U.S. 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 the quarterly period ended September 30, 2001.

       Transaction report under section 13 or 15(d) of the Securities
-------
Exchange Act of 1934 for the transition period from ________ to __________.

Commission File No.:     0-30851

                 DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                 (Name of small business in its charter)

Nevada                                                 88-0404114
(State or other Jurisdiction of Incorporation)       (IRS Employer Id. No.)

Unit 10, 8980 Fraserwood Court
Burnaby, British Columbia
Canada                    V5J 5H7
(Address of Principal Office)

Issuer's telephone number:          (604) 438-3598

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities 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
        -------       -------

<PAGE>


State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.  At September 30, 2001, there were
12,906,000 common shares outstanding with a par value of $0.0004.

Transitional Small Business Disclosure Format (Check one):
Yes             No
    ------        ------


<PAGE>



PART I - FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS AND EXHIBITS

The unaudited financial statements of the registrant for the three-month periods
ended September 30, 2001 and September 30, 2000, follow.  The financial
statements reflect all adjustments which are, in the opinion of management,
necessary so as to ensure a fair statement of the results for the interim period
presented.



                               MOEN AND COMPANY
                           CHARTERED ACCOUNTANTS

PO Box 10129
1400 IBM Tower                                   Telephone:   (604)662-8899
701 West Georgia Street                          Fax:         (604)662-8809
Vancouver, BC, Canada,   V7Y 1C6
--------------------------------------------------------------------------------


                     INDEPENDENT ACCOUNTANTS' REVIEW REPORT
                     --------------------------------------


Board of Directors and Stockholders
Digital Village World Technologies, Inc. (formerly Body Concepts, Corp.)
(A Nevada Corporation)
(A Development Stage Company)

We have reviewed the accompanying Consolidated Balance Sheet of Digital Village
World Technologies, Inc. (formerly Body Concepts, Corp.) (A Nevada Corporation)
(A Development Stage Company) as of September 30, 2001, and the Statements of
Operations, Cash Flows and Changes in Stockholders' Equity for the nine month
period then ended.  These financial statements are the responsibility of the
Company's management.

We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants.  A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters.  It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole.  Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements for them to be in conformity
with United States generally accepted accounting principles (GAAP).

The September 30, 2000 financial statements of Digital Village World
Technologies, Inc. were reviewed by other accountants whose report dated
November 15, 2000, stated that they were not aware of any material modifications
that should be made to those statements in order for them to be in conformity
with generally accepted accounting principles.


                                                 /s/Moen and Company

                                                 Chartered Accountants

Vancouver, British Columbia, Canada
November 9, 2001


<PAGE>

                 DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                     (FORMERLY BODY CONCEPTS, INC.)
                         (A Nevada Corporation)
                       (A Development Stage Company)
                       Consolidated Balance Sheets
                September 30, 2001 and September 30, 2000
                             (In US Dollars)
                               (Unaudited)

                                                         2001            2000
                                                         ----            ----
                                 Assets
Current Assets
   Cash and cash equivalents (note 3)              $     10,899    $     43,633
   Accounts receivable (note 4)                           4,354            -
   Prepaid expenses and deposit                           5,107            -
                                                   ------------    ------------
                                                         20,360          43,633
                                                   ------------    ------------
Fixed Assets, at cost (note 2)                           83,028            -
Less:  accumulated depreciation                         (19,371)           -
                                                   ------------    ------------
                                                         63,657            -
                                                   ------------    ------------
Goodwill, at cost (note 5)                               48,070            -
                                                   ------------    ------------
                                                   $    132,087    $     43,633
                                                   ============    ============

                         Liabilities and Stockholders' Equity

Current Liabilities
 Accounts payable and accrued (note 6)             $     50,275    $        550
 Current portion of loan (note 8)                         6,811
 Due to related parties (note 7)                        194,481            -
                                                   ------------    ------------
                                                        251,567             550
                                                   ------------    ------------

Long-term Liabilities
 Loan payable (note 8)                                    5,108            -
                                                   ------------    ------------
Stockholders' Equity
 Capital stock (note 10)
  Authorized
   62,500,000 common shares at $0.0004 par value
  Issued
   12,906,000 common shares (2000 - 4,375,000
    shares - post split) - par value                      5,162           1,750
   Paid in capital in excess of par
   value of stock                                       116,734          75,750
                                                   ------------    ------------
                                                        121,896          77,500
 Deficit, accumulated during the
  development stage                                    (246,281)        (34,417)
 Cumulative translation (note 2)                           (203)           -
                                                   ------------    ------------
                                                       (124,588)         43,083
                                                   ------------    ------------
                                                   $    132,087    $     43,633
                                                   ============    ============


Approved on behalf of the board:

          /s/Yu Wen Cheng                    , Director
---------------------------------------------

          /s/Peng Chen                       , Director
---------------------------------------------


       See Accompanying Notes and Independent Accountants' Review Report


<PAGE>



                 DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                     (FORMERLY BODY CONCEPTS, INC.)
                         (A Nevada Corporation)
                       (A Development Stage Company)
                   Consolidated Statement of Operations
                September 30, 2001 and September 30, 2000
                             (In US Dollars)
                               (Unaudited)
<TABLE>
<CAPTION>
                                               Cumulative From
                                                Inception Date                                    Nine Months
                                               of Sep. 15, 1998        Quarter Ended                 Ended
                                                 to Sep. 30,           September 30,             September 30,
                                                                -------------------------   -------------------------
                                                    2001            2001         2000            2001         2000
                                               --------------   ------------ ------------   ------------ ------------
<S>                                            <C>              <C>          <C>            <C>          <C>
Revenue
   Interest and other income                   $     7,791      $       171  $       598    $     3,937  $     2,106
                                               -----------      -----------  -----------    -----------  -----------

