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