SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

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

                For the quarterly period ended December 31, 1999

                                       OR

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

                       For the transition period from to .

                           Commission File No. 0-30430

                              INTERMOST CORPORATION
        (Exact name of small business issuer as specified in its charter)

           Utah                                             87-0418721
-------------------------------                 --------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)

                 38th Floor, Guomao Building, Renmin South Road
                             Shenzhen, China 518005
               ---------------------------------------------------
               (Address of principal executive offices) (Zip Code)

                                 86 755 220 1941
                           ---------------------------
                           (Issuer's telephone number)

               ---------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

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

     As of December  31,  1999,  9,824,112  shares of Common Stock of the issuer
were outstanding.
<PAGE>

                              INTERMOST CORPORATION

                                      INDEX


                                                                          Page
                                                                          Number
                                                                         -------
PART I - FINANCIAL INFORMATION

   Item 1.  Financial Statements

            Consolidated Condensed Balance Sheets -
            December 31, 1999 and June 30, 1999  .........................   1

            Consolidated Condensed Statements of Operations -
            For the three months ended December 31, 1999 and 1998.........   2

            Consolidated Condensed Statements of Operations -
            For the six months ended December 31, 1999 and 1998...........   3

            Consolidated Condensed Statements of Cash Flows -
            For the six months ended December 31, 1999 and 1998 ..........   4

            Notes to Consolidated Condensed Financial Statements..........   5

   Item 2.  Management's Discussion and Analysis of Financial Condition
            and Results  of Operations....................................   7

PART II - OTHER INFORMATION

         Item 2.  Changes in Securities and Use of Proceeds...............  12
         Item 6.  Exhibits and Reports on Form 8-K........................  12

SIGNATURES    ............................................................  13

<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                     INTERMOST CORPORATION AND SUBSIDIARIES

                      CONSOLIDATED CONDENSED BALANCE SHEETS

                                     ASSETS
<TABLE>

                                                             June 30, 1999        December 31, 1999
                                                             -------------        -----------------
                                                                 RMB             RMB             US$
<S>                                                         <C>               <C>              <C>

Current assets:
     Cash and cash equivalents                               4,376,907        3,025,032        365,342
     Accounts receivable, net                                   63,996        1,292,773        156,132
     Deferred compensation expense                                   -        4,552,576        549,828
     Deposits, prepayments and other receivables               946,951        3,747,851        452,639
     Due from related companies                                168,953          216,249         26,117
                                                             ---------       ----------      ---------
        Total current assets                                 5,556,807       12,834,481      1,550,058
                                                             ---------       ----------      ---------
Machinery and equipment, net                                   820,730        1,252,532        151,272
Intangible assets                                            2,400,000        1,799,997        217,391
Due from a joint venture partner                               243,291        1,549,999        187,198
                                                             ---------       ----------      ---------
     Total assets                                            9,020,828       17,437,009      2,105,919
                                                             =========       ==========      =========
                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
     Accruals                                                1,168,482        1,614,120        194,942
     Deposits from customers                                   158,901          664,263         80,225
     Business tax payable                                       26,173           50,549          6,105
     Due to directors                                          254,420          245,038         29,594
                                                             ---------       ----------      ---------
        Total current liabilities                            1,607,976        2,573,970        310,866
                                                             ---------       ----------      ---------
Minority interest                                                    -        1,340,987        161,955
                                                             ---------       ----------      ---------
Shareholders' equity:
     Common stock                                               81,318           81,318          9,821
     Shares to be issued                                             -        8,280,000      1,000,000
     Less: subscription receivable                                   -       (4,140,000)      (500,000)
     Additional paid-in capital                              9,278,162       14,248,571      1,720,842
     Accumulated deficit                                    (1,954,378)      (4,946,455)      (597,398)
     Cumulative translation adjustments                          7,750           (1,382)          (167)
                                                             ---------       ----------      ---------
        Total shareholders' equity                           7,412,852       13,522,052      1,633,098
                                                             ---------       ----------      ---------
        Total liabilities and shareholders'
           equity                                            9,020,828       17,437,009      2,105,919
                                                             =========       ==========      =========
</TABLE>

