**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**





**FORM
      10-QSB**





(Mark
      One)





x
            QUARTERLY
                REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934.





FOR
      THE
      QUARTERLY PERIOD ENDED JUNE 30, 2007




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





For
      the
      transition period from ____________ to ____________





Commission
      File Number 0-31193





EASTERN
      ENVIRONMENT SOLUTIONS, CORP.


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




NEVADA
            16-1583162(State
                or other jurisdiction of
            (I.R.S.
                Employerincorporation
                or organization)
            Identification
                No.)





HARBIN
      DONGDAZHI STREET 165,


HARBIN
      150001


PEOPLE’S
      REPUBLIC OF CHINA


(Address
      of principal executive offices)





(011)-86-451-53948666


(Issuer's
      telephone number)




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 o





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





APPLICABLE
      ONLY TO CORPORATE ISSUERS





State
      the
      number of shares outstanding of each of the issuer's classes of common equity,
      as of the latest practicable date: 10,620,185 shares of Common Stock,
      $.0001 par value, were outstanding as of August 8, 2007





Transitional
      Small Business Disclosure Format (check one); Yes o No x









**PART
      I - FINANCIAL INFORMATION**




**Item
      1. Financial Statements**




**EASTERN
        ENVIRONMENT SOLUTIONS, CORP.**
 **CONDENSED
        CONSOLIDATED FINANCIAL STATEMENTS**
 **JUNE
        30, 2007 & 2006**
 **(UNAUDITED)**
 
 **TABLE
        OF CONTENTS**
 **Page(s)**Condensed
                    Consolidated Balance Sheet as of June 30, 2007 (Unaudited)
                
                
                1Condensed
                    Consolidated Statements of Income for the Six MonthsAnd
                    Three Months Ended June 30, 2007 and 2006 (Unaudited)
                
                
                2Condensed
                    Consolidated Statements of Cash Flows for the Six
                    MonthsEnded
                    June 30, 2007 and 2006 (Unaudited)
                
                
                3Notes
                    to Condensed Consolidated Financial Statements (Unaudited)
                
                
                4-9
  
  **EASTERN
                    ENVIRONMENT SOLUTIONS CORPORATION****CONDENSED
                    CONSOLIDATED BALANCE SHEET (UNAUDITED)****JUNE
                    30, 2007****ASSETS**Current
                    assets:Cash
                    and cash equivalents
                
                $
                1,378,652Accounts
                    receivable
                
                
                976,577Inventory
                
                
                33,566Other
                    receivables
                
                
                54,219Total
                    Current Assets
                
                
                2,443,014Property
                    and equipment, net of accumulated depreciation
                
                
                5,486,803Other
                    assets:Advances
                    to suppliers
                
                
                3,241,670Total
                    Assets
                
                $
                11,171,487**LIABILITIES
                    AND STOCKHOLDERS' EQUITY**Current
                    liabilities:Loan
                    payable - current portion
                
                $
                966,592Accounts
                    payable
                
                
                20,500Taxes
                    payable
                
                
                153Accrued
                    expenses and other payables
                
                
                44,870Total
                    Current Liabilities
                
                
                1,032,115Long-term
                    liabilities:Loan
                    payable - net of current portion
                
                
                1,449,888Total
                    Liabilities
                
                
                2,482,003Commitments
                    and ContingenciesStockholders'
                    EquityCommon
                    stock, $0.0001 par value, 100,000,000 shares authorized;10,120,186
                    shares issued and outstanding at June 30, 2007
                
                
                1,012Additional
                    paid-in-capital
                
                
                3,026,796Accumulated
                    other comprehensive income
                
                
                719,499Statutory
                    reserves
                
                
                186,156Retained
                    earnings
                
                
                4,756,021Total
                    Stockholders' Equity
                
                
                8,689,484Total
                    Liabilities and Stockholders' Equity
                
                $
                11,171,487
  The
            accompanying notes are an integral part of these condensed consolidated
            financial statements
  1
  **EASTERN
                      ENVIRONMENT SOLUTIONS CORPORATION****CONDENSED
                      CONSOLIDATED STATEMENTS OF INCOME****For
                      the six and three months ended June 30, 2007 and
                      2006****Six-Months
                      Ended**
                  
                  **Three-Months
                      Ended****June
                      30,**
                  
                  **June
                      30,**
                  
                  **June
                      30,**
                  
                  **June
                      30,****2007**
                  
                  **2006**
                  
                  **2007**
                  
                  **2006****(Unaudited)**
                  
                  **(Unaudited)**
                  
                  **(Unaudited)**
                  
                  **(Unaudited)**Sales
                  
                  $
                  1,165,505
                  
                  $
                  1,836,792
                  
                  $
                  577,470
                  
                  $
                  1,168,313Cost
                      of Sales
                  
                  
                  174,938
                  
                  
                  234,705
                  
                  
                  94,356
                  
                  
                  125,009Gross
                      Profit
                  
                  
                  990,567
                  
                  
                  1,602,087
                  
                  
                  483,114
                  
                  
                  1,043,304Operating
                      ExpensesSelling,
                      general and administrative
                  
                  
                  154,339
                  
                  
                  140,518
                  
                  
                  80,805
                  
                  
                  62,205Operating
                      income
                  
                  
                  836,228
                  
                  
                  1,461,569
                  
                  
                  402,309
                  
                  
                  981,099Other
                      Income (Expenses)
                  
                  
                  40,821
                  
                  
                  (25,034
                  )
                  
                  11,080
                  
                  
                  (10,612
                  )Income
                      Before Income Taxes
                  
                  
                  877,049
                  
                  
                  1,436,535
                  
                  
                  413,389
                  
                  
                  970,487Provision
                      for Income Taxes
                  
                  
                  -
                  
                  
                  343,628
                  
                  
                  -
                  
                  
                  249,529Net
                      Income from continuing operations
                  
                  
                  877,049
                  
                  
                  1,092,907
                  
                  
                  413,389
                  
                  
                  720,958Discontinued
                      operations(Loss)
                      from discontinued operations
                  
                  
                  (61,900
                  )
                  
                  
                  
                  
                  (58,061
                  )Gain
                      on disposal
                  
                  
                  259,333
                  
                  
                  -
                  
                  
                  259,333
                  
                  
                  -Net
                      income (loss) from discontinued operations
                  
                  
                  197,433
                  
                  
                  
                  
                  
                  201,272Net
                      Income
                  
                  
                  1,074,482
                  
                  
                  1,092,907
                  
                  
                  614,661
                  
                  
                  720,958Basic
                      and diluted income (loss) per common shareContinuing
                      operations
                  
