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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                              ---------------------

                                   FORM 10-QSB
(Mark One)

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

                 For the quarterly period ended: March 31, 2007

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

      For the transition period from _________________ to ________________

                        Commission file number: 000-30430

                                ----------------

                              INTERMOST CORPORATION
             (Exact name of registrant as specified in its charter)

        Wyoming                                         87-0418721
(State or other jurisdiction of             (IRS Employer Identification Number)
Incorporation or Organization)


31st Floor, 3B31-23 Guomao Building, 005 Renmin Rd. (South), Shenzhen,
        People's Republic of China                                    518014
  (Address of principal executive offices)                           (Zip Code)

                              011-86-755-8221-0238
              (Registrant's Telephone Number, including area code)

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

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act.): Yes |_| No |X|

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 193,370,278 shares of common stock as
of May 1, 2007.

Transitional Small Business Disclosure Format (check one).  Yes |_|  No |X|

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<PAGE>
<TABLE>
<CAPTION>
<S>                                                                  <C> <C>            <C> <C>                      <C>
                                TABLE OF CONTENTS
--------------------------------------------------------------------------------

PART I.  Financial Information

Item 1.         Financial Statements

        Condensed Consolidated Balance sheets (Unaudited) as of June 30, 2006 and March 31, 2007......................2

        Condensed Consolidated Statements of Operations (Unaudited) for the three months ended
        March 31, 2006 and March 31, 2007.............................................................................3

        Condensed Consolidated Statements of Operations (Unaudited) for the nine months ended
        March 31, 2006 and March 31, 2007.............................................................................4

        Condensed Consolidated Statements of Cash Flows (Unaudited) for the three months ended
        March 31, 2006 and March 31, 2007.............................................................................5

        Notes to Condensed Consolidated Financial Statements for the three months ended March 31,
        2006 and March 31, 2007.......................................................................................6

Item 2.         Management's Discussion and Analysis or Plan of Operation............................................12
Item 3.         Controls and Procedures..............................................................................21

PART II.  Other Information

Item 1.         Legal Proceedings  ..................................................................................22
Item 2.         Unregistered Sales of Equity Securities and Use of Proceeds..........................................23
Item 3.         Defaults Upon Senior Securities......................................................................23
Item 4.         Submission of Matters to a Vote of Security Holders..................................................23
Item 5.         Other Information....................................................................................23
Item 6.         Exhibits.............................................................................................24
                Risk Factors.........................................................................................25
                Signatures...........................................................................................28
</TABLE>


                                       1
<PAGE>
<TABLE>
<CAPTION>
<S>                                               <C>            <C>              <C>
                     INTERMOST CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                              June 30, 2006         March 31, 2007
                                                                     (unaudited)
                                             ---------------------------------------------
                                                   RMB            RMB            US$
                                          ASSETS
Current Assets
 Cash and cash equivalents                        5,617,182      5,590,424        716,721
 Accounts receivable, including RMB
  36,917,173 (US$4,732,971) from related
  companies at March 31, 2007                    68,381,831     51,347,335      6,582,992
 Inventories                                      1,026,078      2,796,943        358,582
 Security bond deposit                                    -     11,700,000      1,500,000
 Stock in custodian                               9,488,700      9,488,700      1,216,500
 Short-term Loan                                  4,867,200      3,680,000        471,795
 Deposits, prepayments and other receivables      6,765,699     29,986,870      3,844,471
 Short-term investment                            2,806,560      2,806,560        359,815
                                             ---------------------------------------------
 Total current assets                            98,953,250    117,396,832     15,050,876
                                             ---------------------------------------------

Other Assets
 Unlisted investment                              4,817,271      4,817,271        617,599
 Property and equipment, net                        412,639        440,469         56,470
 Investment in an associated company              8,676,426      8,649,826      1,108,952
 Goodwill, net                                   24,424,893     17,152,456      2,199,033
 Intangible assets, net                             878,851        683,376         87,612
                                             ---------------------------------------------
    Total assets                                138,163,330    149,140,230     19,120,542
                                             =============================================


                 LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS' EQUITY
Current Liabilities
 Accounts payable and accrued liabilities         1,717,967      4,559,717        584,579
 Loan from a related company                              -      1,248,000        160,000
 Customer deposits                                1,201,828      2,704,941        346,787
 Deferred revenue                                   195,287         58,034          7,440
 Business taxes and government surcharges
  payable                                         9,610,836      9,552,225      1,224,644
                                             ---------------------------------------------
    Total current liabilities                    12,725,918     18,122,917      2,323,450
                                             ---------------------------------------------

Minority Interests                               33,551,110     33,588,825      4,306,260
                                             ---------------------------------------------

Commitments and Contingencies

Shareholders' Equity
Preferred stock, par value US$0.001 per share
 Authorized - 5,000,000 shares
 Issued and outstanding - None                            -              -              -
Common stock, par value US$0.001 per share
Authorized - 500,000,000 shares
 Issued and outstanding --- 193,370,278
  shares at December 31, 2006 and at March
  31, 2007                                        1,243,188      1,508,294        193,371
Less : Subscription receivable                            -              -              -
Additional paid-in capital                      176,115,082    193,134,223     24,760,798
Shares to be issued                                       -        171,600         22,000
Accumulated deficit                             (86,707,681)   (94,764,664)   (12,149,316)
Accumulated other comprehensive loss              1,235,713     (2,620,965)      (336,021)
                                             ---------------------------------------------
Total shareholders' equity                       91,886,302     97,428,488     12,490,832
                                             ---------------------------------------------
Total liabilities, minority interests and
        Shareholders' equity                    138,163,330    149,140,230     19,120,542
                                             =============================================
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.

                                       2
<PAGE>
<TABLE>
<CAPTION>
<S>                                               <C>            <C>              <C>
                     INTERMOST CORPORATION AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

                                                      Three months ended March 31,
                                                   2006                   2007
--------------------------------------------------------------------------------------------
                                                    RMB             RMB            US$

Net revenue                                      27,496,206       5,693,369         729,919
Cost of revenues                                (22,620,363)     (5,481,783)       (702,793)
                                             --------------- --------------- ---------------
Gross profit                                      4,875,843         211,586          27,126
                                             --------------- --------------- ---------------
Costs and expenses:
Selling, general and administrative expenses     (1,642,639      (1,745,924)       (223,836)
Impairment of goodwill
Exchange differences                                                 (2,434)           (312)
Amortization of intangible assets                   (57,208)        (65,158)         (8,354)
                                             --------------- --------------- ---------------
Total costs and expenses                         (1,699,847)     (1,813,516)       (232,502)
                                             --------------- --------------- ---------------

Income (loss) from operations                     3,175,996      (1,601,930)       (205,376)
Interest income                                       9,787          12,822           1,644
Loan interest income                                144,015         140,400          18,000
Other income, net                                     4,820             705              90
                                             --------------- --------------- ---------------
Income before income taxes,
    minority interests and equity in
    earnings of associated companies              3,334,618      (1,448,003)       (185,642)
Income taxes                                       (747,453)        (28,970)         (3,714)
                                             --------------- --------------- ---------------

Income before minority interests and equity
 in earnings of an associated companies           2,587,165      (1,476,973)       (189,356)
Minority interests                               (2,029,872)          8,852           1,135
                                             --------------- --------------- ---------------
Income (loss) before equity in earnings of
 associated companies                               557,293      (1,468,121)       (188,221)
Equity in earnings of associated companies          (80,734)
Dividend income from an associated company        2,549,063         828,768         106,252
                                             --------------- --------------- ---------------


Net income (loss)                                 3,025,622        (639,353)        (81,969)
                                             =============== =============== ===============


Net income (loss) per common share-basic and
 diluted                                               0.02          (0.003)        (0.0004)
                                             =============== =============== ===============

Weighted average number of common shares
outstanding-basic and diluted                   148,712,945     193,370,278     193,370,278
                                             =============== =============== ===============
</TABLE>

                                       3
<PAGE>
<TABLE>
<CAPTION>
<S>                                               <C>            <C>              <C>
                                                       Nine Months Ended March 31,
                                             -----------------------------------------------
                                                  2006                    2007
                                             --------------- -------------------------------
                                                   RMB             RMB             US$

Net revenues                                     86,279,354      13,430,679       1,721,882
Cost of revenues                                (65,078,901)    (12,937,009)     (1,658,591)
                                             --------------- --------------- ---------------
Gross profit                                     21,200,453         493,670          63,291
                                             --------------- --------------- ---------------
Costs and expenses:
Selling, general and administrative expenses     (7,821,038)     (6,366,293)       (816,191)
Exchange differences                                      -       4,313,114         552,963
Amortization of intangible assets                (1,306,594)       (195,475)        (25,061)
                                             --------------- --------------- ---------------
Total costs and expenses                         (9,127,632)     (2,284,654)       (288,289)
                                             --------------- --------------- ---------------

Income (loss) from operations                    12,072,821      (1,754,984)       (224,998)
Interest income                                      16,860          44,868           5,752
Loan interest income                                185,442         286,570          36,740
Impairment of goodwill                                    -      (7,272,437)       (932,364)
Investment income, net                            1,365,680         (28,461)         (3,649)
Other income, net                                    29,820             980             126
                                             --------------- --------------- ---------------
Income (loss) before income taxes,
    minority interests and equity in
    earnings of associated companies             13,670,623      (8,723,464)     (1,118,393)
Income taxes                                     (3,124,550)        (95,386)        (12,229)
                                             --------------- --------------- ---------------
Income (loss) before minority interests and
    equity in earnings of associated
    companies                                    10,546,073      (8,818,850)     (1,130,622)
Minority interests                               (8,800,878)        (40,301)         (5,167)
                                             --------------- --------------- ---------------
Income (loss) before equity in earnings of
    associated companies                          1,745,195      (8,859,151)     (1,135,789)
Dividends income from an associated company       2,549,063         828,768         106,252
Equity in earnings of associated
companies                                           323,589         (26,600)         (3,410)
                                             --------------- --------------- ---------------
Net income (loss)                                 4,617,847      (8,056,983)     (1,032,947)
                                             =============== =============== ===============

Net income (loss) per common share -
    basic and diluted                                 0.036          (0.046)        (0.0059)
                                             =============== =============== ===============
Weighted average number of common shares
    outstanding - basic and diluted             129,132,951     173,382,861     173,382,861
                                             =============== =============== ===============
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.