    The accompanying notes are an integral part of these financial statements

                                       1
<PAGE>

                     INTERMOST CORPORATION AND SUBSIDIARIES

                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

                                                Three Months Ended December 31,
                                             -----------------------------------
                                              1998                1999
                                             ------              ------
                                              RMB            RMB          US$

Net sales                                   551,647      3,605,352      435,429
Cost of services                            116,558      3,194,407      385,798
                                            -------      ---------     ---------
Gross Profit                                435,089        410,945       49,631

Selling, general and administrative
   expenses                                (513,128)    (3,295,672)    (398,028)
Other income, net                               596         36,216        4,374
                                            -------      ---------     ---------
Income (loss) before income taxes
   and minority interest                    (77,443)    (2,848,511)    (344,023)

Provision for income taxes                        -              -            -
                                            -------      ---------     ---------
Income (loss) before minority interest      (77,443)    (2,848,511)    (344,023)

Minority interest                                 -        159,009       19,204
                                            -------      ---------     ---------
Net income (loss)                           (77,443)    (2,689,502)    (324,819)
                                            =======      =========     =========
Net income (loss)
  per common share - Basic                    (0.01)         (0.28)      (0.03)
                                            =======      =========     =========
Weighted average number of
   shares outstanding                     8,456,420      9,755,178   9,755,178
                                          =========      =========   ===========

    The accompanying notes are an integral part of these financial statements


                                       2
<PAGE>

                     INTERMOST CORPORATION AND SUBSIDIARIES

                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

                                             Six Months Ended December 31,
                                        --------------------------------------
                                          1998                  1999
                                        --------              ---------
                                          RMB            RMB             US$

Net sales                              1,099,021      6,317,689        763,006
Cost of services                         231,327      4,948,492        597,644
                                       ---------      ---------       ---------
Gross Profit                             867,694      1,369,197        165,362

Selling, general and administrative
   expenses                             (820,564)    (4,556,500)      (550,302)
Other income, net                            596         36,217          4,374
                                       ---------      ---------       ---------
Income (loss) before income taxes
   and minority interest                  47,726     (3,151,086)      (380,566)

Provision for income taxes                     -              -              -
                                       ---------      ---------       ---------
Income (loss) before minority interest    47,726     (3,151,086)      (380,566)

Minority interest                              -        159,009         19,204
                                       ---------      ---------       ---------
Net income (loss)                         47,726     (2,992,077)      (361,362)
                                       =========      =========       =========
Net income (loss)
  per common share - Basic                  0.01          (0.31)         (0.04)
                                       =========      =========       =========
Weighted average number of
   shares outstanding                  8,456,061      9,758,579      9,758,579
                                       =========      =========      ==========

    The accompanying notes are an integral part of these financial statements


                                       3
<PAGE>

                     INTERMOST CORPORATION AND SUBSIDIARIES

                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>

                                                       Six Months Ended December 31,
                                                       -----------------------------
                                                        1998                1999
                                                       ------              -------
                                                        RMB          RMB           US$
<S>                                                   <C>        <C>             <C>

