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

# Form 10-QSB

(Mark One)

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

For the quarterly
period ended  December 31, 2004

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

For the transition
period from __________ to __________

Commission file number
 000-30299

GLOBAL INNOVATIVE
SYSTEMS, INC. (Exact
name of small business issuer as specified in its charter)

|                                                                                                                              |                                             
|----------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------
|Nevada                                                        
(State or other jurisdiction of incorporation or organization) | 98-0217653
(IRS Employer Identification No.)

1703, Top Glory Tower,
262 Gloucester Road, Causeway Bay, Hong Kong (Address of principal
executive offices)

(852) 2546-1808  (Issuers
telephone number)

2114 Nanton Avenue,
Vancouver, B.C., Canada V6L 3C7  (Former name, former
address and former fiscal year, if changed since last report)

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

# APPLICABLE ONLY TO
ISSUERS INVOLVED IN BANKRUPTCY

# PROCEEDINGS DURING THE
PRECEDING FIVE YEARS

Check whether the issuer has filed
all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange
Act after the distribution of securities under a plan confirmed by a
court.     Yes [ ]     No  [ ]

# 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:  19,033,096 common shares issued and outstanding as of
December 31, 2004

Transitional Small Business
Disclosure Format (Check one):     Yes [   ]     No [X]

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2

# PART I 
FINANCIAL INFORMATION

# Item 1.  Financial
Statements.

# GLOBAL INNOVATIVE
SYSTEMS, INC.

# (A Development Stage
Company)

# CONSOLIDATED INTERIM
FINANCIAL STATEMENTS

# DECEMBER 31, 2004

# (Unaudited)

# (Stated in U.S.
Dollars)

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3

# GLOBAL INNOVATIVE
SYSTEMS, INC. (A Development Stage
Company)

# CONSOLIDATED INTERIM
BALANCE SHEET (Unaudited) (Stated in U.S.
Dollars)

|                                                         | DECEMBER 31
2004 | SEPTEMBER 30
2004
|-------------------------------------------------------- | ---------------- | -----------------
|ASSETS                                                   |                  |                  
|Current                                                  |                  |                  
|Cash and cash equivalents                                |                  |                  
|                                                        
|LIABILITIES                                              |                  |                  
|Current                                                  |                  |                  
|Accounts payable and accrued liabilities                 |                  |                  
|Short term notes payable                                 |                  |                  
|                                                        
|                                                         |                  |                  
|                                                        
|SHAREHOLDERS' DEFICIENCY                                 |                  |                  
|Common Stock(Note 4)                                     |                  |                  
|Authorized:                                              |                  |                  
|800,000,000 common shares, par value $0.001 per share    |                  |                  
|100,000,000 preferred shares, par value $0.001 per share |                  |                  
|Issued and outstanding:                                  |                  |                  
|6,033,096 common shares at December 31, 2003 and         |                  |                  
|6,033,096 common shares at September 30, 2004            |                  |                  
|Additional paid-in capital                               |                  |                  
|Deficit Accumulated During The Development Stage         |                  |                  
|                                                        
|                                                         |                  |                  
|                                                        
|                                                         |                  |                  
|                                                        

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4

# GLOBAL INNOVATIVE
SYSTEMS, INC. (A Development Stage
Company)

# CONSOLIDATED INTERIM
STATEMENT OF OPERATIONS (Unaudited) (Stated in U.S.
Dollars)

|                                                     | THREE MONTHS ENDEDDECEMBER 31 | CUMULATIVE
PERIOD FROM
INCEPTION
JANUARY 15
1977 TO
DECEMBER 31
|---------------------------------------------------- | ----------------------------- | ---------------------------------------------------------------
|                                                     | 2004                          | 2003                                                           
|Expenses                                             |                               |                                                                
|General and administrative                           |                               |                                                                
|Other Income (Expense)                               |                               |                                                                
|Interest, net                                        |                               |                                                                
|Gain on settlement of accounts payable               |                               |                                                                
|                                                    
|Net Loss From Continuing Operations                  |                               |                                                                
|                                                    
|Discontinued Operations                              |                               |                                                                
|Loss from operations of Niew Industries, Inc. to be  |                               |                                                                
|disposed, including gain on disposal, net of tax     |                               |                                                                
|effect of $0                                         |                               |                                                                
|Loss from operations of Energy Medicine Developments |                               |                                                                
|Corp., including gain on disposal, net of tax effect |                               |                                                                
|of $0                                                |                               |                                                                
|                                                    
|Net Loss From Discontinued Operations                |                               |                                                                
|                                                    
|Net Loss For The Period                              |                               |                                                                
|                                                    
|Loss Per Share, Basic and diluted                    |                               |                                                                
|Loss from continuing operations                      |                               |                                                                
|Loss from discontinued operations                    |                               |                                                                
|                                                    
|Loss Per Share                                       |                               |                                                                
|                                                    
|Weighted Average Number Of Shares Outstanding        |                               |                                                                
|                                                    

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5

# GLOBAL INNOVATIVE
SYSTEMS, INC. (A Development Stage
Company)

# CONSOLIDATED INTERIM
STATEMENT OF CASH FLOWS (Unaudited) (Stated in U.S.
Dollars)

|                                                          | THREE MONTHS ENDEDDECEMBER 31 | CUMULATIVE
PERIOD FROM
INCEPTION
JANUARY 15
1997 TO
DECEMBER 31
|--------------------------------------------------------- | ----------------------------- | ---------------------------------------------------------------
|                                                          | 2004                          | 2003                                                           
|Cash Flows From Operating Activities                      |                               |                                                                
|Net loss for the period                                   |                               |                                                                
|Adjustments To Reconcile Net Loss To Net Cash Provided By |                               |                                                                
|Operating Activities                                      |                               |                                                                
|Net loss from discontinued operations                     |                               |                                                                
|Gain on settlement of accounts payable                    |                               |                                                                
|Decrease in other receivables                             |                               |                                                                
|(Decrease) Increase in accounts payable and accrued       |                               |                                                                
|liabilities                                               |                               |                                                                
|                                                         
|Net cash used in continuing activities                    |                               |                                                                
|Net cash used in discontinued activities                  |                               |                                                                
|                                                         
|                                                          |                               |                                                                
|                                                         
|Cash Flows From Investing Activity                        |                               |                                                                
|Net cash from discontinued activities                     |                               |                                                                
|                                                         
|Cash Flows From Financing Activities                      |                               |                                                                
|Share capital issued                                      |                               |                                                                
|Payments on short term notes payable                      |                               |                                                                
|Net cash from discontinued activities                     |                               |                                                                
|                                                         
|                                                          |                               |                                                                
|                                                         
|Increase In Cash                                          |                               |                                                                
|Effect Of Foreign Exchange On Cash                        |                               |                                                                
|Cash, Beginning Of Period                                 |                               |                                                                
|                                                         
|Cash, End Of Period                                       |                               |                                                                
|                                                         

