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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

Form 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended May 31, 2009

or

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission
  File Number 333-150110

Future Canada China Environment
Inc.(Exact name of registrant as specified in its
charter)

|Nevada                                                               | 71-1046264                       
|-------------------------------------------------------------------- | ---------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (IRS Employer Identification No.)
|                                                                     |                                  
|114 West Magnolia Street, Suite 437, Bellingham,
      Washington    | 98225                            
|(Address of principal executive offices)                             | (Zip Code)                       

360.392.2828(Registrants telephone number,
including area code)

N/A(Former name, former address and former
fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.[ X ] YES [ ] NO

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a small
reporting company. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act

|Large accelerated filer [ ] |                                               | Accelerated filer [ ]          
|--------------------------- | --------------------------------------------- | -------------------------------
|Non-accelerated filer [ ]   | (Do not check if a smaller reporting company) | Smaller reporting company [ X ]

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act[ X ] YES [ ] NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS

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

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such
files).[ ] YES [ ] NO

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable date. 38,665,200
common shares issued and outstanding as of July 15, 2009

1

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PART 1  FINANCIAL INFORMATION

Item 1. Financial Statements.

Our unaudited interim financial statements for the three month
period ended May 31, 2009 form part of this quarterly report. They are stated in
United States Dollars (US$) and are prepared in accordance with United States
generally accepted accounting principles.

2

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|Future Canada China Environment, Inc.
|-------------------------------------
|(A Development Stage Company)        
|Balance Sheets                       

|                                                                     |   | As of        |   |   | As of             |  
|-------------------------------------------------------------------- | - | ------------ | - | - | ----------------- | -
|                                                                     |   | May 31, 2009 |   |   | February 28, 2009 |  
|                                                                     |   | (Unaudited)  |   |   | (Audited)         |  
|ASSETS                                                               |   |              |   |   |                   |  
|                                                                     |   |              |   |   |                   |  
|Current assets                                                       |   |              |   |   |                   |  
|Cash                                                                 | $ | 20,573       |   | $ | 77,171            |  
|Prepaid
      expenses                                               |   | 18,000       |   |   | 45,000            |  
|Total
      current assets                                           |   | 38,573       |   |   | 122,171           |  
|                                                                     |   |              |   |   |                   |  
|Other assets                                                         |   |              |   |   |                   |  
|Deposits                                                             |   | 495          |   |   | 595               |  
|                                                                     |   |              |   |   |                   |  
|                                                                     |   |              |   |   |                   |  
|Total assets                                                         | $ | 39,068       |   | $ | 122,766           |  
|                                                                     |   |              |   |   |                   |  
|LIABILITIES AND STOCKHOLDERS' DEFICIT                                |   |              |   |   |                   |  
|                                                                     |   |              |   |   |                   |  
|                                                                     |   |              |   |   |                   |  
|                                                                     |   |              |   |   |                   |  
|                                                                     |   |              |   |   |                   |  
|Current liabilities                                                  |   |              |   |   |                   |  
|Accounts payable                                                     | $ | 42,041       |   | $ | 31,897            |  
|Accounts
      payable - related party                               |   | 57,806       |   |   | 42,807            |  
|Due to related party                                                 |   | 145,153      |   |   | 154,577           |  
|                                                                     |   |              |   |   |                   |  
|Total liabilities                                                    |   | 245,000      |   |   | 229,281           |  
|                                                                     |   |              |   |   |                   |  
|                                                                     |   |              |   |   |                   |  
|Stockholders deficit (See Note 4)                                   |   |              |   |   |                   |  
|Preferred stock; $.00001
      par value; 100,000,000 shares         |   | --           |   |   | --                |  
|authorized, no shares issued and outstanding                         |   |              |   |   |                   |  
|as of
      May 31, 2009 and February 29, 2008                       |   |              |   |   |                   |  
|Common
      stock; $.00001 par value; 100,000,000 shares authorized |   |              |   |   |                   |  
|38,665,200 shares issued and outstanding                             |   |              |   |   |                   |  
|as of May 31, 2009 and February 29, 2008                             |   | 387          |   |   | 387               |  
|Additional paid in
      capital                                     |   | 111,872      |   |   | 104,683           |  
|Accumulated deficit during development stage                         |   | (318,191     | ) |   | (211,585          | )
|Total
      stockholders' deficit                                    |   | (205,932     | ) |   | (106,515          | )
|                                                                     |   |              |   |   |                   |  
|                                                                     |   |              |   |   |                   |  
|Total liabilities and stockholders' deficit                          | $ | 39,068       |   | $ | 122,766           |  

3

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|Future Canada China Environment, Inc.
|-------------------------------------
|(A Development Stage Company)        
|Statements of Operations             

|                                    |   |                    |  |   |                    |  |   | February 5, 2008    | 
|----------------------------------- | - | ------------------ |  | - | ------------------ |  | - | ------------------- | 
|                                    |   | Three Months       |  |   | Three Months       |  |   | (Date of Inception) | 
|                                    |   | Ended              |  |   | Ended              |  |   | through             | 
|                                    |   | (Unaudited)        |  |   | (Unaudited)        |  |   | (Audited)           | 
|                                    |   | May
      31, 2009 |  |   | May
      31, 2008 |  |   | May
      31, 2009  | 
|                                    |   |                    |  |   |                    |  |   |                     | 
|Revenues                            | $ | --                 |  | $ | --                 |  | $ | --                  | 
|                                    |   |                    |  |   |                    |  |   |                     | 
|Cost of revenues                    |   | --                 |  |   | --                 |  |   | --                  | 
|                                    |   |                    |  |   |                    |  |   |                     | 
|Gross profit                        |   | --                 |  |   | --                 |  |   | --                  | 
|                                    |   |                    |  |   |                    |  |   |                     | 
|Operating expenses                  |   |                    |  |   |                    |  |   |                     | 
|Selling, general and administrative |   | 108,249            |  |   | 35,221             |  |   | 369,691             | 
|Total operating expenses            |   | 108,249            |  |   | 35,221             |  |   | 369,691             | 
|                                    |   |                    |  |   |                    |  |   |                     | 
|Non-Operating Income                |   |                    |  |   |                    |  |   |                     | 
|Debt Forgiven by related party      |   | 1,643              |  |   | --                 |  |   | 51,500              | 
|                                    |   |                    |  |   |                    |  |   |                     | 
|Net loss                            | $ | 106,606            |  | $ | 35,221             |  | $ | 318,191             | 
|                                    |   |                    |  |   |                    |  |   |                     | 
|Basic loss per common share         | $ | 0.00               |  | $ | 0.00               |  |   |                     | 
|                                    |   |                    |  |   |                    |  |   |                     | 
|Basic weighted average common       |   |                    |  |   |                    |  |   |                     | 
|shares outstanding                  |   | 38,665,200         |  |   | 35,000,000         |  |   |                     | 

