<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-K


(Mark One)

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

For the year period ended    DECEMBER 31, 2009
                             -----------------

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

For the transition period from
                                -----------------

                        Commission file number 000-50760
                                               ---------

                         SANCON RESOURCES RECOVERY, INC.
              (Exact name of small business issuer in its charter)

               Nevada                                       58-2670972
  (State or other jurisdiction of                         (IRS Employer
   incorporation or organization)                       Identification No.)


                      No 2 Yinqing Lu, Songjiang District,
                             Shanghai, China, 201615
                    (Address of principal executive offices)

                                (+86) 21 67756099
                           (Issuer's telephone number)

Securities registered under Section 12(b) of the Exchange Act:  none

Securities registered under Section 12(g) of the Exchange Act:

<TABLE>
<S>    <C>
Title of each class: Common Shares         Name of Exchange on which registered: OTCBB
</TABLE>

Check whether the issuer is not required to file reports pursuant to Section 13
or 15(d) of the Exchange Act. [ ]

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

Check if no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will 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
amendments to this Form 10-K. [X]

Check whether the Registrant has submitted electronically and posted on it
corporate Web site, if any, every Interactive data file required to be submitted
and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the registrant
was required to submit and post such files). Yes [ ] No [ ]

Check whether the registrant is a large accelerated filer, an accelerated filer,
a non-accelerated filer, or a smaller reporting company as defined by Rule 12b-2
of the Exchange Act:

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

Check whether the registrant is a shell company (as defined in Rule 12b-2 of the
exchange Act). Yes [ ] No [X]

The aggregate market value of voting stock held by non-affiliates of the
registrant as of March 26, 2010 was approximately $10.1 million (based upon a
closing sale price of $0.44 per share, as reported on the OTCBB).

The issuer's revenues for the fiscal year ended December 31, 2009, were $11
million.

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

Common Stock: par value of $0.001; 22,964,996 shares issued and outstanding on
December 31, 2009.

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

<PAGE>

                         Sancon Resources Recovery, Inc.

                                    FORM 10-K

                                FISCAL YEAR 2009


TABLE OF CONTENTS


PART I
Item 1.    Description of Business                                             3
Item 2.    Description of Property                                             6
Item 3.    Legal Proceedings                                                   6
Item 4.    Submission of Matters to a Vote of Security Holders                 6


PART II
Item 5.    Market for Common Equity, Related Stockholder Matters, and
             Small Business Issues/purchases of Equity Securities              7
Item 6.    Management's Discussion and Analysis, or Plan of Operation          8
Item 7.    Financial Statements and Supplementary Data                        13
Item 8.    Changes in and Disagreements with Accountants on Accounting
             and Financial Disclosure                                         13
Item 8A.   Controls and Procedures                                            14
Item 8B.   Other Information                                                  14


PART III
Item 9.    Directors, Executives Officers, Promoters and Control Persons.
             Compliance with Section 16(a) of the Exchange Act                15
Item 10.   Executive Compensation                                             16
Item 11.   Security Ownership of Certain Beneficial Owners and Management
             and Related Stockholder Matters                                  17
Item 12.   Certain Relationships and Related Transactions                     18
Item 13.   Principal Accountant Fees and Services                             19
Item 14.   Exhibits, Financial Statement Schedules                            20


SIGNATURES                                                                    21

                                       2
<PAGE>



                                  -- PART I --

ITEM 1. DESCRIPTION OF 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, Mr.
Guy Waters, 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.

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 will own 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 have 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,
2009.

BUSINESS OF THE ISSUER

OVERVIEW OF THE COMPANY AND ITS OPERATIONS

Sancon Resources Recovery, Inc. is an industrial waste recycling company with
operations based in Australia and China. Sancon's main operations and services
include 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. The use of recycled material is
both environmentally friendly and is a key part of today's competitive
manufacturing process to lower costs. As China gains global manufacturing
dominance and current economic crisis, Chinese manufacturers are increasingly
turning to recycled materials to lower its costs, resulting tremendous demand
for recycled materials import. Sancon currently exports more than 4,000 tons of
recycled industrial waste material annually to its processing partners and
manufacturers in China. The waste management service is another important
operation for the Company. Sancon provides full waste management solutions for
manufacturing companies; aim to recover recyclable materials instead of dumping
them into land-fills. The major customers for Sancon are 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.

In order to meet the environmental initiatives set for 2010 Shanghai World Expo
and promote the concept of "waste separation and conserve resources," Shanghai
Municipal Afforestation Bureau launched the "More Green for Shanghai" campaign.
Sancon is the only commercial enterprise that has been invited to participate in
this campaign. Sancon will place specially made bins for the collection of waste
paper from college campuses and office buildings. New copy paper will be given
free of charge to the campaign-participating outlets to encourage and reward
recycling. The waste paper collection is expected to reach over a thousand tons
in 2010.

                                       3
<PAGE>


Sancon has been also awarded a license from the local Chinese Government to
collect and process electronic waste such as computers, printers and copiers, as
well as electric white goods.

The Sancon group comprises the following companies:

<TABLE>
<S>     <C>
Registered Name                                                               Domicile         Owner    % held   Status
(business is conducted under the registered names)
Sancon Recycling Pty Ltd. ("Sancon AU" hereinafter)                           Australia        Sancon      100   Active
Sancon Resources Recovery (Shanghai) Co., Ltd. ("Sancon SH" hereinafter)      Shanghai         Sancon       70   Active
Crossover Solutions Inc. ("CS" hereinafter)                                   British Virgin   Sancon      100   Active
                                                                              Island
</TABLE>

OUR STRATEGY

Chinese waste management market is estimated at $35 billion by 2010 and is
dominated by state owned companies largely backward managed, inefficient, lack
of technology and with outdated collections. All of which presents enormous
opportunities for a dynamic foreign company such as Sancon. Fortune 500
companies like Suez and Veolia is mainly focused on incineration, water and
hazardous waste treatment market, where the government has allowed foreign
entry, leaving the niche recycling market to specialized recycling company such
as Sancon.

Our near-term growth strategy is to first expand our recycling and waste
management operations in China by setting up larger network of facilities and
logistics operations around Australia and China. Secondly, strengthen our
relationships with our existing major suppliers to offer large selection of
plastic and glass raw materials. And we aim to increase our processing capacity
for recycled plastic and glass waste materials at our existing facilities in
Australia and China. Thirdly, develop new markets and customers, like electronic
waste materials industry, waste battery disposal and new energy. The well
established trust on quality control of the recycled materials with Sancon's
customers in Australia and China, and our aggressive expansion plans laid the
groundwork firmly for long-term growth.

THE TREND IN CHINESE MARKET

According to China National Resources Recycling Association, recyclable solid
waste import to China has experienced a dramatic increase in the last 2 decades.
During early 1990's, China imported 1-2 million tons of recyclable wastes per
year. By 1999, China imported 10 million tons of recyclable solid wastes per
year. In 2006, China imported 37 million tons of recyclable wastes. China's
total domestic recycled volume is estimated to have reached over 1 billion tons
annually.

The Chinese Government is emphasizing environmental policies & projects for all
sectors and entities. On August 2008, China's top legislature passed a law to
promote circular economy and will come into force on January 1, 2009. The aim of
the law is to boost sustainable development through energy saving and reduction
of pollutant discharges. At present China's environmental industry is highly
fragmented and at its infancy stage.

Promulgated on 25 February 2009 and effective as of January 1, 2011, the Chinese
regulations on the administration of the recovery and disposal of waste
electrical and electronic products ("WEEE Regulations") are aiming at
establishing a system for the disposal and recovery of waste electrical and
electronic products, facilitating comprehensive utilization of resources and
circular economy development, protecting the environment and safeguarding human
health.

In addition to establishing a licensing system for enterprises, the WEEE
Regulations set forth labeling obligations on manufacturers and importers,
according to which information such as relevant toxic or hazardous substances
and methods for recovery/disposal has to be indicated on the products or their
introduction manuals.

A dedicated governmental fund will be established to be used as allowance for
activities of recovery and disposal of electrical and electronic products.
Manufacturers of electrical and electronic products, consignees and their agents
are required to pay fees which will go directly into the fund.


                                       4
<PAGE>

SANCON'S VISIONS AND GOALS

The long-term objective of Sancon is to seek and develop further alternative
resources recovery solutions, which will help to protect our environment and
maximize sustainable usage for industrial waste materials. At Sancon we believe
reducing the environmental impact of manufactured products is through both
professional waste management services offered to manufacturers and commercial
entities to increase recyclability of waste materials, and efficient
redeployment of waste materials.

SERVICES OFFERED TO OUR CLIENTS

Sancon strives to take an all-inclusive approach to provide eco-friendly
solutions leading to the sustainable use of waste materials. Our services
include collection from manufacturing and commercial sites; re-process waste
materials to increase recyclability, end-of-life disassembly, redeployment of
recyclable materials, and destruction of sensitive materials and products

OUR DISTRIBUTION METHOD AND CUSTOMERS

As our ending customers are diversified with geographic areas, we distribute our
products into certain wholesalers who have wide connection with different
customers in certain geographic area. Due to the distribution method, we depend
on these distributors which are located in China.

OUR SUPPLIERS

We collect recyclable raw materials from commercial and industrial suppliers
whenever and wherever possible. As a result, our suppliers are quite
diversified.