Administration Costs
   Advertising                                         712             -            -              -            -
   Bank charges and interest                         1,940              625           67          1,435          202
   Consulting                                       11,982            4,655         -             5,978       20,000
   Depreciation                                     19,371            6,758         -            18,865         -
   License, dues and insurance                       1,885              900         -               900         -
   Office costs                                      5,574            1,151         -             5,256         -
   Rentals and leases                               20,872            4,240         -            18,651          300
   Professional fees                                55,647           23,234         -            47,710        2,550
   Salary and benefits                              48,627            8,425         -            44,680         -
   Stock-based compensation                         20,000             -            -            20,000         -
   Telephone and utilities                          16,230            1,878         -            15,697         -
   Transfer agent and filing fees                   23,756           16,509         -            22,420          200
   Travel and promotion                             27,476            3,665         -            25,537         -
                                               -----------      -----------  -----------    -----------  -----------

                                                   254,072           72,040           67        227,129       23,252
                                               -----------      -----------  -----------    -----------  -----------
Net profit (loss) for the period               $  (246,281)     $   (71,869) $       531    $  (223,192) $   (21,146)
                                               ===========      ===========  ===========    ===========  ===========

Basic and diluted profit (loss) per share                       $     (0.01) $     (0.00)   $     (0.02) $     (0.00)
                                                                ===========  ===========    ===========  ===========
Weighted average number of
  common shares used to
  compute basic and fully
  diluted loss per share                                         12,906,000    4,375,000     12,893,335    4,375,000
                                                                ===========  ===========    ===========  ===========
</TABLE>

       See Accompanying Notes and Independent Accountants' Review Report

<PAGE>
Page


                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
               Consolidated Statements of Retained Earnings (Deficit)
                                (In US Dollars)
                                  (Unaudited)
<TABLE>
<CAPTION>
                                               Cumulative From
                                                Inception Date                                    Nine Months
                                               of Sep. 15, 1998        Quarter Ended                 Ended
                                                 to Sep. 30,           September 30,             September 30,
                                                                -------------------------   -------------------------
                                                    2001            2001         2000            2001         2000
                                               --------------   ------------ ------------   ------------ ------------
<S>                                            <C>              <C>          <C>            <C>          <C>
Retained earnings (deficit),
   beginning of period                                          $  (174,412) $   (34,948)   $   (23,089) $   (13,271)
Net profit (loss) for the period               $  (246,281)         (71,869)         531       (223,192)     (21,146)
                                               -----------      -----------  -----------    -----------  -----------
Retained earnings (deficit),
   end of period                               $  (246,281)     $  (246,281) $   (34,417)   $  (246,281) $   (34,417)
                                               ===========      ===========  ===========    ===========  ===========
</TABLE>



       See Accompanying Notes and Independent Accountants' Review Report


<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                      Consolidated Statements of Cash Flows
                                 (In US Dollars)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                               Cumulative From
                                                Inception Date                                    Nine Months
                                               of Sep. 15, 1998        Quarter Ended                 Ended
                                                 to Sep. 30,           September 30,             September 30,
                                                                -------------------------   -------------------------
                                                    2001            2001         2000            2001         2000
                                               --------------   ------------ ------------   ------------ ------------
<S>                                            <C>              <C>          <C>            <C>          <C>
Cash derived from (used for)
  Operating activities
   Net profit (loss) for the period            $  (246,281)     $   (71,869) $       531    $  (223,192) $   (21,146)
   Items not requiring use of cash
    Depreciation                                    19,371            6,758         -            18,865         -
   Cumulative translation                             (203)            -            -               265         -
   Changes in non-cash
    working capital items
    Accounts receivable                             (4,354)           7,352         -             5,966         -
    Prepaid expenses and deposit                    (5,107)            -            -            (5,107)        -
    Accounts payable and accrued                    50,275           41,986         -            30,596         -
                                               -----------      -----------  -----------    -----------  -----------
                                                  (186,299)         (15,773)         531       (172,607)     (21,146)
                                               -----------      -----------  -----------    -----------  -----------
Financing activities
   Issuance of shares                              121,896             -            -            41,000         -
   Loan payable                                     11,919           (1,703)        -            (5,109)        -
   Due to related parties                          194,481           19,547         -            50,058         -
                                               -----------      -----------  -----------    -----------  -----------
                                                   328,296           17,844         -            85,949         -
                                               -----------      -----------  -----------    -----------  -----------
   Investing activities
    Capital assets purchased                       (83,028)            -            -              -            -
    Goodwill                                       (48,070)            -            -              -            -
                                               -----------      -----------  -----------    -----------  -----------
                                                  (131,098)            -            -              -            -
                                               -----------      -----------  -----------    -----------  -----------
Cash and cash equivalents, increase
  (decrease) during the period                      10,899            2,071          531        (86,658)     (21,146)

Cash and cash equivalents,
  beginning of period                                                 8,828       43,102         97,557       64,779
                                               -----------      -----------  -----------    -----------  -----------
Cash and cash equivalents,
  end of period                                $    10,899      $    10,899  $    43,633    $    10,899  $    43,633
                                               ===========      ===========  ===========    ===========  ===========
</TABLE>

       See Accompanying Notes and Independent Accountants' Review Report

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                 Statement of Changes in Stockholders' Equity
       From Date of Inception on September 15, 1998 to September 30, 2001
                               (In U.S. Dollars)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                         Deficit Accum-
                                             Number of             Additional    Total    ulated During                 Total
                                              Common      par       Paid-in     Capital   The Develop-    Cumulative  Stockholders'
                                              Shares     Value      Capital      Stock     ment Stage     Translation   Equity
                                         ------------------------------------------------------------------------------------------
<S>                                      <C>            <C>        <C>          <C>         <C>            <C>      <C>
9/15/98 issuance of common
  stock for cash                          1,000,000     $1,000     $  1,500     $  2,500                            $    2,500

12/31/98 issuance of common
  stock for cash                            750,000        750       74,250       75,000                                75,000

Net loss for the year ended
 December 31, 1998                                                                          $    (737)                    (737)
                                         ------------------------------------------------------------------------------------------
Balance, December 31, 1998                1,750,000      1,750       75,750       77,500         (737)                  76,763

Net loss for the year ended
 December 31, 1999                                                                            (12,534)                 (12,534)
                                         ------------------------------------------------------------------------------------------

Balance, December 31, 1999                1,750,000      1,750       75,750       77,500      (13,271)                  64,229

