# UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

# FORM 10-QSB

| | [X] | Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the
quarterly period ended September 30, 2002
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------

| | [   ] | Transition report pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934 for the
transition period from ____________________ to ____________________
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

Commission File
Number 000-7619

Asia
SuperNet Corporation
(Exact name of registrant as specified in its charter)

Colorado   
              
              
              
              
              
              
              
        93-0636333
              
              
              
    (State or other jurisdiction of    
              
              
              
              
             
   (I.R.S. Employer Identification No.)
              
              
              
     incorporation or organization)

1888
Sherman Street, Suite 500, Denver, CO 80203
(Address of Principal Executive Offices)   
   (Zip Code)

1700
Lincoln Street, Suite 3100, Denver, CO 80203
(Former address of principal executive offices)

Registrant's
telephone number, including area code:     (303)
894-7971

Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.     Yes 
[X]       No  [  ]

The number of shares of the
registrants common stock as of September 30, 2002: 110,494,293
shares.

Transitional Small
Business Disclosure Format:     Yes
[   ]  No   [X]

---

# ASIA
SUPERNET CORPORATION
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2002
TABLE OF CONTENTS

`PAGE


PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

(a)      Consolidated Balance Sheets                                        3
(b)      Consolidated Statements of Operations                              4
(c)      Consolidated Statements of Cash Flows                              5
(d)      Consolidated Statements of Shareholders' Equity                    6
(e)      Notes to Financial Statements                                      7

Item 2.  Management's Discussion and Analysis
         or Plan of Operations                                             12

Item 3.  Controls and Procedures                                           12

Item 4.  Risks                                                             12

PART II. OTHER INFORMATION                                                 13

Item 1.  Legal Proceedings                                                 13

Item 2.  Changes in Securities and Use of Proceeds                         13

Item 3.  Defaults On Senior Securities                                     13

Item 4.  Submission of Items to a Vote                                     13

Item 5.  Other Information                                                 13

Item 6.
(a)      Exhibits                                                          13
(b)      Reports on Form 8K                                                13

SIGNATURES                                                                 14

CERTIFICATIONS                                                             15`

---

# ASIA
SUPERNET CORPORATION
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2002 (un-audited) AND DECEMBER 31, 2001

`September 30,   December 31,
                                                             2002           2001
                                                         (un-audited)
                                                        --------------   ------------
ASSETS
     Current assets
Cash .................................................   $   7,085    $   8,567
Prepayments and deposits .............................       1,717       18,311
                                                         ---------    ---------
      Total current assets ...........................       8,802       26,878

Investment in related company ........................         201          201

Property and equipment
      Office furniture and equipment .................      93,842       98,417
      Less-Accumulated depreciation ..................      51,909       41,958
                                                         ---------    ---------
       Net office furniture and equipment ............      41,933       56,459

Intangible assets
      Research and development .......................     126,996      126,996
      Amortization of research and development .......      18,082       18,082
                                                         ---------    ---------
      Net research and development ...................     108,914      108,914
                                                         ---------    ---------

Total  assets ........................................   $ 159,850    $ 192,452
                                                         =========    =========

LIABILITIES AND SHAREHOLDERS' EQUITY
     Current liabilities
Accounts payable .....................................   $  40,154    $  74,890
Accrued expenses .....................................      34,515       58,770
Note payable .........................................      27,176         --
Deferred income ......................................      10,885       10,885
Loans from director, shareholders
   and related parties ...............................     734,183      720,827
                                                         ---------    ---------
       Total current liabilities .....................     846,913      865,372

     Shareholders' equity (deficit)
Preferred stock (par value $0.001) 300,000,000 shares
  authorized, none issued
Common stock (par value $0.001) 900,000,000 shares
 authorized; 110,494,293 at September 30, 2002 and
 December 31, 2001, issued and outstanding ...........     110,494      110,494
Paid in Capital ......................................       2,104        2,104
Cumulative comprehensive income ......................      12,893       12,893
Deficit accumulated during development stage .........    (812,554)    (798,411)
                                                         ---------    ---------

