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



                                   FORM 10-QSB

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

                FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2006

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

               FOR THE TRANSITION PERIOD FROM ________ TO ________

                         Commission file number: 0-30430


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


              Wyoming                                 87-0418721
---------------------------------        ---------------------------------------
(State or other jurisdiction of         (I.R.S. Employer Identification Number)
 incorporation or organization)


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

                               (86) 755-8221-0238
             ------------------------------------------------------
              (Registrant's telephone number, including area code)


                                 Not applicable
              ----------------------------------------------------
              (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 February 8, 2007, the issuer had 193,370,278 shares of common stock,
  US$0.001 par value, issued and outstanding.


         Transitional Small Business Disclosure Format.  Yes [ ]    No [x]


                                       1
<PAGE>




                     INTERMOST CORPORATION AND SUBSIDIARIES

This Quarterly Report on Form 10-QSB for the quarterly period ended December 31,
2006 contains  "forward-looking  statements",  including statements that include
the words "believes",  "expects",  "anticipates",  or similar expressions. These
forward-looking   statements  include,   but  are  not  limited  to,  statements
concerning   the   Company's   expectations   regarding   its  working   capital
requirements,  financing requirements,  business prospects, and other statements
of expectations,  beliefs,  future plans and strategies,  anticipated  events or
trends,  and similar  expressions  concerning  matters  that are not  historical
facts.  The  forward-looking  statements in this Quarterly Report on Form 10-QSB
for the  quarterly  period ended  December  31, 2006  involve  known and unknown
risks,  uncertainties  and other  factors  that could cause the actual  results,
performance  or  achievements  of the  Company to differ  materially  from those
expressed  in or implied by the  forward-looking  statements  contained  herein.
Except as required by law,  the Company  undertakes  no  obligation  to publicly
release the results of any revisions to these  forward-looking  statements  that
may be made to reflect any future events or circumstances.


                                      INDEX



                                                                        Page
                                                                       Number


PART I - FINANCIAL INFORMATION

       Item 1.  Financial Statements

       Condensed Consolidated Balance Sheets -
            June 30, 2006 and December 31, 2006 (Unaudited)                  3

       Condensed Consolidated Statements of Operations (Unaudited)
            Three Months ended December 31, 2005 and 2006                    4

       Condensed Consolidated Statements of Cash Flows (Unaudited)
             Six Months ended December 31, 2005 and 2006                     5

       Notes to Condensed Consolidated Financial Statements
            Six Months Ended  December 31, 2005 and 2006                     7

    Item 2.  Management's Discussion and Analysis or Plan of
                    Operation                                               12

I   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                                                       22

     Item 3  Defaults Upon Senior Securities                                22

     Item 4  Submission of Matters to a Vote of Security Holders            22

     Item 5  Other Information                                              22

    Item 6.  Exhibits                                                       23
SIGNATURES

                                       2
<PAGE>


                     INTERMOST CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>

                                                                                     December 31, 2006
                                                         June 30, 2006                  (unaudited)
                                                         -------------                  -----------
                                                              RMB                  RMB                 US$
<S>                                                       <C>                             <C>

                                     ASSETS
------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
Current Assets
     Cash and cash equivalents                              5,617,182            10,856,088           1,391,806
  Accounts receivable, including RMB37,230,124
    (US$4,773,093) from related companies at December
    31, 2006                                               68,381,831            52,521,832           6,733,568
  Inventories                                               1,026,078             2,470,017             316,669
  Security bond deposit                                             -            11,700,000           1,500,000
  Stock in custodian                                        9,488,700             9,488,700           1,216,500
  Deposits, prepayments and other receivables               6,765,699            25,261,147           3,238,609
  Short-term loan                                           4,867,200             3,680,000             471,795
  Short-term investment                                     2,806,560             2,806,560             359,815
                                                       -----------------  --------------------  ------------------
                                                       -----------------  --------------------  ------------------
  Total current assets                                     98,953,250           118,784,344          15,228,762
                                                       -----------------  --------------------  ------------------
                                                       -----------------  --------------------  ------------------

Other Assets
  Unlisted investment                                       4,817,271             4,817,271             617,599
  Investment in associated companies                        8,676,426             8,649,826           1,108,952
  Plant and equipment, net                                    412,639               475,539              60,967
  Goodwill, at cost                                        24,424,893            17,152,456           2,199,033
  Intangible assets, net                                                            748,534              95,966
                                                              878,851
                                                       -----------------  --------------------  ------------------
                                                       -----------------  --------------------  ------------------
       Total assets                                       138,163,330           150,627,970          19,311,279

                                                       =================  ====================  ==================

            LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS' EQUITY

Current Liabilities
  Accounts payable                                            279,458               101,336              12,992
  Accrued liabilities and other payables                    1,438,509             1,834,144             235,147

  Customer deposits                                         1,201,828             1,276,902             163,705
  Deferred revenue                                                                   82,804              10,616
                                                              195,287
  Business taxes and government surcharges payable          9,610,836             9,527,666           1,221,496
                                                       -----------------   -------------------  ------------------
       Total current liabilities                           12,725,918            12,822,852           1,643,956
                                                       -----------------   -------------------  ------------------
                                                       -----------------   -------------------  ------------------

Minority Interests                                         33,551,110            33,600,263           4,307,726
                                                       -----------------   -------------------  ------------------
                                                       -----------------   -------------------  ------------------

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 --- 153,290,278 shares at
  June 30, 2006 and 193,370,278 shares at December
  31, 2006                                                  1,243,188             1,508,294             193,371
Reserved and to be issued - 10,000,000 shares                       -               171,600              22,000
Less : Subscription receivable                                      -                     -                   -
Additional paid-in capital                                176,115,082           193,134,223          24,760,798
Accumulated deficit                                      (86,707,681)          (94,125,311)        (12,067,348)
Accumulated other comprehensive gain                        1,235,713             3,516,049             450,776
                                                       -----------------   -------------------  ------------------
                                                       -----------------   -------------------  ------------------
Total shareholders' equity                                 91,886,302           104,204,855          13,359,597

                                                       -----------------   -------------------  ------------------
                                                       -----------------   -------------------  ------------------
Total liabilities, minority interests and
        Shareholders' equity                              138,163,330           150,627,970          19,311,279
                                                       =================   ===================  ==================
</TABLE>

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


                                       3
<PAGE>

                     INTERMOST CORPORATION AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

<TABLE>

                                                    Three Months Ended December 31,
                                                                  2005               2006
                                                                  ----               ----

                                                      RMB                     RMB                US$
                                                      ---                                        ---
<S>                                                 <C>                    <C>                <C>




Net revenues                                          30,415,061             5,463,272          700,419
Cost of revenues                                     (22,624,426)           (5,340,398)        (684,666)
                                                  ----------------   -------------------   --------------
                                                  ----------------   -------------------   --------------
Gross profit                                            7,790,635               122,874           15,753
                                                  ----------------   -------------------   --------------
                                                  ----------------   -------------------   --------------
Costs and expenses:
Selling, general and administrative expenses          (3,459,833)           (1,853,708)        (237,655)
Amortization of intangible assets                        (56,373)              (65,158)          (8,354)
Exchange Gain                                          1,642,321             4,363,068          559,368
                                                  ----------------   -------------------   --------------
Total costs and expenses                              (1,873,885)            2,444,202          313,359
                                                  ----------------   -------------------   --------------
                                                  ----------------   -------------------   --------------

