) in accordance with FASB ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average ordinary shares outstanding for the period. Diluted EPS presents the diluted effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the three months ended October 31, 2023, there were 8,000,000 dilutive shares outstanding related to the convertible Series A Preferred Stock (see Note 4). For the three months ended October 31, 2022, there were no dilutive shares outstanding.

Noncontrolling Interests

The Company’s noncontrolling interest represents the minority shareholder’s 10% ownership interest in Roshing. The noncontrolling interest is presented in the consolidated balance sheets separately from stockholders’ equity attributable to Tianci. Noncontrolling interest in the results of Roshing are presented on the consolidated statements of operations as allocations of the total income or loss of Roshing for the three months ended October 31, 2023 and 2022 between the noncontrolling interest holder and the shareholders of RQS United.

Related parties

Parties, which can be a corporation, other business entity, or an individual, are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence.

Recently issued accounting pronouncements

The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies.

In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments — Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments — Credit Losses — Available-for-Sale Debt Securities. The amendments in this Update provide an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. In November 2019, the FASB issued ASU No. 2019-10, which updates the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning August 1, 2023 as the Company is qualified as an emerging growth company. The adoption of this standard on August 1, 2023 has not had and is not expected to have a material impact on the Company’s future consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The adoption of this standard on August 1, 2022 did not have a material impact on the Company’s consolidated financial statements.

Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated Financial Statements.

NOTE 3 – RELATED PARTIES BALANCES AND TRANSACTIONS

Due from related party consists of:

Due from related party represents a receivable of $54,167 from RQS Capital at October 31, 2023. The receivable, which was non-interest bearing and due on demand, was collected by the Company in December 2023.

Due to related parties consist of:

Schedule of due to related parties
		Transaction	October 31,		July 31,
Name	Relationship	Nature	2023		2023
Zhigang Pei	Chairman of the Board	Working capital advances and operating expenses paid on behalf of the Company	$	220,909	$	220,909
RQS Capital	68% shareholder	Company cash collection due to RQS Capital		2,132		2,132
Ying Deng	RQS Capital 30% owner and Roshing’s 10% owner	Working capital advances and operating expense paid on behalf of the Company		53,036		53,036

TOTAL			$	276,077	$	276,077

These liabilities are unsecured, non-interest bearing, and due on demand.

Employment agreements with officers and director retainer agreements

Tianci currently maintains two employment agreements and six director retainer agreements with its officers and directors. The agreements have terms of 3 years and each provide for monthly compensation in amounts ranging from $1,300 per month to $3,800 per month.

For the three months ended October 31, 2023, we accrued management compensation expenses of $60,000. These amounts are included in “general and administrative expenses” in the accompanying consolidated statement of operations.

Office space sharing agreement with related parties

On August 28, 2021, Roshing entered into an office space sharing agreement with Shufang Gao, 60% owner of RQS Capital, and Ying Deng, 30% owner of RQS Capital, for office space in Shenzhen, China. The agreement provided for Gao and Deng, sub lessees under a separate office space sharing agreement relating to the use of the premises from August 28, 2021, to August 31, 2024, to pay monthly rent to the lessee ranging from RMB 12,320 (approximately $1,726) to RMB 13,583 (approximately $1,903) on behalf of Roshing. The rent expenses paid by Gao and Deng were billed directly to Gao and Deng by the Lessee and the sublease is between Gao and Deng and the Lessee. The Company has no obligation, directly or indirectly, to reimburse or otherwise compensate Gao and Deng for paying these expenses. For the three months ended October 31, 2023 and 2022, the Company has accounted for this agreement by charging general and administrative expenses for $0 and $3,519, respectively, and crediting additional paid-in capital for $0 and $3,519, respectively. The office sharing agreement was terminated on May 31, 2023 when Roshing moved all of its operations to its office in Hong Kong.

NOTE 4 – STOCKHOLDERS EQUITY

On January 26, 2023 the Company filed with the Nevada Secretary of State a Certificate of Amendment of Articles of Incorporation (the “Amendment”). The Amendment amended Article 3 of the Company’s Articles of Incorporation to provide that the authorized capital stock of the Company will be 120,080,000 shares of capital stock consisting of 100,000,000 shares of common stock, $0.0001 par value, 80,000 shares of Series A Preferred Stock, $0.0001 par value, and 20,000,000 shares of undesignated preferred stock, $0.0001 par value.

The following table sets forth information, as of October 31, 2023, regarding the classes of capital stock that are authorized by the Articles of Incorporation of Tianci International, Inc.

Schedule of capital stock authorized
Class	Shares Authorized		Shares Outstanding
Common Stock, $.0001 par value		100,000,000		5,903,481
Series A Preferred Stock, $.0001 par value		80,000		80,000
Undesignated Preferred Stock, $.0001 par value		20,000,000		0

Series A Preferred Stock

Each share of Series A Preferred Stock may be converted by the holder of the share into 100 shares of common stock, subject to equitable adjustment of the conversion rate. Each holder of Series A Preferred Stock will have voting rights equal to the holder of the number of shares of common stock into which the Series A Preferred Stock is convertible. Upon liquidation of the Company, each holder of Series A Preferred Stock will be entitled to receive, out of the net assets of the Company, $0.01 per share, then to share in the distribution on an as-converted basis.

Undesignated Preferred Stock

The Board of Directors has the authority, without shareholder approval, to amend the Company’s Articles of Incorporation to divide the class of undesignated Preferred Stock into series, and to determine the relative rights and preferences of the shares of each series, including (i) voting power, (ii) the rate of dividend, (iii) the price at which, and the terms and conditions on which, the shares may be redeemed, (iv) the amount payable upon the shares in the event of liquidation, (v) any sinking fund provision for the redemption or purchase of the shares, and (vi) the terms and conditions on which the shares may be converted to shares of another series or class, if the shares of any series are issued with the privilege of conversion.

Issuances of Preferred Stock and Common Stock

On January 27, 2023, Tianci sold 80,000 shares of its Series A Preferred Stock to RQS Capital for $24,000 cash.

On March 1, 2023, Tianci sold a total of 1,253,333 shares of its common stock to 13 non-US persons at a price of $0.30 per share or $376,000 total.

On March 6, 2023, Tianci issued 1,500,000 shares of its common stock to RQS Capital pursuant to the Share Exchange Agreement dated March 3, 2023 (see Note 1 above).

Also on March 6, 2023 pursuant to the Share Exchange Agreement dated March 3, 2023, Tianci issued a total of 700,000 shares of its common stock to nine employees or affiliates of Roshing to induce continued services to Roshing. For the year ended July 31, 2023, the Company accounted for this issuance by expensing the $210,000 estimated fair value of the 700,000 shares of common stock to (1) cost of revenues-services ($144,000), (2) selling and marketing ($36,000), and (3) general and administrative ($30,000).

NOTE 5 – INCOME TAXES

Income Taxes

Seychelles

RQS United is incorporated in Seychelles and is not subject to tax on income generated outside of Seychelles under the current law. In addition, upon payment of dividends, no withholding tax is imposed under current law.

Hong Kong

Roshing is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. Hong Kong income tax expenses (benefit) for the three months ended October 31, 2023 and 2022 amounted to $19,113 and $(224), respectively.

For the three months ended October 31, 2023, the income before provision for income taxes of $13,001 consisted of United States source loss of $(102,833) and Hong Kong source income of $115,834. For the three months ended October 31, 2022, the loss before benefit from income taxes of $(1,356) was all Hong Kong source loss.

Significant components of the provision for income taxes are as follows:


	For the three months ended
	October 31, 2023		October 31, 2022
	(Unaudited)		(Unaudited)
Current Hong Kong	$	19,113	$	–
Deferred Hong Kong		–		(224	)
Provision (benefit) for income taxes	$	19,113	$	(224	)

The following table reconciles the Hong Kong statutory rates to the Company’s Hong Kong effective tax rate:


	For the three months ended October 31, 2023		For the three months ended October 31, 2022
	(Unaudited)		(Unaudited)
Hong Kong statutory income tax rate		16.5%		16.5%
Effective tax rate		16.5%		16.5%

For United States income tax purposes, Tianci has a net operating loss carry forward of approximately $1,070,000 at October 31, 2023. Management has not determined that it is more likely than not that this carryforward will be realized and thus the Company maintained a 100% valuation allowance for the deferred tax asset relating to the United States net operating loss carryforward. Current United States income tax law limits the amount of loss available to offset against future taxable income when a substantial change in ownership occurs.