     Total shareholders' equity (deficit) ............    (687,063)    (672,920)
                                                         ---------    ---------

     Total liabilities and shareholders' equity
     (deficit) .......................................   $ 159,850    $ 192,452
                                                         =========    =========`

The
accompanying notes to financial statements are an integral part of this
statement

---

# ASIA
SUPERNET CORPORATION
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS AND THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001 AND
FROM INCEPTION MAY 12, 1999 TO SEPTEMBER 30, 2002
(un-audited)

`For the nine   For the nine     For the three     For the three   From inception
                                         months ended   months ended     months ended      months ended     May 12, 1999
                                         September 30,  September 30,    September 30,     September 30,    to September
                                             2002           2001             2002              2001           30, 2002
                                        -------------   -------------    -------------     -------------   --------------

REVENUES ...........................   $        --      $     120,344    $        --      $     102,806    $     162,675
COST OF REVENUES ...................            --             26,814             --             15,697           76,863
                                       -------------    -------------    -------------    -------------    -------------
GROSS INCOME .......................            --             93,530             --             87,109           85,812

EXPENSES
  Salaries and related costs .......         (22,345)         117,477             --             42,593          236,558
  Rent .............................           4,536           38,142             --              8,890           69,077
  Research and development .........           5,140             --               --               --             41,087
  Office ...........................           4,519           34,602              798           13,247           59,092
  Travel and entertainment .........           2,975           36,587             --             23,391           90,559
  Audit ............................            --             17,814             --             17,814           23,434
  Depreciation .....................          14,527           14,003            4,576            4,576           50,498
  Legal and professional
   fees ............................           1,903           44,687           (5,016)          27,856          100,809
  Telephone ........................           2,502            8,585             --              3,307           24,095
                                       -------------    -------------    -------------    -------------    -------------
Total expenses .....................          13,757          311,897              358          141,674          695,209
                                       -------------    -------------    -------------    -------------    -------------

Loss from operations before interest
and income taxes ...................         (13,757)        (218,367)            (358)         (54,565)        (609,397)
Interest expense ...................             386             --               --               --                386
Income taxes .......................            --               --               --               --               --
                                       -------------    -------------    -------------    -------------    -------------
Loss before acquisition ............         (14,143)        (218,367)            (358)         (54,565)        (609,783)

Loss on acquisition October 13,
2000-net liabilities acquired ......            --               --               --               --           (202,771)
                                       -------------    -------------    -------------    -------------    -------------

Net loss ...........................         (14,143)        (218,367)            (358)         (54,565)        (812,554)

Comprehensive income-foreign
currency translation adjustment ....            --               --               --               --             12,893
                                       -------------    -------------    -------------    -------------    -------------

Comprehensive loss .................   $     (14,143)   $    (218,367)   $        (358)   $     (54,565)   $    (799,661)
                                       =============    =============    =============    =============    =============

Net loss per share-basic and
diluted ............................   $      (0.000)   $      (0.002)   $      (0.000)   $      (0.000)   $      (0.007)
                                       =============    =============    =============    =============    =============
Weighted average number of common
shares outstanding .................     110,494,293      110,383,182      110,494,293      110,383,182      110,494,293
                                       =============    =============    =============    =============    =============`

The
accompanying notes to financial statements are an integral part of this
statement

---

# ASIA
SUPERNET CORPORATION
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001 AND
FOR THE PERIOD FROM INCEPTION MAY 12, 1999 TO SEPTEMBER 30, 2002
(un-audited)