Cash flows from operating activities:
   Net income (loss)                                   47,726    (2,992,077)     (361,362)
   Adjustments to reconcile net loss to net cash
       used in operating activities:
       Amortization                                         -       600,002        72,464
       Depreciation of machinery and equipment          9,621       181,266        21,892
       Minority interest                                    -      (159,009)      (19,204)
       Compensation expense                                 -       417,834        50,463
   (Increase) decrease in operating assets -
       Accounts receivable, net                      (160,599)   (1,228,777)     (148,403)
       Deposits, prepayments and other receivables   (388,440)                   (338,273)
       Due from related companies                          -     (2,800,900)       (5,712)
   Increase (decrease) in operating liabilities -
       Accruals                                       102,713       445,638        53,821
       Deposits from customers                              -       505,362        61,034
       Business tax payable                                 -        24,376         2,944
       Other payables                                 756,154             -             -
       Due to directors                                     -        (9,381)       (1,133)
                                                     ---------    ---------      ---------
Net cash used in operating activities                 367,177    (5,062,963)     (611,469)
                                                     ---------    ---------      ---------
Cash flows from investing activities:
   Purchase of plant and equipment                   (165,964)     (613,068)      (74,042)
   Increase in due from a joint venture partner             -    (1,306,708)     (157,815)
                                                     ---------    ---------      ---------
Net cash used in investing activities                (165,964)   (1,919,776)     (231,857)
                                                     ---------    ---------      ---------
Cash flows from financing activities:
   Cash received from joint venture partner                 -     1,499,997       181,159
   Cash received from a subscriber                          -     4,140,000       500,000
   Cash proceeds from issuance of capital stock        55,658             -             -
                                                     ---------    ---------      ---------
   Net cash provided by financial activities           55,658     5,639,997       681,159
                                                     ---------    ---------      ---------
Effect of cumulative translation adjustment                 -        (9,133)       (1,103)

Net increase (decrease) in cash and cash equivalents  256,870    (1,351,876)     (163,270)

Cash and cash equivalents, beginning of period              -     4,376,907       528,612
                                                     ---------    ---------      ---------
Cash and cash equivalents, end of period              256,870     3,025,032       365,342
                                                     =========    =========      =========
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       4
<PAGE>
                     INTERMOST CORPORATION AND SUBSIDIARIES

              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

1.   INTERIM FINANCIAL PRESENTATION

     The interim consolidated  financial statements are prepared pursuant to the
     requirements for reporting on Form 10-QSB.  These financial statements have
     not been  audited by  independent  accountants.  The June 30, 1999  balance
     sheet data was  derived  from  audited  financial  statements  but does not
     include  all  disclosures   required  by  generally   accepted   accounting
     principles.  The interim  financial  statements and notes thereto should be
     read in conjunction with the financial statements and notes included in the
     Company's Form 10-SB. In the opinion of management, these interim financial
     statements  reflect all adjustments of a normal  recurring nature necessary
     for a fair statement of the results for the interim periods presented.  The
     current  period  results of operations  are not  necessarily  indicative of
     results which ultimately will be reported for the full year ending June 30,
     2000.

2.   CURRENCY PRESENTATION AND FOREIGN CURRENCY TRANSLATION

     Translation  of amounts from Renminbi  ("Rmb") into United  States  dollars
     ("US$") is for the  convenience  of  readers  and has been made at the noon
     buying rate in New York City for cable  transfers in foreign  currencies as
     certified for customs  purposes by the Federal  Reserve Bank of New York on
     December 31, 1999 of US$1.00 = Rmb8.28.  No representation is made that the
     Renminbi amounts could have been, or could be, converted into United States
     dollars at that rate or at any other rate.

3.   INVESTMENT IN JIAYIN

     In the quarter  ended  December 31,  1999,  Jiayin  E-Commerce  Development
     Company Ltd. ("Jiayin") was formed and registered.  The Company contributed
     US$423,000  for a 70%  interest in Jiayin and  Shenzhen  Jiayin  Investment
     Development Co., Ltd. contributed  US$181,000 for a 30% interest in Jiayin.
     Jiayin paid US$544,000 to Shenzhen Jiayin Investment  Development Co., Ltd.
     for the technological know-how relating to cyber-cash and telephone payment
     systems.

4.   MINORITY INTEREST

     In  connection  with the  formation of the Jiayin,  the Company  recorded a
     minority  interest of US$161,955  reflecting  the portion of the Jiayin not
     owned by the Company.