Uncertain tax positions

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of October 31, 2023 and July 31, 2023, the Company did not have any significant unrecognized uncertain tax positions.

As of October 31, 2023, tax years 2020 and forward generally remain open for examination for United States Federal and State tax purposes and tax years 2017 and forward generally remain open for examination for foreign tax purposes.

NOTE 6 — CONCENTRATION OF RISK

Credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash held in banks. The cash balance in each financial institution in the United States is insured by the FDIC up to $250,000. As of October 31, 2023, no United States account balance exceeded $250,000. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately US$64,000) if the bank with which an individual/company holds its eligible deposit fails. As of October 31, 2023, a cash balance of $356,990 was maintained at a financial institution in Hong Kong of which approximately $293,000 was subject to credit risk. Management believes that the financial institution is of high credit quality and continually monitors its credit worthiness.

Customer concentration risk

For the three months ended October 31, 2023, two customers accounted for 61.2% and 13.1% of the Company’s total revenues.

For the three months ended October 31, 2022, two customers accounted for 48.2% and 27.5% of the Company’s total revenues.

As of October 31, 2023, four customers accounted for 44.8%, 23.9%, 15.8% and 12.8% of the Company’s total accounts receivable. As of July 31, 2023, no customer accounted for over 10% of the Company’s total accounts receivable.

Vendor concentration risk

For the three months ended October 31, 2023, two vendors accounted for 65.9% and 13.7% of the Company’s total purchases. For the three months ended October 31, 2022, three vendors accounted for 45.8%, 25.5%, and 19.6% of the Company’s total purchases.

As of October 31, 2023, four vendors accounted for 31.5%, 29.4%, 22.7%, and 16.3% of the Company’s total accounts payable. As of July 31, 2023, no vendor accounted for over 10% of the Company’s total accounts payable.

NOTE 7— COMMITMENTS AND CONTINGENCIES

Lease commitments

On January 1, 2021, Roshing entered into an operating lease agreement for office space in Hong Kong with a third party. The agreement had a term of two years and provided for monthly rent of HKD 2,800 (approximately $360). On January 13, 2023, the Company entered a new operating lease agreement for office space in Hong Kong with a third party for two years with monthly rent of HKD 3,000 (approximately $382). Upon adoption of ASU 2016-02 effective August 1, 2022, the Company recognized a $8,704 right of use (“ROU”) asset and operating lease liabilities in January 2023 based on the present value of the future minimum rental payments of leases, using an incremental borrowing rate of 5%. The Company’s lease agreement does not contain any material residual value guarantees or material restrictive covenants. The lease does not contain an option to extend at the time of expiration. The lease was early terminated in September 2023 which resulted in a derecognition of $6,080 right of use (“ROU”) asset and operating lease liabilities in August 2023.

In September 2023, the Company entered into a one-year short term lease with a monthly lease payment of approximately $828 (HKD 6500).

Rent expenses were $3,184 and $4,599 for the three months ended October 31, 2023 and 2022, respectively.

Contingencies

From time to time, the Company may be a party to legal proceedings, as well as certain asserted and un-asserted claims. The Company was not involved in any material legal proceedings nor asserted claims as of October 31, 2023.

NOTE 8 — ENTERPRISE-WIDE DISCLOSURE

The Company follows ASC 280, Segment Reporting, which requires companies to disclose segment data based on how management makes decisions about allocating resources to each segment and evaluates their performances. The Company’s chief operating decision-makers (i.e., the Company’s chief executive officer and his direct assistants, including the Company’s chief financial officer) review financial information presented on a consolidated basis, accompanied by disaggregated information about revenues, cost of revenues, and gross profit by business lines and by regions (primarily in Hong Kong and Singapore) for purposes of allocating resources and evaluating financial performance. There are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. Based on qualitative and quantitative criteria established by ASC 280, the Company considers itself to be operating within one reportable segment.

Disaggregated information of revenues by business lines are as follows:


	For the three months ended October 31,
	2023		2022
	(Unaudited)		(Unaudited)
Electronic Device Hardware Components Sales	$	59,902	$	104,194
Software and Website Development Services		19,230		–
Technical Consulting and Training Services		–		6,426
Software Maintenance and Business Promotion Services		15,263		13,750
Business Consulting Services		50,533		–
Global Logistics Services		1,181,720		–
Total revenues	$	1,326,648	$	124,370

Disaggregated information of revenues by regions are as follows:


	For the three months ended October 31,
	2023		2022
	(Unaudited)		(Unaudited)
Hong Kong	$	1,051,017	$	118,120
Vietnam		173,531		–
Japan		100,850		–
Singapore		1,250		6,250
Total revenues	$	1,326,648	$	124,370

NOTE 9 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Unaudited)

The Company performed a test on the restricted net assets of its consolidated subsidiaries in accordance with Rule 4-08(e)(3) of Regulation S-X promulgated by the SEC, “General Notes to Financial Statements” and concluded that it was applicable and the Company is required to disclose the required financial statement information for the parent company.

The subsidiaries did not pay any dividends to the parent during the periods presented. For the purpose of presenting parent only financial information, the Company records its investment in its subsidiaries under the equity method of accounting. Such investments are presented on the separate parent only balance sheets as “investment in subsidiaries” and the income (loss) of the subsidiaries is presented as “share of income (loss) of subsidiaries.” Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed or are not required.

PARENT COMPANY BALANCE SHEET

Schedule of balance sheets
	October 31,
	2023
	(Unaudited)
ASSETS
Cash	$	23,822
Prepaid expense		1,000
Receivable from subsidiaries		29,487
Investment in subsidiaries		182,937
Total Assets	$	237,246


LIABILITIES
Accounts payable and accrued liabilities	$	300,930
Due to related parties		223,041
Total Liabilities		523,971

Stockholders’ equity
Series A Preferred stock, $0.0001 par value; 80,000 shares authorized; 80,000 shares issued and outstanding as of October 31, 2023		8
Undesignated preferred stock, $0.0001 par value; 20,000,000 shares authorized; no shares issued and outstanding		–
Common stock, $0.0001 par value, 100,000,000 shares authorized; 5,903,481 shares issued and outstanding as of October 31, 2023		590
Additional paid-in capital		4,982
Accumulated deficit		(292,305	)
Total stockholders’ equity		(286,725	)

Total Liabilities and Stockholders’ Equity	$	237,246

PARENT COMPANY STATEMENT OF OPERATIONS

Schedule of statements of operations
	For the three months ended October 31,
	2023
	(Unaudited)
EXPENSES:
General and administrative	$	(102,833	)

OTHER INCOME:
Income from investment in subsidiaries		87,049

Net Loss	$	(15,784	)

PARENT COMPANY STATEMENT OF CASH FLOWS

Schedule of statements of cash flows
	For the three months ended October 31,
	2023
	(Unaudited)
Cash flows from operating activities:
Net loss	$	(15,784	)
Adjustments to reconcile net loss to net cash used in operating activities:
Share of income from investment in subsidiaries		(87,049	)
Change in operating assets and liabilities:
Prepaid expense		750
Accounts payable and accrued liabilities		59,352
Net cash (used in) operating activities		(42,731	)

Net decrease in cash and cash equivalents		(42,731	)
Cash and cash equivalents at July 31, 2023		66,553
Cash and cash equivalents at October 31, 2023	$	23,822

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

On March 3, 2023, we acquired ownership of RQS United Group Limited, a company organized under the laws of the Republic of Seychelles (“RQS United”), pursuant to the Share Exchange Agreement dated March 3, 2023 among the Company, RQS United and RQS Capital Limited, the prior owner of RQS Limited.

RQS United is a holding company incorporated in the Republic of Seychelles. RQS United has no operations other than holding 90% of the outstanding share capital of its subsidiary, Roshing International Co., Ltd., a company organized under the laws of Hong Kong (“Roshing”). Roshing was incorporated on June 22, 2011 and is primarily engaged in logistics solutions, including sea freight forwarding, and logistic software development and maintenance. We also generate revenue from the sale of electronic parts, and certain technical consulting services.

As a non-asset-based freight forwarder, we currently do not own or operate any transportation assets. By acting as an indirect carrier, we issue fixture notes to customers as the contract of carriage. In turn, when the freight is physically tendered to a direct carrier, we receive a contract of carriage known as a Master Ocean Bill of Lading (MOBL). By leveraging our senior management’s expertise on the global logistics industry and adopting an asset-light strategy at the early stage, we’ve seen a significant growth on logistics revenue this quarter. Our business is primarily carried out in Hong Kong and the Asia-Pacific region.