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6

# GLOBAL INNOVATIVE
SYSTEMS, INC. (A Development Stage
Company)

# NOTES TO CONSOLIDATED
INTERIM FINANCIAL STATEMENTS

# DECEMBER 31, 2004 (Unaudited)
(Stated in U.S.
Dollars)

|1. | BASIS
OF PRESENTATION
|-- | ---------------------

| | The
unaudited interim financial statements as of December 31, 2004 included herein have been
prepared without audit pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with United States generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been included. It
is suggested that these financial statements be read in conjunction with the September
30, 2004 audited financial statements and notes thereto.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | NATURE
OF OPERATIONS
|-- | --------------------

| | a) | Organization
| | -- | ------------

| | The
Company was incorporated in the State of Nevada on September 14, 1995 and was inactive
until January 31, 2000 when it closed a share exchange agreement with the stockholders of
Niew Industries, Inc. (Niew). The transaction resulted in Niew becoming a
wholly-owned subsidiary of the Company. Since the stockholders of Niew controlled 55% of
the combined entity after the merger and the business of Niew presents the only
operations of the new entity, the transaction was recorded as a recapitalization of Niew.
As such, the historical financial information of the Company is that of Niew.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Niew
was incorporated on January 15, 1997 under the British Columbia Company Act. The Company
was inactive until March 23, 1998 when it began the development of a twin rotating
asphalt mixing system. During the year ended September 30, 2003, the Company sold its
wholly-owned subsidiary, Niew Industries, Inc., for cash (CDN$70,000).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) | Development
Stage Activities
| | -- | ----------------------------

| | The
Company currently has limited operations and, in accordance with Statement of Financial
Accounting Standards (SFAS) No. 7  Accounting and Reporting by Development
Stage Enterprises, is considered a development stage company. The Company was
organized to pursue the acquisition and development of Energy Medicine Development Corp.
and Niew Industries, Inc. As at September 30, 2003, the Company has sold both of its
subsidiaries. During the quarter ended December 31, 2003, the Company was seeking new
business opportunities.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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7

# GLOBAL INNOVATIVE
SYSTEMS, INC. (A Development Stage
Company)

# NOTES TO CONSOLIDATED
INTERIM FINANCIAL STATEMENTS

# DECEMBER 31, 2004 (Unaudited) (Stated in U.S.
Dollars)

|2. | NATURE
OF OPERATIONS (Continued)
|-- | --------------------------------

| | c) | Going
Concern
| | -- | -------------

| | These
accompanying consolidated financial statements have been prepared on a going concern
basis, which contemplates the realization of assets, and the satisfaction of liabilities
and commitments in the normal course of business. As at December 31, 2004, the Company
has accumulated operating losses of $1,012,577 since its inception. The continuation of
the Company is dependent upon the continuing financial support of creditors, directors
and stockholders, and obtaining long term financing, as well as achieving and maintaining
a profitable level of operations through the successful product development or through
the acquisition of new businesses. Subsequent to the fiscal year end, the Company
commenced a restructuring which included negotiating debt settlement arrangements with
certain creditors, raising new equity financing sufficient to retire all outstanding
liabilities and to fund the restructuring, and consolidation of the capital of the
Company. Upon successful completion of the restructuring, management has determined the
Company will be better positioned to seek out and complete acquisitions and related
financings. While the Company is expending its best efforts to achieve the restructuring
and new acquisitions, there is no assurance that any such activity will be successful and
will generate funds necessary for continued operation of the Company.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | These
conditions raise substantial doubt about the Companys ability to continue as a
going concern. These financial statements do not include any adjustments that might arise
from this uncertainty.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | SIGNIFICANT
ACCOUNTING POLICIES
|-- | -------------------------------

| | The
financial statements of the Company have been prepared in accordance with generally
accepted accounting principles in the United States. Because a precise determination of
many assets and liabilities is dependent upon future events, the preparation of financial
statements for a period necessarily involves the use of estimates which have been made
using careful judgment.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
financial statements have, in managements opinion, been properly prepared within
reasonable limits of materiality and within the framework of the significant accounting
policies summarized below:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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8

# GLOBAL INNOVATIVE
SYSTEMS, INC. (A Development Stage
Company)

# NOTES TO CONSOLIDATED
INTERIM FINANCIAL STATEMENTS

# DECEMBER 31, 2004 (Unaudited) (Stated in U.S.
Dollars)

|3. | SIGNIFICANT
ACCOUNTING POLICIES (Continued)
|-- | -------------------------------------------

| | a) | Consolidation
| | -- | -------------

| | The
consolidated financial statements include the accounts of Global Innovative Systems, Inc.
and the following wholly-owned and majority-owned subsidiaries:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | -
   Niew Industries, Inc., a British Columbia corporation (100%)
| | -----------------------------------------------------------------

| | -
   Energy Medicine Developments Corp., a Delaware corporation (99.9%)
| | -----------------------------------------------------------------------

| | The
results of subsidiaries acquired during the year are consolidated from their effective
dates of acquisition. As of September 30, 2003, the Company has sold both of its
subsidiaries.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) | Foreign
Currency Translation
| | -- | ----------------------------

| | The
Companys primary functional currency is the U.S. dollar. Monetary assets and
liabilities resulting from transactions with foreign suppliers and customers are
translated at year end exchange rates. All other assets, liabilities and stockholders equity
are translated at historical exchange rates for past transactions, and at year end
exchange rates for current and future transactions. Revenue and expense accounts are
translated at the average exchange rates in effect during the year, except those related
to assets and liabilities, which are translated at historical exchange rates.
Re-measurement gains and losses are included in income.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c) | Earnings
(Loss) Per Share
| | -- | -------------------------

| | Basic
loss per share has been computed by dividing the loss for the year applicable to the
common stockholders by the weighted average number of common shares outstanding during
the years. There were no common equivalent shares outstanding at December 31, 2004.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | d) | Income
Taxes
| | -- | ------------

| | The
Company accounts for income taxes under the provisions of SFAS No. 109 Accounting
for Income Taxes. SFAS No. 109 requires recognition of deferred income tax assets
and liabilities for the expected future income tax consequences, based on enacted tax
laws, of temporary differences between the financial reporting and tax bases of assets
and liabilities.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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9

# GLOBAL INNOVATIVE
SYSTEMS, INC. (A Development Stage
Company)

# NOTES TO CONSOLIDATED
INTERIM FINANCIAL STATEMENTS

# DECEMBER 31, 2004 (Unaudited)
(Stated in U.S.
Dollars)

|4. | COMMON
STOCK
|-- | ------------

| | On
December 31, 2004, the board of directors authorized a forward stock split of the Companys
common shares issued and outstanding on a 4 for 1 basis. Per-share amounts in the
accompanying financial statements have been adjusted for the split. Prior to the split,
there were 1,508,274 shares of the Companys common stock issued and outstanding. As
of January 3, 2005, and prior to the acquisition of Tech Team Holding Corp. (note 5),
there were 6,033,096 shares of the Companys common stock issued and outstanding.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | SUBSEQUENT
EVENT
|-- | ----------------

| | As
previously disclosed, on September 21, 2004 and amended on October 21, 2004, the Company
entered into a Letter of Intent with Tech Team Holdings Limited (TTHL) to
acquire all the issued shares of TTHL. On January 7, 2005, we entered into a Share
Exchange Agreement (Agreement) with TTHL, a company incorporated under the
laws of the Territory of the Cayman Islands. The Agreement contemplated our company
acquiring all of the issued and outstanding shares of Tech Team.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
closing of the transactions contemplated in the Share Exchange Agreement and the
acquisition by our company of all of the issued and outstanding ordinary stock of Tech
Team was completed as of January 13, 2005. In accordance with the closing of the Share
Exchange Agreement on January 13, 2005, we acquired all of the 354,798,533 issued and
outstanding ordinary shares of Tech Team, in exchange for the issuance by our company of
13,000,000 shares of our common stock to the shareholders of Tech Team on the basis of
one share of our company for every 27.29219 ordinary shares of Tech Team. As a result of
the share exchange transaction, Tech Team became a wholly-owned subsidiary of our company
as of January 13, 2005. For financial statement purposes, Tech Team, the acquired entity,
is regarded as the predecessor entity as of January 13, 2005.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | As
a condition to the closing of the acquisition of Tech Team, the Company agreed to
complete a four for one split of its common stock (note 4). On January 3, 2005, the stock
split was effective. As of January 3, 2005, and prior to the acquisition of Tech Team,
there were 6,033,096 shares of the Companys common stock issued and outstanding.
All of the shares that were issued to the shareholders of Tech Team at the closing of the
Share Exchange Agreement were post-split shares.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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10

# Item 2.  Managements
Discussion and Analysis or Plan of Operation.

# FORWARD-LOOKING
STATEMENTS

This quarterly report contains
forward-looking statements as that term is defined in the Private Securities Litigation
Reform Act of 1995. These statements relate to future events or our future financial
performance. In some cases, you can identify forward-looking statements by terminology
such as may, will, should, expects,
plans, anticipates, believes, estimates,
predicts, potential or continue or the negative of
these terms or other comparable terminology. These statements are only predictions and
involve known and unknown risks, uncertainties and other factors, including the risks in
the section entitled Risk Factors, that may cause our or our industrys
actual results, levels of activity, performance or achievements to be materially different
from any future results, levels of activity, performance or achievements expressed or
implied by these forward-looking statements.

