HONG KONG, July 15, 2026 (GLOBE NEWSWIRE) -- QDM International Inc. ("QDM" or the "Company")(OTCQB: QDMI), a Hong Kong-based insurance broker operating through its wholly-owned subsidiary, Hong Kong YeeTah Insurance Broker Limited ("YeeTah"), today announced the completion of the acquisition of 100% of the equity interests in MCM Wealth Management (Hong Kong) Limited ("MCM"), a licensed insurance brokerage firm in Hong Kong.
MCM holds an insurance brokerage license issued by the Hong Kong Insurance Authority, authorizing it to conduct both general insurance business and investment-linked insurance business, where the policy benefits or cash value are tied to the performance of specified investment funds, underlying assets, or market indices.
The Company expects the additional insurance brokerage license, together with MCM's established client base and resources, to broaden the Company's portfolio of insurance products and enable it to offer more customized solutions tailored to evolving customer needs. The acquisition is also expected to enhance its competitiveness by strengthening its bargaining power with insurance companies. With the addition of MCM, the Company plans to deepen client coverage, expand its market footprint, optimize its internal team structure, and recalibrate its sales strategy. Supported by the newly acquired license and MCM's capabilities, the Company believes it will unlock additional growth opportunities and further strengthen its strategic position in the insurance brokerage market.
QDM's Chief Executive Officer and Chairman of the Board, Mr. Huihe Zheng, stated: "This acquisition represents a step forward in optimizing our business portfolio and reinforcing our long-term strategic positioning. Since the beginning of 2025, we have delivered outstanding financial performance: Revenue from insurance brokerage services increased by approximately 179.2% for the fiscal year ended March 31, 2026 as compared to the same period of 2025. Revenue from referral business increased by approximately 25.5% for the fiscal year ended March 31, 2026, as compared to the fiscal year ended March 31, 2025. Our balance sheet remains robust as of March 31, 2026 - cash balances stand at over USD 10 million with zero debt. The margin compression experienced during the regulatory transition period is now fully behind us; referral fee levels have normalized, and our actual gross margin stood at approximately 53.6% for the fiscal year ended March 31, 2026. We believe this high-quality growth reflects our successful integration of resources, improvement of organizational capabilities, progress in channel expansion, and the strengthening of client relationships, each evidencing our solid operational fundamentals."
"We believe the acquisition of MCM will strengthen our operational resilience and long-term growth potential within Hong Kong's stringent regulatory framework while reinforcing our commitment to prudent, compliant, and sustainable growth. Drawing on MCM's existing client resources, distribution network and insurance product portfolio, we intend to continuously deepen our presence in the high-growing medical and healthcare insurance products, optimize operational efficiency and seize development opportunities arising from the expansion of customer base. Supported by our strong operating performance and this strategic acquisition, we believe we are well positioned to strengthen our competitive position and deliver sustainable long-term value to shareholders."
About QDM International Inc.
QDM International Inc. (OTCQB: QDMI) is a holding company that conducts its insurance brokerage business in Hong Kong through its wholly owned subsidiary, YeeTah. YeeTah is an independent, licensed insurance broker offering approximately 629 insurance products, including life, medical, auto, property, liability, and homeowner coverage, through partnerships with 24 insurance companies as of March 31, 2026. YeeTah is also licensed as a Mandatory Provident Fund ("MPF") intermediary, providing customers with account-opening and related services under Hong Kong's MPF and Occupational Retirement Schemes Ordinance ("ORSO"). We presently serve only Hong Kong residents and mainland visitors; MPF and ORSO services are solely for Hong Kong residents. The Company generates revenue primarily through commissions paid by insurance companies. For more information, please visit https://www.QDMi.net.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company bases these forward-looking statements on its expectations and projections about future events, which the Company derives from the information currently available to it. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: the Company's ability to attract and retain customers, including mainland Chinese visitors to Hong Kong; its ability to maintain and expand relationships with insurance company partners and obtain favorable commission rates; changes in laws, regulations, or regulatory guidance in Hong Kong, including those issued by the Insurance Authority, that could impact the Company's business or commission structures; the impact of political, economic, and social conditions in Hong Kong and mainland China; the Company's ability to recruit and retain qualified sales professionals and key management personnel; the competitive environment of the insurance brokerage industry in Hong Kong; and the Company's ability to complete a proposed public offering and listing on a national securities exchange. These and other factors may cause the Company's actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The Company is not obligated to update or revise any forward-looking statement publicly, whether as a result of new information, future events, uncertainties, or assumptions, except as required by applicable law. The forward-looking events discussed in this press release may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about the Company. For a more detailed discussion of risk factors, please refer to the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section of the Company's annual report on Form 10-K.
Investor Relations Contact
Investor Relation Office
Tel: 852 8491 2508
Email: ir@QDMi.com
