SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

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

                  For the quarterly period ended March 31, 2001

                                       OR

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

              For the transition period from__________to__________.

                           Commission File No. 0-30430


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


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


                  43rd Floor, Shenfang Plaza, Renmin South Road
                             Shenzhen, China 518005
                  ---------------------------------------------
               (Address of principal executive offices) (Zip Code)


                                 86 755 217 5656
                             ----------------------
                           (Issuer's telephone number)

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

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

     As of March 31, 2001,  12,923,268 shares of Common Stock of the issuer were
outstanding.

<PAGE>

                              INTERMOST CORPORATION

                                      INDEX

                                                                           Page
                                                                          Number
                                                                          ------

PART I - UNAUDITED FINANCIAL INFORMATION

     Item 1.  Financial Statements

     Consolidated Condensed Balance Sheets -- March 31,
     2001 and June 30, 2000.............................................       3

     Consolidated Condensed Statements of Operations --
         For the three months ended March 31, 2001 and 2000.............       4

     Consolidated Condensed Statements of Operations --
         For the nine months ended March 31, 2001 and 2000..............       5

     Consolidated Condensed Statements of Cash Flows --
         For the nine months ended March 31, 2001 and 2000..............       6

     Notes to Consolidated Condensed Financial Statements...............       7

     Item 2.   Management's Discussion and Analysis of Financial
               Condition and Results of Operations......................       9

PART II - OTHER INFORMATION

     Item 2.  Changes in Securities and Use of Proceeds.................      14
     Item 6.  Exhibits and Reports on Form 8-K..........................      14

     SIGNATURES.........................................................      15

<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1.  Unaudited Financial Statements

                     INTERMOST CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS

                                     ASSETS
<TABLE>

                                                    June 30, 2000       March 31, 2001
                                                   ---------------     -----------------
<S>                                                <C>                 <C>           <C>
                                                        RMB             RMB          US$
                                                        ----            ---          ----

Current assets:
     Cash and cash equivalents                       13,556,982     4,967,025       599,882
     Accounts receivable, net                         1,438,235       385,182        46,520
     Deposits, prepayments and other receivables      5,438,095     3,139,079       379,116
     Inventories                                         57,058        15,818         1,910
     Due from a director                                284,265       123,121        14,870
     Due from related companies                          72,345        72,483         8,754
                                                  -------------   -----------  ------------
         Total current assets                        20,846,980     8,702,708     1,051,052

Investment in an associated company                   4,638,796     1,328,717       160,473
Fixed Assets                                         13,291,366     5,703,776       688,862
Intangible assets                                     1,199,996       299,993        36,231
Deferred compensation costs, net                      1,744,878             -             -
                                                   ------------   -----------  ------------
         Total assets                                41,722,016    16,035,194     1,936,618
                                                   ============   ===========  ============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
     Accruals and other payables                      2,442,236       630,486        76,146
     Deposits from customers                            856,549       602,513        72,767
     Business tax payable                                51,508        76,435         9,231
     Due to directors                                   208,197        88,786        10,723
                                                    -----------    ----------     ---------
         Total current liabilities                    3,558,490     1,398,220       168,867

Minority interest                                     3,428,693        89,701        10,833

Shareholders' equity:
     Common stock, par value US$ 0.001
         authorized 100,000,000 shares
     Common stock subscribed                             90,840       107,003        12,923
     Shares to be issued                                  6,624             -             -
     Less: subscription receivable                     (952,200)            -             -
     Additional paid-in capital                      52,233,737    54,107,159     6,534,681
     Accumulated deficit                            (16,613,282)  (39,635,990)   (4,786,954)
     Cumulative translation adjustments                (30,886)       (30,899)       (3,732)
                                                   ------------   -----------    ----------
     Total shareholders' equity                      34,734,833    14,547,273     1,756,918
                                                   ------------   -----------    ----------
     Total liabilities and shareholders' equity      41,722,016    16,035,194     1,936,618
                                                   ============   ===========    ==========
</TABLE>


    The accompanying notes are an integral part of these financial statements

                                       3
<PAGE>


                     INTERMOST CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
<TABLE>

                                                         Three Months Ended March 31
                                                       2000                   2001
                                                        RMB             RMB           US$
                                                       ------         --------      --------
<S>                                                    <C>            <C>           <C>


Net sales                                              3,030,463       897,947       108,448

Cost of services                                       2,245,437       972,112       117,405
                                                     -----------    ----------    ----------

Gross Profit                                             785,026       (74,165)       (8,957)