Although we believe that the
expectations reflected in the forward-looking statements are reasonable, we cannot
guarantee future results, levels of activity, performance or achievements. Except as
required by applicable law, including the securities laws of the United States, we do not
intend to update any of the forward-looking statements to conform these statements to
actual results.

Our consolidated financial statements
are stated in United States dollars (US$) and are prepared in accordance with United
States generally accepted accounting principles. The following discussion should be read
in conjunction with our consolidated financial statements and the related notes that
appear elsewhere in this quarterly report.

In this quarterly report, unless
otherwise specified, all dollar amounts are expressed in United States dollars. All
references to common shares refer to the common shares in our capital stock.

As used in this quarterly report, the
terms we, us and our mean Global Innovative Systems,
Inc., unless otherwise indicated.

GENERAL OVERVIEW

We were incorporated in the State of
Nevada under the name Legacy Bodysentials Inc. on September 14, 1995. On
September 25, 1996, we changed our name to Legacy Minerals Inc.. On May 18,
1998, we changed our name to Global Commonwealth Inc.. On November 12, 1999,
we changed our name to our current name of Global Innovative Systems, Inc.. As
of December 31, 2004, our principal executive office was located at 2114 Nanton Avenue,
Vancouver, BC V6L 3C7. Subsequent to the quarter ended December 31, we changed our
principal executive office to 1703, Top Glory Tower, 262 Gloucester Road, Causeway Bay,
Hong Kong. Our telephone number is (852) 2546-1808 and our facsimile number is (852)
2546-6878.

Subsequent to the quarter ended
December 31, 2004, our company entered into a Share Exchange Agreement dated January 7,
2005, among our company, Tech Team Holdings Limited, a company incorporated under the laws
of the Territory of the Cayman Islands, Bondy Tan and the shareholders of Tech Team as set
out in the Share Exchange Agreement. The Share Exchange Agreement contemplated our company
acquiring all of the issued and outstanding shares of Tech Team.

The closing of the transactions
contemplated in the Share Exchange Agreement and the acquisition by our company of all of
the issued and outstanding ordinary stock of Tech Team was completed as of January 13,
2005. We acquired all of the 354,798,533 issued and outstanding ordinary shares of Tech
Team, in exchange for the issuance by our company of 13,000,000 shares of our common stock
to the shareholders of Tech Team on the basis of one share of our company for every
27.29219 ordinary shares of Tech Team. As a result of the share exchange transaction, Tech
Team became a wholly-owned subsidiary of our company as of January 13, 2005.

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11

As the former shareholders of Tech
Team hold 68.3% of our shares, and because the business of Tech Team represents the only
business operations of our company, the acquisition of Tech Team is deemed to be a reverse
acquisition of our company for accounting purposes. Tech Team, the acquired entity, is
regarded as the predecessor entity as of January 13, 2005. Starting with the periodic
report for the quarter in which the acquisition was consummated, our company will file
quarterly and annual reports based on the March 31 fiscal year end of Tech Team. Such
financial statements will depict the operating results of Tech Team, including the
acquisition of our company, from January 13, 2005.

CURRENT BUSINESS

Following the close of the Share
Exchange Agreement, our company commenced the business of selling energy-saving products
through Tech Team, our wholly-owned operating subsidiary. Tech Team was incorporated
pursuant to the laws of the Territory of the Cayman Islands on February 15, 2002.

Tech Team is a developer,
manufacturer and integrator of energy-saving products and technologies. Tech Teams
primary product is the Eco-Pro® Energy Saver, a proprietary system which reduces
energy consumed by lighting and other electrical equipment and acts as a protective buffer
against voltage surges and other distortions. The technology can be applied to a broad
range of commercial, industrial, civil and residential applications, including commercial
buildings, office buildings, factories, industrial plants and street lighting. In
addition, Tech Team distributes complementary energy-efficiency products which can be
integrated with the Eco-Pro Energy Saver system. Tech Team also provides consulting and
customer training services which enables Tech Team to offer comprehensive energy
management solutions to prospective clients.

The Eco-Pro Energy Saver is a
computer-controlled electronic device which regulates electric power flow and voltage. It
consists of control panels containing electrical parts in a free standing enclosure which
is connected between a buildings power line (power input) and its electrical
circuits (power output). Eco-Pro Energy Saver is programmable to regulate the amount of
power flowing to energy-using devices, resulting in energy conservation. The product also
acts as a buffer to eliminate negative effects of fluctuations in the power supply, such
as voltage surges and sags. The Eco-Pro Energy Saver has an on-board computer with
intelligent software that provides self-diagnosis and control. Tech Team manufactures the
Eco-Pro Energy Saver in varying sizes and capacities, as well as specialized units to
serve specific applications such as centralized air-conditioning and streetlight
illumination. The Eco-Pro Energy Saver has a life expectancy of 30 years and Tech Team
provides a 10-year manufacturers warranty on all non-consumable parts and labor.

The Eco-Pro Energy Saver reduces the
amount of energy a customer requires to power lighting and other electrical equipment by
approximately 10-50%, depending on the specific customer and application. This results in
direct electricity cost savings for customers. The reduced electricity usage also reduces
heat damage generated by lighting and other electrical equipment. This prolongs the
operating life of the customers lighting and electrical equipment, which results in
savings from capital costs and maintenance costs. The Eco-Pro Energy Saver also acts as a
buffer against distortions and disturbances in the power supply. This stabilizes and
protects customers equipment and operations against uncontrollable and potentially
damaging voltage surges, lightening strikes and temporary power interruptions. The Eco-Pro
Energy Saver was also designed to interface directly with existing power lines, electrical
panels and electrical circuits, enabling the unit to be installed either new or as a
retrofit without requiring modification to most customers existing components.

Apart from the Eco-Pro Energy Saver
products, Tech Team distributes 15 other energy-saving products. These products are
sourced from third party companies mainly in Europe and North America and sold under
distributorship agreements between Tech Team and the other companies. Each of these
products is a complementary energy conservation or energy efficiency product which can be
integrated with the Eco-Pro Energy Saver, thus enabling Tech Team to offer comprehensive
energy management solutions to prospective clients.

For a more comprehensive discussion
regarding our companys products and services, please see the information provided
under the heading Current Business included in our current report on Form 8-K
filed January 18, 2005, as amended in our current report on Form 8-K/A filed January 26,
2005.

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12

PLAN OF OPERATION

The following discussion should be
read in conjunction with our financial statements and the related notes that appear
elsewhere in this quarterly report. The following discussion contains forward-looking
statements that reflect our plans, estimates and beliefs. Our actual results could differ
materially from those discussed in the forward-looking statements. Factors that could
cause or contribute to such differences include, but are not limited to, those discussed
below and elsewhere in this quarterly report, particularly in the section entitled
Risk Factors.

Market

The market for our products is
primarily focussed on medium-to-large-scale users of electrical energy across a wide range
of sectors and industries. Industrial markets include manufacturing facilities, chemical
plants, refineries, industrial parks and warehouses. Commercial markets include office
buildings, hotels, shopping centers, racetracks, golf courses, casinos, stadiums, large
restaurants, cinemas, theatres, theme parks, supermarkets and retail chains. Municipal
markets include airports, train stations, subway stations, water treatment plants, police
stations and street lighting. Institutional markets include hospitals, sanitariums and
universities. Residential markets include large residential estates, condominium complexes
and apartment buildings.