                  $
                  0.09
                  
                  $
                  3.64
                  
                  $
                  0.04
                  
                  $
                  2.40Discontinued
                      operations
                  
                  $
                  0.02
                  
                  $
                  -
                  
                  $
                  0.02
                  
                  $
                  -Weighted
                      average number of common shares outstanding
                  
                  
                  10,012,483
                  
                  
                  300,601
                  
                  
                  10,076,229
                  
                  
                  300,601
  The
              accompanying notes are an integral part of these condensed consolidated
              financial statements
 2
  **EASTERN
                      ENVIRONMENT SOLUTIONS CORPORATION****CONDENSED
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      (UNAUDITED)****FOR
                      THE SIX MONTHS ENDED JUNE
                      30,**
  **2007**
                    
                    **2006**Cash
                        Flows From Operating Activities:Continuing
                        Operations:Net
                        income from continuing operations
                    
                    $
                    877,049
                    
                    $
                    1,092,907Adjustments
                        to reconcile net income to net cashprovided
                        by operating activities:Depreciation
                        and amortization
                    
                    
                    122,125
                    
                    
                    143,388Amortization
                        of stock compensation
                    
                    
                    5,611
                    
                    
                    -Amortization
                        of consulting expenses
                    
                    
                    19,500
                    
                    
                    -Changes
                        in operating assets and liabilities:Accounts
                        receivable
                    
                    
                    (533,929
                    )
                    
                    (25,111
                    )Inventory
                    
                    
                    (21,718
                    )
                    
                    10,998Other
                        receivable
                    
                    
                    (48,828
                    )
                    
                    19,691Advances
                        to suppliers
                    
                    
                    (28,854
                    )
                    
                    (40,109
                    )Accounts
                        payable
                    
                    
                    (64,275
                    )
                    
                    44,445Taxes
                        payable
                    
                    
                    (43,530
                    )
                    
                    343,127unearned
                        revenue
                    
                    
                    -
                    
                    
                    1,157Accrued
                        expenses and other payables
                    
                    
                    11,240
                    
                    
                    (7,228
                    )Net
                        Cash provided by continuing activities
                    
                    
                    294,391
                    
                    
                    490,358Discontinued
                        operations:Net
                        loss from discontinued operations
                    
                    
                    197,433
                    
                    
                    -Adjustments
                        to reconcile net cash (used in) discontinued operations
                    
                    
                    (218,229
                    )
                    
                    -Net
                        cash used in discontinued operations
                    
                    
                    (20,796
                    )
                    
                    -Net
                        cash provided by operating activities
                    
                    
                    273,595
                    
                    
                    490,358Cash
                        Flows From Investing Activities:Purchase
                        of property and equipment
                    
                    
                    (144,992
                    )
                    
                    -(Additions)
                        reduction to construction in process
                    
                    
                    (378,241
                    )
                    
                    (499,995
                    )Collections
                        on loan to related parties
                    
                    
                    686,032
                    
                    
                    -Cash
                        provided by (used in) investing activities
                    
                    
                    162,798
                    
                    
                    (499,995
                    )Cash
                        provided by discontinued activities
                    
                    
                    26,842
                    
                    
                    -Net
                        cash provided by (used in) investing activities
                    
                    
                    189,640
                    
                    
                    (499,995
                    )Cash
                        Flows From Financing ActivitiesReduction
                        in long term debt
                    
                    
                    (483,296
                    )
                    
                    (483,296
                    )Repayment
                        of notes payable
                    
                    
                    -
                    
                    
                    (324,032
                    )Cash
                        (used in) financing activities
                    
                    
                    (483,296
                    )
                    
                    (807,328
                    )Cash
                        (used in) discontinued activities
                    
                    
                    (6,046
                    )
                    
                    -Net
                        cash (used in) financing activities
                    
                    
                    (489,342
                    )
                    
                    (807,328
                    )Effect
                        of exchange rate changes on cash and cash equivalents
                    
                    
                    174,694
                    
                    
                    50,156Increase
                        in cash and cash equivalents
                    
                    
                    148,588
                    
                    
                    32,698Cash
                        and Cash Equivalents - Beginning of period
                    
                    
                    1,230,064
                    
                    
                    821,141Cash
                        and Cash Equivalents - End of period
                    
                    $
                    1,378,652
                    
                    $
                    1,147,239SUPPLEMENTAL
                        CASH FLOW INFORMATION:During
                        the period, cash was paid for the following:Interest
                        expense
                    
                    $
                    65,687
                    
                    $
                    25,776Income
                        taxes
                    
                    $
                    44,628
                    
                    $
                    -Non-Cash
                        Investing and Financing Activities:Common
                        stock issued for incentive stock options
                    
                    $
                    101,000
                    
                    $
                    -Common
                        stock issued for consulting services
                    
                    $
                    19,500
                    
                    $
                    -
  The
            accompanying notes are an integral part of these condensed consolidated
            financial statements
  3
 EASTERN
          ENVIRONMENT SOLUTIONS, CORP
 CONDENSED
          CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
 FOR
          THE
          SIX MONTHS ENDED JUNE 30, 2007 AND 2006
 **NOTE
        1. BASIS OF PRESENTATION AND ORGANIZATION**
 
 Eastern
        Environment Solutions, Corp. (“the Company” or “EESC”) was incorporated under
        the laws of the State of Nevada and formerly known as USIP.COM, Inc.
        (“USIP”).
 
 The
        Company operates its business primarily through its wholly-owned subsidiary
        Harbin Yifeng Eco-Environment Co., Ltd. (“Harbin Yifeng”), a corporation
        organized and existing under the laws of the People’s Republic of China (“PRC”).
        Harbin Yifeng is a Chinese waste management company in the PRC that specializes
        in providing non-hazardous municipal solid waste processing and disposal
        services in the northeast regions of China.
 
 The
        Company’s condensed consolidated financial statements have been prepared in
        accordance with generally accepted accounting principles in the United States
        of
        America (“US GAAP”). In the opinion of management, the accompanying balance
        sheets and related interim statements of income and cash flows include all
        adjustments, consisting only of normal recurring items, necessary for their
        fair
        presentation in conformity with accounting principles generally accepted
        in the
        United States of America (“U.S. GAAP”).
 
