QDM International Inc. reported significant financial growth in its latest quarterly filing, with revenues reaching $4.77 million for the three months ended December 31, 2025, a 201.3% increase from $1.58 million in the same period of 2024. For the nine-month period, total revenue surged to $12.33 million, up 248.4% from $3.54 million year-over-year. The company attributed this growth primarily to an expansion in collaborations with insurance partners, an increase in the number of insurance policies sold, and higher commission rates.
The company's cost of sales also saw a substantial rise, increasing by 875.5% to $2.16 million for the three months ended December 31, 2025, compared to $221,887 in the prior year. This increase was largely driven by higher referral fees, which were adjusted to align with market conditions and regulatory requirements in Hong Kong. As a result, gross profit for the quarter was $2.60 million, reflecting a decrease in gross profit margin due to the significant rise in costs.
Operationally, QDM International has made strategic moves, including a partnership with a trust company in Hong Kong to diversify its revenue streams through referral commissions for investment products. The company also underwent significant organizational changes, including a reverse stock split on September 19, 2025, which reduced the number of outstanding shares from approximately 291.56 million to about 8.64 million. This move was part of a broader strategy to enhance shareholder value and improve the company's market position.
As of December 31, 2025, QDM International reported total assets of $15.99 million, up from $10.71 million at the end of the previous fiscal period. The company’s cash and cash equivalents increased to $12.35 million, compared to $8.56 million in March 2025. The increase in cash flow was primarily due to improved operating activities, which generated approximately $3.84 million in net cash for the nine months ended December 31, 2025, compared to $1.50 million in the same period of 2024.
Looking ahead, QDM International anticipates continued growth driven by its strategic partnerships and operational efficiencies. However, the company also acknowledged potential risks, including market conditions and regulatory changes in Hong Kong that could impact its business operations. The management remains focused on enhancing its internal controls and financial reporting processes to support its growth trajectory and ensure compliance with applicable regulations.
About QDM International Inc.
QDM International Inc. is a holding company that primarily operates through its Hong Kong subsidiary, YeeTah, offering insurance brokerage services. It sells life, medical, and general insurance products underwritten by multiple Hong Kong insurers, focusing on personalized customer service and long-term life insurance. The company targets individual customers, including visitors from mainland China, and emphasizes expanding its distribution network and maintaining strong insurer relationships.
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