4

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|Future Canada China       
|--------------------------
|Environment, Inc.         
|(A Development Stage      
|Company)                  
|Statement of Stockholders'
|Deficit                   

|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   | Accumulated |   |   |               |  
|----------------------------- |  | --------------- |  | - | ------------ |  |  | ---------- |  | - | ------ |  | - | ------- |  | - | ----------- | - | - | ------------- | -
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   | Deficit     |   |   |               |  
|                              |  | Preferred Stock |  |   | Common Stock |  |  | Additional |  |   | During |  |   | Total   | 
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   | Paid-in |  |   | Development |   |   | Stockholders' |  
|                              |  | Shares          |  |   | Amount       |  |  | Shares     |  |   | Amount |  |   | Capital |  |   | Stage       |   |   | Deficit       |  
|Balance, February 5, 2008     |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|(Date of Inception)           |  | --              |  | $ | --           |  |  | --         |  | $ | --     |  | $ | --      |  | $ | --          |   | $ | --            |  
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|Issuance of stock for cash, $ |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|0.00001 per share             |  | --              |  |   | --           |  |  | 35,000,000 |  |   | 350    |  |   | --      |  |   | (300        | ) |   | 50            |  
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|Net loss                      |  | --              |  |   | --           |  |  | --         |  |   | --     |  |   | --      |  |   | (45,343     | ) |   | (45,343       | )
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|Balance, February 29, 2008    |  | --              |  |   | --           |  |  | 35,000,000 |  |   | 350    |  |   | --      |  |   | (45,643     | ) |   | (45,293       | )
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|Issuance of stock for cash, $ |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|0.0285 per share              |  | --              |  |   | --           |  |  | 3,665,200  |  |   | 37     |  |   | 104,683 |  |   | --          |   |   | 104,720       |  
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|Net loss                      |  | --              |  |   | --           |  |  | --         |  |   | --     |  |   | --      |  |   | (165,942    | ) |   | (165,942      | )
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|Balance, February 28, 2009    |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|(Audited)                     |  | --              |  |   | --           |  |  | 38,665,200 |  |   | 387    |  |   | 104,683 |  |   | (211,585    | ) |   | (106,515      | )
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|Net loss                      |  | --              |  |   | --           |  |  | --         |  |   | --     |  |   | 7,189   |  |   | 106,606     | ) |   | (106,606      | )
|                              |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|Balance, May 31, 2009         |  |                 |  |   |              |  |  |            |  |   |        |  |   |         |  |   |             |   |   |               |  
|(unaudited)                   |  | --              |  | $ | --           |  |  | 38,665,200 |  | $ | 387    |  | $ | 111,872 |  | $ | (318,191    | ) | $ | (205,932      | )

5

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|Future Canada China Environment, Inc.
|-------------------------------------
|(A Development Stage Company)        
|Statements of Cash Flows             
|(Unaudited)                          

|                                                         |   | Three Months       |   |   | Three Months       |   |   | (Date of Inception) |  
|-------------------------------------------------------- | - | ------------------ | - | - | ------------------ | - | - | ------------------- | -
|                                                         |   | Ended              |   |   | Ended              |   |   | Through             |  
|                                                         |   | May
      31, 2009 |   |   | May
      31, 2008 |   |   | May
      31, 2009  |  
|                                                         |   |                    |   |   |                    |   |   |                     |  
|Cash flows from operating activities:                    |   |                    |   |   |                    |   |   |                     |  
|Net loss                                                 | $ | (106,606           | ) | $ | (35,221            | ) | $ | (317,891            | )
|                                                         |   |                    |   |   |                    |   |   |                     |  
|Adjustments
      to reconcile net loss to net cash used |   |                    |   |   |                    |   |   |                     |  
|in operating activities:                                 |   |                    |   |   |                    |   |   |                     |  
|Consulting expense - non cash                            |   | 31,500             |   |   | --                 |   |   | 43,500              |  
|Debt forgiveness                                         |   | (1,643             | ) |   | --                 |   |   | (51,500             | )
|Stock Compensation Expense                               |   | 7,189              |   |   |                    |   |   | 7,189               |  
|                                                         |   |                    |   |   |                    |   |   |                     |  
|Changes in operating assets and
      liabilities:       |   |                    |   |   |                    |   |   |                     |  
|(Increase) decrease in deposits                          |   | 100                |   |   | --                 |   |   | (495                | )
|(Increase)
      decrease in prepaid expenses            |   |                    |   |   |                    |   |   | (10,000             | )
|(Increase) in restricted cash                            |   |                    |   |   | (40,133            | ) |   |                     |  
|Increase
      (decrease) in accounts payable            |   | 7,287              |   |   | --                 |   |   | 42,041              |  
|Increase (decrease) in accounts payable - related party  |   | 15,000             |   |   | 15,000             |   |   | 57,806              |  
|Net cash used by operating activities                    |   | (47,173            | ) |   | (60,354            | ) |   | (229,350            | )
|                                                         |   |                    |   |   |                    |   |   |                     |  
|Cash flows from financing activities:                    |   |                    |   |   |                    |   |   |                     |  
|Proceeds from issuance
      of common stock             |   | --                 |   |   | --                 |   |   | 104,770             |  
|Advance payments from investors                          |   | --                 |   |   | 40,253             |   |   | --                  |  
|Increase (decrease) in
      due to related party        |   | (9,425             | ) |   | 20,101             |   |   | 145,153             |  
|Net cash provided by financing activities                |   | (9,425             | ) |   | 60,354             |   |   | 249,923             |  
|                                                         |   |                    |   |   |                    |   |   |                     |  
|Net change in cash                                       |   | (56,598            | ) |   | --                 |   |   | 20,573              |  
|                                                         |   |                    |   |   |                    |   |   |                     |  
|Cash, beginning of period                                |   | 77,171             |   |   | 50                 |   |   | --                  |  
|                                                         |   |                    |   |   |                    |   |   |                     |  
|Cash, end of period                                      | $ | 20,573             |   | $ | 50                 |   | $ | 20,573              |  
|                                                         |   |                    |   |   |                    |   |   |                     |  
|Supplemental disclosure                                  |   |                    |   |   |                    |   |   |                     |  
|Non cash stock
      compensation expenses               |   | 7,189              |   |   |                    |   |   | 7,189               |  
|Non cash prepaid consulting services                     | $ | 3,000              |   | $ | --                 |   | $ | 38,000              |  

6

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|Future Canada China Environment Inc.
|------------------------------------
|(A Development Stage Company)       
|Notes to Financial Statements       
|May 31, 2009                        
|(Unaudited)                         

|Note 1 | Nature of Operations
|------ | --------------------

The Company was incorporated on
February 5, 2008 under the law of Nevada, United States of America. It is a
consulting company, and accordingly, its principal purpose is to use its capital
to investigate and find a business to acquire.

The Company is currently in the
development stage as defined in SFAS No. 7. All activities of the Company to
date relate to the organizations initial funding and share issuances.

Going Concern

The accompanying financial statements
have been prepared in conformity with generally accepted accounting principles,
which contemplate continuation of the Company as a going concern. The Company
has not begun generating revenue, is considered a development stage company, has
experienced recurring net operating losses, had an accumulated deficit of
($318,191) and had a working capital deficit of ($206,427) as of May 31, 2009.
These factors raise substantial doubt about the Companys ability to continue as
a going concern. Management plans to issue more shares of common stock in order
to raise funds. The Company will seek additional sources of capital through the
issuance of debt or equity financing, but there can be no assurance the Company
will be successful in accomplishing its objectives.