Our target market to date has
primarily been large commercial and industrial customers in Hong Kong, China, Macau and
Singapore. All sales to date have been within these four jurisdictions. The current target
market is primarily large commercial, industrial and municipal electricity consumers in
Hong Kong, China, Singapore, Indonesia and the Philippines. Once these markets are
developed further, the next stage of geographical expansion is targeted to include
commercial, industrial and municipal electricity consumers in Thailand, Taiwan and North
America, where our company has initiated preliminary discussions related to direct sales,
distributorship agreements, partnership agreements and joint venture agreements. Our
long-term target market includes the Arabian Gulf States.

Within the market of mainland China,
our companys initial target market is the Guangdong Province and the Pearl River
Delta. Guangdong Province is one of the most affluent provinces in China, is among the top
three Chinese provinces in terms of gross domestic product per capita and is a major
commercial and manufacturing region in China. Our ability to penetrate this market is
enhanced by the markets proximity to Hong Kong, where Tech Teams operations
are based. Additionally, the Pearl River Delta is one of the major strategic economic
regions of China and an area with a large base of potential clients. We estimate that the
mainland China market will account for approximately 70% of our total sales revenue within
the next few years.

Demand for Products

Customer demand for our energy
management products and services is primarily cost-savings. Cost-savings result from the
use of our energy management products and services from energy conservation and energy
efficiency. Energy conservation is the reduction of electricity consumption by reducing
waste. This results in direct cost savings on monthly power bills for customers. Energy
efficiency is the reduction or elimination of distortions, disturbances, and pollution in
the flow of electricity within a customers electrical systems. This results
primarily in indirect cost savings through decreased production losses, prolonged lifespan
of equipment and reduced maintenance costs. Our products address the demand for both
energy conservation and energy efficiency.

There are several factors underlying
the increasing demand for energy management products and services in our targeted markets
in Asia, both at the macro and micro levels. These factors include the following:

| | Economic
globalization is intensifying competition, leading firms to seek greater operating
efficiency and greater cost control through savings in energy costs. In China, firms face
escalating competition both from domestic entities, as Chinas economic reforms
continue, and from foreign entities as China opens its market to foreign investment as a
result of its entry into the World Trade Organization;
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Increasing
global energy prices are driving net energy importers to conserve foreign exchange
reserves while ensuring an adequate supply of energy to sustain development. Most of the
nations in our target market are net energy importers. This, in turn, leads governments
to seek and implement technologies and products which reduce energy consumption and
enhance energy efficiency;
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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13

| | Rapid
urbanization and industrialization in our target markets has led to a major increase in
electricity consumption. There has, however, been a lag in electricity production to meet
the growing demand. As a result of this supply and demand imbalance, governments and
electricity consumers seek ways to enhance energy conservation and energy efficiency;
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Due
to the continued increase and cost of environmental regulations in our target markets,
demand for cost savings and for environmentally-friendly products and services has
increased;
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Distortions,
disturbances and voltage surges in the electricity flow are increasing due to outdated
power-generation equipment being used at ever-increasing output levels in Asia. This has
led to a greater risk and frequency of electricity wastage and damage to electrical
equipment and operational downtime, all of which drive the demand for products that
enhance electricity efficiency;
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Government
marketing initiatives are increasing the awareness among electricity consumers in Asia of
the benefits associated with energy conservation and efficiency, resulting in enhanced
demand for energy management products and services; and
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
terms of energy conservation, a 10% reduction in consumption can translate into
significant savings in costs for a major energy importer such as China. Likewise, energy
efficient technologies and systems that boost the efficiency of existing electricity
supplies can serve as a lower-cost alternative to the conventional capital-intensive
solution of building additional power plants.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Sales and Marketing
Strategy

Our company estimates that Tech Team
will spend approximately $470,000 on marketing and sales activities during Tech
Teams current fiscal year ending March 31, 2005, excluding salaries for internal
sales and marketing personnel.

In business development, our priority
is seizing opportunities in the market for energy management products and services. Given
the market demand and the pre-emptive nature of energy management technologies, our
primary objective in the short-to-medium term is seizing maximum market share. The broad
geographic span of our target market and emphasis on expansion has resulted in our focus
on developing distribution alliances and partnerships as the preferred means of business
development. Our company intends to leverage external resources to minimize overhead and
to seek market development by tapping into existing client pools of distributors and
marketing partners. These arrangements may take the form of commercial agreements or joint
ventures. While expanding our direct sales, we have also entered into non-exclusive
distribution and marketing agreements with a number of partners in order to increase our
market share.

Sales Channels

Marketing, sales and distribution of
our products are accomplished through the following three main channels:

| | Direct
Marketing: We market and sell our products directly to customers and potential
customers through an internal team of sales professionals. These personnel target large
customers in Hong Kong, China and Macau. In Tech Teams fiscal year ended March 31,
2004, approximately 12% of total sales revenue was derived from direct marketing efforts.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Distributorships:
We market and sell our products in Hong Kong, China, Macau and Singapore through
non-exclusive distributorship agreements. We currently have distributorship agreements
within these regions with five private companies and one quasi-governmental organization.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

14

| | The
Hong Kong Productivity Council has endorsed our products, and the council introduces our
energy management solutions to its affiliates and members via seminars and exhibitions.
The council intends to spread market awareness of our company, initially targeting nine
Productivity Centers in China.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We
have signed a Marketing and Sales Cooperation Agreement with Shanghai ISSON Power Quality
Co. Ltd., a subsidiary of the Baoshan Steel Group. This is an institute which develops
and promotes energy efficiency solutions for entities throughout China.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
distributorship agreements enable our company to access the distributors existing
clientele and relationship network, which allows for market penetration with minimal
overhead expenses. In Tech Teams fiscal year ended March 31, 2004, approximately
88% of total sales revenue was derived from sales through distributorship agreements.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Partnerships
and Joint Ventures: We have formed and continue to pursue the formation of
partnerships and joint venture agreements with facility developers, power authorities,
banks, and other large companies in our current target market. Through such agreements,
we intend to sell our products directly to our partners.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Sales Agreements

Our company utilizes the following
three types of sales agreements: service contracts, direct sales contracts and trading
contracts. For service contracts, the customer pays a monthly fee over a 60-month term.
The fee is typically calculated at 50% of the energy cost savings that result from the use
of our products based on an energy audit conducted by Tech Team. To date, the average
energy cost savings for our customers has been approximately 20%. For direct sales
contracts, customers purchase the equipment directly from Tech Team. Customers typically
pay 30% of the purchase price as a deposit upon signing the contract, 20% upon delivery of
the equipment, 30% upon installation of the equipment and 20% upon issuance of a
performance report. Trading contracts involve the sale of our products to distributors and
agents. Tech Team typically receives a letter of credit upon execution of the sales
agreement between the distributor or agent and the customer, with full payment received
upon delivery of the product to the customer.

Financing Option

Our company has established
relationships with several financial institutions to provide a financing option to
clients. Through such financing arrangements, up to 100% of the purchase price of our
products may be loaned to clients. These financial institutions include Inchroy Credit
Corporation Limited, HSBC Limited, Hang Seng Bank and CIT Group. These arrangements enable
Tech Team to offer customers the ability to implement energy management solutions with
little or no up-front capital investment.

