Exhibit
99.1
QDM
International Inc. Reports Financial Results for Fiscal Year 2026
HONG
KONG, June 30, 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 fiscal year ended March 31, 2026.
Operational
and Financial Highlights for Fiscal Year 2026
Revenue from insurance brokerage
services increased by approximately $12.8 million, or 179.2%, for the fiscal year ended March 31, 2026, as compared to the same period
of 2025. Revenue from referral business increased by approximately $319,000, or 25.5% for the fiscal year ended March 31, 2026, as compared
to the fiscal year ended March 31, 2025.
Net income for the fiscal year
ended March 31, 2026 increased by approximately $2.7 million, or 56.22%, as compared to the same period of 2025.
Basic earnings per
share for the fiscal year ended March 31, 2026 was $0.88, compared to
basic earnings per share of $0.56 in the fiscal year 2025.
Operational and Financial Highlights
for Fourth Quarter of Fiscal Year 2026
Revenue for the fourth quarter
ended March 31, 2026 increased by approximately $4,301,065, or 88.85%, as compared to the same period of 2025.
Net income for the fourth quarter
ended March 31, 2026 increased by approximately $2,012,898, or 63.53%, as compared to the same period of 2025.
Basic earnings
per share for the fourth quarter ended March 31, 2026 was $0.60, compared to
basic earnings per share of $0.37 for the same period of 2025.
Huihe
Zheng, Chairman, CEO, and President of the Company said: “In fiscal year 2026, the Company witnessed comprehensive performance
growth: the revenue from its core insurance brokerage business surged by nearly 180%, and the net profit achieved a significant leap.
Thanks to its extremely robust balance sheet, ample cash reserves, and a mature operating platform established over many years in Hong
Kong, the Company has achieved sustainable profitability despite regulatory adjustments. This impressive achievement is primarily attributed
to the excellent execution capabilities of our efficient team and the precise implementation of various forward-looking strategic plans.
The current robust growth is firmly based on channel expansion and well-maintained customer relationships, demonstrating a stable development
trajectory. Looking ahead, we will continue to deepen our cultivation and meticulous efforts in the Hong Kong market, and plan to actively
explore the enhancement of AI technology through strategic mergers and acquisitions, seize long-term structural opportunities in the
insurance sector, and continuously create compound value for shareholders.”
Results of Operations for Fiscal
Year 2026
Revenue from insurance brokerage
services increased by approximately $12.8 million, or 179.2%, for the fiscal year ended March 31, 2026 as compared to the same period
of 2025. The increase was mainly due to: (i) the expansion of the Company’s collaboration with existing insurance partners during
the fiscal year ended March 31, 2026; (ii) the addition of new insurance partners; (iii) an increase in the number of insurance policies
that generated commissions for us; and (iv) an increase in commission rates. Revenue from referral business increased by approximately
$319,000, or 25.5% for the fiscal year ended March 31, 2026, as compared to the fiscal year ended March 31, 2025. The increase was mainly
due to the Company’s new cooperation with insurance brokerage agents.
Cost of sales increased by approximately
$8.9 million, or 836.5%, for the fiscal year ended March 31, 2026 as compared to the same period of 2025. The increase was primarily due
to higher referral fees paid to align with the market conditions and maintain competitiveness and sales performance.
Gross
profit margin decreased by approximately 33.7% for the fiscal year ended March 31, 2026 as compared to the same period of 2025, which
was in line with the significant increase in cost of sales.
General
and administrative expenses increased by approximately $949,000, or 67.2%, for the fiscal year ended March 31, 2026 as compared
to the same period of 2025. The change is primarily due to hiring of more employees, increases in employee salaries, increased travelling
and transportation expenses, and the payment of a cash bonus to the Company’s Chief Executive Officer.
Current
income tax expenses increased by approximately $642,000, or 59.1%, for the fiscal year ended March 31, 2026 as compared to the
same period of 2025. The change is primarily due to increase in profits in the fiscal year ended March 31, 2026.
Net
income for the fiscal year ended March 31, 2026 increased by approximately $2.7 million, or 56.22%, as compared to the same
period of 2025.
Basic
earnings per share in the fiscal year 2026 was $0.88, compared to basic earnings per share
of $0.56 in the fiscal year 2025.