These financials do not include any
adjustments relating to the recoverability and reclassification of recorded
asset amounts, or amounts and classifications of liabilities that might result
from this uncertainty.

|Note 2 | Significant Accounting Policies
|------ | -------------------------------

(a) Basis of presentation

The financial statements have been
prepared in accordance with accounting principles generally accepted in the
United States. In the opinion of management, all adjustments, consisting of
normal recurring accruals considered necessary for a fair presentation, have
been included. Operating results for the three months ended March 31, 2009 are
not necessarily indicative of the results that may be expected for the year
ending February 28, 2010. For further information, refer to the financial
statements and footnotes thereto included in the Form 10-K for the year ended
February 28, 2009.

---

|Future Canada China Environment Inc.
|------------------------------------
|(A Development Stage Company)       
|Notes to Financial Statements       
|May 31, 2009                        
|(Unaudited)                         

|Note 2 | Significant Accounting Policies
      (Continued)
|------ | -------------------------------------------------

(b) Reclassification

Certain reclassifications, having no
effect on net loss, have been made to the previously issued financial statements
to conform to the current periods presentation of the Companys financial
statements. Reclassifications were made between accounts payable  related party
and due to related party.

(c) Use of estimates

The preparation of financial
statements in conformity with U.S. Generally Accepted Accounting Principles
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
revenue and expense during the reporting period. Actual results could differ
from those estimates and may impact future results of operations and cash
flows.

(d) Cash and cash equivalents

For the purposes of the statement of
cash flows, the Company considers highly liquid financial instruments purchased
with maturities of three months or less to be cash equivalents.

(e) Income Taxes

The Company accounts for its income
taxes in accordance with Statement of Financial Accounting Standards No. 109,
which requires recognition of deferred tax assets and liabilities for future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
bases and tax credit carry-forwards. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities or a change in tax
rate is recognized in income in the period that includes the enactment date.

(f) Fair value of financial
instruments

Financial accounting standards
statement No. 107 Disclosure about Fair Value of Financial Instruments,
requires the Company to disclose, when reasonably attainable, the fair market
value of its assets and liabilities which are deemed to be financial

8

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|Future Canada China Environment Inc.
|------------------------------------
|(A Development Stage Company)       
|Notes to Financial Statements       
|May 31, 2009                        
|(Unaudited)                         

|Note 2 | Significant Accounting Policies
      (Continued)
|------ | -------------------------------------------------

instruments. The carrying amount and
estimated fair values of the Companys financial instruments approximated their
fair value due to their short-term nature.

(g) Loss per share

The Company computes net loss per
share in accordance with SFAS No. 128, Earnings per Share (SFAS 128) and SEC
Staff Accounting Bulletin No. 98 (SAB 98). Under the provisions of SFAS 128 and
SAB 98, basic net loss per share is computed by dividing the net loss available
to common stockholders for the period by the weighted average number of shares
of common stock outstanding during the period.

Diluted loss per share is computed
using the weighted average number of shares and dilutive potential common shares
outstanding. Potentially dilutive common shares consist of employee stock
options, warrants, and restricted stock, and are excluded from the diluted
earnings per share computation in periods where the Company has incurred a net
loss.

Dilutive loss per share was not
presented, as the Company had no common stock equivalent shares for the period
from inception (February 5, 2008) through May 31, 2009 that would affect the
computation of diluted loss per share.

|Note 3 | Initial Public Offering
|------ | -----------------------

On April 24, 2008, Form S-1
registration statement was declared effective by the SEC. Pursuant to the S-1,
the Company offered 3,500,000 (post split-up in the form of a dividend) (post
split-up) shares minimum, 7,000,000 (post split-up) shares maximum at an
offering price of $0.0285 per share in a direct public offering, without any
involvement of underwriters or broker-dealers. As of July 1, 2008, the Company
had sold 3,665,200 (post split-up) shares of common stock and raised $104,720.
The Company is currently listed on the Over the Counter Bulletin Board
(OTCBB).

|Note 4 | Stockholders Deficit
|------ | ---------------------

The Company has 100,000,000 common
shares authorized with a par value of US $0.00001 per share and 100,000,000
preferred shares. In February 2008, in connection with its organization, the
Company issued 35,000,000 (post split-up) restricted shares of their authorized
common stock. The shares were issued for cash of $50.00 (or $0.000001 per
share). The Company completed its initial public stock offering during the prior
year ended February 28, 2009 and raised $104,720 through issuance of

9

---

|Future Canada China Environment Inc.
|------------------------------------
|(A Development Stage Company)       
|Notes to Financial Statements       
|May 31, 2009                        
|(Unaudited)                         

|Note 4 | Stockholders Deficit (Continued)
|------ | ---------------------------------

3,665,200 (post split-up) shares of
registered common stock. In addition, on October 9, 2008, the Company issued a
split-up in the form of a dividend on the basis of 6 additional shares of common
stock for each 1 share of common stock outstanding. All references in these
financial statements and notes to financial statements of common shares to
number of shares, price per common share and weighted average number of common
shares outstanding prior to the 7:1 split-up in the form of dividend
(split-up) declared on October 9, 2008 have been adjusted to reflected the
split-up on a retroactive basis unless otherwise noted.

| |                                       |  | Number of Shares |  |   | Proceeds | 
| | ------------------------------------- |  | ---------------- |  | - | -------- | 
| | Balance, February 5, 2008             |  | 0                |  | $ | 0        | 
| |                                       |  |                  |  |   |          | 
| | Issued for private placement          |  |                  |  |   |          | 
| | 5,000,000 shares, and split-up        |  |                  |  |   |          | 
| | in the form of a dividend 7:1         |  | 35,000,000       |  |   | 50       | 
| |                                       |  |                  |  |   |          | 
| | Issued during initial public offering |  |                  |  |   |          | 
| | 523,600 shares, and split-up          |  |                  |  |   |          | 
| | in the form of a dividend 7:1         |  | 3,665,200        |  |   | 104,720  | 
| |                                       |  |                  |  |   |          | 
| | Balance, May 31, 2009                 |  | 38,665,200       |  | $ | 104,770  | 

|Note 5 | Related Party Transactions
|------ | --------------------------

During the three months ended May 31,
2009, the Company reimbursed $5,638 of expenses paid on behalf of the Company by
Hsi Chun Chiang, former President of the Company. As of May 31, 2009, $118,417
is owed to Hsi Chun Chiang and recorded as due to related party.

During the three months ended May 31,
2009, the Company reimbursed $4,000 of expenses paid on behalf of the Company by
Paul Young, former President and CEO of the Company. As of May 31, 2009, $26,523
is owed to Paul Young and recorded as due to related party.

During the three months ended May 31,
2009, Michael Hu, President and CEO of the Company advance $213 to pay for
expenses on behalf of the Company. As of May 31, 2009, $213 is owed to Michael
Hu and recorded as due to related party.

Neither Hsi Chun Chiang, Paul Young or
Michael Hu will receive any interest on any funds that they advance to the
Company and there are no set repayment terms.

10

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|Future Canada China Environment Inc.
|------------------------------------
|(A Development Stage Company)       
|Notes to Financial Statements       
|May 31, 2009                        
|(Unaudited)                         

|Note 5 | Related Party Transactions
      (Continued)
|------ | --------------------------------------------

During the period, the Company accrued
$1,600 of director fees due to Paul Young and $15,000 to Michael Hu, President
and CEO. As of May 31, 2009, $40,000 is owed to Hsi Chun Chiang.

