**UNITED
        STATES**
 **SECURITIES
        AND EXCHANGE COMMISSION**
 **Washington,
        D.C. 20549**
 
  **FORM 10-QSB/A**
  **(Amendment
        No. 1)**
  
  x
              **QUARTERLY
                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE
                  ACT
                  OF 1934****For
                  the quarter ended March 31,
                  2004**
 **-OR-**
  o
              **TRANSITION
                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE
                  ACT
                  OF 1934****For
                  the transition period from
                  :                     
                  to**
  **Commission
        File Number** **000-28339**
 
 
 **XVARIANT,
        INC.**
 (Exact
        Name of Registrant as Specified in Its Charter)
  **NEVADA**
              
              **000-28339**(State
                  or other jurisdiction of
                incorporation
                    or organization)
              
              (I.R.S.
                  Employer Identification No.)
  **4039
                  S. Highland Drive,**
                **Salt
                  Lake City, UT**
              
              **84124**(Address
                  of principal executive offices)
              
              (Zip
                  code)
 
 Registrant’s
        telephone number, including area code: (801) 424-2562
  (Former
        name, former address or former fiscal year, if changed since last
        report)
 
 Check
        whether the issuer: (1) filed all reports required to be filed by
        Section 13 or 15(d) of the Exchange Act during the past 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 þ No o
 
 Indicate
        by check mark whether the registrant is a large accelerated filer, an
        accelerated filer, or a non-accelerated filer. See definition of “accelerated
        filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check
        one): Large accelerated filer o Accelerated filer o Non-accelerated filer þ
 
 Indicate
        by check mark whether the registrant is a shell company (as defined in
        Rule 12b-2 of the Exchange)  Yes o No
        þ
  
  The
        number of shares outstanding of each of the Registrant’s classes of common
        stock, as of March 31, 2004 was 13,561,000 shares, all of one class of $0.001
        par value Common Stock.
 
 **XVARIANT,
        INC.**
 **FORM
        10-QSB/A #1**
 **Quarter
        Ended March 31, 2004**
 
 **TABLE
        OF CONTENTS**
 **FINANCIAL
                    INFORMATION**
                **PAGE**Item 1.
                Consolidated
                    Financial StatementsCondensed
                    Consolidated Balance Sheet as March 31, 2004 (unaudited)
                4Condensed
                    Consolidated Statement of Operations for the Six Months Ended
                    March 31,
                    2004 and March 31, 2003
                5Condensed
                    Consolidated Statement Stockholders’ Equity/(Deficit)
                6Condensed
                    Consolidated Statement of Cash Flow for the Six Months Ended
                    March 31,
                    2004 and March 31, 2003
                7Notes
                    to Consolidated Financial Statements
                8Item 2.
                Managements
                    Discussion and Analysis of Financial Condition or Plan of
                    Operation
                15Item
                    3.
                Quantitative
                    and Qualitative Disclosures About Market Risk
                22Item
                    4.
                Controls
                    and Procedures
                23**PART
                    II—OTHER INFORMATION**Item
                    1.
                Legal
                    Proceedings
                23Item
                    2.
                Unregistered
                    Sales of Equity Securities and Use of Proceeds
                23Item
                    3.
                Defaults
                    Upon Senior Securities
                23Item
                    4.
                Submission
                    of Matters to a Vote of Security Holders
                23Item
                    5.
                Other
                    Information
                23Item
                    6.
                Exhibits
                    and Reports on Form 8-K
                24**SIGNATURES**
                **24**
  -
              2
              -
 **SPECIAL
        NOTE ON FORWARD LOOKING STATEMENTS**
 
 This
        Quarterly Report on Form 10-QSB, including "Management's Discussion and Analysis
        of Financial Condition and Results of Operations" in Item 2 of Part I of
        this
        report include forward-looking statements. These statements involve known
        and
        unknown risks, uncertainties and other factors that may cause our actual
        results, levels of activity, performance or achievements to be materially
        different from any future results, levels of activity, performance, or
        achievements expressed or implied by forward-looking statements.
 
 In
        some
        cases, you can identify forward-looking statements by terminology such as
        "may,"
        "should," "expects," "plans," "anticipates," "believes," "estimates,"
        "predicts," "potential," "proposed," "intended," or "continue" or the negative
        of these terms or other comparable terminology. You should read statements
        that
        contain these words carefully, because they discuss our expectations about
        our
        future operating results or our future financial condition or state other
        "forward-looking" information. There may be events in the future that we
        are not
        able to accurately predict or control. Before you invest in our securities,
        you
        should be aware that the occurrence of any of the events described in this
        Annual Report could substantially harm our business, results of operations
        and
        financial condition, and that upon the occurrence of any of these events,
        the
        trading price of our securities could decline and you could lose all or part
        of
        your investment. Although we believe that the expectations reflected in the
        forward-looking statements are reasonable, we cannot guarantee future results,
        growth rates, levels of activity, performance or achievements. We are under
        no
        duty to update any of the forward-looking statements after the date of this
        Quarterly Report to conform these statements to actual results.
  -
            3
            -
  **PART
        1: FINANCIAL INFORMATION**
  **XVARIANT,
                  INC.****Consolidated
                  Balance Sheets****(Unaudited)**
  March
                  31,2004
              
              September
                  30,(Unaudited)
              
              2003**ASSETS**Current
                  AssetsCash
              
              $
              9,397
              
              $
              1,136Accounts
                  Receivable - Net
              
              
              -
              
              
              96,156Total
                  Current Assets
              
              
              9,397
              
              
              97,292Property
                  and Equipment, Net
              
              
              16,924
              
              
              46,345Total
                  Assets
              
              $
              26,321
              
              $
              143,637**LIABILITIES
                  AND STOCKHOLDERS' EQUITY**Current
                  LiabilitiesTrade
                  accounts payable and accrued expenses
              
              $
              33,344
              
              $
              462,743Payable-related
                  party
              
              
              -
              
              
              320,600Deferred
                  revenue
              
              
              -
              
              
              12,637Short-term
                  obligations
              
              
              523,920
              
              
              303,040Cash
                  Overdraft
              
              
              -
              
              
              42,494Capital
                  leases
              
              
              1,077
              
              
              4,241Total
                  Current Liabilities
              
              
              558,341
              
              
              1,145,755Long
                  Term Liabilities
              
              
              -
              
              
              -Total
                  Liabilities
              
              
              558,341
              
              
              1,145,755Stockholders'
                  EquityCommon
                        Stock,$0.001 par value, 50,000,000 shares authorized; 13,561
                        shares issued
                        and outstanding March 31, 2004 and September 30, 2003
                        respectively
              
              
              13,561
              
              
              13,561Paid
                  in Capital
              
              
              3,301,793
              
              
              3,990,193Accumulated
                  Deficit
              
              
              (3,847,374
              )
              
              (5,005,872
              )Total
                  Stockholders' Equity
              
              
              (532,020
              )
              
              (1,002,118
              )Total
                  Liabilities and Stockholders' Equity
              
              $
              26,321
              
              $
              143,637
  The
                  accompanying notes are an integral part of these
                  statements
  -
            4
            -
 
 **XVARIANT,
                  INC.****Consolidated
                  Statements of Operations****(Unaudited)**
  For
                  the Six Months Ended
              
              For
                  the Three Months EndedMarch
                  31,
              
              March
                  31,2004
              
              2003
              
              2004
              
              2003RevenueRevenue
              
              $
              -
              
              $
              1,142,656
              
              $
              -
              
              $
              620,242Membership
                  Fees
              
              
              74,886
              
              
              -
              
              
              50,617
              
              
              -Service
                  Fees
              
              
              70,981
              
              
              -
              
              
              27,298
              
              
              -Total
                  Revenue
              
              
              145,867
              
              
              1,142,656
              
              
              77,915
              
              
              620,242Operating
                  ExpensesGeneral
                  and Administrative
              
              
              304,643
              
              
              1,090,214
              
              
              149,829
              
              
              565,826Sales
                  and Marketing
              
              
              6,687
              
              
              623,350
              
              
              935
              
              
              345,164Depreciation
                  and amortization
              
              
              15,305
              
              
              51,480
              
              
              7,336
              
              
              26,228Total
                  Operating Expenses
              
              
              326,635
              
              
              1,765,044
              
              
              158,100
              
              
              937,218Loss
                  From Operations
              
              
              (180,768
              )
              