 Interim
        results are not necessarily indicative of results for a full year. The
        information included in this Form 10-QSB should be read in conjunction with
        Management’s Discussion and Analysis and the financial statements and notes
        thereto included in the Company’s 2007 Form 10-KSB.
  **NOTE
        2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
  **MANAGEMENT
        ESTIMATES**
  The
        preparation of financial statements in conformity with generally accepted
        accounting principals requires management to make 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 amounts of revenues and expenses during the reporting period.
        Actual results could differ from those estimates.
  **PRINCIPLES
        OF CONSOLIDATION**
  The
        accompanying condensed consolidated Financial Statements include the accounts
        of
        the Company and its wholly owned subsidiaries, Harbin Yifeng and Harbin Yifeng’s
        wholly owned subsidiary, Harbin Yifeng Zhiye Management Co., Ltd. (“Yifeng
        Zhiye”). All significant inter-company transactions and balances have been
        eliminated in consolidation.
  4
  EASTERN
        ENVIRONMENT SOLUTIONS, CORP
 CONDENSED
        CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
 FOR
        THE
        SIX MONTHS ENDED JUNE 30, 2007 AND 2006 (Continued)
  **NOTE
        2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**
  **CONCENTRATIONS
        OF CREDIT RISK**
 
 The
        primary operations of the Company are now located in the PRC. Accordingly,
        the
        Company’s business, financial condition, and results of operations may be
        influenced by the political, economic, and legal environments in the PRC,
        in
        addition to the general state of the PRC economy. The Company's operations
        in
        the PRC are subject to special considerations and significant risks not
        typically associated with companies in North America and Western Europe.
        These
        include risks associated with, among others, the political, economic and
        legal
        environments legal environments and foreign currency exchange.
 
 The
        Company’s results may be adversely affected by changes in the political and
        social conditions in the PRC, and by changes in governmental policies with
        respect to laws and regulations, anti-inflationary measures, currency conversion
        and remittance abroad, and rates and methods of taxation, among other
        things.
  **FOREIGN
        CURRENCY TRANSLATION**
 
 The
        functional currency for the Company’s operations in China is the Renminbi
        (“RMB”). Foreign currency transactions are translated at the applicable rates of
        exchange in effect at the transaction dates. Monetary assets and liabilities
        denominated in foreign currencies at the balance sheet date are translated
        at
        the applicable rates of exchange in effect at that date. Revenues and expenses
        are translated at the average exchange rates in effect during the reporting
        period.
 
 Translation
        adjustments arising from the use of different exchange rates from period
        to
        period are included as a component of stockholders' equity as "Accumulated
        Other
        Comprehensive Income". Gains and losses resulting from foreign currency
        translations are included in Accumulated Other Comprehensive
        Income.
  **STOCK-BASED
        COMPENSATION**
 
 The
        Company records stock based compensation expense pursuant to Financial
        Accounting Standards Board Statement of Financial Accounting Standards (“SFAS”)
        No 123R, “Share-based Payments”, which establishes the accounting for employee
        stock-based awards. Under the provisions of SFAS No. 123(R), stock-based
        compensation is measured at the grant date, based on the calculated fair
        value
        of the award, and is recognized as an expense over the requisite employee
        service period (generally the vesting period of the grant). Deferred stock
        compensation represents shares issued to employees that will be vested over
        a
        certain service period. Deferred stock compensation is included in additional
        paid-in capital as an offset to equity.
 
 5
 EASTERN
          ENVIRONMENT SOLUTIONS, CORP
 CONDENSED
          CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
 FOR
          THE
          SIX MONTHS ENDED JUNE 30, 2007 AND 2006 (Continued)
 **NOTE
        2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**
 
 The
        Company measures compensation expense for its non-employee stock-based
        compensation under the Financial Accounting Standards Board (FASB) Emerging
        Issues Task Force (EITF) Issue No. 96-18, “ *Accounting
        for Equity Instruments that are Issued to Other Than Employees for Acquiring,
        or
        in Conjunction with Selling, Goods or Services* ”.
         The fair value of the shares issued is used to measure the transaction, as
        this is more reliable than the fair value of the services received.  Fair
        value is measured as the value of the Company’s common stock on the date that
        the commitment for performance by the counterparty has been reached or the
        counterparty’s performance is complete.  The fair value of the equity
        instrument is charged directly to compensation expense and additional paid-in
        capital.
  **NEW
        ACCOUNTING PRONOUNCEMENTS**
 
 In
        September 2006, the FASB issued Statement of Financial Accounting Standards
        No.
        157, Fair Value Measurements, (“FAS 157”). This Standard defines fair value,
        establishes a framework for measuring fair value in generally accepted
        accounting principles and expands disclosures about fair value measurements.
        FAS
        157 is effective for financial statements issued for fiscal years beginning
        after November 15, 2007 and interim periods within those fiscal years. The
        adoption of FAS 157 is not expected to have a material impact on the Company’s
        financial position, results of operations or cash flows.
 
 In
        September 2006, the Securities and Exchange Commission (“SEC”) issued Staff
        Accounting Bulletin (“SAB”) No. 108, “Quantifying Misstatements.” SAB 108
        provides interpretative guidance on how public companies quantify financial
        statement misstatements. There have been two common approaches used to quantify
        such errors. Under an income statement approach, the “roll-over” method, the
        error is quantified as the amount by which the current year income statement
        is
        misstated. Alternatively, under a balance sheet approach, the “iron curtain”
method, the error is quantified as the cumulative amount by which the current
        year balance sheet is misstated. In SAB 108, the SEC established an approach
        that requires quantification of financial statement misstatements based on
        the
        effects of the misstatements on each of the company’s financial statements and
        the related financial statement disclosures. SAB 108 is effective for the
        first
        fiscal year ending after November 15, 2006. The adoption of SAB 108 did not
        have a material impact on the Company’s consolidated financial position and
        results of operations.
 
 In
        February 2007, the FASB issued SFAS No. 159, “The Fair Value Option
        for Financial Assets and Financial Liabilities — Including an Amendment of
        FASB Statement No. 115,” which is effective for fiscal years beginning
        after November 15, 2007. This statement permits an entity to choose to
        measure many financial instruments and certain other items at fair value
        at
        specified election dates. Subsequent unrealized gains and losses on items
        for
        which the fair value option has been elected will be reported in earnings.
        We
        are currently evaluating the potential impact of this statement.
 
 6
  EASTERN
          ENVIRONMENT SOLUTIONS, CORP
 CONDENSED
          CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
 FOR
          THE
          SIX MONTHS ENDED JUNE 30, 2007 AND 2006 (Continued)
 **NOTE
        3. PROPERTY AND EQUIPMENT, NET**
 
 Property
        and equipment at June 30, 2007 consist of the following:
 Machinery
                    & Equipment
                
                $
                825,619Vehicles
                
                
                361,857Landfills
                
                
                1,847,800Subtotal
                
                
                3,035,276Less:
                    Accumulated Depreciation
                
                
                (593,307
                )Construction
                    in progress
                
                
                3,044,834Total
                    Property and equipment, net
                
                $
                5,486,803
 Depreciation
        expense for the six months ended June 30, 2007 and 2006 was $122,125 and
        $143,388, respectively.
 