Selling, general and administrative expenses           5,284,031     2,551,202       308,116
                                                     -----------    ----------    ----------

Loss from operations                                 (4,499,005)    (2,625,367)     (317,073)

Gain on dilution of interest in subsidiary               57,808              -             -

Other income(other loss), net                            34,693       (194,480)      (23,488)

Share of gain(loss) of an associated company                  -         12,195         1,473

Provision for bad debt                                        -     (5,139,026)     (620,655)

Unusual items                                                 -     (5,322,168)     (642,773)
                                                     -----------   ------------   -----------

Loss before income taxes and minority interest       (4,406,504)   (13,268,846)   (1,602,516)

Minority interest                                       157,579            193            23
                                                     -----------   ------------   -----------

Net loss                                             (4,248,925)   (13,268,653)   (1,602,493)
                                                     ===========   ============   ===========

Net loss per common share - Basic                         (0.40)        (1.09)         (0.13)
                                                     ===========   ============   ===========

Weighted average number of
     shares outstanding                              10,715,311    12,126,706     12,126,706
                                                     ===========   ============   ===========
</TABLE>


    The accompanying notes are an integral part of these financial statements

                                       4
<PAGE>

                     INTERMOST CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS


<TABLE>

                                                            Nine Months Ended March 31
                                                           ---------------------------
                                                       2000               2001
                                                       RMB           RMB             US$
                                                       -----        -----          -------
<S>                                                  <C>          <C>             <C>

Net sales                                            9,348,149     5,529,994       667,874

Cost of services                                     7,193,926     5,160,293       623,224
                                                    ----------    ----------     ---------

Gross Profit                                         2,154,223       369,701        44,650

Selling, general and administrative expenses         9,840,531    11,320,062     1,367,157
                                                    ----------    ----------     ---------

Loss from operations                                (7,686,308)  (10,950,361)   (1,322,507)

Gain on dilution of interest in subsidiary              57,808             -             -

Other income(other loss), net                           70,907       (51,948)       (6,274)

Share of loss of an associated company                       -    (1,970,128)     (237,938)

Provision for bad debt                                       -    (5,139,026)     (620,655)

Unusual items                                                -    (5,322,168)     (642,773)
                                                    ----------   -----------     ----------

Loss before income taxes and minority interest      (7,557,593)  (23,433,631)   (2,830,147)

Minority interest                                      157,579       410,923        49,628
                                                    ----------   -----------     ---------

Net loss                                            (7,400,014)  (23,022,708)   (2,780,519)
                                                    ==========   ===========     =========

Net loss per common share - Basic                       (0.73)        (2.03)        (0.24)
                                                    ==========   ===========     =========

Weighted average number of
     shares outstanding                            10,076,601    11,360,173    11,360,173
                                                   ===========   ===========    ==========
</TABLE>


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

                                       5
<PAGE>

                     INTERMOST CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>

                                                                 Nine Months Ended March 31
                                                                ----------------------------
                                                                   2000             2001
                                                                   RMB       RMB             US$
                                                                 -------   --------       ---------
<S>                                                          <C>           <C>           <C>

Cash flows from operating activities:
Net loss                                                     (7,400,014)  (23,022,708)   (2,780,519)
Adjustments to reconcile net loss to net cash
     used in operating activities:
     Provision for bad debt                                           -     5,139,026       620,655
     Provision for investment in an associated company                -     1,320,726       159,508
     Provision for investment in a subsidiary company                 -     3,622,421       437,491
     Amortization of intangible assets and other assets       1,360,519       900,003       108,696
     Depreciation of plant and equipment                        318,494     2,050,972       247,702
     Gain on dilution of interest in a subsidiary               (57,808)            -             -
     Share of loss of associated company                              -     1,970,128       237,938
     Loss on disposal of fixed assets, intangible assets
         and other assets                                             -       379,021        45,775
Minority interest                                              (157,579)     (410,923)      (49,628)
     Value of shares issued to employees
         for past services                                    1,701,954             -             -
     Stock-based compensation costs                           1,253,501       647,038        78,144
(Increase) decrease in operating assets:
     Inventory                                                        -        41,240         4,981
     Account receivable, net                                   (436,326)      980,056       118,364
     Deposits, prepayment and other receivable               (5,436,128)   (2,962,149)     (357,747)
     Due from related company                                   (56,830)         (138)          (17)
     Due from directors                                               -       161,144        19,462
Increase (decrease) in operating liabilities:
     Accruals and other payable                                (508,666)      (38,020)       (4,592)
     Deposits from customers                                     47,624      (254,036)      (30,681)
     Business tax payable                                        23,314        33,623         4,061
     Cumulative translation adjustments                          (9,136)          (13)           (2)
     Amount due to a joint venture partner                       30,000             -             -
     Due to directors                                           (17,922)     (119,411)      (14,422)
                                                             -----------   -----------   -----------
Net cash used in operating activities                        (9,335,867)   (9,561,987)   (1,154,829)
                                                             -----------   -----------   -----------

