UNITED
        STATES
 SECURITIES
        AND EXCHANGE COMMISSION
 WASHINGTON,
        D.C. 20549
  FORM
        10-KSB
 
 
 ANNUAL
        REPORT PURSUANT TO SECTION 13 OR 15(d) OF
 THE
        SECURITIES EXCHANGE ACT OF 1934
 
 For
        the
        fiscal year ended June 30, 2007
 
 Commission
        File Number 000-51503
 
 Scrap
        China Corporation
 (Name
        of
        Small business Issuer in its charter)
 
 Utah
              
              81
                  - 0674073(State
                  or other jurisdiction of incorporation or organization)
              
              (I.R.S.  Employer
                  Identification No.)
 
 
 175
                  East 400 South Suite 900, Salt Lake City, Utah
              84111
              801-531-0404(Address
                  of principal executive offices)
              (Zip
                  Code)
              (Issuer's
                  telephone number)
 
 www.scrapchina.com
 (Web
        Address)
 Securities
          registered pursuant to Section 12(g) of the Exchange Act:
 Common
          Stock, $0.001 par value
 
 Check
          whether the issuer (1) has filed all reports required to be filed by Section
          13
          or 15(d) of the Securities Exchange Act of 1934 during the preceding 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  [
          ]
 
 Check
          if
          there is no disclosure of delinquent filers pursuant to Item 405 of Regulation
          S-B contained in this form, and no disclosure will be contained, to the
          best of
          registrant's knowledge, in definitive proxy or any amendment to this Form
          10-KSB.  (x)
 
 State
          issuer's revenues for its most recent fiscal year: $0
 
 State
          the
          aggregate market value of the voting stock held by non-affiliates computed
          by
          reference to the price at which the stock was sold, or the average bid
          and asked
          price of such stock, as of a specified date within the past 60 days. No
          Market
          Exists
 
 Indicate
          by check mark whether the registrant is a shell company (as defined in
          Rule
          12b-2 of the Exchange Act). Yes [ x ]    No [ ]
 
 State
          the
          number of shares outstanding of the issuer’s classes of common equity, as of the
          latest practicable date:  August 29, 2007 – 7,710,843
  
  **SCRAP
        CHINA CORPORATION**
 **INDEX**
 
 **Table
        of Contents**
 
 **Part
                  One**Item
                  1:
              Description
                  of Business
              2Item
                  2:
              Description
                  of Property
              4Item
                  3:
              Legal
                  Proceedings
              4Item
                  4:
              Submission
                  of Matters to a Vote of Security Holders
              5**Part
                  Two**Item
                  5:
              Market
                  for Common Equity and Related Stockholder Matters
              5Item
                  6:
              Managements
                  Discussion and Analysis or Plan of Operation
              6Item
                  7:
              Financial
                  Statements
              7Item
                  8:
              Changes
                  In and Disagreements with Accountants on Accounting and Financial
                  Disclosure
              8Item
                  8A:
              Controls
                  and Procedures
              8Item
                  8B:
              Other
                  Information
              8**Part
                  Three**Item
                  9:
              Directors
                  and Executive Officers, Promoters and Control Persons: Compliance
                  with
                  Section 16(a) of the Exchange Act
              8Item
                  10:
              Executive
                  Compensation
              10Item
                  11.
              Security
                  Ownership of Certain Beneficial Owners and Management and Related
                  Stockholder  Matters
              11Item
                  12:
              Certain
                  Relationships and related transactions
              11Item
                  13:
              Description
                  of Exhibits
              12Item
                  14:
              Principal
                  Accountant Fees and Services
              13
 
 
 
 
 
 
 
 
 
 
 
  1
  **FORWARD
        LOOKING STATEMENTS**
 
 Scrap
        China Corporation (the "Company", "we" or "us") cautions readers that certain
        important factors may affect our actual results and could cause such results
        to
        differ materially from any forward-looking statements that may have been
        made in
        this Form 10-KSB or that are otherwise made by or on behalf of us. For this
        purpose, any statements contained in the Form 10-KSB that are not statements
        of
        historical fact may be deemed to be forward-looking statements.
 
 Without
        limiting the generality of the foregoing, words such as "may," "expect,"
        "believe," "anticipate," "intend," "could," "estimate," "plan" or “continue" or
        the negative other variations thereof or comparable terminology are intended
        to
        identify forward-looking statements. Factors that may affect our results
        include, but are not limited to, our limited history of non-profitability,
        our
        dependence on a limited number of customers and key personnel, the need for
        additional financing and our dependence on certain industries. We are also
        subject to other risks detailed herein or detailed from time to time in our
        filings with the Securities and Exchange Commission.
 
 **PART
        ONE**
 
 **Item
        1:  Description of Business**
 
 **Company
        History**
 
 In
        the
        year 2000, RecycleNet Corporation recognized the need for specific geographic
        web portals within its business and it established an online presence to
        correspond with each continent.  The management of RecycleNet
        Corporation believed that the growing potential for business in Asia demanded
        separate attention and therefore, implemented a strategy to establish a
        Secondary Commodity Clearinghouse service in China.
 
 On
        June
        15, 2005, Scrap China Corporation (“the Company”) was organized under the laws
        of the State of Utah as a wholly-owned subsidiary of RecycleNet
        Corporation.  The Company is a development stage enterprise and is in
        the process of raising capital to fund operations.  As such, the
        Company has, since inception, spent most of its efforts in developing its
        business plan and in raising capital to fund its operations. The Company
        has
        relied upon cash flows from equity issuances and advances from RecycleNet
        Corporation to sustain operations.
 