Cash Requirements

Our business plan calls for
significant expenses necessary to continue the development of our products and expand our
position in the market. We have estimated that our company will require approximately
$2 million to carry out our business plan in our fiscal year ended March 31, 2005.
However, there is no assurance that actual cash requirements will not exceed our
estimates. We may need to raise additional funds to:

| |  support
our planned rapid growth;
| | -----------------------------------

| |  develop
new or enhanced services and technologies;
| | ----------------------------------------------------

| |  increase
our marketing efforts;
| | ---------------------------------

| |  acquire
complementary businesses or technologies; and/or
| | ----------------------------------------------------------

| |  respond
to competitive pressures or unanticipated requirements.
| | -----------------------------------------------------------------

---

15

We have not yet achieved sustainable
positive cash flows. As such, we will depend to a large extent on outside capital over the
near-term to fund our capital needs. Such outside capital may be obtained from additional
debt or equity financing. We do not currently have any arrangement for financing and there
is no assurance that capital will be available to meet our continuing development costs
or, if the capital is available, that it will be on terms acceptable to us. The issuance
of additional equity securities by us would result in a dilution in the equity interests
of our current stockholders. Obtaining commercial loans, assuming those loans would be
available, will increase our liabilities and future cash commitments. If we are unable to
obtain financing in the amounts and on terms deemed acceptable to us, we may be unable to
implement our business and growth strategies, respond to changing business or economic
conditions, withstand adverse operating results, consummate desired acquisitions or
compete effectively.

Employees

As of January 13, 2005, Tech Team had
44 employees, of which 40 were full-time and 4 were part-time employees. Of these
employees, 5 were senior management, 11 were managerial, administrative, finance and
accounting staff, 14 were engineers and technicians engaged in research, development,
consulting and training service, 7 were engaged in sales and marketing, and 7 were engaged
in manufacturing and other operational activities. Of those employees, none are covered by
collective bargaining agreements. We plan to hire a chief financial officer before the end
of our 2005 fiscal year.

Research and Development

Our companys research and
development efforts are focused on enhancing the Eco-Pro Energy Saver products including:
(i) periodic re-design of products and incorporation of new technologies to improve
performance and manufacturability; (ii) design of new product lines for additional
specialized applications; and (iii) expansion and adaptation of existing products to
accommodate the requirements of larger and smaller electricity consumers. Research and
development efforts are conducted in-house, as well as through an agreement with Guilin
Electrical Equipment Scientific Research Institute, a leading governmental research
institute in China under the Ministry of Mechanical Industry. Tech Teams total
research and development costs charged to operations were approximately $70,000 during the
past two fiscal years. We anticipate our total research and development expenditures will
be approximately $53,000 for our current fiscal year ending March 31, 2005.

CRITICAL ACCOUNTING
POLICIES

Consolidation

The consolidated financial statements
include the accounts of our company and the following wholly-owned and majority-owned
subsidiaries:

| | 
            Niew Industries, Inc., a British Columbia corporation (100%)
| | --------------------------------------------------------------------------

| | 
            Energy Medicine Developments Corp., a Delaware corporation (99.9%)
| | --------------------------------------------------------------------------------

The results of subsidiaries acquired
during the year are consolidated from their effective dates of acquisition. As of
September 30, 2003, our company has sold both of its subsidiaries.

Foreign Currency
Translation

Our companys primary functional
currency is the United States dollar. Monetary assets and liabilities resulting from
transactions with foreign suppliers and customers are translated at year end exchange
rates. All other assets, liabilities and stockholders equity are translated at
historical exchange rates for past transactions, and at year end exchange rates for
current and future transactions. Revenue and expense accounts are translated at the
average exchange rates in effect during the year, except those related to assets and
liabilities, which are translated at historical exchange rates. Re-measurement gains and
losses are included in income.

---

16

Earnings (Loss) Per Share

Basic loss per share has been
computed by dividing the loss for the year applicable to the common stockholders by the
weighted average number of common shares outstanding during the years. There were no
common equivalent shares outstanding at December 31, 2004.

Income Taxes

Our company accounts for income taxes
under the provisions of SFAS No. 109  Accounting for Income Taxes. SFAS
No. 109 requires recognition of deferred income tax assets and liabilities for the
expected future income tax consequences, based on enacted tax laws, of temporary
differences between the financial reporting and tax bases of assets and liabilities.

Going Concern

We have suffered recurring losses
from operations. The continuation of our company as a going concern is dependent upon our
company attaining and maintaining profitable operations and raising additional capital.
The financial statements do not include any adjustment relating to the recovery and
classification of recorded asset amounts or the amount and classification of liabilities
that might be necessary should our company discontinue operations.

Due to the uncertainty of our ability
to meet our current operating expenses and the capital expenses noted above, in their
report on the annual consolidated financial statements for the year ended September 30,
2004, our independent auditors included an explanatory paragraph regarding concerns about
our ability to continue as a going concern. Our consolidated financial statements contain
additional note disclosures describing the circumstances that lead to this disclosure by
our independent auditors.

The continuation of our business is
dependent upon us raising additional financial support. The issuance of additional equity
securities by us could result in a significant dilution in the equity interests of our
current stockholders. Obtaining commercial loans, assuming those loans would be available,
will increase our liabilities and future cash commitments.

There are no assurances that we will
be able to obtain further funds required for our continued operations. As noted herein, we
are pursuing various financing alternatives to meet our immediate and long-term financial
requirements. There can be no assurance that additional financing will be available to us
when needed or, if available, that it can be obtained on commercially reasonable terms. If
we are not able to obtain the additional financing on a timely basis, we will be unable to
conduct our operations as planned, and we will not be able to meet our other obligations
as they become due. In such event, we will be forced to scale down or perhaps even cease
our operations.

# RISK FACTORS

RISKS RELATED TO OUR
BUSINESS

We will require significant
additional financing, the availability of which cannot be assured, and if our company is
unable to obtain such financing, our business may fail.

Our business plan calls for
significant expenses necessary to continue the development of our products and expand our
position in the market. We have estimated that our company will require approximately
$2 million to carry out our business plan in the fiscal year ended March 31, 2005.
However, there is no assurance that actual cash requirements will not exceed our
estimates. We may need to raise additional funds to:

| |  support
our planned rapid growth;
| | -----------------------------------

| |  develop
new or enhanced services and technologies;
| | ----------------------------------------------------

---

17

| |  increase
our marketing efforts;
| | ---------------------------------

| |  acquire
complementary businesses or technologies; and/or
| | ----------------------------------------------------------

| |  respond
to competitive pressures or unanticipated requirements.
| | -----------------------------------------------------------------

We have not yet achieved sustainable
positive cash flows. As such, we will depend to a large extent on outside capital over the
near-term to fund our capital needs. Such outside capital may be obtained from additional
debt or equity financing. We do not currently have any arrangement for financing and there
is no assurance that capital will be available to meet our continuing development costs
or, if the capital is available, that it will be on terms acceptable to us. The issuance
of additional equity securities by us would result in a dilution in the equity interests
of our current stockholders. Obtaining commercial loans, assuming those loans would be
available, will increase our liabilities and future cash commitments. If we are unable to
obtain financing in the amounts and on terms deemed acceptable to us, we may be unable to
implement our business and growth strategies, respond to changing business or economic
conditions, withstand adverse operating results, consummate desired acquisitions or
compete effectively.

We operate in a highly-competitive
industry and our failure to compete effectively may adversely affect our ability to
generate revenue.

Management is aware of similar
products which compete directly with our products and some of the companies developing
these similar products have significantly greater financial, technical and marketing
resources, larger distribution networks, and generate greater revenue and have greater
name recognition than us. These companies may develop products superior to those of our
company. Such competition will potentially affect our chances of achieving profitability,
and ultimately adversely affect our ability to continue as a going concern.

This may place us at a disadvantage
in responding to our competitors pricing strategies, technological advances,
marketing campaigns, global expansion, alliances and other initiatives. Some of our
competitors conduct more extensive promotional activities and offer lower prices to
customers than we do, which could allow them to gain greater market share or prevent us
from increasing our market share. In the future, we may need to decrease our prices if our
competitors continue to lower their prices. Our competitors may be able to respond more
quickly to new or changing opportunities, technologies and customer requirements. Further,
to the extent our competitors are able to attract and retain customers based on the
convenience of one-stop shopping or because of international operations or arrangements,
our business and ability to grow could be materially adversely affected. To be successful,
we must establish and strengthen our brand awareness, effectively differentiate our
product line from those of our competitors and build our international partnerships. To
achieve this we may have to substantially increase marketing and research and development
in order to compete effectively.