Cash flows from investing activities:
     Additions of plant and equipment                         (968,785)   (2,866,309)     (346,173)
     Advances to a related company                            (856,003)            -             -
     Increase in due from a joint venture partner           (1,306,709)            -             -
     Cash of unconsolidated subsidiary                                -      (94,649)      (11,431)
                                                             ----------    -----------    ----------
Net cash used in investing activities                        (3,131,497)   (2,960,958)    (357,604)
                                                             ----------    -----------    ----------

Cash flows from financing activities:
     Cash received from join venture partner                 4,470,000              -            -
     Cash received from a Subscriber                         5,009,400              -            -
     Cash received from shares issued                       25,601,997      3,933,001      475,000
                                                            ----------     ----------     ---------
     Net cash provided by financing activities              35,081,397      3,933,001      475,000
                                                            ----------     ----------     ---------
Effect of cumulative translation adjustments                    (9,136)           (13)          (2)
Net increase in cash and cash equivalents                   22,604,897     (8,589,957)  (1,037,435)
Cash and cash equivalents at beginning of period             4,376,907     13,556,982    1,637,317
                                                           -----------     ----------    ----------
Cash and cash equivalents, end of period                    26,981,804      4,967,025      599,882
                                                           ===========     ==========    ==========
</TABLE>

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

                                       6
<PAGE>

                     INTERMOST CORPORATION AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

1.   INTERIM FINANCIAL STATEMENT PRESENTATION

     The interim consolidated  financial statements are prepared pursuant to the
     requirements for reporting on Form 10-QSB.  These financial statements have
     not been  audited by  independent  accountants.  The June 30, 2000  balance
     sheet data was  derived  from  audited  financial  statements  but does not
     include  all  disclosures   required  by  generally   accepted   accounting
     principles.  The interim  financial  statements and notes thereto should be
     read in conjunction with the financial statements and notes included in the
     Company's  Form  10-KSB.  In  the  opinion  of  management,  these  interim
     financial  statements  reflect all adjustments of a normal recurring nature
     necessary  for a fair  statement  of the results  for the  interim  periods
     presented.  The current period  results of operations  are not  necessarily
     indicative of results which  ultimately  will be reported for the full year
     ending June 30, 2001.

2.   CURRENCY PRESENTATION AND FOREIGN CURRENCY TRANSLATION

     Translation  of amounts from Renminbi  ("Rmb") into United  States  dollars
     ("US$") is for the  convenience  of  readers  and has been made at the noon
     buying rate in New York City for cable  transfers in foreign  currencies as
     certified for customs  purposes by the Federal  Reserve Bank of New York on
     March 31,  2001 of US$1.00 = Rmb8.28.  No  representation  is made that the
     Renminbi amounts could have been, or could be, converted into United States
     dollars at that rate or at any other rate.

3.   PROVISION FOR BAD DEBTS

     During the nine months  ended March 31,  2001,  the Company  reported a bad
     debt expense of $620,655 relating to the following:

     Dunwell Computer
     ----------------
     The Company  previously  signed an  agreement in principal to acquire a 70%
     interest in Dunwell  Computer (H.K.) Limited  ("Dunwell"),  a developer and
     provider of Internet technology and e-commerce  solutions.  Pursuant to the
     terms of the agreement,  the Company agreed to pay approximately  $358,974,
     50% in cash and 50% in equity of Intermost at $3.50 per share.

     As a result of the  downturn  in market  conditions  which  have  adversely
     affected  Dunwell,  the Company has determined to terminate the acquisition
     of Dunwell. As a result of the adverse material change in the operations of
     Dunwell,  the Company  has  recorded a bad debt  charge  totaling  $285,057
     relating  to  the  impairment  of the  Company's  deposit  relating  to the
     proposed acquisition of Dunwell ($179,487) and loans to Dunwell ($105,570).

     Jiayin Joint Venture
     --------------------
     In  connection  with the Company's  write-down of its  investment in Jiayin
     Joint Venture (see Note 4), the Company wrote down accounts receivable from
     Jiayin Joint Venture  totaling  $208,244 during the nine months ended March
     31, 2001.