5.   SHAREHOLDERS' EQUITY

     During  the  quarter  ended  December  31,  1999,   the  Company   received
     subscription  proceeds of  US$500,000  from the offer of 400,000  shares of
     common  stock,  out of a total of 800,000  shares  offered,  at US$1.25 per
     share. The shares issuable in connection with the receipt of those proceeds
     had not been issued at December 31, 1999.  Subscriptions  for the remaining
     400,000   shares,   purchasable   for  $500,000,   had  been  received  but
     subscription proceeds had not been received at December 31, 1999.

                                       5
<PAGE>

6.   COMPENSATION EXPENSE

     Under a  two-year  employment  contract,  the  Company  has agreed to issue
     15,000  shares of common  stock to an  employee  after  each six  months of
     employment  commencing on November 15, 1999. In this connection,  US$17,260
     has been recorded as  compensation  expense during the three months and six
     months ended  December 31, 1999 by reference to the average market price of
     the  Company's  common  stock  during the period from  November 15, 1999 to
     December 31, 1999.

     Pursuant to the aforementioned  employment contract, the Company granted to
     the employee  stock options to purchase (i) 250,000  shares of common stock
     of the Company at US$3.50 per share  exercisable  after  November 2000, and
     (ii)  250,000  shares of common  stock of the  Company at US$4.00 per share
     exercisable  after November 2001. In this connection,  compensation cost of
     US$33,203  has been  recorded  during the three months and six months ended
     December 31, 1999.

7.   SUBSEQUENT EVENTS

     a.   Dunwell Computer (Hong Kong) Ltd.
          ---------------------------------
          In January  2000,  the  Company  signed a Letter of Intent to purchase
          Dunwell  Computer  (Hong  Kong) Ltd.  Dunwell is a Hong Kong  licensed
          Internet Service Provider and e-commerce solutions provider.  Pursuant
          to the terms of the  Letter of  Intent,  the  Company  will pay HK$2.8
          million (equivalent to approximately  US$361,757) for 70% of the stock
          of Dunwell. The purchase price is payable 50% in cash and 50% in stock
          at US$3.50 per share. Closing of the purchase of Dunwell is subject to
          execution of definitive documents and satisfaction of standard closing
          conditions.

     b.   Authorization of Issuance of Shares to Employees
          ------------------------------------------------
          In January 2000, the Company's board authorized the issuance of 41,110
          restricted  shares of  common  stocks to  selected  non-executive  key
          employees   with  over  one  year   employment  as  a  one-time  bonus
          recognizing  their  contribution in the company  start-up  stage.  The
          Company  expects to recognize a charge during the quarter ending March
          31, 2000 in connection with the issuance of those shares.

     c.   Issuance of Shares to Jiayin Investment Development Co.
          -------------------------------------------------------
          In January 2000, the Company issued 75,512 restricted shares of common
          stock to Shenzhen Jiayin Investment  Development Co. Ltd. for $302,045
          pursuant to the terms of the Jiayin Joint Venture agreement.

     d.   Private Placement Agreements
          ----------------------------
          In January 2000, the Company entered into private placement agreements
          with three  investors  pursuant  to which  those  investors  agreed to
          purchase  a total of  953,334  shares of  restricted  common  stock in
          exchange for $3 million. As of January 31, 2000, subscription proceeds
          of $1.58  million had been  deposited  with the Company in  connection
          with the subscriptions.

                                       6
<PAGE>

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations.

The following  discussion and analysis  should be read in  conjunction  with the
Company's financial statements and notes thereto included elsewhere in this Form
10-QSB.  Except for the historical  information contained herein, the discussion
in this Form 10-QSB contains  certain  forward  looking  statements that involve
risks and uncertainties,  such as statements of the Company's plans, objectives,
expectations and intentions.  The cautionary statements made in this Form 10-QSB
should be read as being  applicable to all related forward  statements  wherever
they appear in this Form  10-QSB.  The  Company's  actual  results  could differ
materially  from those  discussed here. For a discussion of certain factors that
could cause actual  results to be materially  different,  refer to the Company's
Form 10-SB.

Material  Changes in Results of Operations for the Six Months Ended December 31,
1999 as Compared to the Six Months Ended December 31, 1998.