Balance, May 19, 2000
 before forward split                     1,750,000      1,750       75,750       77,500      (13,271)                  64,229
                                          =========================================================================================

05/19/00 2.5 to 1 forward split           4,375,000      1,750       75,750       77,500      (13,271)                  64,229
12/18/00 share exchange                   8,490,000      3,396                     3,396                                3,396

Net loss for the year ended
 December 31, 2000                                                                             (9,818)                  (9,818)

 Cumulative translation                                                                                     $ (468)       (468)
                                         ------------------------------------------------------------------------------------------
Balance, December 31, 2000               12,865,000      5,146       75,750       80,896      (23,089)        (468)     57,339
2/7/01 issuance of common
 stock for cash                              10,000          4        9,996       10,000                               10,000
3/30/01 issuance of common
 stock for compensation                      20,000          8       19,992       20,000                               20,000
4/6/01 issuance of common
 stock for cash                              11,000          4       10,996       11,000                               11,000
Net loss for nine months
 ended September 30, 2001                                                                    (223,192)                (223,192)
Cumulative translation                                                                                         265         265
                                         ------------------------------------------------------------------------------------------
<S>                                      <C>            <C>        <C>          <C>         <C>            <C>      <C>
Balance, September 30, 2001              12,906,000     $5,162     $116,734     $121,896    $(246,281)     $  (203) $ (124,588)
                                          =========================================================================================
</TABLE>

       See Accompanying Notes and Independent Accountants' Review Report

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 1.   ORGANIZATION AND NATURE OF BUSINESS

          The Company was incorporated under the laws of the State of Nevada on
          September 15, 1998, as Body Concepts, Inc. On May 25, 2000 the Company
          changed its name from Body Concepts, Inc. to Digital Village World
          Technologies, Inc.

          On May 19, 2000 the Company increased its authorized capital stock
          from 25,000,000 common shares with a par value of $0.001 to 62,500,000
          common shares with a par value of $0.0004.

          On May 19, 2000 the Company completed a 2.5:1 forward split of its
          outstanding stock. This forward split increased the number of issued
          and outstanding shares from 1,750,000 common shares to 4,375,000
          common shares.

          Pursuant to the terms of a share exchange which was effective as of
          December 18, 2000, the Company acquired all of the issued and
          outstanding stock of Digital Village World Technologies (Canada) Inc.
          ("DVC") in exchange for the issuance of 8,490,000 shares of its
          authorized but previously unissued common stock, which shares were
          valued at par value for purposes of the acquisition. The acquisition
          was accounted for as a purchase, and accordingly, the operating
          results for DVC will be reported only for the period subsequent to the
          acquisition. Assets and liabilities of DVC at the date of acquisition
          on December 18, 2000, are as follows:

            Assets
              Cash and cash equivalents                      $   56,725
              Accounts receivable                                10,285
              Fixed assets, net                                  83,028
                                                             ----------
                                                                150,038
                                                             ----------

           Liabilities
             Accounts payable                                    13,161
             Current portion of loan                              6,811
             Due to related company                              20,000
             Due to related parties                             144,423
                                                             ----------
                                                                184,395
             Long-term loan                                      10,785
                                                             ----------
                                                                195,180
                                                             ----------
           Net assets (liabilities)                             (45,142)
           Cumulative translation, included in above,
            Booked in stockholders' equity of the Company           468
                                                             ----------
                                                                (44,674)
           Goodwill on acquisition (note 5)                      48,070
                                                             ----------
           Issuance of 8,490,000 common shares at par value  $    3,396
                                                             ==========

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 1.   ORGANIZATION AND NATURE OF BUSINESS (cont'd)

          DVC is a Canadian company incorporated in the Province of British
          Columbia, Canada. DVC is an internet content provider that provides
          bi-lingual content in Chinese and English, technical services to
          companies in China, and provides third party internet services such as
          web design, web hosting and content development for firms that
          specialize in naturopathic and traditional eastern health sciences in
          North America.

          The historical information of Digital Village World Technologies, Inc.
          that is the basis for the pro forma information at December 18, 2000
          is as follows:

               Summary Balance Sheet
                 Assets
                    Cash                                $   44,171
                    Advances to related company             20,000
                                                        ----------
                                                        $   64,171
                                                        ==========
                 Liabilities
                    Accounts payable                         1,871
                                                        ----------
                 Stockholders' equity
                    Capital stock - par value                1,750
                        - additional paid-in capital        75,750
                                                        ----------
                                                            77,500
                 Deficit                                   (15,200)
                                                        ----------
                                                            62,300
                                                        ----------
                                                        $   64,171
                                                        ==========

Note 2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          Principles of consolidation

          The accompanying consolidated financial statements include the
          accounts of the Company and its wholly-owned subsidiary, Digital
          Village World Technologies (Canada) Inc. All significant intercompany
          transactions and balances have been eliminated.

          Basis of presentation
          These financial statements have been prepared in accordance with
          Accounting Principles Generally Accepted in the United States
          ("USGAAP").

          Development stage company
          The accompanying financial statements have been prepared in accordance
          with the provisions of Statement of Financial Accounting Standard No.
          7, "Accounting and Reporting by Development Stage Enterprises".

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

          Use of estimates
          The preparation of financial statements in conformity with USGAAP
          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 dates of the financial
          statements and the reported amounts of revenues and expenses during
          the reporting periods. Actual results could differ from those
          estimates.

          Cash and cash equivalents
          Cash and cash equivalents consist of cash on deposit and highly liquid
          short-term interest bearing securities with a maturity at the date of
          purchase of three months or less.

          Income Taxes
          Provisions for income taxes are based on taxes payable or refundable
          for the current year and deferred taxes on temporary differences
          between the amount of taxable income and pretax financial income and
          between the tax bases of assets and liabilities and their reported
          amounts in the financial statements. Deferred tax assets and
          liabilities are included in the financial statement at currently
          enacted income tax rates applicable to the period in which the
          deferred tax assets and liabilities are expected to be realized or
          settled as prescribed in FASB Statement No. 109, Accounting for Income
          Taxes. As changes in tax laws or rate are enacted, deferred tax assets
          and liabilities are adjusted through the provision for income taxes.