Income from operations                                  5,916,750             2,567,078          329,112
Interest income                                             4,672                17,261            2,213
Loan interest income                                       41,374                50,160            6,431
Investment income                                         610,000                     -                -
Other income net                                                -                   780              100
                                                  ----------------   -------------------   --------------
                                                  ----------------   -------------------   --------------
Income before income taxes,
    minority interests and equity in
    earnings of associated companies                    6,572,796             2,635,277          337,856
Income taxes                                          (1,111,502)              (23,726)          (3,042)
                                                  ----------------   -------------------   --------------
                                                  ----------------   -------------------   --------------

Income before minority interests and equity in
  earnings of an associated companies                   5,461,294             2,611,551          334,814
Minority interests                                    (3,191,497)              (59,511)          (7,630)
                                                  ----------------   -------------------   --------------
                                                  ----------------   -------------------   --------------
Income before equity in earnings of
    associated companies                                2,269,797             2,552,040          327,184
Equity in earnings of associated
    companies                                             484,226                     -                -
                                                  ----------------   -------------------   --------------
                                                  ----------------   -------------------   --------------
Net income                                              2,754,023             2,552,040          327,184
                                                  ================   ===================   ==============
                                                  ================   ===================   ==============
Net income per common share -
    basic and diluted                                       0.019                 0.015            0.002
                                                  ================   ===================   ==============
                                                  ================   ===================   ==============
Weighted average number of common shares
  outstanding - basic and diluted                     145,507,052           173,922,536      173,922,536
                                                  ================   ===================   ==============

</TABLE>

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

                                       5
<PAGE>


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

                                                             Six Months Ended December 31,
                                                            2005                   2006
                                                            ----                   ----
                                                            RMB            RMB            US$
<S>                                                 <C>              <C>              <C>

Net revenues                                          58,783,148      7,737,310         991,963

Cost of revenues                                    (42,458,538)     (7,455,226)       (955,798)
                                                   --------------   -------------  --------------
                                                   --------------   -------------  --------------
Gross profit                                         16,324,610         282,084          36,165
                                                   --------------   -------------  --------------
Costs and expenses:
Selling, general and administrative expenses         (7,799,556)      (4,620,369)      (592,355)
Amortization of intangible assets                    (1,249,386)        (130,317)       (16,707)
Exchange gain                                         1,622,569        4,315,548        553,275
                                                   --------------   -------------  --------------
Total costs and expenses                             (7,426,373)       (435,138)        (55,787)
                                                   --------------   -------------  --------------
                                                   --------------   -------------  --------------
Income (loss) from operations                          8,898,237       (153,054)        (19,622)
Impairment of goodwill                                         -     (7,272,437)       (932,364)
Interest income                                            7,073          32,046           4,108
Loan interest income                                      41,427         146,170          18,740
Investment income                                      1,365,680        (28,461)         (3,649)
Other income, net                                         25,000             275              35
                                                   --------------   -------------  --------------
                                                   --------------   -------------  --------------
Income (loss) before income taxes,
    minority interests and equity in
    earnings of associated companies                  10,337,417     (7,275,461)       (932,752)
Income taxes                                         (2,377,097)        (66,416)         (8,515)
                                                   --------------   -------------  --------------
                                                   --------------   -------------  --------------
Income (loss) before minority interests and equity
  in earnings of associated companies
                                                       7,960,320     (7,341,877)       (941,267)
Minority interests                                   (6,771,006)        (49,153)         (6,302)
                                                   --------------   -------------  --------------
                                                   --------------   -------------  --------------
Income (loss) before equity in earnings of
    associated companies                               1,189,314     (7,391,030)       (947,569)
Equity in earnings of associated
    companies                                            404,323        (26,600)         (3,410)
                                                   --------------   -------------  --------------
                                                   --------------   -------------  --------------
Net income                                             1,593,637     (7,417,630)       (950,979)
                                                   ==============   =============  ==============
                                                   ==============   =============  ==============

Net income per common share -
    basic and diluted                                      0.013         (0.045)         (0.006)
                                                   ==============   =============  ==============
                                                   ==============   =============  ==============

Weighted average number of common shares
  outstanding - basic and diluted                    120,142,684     163,662,170     163,662,170
                                                   ==============   =============  ==============
</TABLE>

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



<PAGE>



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

                                                                      Six Months Ended December 31,
                                                         2005                       2006
                                                         ----                       ----

                                                          RMB                     RMB                US$
<S>                                                       <C>                   <C>                 <C>


Cash flows from operating activities:
Net income                                                 1,593,637            (7,417,630)         (950,979)
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                         1,249,386                130,317            16,707
  Equity in earnings of associated companies               (404,323)                 26,600             3,410
 Depreciation                                                 65,263                115,761            14,841
  Minority interests                                       6,771,006                 49,153             6,302
  (Increase) decrease in operating assets -
  Accounts receivable                                   (12,323,107)             15,859,999         2,033,333
  Inventories                                              (108,028)            (1,443,939)         (185,120)
  Deposits, prepayments and other receivables              (487,990)           (18,495,448)       (2,371,211)
  Increase (decrease) in operating liabilities -
  Accounts payable                                       (3,284,483)              (178,122)          (22,836)
  Accrued liabilities and other payables                 (6,185,999)                395,635            50,722
  Customer deposits                                         (21,194)                 75,074             9,625
  Deferred revenue                                          (19,116)              (112,483)          (14,421)
  Business taxes and government surcharges payable         2,422,525               (83,170)          (10,663)
                                                     ----------------     ------------------     -------------
                                                     ----------------     ------------------     -------------
Net cash used in operating activities                    (5,355,214)            (3,805,816)         (487,926)
                                                     ----------------     ------------------     -------------
                                                     ----------------     ------------------     -------------
Cash flows from investing activities:
  Purchase of plant and equipment                           (32,169)              (178,800)          (22,923)
    Increase in short-term investment                      (504,000)                      -                 -
    Purchase of intangible asset                            (38,000)                      -                 -
    Increase in short-term loan                          (4,867,200)              1,187,200           152,205
                                                     ----------------     ------------------     -------------
Net cash provided by (used in) investing activities      (5,441,369)              1,008,400           129,282
                                                     ----------------     ------------------     -------------
                                                     ----------------     ------------------     -------------
Cash flows from financing activities:
   Increase in security bond                                       -           (11,700,000)       (1,500,000)
   Net proceeds from issuance of common stock             16,614,134             17,455,847         2,237,929
                                                     ----------------     ------------------     -------------
                                                     ----------------     ------------------     -------------
Net cash provided by (used in) financing activities       16,614,134              5,755,847           737,929
                                                     ----------------     ------------------     -------------
                                                     ----------------     ------------------     -------------
Accumulated other comprehensive loss                     (1,154,791)              2,280,475           292,369
Cash and cash equivalents:
Net increase (decrease)                                    4,662,760              5,238,906           671,654
Balance at beginning of period                             1,116,365              5,617,182           720,152
                                                     ----------------     ------------------     -------------
                                                     ----------------     ------------------     -------------
Balance at end of period                                   5,779,125             10,856,088         1,391,806
                                                     ================     ==================     =============

Supplemental cash flow information:
     Cash paid for interest                                        -                     -                   -
     Cash paid for income taxes                                2,300                     -                   -
Non-cash investing and financing activities:
   Receivable from issuance of common stock                  405,500                     -                   -
      Issuance of reserved common stock                       22,832               171,600              22,000
      Issuance of common stock for service                 5,377,209                     -                   -
     Acquisition of subsidiary/associated company:
     Non-cash assets acquired                                      -                     -                   -
     Liabilities assumed in acquisition                            -                     -                   -
     Issuance of common stock                              8,799,350                     -                   -
                                                     ================     =================     ===============

</TABLE>

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

                                       4
<PAGE>



                                       6
<PAGE>

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
                   SIX MONTHS ENDED DECEMBER 30, 2005 AND 2006


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 December 31, 2006, the results of operations for the six months ended
December 31, 2006 and 2005, and the cash flows for the six months ended December
31, 2006 and 2005. 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 six months ended December 31, 2006 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 six months
ended December 31, 2005 and 2006. 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. For the period ended December 31, 2006,
the  company   recorded   Rmb3,516,049   (US$450,776)   as   accumulated   other
comprehensive gain.