`For the nine   For the nine   From inception
                                                months ended   months ended   May 12, 1999 to
                                                September 30,  September 30,     September
                                                    2002           2001           30, 2002
                                                ------------   ------------   ----------------
CASH FLOWS FROM OPERATING ACTIVITIES
     Net loss ................................   $ (14,143)     $(218,367)     $(812,554)
     Adjustment to reconcile net loss to net
      cash
        Loss on acquisition October 13, 2000
         net-liabilities acquired and
         adjustment for liabilities not
         required to be paid in 2001 .........        --             --          202,771
        Depreciation and amortization ........      14,527         29,849         68,580
        Shares issued for services ...........        --           35,630         37,729
(Increase) decrease in operating assets
       Prepaid and deposits ..................      16,594          6,935         (1,717)
Increase (decrease) in operating liabilities
       Accounts payable ......................      (7,560)        29,091         (6,796)
       Accrued expenses ......................     (24,256)        (8,047)        26,327
       Deferred income .......................        --           10,885         10,885
                                                 ---------      ---------      ---------
Cash flows used in operating activities ......     (14,838)      (114,024)      (474,775)

CASH FLOWS USED IN INVESTING ACTIVITIES
      Purchase of furniture and equipment ....        --          (10,912)       (90,433)
      Investment in related company ..........        --             --             (201)
      Purchase of research and development ...        --             --         (126,996)
                                                 ---------      ---------      ---------
Cash flow used in investing activities .......        --          (10,912)      (217,630)

CASH FLOWS FROM FINANCING ACTIVITIES
     Increase in loan from shareholders ......      13,356        114,952        661,518
     Cash acquired in acquisition October 13,
      2000 ...................................        --             --           25,062
     Shares issued for cash ..................        --             --               17
                                                 ---------      ---------      ---------
Cash flows from financing activities .........     (13,356)       114,952        686,597

Effect of cumulative translation adjustment ..        --             --           12,893
                                                 ---------      ---------      ---------
Cash flows (used for) from all activities ....      (1,482)        (9,984)         7,085

Cash balance at beginning of period ..........       8,567         31,948           --
                                                 ---------      ---------      ---------
Cash balance at end of period ................   $   7,085      $  21,964      $   7,085
                                                 =========      =========      =========
Cash paid for:
    Interest expense .........................   $     386      $    --        $     386
    Taxes ....................................        --             --             --
Supplemental disclosure of non-cash activities
    Shares issued in payment of loan .........        --           10,000         10,000
    Shares issued in payment of services .....        --           35,630        150,000`

The
accompanying notes to financial statements are an integral part of this
statement

---

# ASIA
SUPERNET CORPORATION
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY
FOR THE PERIOD FROM INCEPTION MAY 12, 1999 TO SEPTEMBER 30, 2002

`Deficit
                                              Common stock                                accumulated
                                   ------------------------------------       Compre-       during          Total
                                   Number of       Par value    Discount      hensive     development    Shareholders'
                                     shares         $(0.001)    from par      income         stage          equity
                                   ---------       ---------    --------      -------     -----------    -------------
Common stock issued for
acquisition of Chinanet Group
at par value as of May 12,
1999 ...........................   106,683,429  $   106,683   $  (106,666) $      --     $      --     $        17
Translation adjustment .........          --           --            --         11,164          --          11,164
Net loss from inception May
12, 1999 to December 31, 1999 ..          --           --            --           --          (1,879)       (1,879)
                                   -----------  -----------   -----------  -----------   -----------   -----------
Balance at December 31, 1999 ...   106,683,429      106,683      (106,666)      11,164        (1,879)        9,302
Effect of exchange
reorganization October
13, 2000 .......................     2,660,864        2,661        (2,661)        --            --            --
Common stock issued for
services provided and billed
and for future services in
the amount of $150,000 .........       150,000          150       149,850         --            --         150,000
Deduction for deferred
services .......................          --           --         (83,053)        --            --         (83,053)
Translation adjustment .........          --           --            --          5,488          --           5,488
Net loss .......................          --           --            --           --        (637,347)     (637,347)
                                   -----------  -----------   -----------  -----------   -----------   -----------
Balance at December 31, 2000 ...   109,494,293      109,494       (42,530)      16,652      (639,226)     (555,610)
Shares issued in payment of
shareholder's loan .............     1,000,000        1,000         9,000         --            --          10,000
Services received for shares
issued in prior period .........          --           --          35,634         --            --          35,634
Translation adjustment .........          --           --            --         (3,759)         --          (3,759)
Net loss .......................          --           --            --           --        (159,185)     (159,185)
                                   -----------  -----------   -----------  -----------   -----------   -----------
Balance at December 31, 2001 ...   110,494,293      110,494         2,104       12,893      (798,411)     (672,920)