                                       4
<PAGE>
<TABLE>
<CAPTION>
<S>                                               <C>            <C>              <C>
                     INTERMOST CORPORATION AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

                                                       Nine Months Ended March 31,
                                             -----------------------------------------------
                                                  2006                    2007
                                             --------------- -------------------------------
                                                   RMB             RMB             US$

Cash flows from operating activities:
Net income (loss)                                 4,617,847      (8,056,983)     (1,032,947)
Adjustments to reconcile net income (loss) to
    net cash used in operating activities:
Common stock reserved and to be issued in
    exchange for services                         5,377,209
 Impairment of goodwill                                   -       7,272,437         932,364
 Amortization of intangible assets                1,306,594         195,475          25,061
 Equity in earnings of associated companies        (323,589)         26,600           3,410
 Depreciation                                       106,398         166,355          21,328
 Minority interests                               8,800,878          37,715           4,835
 (Increase) decrease in operating assets -
 Accounts receivable                            (14,568,949)     17,034,496       2,183,910
 Inventories                                       (158,504)     (1,770,865)       (227,034)
 Deposits, prepayments and other receivables       (241,757)    (23,221,171)     (2,977,073)
 Increase (decrease) in operating
    liabilities -
 Accounts payable                                (7,513,003)      2,162,357         277,225
Accrued liabilities                              (5,965,405)        679,393          87,102
 Customer deposits                                   37,536       1,503,113         192,707
 Deferred revenue                                   (94,795)       (137,253)        (17,597)
 Business taxes and government surcharges
    payable                                       3,129,294         (58,611)         (7,514)
                                             --------------- --------------- ---------------
Net cash used in operating activities            (5,490,246)     (4,166,942)       (534,223)
                                             --------------- --------------- ---------------
Cash flows from investing activities:
 Acquisition of plant and equipment                (275,421)       (194,185)        (24,896)
 Acquisition of short-term investment              (504,000)
 Dividends received from an associated
    company                                      (2,549,063)
 Acquisition of intangible asset                   (138,000)
 Increase in security bond deposit                              (11,700,000)     (1,500,000)
 Increase (decrease) in short-term loan          (4,867,200)      1,187,200         152,205
                                             --------------- --------------- ---------------
Net cash provided by investing activities        (8,333,684)    (10,706,985)     (1,372,691)
                                             --------------- --------------- ---------------
Cash flows from financing activities:
  Loan from a related company                             -       1,248,000         160,000
  Net proceeds from issuance of common stock     20,262,337      17,455,847       2,237,929
                                             --------------- --------------- ---------------
Net cash provided by financing activities        20,262,337      18,703,847       2,397,929
                                             --------------- --------------- ---------------
Accumulated other comprehensive loss             (1,154,791)     (3,856,678)       (494,446)
Cash and cash equivalents:
Net increase (decrease)                           5,283,616         (26,758)         (3,431)
Balance at beginning of period                    1,116,365       5,617,182         720,152
                                             --------------- --------------- ---------------
Balance at end of period                          6,399,981       5,590,424         716,721
                                             =============== =============== ===============

Supplemental cash flow information:
     Cash paid for interest                               -               -               -
     Cash paid for income taxes                       3,149               -               -
Non-cash investing and financing activities:
     Receivable from issuance of common stock             -               -               -
     Issuance of reserved common stock                    -               -               -
     Issuance of common stock for service         5,377,209         171,600          22,000
   Acquisition of associated companies            8,799,350
   Acquisition of subsidiaries:
     Non-cash assets acquired                             -               -               -
     Liabilities assumed in acquisition                   -               -               -
     Issuance of common stock                             -               -               -
                                             =============== =============== ===============
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements

                                       5
<PAGE>
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
                   THREE MONTHS ENDED MARCH 31, 2006 AND 2007

1. ORGANIZATION AND BASIS OF PRESENTATION

The condensed consolidated financial statements include the accounts of the
Intermost Corporation (the "Company") and its majority-owned subsidiaries, of
which the Company has the ability to exercise control and direct operations and
the minority interests do not possess participatory rights. All material
intercompany balances and transactions have been eliminated on consolidation.

The condensed consolidated financial statements have been prepared in accordance
with generally accepted accounting principles in the United States of America.

The condensed consolidated financial statements are unaudited, but in the
opinion of management of the Company, contain all adjustments, which include
normal recurring adjustments, necessary to present fairly the financial position
at March 31, 2007, the results of operations for the three months ended March
31, 2007 and 2006, and the cash flows for the nine months ended March 31, 2007
and 2006. The balance sheet as of June 30, 2006 is derived from the Company's
audited financial statements included in the Company's Annual Report on Form
10-KSB for the fiscal year ended June 30, 2006.

Certain information and footnote disclosures normally included in financial
statements that have been prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to the rules and
regulations of the Securities and Exchange Commission, although management of
the Company believes that the disclosures contained in these financial
statements are adequate to make the information presented therein not
misleading. For further information, refer to the financial statements and the
notes thereto included in the Company's Annual Report on Form 10-KSB for the
fiscal year ended June 30, 2006, as filed with the Securities and Exchange
Commission.

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.

The results of operations for the three months ended March 31, 2007 are not
necessarily indicative of the results of operations to be expected for the full
fiscal year ending June 30, 2007.

2. NET INCOME (LOSS) PER COMMON SHARE

Statement of Financial Accounting Standards No. 128, "Earnings Per Share,"
requires presentation of basic earnings per share ("Basic EPS") and diluted
earnings per share ("Diluted EPS"). Basic earnings (loss) per share is computed
by dividing earnings (loss) available to common stockholders by the weighted
average number of common shares outstanding (including shares reserved for
issuance) during the period. Diluted earnings per share gives effect to all
dilutive potential common shares outstanding during the period. The Company did
not have any potentially dilutive securities outstanding during the three months
ended March 31, 2006 and 2007. Accordingly, basic and diluted earnings per share
are the same for all periods presented.

3. FOREIGN CURRENCY TRANSLATION

The Company maintains its books and records in Renminbi ("Rmb"), the currency of
the People's Republic of China (the "PRC"). The Rmb is the Company's functional
currency, as the Company's business activities are located in the PRC and
denominated in Rmb. Translation of amounts into United States dollars ("US$")
has been made at the rate of Rmb7.8 to US$1.00. The translation of the financial
statements of subsidiaries whose functional currencies are other than Rmb into
Rmb is performed for balance sheet accounts using closing exchange rates in
effect at the balance sheet date and for revenue and expense accounts using an
average exchange rate during each reporting period. The gains or losses
resulting from translation are included in stockholders' equity separately as
accumulated other comprehensive loss.

                                       6
<PAGE>

Transactions in currencies other than functional currencies during the period
are translated into the respective functional currencies at the applicable rates
of exchange prevailing at the time of the transactions. Monetary assets and
liabilities denominated in currencies other than functional currencies are
translated into the respective functional currencies at the applicable rates of
exchange in effect at the balance sheet date. Exchange gains and losses are
included in the statement of operations. On July 21, 2005, Rmb was revalued from
Rmb 8.28 to Rmb8.11 for US$1 following the removal of the peg to the US dollar
and pressure for the United States. With the strong Rmb in the quarter ended
December 31, 2006, Rmb appreciated from Rmb 8.11 to Rmb 7.8 for US$1 at December
31, 2006. Therefore, the rate of Rmb 7.8 for US$ 1 was adopted for these
quarterly financial statements.

The Rmb is not readily convertible into US$ or other foreign currencies.
Translation of amounts from Rmb into US$ is for the convenience of readers. No
representation is made that the Rmb amounts could have been, or could be,
converted into US$ at that rate or at any other rate.

For the purposes of financial statements presentation, the United States dollars
equivalents of the all numbers are translated at the rate of USD 1 to Rmb 7.8.

4. STOCK-BASED COMPENSATION

The Company may periodically issue shares of common stock for services rendered
or for financing costs. The Company may also periodically issue shares of common
stock in conjunction with the acquisition of an, all or a portion of the equity
interest in a business. The shares of common stock vest immediately on issuance
and are not subject to any redemption rights.

The value of the shares of common stock issued for accounting purposes is based
on the market price of the shares at the date of the transaction or on the fair
value of the services rendered or net assets acquired, whichever is more
determinable, based on the specific facts and circumstances of each transaction.
The Company did not issue any stock during the none-month period ended March 31,
2007 for any services rendered or assets acquired.

The Company may periodically issue stock options to employees and stock options
or warrants to non-employees in non-capital raising transactions for services
and for financing costs.

The Company has adopted Statement of Financial Accounting Standards No. 123,
"Accounting for Stock-Based Compensation" ("SFAS No. 123"), which establishes a
fair value method of accounting for stock-based compensation plans.

The provisions of SFAS No. 123 allow companies to either record an expense in
the financial statements to reflect the estimated fair value of stock options to
employees, or to continue to follow the intrinsic value method set forth in
Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to
Employees", but to disclose on an annual basis the pro forma effect on net
income (loss) and net income (loss) per share had the fair value of the stock
options been recorded in the financial statements. SFAS No. 123 was amended by
SFAS No. 148, which now requires companies to disclose in interim financial
statements the pro forma effect on net income (loss) and net income (loss) per
common share of the estimated fair market value of stock options issued to
employees. The Company has elected to continue to account for stock-based
compensation plans utilizing the intrinsic value method. Accordingly,
compensation cost for stock options will be measured as the excess, if any, of
the fair market price of the Company's common stock at the date of grant above
the amount an employee must pay to acquire the common stock.

In accordance with SFAS No. 123, the cost of stock options and warrants issued
to non-employees is measured at the grant date based on the fair value of the
award. The fair value of the stock-based award is determined using the
Black-Scholes option-pricing model. The resulting amount is charged to expense
on the straight-line basis over the period in which the Company expects to
receive benefit, which is generally the vesting period.

                                       7
<PAGE>

In accordance with SFAS No. 123, the Company will provide footnote disclosure
with respect to stock-based employee compensation. The value of a stock-based
award will be determined using the Black-Scholes option-pricing model, whereby
compensation cost is the fair value of the award as determined by the pricing
model at the grant date or other measurement date. The resulting amount will be
charged to expense on the straight-line basis over the period in which the
Company expects to receive benefit, which is generally the vesting period. Stock
options issued to non-employee directors at fair market value will be accounted
for under the intrinsic value method.

The Company did not have any stock options outstanding during the period ended
March 31, 2006 and 2007. Accordingly, no pro forma financial disclosure is
provided herein.