Hsi Chun Chiang, $2,807 to Paul Young
and $15,000 to Michael Hu as accounts payable  related party.

On January 15, 2009, the Company
entered into a Public Relations, Promotion and Marketing Agreement with CityVac
Services. The consideration for CityVacs services is 5,000 restricted shares of
the companys common stock. The 5,000 shares of common stock were transferred
from Hsi Chun Chiangs, prior President of the company, personal shares.
CityVacs service was valued at $50,000 and 5,000 shares of Hsi Chun Chiangs
common stock were valued at $143. The difference of $49,857 was recorded as debt
forgiveness from CityVac IR Services on February 28, 2009.

On April 1, 2009, the company entered
into a financial advisory agreement with Network 1 Financial Securities, Inc.
The consideration for Network 1s services is 100,000 restricted shares of the
companys common stock. The 100,000 shares of common stock were transferred from
Hsi Chun Chiangs, prior President of the company, personal shares. Network 1s
service was valued at $4,500 and 100,000 shares of Hsi Chun Chiangs common
stock were valued at $2,857. The difference of $1,643 was recorded as debt
forgiveness from Network 1 Services on May 31, 2009.

|Note 6 | Recently Issued Accounting
      Pronouncements
|------ | -----------------------------------------------

In December 2007, the FASB issued SFAS
160, Noncontrolling interests in Consolidated Financial Statements, an amendment
of ARB No. 51 which applies to all entities that prepare consolidated financial
statements, except not-for-profit organizations, but will affect only those
entities that have an outstanding noncontrolling interest in one or more
subsidiaries or that deconsolidate a subsidiary. The statement is effective for
annual periods beginning after December 15, 2008. The adoption of FAS 160 did
not have a significant impact on our financial statements.

In March 2007, the FASB issued SFAS
No. 161, Disclosures about Derivative Instruments and Hedging Activities  an
amendment of FASB Statement No. 133, (SFAS 161) as amended and interpreted,
which requires enhanced disclosures about an entitys derivative and hedging
activities and thereby improves the transparency of financial reporting.
Disclosing the fair values of derivative instruments and their gains and losses
in a tabular format provides a more complete picture of the location in an
entitys financial statements of both the derivative positions existing at
period end and the effect of using derivatives during the reporting period.
Entities are required to provide enhanced disclosures about (a) how and why an
entity uses derivative instruments, (b) how derivative instruments and

11

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|Future Canada China Environment Inc.
|------------------------------------
|(A Development Stage Company)       
|Notes to Financial Statements       
|May 31, 2009                        
|(Unaudited)                         

|Note 6 | Recently Issued Accounting Pronouncements
      (Continued)
|------ | -----------------------------------------------------------

related hedged items are accounted for
under Statement 133 and its related interpretations, and (c) how derivative
instruments and related hedged items affect an entitys financial position,
financial performance, and cash flows. SFAS No. 161 is effective for financial
statements issued for fiscal years and interim periods beginning after November
15, 2008. Early adoption is permitted, but not expected.

In May 2008, the Financial Accounting
Standards Board (FASB) issued SFAS No. 163, Accounting for Financial
Guarantee Insurance Contracts  An interpretation of FASB Statement No. 60.
SFAS 163 requires that an insurance enterprise recognize a claim liability prior
to an event of default when there is evidence that credit deterioration has
occurred in an insured financial obligation. It also clarifies how Statement 60
applies to financial guarantee insurance contracts, including the recognition
and measurement to be used to account for premium revenue and claim liabilities,
and requires expanded disclosures about financial guarantee insurance contracts.
It is effective for financial statements issued for fiscal years beginning after
December 15, 2008, except for some disclosures about the insurance enterprises
risk-management activities. SFAS 163 requires that disclosures about the
risk-management activities of the insurance enterprise be effective for the
first period beginning after issuance. Except for those disclosures, earlier
application is not permitted. The adoption of this statement is not expected to
have a material effect on the Companys financial statements.

In May 2009, the FSAB issued SFAS No.
165, Subsequent Events, SFAS No. 165 is intended to establish general standards
of accounting for and disclosure of events that occur after the balance sheet
date, but before financial statements are issued or are available to be issued.
It requires the disclosure of the date through which an entity has evaluated
subsequent events and the basis for that date-that is, whether that date
represents the date the financial statements were issued or were available to be
issued. This disclosure should alert all users of financial statements that an
entity has not evaluated subsequent events after that date in the set of
financial statements being presented. SFAS No. 165 is effective for financial
statements issued for fiscal years and interim periods ending after June 15,
2009. We plan to adopt SFAS 165 in the first quarter of Fiscal 2010 and do not
expect it to have a material impact on our financial statements.

|Note 7 | Share  Based Compensation
|------ | --------------------------

As approved by the Board of Directors,
on May 5, 2009, the Company granted 200,000 shares fully vested stock options to
Rui Yang, appointed President, Secretary, Treasurer and director of the company
on July 7, 2009 at $5 per share for term of three years. The total fair value of
these options at the date of grant was estimated to be $7,189 and was determined
using the Black-Scholes option pricing model with an expected life of 1 year, a
risk free interest rate of 0%, a dividend yield

12

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|Future Canada China Environment Inc.
|------------------------------------
|(A Development Stage Company)       
|Notes to Financial Statements       
|May 31, 2009                        
|(Unaudited)                         

of 0% and expected volatility of
99.57% and was recorded as a stock based compensation expense in 2009.

The Companys stock option activity
for the period ended May 31, 2009 is summarized as follows:

| |                            |  | Number of |  |   | Weighted  |  |  | Weighted        | 
| | -------------------------- |  | --------- |  | - | --------- |  |  | --------------- | 
| |                            |  | Options   |  |   | average   |  |  | average         | 
| |                            |  |           |  |   | exercise  |  |  | remaining in    | 
| |                            |  |           |  |   | price     |  |  | contractual     | 
| |                            |  |           |  |   | per share |  |  | life (in years) | 
| |                            |  |           |  |   |           |  |  |                 | 
| | Balance, February 28, 2009 |  | --        |  | $ | --        |  |  | --              | 
| |                            |  |           |  |   |           |  |  |                 | 
| | Granted during the period  |  | 200,000   |  |   | 5.00      |  |  | 3               | 
| | Exercised                  |  | --        |  |   | --        |  |  | --              | 
| | Expired/Cancelled          |  | --        |  |   | --        |  |  | --              | 
| |                            |  |           |  |   |           |  |  |                 | 
| | Balance, May 31, 2009      |  | 200,000   |  |   | 5.00      |  |  | 3               | 

|Note 8 | Commitments and Contingencies
|------ | -----------------------------

On February 2, 2009, the Company
entered into a share exchange agreement with Guangdong Hongmao Industrial Co.
Ltd. (Guangdong) located in Guang Zhou, China. The Company agrees to acquire
all of the issued and outstanding shares of Guangdongs common stock in exchange
for the issuance by the Company of such number of shares of the Companys common
stock as is equal to the total of Guangdongs assets divided by the market price
of the Companys common stock. As of the date of this report, the Company has
not completed the share exchange since the Company is awaiting audited financial
statements of Guangdong Hongmao Industrial Co., Ltd. to determine the number of
shares required in the share exchange. In the event that this agreement is
breached for any reason, the non-breaching party may seek damages from the
breaching party.

