UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON D.C. 20549

                                   FORM 10-QSB

                                   (MARK ONE)

 [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                                     OF 1934

                    FOR QUARTERLY PERIOD ENDED JUNE 30, 2001

 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

         FOR THE TRANSITION PERIOD FROM ______________ TO ______________

                         COMMISSION FILE NUMBER 0-25658

                             KALAN GOLD CORPORATION
        (EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)

            COLORADO                                      84-1357927
(STATE OR OTHER JURISDICTION OF                (IRS EMPLOYER IDENTIFICATION NO.)
 INCORPORATION OR ORGANIZATION)

                     SUITE 11.02, 11TH FLOOR MENARA MERAIS,
                     NO. 1, JALAN 19/3, 46300 PETALING JAYA,
                               SELANGOR, MALAYSIA
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

                               011 (603) 7956 7026
                (ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE)

              (FORMER NAME, FORMER ADDRESS AND 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  _X_    No

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:


        Class                      Number of shares outstanding at June 30, 2001
        -------                    ---------------------------------------------
Common stock, $.00001 par value                      97,690,999


<PAGE>
FORM 10-QSB
1ST QUARTER
                                      INDEX

                                                                          Page
PART I  -  FINANCIAL INFORMATION

         ITEM 1. FINANCIAL STATEMENTS

         Condensed consolidated balance sheet as at June 30, 2001
         (Unaudited)                                                           3

         Condensed consolidated statements of operations and comprehensive
         loss for the periods ended June 30, 2001 and June 30, 2000 (As
         restated)(Unaudited)                                                  4

         Condensed consolidated statements of cash flows for the periods
         ended June 30, 2001 and June 30, 2000 (As restated) (Unaudited)       5

         Notes to condensed consolidated financial statements (Unaudited)  6 - 9

         ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS                    10 - 14


PART II - OTHER INFORMATION

         ITEM 1. LEGAL PROCEEDINGS                                            15

         ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS                    15

         ITEM 3. DEFAULTS UPON SENIOR SECURITIES                              15

         ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS          15

         ITEM 5. OTHER INFORMATION                                            15

         ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K                             15

         SIGNATURES                                                           16


SAFE HARBOR STATEMENT

This Form 10-QSB and other reports filed by the Company from time to time with
the Securities and Exchange Commission, as well as the Company's press releases,
contain or may contain forward-looking statements and information that are based
upon beliefs of, and information currently available to, the Company's
management, as well as estimates and assumptions made by the Company's
management. Forward-looking statements can be identified by the use of
forward-looking terminology such as "believes", "may", "should", "anticipates",
"estimates", "expects", "future", "intends", "hopes" or "plans" or the negative
thereof. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual results of the Company
to vary materially from historical results or from any future results expressed
or implied in such forward-looking statements. Such factors include, among
others, the following: revocation of the Company's license, ability to
successfully implement its business plans, market acceptance of fixed wireless
broadband services, ability to obtain services provided by other communications
companies, limited suppliers of LMDS equipment, failure to obtain roof access,
the ability of the Company to raise capital on a timely basis, the Company's
business is subject to existing and future government regulations, failure to
retain qualified personnel, competitive pressures and potentially adverse tax
and cash flow consequences resulting from operating in multiple countries with
different laws and regulations, ability to maintain profitability in the future,
the ability of the Company to deploy VISIONET, and general economic and business
conditions in Malaysia. The Company does not undertake to update, revise or
correct any of the forward-looking information.