 The
        Company plans to specialize in
        importing scrap materials into China.  These materials include, but
        are not limited to, scrap metal, waste paper, scrap plastic, scrap glass,
        etc.  The Company’s main focus will be on freight consolidation
        resulting in better economics in the transactions.
 
 On
        November 30, 2005 RecycleNet Corporation announced the spin-off of Scrap
        China
        Corporation effective January 20, 2006.  The spin-off was in the form
        of a pro-rata share dividend to RecycleNet Corporation common
        shareholders.  On January 20, 2006, the common shareholders of record
        of RecycleNet Corporation received one share of Scrap China Corporation for
        every ten shares of RecycleNet Corporation.   The remaining
        undistributed share balance of 2,289,157 shares, was returned to the Scrap
        China
        Corporation treasury at no cost from RecycleNet
        Corporation.   The balance of issued and outstanding shares of
        Scrap China Corporation as of June 30, 2007 was 7,710,843.
 
  2
  RecycleNet
        Corporation trades publicly as OTC:  GARM and is a "Reporting Company"
        under the Securities Exchange Act of 1934.
 
 The
        Company is continuing to mature its business plan and is proceeding to raise
        capital in order to execute the proof of concept phase for the company’s
        operations. The Company has had no revenues from any source to
        date.
 
 **Business
        Condition********— The Company has limited
        operating history and has not yet been able to develop and execute its business
        plan.  This situation raises substantial doubt about its ability to
        continue as a going concern. The Company plans to fund its operations by
        issuing
        equity securities or loans from related parties. Success in these efforts
        is not
        assured.  The financial statements do not include any adjustments
        relating to the recoverability and classification of asset carrying amounts
        or
        the amount and classification of liabilities that might result should the
        Company be unable to continue as a going concern
 
 **Bankruptcy
        or Receivership or Similar Proceedings**
 
 None
 
 
 **Outline
        of Business Plan**
 
 Scrap
        China Corporation is a development stage company.  The Company plans
        to specialize in importing scrap materials into China.  These
        materials include, but are not limited to, scrap metal, waste paper, scrap
        plastic, scrap glass, etc. The Company’s main focus will be on freight
        consolidation resulting in better economics in the transactions.
 
 The
        Company is continuing to mature its business plan and is proceeding to raise
        capital in order to execute the proof of concept phase for the companies
        operations.
 
 
 **Effect
        of Government Regulations**
 
 The
        Company is unaware of any existing or probable government regulations in
        the
        United States or China that would have any material negative impact on our
        business.
 
 The
        Company has assessed which permits, registrations or licenses are required
        to
        import goods into China and the costs associated with them.  There are
        a number of permits, registrations and licenses that may be required by either
        the Company, or by any buyer or seller that the Company deals with, in order
        to
        be in compliance with any Chinese rules, regulations and environmental
        laws.  The Company does not anticipate any difficulties in completing
        this process or any difficulties in obtaining any necessary documentation
        that
        may be required.
 
 
 
  3
  To
        date
        the Company has determined that the following permits, registrations or licenses
        may be required in China:
 
 1.
              General
                  Administration for Quality Supervision, Inspection and
                  Quarantine  - AQSIQ
 2.
              Compulsory
                  Certificate – CCC
 
  **Employees**
 
 Scrap
        China Corporation currently has no employees.
 
 
 **Competition**
 
 The
        management of Scrap China Corporation is unaware of any direct competition
        in
        the Secondary Commodity Clearinghouse market.  This service will
        assist buyers and sellers of scrap or waste materials to exchange
        goods.  These materials include, but are not limited to, scrap metal,
        scrap paper, scrap plastic, scrap glass, etc.   Management has
        identified hundreds of consumers and traders of scrap materials in China
        that
        they believe to be potential customers.  The Company does not
        anticipate having any one principal supplier or buyer that they would be
        dependent on.
 
 **Reports
        to Security Holders**
 
 The
        Company is a "reporting company" under the Securities Exchange Act of 1934
        and
        is required to file annual, quarterly and periodic reports with the Securities
        and Exchange Commission, such as Forms 10-KSB, 10-QSB, and 8-K. The reports
        are
        available at the Commission's Public Reference Room at 450 Fifth Street,
        NW,
        Washington, DC 20549, telephone 1-800-SEC-0330 and may be retrieved
        electronically via the Internet at www.sec.gov.
 
 The
        Company intends to prepare and deliver to its security holders an annual
        report
        each year, which will include audited financial statements.
 
 
 **Item
        2:  Description of Property**
 
 **Facilities**
 
 Currently,
        the company does not own, lease or occupy its own facilities.  All
        operations are conducted from the offices occupied by RecycleNet Corporation,
        the former parent company of Scrap China Corporation.
 
 
 **Item
        3:  Legal Proceedings**
 
 Neither
        the Company nor any of its officers, directors or greater than 10% beneficial
        shareholders are involved in any litigation or legal proceedings involving
        the
        business of the Company.
 
  4
  **Item
        4: Submission of Matters to a Vote of Security Holders**
 
 No
        matters were submitted to a vote of the Company's security holders during
        the
        fourth quarter of fiscal year ended June 30, 2007.
 