We are optimistic about the future of the logistics service industry and expect that the fundamental supply and demand relationship will enable us to achieve a sustainable business model in the long run. We expect that the global demand for coal, grains and iron ore, electric vehicles, and green energy equipment will continue to increase in response to changes in international trade flows and growing emerging market economies, as well as post pandemic stimulus policies in many countries, boosting demand on global logistics services. Our vision is to continue exploring opportunities in Asia-Pacific, including Vietnam, Singapore, and other emerging markets to increase our customer base and global logistics service revenue.

Results of Operations

Comparison of the three months ended October 31, 2023 and 2022

	For the three months ended October 31,
	2023			2022			Change			Change Percentage
Revenues		1,326,648			124,370			1,202,278			967%
Cost of Revenues		1,092,871			108,555			984,316			907%
Gross profit		233,777			15,815			217,962			1378%
Selling and marketing		102,071			2,159			99,912			4628%
General and administrative		118,705			15,012			103,693			691%
(Loss) income from operations		13,001			(1,356	)		14,357			–
Provision for income taxes		19,113			(224	)		19,337			–
Net (loss) income		(6,112	)		(1,132	)		(4,980	)		(440%	)
Less: net (loss) income attributable to non-controlling interest		9,672			(113	)		9,785			–
Net (loss) income attributable to Tianci		(15,784	)		1,019			(14,765	)		–

Revenues

During the three months ended October 31, 2023, our revenue increased by $1,202,278, or approximately 9.6 times, to $1,326,648 for the three months ended October 31, 2023 from $124,370 for the three months ended October 31, 2022. The increase was mainly attributed to the launch of our global logistics service, which contributed $1,181,720 to our revenue for the three months ended October 31, 2023, representing approximately 89% of revenue in the quarter ended October 31, 2023.

Our revenues from our revenue streams are categorized as follows:

	For the Three Months Ended October 31,
	2023		2022
Global Logistics Service Revenue	$	1,181,720	$	–
Product Revenue		59,902		98,000
Other Service Revenue		85,026		26,370
	$	1,326,648	$	124,370

Cost of Revenues

Total cost of revenues increased by $984,316, or approximately 9.1 times, to $1,092,871 for the three months ended October 31, 2023 as compared to $108,555 for the three months ended October 31, 2022. The increase was primarily attributable to the launch of global logistics services.

Our cost of revenues from our revenue categories are summarized as follows:

	For the Three Months Ended October 31,
	2023		2022
Cost of Global Logistics Service	$	1,029,970	$	–
Cost of Product		50,008		73,200
Cost of Other Service		12,893		35,355
	$	1,092,871	$	108,555

Our cost of revenues from global logistics services was $1,029,970 for the three months ended October 31, 2023. We did not have any cost of global logistics service in the same period in 2022 as this was a brand new service line. Cost of global logistics services primarily include the cargo space charged by direct ocean carriers, freight forwarders and ancillary logistics services fees.

Our cost of revenues from hardware product sales decreased by $23,192, or approximately 32%, to $50,008 for the three months ended October 31, 2023, from $73,200 for the three months ended October 31, 2022.

Gross Profit

Our gross profits from our major revenue categories are summarized as follows:

Margins

	For the Three Months Ended October 31,
	2023		2022
Global Logistics Service
Gross Profit Margin	$	151,750	$	–
Gross Profit Margin		12.8%		–
Hardware Product Sales
Gross Profit Margin	$	9,894	$	24,800
Gross Profit Percentage		16.5%		25.3%
Other Services
Gross Profit Margin	$	72,133	$	(8,985	)
Gross Profit Percentage		84.8%		-34.1%
Total
Gross Profit Margin	$	233,777	$	15,815
Gross Profit Percentage		17.6%		12.7%

Our gross profit increased by $217,962 to $233,777 for the three months ended October 31, 2023 from $15,815 for the three months October 31, 2022. The increase in gross profit was primarily due to the launch of global logistics service, as discussed above. For the three months ended October 31, 2023 and 2022, our overall gross profit margin was 17.6% and 12.7%, respectively. The gross profit margin of the new global logistics service was 12.8%, which is likely to increase as demand picks up post-pandemic with relatively stable global logistics supply. Our growth profit margin of hardware products for the three months ended October 31, 2023 decreased to 16.5%, from 25.3% for the three months ended October 31, 2022 due to pierce competition and relatively low demand on hardware products. The gross profit margin of our other services revenue increased to 84.8% for the three months ended October 31, 2023, driven and started generating profit for the Company

Operating Expenses

There was significant change in our total operating expenses, which were $220,776 and $17,171 for the three months ended October 31, 2023, and 2022, respectively. Our operating expenses primarily include payroll expenses, commissions, advertising, rent and professional fees for the compliance service as a public company. The increase was mainly due to the increased commission expense for referring the global logistics customers, and compliance service professional fees.

Income tax expense

Our income tax expense amounted to $ 19,113 and $ (224) for the three months ended October 31, 2023, and 2022, respectively. The change was due to the increase in revenue realized during the recent quarter.

Net Loss

The Company realized a net loss of $6,112 for the three months ended October 31, 2023. However, because the Company owns only 90% of its operating subsidiary, Roshing, 10% of that company’s net income was attributed to the minority interest. Therefore the net loss for the three months ended October 31, 2023 attributable to the shareholders of Tianci International was $15,784. In comparison, during the three months ended October 31st 2023, the Company’s net loss was $1,132 and, after deducting the net loss attributable to the 10% minority interest in Roshing, net loss attributable to shareholders of Tianci International was $1,019. We believe our pivot into the logistics service gives our shareholders an opportunity and exposure at a great sector as the global economy recovers from the pandemic.

Liquidity and Capital Resources

In assessing our liquidity, we monitor and analyze our cash on-hand and our operating expenditure commitments. Our liquidity needs are to meet our working capital requirements and operating expenses obligations. As of October 31, 2023, we have a working capital deficit of $(286,400), our cash amounted to $380,833, our current assets were $631,629 and our current liabilities were $918,029. To date, we have financed our operations primarily through capital contributions and advances from shareholders and private investors. At October 31, 2023 we owed $276,077 to related parties (See Note 3 of the interim financial statement). We also owed $300,800 to officers for compensation accrued under their employment agreements that they have agreed to defer. The deferred compensation is classified with accrued liabilities and other payables.

Because 63% of our liabilities are owed to related parties, we believe that our liquidity and working capital will be sufficient to sustain our business operation for the next twelve months. We may, however, need additional cash resources in the future if there are changes in business conditions or other developments or if the company finds and wishes to pursue opportunities for investment, acquisition, capital expenditure, or similar actions.

We started providing shipping & freight forwarding services during the quarter ended October 31, 2023, which may require significant capital expenditure for developing the business. If we determined that our cash requirements exceed the amount of cash and cash equivalents we have on hand at the time, we may seek to issue equity or debt securities or obtain credit facilities. The issuance and sale of additional equity may result in dilution to our shareholders. The incurrence of indebtedness would result in increased fixed obligations and could result in operating covenants that would restrict our operations. Our obligation to bear credit risk for certain financing transactions we facilitate may also strain our operating cash flow. We cannot assure you that financing will be available in amounts or on terms acceptable to us, if at all.

The following table summarizes the key components of our cash flows for the three months ended October 31, 2023 and 2022.

	For the three months ended
	October 31,
	2023			2022
Net cash provided by (used in) operating activities	$	124,524		$	(14,903	)
Net cash used in investing activities		–			–
Net cash provided by (used in) financing activities		(33	)		36,436
Net change in cash and restricted cash	$	124,491		$	21,533

Operating activities

Net cash of $124,524 provided by operating activities for the three months ended October 31, 2023 was primarily the result of an increase in accounts payable of $195,232, an increase in accrued liabilities and other payables of $140,354 which was partially offset by the increase of $ 195,629 in accounts receivable.

Net cash of $14,903 used in operating activities for the three months ended October 31, 2022 was primarily the result of an increase in accounts receivable of $111,749, which was partially offset by the increase of $98,202 in accounts payable.

Investing activities

The company has no investing activities for the three months ended October 31, 2023 and 2022.

