QDMI's Q2 Revenue Soars 273% on Strong Insurance Brokerage Performance

TL;DR

**QDMI is a screaming buy, with revenue and net income exploding, proving its Hong Kong insurance model is a cash-generating machine.**

AI Summary

QDM International Inc. (QDMI) reported a significant increase in revenue and net income for the three months ended June 30, 2025. Revenue surged to $3,594,997, a substantial 272.8% increase from $964,265 in the same period of 2024. Net income also saw a dramatic rise, reaching $2,196,305, up 378.1% from $459,380 in the prior year's quarter. This strong financial performance was driven by increased gross profit, which grew from $785,633 to $2,956,819. Operating expenses increased from $248,779 to $367,194, but were significantly outpaced by revenue growth. Cash and cash equivalents increased to $12,409,685 as of June 30, 2025, from $8,557,305 as of March 31, 2025, primarily due to $3,892,380 in net cash provided by operating activities. The company's business is primarily conducted through its Hong Kong-based insurance brokerage subsidiary, YeeTah Insurance Broker Limited, which sells life, medical, and general insurance products, and provides MPF/ORSO services. Key risks include political uncertainty in Hong Kong and Mainland China, and the ability to attract and retain customers and personnel.

Why It Matters

QDMI's explosive growth in revenue and net income signals a potentially undervalued opportunity for investors, especially given its focus on the Hong Kong insurance market. The company's ability to significantly increase its cash position through operating activities demonstrates strong operational efficiency and financial health, which could attract more institutional interest. For employees, this growth suggests job security and potential expansion opportunities within YeeTah Insurance Broker Limited. Customers benefit from a robust and expanding insurance intermediary, potentially offering more diverse and competitive products. In the broader market, QDMI's performance highlights the resilience and growth potential within the Hong Kong financial services sector, despite regional political uncertainties, potentially drawing more capital to similar ventures.

Risk Assessment

Risk Level: medium — The risk level is medium due to significant exposure to political uncertainty and social unrest in Hong Kong and Mainland China, as explicitly stated in the 'Cautionary Note Regarding Forward-Looking Statements.' While the company shows strong financial growth with a 272.8% revenue increase, its concentrated operations in a geopolitically sensitive region introduce inherent volatility that could impact future performance.

Analyst Insight

Investors should consider initiating a position in QDMI, given the substantial revenue growth of 272.8% and net income increase of 378.1% year-over-year. Monitor geopolitical developments in Hong Kong closely, as these represent the primary external risk to the company's otherwise strong operational performance.

Financial Highlights

debt To Equity

0.22

revenue

$3,594,997

operating Margin

72.05%

total Assets

$13,504,211

total Debt

$2,466,608

net Income

$2,196,305

eps

$0.008

gross Margin

82.25%

cash Position

$12,409,685

revenue Growth

+272.8%

Revenue Breakdown

Key Numbers

• $3,594,997 — Revenue (Increased 272.8% from $964,265 in Q2 2024)
• $2,196,305 — Net Income (Increased 378.1% from $459,380 in Q2 2024)
• $12,409,685 — Cash and Cash Equivalents (As of June 30, 2025, up from $8,557,305 as of March 31, 2025)
• $3,892,380 — Net Cash Provided by Operating Activities (For the three months ended June 30, 2025)
• 291,563,930 — Shares of Common Stock Outstanding (As of August 14, 2025)
• $0.008 — Basic Earnings Per Share (For the three months ended June 30, 2025, up from $0.002 in Q2 2024)
• 272.8% — Revenue Growth (Year-over-year for the three months ended June 30, 2025)
• 378.1% — Net Income Growth (Year-over-year for the three months ended June 30, 2025)

Key Players & Entities

• QDM International Inc. (company) — registrant
• YeeTah Insurance Broker Limited (company) — wholly owned subsidiary and primary operating entity
• Huihe Zheng (person) — principal shareholder, Chairman, and CEO
• Hong Kong (location) — primary market for operations
• Mainland China (location) — market for services and source of political risk
• SEC (regulator) — Securities and Exchange Commission
• Financial Industry Regulatory Authority (regulator) — approved 2024 Forward Stock Split
• Florida Department of State (regulator) — filed Articles of Amendment

FAQ

Risk Factors

• Political Uncertainty in Hong Kong and Mainland China [high — regulatory]: The company's primary operations are in Hong Kong, making it susceptible to political instability and regulatory changes in both Hong Kong and Mainland China. This could impact business operations, customer confidence, and the overall economic environment.
• Customer and Personnel Attraction/Retention [medium — operational]: The ability to attract and retain both customers and qualified personnel is critical for QDM International's insurance brokerage business. Competition in the financial services sector can make this challenging, potentially impacting service quality and growth.
• Competition in Insurance and Retirement Services [medium — market]: The insurance and MPF/ORSO services market in Hong Kong is competitive. QDM International's success depends on its ability to differentiate its offerings and maintain a competitive edge against established players.