COMPETITION

The markets for the Company's products and services are competitive, and the
Company faces competition from a number of sources. Many of the Company's
competitors have substantially greater resources than the Company. Those
resources may include greater name recognition; larger product lines;
complementary lines of business; and greater financial, marketing, information
systems, and other resources. The Company can give no assurance competitive
pressures will not materially and adversely affect the Company's business,
financial condition, and results of operations.

But the management has identified several key points which will give Sancon the
competitive edge in the market place:

1)   Sancon offers large selection of plastic and glass raw materials to our
     customers.
2)   Sancon has 6 strategically positioned recycling plants and 40 depots in
     China and it will enable Sancon to meet the demand for nationwide
     environmental services.
3)   Working closely with more processing partners in China will add value to
     our products.
4)   Industry know-how and management team's ability to ensure all operating and
     environmental standards are achieved. Our team's experience in logistic
     management and waste management operations are key factors enabling the
     delivery of a high standard of service to Sancon's clients.

INTELLECTUAL PROPERTY

None.

EMPLOYEES

As of December 31, 2009, the Company employed 15 people in Australia
subsidiaries. Our joint venture in China employed 20 people full time, and all
other personnel of the China joint venture are employed as sub contractors. To
make our work more efficient, we outsourced a few other functions, such as
logistics and administration, to certain professional firms to enable our
resource being focused on sales and processing functions.

FACTORS THAT MAY AFFECT FUTURE RESULTS

The business in which the Company is engaged is capital supportive. Accordingly,
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 or to renew its credit facilities would limit the
Company's ability to: (i) add new equipment to its portfolio, (ii) fund its
working capital needs, and (iii) finance possible future acquisitions. The
Company's access to capital may have a material adverse effect on the Company's
business, financial condition and/or results of operations.

                                       5
<PAGE>

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 the
Company's 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 and its subsidiaries operate. 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 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. The SEC has recently delayed the
implementation date of SOX404 for non-accelerated filers until June 15, 2010.
However, should the Company successfully fulfill its plans to procure financing
and expand its operations; the Company may come under the accelerated filer
definition, and be required to comply with SOX404 before June 15, 2010. In any
case, such costs will likely affect adversely the Company's business, financial
condition and results of operations.


ITEM 2.  DESCRIPTION OF PROPERTY

The Company leases office space in Australia and China. The lease for Australia
and China expire in 2011 and 2018 respectively. The Australian Office is located
in 7-9 Graham Road Clayton South 3169 VIC Australia, Rental fee, without GST and
outgoing is $150,143 per annum. The size of the whole building is 2,414 square
meters. In China, the major office is located in No 2 Yinqing Lu, Songjiang
District, Shanghai. The annual rental fee is $148,900 and the size of the whole
building is 5,056 aquare meters. The Company also leases many warehouses in more
than 40 cities in China. The total annual rental fee for these warehouses is
$213,862 for the year 2009. We may need to lease more facilities for our future
operation purpose.


ITEM 3.  LEGAL PROCEEDINGS

The company involved in the following litigation:

Dragon Wings Communications Limited, a Hong Kong corporation and Wong Yee Tat,
an individual are the first and second plaintiff. They filed a complaint on July
25, 2008 in the District Court of the Hong Kong special Administrative Region,
Civil Action No. 3251, against the first defendant, Fintel Group Limited for
breach of contract. The Company is the second defendant because plaintiff
claimed Fintel Group Limited is a wholly owned subsidiary of the Company. Under
the writ, the plaintiff claimed that pursuant to a written stock purchase
agreement, the first defendant shall purchase the first plaintiff's common stock
by common shares of Financial Telecom Limited (USA) inc. (replaced by shares of
MKA Capital Inc. from June 2006) or pay to the plaintiff cash of $94,172 in lieu
of the shares. Pluses the interest and cost of litigation, the total amount
claimed by plaintiff were $104,966. The court adjudged that the first defendant
do pay the plaintiffs damages on September 08, 2008 and also adjudged that the
second defendant do pay the plaintiffs damages on December 10, 2008. The Company
denied all allegations in the complaint because Fintel Group Limited is no
longer our subsidiary since November 27, 2006. The Company is consulting lawyers
and seeking for the best legal solution.


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

No matters were submitted to a vote of security holders during fiscal year 2009.


                                       6
<PAGE>

                                  -- PART II --

ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Market information

The Company's stock is assigned the symbol SRRY.OB and is quoted and traded on
the OTCBB.

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

<TABLE>
<S>     <C>

                              FISCAL 2009                                       FISCAL 2008
QUARTER      $ HIGH CLOSING PRICE      $ LOW CLOSING PRICE     $ HIGH CLOSING PRICE      $ LOW CLOSING PRICE
-------      --------------------      -------------------     --------------------      -------------------

First                0.20                     0.17                     0.23                     0.11
Second               0.39                     0.13                     0.63                     0.12
Third                0.44                     0.38                     0.61                     0.38
Fourth               0.53                     0.29                     0.45                     0.16
</TABLE>


HOLDERS OF THE COMPANY'S STOCK

The Company has issued common stock only. On December 31, 2009, the total number
of holders of record as according to our transfer agent was approximately 634.

DIVIDENDS

We did not pay any cash dividends on our common stock for fiscal year ended on
December 31, 2009.

UNREGISTERED SALES OF EQUITY SECURITIES

<TABLE>
<S>     <C>
      date              type          amount                   person                 consideration            transaction
      ----              ----          ------                   ------                 -------------            -----------

    1-Feb-06        common share        11,283              R. Gorthuis                     $14,668            Compensation
    1-Feb-06        common share         4,003                 R. Yan                        $4,166            Compensation
    1-Feb-06        common share         3,753    TWC Corporation Services Limited           $3,642        Settlement of debts
    1-Feb-06        common share         9,685              Bok, Wai Kee                     $9,398        Settlement of debts
    1-Feb-06        common share         1,028            Ng, Yu Yan Betty                     $998        Settlement of debts
   10-Feb-06        common share        54,539            Mr. Lu Zhao Hui                   $68,174    Increase investment holdings
   10-Feb-06        common share        61,846              Mr. Song Lin                    $77,308    Increase investment holdings
   25-May-06        common share       -54,539            Mr. Lu Zhao Hui                 ($68,174)    Decrease investment holdings
   25-May-06        common share       -61,846              Mr. Song Lin                  ($77,308)    Decrease investment holdings
   25-May-06        common share        13,110              R. Gorthuis                     $12,668            Compensation
   25-May-06        common share         8,623                 R. Yan                        $8,332            Compensation
   27-Nov-06        common share       250,000           Bear Creek Capital                 $27,500           Consulting fee
   23-Jan-07        common share       250,000           Bear Creek Capital                 $88,500           Consulting fee
   10-Mar-08        common share     1,148,572          Fintel Group Limited               $402,000    Increase investment holdings
   10-Mar-08        common share       300,000           Lyons Capital LLC                 $156,000           Consulting fee
   21-Apr-08        common share      -148,572          Fintel Group Limited              ($52,000)    Decrease investment holdings
    1-Aug-08        common share        50,000              Mr. Xia Chen                     $7,500           Consulting fee
    1-Aug-08        common share       250,000             Mr. Jack Chen                    $37,500            Compensation
    1-Aug-08        common share       300,000              CEOcast, Inc                    $72,000           Consulting fee
   30-Sep-08        common share       300,000              CEOcast, Inc                    $72,000           Consulting fee
   13-Apr-09        common share       350,000             Mr. Jack Chen                    $52,500            Compensation
</TABLE>

                                       7
<PAGE>

The number of shares issued was based on the average closing price of our common
shares on the OTCBB during certain periods. The shares were exempt from
registration pursuant to Section 4(2) under the Securities Act of 1933, as
amended, pursuant to Rule 903, as a sale by the issuer in an offshore
transaction. No underwriting or other commissions were paid in connection with
the issuance of these shares. No forms of conversion or exercise options are
attached to the shares.


ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS or PLAN OF OPERATION

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, including those set
forth in Item 1A above. We encourage you to read those risk factors carefully
along with 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 7.

OVERVIEW

Sancon Resources Recovery, Inc. is an industrial waste recycling company with
operations based in Australia and China. Sancon currently exports 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
include 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 today's competitive
manufacturing process to lower costs. As China gains global manufacturing
dominance and current economic crisis, Chinese manufacturers are increasingly
turning to recycled materials to lower costs, resulting tremendous demand for
recycled materials import. The major customers for Sancon are Chinese
manufacturers and recycled material traders such as Pernod Ricard, Hang Mai and
Yue Wu etc, which are located mainly in the Chinese provinces of Shanghai,
Guangdong, Zhejiang and Fujian.

PLAN OF OPERATION

During the next twelve months, we expect to take the following steps in
connection with the development of our business and the implementation of our
plan of operations:

o    We intend to continue with our marketing strategies to deliver our products
     in China and provide our waste management service to clients;
o    Along with the continued plastic and glass materials products we are now
     processing, we are also developing to process other materials, such as
     electronic materials, waste battery and new energy.
o    During the next twelve months, the Company expects to set up larger network
     of collection and sales in China.
o    During the next twelve months, the Company is planning to raise additional
     US$3-4 million cash to facilitate our processing capacity. The capital will
     be used to some or all of the following activities: 1) acquisition of other
     companies running similar business in China and the USA; 2) purchase of new
     equipment to satisfy increasing new type of materials requirements; 3)
     marketing and general administrative expenses for new operation in China.
     We may raise such capital through issuing our common stocks or warrants.

