What changed in Tianci International, Inc.'s 10-K — 2023 vs 2024

Overview The Company, through Roshing, provides global logistics services, encompassing booking and transportation arrangement and related logistics solutions. Roshing’s customized logistics solutions are tailored to meet the diverse needs of its customers. As a logistics shipping operator, Roshing focuses on ocean freight forwarding services, including container shipping and bulk goods shipping service.

For the container shipping service, Roshing charters cargo space from shipping suppliers (such as shipowners, ship carrier or non-vessel operating common carriers) and then sub-charters that cargo space to its customers (cargo owners or cargo agents).

For the bulk goods shipping service, Roshing issues fixture notes to customers, and then arranges the booking of ships, and signs chartering contracts with suppliers (such as shipowners).

Roshing also tailors the selection of transport options, and arranges to transport the goods from the port of loading to the port of destination, so as to complete the performance of the contract. Roshing currently does not own or operate any transportation assets.

By leveraging our senior management’s expertise in the global logistics industry and adopting an asset-light strategy at the early stage, Roshing has seen a significant growth in logistics revenue during the year ended July 31, 2024. Shufang Gao, our CEO previously worked for a globally renowned shipping conglomerate, with over 20 years of management experience.

His expertise spans shipping operation management, and logistics transportation. Leveraging this experience, he has provided the Company with the managerial framework to expand its global logistics business, as well as access to relevant customer and supplier resources in the shipping industry.

Roshing’s business is primarily carried out in Hong Kong and other locations in the Asia-Pacific region, mainly in Japan, South Korea, Vietnam. Roshing’s logistics services also include the shipment of goods to African countries. Roshing also generates revenue from the sale of electronic parts, and certain business and technical consulting services, independent from its global logistics business.

This additional line of business produced 3.4% of our revenues for the year ended July 31, 2024. 1 Our Mission Creating Value As a global logistics enterprise, our primary mission is to provide customers with efficient, reliable, and safe shipping services that create value.

Promoting Global Trade & Connectivity As an important component of global trade, global logistics enterprises also have a mission to promote the development and connectivity of global trade, and promote the prosperity and development of the global economy, by facilitating cross-border operations for businesses. We are committed to cultivating a robust global network, both online and offline.

The online part involves connecting with customers and suppliers through social media platforms. The offline part includes acquiring potential customer through exhibitions, recommendations, and other direct interactions. Undertaking Social Responsibility We believe that shipping companies also need to be socially responsible, pay attention to environmental protection, social welfare, promote sustainable development and contribute to the prosperity and development of society.

We strive to optimize shipping routes and transportation plans to reduce energy consumption and emissions. Moreover, we will encourage our supply chain partners to adopt greener transportation and packaging methods, contributing to the sustainability of the entire industry.

We also seek to actively participate in environmental projects and initiatives and collaborate with government and non-governmental organizations to focus on environmental protection. Our Services Our operations conducted through Roshing include providing the following services to our customers. 1.

Global Logistics Services Our global logistics services provided through Roshing accounted for 96.6% of our revenue for the year ended July 31, 2024. These services encompass shipping operations and related logistics solutions. Roshing customizes its logistics solutions to meet the diverse needs of its customers, including the optimization of shipping routes and the utilization of vessels with different tonnages.

As a global logistics enterprise, depending on the type of cargo, Roshing provides container shipping and bulk goods shipping services. Container shipping is generally for small merchandise which can be palletized and fit into a container. Bulk goods shipping is generally for bulk commodities, such as lumber, steel, construction materials, chemicals, and agricultural products. a.

Container shipping Roshing’s container shipping service includes: i. Customer Service and Support · Customer Consultation: Implementing strategies to identify, assess, and mitigate risks associated with cargo transportation. · Customized Solutions: Implementing strategies to identify, assess, and mitigate risks associated with cargo transportation. 2 ii.

Contract and Quotation Management · Transport Contracts: Implementing strategies to identify, assess, and mitigate risks associated with cargo transportation. · Quotation Services: Providing quotes to customers based on the number of containers, size of containers, routes, shipping dates and various other factors. iii.

Financial Management · Cost Management: Managing and optimizing the costs associated with cargo transportation. · Billing and Collection: Handling the billing process and ensuring the timely collection of payments. vi. Risk Management Implementing strategies to identify, assess, and mitigate risks associated with cargo transportation. b. Bulk goods shipping Roshing’s bulk goods shipping service includes: i.

Customer Service and Communication Providing ongoing support and clear communication to customers throughout the shipping process, addressing any queries or issues promptly. ii.

Fixture Note and Quotation Management · Fixture Note: Managing and maintaining transport contracts to ensure clear and effective agreements for bulk shipping. · Quotation Services: Offering detailed quotations for bulk shipping services, helping customers understand and proposing plans for budget control. iii. Chartering: Arranging the chartering of bulk cargo vessels including negotiating terms and conditions. iv.

