---

As filed with the Securities and
Exchange Commission on **September 14, 2006******

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

FORM 10-QSB

(Mark One)

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

For the quarter ended July 31, 2006

OR

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

For the transition period from __________to ______________

Commission File Number **333-122870**

MAJOR CREATIONS INCORPORATED(Exact name of registrant as specified in its charter)

|Nevada                         | 98-0420577         
|------------------------------ | -------------------
|State or other jurisdiction of | (I.R.S. Employer   
|incorporation or organization  | Identification No.)

57113  2020 Sherwood DriveSherwood Park,
Alberta,Canada T8A 5L7(Address of principal
executive offices) (Zip Code)

Registrant's telephone number, including area code
**(780) 970-0996**

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

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. Yes [X] No [ 
 ]

Number of shares outstanding of Registrants class of common
stock as of September 14 , 2006: 2,550,000

Authorized share capital of the registrant: 75,000,000 common
shares, par value of $0.001

The Company recorded $0 revenue for the quarter ended July 31,
2006

---

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS



|                                         | Page Number
|---------------------------------------- | -----------
|                                         |            
|Balance Sheet                            | F-2        
|                                         |            
|Statements of
      Operations           | F-3        
|                                         |            
|Statement of Cash Flows                  | F-4        
|                                         |            
|Statements of
      Stockholders Equity | F-5        
|                                         |            
|Notes to the Financial
      Statements  | F-6        

---



MAJOR CREATIONS INCORPORATED

(A Development Stage Company)

INTERIM FINANCIAL STATEMENTS

July 31, 2006

(Stated in US Dollars)

(Unaudited)





---

MAJOR CREATIONS INCORPORATED(A Development Stage Company) 
  INTERIM BALANCE SHEETS 
  July 31, 2006 and October 31, 2005 
  (Stated in US Dollars) 
  (Unaudited)

|                                                       |   | July 31, |   |   | October 31, |  
|------------------------------------------------------ | - | -------- | - | - | ----------- | -
|                                                       |   | 2006     |   |   | 2005        |  
|                                                       |   |          |   |   |             |  
|**ASSETS**                                             |  
|                                                       |   |          |   |   |             |  
|Current                                                |   |          |   |   |             |  
|Cash                                                   | $ | 3,645    |   | $ | 5,811       |  
|Inventory                                              |   | 29,187   |   |   | -           |  
|                                                       |   |          |   |   |             |  
|                                                       |   | 32,832   |   |   | 5,811       |  
|                                                       |   |          |   |   |             |  
|Equipment - Note 4                                     |   | 12,043   |   |   | -           |  
|Website development - Note 5                           |   | 1,667    |   |   | -           |  
|                                                       |   |          |   |   |             |  
|                                                       | $ | 46,542   |   | $ | 5,811       |  
|                                                       |   |          |   |   |             |  
|LIABILITIES                                            |  
|                                                       |   |          |   |   |             |  
|Current                                                |   |          |   |   |             |  
|Accounts payable and accrued
      liabilities         | $ | 5,637    |   | $ | 4,400       |  
|                                                       |   |          |   |   |             |  
|STOCKHOLDERS
      EQUITY                             |  
|                                                       |   |          |   |   |             |  
|Capital stock - Note 6                                 |   |          |   |   |             |  
|Authorized:                                            |   |          |   |   |             |  
|75,000,000 common shares, par value $0.001 per share   |   |          |   |   |             |  
|Issued and outstanding:                                |   |          |   |   |             |  
|2,550,000 common shares (2005: 4,150,000)              |   | 2,550    |   |   | 4,150       |  
|Additional paid-in capital                             |   | 115,950  |   |   | 19,350      |  
|Deficit accumulated during the development
      stage |   | (77,595  | ) |   | (22,089     | )
|                                                       |   |          |   |   |             |  
|                                                       |   | 40,905   |   |   | 1,411       |  
|                                                       |   |          |   |   |             |  
|                                                       | $ | 46,542   |   | $ | 5,811       |  