Industry Context

QDM International operates in the insurance brokerage sector, primarily through its Hong Kong subsidiary, YeeTah. This industry is characterized by a wide range of products including life, medical, and general insurance, alongside retirement services like MPF/ORSO. The competitive landscape in Hong Kong is robust, requiring strong client relationships and regulatory compliance.

Regulatory Implications

The company's operations in Hong Kong expose it to specific regulatory frameworks governing insurance and financial services. Changes in these regulations, or political shifts impacting the region, could necessitate adjustments in business practices and compliance strategies.

What Investors Should Do

1. Monitor political and economic developments in Hong Kong and Mainland China.
2. Analyze the sustainability of the recent revenue and profit growth.
3. Evaluate the company's strategy for customer and talent acquisition/retention.

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reported significant revenue and net income growth, with cash and cash equivalents increasing substantially.
• 2025-03-31: End of First Quarter 2025 — Reported cash and cash equivalents of $8,557,305, serving as the prior period's comparison point.
• 2024-06-30: End of Second Quarter 2024 — Reported revenue of $964,265 and net income of $459,380, providing a baseline for significant year-over-year growth.
• 2025-08-14: Shares of Common Stock Outstanding Date — Indicates 291,563,930 shares of common stock outstanding as of this date.

Glossary

MPF/ORSO

Mandatory Provident Fund (MPF) and Occupational Retirement Schemes Ordinance (ORSO) are retirement protection schemes in Hong Kong. (QDM's subsidiary, YeeTah, is licensed to provide services related to these schemes, contributing to its revenue streams.)

Reverse Acquisition

A transaction where a private operating company acquires a public shell company, with the private company's shareholders gaining control of the combined entity. (Explains the historical structure of QDM International Inc., where a private operating company (QDM BVI) was acquired by a public shell.)

Share Exchange Agreement

An agreement detailing the terms under which one company's shares are exchanged for another's. (This agreement was central to the reverse acquisition, leading to QDM International Inc. acquiring QDM BVI and its subsidiaries.)

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income. (QDM International Inc. has an accumulated deficit of $1,406,806 as of June 30, 2025, indicating historical unprofitability despite recent gains.)

Year-Over-Year Comparison

QDM International Inc. has demonstrated exceptional growth compared to the prior year's second quarter. Revenue has surged by 272.8% to $3,594,997, and net income has increased by an even more impressive 378.1% to $2,196,305. This dramatic improvement is supported by a significant increase in gross profit, outpacing the rise in operating expenses. The company's cash position has also strengthened considerably, reflecting robust operating cash flow. No new significant risks were explicitly detailed in this filing compared to the general risks previously identified.

Key Financial Figures

• $0.0001 — (g) of the Act: Common Stock, par value $0.0001 Indicate by check mark whether the re

Filing Documents

• ea0252998-10q_qdminter.htm (10-Q) — 348KB
• ea025299801ex31-1_qdminter.htm (EX-31.1) — 11KB
• ea025299801ex31-2_qdminter.htm (EX-31.2) — 11KB
• ea025299801ex32-1_qdminter.htm (EX-32.1) — 4KB
• ea025299801ex32-2_qdminter.htm (EX-32.2) — 4KB
• 0001213900-25-076780.txt ( ) — 2712KB
• qdmi-20250630.xsd (EX-101.SCH) — 21KB
• qdmi-20250630_cal.xml (EX-101.CAL) — 22KB
• qdmi-20250630_def.xml (EX-101.DEF) — 117KB
• qdmi-20250630_lab.xml (EX-101.LAB) — 212KB
• qdmi-20250630_pre.xml (EX-101.PRE) — 127KB
• ea0252998-10q_qdminter_htm.xml (XML) — 180KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 20 Item 4.