              (622,388
              )
              
              (80,185
              )
              
              (316,976
              )Other
                  Income (Expense)Interest
                  expense
              
              
              (12,552
              )
              
              (6,434
              )
              
              (7,266
              )
              
              -3,732Gain
                  on release of debt
              
              
              -
              
              
              19,660
              
              
              -
              
              
              -Write
                  off - old open A/P
              
              
              53,459Write
                  off of Inv in 360 House
              
              
              (721,521
              )
              
              -
              
              
              -
              
              
              -Total
                  other Income (Expense)
              
              
              (680,614
              )
              
              13,226
              
              
              (7,266
              )
              
              (3,732
              )Loss
                  before income taxes
              
              
              (861,382
              )
              
              (609,162
              )
              
              (87,451
              )
              
              (320,708
              )Federal
                  Income Taxes
              
              
              -
              
              
              -
              
              
              -
              
              
              -Net
                  (Loss)
              
              $
              (861,382
              )
              $
              (609,162
              )
              $
              (87,451
              )
              $
              (320,708
              )Basic
                  and Diluted(Loss)
                  per Share
              
              
              (0.06
              )
              
              (0.04
              )
              
              (0.01
              )
              
              (0.02
              )Weighted
                  AverageNumber
                  of Shares
              
              
              13,561,100
              
              
              13,561,100
              
              
              13,561,100
              
              
              13,561,100
  The
                  accompanying notes are an integral part of these
                  statements
 
 -
            5
            -
 
 **XVARIANT,
                  INC.****Consolidated
                  Statement of Stockholders' Equity/(Deficit)****(Unaudited)**From
                  September 1, 2000 (Inception) to March 31,
                  2004
  Common
                    Stock
                
                Paid
                    in
                
                Subscription
                
                Accumulated
                
                TotalShares
                
                Amount
                
                Capital
                
                Receivable
                
                (Deficit)
                
                Equity**Balance,
                    September 30, 2001**
                
                
                21,121,100
                
                $
                21,121
                
                $
                2,439,229
                
                $
                (1,215,500
                )
                $
                (1,352,731
                )
                $
                (107,881
                )Cancellation
                    of common stock in conjunction with officer separation
                    agreements
                
                
                (9,900,000
                )
                
                (9,900
                )
                
                9,900
                
                
                -
                
                
                -
                
                
                -Issuance
                    of common stock in conjunction with officer separation
                    agreements
                
                
                700,000
                
                
                700
                
                
                (700
                )
                
                -
                
                
                -
                
                
                -Issuance
                    of stock for asset purchase
                
                
                450,000
                
                
                450
                
                
                69,550
                
                
                -
                
                
                -
                
                
                70,000Expense
                    incurred through issuance of stock options
                
                
                -
                
                
                -
                
                
                197,302
                
                
                -
                
                
                -
                
                
                197,302Issuance
                    of common stock for purchase of subsidiary
                
                
                1,000,000
                
                
                1,000
                
                
                1,009,000
                
                
                -
                
                
                -
                
                
                1,010,000Issuance
                    of common stock for services
                
                
                190,000
                
                
                190
                
                
                237,460
                
                
                -
                
                
                -
                
                
                237,650Payment
                    received on common stock subscription
                
                
                -
                
                
                -
                
                
                (47,250
                )
                
                789,960
                
                
                -
                
                
                742,710Net
                    (Loss)
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                (1,460,116
                )
                
                (1,460,116
                )**Balance,
                    September 30, 2002**
                
                
                13,561,100
                
                
                13,561
                
                
                3,914,491
                
                
                (425,540
                )
                
                (2,812,847
                )
                
                689,665Payment
                    received on common stock subscription
                
                
                -
                
                
                -
                
                
                (12,600
                )
                
                425,540
                
                
                -
                
                
                412,940Stock
                    option expense
                
                
                -
                
                
                -
                
                
                88,302
                
                
                -
                
                
                -
                
                
                88,302Net
                    (Loss)
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                (2,193,025
                )
                
                (2,193,025
                )**Balance,
                    September 30, 2003**
                
                
                13,561,100
                
                
                13,561
                
                
                3,990,193
                
                
                -
                
                
                (5,005,872
                )
                
                (1,002,118
                )Dissolution
                    of Acquisition
                
                
                
                
                
                
                
                
                (688,400
                )
                
                
                
                
                2,019,880
                
                
                1,331,480Net
                    (Loss)
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                (861,382
                )
                
                (861,382
                )**Balance,
                    March 31, 2004**
                
                
                13,561,100
                
                $
                13,561
                
                $
                3,301,793
                
                $
                -
                
                $
                (3,847,374
                )
                $
                (532,020
                )
  The
                    accompanying notes are an integral part of these
                    statements
 
 -
            6
            -
 
 **XVARIANT,
                  INC.****Consolidated
                  Statement of Cash Flow****(Unaudited)**
  For
                  the Six Months EndedMarch
                  31,2004
              
              2003Operating
                  ActivitiesNet
                  Income (Loss)
              
              $
              (861,382
              )
              $
              (609,162
              )Adjustments
                  to reconcile net income (Loss):Stock
                  issued for services
              
              
              -
              
              
              44,152Depreciation
              
              
              15,305
              
              
              51,480Gain
                  on Forgiveness of debt
              
              
              -
              
              
              (19,660
              )Disposal
                  of Subsidiary
              
              
              1,331,480
              
              
              -Bad
                  Debt Expense
              
              
              155,761
              
              
              -Balance
                  Sheet Adjustments:(Increase)
                  Decrease in Accounts Receivable
              
              
              (59,605
              )
              
              6,272Increase
                  (Decrease) in Accounts Payable
              
              
              (429,399
              )
              
              56,915Increase
                  (Decrease) in Payable -Related Party
              
              
              (320,600
              )
              
              -Increase
                  (Decrease) in Deferred Revenue
              
              
              (12,637
              )
              
              4,513Increase
                  (Decrease) in Accrued Liabilities
              
              
              (303,040
              )
              
              -Increase
                  (Decrease) in Capital Leases
              
              
              (3,164
              )
              
              -Net
                  Cash (Used) by Operating Activities
              
              
              (487,281
              )
              
              (465,490
              )Investing
                  ActivitiesDisposal/(Purchase)
                  of Equipment
              
              
              14,116
              
              
              (9,645
              )Cash
                  (used) in Investing Activities
              
              
              14,116
              
              
              (9,645
              )Financing
                  ActivitiesProceeds/(Repayment)
                  Notes -Related Parties
              
              
              523,920
              
              
              76,470Increase/(Decrease)
                  in Cash Overdraft
              
              
              (42,494
              )
              
              82,931Proceeds
                  from Sale of Common Stock
              
              
              -
              
              
              316,810Cash
                  provided by financing
              
              
              481,426
              
              
              476,211Net
                  Increase (Decrease) in Cash
              
              
              8,261
              
              
              1,076Cash,
                  Beginning of Period
              
              
              1,136
              
              
              5,127Cash,
                  End of Period
              
              $
              9,397
              
              $
              6,203Supplemental
                  InformationTaxes
              
              $
              2,547
              
              $
              -Interest
              
              $
              12,872
              
              $
              730
  The
                  accompanying notes are an integral part of these
                  statements
  -
            7
            -
  **Easy
        Groups Limited**
 **Formerly
        China Ethanol Corporation, formerly XVARIANT, INC.**
 
 **Notes
        to the Consolidated Financial Statements**
 (March
        31, 2004 and September 30, 2003)
 
 **NOTE
        1- ORGANIZATION AND BUSINESS ACTIVITY**
 
 Easy
        Groups Limited (The Company) was incorporated under the laws of the state
        of
        Nevada on October 24, 1996, under the name Almost Country Productions, Inc.
        and
        changed its name to Xvariant, Inc. (Xvaraiant) in August, 2001 and subsequent
        to
        the period reported on these statements the Company changed its name to China
        Ethanol Corporation on August 28, 2006 and finally to Easy Groups Limited
        on
        November 17, 2006.
 