 Construction
        in progress represents direct costs of construction or acquisition and design
        fees incurred for the Company’s new operating site and equipments.
        Capitalization of these costs ceases and the construction in progress is
        transferred to plant and equipment when substantially all the activities
        necessary to prepare the assets for their intended use are completed. No
        depreciation is provided until it is completed and ready for its intended
        use.
 
 **NOTE
        4. BANK LOAN PAYABLE**
 
 On
        November 18, 2004, the Company received a long-term loan from Industrial
        and
        Commercial Bank of China, Harbin Branch in the amount of $4,832,960,
        secured by the Company’s building. The loan is for a 5-year term, maturing
        November 15, 2009. Pursuant to the loan agreement, the interest rate for
        the
        first year was set at 7.605%. Starting
        from the second year and thereafter, the rate become adjustable based on
        the
        change of the official rates at the time. In addition to paying the quarterly
        interest, the Company is also required to make $241,648 pre-determined principal
        repayments every quarter.
  7
 EASTERN
          ENVIRONMENT SOLUTIONS, CORP
 CONDENSED
          CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
 FOR
          THE
          SIX MONTHS ENDED JUNE 30, 2007 AND 2006 (Continued)
 **NOTE
        4. BANK LOAN PAYABLE (Continued)**
 
 Maturities
        of the long-term debt as of  June
        30 are as
        follows:
 Year2008
                
                $
                966,5922009
                
                
                966,5922010
                
                
                483,296Total
                
                $
                2,416,480
 
 **NOTE
        5. STOCKHOLDERS' EQUITY**
 
 On
        January 10, 2007, the Company issued 650,000 shares of its common stock for
        consulting services provided to the Company for $19,500, representing the
        fair
        value of the shares at the date of grant.
 
 On
        May 2,
        2007 the Company issued 100,000 shares of its common stock as full compensation
        to three employees. An amount of $101,000 represents the aggregate fair value
        of
        the shares.
 
 The
        Company has 10,120,186 shares of common stock issued and outstanding as of
        June
        31, 2007.
 
 **NOTE
        6. STOCK-BASED COMPENSATION**
 
 In
        May
        2007, the Board of Directors of the Company adopted and approved the 2007
        Employee Incentive Stock Option Plan (the “Plan”), which authorized the issuance
        of up to 2,000,000 shares of common stock under the Plan. Subject to the
        terms
        and provisions of the Plan, the Board of Directors, at any time and from
        time to
        time, may grant shares of stock to eligible persons in such amounts and upon
        such terms and conditions as the Board of Directors shall
        determine.
 
 The
        Company granted 100,000 shares to three employees as of June 30, 2007 under
        the
        Plan with a weighted average grant price of $1.01.
  8
  EASTERN
          ENVIRONMENT SOLUTIONS, CORP
 CONDENSED
          CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
 FOR
          THE
          SIX MONTHS ENDED JUNE 30, 2007 AND 2006 (Continued)
 **NOTE
        6. STOCK-BASED COMPENSATION (Continued)**
 A
          summary
          of the status of the Company’s deferred stock compensation under the Plan as of
          June 30, 2007, and changes for the period ended June 30, 2007, is presented
          below:
  Deferred
                    stock compensation as of January 1, 2007
                
                $
                -Deferred
                    stock compensation granted
                
                
                101,000Compensation
                    expenses debited to statement of operationswith
                    a credit to additional paid-in capital
                
                
                (5,611
                )Deferred
                    stock compensation as of June 30, 2007
                
                $
                95,389
  **NOTE
        7. DISCONTINUED OPERATIONS**
 
 On
        June
        27, 2007, the Company spun off its two wholly-owned Subsidiaries, Datone,
        Inc.
        and NB Telecom, Inc. to a Trust account for the benefits of those shareholders
        on record as of August 24, 2006 (“Shareholders”). The financial statements for
        the period ended June 30, 2007 include reclassifications of the operations
        of
        the Company to reflect the disposal of the subsidiaries below the line as
        discontinued operations in accordance with the provisions of FASB 144, “
Accounting for the Impairment or Disposal of Long-Lived Assets”. There was a
        one-time $259,333 of gain on disposal recognized in the Statement of Operations
        for the six months and three months ended June 30, 2007 as a result of this
        disposition.
 
 **NOTE
        8. COMMITMENTS AND CONTINGENCIES**
 
 On
        June
        13, 2007, the company filed a Form 8-K with SEC, announced that in accordance
        with the PRC National Environment Protection Bureau’s request in relation to
        landfills and adjustments to their peripheral inhabitants’ well-being, the
        Harbin municipal government city administrative bureau is carrying out certain
        adjustments to the original landfill plans of our subsidiary, Harbin Yifeng
        Eco-environment Co. Ltd. (“Harbin Yifeng”).  Such adjustments will result
        in the relocation of some peripheral inhabitants of the landfill and its
        waste
        water disposal plant. The costs of such adjustments will be borne by the
        Harbin
        municipal government city administrative bureau.  These measures will
        disrupt Harbin Yifeng’s normal operations.  After careful consideration,
        our Board of Directors has decided to temporarily suspend Harbin Yifeng’s
        operations effective June 13, 2007, for an estimated period of 9 months (the
        “Suspension Period”) while these measures are being carried out. However, Harbin
        Yifeng will still be collecting the minimum fixed fees for the Suspension
        Period
        as per the “Special Permission Operation Rights Contract”, which Harbin Yifeng
        had signed with the Harbin municipal government city administrative bureau
        on
        September 1, 2003. The bureau will compensate and pay Harbin Yifeng a sum
        equivalent to the fee for disposing 800 tons of waste per day during the
        Suspension Period.
 