Net income (un-audited) ........          --           --            --           --         (14,143)      (14,143)
                                   -----------  -----------   -----------  -----------   -----------   -----------

Balance at September 30, 2002 ..   110,494,293  $   110,494   $     2,104  $    12,893   $  (812,554)  $  (687,063)
                                   ===========  ===========   ===========  ===========   ===========   ===========`

The
accompanying notes to financial statements are an integral part of this
statement

---

# ASIA
SUPERNET CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(UNAUDITED)

## ORGANIZATION
AND PRINCIPLE ACTIVITY

Asia SuperNet Corporation
(the Company), formerly known as Powersoft Technologies Inc.
(Powersoft) was originally organized in California on March 24, 1958
as Time Save Markets, Inc. From 1958 to 1994, the Company effected numerous name
changes and engaged in businesses other than one it is presently engaged. In
August 1994, the Company changed its corporate domicile to Delaware. In November
1994, the Company, then known as Alpine International Corp. changed its name to
Heng Fai China Industries, Inc. On March 31, 1998, Heng Fai China Industries,
Inc. changed its name to Powersoft Technologies Inc.

On November 10, 1999, the
shareholders of Powersoft approved the reincorporation of Powersoft by changing
the state of incorporation from Delaware to Colorado by adoption of an Agreement
and Plan of Merger pursuant to which Powersoft has merged with and into Asia
SuperNet Corporation, a Colorado Corporation. The shareholders of the Company
approved the Agreement and Plan of Merger on October 1, 1999 (the
Reincorporation Merger). The Reincorporation Merger was effective as of December
22, 1999 when 15,559,542 outstanding shares of Powersoft common stock were
converted into 522,338 shares of the Companys common stock. The number of
shares converted into the Companys stock were rounded up to the next whole
share.

On January 18, 1999, the
Company entered into an agreement with SAR Trading Limited (SAR),
100% owned by Fai H. Chan who beneficially owned 79% of the Company, wherein SAR
agreed to buy and the Company agreed to sell all of its interests in all of its
subsidiaries. In consideration of the assumption of the liabilities by SAR, the
Company issued two notes payable to SAR in the amounts of $1,000,000 and
$3,838,000. The $1,000,000 note was immediately convertible into 20,000,000
common shares (reduced to 667,000 when the Reincorporation Merger took place) of
the Company at a fixed rate of $0.05 per share. The $3,838,000 note was reduced
to $2,472,722 with assignment of an amount due from a related party of
$1,365,278.

In June 2000 the promissory
note payable to SAR in the amount of $2,472,722 was converted into 1,471,859
shares of the Companys common stock.

Due to the above-mentioned
sale of all of the investments, the Company was an inactive shell at December
31, 1999.

On October 13, 2000, the
Company acquired all of the issued and outstanding common stock of ChinaNet
Communications, Ltd., a British Virgin Island corporation
(ChinaNet), that owns 100% of Beijing Star Gain Data Communication
Systems Co. Limited (Beijing Star) a Peoples Republic of China
(PRC) company, in exchange for 106,683,429 shares of its common
stock under the terms of an agreement dated August 1, 2000.

---

# ASIA
SUPERNET CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUTED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(UNAUDITED)

The details of the
Companys holdings and their principal activities at March 31, 2002 are
summarized below.