 
 **PART
        TWO**
 
 
 **Item
        5: Market for Common Equity and Related Stockholder
        Matters**
 
 As
        of
        June 30, 2007, the number of holders of record of the Company's common shares
        was 708.  The Company has not declared or paid any cash
        dividends.  It is not anticipated that any cash dividends will be
        declared or paid in the near future. There are no contractual or other
        restrictions that limit the ability of the Company to pay dividends on its
        common shares and none are anticipated in the future.
 
 **Description
        of
        Securities**
 
 The
        Company has authorized 250,000,000 common shares. There are no provisions
        in the
        Articles of Incorporation of the Company that would delay, defer, or prevent
        a
        change in control of the Company. The Company has no debt securities
        issued.
 
 **Recent
        Sales of Unregistered Securities**
 
 On
        November 30, 2005 RecycleNet Corporation, announced the spin-off of Scrap
        China
        Corporation, a wholly owned subsidiary.  The spin-off was in the form
        of a pro-rata share dividend to RecycleNet Corporation common
        shareholders.  On January 20, 2006, the common shareholders of record
        of RecycleNet Corporation received one share of Scrap China Corporation for
        every ten shares of RecycleNet Corporation.   The remaining
        undistributed share balance of 2,289,157 shares, was returned to the Scrap
        China
        Corporation treasury at no cost from RecycleNet
        Corporation.   The balance of issued and outstanding shares of
        Scrap China Corporation as of June 30, 2007 was 7,710,843.
 
 No
        other
        offers or sales have been made by the Company and none are intended at the
        present time.
  
 **Item
        6:  Managements Discussion and Analysis or Plan of
        Operation**
 
 **Plan
        of Operation**
 
 Scrap
        China Corporation is a development stage company.  The Company plans
        to specialize in importing scrap materials into China.  These
        materials include, but are not limited to, scrap metal, waste paper, scrap
        plastic, scrap glass, etc.  The Company’s main focus will be on
        freight consolidation resulting in better economics in the
        transactions.
 
  5
  The
        Company is continuing to mature its business plan and is proceeding to raise
        capital in order to execute the proof of concept phase for the companies
        operations.
 
 
 From
        inception to the present, RecycleNet Corporation has provided all funding
        to the
        Company.  The funds provided were used toward establishing a base of
        operations in China.  Additional funds, if required, over the next
        twelve months, will be provided by RecycleNet Corporation and will be treated
        as
        an advance to a related party.  These advances are due on demand and
        bear no interest.  The Company does not anticipate spending more than
        $100,000 over the next twelve months.
 
 The
        Company does not anticipate the purchase of any significant equipment or
        buildings during the development stage.
 
 The
        Company does not expect any significant change in employees.
 
 **Off-Balance
        Sheet Arrangements**
 None
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  6
  **Item
        7:  Financial Statements**
 
 **Scrap
        China Corporation**
 **(A
        Development Stage Enterprise)**
 **INDEX
        TO FINANCIAL STATEMENTS**
 
 
 **TABLE
        OF CONTENTS**
 
 
 **Page**Report
                  of Independent Registered Public Accounting Firm
              F-1Balance
                  Sheets – June 30, 2007 and 2006
              F-2Statements
                  of Operations for the Years Ended June 30, 2007 and 2006 and for
                  the
                  Period from June 15, 2005 (Date of Inception) through June 30,
                  2007
              F-2Statements
                  of Stockholders’ Deficit for the Period from June 15, 2005 (Date of
                  Inception) through June 30, 2005 and for the Years Ended June 30,
                  2007 and
                  2006
              F-3Statements
                  of Cash Flows for the Year Ended June 30, 2007 and 2006 and for
                  the Period
                  from June 15, 2005 (Date of Inception) through June 30,
                  2007
              F-4Notes
                  to Financial Statements
              F-5
 
 
 
 
 
 
 
 
 
 
 
 
 
  7
  
 **HANSEN,
                  BARNETT& MAXWELL,
                  P.C.**A
                  Professional CorporationCERTIFIED
                  PUBLIC ACCOUNTANTS
              
              **Registered
                  with the Public Company**AND
              
              **Accounting
                  Oversight Board**BUSINESS
                  CONSULTANTS5
                  Triad Center, Suite 750
                Salt
                  Lake City, UT 84180-1128Phone:
                  (801) 532-2200Fax:
                  (801) 532-7944www.hbmcpas.com
 
 
 
 
 **REPORT
        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
 
 
 
 To
        the
        Board of Directors and Stockholder
 Scrap
        China Corporation
 
 
 We
        have
        audited the balance sheets of Scrap China Corporation (a development stage
        enterprise) as of June 30, 2007 and 2006 and the related statements of
        operations, stockholders’ deficit and cash flows for the years ended June 30,
        2007 and 2006 and for the period from June 15, 2005 (date of inception) through
        June 30, 2007. These financial statements are the responsibility of the
        Company’s management. Our responsibility is to express an opinion on these
        financial statements based on our audits.
 
 We
        conducted our audits in accordance with the standards of the Public Company
        Accounting Oversight Board (United States).  Those standards require
        that we plan and perform the audit to obtain reasonable assurance about whether
        the financial statements are free of material misstatement. An audit includes
        examining, on a test basis, evidence supporting the amounts and disclosures
        in
        the financial statements, assessing the accounting principles used and
        significant estimates made by management, as well as evaluating the overall
        financial statement presentation.  We believe that our audits provides
        a reasonable basis for our opinion.
 
