<PAGE>

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

[ ]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2001


                               Commission File No.
                                   33-24608-LA

                           ASPAC COMMUNICATIONS , INC.
                          -----------------------------
             (Exact name of registrant as specified in its charter)


            Delaware                                            95-4068292
--------------------------------                          ----------------------
(State or Other Jurisdiction of                             (I.R.S. Employer
Incorporation or Organization)                            Identification Number)


                       21221 South Western Ave. Suite 215
                           Torrance, California 90501
           -----------------------------------------------------------
           (Address of Principal Executive Offices including Zip Code)


Registrant's telephone number, including Area Code:  310/328-7666

Securities to be Registered Under Section 12(b) of the Act:  None

Securities to be Registered Under Section 12(g) of the Act:
                                                 Common Stock, $.00001 Par Value
                                                       (Title of Class)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or 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 [ ]

Number of shares of common stock, $0.00001 par value, outstanding at May 17,
2001: 22,054,969

<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

<TABLE>
                                      Aspac Communications, Inc.
                                    (A Development Stage Company)
                                      Consolidated Balance Sheet
<CAPTION>

                                                                   MARCH 31, 2001       SEPTEMBER 30,
                                                                    (UNAUDITED)             2000
                                                                   ----------------------------------
<S>                                                                <C>                   <C>
Assets
Current assets:
  Cash                                                             $ 1,609,427           $ 2,194,910
  Short-term investments                                                    --             1,009,415
  Prepaid expenses and other current assets                            551,687               229,349
  Interest receivable                                                    1,211                24,528
                                                                   ----------------------------------
TOTAL CURRENT ASSETS                                                 2,162,325             3,458,202

Property and equipment, net                                          1,278,731               185,816
Intangible assets, net of accumulated amortization                     305,250               321,750
Other assets                                                            12,683                33,313
                                                                   ----------------------------------
TOTAL ASSETS                                                       $ 3,758,989           $ 3,999,081
                                                                   ==================================

Liabilities and stockholders' equity Current liabilities:
  Accounts payable and accrued expenses                            $   177,475           $    18,843
  Accrued salaries                                                     103,749               103,720
                                                                   ----------------------------------
Total current liabilities                                              281,224               122,563

Minority interest                                                      167,183               230,157

Commitments and contingencies

Stockholders' equity:
  Common stock, $0.00001 par value, 50,000,000
     shares authorized, 22,054,969 (3/31/01) and
     21,934,969 (9/30/00) shares issued and outstanding                    220                   219
  Additional paid-in capital                                         5,691,864             5,496,866
  Deficit accumulated during development stage                      (2,209,885)           (1,619,356)
  Accumulated other comprehensive income (loss)                          3,712                (1,152)
  Deferred compensation                                               (175,329)             (230,216)
                                                                   ----------------------------------
Total stockholders' equity                                           3,310,582             3,646,361
                                                                   ----------------------------------
Total liabilities and stockholders' equity                         $ 3,758,989           $ 3,999,081
                                                                   ==================================

SEE ACCOMPANYING NOTES.

</TABLE>
<PAGE>

<TABLE>
                                                  Aspac Communications, Inc.
                                                 (A Development Stage Company)
                                             Consolidated Statements of Operations
                                                          (UNAUDITED)
<CAPTION>

                                                          THREE MONTHS                     SIX MONTHS            SEP.26, 1997
                                                         ENDED MARCH 31                  ENDED MARCH 31         (INCEPTION) TO
                                                      2001            2000            2001            2000       MAR.31, 2001
                                                 -----------------------------------------------------------------------------
<S>                                              <C>             <C>             <C>             <C>             <C>
Net sales                                        $         --    $         --    $         --    $         --    $         --
Operating expenses:
  Selling, general and administrative
    Expenses                                          344,921         121,390         665,106         262,927       2,478,194