Rapid technological changes in our
industry could render our products non-competitive or obsolete and consequently affect our
ability to generate revenues.

Currently, we derive substantially
all of our revenues from the sale of electrical energy-saving products. The electrical
energy-saving industry is characterised by rapid technological change, new products and
services, new sales channels, evolving industry standards and changing client preferences.
Our success will depend, in significant part, upon our ability to make timely and
cost-effective enhancements and additions to our technology and to introduce new products
and services that meet customer demands. We expect new products and services to be
developed and introduced by other companies that compete with our products and services.
The proliferation of new electrical energy-saving technology may reduce demand for our
Eco-Pro Energy Saver brand. There can be no assurance that we will be successful in
responding to these or other technological changes, to evolving industry standards or to
new products and services offered by our current and future competitors. In addition, we
may not have access to sufficient capital for our research and development needs in order
to develop new products and services.

---

18

We could lose our competitive
advantages if we are not able to protect our proprietary technology and intellectual
property rights against infringement, and any related litigation could be time-consuming
and costly.

Our success and ability to compete
depends in part on our proprietary technology incorporated in our products. If any of our
competitors copy or otherwise gain access to our proprietary technology or develop similar
technologies independently, we would not be able to compete as effectively. We consider
our registered trademark invaluable to our ability to continue to develop and maintain the
goodwill and recognition associated with our brand. The measures we take to protect the
proprietary technology, and other intellectual property rights, which presently are based
upon a combination of patent and trademark laws, may not be adequate to prevent their
unauthorized use. Further, the laws of foreign countries may provide inadequate protection
of such intellectual property rights. We may need to bring legal claims to enforce or
protect such intellectual property rights. Any litigation, whether successful or
unsuccessful, could result in substantial costs and a diversion of corporate resources. In
addition, notwithstanding any rights we have secured to our intellectual property, other
persons may bring claims against us claiming that we have infringed on their intellectual
property rights, including claims that our intellectual property rights are not valid. Any
claims against us, with or without merit, could be time-consuming and costly to defend or
litigate, divert our attention and resources, result in the loss of goodwill associated
with our trademarks or require us to make changes to our technologies.

We hold no patents on our products
and may not be able to protect our proprietary technology.

Although we have not obtained patent
protection for any of our products, we have sought to protect our proprietary technology
through a combination of trademark and trade secret laws and other forms of intellectual
property protection. We have filed patent applications in China, Hong Kong and the United
States and have patents pending for the Eco-Pro Energy Saver product as an energy
saving device. There is no assurance that these patents will be granted.

We own trademark registrations for
the name and logo for Eco-Pro in China, Hong Kong, Macau, Thailand and the
European Community. There can be no assurance that our operations do not or will not
violate the intellectual property rights of others, that they would be upheld if
challenged or that we, would, in such an event, not be prevented from using such
companys intellectual property rights, any of which could have a material adverse
effect on our business, financial condition and results of operations.

In addition, our failure to obtain
licenses required from third parties for other technology and intellectual property could
delay or prevent the development, manufacture or sale of our products. Although we rely,
in part, on contractual provisions to protect our trade secrets and proprietary know-how,
there is no assurance that these agreements will not be breached, that we would have
adequate remedies for any breach or that our trade secrets will not otherwise become known
or be independently developed by competitors. Although no lawsuits against us regarding
infringement of any existing patents or other intellectual property rights are pending,
nor have any claims been asserted, there can be no assurance that such infringement claims
will not be asserted by third parties in the future. There also can be no assurance in the
event of such claims of infringement that we will be able to obtain licenses on reasonable
terms.

Our involvement in any intellectual
property dispute or action to protect trade secrets and know-how, including actions
brought by us, could result in a material adverse effect on our business. Adverse
determinations in litigation in which we may become involved could subject us to
significant liabilities to third parties, require us to grant licenses to or seek licenses
from third parties and prevent us from manufacturing and selling our products. Any of
these situations could have a material adverse effect on our business, financial condition
and results of operations.

We may not be able to hire and
retain qualified personnel to support our growth and if we are unable to retain or hire
such personnel in the future, our ability to improve our products and implement our
business objectives could be adversely effected.

To continue our growth, we will need
to recruit additional senior management personnel, including persons with financial and
sales experience. In addition, we must hire, train and retain a significant number of
other skilled personnel, including persons with experience in engineering and energy
management consulting. We have encountered competition for these personnel. We may not be
able to find or retain qualified personnel, which would have a material adverse impact on
our business.

---

19

Our growth could be impaired if we
are not able to develop and maintain the relationships we need to implement our
international strategy.

Our growth will depend, in large
part, on the success of our international strategy. We have limited experience in
marketing and selling our products outside of Hong Kong, China and Macau. We will depend
on partnerships and/or joint ventures in international markets to help us build our
international operations and sales. We depend upon each of our international partners to
provide marketing and relationship building expertise, and a base of existing customers.
If we are unable to develop and maintain these relationships, or to develop additional
relationships in other countries, our ability to penetrate, and successfully compete in
foreign markets would be materially adversely affected. To fully implement our
international strategy, we will need to expand our current relationships with
international partners. These partners may not agree to expand these relationships.

Our growth could be impaired if we
do not successfully handle certain risks associated with international business.

There are risks inherent in doing
business in international markets, including:

| |  fluctuations
in currency exchange rates;
| | ------------------------------------------

| |  difficulties
in staffing and managing foreign operations;
| | -----------------------------------------------------------

| |  changes
in regulatory requirements, tariffs and other trade barriers;
| | -----------------------------------------------------------------------

| |  potentially
adverse tax consequences; and
| | -------------------------------------------

| |  inadequate
protection for intellectual property rights.
| | ---------------------------------------------------------

One or more of these factors may make
it difficult for us to fully implement our international business strategies and may
materially adversely affect our current or future international operations.

Any changes in the political and
economic policies of, or any new regulations implemented by, the Chinese government could
affect, or even restrict, the operation of our business and our ability to generate
revenues.

Our business is currently focused on
the sale of electrical energy-saving products in China. Accordingly, our business, results
of operations and financial conditions are affected to a significant degree by any
economic, political and legal developments in China.

Since the late 1970s, the Chinese
government has been reforming its economic system. Although we believe that economic
reform and the macroeconomic measures adopted by the Chinese government have had and will
continue to have a positive effect on the economic development in China, there can be no
assurance that the economic reform strategy will not from time to time be modified or
revised. Some modifications or revisions, if any, could have a material adverse effect on
the overall economic growth of China and the development of electrical energy-saving
products in China. Any such changes would have a material adverse effect on our business.
Furthermore, there is no guarantee that the Chinese government will not impose other
economic or regulatory controls that would have a material adverse effect on our business.
Any changes in the political, economic and social conditions in China, adjustments in
policies by the Chinese government or changes in laws and regulations on the sale of
electrical energy-saving products could affect the manner in which we operate our business
and restrict or prohibit transactions initiated or conducted by our company. Any such
changes or new regulations could affect our ability to develop and sell our products and
therefore affect our ability to generate revenues.

Chinas current and future
economic, political and social conditions, as well as government policies could have an
adverse effect on our companys overall financial condition and ability to generate
revenues and profits.

