UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Amendment No. 2

to

FORM 10-K







|x | Annual Report Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934    
|- | ----------------------------------------------------------------------------------------
|  |                                                                                         
|  | For the
fiscal year ended December 31, 2015                                             
|  |                                                                                         
|o | Transition Report Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
|  |                                                                                         
|  | For the transition period from ______________to ______________                          





Commission
File Number 000-50760



SANCON RESOURCES RECOVERY, INC.

(Exact Name of Registrant as Specified in Its
Charter)



|State of Nevada, USA
        (State or Other Jurisdiction of Incorporation
        or Organization)                                                          | 58-2670972
        (I.R.S. Employer Identification No.)
|------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------
|                                                                                                                                                             |                                                        
|602 Nan Fung Tower, Suite 6/F
        88 Connaught Road Central
        Central District, Hong Kong
        (Address of Principal Executive
        Offices) | N/A
        (Zip Code)                                 



+ (852) 2868-0668

(Registrant’s Telephone Number, Including
Area Code)



Securities registered pursuant to Section 12(b)
of the Act:



|Title of Each Class | Name of Each Exchange on Which Registered
|------------------- | -----------------------------------------
|None                | N/A                                      



Securities registered pursuant to Section 12(g)
of the Act:



Common Stock, par value $0.001 per share



Indicate by check mark if the registrant is a well-known seasoned
issuer, as defined in Rule 405 of the Securities Act. o Yes x No



Indicate by check mark if the registrant is not required to
file reports pursuant to Section 13 or Section 15(d) of the Act.  o Yes x No



Indicate by check mark whether the registrant (1) has
filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement
for the past 90 days.  x Yes o No



Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Website, 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).  x Yes o No



Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of
the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form10-K.  o Yes x No



Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.



|Large accelerated filer   o | Accelerated filer  o        
|--------------------------- | ----------------------------
|Non-accelerated filer   o   | 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 o No



The aggregate market value of voting stock
held by non-affiliates of the registrant as of June 30, 2015 was approximately $377,300 (based upon a closing price of $0.02 per
share, as reported on Yahoo Finance). As of December 31, 2015, there were 32,219,996 shares of the registrant’s common stock
outstanding.



DOCUMENTS INCORPORATED BY REFERENCE



List hereunder the following documents if incorporated
by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual
report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or (c)
under the Securities Act of 1933.



None.











TABLE OF CONTENTS



|           |         |                                                                                                              | PAGE
|---------- | ------- | ------------------------------------------------------------------------------------------------------------ | ----
|PART I     |         |                                                                                                             
|           |         |                                                                                                              |     
|           | Item 1  | Business                                                                                                     | 3   
|           | Item 1A | Risk Factors                                                                                                 | 5   
|           | Item 1B | Unresolved Staff Comments                                                                                    | 6   
|           | Item 2  | Properties                                                                                                   | 6   
|           | Item 3  | Legal Proceedings                                                                                            | 6   
|           | Item 4  | Mine Safety Disclosures                                                                                      | 6   
|           |         |                                                                                                              |     
|PART II    |         |                                                                                                             
|           |         |                                                                                                              |     
|           | Item 5  | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 7   
|           | Item 6  | Selected Financial Data                                                                                      | 7   
|           | Item 7  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 7   
|           | Item 7A | Quantitative and Qualitative Disclosures About Market Risk                                                   | 11  
|           | Item 8  | Financial Statements and Supplementary Date                                                                  | 11  
|           | Item 9  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                         | 11  
|           | Item 9A | Controls and Procedures                                                                                      | 11  
|           | Item 9B | Other Information                                                                                            | 11  
|           |         |                                                                                                              |     
|PART III   |         |                                                                                                             
|           |         |                                                                                                              |     
|           | Item 10 | Directors, Executive Officers and Corporate Governance                                                       | 12  
|           | Item 11 | Executive Compensation                                                                                       | 13  
|           | Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters               | 14  
|           | Item 13 | Certain Relationships and Related Transactions, and Director Independence                                    | 15  
|           | Item 14 | Principal Accountant Fees and Services                                                                       | 15  
|           |         |                                                                                                              |     
|PART IV    |         |                                                                                                             
|           |         |                                                                                                              |     
|           | Item 15 | Exhibits, Financial Statement Schedules                                                                      | 16  
|           |         |                                                                                                              |     
|SIGNATURES | 17     
|           |         |                                                                                                              |     
|EXHIBITS   |         |                                                                                                             





2






Forward Looking Statements





CAUTIONARY NOTE ABOUT
FORWARD-LOOKING STATEMENTS



The information contained in this Report
includes some statements that are not purely historical and that are “forward-looking statements” within the meaning
of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and as such, may involve risks and uncertainties. These forward-looking
statements relate to, among other things, expectations of the business environment in which we operate, perceived opportunities
in the market and statements regarding our mission and vision. In addition, any statements that refer to projections, forecasts
or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.
You can generally identify forward-looking statements as statements containing the words “anticipates,” “believes,”
“continue,” “could,” “estimates,” “expects,” “intends,” “may,”
“might,” “plans,” “possible,” “potential,” “predicts,” “projects,”
“seeks,” “should,” “will,” “would” and similar expressions, or the negatives of
such terms, but the absence of these words does not mean that a statement is not forward-looking.



Forward-looking statements involve risks and uncertainties that could cause actual results or outcomes
to differ materially from those expressed in the forward-looking statements. The forward-looking statements contained herein are
based on various assumptions, many of which are based, in turn, upon further assumptions. Our expectations, beliefs and forward-looking
statements are expressed in good faith on the basis of management’s views and assumptions as of the time the statements
are made, but there can be no assurance that management’s expectations, beliefs or projections will result or be achieved
or accomplished. We disclaim any obligation to update forward-looking statements to reflect events or circumstances after the
date hereof.



PART I



ITEM 1. BUSINESS



Business Combination and Corporate Restructuring



Effective May 26, 2006, a business combination
occurred between Sancon Recycling Pty Ltd. (“SRPL”) and MKA Capital Inc. (hereinafter referred to as "MKAC").
The combination was effected by MKAC exchange its seventy-five percent (75%) equity stake in MK Aviation, S.A. (hereinafter referred
to as "MKA") for one hundred percent (100%) equity stake in SRPL held by Mr. Jack Chen, Mr. Yiu Lo Chung, and associated
parties (“the Shareholders”). Meanwhile, the Shareholders exchanged their ownership of seventy-five percent (75%) equity
stake in MK Aviation, S.A. with 14,897,215 shares of the Registrant's common stock from Mr. Kraselnick and associated parties.
Subsequently MKAC was renamed Sancon Resources Recovery, Inc. (herein below referred to as “the Company” or “Sancon”).



As a result of the merger, there was a change
in control of the public entity MKAC. In accordance with SFAS No. 141, SRPL was the acquiring entity. While the transaction is
accounted for using the purchase method of accounting, in substance the Agreement is a recapitalization of the Company's capital
structure. For accounting purposes, SRPL accounted for the transaction as a reverse acquisition and SRPL is the surviving entity.
SRPL did not recognize goodwill or any intangible assets in connection with the transaction.



Effective with the Agreement, the Shareholders
owned 14,897,215 shares of MKAC voting common stock or 74.28% of the Registrant's 20,030,370 issued and outstanding voting common
stock at the time.



All references to common stock, share and per
share amounts had been retroactively restated to reflect the exchange of 100 shares of SRPL common stock for 14,897,215 shares
of the MKAC's common stock outstanding immediately prior to the merger as if the exchange had taken place as of the beginning of
the earliest period presented.



The accompanying financial statements present
the historical financial condition, results of operations and cash flows of Sancon as of December 31, 2015.



Business of the Issuer



Overview of the Company and its Operations



During the period from June 2006 to October
2011, Sancon Resources Recovery, Inc. had been an industrial waste recycling company with operations based in Australia and China.
Sancon's main operations and services included industrial waste management consulting, collection and reprocess of recyclable materials
such as glass, plastic, cardboard, and paper sourced from suppliers such as Aperio Group and Astron. The recycled materials will
then enter into manufacture cycles as raw materials. Sancon exported about 4,000 tons of recycled industrial waste material annually
to its processing partners and manufacturers in China. The waste management service was another important operation for the Company.
Sancon provided full waste management solutions for manufacturing companies; aimed to recover recyclable materials instead of dumping
them into land-fills. The major customers for Sancon were Chinese manufacturers and recycled material traders such as Pernod Ricard,
Hang Mai and Yue Wu, which are located mainly in the Chinese provinces of Shanghai, Guangdong, Zhejiang and Fujian.