  Research & development expenses                          --              --           4,015           2,175           4,015
  Depreciation and amortization                        13,884           2,517          26,017           5,035          54,719
                                                 -----------------------------------------------------------------------------
Total operating expenses                              358,805         123,907         695,138         270,137       2,536,928

Loss from operations                                 (358,805)       (123,907)       (695,138)       (270,137)     (2,536,928)

Other income (expense):

  Abandoned offering costs                                 --              --              --              --        (158,650)
  Interest income                                      20,994           8,229          41,282           8,229         117,078

  Interest expense                                         --          (3,852)             --         (14,524)        (40,528)
  Other income (expense)                                  266          (2,564)            353          (2,239)            200
                                                 -----------------------------------------------------------------------------
Total other income (expense)                           21,260           1,813          41,635          (8,534)        (81,900)
                                                 -----------------------------------------------------------------------------

Net loss during development stage
  Before minority interest and
  extraordinary item                                 (337,545)       (122,094)       (653,503)       (278,671)     (2,618,828)


Minority interest                                      40,098              --          62,974              --         170,983
                                                 -----------------------------------------------------------------------------

Net loss before extraordinary item                   (297,447)       (122,094)       (590,529)       (278,671)     (2,447,845)
Extraordinary gain on
  extinguishment of debt                                   --              --              --         237,961         237,961
                                                 -----------------------------------------------------------------------------
Net loss                                         $   (297,447)   $   (122,094)   $   (590,529)   $    (40,710)   $ (2,209,884)
                                                 =============================================================================

Net loss per common share - basic and diluted:
    Net loss before extraordinary item           $      (0.01)   $      (0.01)   $      (0.03)   $      (0.01)   $      (0.12)

    Extraordinary item                                     --              --              --            0.01            0.01
                                                 -----------------------------------------------------------------------------
    Net loss                                     $      (0.01)   $      (0.01)   $      (0.03)   $      (0.00)   $      (0.11)
                                                 =============================================================================

Weighted average common shares
  outstanding - basic and diluted                  22,036,302      20,347,651      21,985,079      20,210,122      19,890,299
                                                 =============================================================================

SEE ACCOMPANYING NOTES.

</TABLE>
<PAGE>

<TABLE>
                                    Aspac Communications, Inc.
                                   (A Development Stage Company)
                               Consolidated Statements of Cash Flows
                                            (UNAUDITED)
<CAPTION>

                                                                 SIX MONTHS          SEP.26, 1997
                                                               ENDED MARCH 31       (INCEPTION) TO
                                                            2001           2000      MAR.31, 2001
                                                        ------------------------------------------
<S>                                                     <C>            <C>            <C>
OPERATING ACTIVITIES
  Net loss                                              $  (590,529)   $   (40,710)   $(2,209,884)
  Adjustment to reconcile net loss to net cash
    used in operating activities:
      Depreciation & amortization                            26,017          5,035         55,205
      Minority interest in loss                             (62,974)            --       (170,983)
      Interest expense on extinguished debt                      --          7,821          7,821
      Gain on extinguishment of debt, net                        --       (237,961)      (237,961)
      Write-off registration costs                               --             --        120,000
      Amortization of deferred stock compensation            54,887             --        103,171
      Loss on disposal of assets                                 --          2,419          3,061
      Changes in operating assets and liabilities:
          Prepaid expenses and other current assets        (186,089)       (26,835)      (415,438)
          Interest receivables                               23,317             --         (1,211)
          Other assets                                       20,630        (51,248)       (10,928)
          Account payable & accrued expenses                158,661         39,681        281,224
                                                        ------------------------------------------
  Net cash used in operating activities                    (556,080)      (301,798)    (2,475,953)

INVESTING ACTIVITIES
  Redemption of short-term investment                     1,009,415             --             --
  Purchase of property and equipment                     (1,043,681)       (19,789)    (1,241,427)
  Other assets                                                   --             --         (2,700)
  Payment under stock subscription agreement                     --             --        (90,000)
                                                        ------------------------------------------
  Net cash provided by (used in) investing activities       (34,266)       (19,789)    (1,334,127)