Hong Mao was established in 2002, is
principally engaged in the business of the production of biological fertilizer,
ecological tree growing, high quality garden and flower growing, organic food
and green vegetable processing and a vegetable basket service project.

|Note 9 | Changes in Control or Registrant
|------ | --------------------------------

On November 13, 2008, Chi Ching Chiang
transferred 32,920,000 restricted shares of common stock owned by her to Hsi
Chun Chiang, President and CEO of the Company. After the transfer, Hsi Chun
Chiang owns total of 32,920,000 restricted shares of common stock or 85.14% of
the total shares of common stock outstanding.

13

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|Future Canada China Environment Inc.
|------------------------------------
|(A Development Stage Company)       
|Notes to Financial Statements       
|May 31, 2009                        
|(Unaudited)                         

|Note 9 | Changes in Control or Registrant
      (Continued)
|------ | --------------------------------------------------

On February 27, 2009, Hsi Chun Chiang
resigned as President, Chief Executive Officer Secretary, Treasurer, Principal
Financial Officer and Principal Accounting Officer. Hsi continues to serve as a
member of the Board of Directors.

On February 27, 2009, Paul Young, a
member of the Board of Directors, was appointed as President, Principal
Executive Officer, Secretary, Treasurer, Principal Financial Officer and
Principal Accounting Officer. Paul Young resigned as Vice President on April 13,
2009.

On April 1, 2009, Hsi Chun Chiang,
former president of the company, entered into a share transfer agreement with
Paul Young. Paul Young was appointed President, Principal Executive Officer,
Secretary, Treasurer, Principal Financial Officer and Principal Accounting
Officer on February 27, 2009. Pursuant to the terms of the share transfer
agreement, Ms. Chiang transferred 24,395,000 shares of common stock to Mr.
Young.

On April 1, 2009, the company entered
into a financial advisory agreement with Network 1 Financial Securities, Inc.
Pursuant to the terms of the agreement, Network 1 Financial Securities, Inc.
will assist the company in financings and acquisitions. The term of the
agreement is for a period of six months. In consideration for Network 1
Financial Securities, Inc.s services, the company agreed to issue 100,000
restricted shares of the companys common stock to Network 1 Financial
Securities, Inc., which was transferred from Hsi Chun Chiang, former president
of the Company.

On April 13, 2009, Paul Young resigned
as President, Secretary, Treasurer and director of the company. Mr. Young
entered into a share transfer agreement with (Michael) Hua Hu. Hua Hu was
appointed President, Secretary, Treasurer and director on April 13, 2009.
Pursuant to the terms of the share transfer agreement, Mr. Young transferred
24,285,000 shares of common stock to Mr. Hu. The aggregate number and percentage
of common shares of the issuer beneficially owned by Mr. Hua Hu was 24,285,000
or 62.81% .

On April 29, 2009, Rui Yang was
appointed as vice president of the company.

On April 30, 2009, Hsi Chun Chiang
resigned as director of the company. As a result, the board of directors now
solely consists of (Michael) Hua Hu.

On May 5, 2009, the company entered
into a stock option agreement with Rui Yang, the companys vice president. The
board of directors of the company has granted stock options to purchase a total
of 200,000 shares of the companys common stock at a price

14

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|Future Canada China Environment Inc.
|------------------------------------
|(A Development Stage Company)       
|Notes to Financial Statements       
|May 31, 2009                        
|(Unaudited)                         

|Note 9  | Changes in Control or Registrant
      (Continued)                                                                                                                                                                                                                                   
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                      
|        | of $5.00 per share to Mr. Yang. The stock options vested
      immediately and expire on May 5, 2012.                                                                                                                                                                                
|        |                                                                                                                                                                                                                                                                                      
|Note 10 | Other Matters                                                                                                                                                                                                                                                                        
|        |                                                                                                                                                                                                                                                                                      
|        | On January 28, 2009, the Securities and Exchange
      Commission announced the temporary suspension, pursuant to Section 12 (k)
      of the Securities Exchange Act of 1934, of trading in the securities of
      the company. The temporary suspension expired February 10, 2009.
|        |                                                                                                                                                                                                                                                                                      
|Note 11 | Subsequent events                                                                                                                                                                                                                                                                    
|        |                                                                                                                                                                                                                                                                                      
|        | On July 7, 2009, Michael Hua Hu resigned as President,
      Secretary, Treasurer and Director of the company.                                                                                                                                                                       
|        |                                                                                                                                                                                                                                                                                      
|        | On July 7, 2009, Rui Yang, vice president of the company
      was appointed as President, Secretary, Treasurer and director of the
      company. As a result, the board of directors now solely consists of Rui
      Yang.                                                        

15

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

Forward-Looking Statements

This quarterly report contains forward-looking statements.
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", "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 unaudited 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 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".

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 and unless otherwise
indicated, the terms we, us, our company, mean Future Canada China
Environment Inc., a Nevada corporation, unless otherwise indicated.

Corporate History

Our company was incorporated in Nevada on February 5, 2008.

Since inception, we have been a development stage company and
we intended to provide consulting services to Chinese corporations in order to
assist them in reducing Greenhouse Gas emissions.

Due to the implementation of British Columbia Instrument 51-509
on September 30, 2008 by the British Columbia Securities Commission, we have
been deemed to be a British Columbia based reporting issuer. As such, we are
required to file certain information and documents at www.sedar.com.

On September 9, 2008, Kin Bun Kwong was appointed our Vice
President and Legal Representative in the Peoples Republic of China.

On September 30, 2008, Paul Young was appointed to our board of
directors and vice president.

On January 15, 2009, we entered into a Public Relations,
Promotion and Marketing Letter Agreement (the Agreement) with CityVac IR
Services (CityVac) located in Celebration, Florida, whereby CityVac will
provide consulting, promotional and marketing services for us. The consideration
for CityVacs services is 5,000 restricted shares of our common stock. The
shares of common stock were issued pursuant to the exemption from registration
contained in Section 4(2) of the Securities Act of 1933. CityVac was supplied
with copies of all information that can be found in a Form S-1 registration
statement and is a sophisticated investor. The term of the Agreement is from
January 18, 2009 to June 18, 2009. Each party agreed to mutual rights of
indemnification.

4

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On February 2, 2009, we entered into a share exchange agreement
with Guangdong Hongmao Industrial Co., Ltd., a Peoples Republic of China
Corporation, and the shareholders of Guangdong Hongmao Industrial Co., Ltd.
Pursuant to the terms of the share exchange agreement, we have agreed to acquire
all of the issued and outstanding shares of Guangdong Hongmao Industrial Co.,
Ltd.s common stock in exchange for the issuance by our company of such number
of shares of our common stock as is equal to the total of Guangdong Hongmao
Industrial Co., Ltd.s assets, as set out in the audited statements of Guangdong
Hongmao Industrial Co., Ltd., divided by the closing market price of our
companys common stock as quoted on the Over the Counter Bulletin Board as of
the closing date of the agreement, to the shareholders of Guangdong Hongmao
Industrial Co., Ltd. Due to conditions precedent to closing and the risk that
these conditions precedent will not be satisfied, there is no assurance that we
will complete the share exchange.