 In
        our
        opinion, the financial statements referred to above present fairly, in all
        material respects, the financial position of Scrap China Corporation as of
        June
        30, 2007 and 2006 and the results of its operations and its cash flows for
        the
        years ended June 30, 2007 and 2006 and for the period from June 15, 2005
        (date
        of inception) through June 30, 2007, in conformity with accounting principles
        generally accepted in the United States of America.
 
 The
        accompanying financial statements have been prepared assuming that the Company
        will continue as a going concern. As discussed in Note 2 to the financial
        statements, the Company’s lack of operating history raises substantial doubt
        about its ability to continue as a going concern. Management’s plans regarding
        those matters are also described in Note 2. The financial statements do not
        include any adjustments that might result from the outcome of this
        uncertainty.
 
 **HANSEN,
                  BARNETT & MAXWELL,
                  P.C.**
 
 Salt
        Lake
        City, Utah
 August
        28, 2006
 
  F-1
  **SCRAP
        CHINA CORPORATION**
 **(A
        Development Stage Enterprise)**
 **BALANCE
        SHEETS**
 
 **June
                  30,****2007**
              
              
              **2006****ASSETS****Current
                  Assets**Cash
              
              $
              399
              
              
              $
              450**Total
                  Assets**
              
              $
              399
              
              
              $
              450**LIABILITIES
                  AND STOCKHOLDERS' DEFICIT****Current
                  Liabilities**Accrued
                  liabilities
              
              $
              5,750
              
              
              $
              5,000Payable
                  to related party
              
              
              129,743
              
              
              
              87,116**Total
                  Current Liabilities**
              
              
              135,493
              
              
              
              92,116**Stockholders'
                  Deficit**Common
                  shares - par value $0.001 per share; 250,000,000 shares
                  authorized;
                7,710,843
                  shares issued and outstanding
              
              
              7,711
              
              
              
              7,711Additional
                  paid-in capital
              
              
              2,289
              
              
              
              2,289Deficit
                  accumulated during development stage
              
              
              (145,094
              )
              
              
              (101,666
              )**Total
                  Stockholders' Deficit**
              
              
              (135,094
              )
              
              
              (91,666
              )**Total
                  Liabilities and Stockholders' Deficit**
              
              $
              399
              
              
              $
              450
 
 
 **SCRAP
        CHINA CORPORATION**
 **(A
        Development Stage Enterprise)**
 **STATEMENTS
        OF OPERATIONS**
 
 **For
                  the Year Ended**
                **June
                  30,**
              
              
              **For
                  the period from**
                **June
                  15, 2005**
                **(date
                  of inception)**
                **through**
                **June
                  30,****2007**
              
              
              **2006**
              
              
              **2007****Sales**
              
              $
              -
              
              
              $
              -
              
              
              $
              -**Operating
                  Expenses**Selling,
                  general and adminstrative expenses
              
              
              43,428
              
              
              
              92,334
              
              
              
              145,094**Total
                  Operating Expenses**
              
              
              43,428
              
              
              
              92,334
              
              
              
              (145,094
              )**Net
                  Loss**
              
              $
              (43,428
              )
              
              $
              (92,334
              )
              
              $
              (145,094
              )**Basic
                  and Diluted Net Loss per Share**
              
              $
              (0.01
              )
              
              $
              (0.01
              )**Weighted-Average
                  Common Shares Outstanding**
              
              
              7,710,843
              
              
              
              9,153,325
 
  The
        accompanying notes are an integral part of these financial
        statements.
 
  F-2
  **SCRAP
        CHINA CORPORATION**
 **(A
        Development Stage Enterprise)**
 **STATEMENTS
        OF STOCKHOLDERS’ DEFICIT**
 
 **Common
                  Shares**
              
              
              **Additional**
                **Paid-in**
              
              
              **Accumulated**
              
              
              **Total**
                **Stockholders'**
                **Equity****Shares**
              
              
              **Amount**
              
              
              **Capital**
              
              
              **Deficit**
              
              
              **(Deficit)**Issuance
                  of Common Shares to RecycleNet Corporation - June 15, 2005; $0.001
                  per
                  share
              
              
              10,000,000
              
              
              $
              10,000
              
              
              $
              -
              
              
              $
              -
              
              
              $
              10,000Net
                  loss for the period ended June 30, 2005
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (9,332
              )
              
              
              (9,332
              )**Balance
                  - June 30, 2005**
              
              
              10,000,000
              
              
              
              10,000
              
              
              
              -
              
              
              
              (9,332
              )
              
              
              668Return
                  of Shares from Spin-off of Corporation February 15, 2006; no
                  cost
              
              
              (2,289,157
              )
              
              
              (2,289
              )
              
              
              2,289
              
              
              
              -
              
              
              
              -Net
                  loss for the year ended June 30, 2006
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (92,334
              )
              
              
              (92,334
              )**Balance
                  - June 30, 2006**
              
              
              7,710,843
              
              
              
              7,711
              
              
              
              2,289
              
              
              
              (101,666
              )
              
              
              (91,666
              )Net
                  loss for the year ended June 30, 2007
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (43,428
              )
              
              
              (43,428
              )**Balance
                  - June 30, 2007**
              
              
              7,710,843
              
              
              
              7,711
              
              
              
              2,289
              
              
              
              (145,094
              )
              
              
              (135,094
              )
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 The
        accompanying notes are an integral part of these financial
        statements.
 