FINANCING ACTIVITIES
  (Payments) proceeds from notes and
      loans payable                                              --         (6,129)       527,155
  Advances from line of credit                                   --        102,629             --
  Net proceeds from sale of common stock                         --      1,000,000      4,562,600
  Minority investment in joint venture                           --             --        338,166
  Repayment of advances                                          --             --        (12,155)
                                                        ------------------------------------------
  Net cash provided by financing activities                      --      1,096,500      5,415,766

Foreign exchange impact on cash                               4,863            (24)         3,711
                                                        ------------------------------------------

Increase (decrease) in cash and cash equivalent            (585,483)       774,889      1,609,427
Cash and cash equivalents at beginning of period          2,194,910          7,005             --
Cash and cash equivalents at end of period              $ 1,609,427    $   781,894    $ 1,609,427
                                                        ==========================================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

NON-CASH TRANSACTIONS

In February 2001, the Company issued 120,000 shares of common stock valued at
$1.625 per share and agreed to pay $40,000 in cash for networking equipment to
be delivered in four equal installments. The first installment was delivered
during the three months ended March 31, 2001. The $40,000 cash payment will be
made upon completion of all deliveries.

SEE ACCOMPANYING NOTES.

</TABLE>
<PAGE>


                    ASPAC COMMUNICATIONS, INC. AND SUBSIDIARY
                          (A DEVELOPMENT STAGE COMPANY)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              AS OF MARCH 31, 2001
                                   (UNAUDTED)
                                   ----------


NOTE 1 - BASIS OF PRESENTATION
------------------------------

         The accompanying unaudited consolidated financial statements have been
         prepared in accordance with accounting principles generally accepted in
         the United States for interim financial information and the rules and
         regulations of the Securities and Exchange Commission for interim
         financial information. Accordingly, they do not include all the
         information and footnotes required by accounting principles generally
         accepted in the United States for complete financial statements.

         It is management's opinion, however that all adjustments (consisting of
         normal recurring accruals) have been made which are considered
         necessary for a fair presentation of the results of operations for the
         periods presented. The results for the interim period are not
         necessarily indicative of the results to be expected for the year.

         The Company is operating as a Development Stage Company to develop
         interactive broadband communication and online services in the Far East
         including the People's Republic of China.

         For further information, refer to the consolidated financial statements
         and footnotes included in the company's Form 10-KSB for the year ended
         September 30, 2000.

NOTE 2 - PRINCIPLE OF CONSOLIDATION
-----------------------------------

         The consolidated financial statements include the accounts of ASPAC
         Communications, Inc. and its joint venture subsidiary, YeeYoo Network
         Information Technology, Ltd. ("YeeYoo"), in which the Company owns 65%
         of interest. All significant inter-company balances and transactions
         have been eliminated in consolidation.

         All balances and transactions of the Company's overseas subsidiaries as
         of and for the three and six months period ended March 31, 2001 are
         translated at the exchange rate in effect at the balance sheet date and
         at the average exchange rate for the period presented, respectively.

NOTE 3 - PROPERTY AND EQUIPMENT
-------------------------------

         Property and equipment consist of the following:

                                                     March 31,    September 30,
                                                       2001           2000
                                                   ---------------------------
                  Computer equipment               $   435,623    $   104,286
                  Furniture and equipment               38,893         77,845
                  Automobiles                           66,229         18,114
                  Construction in progress             761,933             --
                                                   ---------------------------

                  Less: accumulated depreciation       (23,947)       (14,429)
                                                   ---------------------------
                                                   $ 1,278,731    $   185,816
                                                   ---------------------------

<PAGE>

         Construction in progress relates both to fiber optic cable installation
         and software development.