                                       2
<PAGE>
PART I -  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                     KALAN GOLD CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                  JUNE 30, 2001
                                   (Unaudited)
<TABLE>
<CAPTION>
                                     ASSETS

<S>                                                                     <C>
Current assets:
     Cash                                                               $    43,967
     Accounts receivable, less allowance for doubtful
       accounts of $779,179                                                 975,777
     Prepaid expenses                                                        24,034
                                                                        -----------
              Total current assets                                        1,043,778
Furniture and equipment, net                                              1,746,235
Intangible assets, net                                                      530,044
Long-term receivables, related parties                                      789,474
                                                                        -----------
                                                                        $ 4,109,531
                                                                        ===========
                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
     Current portion of capital lease obligations                       $    18,919
     Accounts payable                                                       296,680
     Accrued expenses                                                       348,668
     Amount due to an affiliated company                                    186,058
     Amount due to a director                                               231,031
                                                                        -----------
              Total current liabilities                                   1,081,356
                                                                        -----------
     Capital lease obligations, net of current portion                      125,414
     Deferred gain                                                          729,395
                                                                        -----------
              Total liabilities                                           1,936,165
                                                                        -----------
Minority interest                                                           139,116
                                                                        -----------
Shareholders' equity:
     Preferred stock, $0.10 par value; 1,000,000 shares authorized;
       no shares issued and outstanding
     Common stock, $.00001 par value; 100,000,000 shares authorized;
       97,690,999 shares issued and outstanding                                 977
     Additional paid-in capital                                           3,452,411
     Options (Note 10)                                                       42,750
     Deferred compensation cost (Note 10)                                   (41,562)
     Accumulated deficit                                                 (1,476,942)
     Accumulated other comprehensive income                                  56,616
                                                                        -----------
              Total shareholders' equity                                  2,034,250
                                                                        -----------
                                                                        $ 4,109,531
                                                                        ===========
</TABLE>

      See accompanying notes to condensed consolidated financial statements

                                       3
<PAGE>
                     KALAN GOLD CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                             AND COMPREHENSIVE LOSS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                             Three months ended                Six months ended
                                                                  June 30                           June 30
                                                            2001            2000             2001            2000
                                                            ----            ----             ----            -----
                                                                        (As restated,                     (As restated,
                                                                          Note 11)                           Note 11)
<S>                                                    <C>             <C>             <C>             <C>
Revenues:
     Related parties                                   $       --      $    272,022    $       --      $    420,706
     Others                                                 802,631         790,343       1,738,684         791,132
                                                       ------------    ------------    ------------    ------------
                                                            802,631       1,062,365       1,738,684       1,211,838
Cost of revenues                                            757,894         775,071       1,586,868         775,703
                                                       ------------    ------------    ------------    ------------
Gross profit                                                 44,737         287,294         151,816         436,135
                                                       ------------    ------------    ------------    ------------
Operating expenses:
     Sales and marketing                                     47,099          29,225          67,315          51,466
     General and administrative:
       Related parties                                       30,000          75,000          60,000         150,000
       Others                                               196,620         665,970         359,216         843,714
                                                       ------------    ------------    ------------    ------------
Total operating expenses                                    273,719         770,195         486,531       1,045,180
                                                       ------------    ------------    ------------    ------------
Loss from operations                                       (228,982)       (482,901)       (334,715)       (609,045)
                                                       ------------    ------------    ------------    ------------
Other income (expense):
     Interest expense                                        (4,889)        (10,388)         (9,998)        (13,927)
     Gain on disposal of assets
       Related parties                                         --           416,411            --           416,411
       Others                                                  --            43,538             526          43,538
     Other income:
       Related parties                                         --            11,321            --            21,027
                                                       ------------    ------------    ------------    ------------
                                                             (4,889)        460,882          (9,472)        467,049
                                                       ------------    ------------    ------------    ------------
Loss before minority interest                              (233,871)        (22,019)       (344,187)       (141,996)

Minority interest                                            10,550            --            21,117            --
                                                       ------------    ------------    ------------    ------------
Net loss                                               $   (223,321)   $    (22,019)   $   (323,070)   $   (141,996)
Comprehensive income (loss) - translation adjustment            (23)            (76)            (23)            293
                                                       ------------    ------------    ------------    ------------
Comprehensive loss                                     $   (223,344)   $    (22,095)   $   (323,093)   $   (141,703)
                                                       ============    ============    ============    ============
Basic and diluted loss per common share                $          *    $          *    $          *    $          *
                                                       ============    ============    ============    ============

