Tianci International Posts $668K Net Loss as Cash Burn Accelerates in H1 2026

Tianci International reported a net loss of $667,996 for the six months ending January 31, 2026, compared to a loss of $206,407 in the same period a year earlier. The company, which is incorporated in Nevada, saw its operating loss widen to $685,931 from $223,419 year-over-year. Read more earnings reports.

Revenue for the six-month period climbed 52% to $7.70 million from $5.06 million in the prior-year period. The company generated $5.75 million in product revenue and $1.82 million in what appears to be a new revenue stream not present in the prior year. An additional $134,350 came from other revenue sources, down from $230,367 a year earlier.

Cost of revenue rose to $7.23 million from $4.75 million, leaving gross profit at $474,561 compared to $308,409 in the prior-year period. The gross margin contracted as costs outpaced revenue growth.

Operating expenses more than doubled to $1.16 million from $531,828, driven largely by increased labor costs. The company reported $168,600 in labor and related expenses for the six months, up from $112,800 a year earlier.

Cash and restricted cash dropped sharply to $723,101 as of January 31, 2026, down from $2.41 million at the end of fiscal 2025 and $180,554 a year earlier. Cash used in operations totaled $1.68 million for the six-month period, compared to $158,450 in the prior year. The company reported no cash from financing activities during the current period.

Accounts receivable stood at $561,753 at period end, up from zero six months earlier. Inventory more than doubled to $516,536 from $215,346. Total assets declined to $2.69 million from $3.15 million at July 31, 2025.

The company's stockholders' equity fell to $2.60 million from $2.98 million six months earlier. Retained deficit widened to $3.53 million from $2.86 million. Common shares outstanding increased to 25.33 million from 16.53 million during the six-month period.

For the three months ending January 31, 2026, the company posted a net loss of $399,898 compared to a loss of $113,351 in the prior-year quarter. Revenue for the quarter was $3.88 million, up from $2.08 million a year earlier.

Basic and diluted loss per share for the six-month period was $0.03, compared to $0.01 in the prior year, based on weighted average shares outstanding of 20.41 million and 14.78 million, respectively.