  F-3
  **SCRAP
        CHINA CORPORATION**
 **(A
        Development Stage Enterprise)**
 **STATEMENTS
        OF CASH FLOWS**
 
 
 **For
                  the Year Ended**
                **June
                  30,**
              
              
              **For
                  the period from**
                **June
                  15, 2005**
                **(date
                  of inception)**
                **through**
                **June
                  30,****2007**
              
              
              **2006**
              
              
              **2007****Cash
                  Flows from Operating Activities:**Net
                  loss
              
              $
              (43,428
              )
              
              $
              (92,334
              )
              
              $
              (145,094
              )Changes
                  in assets and liabilities:Prepaid
                  expenses
              
              
              -
              
              
              
              4,000
              
              
              
              -Accrued
                  liabilities
              
              
              750
              
              
              
              1,500
              
              
              
              5,750Payable
                  to related party
              
              
              42,627
              
              
              
              87,116
              
              
              
              129,743**Net
                  Cash (Used in) Provided by Operating Activities**
              
              
              (51
              )
              
              
              282
              
              
              
              (9,601
              )**Cash
                  Flows from Investing Activities:**
              
              
              -
              
              
              
              -
              
              
              
              -**Cash
                  Flows from Financing Activities:**Proceeds
                  from sale of common stock
              
              
              -
              
              
              
              -
              
              
              
              10,000**Net
                  Cash Provided by Financing Activities**
              
              
              -
              
              
              
              -
              
              
              
              10,000**Net
                  Change in Cash**
              
              
              (51
              )
              
              
              282
              
              
              
              399**Cash
                  at Beginning of Period**
              
              
              450
              
              
              
              168
              
              
              
              -**Cash
                  at End of Period**
              
              $
              399
              
              
              $
              450
              
              
              $
              399
 
 
 
 
 
 
 
 
 
 
 The
        accompanying notes are an integral part of these financial
        statements.
 
  F-4
  **SCRAP
        CHINA CORPORATION**
 **(A
        Development Stage Enterprise)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 
 
 **Note
        1 – Nature of Business**
 
 **Organization
        and Nature of Operations*****—*** On June 15, 2005,
        Scrap China Corporation (“the Company”) was organized under the laws of the
        State of Utah.  The Company is considered a development stage
        enterprise and is in the process of raising capital to fund
        operations.  As such, the Company has, since inception, spent most of
        its efforts in developing its business plan and in raising capital to fund
        its
        operations. The Company has relied upon cash flows from equity issuances
        and
        advances from RecycleNet Corporation to sustain operations.
 
 The
        Company plans to specialize in importing scrap materials into
        China.  These materials include, but are not limited to, scrap metal,
        waste paper, scrap plastic, scrap glass, etc.  The Company’s main
        focus will be on freight consolidation resulting in better economics in the
        transactions.
 
 On
        November 30, 2005 RecycleNet Corporation, of which Scrap China Corporation
        was a
        wholly-owned subsidiary, announced the spin-off of Scrap China Corporation
        effective January 20, 2006.  The spin-off was in the form of a
        pro-rata share dividend to RecycleNet Corporation common
        shareholders.  On January 20, 2006, the common shareholders of record
        of RecycleNet Corporation received one share of Scrap China Corporation for
        every ten shares of RecycleNet Corporation.   The remaining
        undistributed share balance of 2,289,157 shares, was returned to the Scrap
        China
        Corporation treasury at no cost from RecycleNet Corporation.  From the
        date of the spin-off, Scrap China Corporation now functions as its own fully
        reporting entity.
 
 The
        Company is continuing to mature its business plan and is proceeding to raise
        capital in order to execute the proof of concept phase for the company’s
        operations.
 
 **Note
        2 – Summary of Significant Accounting Policies**
 
 **Use
        of Estimates*****—***The preparation of financial
        statements in conformity with accounting principles generally accepted in
        the
        United States of America requires management to make estimates and assumptions
        that affect certain reported amounts of assets and liabilities and 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.
 
 
 
  F-5
  **Fair
        Value of Financial Instruments**— The carrying amounts reported in the
        accompanying financial statements for current assets and current liabilities
        approximate fair values because of the immediate or short-term maturities
        of
        these financial instruments.
  **Business
        Condition********— The Company is a new company
        with minimal operating history.  It has not yet been able to develop
        and execute its business plan.  This situation raises substantial
        doubt about its ability to continue as a going concern. The Company plans
        to
        fund its operations by issuing equity securities or loans from related parties.
        Success in these efforts is not assured.  The financial statements do
        not include any adjustments relating to the recoverability and classification
        of
        asset carrying amounts or the amount and classification of liabilities that
        might result should the Company be unable to continue as a going
        concern.
 
 **Income
        Taxes**— The Company recognizes an asset or liability for the deferred
        tax consequences of all temporary differences between the tax basis of assets
        or
        liabilities and their reported amounts in the financial statements that will
        result in taxable or deductible amounts in future years when the reported
        amounts of the asset or liabilities are recovered or
        settled.  Deferred tax assets or liabilities are measured using the
        enacted tax rates that will be in effect when the differences are expected
        to
        reverse.  Deferred tax assets are reviewed periodically for
        recoverability and valuation allowances are provided as necessary.
 
 **Net
        Loss Per Share********— Basic and diluted loss
        per common share is computed on the basis of the weighted-average number
        of
        common shares outstanding during the period.  There were no
        potentially-issuable common stock equivalents outstanding at June 30, 2007
        or
        2006.
 
 
 **Note
        3 – Stockholders’ Equity**
 
 The
        Company is authorized to issue 250,000,000 common shares with a par value
        of
        $0.001 per share. The board of directors is authorized to designate one or
        more
        series within the class of common shares and to designate relative preferences,
        limitations and rights.
 