5. RECENT ACCOUNTING PRONOUNCEMENTS

In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes an
interpretation of FASB Statement No. 109 - Accounting for Income Taxes" ("FIN
48"), to create a single model to address accounting for tax positions.
Interpretation No. 48 requires the use of 1 two-step approach for recognizing
and measuring tax benefits taken or expected to be taken in a tax return and
disclosures regarding uncertainties in income tax positions including a
roll-forward of tax benefits taken that do not qualify for financial statement
recognition. The provisions of FIN 48 becomes effective for the Company on July
1, 2007, with the cumulative effect of the change in accounting principle, if
any, recorded as an adjustment to opening retained earnings. The Company is
currently evaluating the impact of adopting FIN 48 and its impact on its
financial position, cash flows, and results of operations.

In September 2006, the Securities and Exchange Commission ("SEC") released Staff
Accounting Bulletin No. 108, "Considering the Effects of Prior Year
Misstatements when Qualifying Misstatements in Current Year Financial
Statements". Bulletin No. 108 expresses the SEC staff's views regarding the
process of quantifying financial statement misstatements. Bulletin No. 108
requires that, in addition, to considering the amount of the error originating
in the current year statement of operations, the misstatements existing at each
balance sheet date should be considered, irrespective of the period of origin of
the error (rollover approach versus iron curtain approach). The Company adopted
Bulletin No. 108 during the quarter ended March 31, 2007. The adoption did not
have a material impact on its financial position, cash flows, and results of
operations.

In September 2006, the FASB issued Statement No. 157, "Fair Value Measurements".
Statement No. 157 defines fair value, establishes a framework for measuring fair
value in accordance with U.S. GAAP, and expands disclosures about fair value
measurements. Statement No. 157 does not require any new fair value
measurements; rather, it applies to other accounting pronouncements that require
or permit fair value measurements. We are required to apply the provision of
Statement No. 157 prospectively as of July 1, 2008, and recognize any transition
adjustment as a cumulative-effect adjustment to the opening balance of retained
earnings. The Company is currently evaluating the impact of adopting FIN 48 and
its impact on its financial position, cash flows, and results of operations.

In February 2007, the FASB issued Statement No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities" which permits entities to choose to
measure any financial instruments and certain other items at fair value that are
not currently required to be measured at fair value. Statement No. 159 will be
effective for the Company on July 1, 2008. The Company is currently evaluating
the impact of adopting FIN 48 and its impact on its financial position, cash
flows, and results of operations.

6. CERTAIN SIGNIFICANT RISKS AND UNCERTAINTIES

Country Risk - The Company is subject to the consideration and risks of
operating in the People's Republic of China (the "PRC"). These include risks
associated with the political and economic environment, foreign currency
exchange and the legal system in the PRC. The economy of PRC differs
significantly from the economies of the "western" industrialized nations in such
respects as structure, level of development, gross national product, growth
rate, capital reinvestment, resource allocation, self-sufficiency, rate of
inflation and balance of payments position, among others. Only recently has the
PRC government encouraged substantial private economic activities. The Chinese
economy has experienced significant growth in the past several years, but such
growth has been uneven among various sectors of the economy and geographic
regions. Actions by the PRC government to control inflation have significantly
restrained economic expansion in the recent past. Similar actions by the PRC
government in the future could have a significant adverse effect on economic
conditions in PRC.

Many laws and regulations dealing with economic matters in general and foreign
investment in particular have been enacted in the PRC. However, the PRC still
does not have a comprehensive system of laws, and enforcement of existing laws
may be uncertain and sporadic.

                                       8
<PAGE>

The Company's primary sources of revenues and cash flows are derived from its
business operations in the PRC. The Company's business activity is with
customers in the PRC. The PRC economy has, for many years, been a
centrally-planned economy, operating on the basis of annual, five-year and
ten-year state plans adopted by central PRC governmental authorities, which set
out national production and development targets. The PRC government has been
pursuing economic reforms since it first adopted its "open-door" policy in 1978.
There is no assurance that the PRC government will continue to pursue economic
reforms or that there will not be any significant change in its economic or
other policies, particularly in the event of any change in the political
leadership of, or the political, economic or social conditions in, the PRC.
There is also no assurance that the Company will not be adversely affected by
any such change in governmental policies or any unfavorable change in the
political, economic or social conditions, the laws or regulations, or the rate
or method of taxation in the PRC.

As many of the economic reforms that have been or are being implemented by the
PRC government are unprecedented or experimental, they may be subject to
adjustment or refinement, which may have adverse effects on the Company.
Further, through state plans and other economic and fiscal measures such as the
leverage of exchange rate, it remains possible for the PRC government to exert
significant influence on the PRC economy.

The Company's financial instruments that are exposed to concentration of credit
risk consist primarily of cash and cash equivalents. Cash and cash equivalents
are maintained with government-owned banks in the PRC with high credit ratings.
Accordingly, the Company believes that no significant credit risk exists.

On January 1, 1994, the PRC government introduced a single rate of exchange of
Renminbi ("Rmb") against United States Dollar ("US$") as quoted daily by the
People's Bank of China (the "Unified Exchange Rate"). On July 21, 2006, Rmb was
revalued from Rmb 8.28 to Rmb8.11 for US$1 following the removal of the peg to
the US dollar and pressure for the United States. The Peoples Bank of China also
announced that the Renminbi would be pegged to a basket of foreign currencies,
rather then being strictly tied to the US dollar and would trade within a narrow
0.3% band against this basket of currencies, which is dominated by the US
dollar, Euro, Japanese Yen and South Korean Won, with a smaller proportion made
up of the British pound, Thai Baht and Russian Ruble. No representation is made
that the Rmb amounts have been, or could be, converted into US$ at that rate.
This quotation of exchange rates does not imply free convertibility of Rmb to
other foreign currencies. All foreign exchange transactions continue to take
place either through the Bank of China or other banks authorized to buy and sell
foreign currencies at the exchange rate quoted by the People's Bank of China.
Approval of foreign currency payments by the People's Bank of China or other
institutions requires submitting a payment application form together with
suppliers' invoices, shipping documents and signed contracts.

Restrictions on the Payment of Dividends - PRC law requires net profits after
taxes to be used to set-off any losses carried forward before any distribution
of profits may be made. Furthermore, PRC law imposes a Mandatory Provident
Reserve on all businesses. Under this law, a business must set aside 10% of its
distributable profits as a mandatory reserve before a distribution of profits
may occur. Once the business accumulates a mandatory reserve equal to 50% of its
capitalization, no further accumulation of the reserve is required.

Industry Risk - The Company operates in business segments which are
characterized by rapid technological advances, changes in customer requirements,
and evolving regulatory requirements and industry standards. Any failure by the
Company to anticipate or to respond adequately to technological changes in its
industry segments, changes in customer requirements or changes in regulatory
requirements or industry standards, could have a material adverse effect on the
Company's business and operating results.

7. INCOME TAXES

The Company and its subsidiaries are subject to income taxes on an entity basis
on income arising in, or derived from, the tax jurisdiction in which they
operate.

The Company is subject to the United States federal tax at a rate of 35%.

Intermost Limited, and Leader Palace International limited, the Company's
subsidiaries incorporated under the International Business Companies Act of the
British Virgin Islands, is exempted from payment of the British Virgin Islands
income taxes.

Intermost (H.K.) Limited, the Company's subsidiary incorporated in Hong Kong, is
subject to Hong Kong profits tax at a rate of 17.5%.

                                       9
<PAGE>

The Company's key consolidated subsidiaries organized in the PRC (ChinaE.com
Information Technology Ltd., IMOT Information Technology (Shenzhen) Ltd.,
ChinaE.com Technology (Shenzhen) Ltd., Intermost Focus Advertising Company Ltd.,
Shenzhen Golden Anke Technology Ltd., and ChinaE.com Investment Consultant
(Shenzhen) Limited) are subject to PRC enterprise income taxes at a rate of 15%.

For the three months ended March 31, 2007 and 2006, Shenzhen Golden Anke
Technology Ltd. generated approximately the majority of the Company's
consolidated taxable income. Since the losses from one subsidiary cannot be
offset against the income from another subsidiary in determining the provision
for income taxes, the Company's provision for income taxes for the three months
ended March 31, 2007 and 2006 are mainly for the taxable income generated by
Shenzhen Golden Anke Technology Ltd.

8. CONCENTRATION

On August 10, 2004, the Company, through its wholly-owned subsidiary, IMOT
information Technology (Shenzhen) Ltd. ("IMOT Technology"), completed a
transaction to acquire a 51% equity interest in Shenzhen Golden Anke Technology
Ltd., a limited liability company established in China ("Shenzhen Golden Anke"),
after having received all required government approvals to complete the
transaction on such date. The Company acquired the 51% equity interest in
Shenzhen Golden Anke from two of Shenzhen Golden Anke's shareholders, Tu Guoshen
and Li Zhiquan, pursuant to a Share Transfer Agreement. Shenzhen Golden Anke
provides digital security imaging systems in China, offering video surveillance,
digital image processing and compressing, internet image transfer and imaging
security systems, and is being operated as a part of the Company's digital
security imaging system business segment.

Jiuding Group is a company controlled by a common owner with 15.09% in Jiuding
Group and of the 4% minority interest in Shenzhen Golden Anke Technology Ltd.

During the nine months ended March 31, 2007, the Company had no sales to
subsidiaries of Jiuding Group.

At March 31, 2007, accounts receivable from subsidiaries of Jiuding Group
aggregated approximately RMB36.9 million (US$4.7 million) or 78% of total
accounts receivable at such date.

9. SEGMENT INFORMATION

The Company adopted SFAS No. 131, "Disclosures About Segments of an Enterprise
and Related Information," in respect of its operating segments. The Company
currently operates in four principle business segments which are: E-Commerce
solutions, Digital security imaging system, Consulting, and Photographic
business. E-Commerce Solutions comprises revenue from web-site development
contracts and maintenance contracts. The Digital security imaging system segment
consists of sales of surveillance system and maintenance services. The
Consulting segment comprises services rendered for provision of information on
property exchange matters, and the Photographic Business consists of sales of
photographic equipment.