We expect that a substantial portion
of our business, assets and operations of our company will be located and conducted in
China. The economy of China differs from the economies of most developed countries in many
respects, including:

---

20

| |  government
involvement;
| | -------------------------

| |  level
of development;
| | -----------------------

| |  growth
rate;
| | --------------

| |  control
of foreign exchange; and
| | ----------------------------------

| |  allocation
of resources.
| | --------------------------

While Chinas economy has
experienced significant growth in the past twenty years, growth has been uneven, both
geographically and among various sectors of the economy. The Chinese government has
implemented various measures to encourage economic growth and guide the allocation of
resources. Some of these measures benefit the overall economy of China, but may also have
a negative effect on us. For example, our operating results and financial condition may be
adversely affected by government control over capital investments or changes in tax
regulations applicable to us. If there are any changes in any policies by the Chinese
government and our business is negatively affected as a result, then our financial
results, including our ability to generate revenues and profits, will also be negatively
affected.

RISKS RELATED TO OUR
INDUSTRY

A drop in the retail price of
electrical energy may have a negative effect on our business.

A customers decision to
purchase our companys products is primarily driven by the payback on the investment
resulting from the increased energy savings. Although management believes that current
retail energy prices support a reasonable return on investment for our products, there can
be no assurances that future retail pricing of electrical energy will remain at such
levels.

RISKS RELATED TO OUR
COMMON STOCK

A decline in the price of our
common stock could affect our ability to raise further working capital and adversely
impact our operations.

A prolonged decline in the price of
our common stock could result in a reduction in the liquidity of our common stock and a
reduction in our ability to raise capital. Because our operations have been primarily
financed through the sale of equity securities, a decline in the price of our common stock
could be especially detrimental to our liquidity and our continued operations. Any
reduction in our ability to raise equity capital in the future would force us to
reallocate funds from other planned uses and would have a significant negative effect on
our business plans and operations, including our ability to develop new products and
continue our current operations. If the stock price declines, there can be no assurance
that we can raise additional capital or generate funds from operations sufficient to meet
our obligations. We believe the following factors could cause the market price of our
common stock to continue to fluctuate widely and could cause our common stock to trade at
a price below the price at which you purchase your shares:

| |  actual
or anticipated variations in our quarterly operating results,
| | ----------------------------------------------------------------------

| |  announcements
of new services, products, acquisitions or strategic relationships by us or our
competitors,
| | ------------------------------------------------------------------------------------------------------------

| |  trends
or conditions in the energy management services industry,
| | ------------------------------------------------------------------

| |  changes
in accounting treatments or principles,
| | -------------------------------------------------

| |  changes
in earnings estimates by securities analysts and in analyst recommendations,
| | --------------------------------------------------------------------------------------

| |  changes
in market valuations of other energy management services companies, and
| | ---------------------------------------------------------------------------------

---

21

| |  general
political, economic and market conditions.
| | ----------------------------------------------------

The market price for our common stock
may also be affected by our ability to meet or exceed expectations of analysts or
investors. Any failure to meet these expectations, even if minor, could materially
adversely affect the market price of our common stock.

If we issue additional shares in
the future, it will result in the dilution of our existing stockholders.

Our certificate of incorporation
authorizes the issuance of 800,000,000 shares of common stock and 100,000,000 shares of
preferred stock. Our board of directors has the authority to issue additional shares up to
the authorized capital stated in the certificate of incorporation. Our board of directors
may choose to issue some or all of such shares to acquire one or more businesses or to
provide additional financing in the future. The issuance of any such shares will result in
a reduction of the book value or market price of the outstanding shares of our common
stock. If we do issue any such additional shares, such issuance also will cause a
reduction in the proportionate ownership and voting power of all other stockholders.
Further, any such issuance may result in a change of control of our corporation.

If a market for our common stock
does not develop, stockholders may be unable to sell their shares.

There is currently a limited market for
our common stock, which trades through the Over-the-Counter Bulletin Board quotation
system. Trading of stock through the Over-the-Counter Bulletin Board is frequently thin
and highly volatile. There is no assurance that a sufficient market will develop in the
stock, in which case it could be difficult for stockholders to sell their stock.

Trading of our stock may be
restricted by the Securities and Exchange Commissions penny stock regulations which
may limit a stockholders ability to buy and sell our stock.

The Securities and Exchange
Commission has adopted regulations which generally define penny stock to be
any equity security that has a market price (as defined) less than $5.00 per share or an
exercise price of less than $5.00 per share, subject to certain exceptions. Our securities
are covered by the penny stock rules, which impose additional sales practice requirements
on broker-dealers who sell to persons other than established customers and
accredited investors. The term accredited investor refers
generally to institutions with assets in excess of $5,000,000 or individuals with a net
worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with
their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a
penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure
document in a form prepared by the Securities and Exchange Commission which provides
information about penny stocks and the nature and level of risks in the penny stock
market. The broker-dealer also must provide the customer with current bid and offer
quotations for the penny stock, the compensation of the broker-dealer and its salesperson
in the transaction and monthly account statements showing the market value of each penny
stock held in the customers account. The bid and offer quotations, and the
broker-dealer and salesperson compensation information, must be given to the customer
orally or in writing prior to effecting the transaction and must be given to the customer
in writing before or with the customers confirmation. In addition, the penny stock
rules require that prior to a transaction in a penny stock not otherwise exempt from these
rules, the broker-dealer must make a special written determination that the penny stock is
a suitable investment for the purchaser and receive the purchasers written agreement
to the transaction. These disclosure requirements may have the effect of reducing the
level of trading activity in the secondary market for the stock that is subject to these
penny stock rules. Consequently, these penny stock rules may affect the ability of
broker-dealers to trade our securities. We believe that the penny stock rules discourage
investor interest in and limit the marketability of, our common stock.

---

22

The National Association of
Securities Dealers Inc., or NASD, has adopted sales practice requirements, which may limit
a stockholders ability to buy and sell our shares.

In addition to the penny
stock rules described above, the NASD has adopted rules requiring that in
recommending an investment to a customer, a broker-dealer must have reasonable grounds for
believing that the investment is suitable for that customer. Prior to recommending
speculative low-priced securities to their non-institutional customers, broker-dealers
must make reasonable efforts to obtain information about the customers financial
status, tax status, investment objectives and other information. Under interpretations of
these rules, the NASD believes that there is a high probability that speculative
low-priced securities will not be suitable for at least some customers. The NASD
requirements make it more difficult for broker-dealers to recommend that their customers
buy our common stock, which may limit our shareholders ability to buy and sell our
stock and which may have an adverse effect on the market for our shares.

Most of our assets and all of our
directors and officers are outside the United States, with the result that it may be
difficult for investors to enforce within the United States any judgments obtained against
us or any of our directors or officers.

Although we are organized under the
laws of the State of Nevada, our principal executive office is located in Hong Kong.
Outside the United States, it may be difficult for investors to enforce judgments against
us obtained in the United States in any such actions, including actions predicated upon
civil liability provisions of federal securities laws. In addition, all of our officers
and directors reside outside the United States, and nearly all of the assets of these
persons and our assets are located outside of the United States. As a result, it may not
be possible for investors to effect service of process within the United States upon such
persons or to enforce against us or such persons judgments predicated upon the liability
provisions of the United States securities laws. There is substantial doubt as to the
enforceability against us or any of our directors and officers located outside the United
States in original actions or in actions of enforcement of judgments of United States
courts or liabilities predicated on the civil liability provisions of United States
federal securities laws.

# Item 3.  Controls
and Procedures.

As required by Rule 13a-15 under the
Exchange Act, we have carried out an evaluation of the effectiveness of the design and
operation of our companys disclosure controls and procedures as of the end of the
period covered by this quarterly report, being December 31, 2004. This evaluation was
carried out under the supervision and with the participation of our companys
management, including our companys president and chief executive officer. Based upon
that evaluation, our companys president and chief executive officer concluded that
our companys disclosure controls and procedures are effective as at the end of the
period covered by this report. There have been no significant changes in our
companys internal controls over financial reporting that occurred during our most
recent fiscal quarter that have materially affected, or are reasonably likely to
materially affect our internal controls over financial reporting.