     Net sales are derived principally from web advertisement,  web site design,
information fees, systems integration and e-commerce  solutions,  referred to as
"business  portals  and  e-commerce  solutions",  and from  software  design and
general  internet  solutions and business  consulting  services,  referred to as
"software development and consulting commission income".

     The  following  table  reflects the total net sales and  percentage  of net
sales  represented by business portals and e-commerce  solutions and by software
development  and  consulting  services,  and  percent  change  in each of  those
categories, for the periods indicated:
<TABLE>

                                                                                                                   Percent
                                               Total Net Sales                Percent of Total Net Sales         Change from
                                                                                                                 six months
                                                                                                                    ended
                                                                                                                December 31,
                                                                                                                 1998 to six
                                                                                                                months ended
                                                                                                                December 31,
                                                                                                                    1999
                                       ---------------------------------    --------------------------------

                                        Six Months Ended December 31,        Six Months Ended December 31,
                                       ---------------------------------    --------------------------------
                                            1998              1999
                                            US$               US$               1998              1999
                                       ---------------   ---------------    --------------    --------------    --------------
<S>                                    <C>                <C>               <C>               <C>                <C>

Business portals and
e-commerce solutions
- Web site design and development              94,908           225,029             71.5%             29.5%            137.1%
- Web advertisement                            31,510            64,257             23.7%              8.4%            103.9%
- Systems sales and integration                     0           320,858              0.0%             42.1%              n.m.
- Web hosting                                   6,314            26,541              4.8%              3.5%            320.4%
- Telephone payment systems                         0               221              0.0%              0.0%              n.m.
                                       ---------------   ---------------    --------------    --------------
                                              132,732           636,906            100.0%             83.5%            379.8%
Software development and consulting
- Software development                              0           126,100              0.0%             16.5%              n.m.
- Consulting                                        0                 0              0.0%              0.0%              n.m.
                                       ---------------   ---------------    --------------    --------------
                                                    0           126,100              0.0%             16.5%              n.m.
                                       ---------------   ---------------    --------------    --------------
     Total                                    132,732           763,006            100.0%            100.0%            474.8%
                                       ===============   ===============    ==============    ==============
</TABLE>

                                       7
<PAGE>

     The  increase  in each  category of  revenues  during the six months  ended
December 31, 1999 was primarily  attributable to marketing efforts and increased
name brand  awareness in connection  with those efforts and the operation of our
www.ChinaE.com  site.  Nominal  revenues were received  during the quarter ended
December  31, 1999 from the  commencement  of telephone  payment  systems by the
Jiayin Joint Venture.

     Cost of  Services.  Cost of  services  consist  principally  of salary  for
computer   network   technicians,   costs  of  systems  sales  and  integration,
subcontract fees, depreciation and amortization, and other costs associated with
the same,  including travel,  welfare,  office and related expenses allocable to
the  engineering  and  technician  staff.  Additionally,  other cost of services
includes certain other costs associated with the offering of special promotional
packages,  which  package  included  participation  in a  seminar,  lodging  and
advertisement.

     The following  table reflects the principal  components of cost of services
and  percentage  of net sales  represented  by each  component  for the  periods
indicated:

<TABLE>
                                                                                                                   Percent
                                            Total Cost of Services            Percent of Total Net Sales         Change from
                                                                                                                 six months
                                                                                                                    ended
                                                                                                                December 31,
                                                                                                                 1998 to six
                                                                                                                months ended
                                                                                                                December 31,
                                                                                                                    1999
                                       ---------------------------------    --------------------------------

                                        Six Months Ended December 31,        Six Months Ended December 31,
                                       ---------------------------------    --------------------------------
                                            1998              1999
                                            US$               US$               1998              1999
                                       ---------------   ---------------    --------------    --------------    --------------
<S>                                    <C>               <C>                 <C>               <C>                <C>

