QDM International Reports 59.2% Revenue Growth in Latest Quarter

QDM International Inc. reported significant financial performance improvements in its latest quarterly filing for the three months ended December 31, 2024. The company generated revenue of $1.6 million, a 59.2% increase from $1.0 million in the same period last year. This growth was attributed to new partnerships with two insurance companies that provided higher commission rates, although it was partially offset by a decline in revenue from an existing partner. The cost of sales also saw a substantial decrease of 59.3%, dropping to $246,913 from $606,779, primarily due to reduced referral fees following regulatory changes in Hong Kong.

For the nine months ending December 31, 2024, QDM International reported total revenue of $3.6 million, down 33.8% from $5.4 million in the previous year. This decline was largely due to decreased revenue from a key insurance partner, with a shift towards lower renewal commission rates impacting overall earnings. Despite the drop in revenue, the company’s gross profit increased to $3.0 million, reflecting a gross profit margin improvement of 45.3% due to lower costs associated with sales.

Operationally, QDM International has made strategic moves to enhance its workforce and service offerings. General and administrative expenses surged by 126% to $452,524 for the three months ended December 31, 2024, driven by increased hiring and professional fees. The company’s net income for the quarter rose to $706,615, a 267.8% increase compared to $192,139 in the prior year, while net income for the nine-month period increased by 17.9% to $1.7 million.

In terms of organizational changes, QDM International executed a forward stock split on April 5, 2024, increasing its authorized shares of common stock from 200 million to 700 million. This move was part of a broader strategy to enhance liquidity and attract investment. The company also issued 6 million Series B preferred shares to its CEO, Huihe Zheng, in exchange for debt cancellation, further consolidating his control over the company.

Looking ahead, QDM International anticipates continued challenges in revenue generation due to market conditions and regulatory impacts in Hong Kong. The company remains focused on expanding its partnerships and enhancing its service offerings to stabilize and grow its revenue streams. Management has expressed optimism about future profitability, contingent on effective execution of its strategic initiatives and market recovery.