          Compensated absences
          Employees of the corporation are entitled to paid vacations, sick days
          and other time off depending on job classification, length of service
          and other factors. It is impractical to estimate the amount of
          compensation for future absences, and accordingly, no liability has
          been recorded in the accompanying financial statements. The
          corporation's policy is to recognize the costs of compensated absences
          when paid to employees.

          Net profit per share
          The Company adopted Statement of Financial Accounting Standards No.
          128 that requires the reporting of both basic and diluted earnings per
          share. Basic earnings per share is computed by dividing net income
          available to common shareowners by the weighted average number of
          common shares outstanding for the period. Diluted earnings per share
          reflects the potential dilution that could occur if securities or
          other contacts to issue common stock were exercised or converted into
          common stock. In accordance with FASB 128, any anti-dilution effects
          on net loss per share are excluded.

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

          Disclosure about fair value of financial instruments
          The Company has financial instruments, none of which are held for
          trading purposes. The Company estimates that the fair value of all
          financial instruments at September 30, 2001 as defined in FASB 107,
          does not differ materially from the aggregate carrying values of its
          financial instruments recorded in the accompanying balance sheet. The
          estimated fair value amounts have been determined by the Company using
          available market information and appropriate valuation methodologies.
          Considerable judgment is required in interpreting market data to
          develop the estimates of fair value, and accordingly, the estimates
          are not necessarily indicative of the amounts that the Company could
          realize in a current market exchange.

          Concentration of credit risk
          Financial instruments that potentially subject the Company to a
          significant concentration of credit risk consist primarily of cash and
          cash equivalents which are not collateralized. The Company limits its
          exposure to credit loss by placing its cash and cash equivalents with
          high credit quality financial institutions.

          Fixed assets
          Fixed assets are stated at cost less accumulated depreciation.
          Depreciation is recorded on the following rates:

            Office equipment   - 20% per annum on the declining balance basis
            Vehicles           - 30% per annum on the declining balance basis
            Computer equipment - 30% per annum on the declining balance basis

            As at September 30, 2001, the fixed assets and accumulated
            depreciation are as follows:

                                       At Cost        Accumulated     Net Book
                                      (12/18/00)     Depreciation      Value
                                     ----------      ------------      -----
            Office equipment         $   5,430       $     831        $   4,599
            Vehicles                    28,350           7,220           21,130
            Computer equipment          49,248          11,320           37,928
                                     ---------       ---------        ---------
                                     $  83,028       $  19,371        $  63,657
                                     =========       =========        =========

          Long-lived assets
          Statement of Financial Accounting Standards No. 121, "Accounting for
          the Impairment of Long-Lived Assets and for Long-Lived Assets to be
          Disposed Of," requires that long-lived assets be reviewed for
          impairment whenever events or changes in circumstances indicate that
          the carrying amount of the asset in question may not be recoverable.
          This standard did not have a material effect on the Company's results
          of operations, cash flows or financial position in these financial
          statements.

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

          Foreign currency translation

          The functional currency of the parent Company Digital Village World
          Technologies, Inc. is the United States Dollar and of Digital Village
          World Technologies (Canada) Inc. is the Canadian Dollar and the
          reporting currency on a consolidated basis is the United States
          Dollar.

          The assets, liabilities, and operations of the Company are expressed
          in the functional currency of the Company in United States Dollars.
          Operations of the subsidiary Digital Village World Technologies
          (Canada) Inc. are in Canadian Dollars and in conformity with US GAAP
          they are translated into the reporting currency, the United States
          Dollar.

          Monetary assets and liabilities are translated at the current rate of
          exchange.

          The weighted average exchange rate for the period is used to translate
          revenue, expenses, and gains or losses from the functional currency to
          the reporting currency.

          The gain or loss on translation is reported as a separate component of
          stockholders' equity and not recognized in net income. Gains or losses
          on remeasurement are recognized in current net income.

          Gains or losses from foreign currency transactions are recognized in
          current net income.

          Fixed assets are measured at historical exchange rates that existed at
          the time of the transaction.

          Depreciation is recorded at historical exchange rates that existed at
          the time the underlying related asset was acquired.

          An analysis of the changes in the cumulative translation adjustment as
          disclosed as part of stockholders' equity, is as follows:

                                                       Nine Months Ended
                                                         September 30,
                                                --------------------------------
                                                       2001           2000
                                                ---------------  ---------------
          Beginning balance                     $          (468) $           -
          Change during the period                          265              -
                                                ---------------  ---------------
          Ending balance                        $          (203) $           -
                                                ===============  ===============

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

          The effect of exchange rate changes on cash balances forms part of the
          reconciliation of change in cash and cash equivalents during the
          period.

          Revenue Recognition

          The Securities and Exchange Commission (SEC) issued Staff Accounting
          Bulletin (SAB) 101, Revenue Recognition in Financial Statements, in
          December 1999. The SAB summarizes certain of the SEC staff's views in
          applying generally accepted accounting principles to revenue
          recognition in financial statements. During the current year, the
          Company performed a review of its revenue recognition policies and
          determined that it is in compliance with SAB 101.

          Web Site Development Expenses

          Web site development expenses relate to the development of new online
          services and consist of employee compensation, as well as costs for
          content, facilities and equipment. The consensus in the Financial
          Accounting Standards Board Emerging Issues Task Force (EITF) Issue No.
          00-2, Accounting for Web Site Development Costs, requires that certain
          costs to develop Web sites be capitalized (and amortized) or expensed,
          depending on the nature of the costs.

          Shipping and Handing Fees and Costs

          In September 2000, the Financial Accounting Standards Board Emerging
          Issues Task Force (EITF) reached a final consensus on EITF Issue No.
          00-10, Accounting for Shipping and Handling Fees and Costs. This
          consensus requires that all amounts billed to a customer in a sale
          transaction related to shipping and handling, be classified as
          revenue. With respect to the classification of costs related to
          shipping and handling incurred by the seller, the EITF determined that
          the classification of such costs is an accounting policy decision that
          should be disclosed. The Company will adopt the consensus in the Issue
          in fiscal 2001.

