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  4. [8-K] QDM International Inc. Reports Material Event

QDM International (QDMI) revenue jumps 133% as higher referral fees hit margins

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(High)
Filing Sentiment
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Form Type
8-K

Rhea-AI Filing Summary

QDM International Inc., a Hong Kong-focused insurance brokerage platform, reported significantly stronger results for the three months ended June 30, 2026. Revenue was $8,392,383, an increase of approximately $4.8 million or 133.4% compared with the same period in 2025, driven mainly by more insurance company partners and a larger number of referral partners.

Net income was $3,151,784, up about $1.3 million or 70.2% year-on-year, with basic and diluted earnings per share rising to $0.36 from $0.22. Gross profit increased to $4,264,277, but the gross profit margin decreased from 70.8% to 50.8%, reflecting a sharp rise in cost of sales tied to higher referral fees. Effective October 1, 2025, the company raised its standard referral fee rate to approximately 50% to align with Hong Kong Insurance Authority benchmark guidance, compared with around 15% plus discretionary bonuses in the prior-year quarter.

General and administrative expenses rose 31.9% to $484,497, mainly due to additional hiring and higher CEO compensation under an agreement effective December 2025. Cash and cash equivalents were $10.16 million as of June 30, 2026. Total assets reached $21,129,074, with shareholders’ equity of $18,713,552.

Positive

  • Revenue grew 133.4% year-on-year to $8.39 million, showing strong expansion in insurance brokerage activity.
  • Net income rose 70.2% to $3.15 million, with EPS increasing from $0.22 to $0.36.
  • Total assets increased from $17.44 million to $21.13 million, and shareholders’ equity rose to $18.71 million.

Negative

  • Gross margin compressed by 20 percentage points, falling from 70.8% to 50.8% due to higher referral fee rates.
  • Cost of sales surged 292.9% to $4.13 million, outpacing revenue growth and pressuring profitability ratios.
Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Revenue $8,392,383 For the three months ended June 30, 2026; up 133.4% year-on-year
Net income $3,151,784 For the three months ended June 30, 2026; up 70.2% year-on-year
Basic EPS $0.36 Three months ended June 30, 2026; previously $0.22 in 2025 period
Gross margin 50.8% Three months ended June 30, 2026; down from 70.8% a year earlier
Cost of sales $4,128,106 Three months ended June 30, 2026; increased 292.9% year-on-year
Cash and cash equivalents $10,162,351 Balance as of June 30, 2026
Total assets $21,129,074 Balance as of June 30, 2026
Shareholders’ equity $18,713,552 Balance as of June 30, 2026
gross profit margin financial
"Gross profit margin decreased by approximately 20.0%, from 70.8%..."
Gross profit margin shows how much money a company keeps from sales after paying for the goods or services it sold. It’s like checking how much profit is left over from each dollar earned before covering other costs. A higher margin indicates the company makes more money from its sales, which helps assess its profitability and efficiency.
temporary equity financial
"LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY"
Redeemable Series B preferred stock financial
"Redeemable Series B preferred stock, $0.0001 par value, 30,000,000 shares..."
referral fee rate financial
"the Company adjusted its standard referral fee rate to approximately 50%..."
Mandatory Provident Fund financial
"YeeTah is also licensed as a Mandatory Provident Fund (“MPF”) intermediary..."
A mandatory provident fund is a government-required retirement savings plan where employers and employees must each put a portion of wages into pooled investment accounts, similar to a workplace piggy bank that grows over time. It matters to investors because these contributions create steady flows of money into financial markets and influence companies’ payroll costs, cash needs and long-term employee financial security—factors that can affect a company’s profitability and stock value.
Occupational Retirement Schemes Ordinance regulatory
"under Hong Kong’s MPF and Occupational Retirement Schemes Ordinance (“ORSO”) frameworks."
Revenue $8,392,383 Increased by approximately $4.8 million or 133.4% vs. 2025 period
Net income $3,151,784 Increased by approximately $1,300,000 or 70.2% vs. 2025 period
Basic EPS $0.36 Increased from $0.22 in the three months ended June 30, 2025
Gross profit margin 50.8% Decreased from 70.8% in the three months ended June 30, 2025

FAQ

How did QDMI’s revenue perform for the quarter ended June 30, 2026?
QDM International Inc. reported revenue of $8,392,383 for the three months ended June 30, 2026, an increase of approximately $4.8 million or 133.4% compared with the same period in 2025, mainly from more insurance partners and referral channels.

What was QDMI’s net income and EPS for the June 30, 2026 quarter?
For the three months ended June 30, 2026, QDMI generated net income of $3,151,784, up about 70.2% year-on-year. Basic and diluted earnings per share were $0.36, compared with $0.22 in the same quarter of 2025.

How did QDMI’s gross margin change in the June 30, 2026 quarter?
QDM International Inc.’s gross profit margin declined to 50.8% for the quarter ended June 30, 2026, from 70.8% a year earlier, as cost of sales rose 292.9% due to higher standard referral fee rates aligned with Hong Kong Insurance Authority benchmarks.

What were QDMI’s cash and total assets as of June 30, 2026?
As of June 30, 2026, QDM International Inc. held $10,162,351 in cash and cash equivalents. Total assets were $21,129,074, compared with $17,443,441 as of March 31, 2026, with shareholders’ equity of $18,713,552.