NOTE 4 - STOCKHOLDER'S EQUITY
-----------------------------

         On February 22, 2001, the Company announced a voluntary stock option
         exchange program for our employees. Under the program, employees can
         elect to cancel part or all of the outstanding stock options held by
         them in exchange for an equal number of new options to be granted no
         earlier than August 21, 2001. The new options will be granted with a
         strike price to be set at the fair market value of our stock at the
         date of grant. It is anticipated that no compensation charges related
         to this program will result. Certain members of the senior management
         team are not eligible to participate in this program.

NOTE 5 - COMMITMENTS AND CONTINGENCIES
--------------------------------------

         In the past, the Chinese government has prohibited foreign investment
         in value-added telecommunication services, including Internet access
         and content services. Under the trade deal China signed with the United
         States in November, 1999, as part of China's bid to join the World
         Trade Organization ("WTO"), China pledged to open the value-added
         sector, including the Internet service and content business, to allow
         for 49% foreign ownership for the first two years after China's entry
         into the WTO and 50% thereafter. The Chinese government is drafting new
         policies and regulations governing foreign investment and other
         activities in the Internet industry based on its WTO commitment. To
         comply with the new regulations, the Company's equity percentage in its
         YeeYoo joint venture may have to be reduced from the current 65% level.
         However, the Company anticipates that it will maintain its operating
         control of the joint venture by retaining control of the Board of
         Directors and the management of the joint venture. In anticipation of
         the new regulations, the Company is in discussion with several
         potential strategic partners to exchange the Company's joint venture
         equity in excess of the 49% foreign ownership pursuant to new Chinese
         policies for certain assets. These assets may include wireless
         frequency usage rights, PSTN connections for VoIP networks, and
         additional bandwidth for international links. There is no assurance
         that the Company will be able to reach any agreement with these
         potential strategic partners or, if any, at terms favorable to the
         Company.

NOTE 6 - SUBSEQUENT EVENT
-------------------------

         In April 2001, the Company reached an agreement with its corporate
         attorney to cancel the 20,000 shares issued to him on July 5, 2000 in
         exchange for stock options to purchase the same number of shares.

<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSION AND ANALYSIS OR PLAN OF OPERATION

OVERVIEW
--------

         ASPAC Communications, Inc. (the "Company") is a Delaware corporation
headquartered in Torrance, California. The Company is a development stage
company with the objective to develop, finance, and invest in telecommunication
and Internet related projects primarily in the People's Republic of China ("PRC"
or "China"). The Company's key management and shareholders include institutions
and individuals that have participated in and directed the modernization of
China's telecommunication industry. Over the years, they have developed in-depth
knowledge of this highly protected and rapidly growing sector, and established
close contacts with the key players and the bureaucratic hierarchy. After
conducting numerous feasibility studies of telecommunication investment projects
in the past few years, the Company has set its focus on the wireless broadband
Internet Service Provider ("ISP") and other advanced Internet communication
services in China. The tremendous market potential of the Internet market in
China, the relatively wide open competitive landscape, and the pacesetting
experience from the U.S. Internet market are the fundamentals for the Company's
renewed focus.

         The Company's China objective is to provide nationwide wireless
broadband services that encompass high speed Internet access, Voice over IP
("VoIP"), and full motion video. To meet this objective, the Company has
successfully secured the exclusive usage right of a wide spectrum of frequencies
in Beijing. Additionally, in order to ensure the high level of quality for the
wireless broadband service, the Company has acquired the critical guaranteed
international bandwidth. Furthermore, the Company has developed an advanced
wireless "point-to-multipoint" system for the high-speed "last-mile" solution so
that the service can reach customers efficiently and cost effectively.