Weighted average number of common shares outstanding     97,326,358      95,926,164      97,326,358      95,926,164
                                                       ============    ============    ============    ============
</TABLE>

* Less than $.01 per share

      See accompanying notes to condensed consolidated financial statements

                                       4
<PAGE>
                     KALAN GOLD CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                 Six Months Ended
                                                                     June 30
                                                                2001          2000
                                                                ----          ----
                                                                           (As restated,
                                                                              Note 11)
<S>                                                         <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
     Net cash used in operating activities                  $  (156,627)   $  (679,464)
                                                            -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES
     Proceeds from sale of furniture and equipment          $       526    $   130,610
     Proceeds from disposal of investment in subsidiaries        13,421           --
     Proceed from sale of assets                                   --          492,105
     Purchase of furniture and equipment                           --         (412,012)
                                                            -----------    -----------
           Net cash provided by investing activities        $    13,947        210,703
                                                            -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES
     Proceeds from issue of shares of common stock               40,000      1,150,000
     Net proceeds from (payments to) affiliated company          40,129       (180,781)
     Net proceeds from (payments to) a director                 110,610       (486,471)
     Payment of obligation under capital leases                  (8,140)        (6,392)
                                                            -----------    -----------
           Net cash provided by financing activities        $   182,599    $   476,356
                                                            -----------    -----------

Effect of exchange rate change on cash                              (23)           293
Net increase in cash                                             39,919          7,595
Cash, beginning of period                                         4,071          3,959
                                                            -----------    -----------
Cash, end of period                                         $    43,967    $    11,847
                                                            ===========    ===========
</TABLE>

      See accompanying notes to condensed consolidated financial statements

                                       5
<PAGE>
                             KALAN GOLD CORPORATION
          NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
                                  JUNE 30, 2001
                                   (UNAUDITED)

1.  BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements of Kalan
Gold Corporation (the "Company") include the accounts of Kalan Gold Corporation
and its wholly-owned subsidiary, Animated Electronic Industries Sdn Bhd ("AEI"),
as well as AEI's 86% owned subsidiary, Perwimas Telecommunications Sdn Bhd
("PTSB"), a company incorporated in Malaysia. All significant intercompany
accounts and transactions have been eliminated on consolidation.

The unaudited condensed consolidated financial statements presented herein have
been prepared in accordance with the instructions to Form 10-QSB and do not
include all the information and note disclosures required by generally accepted
accounting principles for complete financial statements.

In the opinion of management, all adjustments (consisting only of normal
recurring adjustments) which are necessary to provide a fair presentation of
operating results for the interim period presented have been made. The results
of operations for the interim periods presented are not necessarily indicative
of the results to be expected for the entire year.

The financial statements have been prepared on the basis that the Company is a
going concern. Financial data presented herein are unaudited, pursuant to the
rules and regulations of the Securities and Exchange Commission.


2.  GOING CONCERN AND MANAGEMENT'S PLANS

The accompanying consolidated financial statements have been prepared on a going
concern basis, which contemplates the realization of assets and the settlement
of liabilities and commitments in the normal course of business. For the period
ended June 30, 2001, the Company reported a net loss of $323,070 and at June 30,
2001, has an accumulated deficit of $1,476,942. The Company has not recognized
any significant revenues and expects to incur continued cash outflows, which are
expected to result in a working capital deficiency within the current fiscal
year. As a result, the Company may experience difficulty and uncertainty in
meeting its liquidity needs during the current fiscal year.