Financing activities

Net cash used in financing activities for the three months ended October 31, 2023 was $33. This was attributable to our repayment of a working capital advance by a related party in the amount of $90,000, which was offset by the $89,967 in working capital advance from related parties.

Net cash of $36,436 provided by financing activities for the three months ended October 31, 2022 was primarily attributable to a working capital advance from a related party amounting to $62,775, the direct payment of operating expenses by shareholders amounting to $23,977, and the payments of Shenzhen China rent by related parities amounting to $3,519. Cash inflow was partially offset by repayment of a working capital advance to related party in the amount of $53,835.

Impact of the COVID-19 Pandemic

The global outbreak of COVID-19 and resulting health crisis has caused, and continues to cause, significant and widespread disruptions to the Hong Kong and global economies, financial and consumer markets. We believe, however, that the COVID-19 outbreak has had very limited impact on our business.

During the course of the COVID-19 pandemic, public health officials and other governmental authorities have imposed and may impose new mitigation measures, regulations and requirements to address the spread of COVID-19. Public health officials and other governmental authorities also have imposed directives and may impose additional directives that could require changes in our business practices. The scope and duration of these mitigation measures and directives continue to evolve throughout the course of the COVID-19 pandemic. Depending on the future course of COVID-19 and further outbreaks, we may experience restrictions and temporary closures of our offices.

Although we have continued to serve our clients and operate our business throughout the COVID-19 pandemic, there can be no assurance that future events will not have an effect on our business, results of operations or financial condition because the extent and duration of the health crisis remains uncertain. Future adverse developments in connection with the COVID-19 crisis, including further outbreaks and new strains or variants of COVID-19, evolving international, federal, state and local restrictions and safety regulations in response to COVID-19, changes in consumer behavior and health concerns, the pace of economic activity in the wake of COVID-19, or other similar issues could adversely affect our business, results of operations or financial condition in the future, or our financial results and business performance in future periods.

We continue to actively manage the impact of the COVID-19 crisis as we face continued uncertainty regarding the impact COVID-19 will have on our financial operations in the near and long term. The need for, or timing of, any future actions in response to COVID-19 is largely dependent on the mitigation of the spread of the virus along with the adoption and continued effectiveness of vaccines, status of government orders, directives and guidelines, recovery of the business environment, global supply chain conditions, economic conditions, and consumer demand for our products and services, all of which are highly uncertain.

Critical Accounting Estimates

Our financial statements and accompanying notes have been prepared in accordance with U.S. GAAP. The preparation of these financial statements and accompanying notes requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

In connection with the preparation of our financial statements for the three months ended October 31, 2023, there was no accounting estimate we made that was subject to a high degree of uncertainty and was critical to our results.

Recently Issued Accounting Pronouncements

The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. The Company does not believe that any recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of operations and comprehensive income and statements of cash flows.

ITEM 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures.

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of October 31, 2023. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms as a result of the following material weaknesses:

Because of the company’s limited resources, there are limited controls over information processing.

There is an inadequate segregation of duties consistent with control objectives. Our Company’s management is limited in number, resulting in a situation where limitations on segregation of duties exist. In order to remedy this situation, we would need to hire additional staff to provide greater segregation of duties. Currently, it is not feasible to hire additional staff to obtain optimal segregation of duties. Management will reassess this matter in the following year to determine whether improvement in segregation of duty is feasible.

The Company does not have a sitting audit committee financial expert, and thus the Company lacks the board oversight role within the financial reporting process.

There is a lack of formal policies and procedures necessary to adequately review significant accounting transactions. The Company utilizes a third-party independent contractor for the preparation of its financial statements. Although the financial statements and footnotes are reviewed by our management, we do not have a formal policy to review significant accounting transactions and the accounting treatment of such transactions. The third-party independent contractor is not involved in the day to day operations of the Company and may not be provided information from management on a timely basis to allow for adequate reporting/consideration of certain transactions.

Our management will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and is committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow.

Changes in Internal Controls

There have been no changes in our internal controls over financial reporting identified in connection with the evaluation required by paragraph (d) of Securities Exchange Act Rule 13a-15 or Rule 15d-15 that occurred in the quarter ended October 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings
	None.

Item 1A	Risk Factors
	There have been no material changes in our risk factors from those previously disclosed in our annual report on Form 10-K for the year ended July 31, 2023.

Item 2	Unregistered Sale of Securities and Use of Proceeds
	(a) Unregistered sales of equity securities
	There were no unregistered sales of equity securities by the Company during the first quarter of fiscal year 2024, other than those reported in Current Reports on Form 8-K.

	(c) Purchases of equity securities
	The Company did not repurchase any of its equity securities that were registered under Section 12 of the Securities Exchange Act during the first quarter of fiscal year 2024.

Item 3.	Defaults Upon Senior Securities.
	None.

Item 4.	Mine Safety Disclosures.
	Not Applicable.

Item 5.	Other Information.
	None.

Item 6.	Exhibits

	31-a(1)	Rule 13a-14(a) Certification of CEO and CFO
	32-a(1)	Rule 13a-14(b) Certification of CEO and CFO
	101.INS	Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document
	101.SCH	Inline XBRL Schema
	101.CAL	Inline XBRL Calculation
	101.DEF	Inline XBRL Definition
	101.LAB	Inline XBRL Label
	101.PRE	Inline XBRL Presentation
	104	Cover page formatted as Inline XBRL and contained in Exhibit 101

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

	TIANCI INTERNATIONAL, INC.

Date: December 14, 2023	By: /s/ Shufang Gao Shufang Gao, Chief Executive, Financial and Accounting Officer

Exhibit 31.1

EXHIBIT 31-a(1): Rule 13a-14(a) Certification of CEO and CFO

I, Shufang Gao, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Tianci International, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: December 14, 2023	By: /s/ Shufang Gao
	Shufang Gao, Chief Executive and Financial Officer

Exhibit 32.1

EXHIBIT 32-a(1): Rule 13a-14(b) Certification of CEO and CFO

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Tianci International, Inc. (the “Company”) certifies that:

1. The Quarterly Report on Form 10-Q of the Company for the period ended October 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: December 14, 2023	By: /s/ Shufang Gao
	Shufang Gao, Chief Executive and Financial Officer

Cover - shares	3 Months Ended
Cover - shares	Oct. 31, 2023	Dec. 14, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Oct. 31, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--07-31
Entity File Number	333-184061
Entity Registrant Name	TIANCI INTERNATIONAL, INC.
Entity Central Index Key	0001557798
Entity Tax Identification Number	45-5440446
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	Unit B,10/F., Ritz Plaza
Entity Address, Address Line Two	No.122 Austin Road
Entity Address, Address Line Three	Tsim Sha Tsui
Entity Address, City or Town	Kowloon
Entity Address, Country	HK
Entity Address, Postal Zip Code	00000
City Area Code	852-
Local Phone Number	22510781
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,903,481

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)

Oct. 31, 2023

Jul. 31, 2023

Current assets:

Cash

$ 380,833

$ 256,342

Accounts receivable

195,629

Prepaid expense

1,000

1,750

Due from related party

54,167

54,134

Total current assets

631,629

312,226

Other assets:

Lease security deposit

1,656

1,542

Right-of-use asset

6,436

Total non-current assets

1,656

7,978

TOTAL ASSETS

633,285

320,204

Current liabilities:

Accounts payable

196,011

779

Income taxes payable

45,411

26,298

Due to related parties

276,077

Lease liability - current

4,368

Advances from customers

29,070

Accrued liabilities and other payables

400,530

260,176

Total current liabilities

918,029

596,768

Lease liability - noncurrent

2,068

Total liabilities

918,029

598,836

Commitments and contingencies

Stockholders’ equity (deficit):

Common stock, $0.0001 par value, 100,000,000 shares authorized; 5,903,481 shares issued and outstanding as of October 31, 2023 and July 31, 2023, respectively

^[1]

590

Additional paid-in capital

4,982

Accumulated deficit

(292,305)

(276,521)

Total stockholders' deficit attributable to TIANCI INTERNATIONAL, INC.