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  from the United  States.  With the strong Rmb in the quarter ended
December 31, 2006, Rmb appreciated  from Rmb8.11 to Rmb 7.8 for US$1 at December
31,  2006.  Therefore,  the  exchange  gain  of  Rmb$4.315548  (US$553,275)  was
significant for the the six months ended December 31, 2006.

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 and
has been made at US$1.00 = Rmb7.8. No representation is made that the Rmb
amounts could have been, or could be, converted into US$ at that rate or at any
other rate.

                                       7
<PAGE>

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 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.

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
December 31, 2005 and 2006. Accordingly, no pro forma financial disclosure is
provided herein.


5. RECENT ACCOUNTING PRONOUNCEMENTS

Fair Value of Financial Instruments - The estimated fair values for financial
instruments under SFAS No. 107, "Disclosures about Fair Value of Financial
Instruments", are determined at discrete points in time based on relevant market
information. These estimates involve uncertainties and cannot be determined with
precision. The estimated fair values of the Company's financial instruments,
which includes cash and cash equivalents, accounts receivable and accounts
payable, approximates their carrying value in the financial statements due to
the short-term nature of these financial instruments.

In November 2004, the FASB issued SFAS No. 151, entitled Inventory Costs -- An
Amendment of ARB No. 43, Chapter 4. SFAS No. 151 amends the guidance in ARB No.
43, Chapter 4, entitled Inventory Pricing [June 1953], to clarify the accounting
for "abnormal amounts" of idle facility expense, freight, handling costs, and
wasted material [spoilage]. Before revision by SFAS No. 151, the guidance that
existed in ARB No. 43 stipulated that these type items may be "so abnormal" that
the appropriate accounting treatment would be to expense these costs as incurred
[i.e., these costs would be current-period charges]. SFAS No. 151 requires that
these type items be recognized as current-period charges without regard to
whether the "so abnormal" criterion has been met. Additionally, SFAS No. 151
requires that allocation of fixed production overheads to the costs of
conversion be based on the normal capacity of the production facilities. The
adoption of SFAS 151 did not impact the financial statements.

In December 2004, the FASB issued SFAS No. 152, entitled Accounting for Real
Estate Time-Sharing Transactions -- An Amendment of FASB Statements No. 66 and
67. SFAS No. 152 amends SFAS No. 66 to reference the financial accounting and
reporting guidance for real estate time-sharing transactions that is provided in
AICPA Statement of Position 04-2. SFAS No. 152 also amends SFAS No. 67 to state
that the guidance for (a) incidental operations and (b) costs incurred to sell
real estate projects does not apply to real estate time-sharing transactions.
The accounting for those operations and costs is subject to the guidance of SOP
04-2. This statement is effective for financial statements for fiscal years
beginning after June 15, 2005. The adoption of SFAS 152 did not impact the
financial statements.

                                       8
<PAGE>

In December 2004, the FASB issued SFAS No. 153, entitled Exchanges of
Nonmonetary Assets -- An Amendment of APB Opinion No.29. SFAS No. 153 amends
Opinion 29 to eliminate the exception for nonmonetary exchanges of nonmonetary
assets that do not have commercial substance. A nonmonetary exchange has
commercial substance if the future cash flows of the entity are expected to
change significantly as a result of the exchange. The adoption of SFAS 153 did
not impact the financial statements.

In December 2004, the FASB issued SFAS No. 123 (Revised), entitled Share-Based
Payment. This revised Statement eliminates the alternative to use APB Opinion
No. 25's intrinsic value method of accounting that was provided in SFAS No. 123
as originally issued. Under Opinion 25, issuing stock options to employees
generally resulted in recognition of no compensation cost. This Statement
requires entities to recognize the cost of employee services received in
exchange for awards of equity instruments based on the grant-date fair value of
those awards. For public companies that file as a small business issuer, this
Statement is effective as of the beginning of the first interim or annual
reporting period that begins after December 15, 2005. The adoption of SFAS 123
(Revised) will not impact the financial statements as the Company has not
granted any equity instruments to employees.

In May 2005, the FASB issued SFAS No. 154, entitled Accounting Changes and Error
Corrections--a replacement of APB Opinion No. 20 and FASB Statement No. 3. This
Statement replaces APB Opinion No. 20, Accounting Changes, and FASB Statement
No. 3, Reporting Accounting Changes in Interim Financial Statements, and changes
the requirements for the accounting for and reporting of a change in accounting
principle. This Statement applies to all voluntary changes in accounting
principle. It also applies to changes required by an accounting pronouncement in
the unusual instance that the pronouncement does not include specific transition
provisions. Opinion 20 previously required that most voluntary changes in
accounting principle be recognized by including in net income of the period of
the change the cumulative effect of changing to the new accounting principle.
This Statement requires retrospective application to prior periods' financial
statements of changes in accounting principle, unless it is impracticable to
determine either the period-specific effects or the cumulative effect of the
change. This Statement defines retrospective application as the application of a
different accounting principle to prior accounting periods as if that principle
had always been used or as the adjustment of previously issued financial
statements to reflect a change in the reporting entity. This Statement also
redefines restatement as the revising of previously issued financial statements
to reflect the correction of an error. The adoption of SFAS 154 did not impact
the financial statements.

In February 2006, FASB issued SFAS No. 155, "Accounting for Certain Hybrid
Financial Statements". SFAS No. 155 amends SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities" and SFAS No. 140, "Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities".
SFAS No. 155, permits fair value measurement for any hybrid financial instrument
that contains an embedded derivative that otherwise would require bifurcation,
clarifies which interest-only strips and principal-only strips are not subject
to the requirements of SFAS No. 133, establishes a requirement to evaluate
interest in securitized financial assets to identify interests that are
freestanding derivatives or that are hybrid financial instruments that contain
an embedded derivative requiring bifurcation, clarifies that concentrations of
credit risk in the form of subordination are not embedded derivatives, and
amends SFAS No. 140 to eliminate the prohibition on the qualifying
special-purpose entity from holding a derivative financial instrument that
pertains to a beneficial interest other than another derivative financial
instrument. This statement is effective for all financial instruments acquired
or issued after the beginning of the Company's first fiscal year that begins
after September 15, 2006. Management believes that this statement will not have
a significant impact on the consolidated financial statements.