 9




**Item
      2.****Management’s
      Discussion and Analysis**




**Forward
      looking statements**





The
      following is a discussion and analysis of our results of operations and
      should be read in conjunction with our financial statements and related notes
      contained in this Form 10-QSB. This Form 10-QSB contains forward looking
      statements that involve risks and uncertainties. You can identify these
      statements by the use of forward-looking words such as "may", "will", "expect",
      "anticipate", "estimate", "believe", "continue", or other similar words. You
      should read statements that contain these words carefully because they discuss
      our future expectations, contain projections of our future results of operation
      or financial condition or state other "forward-looking" information. We believe
      that it is important to communicate our future expectations to our investors.
      However, there may be events in the future that we are unable to accurately
      predict or control. Those events as well as any cautionary language in
      this Form 10-QSB provide examples of risks, uncertainties and events
      that may cause our actual results to differ materially from the expectations
      we
      describe in our forward-looking statements. You should be aware that the
      occurrence of the events described in this Form 10-QSB could have a material
      adverse effect on our business, operating results and financial condition.
      Actual results may differ materially from current expectations.





**Overview**





We
      are
      incorporated under the laws of the state of Nevada and, along with our
      wholly-owned subsidiaries, are headquartered in Harbin, People’s Republic of
      China (“PRC”). We provide municipal solid waste (“MSW”) non-hazardous disposal
      service for Harbin city. MSW includes residential, commercial, institutional
      and
      municipal waste. Our business is conducted through our wholly-owned subsidiary,
      Harbin Yifeng Eco-environment Co. Ltd (“Yifeng”) and Yifeng’s subsidiary, Harbin
      Zhiye Management Co. Ltd. (“Zhiye”). Both of Yifeng and Zhiye are organized
      under the laws of the PRC.





Yifeng
      was incorporated in the PRC in 2003, which is the first privately-owned
      environmental engineering firm providing non-hazardous MSW processing and
      disposal services and environmental engineering consulting services (provided
      through its wholly-owned subsidiary, Zhiye) in the northeast regions of the
      PRC.
      We currently have only one landfill site for non-hazardous MSW processing and
      disposal services are conducted under a Build-Operate-Transfer (“BOT”) Contract
      with the Harbin Municipal Urban Administrative Bureau (“HMUAB”) for a 17-year
      term. HMUAB is presently its only customer for MSW disposal. It transports
      the
      MSW it collects from Harbin for processing. Yifeng’s current production capacity
      is 1,200 tons of MSW per day, approximately 34% of the total MSW in Harbin.
      The
      municipal government levies fees for the disposal of waste by residential,
      commercial and industrial producers as part of their general taxes. However,
      in
      recent years, there has been a move in several cities to introduce direct waste
      fees levied against the producer of such waste. We believe that MSW disposal
      fees in the PRC will increase, as the national government has been trying to
      improve waste management to keep pace with the economic growth and rapid
      urbanization of the PRC.





**Recent
      Developments**





On
      June
      15, 2007, we filed a Current Report on Form 8-K with the Securities and Exchange
      Commission to report that, in accordance with the PRC National Environment
      Protection Bureau’s request in relation to landfills and adjustments to their
      peripheral inhabitants’ well-being, the Harbin municipal government city
      administrative bureau was carrying out certain adjustments to the original
      landfill plans of our subsidiary, Yifeng.  Such adjustments would result in
      the relocation of some peripheral inhabitants of the landfill and Yifeng’s waste
      water disposal plant. The costs of such adjustments will be borne by the Harbin
      municipal government city administrative bureau.  These measures would
      disrupt Yifeng’s normal operations.  After careful consideration, our Board
      of Directors decided to temporarily suspend Yifeng’s operations effective June
      13, 2007, for an estimated period of nine (9) months (the “Suspension Period”)
      while these measures are being carried out. However, Yifeng would still be
      collecting the minimum fixed fees for the Suspension Period as per the “Special
      Permission Operation Rights Contract”, which Yifeng had signed with the Harbin
      municipal government city administrative bureau on September 1, 2003. The bureau
      will compensate and pay Yifeng a sum equivalent to the fee for disposing 800
      tons of waste per day during the Suspension Period.





10




**Spin-Off**





On
      January 31, 2000 Datone Communications, Inc., a New York corporation and an
      independent payphone provider merged with us. All of the Datone Communications,
      Inc. shares were retired and Datone Communications, Inc. shareholders received
      268,388 restricted shares of our common stock. On April 29, 2000, we purchased
      all the shares of NB Payphones, Ltd., ("NB"), the owner of 466 payphones in
      Pennsylvania and Cointel Leasing, Inc. ("Cointel"), the owner of 45 payphones
      in
      Syracuse, New York, from Riviera Bay Holding Trust, a Gibraltar Trust, for
      8,750,000 restricted shares of our common stock. NB is a wholly owned
      subsidiary.





On
      August
      30, 2000 we incorporated Datone, Inc. as a Delaware company. Datone, Inc. is
      a
      wholly owned subsidiary. All the revenue generating assets and related expenses
      that we received from the Datone Communications merger were subsequently moved,
      via an intercompany transfer, from us into Datone, Inc. Datone, Inc., was
      capitalized with $1,017. All of the Datone, Inc., shares were conveyed to us.
      On
      October 1, 2000 we merged Cointel into Datone, Inc. by way of an intercompany
      transaction.





In
      connection with the reverse merger transaction on September 6, 2006, pursuant
      to
      which we acquired all of the outstanding stock of American Eco-Environment
      Corporation, the former holders of a majority of our outstanding shares agreed
      to take
      the
      steps necessary to effect a dividend of the shares of our subsidiaries
      (“Shares”), NB Telecom, Inc. and Datone, Inc. (the “Subsidiaries”) to our
      shareholders (the “Spinoff”) by November 15, 2006.  The Spinoff has, to
      date, not been fully completed.





Because
      the Spinoff had not yet occurred, on June 27, 2007, we entered into two trust
      agreements with Carl Worboys (“Trustee”) to transfer our shares in the
      Subsidiaries, to the Trustee to hold such shares for the benefit of our
      shareholders as of August 24, 2006 (“Shareholders”) until all the requirements
      for the Spinoff have been fulfilled.





During
      the period the Shares are held in trust, no transfer, sale, conveyance,
      assignment or any encumbrance whatsoever of the Shares by the Trustee shall
      be
      made without the written consent of all the Shareholders and all voting and
      ownership rights respecting the Shares shall remain with the Shareholders and
      the Trustee shall hold the Shares beneficially for the benefit of the
      Shareholders. Further, when the Trustee is notified in writing by an authorized
      officer of the Subsidiaries, and has independently verified that all
      requirements for distribution of the Shares have been fulfilled, in particular,
      when the Subsidiaries have received a Notice of Effectiveness of its
      registration statement, the Trustee shall deliver the shares to Holladay Stock
      Transfer, Inc., located in Scottsdale, Arizona for distribution to the
      Shareholders. Thereafter, all responsibilities of the Trustee under the trust
      agreements shall cease. A Notice of Effectiveness with respect to the
      registration statement on Form SB-2 for NB Telecom, Inc. was filed on July
      19,
      2007.