         To execute the Company's China objective, ASPAC formed a Sino-foreign
joint venture in fiscal year 2000 named YeeYoo Network Information Technology,
Ltd. ("YeeYoo"), with China Education and Research Network Center ("CERNET") and
Beijing Sino-Tech Science and Technology Development Center ("Sino-Tech'). The
Company has a controlling interest in YeeYoo. In April 2001, YeeYoo launched its
services in Beijing, China and anticipates the expansion of its services to
other provinces in the next 10 to12 months.

RESULTS OF OPERATION FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2001 AS
-------------------------------------------------------------------------
COMPARED TO THE THREE AND SIX MONTHS ENDED MARCH 31, 2000:
----------------------------------------------------------

         REVENUES. The Company is a development stage company and has not
generated revenue to date.

         OPERATING EXPENSE. Operating expenses increased 190% and 157% from
$123,907 and $270,137 during the three and six months ended March 31, 2000,
respectively, to $358,805 and $695,138 during the three and six months ended
March 31, 2001. The increase primarily consists of increases from the following
expenses:
         (1)      Selling, general and administrative expenses increased 184%
                  and 153% from $121,390 and $262,927 during the three and six
                  months ended March 31, 2000, respectively, to $344,921 and
                  $665,106 during the three and six months ended March 31, 2001.
                  The increase primarily resulted from the increased number of
                  employees after the formation of YeeYoo joint venture,
                  increased level of salaries paid to employees, consulting
                  services used to conduct legal and business research, and the
                  amortization of deferred stock compensation. We expect that
                  selling, general, and administrative expenses will continue to
                  increase in future periods as our YeeYoo joint venture deploys
                  its wireless broadband services in China.

<PAGE>

         (2)      Research and development expenses increased 85% from $2,175
                  for the six months ended March 31, 2000 to $4,015 for the six
                  months ended March 31, 2001.
         (3)      Depreciation and amortization expenses increased 452% and 417%
                  from $2,517 and $5,035 during the three and six months ended
                  March 31, 2000 to $13,884 and $26,017 during the three and six
                  months ended March 31, 2001, due to higher amount of property,
                  equipment and intangible assets purchased and recorded.

         OTHER INCOME (EXPENSE). Other income (expense), increased from net
income of $1,813 and net expense of $8,534 during the three and six months ended
March 31, 2000, respectively, to net income of $21,260 and $41,635 during the
three and six months ended March 31, 2001. The increase was primarily due to
increased interest income from higher average cash and short-term investment
balances as a result of the proceeds from our sale of the private placement
offering in January and April 2000.

         NET LOSS. Excluding extraordinary items, the Company's net loss
increased 144% and 112% from $122,094 and $278,671 during the three and six
months ended March 31, 2000, respectively, to $297,447 and $590,529 during the
three and six months ended March 31, 2001. The increased amount of net loss
before extraordinary items was primarily due to the greater operating expenses
after the formation of the Company's YeeYoo joint venture to deploy wireless
broadband services in China. There was no extraordinary activities recorded
during the three and six months ended March 31, 2001. The net loss after
extraordinary items were $297,447 and $590,529 for the three and six months
ended March 31, 2001, compared to net loss of $122,094 and $40,710 for the three
and six months ended March 31, 2000.

LIQUIDITY AND CAPITAL RESOURCES AND CERTAIN EVENTS SUBSEQUENT TO MARCH 31, 2001
-------------------------------------------------------------------------------

         The Company has not generated cash flow from operations to date and is
not capable of supporting existing business operations in its present form.
Since the beginning of its operation, the Company has financed its development
stage activities primarily through equity investments, including the sale of
common stock, and loans from its founding stockholders.

         There is no guarantee that the Company will ever achieve profitable
operations. Approximately $556,080 was used in the Company's operating
activities for the six months ended March 31, 2001 compared to $301,798 for the
six months ended March 31, 2000. The increase in cash used in the Company's
operating activities primarily relates to a greater net loss after the formation
of the Company's YeeYoo joint venture to deploy wireless broadband services in
China.