The Company is developing a wireless broadband network, "VISIONET", in Malaysia
and intends to acquire additional licenses and spectrum rights in other Asian
markets. In November 2000, PTSB entered into a strategic alliance with a
Malaysian Internet service provider. The Company has since developed a revised
business model based on the operations of an integrated national broadband
network. The Company expects to generate revenues by providing other broadband
communication services that include:

1.  operation of  VISIONET;
2.  operation of its multimedia portal, visionetwork.com;
3.  development and operation of local mobile networks that provide mobile
    Internet access through handheld devices; and
4.  production and delivery of training and adult education programs.

                                       6
<PAGE>
2.  GOING CONCERN AND MANAGEMENT'S PLANS (continued)

As in the establishment of many other new businesses, there are various risk
factors including competition, technology availability and market acceptance
risks. The Company requires substantial amounts of capital to establish its
business and expects to incur substantial losses over the next few years.

The Company's plan to overcome its financial difficulties and return to
profitability centers on expanding its business in multimedia content production
and the roll out of VISIONET. To cope with its expansion in the multimedia
content production business, the Company had, since April 2000, sub-contracted
production work to contractors to focus on marketing its content production
services to gain a larger market share. The Company hopes to commercially launch
VISIONET sometime in the second half of 2001 but cannot provide assurance that
any target launch date will be met. The Company is currently negotiating with
application service providers to host and deliver their content via VISIONET.

The Company believes that sufficient cash will be generated from the following
sources to fund its operations for the next twelve months:

o    Intensification of efforts to collect overdue receivables. The Company
     intends to keep close contact with its debtors to keep updated on their
     liquidity status. Legal action will only be taken as a last resort.

o    Advances from a director/officer who is also a major shareholder as
     required to finance the Company's working capital requirements.

o    The Company may consider a private placement of its shares.

o    The Company may also seek to obtain equipment financing.

With the above plans and barring any unforeseen circumstances, Management
believes the Company will be able to continue as a going concern.


3.  TRANSLATION OF CURRENCIES

The functional currency of the Company's subsidiaries is the Malaysian Ringgit.
The financial statements of these subsidiaries are translated into United States
dollars using year-end rates of exchange for assets and liabilities, and average
rates of exchange for the year for revenues, costs, and expenses. Translation
gains and losses are treated as a component of shareholders' equity. The
reporting currency used in the financial statements is USD unless otherwise
stated.


4.       REVENUE RECOGNITION

Revenue represents the net invoiced value of goods sold or fees earned from the
production of multimedia programs and Intranet and management and consulting
services. The Company recognizes revenue from the sales of goods in the period
when significant risks and rewards of ownership has transferred to its
customers. The Company recognizes revenue from the services provided in the
period in which the services are performed and when there is no significant
uncertainty regarding the consideration to be received and the associated costs
to be incurred.

                                       7
<PAGE>
5.  LOSS PER COMMON SHARE

Loss per common share is calculated by dividing net loss by the weighted average
number of common shares outstanding for the period. Diluted loss per common
share includes the dilution that would occur if outstanding stock options and
other dilutive securities were exercised and is comparable to the loss per
common share the Company has historically reported. The diluted loss per common
share calculation excludes the effect of stock options when their exercise
prices exceed the average market price over the period.

6.  INTANGIBLE ASSETS

Intangible assets at June 30, 2001 consist of goodwill of $530,044. Goodwill
represents the costs of the Company's investment in PTSB in excess of the net
tangible assets acquired, and is amortized on the straight line method over five
years.


7.  INCOME TAXES:

Income taxes are provided for the tax effects of transactions reported in the
financial statements and consist of taxes currently due plus deferred taxes
related primarily to differences between the recorded book basis and tax basis
of assets and liabilities for financial and income tax reporting. The deferred
tax assets and liabilities represent the future tax return consequences of those
differences, which will either be taxable or deductible when the assets and
liabilities are recovered or settled. Deferred taxes are also recognized for
operating losses that are available to offset future taxable income and tax
credits that are available to offset future federal income taxes.

No income tax provision was made for the period as the Company incurred losses
from its operation for the six-month periods ended June 30, 2001 and 2000,
respectively.