Disclosure controls and procedures
are controls and other procedures that are designed to ensure that information required to
be disclosed in our companys reports filed or submitted under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified in the
Securities and Exchange Commissions rules and forms. Disclosure controls and
procedures include, without limitation, controls and procedures designed to ensure that
information required to be disclosed in our companys reports filed under the
Exchange Act is accumulated and communicated to management, including our companys
president and chief executive officer as appropriate, to allow timely decisions regarding
required disclosure.

# PART
II  -  OTHER INFORMATION

# Item 1.  Legal
Proceedings.

We know of no material, existing or
pending legal proceedings against our company, nor are we involved as a plaintiff in any
material proceeding or pending litigation. There are no proceedings in which any of our
directors, officers or affiliates, or any registered or beneficial shareholder, is an
adverse party or has a material interest adverse to our interest.

---

23

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

Pursuant to the close of the Share
Exchange Agreement on January 13, 2005, we issued an aggregate of 13,000,000 shares of
common stock to the shareholders of Tech Team to acquire all 354,798,533 issued and
outstanding ordinary shares of Tech Team, on the basis of one share of our companys
common stock for every 27.29219 ordinary shares of Tech Team. The issuance was a result of
the closing of a Share Exchange Agreement dated January 7, 2005, among our company, Tech
Team, Bondy Tan and the shareholders of Tech Team as set out in the Share Exchange
Agreement. As a result of the share exchange, the former shareholders of Tech Team own
13,000,000 shares of our companys common stock, representing approximately 68.3% of
the issued and outstanding shares of our company. The shares were issued in an
offshore transaction to non-United States persons in reliance upon Regulation
S as an exemption from registration under the Securities Act of 1933.

# Item 6.  Exhibits

Exhibits required by Item
601 of Regulation S-B

Exhibit Number     Description

|(2) | Plan
of Purchase, Sale, Reorganization, Arrangement, Liquidation or Succession
|--- | ------------------------------------------------------------------------------

|2.1 | Share
Exchange  Agreement dated January 7, 2005, among Global  Innovative  Systems,  Inc., Tech
                     Team Holdings Limited,  Bondy Tan and the Selling Shareholders as
set out in the Share Exchange                      Agreement.(8)
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | (i)
Articles of Incorporation; and (ii) Bylaws
|--- | ----------------------------------------------

|3.1 | Charter(1)
|--- | ----------

|3.2 | Articles
of Incorporation(1)
|--- | ----------------------------

|3.3 | Bylaws(1)
|--- | ---------

|3.4 | Certificate
 of Reverse Stock Split filed with the Secretary of State of the State of Nevada on
                     November 12, 2003.(3)
|--- | ------------------------------------------------------------------------------------------------------------------------------------------

|3.5 | Certificate
of Amendment to Articles of Incorporation  filed with the Secretary of State of the
                     State of Nevada on March 3, 2004.(5)
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|3.6 | Certificate
 of  Change  filed  with  the  Secretary  of  State  of  the  State  of  Nevada  on
                     December 23, 2004.(7)
|--- | ------------------------------------------------------------------------------------------------------------------------------------------

|(10) | Material
Contracts
|---- | ------------------

|10.1 | Share
Purchase  Agreement dated September 30, 2003,  between Global Innovative  Systems,  Inc.,
                     Fraser Lawrie and Robert Fletcher.(2)
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|10.2 | Acquisition
 Agreement  dated January 22, 2003,  between Ken  Bergestad,  Walter  Niemi,  Lloyd
                     Olson, Fraser Lawrie, Robert M. Fletcher and Global Innovative
Systems, Inc.(4)
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.3 | Letter
of Intent dated  September 21, 2004,  between Global  Innovative  Systems,  Inc. and the
                     shareholders of Tech Team Holdings Inc.(6)
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.4 | Amendment
to Letter of Intent dated October 20, 2004, between Global Innovative  Systems,  Inc.
                     and the shareholders of Tech Team Holdings Inc.(6)
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.5 | Sales
Agreement  dated mach 27, 2002,  between Tech Team  Development  Limited and Macau Jockey
                     Club(8)
|---- | ----------------------------------------------------------------------------------------------------------------------------

---

24

|10.6 | Sales
Agreement dated June 10, 2003,  between Tech Team  Development  Limited and Dongguan Guan
                     Lan Golf Club Company Limited.(8)
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|10.7 | Sales
 Agreement  dated  March 31,  2004,  between  Tech Team  Development  Limited  and K. Wah
                     Concrete Co. Ltd. (8)
|---- | ------------------------------------------------------------------------------------------------------------------------------------------

|10.8 | Assignment
 Agreement  dated  February 11,  2004,  between  Tech Team  Development  Limited and
                     Southern Cross Technologies Limited.(8)
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.9 | Assignment
 Agreement  dated  February  11, 2004,  between  Grandplex  Development  Limited and
                     Scnider Limited.(8)
|---- | ----------------------------------------------------------------------------------------------------------------------------------------

|10.10 | Assignment
 Agreement  dated  February  11, 2004,  between  Grandplex  Development  Limited and
                     Scnider Limited.(8)
|----- | ----------------------------------------------------------------------------------------------------------------------------------------

|10.11 | Management
 Contract  between Tech Team Holdings  Limited / Tech Team  Development  Limited and
                     Bondy Tan.(8)
|----- | ----------------------------------------------------------------------------------------------------------------------------------

|10.12 | Management
Contract between Tech Team Development Limited and Victor Chang.(8)
|----- | ------------------------------------------------------------------------------

|10.13 | Management
Contract between Grandplex Development Limited and Ronny Lau.(8)
|----- | ---------------------------------------------------------------------------

|10.14 | Management
Contract between Tech Team Development Limited and Mandy Kee.(8)
|----- | ---------------------------------------------------------------------------

|10.15 | Management
Contract between Tech Team Development Limited and Raymond Ho.(8)
|----- | ----------------------------------------------------------------------------

|10.16 | Proposal
on Sales and Marketing Services to Tech Team Development Ltd. (8)
|----- | --------------------------------------------------------------------------

|10.17 | Sales
 Agreement  dated  February  7,  2005,  between  Tomi  Fuji  Energy  Management  Services
                     Consultants Limited and Versatech Group Limited.*
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(14) | Code
of Ethics
|---- | --------------

|14.1 | Code
of Ethics(6)
|---- | -----------------

|(31) | Rule
13a-14(a)/15d-14(a) Certifications
|---- | ---------------------------------------

|31.1* | Certification
of Principal Executive Officer and Principal Financial Officer filed pursuant to Section
302 of the Sarbanes-Oxley Act of 2002.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------

|(32) | Section
1350 Certifications
|---- | ---------------------------

|32.1* | Certification
of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

*Filed herewith

(1)    
          Incorporated by reference from our Registration Statement on Form 10-SB filed on
          April 11, 2000.

(2)    
          Incorporated by reference from our Current Report on Form 8-K filed on November
          7, 2003.

(3)    
          Incorporated by reference from our Current Report on Form 8-K filed on December
          17, 2003.

(4)    
          Incorporated by reference from our Annual Report on Form 10-KSB filed on
          December 23, 2003.

---

25

(5)    
          Incorporated by reference from our Quarterly Report on Form 10-QSB filed on May
          15, 2004.

(6)    
          Incorporated by reference from our Annual Report on Form 10-KSB filed on
          December 30, 2004.

(7)    
          Incorporated by reference from our Current Report on Form 8-K filed on January
          6, 2005.

(8)    
          Incorporated by reference from our Current Report on Form 8-K filed on January
          18, 2005.

---

26

# SIGNATURES

Pursuant to the requirements of
Section 13 or 15(d) 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.

# GLOBAL INNOVATIVE
SYSTEMS, INC.

By: /s/ Bondy TanBondy
Tan President, Secretary and
Treasurer 
(Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

Date: February 14, 2005