Each segment is managed separately because each business requires different
technology and marketing strategies. The Company evaluates performance based on
operating earnings of the respective business units. The accounting policies of
the segments are the same as those described in the summary of significant
accounting policies. The corporate assets include primarily cash and cash
equivalents and deposits and other receivables. There were no significant
intercompany transactions during any of the reported periods. In determining
operating income (loss) by reportable segment, general corporate expenses and
other income and expense items of a non-operating nature are not considered; as
such items are not allocated to the Company's segments. Management believes that
the following table presents the useful information to the chief operation
decision makers for measuring business performance and financing needs etc.
Except for the customers of VOIP call minutes, all of the other customers are
located in the PRC. As such, no geographical Segment information is presented.
Segment information for the nine months period ended March 31, 2007 is as
follows:

                                       10
<PAGE>
    (a) Net revenues:

                                            Nine Months Ended March 31, 2007
                                         ---------------------------------------
                                               Rmb'000             US$'000
E-commerce solutions                                    538                  69
VOIP call minutes                                     6,359                 815
Photographic business                                    13                   2
Digital security imaging system                       6,521                 836
                                         ------------------- -------------------
                                                     13,431               1,722
                                         =================== ===================

          (b)  Net income (loss):

                                            Nine Months Ended March 31, 2007
                                         ---------------------------------------
                                               Rmb'000             US$'000

E-commerce solutions                                 (2,588)               (332)
Consulting                                           (7,419)               (951)
Photographic business                                  (212)                (27)
VOIP call minutes                                       174                  22
Digital security imaging system                         541                  69
Corporate                                             1,447                 186
                                         ------------------- -------------------
                                                     (8,057)             (1,033)
                                         =================== ===================

(c)   Assets:

                                                  As at March 31, 2007
                                         ---------------------------------------
                                               Rmb'000             US$'000
E-commerce solutions                                  4,325                 554
Consulting                                            3,375                 433
Digital security imaging system                      94,274              12,086
Photographic business                                 1,984                 254
VOIP call minutes                                     4,880                 626
Corporate                                            40,302               5,167
                                         ------------------- -------------------
                                                    149,140              19,120
                                         =================== ===================

    Substantially all of the Company's identifiable assets are located in the
    PRC.

    (d) Other items:

                                            Nine Months Ended March 31, 2007
                                         ---------------------------------------
                                               Rmb'000             US$'000
Depreciation:
E-commerce solutions                                    149                  19
Consulting                                                8                   1
Corporate expenses                                        8                   1
                                         ------------------- -------------------
                                                        166                  21
                                         =================== ===================

Expenditures for fixed assets:
   E-commerce solutions                                 184                  24
   Corporate                                             10                   1
                                         ------------------- -------------------
                                                        194                  25
                                         =================== ===================

                                       11
<PAGE>
10. PENDING TRANSACTIONS

On February 15, 2007, company, IMOT Information Technology (Shenzhen) Co., Ltd.
entered into a tripartite agreement with Shenzhen Golden Anke Technology Limited
("Golden Anke") (a consolidated subsidiary) and the minority shareholders of
this consolidated subsidiary to seek listing of Golden Anke in London or the
United States of America. According to this agreement, a new company
incorporated in Hong Kong will be formed as the listing vehicle and the Company
will invest Rmb 2 million in this new Hong Kong company, which, in turn, will
acquire the current business of Golden Anke and all its net assets. After such
restructuring, the interests of the Company in this new Hong Kong company will
change from 51% to 49%. .

The Company's wholly-owned subsidiary, IMOT Information Technology (Shenzhen)
Ltd. ("IMOT Technology") owns 80% of the issued and outstanding capital of
Hainan Financial Products Development Co., Ltd ("Hainan Financial Products"). In
late 2006, IMOT Technology discovered that the profit requirement of Rmb
5,000,000 in accordance with a profit guarantee agreement of Hainan Financial
Products had not been met and Hainan Financial Products was a shelf company
without any registered capital. As such, IMOT Technology and the Company decided
to refer the dispute and apply to the China International Economic and Trade
Arbitration Commission, South China Sub-Commission in Shenzhen ("Arbitration
Commission"). On December 20, 2006, Arbitration Commission approved the
application. The three orders sought under this arbitration include the
rescission of the share swap agreement and profit guarantee agreement; the
return of 3,000,000 shares of common stock of the Company by the sellers; and to
have all the legal costs and other costs incurred in this arbitration to be
reimbursed or borne by the sellers. The Respondents at the same time also
applied to a court in Haikou of Hainan province to request the above-mentioned
dispute to be handled by the court. On April 29, 2007, this court ruled that the
dispute could be subject to its jurisdiction. In response to this ruling, IMOT
Technology is currently seeking legal advice for the appeal. The Company and
IMOT Technology believe they have a reasonable chance of a successful appeal.

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

Certain statements contained in this Form 10-QSB constitute forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements herein are based on current expectations that involve
a number of risks and uncertainties. Such forward-looking statements are based
on assumptions that there will be no material adverse change in our operations
or business, that we will meet success in marketing and selling our products,
and that we will be able to continue to attract and retain skilled employees
necessary for our business, among other things. The foregoing assumptions are
based on judgments with respect to, among other things, information available to
our, future economic, competitive and market conditions and future business
decisions. All of these assumptions are difficult or impossible to predict
accurately and many are beyond our control. Accordingly, although we believe
that the assumptions underlying the forward-looking statements are reasonable,
any such assumption could prove to be inaccurate and therefore there can be no
assurance that the results contemplated in the forward-looking statements will
be realized. There are a number of risks presented by our business and
operations, which could cause our financial performance to vary markedly from
prior results, or results contemplated by the forward-looking statements. Such
risks include failure of the our technology or products to work as anticipated,
failure to develop commercially viable products or services from our technology,
delays or failure in financing efforts, delays in or lack of market acceptance,
failure to recruit adequate personnel, and problems with protection of
intellectual property, among others. The words "believe," "estimate," "expect,"
"intend," "anticipate" "should", "could", "may", "plan" and similar expressions
and variations thereof identify some of these forward-looking statements.
Management decisions, including budgeting, are subjective in many respects and
periodic revisions must be made to reflect actual conditions and business
developments, the impact of which may cause us to alter our capital investment
and other expenditures, which may also adversely affect our results of
operations. In light of significant uncertainties inherent in forward-looking
information included in this Quarterly Report on Form 10-QSB, the inclusion of
such information should not be regarded as a representation by us that our
objectives or plans will be achieved. We undertake no obligation to revise or
publicly release the results of any revision to these forward-looking
statements.

                                       12
<PAGE>

Overview

The Company believes that the People's Republic of China represents a dynamic
emerging world market whose role in the global economy is increasing steadily.
China's economic growth rate, measured by its gross domestic product, has
consistently been higher than 7% over the past 10 years. This economic growth is
attributable to many factors, including investment in the country's
infrastructure, increased privatization of businesses and an abundant source of
labor.

Currently, the Company offers products and services to businesses and consumers
located primarily in China. The Company also has begun to acquire diverse
businesses that are not dependent on, or directly related to, each other. During
the past two years, the Company has acquired a digital imaging system business,
a property rights exchange business, a security system business and a business
that provides "smart cards," which are credit card sized cards that are able to
be programmed to perform tasks and store information. The Company has used its
technological expertise to enhance the products and services provided by these
businesses. The diversification of the Company's business has resulted in an
overall improvement in the Company's financial condition. Currently, over 90% of
the Company's revenues are generated by its subsidiaries, Shenzhen Golden Anke
Technology Ltd. ("Shenzhen Golden Anke"), which sells digital security imaging
systems, and Leader Palace International Limited. ("Leader Palace"), which sells
VOIP call minutes in Taiwan. The balance of the Company's revenues are generated
primarily by other subsidiaries, ChinaE.com Information Technology Ltd.
("ChinaE.com"), which distributes licenses for Chinese language translation
software and offers web design and hosting services.

We will further develop our business in the property rights exchange industry by
using our technical expertise to develop an electronic platform for the trading
of private property rights in China. Through our acquisitions of exchange
centers in Hainan and Shenzhen, we have enhanced our market presence in this
growing industry in the PRC. After the electronic trading platform is in
operation, we anticipate that we will have another stream of revenue from the
property rights exchange industry.

With the appointment of CLC as our advisor to set up the telecom division to
provide ICT services and wholesale VOIP call minutes, we hope to generate
revenue.

Risks Associated with Doing Business in China

There are significant risks in operating in the Peoples' Republic of China (the
"PRC"). These include risks associated with the political and economic
environment, foreign currency exchange and the legal system in the PRC. The
economy of PRC differs significantly from the economies of the industrialized
nations of the west in such respects as structure, level of development, gross
national product, growth rate, capital reinvestment, resource allocation,
self-sufficiency, rate of inflation and balance of payments position, among
others. Only recently has the PRC government encouraged substantial private
economic activities. The Chinese economy has experienced significant growth in
the past several years, but such growth has been uneven among various sectors of
the economy and geographic regions. Actions by the PRC government to control
inflation have significantly restrained economic expansion in the recent past.
Similar actions by the PRC government in the future could have a significant
adverse effect on economic conditions there.

Many laws and regulations dealing with economic matters in general and foreign
investment in particular have been enacted in the PRC. However, the PRC still
does not have a comprehensive system of laws, and enforcement of existing laws
may be uncertain and sporadic. Our primary sources of revenues and cash flows
are derived from our business operations in the PRC. The PRC economy has, for
many years, been a centrally-planned economy, operating on the basis of annual,
five-year and ten-year state plans adopted by central PRC governmental
authorities, which set out national production and development targets. The PRC
government has been pursuing economic reforms since it first adopted its
"open-door" policy in 1978. There is no assurance that the PRC government will
continue to pursue economic reforms or that there will not be any significant
change in its economic or other policies, particularly in the event of any
change in the political leadership of, or the political, economic or social
conditions in, the PRC. There is also no assurance that the Company will not be
adversely affected by any such change in governmental policies or any
unfavorable change in the political, economic or social conditions, the laws or
regulations, or the rate or method of taxation in the PRC.

                                       13
<PAGE>

As many of the economic reforms that have been or are being implemented by the
PRC government are unprecedented or experimental, they may be subject to
adjustment or refinement, which may have adverse effects on the Company.
Further, through state plans and other economic and fiscal measures such as the
leverage of exchange rate, it remains possible for the PRC government to exert
significant influence on the PRC economy. The Company's financial instruments
that are exposed to concentration of credit risk consist primarily of cash and
cash equivalents. Cash and cash equivalents are maintained with government-owned
banks in the PRC with high credit ratings.

On January 1, 1994, the PRC government introduced a single rate of exchange of
Renminbi ("Rmb") against United States Dollar ("US$") as quoted daily by the
People's Bank of China (the "Unified Exchange Rate"). On July 21, 2006, Rmb was
revalued from Rmb 8.28 to Rmb8.11 for US$1 following the removal of the peg to
the US dollar and pressure for the United States. The Peoples Bank of China also
announced that the Renminbi would be pegged to a basket of foreign currencies,
rather then being strictly tied to the US dollar and would trade within a narrow
0.3% band against this basket of currencies, which is dominated by the US
dollar, Euro, Japanese Yen and South Korean Won, with a smaller proportion made
up of the British pound, Thai Baht and Russian Ruble. No representation is made
that the Rmb amounts have been, or could be, converted into US$ at that rate.
This quotation of exchange rates does not imply free convertibility of Rmb to
other foreign currencies. All foreign exchange transactions continue to take
place either through the Bank of China or other banks authorized to buy and sell
foreign currencies at the exchange rate quoted by the People's Bank of China.
Approval of foreign currency payments by the People's Bank of China or other
institutions requires submitting a payment application form together with
suppliers' invoices, shipping documents and signed contracts.