Result of Operations for Fourth
Quarter of Fiscal Year 2026
Revenue for the fourth quarter
ended March 31, 2026 increased by approximately $4,301,065, or 88.85%, as compared to the fourth quarter of 2025. The increase was mainly
due to: (i) an increase in the number of insurance policies that generated commissions for us, and (ii) increase in the referral business
revenue due to the Company’s new cooperation with insurance brokerage agents.
Cost of sales increased by approximately
$1,661,359, or 299.95%, for the fourth quarter ended March 31, 2026 as compared to the same period of 2025. The cost increase was primarily
driven by revenue growth with costs rising proportionally; meanwhile, higher referral fee expenditures versus the same period in 2025
resulted from the Company’s upward adjustment of such commission rates within compliance requirements to adapt to changing market
conditions and maintain corporate competitiveness and sales performance.
Gross profit margin increased
by approximately 14.72% for the fourth quarter ended March 31, 2026 as compared to the same period of 2025, such margin change was driven
by cost adjustments, which offset the impact of the substantial surge in total revenue.
General and administrative expenses
increased by approximately $118,084, or 27.03%, for the fourth quarter ended March 31, 2026 as compared to the same period of 2025. The
change is primarily attributable to higher employee compensation, as well as increases in office expenses and intermediary fees.
Current income tax expenses increased
by approximately $508,524, or 74.74%, for the fourth quarter ended March 31, 2026 as compared to the same period of 2025. The change is
primarily due to an increase in profits in the fourth quarter ended March 31, 2026.
Net income for the fourth quarter
ended March 31, 2026 increased by approximately $2,012,898, or 63.53%, as compared to the same period of 2025.
Basic earnings per share for the fourth quarter ended December 31, 2026 was $0.60, compared
to basic earnings per share of $0.37 for the fourth quarter ended December 31, 2025.
Financial Condition
Cash and cash equivalents were $10.33 million as of March 31, 2026, compared to $8.56 million
as of March 31, 2025.
About
QDM International Inc.
QDM International Inc. (OTCQB: QDMI)
is a holding company that conducts its insurance brokerage business in Hong Kong through its wholly owned subsidiary, YeeTah. YeeTah is
an independent, licensed insurance broker offering approximately 629 insurance products, including life, medical, auto, property, liability,
and homeowner coverage, through partnerships with 24 insurance companies as of March 31, 2026. YeeTah is also licensed as a Mandatory
Provident Fund (“MPF”) intermediary, providing customers with account-opening and related services under Hong Kong’s
MPF and Occupational Retirement Schemes Ordinance (“ORSO”). We presently serve only Hong Kong residents and mainland visitors;
MPF and ORSO services are solely for Hong Kong residents. The Company generates revenue primarily through commissions paid by insurance
companies. 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 Registration Statement on Form S-1.
Investor
Relations Contact
Investor
Relation Office
Tel:
852 8491 2508
Email:
ir@qdmi.com
QDM
INTERNATIONAL INC.
CONSOLIDATED
BALANCE SHEETS
AS OF MARCH 31, 2026 AND 2025
| | |
March
31,
2026 | | |
March
31,
2025 | |
| ASSETS | |
| | |
| |
| Current assets: | |
| | |
| |
| Cash
and cash equivalents | |
$ | 10,328,590 | | |
$ | 8,557,305 | |
| Accounts
receivable, net of credit loss allowance of $nil and $nil | |
| 2,897,114 | | |
| 1,702,217 | |
| Prepaid
expenses and deposits | |
| 4,057,519 | | |
| 144,768 | |
| Total
current assets | |
| 17,283,223 | | |
| 10,404,290 | |
| | |
| | | |
| | |
| Right
of use assets – operating lease | |
