Tianci International Inc (CIIT) operates as a shell company with minimal ongoing operations and a stated objective to identify and merge with an operating company. In QQ3 2024, CIIT reported revenue of USD 1.94 million, gross profit of USD 244.7 thousand and a gross margin of 12.6%, but net loss of USD 49.97 thousand and negative accumulated equity of USD 233.7 thousand. Operating income was USD 18.3 thousand with EBITDA of USD 18.3 thousand, yet total other income (net) was negative USD 47.0 thousand, driving a negative pre-tax result and tax expense of USD 10.1 thousand. The quarterly cash flow from operations was modest at USD 11.7 thousand, while financing activities produced a substantial outflow of USD 165.0 thousand and equity issuances of USD 80.0 thousand, leaving the company with a net cash decrease of USD 153.3 thousand for the period and a cash balance of USD 646.0 thousand at period end.
From a liquidity perspective, TI–CIIT maintains a solid current ratio (3.02x) and cash ratio (2.67x), supported by a relatively low short-term debt load (USD 4.3 million) and total debt of USD 302.4 thousand against USD 443.7 thousand in total assets. However, the balance sheet shows negative stockholders’ equity (-USD 233.7 thousand), underscoring the structural balance sheet weakness typical of a dormant shell awaiting a transformation through a merger.
Key takeaway: The quarter reflects a low-risk liquidity cushion and the potential to fund ongoing operations via equity financing, but meaningful earnings upside hinges entirely on identifying and completing a credible merger with an operating business. Absent a compelling acquisition, investors should treat CIIT as a high-risk, optionality play with limited near-term profitability and significant reliance on external financing and deal-flow.