In March, 2006 FASB issued SFAS 156 "Accounting for Servicing of Financial
Assets" this Statement amends FASB Statement No. 140. Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities, with
respect to the accounting for separately recognized servicing assets and
servicing liabilities. This Statement:

1.     Requires an entity to recognize a servicing asset or servicing
       liability each time it undertakes an obligation to service a
       financial asset by entering into a servicing contract.
2.     Requires all separately recognized servicing assets and
       servicing liabilities to be initially measured at fair value,
       if practicable.
3.     Permits an entity to choose "Amortization method" or "Fair
       value measurement method" for each class of separately
       recognized servicing assets and servicing liabilities:
4.     At its initial adoption, permits a one-time reclassification
       of available-for-sale securities to trading securities by
       entities with recognized servicing rights, without calling
       into question the treatment of other available-for-sale
       securities under Statement 115, provided that the
       available-for-sale securities are identified in some manner as
       offsetting the entity's exposure to changes in fair value of
       servicing assets or servicing liabilities that a servicer
       elects to subsequently measure at fair value.
Requires separate presentation of servicing assets and liabilities subsequently
measured at fair value in the statement of financial position and additional
disclosures for all separately recognized servicing assets and servicing
liabilities.

                                       9
<PAGE>


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.

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, 2005, Rmb was
revalued from Rmb 8.28 to Rmb8.11 for US$1 following the removal of the peg to
the US dollar and pressure for the United States. The Peoples Bank of China also
announced that the Renminbi would be pegged to a basket of foreign currencies,
rather then being strictly tied to the US dollar and would trade within a narrow
0.3% band against this basket of currencies, which is dominated by the US
dollar, Euro, Japanese Yen and South Korean Won, with a smaller proportion made
up of the British pound, Thai Baht and Russian Ruble. No representation is made
that the Rmb amounts have been, or could be, converted into US$ at that rate.
This quotation of exchange rates does not imply free convertibility of Rmb to
other foreign currencies. As at December 31, 2006, the rate of exchange of Rmb
against US$ was around Rmb7.8 for US$1. 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.

                                      10
<PAGE>

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

Intermost Limited, the Company's subsidiary 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%.

The  Company's  consolidated  subsidiaries  organized  in the PRC  [China  E.com
Information  Technology  Ltd.,  IMOT  Information  Technology  (Shenzhen)  Ltd.,
ChinaE.com  Technology  (Shenzhen) Ltd., Shenzhen Bank Union & Jiayin E-commerce
Company  Ltd.,   Intermost  Focus  Advertising  Company  Ltd.,  Shanghai  Newray
Photographic  Equipment  Co., Ltd.,  Shenzhen  Golden Anke  Technology  Ltd. and
Hainan  Concord  Financial   Products   Development  Co.,  Ltd.  and  ChinaE.com
Investment  Consultant  (Shenzhen) Limited] are subject to PRC enterprise income
taxes at a rate of 15%, except for Shanghai Newray  Photographic  Equipment Co.,
Ltd., which is subject to a special PRC enterprise  income tax at a rate of 0.5%
of turnover.

For the six months ended December 31, 2006 and 2005, Shenzhen Golden Anke
Technology Ltd. and Leader Palace Int'l Ltd. generated approximately 49% and 46%
of the Company's consolidated taxable income respectively. 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 six months ended December 31, 2006 and 2005 reflected an effective
rate of approximately 23% and 26%, respectively.

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"),
as a result of receiving 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 the owners with 15.9% in Jiuding Group
and of the 4% minority interest in Shenzhen Golden Anke Technology Ltd.

During the six months ended December 31, 2006, the Company had no sales to
subsidiaries of Jiuding Group.

At December 31, 2006, accounts receivable from subsidiaries of Jiuding Group
aggregated RMB37,230,124 (US$4,773,093) or 71% 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, Consultancy fee, and Photographic
business. E-Commerce Solutions comprises revenue from web-site development
contracts and maintenance contracts. Digital security imaging system consists of
sales of surveillance system and maintenance, 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. As
all of the company's customers are located in PRC, and the company revenues are
generated in PRC, no geographical Segment information is presented. Segment
information for the six months period ended December 31, 2006 is as follows:

                                       11
<PAGE>

  (a) Net revenues:

                                              Six Months Ended December 31, 2006
                                                     Rmb                 US$

         E-commerce solutions                          355,563          45,585
         Photographic business                          12,821           1,644
         Digital security imaging system             3,795,327         486,580
         VOIP call minutes                           3,573,599         458,154
                                                  -------------   -------------
                                                     7,737,310         991,963
                                                  =============   =============


  (b) Net Profit / (Loss):

                                              Six Months Ended December 31, 2006
                                              ----------------------------------
                                                         Rmb              US$

                E-commerce solutions                (1,850,271)       (237,214)
                Consultancy fee                     (7,390,199)       (947,461)
                Photographic business                 (108,238)        (13,877)
                Digital security imaging system         82,995          10,640
                VOIP call minutes                       60,236           7,722
                Corporate expenses                   1,787,847         229,211
                                                 -------------     -----------
                                                 -------------     -----------
                                                    (7,417,630)       (950,979)
                                                 =============     ===========

(c) Assets:

                                                      As at December 31, 2006

                                                     Rmb               US$

                E-commerce solutions                   801,756          102,789
                Digital security imaging system     92,495,997       11,858,462
                Photographic business                1,983,965          254,355
                Consultancy fee                      3,373,843          432,544
                VOIP call minutes                    2,751,444          352,749
                Corporate expenses                  49,220,965        6,310,380
                                                 --------------     -----------
                                                 --------------     -----------
                                                   150,627,970       19,311,279
                                                 ==============     ===========

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


         (d) Other items:


                                              Six Months Ended December 31, 2006
                                              ----------------------------------
                                                     Rmb              US$
                Depreciation:
                    E-commerce solutions               100,957          12,943
                    Photographic business                  281              36
                    Consultancy fee                      9,057           1,161
                    Corporate expenses                   5,466             701
                                                  -------------     -----------
                                                  -------------     -----------
                                                       115,761          14,841
                                                  =============     ===========


                Expenditures for fixed assets:
                    E-commerce solutions               178,800          22,923
                    Corporate assets                         -               -
                                                  -------------     -----------
                                                  -------------     -----------

                                                       178,800          22,923
                                                  =============     ===========

                                       12
<PAGE>

10. PENDING TRANSACTIONS

On September 30, 2006, the Board of director of IMOT resolved to take action to
terminate the operation of Shanghai Newray. On November 2, 2006, the company had
set up a liquidation working team to take over the operation and commence the
necessary procedures to voluntarily liquidate the company.

On December 20, 2006, the Company entered into an agreement (the "Subscription
Agreement") with an independent third party for acquisition of the Company's
common stock of 10,000,000 shares at $0.05 per share of $500,000. On December
23, 2006, the Company received the subscription money authorized the issuance of
10,000,000 shares of common stock. The subscription money was received and the
share was not yet delivered.

On December 29, 2006, the Company entered into an agreement (the "Subscription
Agreement") with an independent third party for acquisition of the Company's
common stock of 12,000,000 shares at $0.05 per share of $600,000. On December
29, 2006, the Company received the subscription money authorized the issuance of
12,000,000 shares of common stock. The subscription money was received and the
share was not yet delivered.

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

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's plan is to take advantage of China's
economic growth to expand its existing businesses and, possibly, in the future,
to sell its products and services outside of 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. In fiscal 2007, the Company incorporated Leader Palace International
Ltd. ("Leader Palace") engaged in the business in the field of Information
Communication Technology ("ICT"), a telecom division which particularly in the
whole sale of VOIP call minutes. 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 49% 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 which accounted for over 46% of the Company's revenue. The balance
of the Company's revenues are generated primarily by other subsidiaries, China
E.com Information Technology Ltd. ("China E.com"), which distributes licenses
for Chinese language translation software and offers web design and hosting
services.

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.