Because
      NB Telcom, Inc. and Datone, Inc. were our Subsidiaries for the most part of
      the
      quarter ended June 30, 2007, we have included the accounts of these two
      Subsidiaries in our condensed consolidated financial statements.





**Results
      of Operations**





The
      following table sets forth our statements of operations for the six months
      ended
      June 30, 2007 and 2006 and the three months ended June 30, 2007 and
      2006:


**Six-Month
                  Ended**
              
              **Three-Month
                  Ended****June
                  30,**
              
              **June
                  30,**
              
              **June
                  30,**
              
              **June
                  30,****2007**
              
              **2006**
              
              **2007**
              
              **2006****(Unaudited)**
              
              **(Unaudited)**
              
              **(Unaudited)**
              
              **(Unaudited)**Sales
              
              $
              1,165,505
              
              $
              1,836,792
              
              $
              577,470
              
              $
              1,168,313Cost
                  of Sales
              
              
              174,938
              
              
              234,705
              
              
              94,356
              
              
              125,009Gross
                  Profit
              
              
              990,567
              
              
              1,602,087
              
              
              483,114
              
              
              1,043,304Operating
                  ExpensesSelling,
                  general and administrative
              
              
              154,339
              
              
              140,518
              
              
              80,805
              
              
              62,205Operating
                  income
              
              
              836,228
              
              
              1,461,569
              
              
              402,309
              
              
              981,099Other
                  Income (Expenses)
              
              
              40,821
              
              
              (25,034
              )
              
              11,080
              
              
              (10,612
              )Income
                  Before Income Taxes
              
              
              877,049
              
              
              1,436,535
              
              
              413,389
              
              
              970,487Provision
                  for Income Taxes
              
              
              -
              
              
              343,628
              
              
              -
              
              
              249,529Net
                  Income from operations
              
              
              877,049
              
              
              1,092,907
              
              
              413,389
              
              
              720,958Discontinued
                operations(Loss)
                  from discontinued operations
              
              
              (61,9900
              )
              
              
              
              
              (58,061
              )Gain
                  on disposal
              
              
              259,333
              
              
              -
              
              
              259,333
              
              
              -Net
                  income (loss) from discontinued operations
              
              
              197,433
              
              
              
              
              
              201,272Net
                  Income
              
              
              1,074,382
              
              
              1,092,907
              
              
              614,661
              
              
              720,958




THE
      SIX
      MONTHS ENDED JUNE 30, 2007 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
      2006





Revenue




Revenue
      for the six months ended June 30, 2007 was $1,165,505, a decrease of $671,287
      or
      36%, from revenue of $1,836,792 for the comparable period in 2006. The decrease
      in revenue was primarily attributable to Yifeng not having fully realized the
      potential of its client base in the provision of environment engineering
      consulting services for the first and second quarters by its subsidiary, Zhiye.
      Despite its efforts to aggressively market its services to new clients, Yifeng
      was unable to procure new customers for Zhiye during this period. Yifeng plans
      to re-assess its marketing strategy in light of current market conditions and
      will continue to aggressively market and expand its client base.





Cost
      of Revenue




Cost
      of
      revenue for the six months ended June 30, 2007 was $174,938, a decrease of
      $59,767, or 25%, from $234,705 for the comparable period in 2006. The decrease
      in cost of revenue was primarily due to Yifeng not having fully realized the
      potential of its client base in the provision of environment engineering
      consulting services the first and second quarters by its subsidiary, Zhiye.
      Because revenue was less, the cost of revenue was correspondingly
      lower.





Gross
      Profit




Gross
      profit for the six months ended June 30, 2007 was $990,567, a decrease of
      $611,520 or 38%, from $1,602,087 for the comparable period of 2006. Our gross
      profit margin for the six months ended June 30, 2007 was 85% as compared with
      87% for the six months ended June 30, 2006. The decrease in our gross profit
      is
      primarily due to Yifeng not having fully realized the potential of its client
      base in the provision of environment engineering consulting services the first
      and second quarters by its subsidiary, Zhiye.




Selling,
      General and Administrative Expenses




Selling,
      general and administrative expenses were $154,339 for the six months ended
      June
      30, 2007, an increase of $13,821 or 9.8% from $140,518 for the comparable period
      in 2006. The increase was principally due to increased legal
      expenses.




11




Other
      Income




Other
      income were $40,821 and ($25,034) for the six months ended June 30, 2007 and
      2006, respectively and the increase of $65,855 or 263% is
      principally attributable to loan interest that was paid by Harbin Tian
      Li Real Estate Co. We received $28,458 in interest payments for this loan for
      the six months ended June 30, 2007 and the principal amount of the loan was
      repaid in its entirety in April 2007.





Income
      Taxes




Provision
      for income taxes was zero for the six months ended June 30, 2007 a decrease
      of
      $343,628 as compared to the same period in 2006. We are a company incorporated
      in the State of Nevada and conduct substantially all our operations through
      our
      PRC operating company. Although we are subject to United States taxation, we
      do
      not anticipate incurring significant United States income tax liability for
      the
      foreseeable future because:





·
            we
                did not conduct any material business or maintain any branch office
                in the
                United States for the six-month period ended June 30,
                2007,


·
            the
                earnings generated from our non-U.S. operating companies are generally
                eligible for a deferral from United States taxation until such earnings
                are repatriated to the United States, and


·
            we
                believe that we will not generate any significant amount of income
                inclusions under the income imputation rules applicable to a United
                States
                company that owns "controlled foreign corporations" for United States
                federal income tax purposes.





Therefore,
      no provision for U.S. federal income taxes or tax benefits on the undistributed
      earnings and/or losses of our company has been made.




Yifeng
      and Zhiye are both incorporated in the PRC. They are governed by the Income
      Tax
      Law of the PRC concerning privately-run enterprises, which are normally subject
      to tax at a statutory rate of 33% (30% state income tax plus 3% local income
      tax) on its taxable income. Upon the acquisition of Yifeng by American
      Eco-Environment Corporation (“AEEC”), Yifeng applied to be treated as a Wholly
      Foreign Owned Enterprise (“WFOE”). In accordance with the relevant income tax
      laws, the profits of WFOEs are fully exempted from income tax for two years,
      from their first profit-making calendar year of operations after offsetting
      accumulated taxable losses, followed by a 50% income tax reduction for the
      next
      three calendar years (the “Tax Holiday”) thereafter.