3






The business operation of the Company
was carried out through its subsidiaries listed below. In 2011, the Company divested all its subsidiaries. The status of the subsidiaries
as of the year end 2011 is given below.



|Registered Name
        (business is conducted under the registered names)                                                                                                                                         | Domicile              | Owner     | % held
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------- | --------- | ------
|Sancon Recycling Pty Ltd. (“Sancon AU” hereinafter)
        Status: The company was under administration and wound up by the
        directors.                                                                    | Australia             | Sancon    | 100   
|Sancon Resources Recovery (Shanghai) Co., Ltd. ("Sancon SH"
        hereinafter)
        Status: The shareholding was sold to Mr. Jack Chen on October 31,
        2011.                                           | Shanghai              | Sancon    | 70    
|Crossover Solutions Inc. ("CS" hereinafter)
        Status: The shareholding was sold to Mr. Jack Chen on October 31,
        2011.                                                                                | British Virgin Island | Sancon    | 100   
|Sheng Rong Environment Protection Technology Co., Ltd. (“Shanghai
        Sheng Rong” hereinafter)
        Status: The company was owned by Sancon SH which was sold to Mr.
        Jack Chen on October 31, 2011. | Shanghai              | Sancon SH | 52    



On September 30, 2011, Sancon entered into
a Stock Sale and Purchase Agreement to transfer its 70% controlling interest in Sancon Resources Recovery (Shanghai) Co., Ltd.
and 100% interest of its associated company Crossover Solutions, Inc to Mr. Jack Chen, the Company’s Chief Executive Officer
and Director.



Under the terms of the Agreement, the purchase
price was to be settled upon closing of the transaction by returning to the Company a total of 10,100,000 common shares, representing
44% of the total issued and outstanding shares of Sancon. As of October 31, 2011, a total of 10,100,000 shares of Sancon had been
received and subsequently cancelled by the Company.



Our Strategy



The waste recoverysector is a highly
fragmented business with numerous privately run companies mainly focusing on the collection and reprocessing of waste material
of high resale value such as paper, cardboard, glass, metal, plastics , etc. We originally believed that this presented opportunities
for a professionally managed company such as Sancon. However, after operating in this business for several years, we discovered
that competition is more severe than we had expected. This led us to divest all our operating subsidiaries in 2011.



We do not currently engage in any business
activity. Our principal business objective will be to achieve long-term growth potential through a combination with a business
rather than immediate, short-term earnings.



We may consider a business which has recently
commenced operations, is a developing company in need of additional funds for expansion into new products or markets, is seeking
to develop a new product or service, or is an established business which may be experiencing financial or operating difficulties
and is in need of additional capital. In the alternative, a business combination may involve the acquisition of, or merger with,
a company which does not need substantial additional capital, but which desires to establish a public trading market for its shares,
while avoiding, among other things, the time delays, significant expense, and loss of voting control which may occur in a public
offering.



Any target business that is selected may be
a financially unstable company or an entity in its early stages of development or growth, including entities without established
records of sales or earnings. In that event, we will be subject to numerous risks inherent in the business and operations of financially
unstable and early stage or potential emerging growth companies.



Our management anticipates that it will likely
be able to effect only one business combination, due primarily to our limited financing, and the dilution of interest for current
stockholders, which is likely to occur as a result of our management's plan to offer a controlling interest to a target business
in order to achieve tax free reorganization.



Because of general economic conditions, rapid
technological advances being made in some industries and shortages of available capital, our management believes that there are
numerous firms seeking the perceived benefits of becoming a publicly traded corporation. Potentially available business combinations
may occur in many different industries and at various stages of development, all of which will make the task of comparative investigation
and analysis of such business opportunities extremely difficult and complex.





4






Evaluation of Business Combinations



Our management intends to concentrate on prospective
business combinations that may be brought to its attention through their own efforts, through persons having pre-existing business
or personal relationships with members of the Company's management and interested persons referred to the Company by persons having
such pre-existing relationships with members of its management or other third parties.



While we have not established definitive criteria for acquisition
candidates but intend to focus on Asian-based entities. In analyzing prospective business combinations, our management will also
consider such matters as the following:



| | · | Available technical, financial, and managerial resources,
| | - | ---------------------------------------------------------

| | · | Working capital and other financial requirements,
| | - | -------------------------------------------------

| | · | Prospects for the future,
| | - | -------------------------

| | · | Nature of present and expected competition,
| | - | -------------------------------------------

| | · | The potential for further research, development, or exploration,
| | - | ----------------------------------------------------------------

| | · | The potential for growth or expansion,
| | - | --------------------------------------

| | · | The potential for profit,
| | - | -------------------------



As a part of our investigation, our officers
and/or directors will meet personally with management and key personnel, visit and inspect material facilities, check references
of management and key personnel, and take other reasonable investigative measures, to the extent of our limited financial resources
and management expertise.



Intellectual Property



None.



Employees



As of December 31, 2015, the Company had one employee, Angel Lai.



Factors That May Affect Future Results



The Company's ability to execute its business
strategy and to sustain its operations depends upon its ability to maintain or procure capital. There can be no absolute assurance
the necessary amount of capital will continue to be available to the Company on favorable terms, or at all. The Company's inability
to obtain sufficient capital would limit the Company's ability to: (i) acquire new business and (ii) fund its working capital needs.
The Company's access to capital may have a material adverse effect on the Company's business, financial condition and/or results
of operations.



There can be no absolute assurance the Company
will be able to effectively manage its existing or the possible future expansion of its operations, or the Company's systems, procedures
or controls will be adequate to support future Company operations. Consequently, the Company's business, financial condition and/or
results of operations could be possibly and adversely affected.



The Company does not foresee changes in tax
laws for the jurisdictions in which the Company operates. There can be no absolute assurance that changes will not occur, and therefore
no absolute assurance such changes will not materially and adversely affect the Company's business, financial condition and future
results of operations.



As a public company, Sancon is subject to certain
regulatory requirements including, but not limited to, compliance with Section 404 of the Sarbanes-Oxley Act of 2002 ("SOX404").
Such compliance results in significant additional costs to the Company by increased audit and consulting fees, and the time required
by management to address the regulations.



ITEM 1A. RISK FACTORS



This information is not required of smaller reporting companies.





5






ITEM 1B. UNRESOLVED STAFF
COMMENTS



Not applicable.



ITEM 2. PROPERTIES



The Company does not own or have any leased property as of December
31, 2015. The corporate office is provided to the Company by Fintel (USA) Limited. Mr. Tang, the CEO and President of the Company,
is a principal owner of Fintel (USA).



ITEM 3. LEGAL PROCEEDINGS



None.



ITEM 4. MINE SAFETY DISCLOSURES



None.





6






PART II



ITEM 5. MARKET FOR COMMON EQUITY,
RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES



Market Information



The Company’s stock is assigned the symbol SRRY and is quoted
and traded on the OTCQB.



The range of low to high closing prices on
the OTCQB is shown in the table below (rounded to the nearest cent). This information is taken from MSN Money and CSI. Readers
should note OTCQB quotations are a reflection of inter-dealer prices, without retail mark-up, mark-down, or commissions, and may
not represent actual transactions.



|        | Fiscal 2015          | Fiscal 2014        
|------- | -------------------- | -------------------
|Quarter | $ High Closing Price | $ Low Closing Price
|First   | 0.01                 | 0.004              
|Second  | 0.02                 | 0.010              
|Third   | 0.02                 | 0.008              
|Fourth  | 0.01                 | 0.002              



Holders of the Company’s Stock



The Company has issued common stock only. On December 31, 2015,
the total number of holders of record as according to our transfer agent was approximately 331.



Dividends



We did not pay any cash dividends on our common stock for fiscal
year ended on December 31, 2015.



Unregistered Sales of Equity Securities



None.

ITEM 6. SELECTED FINANCIAL
DATA

This information is not required of smaller reporting companies.



ITEM 7. MANAGEMENT’S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



The following discussion contains forward-looking
statements. Forward looking statements are identified by words and phrases such as “anticipate”, “intend”,
“expect” and words and phrases of similar import. We caution investors that forward-looking statements are only predictions
based on our current expectations about future events and are not guarantees of future performance. Our actual results, performance
or achievements could differ materially from those expressed or implied by the forward-looking statements due to risks, uncertainties
and assumptions that are difficult to predict. We encourage you to read carefully the other information provided in this Report
and in our other filings with the SEC before deciding to invest in our stock or to maintain or change your investment. We undertake
no obligation to revise or update any forward-looking statement for any reason, except as required by law.