8.  ESTIMATES

The preparation of 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 balance sheet and the
reported amounts of revenues and expenses during the reporting periods. Actual
results could differ from those estimates.


9.  RECLASSIFICATIONS

Certain amounts in the prior period financial statements have been reclassified
for comparative purposes to conform to the presentation in the current period
financial statements.

                                       8
<PAGE>
10.  STOCK OPTIONS

During the three months ended June 30, 2001, the Company granted options to
purchase 750,000 shares of the Company's common stock at $.085 per share to a
consultant for service to be provided to the Company. These options were valued
at $.057 per share based upon the Black-Sholes option pricing model, resulting
in compensation expense of $42,750, of which $1,188 has been recognized during
the three months ended June 30, 2001. These options are exercisable through May
2006, contingent upon continuous service by the officer through specified dates.


11.  RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTER ENDED
     JUNE 30, 2000

Subsequent to the issuance of the Company's June 30, 2000 Form 10QSB filed
August 18, 2000, management became aware that related party receivables related
to the normal operations and asset sales were not recorded properly. Due to the
extended period of time without payment from related parties and the uncertain
collectibility, the Company has determined that sales to related parties for
normal operations should be recorded as revenue when cash is collected. Also,
the sale of assets to related parties has been recorded under the cost recovery
method. Revenue will be recognized when the cost of the equipment sold has been
fully recovered. The Company's June 30, 2000 financial statements have been
restated to reflect this accounting change as follows:

                                               Six months ended June 30, 2000
                                               ------------------------------

                                               As previously
                                                 reported         As restated
                                               -----------        -----------

     Total assets                              $ 2,754,397        $ 4,001,771
     Total liabilities                             928,433          1,573,392
     Shareholders' equity (deficit)              1,825,964          2,428,379
     Net profit/(loss) applicable to
         the three months ended
         June 30, 2000 common
         Shareholders                                7,539            (22,019)
     Net profit/(loss) applicable to
         the six months ended
         June 30, 2000 common
         shareholders                             (230,211)          (141,996)


                                       9
<PAGE>
         ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

THE FOLLOWING ANALYSIS OF THE OPERATIONS AND FINANCIAL CONDITION OF THE COMPANY
SHOULD BE READ IN CONJUNCTION WITH THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS, INCLUDING THE NOTES THERETO, OF THE COMPANY CONTAINED ELSEWHERE IN
THIS FORM 10-QSB.


OVERVIEW

On April 20, 1999, the Company, formerly known as Knight Natural Gas, Inc., a
Colorado corporation, completed a merger with Animated Electronic Industries Sdn
Bhd ("AEI"), a Malaysian, privately-held company formed October 6, 1988. At
closing, AEI's shareholders received approximately 88% or 83,320,000 shares of
the outstanding post-merger common stock of the Company in exchange for their
AEI common stock. The transaction has been recorded in 1999 as an acquisition of
Kalan Gold Corporation by AEI, and a recapitalization of AEI.

Kalan Gold Corporation and subsidiaries (the "Company") provides network
facilities and services for two-way wireless broadband applications that include
distance learning, live news coverage, remote video surveillance, emergency
field services (including tele-medicine) and on site progress monitoring.
Presently, the Company's revenues are primarily derived from the design,
development and production of interactive multimedia websites and content.


The Company is in the process of building the infrastructure for the commercial
roll out of VISIONET, a countrywide wireless broadband network undertaken by the
Company's subsidiary, Perwimas Telecommunications Sdn Bhd ("PTSB"), sometime in
the second half of 2001. In connection with the build out of VISIONET, the
Company had formalized a long-term strategic business relationship with Siemens
Malaysia. Under the Agreement, Siemens will extend preferred payment terms to
the Company for equipment used in the build out of VISIONET and extend its best
effort to assist the Company to obtain applications and multimedia content from
its global partners that will contribute to the revenue of VISIONET. Siemens
will also be responsible for overall network design, the supply of equipment,
systems integration, build out services and maintenance of a best of breed
end-to-end solution for the deployment of VISIONET. The Company expects to
commit an initial purchase of equipment worth up to $250 thousand from Siemens
for the commercial rollout of VISIONET. Following the countrywide deployment of
VISIONET in Malaysia, the Company hopes to work with Siemens to tap
opportunities in the emerging broadband market in the South East Asian region.