Note 3.   CASH AND CASH EQUIVALENTS - $10,899

          The total for cash and cash equivalents as at September 30, 2001, is
          made up as follows:

            Cash in bank current accounts (indebtedness)         $     (693)
            GST refund cheques undeposited                            9,685
            Cash in lawyer's trust account                            1,907
                                                                 ----------
            Total                                                $   10,899
                                                                 ==========

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 4.   ACCOUNTS RECEIVABLE - $4,354

          The accounts receivable balance of $4,354 as at September 30, 2001 are
          Canadian Goods and Services Taxes refundable

Note 5.   GOODWILL - $48,070

          On December 18, 2000 the acquisition of Digital Village World
          Technologies (Canada) Inc. included liabilities that exceeded the
          assets by $44,674 and the consideration of 8,490,000 treasury shares
          at par value of $0.0004 per share or $3,396, resulted in goodwill on
          the transaction of $48,070 that will be amortized over ten years,
          commencing after revenue commences from proposed operations.

Note 6.   ACCOUNTS PAYABLE - $50,275

          Details of the total of accounts payable and accrued as at September
          30, 2001, are as follows:

            Frascona, Joiner, Goodman and Greenstein, P.C.    $   2,323
            Loeb&Loeb LLP                                         4,670
            Moen and Company                                     18,840
            Moffitt & Company                                       525
            Payroll and other payables                            7,408
            Resident Agents of Nevada, Inc.                         197
            RR Donnelley Receivables, Inc.                       15,995
            Signature Stock Transfer, Inc.                          317
                                                              ---------
            Total                                             $  50,275
                                                              =========

Note 7.   RELATED PARTY TRANSACTIONS - $194,481

          The amount of $144,423 is due to a related party, Tianjin Teda Yu
          Cheng Group. The amount of $50,058 is due to Directors of the Company
          as at September 30, 2001 for loans that they have advanced to the
          Company. These amounts are unsecured, non interest bearing, with no
          specific terms of repayment.

Note 8.   LOAN PAYABLE - $11,919

          As at January 1, 2000, Mr. Richard Wang, Director and President of the
          Company transferred a loan to DVC which was signed by him on June 21,
          1999 with Ford Credit Canada Limited for financing of CAD$40,869 for
          purchase of a new vehicle with the interest rate of 0.10% per annum
          for a total of 48 payments with each payment of CAD$851.44 principal
          and interest. This vehicle is owned by the Company. The first payment
          commenced on July 21, 1999 and the last payment is due on June 21,
          2003. This loan is guaranteed by Mr. Richard Wang. As at September 30,
          2001, the principal balance is as follows:

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 8.   LOAN PAYABLE - $11,919 (cont'd)
                    Initial loan                           $    27,246
                    Repayment to September 30, 2001             15,327
                                                           -----------
                    Balance, September 30, 2001                 11,919
                    Current portion of loan                      6,811
                                                           -----------
                    Long term loan at September 30, 2001   $     5,108
                                                           ===========

Note 9.   LEASE OBLIGATIONS

          a)   Vehicle Lease
               On January 19, 2000, DVC entered into a 36 month lease with
               Lansdowne Dodge City Ltd. for a vehicle to be used by the
               Company. Lease payments are expensed as they are incurred. Lease
               obligations are as follows:
                       2001   CAD$   2,000
                       2002   CAD$   8,000
                       2003   CAD$     667

          b)   Lease of Premises
               DVC has lease obligations for office premises for the next 12
               months for CAD$25,369.

Note 10.  CAPITAL STOCK
          a)   Authorized: 62,500,000 common shares with a par value of $0.0004
               per share.
          b)   Issued and outstanding common shares as at September 30, 2001,
               are as follows:
<TABLE>
<CAPTION>
                                                                                          Additional
                                            Issued          Number of           Par          Paid-in
                                             Date             Shares           Value         Capital        Total
                                           ----------       ----------       ----------    ----------     ----------
          <S>                              <C>              <C>             <C>            <C>           <C>
          private placement                15/09/1998        1,000,000      $    1,000     $    1,500    $    2,500
          private placement                31/12/1998          750,000             750         74,250        75,000
                                                            ----------      ----------     ----------    ----------
          Balance                          31/12/1998        1,750,000           1,750         75,750        77,500
                                                            ----------      ----------     ----------    ----------
          Balance                          31/12/1999        1,750,000           1,750         75,750        77,500
                                                            ----------      ----------     ----------    ----------
          Balance, before
            forward split                  19/05/2000        1,750,000           1,750         75,750        77,500
                                                            ==========      ==========     ==========    ==========

          2.5:1 forward split              19/05/2000        4,375,000           1,750         75,750        77,500
          Share exchange                   18/12/2000        8,490,000           3,396           -            3,396
                                                            ----------      ----------     ----------    ----------
          Balance                          31/12/2000       12,865,000           5,146         75,750        80,896
          issued for cash                  07/02/2001           10,000               4          9,996        10,000
          issued for compensation          30/03/2001           20,000               8         19,992        20,000
          issued for cash                  06/04/2001           11,000               4         10,996        11,000
                                                            ----------      ----------     ----------    ----------
          Balance                          30/09/2001       12,906,000      $    5,162     $  116,734    $  121,896
                                                            ==========      ==========     ==========    ==========
</TABLE>

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 11.  INCOME TAXES

          a)   The most recent Federal Income Tax filing for the Company for the
               US was for the year ended December 31, 2000, disclosing no income
               taxes payable to the US Internal Revenue Service.

          b)   There is a loss of $246,281 carried forward that may be applied
               towards future profits. No deferred income taxes are recorded as
               an asset. A reserve has been claimed that offsets the amount of
               tax credit available from use of the loss carry forward because
               there is presently no indication that these tax losses will be
               utilized.

Note 12.  FINANCIAL INSTRUMENTS

          The Company's financial instruments consist of cash and cash
          equivalents, accounts receivable, prepaid expenses and deposit,
          accounts payable and accrued, current portion of loan, due to related
          parties and long-term loan payable. It is management's opinion that
          the Company is not exposed to significant interest, currency or credit
          risks arising from these financial instruments. The fair value of
          these financial statements approximates their carrying values.