You should read this MD&A in conjunction with the Consolidated
Financial Statements and Related Notes in Item 8.





7








Overview



Sancon Resources Recovery, Inc. was an industrial
waste recycling company with operations based in Australia and China. Sancon exported more than 4,000 tons of recycled industrial
waste material annually to its processing partners and manufacturers in China. Sancon's main operations and services included industrial
waste management consulting, collection and reprocess of recyclable materials such as glass, plastic, cardboard, and paper before
its re-entry into manufacture cycles as raw materials. The use of recycled material is both environmentally friendly and is a key
part of the competitive manufacturing process to lower costs. Chinese manufacturers are increasingly turning to recycled materials
to lower costs. The major customers for Sancon were Chinese manufacturers and recycled material traders such as Pernod Ricard,
Hing Yang Hong, which are located mainly in the Chinese provinces of Shanghai, Guangdong, Zhejiang and Fujian.



The business operation of the Company was
carried out through its subsidiaries. In 2011, the Company divested all its subsidiaries. The Company currently has no active
business activities.



Plan of Operation



The Company is actively looking for acquisition and merger opportunities
in growth industries in Asia.



Critical Accounting Policies and Estimates



The preparation of our consolidated financial
statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments
that affect our reported assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities.
We base our estimates and judgments on historical experience and on various other assumptions we believe to be reasonable under
the circumstances. Future events, however, may differ markedly from our current expectations and assumptions. While there are a
number of significant accounting policies affecting our consolidated financial statements; we believe the following critical accounting
policies involve the most complex, difficult and subjective estimates and judgments: allowance for doubtful accounts; income taxes;
stock-based compensation; asset impairment.



Revenue Recognition



In accordance with generally accepted accounting
principles ("GAAP") in the United States, revenue is recognized only when the price is fixed or determinable, persuasive
evidence of an arrangement exists, the service is performed, and collection of the resulting receivable is reasonably assured.
Noted below are brief descriptions of the product or service revenues that the Company recognizes in the financial statements contained
herein.



The Company was organized into two businesses:
material recycling and waste management service. Their revenue recognition is as follows:



(1) Material Recycling refers to the activities
of collecting and processing of waste materials, then selling them to customers in China. The plant is located in Australia. The
revenue is recognized when delivery of the material is occurred and invoice issued.



(2) Waste Management Service refers the activities
of providing waste management service with operations located in Shanghai China. The revenue is recognized when service is completed
and invoice is issued.



Allowance for doubtful accounts



We maintain an allowance for doubtful accounts
to reduce amounts to their estimated realizable value. A considerable amount of judgment is required when we assess the realization
of accounts receivables, including assessing the probability of collection and the current credit-worthiness of each customer.
If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments,
an additional provision for doubtful accounts could be required. We initially record a provision for doubtful accounts based on
our historical experience, and then adjust this provision at the end of each reporting period based on a detailed assessment of
our accounts receivable and allowance for doubtful accounts. In estimating the provision for doubtful accounts, we consider: (i)
the aging of the accounts receivable; (ii) trends within and ratios involving the age of the accounts receivable; (iii) the customer
mix in each of the aging categories and the nature of the receivable; (iv) our historical provision for doubtful accounts; (v)
the credit worthiness of the customer; and (vi) the economic conditions of the customer’s industry as well as general economic
conditions, among other factors.





8






Income taxes



We account for income taxes in accordance with
SFAS No. 109(ASC 740), Accounting for Income Taxes. SFAS 109 prescribes the use of the liability method. Under this method, deferred
tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial
statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using
the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be
recovered or settled. We then assess the likelihood that our deferred tax assets will be recovered from future taxable income and
to the extent we believe that recovery is not likely, we establish a valuation allowance. To the extent we establish a valuation
allowance, or increase or decrease this allowance in a period, we increase or decrease our income tax provision in our statement
of operations. If any of our estimates of our prior period taxable income or loss prove to be incorrect, material differences could
impact the amount and timing of income tax benefits or payments for any period. In addition, as a result of the significant change
in the Company’s ownership, the Company's future use of its existing net operating losses may be limited.



The Company operated in several countries.
As a result, we were subject to numerous domestic and foreign tax jurisdictions and tax agreements and treaties among the various
taxing authorities. Our operations in these jurisdictions were taxed on various bases: income before taxes, deemed profits and
withholding taxes based on revenue. The calculation of our tax liabilities involved consideration of uncertainties in the application
and interpretation of complex tax regulations in a multitude of jurisdictions across our global operations.



We recognize potential liabilities and record
tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and
the extent to which, additional taxes will be due. The tax liabilities are reflected net of realized tax loss carry forwards.
We adjust these reserves upon specific events; however, due to the complexity of some of these uncertainties, the ultimate resolution
may result in a payment that is different from our current estimate of the tax liabilities. If our estimate of tax liabilities
proves to be less than the ultimate assessment, an additional charge to expense would result. If payment of these amounts ultimately
proves to be less than the recorded amounts, the reversal of the liabilities would result in tax benefits being recognized in
the period when the contingency has been resolved and the liabilities are no longer necessary.



Changes in tax laws, regulations, agreements
and treaties, foreign currency exchange restrictions or our level of operations or profitability in each taxing jurisdiction could
have an impact upon the amount of income taxes that we provide during any given year.



Stock-Based Compensation



Effective January 1, 2006, the beginning of
Sancon's first fiscal quarter of 2006, the Company adopted the fair value recognition provisions of SFAS 123R (ASC 718), using
the modified-prospective transition method. Under this transition method, stock-based compensation expense was recognized in the
consolidated financial statements for granted stock options, since the related purchase discounts exceeded the amount allowed under
SFAS 123R(ASC 718) for non-compensatory treatment. Compensation expense recognized included: the estimated expense for stock options
granted on and subsequent to January 1, 2006, based on the grant date fair value estimated in accordance with the provisions of
SFAS 123R (ASC 718); and the estimated expense for the portion vesting in the period for options granted prior to, but not vested
as of January 1, 2006, based on the grant date fair value estimated in accordance with the original provisions of SFAS 123(ASC
718). Results for prior periods have not been restated, as provided for under the modified-prospective method.



On December 5, 2012, the Company entered into
a settlement agreement with Dragon Wings for the settlement of the claim by Dragon Wings. In consideration of Sancon's agreement
to make the payments in the form of common shares and share options listed in the settlement agreement. The Company would give
the option to Dragon Wings to purchase 6,000,000 common shares; the option may be exercised by Dragon Wings in whole or in part,
at any time within 5 years from the date of this settlement agreement with the exercise price at US$0.01 per share, with dilution
protection and subject to share split adjustment.



For other items paid for by common stock, the
value of the transaction is determined by the value of the goods or services received, measured at the time of the transaction.
The corresponding stock value, used to determine the number of share to be issued, is the value of the average price for the 20
to 30 days prior to the transaction date.



Asset Impairment



We periodically evaluate the carrying value
of other long-lived assets, including, but not limited to, property and equipment and intangible assets, when events and circumstances
warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flows
from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying
value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted
at a rate commensurate with the risk involved. Significant estimates are utilized to calculate expected future cash flows utilized
in impairment analyses. We also utilize judgment to determine other factors within fair value analyses, including the applicable
discount rate.





9






Results of Operations



Two Years Ended December 31, 2015 and
2014



Revenue



The Company had no revenues in 2015 and 2014.



General and administrative expenses



General and administrative expenses increased
to $74,147 for the year 2015, from $73,665 for the year 2014, an increase of $482. Of these amounts, $60,000 related to the value
of cash compensation to our directors and secretary in each of 2015 and 2014, respectively. In addition, a substantial portion
of our expenses for the year, respectively, ended December 31, 2015 and December 31, 2014 related to accounting service fees, audit
fees, professional service fees and transfer agent fees.



Income Tax



No income tax was provided for the year 2015
and 2014.



Net loss



The net loss for the year 2015 was $74,147,
compared to the net loss of $73,665 in 2014, an increase of $482.