`Date of
                                acquisition or    Place of      Equity interest
          Name                    formation     incorporation   Direct Indirect   Activity
------------------------------  --------------  --------------  ---------------   --------
Chinanet Communication Limited  May 18, 2000    British Virgin    100%            Inactive
(Chinanet BVI)                                  Islands
Chinanet Communication Limited  May 12, 1999    Hong Kong          26%     74%    Inactive
(Chinanet HK)
Chinanet Communication Limited  October 12,     Samoa             100%            Inactive
(Chinanet Samoa)                2000
Beijing Star Gain Data          December 7,     Peoples                   100%    Communication
Communication System Co.        1999            Republic of                       equipment
Limited (Beijing Star)                          China
China-Antiflooding System       June 2001       Samoa              50%            Investment
Monitor Limited                                                                   holding
China Environmental System      June 2001       Samoa              50%            Investment
Monitor                                                                           holding
Beijing Stargain Data           October 2001    Peoples                    50%    Sales of
Communication Technology Ltd.                   Republic of                       computer
                                                China                             equipment
Beijing Stargain Great Exploit  October 2001    Peoples                    50%    Inactive
Environmental Engineering                       Republic of
Insturment Co. Ltd.                             China`

Beijing Star, the operating
company, has researched, developed and intends to manufacture and market a
handheld personal digital assistant (PDA), which has been designed to function
through Chinas existing paper network infrastructure. Beijing Stars
goal is to convert a market of approximately 80 million traditional pager
customers in China to its system. A base station receives messages from the PDA
and sends the messages to the Management Control Center (MCC) through a local
digital data network. The MCC is interconnected with the base station, paging
operators and content providers. The information requested by the PDA owner is
broadcast through the paging network. The processing of each command is
accomplished through the use of proprietary software, which receives the
requests and responds as needed. Beijing Star has developed a unique system to
manage and process this data. Patents for the PDA and base station technology in
China and a copyright for the MCC software in China have been issued.

The Companys business
is characterized by rapid technological change, new product and service
development and evolving industry standards. Inherent in the Companys
business are various risks and uncertainties, including limited operating
history, uncertain profitability, history of losses and risks associated with
the ability to raise additional capital.

The Company has its only
active operation in the Peoples Republic of China (PRC) that maybe
subject to significant risks not typically associated with companies in North
America. The Companys operations could be adversely affected by changes in
the political and social conditions, changes in government policies with respect
to laws and regulations, anti-inflationary measures, currency conversion,
remittance abroad and rates and methods of taxation.

---

# ASIA
SUPERNET CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUTED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(UNAUDITED)

## BASIS OF
PRESENTATION

On October 13, 2000, the
Company acquired all of the issued and outstanding common stock of ChinaNet that
owns 100% of Beijing Star in exchange for 106,683,429 shares of its common stock
under the terms of an agreement dated August 1, 2000. Prior to the issuance of
the shares, the Company had 2,660,864 shares of common stock outstanding. As a
result of the exchange, the shareholders of ChinaNet own 97.6% of the common
stock outstanding of the Company after the issuance of the 106,683,429 shares.

The acquisition of ChinaNet
by the Company on October 13, 2000 has been accounted for as a purchase and
treated as a reverse acquisition since the former owners of ChinaNet controlled
over 97% of the total shares of Common Stock of the company outstanding
immediately following the acquisition.

On this basis, the
historical financial statements prior to October 13, 2000 have been restated to
be those of the accounting acquirer ChinaNet. The historical stockholders
equity prior to the reverse acquisition has been retroactively restated (a
recapitalization) for the equivalent number of shares received in the
acquisition after giving effect to any difference in par value of the
issuers and acquirers stock with an offset to discount from
par value. The original 2,660,864 shares of common stock outstanding prior
to the exchange reorganization have been reflected as an addition in the
stockholders equity account of the Company on October 13, 2000.

The financial statements
have been prepared in accordance with generally accepted accounting principles
in the United States of America. This basis of accounting differs from that used
in the statutory financial statements of the British Virgin Islands and Hong
Kong and the PRC, which were prepared in accordance with generally accepted
accounting principles in Hong Kong and the accounting principles and the
relevant financial regulations applicable to enterprises with foreign
investments as established by the Ministry of Finance of China respectively.