Yifeng
      was granted the status of WFOE in the third quarter of 2006 upon the completion
      of the reverse merger with us (we were formerly known as USIP.Com, Inc.). Yifeng
      was granted a choice of starting the Tax Holiday immediately or the next
      calendar year. Yifeng elected for the Tax Holiday to commence in January 2007.
      Its two-year tax exemption period will be from January 1, 2007 to December
      31,
      2008 and the three-year income tax reduction period will be from January 1,
      2009
      to December 31, 2011.




Zhiye,
      Yifeng’s subsidiary, is entitled to be exempted from the income tax and
      value-added tax for three years from August 2004 because Zhiye has hired
      employees that have formerly served with the national army and the state grants
      tax benefits for such employers.




Net
      Income




Net
      income for the six months ended June 30, 2007 was $1,074,482 a decrease of
      $18,425 or 1.7% from $1,092,907 for the comparable period in 2006. The
      decrease was primarily attributable to Yifeng not having fully realized the
      potential of its client base in the provision of environment engineering
      consulting services for the first and second quarters by its subsidiary, Zhiye.
      Yifeng intends to aggressively market and expand its client base. The decease
      in
      net income is also attributable to the divestment of our subsidiaries, NB
      Telcom, Inc. and Datone, Inc.





12




THE
      THREE
      MONTHS ENDED JUNE 30, 2007 COMPARED TO THE THREE MONTHS ENDED JUNE 30,
      2006





Revenue




Revenue
      for the three months ended June 30, 2007 was $577,470, a decrease of $590,843
      or
      50%, from revenue of $1,168,313 for the comparable period in 2006. The decrease
      in revenue was primarily attributable to Yifeng not having fully realized the
      potential of its client base in the provision of environment engineering
      consulting services for the second quarter by its subsidiary, Zhiye. Despite
      its
      efforts to aggressively market its services to new clients, Yifeng was unable
      to
      procure new customers for Zhiye during this period. Yifeng plans to re-assess
      its marketing strategy in light of current market conditions and will continue
      to aggressively market and expand its client base.





Cost
      of Revenue




Cost
      of
      revenue for the three months ended June 30, 2007 was $94,355, a decrease of
      $30,653 or 24%, from $125,009 for the comparable period in 2006. The decrease
      in
      cost of revenue was primarily due to Yifeng not having fully realized the
      potential of its client base in the provision of environment engineering
      consulting services the second quarter by its subsidiary, Zhiye. Because revenue
      was less, the cost of revenue was correspondingly lower.





Gross
      Profit




Gross
      profit for the three months ended June 30, 2007 was $483,114, a decrease of
      $560,190 or 53%, from $1,043,304 for the comparable period of 2006. Our gross
      profit margin for the three months ended June 30, 2007 was 84% as compared
      with
      89% for the three months ended June 30, 2006. The decrease in our gross profit
      is primarily due to Yifeng not having fully realized the potential of its client
      base in the provision of environment engineering consulting services during
      the
      second quarter by its subsidiary, Zhiye.




Selling,
      General and Administrative Expenses




Selling,
      general and administrative expenses were $80,805 for the three months ended
      June
      30, 2007, an increase of $18,600 or 29.9% from $62,205 for the comparable period
      in 2006. The increase was principally due to our increased legal
      expenses.




Other
      Income




Other
      income were $11,080 and ($10,612) for the three months ended June 30, 2007
      and
      2006, respectively and the increase of $21,692 or 204% is
      principally attributable to loan interest that was paid by Harbin Tian
      Li Real Estate Co. We received $28,458 in interest payments for this loan for
      the quarter ended June 30, 2007 and the principal amount of the loan was repaid
      in its entirety in April 2007.





Net
      Income




Net
      income for the three months ended June 30, 2007 was $614,661, a decrease of
      $106,297 from $720,958 or 14.7% for the comparable period in 2006. The decrease
      was due to Yifeng not having fully realized the potential of its client base
      in
      the provision of environment engineering consulting services for the second
      quarter by its subsidiary, Zhiye. Yifeng intends to aggressively market and
      expand its client base.




**Liquidity
      and Capital Resources**





We
      finance our operation and meet capital expenditure requirements primarily
      through bank loans and operating income. We received a long-term loan of RMB40
      million (approximately $5 million) from China Industrial and Commercial Bank
      on
      November 18, 2004 for our landfill site construction. The loan was secured
      by
      our building. The loan has a term of sixty months maturing on November 15,
      2009.
      The annual interest rate of the first year of the loan is 7.605%. The annual
      interest rates for the following years are adjusted based on the bank’s official
      rates at that time. In addition to paying the quarterly interest, we are also
      required to make $241,648 in principal repayments every quarter. In 2006,
      principal repayments in the amount of $966,592 were made. The principal
      repayments for the three months ended June 30, 2007 amounted to $241,648. The
      balance of the bank loan as of June 30, 2007 was $2,416,480.




13




Cash
      and Cash Equivalent





Our
      cash
      and cash equivalent were $1,230,064 at the beginning of the six months ended
      June 30, 2007 and increased by $148,588 to $1,378,652 by the end of such period
      due to the repayment of the loan by Harbin Tian Li Real Estate Co.





Net
      cash provided by operating activities





Net
      cash
      provided by our operating activities was $294,391 for the six months ended
      June
      30, 2007, a decrease of $195,967 or 39.96% from $490,358 for the same period
      in
      2006. The decrease was primarily attributed to the lower income generated
      from our continuing
      operations during the quarter ended June 30, 2007.





Net
      cash provided by (used in) investing activities





Our investing
      activities provided
      $189,640 for the six months ended June 30, 2007, compared with a net cash used
      in the investing actitivities of $499,995 for the six months ended June
      30, 2007. The increase was attributable to our
      collection in full of the loan to Harbin Tian Li Real Estate
      Copany.




Net
      cash used in financing activities





Net
      cash
      used in financing activities decreased $317,986 or 39% to $489,342 for the
      six
      months ended June 30, 2007 from $807,328 for the same period in 2006. The
      decrease was due to the repayment of a related party loan in the amount of
      $324,032.





We
      intend
      to use our available funds to accelerate the development of our projects. We
      believe that our available funds will provide us with sufficient capital for
      the
      next twelve months; however, to the extent that we make acquisitions or
      establish additional facilities, we may require additional capital for the
      acquisition or for the operation of the combined companies. We cannot assure
      that such funding will be available, or if available, that it will be available
      on acceptable terms.




**Critical
      Accounting Policies and Estimates**





We
      have
      disclosed in Note 2 to our financial statements those accounting policies that
      we consider to be significant in determining our results of operations and
      our
      financial position which are incorporated by reference herein.