 On
        March
        15, 2001, Xvariant acquired Real Estate Federation, Inc. ("REF") in a
        transaction recorded as a recapitalization of REF with Xvariant being the
        legal
        survivor and REF being the accounting survivor and the operating entity.REF
        was
        established to provide technology for the real estate market that enhances
        the
        use of the Internet in the home-buying process. The technology allows potential
        homebuyers to search for real estate properties from all participating real
        estate brokers' listings. REF had a wholly owned subsidiary, Xvariant, Inc.
        (a
        Utah corporation) which designed web sites for real estate brokers along
        with
        other real estate related services. Xvariant (the Utah corporation) was disposed
        of in October 2001 (see Note 13).
 
 During
        January 2002, Xvariant executed the acquisition of 360House.com,Inc. (360House),
        pursuant to a stock exchange agreement. Xvariant acquired 360House by issuing
        1,000,000 shares of common stock to the shareholders of 360House in exchange
        for
        all of the issued and outstanding shares of 360House. In addition, the exchange
        agreement provides for issuance of additional shares of Xvariant's common
        stock
        based on the performance of 360House. Xvariant agreed to issue common stock,
        including the 1,000,000 shares issued upon execution of the agreement, at
        a
        price equal to either 1) a value equal to six times 360House's earnings before
        interest, taxes, depreciation, and amortization during the twelve month period
        ending December 31, 2003; or 2) the value defined by a valuation consultant
        mutually agreeable by the parties. Either party may demand an independent
        valuation. 360House provides services to the real estate industry principally
        in
        the form of photographic virtual tours of real estate properties available
        for
        viewing on the internet and other video media.
 
 During
        December 2003 the company dissolved the acquisition of 360House because
        performance was not at the expected level.
 
 The
        Company was engaged in the development of technology and Internet services
        targeted at the real estate industry and was considered to be in the development
        stage through December 31, 2001. The Company began substantial operations
        in
        January 2002 with the acquisition of 360house and became an operating company
        during the year ended September 30, 2003.
 
 The
        consolidated financial statements include Xvariant and its wholly owned
        subsidiaries, Real Estate Federation, Inc. however, with the dissolution
        of the
        acquisition of 360House.com, Inc., the financials have been restated to remove
        the activity of 360House.com, Inc. All significant intercompany accounts
        and
        transactions have been eliminated.
 
 Effective
        August 28, 2006 the Company filed a Certificate of Amendment with the State
        of
        Nevada to change its name from XVARIANT, INC. to China Ethanol
        Corporation.
 
 On
        November 27, 2006 the Company filed a Certificate of Amendment with the State
        of
        Nevada to change its name from China Ethanol Corporation to Easy Groups
        Limited.
 
 -
            8
            -
  **NOTE
        2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
 
 a.
        Accounting Methods
 
 The
        Company's consolidated financial statements are prepared using the accrual
        method of accounting. The Company has elected a September 30, year-end. 360House
        has a December 31, year end with the accompanying consolidated financial
        statements including the results of financial position and results of operations
        of 360House as of and for the nine months ended September 30, 2002 which
        approximates the period from the date of its acquisition by Xvariant as
        discussed in Note 12.
 
 b.
        Accounts Receivable
 
 The
        Company evaluated its accounts receivable and found that it was all in excess
        of
        120 days old and increased its allowance for doubtful accounts of to $155,761
        as
        of March 31, 2004 leaving a balance in accounts receivable of
        $0.00.
 
 c.
        Property and Equipment
 
 Property
        and equipment is recorded at cost. Major additions and improvement are
        capitalized. The cost and related accumulated depreciation of equipment retired
        or sold are removed from the accounts and any differences between the
        undepreciated amount and the proceeds from the sale are recorded as gain
        or loss
        on sale of equipment. Depreciation is computed using the straight-line method
        over the estimated useful life of the assets as follows:
  Description
                
                Estimated
                    Useful LifeFurniture
                    and fixtures
                
                
                3-4
                    yearsMachinery
                    and equipment
                
                
                3
                    yearsComputers
                
                
                3
                    years
  d.
        Goodwill
 
 As
        of
        January 1, 2002, the Company adopted Statement of Financial Accounting Standard
        (SFAS) No. 142, "Goodwill and Other Intangible Assets" (SFAS 142). SFAS 142
        requires the accounting for goodwill on an impairment-only approach. SFAS
        142
        requires that goodwill be tested for impairment annually, or more frequently
        if
        circumstances indicate potential impairment, by comparing the fair value
        of the
        asset to its carrying amount. Such testing requires, that each of the Company's
        reporting units, as defined in SFAS 142, be identified and that the Company's
        assets and liabilities, including the existing goodwill and intangible assets,
        be assigned to those reporting units. The Company has determined that it
        has a
        single reporting unit attributable to its goodwill. SFAS 142 also requires
        the
        Company to assess the fair value of the Company. In determining fair value,
        the
        Company considered the guidance in SFAS 142, including the Company's market
        capitalization, control premiums, discounted cash flows and other indicators
        of
        fair value. Based on this analysis, goodwill totaling $1,068,047 was impaired
        at
        September 30, 2003.
 
 e.
        Estimates
 
 The
        preparation of consolidated financial statements in conformity with generally
        accepted accounting principles requires management to make estimates and
        assumptions that affect the reported amounts of assets and liabilities and
        disclosure of contingent assets and liabilities at the date of the consolidated
        financial statements and the reported amounts of revenues and expenses during
        the reporting period. Actual results could differ from those
        estimates.
  -
            9
            -




f.
      Advertising





The
      Company follows the policy of charging the costs of advertising to expense
      as
      incurred. During the years ended September 30, 2003 and 2002, the Company
      expensed $7,208 and $0 respectively.





g.
      Revenue Recognition





The
      Company recognizes revenue from real estate lead commissions as escrow is
      closed. Revenue from photographic virtual tours and related services are
      recognized as projects are completed and available for viewing. Revenue is
      recognized on other services rendered as they are performed.





h.
      Stock
      Options





As
      permitted by FASB Statement 123 and amended by SFAS No. 148 "Accounting for
      Stock Based Compensation" (SFAS No. 123), the Company elected to measure and
      record compensation cost relative to employee stock option costs in accordance
      with Accounting Principles Board ("APB") Opinion 25, "Accounting for Stock
      Issued to Employees," and related interpretations and make pro-forma disclosures
      of net income and earnings per share as if the fair value method of valuing
      stock options had been applied. Under APB Opinion 25, compensation cost is
      recognized for stock options granted to employees when the option price is
      less
      that the market price of the underlying common stock on the date of
      grant.





i.
      Technology Development and Website Designs





The
      costs
      of computer software developed or obtained for internal use, during the
      preliminary project phase, as defined under Statement of Position 98-1
      "Accounting for the Costs of Computer Software Developed or obtained for
      Internal use", are expensed as incurred. The costs of web site development,
      during the planning stage, as defined under Emerging Issues Task Force No.
      00-2
      "Accounting for Web Site Development Costs", are expenses as incurred. Computer
      software and web site development costs incurred during the application and
      infrastructure development stage, including external direct costs of materials
      and services consumed in developing software, creating graphics and web site
      content, payroll, and interest costs, are capitalized and amortized over the
      estimated useful life, beginning when the software is ready for use and after
      all substantial testing is completed and the web site is operational. Any costs
      incurred since the web site and related software have become operational have
      been expenses as incurred.








**NOTE
      3 - GOING CONCERN**





The
      Company's consolidated financial statements are prepared using generally
      accepted accounting principles in the United States of America applicable to
      a
      going concern which contemplates the realization of assets and liquidation
      of
      liabilities in the normal course of business. The Company has incurred losses
      which have resulted in an accumulated deficit of $3,847,374 at March 31, 2004,
      and has limited internal financial resources. These factors combined raise
      substantial doubt about the Company's ability to continue as a going concern.
      The accompanying consolidated financial statements do not include any
      adjustments relating to the recoverability and classification of asset carrying
      amounts or the amount and classification of liabilities that might result from
      the outcome of this uncertainty.