SEE ACCOMPANYING NOTE

---

MAJOR CREATIONS INCORPORATED(A Development Stage Company) 
  INTERIM STATEMENTS OF OPERATIONS 
  for the three and nine-month periods ended July 31, 2006 and 2005 and 
  for the period from February 5, 2004 (Date of Inception) to July 31, 2006 
  (Stated in US Dollars) 
  (Unaudited)

February 5,2004(Date ofThree months ending
      
      
      Nine months ending
      
      
      Inception) toJuly 31
      
      
      July 31
      
      
      July 31,2006
      
      
      2005
      
      
      2006
      
      
      2005
      
      
      2006ExpensesAmortization
      $
      930
      
      $
      -
      
      $
      1,228
      
      $
      -
      
      $
      1,228Consulting
      
      -
      
      
      -
      
      
      4,341
      
      
      -
      
      
      4,341Marketing and promotion
      
      -
      
      
      -
      
      
      20,707
      
      
      -
      
      
      21,605Office and administration
      
      49
      
      
      18
      
      
      5,087
      
      
      345
      
      
      5,614Organizational costs
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      1,189Professional fees
      
      6,923
      
      
      1,000
      
      
      18,490
      
      
      11,200
      
      
      34,590Supplies and materials
      
      -
      
      
      -
      
      
      4,264
      
      
      -
      
      
      7,639Travel and accommodation
      
      -
      
      
      -
      
      
      1,389
      
      
      -
      
      
      1,389Net loss for the period
      $
      7,902
      
      $
      1,018
      
      $
      55,506
      
      $
      11,545
      
      $
      77,595Basic and diluted loss per share
      $
      0.00
      
      $
      0.00
      
      $
      (0.01
      )
      $
      0.00Weighted average shares outstanding
      
      4,157,609
      
      
      4,150,000
      
      
      4,479,670
      
      
      4,150,000


SEE ACCOMPANYING NOTE

---

MAJOR CREATIONS INCORPORATED(A Development Stage Company) 
  INTERIM STATEMENTS OF CASH FLOWS 
  for the nine-month periods ended July 31, 2006 and 2005 and 
  for the period February 5, 2004 (Date of Inception) to July 31, 2006 
  (Stated in US Dollars) 
  (Unaudited)

|                                                     |   |                   |   |   |               |   |   | February 5, |  
|---------------------------------------------------- | - | ----------------- | - | - | ------------- | - | - | ----------- | -
|                                                     |   |                   |   |   |               |   |   | 2004        |  
|                                                     |   |                   |   |   |               |   |   | (Date of    |  
|                                                     |   | Nine months ended |   |   | Inception) to |  
|                                                     |   | July 31,          |   |   | July 31       |  
|                                                     |   | 2006              |   |   | 2005          |   |   | 2006        |  
|                                                     |   |                   |   |   |               |   |   |             |  
|Cash Flows from Operating Activities                 |   |                   |   |   |               |   |   |             |  
|Net loss for the period                              | $ | (55,506           | ) | $ | (11,545       | ) | $ | (77,595     | )
|Item not affecting cash:                             |   |                   |   |   |               |   |   |             |  
|Amortization                                         |   | 1,228             |   |   | -             |   |   | 1,228       |  
|Adjustments to reconsile net loss to cash
      used |   |                   |   |   |               |   |   |             |  
|by operating activities                              |   |                   |   |   |               |   |   |             |  
|Inventory                                            |   | (29,187           | ) |   | -             |   |   | (29,187     | )
|Accounts payable and accrued liabilities             |   | 1.237             |   |   | (500          | ) |   | 5,637       |  
|                                                     |   |                   |   |   |               |   |   |             |  
|Net cash used in operating activities                |   | (82,228           | ) |   | (12,045       | ) |   | (99,917     | )
|                                                     |   |                   |   |   |               |   |   |             |  
|Cash Flows from Investing Activities                 |   |                   |   |   |               |   |   |             |  
|Additions to equipment                               |   | (12,938           | ) |   | -             |   |   | (12,938     | )
|Additions to website                                 |   | (2,000            | ) |   | -             |   |   | (2,000      | )
|                                                     |   |                   |   |   |               |   |   |             |  
|Net cash provided by investing activities            |   | (14,938           | ) |   | -             |   |   | (14,938     | )
|                                                     |   |                   |   |   |               |   |   |             |  
|Cash Flows from Financing Activity                   |   |                   |   |   |               |   |   |             |  
|Issuance of common shares                            |   | 95,000            |   |   | -             |   |   | 118,500     |  
|                                                     |   |                   |   |   |               |   |   |             |  
|Net cash provided by financing activities            |   | 95,000            |   |   | -             |   |   | 118,500     |  
|                                                     |   |                   |   |   |               |   |   |             |  
|Increase (decrease) in cash during the period        |   | (2,166            | ) |   | (12,045       | ) |   | 3,645       |  
|                                                     |   |                   |   |   |               |   |   |             |  
|Cash, balance at beginning of period                 |   | 5,811             |   |   | 17,975        |   |   | -           |  
|                                                     |   |                   |   |   |               |   |   |             |  
|Cash, balance at end of period                       | $ | 3,645             |   | $ | 5,930         |   | $ | 3,645       |  