 In
        June
        2005, the Company issued 10,000,000 shares of common stock to RecycleNet
        Corporation for cash proceeds of $10,000 or $0.001 per share, making the
        Company
        a wholly owned subsidiary of RecycleNet Corporation.
 
 On
        November 30, 2005 RecycleNet Corporation announced the spin-off of Scrap
        China
        Corporation effective January 20, 2006.  The spin-off was in the form
        of a pro-rata share dividend to RecycleNet Corporation
        shareholders.  On January 20, 2006, the shareholders of record
        of
 
 
 
 
  F-6
  RecycleNet
        Corporation received one share of Scrap China Corporation for every ten shares
        of RecycleNet Corporation.   The remaining undistributed share
        balance of 2,289,157 shares, was returned to the Scrap China Corporation
        treasury at no cost from RecycleNet Corporation.
 
 
 **Note
        4 – Related Party Transactions**
 
 As
        of
        June 30, 2007 and 2006, the Company had a $129,743 and $87,116 payable to
        a
        related party, respectively.  During the years ended June 30, 2007 and
        2006, RecycleNet Corporation paid certain expenses for travel, management
        and
        legal and accounting expenses on behalf of Scrap China Corporation. The Company
        anticipates that additional funds, if required, would be provided by RecycleNet
        Corporation; however, there is no assurance that future advances will be
        made.  Terms for repayment have not been established and the advances
        are due on demand and bear no interest.
 
 
 **Note
        5 *–*Income Taxes**
 
 The
        components of the net deferred tax asset as of June 30, 2007 and 2006, are
        as
        follows:
 
 ***As
                  of June 30,***
              
              **2007**
              
              
              **2006**Operating
                  loss carryforwards
              
              $
              54,120
              
              
              $
              37,921Total
                  Deferred Tax Assets
              
              
              54,120
              
              
              
              37,921Valuation
                  allowance
              
              
              (54,120
              )
              
              
              (37,921
              )**Net
                  Deferred Tax Asset**
              
              $
              -
              
              
              $
              -
 
 
 As
        of
        June 30, 2007, the Company had net operating loss carryforwards of $145,094
        that
        begin to expire in 2025.  The following is a reconciliation of the
        amount of benefit that would result from applying the federal statutory rate
        to
        pretax loss with the provision for income taxes for the fiscal years ended
        June
        30, 2007 and 2006:
 
 ***For
                  the years ended June 30,***
              
              **2007**
              
              
              **2006**Tax
                  at statutory rate (34%)
              
              $
              (14,765
              )
              
              $
              (31,394
              )Change
                  in valuation allowance
              
              
              16,199
              
              
              
              34,440State
                  tax benefit, net of federal tax effect
              
              
              (1,434
              )
              
              
              (3,046
              )**Provision
                  for Income Taxes**
              
              $
              -
              
              
              $
              -
 
 
 
  F-7
  **Item
        8:  Changes In and Disagreements with Accountants on Accounting and
        Financial Disclosure**
 
 There
        are
        currently no disagreements or changes pending with the Company’s Registered
        Public Accounting Firm.
 
 **Item
        8A. Controls and Procedures**
 
 As
        of the
        end of the period covered by this report, the Company conducted an evaluation,
        under the supervision and with the participation of the principal executive
        officer and principal financial officer, of the Company’s disclosure controls
        and procedures (as defined in Rules 13a-15(e) and 15d015(e) under the Securities
        Exchange Act of 1934 (the “Exchange Act”)). Based on this evaluation, the
        principal executive officer and principal financial officer concluded that
        the
        Company’s disclosure controls and procedures are effective to ensure that
        information required to be disclosed by the Company in reports that it files
        or
        submits under the Exchange Act is recorded, processed, summarized and reported
        within the time periods specified in Securities and Exchange Commission rules
        and forms.
 
 There
        was
        no change in the Company’s internal control over financial reporting during the
        Company’s most recently completed fiscal quarter that has materially affected,
        or is reasonably likely to materially affect, the Company’s internal control
        over financial reporting.
 
 **Item
        8B:  Other Information**
 
 None
 
 
  **PART
        THREE**
  **Item
        9:  Directors and Executive Officers, Promoters and Control
        Persons:  Compliance with Section 16(a) of the Exchange
        Act.**
 
 **Directors
        and Officers of the Company**
  Name
              
              Age
              
              Position
              
              Term
                  of
                  OfficePaul
                  Roszel
              
              50
              
              Chairman
                  of the Board, President,
                  Director
              
              Inception
                  toPresentRichard
                  R. IvanovickC.A.
              
              66
              
              Chief
                  Financial Officer,
                  Director
              
              Inception
                  to
                  PresentKeith
                  A.
                  Deck
              
              70
              
              Director
              
              Inception
                  to
                  Present
 
 
  8
  For
        the
        past five years Mr. Roszel has been responsible for the ongoing development
        and
        promotion of the former parent company, RecycleNet Corporation.Mr. Roszel is the founding
        director, Chairman of the Board and President, of RecycleNet
        Corporation.  Mr. Roszel has over 26 years of hands on experience in
        the recycling industry. He has been actively involved in the development
        and
        implementation of collection, processing, transportation and sales/marketing
        programs for secondary commodities.
 