Note 13.  PENSION AND EMPLOYMENT LIABILITIES

          The Company does not have liabilities as at September 30, 2001, for
          pension, post-employment benefits or post-retirement benefits. The
          Company does not have a pension plan.

Note 14.  NEW BUSINESS - PROFIT SHARING AGREEMENT

          By agreement for reference dated May 1, 2000 and as amended on May 31,
          2001, Digital Village World Technologies Inc, subsequently renamed
          Digital Village World Technologies (Canada) Inc., ("DVC") entered into
          an agreement with TianJin TEDA Yu Cheng Group Co Ltd., a wholly owned
          subsidiary of the People's Daily Newspaper Group in China with its
          principal place of business in Tianjin, the People's Republic of
cChina.("Yu Cheng").

          (a)   Proposed New Business Operations.

                (i)   Yu Cheng has formed a new domestic Chinese company called
                      Yuxun Digital Hi-Tech Co Ltd. ("Yuxun") which is a local
                      Internet Service Provider (ISP) in the Tianjin region;
                (ii)  Yuxun has agreed to form a domestic joint venture with
                      Tianjin Chuang Xian Information Development Co Ltd
                      ("Chuang Xian") that will assume Yuxun's ISP business and
                      Chuang Xian's IT services to form a new business (New
                      Business);

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 14.  NEW BUSINESS - PROFIT SHARING AGREEMENT (cont'd)

                (iii) The New Business requires working capital; Yu Cheng is the
                      controlling shareholder of DVC and as such wishes to
                      advance the business of DVC in China by having DVC provide
                      overall management for the New Business and to raise
                      working capital for the New Business in accordance with
                      this agreement.

          (b)   Management of New Business / Working Capital

                (i)   YU Cheung hereby appoints DVC to be its manager to manage
                      the affairs of the New Business for a term of 25 years,
                      unless terminated earlier as provided herein, provided
                      that (ii)
                (ii)  DVC assumes the responsibility for raising all working
                      capital requirements of the New Business.

          (c)   Profit Sharing

                (i)   Yu Cheung hereby agrees that 80% of the net profits of the
                      New Business (Profit Allocation) will be earned by DVC
                      provided DVC raises the required working capital, as
                      hereinafter defined, and provides the senior management,
                      as hereinafter defined, for the New Business.)
                (ii)  Net Profits will be defined according to GAAP as
                      determined by the auditor of the New Business, approved by
                      DVC.
                (iii) The parties agree that semi-annually Net Profits will be
                      determined and 20% thereof, or such other amount agreed to
                      by the parties, shall be retained by the New Business as
                      working capital and that the balance distributed to the
                      parties on a 80/20 basis, 80% for DVC and 20% for Yu
                      Cheung, respectively, at each parties option. Either party
                      may choose to leave their portion of the Net Profits in
                      the New Business as addition to a loan account owed to
                      that party by the New Business.

          (d)   Management

                (i)   DVC will form a new Chinese firm, a wholly owned foreign
                      enterprise (WOFE) which will provide no fewer than two
                      senior executives, at DVC's cost, to provide on-going
                      executive management for the New Business.
                (ii)  Yu Cheng agrees that DVC may appoint 2 out of 5 persons to
                      be directors of the New Business.

          (e)   Conversion to Equity
                The parties acknowledge that it is their intention to treat
                DVC's Profit Allocation as a substitute to owning 80% of the
                equity of the New Business and therefore as and when the rules
                of China permit DVC to own, through the WOFE, shares in the New
                Business, it is agreed that the parties will take such steps as
                are necessary to have shares issued to the WOFE and upon such
                event occurring the Profit Allocation will be adjusted, to
                ensure that the underlying 80/20 arrangement is adhered to.

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 14.  NEW BUSINESS - PROFIT SHARING AGREEMENT (cont'd)

          (f)   Capital
                (i)   DVC, through the WOFE, will provide capital of not less
                      than $500,000 US contributed over 12 months or as
                      otherwise agreed to by the parties hereto.
                (ii)  In the event that the Capital is not raised within the
                      said 12 months, the Profit Allocation shall be adjusted
                      based on the percentage actually raised of the $500,000
                      US.
                (iii) Yu Cheung will assist the WOFE to have all capital
                      contributions registered as loans to the New Business, in
                      order to ensure that when the New Business is able, that
                      DVC will be able to repatriate the Capital out of China
                      should DVC so elect.

          (g)   Annual Budget
                The parties agree that they will on an annual basis agree upon
                an annual budget, prepared in accordance with United States GAPP
                and that unless otherwise agreed, the New Business will be
                managed in accordance with the annually agreed upon budget.

          (h)   Assignment
                The Parties agree that DVC may assign this agreement to any 3rd
                party provided that any assignee agrees to be bound by the terms
                of this agreement.

          (i)   Termination

                (i)   This Agreement shall terminate and be of no further force
                      or effect if DVC fails to meet any material obligation of
                      this Agreement, or DVC files a voluntary petition in
                      bankruptcy, or an involuntary petition in bankruptcy is
                      filed against DVC , or DVC is liquidated or its business
                      transferred to a receiver, or DVC makes a general
                      assignment of all its assets on behalf of creditors.

                (ii)  Upon the occurrence of any event as set out in i(i),
                      above, Yu Cheng shall send a written notice to DVC stating
                      the nature of the breach. If the breach is curable DVC
                      shall have thirty days from the date of the notice to cure
                      the breach.

          (j)   Notice
                Notices as to disputes or termination to be given under this
                Agreement shall be signed by the party giving such notice and
                mailed by certified or registered mail, addressed to the party
                to be notified at its then current business address as set forth
                at the beginning of this Agreement or as subsequently changed by
                giving notice. Notice as to address changes, pricing changes,
                warranty changes and other matters relating to policy and
                business may by given to such addresses, by facsimile
                transmission, telex, telegram or first class mail. Notices by
                mail shall be deemed given three days after mailing.