Restriction on the Payment of Dividends - PRC law requires net profits after
taxes to be used to set-off any losses carried forward before any distribution
of profits may be made. Furthermore, PRC law imposes a Mandatory Provident
Reserve on all businesses. Under this law, a business must set aside 10% of its
distributable profits as a mandatory reserve before a distribution of profits
may occur. Once the business accumulates a mandatory reserve equal to 50% of its
capitalization, no further accumulation of the reserve is required.

Certain Factors Affecting Future Operating Results

The Company's 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. Some of these factors include:

     o    the Company's ability to successfully implement its current business
          plans;
     o    whether the Company will be able to obtain additional capital, if
          necessary, to support its operations;
     o    whether the Company will be able to find joint venture prospects or
          acquisition prospects with which to enhance its o business;
     o    whether the Company can successfully integrate acquisitions that it
          makes into its business;
     o    the level and rate of acceptance of the Company's products and
          services by consumers in China;
     o    continued economic growth in China;
     o    entry of new competition (including established companies from outside
          China and companies with substantially greater o resources) into the
          Company's market;
     o    fluctuations in the level of demand for services or products;
     o    rescheduling or cancellation of orders by customers;
     o    competitive pressures on selling prices;
     o    rapid changes in technology, which could result in the Company's
          technology becoming obsolete;

                                       14
<PAGE>

     o    dependence upon key employees;
     o    availability and cost of computer technicians;
     o    loss of any of the Company's major customers;
     o    the Company's ability to introduce new products and services on a
          timely basis;
     o    new product and service introductions by the Company's competitors;
     o    fluctuations in exchange rates; and
     o    adverse changes in the general economic, social or political
          conditions in the PRC.

Critical Accounting Policies

The Company prepares its consolidated financial statements in accordance with
accounting principles generally accepted in the United States of America. The
preparation of these financial statements requires the use of estimates and
assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amount of revenues and expenses during the reporting
period. Management periodically evaluates the estimates and judgments made.
Management bases its estimates and judgments on historical experience and on
various factors that are believed to be reasonable under the circumstances.
Actual results may differ from these estimates as a result of different
assumptions or conditions.

The following critical accounting policies affect the more significant judgments
and estimates used in the preparation of the Company's consolidated financial
statements.

Revenue Recognition

The Company recognizes revenue in accordance with SEC Staff Accounting Bulletin
No. 101, "Revenue Recognition in Financial Statements". The Company recognizes
revenue when the significant risks and rewards of ownership have been
transferred to the customer pursuant to PRC law, including factors such as when
persuasive evidence of an arrangement exists, delivery has occurred, the sales
price is fixed or determinable, sales and value-added tax laws have been
complied with, and collectibility is probable.

Accounts Receivable

The Company typically extends credit to its customers. In order to determine the
value of the Company's accounts receivable, the Company records a provision for
doubtful accounts to cover estimated credit losses. Management reviews and
adjusts this allowance periodically based on historical experience and its
evaluation of the collectibility of outstanding accounts receivable. The Company
evaluates the credit risk of its customers by analyzing its aged accounts
receivable, utilizing historical data, the customer's financial condition,
general economic conditions and estimates of future performance.

Long-Lived Assets and Goodwill

The Company periodically evaluates the carrying value of long-lived assets held
or used whenever events and circumstances indicate that the carrying value of
the asset may no longer be recoverable. An impairment loss, measured on the fair
value of the asset, is recognized if expected future undiscounted cash flows are
less than the carrying value of the assets.

The Company evaluates the carrying value of investments in associated companies,
at a minimum, on an annual basis and whenever events and circumstances indicate
that the carrying value of the asset may no longer be recoverable. Impairment
loss, measured on the fair value of the asset, is recognized if expected future
undiscounted cash flows are less than the carrying value of the assets.

                                       15
<PAGE>

The Company evaluates goodwill, at a minimum, on an annual basis and whenever
events and changes in circumstances suggest that the carrying amount may not be
recoverable in accordance with SFAS No. 142 "Goodwill and Other Intangible
Assets." Impairment of goodwill is tested at the reporting unit level by
comparing the reporting unit's carrying amount, including goodwill, to the fair
value of the reporting unit. The fair values of the reporting units are
estimated using discounted cash flows approach. If the carrying amount of the
reporting unit exceeds its fair value, goodwill is considered impaired and a
second step is performed to measure the amount of impairment loss, if any.

Income Taxes

The Company records a valuation allowance to reduce its deferred tax assets
derived from operating loss of certain subsidiaries in the PRC to the amount
that is more likely than not to be realized. In the event the Company was to
determine that it would be able to realize its deferred tax assets in the future
in excess of its recorded amount, an adjustment to the deferred tax assets would
be credited to operations in the period such determination was made. Likewise,
should the Company determine that it would not be able to realize all or part of
its deferred tax assets in the future, an adjustment to the deferred tax assets
would be charged to operations in the period such determination was made.
Currently, the Company is evaluating the impact of implementation of FIN 48
"Accounting for Uncertainty in Income Taxes - an Interpretation of FASB
Statement No. 109."

Results of Operations - Three Months Ended March 31, 2007 and 2006

All amounts shown below are presented in US$. As used below, the letter "K"
appearing immediately after a dollar amount denotes that it has been rounded to
the nearest $1,000.

Net Revenues

Net revenues for the three months ended March 31, 2007 consisted primarily of
the sales of digital security imaging systems by the Company's subsidiary,
Shenzhen Golden Anke and the sale of VOIP call minutes by Leader Palace. The
balance of the Company's revenues was derived from ChinaE.com Tech, which
provide e-commerce solutions. The term "e-commerce solutions" includes web-site
design and development and web-hosting.

The following table reflects the total net revenues and percentage of net
revenues by major category for the periods indicated:

                                            Net Revenue         Net Revenue
                                        ----------------------------------------
                                          2006      2006      2007      2007
3 months ended March 31                  USD'000      %      USD'000      %

E-commerce solutions                           26         1%       23         3%
Sale of digital security imaging
 equipments                                 3,344        99%      350        48%
VOIP                                            0         0%      357        49%
Sale of photographic equipments                21         1%        0         0%
Consulting                                      0         0%        0         0%
                                        ----------------------------------------
                                            3,391       100%      730       100%
                                        ========================================


Total net revenues decreased by 78% to $730K during the three months ended March
31, 2007, as compared to $3,391K during the three months ended March 31, 2006.
The decrease in total net revenues was primarily due to the decrease in sales of
digital security imaging systems made through the Company's subsidiary, Shenzhen
Golden Anke. The main reason for the decrease in sales during the period is due
to the change of product scope of Shenzhen Golden Anke from sales of digital
security imaging system to residential surveillance system. This change led to
continuous decrease in sales amount. Revenues attributable to e-commerce
solutions remained fairly constant. For wholesales of VOIP minutes, the revenue
decreased by 19% over the prior quarter.

                                       16
<PAGE>

Approximately 48% of the Company's net revenues for the three months ended March
31, 2007 aggregating $350K were attributable to the sales of digital security
imaging systems made through Shenzhen Golden Anke. Approximately 49% of the
Company's net revenues for the three months ended March 31, 2007 aggregating
$357K were attributable to the sales of VOIP call minutes made through Leader
Palace.

The sale of the Company's products to a small number of customers may cause net
sales and operating results to fluctuate from quarter to quarter based on the
customers' requirements and the timing of their orders and shipments. The
Company does not have long-term sales contracts with its customers, although the
Company believes that its relationships with its customers are satisfactory. The
loss of any of the Company's significant customers, in particular the Jiuding
Group, would have a material adverse effect on the Company's business, results
of operations and financial condition. If the Company were unable to replace its
significant customers, either with other major customers or with a significant
increase in the orders placed by smaller customers, the Company could be forced
to severely curtail, or possibly even cease, its operations.

Cost of Revenues

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

                                          Cost of Revenue     Cost of Revenue
                                        ----------------------------------------
                                          2006      2006      2007      2007
3 months ended March 31                  USD'000      %      USD'000      %

Salaries of technicians / engineers            32         1%       30         4%
Sale of photographic equipments                20         1%        0         0%
Sale of digital security imaging
 equipments                                 2,721        98%      312        44%
Depreciation                                    3         0%        4         1%
VOIP                                            0         0%      340        49%
Others                                         14         0%       17         2%
                                        ----------------------------------------
                                            2,790       100%      703       100%
                                        ========================================


Cost of revenues decreased by 75% to $703K or 96% of net revenues for the three
months ended March 31, 2007, as compared to $2,790K or 83% of net revenues for
the three months ended March 31, 2006.

The principal components of cost of revenues during the three months ended March
31, 2007 were engineer and technician salaries, costs of digital security
imaging systems hardware, costs of purchase of VOIP call minutes , other costs
associated with engineering and technical staff support and depreciation of
equipment utilized in connection with the Company's operations.

The decrease in costs of revenues in 2007 as compared to 2006 was principally
attributable to the decrease in sales volume of the Company's digital security
imaging systems.

Selling, General and Administrative Expense

                                       17
<PAGE>

Selling, general and administrative ("SG&A") expense consists principally of
sales commissions, advertising, other marketing expenses, rental expenses,
salaries for administrative and sales staff, and corporate overhead.

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

                                           SG&A Expenses       SG&A Expenses
                                        ----------------------------------------
                                          2006      2006      2007      2007
3 months ended March 31                  USD'000      %      USD'000      %

Sales & Marketing salaries & commissions       24        12%       10         4%
Advertising & other sales & marketing
 expenses                                      18         9%        4         2%
Rentals                                        20        10%        8         4%
Administrative salaries                        48        23%        5         2%
Corporate overhead                             92        46%      197        88%
                                        ----------------------------------------
                                              202       100%      224       100%
                                        ========================================

For the three months ended March 31, 2007, SG&A expense increased by 11% to
$224K, as compared to $202K for the three months ended March 31, 2006.

The increase in SG&A expense in 2007 as compared to 2006 was principally
attributable to two factors - cost cutting measures implemented in the quarter
ended March 31, 2007 and certain cutoff errors in the recording of corporate
overhead in the quarter ended March 31, 2006. During the three months ended
March 31, 2007, the Company reduced its sales team as a result of management's
reassessment of the manpower required to generate sales and service to the
Company's customers and the Company also implemented a firm-wide cost-cutting
exercise.