(286,725)

(270,941)

Non-controlling interest

1,981

(7,691)

Total stockholders’ (deficit)

(284,744)

(278,632)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

633,285

320,204

Series A Preferred Stock [Member]

Stockholders’ equity (deficit):

Preferred stock value

Undesignated Preferred Stock [Member]

Stockholders’ equity (deficit):

Preferred stock value

$ 0

[1]	Shares are presented on a retroactive basis to reflect the reorganization on March 3, 2023

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Oct. 31, 2023	Jul. 31, 2023
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	5,903,481	5,903,481
Common stock, shares outstanding	5,903,481	5,903,481
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	80,000	80,000
Preferred stock, shares issued	80,000	80,000
Preferred stock, shares outstanding	80,000	80,000
Undesignated Preferred Stock [Member]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
OPERATING REVENUES
Total Operating Revenues	$ 1,326,648	$ 124,370
COST OF REVENUES
Total Cost of Revenues	1,092,871	108,555
Gross profit	233,777	15,815
Operating expenses:
Selling and marketing	102,071	2,159
General and administrative	118,705	15,012
Total operating expenses	220,776	17,171
(Loss) income from operations	13,001	(1,356)
Other income (expense)	0	0
Income(loss) before provision for (benefit from) income taxes	13,001	(1,356)
Provision for (benefit from) income taxes	19,113	(224)
Net (loss)	(6,112)	(1,132)
Less: net (loss) income attributable to non-controlling interest	9,672	(113)
Net loss attributable to TIANCI INTERNATIONAL, INC.	(15,784)	(1,019)
Global Logistics Services [Member]
OPERATING REVENUES
Total Operating Revenues	1,181,720	0
COST OF REVENUES
Total Cost of Revenues	1,029,970	0
Other Revenue [Member]
OPERATING REVENUES
Total Operating Revenues	144,928	124,370
COST OF REVENUES
Total Cost of Revenues	$ 62,901	$ 108,555

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - $ / shares

3 Months Ended

Oct. 31, 2023

Oct. 31, 2022

Income Statement [Abstract]

Weighted average number of common shares, basic

^[1]

5,903,481

1,500,000

Weighted average number of common shares, diluted

^[1]

5,903,481

1,500,000

Loss per common share attributable to TIANCI INTERNATIONAL, INC, basic

^[1]

$ (0.00)

Loss per common share attributable to TIANCI INTERNATIONAL, INC, diluted

^[1]

$ (0.00)

[1]	Shares are presented on a retroactive basis to reflect the reorganization on March 3, 2023

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)

Preferred Stock [Member]

Common Stock [Member]

^[1]

Subscription Receivable [Member]

^[1]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

Noncontrolling Interest [Member]

Total

Beginning balance, value at Jul. 31, 2022

$ 0

^[1]

$ 150

$ (50,000)

$ 82,732

$ 64,689

$ 7,188

$ 104,759

Shares outstanding, beginning balance at Jul. 31, 2022

1,500,000

Payments of Shenzhen China rent by related parties (Note 3)

^[1]

3,519

Net loss

^[1]

(1,019)

(113)

(1,132)

Ending balance, value at Oct. 31, 2022

$ 0

^[1]

$ 150

(50,000)

86,251

63,670

7,075

107,146

Shares outstanding, ending balance at Oct. 31, 2022

1,500,000

Beginning balance, value at Jul. 31, 2023

$ 8

^[1]

$ 590

4,982

(276,521)

(7,691)

(278,632)

Shares outstanding, beginning balance at Jul. 31, 2023

80,000

5,903,481

Net loss

^[1]

(15,784)

9,672

(6,112)

Ending balance, value at Oct. 31, 2023

$ 8

^[1]

$ 590

$ 0

$ 4,982

$ (292,305)

$ 1,981

$ (284,744)

Shares outstanding, ending balance at Oct. 31, 2023

80,000

5,903,481

[1]	Shares are presented on a retroactive basis to reflect the reorganization on March 3, 2023

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Cash flows from operating activities:
Net (loss)	$ (6,112)	$ (1,132)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Deferred income tax benefit	0	(224)
Amortization of operating lease right-of-use asset	356	956
Change in operating assets and liabilities:
Accounts receivable	(195,629)	(111,749)
Prepaid expense	750	0
Lease security deposit	(114)	0
Due from related party	(33)	(52,550)
Advances from customers	(29,070)	0
Accounts payable	195,232	98,202
Income taxes payable	19,113	0
Operating lease liabilities	(356)	(956)
Accrued liabilities and other payables	140,354	0
Net cash (used in) provided by operating activities	124,491	(67,453)
Cash flows from financing activities:
Working capital advances from related party	0	62,775
Repayment of working capital advances from related party	0	(1,285)
Operating expenses directly paid by shareholders	0	23,977
Payments of Shenzhen China rent by related parties	0	3,519
Net cash (used in) provided by financing activities	0	88,986
Net increase in cash	124,491	21,533
Cash, beginning	256,342	21,237
Cash, ending	380,833	42,770
Cash paid during the period for:
Interest	0	0
Income taxes	0	0
Non-Cash Activities:
Initial recognition of right-of-use assets and lease liabilities	0	10,400
Early termination of right-of-use assets and lease liabilities	$ 6,080	$ 0

NATURE OF BUSINESS AND ORGANIZATION

3 Months Ended

Oct. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF BUSINESS AND ORGANIZATION

NOTE 1 – NATURE OF BUSINESS AND ORGANIZATION

On February 13, 2023, the Company incorporated a wholly owned subsidiary, Tianci Group Holding Limited, in the Republic of Seychelles.

Reorganization

Going Concern Uncertainty

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Oct. 31, 2023

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Results of the three months ended October 31, 2023 are not necessarily indicative of the results that may be expected for the year ending July 31, 2024 or any other future periods.

Principles of consolidation

Use of Estimates

Foreign currency translation and transactions

The Company uses the U.S. dollar as its reporting currency and functional currency. Transaction gains and losses are recognized in the consolidated statement of operations.

Cash and Cash Equivalents

Accounts receivable, net

Fair Value Measurements

·		Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

·		Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in inactive markets and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.

·		Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Revenue recognition

The Company records revenue net of sales taxes which are subsequently remitted to governmental authorities and are excluded from the transaction price.

The Company’s revenue recognition policies are as follows:

a. Global Logistics Services

The Company provides global logistics services, including ocean freight forwarding and related logistics solutions. As a non-asset-based carrier, the Company does not own transportation assets.

b. Electronic Device Hardware Components Products Sales

c. Software and Website Development Services

d. Technical Consulting and Training Services

e. Software Maintenance and Business Promotion Services

f. Business Consulting Services

Cost of revenues

For global logistics services, cost of revenue consists primarily of cargo space charged by direct ocean carriers, freight forwarders and ancillary logistics services fees.

For hardware products sales, the cost of revenue consists primarily of the costs of hardware products sold.

For software, consulting, services-based revenue, the cost of revenue consists primarily of costs paid to outsourced service providers and compensation expenses paid the Company’s service vendor.

Advertising costs

Operating leases

Income taxes

The Hong Kong tax returns filed for 2016 and subsequent years are subject to examination by the applicable tax authorities.

The US tax returns filed for 2019 and subsequent years are subject to examination by the applicable tax authorities.

Earnings (loss) per share

Noncontrolling Interests

Related parties

Recently issued accounting pronouncements

RELATED PARTIES BALANCES AND TRANSACTIONS

3 Months Ended

Oct. 31, 2023

NOTE 3 – RELATED PARTIES BALANCES AND TRANSACTIONS

Due from related party consists of:

Due to related parties consist of:

Schedule of due to related parties
		Transaction	October 31,		July 31,
Name	Relationship	Nature	2023		2023
Zhigang Pei	Chairman of the Board	Working capital advances and operating expenses paid on behalf of the Company	$	220,909	$	220,909
RQS Capital	68% shareholder	Company cash collection due to RQS Capital		2,132		2,132
Ying Deng	RQS Capital 30% owner and Roshing’s 10% owner	Working capital advances and operating expense paid on behalf of the Company		53,036		53,036

TOTAL			$	276,077	$	276,077

These liabilities are unsecured, non-interest bearing, and due on demand.

Employment agreements with officers and director retainer agreements

Office space sharing agreement with related parties

STOCKHOLDERS EQUITY

3 Months Ended

Oct. 31, 2023

Equity [Abstract]

STOCKHOLDERS EQUITY

NOTE 4 – STOCKHOLDERS EQUITY

The following table sets forth information, as of October 31, 2023, regarding the classes of capital stock that are authorized by the Articles of Incorporation of Tianci International, Inc.