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 14.  NEW BUSINESS - PROFIT SHARING AGREEMENT (cont'd)

          (k)   Settlement of disputes and Governing Law

                (i)   In the event a dispute arises in connection with the
                      interpretation or implementation of this Agreement, the
                      parties to the dispute shall attempt in the first instance
                      to resolve such dispute through amicable consultations. If
                      the dispute cannot be resolved in this manner within
                      thirty (30) days after first conferring, then any or all
                      parties to the dispute may refer the dispute to
                      arbitration by the Beijing International Arbitration
                      Committee ("Committee"). The number of arbitrators shall
                      be three. The claimant(s) in the dispute shall appoint one
                      arbitrator within thirty (30) days of filing notice of the
                      arbitration, and the respondent(s) in the dispute shall
                      appoint one arbitrator within thirty (30) days thereafter.
                      If the respondent fails to so appoint an arbitrator, the
                      Arbitration Centre shall appoint the second arbitrator.
                      The two arbitrators thus appointed shall choose the third
                      arbitrator, and if they fail to do so within thirty (30)
                      days after the appointment of the second arbitrator, the
                      third arbitrator shall be appointed by the Committee. The
                      arbitration proceedings shall be conducted in the English
                      language.
                (ii)  Any award of the arbitrators shall be final and binding on
                      the parties. The costs of arbitration shall be borne by
                      the losing party, unless the arbitrators determine that
                      this would be inequitable. The parties agree and recognize
                      that any award of the arbitrators shall be recognizable
                      and enforceable in any court having jurisdiction over the
                      party against whom the award was rendered, and also
                      wherever assets of such party are located.
                (iii) The legal relations between the parties under this
                      contract shall be interpreted in accordance with the
                      substantive laws of China. Any disputes between the
                      parties concerning their legal obligations arising under
                      this contract which are submitted to arbitration pursuant
                      to this clause shall be decided pursuant to the
                      substantive laws of China.

          (l)   Non Competition
                The parties agree that during the currency of this agreement
                that they will not, directly or indirectly, in any manner
                whatsoever, be engaged in any business competitive to the
                business of New Business or advise or be concerned with or
                interested or lend money to/or guaranty the debts or obligations
                of a competitive business.

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 15.  CONSULTING AGREEMENT - BRIAN ROBERTS

          By agreement dated February 1, 2000, in accordance to the law of
          British Columbia, Canada, Digital Village World Technologies Inc.,
          subsequently renamed Digital Village World Technologies (Canada) Inc.,
          entered into a Consulting Agreement with Brian Roberts ("Roberts")
          whereby he would assist the Company in completion of its Business Plan
          and set up its administrative systems, on a month to month basis.
          Either party may terminate this agreement, with or without cause, upon
          thirty days notice to the other party.

          Terms and Conditions of the agreement:

          (a)   Remuneration

                (i)   The Company agrees to issue 250,000 fully paid common
                      shares of DVC at par value, for all services to be
                      performed by Roberts under this agreement
                (ii)  Roberts agrees to enter a pooling agreement at the time
                      the shares are issued wherein he agrees that he will not
                      sell, transfer or otherwise dispose of any of the Shares
                      before 18 months has elapsed from the date the Shares,
                      directly or indirectly, become publicly traded.

          (b)   Expenses

                In addition to the Shares, in (a), above, DVC shall reimburse
                Roberts, for all reasonable and necessary business expenses
                incurred by him in the performance of his duties, including,
                without limitation, expenses for travel, meals, entertainment
                and other miscellaneous business expenses.  Roberts shall submit
                to DVC written, itemized expense accounts for approval with such
                additional substantiation and justification as DVC may
                reasonably request.

          (c)   Non-Competition

                During the term of this agreement and for a term of one year
                after its termination, Roberts covenants and agrees that he will
                not directly or indirectly, whether as owner, shareholder,
                director, agent, officer, consultant, independent contractor, or
                in any other capacity whatsoever, of a corporation, partnership
                or proprietorship, compete with DVC or any of its affiliates.

<PAGE>

                    DIGITAL VILLAGE WORLD TECHNOLOGIES, INC.
                         (formerly Body Concepts, Inc.)
                              (A Nevada Corporation)
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                (In U.S. Dollars)
                                   (Unaudited)

Note 16.  PROPOSED EQUITY FUNDING - $12,000,000

          On July 16, 2001, the Company signed Offshore Securities Subscription
          Agreements with Tianjin Global Magnetic Card Co. Ltd. ("TGM") and
          Tianjin Teda Yu Cheng Group Co. Ltd. ("Yu Cheng"), the Company's
          present controlling shareholder, for 10,000,000 common shares and
          2,000,000 common shares, respectively , all at a price of $1.00 each,
          for the issuing a total of 12,000,000 common shares of the Company at
          a price of $1.00 per share. Details are as follows:

          Yu Cheng agreed to purchase 2,000,000 common shares and TGM agreed to
          purchase 10,000,000 common shares at the mutually agreed date.

          TGM is one of the largest credit and smart card manufactures in the
          Asia-Pacific Region. It was the first card manufacturer in China to be
          accredited by MasterCard International and Visa International and is
          the only company in its field in China that trades publicly which it
          has done since 1993 through the Shanghai Exchange.

          TGM produces magnetic and smart cards and related integration and
          application systems for domestic and foreign markets. TGM is also one
          of the national Mints for the People's Republic of China printing
          financial documents and packaging products. TGM is repidly expanding
          the applications and the use of next generation smart cards for China
          wide application. These initiatives require leading edge technology as
          well as access to a broader range of capital markets to develop them.
          To meet these needs TGM is investing in firms like the Company and its
          new business unit, Digital Village RFS Technology Inc., which is
          developing micro super conducting devices.

          No financing relating to the above has been finalized at the date of
          these financial statements, and any financing arranged is subject to
          regulatory approvals.

<PAGE>

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The following discussion should be read in conjunction with the accompanying
financial statements for the three-month periods ended September 30, 2001 and
September 30, 2000 and the Annual Report Form 10KSB filed by the Company on
April 17, 2001 for the 2000 fiscal year.

Special Note Regarding Forward-Looking Statements - Certain statements in this
report and elsewhere (such as in other filings by the Company with the
Securities and Exchange Commission, press releases, presentations by the Company
or its management and oral statements) may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Words such as "expects", "anticipates", "intends", "plans",
"believes", "seeks", "estimates", and "should" and variations of these words and
similar expressions, are intended to identify these forward-looking statements.
The Company undertakes no obligation to publicly release the result of any
revisions to these forward-looking statements, which may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

Results of operations - comparison of the three month periods ended September
30, 2001 and September 30, 2000.