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, 2005, Rmb was
revalued from Rmb 8.28 to Rmb8.11 for US$1 following the removal of the peg to
the US dollar and pressure for the United States. The Peoples Bank of China also
announced that the Renminbi would be pegged to a basket of foreign currencies,
rather then being strictly tied to the US dollar and would trade within a narrow
0.3% band against this basket of currencies, which is dominated by the US
dollar, Euro, Japanese Yen and South Korean Won, with a smaller proportion made
up of the British pound, Thai Baht and Russian Ruble. No representation is made
that the Rmb amounts have been, or could be, converted into US$ at that rate.
This quotation of exchange rates does not imply free convertibility of Rmb to
other foreign currencies. As at December 31, 2006, the rate of exchange of Rmb
against US$ was around Rmb 7.8 for US$1. 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.

                                       13
<PAGE>


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 plan;

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 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 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;

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. 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 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 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.

                                       14
<PAGE>

Results of Operations - Three Months Ended December 31, 2006 and 2005

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 December 31, 2006 consisted primarily of
the sales of digital security imaging systems and wholesale of VOIP call minutes
by the Company's subsidiaries, Shenzhen Golden Anke and Leader Palace. The
balance of the Company's revenues was derived from other subsidiary, ChinaE.com
Tech, which provide e-commerce solutions. Net revenues for the three months
ended December 31, 2005 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.

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

                                Net Revenues          Percent of Net Revenues
                     Three Months Ended December 31,Three Months Ended December 31,
                             2005         2006          2005          2006
                             ----         ----          ----          ----
                             US$           US$
<S>                       <C>           <C>          <C>              <C>

E-commerce solutions         53,229      23,064           1.4%            3.3%
Sales of photographic
  Equipment                  56,720           -           1.5%            0.0%
Sales of digital security
  imaging system          3,639,903     219,201          97.1%           31.3%
VOIP                              -     458,154           0.0%           65.4%
Consultancy fee                 464           -           0.0%            0.0%
                          ----------  ----------   ------------    ------------
                          ----------  ----------   ------------    ------------
Total                     3,750,316     700,419         100.0%          100.0%
                          ==========  ==========   ============    ============
</TABLE>


Total net revenues decreased by 81% to $700K during the three months ended
December 31, 2006, as compared to $3,750K during the three months ended December
31, 2005. The decrease in total net revenues was primarily attributable to
decrease in sales of digital security imaging systems made through the Company's
subsidiary, Shenzhen Golden Anke, and sales of photographic equipment made
through the Company's subsidiary, Shanghai Newray. Revenues attributable to
e-commerce solutions decreased by $30K or 57%, to $23K during the three months
ended December 30, 2006, as compared to $53K earned during the three months
ended December 31,2005. During the three months ended December 31, 2006, the
Company generated $458K revenue through its newly formed subsidiary, Leader
Palace which commenced business in October 2006. With that additional revenue,
the net revenues increased by 149% from $280K for the three months ended
September 30, 2006 to $700K for the three months ended December 31, 2006.

Approximately 31% and 65% of the Company's net revenues for the three months
ended December 31, 2006 aggregating $219 and 458K were attributable to the sales
of digital security imaging systems and VOIP call minutes made through Shenzhen
Golden Anke and Leader Palace respectively.

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, 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:

                                       15
<PAGE>

<TABLE>


                                     Cost of Revenues           Percent of Net Revenues
                              Three Months Ended December 31, Three Months Ended December 31,
                                   2005             2006           2005             2006
                                   ----             ----           ----             ----
                                    US$              US$
<S>                            <C>                <C>            <C>              <C>

Engineering/technician
  Salaries                         22,982           31,257         0.6%             4.4%
Cost of photographic
  Equipment                        51,423                -         1.4%             0.0%
Cost of digital security
  imaging system                2,702,824          190,367        72.1%            27.2%
VOIP                                    -          448,335                         64.0%
Depreciation                          922            4,483         0.0%             0.6%
Other                              11,544           10,224         0.3%             1.5%
                             -------------   --------------   ----------   --------------
                             -------------   --------------   ----------   --------------
Total                           2,789,695          684,466        74.4%            97.7%
                             =============   ==============   ==========   ==============

</TABLE>

Cost of revenues decreased by 75% to $684K or 97.7% of net revenues for the
three months ended December 31, 2006, as compared to $2,790K or 74.4% of net
revenues for the three months ended December 31, 2005.

The principal components of cost of revenues during the three months ended
December 31, 2006 were engineer and technician salaries, costs of digital
security imaging systems hardware, cost of VOIP calls 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 2006 as compared to 2005 was principally
attributable to the decrease in sales of the Company's digital security imaging
systems and photographic equipment.

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:
<TABLE>


                                        SG&A Expense              Percent of Net Revenue
                              Three Months Ended December 31, Three Months Ended December 31,
                                  2005            2006             2005               2006
                                  ----            ----             ----               ----
                                  US$              US$
<S>                           <C>              <C>            <C>                <C>

Sales and marketing salaries
  and commissions                 28,710          9,203           0.8%               1.3%
Advertising and other sales
  and marketing expenses          32,699          3,794           0.9%               0.5%
Rentals                           17,650         19,646           0.5%               2.8%
Administrative salaries           35,164         36,815           0.9%               5.3%
Corporate overhead               312,390        168,197           8.3%              24.0%
                             ------------   ------------   ------------     --------------
                             ------------   ------------   ------------     --------------
Total                            426,613        237,655          11.4%              33.9%
                             ============   ============   ============     ==============
</TABLE>

For the three months ended December 31, 2006, SG&A expense decreased 44% to
($238K), as compared to $427K for the three months ended December 31, 2005.

The  decrease  in SG&A  expense  in 2006 as  compared  to 2005  was  principally
attributable to a decrease in corpoate overhead which included professional fees
and overseas travel  expenses.  During the three months ended December 31, 2006,
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.
The increase in administrative  salary was mainly attributable to the employment
of executive officers in the management team.

Income Taxes

Income taxes for the three months ended December 31, 2006 were $3K and $137K for
the three months ended December 31, 2005.

                                       16
<PAGE>

Other Items

Minority interests reflect the minority shareholders' proportionate interests in
the net income (loss) of Intermost Focus Advertising, Shanghai Newray, Shenzhen
Golden Anke and Hainan Development. Minority interests were $8K for the three
months ended December 31, 2006, as compared to minority interests of $393K for
the three months ended December 31, 2005.

Net Income / (Loss)

The Company had net income of $327K during the three months ended December 31,
2006, as compared to a net income of $340K during the three months ended
December 31, 2005. The income was due to the change of exchange rate of Rmb to
HK$ and US$ and the Company's sales mix whereas the new business telecom
division generated a substantial amount of revenue during that three months
ended December 31, 2006.