Our aggressive expansion plan will be replied on such capital support. We cannot
assure the successful result of fund raising. As such, we may not execute our
initial business strategy or plan as expected, and furthermore, our competitors
may stand in a better position than us, which results in an adverse effect on
our business, although we believe that currently, even without such funds, we
can still run a healthy business within our already occupied markets.

                                       8
<PAGE>

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.

Due to the disposal of subsidiary Guang Cheng Int'l Trading Ltd., the Company
now is organized into two business segments while it was three in the last year:
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.

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.

                                       9
<PAGE>

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 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 forwabds. 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.

As of December 31, 2009 and 2008, the Company did not issue or make provision
through the issuance of stock options to employees and directors.

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.

RESULTS OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER, 2009 AND 2008

Revenue

Revenue is generated by service charges and the sale of recyclable materials.
Revenues for the year ended December 31, 2009 were $10,997,101 as compared to
$10,569,830 of 2008, an increase of $427,271 or 4%. The increases were mainly
due to the sales amount contributed from the waste service business. The


                                       10
<PAGE>

revenues in the waste service business increased from $8,161,471 for the year
ended December 31, 2008 to $ 8,811,955 for the year ended December 31, 2009, an
increase of $650,484 or 8%. The revenue in the material recycling business
decreased $223,213 or 9% from $2,408,359 for the year ended December 31, 2008 to
$2,185,146 for the year ended December 31, 2009. The decrease of revenue in the
material recycling business was mainly due to the reduction of economic
activities which caused by the current economic crisis.

Cost of revenue

Cost of revenue is the direct cost for sale of the recycling materials. For the
year ended December 31, 2009, it increased to $5,830,774 from $4,660,110 for the
year ended December 31, 2008, an increase of $1,170,664 or 25%. Among which,
cost of revenue in the waste service business increased $1,295,416 or 36% from
$3,640,217 for the year ended December 31, 2008 to $4,935,633 for the year ended
December 31, 2009. The increase mainly contained $1,292,195 of shipping
expenses. The increase were related to our market expandant and the change of
shipping mode that required by the customers. Cost of revenue in the material
recycling business for the fiscal year ended 2008 and 2009 was $1,012,393 and
$895,141 respectively, a decrease of $117,252 or 12%. The decrease of cost of
sales in the material recycling business was in line with the sales.

For the fiscal year ended 2008, cost of revenue was 44% of revenue compare to
53% for the fiscal year ended 2009.

Gross profit

The gross profit for the year ended December 31, 2009 was $5,166,327,
representing $743,393 or 13% decrease compared to $5,909,720 for the year ended
December 31, 2008. The gross margin reduced from 56% for the year 2008 to 47%
for the year 2009. The decrease of the gross profit is mainly due to its reduce
in the waste service business of $644,932 or 14%. The increase in cost of sales
leads to the decline of gross profit in the waste service business. The gross
profit in the material recycling business also decreased $105,961 or 8% from
$1,395,966 for the year ended December 31, 2008 to $1,290,005 for the same
period in 2009. Due to the current economic crisis, our material recycling
business declined a lot compare last year.

Selling, general and administrative expenses

Selling, general and administrative expenses decreased to $2,860,905 for the
year ended December 31, 2009, from $4,226,568 for the year ended December 31,
2008, a decrease of $1,365,663 or 32%. The SG&A expenses in the waste service
business was $2,652,532 for the year ended December 31, 2008, however, this
number decreased to $1,514,710 for the year ended December 31, 2009. It
decreased $1,137,822 or 43% during the period. The decrease was mainly contained
$719,253 of consulting fee and $29,157 of meeting fee. The high consulting fee
and other SG&A expenses paid during the last year were related to the market
developing. From the beginning of this year, these kinds of expenses were
reduced gradually. The SG&A expenses in the material recycling business also
decrease $90,486 or 7% from $ 1,277,081 for the year ended December 31, 2008 to
$1,186,595 for the year 2009. The decrease mainly caused by the decline of
sales. The SG&A expenses also included investor relationship expenses which
decreased $137,355 or 46% from $296,955 for the year ended December 31, 2008 to
$159,600 for the year ended December 31, 2009.

The SG&A expenses was 26% of the revenue for the year 2009 while it was 40% for
the year 2008.

Depreciation Expense

Depreciation expense increased to $190,724 for the year ended 2009 from $121,999
for the year 2008. The expenses increased $68,725 or 56% during the year ended
on December 31, 2009 as compared to that in 2008. The increases were mainly due
to the purchase of plant and machinery for the year 2009. The depreciation
expense in the waste service business increased $20,925 or 32% from $66,086 for
the year 2008 to $87,011 for the year ended 2009. The depreciation expense in
the material recycling business increased $47,800.

For the year ended December 31, 2008, depreciation expense was 1% of the revenue
while it was 2% for the year ended December 31, 2009.

                                       11
<PAGE>

Other Income (Expense)

For the year ended December 31, 2009, the Company booked other income of $52,407
compared to $77,062 for the year ended December 31, 2008. The decrease in other
income is $24,655 or 32% during the period. The mainly other income received in
the year 2009 is tax refund of $44,936.

For the year 2008 and 2009, other income was 0.7% and 0.5% of the revenue
respectively.

Discontinued Operation

On March 31, 2009, the company sold 100% equity interest of Guang Cheng Int'l
Trading Ltd. ("Guang Cheng") for $1,290 plus the assumption of certain
liabilities.

Loss on discontinued operation was $1,884 for the year ended December 31, 2009
while it was gain of $6,161 for the year ended December 31, 2008.

Income Tax

The income tax increased to $ 40,779 for the year ended December 31, 2009 from
$17,254 for the year ended December 31, 2008, an increase of $23,525 or 136%.
That is because our waste service business contributes $34,349 of income tax for
the year ended December 31, 2009 while it was no income tax for the year 2008.

For the year ended December 31, 2009 and 2008, income tax was 0.4% and 0.2% of
the revenue respectively.

Non-Controlling interest in subsidiary

On August 15, 2007, the Company completed the acquisition of 70% of the equity
interest in Sancon Resources Recovery (Shanghai) Co., Ltd by exercising its
option to convert $200,000 of convertible promissory note. Net income of $30,754
and net loss of $25,391 was attributable to Non-Controlling interest for the
year ended December 31, 2009 and 2008 respectively. For the year 2009 and 2008,
non-controlling interest was 0.3% and 0.2% of the sales respectively.

Net loss/income

Net income for the year ended December 2009 was $2,093,688, compared to
$1,652,513 in 2008, an increase of $441,175 or 27%. The increase is mainly due
to the significant increase of net income in the waste service business of
$377,670 or 20% although net income in the material recycling business decreased
$73,305 or 83%. The dramatic decrease in SG&A expenses in the waste service
business was the main reason for the increase of the net income. Net profit
margin for the year ended December 31, 2009 was 19% while it was 16% for the
year 2008.

Liquidity and Capital Resources

As shown in the accompanying financial statements, the Company booked
accumulated Profit of $3,461,642 as of December 31, 2009 compares to $1,367,955
for the year ended December 31, 2008. In addition, our working capital is
$3,387,860 for the year ended December 31, 2009 and it was $1,160,747 for the
year ended December 31, 2008. It increased $2,227,113. That is mainly due to the
increase of $1,483,207 in cash and cash equivalents and $699,433 in the trade
receivables. The strong sales for the year ended December 31, 2009 lead to the
great increase in cash and trade receivable.

Our ability to continue as a going concern depends on the successful execution
of our business plan to maintain the current profitability of the company as a
whole.

Operating Activities

The net cash provided by operating activities for the year ended December 31,
2009 amounted to $1,869,791 compared to $2,556,250 for the year ended December
31, 2008, and decrease $686,459 or 27%. The decrease mainly included trade
receivables of $1,024,881 and trade payable of $265,571. These decreases were
offset by net income of $441,175 and other current assets of $ 120,853.The
payment terms of our accounts receivable is about one month and will not be more
than two months.

                                       12
<PAGE>

Investing Activities

Net cash used in investing activities amounted to $207,859 for the year ended
December 31, 2009 compared to $586,132 for the year 2008, a decrease of $378,273
or 65%. It's mainly due to the decrease on purchase of property and equipment
and long term investment. For the year ended December 31, 2008, the cash used in
purchase of property and equipment was $467,693, however, this number decreased
to $197,002 for the same period in 2009. During the year ended December 31,
2009, the Company disposed equipment and received cash of $ 161,354. During the
year ended December 31, 2009, the Company invested RMB 300,000 or $44,010 to
acquire 20% equity of Sheng Rong and had a loss of $1,332. The company also
invested $130,055 on marketable securities for the year 2009.

Financing Activities

Net cash used in financing activities amounted to $74,284 for the year ended
December 31, 2009 compared to obtained $9,954 for the year 2008, a decrease of
$84,238 or 846%. The decrease mainly included payment on mortgage loan of
$20,229. This decrease was offset by shareholders' loan of $ 145,922.

The Company has financed its growth by utilizing cash reserves and loans from
directors. Loans from directors are unsecured, and deferred payment term and
without interest bearing. The Company's primary use of funds is for the purchase
of equipment for operation expansion and 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. However the management observed increased competition in the
material trading business has resulted in decrease margin in these businesses.