Controls and Procedures

Controls and Procedures 20

– OTHER INFORMATION

PART II – OTHER INFORMATION 21 Item 1.

Legal Proceedings

Legal Proceedings 21 Item 1A.

Risk Factors

Risk Factors 21 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 3. Defaults Upon Senior Securities 21 Item 4. Mine Safety Disclosures 21 Item 5. Other Information 21 Item 6. Exhibits 22

SIGNATURES

SIGNATURES 23 i CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (this "Report"), including, without limitation, statements under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations," includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements can be identified by the use of forward-looking terminology, including the words "believes," "estimates," "anticipates," "expects," "intends," "plans," "may," "will," "potential," "projects," "predicts," "continue," or "should," or, in each case, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations. These statements are based on management's current expectations, but actual results may differ materially due to various factors, including, but not limited to: the impact of political uncertainty and social unrest in Hong Kong and laws, rules and regulations of the Chinese government aimed at addressing such unrest; the market for our services in Hong Kong and Mainland China; our expansion and other plans and opportunities; our future financial and operating results, including revenues, income, expenditures, cash balances and other financial items; current and future economic and political conditions in Hong Kong and Mainland China; the future growth of the Hong Kong insurance industry as a whole and the professional insurance intermediary sector in particular; our ability to attract customers, further enhance our brand recognition; our ability to hire and retain qualified management personnel and key employees in order to enable them to develop our business; changes in applicable laws or regulations in Hong Kong related to or that

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements QDM INTERNATIONAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30 AND MARCH 31, 2025 June 30, 2025 March 31, 2025 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 12,409,685 $ 8,557,305 Accounts receivable 667,212 1,702,217 Prepaid expenses and deposits 179,792 144,768 Deferred offering cost 40,000 — Total current assets 13,296,689 10,404,290 Right of use assets – operating lease 158,522 185,662 Long-term prepaid expenses and deposits 26,733 86,316 Property and equipment, net 22,267 33,030 Total assets $ 13,504,211 $ 10,709,298 LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities: Accounts payable & accrued liabilities $ 479,003 $ 286,074 Operating lease liabilities - current 91,516 115,125 Income tax payable 1,839,426 1,395,418 Total current liabilities 2,409,945 1,796,617 Operating lease liabilities – non current 56,663 71,383 Total liabilities 2,466,608 1,868,000 Shareholders' equity: Preferred stock, $ 0.0001 par value, 30,000,000 shares authorized, 6,545,386 and 6,545,386 issued and outstanding as of June 30, 2025 and March 31, 2025, respectively 654 654 Common stock, $ 0.0001 par value, 700,000,000 shares authorized, 291,563,930 shares issued and 291,563,930 shares outstanding as of June 30, 2025 and March 31, 2025, respectively 3,519 3,519 Treasury stock, 4,730 and 4,730 shares at cost ( 60,395 ) ( 60,395 ) Additional paid-in capital 12,500,631 12,500,631 Accumulated deficit ( 1,406,806 ) ( 3,603,111 ) Total shareholders' equity 11,037,603 8,841,298 Total liabilities and shareholders' equity $ 13,504,211 $ 10,709,298 See accompanying notes to condensed consolidated

financial statements

financial statements. 1 QDM INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND 2024 For the Three Months Ended June 30, 2025 For the Three Months Ended June 30, 2024 (Unaudited) (Unaudited) Revenue $ 3,594,997 $ 964,265 Cost of sales 638,178 178,632 Gross profit 2,956,819 785,633 Operating expenses General & administrative expenses 367,194 248,779 Total operating expenses 367,194 248,779 Income from operations 2,589,625 536,854 Other income (expense) Finance costs ( 1,718 ) ( 977 ) Other income, net 52,406 9,784 Total other income 50,688 8,807 Income before income taxes 2,640,313 545,661 Current income tax expense 444,008 86,281 Net income $ 2,196,305 $ 459,380 Earnings per share of common stock: Basic earnings per share $ 0.008 0.002 Diluted earnings per share $ 0.008 0.002 Weighted average basic & diluted shares outstanding: Preferred 6,545,386 545,386 Common 291,559,200 291,559,200 See accompanying notes to condensed consolidated