Income Taxes

Income taxes for the three months ended March 31, 2007 were $4K and $92K for the
three months ended March 31, 2006. The drop is due to the decrease in sales of
the company's digital security imaging systems during the period.

Other Items

Minority interests reflect the minority shareholders' proportionate interests in
the net income of the Company's non-wholly-owned subsidiaries. The balance is
mainly derived from Shenzhen Golden Anke.

Equity in losses of an associated company represents the Company's proportionate
share of the loss of Hainan Property Right Exchange Centre.

Net Income (Loss)

The Company had net loss of $82K during the three months ended March 31, 2007,
as compared to a net income of $ 387K during the three months ended March 31,
2006. During the quarters ended March 31, 2007 & 2006, a dividend income of
$106K and $ 327K was received from an associated company called Shenzhen
International Hi-Tech Property right Exchange Centre and a former associated
company called Shanghai Fortune respectively.

                                       18
<PAGE>

Results of Operations - Nine Months Ended March 31, 2007 and 2006

All amounts shown below are presented in US$. As used below, the letter "K"
appearing immediately after a dollar amount denotes that it has been rounded to
the nearest $1,000.

Net Revenues

Net revenues for the nine months ended March 31, 2007 consisted primarily of the
sales of digital security imaging systems by the Company's subsidiary, Shenzhen
Golden Anke and the sale of VOIP call minutes by Leader Palace. The balance of
the Company's revenues was derived from ChinaE.com Tech, which provides
e-commerce solutions. Net revenues for the three months ended March 31, 2006
consisted primarily of the sales of photographic equipment, sales of digital
security imaging systems and e-commerce solutions. The term "e-commerce
solutions" includes web-site design and development and web-hosting.

                                            Net Revenue         Net Revenue
                                        ----------------------------------------
                                          2006      2006      2007      2007
9 months ended March 31                  USD'000      %      USD'000      %

E-commerce solutions                          148         1%       69         4%
Sale of digital security imaging
 equipments                                10,412        98%      836        49%
VOIP                                            0         0%      815        47%
Sale of photographic equipments                78         1%        2         0%
Consulting                                      1         0%        0         0%
                                        ----------------------------------------
                                           10,639       100%    1,722       100%
                                        ========================================


Total net revenues decreased by 84% to $1,722K during the nine months ended
March 31, 2007, as compared to $10,639K during the nine months ended March 31,
2006. The decrease in total net revenues was primarily due to the decrease in
sales of digital security imaging systems made through the Company's subsidiary,
Shenzhen Golden Anke. The main reason for the decrease in sales during the
period is due to the change of product scope of Shenzhen Golden Anke from sales
of digital security imaging system to residential surveillance system. This
change led to a continuous decrease in sales. Revenues attributable to
e-commerce solutions were also decreasing. The wholesales of VOIP minutes is a
new business line that started in the quarter ended December 31, 2006 and there
is, therefore, no comparative figure. The revenues were derived from two
customers. The management anticipates that the revenue for the coming quarter
will remain fairly constant.

Cost of Revenues

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



-0-
*T
                                          Cost of Revenue     Cost of Revenue
                                        ----------------------------------------
                                          2006      2006      2007      2007
9 months ended March 31                  USD'000      %      USD'000      %

Salaries of technicians / engineers            76         1%       94         6%
Sale of photographic equipments                72         1%        2         0%
Sale of digital imaging equipments          7,832        98%      724        44%
Depreciation                                    4         0%       13         1%
VOIP                                            0         0%      788        48%
Others                                         41         0%       38         1%
                                        ----------------------------------------
                                            8,025       100%    1,659       100%
                                        ========================================

                                       19
<PAGE>

Cost of revenues decreased by 79% to $1,659K or 96% of net revenues for the nine
months ended March 31, 2007, as compared to $8,025K or 75% of net revenues for
the nine months ended March 31, 2006.

The principal components of cost of revenues during the three months ended March
31, 2007 were engineer and technician salaries, costs of digital security
imaging systems hardware, costs of purchase of VOIP call minutes, other costs
associated with engineering and technical staff support and depreciation of
equipment utilized in connection with the Company's operations.

The decrease in costs of revenues in 2007 as compared to 2006 was principally
attributable to the decrease in sales volume of the Company's digital security
imaging systems.

Selling, General and Administrative Expense

Selling, general and administrative ("SG&A") expense consists principally of
sales commissions, advertising, other marketing expense, rental expense,
salaries for administrative and sales staff, and corporate overhead.

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

                                           SG&A Expenses       SG&A Expenses
                                        ----------------------------------------
                                          2006      2006      2007      2007
9 months ended March 31                  USD'000      %      USD'000      %

Sales & Marketing salaries & commissions       76         8%       38         5%
Advertising & other sales & marketing
 expenses                                      70         7%       15         2%
Rentals                                        52         5%       51         6%
Administrative salaries                       117        11%       97        12%
Corporate overhead                            650        67%      615        75%
                                        ----------------------------------------
                                              965       100%      816       100%
                                        ========================================


For the nine months ended March 31, 2007, SG&A expense decreased by 15% to
$816K, as compared to $965K for the nine months ended March 31, 2006.

The decrease in SG&A expense in 2007 as compared to 2006 was principally
attributable to the firm-wide cost cutting implementation over the past few
months, including reduction of headcount of the general staff, a more stringent
process of selection of various service-providers and reduction in the
remunerations to certain members of top management.

Income Taxes

Income taxes for the nine months ended March 31, 2007 were $12K and $385K for
the nine months ended March 31, 2006. The drop is due to the decrease in sales
of the company's digital security imaging systems during the period.

Other Items

Minority interests reflect the minority shareholders' proportionate interests in
the net income of the non-wholly-owned subsidiaries' results. The balance is
mainly derived from Shenzhen Golden Anke.

Equity in losses of an associated company represents the Company's proportionate
share of the loss of Hainan Property Right Exchange Centre.

                                       20
<PAGE>

Net Income (Loss)

The Company had net loss of $1,033K during the nine months ended March 31, 2007,
as compared to a net income of $ 569K during the nine months ended March 31,
2006. The loss was due to the impairment of goodwill of the subsidiary Shenzhen
Golden Anke of $932K, loss of business of Shenzhen Golden Anke. In addition,
there was a dividend of $106K received from the associated company called
Shenzhen International Hi-Tech Property Right Exchange Centre.

Liquidity and Capital Resources -March 31, 2007

At March 31, 2007, the Company had cash and cash equivalents of $ 717K and
working capital of $12,491K, as compared to $789K of cash and cash equivalents
and $14,024K of working capital at March 31, 2006.

Net cash used in operating activities was $534K for the nine months ended March
31, 2007, as compared to net cash used in operating activities of $677K for the
nine months ended March 31, 2006. The decrease in net cash provided by operating
activities in 2007 as compared to 2006 is reflected in the increase in customer
deposits.

Net cash used in investing activities was $1,373K for the nine months ended
March 31, 2007, consisting of $1,500K of increase in security bond deposit and
$25K for the purchase of plant and equipment, offset by repayment of a short
term loan of $152K. Net cash used in investing activities were $1,028K for the
nine months ended March 31, 2006.

Net cash provided by financing activities was $2,398K from net proceeds from the
issuance of new common stock and a one-year loan from a related company for the
nine months ended March 31, 2007. The lender is considered related by way of
common ownership. Net cash provided by financing activities was $2,498K derived
from new issue of common stock during the nine months ended March 31, 2006.

The Company has been able to meet its cash requirements by using revenues from
the sales of the Company's products, by implementing a stringent cost savings
program, and by using funds provided by the private offering of the Company's
common stock. The Company has also conserved cash by issuing common stock in
exchange for services. The Company's web design projects, sales of digital
security imaging systems through Shenzhen Golden Anke, and sales of call minutes
from the newly set up telecom division may provide revenues during the remainder
of the fiscal year sufficient to sustain our operations, although there can be
no assurances that such revenues will be sufficient to meet the Company's
operating cash flow requirements. If the Company's revenues are insufficient to
sustain the Company's operations and the Company is unable to borrow money or
raise funds by selling securities, the Company may be required to severely
curtail, or possibly even cease, its operations. The Company has no commitments
for funding and there can be no assurances that funding will be available to the
Company in the future on acceptable terms, or at all.

The Company continues to evaluate various opportunities to improve the operating
performance of the Company's businesses and to invest in or acquire other types
of businesses.

Principal Commitments

At March 31, 2007, the Company does not have any material commitments for
operating leases or capital expenditures, or have any transactions, obligations
or relationships that could be considered off-balance sheet arrangements. The
Company has no long-term debt at March 31, 2007.

Off-Balance Sheet Arrangements

The Company does not have any transactions, obligations or relationships that
could be considered off-balance sheet arrangements at March 31, 2007.

ITEM 3.  CONTROLS AND PROCEDURES

(a)  Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure that information
required to be disclosed in the reports filed or submitted under the Exchange
Act of 1934 is recorded, processed, summarized and reported, within the time
periods specified in the rules and forms of the Securities and Exchange
Commission. Disclosure controls and procedures include, without limitation,
controls and procedures designed to ensure that information required to be
disclosed in the reports filed under the Exchange Act of 1934 is accumulated and
communicated to management, including its principal executive and financial
officers, as appropriate, to allow timely decisions regarding required
disclosure.

                                       21
<PAGE>

The Company carried out an evaluation, under the supervision and with the
participation of the Company's management, including its principal executive and
financial officer, of the effectiveness of the design and operation of the
Company's disclosure controls and procedures as of the end of the period covered
by this report. Based upon and as of the date of that evaluation, the Company's
principal executive and financial officer concluded that the Company's
disclosure controls and procedures are effective to ensure that information
required to be disclosed in the reports the Company files and submits under the
Exchange Act of 1934 is recorded, processed, summarized and reported within the
time periods specified in the Securities and Exchange Commission's rules and
forms.

(b)  Changes in Internal Controls

There were no changes in the Company's internal controls or in other factors
that could have significantly affected those controls subsequent to the date of
the Company's most recent evaluation.

                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.

(1) Hainan Concord Financial Products Co., Ltd.