How did QDMI’s operating expenses change in the June 30, 2026 quarter?
General and administrative expenses for QDM International Inc. were $484,497 for the three months ended June 30, 2026, an increase of about $117,000 or 31.9% from the prior-year quarter, mainly from additional staff and higher CEO compensation under a December 2025 employment agreement.

What referral fee changes affected QDMI’s cost structure?
Effective October 1, 2025, QDMI set its standard referral fee rate at approximately 50%, aligning with the Hong Kong Insurance Authority’s benchmark. This replaced a prior ~15% rate plus discretionary bonuses, driving higher cost of sales and gross margin compression in the June 2026 quarter.

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false 0000 0001094032 0001094032 2026-08-17 2026-08-17 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 17, 2026

 

QDM International Inc.

(Exact name of registrant as specified in its charter)

 

Florida   000-27251   59-3564984
(State or other Jurisdiction
of Incorporation)		   (Commission File Number)   (IRS Employer
Identification No.)

 

Room 1030B, 10/F, Ocean Centre, Harbour City,
5 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong
+ 852 34886893

(Address and telephone number, including area code, of registrant’s principal executive offices)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act: None.

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

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. ☐

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On August 17, 2026, QDM International Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

 

The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01 Financial Statement and Exhibits.

 

99.1   Press Release
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

1

 

 

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 hereunto duly authorized.

 

Dated: August 17, 2026

 

  QDM INTERNATIONAL INC.
     
  By: /s/ Huihe Zheng
  Name: Huihe Zheng
  Title: Chief Executive Officer

 

2

 

Exhibit 99.1

 

QDM International Inc. Reports Financial Results for the Three Months Ended June 30, 2026

 

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 $4.8 million, or 133.4%, for the three months ended June 30, 2026 as compared to the same period of 2025.

 

Net income for three months ended June 30, 2026 increased by approximately $1,300,000, or 70.2%, as compared to the same period of 2025.

 

Basic earnings per share for the three months ended June 30, 2026 were US$0.36, compared to basic earnings per share of US$0.22 for the three months ended June 30, 2025.

 

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 133.4% year-on-year and net income rising by 70.2%. Basic earnings per share rose from $0.22 in the same period last year to $0.36. The growth in revenue and profitability was primarily driven by the Company’s continuous expansion of insurance partners and referral channels, reflecting the Company’s strong execution capabilities and business momentum. In response to changing market conditions, the Company continued to expand its business and partnership channels, achieving both business scale expansion and sustained profitability. During the reporting period, the Company maintained a stable financial position, supporting its ongoing business development. Looking ahead, we plan to further deepen our insurance brokerage operations, expand insurance partnerships and product channels, continuously enhance customer service capabilities and operational efficiency, drive steady business growth, and create long-term value for our shareholders.”

 

Results of Operations for the Three Months Ended June 30, 2026

 

Revenue increased by approximately $4.8 million, or 133.4%, for the three months ended June 30, 2026 as compared to the same period of 2025. The increase was mainly due to (i) addition of insurance companies that offer more insurance products, and (ii) the increase of the number of our referral partners.

 

Cost of sales increased by approximately $3.1 million, or 292.9%, for the three months ended June 30, 2026 as compared to the same period of 2025. The increase was primarily due to higher referral fees paid. During the three months ended June 30, 2026, the Company had higher referral fee rates. Effective October 1, 2025, the Company adjusted its standard referral fee rate to approximately 50% to align with market conditions, maintain competitiveness, and comply with the referral commission regulations issued by the Hong Kong Insurance Authority (the “IA”), which establishes a 50% benchmark rate. This compares to the three months ended June 30, 2025, when the Company applied a referral fee rate of approximately 15% and supplemented payments with additional discretionary bonuses to certain partners. The shift to the higher fixed benchmark rate drove the incremental commission expense recorded in the current period.

 

Gross profit margin decreased by approximately 20.0%, from 70.8% for the three months ended June 30, 2025 to 50.8% for the three months ended June 30, 2026, which was in line with the significant increase in cost of sales.

 

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 $117,000, or 31.9%, for the three months ended June 30, 2026 as compared to the same period of 2025. The change is primarily due to hiring of more employees, and an increase in payroll expenses related to the Company’s Chief Executive Officer, Mr. Zheng, whose employment agreement became effective in December 2025.

 

 

 

Current income tax expenses increased by approximately $268,000, or 71.3%, for the three months ended June 30, 2026 as compared to the same period of 2025. The change is primarily due to increase in profits in the three months ended June 30, 2026.

 

Net income for three months ended June 30, 2026 increased by approximately $1,300,000, or 70.2%, as compared to the same period of 2025.

 

Basic earnings per share for the three months ended June 30, 2026 were US$0.36, compared to basic earnings per share of US$0.22 for the three months ended June 30, 2025.

 

Financial Condition

 

Cash and cash equivalents were US$10.16 million as of June 30, 2026, compared with US$10.33 million as of June 30, 2025.

 

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 Form10-Q.

 

Investor Relations Contact

 

Investor Relation Office

Tel: 852 8491 2508

Email: ir@qdmi.com

 

2

 

 

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, $0.0001 par value, 30,000,000 shares authorized, 6,013,500 and 6,013,500 issued and outstanding as of June 30, 2026 and March 31, 2026, respectively   812,851    812,851 
Shareholders’ equity:          
Common stock, $0.0001 par value, 700,000,000 shares authorized, 8,636,186 and 8,636,186 shares issued and outstanding as of June 30, 2026 and March 31, 2026, respectively   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 

 

3

 

 

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 

 

4

 

Source: View Original Filing on SEC EDGAR

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