To complement its business in operating a broadband network, the Company has
also entered into a business relationship with Computer Associates
International, Inc. ("CA"), in July 2001, to tap the mobile eBusiness
opportunities in Malaysia and the Asian regional markets. Under the
relationship, CA will be appointed as a technology provider for the IT
infrastructure and data management of VISIONET. In addition to providing the
eBusiness management software, CA will be extending its industry-leading
infrastructure, information and process management solutions to VISIONET to
ensure that the Company's customers can realize the full potential business
value of mobile applications and services. As a demonstration of its confidence
in the Company, a company associated with CA will also acquire a significant
minority stake in the Company's Malaysian subsidiary, subject to the approval of
relevant regulatory authorities. The Company's subsidiary, PTSB, will also act
as a facilitator and partner in Malaysian and Asian projects jointly identified
with CA.

                                       10
<PAGE>
COMPARISON OF THE THREE MONTHS ENDED JUNE 30, 2001 TO THE THREE MONTHS ENDED
JUNE 30, 2000


REVENUES

Revenues for the three months ended June 30, 2001 totaled $802,631 compared to
$1,062,365 for the three months ended June 30, 2000, a decrease of $259,734 or
24%. The decrease in net sales in the three months ended June 30, 2001 as
compared to the three months ended June 30, 2000 was due to decrease in income
received from related parties. No single customer accounted for more than 10% of
total revenue for the three months ended June 30, 2001. For the three months
ended June 30, 2000, one customer, a related entity, accounted for 19% of total
revenue.


GROSS PROFIT

Gross profit decreased to $44,737 for the three months ended June 30, 2001,
compared to $287,294 for the three months ended June 30, 2000, a decrease of
$242,557 or 84%. The decrease in gross profit was due to higher cost of revenues
incurred in 2001. Cost of revenue increased as a percentage of revenue from 73%
for the three months ended June 30, 2000 to 95% for the three months ended June
30, 2001. This increase was a result of the Company requiring additional
external resources in order to fulfill the increase demand for the Company's
non-related party services. Cost of revenues was lower for the three months
ended June 30, 2000 because the outsourcing of content production work only
commenced in April 2000.

SALES AND MARKETING EXPENSES

Sales and marketing expenses increased by $17,874, or 61%, to $47,099 for the
three months ended June 30, 2001 from $29,225 for the three months ended June
30, 2000. The increase was primarily due to higher marketing expenses incurred
to promote the Company's business of developing and producing multimedia
programs and provision of design and consulting services for interactive website
development.


GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses were $226,620 for the three months ended
June 30, 2001 compared to $740,970 for the three months ended June 30, 2000, a
decrease of $514,350 or 69%. The decrease was mainly attributable to reduction
in allowance for doubtful receivables, legal fees and expenses incurred for the
"soft launch" of VISIONET in June 2000. Lower general and administrative
expenses in 2001 were also due to reduced management fees to a company in which
the President and Chief Executive Officer of the Company, has a financial
interest. The management fee was charged on the basis of time spent for the
administration and management services provided to the Company.


GAIN ON DISPOSAL OF ASSETS - RELATED PARTIES

There was no gain on disposal of assets for the three months ended June 30,
2001. For the three months ended June 30, 2000, the Company recognized a
previously deferred gain on disposal of assets of $416,411. The gain was
deferred from 1998 when the company sold a patent to a related party for
$421,521, where the consideration received was an account receivable. The gain
was recognized in 2000 after the Company received full payment from the related
party.