Results of Operations - Six Months Ended December 31, 2006 and 2005

Net Revenues

Net revenues for the six months ended December 31, 2006 consisted primarily of
the sales of digital security imaging systems and VOIP call minutes by the
Company's subsidiaries, Shenzhen Golden Anke and Leader Palace. The balance of
the Company's revenues was derived from another subsidiaries, China.E.com Tech
which provides e-commerce solutions. Net revenues for the six months ended
December 31, 2005 consisted primarily of the sales of photographic equipment,
sales of digital security imaging a systems and 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:
<TABLE>

                                             Net Revenues                     Percent of Net Revenues
                                 -------------------------------------  -------------------------------------
                                 -------------------------------------  -------------------------------------
                                    Six Months Ended December 31,          Six Months Ended December 31,
                                 -------------------------------------  -------------------------------------
                                 -------------------------------------  -------------------------------------
                                        2005                2006              2005                2006
                                        ----                ----              ----                ----
                                        US$                 US$
<S>                               <C>                    <C>               <C>                  <C>


E-commerce solutions                    122,792            45,585                1.7%               4.6%
Sales of photographic equipment
                                         56,720             1,644                0.8%               0.2%
Sales of digital security
  imaging system                      7,067,793           486,580               97.5%              49.0%
VOIP                                          -           458,154                   -              46.2%
Consultancy fee                             925                 -                0.0%               0.0%
                                 ---------------   ---------------  ------------------  -----------------
                                 ---------------   ---------------  ------------------  -----------------
Total                                 7,248,230           991,963              100.0%             100.0%
                                 ===============   ===============  ==================  =================
</TABLE>

Total net revenues decreased by 86% to $992K during the six months ended
December 31, 2006, as compared to $7,248K during the six months ended December
31, 2005. The decrease in total net revenues was attributable to the sales of
digital security imaging systems made through the Company's subsidiary, Shenzhen
Golden Anke. Revenues from the sales of photographic equipment made by the
Company's subsidiary, Shanghai Newray, decreased by $55K or 97% during the six
months ended December 31, 2006 to $2K, as compared to $57K during the six months
ended December 31, 2005. Revenues attributable to e-commerce solutions decreased
by $77K or 63%, to $46K during the six months ended December 31, 2006, as
compared to $123K during the six months ended December 31, 2005.

Approximately 49% and 46% of the Company's net revenues during the six months
ended December 31, 2006 aggregating $487K and 458K were attributable to sales of
digital security imaging systems and VOIP call minutes made through Shenzhen
Golden Anke and Leader Palace respectively.


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 relationship with its customers is satisfactory. The
loss of any of the Company's significant customers, 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.

                                       17
<PAGE>

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:
<TABLE>

                                           Cost of Revenues                   Percent of Net Revenues
                                 -------------------------------------  -------------------------------------
                                 -------------------------------------  -------------------------------------
                                    Six Months Ended December 31,          Six Months Ended December 31,
                                 -------------------------------------  -------------------------------------
                                 -------------------------------------  -------------------------------------
                                        2005                2006              2005                2006
                                        ----                ----              ----                ----
                                        US$                 US$
<S>                                  <C>                 <C>                <C>                 <C>

Engineering/technician salaries
                                         43,845            63,775                0.6%               6.4%
Cost of photographic equipment
                                         51,423             1,814                0.7%               0.2%
Cost of digital security
  imaging system                      5,111,380           412,145               70.5%              41.5%
VOIP call minutes                             -           448,335                0.0%              45.2%
Depreciation                              1,746             8,936                0.1%               0.9%
Other                                    26,937            20,793                0.4%               2.1%
                                 ---------------   ---------------  ------------------  -----------------
                                 ---------------   ---------------  ------------------  -----------------
Total                                 5,235,331           955,798               72.3%              96.3%
                                 ===============   ===============  ==================  =================
</TABLE>

Cost of revenues decreased by 82% to $956K or 96.3% of net revenues for the six
months ended December 31, 2006, as compared to $5,253K or 72.3% of net revenues
during the six month period ended December 31, 2005.

The principal components of cost of revenues during the six months ended
December 31, 2006 were engineer and technician salaries, costs of photographic
equipment, digital security imaging systems hardware and cost 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 total and as a percentage of revenues, in
2006 as compared to 2005 was principally attributable to the decrease in sales
of the Company's digital security imaging systems and photographic equipment.

Selling, General and Administrative Expense

Selling, general and administrative expense ("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:
<TABLE>

                                             SG&A Expense                      Percent of Net Revenue
                                 -------------------------------------  -------------------------------------
                                 -------------------------------------  -------------------------------------
                                    Six Months Ended December 31,          Six Months Ended December 31,
                                 -------------------------------------  -------------------------------------
                                 -------------------------------------  -------------------------------------
                                        2005                2006              2005                2006
                                        ----                ----              ----                ----
                                        US$                 US$
<S>                                    <C>                <C>                <C>                 <C>

Sales and marketing salaries
  and commissions                        51,567            27,545                0.7%               2.8%
Advertising and other sales and
  marketing expenses                     51,849            11,174                0.7%               1.1%
Rentals                                  32,495            43,075                0.4%               4.3%
Administrative salaries                  68,466            92,458                0.9%               9.3%
Corporate overhead                      754,341           418,103               10.4%              42.1%
                                 ---------------   ---------------  ------------------  -----------------
Total                                   961,721           592,355               13.1%              59.6%
                                 ===============   ===============  ==================  =================
</TABLE>

                                       18
<PAGE>

For the six months ended December 31, 2006, SG&A expense decreased 38% to $592K,
as compared to $962K for the six months ended December 31, 2005.

The  decrease  in SG&A  expense  in 2006 as  compared  to 2005  was  principally
attributable to an decrease in corporate overhead,  which included non-recurring
various expenses for compensation and commission for a private placement in 2005
The decrease in sales and marketing  salaries was due to the Company's  reducing
its sales team as a result of management's reassessment of the manpower required
to generate  sales and  services to the  Company's  customers.  The  increase in
administrative  salaries  was  mainly  attributable  to  the  employment  of  an
executive officer on the management team.

Income Taxes

Income taxes for the six months ended December 31, 2006 were $8K and $293K for
the six months ended December 31, 2005.

Other Items

Minority interests reflect the minority shareholders' proportionate interests in
the net income (loss) of Intermost Focus Advertising, Shanghai Newray, Shenzhen
Golden Anke and Hainan Development. Minority interests were $6K for the six
months ended December 31, 2006, as compared to minority interests of $835K for
the six months ended December 31, 2005.

Equity in earnings (loss) of associated companies were ($3K) and $50K for the
six months ended December 31, 2006 and 2005 respectively, representing the
Company's proportionate share of the loss of Hainan Exchange Center.

Net Income / (Loss)

The Company had net loss of $951K during the six months ended December 31, 2006,
as compared to a net income of $196K during the six months ended December 31,
2005. The loss was including the impairment of goodwill of the subsidiary Hainan
Development of $932K. Without this exceptional item, the net operational loss
was $19K, which is mainly due to the decrease in sales from subsidiary Shenzhen
Golden Anke.

Liquidity and Capital Resources -December 31, 2006

At December 31, 2006, the Company had cash and cash equivalents of $1,392K and
working capital of $13,585K, as compared to $693K of cash and cash equivalents
and $10,632K of working capital at June 30, 2006.

Net cash used in operating activities was $488K for the six months ended
December 31, 2006, as compared to net cash used in operating activities of $660K
for the six months ended December 31, 2005. Net cash used in operating
activities in 2006 as compared to 2005 as a result of increase in other
receivables and inventories. Our use of cash was partially offset by non-cash
charges, depreciation expense in the amount of $15K, amortization of intangible
assets in the amount of $17K and impairment of goodwill in the amount of $932K.

Net cash provided by investing activities was $129K for the six months ended
December 31, 2006, consisting of $152K repaid from the short-term loan and $23K
for the purchase of plant and equipment. Net cash used in investing activities
was $671K for the six months ended December 31, 2005, $62K of funds from the
short-term investment, $600K of funds from the short-term loan, and $5K and $4K
for the purchase of intangible assets and the purchase of plant and equipment
respectively.

Net cash provided by financing activities was $738K in net proceeds from the
issuance of common stock and security bond for the six months ended December 31,
2006. During the six months ended December 31, 2005, net cash provided by
financing activities was $2,048K in net proceeds from issuance of common stock.