     Other
     -----
     During the nine months  ended March 31,  2001,  the Company  wrote-down  as
     uncollectible  accounts receivable of $96,618 from Shenzhen Business Daily,
     $24,155 from J-R Technology Ltd.(see Note 5), $3,200 from Sino-E (see  Note
     4) and $3,381 from others.

4.   UNUSUAL ITEMS

     During the nine months ended March 31, 2001, the Company  reported one time
     charges for unusual items totaling $642,773 relating to the following:

                                       7
<PAGE>

     Jiayin Joint Venture
     --------------------
     During the nine  months  ended March 31,  2001,  the  Company's  management
     determined  that market  conditions  would not support  the  investment  of
     additional  funds needed to  commercialize  the telephone  payment software
     products  developed  by the  Jiaying  Joint  Venture.  As a result  of such
     determination,  the  Company  wrote-down  its  investment  in Jiayin  Joint
     Venture in the amount of $437,490.

     Sino-E Venture
     --------------
     During the nine months ended March 31, 2001,  operations of Shenzhen Sino-E
     E-commerce  Company  Ltd.  ("Sino-E")  were  suspended  as a result  of the
     downturn in Internet related markets.  As a result,  the Company recorded a
     write-down  of its  Investment  in an  associated  company in the amount of
     $159,508.

     Write-Down of Fixed Assets
     --------------------------
     During  the nine  months  ended  March 31,  2001,  the  Company  wrote-down
     obsolete and damaged equipment and furniture in the amount of $45,775.

5.   HUIFENG ACQUISITION

     In May 2000,  the Company signed a Letter of Intent to purchase J-R Hi-Tech
     Investment  Corporation,  a holding  company of an  internet  security  and
     technology products developer  headquartered in Shenzhen.  In October 2000,
     the Company  entered into an agreement,  superceding  the Letter of Intent,
     pursuant to which the Company agreed to acquire shares  representing  58.3%
     of   J-R   Hi-Tech   Investment   Corporation.,   a  90%   shareholder   of
     Huifeng(Shenzhen).  The  purchase  price  for  the  shares  of J-R  Hi-Tech
     Investment  Corporation was payable $176,470 in cash plus 510,300 shares of
     common stock.  J-R Hi-Tech  Investment  Corporation was required to use the
     cash portion of the purchase price to fund operations of Huifeng(Shenzhen).
     Huifeng(Shenzhen)  specializes in the  development and sale of Internet and
     financial system security solutions. Huifeng(Shenzhen) focuses its sales on
     financial,  banking,  telecom,  and government  markets in southern  China.
     Huifeng(Shenzhen) has been in operation since August 1999.

     In January 2001, the conditions of closing were satisfied, the cash portion
     of the purchase price was paid and the balance of purchase  price,  payable
     in stock, was tendered and management of the Company deemed the acquisition
     of shares of J-R Hi-Tech Investment Corporation to be completed,  resulting
     in control by the Company of 52.5% of Huifeng(Shenzhen).  Subsequently, due
     to personnel  reasons,  Intermost has not formally gained active control of
     J-R Hi-Tech. The parties are presently engaged in discussions in an attempt
     to complete the transfer of shares.

     Pending  resolution  of the  disputes,  the  operations  of Huifeng are not
     included in the  consolidated  financial  statements of the Company and the
     cash portion of the  purchase  price,  in the amount of $176,470,  has been
     recorded as "deposits, prepayments and other receivables".

6.   SHAREHOLDERS' EQUITY

     The balance of  $115,000  for 92,000  shares  from a previous  subscription
     receivable  of  800,000  shares was  completed  during  the  quarter  ended
     December 31, 2000.

     During the quarter ended March 31, 2001, the Company received  subscription
     proceeds of US$360,000 from private placement of 1,152,000 shares of common
     stock to eBiz Incubation Co. Ltd.

     In January 2001,  the Company issued 510,300 shares of common stock to J.R.
     Hi-Tech Investment Corp. in conjunction with the acquisition of HK Huifeng.
     As a result of unresolved  personnel issues,  the shares in question remain
     under the control of the Company and are not  considered  outstanding  (see
     Note 5).

                                       8
<PAGE>


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

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

Material  Changes in Results of  Operations  for the Nine Months Ended March 31,
2001 as Compared to the Nine Months Ended March 31, 2000

Net Sales

     Net sales are derived principally from E-commerce  solutions,  and software
development.  "E-commerce  solutions"  include web site design and  development,
advertisement system sales & integration and telephone payment system.