The
      Company expects that growth in revenue from operations will continue to
      increase. Accordingly, the Company believes that based on these factors, it
      has
      the ability to sustain operations for the next twelve months. However, there
      can
      be no assurance that generation of operating revenues and collection of the
      subscription receivable will be sufficient to enable the Company to maintain
      its
      operations. If the Company's plans are not successful, it will be necessary
      for
      the Company to secure additional debt and equity financing which also cannot
      be
      assured.





-
          10
          -




**NOTE
      4 - PROPERTY AND EQUIPMENT**





Property
      and equipment consists of the following:





March
                31,
              2004
            
            September30,
              2003Furniture
                and fixtures
            
            $
            52,377
            
            $
            52,377Machinery
                and equipment
            
            
            24,048
            
            
            24,048Computers
            
            
            151,202
            
            
            151,202227,627
            
            
            227,627Less:Disposal
                of equipment
            
            
            (14,116
            )Accumulated
                depreciation
            
            
            (196,587
            )
            
            (181282
            )Net
                property and equipment
            
            $
            16,924
            
            $
            46,345








**NOTE
      5 - ASSET PURCHASE**





During
      November 2001, pursuant to an asset purchase agreement, the Company issued
      to an
      unrelated entity 450,000 shares of its common stock and agreed to issue up
      to an
      additional 600,000 in the form of a warrant with a term of 10 years exercisable
      at $2.00 per share. The exercise of the warrants are contingent upon gross
      revenue derived from the assets purchased as follows:





If
      gross
      revenue generated from the assets purchased was greater than $200,000 for the
      twelve months following the acquisition, all 600,000 warrants were to be
      available for exercise. If gross revenue was less than $200,000 only 300,000
      warrants were to be exercisable and if gross revenue were less than $100,000
      none of the warrants would be exercisable. At September 30, 2003, none of the
      revenue thresholds had been achieved and no warrants were exercisable in
      conjunction with the asset purchase. Subsequent to September 30, 2003, and
      upon
      the expiration of the 12-month period from the date of the execution of the
      asset purchase agreement, none of the revenue thresholds had been met.
      Accordingly, no warrants to purchase shares of the Company's common stock
      pursuant to that agreement are exercisable.





The
      assets purchased in connection with this transaction consisted of various items
      including customer contracts and software. The assets were valued at $70,000
      on
      the date of purchase based on the net present value of the contracts acquired.
      Amortization expense of $35,000 has been recorded during the year ended
      September 30, 2003.





In
      February 2003, the Company purchased the assets of Virtually Anywhere in
      consideration for 20% paid to Seller for each qualified virtual tour ordered
      by
      qualified customer for a period of 24 months from closing date. With the
      purchase, the Company acquired all books and records relating to the ownership
      and operation of the business, including intangible assets.




**NOTE
      6.**  **DISSOLUTION
      OF BUSINESS COMBINATION**





During
      January 2002, Xvariant executed the acquisition of 360House.com, Inc.
      (360House), pursuant to a stock exchange agreement. Xvariant acquired 360House
      by issuing 1,000,000 shares of common stock to the shareholders of 360House
      in
      exchange for all of the issued and outstanding shares of 360House. In addition,
      the exchange agreement provides for issuance of additional shares of Xvariant's
      common stock based on the performance of 360House.





Xvariant
      agreed to issue common stock, including the 1,000,000 shares issued upon
      execution of the agreement, at a price equal to either 1) a value equal to
      six
      times 360House's earnings before interest, taxes, depreciation, and amortization
      during the twelve month period ending December 31, 2003; or 2) the value defined
      by a valuation consultant mutually agreeable by the parties. Either party may
      demand an independent valuation. 360House provides services to the real estate
      industry principally in the form of photographic virtual tours of real estate
      properties available for viewing on the internet and other video
      media.




-
          11
          -




Goodwill
      associated with this transaction has been recorded at $1,068,047. The Company
      assesses the amount reported as goodwill on an annual basis, or on an interim
      basis when events and circumstances warrant for possible impairment. For the
      year ended September 30, 2003, the Company fully impaired the goodwill of
      $1,068,047.





During
      December 2003 the company dissolved the acquisition of 360House because
      performance was not at the expected level. Because of the prior impairment
      of
      goodwill the dissolution resulted in a net gain on dissolution of $1,331,480
      as
      a result of the following equity adjustments:





Paid
                in CapitalBefore
                Dissolution
            
            $
            3,990,193Adjustment
            
            
            (688,400
            )Adjusted
                Paid in Capital
            
            $
            3,301,793Accumulated
                DeficitBefore
                Dissolution
            
            $
            (5,005,872
            )Adjustment
            
            
            2,019,880Adjusted
                Paid in Capital
            
            $
            (2,985,992
            )Adjustment
                to Paid in Capital
            
            $
            (688,400
            )Adjustment
                to Accumulated Deficit
            
            
            2,019,880Gain
                on dissolution
            
            $
            1,331,480








**NOTE
      7 - SHORT-TERM OBLIGATIONS**





As
      of
      March 31, 2004, the Company had two outstanding short-term obligations that
      provide operational financing with a balance of $523,920 including accrued
      interest. These obligations are unsecured and due on demand. Interest is being
      imputed at 6% per annum. Interest expense for the three months ended March
      31,
      2004 and the year ended September 30, 2003 is $7,047 and $9,091
      respectively





**NOTE
      8 - LONG-TERM OBLIGATIONS**





The
      Company leases office space under a long-term operating lease agreement and
      leases equipment under long-term capital lease agreements. Minimum rentals
      on
      capital leases have been capitalized at the cost of the leased equipment or
      the
      present value of the rentals at the inception of the leases and the obligation
      for such amounts recorded as liabilities. Amortization of the capitalized
      assets, which is included in depreciation and amortization expense, is computed
      on the straight-line basis over the life of the asset or the lease term,
      whichever is shorter, and interest expense is accrued on the basis of the
      outstanding lease obligations.





Future
      minimum lease payments under capital and operating leases are as
      follows:





Capital
            
            OperatingLeases
            
            LeasesYear
                ending September 30,2003
            
            $
            2,561
            
            $
            55,3912004
            
            
            -
            
            
            4,616Thereafter
            
            
            -
            
            
            -Total
                minimum lease payments
            
            $
            2,561
            
            $
            60,007Less
                amount representing interest
            
            
            94Present
                value of net minimum lease payments
            
            
            2,467Less
                current maturities
            
            
            2,467$
            -




-
          12
          -




**NOTE
      9 - CONTINGENCIES**





At
      September 30, 2003, the Company has employment agreements with two of the
      officers of the Company. The agreement stipulates total annual salaries of
      $240,000 annually for the next 4 years. The agreement also provides for bonuses
      based on net income. The contingencies were terminated with the dissolution
      of
      360 House.com, Inc.




**NOTE
      10 - COMMON STOCK TRANSACTIONS**





During
      the year ended September 30, 2002, the Company cancelled 9,900,000 common shares
      and issued 700,000 common shares pursuant to the separation agreements with
      former officers of the Company.





In
      November 2001, the Company issued 450,000 shares of common stock for the
      purchase of assets (see Note 5) and issued an additional 1,000,000 shares
      pursuant to a stock exchange agreement executed in January 2002 (see Note
      12).





Additionally,
      the Company issued 165,000 shares of common stock in January 2002 to an
      unrelated individual for services rendered valued at a price of $0.91 per share.
      An additional 25,000 shares were issued to the same individual in July 2002
      for
      services rendered valued at $3.50 per share. The value of the shares issued
      approximated the fair market value of the shares on the date of
      authorization.





**NOTE
      11 - STOCK OPTIONS AND WARRANTS**





During
      November 2001, the Company approved a stock option plan authorizing the Company
      grant up to a maximum of 2,500,000 shares of qualified and nonqualified options
      to employees, officers, directors, and others.





During
      November 2001, the Company granted stock options to its president to purchase
      up
      to 500,000 shares of common stock at $1.09 per share. The options vest one
      third
      upon grant, one third one year from the date of grant, and one third two years
      from the date of grant, contingent upon the president remaining an officer
      for
      such time. In addition, the Company granted options to purchase 100,000 shares
      of common stock to an outside consultant at $1.09 per share which vest upon
      grant. None of the contingent requirements were meet, accordingly, no related
      options are exercisable.