On January 28, 2009, the Securities and Exchange Commission
announced the temporary suspension, pursuant to Section 12(k) of the Securities
Exchange of 1934, of trading in the securities of our company. The temporary
suspension will expire at 11:59 p.m. (Eastern Standard Time) on February 10,
2009.

The Securities and Exchange Commission temporarily suspended
trading in our securities due to recent trading activity in our companys common
stock and due to questions concerning the accuracy and adequacy of the publicly
available information regarding our planned acquisition of Guangdong Hongmao
Industrial Co., Ltd.

Upon termination of the temporary suspension and in compliance
with Rule 15c2-11, any brokers wishing to acquire any of our securities must
have a copy of our prospectus, our most recent annual report and our most recent
current reports and quarterly reports and based upon a review of such documents
must have a reasonable basis for believing that such documents are accurate in
all material respects and that the sources of such information are reliable.

Additionally, without limiting the foregoing, brokers must keep
up-to-date information on our financial status, our companys name, the address
of our principal executive office, our state of incorporation, the name of our
transfer agent, our insiders, the nature of our business, the nature of the
products we offer and must provide this information to any potential purchasers
of our common stock upon request.

Due to the implementation of British Columbia Instrument 51-509
on September 30, 2008 by the British Columbia Securities Commission, we have
been deemed to be a British Columbia based reporting issuer. As such, we are
required to file certain information and documents at www.sedar.com

Further to our Form 8-K filed on October 10, 2008 and our press
releases dated November 10, 2008 and December 19, 2008, we wish to correct
certain disclosure relating to the name of the company we plan to acquire. We
incorrectly disclosed the name of the private company as Hong Mao Enterprise
Ltd., the companys correct name is Guangdong Hongmao Industrial Co., Ltd.

On February 27, 2009, Hsi Chun Chiang resigned as President,
Chief Executive Officer, Secretary, Treasurer, Principal Financial Officer and
Principal Accounting Officer. Ms. Chiang continued to serve as a member of the
Board of Directors.

On February 27, 2009, Paul Young, a member of our Board of
Directors, was appointed as our President, Principal Executive Officer,
Secretary, Treasurer, Principal Financial Officer and Principal Accounting
Officer. Mr. Young resigned as our Vice President. Mr. Young continued to serve
on our Board of Directors.

On April 1, 2009, we entered into a financial advisory
agreement with Network 1 Financial Securities, Inc. Pursuant to the terms of the
agreement, Network 1 Financial Securities, Inc. will assist our company in
financings and acquisitions. The term of the agreement is for a period of six
months. In consideration for Network 1 Financial Securities, Inc.s services, we
have agreed to issue 100,000 restricted shares of our common stock to Network 1
Financial Securities, Inc.

On April 13, 2009, Paul Young resigned as President, Secretary,
Treasurer and a director of our company. As a result of the resignation of Mr.
Young on April 13, 2009, we appointed (Michael) Hua Hu as President, Secretary,
Treasurer and director of our company.

5

---

On April 29, 2009, Rui Yang was appointed as vice president of
our company. On April 30, 2009, Hsi Chun Chiang resigned as director of our
company.

On May 5, 2009, our company entered into a stock option
agreement with Rui Yang, our companys vice president. The board of directors of
our company has granted stock options to purchase a total of 200,000 shares of
our common stock at a price of $5.00 per share to Mr. Yang. The stock options
vested immediately and expire on May 5, 2012.

On July 7, 2009, Michael Hua Hu resigned as President,
Secretary, Treasurer and a director of our company. As a result of the
resignation of Mr. Hua Hu on July 7, 2009, we appointed Rui Yang as President,
Secretary, Treasurer and director of our company. Our board of directors now
solely consists of Rui Yang.

Our Current Business

We were incorporated pursuant to the laws of the State of
Nevada on February 5, 2008. Since our incorporation, we intended to be in the
business of providing consulting services to Chinese corporations in order to
assist them in reducing Greenhouse Gas emissions.

On February 2, 2009, we entered into a share exchange agreement
with Guangdong Hongmao Industrial Co., Ltd., a Peoples Republic of China
Corporation, and the shareholders of Guangdong Hongmao Industrial Co., Ltd.
Pursuant to the terms of the share exchange agreement, we have agreed to acquire
all of the issued and outstanding shares of Guangdong Hongmao Industrial Co.,
Ltd.s common stock in exchange for the issuance by our company of such number
of shares of our common stock as is equal to the total of Guangdong Hongmao
Industrial Co., Ltd.s assets, as set out in the audited statements of Guangdong
Hongmao Industrial Co., Ltd., divided by the closing market price of our
companys common stock as quoted on the Over the Counter Bulletin Board as of
the closing date of the agreement, to the shareholders of Guangdong Hongmao
Industrial Co., Ltd. As of the date of this filing, we have not completed the
share exchange since we are awaiting audited financial statements of Guangdong
Hongmao Industrial Co., Ltd. to determine the number of shares required in the
share exchange. Due to conditions precedent to closing and the risk that these
conditions precedent will not be satisfied, there is no assurance that we will
complete the share exchange.

Guangdong Hongmao Industrial Co., Ltd. is principally engaged
in the business of the production of biological fertilizer, ecological tree
growing, high quality garden and flower growing, organic food and green
vegetable processing, and a vegetable basket service project.

In addition to attempting to complete the acquisition of
Guangdong Hongmao Industrial Co., Ltd., our management is currently evaluating
other potential business opportunities that might be available to our company.
Our management will begin analyzing various alternatives available to our
company to ensure our survival and to preserve our shareholder's investment in
our common shares. This analysis will include sourcing additional forms of
financing to engage in mergers and/or acquisitions. At this stage in our
operations, we believe either course is acceptable, as our operations have not
been profitable and our future prospects for our original consulting business
are not good.

Results of Operations

The following summary of our results of operations should be
read in conjunction with our financial statements for the quarter ended May 31,
2009 which are included herein.

Three month period ended May 31, 2009 compared to the three
month period ended May 31, 2008.

|                                    |   | Three Months Ended | 
|----------------------------------- | - | ------------------ | 
|                                    |   | May 31             | 
|                                    |   | 2009               | 
|Revenue                             | $ | Nil                | 
|Selling, General and Administrative | $ | 108,249            | 

6

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|                   |   | Three Months Ended | 
|------------------ | - | ------------------ | 
|                   |   | May 31             | 
|                   |   | 2009               | 
|Debt Forgiveness   | $ | 1,643              | 
|Net Operating Loss | $ | 106,606            | 

Revenues

We have not earned any revenues since our inception and we do
not anticipate earning revenues in the near future.

Expenses

Our selling, general and administrative expenses for the three
month period ended May 31, 2009 was $108,249 and were mainly comprised of rent,
auditor fees, consulting fees, management fees, directors fees and legal
fees.

Liquidity and Capital Resources

As of May 31, 2009, our total current assets were $38,573 and
our total current liabilities were $245,000 and we had a working capital deficit
of $206,427. Our financial statements report a net loss of $106,606 for the
three month period ended May 31, 2009, and a net loss of $318,191 for the period
from February 5, 2008 (date of inception) to May 31, 2009.