Schedule of capital stock authorized
Class	Shares Authorized		Shares Outstanding
Common Stock, $.0001 par value		100,000,000		5,903,481
Series A Preferred Stock, $.0001 par value		80,000		80,000
Undesignated Preferred Stock, $.0001 par value		20,000,000		0

Series A Preferred Stock

Undesignated Preferred Stock

Issuances of Preferred Stock and Common Stock

On January 27, 2023, Tianci sold 80,000 shares of its Series A Preferred Stock to RQS Capital for $24,000 cash.

On March 1, 2023, Tianci sold a total of 1,253,333 shares of its common stock to 13 non-US persons at a price of $0.30 per share or $376,000 total.

On March 6, 2023, Tianci issued 1,500,000 shares of its common stock to RQS Capital pursuant to the Share Exchange Agreement dated March 3, 2023 (see Note 1 above).

INCOME TAXES

3 Months Ended

Oct. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 5 – INCOME TAXES

Income Taxes

Seychelles

Hong Kong

Significant components of the provision for income taxes are as follows:


	For the three months ended
	October 31, 2023		October 31, 2022
	(Unaudited)		(Unaudited)
Current Hong Kong	$	19,113	$	–
Deferred Hong Kong		–		(224	)
Provision (benefit) for income taxes	$	19,113	$	(224	)

The following table reconciles the Hong Kong statutory rates to the Company’s Hong Kong effective tax rate:


	For the three months ended October 31, 2023		For the three months ended October 31, 2022
	(Unaudited)		(Unaudited)
Hong Kong statutory income tax rate		16.5%		16.5%
Effective tax rate		16.5%		16.5%

Uncertain tax positions

CONCENTRATION OF RISK

3 Months Ended

Oct. 31, 2023

Risks and Uncertainties [Abstract]

CONCENTRATION OF RISK

NOTE 6 — CONCENTRATION OF RISK

Credit risk

Customer concentration risk

For the three months ended October 31, 2023, two customers accounted for 61.2% and 13.1% of the Company’s total revenues.

For the three months ended October 31, 2022, two customers accounted for 48.2% and 27.5% of the Company’s total revenues.

Vendor concentration risk

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Oct. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 7— COMMITMENTS AND CONTINGENCIES

Lease commitments

In September 2023, the Company entered into a one-year short term lease with a monthly lease payment of approximately $828 (HKD 6500).

Rent expenses were $3,184 and $4,599 for the three months ended October 31, 2023 and 2022, respectively.

Contingencies

ENTERPRISE-WIDE DISCLOSURE

3 Months Ended

Oct. 31, 2023

Segment Reporting [Abstract]

ENTERPRISE-WIDE DISCLOSURE

NOTE 8 — ENTERPRISE-WIDE DISCLOSURE

Disaggregated information of revenues by business lines are as follows:


	For the three months ended October 31,
	2023		2022
	(Unaudited)		(Unaudited)
Electronic Device Hardware Components Sales	$	59,902	$	104,194
Software and Website Development Services		19,230		–
Technical Consulting and Training Services		–		6,426
Software Maintenance and Business Promotion Services		15,263		13,750
Business Consulting Services		50,533		–
Global Logistics Services		1,181,720		–
Total revenues	$	1,326,648	$	124,370

Disaggregated information of revenues by regions are as follows:


	For the three months ended October 31,
	2023		2022
	(Unaudited)		(Unaudited)
Hong Kong	$	1,051,017	$	118,120
Vietnam		173,531		–
Japan		100,850		–
Singapore		1,250		6,250
Total revenues	$	1,326,648	$	124,370

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Unaudited)

3 Months Ended

Oct. 31, 2023

Condensed Financial Information Disclosure [Abstract]

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Unaudited)

NOTE 9 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Unaudited)

PARENT COMPANY BALANCE SHEET

Schedule of balance sheets
	October 31,
	2023
	(Unaudited)
ASSETS
Cash	$	23,822
Prepaid expense		1,000
Receivable from subsidiaries		29,487
Investment in subsidiaries		182,937
Total Assets	$	237,246


LIABILITIES
Accounts payable and accrued liabilities	$	300,930
Due to related parties		223,041
Total Liabilities		523,971

Stockholders’ equity
Series A Preferred stock, $0.0001 par value; 80,000 shares authorized; 80,000 shares issued and outstanding as of October 31, 2023		8
Undesignated preferred stock, $0.0001 par value; 20,000,000 shares authorized; no shares issued and outstanding		–
Common stock, $0.0001 par value, 100,000,000 shares authorized; 5,903,481 shares issued and outstanding as of October 31, 2023		590
Additional paid-in capital		4,982
Accumulated deficit		(292,305	)
Total stockholders’ equity		(286,725	)

Total Liabilities and Stockholders’ Equity	$	237,246

PARENT COMPANY STATEMENT OF OPERATIONS

Schedule of statements of operations
	For the three months ended October 31,
	2023
	(Unaudited)
EXPENSES:
General and administrative	$	(102,833	)

OTHER INCOME:
Income from investment in subsidiaries		87,049

Net Loss	$	(15,784	)

PARENT COMPANY STATEMENT OF CASH FLOWS

Schedule of statements of cash flows
	For the three months ended October 31,
	2023
	(Unaudited)
Cash flows from operating activities:
Net loss	$	(15,784	)
Adjustments to reconcile net loss to net cash used in operating activities:
Share of income from investment in subsidiaries		(87,049	)
Change in operating assets and liabilities:
Prepaid expense		750
Accounts payable and accrued liabilities		59,352
Net cash (used in) operating activities		(42,731	)

Net decrease in cash and cash equivalents		(42,731	)
Cash and cash equivalents at July 31, 2023		66,553
Cash and cash equivalents at October 31, 2023	$	23,822

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Oct. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Results of the three months ended October 31, 2023 are not necessarily indicative of the results that may be expected for the year ending July 31, 2024 or any other future periods.

Principles of consolidation

Principles of consolidation

Use of Estimates

Use of Estimates

Foreign currency translation and transactions

Foreign currency translation and transactions

The Company uses the U.S. dollar as its reporting currency and functional currency. Transaction gains and losses are recognized in the consolidated statement of operations.

Cash and Cash Equivalents

Cash and Cash Equivalents

Accounts receivable, net

Accounts receivable, net

Fair Value Measurements

Fair Value Measurements

·		Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

·		Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in inactive markets and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.

·		Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Revenue recognition

Revenue recognition

The Company records revenue net of sales taxes which are subsequently remitted to governmental authorities and are excluded from the transaction price.

The Company’s revenue recognition policies are as follows:

a. Global Logistics Services

The Company provides global logistics services, including ocean freight forwarding and related logistics solutions. As a non-asset-based carrier, the Company does not own transportation assets.

b. Electronic Device Hardware Components Products Sales

c. Software and Website Development Services

d. Technical Consulting and Training Services

e. Software Maintenance and Business Promotion Services

f. Business Consulting Services

Cost of revenues

Cost of revenues

For global logistics services, cost of revenue consists primarily of cargo space charged by direct ocean carriers, freight forwarders and ancillary logistics services fees.

For hardware products sales, the cost of revenue consists primarily of the costs of hardware products sold.

For software, consulting, services-based revenue, the cost of revenue consists primarily of costs paid to outsourced service providers and compensation expenses paid the Company’s service vendor.

Advertising costs

Advertising costs

Operating leases

Operating leases

Income taxes

Income taxes

The Hong Kong tax returns filed for 2016 and subsequent years are subject to examination by the applicable tax authorities.

The US tax returns filed for 2019 and subsequent years are subject to examination by the applicable tax authorities.