Ship Operations Management Overseeing and supervising the day-to-day operations of the ships involved in bulk cargo transportation. v. Cooperation and Coordination Facilitating collaboration and coordination between various stakeholders involved in the shipping process, such as port authorities, cargo handlers, and other service providers. 3 vii.

Financial Management · Cost Management: Monitoring and optimizing the costs associated with bulk cargo transportation to ensure efficiency and cost-effectiveness. · Billing and Collection: Handling the billing processes and ensuring timely collection of payments. Our General Logistics Service Process Roshing has a long-term and close cooperation with ocean shipping suppliers, including the signing of charter contracts, and service contracts.

When a customer makes an inquiry to Roshing, we are usually able to offer competitive quotes and customize shipping solutions quickly. Roshing begins by thoroughly evaluating the customer’s logistics needs, including the type of goods being shipped, the destination, and the required transportation time. Based on this information, Roshing designs an optimal transportation plan tailored to the customer’s specific requirements.

This plan includes selecting the most efficient shipping routes, determining the appropriate container or bulk cargo vessel size and type, and considering any special handling or regulatory compliance requirements. Roshing then enters into a written contract with the customer for ocean shipping that can best meet the customer’s needs.

This includes selecting a shipment method that aligns with the customer’s timeline and cargo specifications. Roshing works with each customer to develop a cost-effective plan and service terms to meet the client’s specific needs. This involves detailed discussions to ensure that both parties have a clear understanding of expectations, costs, and responsibilities.

Roshing will assign cargo space from the appropriate container or bulk cargo vessel based on the volume and weight of the shipment, minimize shipping costs, select the shortest route to save on freight, and choose the port closest to the customer’s destination.

Throughout the entire shipping process, Roshing maintains close oversight to ensure the safety and timely arrival of goods at the destination port. This involves real-time tracking and monitoring of the shipment, handling any unforeseen issues that may arise, and providing regular updates to the customer.

By doing so, Roshing ensures that the goods are transported safely and arrive within the agreed timeframe, meeting all customer expectations. We believe that Roshing stands out in the global logistics landscape because of its core strengths.

First, Roshing’s management’s extensive network and industry relationships empower us with access to a wide customer base, enabling tailored solutions for an array of logistics requirements. Additionally, our collaboration with direct shipping suppliers ensures competitive rates and transparent service delivery. Moreover, Roshing’s expertise in route optimization enables us to efficiently manage logistics routes and secure favorable terms for its clients.

These strengths collectively position us as a competitive player in the industry. 4 1. Container shipping process Roshing has a large network of international container shipping resources to provide customers with flexible booking services and personalized logistics solutions to meet the different needs of customers. a.

Long-term cooperation service agreements · Roshing has a long-term cooperation agreement with container suppliers which grants it priority for container space and preferential prices. b. Customer source and inquiry quotation · Current container shipping logistics customers of Roshing mainly come from the direct business contacts of the Company’s management.

Roshing’s customers are mainly cargo owners, cargo agents, international trade companies and large commodity buyers. At present, the main cargo types of container shipping include: auto parts, electronics and electrical products, clothing and shoes, small consumer products, etc.

The primary routes are from Asia to Africa, America, Europe and Australia. · Customer Inquiry: The customer usually makes an inquiry to Roshing based on the product name, category, quantity, volume, weight, departure port, destination port, arrival time or delivery time of the goods. · Quotation: Roshing generates shipping quotes for its clients based on the size, type and quantity of containers, the customer’s date, shipping providers and route needs. 5 c.

Contract signing and fee collection · The customer places a confirmation order with Roshing, usually in the form of booking order which includes route, shipper, consignee, name of vessel, loading port, discharge port, container type, container quantity, cargo quantity, cargo description, gross weight and other information. · Roshing issues an invoice and debit note to the customer for fee collection. d.

Container freight payment · Roshing notifies the supplier (shipowner, ship carrier, non-vessel operating common carriers and freight forwarder) to confirm the booking information, and the supplier issues an invoice to Roshing for payment. · Roshing makes payment to the supplier and ensures that the supplier completes the shipment according to the agreed upon terms. e.

Transportation arrangements · The customer is responsible for loading goods, container trailers, customs declaration, purchase of insurance and delivery of containers to the container yard at the loading port prior to the shipping cutoff date. · After the customer completes the customs declaration and releases the products, the shipowner loads the containers onto the vessel and ships them to the designated port of destination according to the selected route.

During this period, Roshing notifies the shipowner or the freight forwarder to issue a sea waybill or proforma to the customer detailing the condition that the freight has been received. · After discharging the goods at the destination port, the shipowner will notify the local freight forwarder designated by the customer to complete the customs clearance of the goods and land transportation of the containers to their destination. f.