We have suffered recurring losses from operations. The
continuation of our company is dependent upon our company attaining and
maintaining profitable operations and raising additional capital as needed. In
this regard we have raised additional capital through equity offerings and loan
transactions.

Cash Flows

|                                                          |   | At      |   |   | At      |  
|--------------------------------------------------------- | - | ------- | - | - | ------- | -
|                                                          |   | May 31, |   |   | May 31, |  
|                                                          |   | 2009    |   |   | 2008    |  
|                                                          |   |         |   |   |         |  
|Net Cash (Used in) Operating Activities                   | $ | (47,173 | ) | $ | (60,354 | )
|Net Cash Provided
      by (Used In) Investing Activities | $ | Nil     |   | $ | Nil     |  
|Net Cash Provided by Financing Activities                 | $ | (9,425  | ) | $ | 60,354  |  
|Increase In Cash During The Period                        | $ | (56,598 | ) | $ | Nil     |  

We had cash in the amount of $20,573 as of May 31, 2009 and a
working capital deficit of $206,427 as of May 31, 2009.

Our principal sources of funds have been from sales of our
common stock and Due to related party.

Contractual Obligations

As a smaller reporting company, we are not required to
provide tabular disclosure obligations.

Going Concern

We anticipate that additional funding will be required in the
form of equity financing from the sale of our common stock. At this time, we
cannot provide investors with any assurance that we will be able to raise
sufficient funding from the sale of our common stock or through a loan from our
directors to meet our obligations over the next twelve months. We do not have
any arrangements in place for any future debt or equity financing.

7

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Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that is material to
stockholders.

Application of Critical Accounting Policies

Our financial statements and accompanying notes are prepared in
accordance with generally accepted accounting principles used in the United
States. Preparing financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets, liabilities, revenue,
and expenses. These estimates and assumptions are affected by management's
application of accounting policies. We believe that understanding the basis and
nature of the estimates and assumptions involved with the following aspects of
our financial statements is critical to an understanding of our financials.

Reclassification

Certain reclassifications, having no effect on net loss, have
been made to the previously issued condensed financial statements to conform to
the current periods presentation of the Companys condensed consolidated
financial statements. Reclassifications were made between accounts payable 
related party and due to related party.

Use of estimates

The preparation of financial statements in conformity with U.S.
Generally Accepted Accounting Principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenue and expense during the reporting
period. Actual results could differ from those estimates and may impact future
results of operations and cash flows.

Cash and cash equivalents

For the purposes of the statement of cash flows, the Company
considers highly liquid financial instruments purchased with maturities of three
months or less to be cash equivalents.

Income Taxes

The Company accounts for its income taxes in accordance with
Statement of Financial Accounting Standards No. 109, which requires recognition
of deferred tax assets and liabilities for future tax consequences attributable
to differences between the financial statement carrying amounts of existing
assets and liabilities and their respective tax bases and tax credit
carry-forwards. Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled. The effect on
deferred tax assets and liabilities or a change in tax rate is recognized in
income in the period that includes the enactment date.

Fair value of financial instruments

Financial accounting standards statement No. 107 Disclosure
about Fair Value of Financial Instruments, requires the Company to disclose,
when reasonably attainable, the fair market value of its assets and liabilities
which are deemed to be financial instruments. The carrying amount and estimated
fair values of the Companys financial instruments approximated their fair value
due to their short-term nature.

Loss per share

The Company computes net loss per share in accordance with SFAS
No. 128, Earnings per Share (SFAS 128) and SEC Staff Accounting Bulletin No.
98 (SAB 98). Under the provisions of SFAS 128 and SAB 98, basic net loss per
share is computed by dividing the net loss available to common stockholders for
the period by the weighted average number of shares of common stock outstanding
during the period.

8

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Diluted loss per share is computed using the weighted average
number of shares and dilutive potential common shares outstanding. Potentially
dilutive common shares consist of employee stock options, warrants, and
restricted stock, and are excluded from the diluted earnings per share
computation in periods where the Company has incurred a net loss.

Dilutive loss per share was not presented, as the Company had
no common stock equivalent shares for the period from inception (February 5,
2008) through February 28, 2009 that would affect the computation of diluted
loss per share.

NEW ACCOUNTING PRONOUNCEMENTS

In December 2007, the FASB issued SFAS 160, Noncontrolling
interests in Consolidated Financial Statements, an amendment of ARB No. 51
which applies to all entities that prepare consolidated financial statements,
except not-for-profit organizations, but will affect only those entities that
have an outstanding noncontrolling interest in one or more subsidiaries or that
deconsolidate a subsidiary. The statement is effective for annual periods
beginning after December 15, 2008.

In March 2007, the FASB issued SFAS No. 161, Disclosures about
Derivative Instruments and Hedging Activities  an amendment of FASB Statement
No. 133, (SFAS 161) as amended and interpreted, which requires enhanced
disclosures about an entitys derivative and hedging activities and thereby
improves the transparency of financial reporting. Disclosing the fair values of
derivative instruments and their gains and losses in a tabular format provides a
more complete picture of the location in an entitys financial statements of
both the derivative positions existing at period end and the effect of using
derivatives during the reporting period. Entities are required to provide
enhanced disclosures about (a) how and why an entity uses derivative
instruments, (b) how derivative instruments and related hedged items are
accounted for under Statement 133 and its related interpretations, and (c) how
derivative instruments and related hedged items affect an entitys financial
position, financial performance, and cash flows. SFAS No. 161 is effective for
financial statements issued for fiscal years and interim periods beginning after
November 15, 2008. Early adoption is permitted, but not expected.

In May 2008, the Financial Accounting Standards Board (FASB)
issued SFAS No. 163, Accounting for Financial Guarantee Insurance Contracts 
An interpretation of FASB Statement No. 60. SFAS 163 requires that an insurance
enterprise recognize a claim liability prior to an event of default when there
is evidence that credit deterioration has occurred in an insured financial
obligation. It also clarifies how Statement 60 applies to financial guarantee
insurance contracts, including the recognition and measurement to be used to
account for premium revenue and claim liabilities, and requires expanded
disclosures about financial guarantee insurance contracts. It is effective for
financial statements issued for fiscal years beginning after December 15, 2008,
except for some disclosures about the insurance enterprises risk-management
activities. SFAS 163 requires that disclosures about the risk-management
activities of the insurance enterprise be effective for the first period
beginning after issuance. Except for those disclosures, earlier application is
not permitted. The adoption of this statement is not expected to have a material
effect on the Companys financial statements.

In May 2009, the FSAB issued SFAS No. 165, Subsequent Events,
SFAS No. 165 is intended to establish general standards of accounting for and
disclosure of events that occur after the balance sheet date, but before
financial statements are issued or are available to be issued. It requires the
disclosure of the date through which an entity has evaluated subsequent events
and the basis for that date-that is, whether that date represents the date the
financial statements were issued or were available to be issued. This disclosure
should alert all users of financial statements that an entity has not evaluated
subsequent events after that date in the set of financial statements being
presented. SFAS No. 165 is effective for financial statements issued for fiscal
years and interim periods ending after June 15, 2009. We plan to adopt SFAS 165
in the first quarter of Fiscal 2010 and do not expect it to have a material
impact on our financial statements.