Liquidity and Capital Resources



As shown in the accompanying financial statements,
the Company had an accumulated loss of $1,134,873 as of December 31, 2015 compared to the accumulated loss of $1,060,726 for the
year ended December 31, 2014. There was a working capital deficit of $220,918 on December 31, 2015 and it was $146,771 as of December
31, 2014. It increased $74,147.



Operating Activities



No net cash was used in operating activities
for the year 2015 and 2014, due to the fact that we had no operations in 2015 and 2014.



Investing Activities



No net cash was used in investing activities
for the year 2015 and 2014. The Company did not purchase any property or equipment in 2015 and 2014.



Financing Activities



No net cash was used in financing activities
for the year 2015 and 2014.



The Company financed its growth by utilizing
cash reserves and loans from directors. Loans from directors were unsecured, and deferred payment term and without interest bearing.
The Company’s primary use of funds was for investigating potential merger/acquisition candidates and for working capital.



Inflation



In the opinion of management, inflation has
not had a material effect on the Company's financial condition or results of its operations.



Trends and uncertainties



Management believes there are no known trends,
events, or uncertainties that could, or reasonably be expected to, adversely affect the Company’s liquidity in the short
and long terms, or its net sales, revenues, or income from continuing operations.



Off-Balance Sheet Arrangements



There are no off-balance sheet arrangements
that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial
condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources, that are material
to investors.





10






ITEM 7A. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK



This information is not required of smaller
reporting companies.



ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY
DATA



Financial statements are attached hereto following
Part IV, Item 15 beginning on Page F-1 of this Annual Report.



ITEM 9. CHANGES IN AND DISAGREEMENTS
WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE



We engaged Dominic K.F. Chan & Co. [now
known as DCAW (CPA) Limited] as our independent accountant on August 20, 2012. The decision to engage Dominic K.F. Chan & Co.
was recommended and approved by the Company’s Board of Directors.



ITEM 9A. CONTROLS AND PROCEDURES



Under the supervision and with the participation
of our management, including our principal executive officer and the principal financial officer, we conducted an evaluation of
the effectiveness of the design and operation of its disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities Exchange Act of 1934, as of the end of the period covered by this report (the "Evaluation Date").
Based on this evaluation, our principal executive officer and principal financial officer concluded as of the Evaluation Date,
that our disclosure controls and procedures were not effective.



Managements' Annual Report on Internal Control
over Financial Reporting



Management is responsible for establishing
and maintaining adequate internal control over financial reporting of the Company. Internal control over financial reporting is
a process designed by, or under the supervision of, our chief executive and chief financial officers and effected by our board
of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.



Our management assessed the effectiveness
of the Company’s internal control over financial reporting as of December 2015. The framework used by management in making
that assessment was the 2013 version of the criteria set forth in the document entitled “internal Control- Integrated Framework”
issued by the Committee of Sponsoring Organizations of the Treadway Commission.



Based on our evaluation described above, management
has concluded that our internal control over financial reporting was not effective as of December 31, 2015. We have limited resources
and we rely heavily on direct management oversight of transactions, along with the use of legal and accounting professionals. As
we grow we will hire skilled professionals that will enable us to implement adequate segregation of duties within the internal
control framework.



Our management will also implement additional
review procedures designed to ensure that the disclosure provided by the Company meets the current requirements of the applicable
filing made under the Exchange Act and methodology to review the statements.



This annual report does not include an attestation
report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s
report was not subject to attestation requirements by our registered public accounting firm pursuant to temporary rules of the
Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.



Changes in Internal Control Over Financial
Reporting



There was no change in our internal control
over financial reporting that occurred during the fiscal year ended December 31, 2015 that has materially affected, or is reasonably
likely to materially affect, our internal control over financial reporting.



ITEM 9B. OTHER INFORMATION



None.





11






PART III



ITEM 10. DIRECTORS, EXECUTIVE
OFFICERS AND CORPORATE GOVERNANCE



Identification and Backgrounds of Directors
and Officers



|Name         | Age | Principal Position       | Appointment/Resignation date
|------------ | --- | ------------------------ | ----------------------------
|Stephen Tang | 63  | CEO, President, Director | May 21, 2012                
|Francis Bok  | 49  | CFO, Director            | May 21, 2012                



Mr. Stephen Tang, Chief Executive
Officer, President & Director



Mr. Tang is the Chairman of Mega Pacific Capital,
Inc., a finance and investment consulting firm since 2005. Mr. Tang was the director and Chairman of Financial Telecom Limited
(USA), Inc. (later changed its name to MKA Capital, Inc. then Sancon Resources Recovery, Inc.).  Mr. Tang is currently the
Vice President of the Hong Kong Information Technology Federation and a director of Professional Commons, a think tank in Hong
Kong.  Mr. Tang is a graduate of Hong Kong Baptist University and received his MBA from the Asian Institute of Management
in Manila, Philippines, in 1976.



Mr. Francis Bok, Chief Financial
Officer & Director



Mr. Bok serves as the chief executive officer
of Beyond IVR Limited, an information technology company based in Hong Kong. During 2004, Mr. Bok served as the assistant manager
for Kactus Limited, a Hong Kong based mobile content and applications provider. From 2002 until 2004, Mr. Bok was a Manager at
Continuous Technologies International Limited in Hong Kong. Mr. Bok received his Bachelor in Mathematics in 1993 from the University
of Waterloo, Canada, a Master of Science in 1997 from the University of Hong Kong, and an MBA in 2000 from the City University
of Hong Kong.



Family relationships



There are no
family relationships among any of our directors or executive officers.



Section 16(a) Beneficial Ownership Reporting
Compliance



Under Section 16(a) Beneficial Ownership Reporting
Compliance, each person who was at any time during the fiscal year, a director, officer, beneficial owner of more than ten percent
of any class of equity securities of the Company registered pursuant to section 12 (“reporting person”) is required
to file Forms 3, 4, and 5 on a timely basis, during the most recent fiscal year or prior fiscal years. Due to lack of knowledge,
the relevant beneficial owners did not file on time. They will file Form 3 and Form 5 shortly.



Code of Ethics



The Company has Standards of Ethical Conduct
Policy (“Code of Ethics”) that applies to all employees and directors, including the Chairman, Chief Executive Officer,
and Chief Financial Officer. The Code of Ethics is included in this report as Exhibit 14.1.



Committees of our Board of Directors



Audit Committee



We do not have a formal standing audit committee.
Rather, audit committee functions are performed by our entire Board of Directors. These functions include: (1) selection and oversight
of our independent accountant; (2) establishing procedures for the receipt, retention and treatment of complaints regarding accounting,
internal controls and auditing matters; (3) establishing procedures for the confidential, anonymous submission by our employees
of concerns regarding accounting and auditing matters; (4) engaging outside advisors; and (5) funding for the outside auditory
and outside advisors engagement by the audit committee.



Audit Committee Financial Expert



None of our directors or officers has the qualifications
or experience to be considered a financial expert. We believe that the cost related to retaining a financial expert at this time
is prohibitive. However, we do intend to appoint an audit committee financial expert in the foreseeable future.



Director Independence



None of the members of our Board of Directors
may be deemed to be independent under the standards for independence contained in the NASDAQ Marketplace Rules, Rule 4350(d) and
Rule 4200(a)(15).





12






Compensation Committee



Compensation committee functions are performed
by our entire Board of Directors. Our Board of Directors does not have a charter or other formal policies regarding compensation.



Nominating and Corporate Governance
Committee



Nominating and Corporate Governance committee
functions are performed by our entire Board of Directors. Our Board of Directors does not have a charter or other formal policies
regarding director nominations or corporate governance.



Stockholder Communications



Any stockholder may communicate directly to
our Board of Directors by sending a letter to our company’s address of record.



| | · | encourage their commitment;
| | - | ---------------------------



| | · | motivate superior performance;
| | - | ------------------------------



| | · | facilitate attainment of ownership interests
in our company;
| | - | ------------------------------------------------------------



| | · | align personal interests with those of
our stockholders; and
| | - | ------------------------------------------------------------



| | · | enable them to share in the long-term growth and
success of our company.
| | - | ------------------------------------------------------------------------



ITEM 11. EXECUTIVE
COMPENSATION



Officers’ compensation



On May 21, 2012, Stephen Tang and Francis Bok
were appointed CEO and CFO, respectively. Messrs. Tang and Bok will each receive a salary of $24,000 per year to be paid in shares
of the Company’s common stock. Messrs. Tang and Bok have not been compensated as of December 31, 2015.