The Company's operations are not affected by seasonal factors.

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.


ITEM 7. FINANCIAL STATEMENTS


Financial statements are attached hereto following beginning on Page F-1.


ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE

We engaged Kabani & Company, Inc. ("Kabani"), as our new independent accountant
on November 27, 2006. The decision to retain Kabani & Company, Inc. was
recommended and approved by the Registrant's Board of Directors.

During the Registrant's two most recent fiscal years and any subsequent interim
period prior to the engagement of Kabani, neither the Registrant nor anyone on
the Registrant's behalf consulted with Kabani regarding either (i) The
application of accounting principles to a specific completed or contemplated
transaction, or the type of audit opinion that might be rendered on the small
business issuer's financial statements and either written or oral advice was
provided that was an important factor considered by the small business issuer in
reaching a decision as to the accounting, auditing or financial reporting issue,
or (ii) Any matter that was the subject of either a "disagreement" or a
"reportable event."

                                       13
<PAGE>


ITEM 8A. 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.

Management, with the participation of our principal executive officer and
principal financial officer, has evaluated the effectiveness of our internal
control over financial reporting as of December 31, 2009 based on criteria
established under the COSO framework, an integrated framework for evaluation of
internal controls issued to identify the risks and control objectives related to
the evaluation of the control environment 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,
2009. 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 during the
last fiscal quarter or the fourth fiscal quarter for the year ended December 31,
2009 that has materially affected, or is reasonably likely to materially affect,
our internal control over financial reporting.

ITEM 8B.  OTHER INFORMATION

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

None.

Item b.  Changes in Securities and Use of Proceeds.

None

Item c.  Defaults Upon Senior Securities.

None.

Item d.  Submission of Matters to a Vote of Security Holders.

Matters for a vote of security holders were submitted to security holders in the
Company's Proxy Statement, filed upon December 6, 2005. The remainder of the
information required by this item is incorporated by reference to the Company's
Proxy Statement.

Item e.  Other Information.

None.


                                       14
<PAGE>

                                 -- PART III --


ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, AND CONTROL PERSONS:
         COMPLIANCE WITH SECTION (16) OF THE EXCHANGE ACT

IDENTIFICATION AND BACKGROUNDS OF DIRECTORS AND OFFICERS

    NAME         AGE      PRINCIPAL POSITION        APPOINTMENT/RESIGNATION DATE

Jack Chen         40     CEO, Director                    November 29, 2002
David Chen        42     Non Executive Chairman              June 1, 2006
Cong Yuanli       59     Director                            June 1, 2006
Maggie Zhang      30     Acting CFO                         August 1, 2009

MR. JACK CHEN, CHIEF EXECUTIVE OFFICER & DIRECTOR

Mr. Chen is currently the CEO of Sancon as well as as the Managing Director of
Sancon Recycling Pty Ltd, the wholly owned subsidiary of Sancon Resources
Recovery, Inc. and a successful Australia based resources recycling company with
presence in Australia and China. With more than eight years of solid industrial
experiences in resources recovery sector in Australia and Asia, Mr. Chen is an
expert in the collection, processing, trading and reuse of industrial waste
materials. Previously, he worked in a management position for a multinational
German plastics and chemicals company and later built a successful plastics
trading business between Hong Kong and China.

MS. MAGGIE ZHANG, ACTING CHIEF FINANCIAL OFFICER

Ms. Maggie Zhang joined Sancon in 2008 as Finance Manager of the company. She
received a Bachelor Degree of Finance from Nanjing Agriculture University in
2003 and a Master Degree of Accounting and Finance from University of Birmingham
in 2005.

MR. DAVID CHEN, NON EXECUTIVE CHAIRMAN OF THE BOARD

Mr. Chen served as the Non executive Chairman of the Board since June, 2006.
Prior to that, Mr. Chen served as the CEO of MKA Capital, Inc. (formally
Financial Telecom Limited (USA) Inc.) since its inception in 2004. He is the
president and CEO of Shine Media Acquisition Corp. a blank check company listed
on OTC Bulletin Board, since its inception in June 2005. He was the former CEO
of Hartcourt Companies Inc from 2002 to 2004 (OTCBB: HRCT), a consolidator of IT
distribution companies, and CEO of V2 Technology, a leading videoconferencing
technology company. Previously, Mr. Chen was the Marketing Director of Time
Warner's CNN Asia Pacific unit, Sales Director of Turner Broadcasting Systems
Asia, and Managing Director of HelloAsia Inc. Mr. Chen holds a Bachelor of
Economics degree from Monash University of Australia.

MR. CONG YUANLI, INDEPENDENT DIRECTOR

Mr. Cong Yuanli is the Chairman of Landwood Enterprise Holdings Ltd, a China
based diversified holding company with businesses in international trading,
import/export, real estate investment and financing. Previously he was a
director at Hong Kong Landtrade Group, a holding company in real estate
investment, international trust financing, hotel investment, and international
trading, where he was responsible for the international trading activities. Mr.
Cong is an avid fine art, antique and furniture collector and is the owner of
Beijing Landwood Gallery and Beijing Yuanhantang Antique Furniture Ltd. Mr. Cong
holds Bachelor of Economics and Management degree from Beijing University of
Finance and Economics of China.

FAMILY RELATIONSHIPS

Family relationships among directors, executive officers, or persons nominated
or chosen by the Company to become directors or executive officers are as
follows: Mr. Jack Chen and Mr. David Chen are brothers.


                                       15
<PAGE>

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 filed as Exhibit
14.1 to this 10-K report.

AUDIT COMMITTEE FINANCIAL EXPERT

The Company's board of directors has determined it does not have at least one
audit committee financial expert serving on its audit committee, as that term is
used in Item 7(d)(3)(iv) of Schedule 14A under the Exchange Act.

The reason for the lack of an audit committee financial expert is the Company's
inability to find a suitable person by the reporting date of this 10-K report.
The Company continues its efforts to locate and appoint such a person.


ITEM 10  EXECUTIVE COMPENSATION

OFFICERS' COMPENSATION

Our CEO was compensated approximately $44,000 for the year ended December 31,
2008 and 2009 respectively. In 2007, he was compensated $18,500 and was not
compensated for the year ended December 31, 2006. Our CEO also received 350,000
common shares of stock compensation for services rendered for the year ended
2009 while he received 250,000 common shares for the year ended 2008.

DIRECTORS' COMPENSATION

Our Directors has not been compensated as of December 31, 2009.

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

Equity compensation plan information as of December 31, 2009

<TABLE>
<S>     <C>

-------------------------------------------- ----------------------- --------------------- -----------------------
Plan category                                 Number of securities     Weighted-average     Number of securities
                                               to be issued upon      exercise price of     remaining available
                                                  exercise of            outstanding        for future issuance
                                              outstanding options,    options, warrants         under equity
                                                    warrants              and rights         compensation plans
                                                   and rights                              (excluding securities
                                                                                            reflected in column
                                                                                                   (a) )
                                                                                                    (c)

                                                      (a)
                                                                             (b)
-------------------------------------------- ----------------------- --------------------- -----------------------
Equity compensation plans approved by
  security holders:None                                -                      -                      -
-------------------------------------------- ----------------------- --------------------- -----------------------
Equity compensation plans not approved
  by security holders:None                             -                      -                      -
-------------------------------------------- ----------------------- --------------------- -----------------------
Total                                                  -                      -                      -
-------------------------------------------- ----------------------- --------------------- -----------------------
</TABLE>


                                       16
<PAGE>

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
         RELATED STOCKHOLDER MATTERS

Security ownership of certain beneficial owners

The following persons are known to be the beneficial owners of more than 5% of
the Company's voting securities, as of December 31, 2009:

<TABLE>
<S>    <C>
Title of Class       Name and Address of Beneficial Owner      Number of Shares     Percent of Class(1)

Common Stock         Mr. Jack Chen
                     36 Graham St, Surrey Hills,                  8,100,000               35.27%
                     VIC 3127, Australia
Common Stock         Mr. Yiu Lo Chung
                     Unit 1406A, Nanyang Plaza,
                     No. 57, Hung To Road, Kwun                   2,000,000               8.71%
                     Tong, Kowloon, Hong Kong
Common Stock         Mr. Chen Guanliang
                     2-1,Floor 21, No. 4,
                     Dahuanjiayuan, Huangyan                      2,000,000               8.71%
                     District, Taizhou, Zhejiang,
                     China
</TABLE>

Notes:

(1) Based on 22,964,996 issued and outstanding voting common stock as of
December 31, 2009.

Security ownership of management

The following persons are known to be the beneficial owners of the Company's
voting securities, as of December 31, 2009:

<TABLE>
<S>     <C>
    Title of Class        Name and Address of Beneficial Owner                  Number of Shares           Percent of Class(1)
    --------------        ------------------------------------                  ----------------           -------------------

Common Stock            Mr. Jack Chen
                        36 Graham St, Surrey Hills,                                8,100,000                     35.27%
                        VIC 3127, Australia

Common Stock            Mr. Chen Guanliang
                        2-1, Floor 21, No. 4,
                        Dahuanjiayuan, Huangyan                                    2,000,000                      8.71%
                        District, Taizhou, Zhejiang, China
Common Stock            Mr. Yiu Lo Chung
                        Unit 1406A, Nanyang Plaza,
                        No. 57, Hung To Road, Kwun                                 2,000,000                      8.71%
                        Tong, Kowloon, Hong Kong
Common Stock            Mr. David Chen
                        No 2 Yinqing Lu, Songjiang District,
                        Shanghai China                                              596,270                       2.6%

                                       17
</TABLE>
<PAGE>

Notes:

(1) Based on 22,964,996 issued and outstanding voting common stock as of
December 31, 2009.


ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

There is no any transaction as of December 31, 2009.


                                       18
<PAGE>


ITEM 13.  EXHIBITS

The following list describes the exhibits filed as part of this Report on Form
10-K.

<TABLE>
<S>     <C>
Exhibit
Number    Note   Description of Document

3.1        (1)   Articles of Incorporation of Financial Telecom Limited (USA), Inc.
3.2        (1)   Amended and Restated Bylaws of Financial Telecom Limited (USA), Inc.
10.1       (1)   Agreement between Hong Kong Futures Exchange Limited and Financial Telecom Limited
10.2       (1)   Market Service Datafeed Agreement between Stock Exchange Information Services Limited and Financial Telecom
                 Limited
10.3       (2)   Option agreement dated December 14, 2004 between Fintel Group Limited and shareholders of Shanghai Longterms
                 Technology Limited.
10.4       (2)   Option agreement dated January 5, 2005 between Fintel Group Limited and shareholders of Beijing JCL
                 Technology Commerce Limited.
10.5       (2)   Option agreement dated January 20, 2005 between Fintel Group Limited and shareholders of Shanghai Qianhou
                 Computer Technology Limited.
10.6       (2)   Independent contractor agreement between Fintel Group Limited and Mr. Sam Chong Keen.
10.7       (2)   Independent contractor agreement between Fintel Group Limited and Info Media Company.
10.8       (2)   Independent contractor agreement between Fintel Group Limited and China Digital Distribution Limited.
10.9       (3)   Sales and purchase agreement dated March 25, 2005 between Fintel Group Limited and shareholders of Enjoy
                 Media Holdings Limited
10.10      (4)   Sales and purchase agreement dated April 25, 2005 between Fintel Group Limited and shareholders of Beijing
                 Genial Technology Co. Ltd.
10.11      (4)   Option agreement dated March 7, 2005 between Fintel Group Limited and shareholders of Beijing Sinoskyline
                 technology Trading Co. Ltd.
14.1       (8)   Code of Ethics
16.1       (6)   Change in Certifying Accountants
17.1       (5)   Correspondence on departure of Directors
20.1       (7)   Proxy Statement dated December 6, 2005
21.1       (9)   Subsidiaries of the registrant
24.1       (9)   Power of Attorney
31.1       (9)   Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                 302 of the Sarbanes-Oxley Act of 2002
31.2       (9)   Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                 302 of the Sarbanes-Oxley Act of 2002
32.1       (9)   Certification of Officers, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
                 Sarbanes-Oxley Act of 2002
</TABLE>


----------------------

(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 of
     Form 10-QSB (File No. 000-50760) filed May 6, 2005.
(4)  Incorporated herein by reference to the registrant's Quarterly Report of
     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)  Filed herewith.


                                       19
<PAGE>

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES

During the fiscal year ended December 31, 2009, our principal independent
accountant was Kabani & Company, Inc, the services of which were provided in the
following categories and amount:

AUDIT FEES

Kabani & Company, Inc is our independent accountant from November 27, 2006. The
aggregate fees billed by Kabani & Company, Inc for professional services
rendered for the audit of our financial statements for the year ended December
31, were approximately $102,500.

AUDIT RELATED FEES

Other than the fees described under the caption "Audit Fees" above, Kabani &
Company, Inc did not bill any fees for services rendered to us during fiscal
year 2009 for assurance and related services in connection with the audit or
review of our financial statements.

TAX FEES

There were no fees billed by Kabani & Company, Inc for professional services
rendered during the fiscal year ended December 31, 2009 for tax compliance, tax
advice, and tax planning.

ALL OTHER FEES

There were no fees billed by Kabani & Company, Inc for other professional
services rendered during the fiscal year ended December 31, 2009.


                                       20
<PAGE>

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                 Sancon Resources Recovery, Inc.

Date:  March 31, 2010
                                                               By: /s/ Jack Chen
                                                --------------------------------
                                                                       Jack Chen
                                                         Chief Executive Officer



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

                                                 Sancon Resources Recovery, Inc.

Date:  March 31, 2010
                                                              By: /s/ David Chen
                                                --------------------------------
                                                                      David Chen
                                                                        Chairman

Date:  March 31, 2010
                                                              By:  /s/ Jimmy Yiu
                                                      --------------------------
                                                                       Jimmy Yiu
                                                            Independent Director

Date:  March 31, 2010
                                                            By:  /s/ Cong Yuanli
                                                      --------------------------
                                                                      Cong Yuanl
                                                            Independent Director

Date:  March 31, 2010
                                                              By:  /s/ Jack Chen
                                                      --------------------------
                                                                       Jack Chen
                                                                        Director




                                       21

<PAGE>

FINANCIAL STATEMENTS

                   INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


Report of Independent Registered Public Accounting Firm                     F-2

Consolidated Balance Sheets as of December 31, 2009 and 2008                F-3

Consolidated Statements of Income for the years ended December 31, 2009
and December 31, 2008                                                       F-5

Consolidated Statements of Stockholders' Equity for the years ended
 December 31, 2009 and 2008                                                 F-6

Consolidated Statements of Cash Flows for the years ended
December 31, 2009 and 2008                                                  F-7

Notes to the Consolidated Financial Statements for the years ended          F-9
December 31, 2009 and 2008


                                       F-1
<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors and Stockholders
Sancon Resources Recovery, Inc.

We have audited the accompanying consolidated balance sheets of Sancon Resources
Recovery, Inc. and its subsidiaries (the "Company") as of December 31, 2009 and
2008, and the related consolidated statements of income, stockholders' equity,
and cash flows for the years then ended. These consolidated financial statements
are the responsibility of the Company's management. Our responsibility is to
express an opinion on these consolidated financial statements based on our
audits.

We conducted our audits of these statements 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. 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
audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of Sancon
Resources Recovery, Inc. and its subsidiaries as of December 31, 2009 and 2008,
and the results of its consolidated statements of operations, stockholders'
equity, and its cash flows for the years then ended, in conformity with
accounting principles generally accepted in the United States of America.




/s/ KABANI & COMPANY, INC.

CERTIFIED PUBLIC ACCOUNTANTS

Los Angeles, California

Date: March 31, 2010


                                      F-2
<PAGE>

<TABLE>
<S>     <C>

                         SANCON RESOURCES RECOVERY, INC.
                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS
                                     ------
                                                                As at
                                                     ---------------------------
                                                     December 31,   December 31,
                                                        2009           2008
                                                     ------------   ------------
Current assets
   Cash and cash equivalents                         $  3,703,716   $  2,220,509
   Trade receivables, net                                 988,673        289,240
   Inventory                                               16,013          7,270
   Deferred Tax Asset                                      33,057         22,107
   Other current assets                                   285,933         61,916
   Advance and prepayment                                  49,502         75,389
   Held to maturity securities                            129,000             --
   Current assets of entity disposed off                       --        156,964
                                                     ------------   ------------
          Total current assets                          5,205,894      2,833,395

Property, plant & equipment, net                          958,041        927,044
Security deposit                                            9,824          7,598
Held to maturity securities-non current                   129,993        128,938
Investment                                                 42,678             --
                                                     ------------   ------------
          Total Assets                               $  6,346,430   $  3,896,975
                                                     ============   ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

Liabilities
   Current liabilities
      Trade payables                                 $    886,034   $    747,786
      Capital lease - current                              15,925          8,735
      Accrued expenses and other payables                 189,969        252,424
      Tax payables                                         97,779        110,314
      Due to related parties                              420,504        412,291
      Loan Payable-current                                 26,199             --
      Other payables                                      181,624        116,178
      Current liability of entity disposed off                 --         24,920
                                                     ------------   ------------
          Total current liability                       1,818,034      1,672,648

   Long term liability
      Capital lease                                        21,799         29,175
      Loan Payable                                         56,117             --
                                                     ------------   ------------
          Total liability                               1,895,950      1,701,823
                                                     ------------   ------------


                                      F-3
<PAGE>

                                 SANCON RESOURCES RECOVERY, INC.
                             CONSOLIDATED BALANCE SHEETS (CONTINUED)


                                                                          As at
                                                              ------------------------------
                                                               December 31,    December 31,
                                                                   2009            2008
                                                              -------------    -------------

Stockholders' Equity
     Share Capital
        Authorized: 500,000,000 common shares, par value
        $0.001 per share.Issued and Outstanding: 22,964,996
        shares and 22,614,996 shares as of December 31,
        2009 and December 31, 2008 respectively                      22,965           22,615

     Additional paid-in capital                                     860,449          808,299
     Non-controlling interest                                       158,583          127,829
     Deferred Compensation                                         (124,800)        (194,400)
     Other comprehensive income                                      71,641           62,854
     Retained Earnings                                            3,461,642        1,367,955
                                                              -------------    -------------
        Total stockholders' equity                                4,450,480        2,195,152
                                                              -------------    -------------
        Total liabilities & stockholders' equity              $   6,346,430    $   3,896,975
                                                              =============    =============