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Item 4. Controls and Procedures

Managements Report on Disclosure Controls and
Procedures

We maintain disclosure controls and procedures that are
designed to ensure that information required to be disclosed in our reports
filed under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms, and that such information
is accumulated and communicated to our management, including our president (also
our principal executive officer, principal financial officer and principal
accounting officer) to allow for timely decisions regarding required disclosure.

As of May 31, 2009, the end of our first quarter covered by
this report, we carried out an evaluation, under the supervision and with the
participation of our president (also our principal executive officer, principal
financial and accounting officer), of the effectiveness of the design and
operation of our disclosure controls and procedures. Based on the foregoing, our
president (also our principal executive officer, principal financial and
accounting officer) concluded that our disclosure controls and procedures were
not effective in providing reasonable assurance in the reliability of our
financial reports as of the end of the period covered by this quarterly
report.

Inherent limitations on effectiveness of
controls

Internal control over financial reporting has inherent
limitations which include but is not limited to the use of independent
professionals for advice and guidance, interpretation of existing and/or
changing rules and principles, segregation of management duties, scale of
organization, and personnel factors. Internal control over financial reporting
is a process which involves human diligence and compliance and is subject to
lapses in judgment and breakdowns resulting from human failures. Internal
control over financial reporting also can be circumvented by collusion or
improper management override. Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements on a
timely basis, however these inherent limitations are known features of the
financial reporting process and it is possible to design into the process
safeguards to reduce, though not eliminate, this risk. Therefore, even those
systems determined to be effective can provide only reasonable assurance with
respect to financial statement preparation and presentation. Projections of any
evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.

Changes in Internal Control over Financial
Reporting

There have been no changes in our internal controls over
financial reporting that occurred during the quarter ended May 31, 2009 that
have materially or are reasonably likely to materially affect, our internal
controls over financial reporting.

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

We know of no material, active or pending legal proceedings
against the 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.

Item 1A. Risk Factors

Much of the information included in this annual report includes
or is based upon estimates, projections or other forward looking statements.
Such forward looking statements include any projections and estimates made by us
and our management in connection with our business operations. While these
forward-looking statements, and any

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assumptions upon which they are based, are made in good faith
and reflect our current judgment regarding the direction of our business, actual
results will almost always vary, sometimes materially, from any estimates,
predictions, projections, assumptions or other future performance suggested
herein.

Such estimates, projections or other forward looking
statements involve various risks and uncertainties as outlined below. We
caution the reader that important factors in some cases have affected and, in
the future, could materially affect actual results and cause actual results to
differ materially from the results expressed in any such estimates, projections
or other forward looking statements.

Our common shares are considered speculative as our business is
still in an early growth stage of its development. Prospective investors should
consider carefully the risk factors set out below.

Because our auditors have issued a going concern opinion,
there is substantial uncertainty we will continue activities in which case you
could lose your investment.

Our auditors have issued a going concern opinion. This means
that there is substantial doubt that we can continue as an ongoing business for
the next twelve months. As such we may have to cease activities and you could
lose your investment.

Our management is currently seeking out potential business
opportunities and there are numerous risks associated with any potential
business opportunity.

We intend to use reasonable efforts to acquire or complete
potential business opportunities that our management determines is in the best
interests of our shareholders. Such combinations will be accompanied by risks
commonly encountered in acquisitions. Failure to manage and successfully
integrate acquisitions we make could harm our business, our strategy and our
operating results in a material way.

Trading in our common shares on the OTC Bulletin Board is
limited and sporadic making it difficult for our shareholders to sell their
shares or liquidate their investments.

Our common shares are currently listed for public trading on
the OTC Bulletin Board. The trading price of our common shares has been subject
to wide fluctuations. Trading prices of our common shares may fluctuate in
response to a number of factors, many of which will be beyond our control. The
stock market has generally experienced extreme price and volume fluctuations
that have often been unrelated or disproportionate to the operating performance
of companies with no current business operation. There can be no assurance that
trading prices and price earnings ratios previously experienced by our common
shares will be matched or maintained. These broad market and industry factors
may adversely affect the market price of our common shares, regardless of our
operating performance.

In the past, following periods of volatility in the market
price of a companys securities, securities class-action litigation has often
been instituted. Such litigation, if instituted, could result in substantial
costs for us and a diversion of managements attention and resources.

Our stock is a penny stock. Trading of our stock may be
restricted by the SECs penny stock regulations which may limit a stockholders
ability to buy and sell our stock.

Our stock is a penny stock. The Securities and Exchange
Commission has adopted Rule 15g-9 which generally defines 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 SEC which provides information about penny
stocks and the nature and level of risks in the penny

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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.

The Financial Industry Regulatory Authority, or FINRA, has
adopted sales practice requirements which may also limit a stockholder's ability
to buy and sell our stock.

In addition to the "penny stock" rules described above, FINRA
has adopted rules that require 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, FINRA believes that there is a high probability that speculative
low priced securities will not be suitable for at least some customers. FINRA
requirements make it more difficult for broker-dealers to recommend that their
customers buy our common stock, which may limit your ability to buy and sell our
stock and have an adverse effect on the market for our shares.

Trends, Risks and Uncertainties

We have sought to identify what we believe to be the most
significant risks to our business, but we cannot predict whether, or to what
extent, any of such risks may be realized nor can we guarantee that we have
identified all possible risks that might arise. Investors should carefully
consider all of such risk factors before making an investment decision with
respect to our common shares.

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Submission of Matters to a Vote of Securities
Holders

None.

Item 5. Other Information

None.

Item 6. Exhibits

|Exhibit |                                                                                                                                      
|------- | -------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description                                                                                                                          
|        |                                                                                                                                      
|(3)     | (i) Articles of
      Incorporation; and (ii) Bylaws                                                                                 
|3.1     | Articles of Incorporation (incorporated by
      reference from our Registration Statement on Form S-1 filed on April 7,
      2008).

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|Exhibit |                                                                                                                                                                                                                                  
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description                                                                                                                                                                                                                      
|3.2     | Bylaws (incorporated
        by reference from our Registration Statement on Form S-1 filed on April
        7, 2008).                                                                                                           
|(10)    | Material Agreements                                                                                                                                                                                                              
|10.1    | Share exchange
        agreement dated February 2, 2009 between our company and Guangdong Hongmao
        Industrial Co., Ltd. (incorporated by reference from our Current Report
        on Form 8-K filed on February 4, 2009).
|(14)    | Code of Ethics                                                                                                                                                                                                                   
|14.1*   | Code of Ethics
        and Business Conduct                                                                                                                                                                                      
|(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

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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.

| | FUTURE CANADA CHINA ENVIRONMENT INC.                               
| | -------------------------------------------------------------------
| |                                                                    
| |                                                                    
| |                                                                    
| | /s/ Rui Yang                                                       
| | Rui Yang                                                           
| | President, Secretary, Treasurer and Director                       
| | (Principal Executive Officer, Principal
      Financial Officer and
| | Principal                                                          
| | Accounting Officer)                                                
| | Date: July 20, 2009                                                

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