QDM International Inc. Reports Financial Results for the Three Months Ended June 30, 2026
Rhea-AI Summary
QDM International (OTCQB: QDMI) reported strong results for the three months ended June 30, 2026. Revenue rose 133.4% year-on-year to $8.39 million, driven mainly by more insurance partners and referral channels. Net income increased 70.2% to $3.15 million, with basic and diluted EPS up to $0.36 from $0.22.
Cost of sales grew 292.9% due to a higher standard referral fee rate of about 50% from October 1, 2025, reducing gross margin from 70.8% to 50.8%. General and administrative expenses rose 31.9% to $0.48 million, reflecting higher headcount and CEO compensation. Income from operations reached $3.78 million, while cash and cash equivalents were $10.16 million at June 30, 2026. Total assets were $21.13 million and shareholders’ equity was $18.71 million.
Positive
- Revenue up 133.4% YoY to $8.39 million in Q2 2026
- Net income increased 70.2% YoY to $3.15 million
- EPS rose to $0.36 from $0.22 year-on-year
- Income from operations grew to $3.78 million from $2.18 million
- Shareholders’ equity increased to $18.71 million from $15.56 million
- Low total liabilities of $1.60 million versus $21.13 million assets
Negative
- Gross margin fell about 20 percentage points to 50.8%
- Cost of sales up 292.9% YoY to $4.13 million
- Referral fee rate raised to ~50%, pressuring margins
- G&A expenses up 31.9% YoY to $0.48 million
- Income tax expense up 71.3% YoY to $0.64 million
AI-generated analysis. How Rhea-AI works. Not financial advice.
HONG KONG, Aug. 17, 2026 (GLOBE NEWSWIRE) -- QDM International Inc. (the “Company”)(OTCQB: QDMI), a Florida holding company with operations primarily conducted through its indirectly wholly-owned subsidiary, Hong Kong YeeTah Insurance Broker Limited (“YeeTah”), today announced its financial results for the three months ended June 30, 2026.
Operational and Financial Highlights for the Three Months Ended June 30, 2026
Revenue increased by approximately
Net income for three months ended June 30, 2026 increased by approximately
Basic earnings per share for the three months ended June 30, 2026 were US
Huihe Zheng, Chairman, CEO, and President of the Company said: “During the three months ended June 30, 2026, the Company maintained strong business growth momentum, with revenue increasing by
Results of Operations for the Three Months Ended June 30, 2026
Revenue increased by approximately
Cost of sales increased by approximately
Gross profit margin decreased by approximately
General and administrative expenses generally are fixed and consist primarily of employee salaries, office rent, insurance costs, general office operating expenses (e.g., utilities, repairs and maintenance) and professional fees in engaging various service providers.
General and administrative expenses increased by approximately
Current income tax expenses increased by approximately
Net income for three months ended June 30, 2026 increased by approximately
Basic earnings per share for the three months ended June 30, 2026 were US
Financial Condition
Cash and cash equivalents were US
About QDM International Inc.
QDM International Inc. (OTCQB: QDMI) is a holding company focused on building a diversified insurance services platform in Hong Kong. Through its indirectly wholly owned subsidiary, Hong Kong YeeTah Insurance Broker Limited (“YeeTah”), the Company provides professional insurance brokerage and related financial services to individuals and families.YeeTah is an independent, licensed insurance broker with established relationships across the Hong Kong insurance market, offering a broad range of life, medical, and general insurance solutions designed to address the evolving protection and financial needs of its customers. YeeTah is also licensed as a Mandatory Provident Fund (“MPF”) intermediary and provides account-opening and related services under Hong Kong’s MPF and Occupational Retirement Schemes Ordinance (“ORSO”) frameworks. For more information, please visit https://www.qdmi.net.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company bases these forward-looking statements on its expectations and projections about future events, which the Company derives from the information currently available to it. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: the Company’s ability to attract and retain customers, including mainland Chinese visitors to Hong Kong; its ability to maintain and expand relationships with insurance company partners and obtain favorable commission rates; changes in laws, regulations, or regulatory guidance in Hong Kong, including those issued by the Insurance Authority, that could impact the Company’s business or commission structures; the impact of political, economic, and social conditions in Hong Kong and mainland China; the Company’s ability to recruit and retain qualified sales professionals and key management personnel; the competitive environment of the insurance brokerage industry in Hong Kong; and the Company’s ability to complete a proposed public offering and listing on a national securities exchange. These and other factors may cause the Company’s actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The Company is not obligated to update or revise any forward-looking statement publicly, whether as a result of new information, future events, uncertainties, or assumptions, except as required by applicable law. The forward-looking events discussed in this press release may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about the Company. For a more detailed discussion of risk factors, please refer to the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Company’s most recent quarterly report on Form 10-Q.