SEE ACCOMPANYING NOTE

---

MAJOR CREATIONS INCORPORATED(A Development Stage Company) 
  INTERIM STATEMENTS OF STOCKHOLDERS EQUITY 
  period from February 5, 2004 (Date of Inception) to July 31, 2006 
  (Stated in US Dollars) 
  (Unaudited)

DeficitAccumulatedAdditional
      
      
      During theCommon Stock
      
      
      Paid-in
      
      
      DevelopmentShares
      
      
      Amount
      
      
      Capital
      
      
      Stage
      
      
      TotalCapital stock issued for cash at $0.001
      
      2,000,000
      
      $
      2,000
      
      $
      -
      
      $
      -
      
      $
      2,000 at $0.01
      
      2,150,000
      
      
      2,150
      
      
      19,350
      
      
      -
      
      
      21,500Net loss for the period
      
      -
      
      
      -
      
      
      -
      
      
      (7,025
      )
      
      (7,025
      )Balance, October 31, 2004
      
      4,150,000
      
      
      4,150
      
      
      19,350
      
      
      (7,025
      )
      
      16,475Net loss for the period
      
      -
      
      
      -
      
      
      -
      
      
      (15,064
      )
      
      (15,064
      )Balance, October 31, 2005
      
      4,150,000
      
      
      4,150
      
      
      19,350
      
      
      (22,089
      )
      
      1,411Capital stock issued for cash- at $0.10
      
      950,000
      
      
      950
      
      
      94,050
      
      
      -
      
      
      95,000Capital stock retired to the treasury
      
      (2,550,000
      )
      
      (2,550
      )
      
      2,550
      
      
      -
      
      
      -Net loss for the period
      
      -
      
      
      -
      
      
      -
      
      
      (55,506
      )
      
      (55,506
      )Balance, July 31, 2006
      
      2,550,000
      
      $
      2,550
      
      $
      115,950
      
      $
      (77,595
      )
      $
      40,905


SEE ACCOMPANYING NOTE

---

MAJOR CREATIONS INCORPORATED(A Development Stage Company) 
  NOTES TO THE INTERIM FINANCIAL STATEMENTS 
  July 31, 2006 
  (Stated in US Dollars) 
  (Unaudited)