     The  following  table  reflects the total net sales and  percentage  of net
sales for the periods indicated:
<TABLE>


                                             Total Net Sales               Percent of Total Net Sales
                                            ------------------            ----------------------------
                                          Nine Months Ended March 31,      Nine Months Ended March 31,
                                         ---------------------------      ---------------------------
                                              2000          2001              2000         2001
                                              ----          ----              ----         ----
                                               US$           US$
<S>                                       <C>            <C>               <C>           <C>

E-commerce solutions
     - Web site design and development       358,817       337,935             31.8%        50.6%
     - Advertisement                          85,170        21,832              7.5%         3.3%
     - System sales and integration          517,865       292,417             45.9%        43.8%
     - Telephone payment system                  221        15,690              0.0%         2.3%
                                          ----------     ---------           -------     --------
                                             962,073       667,874             85.2%       100.0%
Software development                         166,931             -             14.8%         0.0%
                                          ----------     ---------           -------     --------
     Total                                 1,129,004       667,874            100.0%       100.0%
                                          ==========     =========           =======     ========
</TABLE>

     Total net sales  decreased 41% to $667,874 during the nine months end March
31, 2001  compared  to  $1,129,004  during the same  period in 2000.  E-commerce
solutions revenues decreased 31% to $667,874 in the 2001  period  as compared to
$962,073 during the same period in 2000. Advertisement revenues decreased 74% to
$21,832 for the 2001 period as compared to $85,170 during the same period in the
2000.  System sales and integration  revenues  decreased 44% to $292,417 for the
2001  period  as  compared  to  $517,865  during  the same  period  in the 2000.
Telephone  payment system  revenues  increased to $15,690 for the 2001 period as
compared to $221 during the same period in the 2000.

     There were no software  development  revenues  for nine months end December
31, 2001 compared to $166,931 of software  development  revenues during the same
period in 2000.

     The  revenue of web site  design and  development  includes  $120,000  from
Sino-E  E-commerce  Company Limited  ("Sino-E") for the exchange platform system
development.

     The  decline  in  total  net  sales,   e-commerce  solutions  and  software
development  revenues  were  primarily  attributable  to the  transition  of the
Company's business  associated with a refinement of the Company business plan in
June 2000.  Under the  restructured  business  model,  the Company will focus on
providing  Internet based  e-commerce  solutions to Chinese  companies in two to
five industries.  The Company technical  resources have been shifted to focus on
the    in-house    development    of    Supply-Chain-Management    ("SCM")   and
Customer-Relation-Management  ("CRM")  solutions.  The  Company's  SCM  and  CRM
software are  presently  undergoing  beta  testing  with SCM software  presently
scheduled  for release by the end of September  2001 and CRM software  presently
scheduled for release by the end of June 2001.

                                       9
<PAGE>

     The plan to develop the  Company's  ChinaE.com  web site into an e-commerce
platform is on hold.

     With the narrowing of the Company focus, revenues historically generated by
traditional  web  hosting  and  web  design  operations,   both  of  which  were
experiencing  declining  margins,  began to decline  during the  September  2000
quarter and are  expected to continue to decline as those  offerings  are phased
out. Until SCM and CRM products are completed, revenues are expected to continue
to be flat or declining.

     Pending  the  introduction  of our SCM and CRM  software  products,  we are
acting as a re-seller  of  Saleslogic,  a CRM  product,  and  providing  network
security  services in an effort to offset  declines in revenues  associated with
the transition of our business.

     Upon  introduction  of SCM and CRM software,  the Company  expects  revenue
growth to resume as we integrate our software into e-commerce solution systems.

     Advertisement  revenue  for the web site are not  expected  to reflect  any
meaningful increase.

Cost of Services

     Cost of  services  consist  principally  of  salary  for  computer  network
technicians,   costs  of  systems  sales  and   integration,   depreciation  and
amortization,  and  other  costs  associated  with the same,  including  travel,
welfare, office and related expenses allocated to the engineering and technician
staff.  Additionally,  other cost of services  during the 2000  period  includes
certain  other  costs  associated  with  the  offering  of  special  promotional
packages,  which  package  included  participation  in a  seminar,  lodging  and
advertisement.