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 VOIP call
minutes through Leader Palace 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.

                                       19
<PAGE>

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

On December 8, 2006,the Company's subsidiary, IMOT Information Technology
(Shenzhen) Co Ltd signed an agreement and will expend approximately $800K to
replace the formerly issued 2,470,355 shares of the Company's common stock to
gain a 15% shareholding position in the Shenzhen International Hi-Tech Property
Right Exchange Center. In December 2004, IMOT Information Technology exchanged
2,470,355 share of the Company's common stock with China Merchants Technology
Investment (Shenzhen) Co Ltd for a 15% shareholding position in the Shenzhen
International Hi-Tech Property Right Exchange Center. In consideration of recent
developments, IMOT Information decided to replace the 2,470,355 shares of the
Company's common stock at a cost of approximately $800K. Therefore, IMOT
Information unconditionally controls a 15% shareholding position in the Shenzhen
International Hi-Tech Property Right Exchange Center. The payment was fully
settled on January 30, 2007. At December 31, 2006, the Company does not have any
other 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 December 31, 2006.

Off-Balance Sheet Arrangements

On January 23, 2007, IMOT Information received Rmb828,768.20 (approximately
$106,252) as dividend for the period ended December 31, 2006 from the Shenzhen
International Hi-Tech Property Right Exchange Center, in which IMOT Information
has a 15% shareholding position. The Company does not have any other
transactions, obligations or relationships that could be considered off-balance
sheet arrangements at December 31, 2006.


RECENT ACCOUNTING PRONOUNCEMENTS

Fair Value of Financial Instruments - The estimated fair values for financial
instruments under SFAS No. 107, "Disclosures about Fair Value of Financial
Instruments", are determined at discrete points in time based on relevant market
information. These estimates involve uncertainties and cannot be determined with
precision. The estimated fair values of the Company's financial instruments,
which includes cash and cash equivalents, accounts receivable and accounts
payable, approximates their carrying value in the financial statements due to
the short-term nature of these financial instruments.

In November 2004, the FASB issued SFAS No. 151, entitled Inventory Costs -- An
Amendment of ARB No. 43, Chapter 4. SFAS No. 151 amends the guidance in ARB No.
43, Chapter 4, entitled Inventory Pricing [June 1953], to clarify the accounting
for "abnormal amounts" of idle facility expense, freight, handling costs, and
wasted material [spoilage]. Before revision by SFAS No. 151, the guidance that
existed in ARB No. 43 stipulated that these type items may be "so abnormal" that
the appropriate accounting treatment would be to expense these costs as incurred
[i.e., these costs would be current-period charges]. SFAS No. 151 requires that
these type items be recognized as current-period charges without regard to
whether the "so abnormal" criterion has been met. Additionally, SFAS No. 151
requires that allocation of fixed production overheads to the costs of
conversion be based on the normal capacity of the production facilities. The
adoption of SFAS 151 did not impact the financial statements.

In December 2004, the FASB issued SFAS No. 152, entitled Accounting for Real
Estate Time-Sharing Transactions -- An Amendment of FASB Statements No. 66 and
67. SFAS No. 152 amends SFAS No. 66 to reference the financial accounting and
reporting guidance for real estate time-sharing transactions that is provided in
AICPA Statement of Position 04-2. SFAS No. 152 also amends SFAS No. 67 to state
that the guidance for (a) incidental operations and (b) costs incurred to sell
real estate projects does not apply to real estate time-sharing transactions.
The accounting for those operations and costs is subject to the guidance of SOP
04-2. This statement is effective for financial statements for fiscal years
beginning after June 15, 2005. The adoption of SFAS 152 did not impact the
financial statements.

In December 2004, the FASB issued SFAS No. 153, entitled Exchanges of
Nonmonetary Assets -- An Amendment of APB Opinion No.29. SFAS No. 153 amends
Opinion 29 to eliminate the exception for nonmonetary exchanges of nonmonetary
assets that do not have commercial substance. A nonmonetary exchange has
commercial substance if the future cash flows of the entity are expected to
change significantly as a result of the exchange. The adoption of SFAS 153 did
not impact the financial statements.

In December 2004, the FASB issued SFAS No. 123 (Revised), entitled Share-Based
Payment. This revised Statement eliminates the alternative to use APB Opinion
No. 25's intrinsic value method of accounting that was provided in SFAS No. 123
as originally issued. Under Opinion 25, issuing stock options to employees
generally resulted in recognition of no compensation cost. This Statement
requires entities to recognize the cost of employee services received in
exchange for awards of equity instruments based on the grant-date fair value of
those awards. For public companies that file as a small business issuer, this
Statement is effective as of the beginning of the first interim or annual
reporting period that begins after December 15, 2005. The adoption of SFAS 123
(Revised) will not impact the financial statements as the Company has not
granted any equity instruments to employees.

                                       20
<PAGE>

In May 2005, the FASB issued SFAS No. 154, entitled Accounting Changes and Error
Corrections--a replacement of APB Opinion No. 20 and FASB Statement No. 3. This
Statement replaces APB Opinion No. 20, Accounting Changes, and FASB Statement
No. 3, Reporting Accounting Changes in Interim Financial Statements, and changes
the requirements for the accounting for and reporting of a change in accounting
principle. This Statement applies to all voluntary changes in accounting
principle. It also applies to changes required by an accounting pronouncement in
the unusual instance that the pronouncement does not include specific transition
provisions. Opinion 20 previously required that most voluntary changes in
accounting principle be recognized by including in net income of the period of
the change the cumulative effect of changing to the new accounting principle.
This Statement requires retrospective application to prior periods' financial
statements of changes in accounting principle, unless it is impracticable to
determine either the period-specific effects or the cumulative effect of the
change. This Statement defines retrospective application as the application of a
different accounting principle to prior accounting periods as if that principle
had always been used or as the adjustment of previously issued financial
statements to reflect a change in the reporting entity. This Statement also
redefines restatement as the revising of previously issued financial statements
to reflect the correction of an error. The adoption of SFAS 154 did not impact
the financial statements.

In February 2006, FASB issued SFAS No. 155, "Accounting for Certain Hybrid
Financial Statements". SFAS No. 155 amends SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities" and SFAS No. 140, "Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities".
SFAS No. 155, permits fair value measurement for any hybrid financial instrument
that contains an embedded derivative that otherwise would require bifurcation,
clarifies which interest-only strips and principal-only strips are not subject
to the requirements of SFAS No. 133, establishes a requirement to evaluate
interest in securitized financial assets to identify interests that are
freestanding derivatives or that are hybrid financial instruments that contain
an embedded derivative requiring bifurcation, clarifies that concentrations of
credit risk in the form of subordination are not embedded derivatives, and
amends SFAS No. 140 to eliminate the prohibition on the qualifying
special-purpose entity from holding a derivative financial instrument that
pertains to a beneficial interest other than another derivative financial
instrument. This statement is effective for all financial instruments acquired
or issued after the beginning of the Company's first fiscal year that begins
after September 15, 2006. Management believes that this statement will not have
a significant impact on the consolidated financial statements.

In March, 2006 FASB issued SFAS 156 "Accounting for Servicing of Financial
Assets" this Statement amends FASB Statement No. 140. Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities, with
respect to the accounting for separately recognized servicing assets and
servicing liabilities. This Statement:

Requires an entity to recognize a servicing  asset or servicing  liability  each
time it undertakes an obligation to service a financial asset by entering into a
servicing  contract.  Requires all separately  recognized  servicing  assets and
servicing liabilities to be initially measured at fair value, if practicable.