|Note 1 | Interim Reporting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       | The accompanying unaudited interim
        financial statements have been prepared by the Company pursuant to the
        rules and regulations of the United States Securities and Exchange Commission.
        Certain information and disclosures normally included in annual financial
        statements prepared in accordance with accounting principles generally
        accepted in the United States of America have been condensed or omitted
        pursuant to such rules and regulations. In the opinion of management,
        all adjustments and disclosures necessary for a fair presentation of these
        financial statements have been included. Such adjustments consist of normal
        recurring adjustments. These interim financial statements should be read
        in conjunction with the Companys October 31, 2005 audited financial
        statements.                                                                                                                                                                                                                                                                                                                                                                                                
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       | The results of operations for
        the nine months ended July 31, 2006 are not indicative of the results
        that may be expected for the full year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Note 2 | Nature and Continuance of
        Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       | These financial statements have
        been prepared in accordance with generally accepted accounting principles
        applicable to a going concern, which assumes that the Company will be
        able to meet its obligations and continue its operations for its next
        fiscal year. Realization values may be substantially different from carrying
        values as shown and these financial statements do not give effect to adjustments
        that would be necessary to the carrying values and classification of assets
        and liabilities should the Company be unable to continue as a going concern.
        At July 31, 2006, the Company had not yet achieved profitable operations,
        has accumulated losses of $77,595 since its inception and expects to incur
        further losses in the development of its business, all of which casts
        substantial doubt about the Companys ability to continue as a going
        concern. The Companys ability to continue as a going concern is
        dependent upon its ability to generate future profitable operations and/or
        to obtain the necessary financing to meet its obligations and repay its
        liabilities arising from normal business operations when they come due.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Note 3 | Summary of Significant Accounting
        Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       | Equipment and Amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       | Equipment is recorded at cost
        and amortized over its estimated useful life using the straight-line method
        at the following rates:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

Computer equipment
      30% per annumOffice furniture
      20% per annumTools
      20% per annum


---

Major Creations Incorporated 
  (A Development Stage Company) 
  Notes to the Interim Financial Statements 
  July 31, 2006 
  (Stated in US Dollars) 
  (Unaudited)  Page 2

|Note 3 | Summary of Significant Accounting
        Policies (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       | Inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       | Inventory consists of parts
        used to produce final products for resale and is valued at the lower of
        cost and market value using the average cost method.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       | Website Development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       | The Company recognizes the costs
        incurred in the development of the Companys website in accordance
        with EITF 00-2 Accounting for Website Development Costs and,
        with provisions of AICPA Statement of Position No. 98-1, Accounting
        for the Costs of Computer Software Developed or Obtained for Internal
        Use. Accordingly, direct costs incurred during the application stage
        of development are capitalized and amortized over the estimated useful
        life of three years. Fees incurred for website hosting are expensed over
        the period of the benefit. Costs of operating a website are expensed as
        incurred.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Note 4 | Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

| |                    |   |        |  |   |                     |  |   |        |  |  |   | October 31, | 
| | ------------------ | - | ------ |  | - | ------------------- |  | - | ------ |  |  | - | ----------- | 
| |                    |   |        |  |   | July
      31, 2006 |  |   |        |  |  |   | 2005        | 
| |                    |   |        |  |   | Accumulated         |  |   |        |  |  |   |             | 
| |                    |   | Cost   |  |   | Amortization        |  |   | Net    |  |  |   | Net         | 
| |                    |   |        |  |   |                     |  |   |        |  |  |   |             | 
| | Computer equipment | $ | 4,680  |  | $ | 351                 |  | $ | 4,329  |  |  | $ | -           | 
| | Office furniture   |   | 386    |  |   | 19                  |  |   | 367    |  |  |   | -           | 
| | Tools              |   | 7,872  |  |   | 525                 |  |   | 7,347  |  |  |   | -           | 
| |                    |   |        |  |   |                     |  |   |        |  |  |   |             | 
| |                    | $ | 12,938 |  | $ | 895                 |  | $ | 12,043 |  |  | $ | -           | 

|Note 5 | Website Development
|------ | -------------------

| |         |   |       |  |   |                     |  |   |       |  |  |   | October 31, | 
| | ------- | - | ----- |  | - | ------------------- |  | - | ----- |  |  | - | ----------- | 
| |         |   |       |  |   | July
      31, 2006 |  |   |       |  |  |   | 2005        | 
| |         |   |       |  |   | Accumulated         |  |   |       |  |  |   |             | 
| |         |   | Cost  |  |   | Amortization        |  |   | Net   |  |  |   | Net         | 
| |         |   |       |  |   |                     |  |   |       |  |  |   |             | 
| | Website | $ | 2,000 |  | $ | 333                 |  | $ | 1,667 |  |  | $ | -           | 

Note 6
      Capital StockOn June 28, 2006, three directors
          of the company returned 2,550,000 common shares to the treasury for
          cancellation.