Directors’ compensation



The Directors have not been compensated as
of December 31, 2015.



Employment Agreement



The Company does not have employment agreements
with any of its officers or directors.



Stock option plan



We do not have a stock option plan and we have
not issued any warrants, options or other rights to acquire our securities.



Employee Pension, Profit Sharing or other
Retirement Plans



We do not have a defined benefit, pension plan,
profit sharing or other retirement plan, although we may adopt one or more of such plans in the future.



Securities authorized for issuance under
Equity Compensation Plans



None.





13






ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS



Security ownership of certain beneficial owners



The following table sets forth as of January
31, 2016, certain information with respect to the Company’s equity securities owned of record or beneficially by (i) each
Officer and Director of the Company; (ii) each person who owns beneficially more than five percent (5%) of each class of the Company’s
outstanding equity securities; and (iii) all Directors and Executive Officers as a group.



|Title of Class |  | Name and Address of Beneficial Owner (2)                                                                   |  | Amount and Nature ofBeneficial Ownership |              |  | Percent ofClass (1) | 
|-------------- |  | ---------------------------------------------------------------------------------------------------------- |  | ---------------------------------------- | ------------ |  | ------------------- | 
|Common Stock   |  | Stephen Tang, CEO, Pres. & Dir.                                                                            |  |                                          | 5,342,000    |  |                     | 
|Common Stock   |  | Frances Bok, CFO & Dir                                                                                     |  |                                          | 5,342,000    |  |                     | 
|Common Stock   |  | Angel Lai                                                                                                  |  |                                          | 2,671,000    |  |                     | 
|Common Stock   |  | Jack Chen
        G/F No 628 Suide Rd
        Shanghai 200333 China                                        |  |                                          | 2,000,000    |  |                     | 
|Common Stock   |  | Tang Wai Leong
        Flat A, 24/F, Blk 2 New Jade Garden
        Chai Wan, Hong Kong                     |  |                                          | 2,170,496    |  |                     | 
|               |  |                                                                                                            |  |                                          |              |  |                     | 
|Common Stock   |  | Dragon Wings
        Suite D, 19/F., Ritz Plaza, 122 Austin
        Road,
        Kowloon, Hong Kong       |  |                                          | 6,000,000(3) |  |                     | 
|Common Stock   |  | Lewis and Roca LLP
        19/F, 40 North Central Avenue,
        Phoenix,
        Arizona 85004-4429, USA |  |                                          | 3,000,000    |  |                     | 
|Common Stock   |  | All Directors and Officers as a Group (2 persons)                                                          |  |                                          | 10,684,000   |  |                     | 



|(1) | Unless otherwise indicated, based on 38,219,996 shares of common stock issued and outstanding. Shares of common stock subject to options or warrants currently exercisable or exercisable within 60 days, are deemed outstanding for purposes of computing the percentage of the person holding such options or warrants, but are not deemed outstanding for the purposes of computing the percentage of any other person.                                                                                                 
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(2) | Unless indicated otherwise, the address of the shareholder is c/o Sancon Resources Recovery, Inc., 602 Nan Fung Tower, Suite 6/F, 88 Connaught Road central, Central District, Hong Kong.                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(3) | On January 11, 2013, as part of a settlement agreement, the
Company issued 6,000,000 shares of its common stock to Dragon Wings.  In addition and in accordance with the settlement
agreement, the Company issued options to Dragon Wings to purchase 6,000,000 shares of its common stock for $0.01 per share. The
options may be exercised at any time within five years from the settlement date. The beneficial amount of 12,000,000 shares includes
the unexercised options of 6,000,000 shares owned by Dragon Wings.



We are not aware of any person who owns of
record, or is known to own beneficially, five percent or more of the outstanding securities of any class of the issuer, other than
as set forth above. There are no classes of stock other than common stock issued or outstanding.



There are no current arrangements which will
result in a change in control.





14








ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,
AND DIRECTOR INDEPENDENCE



Our directors have advanced funds on an interest-free
basis, with no maturity date, from appointment for working. Amount advanced totaled $50,777 in 2015, Mr. Tang and Mr. Bok advanced
amount for director fee, professional service fees and transfer agent fees.



As of the date of this Annual Report, we have
no standing committees and our entire board of directors serves as our audit and compensation committees. We have determined that
none of our directors are independent based on an analysis of the standards for independence set forth in Section 121A of the American
Stock Exchange Company Guide. If we undertake to qualify our common stock for quotation in the over-the-counter market, we may
need to ensure we meet any eligibility requirements with respect to independent directors.



ITEM 14. PRINCIPAL ACCOUNTANT FEES AND
SERVICES



The Company’s Board of Directors pre-approved
all audit and non-audit services provided to us and during the periods listed below. The Company’s Board approves discrete
projects on a case-by-case basis that may have a material effect on our operations and also considers whether proposed services
are compatible with the independence of the public accountants.



The following table presents fees for professional
services rendered by our auditors for the periods ended December 31, 2015 and 2014:



|Services Performed |  | 2015 |       |  | 2014 |  
|------------------ |  | ---- | ----- |  | ---- | -
|Audit Fees         |  | $    | 2,436 |  |      | $
|Audit-Related Fees |  |      | –     |  |      |  
|Tax Fees           |  |      | –     |  |      |  
|All Other Fees     |  |      | –     |  |      |  
|Total Fees         |  | $    | 2,436 |  |      | $





























15






PART IV



ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES



|(a) | The following Exhibits are filed as part of this report.
|--- | --------------------------------------------------------



|Exhibit Number |  | Description of Document                                                                                                                                        
|-------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|               |  |                                                                                                                                                                
|3.1            |  | Articles of Incorporation of Financial Telecom Limited (USA), Inc.                                                                                             
|3.2            |  | Amended and Restated Bylaws of Financial Telecom Limited (USA), Inc.                                                                                           
|10.1           |  | Agreement between Hong Kong Futures Exchange Limited and Financial Telecom Limited                                                                             
|10.2           |  | Market Service Datafeed Agreement between Stock Exchange Information Services Limited and Financial Telecom Limited                                            
|10.3           |  | Option agreement dated December 14, 2004 between Fintel Group Limited and shareholders of Shanghai Longterms Technology Limited.                               
|10.4           |  | Option agreement dated January 5, 2005 between Fintel Group Limited and shareholders of Beijing JCL Technology Commerce Limited.                               
|10.5           |  | Option agreement dated January 20, 2005 between Fintel Group Limited and shareholders of Shanghai Qianhou Computer Technology Limited.                         
|10.6           |  | Independent contractor agreement between Fintel Group Limited and Mr. Sam Chong Keen.                                                                          
|10.7           |  | Independent contractor agreement between Fintel Group Limited and Info Media Company.                                                                          
|10.8           |  | Independent contractor agreement between Fintel Group Limited and China Digital Distribution Limited.                                                          
|10.9           |  | Sales and purchase agreement dated March 25, 2005 between Fintel Group Limited and shareholders of Enjoy Media Holdings Limited                                
|10.10          |  | Sales and purchase agreement dated April 25, 2005 between Fintel Group Limited and shareholders of Beijing Genial Technology Co. Ltd.                          
|10.11          |  | Option agreement dated March 7, 2005 between Fintel Group Limited and shareholders of Beijing Sinoskyline technology Trading Co. Ltd.                          
|10.12          |  | Settlement agreement dated December 5, 2012 between Sancon Resources Recovery, Inc. and Dragon Wings Communications Limited.                                   
|10.13          |  | Notice of Dismissal dated January 11, 2013 issued by the United States Bankruptcy Court, District of Nevada.                                                   
|10.14          |  | Service Agreement, dated May 31, 2013, between Sancon Resources Recovery, Inc. and Fintel (USA) Ltd.                                                           
|14.1           |  | Code of Ethics                                                                                                                                                 
|21.1           |  | Subsidiaries of the registrant                                                                                                                                 
|31.1*          |  | Certification of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d 14(a), promulgated under the Securities and Exchange Act of 1934, as Amended.
|31.2*          |  | Certification of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d 14(a), promulgated under the Securities and Exchange Act of 1934, as Amended.
|32.1*          |  | Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.         
|32.2*          |  | Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.         



|101 |  | The following materials from the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, formatted in XBRL (eXtensible Business Reporting Language); (i) Balance Sheets at December 31, 2015 and 2014, (ii) Statement of Operations for the years ended December 31, 2015 and 2014, (iii) Statement of Cash Flows for the years ended December 31, 2015 and 2014, and (iv) Notes to Financial Statements.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