 Over
        the
        past five years Mr. Ivanovick, as Chief Financial Officer and a Director
        of
        RecycleNet Corporation, a position he has held since 1999, has been directly
        responsible for the preparation offinancial reporting,
        documents and compliance under the Sarbanes Oxley Act of 2002 and the Securities
        Exchange Act of 1934.   Mr. Ivanovick, is a registered Chartered
        Accountant.  He has also been President of Marsh Tire Service Ltd.
        since 1977, a company involved in automobile service, sales and leasing in
        the
        Guelph, Ontario Canada area.
 
 For
        the
        past five years Keith A. Deck, has been a Director of RecycleNet
        Corporation.  Mr. Deck is a retired executive with experience in the
        Automotive and Electrical Manufacturing areas of business. From 1989 to 1999
        Mr.
        Deck was the General Manager of the Rocktell and Autocom plant operations
        of
        Linamar Corporation in Guelph, Ontario Canada. Limamar Corporation is a publicly
        traded company on the Toronto Stock Exchange in Canada.
 
 **Involvement
        in Certain Legal Proceedings**
 None
 
 **Audit
        Committee**
 The
        Company is a development stage enterprise and currently does not have an
        audit
        committee or an independent audit committee financial expert.
 
 **Beneficial
        Ownership Reporting Compliance**
 Based
        on
        a review of Forms 3 and 4 submitted to the registrant during and with respect
        to
        the fiscal year ending June 30, 2006, Mr. Keith Deck, a director of the Company
        had not filed the Form 3 on a timely basis.  The number of late reports was
        one (the Form 3) and the number of transactions was one - the amount of Scrap
        China Corporation securities beneficially owned by Mr. Deck is 81,200 common
        shares.
 
 **Code
        of Ethics**
 The
        Company is a development stage enterprise and has not yet adopted a written
        code
        of ethics.
 
 **Indemnification
        of Directors and Officers**
 
 Section
        16-10a-901 through 909 of the Utah Revised Business Corporation Act authorizes
        a
        corporation's board of directors or a court to award indemnification to
        directors and officers in terms sufficiently broad to permit such
        indemnification under certain circumstances for liabilities (including
        reimbursement for expenses incurred, including counsel fees) arising under
        the
        Securities Act of 1933. A director of a corporation may only be indemnified
        if:
        (1) the conduct was in good faith; and (2) the director reasonably believed
        that
        the conduct was in or not opposed to the corporation's best interest; and
        (3) in
        the case of any criminal proceeding, the director had no reasonable cause
        to
        believe the conduct was unlawful. A corporation may not indemnify a person
        under
        the Utah Act unless and until the corporation's board of directors has
        determined that the applicable standard of conduct set forth above has been
        met.
 
  9
  The
        Company's Articles of Incorporation do not provide for any additional or
        different indemnification procedures other than those provided by the Utah
        Act,
        nor has the Company entered into any indemnity agreements with its current
        directors and officers regarding the granting of other or additional or
        contractual assurances regarding the scope of the indemnification allowed
        by the
        Utah Act. At present, there is no pending litigation or proceeding involving
        a
        director, officer or employee of the Company regarding which indemnification
        is
        sought, nor is the Company aware of any threatened litigation that may result
        in
        claims of indemnification. The Company has not obtained director's and officer's
        liability insurance, although the board of directors of the Company may
        determine to investigate and, possibly, acquire such insurance in the
        future.
 
 **Promoters
        of the Company**
 
 The
        promoter of the Company is Mr. Paul Roszel. Mr. Roszel is the founding Director
        and CEO of RecycleNet Corporation, the former parent company of Scrap China
        Corporation.
 
 
 **Item
        10:  Executive Compensation**
 
 The
        following table shows compensation earned during the period from June 15,
        2005
        (date of inception) through June 30, 2007 by the Officers and Directors of
        the
        Company.   No other miscellaneous compensation was paid or stock options
        granted during this period.
 
 
 Summary
        Compensation Table
 
 Name
                  & Principal Positions
              
              Fiscal
                  Year
              
              SalaryPaul
                  Roszel, President &
                  Chairman
              
              2007
              
              $
              02006
              
              $
              02005
              
              $
              0Richard
                  R. Ivanovick, CFO
              
              2007
              
              $
              02006
              
              $
              02005
              
              $
              0Keith
                  A. Deck, Director
              
              2007
              
              $
              02006
              
              $
              02005
              
              $
              0
 
 
  10
  **Item
        11:  Security Ownership of Certain Beneficial Owners and Management
        and Related Stockholder Matters**
 
 At
        this
        time there is no public trading market.
 
 The
        following tables sets forth, as of the date herein, the share ownership of
        each
        person known by the Company to be the beneficial owner of 5% or more of the
        Company's shares, each officer and director individually and all directors
        and
        officers of the Company as a group.
 
 Title
                  of Class
              Name
                  & Address of Beneficial Owner
              Amount&
                  Nature
                of
                  Beneficial Ownership
              Percent
                  of ClassCommon
              Inter-Continental
                  Recycling, Inc. (Note 1)
                7
                  Darren Place
                Guelph,
                  Ontario Canada
              3,858,785
              50.04%Common
              Paul
                  Roszel (Note 2)
                7
                  Darren Place
                Guelph,
                  Ontario Canada
              266,812
              3.46%Common
              Richard
                  R. Ivanovick
                23
                  Cottontail Place
                Cambridge,
                  Ontario Canada
              410,562
              5.32%Common
              Keith
                  A. Deck
                46
                  Sherwood Dr.
                Guelph,
                  Ontario Canada
              81,200
              1.05%
 
 Note
                  (1)
              Inter-Continental
                  Recycling Inc. is owned and beneficially held by Mr. Paul Roszel,
                  a
                  director of the Company, and his immediate
                  family.
 Note
                  (2)
              Mr.
                  Roszel owns and beneficially holds 266,812 shares.  In addition,
                  he may be deemed to be a beneficial owner of the 3,858,785 common
                  shares
                  held by Inter-Continental Recycling,
                  Inc.
  