## INTERIM
FINANCIAL INFORMATION

The financial statements of
the Company as of September 30, 2002 and for the nine months and three months
ended September 30, 2002 and 2001 and from inception (May 12, 1999) through
September 30, 2002, and related footnote information are un-audited. All
adjustments (consisting only of normal recurring adjustments) have been made
which, in the opinion of management, are necessary for a fair presentation.
Results of operations for the nine months and three months ended September 30,
2002 and 2001 and from inception (May 12, 1999) through September 30, 2002 are
not necessarily indicative of the results that may be expected for any future
period. The balance sheet at December 31, 2001 was derived from audited
financial statements. Certain information and footnote disclosures, normally
included in financial statements prepared in accordance with accounting
principles generally accepted in the United States of America, have been
omitted. These financial statements should be read in conjunction with the
audited financial statements and notes for the period from inception (May 12,
1999) to December 31, 2001.

## SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES

|a) | BASIS OF CONSOLIDATION
|-- | ----------------------

| | The
consolidated financial statements include the accounts of the Company and its
subsidiaries. All material intra-group balances and transactions have been
eliminated on consolidation.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

# ASIA
SUPERNET CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUTED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(UNAUDITED)

|b) | PREPARATION OF FINANCIAL STATEMENTS
|-- | -----------------------------------

| | The
Company has a negative working capital of as of September 30, 2002. These
conditions raise doubt about the Companys ability to continue as a going
concern.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Continuation
of the Company as a going concern is dependent upon obtaining additional working
capital and attaining profitable operations in the future. The principal
stockholder has undertaken to make available adequate funds to the Company as
and when required to maintain the Company as a going concern. As a result, the
financial statements have been prepared in conformity with the principles
applicable to a going concern.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|c) | INVENTORIES
|-- | -----------

|d) | Inventories will be stated at the lower of cost, on a first-in first-out basis,
or market value.
|-- | ------------------------------------------------------------------------------------------------

|e) | PROPERTY AND EQUIPMENT
|-- | ----------------------

| | Fixed
assets are recorded at cost. Gains or losses on disposals are reflected in
current operations. Major expenditures for betterments and renewals are
capitalized. All ordinary repair and maintenance costs are expensed as incurred.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Depreciation
for financial reporting purposes is provided using the straight-line method over
the estimated useful lives of the assets as follows: furniture and office
equipment  5 years.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|f) | INCOME TAXES
|-- | ------------

| | The
Company accounts for income tax under the provisions of Statement of Financial
Accounting Standards (SFAS) No. 109, which requires recognition of
deferred tax assets and liabilities for the expected future tax consequences of
events that have been included in the financial statements or tax returns.
Deferred income taxes are provided using the liability method. Under the
liability method, deferred income taxes are recognized for all significant
temporary differences between the tax and financial statement bases of assets
and liabilities.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|g) | OPERATING LEASES
|-- | ----------------

| | Operating
leases represent those leases under which substantially all the risks and
rewards of ownership of the leased assets remain with the leasers. Rental
payments under operating leases are charged to expense on the straight-line
basis over the period of the relevant leases.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|h) | COMPREHENSIVE INCOME
|-- | --------------------

| | The
Company has adopted SFAS No. 130, which established guidance for the reporting
and disclosure of comprehensive income and its components. The purpose of
reporting comprehensive income is to report a measure of all changes in equity
that resulted from recognized transactions and other economic events of the
period other than transactions with shareholders. Adoption of the standard had
no economic impact on the Companys consolidated financial position,
results of operations or cash flows. The Company reports comprehensive income in
the Consolidated Statements of Operations.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|i) | FOREIGN CURRENCY TRANSLATION
|-- | ----------------------------

| | The
translation of the financial statements of subsidiaries into United States
dollars is performed for balance sheet accounts using the closing exchange rate
in effect at the balance sheet dates and for revenue and expense accounts using
an average exchange rate during each reporting period. The resulting foreign
currency translation gain or loss is included in Stockholders Equity as
Comprehensive Income.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