*Filed
herewith.

|(1)  | Incorporated herein by reference to the registrant’s initial Registration Statement on Form 10-SB (File No. 000-50760) filed on May 13, 2004.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------
|(2)  | Incorporated herein by reference to the registrant’s Annual Report on Form 10-KSB (File No. 000-50760) filed April 15, 2005.                 
|(3)  | Incorporated herein by reference to the registrant’s Quarterly Report on Form 10-QSB (File No. 000-50760) filed May 6, 2005.                 
|(4)  | Incorporated herein by reference to the registrant’s Quarterly Report on Form 10-QSB (File No. 000-50760) filed August 6, 2005.              
|(5)  | Incorporated herein by reference to the registrant’s Current Report on Form 8K/A (File No. 000-50760) filed November 29, 2005.               
|(6)  | Incorporated herein by reference to the registrant’s Current Report on Form 8K/A (File No. 000-50760) filed January 25, 2006.                
|(7)  | Incorporated herein by reference to the registrant’s Proxy Statement (File No. 000-50760) filed December 6, 2005.                            
|(8)  | Incorporated herein by reference to the registrant’s Annual Report on Form 10-KSB (File No. 000-50760) filed April 26, 2006.                 
|(9)  | Incorporated by reference to the Exhibits to our Form 10-Q filed on May 17, 2016                                                             
|(10) | Incorporated by reference to the Exhibits to our Form 10-Q filed on May 23, 2016                                                             





16






INDEX TO FINANCIAL STATEMENTS





|                                                                                  | Pages    
|--------------------------------------------------------------------------------- | ---------
|                                                                                  |          
|Report of Independent Registered Public Accounting Firm                           | F-2      
|                                                                                  |          
|Balance Sheets as of December 31, 2015 and 2014                                   | F-3      
|                                                                                  |          
|Statements of Income for the years ended December 31, 2015 and December 31, 2014  | F-4      
|                                                                                  |          
|Statements of Stockholders’ Equity for the years ended December 31, 2015 and 2014 | F-5      
|                                                                                  |          
|Statements of Cash Flows for the years ended December 31, 2015 and 2014           | F-6      
|                                                                                  |          
|Notes to Financial Statements for the years ended December 31, 2015 and 2014      | F-7 – F-9



































F-1






SANCON RESOURCES RECOVERY, INC.



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM





Report of Independent Registered Public
Accounting Firm



To the Directors and Stockholders of

Sancon Resources Recovery, Inc.



We have audited the accompanying balance sheet
of Sancon Resources Recovery, Inc. (the Company”) as of December 31, 2015 and 2014 and the related statement of income, stockholders’
equity and cash flows for the year ended December 31, 2015 and 2014. These financial statements are the responsibility of
the Company’s management.  Our responsibility is to express an opinion on these financial statements based on our
audit.



We conducted our audit in accordance with the
standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  Our
audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control
over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.



In our opinion, the financial statements referred
to above present fairly, in all material respects, the respective financial position of Sancon Resources Recovery, Inc as of December
31, 2015 and 2014, and the results of their operations and their cash flows for the year ended December 31, 2015 and 2014, in conformity
with the accounting principles generally accepted in the United States of America.



The accompanying financial statements have
been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the
Company is currently dormant, and has the accumulated deficits as of December 31, 2015 and 2014 and no source of revenue, which
raises substantial doubt about its ability to continue as a going concern. Management's plans concerning these matters are also
described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.







/s/ Dominic. K.F. Chan & Co.

Dominic. K.F. Chan & Co.,

Certified Public Accountants

Hong Kong, China

April 29, 2016





F-2






SANCON RESOURCES RECOVERY, INC.

BALANCE SHEETS

AS OF DECEMBER 31, 2015 AND 2014

(United States dollars, except number of shares, per share data and unless otherwise stated)



|                                                                                                                                                               |  | As at             |           
|-------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ----------
|                                                                                                                                                               |  | December 31, 2015 |           
|Assets                                                                                                                                                         |  |                   |           
|                                                                                                                                                               |  |                   |           
|Current assets                                                                                                                                                 |  |                   |           
|Cash and cash equivalents                                                                                                                                      |  | $                 | –         
|Other current assets                                                                                                                                           |  |                   | –         
|Advance and prepayment                                                                                                                                         |  |                   | –         
|Total current assets and total assets                                                                                                                          |  | $                 | –         
|                                                                                                                                                               |  |                   |           
|Liabilities and Stockholders' Equity                                                                                                                           |  |                   |           
|                                                                                                                                                               |  |                   |           
|Liabilities                                                                                                                                                    |  |                   |           
|Current liabilities                                                                                                                                            |  |                   |           
|Due to related parties                                                                                                                                         |  | $                 | 163,674   
|Accrued expenses and other payables                                                                                                                            |  |                   | 57,244    
|Total current liability and total liability                                                                                                                    |  | $                 | 220,918   
|                                                                                                                                                               |  |                   |           
|                                                                                                                                                               |  |                   |           
|Stockholders' deficit                                                                                                                                          |  |                   |           
|Share capital authorized: 500,000,000 common shares, par value $0.001 per
    share Issued and outstanding: 32,219,996 shares as of December 31, 2015 and 2014 |  | $                 | 32,220    
|Additional paid-in capital                                                                                                                                     |  |                   | 792,720   
|Share option reserves                                                                                                                                          |  |                   | 89,015    
|Accumulated losses                                                                                                                                             |  |                   | (1,134,873
|Total stockholders' deficit                                                                                                                                    |  |                   | (220,918  
|Total liabilities & stockholders' equity                                                                                                                       |  | $                 | –         



The accompanying notes are an integral part of these audited financial statements.





F-3






SANCON
RESOURCES RECOVERY, INC.

STATEMENTS OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2015 AND 2014

(United
States dollars, except number of shares, per share data and unless otherwise stated)



|                                            |  | For the years ended December 31, |           
|------------------------------------------- |  | -------------------------------- | ----------
|                                            |  | 2015                             |           
|Revenue                                     |  | $                                | –         
|                                            |  |                                  |           
|Operating Expenses                          |  |                                  |           
|General and administrative expenses         |  |                                  | 74,147    
|Total operating expenses                    |  |                                  | 74,147    
|                                            |  |                                  |           
|Loss before income taxes                    |  |                                  | (74,147   
|                                            |  |                                  |           
|Income taxes                                |  |                                  | –         
|                                            |  |                                  |           
|Net loss                                    |  | $                                | (74,147   
|                                            |  |                                  |           
|                                            |  |                                  |           
|Loss per share:                             |  |                                  |           
|Basic loss per share                        |  | $                                | (0.002    
|Basic weighted average shares outstanding   |  |                                  | 32,219,996
|Diluted loss per share                      |  | $                                | (0.002    
|Diluted weighted average shares outstanding |  |                                  | 33,145,175



The accompanying notes are an integral part of these audited financial statements.





F-4






SANCON RESOURCES RECOVERY, INC.

STATEMENTS OF STOCKHOLDERS' EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014

(United
States dollars, except number of shares, per share data and unless otherwise stated)



|                                 |  | Common Shares |            |  | Common Stock |   |        | Additional Paid in Capital |  |   | Share Option Reserves |  |  | Accumulated losses |        |  | Total |  
|-------------------------------- |  | ------------- | ---------- |  | ------------ | - | ------ | -------------------------- |  | - | --------------------- |  |  | ------------------ | ------ |  | ----- | -
|Balance as of December 31, 2013  |  |               | 32,219,996 |  |              | $ | 32,220 |                            |  | $ | 792,720               |  |  | $                  | 89,015 |  |       | $
|                                 |  |               |            |  |              |   |        |                            |  |   |                       |  |  |                    |        |  |       |  
|Net loss for the year            |  |               | –          |  |              |   | –      |                            |  |   | –                     |  |  |                    | –      |  |       |  
|                                 |  |               |            |  |              |   |        |                            |  |   |                       |  |  |                    |        |  |       |  
|Balance as of December 31, 2014  |  |               | 32,219,996 |  |              |   | 32,220 |                            |  |   | 792,720               |  |  |                    | 89,015 |  |       |  
|                                 |  |               |            |  |              |   |        |                            |  |   |                       |  |  |                    |        |  |       |  
|Net loss for the year            |  |               | –          |  |              |   | –      |                            |  |   | –                     |  |  |                    | –      |  |       |  
|                                 |  |               |            |  |              |   |        |                            |  |   |                       |  |  |                    |        |  |       |  
|Balance as of December  31, 2015 |  |               | 32,219,996 |  |              | $ | 32,220 |                            |  | $ | 792,720               |  |  | $                  | 89,015 |  |       | $



The accompanying notes are an integral part
of these audited financial statements.