| 73,003 | | |
| 185,662 | |
| Long-term
prepaid expenses and deposits | |
| 86,316 | | |
| 86,316 | |
| Property
and equipment, net | |
| 899 | | |
| 33,030 | |
| | |
| | | |
| | |
| Total
assets | |
$ | 17,443,441 | | |
$ | 10,709,298 | |
| | |
| | | |
| | |
| LIABILITIES
AND STOCKHOLDERS’ DEFICIT | |
| | | |
| | |
| Current
liabilities: | |
| | | |
| | |
| Accounts
payable & accrued liabilities | |
$ | 82,224 | | |
$ | 286,074 | |
| Operating
lease liabilities - current | |
| 40,703 | | |
| 115,125 | |
| Income
tax payable | |
| 915,215 | | |
| 1,395,418 | |
| | |
| | | |
| | |
| Total
current liabilities | |
| 1,038,142 | | |
| 1,796,617 | |
| | |
| | | |
| | |
| Operating
lease liabilities – non current | |
| 30,680 | | |
| 71,383 | |
| Total
liabilities | |
| 1,068,822 | | |
| 1,868,000 | |
| | |
| | | |
| | |
| 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 March
31, 2026 and March 31, 2025, respectively | |
| 812,851 | | |
| — | |
| Stockholders’
equity: | |
| | | |
| | |
| Series
B preferred stock, $0.0001 par value, total 10,000,000 shares authorized, 6,013,500 and 6,013,500 issued and outstanding, classified
as temporary equity and equity, as of March 31, 2026 and March 31, 2025, respectively | |
| — | | |
| 601 | |
| Series
C preferred stock, $0.0001 par value, total 10,000,000 shares authorized, nil and 531,886 issued and outstanding as of March 31,
2026 and March 31, 2025, respectively | |
| — | | |
| 53 | |
| Common stock, $0.0001
par value, 700,000,000 shares authorized, 8,636,186 and 8,577,583 shares issued and outstanding as of March 31, 2026 and March 31,
2025, respectively | |
| 3,572 | | |
| 3,519 | |
| Treasury
stock, 139 and 139 shares at cost | |
| (60,395 | ) | |
| (60,395 | ) |
| Additional
paid-in capital | |
| 11,688,381 | | |
| 12,500,631 | |
| Retained
earnings (accumulated deficit) | |
| 3,930,210 | | |
| (3,603,111 | ) |
| Total
stockholders’ equity | |
| 15,561,768 | | |
| 8,841,298 | |
| | |
| | | |
| | |
| Total
liabilities, temporary equity and shareholders’ equity | |
$ | 17,443,441 | | |
$ | 10,709,298 | |
*Retrospectively
applied for effect of the 2025 Reverse Stock Split on September 19, 2025.
QDM
INTERNATIONAL INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE FISCAL YEARS ENDED MARCH 31, 2026 AND 2025
| | |
For
the Fiscal Years Ended
March 31, | |
| | |
2026 | | |
2025 | |
| Revenue | |
$ | 21,475,746 | | |
$ | 8,381,274 | |
| Cost of sales | |
| 9,964,867 | | |
| 1,064,039 | |
| Gross
profit | |
| 11,510,879 | | |
| 7,317,235 | |
| | |
| | | |
| | |
| Operating expenses | |
| | | |
| | |
| General & administrative
expenses | |
$ | 2,361,443 | | |
$ | 1,411,945 | |
| Total
operating expenses | |
| 2,361,443 | | |
| 1,411,945 | |
| | |
| | | |
| | |
| Income
from operations | |
| 9,149,436 | | |
| 5,905,290 | |
| | |
| | | |
| | |
| Other (income) expense | |
| | | |
| | |
| Finance costs | |
| (6,105 | ) | |
| (5,426 | ) |
| Other income, net | |
| 118,025 | | |
| 9,849 | |
| Total
other income | |
| 111,920 | | |
| 4,423 | |
| | |
| | | |
| | |
| Income before income taxes | |
| 9,261,356 | | |
| 5,909,713 | |
| | |
| | | |
| | |
| Current
income tax expense | |
| 1,728,035 | | |
| 1,086,375 | |
| | |
| | | |
| | |
| Net
income | |
$ | 7,533,321 | | |
$ | 4,823,338 | |
| | |
| | | |
| | |
| Total comprehensive income | |
$ | 7,533,321 | | |
$ | 4,823,338 | |
| | |
| | | |
| | |
| Earnings per share of common stock: | |
| | | |
| | |
| Basic earnings per share | |
$ | 0.88 | | |
$ | 0.56 | |
| Diluted earnings per share | |
$ | 0.88 | | |
$ | 0.56 | |
| | |
| | | |
| | |
| Weighted average basic & diluted shares
outstanding: | |
| | | |
| | |
| Basic | |
| 8,608,245 | | |
| 8,577,583 | |
| Diluted | |
| 8,608,245 | | |
| 8,577,583 | |
*
Retrospectively applied for effect of the 2025 Reverse Stock Split on September 19, 2025.