In
      conjunction with an asset purchase agreement entered into in November 2001,
      the
      Company granted to an unrelated entity a warrant to purchase up to 600,000
      shares of common stock at an exercise price of $2.00 per share, exercisable
      at
      any time prior to November 21, 2011 based on achieving certain gross revenue
      thresholds. None of the gross revenue thresholds were achieved and, accordingly,
      no related warrants are exercisable.





During
      February 2002, the Company granted stock options to an employee of the Company
      to purchase up to 2,000,000 shares of common stock at $1.08 per share. The
      options vest based on the performance of the Company and the time the employee
      remains employed by the Company. At September 30, 2002, no options had vested
      under this agreement. None of the performance requirements were meet,
      accordingly, no related options are exercisable.





In
      addition, the Company granted options to purchase 500,000 shares of common
      stock
      to an outside consultant at $0.65 per share which vest one third upon grant,
      one
      third one year from the date of grant and one third two years from date of
      grant, contingent upon the consultant continuing to provide services during
      the
      vesting periods. None of the performance requirements were meet, accordingly,
      no
      related options are exercisable.




-
          13
          -




During
      March 2002, the Company granted stock options to employees of the Company to
      purchase up to a total of 165,000 shares of common stock at $1.08 per share.
      The
      options vest one third upon grant, one third one year from the date of grant,
      and one third two years from the date of grant, contingent upon the employees
      remaining employees of the Company for such time. None of the performance
      requirements were meet, accordingly, no related options are
      exercisable.





As
      of the
      issue date of this statement none of the contingent requirements related to
      the
      above warrants and options were meet. Accordingly, the company has treated
      both
      options and warrants as having been cancelled and no longer
      outstanding.





**NOTE
      12- SUBSEQUENT EVENTS**





As
      of
      October 24, 2006 none of the criteria upon which execution of outstanding
      warrants and options were meet. Accordingly, all warrants and options have
      been
      cancelled.





Effective
      August 28, 2006 the Company filed a Certificate of Amendment with the State
      of
      Nevada to change its name from XVARIANT, INC. to China Ethanol
      Corporation.





On
      November 27, 2006 the Company filed a Certificate of Amendment with the State
      of
      Nevada to change its name from China Ethanol Corporation to Easy Groups
      Limited.





On
      June
      20, 2007 the Company filed a Certificate of Amendment with the State of Nevada
      to change its name from Easy Groups Limited to China Bionanometer Industries
      Corporation.





-
          14
          -





**ITEM
      2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATIONS OR PLAN OF OPERATION**





Forward-Looking
      Information





This
      report on Form 10-QSB includes "forward-looking statements" within the meaning
      of Section 27A of the Securities Act of 1933, and Section 21E of the Securities
      Exchange Act of 1934. These forward-looking statements may relate to such
      matters as anticipated financial performance, future revenues or earnings,
      business prospects, projected ventures, new products and services, anticipated
      market performance and similar matters. When used in this report, the words
      "may," "will," expect," anticipate," "continue," "estimate," "project,"
      "intend," and similar expressions are intended to identify forward-looking
      statements within the meaning of Section 27A of the Securities Act of 1933
      and
      Section 21E of the Securities Exchange Act of 1934 regarding events, conditions,
      and financial trends that may affect the Company's future plans of operations,
      business strategy, operating results, and financial position. The Private
      Securities Litigation Reform Act of 1995 provides a safe harbor for
      forward-looking statements. To comply with the terms of the safe harbor, we
      caution readers that a variety of factors could cause our actual results to
      differ materially from the anticipated results or other matters expressed in
      forward-looking statements. These risks and uncertainties, many of which are
      beyond our control, include (i) the sufficiency of existing capital resources
      and the Company's ability to raise additional capital to fund cash requirements
      for future operations; (ii) uncertainties involved in the rate of growth of
      the
      Company's business and acceptance of the Company's products and services; (iii)
      volatility of the stock market, particularly within the technology sector;
      and
      (iv) general economic conditions. Although the Company believes the expectations
      reflected in these forward-looking statements are reasonable, such expectations
      may prove to be incorrect.





*History*





Easy
      Groups Limited, formerly Xvariant, Inc. (the "Company") was organized on October
      24, 1996, under the laws of the State of Nevada, as "Almost Country Productions,
      Inc.," for the purpose of producing and marketing music. In approximately March
      1997, the Company sold 100,000 shares of its common stock at $.30 per share
      in
      an offering pursuant to Rule 504 and Section 3(b) of the Securities Act of
      1933.
      In November, 2000 the Company discontinued its music production business and
      actively sought new business opportunities.





On
      March
      15, 2001, the Company completed the acquisition of Real Estate Federation,
      Inc.
      ("REF"), pursuant to a Stock Purchase Agreement (the "Agreement") between the
      Company and the shareholders of REF. (See "Acquisition of REF"
      below).





The
      Company changed its name to "Xvariant, Inc.," in August, 2001.





In
      January, 2002, the Company completed the acquisition of 360House.com, Inc.,
      a
      Utah corporation ("360House"), pursuant to a Stock Exchange Agreement (the
      "Exchange Agreement") among the Company, 360House, and the shareholders of
      360House. (See "Acquisition of 360House" below).





The
      Company changed its name to “China Ethanol Corporation” in August
      2006.





In
      September 2006, the Company completed the acquisition of Easy Groups Limited,
      a
      Hong Kong corporation (“Easy Groups”), pursuant to an Exchange Agreement among
      the Company and Easy Groups (See “Acquisition of Easy Groups”
below).





The
      Company changed its name to “Easy Groups Limited” in November 2006.





-
          15
          -




*Acquisition
      of REF*





The
      Company acquired REF as a wholly owned subsidiary by issuing 20,500,000 shares
      of the Company's authorized common stock, 20,000,000 of which were issued to
      the
      shareholders of REF in exchange for their interests in REF, and 500,000 of
      which
      were issued as a fee to one of the Company's shareholders. The newly issued
      shares aggregated approximately 97% of the then issued and outstanding shares
      of
      the Company, and resulted in a change in control of the Company. At the closing
      of the acquisition, REF had no liabilities other than ordinary overhead
      expenditures, a real estate lease obligation, employment agreements with the
      three founders of REF, and a consulting agreement with another shareholder
      of
      REF. REF had no significant assets other than its intellectual property,
      copyrights, and computers used to deliver its service. It did, however, have
      a
      subscription agreement with one of its shareholders to provide up to $2,500,000
      in capital funding over the next one-year period. To date, the full capital
      commitment has been received and utilized to pursue Company business
      operations.





On
      or
      about October 12, 2001, 5,500,000 shares were cancelled in connection with
      Separation Agreements entered into by two of the founders, Messrs. Craig and
      Knapp. Messrs. Craig and Knapp were each reissued 100,000 shares of restricted
      common stock, and were paid $12,500 and $17,500, respectively, as reimbursement
      for all accrued salary, benefits and expenses. On or about July 12, 2002, Mr.
      Thomas Wright, a founder, agreed to cancel 4,400,000 shares owned by him
      pursuant to an employment arrangement of that date. Mr. Wright was paid a total
      of $12,500 as reimbursement for all accrued salary, benefits and expenses.
      A
      total of 500,000 shares of common stock was reissued to Mr. Wright.





*Acquisition
      of Bid Trac*





In
      November, 2001, the Company issued 450,000 shares of restricted common stock
      to
      Bid Trac, Inc. ("Bid Trac"), for the acquisition of certain assets and software
      that allowed the Company to provide an additional on-line service to its
      customers, and six contracts with customers subscribing to the service. In
      addition, the Company granted to Bid Trac, a warrant to purchase up to 600,000
      shares of common stock at an exercise price of $2.00 per share, exercisable
      at
      any time prior to November 21, 2011. The warrant provides that, in the event
      gross revenue derived from the Bid Trac service contracts was less than $200,000
      for the twelve months following the acquisition, only 300,000 shares could
      be
      purchased by Bid Trac, and if gross revenue was less than $100,000 for such
      twelve month period, then the warrant terminated and no shares could be
      purchased. Gross revenue from the Bid Trac contracts aggregated less than
      $100,000 for the initial twelve months following the acquisition.