# ASIA
SUPERNET CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUTED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(UNAUDITED)

|j) | EARNINGS PER COMMON SHARE
|-- | -------------------------

| | Basic
earnings per common share is computed in accordance with SFAS No. 128 by
dividing net income for each year by the weighted average number of shares of
common stock outstanding during the year.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
computation of diluted earnings per common share is similar to basic earnings
per common share, except that the denominator is increased to include the number
of additional common shares that would have been outstanding if all dilutive
securities outstanding during the years were exercised.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
basic and diluted earnings per common share were the same for the periods
presented because no dilutive securities were outstanding or exercisable as of
September 30, 2002 and 2001.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|k) | RESEARCH AND DEVELOPMENT COSTS
|-- | ------------------------------

| | Expenditures
related to the research land development of new products and processes are
expensed as incurred, unless they are required to be capitalized. Research and
development costs are required to be capitalized when a products
technological feasibility has been established by completion of a detailed
program design or working model of the product, and ending when a product is
available for release to customers. For the year ended December 31, 2000 the
Company capitalized $126,996 of costs related to the purchase of technology from
the University of Beijing that provided new functionality for the Companys
existing detailed program design and working model. The Company will amortize
capitalized research and development against sales at a rate of ten percent or
over a four-year period, which approximates the period to be benefited,
whichever is shorter.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

## RELATED PARTY
TRANSACTIONS

Loans from directors,
shareholders and other related parties of $734,183 and $720,827 at September 30,
2002 and December 31, 2001, respectively, are non-interest bearing, currently
payable and not evidenced by any notes.

## NOTE PAYABLE

On January 31, 2002 the
Company issued a debenture payable for $27,176 in payment of legal fees. The
debenture due July 31, 2002 has not been paid. The debenture accrues interest at
8 1⁄2 percent. The debenture can be converted to common stock at the option
of the holder at the bid price of the stock on the date of conversion. The
number of shares issued would be the amount of the debenture payable divided by
the bid price.

## WAIVER OF
STAFF BENEFITS

During the period from
inception through December 31, 2001 the Company had accrued severance benefits
in accordance with the estimated payments required when staff are terminated.
The Company has reduced staff. However, most of the staff were placed in other
positions before termination and the benefits which the Company would ordinarily
pay are not applicable. The Company has taken the reduction in the liability for
severance benefits ($29,602) to salaries and related costs in the nine months
ended September 30, 2002.

---

PRELIMINARY NOTE
REGARDING FORWARD-LOOKING STATEMENTS

Statements contained in
this Plan of Operation of this Quarterly Report on Form 10-QSB include
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). Forward-looking statements involve known and unknown risks,
uncertainties and other factors which could cause the actual results of the
Company (sometimes referred to as we, us or the
Company), performance (financial or operating) or achievements
expressed or implied by such forward-looking statements not to occur or be
realized. Such forward-looking statements generally are based upon the
Companys best estimates of future results, general merger and acquisition
activity in the marketplace, performance or achievement, based upon current
conditions and the most recent results of operations. Forward-looking statements
may be identified by the use of forward-looking terminology such as
may, will, project, expect,
believe, estimate, anticipate,
intends, continue, potential,
opportunity or similar terms, variations of those terms or the
negative of those terms or other variations of those terms or comparable words
or expressions. (See the Companys Form 10SB for a description of certain
of the known risks and uncertainties of the Company.)

Item 2.
MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

The following discussion
should be read in conjunction with the Consolidated Financial Statements of the
Company and related Notes thereto.

The Company has finished it
primary research and development and is now concentrating its efforts on
marketing the handheld personal digital assistant (PDA) product.

The Company will require
additional investment to strengthen the financial condition of the Company in
order to manufacture, market and sell its product. During the interim the
Company is being financed by loans from a major stockholder and sale of its
know-how and patents in other communications areas unrelated to the PDA. The
Company has suspended all research and marketing activities as of July 2002
pending further investment.