The Company is a development stage company and, through its wholly owned Chinese
foreign enterprise Tianjin Navada Digital World Technologies Co. Ltd. ("WOFE"),
will manage the operations of a Chinese domestic enterprise, CNTime Group,
pursuant to the terms of a profit sharing agreement ("PSA") which provides for
the Company to receive 80% of the profits from the operations of the Chinese
venture with the Company required to provide certain agreed upon capital. In
the event that the Company is unable to (i) provide the required capital or (ii)


<PAGE>

obtain an extension for providing the capital, the profit allocation under the
PSA will be adjusted based on the percentage of capital actually contributed.
The original PSA dated May 2000 was amended on May 31, 2001.

Formal operations have not as yet commenced. Revenue for the current quarter
was $ 171 in the form of interest earned compared to $598 in interest income
earned during the corresponding period in 2000. Expenses during the quarter,
which included costs of operations of Digital Village World Technologies
(Canada) Inc. ("DV-Canada"), which was acquired by the Company on December 18,
2000, were $72040 as compared to $67 for the corresponding period in 2000. The
2001 figure included a $6758 provision for depreciation; $4655 for consulting
services; $ 23234 for professional fees; and $ 16509 for transfer and filing
fees. As a result, for the quarter ended September 30, 2001, the Company had a
net loss of $71869, as compared to a profit of $531 for the same quarter of
2000.

The expenses included operating costs of DV-Canada which were$4240 for rental
expenses, $1878 in telephone and utilities costs and $3665 for travel and
promotion. Salaries and benefits expenses were $8425 for the period ended
September 30, 2001 compared to an insignificant amount in the corresponding
period in 2000.

The Company expects to continue to incur a loss as a result of expenses
associated with compliance with the reporting requirements of the Securities
Exchange Act of 1934, costs related to launch of Chinese operations and
continuation of the Canadian business.

Results of operations - comparison of the nine-month periods ended September 30,
2001 and September 30, 2000.

For the nine-month period ended September 30 2001, revenues were $3937 as
compared to $2106 for the corresponding period in 2000. Total expenses were
$227129, including a $18865 provision for depreciation. By comparison, during
the nine-month period ended September 30, 2000, expenses were $23252. The
increase in expenses directly related to the December 2000 acquisition of DV
-Canada.

Liquidity and Capital Resources

The cash balance for the period ended September 30, 2001 was $10899 compared to
$43633 at September 30, 2000. This decrease was primarily due to increases in
operating expenditures related to DV-Canada after its acquisition in December
2000. For the period ended September 30, 2001, the Company's operating
activities used net cash of $186299 compared to $15773 in the comparable period
in 2000. Accounts payable were $ 50275. as at September 30,2001. The Company's
financing activities during the period provided net cash of $50275 which
consisted of non- interest bearing demand loans from a director.

<PAGE>

Working capital was $ 231,207 as at September 30, 2001 compared to $43083 as
at September 30, 2000. The decrease in working capital included indebtedness of
$194481 due to related parties.

The Company has historically relied upon sales of its common stock, debt
instruments and loans from related parties to finance its operations.
Additional financing will be required to meet its obligations under the Profit
Sharing Agreement and for current and long-term development, marketing, and
working capital. In July 2001, the Company announced a financing subscription
totaling $12,000,000 from two Chinese corporate investors. To date, such
financing has not been completed. There can be no assurances that such
financing will actually close. To the extent of any shortfall in financing, the
Company's operations will be delayed, curtailed or prevented, and the Company
may be required to suspend or substantially modify its operations.

There were no income taxes incurred for the reporting period.

PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

The Company is not a party to any pending or to the best of its knowledge, any
threatened legal proceedings. No director, officer or affiliate of the Company,
or owner of record or of more than five percent (5%) of the securities of the
Company, or any associate of any such director, officer or security holder is a
party adverse to the Company or has a material interest adverse to the Company
in reference to pending litigation.

ITEM 2.   SALE OF UNREGISTERED SECURITIES

None.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

Not Applicable.

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

During the reporting period, no matters were submitted to a vote of security
holders.

ITEM 5.   OTHER INFORMATION

On July 16, 2001, the Company signed Offshore Securities Subscription Agreements
with two Chinese corporations - Tianjin Global Magnetic Card Co. Ltd. ("TGM")
and Tianjin Teda Yu Cheng Group Co. Ltd. ("Yu Cheng"), the Company's present
controlling shareholder, for 10,000,000 common shares and 2,000,000 common

<PAGE>

shares respectively, all at a price of $1.00 each, for the issuing of a total of
12,000,000 common shares of the Company.

TGM is one of the largest credit and smart card manufacturers in the
Asia-Pacific Region. It was the first card manufacturer in China to be
accredited by MasterCard International and Visa International and is the only
company in its field in China that trades publicly which it has done since 1993
through the Shanghai Exchange.

TGM produces magnetic and smart cards and related integration and application
systems for domestic and foreign markets. TGM is also one of the National Mints
for the People's Republic of China printing financial documents and packaging
products. TGM is rapidly expanding its involvement with applications and uses
of next generation smart cards throughout China. These initiatives require
leading edge technology as well as access to a broader range of capital markets
to develop them. To meet these needs, TGM is investing in firms like the
Company and its new business unit, Digital Village RF Superconductor Technology
Inc., which is developing micro super conducting devices.

The Company issued a news release on July 12, 2001 announcing the receipt of the
two signed subscription agreements.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

   a.   (i)   The following is a list of exhibits filed as part of this
              quarterly filing on Form 10QSB.

           -   Financial statements for the period ended September 30, 2001.

   b.   Filings on Form 8-K

        - None -

SIGNATURES

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

DIGITAL VILLAGE WORLD TECHNOLOGIES INC.

/s/ Yu Wen Cheng                      /s/ Peng Chen
_________________________             _________________________
Yu Wen Cheng, Director                Peng Chen, Director

Date:   November 14, 2001

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