On December 11, 2004, the Company's wholly subsidiary, IMOT Information
Technology (Shenzhen) Ltd. ("IMOT Technology") entered into a stock exchange
agreement and a profit guarantee agreement (respectively, the "Stock Swap
Agreement" & "Profit Guarantee Agreement") with Guangzhou Di Tai Communication
Co. Ltd & Mr. Zai (collectively "Sellers"). The Stock Swap Agreement called for
the Company to ultimately issue 5,000,000 shares of common stock in January 2005
in exchange for 80% of the issued and outstanding capital of Hainan Financial
Products Development Co., Ltd ("Hainan Financial Products"). Under the Profit
Guarantee Agreement, the Sellers guaranteed that the net profit after taxation
of Hainan Financial Products for the year ended December 31, 2005 would not be
less than Rmb 5,000,000. On February 7, 2005, the Sellers received the share
certificates of the 3,000,000 common stocks of the Company from IMOT Technology.
In late 2006, IMOT Technology discovered that the profit requirement of Rmb
5,000,000 of Hainan Financial Products had not met and Hainan Financial Products
was a shelf company without any registered capital.

In accordance with the terms of Stock Swap Agreement, any dispute in a deadlock
situation should be referred to an Arbitration tribunal in Shenzhen to be
resolved. As such, IMOT Technology and the Company decided to refer the dispute
("the Dispute") and apply to China International Economic and Trade Arbitration
Commission, South China Sub-Commission in Shenzhen ("Arbitration Commission").
On December 20, 2006, Arbitration Commission approved the application. Under the
application, IMOT Technology and the Company were named as joint applicants
("the Applicants"); and the Sellers together with Hainan Special Economic Zone
Property Rights Exchange Centre and a securities-broker in Hainan province as
respondents ("the Respondents"). The three orders sought under this arbitration
include rescission of Share Swap Agreement and Profit Guarantee Agreement;
return of 3,000,000 shares of common stock of the Company by the Sellers to the
Applicants; and to have all the legal costs and other costs incurred in this
arbitration to be reimbursed or borne by the Sellers. The share certificate of
the remaining 2,000,000 shares common stock is currently under the custody of
IMOT Technology.

The Respondents at the same time also applied to a court in Haikou of the Hainan
province to request that the Dispute be handled by the court. On April 29, 2007,
this court ruled that the Dispute could be subject to its jurisdiction. In
response to this ruling, IMOT Technology is currently seeking legal advice for
the appeal.

(2) Hainan Special Economic Zone Property Rights Exchange Centre

Pursuant to an agreement (" the Agreement") signed with a third party on
December 16, 2003, IMOT Information Technology (Shenzhen) Ltd. ("IMOT
Technology") acquired 21% of the issued and outstanding capital of Hainan
Special Economic Zone Property Rights Exchange Centre ("Hainan Exchange").

                                       22
<PAGE>

In 2006, Hainan Exchange rejected the request of IMOT Technology to hold a
general meeting for its shareholders, and Hainan Exchange also declined to
provide any current financial information or reports. In addition, Hainan
refused to fulfill certain obligations under the Co-operative Agreement. The
Company is currently seeking legal advice as to those matters. The Company
believes that Hainan Exchange has contravened its Articles of Association, and
IMOT Technology has the right to sue under the current legislation.

(3) Shanghai Newray Photographic Equipment Co. Ltd

In prior years, IMOT Information Technology (Shenzhen) Ltd. ("IMOT Technology")
acquired 51% of the issued and outstanding capital of Shanghai Newray
Photographic Equipment Co. Ltd ("Shanghai Newray") from Mr. Tang who in turn
acts as the trustee of IMOT Technology. On September 30, 2006, the shareholders
in a special meeting passed a resolution ("the Resolution") to take action to
terminate the operation of Shanghai Newray. On November 2, 2006, Shanghai Newray
set up a liquidation working team to take over the operations with one of its
duties being to commence all the necessary procedures for the members' voluntary
liquidation.

Mr. Zhu, as the legal representative, the manager and the executive director of
Shanghai Newray, refused to comply with all the requests of the liquidation
working team, resulting in delay of the liquidation procedures. On January 18,
2007, Mr. Tang took civil action under the Companies Law against Mr. Zhu. Under
this action, Mr. Zhu Wei was requested to comply with the Resolution passed on
September 30, 2006 to reimburse legal and other related costs of Rmb 30,000
incurred by Mr. Tang for this case, and also to bear all the court costs to be
incurred.

On January 24, 2007, Shanghai Hongkou District Court accepted the case. As of
today, the procedure for the exchange of evidence between the plaintiff and the
defendant has completed.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

      Not applicable.

Item 3.  Defaults Upon Senior Securities.

      Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders.

      Not applicable.

Item 5.  Other Information.

On May 15, 2007, we dismissed E. Randall Gruber, CPA, PC ("Gruber") as the
Company's independent accountant. The decision to change accountants was
recommended and approved by the board of directors of the registrant.

Gruber's audit report on the financial statements of the Company as of and for
the two most recent years in the period ended June 30, 2006 contained no adverse
opinion or disclaimer of opinion and was not qualified or modified as to
uncertainty, audit scope, or accounting principles.

During our two most recent fiscal years and any subsequent interim period
preceding the dismissal of Gruber, there were no disagreements with Gruber on
any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreement(s) if not
resolved to the satisfaction of Gruber, would have caused Gruber to make
reference to the subject matter of the disagreement(s) in connection with its
report.

During our two most recent fiscal years and any subsequent interim period
preceding the dismissal of Gruber, there have been no reportable events of the
type required to be disclosed by Item 304(a)(1)(v) of Regulation S-K.

The Company has provided Gruber with a copy of the disclosures it is making in
response to Item 304(a) of Regulation S-K. The Company has requested that Gruber
review the disclosure and furnish the Company with a letter addressed to the
Commission stating whether it agrees with the statements made by the Company in
response to Item 304(a) of Regulation S-K and, if not, stating the respects in
which it does not agree. Such letter will be filed by amendment as an exhibit to
this Report upon receipt of the same.

                                       23
<PAGE>

On May 15, 2007, the Company engaged Samuel H. Wong & Company, LLP ("Wong") as
its new independent accountant. Prior to the engagement, and for the preceding
two most recent fiscal years and any subsequent interim period prior to the
engagement, the registrant did not consult with Wong regarding either: the
application of accounting principles to any specified transaction, either
completed or proposed; or the type of audit opinion that might be rendered on
the registrant's financial statements, and where either a written report was
provided to the registrant or oral advice was provided that the new accountant
concluded was an important factor considered by the registrant in reaching a
decision as to the accounting, auditing or financial reporting issue; or any
matter that was either the subject of a disagreement (as defined in paragraph
(a)(1)(iv) and the related instructions of item 304 of Regulation S-K) or a
reportable event (as described in paragraph (a)(1)(v) of item 304 of Regulation
S-K).

Item 6.  Exhibits
<TABLE>
<CAPTION>
<S>      <C>                                              <C> <C>                                              <C>
    Exhibit Number      Description of Exhibit
    --------------      ----------------------
         2.1            Articles of Merger (1)
         3.1            Articles of Incorporation (1)
         3.2            Bylaws (1)
         10.1           Employment Agreement, dated March 12, 2004, between Intermost Corporation and Andy Lin (2)
         10.3           Cooperative Agreement re: formation of Jiayin E-Commerce joint venture (1)
         10.4           Agreement Regarding Transfer of Properties on 38th Floor, Guomao Building (3)
         10.5           Shareholding Transfer Agreement dated May 23, 2003 between IMOT Information Technology
                        (Shenzhen) Ltd. and Shanghai Newray Business Development Co., Ltd. (4)
         10.6           Share Transfer Agreement among IMOT Information Technology (Shenzhen)  Ltd., Shenzhen
                        Golden Anke Technology Co. Ltd., Intermost Corporation, Tu Guoshen and Li Zhiquan (5)
         10.7           Sale and Purchase Agreement among IMOT Information Technology (Shenzhen)  Ltd., Shanghai
                        Fortune Venture Limited, North Shanghai Branch of Shanghai Technology Property Right
                        Exchange Center and Intermost Corporation (6)
         10.8           Distributorship Agreement dated November 28, 2002 between KanHan Technologies Limited
                        and ChinaE.com Information Technology Ltd. (7)
         10.9           Intermost Corporation 2003 Equity Incentive Plan (8)
         10.10          Share Transfer Agreement dated March 31, 2004 between IMOT Information Technology
                        (Shenzhen) Ltd. and Tu Guoshen and Li Zhiquan for the acquisition of 51% of the Golden
                        Anke Technology, Ltd. (9)
         10.11          Share Transfer Agreement dated December 8, 2004 between IMOT Information Technology
                        (Shenzhen) Ltd. and Shenzhen Merchant Technology Investment Co., Ltd. for the acquisition
                        of 15% of Shenzhen International Hi-Tech Exchange (9)
         10.12          Share Exchange Agreement dated December 11, 2004 between IMOT Information Technology
                        (Shenzhen) Ltd. and Guangzhou Digital Communication Co., Ltd. and Zhai Xiya for the
                        acquisition of 80% of Hainan Concord Financial Products Development Co. Ltd. (9)
         16.1           Letter re: Change in Certifying Accountants *
         31.1           Certification of the Chief Executive Officer required by Rule 13a-14(a) of the
                        Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the
                        Sarbanes-Oxley Act of 2002. *
         31.2           Certification of the Chief Financial Officer required by Rule 13a-14(a) of the
                        Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the
                        Sarbanes-Oxley Act of 2002.*
         32.1           Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as
                        adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *32.2
         32.2           Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as
                        adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *

*Filed herewith.

(1)      Incorporated by reference to the respective exhibits filed with Registrant's Registration Statement
         on Form 10-SB (Commission File No. 0-30430).
(2)      Incorporated by reference to the exhibit filed with the Registrant's Current Report on Form 8-K filed
         with the SEC on March 25, 2004.
</TABLE>

                                       24
<PAGE>
<TABLE>
<CAPTION>
<S>      <C>                                              <C> <C>                                              <C>
(3)      Incorporated by reference to the respective exhibits filed with the Registrant's Quarterly Report on
         Form 10-QSB for the quarter ended March 31, 2000.
(4)      Incorporated by reference to the exhibit filed with the Registrant's Current Report on Form 8-K filed
         with the SEC on June 9, 2003.
(5)      Incorporated by reference to the exhibit filed with the Registrant's Current Report on Form 8-K filed
         with the SEC on August 17, 2004.
(6)      Incorporated by reference to the exhibit filed with the Registrant's Current Report on Form 8-K filed
         with the SEC on April 26, 2004.
(7)      Incorporated by reference to the exhibit filed with the Registrant's Quarterly Report on Form 10-QSB
         for the quarter ended December 31, 2002 filed with the SEC on February 14, 2003.
(8)      Incorporated by reference to the Registrant's Proxy Statement filed with the SEC on January 6, 2004.
(9)      Incorporated by reference to the Exhibit filed with Form 10-KSB, amendment No. 1 for the year ended
         June 30, 2005.
</TABLE>

                                  RISK FACTORS

In addition to other information in this Form 10-QSB, including many risks
presented in our Management's Discussion and Analysis, the following risk
factors should be carefully considered in evaluating our business since it
operates in a highly changing and complex business environment that involves
numerous risks, some of which are beyond our control. The following discussion
highlights a few of these risk factors, any one of which may have a significant
adverse impact on our business, operating results and financial condition. As a
result of the risk factors set forth below and elsewhere in this 10-QSB, and the
risks discussed in our other Securities and Exchange Commission filings, actual
results could differ materially from those projected in any forward-looking
statements.