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


                                      F-4
<PAGE>

                                 SANCON RESOURCES RECOVERY, INC.
                                CONSOLIDATED STATEMENTS OF INCOME

                                                                 For the years ended December 31,
                                                                      2009             2008
                                                                  -------------    -------------

Net Sales                                                         $  10,997,101    $  10,569,830
Cost of sales                                                         5,830,774        4,660,110
                                                                  -------------    -------------
     Gross profit                                                     5,166,327        5,909,720

Operating Expenses
     Depreciation                                                       190,724          121,999
     Selling, General and Administrative                              2,860,905        4,226,568
                                                                  -------------    -------------
         Total operating expenses                                     3,051,629        4,348,567
                                                                  -------------    -------------
Operating Income                                                      2,114,698        1,561,153

Other Income (Expense)
     Other income                                                        45,753           45,970
     Investment Loss                                                     (1,331)              --
     Interest income                                                      7,985           31,092
                                                                  -------------    -------------
     Total other income (expense)                                        52,407           77,062
                                                                  -------------    -------------

Income from continued operations before
income taxes and discontinued Operation                               2,167,105        1,638,215

Discontinued Operation
     Gain (loss) from Discontinued Operation                                (50)           2,341
     Gain (loss) on Disposal of a subsidiary                             (1,834)           3,820
                                                                  -------------    -------------
Gain (loss)on Discontinued Operations                                    (1,884)           6,161
                                                                  -------------    -------------

Income before income taxes and non-controlling interest               2,165,221        1,644,376

Less: Income taxes                                                       40,779           17,254

Less: Net income (loss) attributed to non-controlling interest           30,754          (25,391)

                                                                  -------------    -------------
Net income                                                            2,093,688        1,652,513

Other comprehensive item:
Foreign currency translation gain                                         8,787           54,803

                                                                  -------------    -------------
Net comprehensive income                                          $   2,102,475    $   1,707,316
                                                                  =============    =============

Earnings per share:
     Basic & diluted earnings per share-continued operations      $        0.09    $        0.08
                                                                  =============    =============
     Basic & diluted earnings per share-discontinued operations   $       (0.00)   $        0.00
                                                                  =============    =============
     Basic & diluted earnings per share                           $        0.09    $        0.08
                                                                  =============    =============
     Basic & diluted weighted average shares outstanding             22,866,229       21,794,722
                                                                  =============    =============


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


                                              F-5
<PAGE>

                                                 SANCON RESOURCES RECOVERY, INC.
                                         CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                         FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

                                                     Additional     Non-                      Other
                            Common        Common      Paid in    controlling    Deferred   Comprehensive   Retained
                            Shares        Stock       Capital     Interest    Compensation    Income       Earnings       Total
                          -----------  -----------  -----------  -----------  -----------   -----------   -----------   -----------

Balance as of December     20,414,996  $    20,415  $   115,499  $   153,220  $        --   $     8,051   $   284,558)  $    12,627
31, 2007

Issuance of shares for      1,000,000        1,000      349,000           --           --            --            --       350,000
cash received in
prior years

Issuance of shares for        250,000          250       37,250           --           --            --            --        37,500
compensation

Issuance of shares for         50,000           50        7,450           --           --            --            --         7,500
services

Issuance of shares for        900,000          900      299,100           --     (300,000)           --            --            --
deferred compensation

Amortization of                    --           --           --           --      105,600            --            --       105,600
deferred compensation

Foreign Currency                   --           --           --           --           --        54,803            --        54,803
Translation

Non-controlling                    --           --           --      (25,391)          --            --            --       (25,391)
stockholders' interest

Net income for the year            --           --           --           --           --            --     1,652,513     1,652,513
                          -----------  -----------  -----------  -----------  -----------   -----------   -----------   -----------

Balance as of December     22,614,996       22,615      808,299      127,829     (194,400)       62,854     1,367,955     2,195,152
31, 2008

Issuance of shares
against compensation          350,000          350       52,150           --           --            --            --        52,500
accrued in 2008

Amortization of                    --           --           --           --       69,600            --            --        69,600
deferred compensation

Foreign Currency                   --           --           --           --           --         8,787            --         8,787
Translation

Non-controlling                    --           --           --       30,754           --            --            --        30,754
stockholders' interest

Net income for the year            --           --           --           --           --            --     2,093,688     2,093,688

                          -----------  -----------  -----------  -----------  -----------   -----------   -----------   -----------
Balance as of              22,964,996  $    22,965  $   860,449  $   158,583  $  (124,800)  $    71,641   $ 3,461,642   $ 4,450,480
December  31, 2009
                          ===========  ===========  ===========  ===========  ===========   ===========   ===========   ===========

                           The accompanying notes are an integral part of these consolidated financial statements


                                                               F-6

<PAGE>

                                 SANCON RESOURCES RECOVERY, INC.
                              CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                       For the years ended December 31,
                                                                             2009            2008
                                                                          -----------    -----------

Cash Flows from Operating Activities
        Net Income                                                        $ 2,093,688    $ 1,652,513
        Adjustments to reconcile net income to net cash flows
        provided by (used in) operating activities:
              Depreciation and amortization                                   190,724        121,999
              Loss from investment in Shengrong                                 1,332             --
              Gain on disposal of property and equipment                        9,369             --
              Shares issued in lieu of compensation & service                      --         45,000
              Amortization of deferred compensation                            69,600        105,600
              Stock compensation                                                   --         52,500
              Non-controlling interest                                         30,754        (25,391)
              Changes in current assets and liabilities:
                Decrease (increase) in trade receivables                     (698,143)       326,738
                Decrease (increase) in inventory                               (8,743)        (3,507)
                Decrease (increase) in advance to suppliers                    12,447        (11,997)
                Decrease (increase) in other current assets                   (99,428)      (220,281)
                Increase (decrease) in tax payable                            (12,535)       (63,428)
                Increase (decrease) in trade payable                          138,248        403,819
                Increase (decrease) in other current liabilities              142,478        135,576
                                                                          -----------    -----------
              Net cash provided by continued operations                     1,869,791      2,519,141
                                                                          -----------    -----------
              Net cash used in discontinued operations                             --         37,109
                                                                          -----------    -----------
              Net cash flows provided by operating activities               1,869,791      2,556,250
                                                                          -----------    -----------

Cash Flows from Investing Activities
        Investment in securities                                             (130,055)      (128,400)
        Purchase of property and equipment                                   (197,002)      (467,693)
        Investment in Shengrong                                               (44,010)            --
        Cash increased from disposal of property and equipment                161,354             --
                                                                          -----------    -----------
              Net cash used in continued operations                          (209,713)      (596,093)
                                                                          -----------    -----------
              Net cash provided by discontinued operations                      1,854          9,961
                                                                          -----------    -----------
              Net cash flows used in Investing activities                    (207,859)      (586,132)
                                                                          -----------    -----------

Cash Flows from Financing Activities
        Shareholders' loan                                                    (74,098)        71,824
        Payment of mortgage loan                                                 (186)       (20,415)
              Net cash provided by/(used in) continued operations             (74,284)        51,409
                                                                          -----------    -----------
              Net cash used in discontinued operations                             --        (41,455)
                                                                          -----------    -----------
              Net cash flows provided by/(used in) financing activities       (74,284)         9,954
                                                                          -----------    -----------

Effect of exchange rate changes on cash                                      (104,441)         1,793
                                                                          -----------    -----------

Net Increase in Cash & Cash Equivalent                                      1,483,207      1,981,865


                                              F-7
<PAGE>

                                 SANCON RESOURCES RECOVERY, INC.
                        CONSOLIDATED STATEMENTS OF CASH FLOWS(CONTINUED)

                                                                      For the years ended December 31,
                                                                              2009         2008
                                                                           ----------   ----------

        Cash & Cash Equivalent at start of period                           2,220,509      238,644
                                                                           ----------   ----------
        Cash & Cash Equivalent at end of period                            $3,703,716   $2,220,509
                                                                           ==========   ==========


Supplemental information for Cash Expenses
        Cash paid for Interest Expenses                                    $    3,146   $    5,823
                                                                           ==========   ==========
        Cash paid for Income Taxes                                         $   40,779   $   78,987
                                                                           ==========   ==========

Supplemental information for Non-Cash Financing and Investing activities
        Issuance of shares against deferred compensation                   $       --   $  300,000
                                                                           ==========   ==========

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

                                              F-8
</TABLE>
<PAGE>

                         SANCON RESOURCES RECOVERY, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 August 15, 2007, the Company completed the acquisition of 70% of the equity
interest in Sancon Resources Recovery (Shanghai) Co., Ltd by exercising its
option to convert $200,000 of convertible promissory note.

On November 17, 2006, the company completed the acquisition of 100% equity
interest in Crossover Solutions Inc ("Crossover" or "CS") from Fintel Group by
paying $1 for the transfer of one share of Crossover Solutions Inc. being the
total number of outstanding share of Crossover.

Since its acquisition, Crossover solution Inc has begun the operation of
providing services for management and granulation of waste materials for its
clients located in China.

On March 31, 2008, the company sold 100% equity interest of Digital Financial
Service Limited ("DFSL") for $7.8 plus the assumption of certain liabilities,
due to its continuing losses, resulting in gain of $1,865 on disposal of the
entity

On March 31, 2009, the company sold 100% equity interest of Guang Cheng Int'l
Trading Ltd. ("Guang Cheng") for $1,290 plus the assumption of certain
liabilities, resulted in loss of $1,884 on disposal of the entity.