F-5






SANCON RESOURCES RECOVERY, INC.

STATEMENTS OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2015 AND 2014

(United
States dollars, except number of shares, per share data and unless otherwise stated)



|                                                                                        |  | For the years ended December 31, |        
|--------------------------------------------------------------------------------------- |  | -------------------------------- | -------
|                                                                                        |  | 2015                             |        
|Cash Flows from Operating Activities                                                    |  |                                  |        
|Net loss                                                                                |  | $                                | (74,147
|Adjustments to reconcile net income to net cash flows provided by operating activities: |  |                                  |        
|                                                                                        |  |                                  |        
|Share based payment                                                                     |  |                                  | –      
|                                                                                        |  |                                  |        
|Changes in current assets and liabilities, net of business acquisition:                 |  |                                  |        
|Decrease in other current assets                                                        |  |                                  | –      
|Increase in other current liabilities                                                   |  |                                  | 74,147 
|Net cash used in Operating Activities                                                   |  |                                  | –      
|                                                                                        |  |                                  |        
|Cash Flows from Investing Activities                                                    |  |                                  |        
|Purchase of property and equipment                                                      |  |                                  | –      
|Net cash flows used in Investing Activities                                             |  |                                  | –      
|                                                                                        |  |                                  |        
|Cash Flows from Financing Activities                                                    |  |                                  |        
|Issuance of shares                                                                      |  |                                  | –      
|Net cash flows used in Financing Activities                                             |  |                                  | –      
|                                                                                        |  |                                  |        
|Effect of exchange rate changes on cash                                                 |  |                                  | –      
|                                                                                        |  |                                  |        
|Net increase in cash & cash equivalents                                                 |  |                                  | –      
|                                                                                        |  |                                  |        
|Cash & cash equivalent at start of year                                                 |  |                                  | –      
|Cash & cash equivalent at end of year                                                   |  | $                                | –      







The accompanying notes are an integral part of these audited financial statements.





F-6






SANCON RESOURCES RECOVERY, INC.

NOTES TO FINANCIAL STATEMENTS

(United States dollars, except number of
shares, per share data and unless otherwise stated)



NOTE 1 ORGANIZATION AND NATURE OF OPERATIONS



Sancon Resources Recovery, Inc. ("Sancon",
or "the Company", or "we", or "us") is registered in Nevada. Sancon Resources Recovery, Inc. is an
environmental service and waste management company that operates recycling facilities in China and Australia. Sancon specializes
in the collection and recovery of industrial and commercial solid wastes such as plastic, paper, cardboard, and glass.



On April 1, 2011, the Company approved an infusion
of equity into Sancon Resources Recovery (Shanghai) Co., Ltd. (“Sancon SH”) for a total of $2,000,000, of which Sancon
invested $1,400,000 to Sancon SH and the minority shareholder invested $600,000.



On September 15, 2011, one of the subsidiaries,
Sancon Recycling Pty. Limited, applied for liquidation.



On October 31, 2011, the Company disposed of
its subsidiaries Crossover Solution Inc. (“CS”) and Sancon SH at a consideration of $404,000.



After disposal of all its subsidiaries in the
4th quarter of 2011, the company currently does not have any business operation.



NOTE 2 SUMMARIES OF SIGNIFICANT ACCOUNTING
POLICIES



USE OF ESTIMATES

These financial statements are prepared in
accordance with accounting principles accepted generally in the United States.  These principles require management to
use its best judgment in determining estimates and assumptions that: affect the reported amounts of assets and liabilities; disclosure
of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses
during the reporting period. Management makes its best estimate of the ultimate outcome for such items based on historical trends
and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with
the relevant accounting rules, typically in the period when new information becomes available to management. Actual results in
the future could differ from the estimates made in the prior and current periods.



CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand
and cash in bank accounts mainly used for the business operations with maturities of less than 90 days.



REVENUE RECOGNITION

The Company’s revenue recognition policies
are in compliance with Staff accounting bulletin (SAB) 104(ASC 605). Sales revenue is recognized when the significant risks and
rewards of the ownership of goods have been transferred to the buyers.  No revenue is recognized if there are significant
uncertainties regarding the recovery of the consideration due, the possible return of goods, or when the amount of revenue and
the costs incurred or to be incurred in respect of the transaction cannot be measured reliably.



INCOME TAXES

The Company recognizes deferred tax liabilities
and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns.
Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and
tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.



The Company operates in several countries.  As
a result, we are subject to numerous domestic and foreign tax jurisdictions and tax agreements and treaties among the various taxing
authorities. Our operations in these jurisdictions are taxed on various bases: income before taxes, deemed profits and withholding
taxes based on revenue. The calculation of our tax liabilities involves consideration of uncertainties in the application and interpretation
of complex tax regulations in a multitude of jurisdictions across our global operations.



We regularly assess our position with regard
to individual tax exposures and record liabilities for our uncertain tax positions and related interest and penalties. These accruals
reflect management's view of the likely outcomes of current and future audits. The future resolution of these uncertain tax positions
may be different from the amounts currently accrued and therefore could impact future tax period expense.



The Company has U.S. federal net operating
loss carry forwards that if unused could expire in varying amounts in the years through 2020. However, as a result of the acquisition,
the amount of net operating loss carry forward available to be utilized in reduction of future taxable income was reduced pursuant
to the change in control provisions of Section 382 of the Internal Revenue Code.



Changes in tax laws, regulations, agreements and treaties, foreign
currency exchange restrictions or our level of operations or profitability in each taxing jurisdiction could have an impact upon
the amount of income taxes that we provide during any given year.



STOCK BASED COMPENSATION

As of December 31, 2015 and 2014, the Company
did not issue any stock options.





F-7






SANCON RESOURCES RECOVERY, INC.

NOTES TO FINANCIAL STATEMENTS

(United States dollars, except number of
shares, per share data and unless otherwise stated)



NOTE 2 SUMMARIES OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)



BASIC AND DILUTED EARNINGS PER SHARE

Basic earnings per share ("EPS")
is calculated using net earnings (the numerator) divided by the weighted-average number of shares outstanding (the denominator)
during the reporting period.  Diluted EPS includes the effect from potentially dilutive securities.



STATEMENT OF CASH FLOWS

Cash flows from the Company's operations are
calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of
cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet.



RECENT PRONOUNCEMENTS



The Company has considered all new accounting
pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations,
financial condition, or cash flows, based on current information.



NOTE 3 GOING CONCERN



The accompanying financial statements have
been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation
of the Company as a going concern. However, after the disposal of its operating subsidiaries on October 31, 2011 and became dormant
afterwards, the Company has the stockholders’ deficits of $220,918 and $146,771 for the year ended December 31, 2015 and
2014 respectively. These factors raise substantial doubt about the ability of the Company to continue as a going concern. In this
regard, management is proposing to raise any necessary additional funds not provided by operations through loans, additional sales
of its common stock or through a possible business combination. There is no assurance that the Company will be successful in raising
this additional capital or in achieving profitable operations. The financial statements do not include any adjustments that might
result from the outcome of these uncertainties.



NOTE 4 RELATED PARTY TRANSACTIONS



Net amounts due from / (to) related parties are as follows:



|                                                     |  | As at                                                                                            |         
|---------------------------------------------------- |  | ------------------------------------------------------------------------------------------------ | --------
|                                                     |  | December 31,
                                                                               2015 |         
|Due from Related companies in advance and prepayment |  | $                                                                                                | –       
|                                                     |  |                                                                                                  |         
|Due to Directors                                     |  |                                                                                                  | (141,931
|Due to Shareholder                                   |  |                                                                                                  | (1,230  
|Due to Related companies                             |  |                                                                                                  | (20,513 
|                                                     |  |                                                                                                  | (163,674



NOTE 5 STOCKHOLDER’S EQUITY



Stock Options

The following summary presents the options granted, exercised, expired
and outstanding at December 31, 2015 and 2014:



|                                        |  | Options
        Outstanding |          
|--------------------------------------- |  | --------------------------- | ---------
|Outstanding, December 31, 2013          |  |                             | 6,000,000
|Granted                                 |  |                             | –        
|Forfeited/Cancelled                     |  |                             | –        
|Exercised                               |  |                             | –        
|Outstanding, December 31, 2015 and 2014 |  |                             | 6,000,000



On December 5, 2012, the Company entered into
a settlement agreement with Dragon Wings for the settlement of the claim by Dragon Wings. In consideration of Sancon's agreement
to make the payments in the form of common shares and share options listed in the settlement agreement. The Company would give
the option to Dragon Wings to purchase 6,000,000 common shares, the option may be exercised by Dragon Wings in whole or in part,
at any time within 5 years from the date of this settlement agreement with the exercise price at US$0.01 per share, with dilution
protection and subject to share split adjustment.