         During the six months ended March 31, 2001, the Company used net cash
of $34,266 in its investing activities, compared to $19,789 net cash used during
the six months ended March 31, 2000. This increase primarily relates to the
purchases of property and equipment offset by redemption of short-term
investment.

         During the six months ended March 31, 2001, the Company did not receive
any cash from its financing activities, compared to $1,096,500 net cash received
during the six months ended March 31, 2000. The net cash received during the six
months ended March 31, 2000 was primarily generated by net proceeds from the
sale of common stock during the Company's private placement which ended March
31, 2000.

<PAGE>

         The Company currently has a commitment to ultimately invest $3.25
million in the joint venture pursuant to the joint venture contract it entered
with CERNET and Sino-Tech, dated December 31, 1999, and an agreement it entered
with CERNET, dated April 18, 2000, in exchange for 65% of the equity in the
YeeYoo joint venture. As of the date of this report, the Company has invested
$2.15 million in the joint venture. In addition, the Company has committed to
pay $2,000,000 to CERNET in exchange for certain guaranteed international
connection bandwidth and free usage of such international connection bandwidth
for 18 months. As of the date of this report, the Company has not made any
payments to CERNET and no decision has been made as to the timing and the manner
of the payment (in cash or by issuance of the Company's common stock).

         The Company will continue to evaluate possible acquisitions of or
investments in businesses, products, and technologies that are complimentary to
those of the Company, which may require the use of cash. The Company believes
that existing cash, investments and borrowings available under its credit
facilities will be sufficient for at least twelve months. However, the Company
may sell additional equity or debt securities or seek additional credit
facilities if it believes such actions would be a better way to fund
acquisition-related or other costs. Sales of additional equity or convertible
debt securities would result in additional dilution to the Company's
stockholders. The Company may need to raise additional funds sooner in order to
support more rapid expansion, develop new or enhanced services or products,
respond to competitive pressures, acquire complementary businesses or
technologies or take advantage of unanticipated opportunities. The Company'
future liquidity and capital requirements will depend upon numerous factors,
including the success of the services offered by the Company and its Joint
Venture and competing technological and market developments.

         The Company expects to maintain its research and development activities
at current levels. The Company does not anticipate any purchase or sale of plant
and significant equipment except the purchase of network equipment and network
infrastructure development during the normal course of business. The Company
expects an increase in its number of employees as the Company and its joint
venture start and expand its network operations in China.

SUBSEQUENT EVENT
----------------

         In April 2001, the Company reached an agreement with its corporate
attorney to cancel the 20,000 shares issued to him on July 5, 2000 in exchange
for stock options to purchase the same number of shares.

<PAGE>

                           PART II---OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

        There are no material legal proceedings pending or, to our knowledge,
threatened against the Company.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

        None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

        None.

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

        None.

ITEM 5. OTHER INFORMATION

        None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits.

        None.

(b) Reports on Form 8-K.

        No reports on Form 8-K were filed by the Company during the quarter
ended March 31, 2001.

<PAGE>

SIGNATURES

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


                                            ASPAC COMMUNICATIONS, INC.



                                            By: /s/ Jeffrey G. Sun
                                               --------------------------------
                                                Jeffrey G. Sun
                                                Chief Executive Officer


                                            Date:  May 17, 2001


         Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.


Signature                                Title                          Date
---------                                -----                          ----


/s/ Marc F. Mayeres        Chairman of the Board of Directors,      May 17, 2001
-------------------------  Acting Chief Financial Officer
Marc F. Mayeres


/s/ Steve L. Chen          Vice Chairman of the Board of Directors  May 17, 2001
-------------------------
Steve L. Chen


/s/ Jeffrey G. Sun          Chief Executive Officer, Director       May 17, 2001
--------------------------
Jeffrey G. Sun


/s/ RT Sun                  Director                                May 17, 2001
--------------------------
RT Sun


/s/ Jianping Wu             Director                                May 17, 2001
--------------------------
Jianping Wu