QDM International Inc.

What they do

QDM has no material operations of its own and conducts business primarily through its indirectly wholly-owned Hong Kong subsidiary, Hong Kong YeeTah Insurance Broker Limited. YeeTah sells life and medical insurance and general insurance such as automobile, commercial property, liability and homeowner coverage, and acts as an MPF intermediary for account opening and related services under Hong Kong's MPF and ORSO retirement schemes. It is paid commissions by Hong Kong insurers, typically a percentage of premiums, and since December 2023 has also earned referral commissions from trust companies and other brokerages.

Revenue drivers

• Insurance brokerage commissions (life/medical and general) — YeeTah earns commissions from Hong Kong insurers based on a percentage of premiums, paid generally the month after the roughly 21-day policy cooling-off period; this is the core business the company describes.
• Referral commissions from trust companies and other brokers — Since December 2023 QDM refers customers to partner trust companies and brokerages for products and earns a percentage of the transaction amount; investment-product referrals are deemed complete on confirmed subscription and receipt of funds by the partner.
• MPF/ORSO intermediary services — YeeTah is licensed to assist customers with account opening and related services under Hong Kong's MPF and ORSO retirement schemes; no separate revenue figure for this line is given in the excerpts.
• Partner/channel expansion — The company attributes growth to adding insurers offering more products and increasing the number of referral partners, rather than to a single dominant product line.

Recent performance

For the three months ended June 30, 2026, revenue rose about $4.8 million, or 133.4%, year over year, and net income rose about $1.3 million, or 70.2%. Basic EPS was $0.36 versus $0.22 in the prior-year quarter. Cost of sales increased about $3.1 million, or 292.9%, mainly from higher referral fees after the company moved to a roughly 50% standard referral fee rate effective October 1, 2025, from about 15% plus discretionary bonuses previously. Gross margin fell to 50.8% from 70.8%. For the full year 2026, reported revenue was $21.5 million, net income $7.5 million and operating cash flow $1.8 million, with cash and equivalents of $10.2 million at June 30, 2026.

Strategy

Management says it will deepen insurance brokerage operations and continue expanding insurance partnerships, product channels, customer service capabilities and operational efficiency. The company has shifted its referral fee structure to a fixed roughly 50% benchmark, which it says aligns with market conditions and the Hong Kong Insurance Authority's referral commission benchmark. It has also used corporate actions to restructure its equity, including a 1-for-34 reverse stock split effective September 19, 2025 that cut outstanding common shares from 291,563,930 to about 8,577,679, and the conversion of all Series C Preferred Stock in September 2025.

Risks

• Margin compression from higher referral fees — Gross margin fell to 50.8% in the June 2026 quarter from 70.8% a year earlier after the standard referral fee rate rose to about 50%, so revenue growth may not translate proportionally into profit.
• Dependence on partner and insurer relationships — Growth is attributed to adding insurer partners and referral partners, so losing or renegotiating key relationships could directly reduce revenue.
• Regulatory exposure in Hong Kong — The referral fee change was made to comply with referral commission regulations issued by the Hong Kong Insurance Authority, and YeeTah operates under Hong Kong licensing rules for brokers and MPF intermediaries.
• Small-scale, dual-jurisdiction holding structure — QDM is a Florida holding company with no material operations of its own, running through BVI and Hong Kong subsidiaries, with revenue of $21.5 million in fiscal 2026 and a very limited public market presence on the OTCQB.

Outlook

In the August 17, 2026 release, Chairman, CEO and President Huihe Zheng said the company maintained strong business growth momentum and a stable financial position, and plans to further deepen insurance brokerage operations, expand insurance partnerships and product channels, improve customer service and operational efficiency, and drive steady growth. No specific numeric guidance was provided.