F-8




SANCON RESOURCES RECOVERY, INC.

NOTES TO FINANCIAL STATEMENTS

(United States dollars, except number of
shares, per share data and unless otherwise stated)



NOTE 6 INCOME TAXES



The Company is registered in the State of
Nevada. Before the disposal of its operating subsidiaries on October 31, 2011, the Company had operations in primarily four tax
jurisdictions the Australia, China, British Virgin Island and the United States. For certain operations in the United States of
America, the Company has incurred net accumulated operating losses for income tax purposes. The Company believes that it is more
likely than not that these net accumulated operating losses will not be utilized in the future. Therefore, the Company has provided
full valuation allowance for the deferred tax assets arising from the losses from its US public shell as of December 31, 2015
and December 31, 2014.



The components of income before income taxes
and non-controlling interest are as follows:



|                                                        |  | 2015 |         |   | 2014 |  
|------------------------------------------------------- |  | ---- | ------- | - | ---- | -
|Loss subject to United States                           |  | $    | (74,147 | ) |      | $
|Net loss before income tax and non-controlling interest |  | $    | (74,147 | ) |      | $



United States of America

As of December 31, 2015, the Company in the
United States of America had approximately $7,999,618 in net operating loss carry forwards available to offset future taxable income.
Federal net operating losses can generally be carried forward 20 years. The Tax Reform Act of 1986 limits the use of net operating
loss and tax credit carry forwards in certain situations when changes occur in the stock ownership of a company. In the event the
Company has a change in ownership, utilization of carry forwards could be restricted. The deferred tax assets for the United States
entity at December 31, 2015 consists mainly of net operating loss carry forwards and were fully reserved as the management believes
it is more likely than not that these assets will not be realized in the future.



The following table sets forth the significant
components of the net deferred tax assets for operation in the United States of America as of December 31, 2015 and 2014.



|                                  |  | 2015 |            |   | 2014 |  
|--------------------------------- |  | ---- | ---------- | - | ---- | -
|Net Operating Loss Carry forwards |  | $    | 7,999,618  |   |      | $
|                                  |  |      |            |   |      |  
|Total Deferred Tax Assets         |  |      | 2,719,870  |   |      |  
|Less: Valuation Allowance         |  |      | (2,719,870 | ) |      |  
|Net Deferred Tax Assets           |  | $    | –          |   |      | $



As of December 31, 2015, the Company does
not have any unrecognized tax benefits and no corresponding interest or penalties. The Company's policy is to record interest and
penalties as income tax expense.





F-9






SIGNATURES



Pursuant to the requirements
of the 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 the August 5, 2016.



SANCON RESOURCES RECOVERY, INC.







By:/s/ Stephen Tang______________

Stephen Tang

President and Director

(Chief Executive Officer)



In accordance with the Securities Exchange Act
of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the
dates indicated.



|Name                                                            | Title                                         | Date          
|--------------------------------------------------------------- | --------------------------------------------- | --------------
|                                                                |                                               |               
|_/s/ Stephen
        Tang_________
        Stephen
        Tang | President; Director
(Chief Executive Officer) | August 5, 2016
|                                                                |                                               |               
|_/s/ Francis
        Bok__________
        Francis
        Bok  | Director
        (Chief Financial Officer)    | August 5, 2016































17






INDEX TO EXHIBITS



|Exhibit No. |  | Description                                                                                                                           
|----------- |  | --------------------------------------------------------------------------------------------------------------------------------------
|3.1         |  | Articles of Incorporation of Financial Telecom Limited (USA), Inc.                                                                    
|3.2         |  | Amended and Restated Bylaws of Financial Telecom Limited (USA), Inc.                                                                  
|10.1        |  | Agreement between Hong Kong Futures Exchange Limited and Financial Telecom Limited                                                    
|10.2        |  | Market Service Datafeed Agreement between Stock Exchange Information Services Limited and Financial Telecom Limited                   
|10.3        |  | Option agreement dated December 14, 2004 between Fintel Group Limited and shareholders of Shanghai Longterms Technology Limited.      
|10.4        |  | Option agreement dated January 5, 2005 between Fintel Group Limited and shareholders of Beijing JCL Technology Commerce Limited.      
|10.5        |  | Option agreement dated January 20, 2005 between Fintel Group Limited and shareholders of Shanghai Qianhou Computer Technology Limited.
|10.6        |  | Independent contractor agreement between Fintel Group Limited and Mr. Sam Chong Keen.                                                 
|10.7        |  | Independent contractor agreement between Fintel Group Limited and Info Media Company.                                                 
|10.8        |  | Independent contractor agreement between Fintel Group Limited and China Digital Distribution Limited.                                 
|10.9        |  | Sales and purchase agreement dated March 25, 2005 between Fintel Group Limited and shareholders of Enjoy Media Holdings Limited       
|10.10       |  | Sales and purchase agreement dated April 25, 2005 between Fintel Group Limited and shareholders of Beijing Genial Technology Co. Ltd. 
|10.11       |  | Option agreement dated March 7, 2005 between Fintel Group Limited and shareholders of Beijing Sinoskyline technology Trading Co. Ltd. 
|10.12       |  | Settlement agreement dated December 5, 2012 between Sancon Resources Recovery, Inc. and Dragon Wings Communications Limited.          
|10.13       |  | Notice of Dismissal dated January 11, 2013 issued by the United States Bankruptcy Court, District of Nevada.                          
|10.14       |  | Service Agreement, dated May 31, 2013, between Sancon Resources Recovery, Inc. and Fintel (USA) Ltd.                                  
|14.1        |  | Code of Ethics                                                                                                                        
|21.1        |  | Subsidiaries of the registrant                                                                                                        
|31.1*       |  | Certification of President                                                                                                            
|31.2*       |  | Certification of Director                                                                                                             
|32.1*       |  | Statement required by 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002                    
|32.2*       |  | Statement required by 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002                    



|101 ** |  | The following materials from the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, formatted in XBRL (eXtensible Business Reporting Language); (i) Balance Sheets at December 31, 2015 and 2014, (ii) Statement of Operations for the years ended December 31, 2015 and 2014, (iii) Statement of Cash Flows for the years ended December 31, 2015 and 2014, and (iv) Notes to Financial Statements.
|------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

*Filed
herewith

**
Previously filed

|(1)  | Incorporated herein by reference to the registrant’s initial Registration Statement on Form 10-SB (File No. 000-50760) filed on May 13, 2004.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------
|(2)  | Incorporated herein by reference to the registrant’s Annual Report on Form 10-KSB (File No. 000-50760) filed April 15, 2005.                 
|(3)  | Incorporated herein by reference to the registrant’s Quarterly Report on Form 10-QSB (File No. 000-50760) filed May 6, 2005.                 
|(4)  | Incorporated herein by reference to the registrant’s Quarterly Report on Form 10-QSB (File No. 000-50760) filed August 6, 2005.              
|(5)  | Incorporated herein by reference to the registrant’s Current Report on Form 8K/A (File No. 000-50760) filed November 29, 2005.               
|(6)  | Incorporated herein by reference to the registrant’s Current Report on Form 8K/A (File No. 000-50760) filed January 25, 2006.                
|(7)  | Incorporated herein by reference to the registrant’s Proxy Statement (File No. 000-50760) filed December 6, 2005.                            
|(8)  | Incorporated herein by reference to the registrant’s Annual Report on Form 10-KSB (File No. 000-50760) filed April 26, 2006.                 
|(9)  | Incorporated by reference to the Exhibits to our Form 10-Q filed on May 17, 2016                                                             
|(10) | Incorporated by reference to the Exhibits to our Form 10-Q filed on May 23, 2016                                                             





18