Engineering/technician salaries             10,958            73,572              8.3%              9.6%            571.4%
Subcontract fees                                 0           109,771              0.0%             14.4%              n.m.
Cost of system sales and integration             0           311,259              0.0%             40.8%              n.m.
Depreciation                                 1,273             7,498              1.0%              1.0%            489.0%
Other                                       15,707            95,544             11.8%             12.5%            508.3%
                                      -------------   ---------------    --------------    --------------
     Total                                  27,938           597,644             21.0%             78.3%          2,039.2%
                                      =============   ===============    ==============    ==============
</TABLE>

     For the six months ended  December 31,  1999,  costs of services  increased
2039.2%, to US$597,644,  or 78.3% of net sales, compared to US$27,938, or 21% of
net sales, for the six months ended December 31, 1998.

     The principal  components  of cost of services  during the six months ended
December 31, 1999 were engineer/technician  salaries;  subcontract fees; cost of
hardware;  other costs  associated  with  support on the  engineering/technician
staff; and depreciation of equipment utilized in connection with services.

     The  increase  in  costs  of  services  was  principally   attributable  to
expenditures  to support  the  increase in net sales,  including  an increase in
engineering/technician  headcount  from 7 at December 31, 1998 to 95 at December
31,  1999 and the sale of  certain  hardware  during  the  current  period.  The
increase  in costs  of  services  as a  percentage  of  revenues  was  primarily
attributable  to the sale of  hardware  which  has a lower  profit  margin  than
service revenues.

                                       8
<PAGE>

     Selling,   General  and  Administrative  Expense.   Selling,   general  and
administrative  expense ("SG&A") consists  principally of (1) sales commissions,
advertising,  trade show and seminar expenses,  and direct-field  sales expense,
(2) salary for  administrative  and sales staff, (3) corporate  overhead and (4)
amortization of intangibles.

     The  following  table  reflects  the  principal   components  of  SG&A  and
percentage of net sales represented by each component for the periods indicated:

<TABLE>
                                                                                                                   Percent
                                                  Total SG&A                  Percent of Total Net Sales         Change from
                                                                                                                 six months
                                                                                                                    ended
                                                                                                                December 31,
                                                                                                                 1998 to six
                                                                                                                months ended
                                                                                                                December 31,
                                                                                                                    1999
                                       ---------------------------------    --------------------------------

                                        Six Months Ended December 31,        Six Months Ended December 31,
                                       ---------------------------------    --------------------------------
                                            1998              1999
                                            US$               US$               1998              1999
                                       ---------------   ---------------    --------------    --------------    --------------
<S>                                    <C>                <C>               <C>               <C>                <C>

Sales and marketing salaries and
commissions                                    20,329            45,715             15.3%              6.0%            124.9%
Other sales and marketing expenses             14,219           100,641             10.7%             13.2%            607.8%
Rentals                                        10,047            15,046              7.6%              2.0%             49.8%
Administrative salaries                        25,600            44,761             19.3%              5.9%             74.8%
Other corporate                                28,907           271,675             21.8%             35.6%            839.8%
Amortization of intangibles                         -            72,464                 -              9.5%              n.m.
                                       ---------------   ---------------    --------------    --------------
     Total                                     99,102           550,302             74.7%             72.1%            455.3%
                                       ===============   ===============    ==============    ==============
</TABLE>

     For the six months ended  December  31, 1999,  SG&A  increased  455.3%,  to
US$550,302, or 72.1% of net sales, compared to US$99,102, or 74.7% of net sales,
for the six months ended December 31, 1998.

     The increase in SG&A has been principally  attributable to a combination of
(1) aggressive  marketing efforts associated with the commencement and growth of
revenue producing operations, including costs associated with sales commissions,
attendance at international trade conferences,  industry journal advertising and
other  related  expenses,  (2) an increase in  administrative  support staff and
corporate overhead to support anticipated growth in revenues, including non-cash
charges  totaling  US$50,463  associated  with the Company's  agreement to issue
certain shares and options to an officer, and (3) amortization of intangibles.