---

Major Creations Incorporated 
  (A Development Stage Company) 
  Notes to the Interim Financial Statements 
  July 31, 2006 
  (Stated in US Dollars) 
  (Unaudited)  Page 3

|Note 7 | Subsequent Events
|------ | -----------------

On September 5, 2006, the company entered
  into a Letter of Intent with the shareholders of Interstar Development Limited
  whereby the Company will enter into a formal agreement on or before September
  30, 2006 and will close, subject to certain conditions, on or before November
  30, 2006. Closing is subject to a number of conditions, including due diligence
  of Interstars business and affairs and the completion of audited pro forma
  consolidated financial statements which are required to be filed with the SEC
  concurrently with the Closing. Pursuant to the letter of intent, on or before
  September 30, 2006, the Company will enter into an agreement to purchase all
  of the issued and outstanding shares of Interstar Development Limited, a British
  Virgin Islands Company having two wholly-owned foreign subsidiaries. Payment
  of the purchase of the Interstar shares will be by way of issuance of 2,000,000
  common shares of the Company, on a post stock-split basis.

The company has resolved to increase
  the authorized share capital of the Company to 200,000,000 common shares with
  a par value of $0.001 per share and to forward split the Company's issued and
  outstanding shares on a 36 to 1 basis.

As a condition of closing, the Company
  will enter into agreements for equity or debt financing in the amount of at
  least $2,400,00.

---

Item 2. MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF
OPERATIONS

We have not generated any revenues from products, services or
operations since the inception of our company. The foregoing analysis should be
read jointly with the financial statements, related notes, and the cautionary
statement regarding forward-looking statements, which appear elsewhere in this
filing.

As this Report on Form 10QSB represents a transitional filing
for the Company in that it plans to undertake a new business, the Company is
presenting a Management Discussion and Analysis.

The following Risk Factors summarize some of the risks inherent
in our business and to our company in particular:

Our limited operating history may not serve as an
adequate basis to judge our future prospects and results of
operations.

We have a limited operating history. As such, our historical
operating results may not provide a meaningful basis for evaluating our
business, financial performance and prospects. We may not be able to achieve a
similar growth rate in future periods. Accordingly, you should not rely on our
results of operations for any prior periods as an indication of our future
performance.

We have incurred losses in prior periods and may incur
losses in the future.

We incurred a net loss in all prior financial periods. We are
unsure of our future business direction but, regardless of what direction we go
in, it is likely we will incur losses in the future in building any
business.

The market price for our shares may be
volatile.

In addition, the securities market has from time to time
experienced significant price and volume fluctuations that are not related to
the operating performance of particular companies. These market fluctuations may
also have a material adverse effect on the market price of our shares.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report on Form 10QSB contains forward-looking statements,
in particular in our Plan of Operations, that relate to our current expectations
and views of future events. These statements relate to events that involve known
and unknown risks, uncertainties and other factors, including those listed under
Risk Factors, which may cause our actual results, performance or achievements
to be materially different from any future results, performances or achievements
expressed or implied by the forward-looking statements.

In some cases, these forward-looking statements can be
identified by words or phrases such as may, will, expect, anticipate,
aim, estimate, intend, plan or planned believe, potential,
continue, is/are likely to, hope or other similar expressions. We have
based these forward-looking statements largely on our current expectations and
projections about future events and financial trends that we believe may affect
our financial condition, results of operations, business strategy and financial
needs.

YOU SHOULD NOT PLACE UNDUE RELIANCE ON THESE FORWARD LOOKING
STATEMENTS

The forward-looking statements made in this report on Form
10QSB relate only to events or information as of the date on which the
statements are made in this report on Form 10QSB. Except as required by law, we
undertake no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or otherwise,
after the date on which the statements are made or to reflect the occurrence of
unanticipated events. You should read this report and the documents that we
reference in

---

this report, including documents referenced by incorporation,
completely and with the understanding that our actual future results may be
materially different from what we expect or hope.