                                       11
<PAGE>
NET LOSS

The Company recorded a net loss of $223,321 for the three months ended June 30,
2001 compared to a net loss of $22,019 for the three months ended June 30, 2000.


COMPARISON OF THE SIX MONTHS ENDED JUNE 30, 2001 TO THE SIX MONTHS ENDED
JUNE 30, 2000


REVENUES

Revenues for the six months ended June 30, 2001 totaled $1,738,684 compared to
$1,211,838 for the six months ended June 30, 2000, an increase of $526,846 or
43%. The increase in net sales in the six months ended June 30, 2001 as compared
to the six months ended June 30, 2000 was mainly due to an increase in fees
earned from the production of multimedia programs. No single customer accounted
for more than 10% of total revenue for the six months ended June 30, 2001. For
the six months ended June 30, 2000, two customers, both related entities,
respectively accounted for 21% and 12% of total revenue.


GROSS PROFIT

Gross profit decreased to $151,816 for the six months ended June 30, 2001,
compared to $436,135 for the six months ended June 30, 2000, a decrease of
$284,319 or 65%. The decrease in gross profit was due to higher cost of revenues
incurred in 2001. Cost of revenues increased by $811,165, or 105%, to $1,586,868
in 2001 from $775,703 in 2000. This increase was a result of the Company
requiring additional external resources in order to fulfill the increase demand
for the Company's non-related party services. The outsourcing of content
production work enabled the Company to develop a team of contractors that will
assist the Company in producing multimedia content and applications that are
crucial to its future business operation. Cost of revenues was lower for the six
months ended June 30, 2000 because the outsourcing of content production work
only commenced in April 2000.

SALES AND MARKETING EXPENSES

Sales and marketing expenses increased by $15,849, or 31%, to $67,315 for the
six months ended June 30, 2001 from $51,466 for the six months ended June 30,
2000. The increase was primarily due to higher marketing expenses incurred to
promote the Company's business of developing and producing multimedia programs
and provision of design and consulting services for interactive website
development.


GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses were $419,216 for the six months ended June
30, 2001 compared to $993,714 for the six months ended June 30, 2000, a decrease
of $574,498 or 58%. The decrease was mainly attributable to lower general and
administrative expenses resulting from outsourcing of multimedia content
production to contractors, reduction in allowance for doubtful receivables,
legal fees and expenses incurred for the "soft launch" of VISIONET in June 2000.
Lower general and administrative expenses in 2001 were also due to reduced
management fees to a company in which the President and Chief Executive Officer
of the Company, has a financial interest. The management fee was charged on the
basis of time spent for the administration and management services provided to
the Company.

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<PAGE>
GAIN ON DISPOSAL OF ASSETS - RELATED PARTIES

There was no gain on disposal of assets for the six months ended June 30, 2001.
For the six months ended June 30, 2000, the Company recognized a previously
deferred gain on disposal of assets of $416,411. The gain was deferred from 1998
when the company sold a patent to a related party for $421,521, where the
consideration received was an account receivable. The gain was recognized in
2000 after the Company received full payment from the related party.


NET LOSS

The Company recorded a net loss of $323,070 for the six months ended June 30,
2001 compared to a net loss of $141,996 for the six months ended June 30, 2000.

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<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2001, the Company had cash of $43,967. All operations were funded
from internally generated funds and working capital advanced by the principal
shareholder, director and officer of the Company. These advances bear no
interest and have no fixed terms of repayment.

For the six months ended June 30, 2001, cash used in operating activities of
$156,627 was attributable to higher operating expenses.

Net cash received from investing activities of $13,947 was primarily due to
receipt of proceeds attributable to sale of a subsidiary in 2000.