*Acquisition
      of 360House*





In
      January, 2002, the Company completed the acquisition of 360House.com, Inc.,
      a
      Utah corporation ("360House"), under the terms of a Stock Exchange Agreement
      (the "Exchange Agreement") among the Company, 360House, and the shareholders
      of
      360House.





The
      Company acquired 360House as a wholly-owned subsidiary by initially issuing
      1,000,000 shares of the Company's authorized common stock to the shareholders
      of
      360House in exchange for all of the outstanding stock of 360House. In addition,
      the Exchange Agreement provides for the issuance of additional shares of the
      Company's common stock based on the performance of 360House. The Company has
      agreed to issue stock, including the 1,000,000 shares issued upon execution
      of
      the Agreement, at a price equal to either (a) a value equal to six times
      360House's earnings before interest, taxes, depreciation and amortization
      ("EBITDA") in the twelve month period ending December 31, 2003 ("Earnout
      Shares"); or (b) the value defined by a valuation consultant agreed to by the
      parties (the "Earnout"). Either party may demand an independent valuation,
      and
      the party making such demand must bear the cost. The value of the Company's
      common stock for purposes of the Earnout, shall be calculated based on the
      average closing price of the stock for the 30 trading days prior to December
      31,
      2003.





At
      the
      closing of the acquisition, 360House had no significant tangible assets except
      computers, office furniture and equipment, and general files for its three
      employees. It had what it believed was, however, significant and valuable
      intellectual property, including, trademarks and internally developed software
      and web technology. 360House had no liabilities other than ordinary overhead
      expenditures, and employment agreements with Glade Jones, the President of
      360House, and Andy Evans, the founder and Chief Technical Officer of 360House.
      Although the employment agreements are obligations of 360House, the Company
      assumed the obligations to ensure that the salaries were paid for the six months
      following the acquisition to the extent that 360House did not have the cash
      flow
      to satisfy the salary obligations. Additionally, the Company had the obligation,
      for a period of six months from the acquisition, to ensure that 360House
      operating expenses were paid to the extent there was a cash shortfall in
      360House in meeting such expenses, which condition has been
      satisfied.




-
          16
          -




The
      Exchange Agreement contained an option allowing the shareholders of 360House
      to
      unwind the transaction in certain events. In the event the shareholders of
      360House did not want to accept the Earnout Shares at December 31, 2003, they
      could surrender all of their shares in the Company and all of the issued and
      outstanding common stock of 360House shall be returned to the shareholders
      of
      360House. In such event, however, the Company had the option to retain the
      360House shares and pay the value calculated at December 31, 2003 to the
      360House shareholders in cash. Neither of the alternatives were acceptable
      to
      either the Company or the shareholders. The Company and the shareholders
      prepared settlement documents reflecting a position somewhere in between the
      two
      positions outlined in the Exchange Agreement, and the acquisition was
      unwound.





*Acquisition
      of Easy Groups Limited*





Pursuant
      to an Exchange Agreement (the "Agreement") effective September 29, 2006, and
      its
      contemplated transaction that closed October 1, 2006, (the "Closing"), the
      Registrant acquired all of the issued and outstanding capital stock and
      underlying business of Easy Groups Limited and all related companies, including
      but not limited to Easy Dynamic Advertising (Exterior Walls) Limited (herein
      referred to as “Easy Groups”) which is an outdoor advertising company (the
      "Business") in exchange for Forty Two Million Five Hundred Twenty-Seven Thousand
      (42,527,000) shares of common stock of the Registrant, which includes shares
      issued to third party consultants as a material part of this transaction in
      consideration of services rendered. As a result, the shareholders and affiliates
      of Easy Groups (collectively, the “Easy Groups Shareholders”) gained control of
      the Registrant.





Prior
      to
      the Agreement, the Registrant had 13,561,000 shares of common stock issued
      and
      outstanding. Upon the Closing of the transaction, the Registrant had 56,088,000
      shares of common stock outstanding.


(See
      the
      Form 8-K filed with the Commission on November 3, 2006 *.* )





*Business
      of Company*





*Background*





Technology
      allows home buyers and sellers to review property listings that interest them
      through the Internet instead of relying on multiple listing services' printed
      materials that were previously only available to agents. Internet listings
      generally appear only on each individual real estate company's web sites or
      on
      the site of an aggregator of real estate listings. A potential buyer or seller
      must peruse all of the major companies' sites to locate a majority of the
      available product. A real estate brokerage company may spend a significant
      amount of marketing resources to drive people to its Internet site only to
      have
      the prospect visit the site and quickly move on leaving no trace of the
      prospect. Additionally, a prospect may visit the site of an aggregator and
      see a
      listing by a company, but have no direct contact with the real estate agent
      who
      has helped the prospect get to that point.





The
      Company has developed the technology and Internet search engines that allow
      a
      real estate company to overcome the shortfalls of existing technology and still
      take advantage of the public's desire to have ready access to information.
      The
      Company search engines unify the listings of independent brokerage firms
      enabling prospective buyers to view listings from many brokerage
      firms.





In
      addition, and probably more important to real estate brokerage companies, the
      Company's products are designed to capture data about the prospect and store
      it
      for follow up by the Company's agents. Management believes the existence of
      qualified leads means more contact with interested and qualified buyers for
      the
      agents, which in turn generates more sales commissions. Both the agents and
      the
      brokerage company benefit from this collection of information.




-
          17
          -




The
      collection of information for lead generation allows a brokerage company to
      allocate marketing resources to drive people to their site secure in the
      knowledge that a visit by a serious buyer will result in valuable information
      being captured. The Company's products allow its broker customers to increase
      the effectiveness of the leads generated by visits to their web sites through
      capturing valuable information about the prospective buyer and giving the agents
      qualified leads the agent would not otherwise have had.





*Services*





The
      Company provides Internet-delivered lead generation, lead qualification, and
      digital imaging services primarily to the real estate industry and in the last
      year has rebranded the services acquired from its acquisitions to provide a
      unified suite of products for brokers and agents. The Company is marketing
      its
      lead generation services as "LeadMaxx" and its digital imaging services as
      "TourMaxx".





LeadMaxx
      services include the following components:





a.
      "Plug
      in" IDX/VOX search engine customized to meet the needs and desires of customer
      brokerage firms. Real estate companies can choose as little or as much as they
      desire to increase lead generation results.





b.
      LeadMaxx has a comprehensive, integrated backend that helps to manage internet
      leads generated by using LeadMaxx and also can be used as a front desk to manage
      other leads the broker generates. The backend has statistical reporting to
      show
      how many views each property gets from the broker's web site and how many e-mail
      updates are sent to potential buyers and tracks agent performance in converting
      leads to appointments, showings and closings.





c.
      LeadMaxx offers lead qualification services through both e-mail contact and
      call
      center personal contact with potential buyers, to ensure the highest percentage
      of lead conversion.





d.
      LeadMaxx customizes each potential property buyer's experience to the broker's
      Internet site by providing a personalized web page to store favorite properties.
      This allows a potential customer browsing the Internet to schedule appointments
      to see properties while they are online, and the program will send automatic,
      custom e-mail updates of new listings that come with the brokerage firm's
      branding every morning to the potential customers' e-mail
      addresses.





e.
      LeadMaxx personnel can also design and build, and the Company hosts and
      maintains comprehensive, sophisticated, functional, service-oriented productive
      web sites for its customers.





In
      an
      attempt to reduce overhead and costs of the LeadMAXX infrastructure, the Company
      entered into a reseller agreement with Lantrax, Inc., a New York corporation
      ("Lantrax") in September 2003, wherein Lantrax will market and sell the LeadMaxx
      product to its existing customers and new customers, including the maintenance
      of the Company's servers used to deliver LeadMaxx products. This agreement
      will
      remove overhead previously expended to sell LeadMaxx products and the
      maintenance of its servers. The financial impact of this agreement will be
      realized in 2004. LeadMaxx, however, will retain the responsibility of providing
      lead qualification for all existing LeadMaxx customers that subscribe to receive
      those services from its call center.