Plan of Operation for the Next Twelve Months

With the appointment of new directors and officers of the
Company as described in the Management Discussion and Analysis below, the
Company no longer intends to pursue its previous business. As discussed in the
Management Discussion and Analysis below, the Company has entered into a Letter
of Intent with Interstar Development Limited, a company intending to develop
online entertainment products, to acquire all of the issued and outstanding
shares of Interstar Development Limited (Interstar).

The Company has no business operations at present and little
working capital.

As the Company has not completed due diligence investigations
of the operations and history of Interstar it cannot say with any certainty what
expenditures or financial activities would be associated with any acquisition of
Interstar. The Company hopes to have a greater understanding of Interstars
business and operations on or before September 30, 2006, the date upon which the
parties must enter into a formal share purchase agreement or terminate the
Letter of Intent.

Our future operations are dependent upon the identification and
successful completion of additional long-term or permanent equity financing, the
support of creditors and shareholders, and, ultimately, the achievement of
profitable operations. There can be no assurances that we will be successful. We
will continue to evaluate possible business projects and our projected
expenditures thereon relative to our available cash and to seek additional means
of financing in order to satisfy our working capital and other cash
requirements.

The following discussion of the plan of operation, financial
condition, results of operations, cash flows and changes in financial position
of our Company should be read in conjunction with our most recent financial
statements and notes appearing elsewhere in this Form 10-QSB; and Reports on
Form 8-K filed during our most recent quarter and subsequent to the period end
of that quarter. Readers are advised to review any Reports on Form 8-K filed
subsequent to this Form 10-QSB as such reports may contain more current
information regarding the Company and Interstar.

We continue to operate with very limited administrative
support, and our current officers and directors continue to be responsible for
many duties to preserve our working capital.

Projected Expenditures Over The Next 12 Months

As at July 31, 2006, we had $3,645 in cash in current assets as
compared to $5,811 as at October 31, 2005, our previous year end. The decrease
in cash was due to expenditures on general and administrative expenses including
professional fees primarily. We also had $29,187 of inventory as of July 31,
2006 as compared to $0 on October 31, 2005.

The Company cannot project its expenses over the next 12 months
without a more complete understanding of what its business operations will be on
a going forward basis. At this point, given that it is likely that business
operations will increase, even if only in connection with the due diligence and
costs of investigating a possible acquisition of Interstar, it is clear that the
Company does not have enough working capital to pay even minimal expenses over
the next six months.

Unless in connection with a new business or project of the
Company, we do not anticipate making any major purchases of fixed assets in the
next 6 months, or conducting any large-scale research and development. Any
development of research and development functions would be dependent upon
securing additional equity or other financing to add to our working capital.
Under US GAAP, these activities may

---

possibly not be classified as research and development but may be classified as expenses depending on the nature of the activities and payment for them.

We do not have sufficient cash resources to satisfy our needs over the next 6 months. Our ability to satisfy cash requirements will determine whether we achieve our business objectives, including but not limited to securing any business project and
developing any proposed business.Should we require additional cash in the future, there can be no assurance that we will be successful in raising additional debt or equity financing on terms acceptable
to our company, if at all.

Management Discussion and Analysis

Liquidity and Capital Resources

At July 31, 2006, we had working capital of $27,195, compared to working capital of $1,411 at October 31, 2005. The increase in working capital was primarily due to the issuance of common shares for $95,000 in proceeds in 2006.

At July 31, 2006, our total assets consisted of $46,542 in cash, inventory, equipment and website development assets. This compares with total assets at October 31, 2005 consisting of $5,811 in cash .

At July 31, 2006, our total current liabilities, including all accounts payable, were $5,637 as compared to $4,400 at October 31, 2005..

We have not had revenues from inception. Our short and long term survival is dependent on funding from sales of securities and, as necessary, from shareholder loans.

Revenues

The Company had $0 in revenues during the three months ending July 31, 2006 and has had no revenues in any past period. Unless and until the Company secures or develops a business and business project, it will continue to have no revenues.

Expenses and General and Administrative Expenses

During the nine months ending July 31, 2006, the Company incurred total expenses of $55,506 as compared to expenses of $11,545 in the corresponding period ending July 31, 2005. This increase is due to the following new expenses:
amortization, consulting, marketing and promotion, professional fees, supplies and materials and travel and accommodation.