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

<TABLE>
                                            Total Cost of Services         Percent of Total Net Sales
                                          --------------------------     -------------------------------
                                          Nine Months Ended March 31,       Nine Months Ended March 31,
                                         -----------------------------     ----------------------------
                                             2000           2001              2000         2001
                                           ---------      --------          --------     --------
                                              US$           US$
<S>                                       <C>            <C>               <C>           <C>


Engineers/technician salaries                109,393       162,375              9.7%        24.3%
Subcontract fees                             153,622             0             13.6%         0.0%
Cost of system sales and integration         477,594       273,445             42.3%        40.9%
Depreciation                                  15,222        18,705              1.3%         2.8%
Other                                        113,001       168,699             10.0%        25.3%
                                          ----------     ---------           -------      -------
     Total                                   868,832       623,224             76.9%        93.3%
                                          ==========     =========           =======       ======
</TABLE>

     Compared to the same period of 2000, the costs of services decreased 28% to
$623,224.  Engineers/technician  salaries  increased  48%.  The  other  services
related cost increased  49%. The speed of decline in revenue,  which was 41%, is
faster than the speed of costs  decline to the fixed cost  component  of cost of
services and reduced margin in web design and system integration  services.  The
principal  components  of cost of services  during the nine months  ended March,
2001  were  cost  of  hardware;  other  costs  associated  with  support  on the
engineering/technician staff;  engineer/technician salaries; and depreciation of
equipment utilized in connection with services.

Selling, General and Administrative Expense

     Selling,  general and administrative  expense ("SG&A") consists principally
of (1) sales  commissions,  advertising,  trade show and seminar  expenses,  and
direct-field  sales expense,  (2) salary for administrative and sales staff, (3)
corporate  overhead,  (4)  amortization  of  intangibles,  and (5)  research and
development.  The following table reflects the principal  components of SG&A and
percentage of net sales represented by each component for the periods indicated:

                                       10
<PAGE>
<TABLE>

                                              Total SG&A               Percent of Total Net Sales
                                             ----------------          -----------------------------
                                        Nine Months Ended March 31,     Nine Months Ended March 31,
                                       -----------------------------   ----------------------------
                                           2000           2001             2000         2001
                                         --------       --------         --------     --------
                                            US$            US$
<S>                                      <C>            <C>              <C>          <C>

Sales and marketing salaries and
     commissions                           76,798        167,218             6.8%        25.0%
Other sales and marketing expenses        155,988        150,559            13.8%        22.5%
Rentals                                    21,853         81,277             1.9%        12.2%
Administrative salaries                    63,591        245,505             5.6%        36.8%
Other corporate                           705,926        516,067            62.5%        77.3%
Amortization of intangibles               164,314        108,696            14.6%        16.3%
Research and development                        -         97,835              -          14.6%
                                       ----------     ----------           ------       ------
     Total                              1,188,470      1,367,157           105.2%       204.7%
                                       ==========     ==========           ======       ======
</TABLE>


     For the nine month  period  ended March 31, 2000,  SG&A  increased  15%, to
$1,367,157. Sales and marketing salaries and commissions increased 118%. Rentals
increased  272%.  Administrative  salaries  increased  286%. R&D took 15% of net
sales. The increase in SG&A has been  principally  attributable to a combination
of (1) an increase in  administrative  support staff,  including the addition of
three senior  management  personnel  salary,  (2) corporate  overhead  including
rental,  professional  fee and legal fee for annual  auditing and due  diligence
reports,  (3) marketing  efforts  associated  with the promotion and other costs
associated with marketing research, industry journal advertising,  relocation of
new office and other  related  expenses,  and (4)  commencement  of research and
development relating to the Company's SCM and CRM products.

     The  principal  components  of SG&A during the nine months  ended March 31,
2000  were  sales  and  marketing  salaries  and  commissions;  other  marketing
expenditures;  administrative  salaries and benefits;  other corporate  expense,
which includes occupancy expense, general office expenses, travel, general staff
welfare  expense  and  consulting  fees,  among  others;   and  amortization  of
intangibles.

     Amortization   expense   related  to  the   acquisition  of  eighty  system
integration  contracts from Labtam Corporation in July 1999 for 69,700 shares of
common stocks of the Company.  The intangible  assets are being amortized over a
24-month period,  representing the life of the contracts and the expected useful
life of the technological know-how. We will incur amortization expense quarterly
of approximately  $36,000 for the system integration  contracts through June 30,
2001.

     Research and development expense,  totaling $97,835 for nine months period,
was principally attributable to expenditures to support the shift in the Company
strategy,  including technology team salary which was related to the development
of SCM and CRM products. There were no R&D expenses reported in the prior fiscal
year.

