QDM International Inc. reported its financial results for the three and six months ended September 30, 2024, revealing a mixed performance compared to the previous fiscal period. The company generated revenue of $1,020,672 for the three months ended September 30, 2024, a decrease of approximately $143,000 or 12.3% from $1,163,726 in the same period of 2023. For the six months, revenue fell significantly to $1,998,937, down 54.9% from $4,437,013 in the prior year. This decline in revenue was primarily attributed to lower referral fees following regulatory changes in Hong Kong.

Despite the drop in revenue, QDM International saw an increase in gross profit for the three months ended September 30, 2024, which rose to $865,862 from $450,090 in the same period of 2023. The gross profit margin improved significantly, increasing by approximately 46.2%, due to a substantial decrease in cost of sales, which fell by 78.3% to $154,810. Income from operations also increased to $592,100, compared to $326,167 in the prior year.

Net income for the three months ended September 30, 2024, was $488,706, an increase of 81.9% from $268,612 in the same period of 2023. However, for the six months, net income decreased to $948,086 from $1,211,254, reflecting a decline of 21.7%. The company’s general and administrative expenses surged by 120.9% for the three months, primarily due to increased hiring and professional fees.

As of September 30, 2024, QDM International reported total current assets of $6,795,353, up from $5,445,238 as of March 31, 2024. Total assets increased to $7,049,264, while total current liabilities rose to $2,634,088. Shareholders’ equity improved to $4,366,046, compared to $3,417,960 in the previous period.

Strategically, the company underwent significant changes, including the sale of QDMS on October 4, 2023, for no consideration, recognizing a gain of $33,165. Additionally, a public offering in March 2023 raised gross proceeds of $2,339,937. The company executed a 10-for-1 forward stock split effective April 5, 2024, increasing the total number of issued shares to 291,563,930.

QDM International continues to focus on its insurance brokerage services in Hong Kong, with a commitment to maintaining compliance with local regulatory requirements. The company is also addressing internal control weaknesses by hiring a qualified Chief Financial Officer.