Management’s
      discussion and analysis of its financial condition and results of operations
      are
      based upon our consolidated financial statements, which have been prepared
      in
      accordance with accounting principles generally accepted in the United States.
      Our financial statements reflect the selection and application of accounting
      policies which require management to make significant estimates and judgments.
      Management bases its estimates on historical experience and on various other
      assumptions that are believed to be reasonable under the circumstances. We
      believe that the following reflect the more critical accounting policies that
      currently affect our financial condition and results of operations.


14


The
      significant accounting policies which we believe are the most critical to aid
      in
      fully understanding and evaluating our reported financial results include the
      following:




Management
      Estimates





The
      preparation of financial statements in conformity with generally accepted
      accounting principals requires management to make 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 amounts of revenues and expenses during the reporting period.
      Actual results could differ from those estimates.





Concentrations
      of Credit Risks





Our
      primary operations are now located in the PRC. Accordingly, our business,
      financial condition, and results of operations may be influenced by the
      political, economic, and legal environments in the PRC, in addition to the
      general state of the PRC economy. Our operations in the PRC are subject to
      special considerations and significant risks not typically associated with
      companies in North America and Western Europe. These include risks associated
      with, among others, the political, economic and legal environments legal
      environments and foreign currency exchange.





Our
      results may be adversely affected by changes in the political and social
      conditions in the PRC, and by changes in governmental policies with respect
      to
      laws and regulations, anti-inflationary measures, currency conversion and
      remittance abroad, and rates and methods of taxation, among other
      things.





Cash
      and Cash Equivalents




We
      consider all highly liquid instruments with a maturity of three months or less
      when purchased to be cash equivalents for purposes of classification in the
      balance sheets and statement of cash flows. Cash and cash equivalents consists
      of cash in bank and cash on hand.




Accounts
      Receivables





Accounts
      receivables are stated at net realizable value. Any allowance for doubtful
      accounts is established based on the management’s assessment of the
      recoverability of accounts and other receivables. A considerate amount of
      judgment is required in assessing the realization of these receivables,
      including the current credit worthiness of each customer and the related aging
      analysis. Based on this assessment, we consider all our accounts receivable
      fully collectible and no allowance for doubtful accounts was provided for the
      six months ended June 30, 2007 and 2006.




Inventories





Inventories
      consist of the raw materials, supplies, and goods to be used in the regular
      day-to-day operations. Inventories are valued at the lower of cost or market
      with cost determined on a first-in first-out basis.




Fixed
      Assets and Depreciation




Fixed
      assets are stated at cost. Depreciation is calculated on a straight-line basis
      over the useful lives of the related assets, which range from five to seventeen
      years.




Advance
      to Suppliers





Advance
      to suppliers represent the payments made and recorded in advance for goods
      and
      services. Advances were also made for the purchase of the materials and
      equipments of our construction in progress.




Income
      Taxes




Income
      taxes are accounted for in accordance with Statement of Financial Accounting
      Standards No. 109, "Accounting for Income Taxes". Under SFAS No. 109, deferred
      income taxes are recognized using the asset and liability method by applying
      tax
      rates to cumulative temporary differences based on when and how they are
      expected to affect the tax return. Deferred tax assets and liabilities are
      adjusted for income tax rate changes.




15




Net
      Income Per Common Share




Net
      income per common share has been calculated by taking the net income for the
      current period and dividing by the weighted average shares outstanding at the
      end of the period.




Revenue
      Recognition




We
      derive
      our primary revenue from the operations in the PRC through the wholly owned
      subsidiary of AEEC, Yifeng and Yifeng’s own subsidiary, Zhiye. Revenue from
      operations in the PRC is recognized when services are provided and payments
      of
      customers and collections are reasonably assured.




Foreign
      Currency Translation





The
      functional currency for our operations in the PRC is the Renminbi (“RMB”).
      Foreign currency transactions are translated at the applicable rates of exchange
      in effect at the transaction dates. Monetary assets and liabilities denominated
      in foreign currencies at the balance sheet date are translated at the applicable
      rates of exchange in effect at that date. Revenue and expenses are translated
      at
      the average exchange rates in effect during the reporting period.





Translation
      adjustments arising from the use of different exchange rates from period to
      period are included as a component of stockholders' equity as "Accumulated
      Other
      Comprehensive Income". Gains and losses resulting from foreign currency
      translations are included in Accumulated Other Comprehensive
      Income.




**Item
      3. Controls and Procedure**





(a)
       Disclosure Controls and Procedures.





Mr.
      Yun Wang, our Chief Executive Officer and Mr. Jianhua Sun, our Chief Financial
      Officer, evaluated the effectiveness of the design and operation of our
      disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
      under the Exchange Act, as of the end of the period covered by this report.
      Based on that evaluation, our officers concluded that our disclosure controls
      and procedures were effective and adequately designed to ensure that the
      information required to be disclosed by us in the reports we submit under the
      Exchange Act is recorded, processed, summarized and reported within the time
      periods specified in the applicable rules and forms and that such information
      was accumulated and communicated to our chief executive officer and chief
      financial officer, in a manner that allowed for timely decisions regarding
      required disclosure.





(b)  Changes
      in Internal Control over Financial Reporting





During
      the three months ended June 30, 2007, there has been no change in internal
      control over financial reporting that has materially affected, or is reasonably
      likely to materially affect our internal control over financial
      reporting.




A
      control
      system, no matter how well conceived and operated, can provide only reasonable,
      not absolute, assurance that the objectives of the control systems are met.
      Because of the inherent limitations in all control systems no evaluation of
      controls can provide absolute assurance that all control issues, if any, within
      a company have been detected. Such limitations include the fact that human
      judgment in decision-making can be faulty and that breakdowns in internal
      control can occur because of human failures, such as simple errors or mistakes
      or intentional circumvention of the established process.




16





PART
      II -
      OTHER INFORMATION.





**Item
      6. Exhibits**





(a)
            Exhibits





**Exhibit
                No.**
            
            **Description**31.1
            
            Certification
                pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e), as adopted
                pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Yun
                Wang;31.2
            
            Certification
                pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e), as adopted
                pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Jianhua
                Sun;32.1
            
            Certification
                pursuant to 18 U.S.C. 1350.





17




SIGNATURES





Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned thereunto
      duly authorized.




Eastern
                Environment Solutions, Corp.
              (Registrant)Dated:
                August 10, 2007
            
            /s/ Yun
                WangYun
                Wang
              Chief
                  Executive Officer




18