Provision Bad Debt

     During the nine months  ended March 31,  2001,  the Company  reported a bad
debt expense of $620,655 relating to the following:

     Dunwell Computer.  The Company  previously signed an agreement in principal
to acquire a 70% interest in Dunwell  Computer  (H.K.)  Limited  ("Dunwell"),  a
developer and provider of Internet technology and e-commerce solutions. Pursuant
to the terms of the agreement, the Company agreed to pay approximately $358,974,
50% in cash and 50% in equity of Intermost at $3.50 per share.

     As a result of the  downturn  in market  conditions  which  have  adversely
affected  Dunwell,  the Company has  determined to terminate the  acquisition of
Dunwell.  As a result  of the  adverse  material  change  in the  operations  of
Dunwell,  the Company has recorded a bad debt charge totaling  $285,057 relating
to the impairment of the Company's deposit relating to the proposed  acquisition
of Dunwell ($179,487) and loans to Dunwell ($105,570).

     Jiayin Joint Venture.  In connection  with the Company's  write-down of its
investment in Jiayin Joint Venture,  the Company wrote down accounts  receivable
from Jiayin Joint Venture  totaling  $208,244 during the nine months ended March
31, 2001.

     Other.  During the nine months ended March 31, 2001, the Company wrote-down
as uncollectible accounts  receivable  of  $96,618 from Shenzhen Business Daily,
$24,155 from J-R Technology Ltd., $3,200 from Sino-E and $3,381 from others.

                                       11
<PAGE>

Unusual Items

     During the nine months ended March 31, 2001, the Company  reported one time
charges for unusual items totaling $642,773 relating to the following:

     Jiayin Joint  Venture.  During the nine months  ended March 31,  2001,  the
Company's  management  determined that market  conditions  would not support the
investment of additional  funds needed to  commercialize  the telephone  payment
software  products  developed by the Jiaying Joint Venture.  As a result of such
determination,  the Company wrote-down its investment in Jiayin Joint Venture in
the amount of $437,490.  The write-down  related to the expenditures for the 3-D
bank payment  system  platform  (telephone  payment,  cellular phone payment and
website  payment)  which was developed for  up-grading  the version of provision
telephone payment system.

     Sino-E Venture.  During the nine months ended March 31, 2001, operations of
Shenzhen Sino-E E-commerce Company Ltd. ("Sino-E") were suspended as a result of
the downturn in Internet  related markets.  As a result,  the Company recorded a
write-down of its Investment in an associated company in the amount of $159,508.

     Write-Down  of Fixed  Assets.  During the nine months ended March 31, 2001,
the Company  wrote-down  obsolete  and damaged  equipment  and  furniture in the
amount of $45,775.

Minority Interest

     Minority  interest  represents  the  portion  of the loss of  Jiayin  Joint
Venture not  attributable  to the Company.  As a result of the write-down of the
Company's  investment in Jiayin, no future minority interests are expected to be
reported.

Material Changes in Financial Condition, Liquidity and Capital Resources.

     At March 31, 2000 we had cash and cash  equivalents of $599,882 and working
capital of $882,185 as compared to $1,637,317 of cash and cash  equivalents  and
$2,087,982 of working capital at June 30, 2000.

     Operations  used  $1,154,831 of cash during the nine months ended March 31,
2001.  Funds used in operations  primarily  relate to the losses incurred during
the period and  reductions in payables  during the period,  which were partially
offset by various non-cash charges to earnings.

     Investing  activities  used $357,604 during the nine months ended March 31,
2001.  Funds used in investing  activities  consist of purchases of equipment to
support operations.

     Financing  activities  provided $475,000 during the nine months ended March
31, 2001.  Funds provided by financing  activities  consisted of (1) $115,000 of
proceeds  from  subscription  receivables  for  92,000  shares  from  a  private
placement  which has been in an  escrow  account  since  October  1999,  and (2)
$360,000 of proceeds  from the sale of 1,152,000  shares of common stock to eBiz
Incubation Co. Ltd., which represent 8.9% share of interest of the Company.

     The Company had no long term debt at March 31, 2001.

     During  the  nine  months  ended  March  31,  2001,  the  Company  incurred
substantial  write-downs  in  connection  with the  transition  of the Company's
business and the marked downturn in the Internet  related  markets.  Included in
the  write-downs  were  (1)  a  $335,598   write-down  of  accounts   receivable
attributable to Jiayin  ($208,244),  J-R Hi-Tech  ($24,155),  Shenzhen  Business
Daily  ($96,618),  and  Sino-E  ($3,200)  and  others  ($3,381),  (2) a $285,057
write-down  of  deposits,  prepayments  and other  receivables  attributable  to
abandonment of the Company's  proposed  acquisition  of Dunwell,  (3) a $159,508
write-down of investment in an associated company attributable to the suspension
of operations of Sino-E, (4) a $437,690  write-down of fixed assets attributable
to the Company's  investment in Jiayin, and (5) a $45,775 write-down of obsolete
and damaged equipment and furniture.