financial statements

financial statements. 2 QDM INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND 2024 Preferred Stock Common Stock Treasury Stock Preferred Stock Amount Common Stock Amount Treasury Amount Additional Paid-in Capital Accumulated Deficit Total March 31, 2024 545,386 291,563,930 ( 4,730 ) $ 54 $ 3,519 ( 60,395 ) $ 11,901,231 $ ( 8,426,449 ) $ 3,417,960 Net income — — — — — — — 459,380 459,380 June 30, 2024 (Unaudited) 545,386 291,563,930 ( 4,730 ) $ 54 $ 3,519 ( 60,395 ) $ 11,901,231 $ ( 7,967,069 ) $ 3,877,340 March 31, 2025 6,545,386 291,563,930 ( 4,730 ) $ 654 $ 3,519 ( 60,395 ) $ 12,500,631 $ ( 3,603,111 ) $ 8,841,298 Net income — — — — — — — 2,196,305 2,196,305 June 30, 2025 (Unaudited) 6,545,386 291,563,930 ( 4,730 ) $ 654 $ 3,519 ( 60,395 ) $ 12,500,631 $ ( 1,406,806 ) $ 11,037,603 See accompanying notes to condensed consolidated

financial statements

financial statements. 3 QDM INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND 2024 June 30, 2025 June 30, 2024 (Unaudited) (Unaudited) Cash flows from operating activities: Net income $ 2,196,305 $ 459,380 Adjustments to reconcile net income to net cash used in operating activities: Depreciation 10,763 10,492 Non-cash lease expenses 27,140 27,625 Changes in working capital: Accounts receivable 1,035,005 ( 483,510 ) Prepaid expenses ( 35,024 ) ( 10,244 ) Long-term prepaid expenses 59,583 — Accounts payable & accrued liabilities 192,929 133,650 Income tax payable 444,008 86,281 Operating lease liabilities ( 38,329 ) ( 28,241 ) Net cash provided by operating activities 3,892,380 195,433 Cash flows from investing activities: None during the period — — Net cash used in investing activities — — Cash flows from financing activities: Net proceeds from related parties — 129,056 Payment for offering cost ( 40,000 ) ( 37,500 ) Net cash (used in) provided by financing activities ( 40,000 ) 91,556 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — NET INCREASE IN CASH AND CASH EQUIVALENTS 3,852,380 286,989 CASH AND EQUIVALENTS BEGINNING OF PERIOD $ 8,557,305 $ 5,158,223 CASH, END OF PERIOD 12,409,685 5,445,212 SUPPLEMENTAL DISCLOSURES: Cash paid for interest $ — $ — Cash paid for income taxes $ — $ — See accompanying notes to condensed consolidated

financial statements

financial statements. 4 QDM International Inc. Notes to Condensed Consolidated Financial Statements June 30, 2025 and 2024 1. Organization and principal activities QDM International Inc. ("QDM," and collectively with its subsidiaries, the "Company") was incorporated in Florida in March 2020 and is the successor to 24/7 Kid Doc, Inc. ("24/7 Kid"), which was incorporated in Florida in November 1998. The Company conducts its business through an indirectly wholly owned subsidiary, Hong Kong YeeTah Insurance Broker Limited (formerly known as YeeTah Insurance Consultant Limited, "YeeTah"), a licensed insurance brokerage company located in Hong Kong, China. YeeTah sells a wide range of insurance products, consisting of two major categories: (1) life and medical insurance, such as individual life insurance; and (2) general insurance, such as automobile insurance, commercial property insurance, liability insurance, homeowner insurance. In addition, as a Mandatory Provident Fund ("MPF") Intermediary, YeeTah is also licensed to provide its customers with assistance on account opening and related services under the MPF and the Occupational Retirement Schemes Ordinance schemes ("ORSO") in Hong Kong, both of which are retirement protection schemes set up for employees. On October 21, 2020, the Company entered into a share exchange agreement (the "Share Exchange Agreement") with QDM Holdings Limited, a BVI company ("QDM BVI"), and Huihe Zheng, the sole shareholder of QDM BVI (the "QDM BVI Shareholder"), who is also the Company's principal shareholder, Chairman and Chief Executive Officer, to acquire all the issued and outstanding capital stock of QDM BVI in exchange for the issuance to the QDM BVI Shareholder 30,000 shares ( 900,000 shares before the Reverse Split (as defined below)) of a newly designated Series C Convertible Preferred Stock, par value $ 0.0001 per share (the "Series C Preferred Stock"), with each Series C Preferred Stock initially being convertible into

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