Investor Relations Contact
Investor Relation Office
Tel: 852 8491 2508
Email: ir@qdmi.com
| QDM INTERNATIONAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30 AND MARCH 31, 2026 | ||||||||
| June 30, 2026 | March 31, 2026 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,162,351 | $ | 10,328,590 | ||||
| Accounts receivable, net of credit loss allowance of $Nil and $Nil | 879,998 | 2,897,114 | ||||||
| Prepaid expenses and deposits | 9,808,097 | 4,057,519 | ||||||
| Total current assets | 20,850,446 | 17,283,223 | ||||||
| Right of use assets – operating lease | 192,312 | 73,003 | ||||||
| Long-term prepaid expenses and deposits | 86,316 | 86,316 | ||||||
| Property and equipment, net | — | 899 | ||||||
| Total assets | $ | 21,129,074 | $ | 17,443,441 | ||||
| LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable & accrued liabilities | $ | 124,655 | $ | 82,224 | ||||
| Operating lease liabilities - current | 115,381 | 40,703 | ||||||
| Income tax payable | 1,287,293 | 915,215 | ||||||
| Total current liabilities | 1,527,329 | 1,038,142 | ||||||
| Operating lease liabilities – non current | 75,342 | 30,680 | ||||||
| Total liabilities | 1,602,671 | 1,068,822 | ||||||
| Temporary equity: | ||||||||
| Redeemable Series B preferred stock, | 812,851 | 812,851 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, | 3,572 | 3,572 | ||||||
| Treasury stock, 139 and 139 shares at cost | (60,395 | ) | (60,395 | ) | ||||
| Additional paid-in capital | 11,688,381 | 11,688,381 | ||||||
| Retained earnings | 7,081,994 | 3,930,210 | ||||||
| Total shareholders’ equity | 18,713,552 | 15,561,768 | ||||||
| Total liabilities, temporary equity and shareholders’ equity | $ | 21,129,074 | $ | 17,443,441 | ||||
| QDM INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025 | ||||||||
| For the Three Months Ended June 30, 2026 | For the Three Months Ended June 30, 2025 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenue | $ | 8,392,383 | $ | 3,594,997 | ||||
| Cost of sales | 4,128,106 | 1,050,746 | ||||||
| Gross profit | 4,264,277 | 2,544,251 | ||||||
| Operating expenses | ||||||||
| General & administrative expenses | 484,497 | 367,194 | ||||||
| Total operating expenses | 484,497 | 367,194 | ||||||
| Income from operations | 3,779,780 | 2,177,057 | ||||||
| Other income (expenses) | ||||||||
| Finance costs | (1,487 | ) | (1,718 | ) | ||||
| Other income, net | 17,566 | 52,406 | ||||||
| Total other income | 16,079 | 50,688 | ||||||
| Income before income taxes | 3,795,859 | 2,227,745 | ||||||
| Current income tax expenses | 644,075 | 375,933 | ||||||
| Net income | $ | 3,151,784 | $ | 1,851,812 | ||||
| Total comprehensive income | $ | 3,151,784 | $ | 1,851,812 | ||||
| Earnings per share of common stock: | ||||||||
| Basic earnings per share | $ | 0.36 | 0.22 | |||||
| Diluted earnings per share | $ | 0.36 | 0.22 | |||||
| Weighted average basic & diluted shares outstanding: | ||||||||
| Basic | 8,636,186 | 8,577,679 | ||||||
| Diluted | 8,636,186 | 8,577,679 | ||||||