     The principal  components of SG&A during the six months ended  December 31,
1999  were  sales  and  marketing  salaries  and  commissions;  other  marketing
expenditures;  administrative  salaries and benefits;  other corporate  expense,
which includes occupancy expense,  general office expenses travel, general staff
welfare  expense  and  consulting  fees,  among  others;   and  amortization  of
intangibles.

     Amortization  expense  relates  eighty systems  integration  contracts from
Labtam  Corporation in July 1999. At the time of the acquisition,  five of those
contracts were active and seventy-five contracts were inactive and are viewed as
the purchase of a customer list.

                                       9
<PAGE>
     In accordance  with the terms of the agreement,  we issued 69,700 shares of
common  stock  to  Labtam  as  payment  in full  of the  purchase  price  of the
contracts.  The market  value of those  shares,  approximately  US$290,000,  was
recorded as an intangible asset.

     The  intangible   asset  is  being   amortized  over  a  24  month  period,
representing the life of the contracts.  During the six ended December 31, 1999,
we recorded a charge for  amortization  of the contracts of  US$72,464.  We will
incur amortization expense approximately US$36,000 for each quarter through June
30, 2001.

     Other Income. Other income consists principally of interest income. For the
six months ended  December 31, 1999 other income  totaled  US$4,374  compared to
US$0 of other income for the six months ended December 31, 1998. The increase in
other income was  attributable  to  increased  balances of cash held in interest
bearing accounts.

     Minority  Interest.  Minority interest of US$19,204 was reported during the
current period.  No minority interest was reported during the prior year period.
Minority interest reflects the proportionate  interest in the earnings/(loss) of
Jiayin Joint Venture not attributable to the Company.

Material Changes in Financial Condition, Liquidity and Capital Resources.

     At December 31, 1999 we had cash and cash  equivalents  of  US$365,342  and
working  capital of  US$1,239,192  as  compared to  US$528,612  of cash and cash
equivalents and US$476,912 of working capital at June 30, 1999.

     Operations used US$611,469 of cash during the six months ended December 31,
1999 and provided  US$44,345  of cash during the six months  ended  December 31,
1998.  Funds used in operations  primarily  relate to the losses incurred during
the period,  increases  in trade and other  receivables  and  increases in other
current and  non-current  assets,  all  relating to the  start-up  and growth of
operations, which were partially offset by an increase in trade payables.

     Investing  activities used US$231,857  during the six months ended December
31, 1999 and US$20,044 during the six months ended December 31, 1998. Funds used
in investing  activities consist of purchases of equipment to support operations
and  amounts  due from our joint  venture  partner,  Jiayin  Investment  Company
Limited.

     Financing  activities  provided  US$681,159  of cash  during the six months
ended  December 31, 1999 and US$6,722  during the six months ended  December 31,
1998. The cash provided by financing  activities was attributable to the receipt
of subscription  proceeds  totaling  US$500,000  relating to the sale of 400,000
shares of common  stock and the receipt of cash from our joint  venture  partner
during the current  period and the  receipt of proceeds  from the sale of common
stock during the prior year period.

     We had no long term debt at December 31, 1999 or June 30, 1999.

     Subsequent  to  December  31,  1999,  in  January  2000,  we issued  75,512
restricted shares of common stock to Shenzhen Jiayin Investment  Development Co.
Ltd. for US$302,045 pursuant to the terms of the Jiayin Joint Venture agreement.

     In January 2000,  we also entered into private  placement  agreements  with
three investors  pursuant to which those investors agreed to purchase a total of
953,334  shares of restricted  common stock in exchange for US$3 million.  As of
January 31, 2000,  subscription  proceeds of US$1.58  million had been deposited
with us in connection with the subscriptions.

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<PAGE>

     In January  2000,  we also  signed a Letter of Intent to  purchase  Dunwell
Computer  (Hong  Kong) Ltd.  Dunwell is a Hong Kong  licensed  Internet  Service
Provider and e-commerce solutions provider.  Pursuant to the terms of the Letter
of Intent, we will pay HK$2.8 million,  approximately  US$361,757 for 70% of the
stock of Dunwell.  The purchase price is payable 50% in cash and 50% in stock at
US$3.50 per share. Closing of the purchase of Dunwell is subject to execution of
definitive documents and satisfaction of standard closing conditions.