TourMaxx
      services include the following components:





a.
      The
      TourMaxx principal service includes a photography service that presents a
      virtual tour of a real estate listing to better display a listed home for
      potential buyers. The virtual tour consists of 360 degree views of as many
      rooms
      of a house as the agent or broker desires to feature. The photos of the rooms
      must be shot with a 360 degree lens and then "unwrapped" with special software.
      The Company has developed and trained a network of independent photographers
      to
      take the photos in all those areas where they have contracted with real estate
      companies to provide the service. Because the photography methods are taught
      by
      360house trainers, it does not require that the Company find professionals
      to
      take the pictures. The Company has found that it has been relatively easy to
      locate independent contractors to provide this service. The Company currently
      has a data base of over 300 photographers serving this function and does not
      foresee any significant difficulty in locating sufficient photographers in
      any
      area to service their needs. As virtual tours become more in demand nationwide,
      the Company expects the market for virtual tours to grow rapidly.




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          18
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b.
      TourMaxx also provides digital still photography of the exterior and interior
      of
      any home and presents it on the Internet. Management believes website
      presentation and high-resolution copies of photos taken make this an attractive
      and cost effective substitute when a virtual tour is not available. These still
      tours can be done on a self service basis. Agents can take their own photos
      and
      upload them onto their website using the Company interface. The Company also
      has
      a training cd-rom that explains the entire process from start to finish with
      detailed explanations and informative videos. The Company has discovered,
      however, that its customers have gravitated towards full service solutions
      as
      opposed to a smaller percentage which utilize the self service
      solution.





c.
      TourMaxx allows an agent or brokerage to print advertisement flyers with all
      of
      the listing information and photos of the house and its rooms directly from
      the
      client's website. With today's sophisticated color printers the resulting
      product looks professionally printed at a fraction of the cost.





d.
      TourMaxx services also include detailed statistical information concerning
      the
      number of website visits by potential purchasers to the individual listings
      and
      helps to gauge the effectiveness of the virtual tours and many other features
      to
      make an agent more successful in selling their product.





e.
      TourMaxx can communicate with buyers using automated surveys to improve customer
      satisfaction. Tour data is displayed at company, employee, vendor/sub or
      customer level and is displayed in an easy to read chart, graph and text
      format.





f.
      TourMaxx also includes a service to highlight community amenities, facilities,
      vacant lots and available housing inventory for a subdivision developer to
      allow
      the potential buyers to become acquainted with the area in which they intend
      to
      live.





TourMaxx
      virtual tour services have been customized to provide a similar service for
      the
      construction industry, under the name "PhotoPhase." With Company software a
      builder can create an interactive photo scrapbook of the construction process.
      The photos can be taken by the Company photographers or by the builder at
      various stages of the construction and then the photos are uploaded to a web
      page to allow the builder to communicate with his potential "spec" purchaser
      or
      custom purchaser. This service comes with an automatic survey module that lets
      the builder know the reaction of potential customers throughout the build
      process. The Company has entered into contracts with some of the largest home
      builders in the United States, and will further pursue this part of the real
      estate industry during 2004.





The
      Company generates its revenue by charging fees for its services. The Company
      charges a brokerage company or an individual agent a flat fee for each real
      estate listing that employs a virtual tour, which fee ranges from $79 to $500
      per tour, depending on volume and other factors. The Company also charges for
      other service transactions. The Company will enter into longer term contracts
      with real estate brokerages to provide the TourMaxx services. The contracts
      are
      generally for one to two years. Fees for the LeadMaxx services
      are a monthly service fee ranging from $500 to $5,000 based on the number of
      real estate offices being served by the Company and the level of service being
      performed. The fees generated from these services are then shared with Lantrax
      according to the following schedule: implementation fees: Company
      receives 5%; current customer monthly fees: Company receives 25%; new customer
      monthly fees: Company receives 10%; and lead qualification: Company receives
      90%. Similarly, the LeadMaxx customer contracts are for periods ranging from
      one
      to two years. The Company may also charge a per lead fee of $3 to $5 for each
      lead qualified by the Company customer service personnel if the customer chooses
      to employ that service.




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          19
          -





In
      the
      fiscal year ended September 30, 2003, approximately 90% of the revenue derived
      by the Company was from providing the TourMaxx services and 10% was derived
      from
      LeadMaxx services.





To
      date,
      the Company has marketed its services to the real estate industry primarily
      through personal contact with larger brokerage companies. The Company has
      attended major real estate trade shows since its inception as an exhibitor.
      The
      service introduction has been well received and resulted in numerous contacts
      with real estate brokerages with which the





Company
      has been actively attempting to enter into service agreements. In addition,
      marketing literature has been selectively mailed to the largest brokerage
      companies throughout the United States. Combined, these sales efforts have
      resulted in 12 real estate brokerages in different states signing contracts
      to
      receive the LeadMaxx services which have been implemented by the Company. Some
      of the largest brokerage companies in the country have entered into contracts
      with the Company for the TourMaxx services. The Company provided an average
      of
      almost 2500 virtual tours per month in the 2003 fiscal year, which is an
      increase of over 800 tours per month over the previous year.





The
      Company also provides web design, web development, and supporting web services
      to clients and prospective customers, and generates additional income for the
      services it provides.





*Plan
      of Operation*





The
      Company continues to target the real estate brokerage firms in the United
      States, and to actively undertake efforts to sell the Company's products and
      services to such firms, as a means of attempting to secure a larger share of
      the
      market in selected real estate markets in the United States. The Company will
      undertake active efforts to enter into contracts with the larger real estate
      brokers in each of these market areas.





The
      Company's plan of operation will depend on its ability to raise substantial
      additional capital, of which there can be no assurance. The Company is a party
      to subscription agreements for the sale of its restricted common stock totaling
      $1,000,000. However, as of September 30, 2003, no shares have been issued by
      Company. Since December 31, 2003, the Company has received approximately
      $100,000 under the subscription agreements, but the funding source is under
      no
      obligation to continue making capital investments in the Company. The Company
      has used, and will continue to use, these funds to pay general and
      administrative expenses, and to develop its marketing plan, which includes
      participation in trade shows and direct marketing as well as traveling to meet
      one-on-one with real estate brokers. Although additional funding may be
      terminated at any time, the Company currently believes that funding will
      continue until the subscription agreement is completed. At the time that the
      funding is completed, if the Company has not achieved a breakeven status, the
      Company will begin a program of cost reduction and seek additional investment
      capital to cover any cost shortfall. It is anticipated that cost reductions
      and
      additional investment, if received, will cover the Company's working capital
      needs over the next twelve months.





The
      ability of the Company's technology and the Web presentation to capture valuable
      information concerning house buying prospects is proving valuable. The Company
      has added customer service representatives who are charged with the
      responsibility of contacting all those people visiting a client web site and
      qualifying the prospect's present intent to engage in a real estate transaction.
      If the prospect is deemed to be an "imminent" prospect, the brokerage is
      contacted and given the "hot" lead to be presented to
      an
      agent for follow up. This service of qualifying prospect leads and presenting
      to
      a customer is currently being sold by the Company. The Company is charging
      its
      clients a monthly recurring service fee. To date, there are 12 brokerage
      customers that have engaged the Company to provide the lead generation services,
      which generate approximately $24,000 per month in service revenue.





The
      Company's main focus is on growing TourMaxx and its accompanying virtual tours,
      while also making efficient the lead qualification service of LeadMaxx.
      Currently, many of the sales presentations made by the Company consist of the
      bundled services of the LeadMaxx and TourMaxx services. Revenue from the
      TourMaxx services constituted approximately 90% of the total revenue of the
      Company for the year ended September 30, 2003. The Company intends to continue
      to search for complementary services to offer to its customers and, if acquired,
      they will also be included in the bundle of services offered to Company
      customers.




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          20
          -





*Intellectual
      Property Protection*





The
      Company has developed certain Internet search engine technology it believes
      gives the Company a competitive advantage in servicing its customers. The
      Company has filed a preliminary patent application on the LeadMaxx search engine
      application, and is waiting for a response from the patent office. The Company
      is unsure of its financial ability to complete the patent process, and there
      can
      be no assurance that a patent will be issued.