Sales to date have been for
know-how and patents in unrelated communications areas that have helped to
finance expenses of the Company. The Company has reduced its expenses for the
nine months to $43,743 (not including the benefit from severance pay reduction
credited to salaries and benefits of $29,602), as compared $311,897 for the nine
months ended September 30, 2001. There were reductions in most expense
catagories as the Company has reduced its staff and other expenses accordingly
in downsizing. The major reduction was in salaries to $7,257 (not including
reversal of staff severance benefits for the nine months) ended as compared to
$117,477 for the nine months ended September 30, 2001 and the receipt of $7,000
for over-billed prior year audit fees.

Item 3. Controls
and Procedures

(a)
Evaluation of disclosure controls and procedures. The principal officers of the
Company are satisfied with the disclosure controls and procedure based on their
evaluation of such controls and procedures.

(b)
Changes in internal controls.  None.

(c)
Asset-Backed Issuers.  Not applicable.

Item 4. RISKS

The Companys business
is characterized by rapid technological change, new product and service
development and evolving industry standards. Inherent in the Companys
business are various risks and uncertainties, including limited operating
history, uncertain profitability, history of losses and risks associated with
the ability to raise additional capital.

The Company has its only
active operation in the Peoples Republic of China (PRC) that maybe
subject to significant risks not typically associated with companies in North
America. The Companys operations could be adversely affected by changes in
the political and social conditions, changes in government policies with respect
to laws and regulations, anti-inflationary measures, currency conversion,
remittance abroad and rates and methods of taxation.

---

## PART II.
OTHER INFORMATION

Item 1.
Legal Proceedings - None

Item 2.
Changes in Securities and Use of Proceeds - None

Item 3.
Defaults on Senior Securities - None

Item 4.
Submission of Items to a Vote - None

Item 5.
Other Information - None

## Item 6.

|(a) | Exhibits - None
|--- | ---------------

|(b) | Reports on Form 8-K - None
|--- | --------------------------

---

SIGNATURES

In
accordance with the requirements of the Securities and Exchange Act of 1934, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

Dated: November 11, 2002 
        
        
           
            
         
           
         
Asia SuperNet Corporation
            
            
            
                
            
            
            
                  
      By: /s/ Lui Ming Hui
             
            
            
            
            
            
            
            
            
            Lui Ming
Hui
             
            
                  
            
     
            
            
            
            
            
Director/Chief Executive Officer

---

CERTIFICATION

I, Lui Ming Hui, Dircector,
CEO and Chief Financial Officer, certify that:

1. I have reviewed this
quarterly report on Form 10-QSB of Asia Supernet, Inc. (the
registrant);

2. Based on my knowledge,
this quarterly report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not misleading with
respect to the period covered by this quarterly report;

3. Based on our knowledge,
the financial statements, and other financial information included in this
quarterly report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;

4. The registrants
other certifying officers and we are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-14 and 15d-14) for the registrant and have:

a)
designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this report is being prepared;

b)
evaluated the effectiveness of the registrants disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the Evaluation Date); and

c)
presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrants
other certifying officers and we have disclosed, based on our most recent
evaluation, to the registrants auditors and the audit committee of
registrants board of directors (or persons performing the equivalent
functions):

a)
all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrants ability to record, process,
summarize and report financial data and have identified for the
registrants auditors any material weaknesses in internal controls; and

b)
any fraud, whether or not material, that involves management or other employees
who have a significant role in the registrants internal controls; and

6. The registrants
other certifying officers and we have indicated in this quarterly report whether
there were significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

11/11/02
        
           
            
         
           
         
          
       /s/ Lui Ming Hui
Date 
        
        
           
            
         
           
         
                  
      President and Chief Executive Officer11/11/02
        
           
            
         
           
         
          
       /s/ Lui Ming Hui
Date 
        
        
           
            
         
           
         
                  
      Principal Financial Officer

---