Results of Operations / Net Loss

Our company posted a net loss for the nine month period of $55,506, being $0.01 per share, for the nine months ended July 31, 2006 compared to $11,545 or $0.00 per share for the nine months ended July 31, 2005. From inception to July
31, 2006 we have incurred accumulated losses of $77,595. The principal component of losses in the nine months ending July 31, 2006 were professional fees, office and administration expenses, marketing and promotion, consulting and supplies and
materials.

Cash on hand is currently our only source of liquidity. We do not have any lending arrangements in place with banking or financial institutions and we do not anticipate that we will be able to secure these funding arrangements in the near future.

We believe our existing cash balances are not sufficient to carry our normal operations for the next 6 months. To the extent that we require additional funds to support our operations or the expansion of our business, we may attempt to sell
additional equity shares or issue debt. Any sale of additional equity

---

securities will result in dilution to our stockholders. There can be no assurance that additional financing, if required, will be available to our company or on acceptable terms.

Subsequent Events

Subsequent to the period end date of July 31, 2006, the Secretary, Treasurer and Director of the Registrant, William Major, has resigned.  The President and Director of the Registrant, Stan Major, has resigned. William Major and Terence Major, the
other Directors of the Registrant, have also resigned.

Guy Peckham, Hui Li, Wang Hui and Gao Jiu have been appointed as Directors of the Registrant. Mr. Gao Jiu has been appointed as Chairman of the Board of Directors.

Guy Peckham has been appointed as President and CEO of the Registrant. Mr. Peckham is a Director and President of Rubincon Ventures Inc., another reporting issuer under the Securities Exchange Act of 1934. At this time, he has not entered into an
agreement to receive compensation for acting in this role or in his role as Director.  Mr. Peckham has, for the last five years, been employed in various management and consulting capacities in a self-employed capacity.

Hui Li has been appointed, effective September 4, 2006 as Secretary and Treasurer of the Registrant. Mr. Li was employed as a Senior Director for the Technology Center T2CN Technology (Shanghai) Co. from June 2005 to June 2006. He was employed as
the Manager for Data Center of Shanda Interactive Entertainment Limited from May 2003 to May 2005. From January 2002 to April 2004, he was the Senior Solution Consultant for NCR (China) Limited Shanghai Representative Office. From July 2000 to
December 2001 he was employed as the DBA for Shangai Fudan Kingstar Computer Co., Ltd. Mr. Li is not a Director or Officer of any other reporting issuer.

Wang Hui has been appointed, effective September 4, 2006 as Vice President of the Registrant. From 2001 to present Ms. Hui has been the Vice General Manager of Shenzhen Digital Arts Technology Co., Ltd. Ms. Hui is not a Director or Officer of any
other reporting issuer.

Gao Jiu has been appointed, effective September 4, 2006 as Chairman of the Board of Directors of the Registrant. Mr. Jiu was the founder and has been President of Shenzhen Digital Arts Technology Co., Ltd. since 2001. Mr. Jiu is not a Director or
Officer of any other reporting issuer.

All of Guy Peckham, Hui Li, Wang Hui and Gao Jiu have not engaged in any related party transactions with the Registrant in the previous two years save and except that they are shareholders of Interstar Development Limited and will, if the
Companys proposed acquisition of Interstar Development Ltd. closes, receive shares of the Registrant issued to the shareholders of Interstar Development Limited as described below.

Also subsequent to the July 31, 2006 period end, the Company has entered into a letter of intent with Interstar Development Ltd. (Interstar) to acquire all of the issued and outstanding shares of Interstar. The Letter of Intent calls for
the issuance, to the shareholders of Interstar pro rata according to their interest, a total of 2,000,000 common shares of the Company issued after effecting the consolidation described below. The Letter of Intent is attached to the Companys
report on Form 8-K dated September 11, 2006 as Exhibit 10.1.

The Letter of Intent calls for the Company and the shareholders of Interstar to enter into a definitive formal agreement on or before September 30, 2006. The Company intends to conduct due diligence on the affairs of Interstar prior to that date and
to also determine if the financial history of Interstar can be audited in a manner consistent with and in conformity with SEC and US GAAP rules. The Company may not have the working capital to undertake such due diligence and, if so, would have to
borrow funds from its directors and officers or other sources or raise additional equity capital to complete such due diligence or any other business activities.