The
      Company protects its trade secrets through use of confidentiality agreements
      with its employees and customers.





*Major
      Customers*





Approximately
      43% of all Company revenue for fiscal year 2003 was derived from the Company's
      largest five customers. As more customers are added to the services it is
      expected that the percentage received from those customers will be reduced
      significantly. All five of these customers are subscribers to the


TourMaxx
      service.





*Competition*





The
      Company is not aware of other competitors that provide all the same services
      to
      the real estate industry as the Company. However, there are many companies
      that
      provide general Internet delivered services to the real estate industry and
      many
      companies that provide virtual tour services. The virtual tour business has
      very
      low barriers to entry, as a result of which there are numerous local and
      regional companies in the business. To the Company's knowledge, there are
      currently only three companies on a national level, one of which is the Company.
      Many of the competitive services include portions of the services the Company
      provides and are perceived by potential customers as being competitive even
      though they do not provide all of the services the Company offers. Some or
      all
      of the competitors providing such services may have greater financial resources
      than the Company.





*Employees*





The
      Company and its two subsidiaries currently employ 25 people at the Company's
      executive offices in. The Company utilizes over 250 independent contractors
      who
      provide photography services for the TourMaxx services and 92 independent sales
      agents or affiliates in various states who coordinate sales efforts in their
      areas and act as customer liaison for brokerage customers. Such affiliates
      are
      compensated based on a percentage of the revenue generated from customers they
      service.





*Government
      Regulation*





The
      Company's business activities are subject only to general governmental
      regulations.





***Results
      of Operations for the three and six months ended March 31, 2004 and March 31,
      2003***





Revenues.
      The Company generated $0 in revenue during the three months ended March 31,
      2004. During the same three month period in 2003, the Company generated revenue
      of $620,242. The decrease is primarily due to the unwinding of the 360House
      acquisition as 360House revenues are no longer reported as part of the Company’s
      revenue.




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          21
          -





During
      the six months ended March 31, 2004, the Company generated $0 in revenue. During
      the same six month period in 2003, the Company generated revenue of $1,142,656.
      The decrease is primarily due to the unwinding of the 360House acquisition
      as
      360House revenues are no longer reported as part of the Company’s
      revenues.





Operating
      Expenses. Operating expenses for the three months ended March 31, 2004 were
      $158,100 compared to $937,218 for the three months ended March 31, 2003. The
      decrease of approximately $779,118 is due primarily to the unwinding of the
      360House acquisition. The Company's sales and marketing expenses decreased
      $344,229, of which decrease all was a result of the unwinding of 360House
      General and administrative expenses decreased by $415,997, all of which decrease
      related to the unwinding of the 360House acquisition.





During
      the three months ended March 31, 2004, the Company had a net loss of $87,451
      compared to a net loss of $320,708 for the three months ended March 31, 2003.
      The decrease in net loss resulted primarily from the unwinding of the 360House
      acquisition and not reporting the results of its operations in the Company’s
      financial statements, as described above.





*Liquidity
      and Capital Resources*





As
      of
      March 31, 2004, the Company had cash of $9,397, total current assets of $26,321
      total current liabilities of $558,341 and total stockholder's equity deficit
      of
      $532,020 as compared to stockholders' equity deficit of $1,002,118 at September
      30, 2003. Cash increased 8,261, from $1,136 on September 30, 2003.





The
      Company estimates that its monthly expenses in excess of its revenues over
      the
      next several months will be between approximately $25,000 and $50,000 per month,
      depending on the level of activity of the Company and assuming no decrease
      in
      operating expenses. While the Company anticipates that its negative cash flow
      may diminish somewhat as, and to the extent, the Company continues to generate
      increased cash flow from operations, the Company will continue to have the
      need
      for infusions of capital over at least the next several months. To date, the
      Company has met its working capital needs through payments received from the
      sales of its common stock and from loan proceeds from private. There can be
      no
      assurance that the Company will continue to receive loans or equity
      contributions if the Company does not demonstrate increased revenues and other
      favorable operating results over the next several months. In the event payments
      were to terminate, for any reason, the Company would be in immediate need of
      another source of capital. The dilution experienced by the existing shareholders
      in the event of such additional capital infusions cannot be determined at this
      time. There can be no assurance that, in such event, the Company will be able
      to
      locate a source of capital on terms acceptable to the Company, if at
      all.





**ITEM
      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
      RISK.**




As
      of the
      end of the period covered by this report, based on an evaluation of the
      Company's disclosure controls and procedures (as defined in Rules 13a-15(e)
      and
      15(d)-15(e) under the Securities Exchange Act of 1934) the chief executive
      officer and the chief financial officer of the Company has concluded that the
      Company's disclosure controls and procedures are effective to ensure that
      information required to be disclosed by the Company in its Exchange Act reports
      is recorded, processed, summarized and reported within the applicable time
      periods specified by the SEC's rules and forms.





There
      were no significant changes in the Company's internal controls or in any other
      factors which could significantly affect those controls subsequent to the date
      of the most recent evaluation of the Company's internal controls by the Company,
      including any corrective actions with regard to any significant deficiencies
      or
      material weaknesses




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          22
          -





**ITEM
      4. CONTROLS AND PROCEDURES.**





*Evaluation
      of Disclosure Controls and Procedures* .
      Our
      Chief Executive Officer Reed Benson, who is also serving as the Chief Financial
      Officer, performed an evaluation of our disclosure controls and procedures,
      which have been designed to permit us to effectively identify and timely
      disclose important information. They concluded that the controls and procedures
      were effective as of March 31, 2004 to provide reasonable assurance that the
      information required to be disclosed by the Company in reports it files under
      the Exchange Act is recorded, processed, summarized and reported within the
      time
      periods specified in the rules and forms of the SEC. While our disclosure
      controls and procedures provide reasonable assurance that the appropriate
      information will be available on a timely basis, this assurance is subject
      to
      limitations inherent in any control system, no matter how well it may be
      designed or administered.




*Changes
      in* *Internal
      Controls.* There
      was no change in our internal control over financial reporting during the
      quarter ended March 31, 2004, that materially affected, or is reasonably likely
      to materially affect, our internal control over financial
      reporting.




**PART
      II - OTHER INFORMATION**





**ITEM
      1. LEGAL PROCEEDINGS**





We
      are
      not involved in any material pending legal proceedings at this time, and
      management is not aware of any contemplated proceeding by any governmental
      authority.





**ITEM
      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
      PROCEEDS**





None





**ITEM
      3. DEFAULTS UPON SENIOR SECURITIES**





None




**ITEM
      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**





None





**ITEM
      5. OTHER INFORMATION**





This
      Form
      10-QSB filing is being filed in the name of Xvariant, Inc. On August 28, 2006,
      Xvariant, Inc. changed its name to China Ethanol Corporation. On November 17,
      2006, China Ethanol Corporation changed its name to Easy Groups Limited and
      obtained a new symbol which is ESYL, which is reflected in the Form 8-K filed
      on
      December 14, 2006. On June 20, 2007 the Company filed a Certificate of Amendment
      with the State of Nevada to change its name from Easy Groups Limited to China
      Bionanometer Industries Corporation.




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          23
          -




**ITEM
      6. EXHIBITS AND REPORTS ON FORM 8-K**





(a)
      Exhibits




**INDEX
      TO EXHIBITS**


**OF**


**XVARIANT,
      INC.**





31.1
            Rule
                13a-14 (a)/15d-14 (a) Certification of Chief Executive
                Officer.31.2
            Rule
                13a-14 (a)/15d-14 (a) Certification of Chief Financial
                Officer.32
            Section
                1350 Certifications.





(b)
      None.




**SIGNATURES**





Pursuant
      to the requirements of Section 13 of 15(d) of the Securities and Exchange Act
      of
      1934, the Registrant has duly caused this report to be signed on its behalf
      by
      the undersigned, thereunto duly authorized.





**XVARIANT,
                INC.**
              (Registrant)Date:
                September 5, 2007
            By:
            /s/
                Wang Wen’gengWang
                Wen’geng, President




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