Earnings (loss) per share

Earnings (loss) per share

Noncontrolling Interests

Noncontrolling Interests

Related parties

Recently issued accounting pronouncements

RELATED PARTIES BALANCES AND TRANSACTIONS (Tables)

3 Months Ended

Oct. 31, 2023

Schedule of due to related parties

Schedule of due to related parties
		Transaction	October 31,		July 31,
Name	Relationship	Nature	2023		2023
Zhigang Pei	Chairman of the Board	Working capital advances and operating expenses paid on behalf of the Company	$	220,909	$	220,909
RQS Capital	68% shareholder	Company cash collection due to RQS Capital		2,132		2,132
Ying Deng	RQS Capital 30% owner and Roshing’s 10% owner	Working capital advances and operating expense paid on behalf of the Company		53,036		53,036

TOTAL			$	276,077	$	276,077

STOCKHOLDERS EQUITY (Tables)

3 Months Ended

Oct. 31, 2023

Equity [Abstract]

Schedule of capital stock authorized

Schedule of capital stock authorized
Class	Shares Authorized		Shares Outstanding
Common Stock, $.0001 par value		100,000,000		5,903,481
Series A Preferred Stock, $.0001 par value		80,000		80,000
Undesignated Preferred Stock, $.0001 par value		20,000,000		0

INCOME TAXES (Tables)

3 Months Ended

Oct. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense


	For the three months ended
	October 31, 2023		October 31, 2022
	(Unaudited)		(Unaudited)
Current Hong Kong	$	19,113	$	–
Deferred Hong Kong		–		(224	)
Provision (benefit) for income taxes	$	19,113	$	(224	)

Schedule of effective income tax reconciliation


	For the three months ended October 31, 2023		For the three months ended October 31, 2022
	(Unaudited)		(Unaudited)
Hong Kong statutory income tax rate		16.5%		16.5%
Effective tax rate		16.5%		16.5%

ENTERPRISE-WIDE DISCLOSURE (Tables)

3 Months Ended

Oct. 31, 2023

Segment Reporting [Abstract]

Schedule of information of revenues by business


	For the three months ended October 31,
	2023		2022
	(Unaudited)		(Unaudited)
Electronic Device Hardware Components Sales	$	59,902	$	104,194
Software and Website Development Services		19,230		–
Technical Consulting and Training Services		–		6,426
Software Maintenance and Business Promotion Services		15,263		13,750
Business Consulting Services		50,533		–
Global Logistics Services		1,181,720		–
Total revenues	$	1,326,648	$	124,370

Schedule of information of revenues by regions


	For the three months ended October 31,
	2023		2022
	(Unaudited)		(Unaudited)
Hong Kong	$	1,051,017	$	118,120
Vietnam		173,531		–
Japan		100,850		–
Singapore		1,250		6,250
Total revenues	$	1,326,648	$	124,370

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Unaudited) (Tables)

3 Months Ended

Oct. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Schedule of balance sheets

Schedule of balance sheets
	October 31,
	2023
	(Unaudited)
ASSETS
Cash	$	23,822
Prepaid expense		1,000
Receivable from subsidiaries		29,487
Investment in subsidiaries		182,937
Total Assets	$	237,246


LIABILITIES
Accounts payable and accrued liabilities	$	300,930
Due to related parties		223,041
Total Liabilities		523,971

Stockholders’ equity
Series A Preferred stock, $0.0001 par value; 80,000 shares authorized; 80,000 shares issued and outstanding as of October 31, 2023		8
Undesignated preferred stock, $0.0001 par value; 20,000,000 shares authorized; no shares issued and outstanding		–
Common stock, $0.0001 par value, 100,000,000 shares authorized; 5,903,481 shares issued and outstanding as of October 31, 2023		590
Additional paid-in capital		4,982
Accumulated deficit		(292,305	)
Total stockholders’ equity		(286,725	)

Total Liabilities and Stockholders’ Equity	$	237,246

Schedule of statements of operations

Schedule of statements of operations
	For the three months ended October 31,
	2023
	(Unaudited)
EXPENSES:
General and administrative	$	(102,833	)

OTHER INCOME:
Income from investment in subsidiaries		87,049

Net Loss	$	(15,784	)

Schedule of statements of cash flows

Schedule of statements of cash flows
	For the three months ended October 31,
	2023
	(Unaudited)
Cash flows from operating activities:
Net loss	$	(15,784	)
Adjustments to reconcile net loss to net cash used in operating activities:
Share of income from investment in subsidiaries		(87,049	)
Change in operating assets and liabilities:
Prepaid expense		750
Accounts payable and accrued liabilities		59,352
Net cash (used in) operating activities		(42,731	)

Net decrease in cash and cash equivalents		(42,731	)
Cash and cash equivalents at July 31, 2023		66,553
Cash and cash equivalents at October 31, 2023	$	23,822

NATURE OF BUSINESS AND ORGANIZATION (Details Narrative) - USD ($)		3 Months Ended
	Mar. 06, 2023	Oct. 31, 2023	Oct. 31, 2022	Jul. 31, 2023
Plan of reorganization	the issued and outstanding capital stock of RQS United to the Company, and the Company issued to RQS Capital 1,500,000 shares of our common stock and paid a cash price of $350,000 (the “Share Exchange”). Pursuant to the Exchange Agreement, the Company also issued a total of 700,000 shares of our common stock to nine employees or affiliates of Roshing to induce continued services to Roshing.
Cash		$ 380,833		$ 256,342
Working capital		286,400
Revenues		1,326,648	$ 124,370
Net losses		$ 6,112	$ 1,132
R Q S [Member]
Ownership percentage		90.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Sep. 30, 2023	Aug. 31, 2023	Jul. 31, 2023	Aug. 02, 2022
Allowance for doubtful accounts	$ 0				$ 0
Advertising costs	0	$ 192
Right of use asset						$ 8,704
Borrowing rate						5.00%
Right of use asset	$ 0		$ 6,080		$ 6,436
Operating lease liabilities				$ 6,080
R Q S [Member]
Ownership interest	10.00%
Convertible Series A Preferred Stock [Member]
Antidilutive shares	8,000,000	0
HONG KONG
Right of use asset			$ 6,080
Operating lease liabilities				$ 6,080

RELATED PARTIES BALANCES AND TRANSACTIONS (Details) - USD ($)	Oct. 31, 2023	Jul. 31, 2023
Related Party Transaction [Line Items]
Due to related parties	$ 276,077	$ 276,077
Zhigang Pei [Member]
Related Party Transaction [Line Items]
Due to related parties	220,909	220,909
R Q S Capital [Member]
Related Party Transaction [Line Items]
Due to related parties	2,132	2,132
Ying Deng [Member]
Related Party Transaction [Line Items]
Due to related parties	$ 53,036	$ 53,036

RELATED PARTIES BALANCES AND TRANSACTIONS (Details Narrative) - USD ($)		3 Months Ended
	Aug. 28, 2021	Oct. 31, 2023	Oct. 31, 2022	Jul. 31, 2023
Related Party Transaction [Line Items]
Due from related party		$ 54,167		$ 54,134
Compensation expenses		60,000
General and administrative expenses		0	$ 3,519
Additional paid-in capital		0	$ 3,519
R Q S Capital [Member]
Related Party Transaction [Line Items]
Due from related party		$ 54,167
Shufang Gao [Member]
Related Party Transaction [Line Items]
Office space sharing related parties percentage	60.00%
Ying Deng [Member]
Related Party Transaction [Line Items]
Office space sharing related parties percentage	30.00%

STOCKHOLDERS EQUITY (Details) - shares	Oct. 31, 2023	Jul. 31, 2023
Class of Stock [Line Items]
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	5,903,481	5,903,481
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	80,000	80,000
Preferred stock, shares outstanding	80,000	80,000
Undesignated Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares outstanding	0	0

STOCKHOLDERS EQUITY (Details Narrative) - USD ($)			3 Months Ended		12 Months Ended
STOCKHOLDERS EQUITY (Details Narrative) - USD ($)	Mar. 01, 2023	Jan. 27, 2023	Oct. 31, 2023	Oct. 31, 2022	Jul. 31, 2023	Mar. 06, 2023
Class of Stock [Line Items]
Capital stock authorized			120,080,000
Common stock, shares authorized			100,000,000		100,000,000
Common stock, par value			$ 0.0001		$ 0.0001
Shares issued						1,500,000
Estimated fair value					$ 210,000
Number of share issued					700,000
Cost of revenues			$ 1,092,871	$ 108,555
Selling and marketing					$ 36,000
General and administrative					30,000
Services [Member]
Class of Stock [Line Items]
Cost of revenues					$ 144,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized			80,000		80,000
Preferred stock, par value			$ 0.0001		$ 0.0001
Number of shares sold		80,000
Number of shares sold, value		$ 24,000
Undesignated Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized			20,000,000		20,000,000
Preferred stock, par value			$ 0.0001		$ 0.0001
Common Stock [Member]
Class of Stock [Line Items]
Number of shares sold	1,253,333
Number of shares sold, value	$ 376,000
Sale of stock per share	$ 0.30
Shares issued						700,000

INCOME TAXES (Details - Schedule of components of income tax expense) - USD ($)	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Income Tax Disclosure [Abstract]
Current Hong Kong	$ 19,113	$ 0
Deferred Hong Kong	0	(224)
Provision (benefit) for income taxes	$ 19,113	$ (224)