---

In the event that the Company does proceed to execution of a
formal agreement with the shareholders of Interstar on or before September 30,
2006, the Company anticipates that this formal agreement would be disclosed on a
report on Form 8-K. Upon closing of any proposed purchase of Interstar, the
Company would be required to file a report on Form 8-K with 10SB disclosure of
the business of Interstar, together with applicable audited consolidated pro
forma financial statements for Interstar and the Company, within four (4) days
of closing. While the Company does have assets, being inventory and equipment
primarily, which may be considered not to be nominal assets, therefore
classifying the Company as a non-shell company, the Company will likely take a
conservative approach to SEC rules regarding shell companies and file
information as though it were a shell. This will also ensure that the public has
current and complete information on Interstar, or any other new business the
Company enters into, available to it.

ITEM 3. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are
designed to ensure that information required to be disclosed in our Exchange Act
reports is recorded, processed, summarized and reported within the time periods
specified in the United States Securities and Exchange Commission rules and
forms, and that such information is accumulated and communicated to our
management; including our President and person acting as Chief Financial
Officer, as appropriate, to allow timely decisions regarding required
disclosure.

We carried out an evaluation, under the supervision and with
the participation of our management, including our President and acting Chief
Financial Officer, of the effectiveness of the design and operation of our
disclosure controls and procedures pursuant to Exchange Act Rule 13a-14 as of
the end of period covered by this report. Based upon the foregoing, our
President and our acting Chief Financial Officer concluded that our disclosure
controls and procedures are effective.

There were no changes in our internal control over financial
reporting identified in connection with the evaluation referred to in the
immediately preceding paragraph that occurred during our last fiscal quarter
that has materially affected or is reasonably likely to materially affect, our
internal control over financial reporting.

PART II  OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

On June 28, 2006, three (3) previous directors returned
2,500,000 shares common shares to the treasury for cancellation, reducing the
number of issued and outstanding shares of the Company to 2,550,000.

The directors of the Company have resolved to increase the
authorized shares of the Company to 200,000,000 common shares and have also
resolved to split the Companys shares on a 36 for 1 basis. These two corporate
changes are expected to be effected sometime in later September after the
Company has completed a planned change in its trust and transfer agent to
Holladay Stock Transfer, Inc. of Arizona.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS

---

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

(a) Pursuant to Rule 601 of Regulation SB, the following
exhibits are included herein or incorporated by reference.

Exhibit Number
      Description3.1
      Articles of Incorporation*3.2
      By-laws*5
      Opinion re: Legality*31.1
      CERTIFICATION OF CEO
        PURSUANT TO 18 U.S.C. ss. 1350, SECTION 302**31.2
      CERTIFICATION OF CFO
        PURSUANT TO 18 U.S.C. ss. 1350, SECTION 302**32.1.
      CERTIFICATION PURSUANT
        TO 18 U.S.C. ss.1350, SECTION 906**32.2
      CERTIFICATION PURSUANT
        TO 18 U.S.C. ss.1350, SECTION 906**


* Incorporated by reference to our Form SB2 Registration
Statement Amendment No. 4, File Number 333-122870, filed on November 11, 2005.
** Filed herewith.

(b) The Registrant filed Reports on Form 8-K in the quarter
ending July 31, 2006 and subsequently to the date hereof on the following dates:
September 11, 2006

---

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, on this
14th day of September, 2006.

|                         | **MAJOR CREATIONS INCORPORATED**
|------------------------ | --------------------------------
|                         |                                 
|                         |                                 
|Date: September 14, 2006 |                                 
|                         | By:   ***/s/ Guy Peckham***     
|                         | Guy Peckham                     
|                         | President/CEO                   
|                         |                                 
|Date: September 14, 2006 |                                 
|                         | By:   ***/s/ Hui Li***          
|                         | Hui
      Li                    
|                         | Treasurer
      and Secretary   

---