We face significant risks, and the risks described below may not be the only
risks we face. Additional risks that we do not know of or that we currently
consider immaterial may also impair our business operations. If any of the
events or circumstances described in the following risks actually occurs, our
business, financial condition or results of operations could be harmed and the
trading price of our common stock could decline.

If we deliver products with defects, our credibility will be harmed and the
sales and market acceptance of our products will decrease.

Our product and services are complex and may at times contained errors, defects
and bugs. If we deliver products with errors, defects or bugs, our credibility
and the market acceptance and sales of our products would be harmed. Further, if
our products contain errors, defects or bugs, we may be required to expend
significant capital and resources to alleviate such problems. We may agree to
indemnify our customers in some circumstances against liability arising from
defects in our products. Defects could also lead to product liability as a
result of product liability lawsuits against us or against our customers. We
carry product and information liability and errors and omissions insurance, but
in the event that we are required to defend more than a few such actions, or in
the event that we are found liable in connection with such an action, our
business and operations may be severely and materially adversely affected.

We compete with large companies.

We operate in a highly competitive industry. Although we believe that some of
our technology is unique, can be protected, and, if adopted, will confer
benefits that will be otherwise unavailable for some time, we face very large
competitors with greater resources who may adopt various strategies to block or
slow our market penetration, thereby straining our more limited resources. We
are aware of efforts by competitors to introduce doubt about our financial
stability as we compete to make sales and win customers and business. Large
competitors may also seek to hinder our operations through attempts to recruit
key staff with exceptionally attractive terms of employment, including signing
bonuses, or by offer of highly competitive terms to potential or newly acquired
customers.

We will need to continue our product development efforts.

                                       25
<PAGE>

We believe that our market will be characterized by increasing technical
sophistication. We also believe that our eventual success will depend on our
ability to continue to provide increased and specialized technical expertise.
There is no assurance that we will not fall technologically behind competitors
with greater resources. Although we believe that we enjoy a lead in our product
development, and are hopeful that our patents provide some protection, we will
likely need significant additional capital in order to continue to enjoy such a
technological lead over competitors with more resources.

If we are unable to protect our intellectual property, our competitive position
would be adversely affected.

We may rely on patent protection, as well as trademark and copyright law, trade
secret protection and confidentiality agreements with our employees and others
to protect our intellectual property. Despite our precaution, unauthorized third
parties may copy our products and services or reverse engineer or obtain and use
information that we regard as proprietary. We have filed eleven patent
applications with the United States Patent and Trademark Office and intend to
file more. Six patents have been granted; however, we do not know if the
remaining applications will be granted or whether we will be successful in
prosecuting any future patents. In addition, the laws of some foreign countries
do not protect proprietary rights to the same extent, as do the laws of the
United States. Our means of protecting our proprietary rights may not be
adequate and third parties may infringe or misappropriate our patents,
copyrights, trademarks and similar proprietary rights. If we fail to protect our
intellectual property and proprietary rights, our business, financial condition
and results of operations would suffer. We believe that we do not infringe upon
the proprietary rights of any third party, and no third party has asserted an
infringement claim against us. It is possible, however, that such a claim might
be asserted successfully against us in the future. We may be forced to suspend
our operations to pay significant amounts to defend our rights, and a
substantial amount of the attention of our management may be diverted from our
ongoing business, all of which would materially adversely affect our business.

We focus on the research and development of our proprietary technologies and the
marketing of our first product.

We believe that these technologies are the basis for marketable commercial
products. However, there can be no assurance of this, and it is possible that
our proprietary technologies and products will have no commercial benefit or
potential. In addition, from our inception to the present, we have not
recognized any substantial operating revenues.

We depend on our key personnel and may have difficulty attracting and retaining
the skilled staff we need to execute our growth plans.

Our success will be dependent largely upon the efforts of our management team.
The loss of key staff could have a material adverse effect on our business and
prospects. To execute our plans, we will have to retain current employees.
Competition for highly skilled employees with technical, management, marketing,
sales, product development and other specialized training is intense. We may not
be successful in retaining such qualified personnel. Specifically, we may
experience increased costs in order to retain skilled employees. If we are
unable to retain experienced employees as needed, we would be unable to execute
our business plan.

We may face rapid technological change.

The market for our products and services may be characterized by rapidly
changing technologies, extensive research and the introduction of new products
and services. We believe that our future success will depend in part upon our
ability to continue to enhance our existing products and to develop, manufacture
and market new products and services. As a result, we expect to continue to make
a significant investment in engineering, research and development. There can be
no assurance that we will be able to develop and introduce new products and
services or enhance our initial products in a timely manner to satisfy customer
needs, achieve market acceptance or address technological changes in our target
markets. Failure to develop products and services and introduce them
successfully and in a timely manner could adversely affect our competitive
position, financial condition and results of operations.

If we experience rapid growth, we will need to manage such growth well.

We may experience substantial growth in the size of our staff and the scope of
our operations, resulting in increased responsibilities for management. To
manage this possible growth effectively, we will need to continue to improve our
operational, financial and management information systems, will possibly need to
create entire departments that do not now exist, and hire, train, motivate and
manage a growing number of staff. Due to a competitive employment environment
for qualified technical, marketing and sales personnel, we expect to experience
difficulty in filling our needs for qualified personnel. There can be no
assurance that we will be able to effectively achieve or manage any future
growth, and our failure to do so could delay product development cycles and
market penetration or otherwise have a material adverse effect on our financial
condition and results of operations.

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<PAGE>

We could face information and product liability risks and may not have adequate
insurance.

Our products may be used in connection with critical business applications. We
may become the subject of litigation alleging that one or more of our products
are ineffective or disruptive in our treatment of data, or with regard to
critical business information. Thus, we may become the target of lawsuits from
injured or disgruntled businesses or other users. In the event that we are
required to defend more than a few such actions, or in the event that it is
found liable in connection with such an action, our business and operations may
be severely and materially adversely affected.

Future profitability is not guaranteed.

We have not recognized any substantial operating revenues to date. Assuming we
can attract sufficient financing, and revenues increase, there is no assurance
that our plans will be realized or that we will achieve break-even status or
profitability in the future.

Changes to financial accounting standards may affect our results of operations
and cause us to change business practices.

We prepare financial statements in conformity with U.S. generally accepted
accounting principles. These accounting principles are subject to interpretation
by the American Institute of Certified Public Accountants, the Public Company
Accounting Oversight Board, the SEC and various other bodies formed to interpret
and create appropriate accounting principles. A change in those principles can
have a significant effect on our reported results and may affect our reporting
of transactions completed before a change is announced. Changes to those rules
or the questioning of current practices may adversely affect our reported
financial results or the way we conducts business. For example, accounting
principles affecting many aspects of our business, including rules relating to
equity-related compensation, have recently been revised. The Financial
Accounting Standards Board and other agencies finalized changes to U.S.
generally accepted accounting principles that required us, starting January 1,
2006, to record a charge to earnings for employee stock option grants and other
equity incentives. We will have significant ongoing accounting charges resulting
from option grant and other equity incentive expensing that could reduce net
income or increase losses. In addition, since we historically used
equity-related compensation as a component of our total employee compensation
program, the accounting change could make the use of equity-related compensation
less attractive and therefore make it more difficult to attract and retain
employees.

There is a limited market for our common stock.

Our common stock is not listed on any exchange and trades in the
over-the-counter (the "OTC") market. Additionally, one stockholder holds a
majority of our stock. As such, the market for our common stock is limited and
is not regulated by the rules and regulations of any exchange. Further, the
price of our common stock and its volume in the OTC market may be subject to
wide fluctuations. Our stock price could decline regardless of our actual
operating performance, and stockholders could lose a substantial part of their
investment as a result of industry or market-based fluctuations. Our stock
trades relatively thinly. If a more active public market for our stock is not
sustained, it may be difficult for stockholders to sell shares of our common
stock. Because we do not anticipate paying cash dividends on our common stock
for the foreseeable future, stockholders will not be able to receive a return on
their shares unless they are able to sell them. The market price of our common
stock will likely fluctuate in response to a number of factors, including but
not limited to, the following:

     o    sales, sales cycle and market acceptance or rejection of our product;
     o    economic conditions within our industry;
     o    our failure to meet performance estimates or the performance estimates
          of securities analysts;
     o    the timing of announcements by us or our competitors of significant
          products, contracts or acquisitions or publicity regarding actual or
          potential results or performance thereof; and
     o    domestic and international economic, business and political
          conditions.

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<PAGE>

Failure to maintain effective internal controls in accordance with Section 404
of the Sarbanes-Oxley Act of 2002 could have a material adverse effect on our
stock price.

Section 404 of the Sarbanes-Oxley Act of 2002 and the related rules and
regulations of the SEC require annual management assessments of the
effectiveness of our internal control over financial reporting and a report by
our independent registered public accounting firm attesting to and reporting on
these assessments. If we fail to adequately maintain compliance with, or
maintain the adequacy of, our internal control over financial reporting, as such
standards are modified, supplemented or amended from time to time, we may not be
able to ensure that we can conclude on an ongoing basis that we have effective
internal control over financial reporting in accordance with Section 404 of the
Sarbanes-Oxley Act of 2002 and the related rules and regulations of the SEC. If
we cannot favorably assess, or our independent registered public accounting firm
is unable to provide an unqualified attestation report on our assessment of the
effectiveness of our internal control over financial reporting, investor
confidence in the reliability of our financial reports may be adversely
affected, which could have a material adverse effect on our stock price.

                                   SIGNATURES

In accordance with Section 13 or 15(d) the Securities Exchange Act of 1934, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

Date: May 21, 2007

                                        INTERMOST CORPORATION


                                        By: /s/DENG XIANG XIONG
                                            Deng Xiang Xiong
                                            Acting Chief Executive Officer


                                        By: /s/ CHEN SYH KWAN
                                            Chen Syh Kwan
                                            Chief Financial Officer



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