Permits an entity to choose  "Amortization  method" or "Fair  value  measurement
method" for each class of separately  recognized  servicing assets and servicing
liabilities:  At its initial adoption,  permits a one-time  reclassification  of
available-for-sale  securities to trading securities by entities with recognized
servicing  rights,   without  calling  into  question  the  treatment  of  other
available-for-sale   securities   under   Statement   115,   provided  that  the
available-for-sale  securities  are  identified in some manner as offsetting the
entity's  exposure  to changes in fair value of  servicing  assets or  servicing
liabilities  that a  servicer  elects to  subsequently  measure  at fair  value.
Requires separate presentation of servicing assets and liabilities  subsequently
measured at fair value in the  statement  of financial  position and  additional
disclosures  for  all  separately  recognized  servicing  assets  and  servicing
liabilities.


ITEM 3. CONTROLS AND PROCECURES

(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.

     On January 3, 2007,  the  management  of the Company take legal  proceeding
against the former shareholders of Shanghai Newray  Photographic  Equipment Co.,
Ltd. in the Jiading District People's Court, Shanghai, China

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

         On November 9, 2006, we authorize the issuance of 20,000,000 shares of
common stock with a value of $0.05 per share to First Federal Holdings Limited
for private placement. The stock was issued in reliance on the exemption from
registration provided by Section 4(2) of the Securities Act of 1933. There was
no general solicitation or advertising engaged in by the Company in making this
offering and the offeree and the parties they designated to receive the stock
were accredited investor.

         On November 27, 2006, we authorize the issuance of 20,000,000 shares of
common stock with a value of $0.05 per share to First Federal Holdings Limited
for private placement. The stock was issued in reliance on the exemption from
registration provided by Section 4(2) of the Securities Act of 1933. There was
no general solicitation or advertising engaged in by the Company in making this
offering and the offeree and the parties they designated to receive the stock
were accredited investor.

         On November 27, 2006, we authorize the issuance of 80,000 shares of
common stock with a value of $0.05 per share to Ren Shun Biao for private
placement. The stock was issued in reliance on the exemption from registration
provided by Section 4(2) of the Securities Act of 1933. There was no general
solicitation or advertising engaged in by the Company in making this offering
and the offeree and the parties they designated to receive the stock were
accredited investor.

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.

         Not applicable


                                       22
<PAGE>

Item 6. Exhibits

2.1     Articles of Merger (1)
3.1     Articles of Incorporation (1)
3.2     Bylaws (11)
10.1    Employment Agreement, dated March 12, 2004, between Intermost
        Corporation and Andy Lin (2)
10.2    Amendment to Employment Agreement dated March 12, 2004 between
        Intermost Corporation and Andy Lin(11)
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   Sales and Purchase Agreement between IMOT Information Technology
       (Shenzhen) Ltd. And Huang Xiujuan dated May 23, 2006 (10)
16.1    Letter on Change in Certifying Accountant (9)
21.1    Significant Subsidiaries (11)
31.1*   Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)
        and 15d-14(a)
31.2*   Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) and
        15(d)-14(a)
32.1*   Certification Pursuant to 18 U.S.C. Section 1350, as adopted
        pursuant to Section  906 of the Sarbanes-Oxley Act of 2002
32.2*   Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
        Section 906 of the Sarbanes-Oxley Act of 2002

                                       23
<PAGE>


(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.


(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 Current
Report on Form 8-K filed with the SEC on February 14, 2003.


(8) Incorporated by reference to the exhibit filed with the Registrant's Proxy
Statement filed with the SEC on January 6, 2004.


(9) Incorporated by reference to the exhibit filed with the Registrant's Current
Report on Form 8-K filed with the SEC on March 8, 2004.


(10) Incorporated by reference to the exhibit filed with the Registrant's
Current Report on Form 8-K filed With the SEC on July 27, 2006

(11) Incorporated by reference tothe exhibits filed with the Registrants Form
10-QSB for the quarterly period ended September 30, 2006.


                                       24
<PAGE>



                                   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.

                                       INTERMOST CORPORATION

                                       (Registrant)


Date:   February 14, 2007           By:  /s/ DENG XIANG XIONG
                                         -----------
                                         Deng Xiang Xiong
                                         Acting Chief Executive Officer



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

                                       25
<PAGE>

                                                                    Exhibit 31

                                  CERTIFICATION

We, Deng Xiang Xiong, Acting Chief Executive Officer and Chen Syh Kwan, Chief
Financial Officer of Intermost Corporation, certify that:

1. We have reviewed this quarterly report on Form 10-QSB of Intermost
Corporation (the "Company") for the six months ended December 31, 2006;

2. Based on our knowledge, this report does not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;

3. Based on our knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the Company as of,
and for, the periods presented in this report;

4. We are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
Company and I have:

     (a) Designed such disclosure controls and procedures, or caused such
         disclosure controls and procedures to be designed under my supervision,
         to ensure that material information relating to the Company, including
         its consolidated subsidiaries, is made known to me by others within
         those entities, particularly during the period in which this report is
         being prepared;

     (b) Evaluated the effectiveness of the Company's disclosure controls and
         procedures and presented in this report my conclusions about the
         effectiveness of the disclosure controls and procedures, as of the end
         of the period covered by this report based on such evaluation; and

     (c) Disclosed in this report any change in the Company's internal control
         over financial reporting that occurred during the Company's most recent
         fiscal quarter that has materially affected, or is reasonably likely to
         materially affect, the Company's internal control over financial
         reporting; and

5.   We have disclosed, based on my most recent evaluation of internal control
     over financial reporting, to the Company's auditors and the audit committee
     of the Company's board of directors (or persons performing the equivalent
     functions):

     (a) All significant deficiencies and material weaknesses in the design or
         operation of internal control over financial reporting which are
         reasonably likely to adversely affect the Company's ability to record,
         process, summarize and report financial information; and

     (b) Any fraud, whether or not material, that involves management or other
         employees who have a significant role in the Company's internal
         controls over financial reporting.

Date:   February 14, 2007                        /s/ DENG XIANG XIONG
                                                 -------------------------------
                                                 Deng Xiang Xiong
                                                 Acting Chief Executive Officer


                                                /s/ CHEN SYH KWAN
                                                 -------------------------------
                                                Chen Syh Kwan
                                                Chief Financial Officer


                                       26
<PAGE>


                                                                    Exhibit 32

                                  CERTIFICATION
                             18 U.S.C. SECTION 1350
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, and in connection with the filing by Intermost
Corporation (the "Company") with the Securities and Exchange Commission of its
Quarterly Report on Form 10-QSB for the six months ended December 31, 2006 (the
"Report"), the undersigned, Deng Xiang Xiong, Acting Chief Executive Officer and
Chen Syh Kwan, Chief Financial Officer of the Company, does hereby certify, that
to the best of their knowledge:

         (1) The Report fully complies with the requirements of Section 13(a) or
         15(d) of the Securities Exchange Act of 1934; and

         (2) The information contained in the Report fairly presents, in all
         material respects, the financial condition and results of operations of
         the Company.

A signed original of this written statement required by Section 906 has been
provided to the Company and will be retained by the Company and furnished to the
Securities and Exchange Commission or its staff upon request.


Date:   February 14, 2007                    /s/ DENG XIANG XIONG
                                             -----------------------------------
                                             Deng Xiang Xiong
                                             Acting Chief Executive Officer




                                             /s/ CHEN SYH KWAN
                                             -----------------------------------
                                             Chen Syh Kwan
                                             Chief Financial Officer