NOTE 2 PRINCIPLES OF CONSOLIDATION

The accompanying consolidated financial statements include all of the accounts
of the Company and all of the subsidiaries under its control, which include
Sancon Recycling Pty Ltd., Sancon SH (70%) and CS as of and for the year ended
December 31, 2009. While the historical results for the year ended December 31,
2008 included Sancon Recycling Pty Ltd., Guang Cheng, Sancon SH (70%) and CS.
All material inter-company balances and transactions have been eliminated in
consolidation.

NOTE 3 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.


                                      F-9
<PAGE>

ALLOWANCE FOR BAD DEBTS
-----------------------

The Company presents accounts receivable at the net of allowances for doubtful
accounts. The allowances are calculated based on detailed review of certain
individual customer accounts and an estimation of the overall economic
conditions affecting the Company's customer base. The Company reviews a
customer's credit history before extending credit. If the financial condition of
its customers were to deteriorate, resulting in an impairment of their ability
to make payments, additional allowances may be required. No provision for
doubtful accounts has been made in these financial statements, as the accounts
are considered collectible in full. As at December 31, 2009 and 2008 allowance
for bad debt amounted to $0 and $47,170 respectively

HELD TO MATURITY SECURITIES
---------------------------

Company classifies investment in marketable securities as `Held to Maturity' in
accordance with SFAS 115(ASC 320). Non temporary decline in the fair value of
securities is charged to earnings while unrealized gains or losses are not
recognized as at December 31, 2009 and 2008. As of December 31, 2009 and 2008,
the investment in securities amounted to $258,993 and $128,938.

The held to maturity securities of $129,000 will be matured on August 19, 2010
and $129,993 will mature on August 22, 2011. So they are classified under
current assets and non current assets respectively in the accompanied financial
statements.

PROPERTY, PLANT & EQUIPMENT
---------------------------

Property, plant and equipment are stated at cost, less accumulated depreciation.

For our subsidiary in Australia we use declining balance method of depreciation
by multiplying annual rates as follows:


            Plant and Machinery                                           20.0%
            Motor Vehicles                                                22.5%
            Fixture and Fittings                                          22.0%

For our subsidiary in Shanghai we use straight line method over the following
estimated useful lives:


            Plant and Machinery                                           10 yrs
            Motor Vehicles                                                5 yrs
            Office equipment                                              5 yrs
            Computer                                                      3 yrs


IMPAIRMENT OF LONG-LIVED ASSETS
-------------------------------

The Company periodically reviews its portfolio of assets for impairment in
accordance with Statement of Financial Accounting Standards ("SFAS") No. 144,
"Accounting for the Impairment or Disposal of Long-lived Assets ("SFAS 144")
(ASC 360)." Such review necessitates estimates of current market values;
re-lease rents, residual values and component values. The estimates are based on
currently available market data and are subject to fluctuation from time to
time. The Company initiates its review periodically, whenever events or changes
in circumstances indicate that the carrying amount of a long-lived asset may not
be recoverable. Recoverability of an asset is measured by comparison of its
carrying amount to the expected future undiscounted cash flows (without interest
charges) that the asset is expected to generate. Any impairment to be recognized
is measured by the amount by which the carrying amount of the asset exceeds its
fair market value. Significant management judgment is required in the
forecasting of future operating results which are used in the `reparation of
projected undiscounted cash flows and, should different conditions prevail,
material write downs may occur. There was no impairment in Company's long lived
assets as at December 31, 2009 and 2008.

                                      F-10
<PAGE>

FOREIGN CURRENCY TRANSLATION ADJUSTMENT
---------------------------------------

The reporting currency used in the preparation of these consolidated financial
statements is U.S. dollars. Local currencies are the functional currencies for
the Companies subsidiaries. For the purpose of consolidation: assets and
liabilities of subsidiaries with functional currencies other than U.S. dollars
are translated into U.S. dollars at the applicable rates of exchange in effect
at the balance sheet date; and income and expense items are translated into U.S.
dollars at the average applicable rates during the year, while equity is
accounted for using historical rates.

Translation gains and losses resulting from fluctuations in exchange rates are
recorded as a separate component of other comprehensive income within
stockholders' equity as cumulative translation adjustments. Gains and losses
resulting from foreign currency transactions are included in results of
operations. Foreign currency translation adjustments for the years ended
December 31, 2009 and 2008 amounted to $8,787 and $54,803.


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.

Due to the disposal of subsidiary Guang Cheng Int'l Trading Ltd., the Company
now is organized into two business segments while it was three in the last year:
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.

INCOME TAXES
------------

The Company has adopted Financial Accounting Standard No. 109 (SFAS 109) (ASC
740) which requires the recognition of 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 according to the principles of SFAS 5 (ASC 450) , Accounting for
Contingencies. 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.


                                      F-11
<PAGE>


A 100% valuation allowance has been established as a reserve against the
deferred tax assets arising from the net operating losses and other net
temporary differences since it cannot, at this time, be considered more likely
than not that their benefit will be realized in the future.

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.

COMPREHENSIVE INCOME
--------------------

Statement of Financial Accounting Standards No. 130 ("SFAS 130") (ASC 220),
"Reporting Comprehensive Income," establishes standards for reporting and
displaying of comprehensive income, its components and accumulated balances.
Comprehensive income is defined to include all changes in equity except those
resulting from investments by owners and distributions to owners. Among other
disclosures, SFAS 130 (ASC 220) requires that all items that are required to be
recognized under current accounting standards as components of comprehensive
income be reported in a financial statement that is displayed with the same
prominence as other financial statements. As at December 31, 2009 and 2008 other
comprehensive income amounted to $71,641 and $62,854 respectively.

NON-CONTROLLING INTEREST
------------------------

The Company owns 70% ownership interest in Sancon Resources Recovery (Shanghai)
Co., Ltd. As of December 31, 2009, non-controlling interest in Sancon SH
amounted to $158,583 compared to $127,829 as of December 31, 2008.

STOCK BASED COMPENSATION
------------------------

Effective January 1, 2006, the beginning of SRPL'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. Results for prior periods have not been
restated, as provided for under the modified-prospective method.

As of December 31, 2009 and December 31, 2008, the Company did not issue or make
provision through the issuance of stock options to employees and directors.


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. Diluted EPS is equal to basic EPS for all
periods presented, as the Company has no potentially dilutive securities.

STATEMENT OF CASH FLOWS
-----------------------

In accordance with Statement of Financial Accounting Standards No. 95 (ASC 230),
"Statement of Cash Flows," cash flows from the Company's operations is
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.

SEGMENT REPORTING
-----------------

The Company adopted Statement of Financial Accounting Standards No. 131 ("SFAS
131") (ASC 250), "Disclosures about Segments of an Enterprise and Related
Information" requires use of the "management approach" model for segment
reporting. SFAS 131 (ASC 250) establishes standards for reporting information
regarding operating segments in annual financial statements and requires


                                      F-12
<PAGE>

selected information for those segments to be presented in interim financial
reports issued to stockholders. SFAS 131 (ASC 250) also establishes standards
for related disclosures about products and services and geographic areas.
Operating segments are identified as components of an enterprise about which
separate discrete financial information is available for evaluation by the chief
operating decision maker, or decision making group, in making decisions how to
allocate resources and assess performance.

RECLASSIFICATIONS
-----------------

Certain reclassifications have been made in prior years' financial statements to
conform to classifications used in the current year.

RECENT PRONOUNCEMENTS
---------------------

In September 2009, the Financial Accounting Standards Board ("FASB") issued
guidance related to revenue recognition for multiple element deliverables which
eliminates the requirement that all undelivered elements must have objective and
reliable evidence of fair value before a company can recognize the portion of
the consideration that is attributable to items that already have been
delivered. Under the new guidance, the relative selling price method is required
to be used in allocating consideration between deliverables and the residual
value method will no longer be permitted. This guidance is effective
prospectively for revenue arrangements entered into or materially modified in
2011 although early adoption is permitted. A company may elect, but will not be
required, to adopt the amendments retrospectively for all prior periods. The
Company is currently evaluating this guidance and has not yet determined the
impact, if any, that it will have on the consolidated financial statements.

In June 2009, the FASB issued ASC 105 (previously SFAS No. 168, "The FASB
Accounting Standards Codification and the Hierarchy of Generally Accepted
Accounting Principles ("GAAP")" - a replacement of FASB Statement No. 162),
which will become the source of authoritative accounting principles generally
accepted in the United States recognized by the FASB to be applied to
nongovernmental entities.

In June 2009, the FASB issued ASC 855 (previously SFAS No. 165, "Subsequent
Events"), which establishes general standards of accounting for and disclosures
of events that occur after the balance sheet date but before the financial
statements are issued or available to be issued. It is effective for interim and
annual periods ending after June 15, 2009. There was no material impact upon the
adoption of this standard on the Company's consolidated financial statements.
In June 2009, the FASB issued ASC 860 (previously SFAS No. 166, "Accounting for
Transfers of Financial Assets") , which requires additional information
regarding transfers of financial assets, including securitization transactions,
and where companies have continuing exposure to the risks related to transferred
financial assets. SFAS 166 eliminates the concept of a "qualifying
special-purpose entity," changes the requirements for derecognizing financial
assets, and requires additional disclosures. SFAS 166 is effective for fiscal
years beginning after November 15, 2009. The Company does not believe this
pronouncement will impact its financial statements.
In June 2009, the FASB issued ASC 810 (previously SFAS No. 167) for determining
whether to consolidate a variable interest entity. These amended standards
eliminate a mandatory quantitative approach to determine whether a variable
interest gives the entity a controlling financial interest in a variable
interest entity in favor of a qualitatively focused analysis, and require an
ongoing reassessment of whether an entity is the primary beneficiary. These
amended standards are effective for us beginning in the first quarter of fiscal
year 2010 and we are currently evaluating the impact that adoption will have on
our consolidated financial statements.