     Depending upon the rate of growth and the growth initiatives undertaken, we
may seek additional capital in the future to support expansion of operations and
acquisitions.  We are presently  involved in discussions with various  financing
sources with respect to providing equity financing,  including completion of the
sale of shares pursuant to the offering which commenced during the quarter ended
December 31, 1999.

Certain Factors Affecting Future Operating Results

     Our operating  results have been,  and will  continue to be,  affected by a
wide  variety of factors that could have a material  adverse  effect on revenues
and profitability during any particular period,  including the level and rate of
acceptance of our products and services by the Chinese people,  continued growth
in use of the Internet in China, entry of new competition (including established
companies  from  outside  of China  and  companies  with  substantially  greater
resources),  fluctuations in the level of orders for services which are received
and can be delivered in a quarter,  rescheduling  or  cancellation  of orders by
customers,  competitive pressures on selling prices, changes in product, service
or customer  mix,  rapid  changes in  technology,  dependence  upon  certain key
employees,  availability and cost of computer technicians, loss of any strategic
relationships,  our ability to  introduce  new products and services on a timely
basis, new product and service  introductions  by our competitors,  requirements
for additional  capital to support future growth and acquisitions,  fluctuations
in exchange  rates,  and general  economic  conditions,  among  others.  Various
factors  which  effect our future  operating  results are  discussed in our Form
10-SB.

     Subsequent  to December  31,  1999,  our board  authorized  the issuance of
41,110  restricted  shares  of  common  stocks  to  selected  non-executive  key
employees with over one year  employment as a one-time bonus  recognizing  their
contribution  in the company  start-up  stage.  We expect to  recognize a charge
during the quarter  ending  March 31, 2000 in  connection  with the  issuance of
those shares.

     Future  revenues  and  operating  results  may  also  be  effected  by  the
operations  of  Dunwell  Computer  (Hong  Kong  )  Ltd.  if  we  consummate  the
acquisition of Dunwell pursuant to an existing letter of intent.

     Except  as  noted  above,  we are  not  aware  of  any  trends,  events  or
uncertainties  which  have had,  or are  reasonably  likely to have,  a material
impact on our operations or our short-term or long-term liquidity.

Year 2000 Issue

     We experienced no material  failures as a result of the Year 2000 Issue and
our financial  condition and results of operations at, and for the period ended,
December 31, 1999 were not materially effected by the Year 2000 Issue.

                                       11
<PAGE>
                           PART II - OTHER INFORMATION

Item 2. Changes in Securities and Use of Proceeds

     (a) In December 1999, the Company received  subscriptions  and subscription
proceeds with respect to the offer and sale of 400,000 shares of common stock.

     (b) The  securities  were  offered  without  the use of an  underwriter  or
placement agent and were sold to a total of 8 accredited investors.

     (c) The securities were offered for aggregate  consideration of US$500,000.
No underwriting discounts or commissions were paid.

     (d) The  offer  and  sale of the  securities  was made in  reliance  on the
exemption set out in Section 4(2) of the Securities Act of 1933. The shares were
offered  without  general  solicitation  or  advertising  to a limited  group of
accredited investors.  Certificates evidencing the shares had not been issued as
of December 31, 1999 but will bear legends restricting transferability.

Item 6. Exhibits and Reports on Form 8-K

     (a)  Exhibits

      Exhibit No.         Description
      -----------        -------------
       27.1          Financial Data Schedule

     (b)  Reports on Form 8-K

               None


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<PAGE>
                                   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.

                                INTERMOST CORPORATION


Dated: February 15, 2000        By: /s/ Jun Liang
                                   -----------------------------------
                                    Jun Liang, President and C.E.O,
                                    Principal Accounting and Financial
                                    Officer


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