Follow up work · Roshing oversees the shipment process to ensure it meets the customer’s satisfaction. 6 2. Bulk goods shipping process Roshing’s bulk shipping operator services encompass a broad range of bulk merchandise, including steel, building materials, and engineering materials. Roshing provides customized maritime logistics solutions for customers.

At present, Roshing’s main bulk shipping route covers: Japan, South Korea and Vietnam. To ensure that its customers receive customized shipping plans, Roshing closely follows shipping industry development trends, analyzes the characteristics of its customer’s goods, the port of destination, and timing requirements.

Roshing also constantly optimizes the route layout to improve transportation efficiency and ensure that the goods arrive at the destination safely and on time. a. Customer development · The management and business teams of Roshing promote its services, develop customers and obtain cooperation opportunities through customer visits and direct sales. · Roshing gets referrals from customers and agents.

Roshing then pays a sales commission to the referring customers and agents. b.

Customer inquiry and quotation · Inquiry: The customer puts forward the shipping requirements to Roshing, including the goods to be transported, the type and quantity of the goods, the characteristics of the goods, the transportation time, the destination port, any special arrangements and other needs. · Customized quotation: Roshing carries out pre-quotation work based on customer needs, such as shipping route supply resource inquiry and shipping demand matching.

Roshing then confirms the shipping plan and cost quote with the customer. 7 c.

Contract signing and payments · Contract signing: Roshing usually enters a fixture note with the customer, which contains the details of the specifications, quantities, transit times, prices, pricing methods, and others. · Payment: Roshing calculates the sea freight according to the fixture note and issues an invoice to the customer for the sea freight payment. d.

Supplier’s selecting and chartering · When selecting shipping supplier, Roshing considers the cargo characteristics, ship characteristics, cargo type & quantity, transportation requirements and shipment date. · When signing a fixture note with its customer, Roshing will sign a fixture note with the shipping supplier as well. The shipping suppliers are usually shipowners or ship carriers. e.

Transportation arrangement and payment i. Most of Roshing’s bulk cargo logistics are carried out on a Free In and Out (“FIO”), which means that the shipper is responsible for loading the cargo onto the vessel, the shipowner is responsible for the transport and the consignee is responsible for the unloading process.

The FIO process for international shipping includes: · Merchandise packing, land transportation, warehousing, port operation, customs clearance, loading operation and other work shall be completed by the cargo owner or its agency. · Usually after the goods are loaded on board, the agency obtains the captain’s receipt and issues the bill of landing. · Roshing’s responsibilities include ocean transportation of the goods from the time the goods are loaded onboard, onboard storage management, transportation process, sea navigation planning and adjustment, risk management, until the arrival of the goods at the destination port, and cargo unloading operations.

Roshing’s obligation of carriage is completed when the merchandise is unloaded from the ship. ii. Customs clearance, delivery of goods, and delivery of shipping documents are usually completed by agencies in different ports. In most shipping scenarios, the consignment arrangement is made by the consensual shipping supplier. In some transport scenarios, Roshing directly assigns the agency for customers. iii.

Transportation Fee payment: Roshing usually pays the transportation fee to the shipping supplier in 3-4 days. If there are other fees, such as processing fees, port fees, commission, agency fees and other related fees, the fees are be settled according to the customer’s contract with Roshing. f. Follow up service i.

File Organizing Transportation records: After the shipping process, Roshing will organize and keep all documents and records generated during transportation for record. ii. Customer Feedback Customer feedback: Roshing pays great attention to its customer experience.

It collects customer feedback on transportation services and addresses any problems or complaints that may arise. 8 Other Product & Services · Electronic Device Hardware: Roshing is a distributor of hardware components for electronic devices and generates revenue from reselling these components and is not involved in product development and manufacturing.

The main products include Wi-Fi modules, Bluetooth modules, 4G network modules, LED screens and touch screens, and software technical services.

INDUSTRY AND MARKET OPPORTUNITIES Logistics Market The classification of the logistics service providers in the global logistics industry Global logistics includes: Air Transport Logistics, Land Transport Logistics, Marine Transport Logistics, Terminal Operator etc. Among them, the Marine Transport Logistics is usually divided into shipping owner (holding ship assets) and shipping operator (not holding ship assets).

The shipping operator includes Container Shipping Operator/ Bulk Shipping Operator/ Liquid Shipping Operator/ Others Shipping Operator. The main business of Roshing belongs to Container Shipping Operator and Bulk Shipping Operator categories. 9 Shipping operators, such as Roshing, play a key role in the global logistics industry.

Their efficient operation management and services not only ensure the safety and punctual delivery of goods, but also play an important role in optimizing the logistics efficiency of global trade. We believe the outlook for the shipping industry is strong.

According to BIMCO (BIMCO is the world’s largest international shipping association, with over 2,000 members in more than 130 countries, representing 62% of the world’s tonnage.), ship supply is expected to grow on average 9.1% in 2024 and 4.1% in 2025. Ship deliveries are expected to hit a new record high in 2024, beating the record set in 2023.