 **Item
        12:  Certain Relationships and Related
        transactions**
  All
        Directors of Scrap China Corporation (the Company) are Directors in the former
        parent company, RecycleNet Corporation. RecycleNet Corporation trades publicly
        as OTC:  GARM and is a
        "Reporting Company" under the Securities Exchange Act of 1934 and files annual,
        quarterly and periodic reports with the Securities and Exchange Commission,
        such
        as Forms 10-KSB, 10-QSB, and 8-K. The reports are available at the Commission's
        Public Reference Room at450 Fifth Street, NW,Washington,DC20549,
        telephone 1-800-SEC-0330 and may be
        retrieved electronically via the Internet atwww.sec.gov.
 
 The
        Company has an agreement with RecycleNet Corporation to provide various services
        for the Company.
 
 All
        management and staff are retained on an unwritten contract basis under a
        related
        party transaction with RecycleNet Corporation.  Because of the
        affiliation between RecycleNet Corporation and the Company, the agreement
        between them has no definite duration and will continue as necessary for
        the
        conduct of business by the Company.
 
  11
  RecycleNet
        Corporation will assign and provide employees to Scrap China Corporation
        as long
        as the Company requires them and can pay the associated costs. Scrap China
        is
        charged the actual costs of the expenses with no mark up component.
 
 The
        management/staff charges for the years ended June 30, 2007 and 2006 were
        $0. and
        $35,245. respectively.
 
 As
        at
        June 30, 2007, the Company had a $129,743 payable to RecycleNet
        Corporation.  This resulted from expenses incurred for travel,
        management and legal and accounting expenses paid on behalf of Scrap China
        Corporation.  Additional funds, if required, will be provided by
        RecycleNet Corporation and will be treated as a payable to a related
        party.  These advances are due on demand and bear no
        interest.
 
 Inter-Continental
        Recycling Inc. owns 3,858,785 common shares of Scrap China
        Corporation.  Inter-Continental Recycling, Inc. is controlled 100% by
        Mr. Paul Roszel, a director of the company and his immediate
        family.
 
 **Item
        13:  Index to Exhibits**
 
 Exhibit
        3.1 – Articles of Incorporation(1)
 
 Exhibit
        20 – Resolution of Board of directors re Acquisition of Shares(1)
 
 Exhibit
        31.1 - Certification of the Chief Executive Officer pursuant to Section 302
        of
        the Sarbanes-Oxley Act of 2002
 
 Exhibit
        31.2 - Certification of the Chief Financial Officer pursuant to Section 302
        of
        the Sarbanes-Oxley Act  of 2002
 
 Exhibit
        32.1 - Certification of Chief Executive Officer pursuant to U.S.C Section
        1350
        as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
        2002
 
 Exhibit
        32.2 - Certification of Chief Financial Officer pursuant to U.S.C Section
        1350
        as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
        2002
 ___________________
 (1)
              Incorporated
                  by reference herein filed as exhibits to the Company’s Registration
                  Statement on Form 10SB previously filed with the SEC on August
                  18, 2005
                  and subsequent amendments thereto.
 
 
 
 
 
 
 
 
 
  12
  **Item
        14:  Principal Accountant Fees and Services**
 
 Hansen,
        Barnett & Maxwell served as the Company’s Independent Registered Public
        Accounting Firm for the year ended June 30, 2007 and 2006 and for the period
        from June 15, 2005 (date of inception) through June 30, 2005, and is expected
        to
        serve in that capacity for the current year. Principal accounting fees for
        professional services rendered for the Company by Hansen, Barnett & Maxwell
        for the years ended June 30, 2007 and 2006 are summarized as
        follows:
 
 **2007**
              
              
              **2006**Audit
              
              $
              12,750
              
              
              $
              11,000Audit
                  related
              
              
              –
              
              
              
              –Tax
              
              
              126
              
              
              
              -All
                  other
              
              
              –
              
              
              
              –Total
              
              $
              12,876
              
              
              $
              11,000
  
 ***Audit
        Fees*****.**Audit fees were for professional
        services rendered in connection with the Company’s annual financial statement
        audits and quarterly reviews of financial statements and review of and
        preparation of consents for registration statements for filing with the
        Securities and Exchange Commission.
 
 ***Tax
        Fees.***  Tax fees related to services for tax compliance
        and consulting.
 
 ***Audit
        Committee***.  The Company is a development stage
        enterprise and currently does not have an audit committee or an independent
        audit committee financial expert.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  13
 
 **SIGNATURES**
  Pursuant
        to the requirements of the Exchange Act of 1934, the registrant has duly
        caused
        this report to be signed on its behalf by the undersigned, thereunto duly
        authorized.
 
 
 Scrap
        China Corporation
 
 
 /s/
        Paul
        Roszel
 Paul
        Roszel, President /Chairman of the Board of Directors
 August
        29, 2007
 
 
 /s/
        Richard
        Ivanovick
 Richard
        Ivanovick, C.A., Chief Financial and Accounting Officer
 August
        29, 2007
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 14