                                       12
<PAGE>

     In May 2000,  the Company signed a Letter of Intent to purchase J-R Hi-Tech
Investment Corporation, a holding company of an internet security and technology
products  developer  headquartered  in Shenzhen.  In October  2000,  the Company
entered into an agreement,  superceding the Letter of Intent,  pursuant to which
the  Company  agreed  to  acquire  shares  representing  58.3%  of  J-R  Hi-Tech
Investment Corporation.,  a 90% shareholder of Huifeng (Shenzhen).  The purchase
price for the shares of J-R Hi-Tech Investment  Corporation was payable $176,470
in cash plus 510,300 shares of common stock. J-R Hi-Tech Investment  Corporation
was required to use the cash portion of the purchase price to fund operations of
Huifeng(Shenzhen).  Huifeng(Shenzhen) specializes in the development and sale of
Internet and financial system security solutions.  Huifeng(Shenzhen) focuses its
sales on financial,  banking, telecom, and government markets in southern China.
Huifeng(Shenzhen) has been in operation since August 1999.

     In January 2001, the conditions of closing were satisfied, the cash portion
of the  purchase  price was paid and the balance of purchase  price,  payable in
stock,  was tendered and  management of the Company  deemed the  acquisition  of
shares of J-R Hi-Tech  Investment  Corporation  to be  completed,  resulting  in
control  by the  Company  of 52.5% of  Huifeng(Shenzhen).  Subsequently,  due to
personnel  reasons,  Intermost  has not formally  gained  active  control of J-R
Hi-Tech.  The  parties are  presently  engaged in  discussions  in an attempt to
complete the transfer of shares.

     Pending  resolution  of the  disputes,  the  operations  of Huifeng are not
included in the  consolidated  financial  statements of the Company and the cash
portion of the purchase price,  in the amount of $176,470,  has been recorded as
"deposits, prepayments and other receivables".

     Based on our current  operating losses, we anticipate that our cash on hand
is only sufficient to support  operations through May 2002. We anticipate that a
combination of cost control  measures and the  commencement of revenues from the
roll out and  commencement of sales of our SCM and CRM software will allow us to
reduce or  eliminate  our  operating  losses  beginning  in the  second  half of
calendar  year  2001.  Depending  upon the timing and  ultimate  achievement  of
profitability and the growth initiatives and investments  undertaken,  we may be
required  to seek  additional  capital in the future to support  operations  and
acquisitions.  We are presently  involved in discussions with various  financing
sources with respect to providing  equity  financing  but have no  agreements in
that regard at this time.  There is no assurance  that we will be  successful in
securing any additional  capital that may be required.  If additional capital is
required but cannot be secured,  our operations may be  substantially  adversely
effected.

Certain Factors Affecting Future Operating Results

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

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

                                       13
<PAGE>

                           PART II - OTHER INFORMATION


Item 2. Changes in Securities and Use of Proceeds

(c)  During the quarter ended March 31, 2001,  the Company  issued the following
     securities that were not registered under the Securities Act of 1933:

     On January 30, 2001, the Company issued 1,152,000 shares of common stock to
     eBiz Incubation Co. Ltd. for subscription proceeds of US$360,000. The stock
     has been accepted by eBiz Incubation Co. Ltd.

     The offer and sale of the above  described  securities was made in reliance
     on the exemption set out in Section 4(2) of the Securities Act of 1933. The
     shares were  offered  without  general  solicitation  or  advertising  to a
     limited group of accredited investors.

Item 6. Exhibits and Reports on Form 8-K

(a)  Exhibits

     None

(b)  Reports on Form 8-K

     Form 8-K dated January 20, 2001 reported under Item 2 the acquisition of HK
     Huifeng.

     Form 8-K dated  February 2, 2001 reported  under Item 4 the  appointment of
     PricewaterhouseCoopers as the company's independent public accountants.

                                       14
<PAGE>


                                                    SIGNATURES

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


                                                    INTERMOST CORPORATION

Dated: May 18, 2001
                                                   By:/s/ Jun Liang
                                                      --------------------------
                                                   Jun Liang, President and
                                                   Chief Executive Officer


                                                   By:/s/ Oliver Jianzing Li
                                                      --------------------------
                                                   Oliver Jianxing Li, Chief
                                                   Financial Officer