Net cash provided by financing activities of $182,599 was primarily from the
proceeds on issuance of shares of common stock for $40,000 and advances by the
principal shareholder, director and officer of the Company. As of June 30, 2001,
the Company owed Mr. Lim, the Chief Executive Officer, President and a Director
of the Company, $231,031 for short-term cash advances made to the subsidiary of
the Company for working capital purposes from time to time. Additionally, as of
June 30, 2001 the amount owing to a company in which Mr. Lim has a financial
interest amounted to $186,058. This amount was for short-term cash advances made
to the Company and its subsidiaries for working capital purposes from time to
time and for management fees. These amounts are unsecured, bear no interest and
have no fixed terms of repayment.

The Company believes that sufficient cash will be generated from the following
sources to fund its operations for the next twelve months:

o    Intensification of efforts to collect overdue receivables. The Company will
     maintain close contact with its debtors to keep updated on their liquidity
     status. The debtors will be persuaded to give priority to outstanding debts
     due to the Company whenever funds are available. Legal action will only be
     taken as a last resort.

o    Advances from director and major shareholder as and when required to
     finance Kalan's working capital requirements. The Company's President and
     CEO, Mr. Patrick Lim, who is also the Company's major shareholder, has
     committed himself to advance funds to the Company for working capital. Such
     funds have been provided by Mr. Lim since the completion of the reverse
     acquisition of Kalan by AEI.

o    The Company may consider a private placement of its shares.

o    The Company may also seek to obtain equipment financing.

In addition to internally generated funds and financial support from a director
and major shareholder, the Company seeks to raise additional funds from equity
or debt financing for its future working capital requirements. As of December
31, 2000 the Company has to date acquired assets of approximately $1.2 million,
including asset purchases of approximately $395,000 in year 2000, in preparing
for the roll out of VISIONET. During the period ended June 30, 2001, the Company
did not acquire additional equipment. The Company expects to commit purchase
equipment of approximately $250 thousand for the commercial rollout of VISIONET
in 2001. The Company estimates that additional capital expenditures up to $5.0
million will be required for the countrywide deployment of VISIONET. There is,
however, no assurance that financing will be available or, if available, that it
would be offered to the Company on acceptable terms. The Company will
continuously evaluate its financing requirements and may decide to consider
alternative modes of financing.

                                       14
<PAGE>
PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Details of the Company's legal proceedings have been described in the Company's
Form 10-KSB for the year ended December 31, 2000. There were no further
developments with respect to the Company's legal proceedings during the period
ended June 30, 2001.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

On June 1, 2001, pursuant to a retainer agreement between the Company and its
Director of Investor Relations, Mr. Joseph Daley, the Company granted a stock
option to Mr. Daley for 750,000 shares of common stock at $0.085 per share.
These options were valued at $.057 per share based upon the Black-Sholes option
pricing model, resulting in compensation expense of $42,750, of which $1,188 has
been recognized during the three months ended June 30, 2001. The option is
exercisable through May 2006, contingent upon continuous service by the optionee
through specified date and for certain limited time thereafter in the event of
termination of the retainer agreement.

On May 18, 2001, the Company sold 400,000 shares of its restricted common stocks
to Mr. Wan Malek Ibrahim at $0.10 per share. The shares were sold in reliance
upon the exemption provided by Regulation S under the Securities Act of 1933, as
amended.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     None.

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

     None.

ITEM 5. OTHER INFORMATION

     None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a) Exhibits

          None.

     (b) Reports on Form 8-K:

          None.

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<PAGE>
                                   SIGNATURES

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

                                         KALAN GOLD CORPORATION
                                              (Registrant)



DATE: August 14, 2001                    BY: /s/ Patrick Soon-Hock Lim
                                             ------------------------------
                                             Patrick Soon-Hock Lim
                                             President & Chief Executive Officer

DATE: August 14, 2001                    BY: /s/ Chee Hong Leong
                                             ------------------------------
                                             Chee Hong Leong
                                             Chief Financial Officer
                                             (Principal Financial Officer and
                                              Principal Accounting Officer)

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