INCOME TAXES (Details - Schedule of effective income tax reconciliation)	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Income Tax Disclosure [Abstract]
Hong Kong statutory income tax rate	16.50%	16.50%
Effective tax rate	16.50%	16.50%

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended
INCOME TAXES (Details Narrative) - USD ($)	Oct. 31, 2023	Oct. 31, 2022
Income tax rate	16.50%	16.50%
Income tax expenses	$ 19,113	$ (224)
(Loss) income before provision for (benefit from) income taxes	13,001	(1,356)
Net operating loss carry forward	$ 1,070,000
HONG KONG
Income tax rate	16.50%
Income tax expenses	$ 19,113	$ 224

CONCENTRATION OF RISK (Details Narrative)	3 Months Ended		12 Months Ended
CONCENTRATION OF RISK (Details Narrative)	Oct. 31, 2023 USD ($)	Oct. 31, 2022	Jul. 31, 2023	Oct. 31, 2023 HKD ($)
Concentration Risk [Line Items]
Cash insured by the FDIC	$ 250,000
Compensation amount	$ 64,000			$ 500,000
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| Customer One [Member]
Concentration Risk [Line Items]
Concentration risk percentage	61.20%	48.20%
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| Customer Two [Member]
Concentration Risk [Line Items]
Concentration risk percentage	13.10%	27.50%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer One [Member]
Concentration Risk [Line Items]
Concentration risk percentage	44.80%		10.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer Two [Member]
Concentration Risk [Line Items]
Concentration risk percentage	23.90%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer Three [Member]
Concentration Risk [Line Items]
Concentration risk percentage	15.80%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer Four [Member]
Concentration Risk [Line Items]
Concentration risk percentage	12.80%
Total Purchases [Member] \| Customer Concentration Risk [Member] \| Vendors One [Member]
Concentration Risk [Line Items]
Concentration risk percentage	65.90%	45.80%
Total Purchases [Member] \| Customer Concentration Risk [Member] \| Vendors Two [Member]
Concentration Risk [Line Items]
Concentration risk percentage	13.70%	25.50%
Total Purchases [Member] \| Customer Concentration Risk [Member] \| Vendors Three [Member]
Concentration Risk [Line Items]
Concentration risk percentage		19.60%
Accounts Payable [Member] \| Customer Concentration Risk [Member] \| Vendors One [Member]
Concentration Risk [Line Items]
Concentration risk percentage	31.50%		10.00%
Accounts Payable [Member] \| Customer Concentration Risk [Member] \| Vendors Two [Member]
Concentration Risk [Line Items]
Concentration risk percentage	29.40%
Accounts Payable [Member] \| Customer Concentration Risk [Member] \| Vendors Three [Member]
Concentration Risk [Line Items]
Concentration risk percentage	22.70%
Accounts Payable [Member] \| Customer Concentration Risk [Member] \| Vendors Four [Member]
Concentration Risk [Line Items]
Concentration risk percentage	16.30%
HONG KONG
Concentration Risk [Line Items]
Cash balance	$ 356,990
Credit risk amount	$ 293,000

COMMITMENTS AND CONTINGENCIES (Details Narrative)					1 Months Ended		3 Months Ended
COMMITMENTS AND CONTINGENCIES (Details Narrative)	Jan. 13, 2023 USD ($)	Jan. 13, 2023 HKD ($)	Jan. 01, 2021 USD ($)	Jan. 01, 2021 HKD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 HKD ($)	Oct. 31, 2023 USD ($)	Oct. 31, 2022 USD ($)	Aug. 31, 2023 USD ($)	Jul. 31, 2023 USD ($)	Aug. 02, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Rent expenses	$ 382	$ 3,000	$ 360	$ 2,800			$ 3,184	$ 4,599
Right of use asset											$ 8,704
Incremental borrowing rate											5.00%
Derecognition right of use asset					$ 6,080		$ 0			$ 6,436
Operating lease liabilities									$ 6,080
Monthly lease payment					$ 828	$ 6,500

ENTERPRISE WIDE DISCLOSURE (Details - Revenues by business) - USD ($)	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Revenue from External Customer [Line Items]
Revenues	$ 1,326,648	$ 124,370
Electronic Device Hardware Components Sales [Member]
Revenue from External Customer [Line Items]
Revenues	59,902	104,194
Software And Website Development Services [Member]
Revenue from External Customer [Line Items]
Revenues	19,230	0
Technical Consulting And Training Services [Member]
Revenue from External Customer [Line Items]
Revenues	0	6,426
Software Maintenance And Business Promotion Services [Member]
Revenue from External Customer [Line Items]
Revenues	15,263	13,750
Business Consulting Services [Member]
Revenue from External Customer [Line Items]
Revenues	50,533	0
Global Logistics Services [Member]
Revenue from External Customer [Line Items]
Revenues	$ 1,181,720	$ 0

ENTERPRISE WIDE DISCLOSURE (Details - Revenue by regions) - USD ($)	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 1,326,648	$ 124,370
HONG KONG
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	1,051,017	118,120
VIET NAM
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	173,531	0
JAPAN
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	100,850	6,250
SINGAPORE
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 1,250	$ 0

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details - Balance sheets) - USD ($)

Oct. 31, 2023

Jul. 31, 2023

ASSETS

Cash

$ 380,833

$ 256,342

Total Assets

633,285

320,204

LIABILITIES

Total Liabilities

918,029

598,836

Stockholders’ equity

Common stock, $0.0001 par value, 100,000,000 shares authorized; 5,903,481 shares issued and outstanding as of October 31, 2023

^[1]

$ 590

Common stock, par value

$ 0.0001

Common stock, shares authorized

100,000,000

Common stock, shares issued

5,903,481

Common stock, shares outstanding

5,903,481

Additional paid-in capital

$ 4,982

Accumulated deficit

(292,305)

(276,521)

Total stockholders’ equity

(286,725)

(270,941)

Total Liabilities and Stockholders’ Equity

$ 633,285

$ 320,204

Series A Preferred Stock [Member]

Stockholders’ equity

Preferred stock, par value

$ 0.0001

Preferred stock, shares authorized

80,000

Preferred stock, shares issued

80,000

Preferred stock, shares outstanding

80,000

Preferred stock value

$ 8

Undesignated Preferred Stock [Member]

Stockholders’ equity

Preferred stock, par value

$ 0.0001

Preferred stock, shares authorized

20,000,000

Preferred stock, shares issued

Preferred stock, shares outstanding

Preferred stock value

$ 0

Consolidated Entities [Member]

ASSETS

Cash

23,822

Prepaid expense

1,000

Receivable from subsidiaries

29,487

Investment in subsidiaries

182,937

Total Assets

237,246

LIABILITIES

Accounts payable and accrued liabilities

300,930

Due to related parties

223,041

Total Liabilities

523,971

Stockholders’ equity

Common stock, $0.0001 par value, 100,000,000 shares authorized; 5,903,481 shares issued and outstanding as of October 31, 2023

590

Additional paid-in capital

4,982

Accumulated deficit

(292,305)

Total stockholders’ equity

(286,725)

Total Liabilities and Stockholders’ Equity

$ 237,246

[1]	Shares are presented on a retroactive basis to reflect the reorganization on March 3, 2023

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details - Statements of Operations) - USD ($)	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
EXPENSES:
General and administrative	$ 118,705	$ 15,012
OTHER INCOME:
Net Loss	(15,784)	$ (1,019)
Consolidated Entities [Member]
EXPENSES:
General and administrative	(102,833)
OTHER INCOME:
Income from investment in subsidiaries	87,049
Net Loss	$ (15,784)

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details - Statements of cash flows) - USD ($)	3 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Cash flows from operating activities:
Net loss	$ (15,784)	$ (1,019)
Change in operating assets and liabilities:
Prepaid expense	750	0
Net cash (used in) operating activities	124,491	(67,453)
Net decrease in cash and cash equivalents	124,491	$ 21,533
Consolidated Entities [Member]
Cash flows from operating activities:
Net loss	(15,784)
Adjustments to reconcile net loss to net cash used in operating activities:
Share of income from investment in subsidiaries	(87,049)
Change in operating assets and liabilities:
Prepaid expense	750
Accounts payable and accrued liabilities	59,352
Net cash (used in) operating activities	(42,731)
Net decrease in cash and cash equivalents	(42,731)
Cash and cash equivalents at July 31, 2023	66,553
Cash and cash equivalents at October 31, 2023	$ 23,822