In August 2009, the FASB issued Accounting Standards Update ("ASU") 2009-05,
which amends ASC Topic 820, Measuring Liabilities at Fair Value, which provides
additional guidance on the measurement of liabilities at fair value. These
amended standards clarify that in circumstances in which a quoted price in an
active market for the identical liability is not available, we are required to
use the quoted price of the identical liability when traded as an asset, quoted
prices for similar liabilities, or quoted prices for similar liabilities when
traded as assets. If these quoted prices are not available, we are required to
use another valuation technique, such as an income approach or a market
approach. These amended standards became effective for us beginning in the
fourth quarter of fiscal year 2009 and are not expected to have a significant
impact on our consolidated financial statements.


                                      F-13
<PAGE>

NOTE 4. CONCENTRATIONS AND COMMITMENTS

(A) CONCENTRATIONS

The Company has focused on business in overseas markets, which the Company
believes present opportunities. Business with foreign customers is subject to
risks related to the economy of the country or region in which such customers
are located, which may be weaker than the U.S. economy. On the other hand,
foreign economy may remain strong even though the U.S. economy does not. Foreign
economic downturn may impact foreign customer's ability to make payments.
Furthermore, foreign customers are subject to risks related to currency
conversion fluctuations.

Foreign laws, regulations and judicial procedures may be more or less protective
for the local company's rights than those in the United States. The Company
could experience collection or repossession problems related to the enforcement
of its business agreements under foreign local laws and the remedies in foreign
jurisdictions. The protections potentially offered by Section 1110 of the
Bankruptcy Code do not apply to non-U.S. carriers, and applicable local law may
not offer similar protections.

(B) COMMITMENTS & CONTINGENCY

OFFICE SPACE LEASES
-------------------

The Company leases office space in Australia and China. The lease for Australia
will expire in October 2011 while leases for China will expire on various dates
between January 2010 and November 2018. Based upon existing leases, without
renewals, the minimum lease payments up for the next five years after December
31, 2009 to expiry are as follows:

                     2010                          $        374,643
                     2011                                   266,226
                     2012                                   161,407
                     2013                                   162,544
                     Thereafter                             852,865
                                                   ----------------
                     Total                         $      1,817,684
                                                   ================

The following schedule shows the composition of total rental expense for all
operating leases except those with terms of a month or less that were not
renewed:

                                                 Year Ending December 31
                                            2010                          2009
                                          ---------                    ---------
            Minimum Rentals               $ 374,643                    $ 362,762
            Contingent Rentals                  -                          -
            Less Sublease Rentals               -                          -

EQUIPMENT LEASES:
-----------------

In year 2005, the company purchased a vehicle under capital lease from Toyota
Financial Service. The annual interest rate is 7.99% with payment term of sixty
(60) months. The payment is to be made in 59 equal monthly installments of $348
each and the final installment of $5,904. The balance as of December 31, 2009
amounted to $7,368 which is current liability.

In year 2006, the company purchased a vehicle by mortgage loan from CBFC Limited
ABN. The annual interest rate is 8.32% with payment term of sixty (60) months.
The payment is to be made in 59 equal monthly installments of $479 each and the
final installment of $8,781. The balance as of December 31, 2009 amounted to
$16,935 with $4,514 as current liability.

                                      F-14
<PAGE>

In September 2007, the company purchased a vehicle by mortgage loan from CBFC
Limited ABN. The annual interest rate is 8.6% with payment term of forty-eight
(48) months. The payment is to be made in 47 equal monthly installments of $420
each and the final installment of $6,904. The balance as of December 31, 2009
amounted to $13,421 with $4,043 as current liability.

The Company pays approximately $1,247 per month under these leases, the last of
which expires in September 2011.

Total minimum lease payments under the above leases for the next five years
after December 31, 2009 are as follows:

                                                                     Capital
                                                                     Leases
===============================================================  =============
2010                                                                    18,489
2011                                                                    22,940
                                                                 -------------
                                                                 $      41,429
Less: Amount representing interest                                      (3,705)
Present value of minimum lease payments                                 37,724
Less: Current portion                                                  (15,925)
                                                                 -------------
                                                                 $      21,799
                                                                 =============

LEGAL PROCEEDINGS:
------------------

The company involved in the following litigation.

Dragon Wings Communications Limited, a Hong Kong corporation and Wong Yee Tat,
an individual are the first and second plaintiff. They filed a complaint on July
25, 2008 in the District Court of the Hong Kong special Administrative Region,
Civil Action No. 3251, against the first defendant, Fintel Group Limited for
breach of contract. The Company is the second defendant because plaintiff
claimed Fintel Group Limited is a wholly owned subsidiary of the Company. Under
the writ, the plaintiff claimed that pursuant to a written stock purchase
agreement, the first defendant shall purchase the first plaintiff's common stock
by common shares of Financial Telecom Limited (USA) inc. (replaced by shares of
MKA Capital Inc. from June 2006) or pay to the plaintiff cash of $94,172 in lieu
of the shares. Plus the interest and cost of litigation, the total amount
claimed by plaintiff were $104,966. The court adjudged that the first defendant
do pay the plaintiffs damages on September 08, 2008 and also adjudged that the
second defendant do pay the plaintiffs damages on December 10, 2008. The Company
did not receive writ of summons or judgment until February 2009. The Company
denied all allegations in the complaint because Fintel Group Limited is no
longer our subsidiary since November 27, 2006. The Company accrued $104,966 of
potential liability in the accompanied financial statements based on the letter
of claim received from the plaintiff.

NOTE 5.  EQUITY INVESTMENTS

INVESTMENT IN SHANGHAI SHENG RONG
---------------------------------

On June, 2009, Sancon SH, a 70% owned subsidiary of the company, entered into a
investment agreement with Shanghai Sheng Rong Environmental Protection
Technology Co.,Ltd. ("Shanghai Sheng Rong') to invest RMB 300,000 or approx.
$44,010 in turn held 20% equity interest of Shanghai Sheng Rong. Shanghai Sheng
Rong is an environmental service company that operates waste electrical and
electronic products in China. Shanghai Sheng Rong was set up on June 19, 2009.
As per FASB ASC 323-10-15-8) (formerly APB 18, par. 17), the company uses the
equity method for accounting the investment. As of December 31, 2009, the
Company booked investment loss of $1,332.

The Company's investment in equity for the years ended December 31, 2009 and
December 31, 2008 are shown as follows:

                                                     12-31-2009     12-31-2008
                                                    -------------   -----------
Investment in equity at beginning of year           $          --   $        --
Investment during the year                                 44,010            --
Net loss from equity investment                            (1,332)           --
                                                    -------------   -----------
Total investment in equity at December 31, 2009     $      42,678   $        --
                                                    =============   ===========

The Company's loss from equity investment for the years ended December 31, 2009
and 2008 are shown as follows:


                                      F-15
<PAGE>


                                                     12-31-2009     12-31-2008
                                                    -----------    ------------
Net loss of Shanghai Sheng Rong                     $    (6,659)   $         --
Percentage of ownership in Shanghai Sheng Rong               20%             --
                                                    -----------    ------------
Loss from equity investment                         $    (1,332)   $         --
                                                    ===========    ============

NOTE 6 PROPERTIES AND EQUIPMENT

Property, plant and equipment are stated at cost, less accumulated depreciation
and any impairment in value. The carrying values are reviewed for impairment
when events or changes in circumstances indicate the carrying value may not be
recoverable. Impairment losses are recognized in the income statement.

As of December 31, 2009, the property and equipment of the Company consisted of
the following:

<TABLE>
<S>     <C>
                            Plant and                      Office
         Items              Machinery      Vehicles       Equipment        Total
-------------------------  -----------    -----------    -----------    -----------
Cost                       $   815,309    $   582,924    $    35,545    $ 1,433,778
Accumulated Depreciation      (300,610)      (164,230)       (10,897)      (475,737)
                           -----------    -----------    -----------    -----------
    Net Carrying Value     $   514,699    $   418,694    $    24,648    $   958,041
                           ===========    ===========    ===========    ===========

Included in property and equipment is approximately $72,195 of assets, which are
leased under non-cancelable leases and accounted for as capital leases, which
expire through September 2011. The accumulated depreciation included in the
property and equipment for these leases is approximately $40,451.

As of December 31, 2008, the property and equipment of the Company consisted of
the following:

                            Plant and                      Office
         Items              Machinery      Vehicles       Equipment        Total
-------------------------  -----------    -----------    -----------    -----------
Cost                       $   749,355    $   383,759    $    24,589    $ 1,157,703
Accumulated Depreciation      (143,029)       (83,582)        (4,048)      (230,659)
                           -----------    -----------    -----------    -----------
    Net Carrying Value     $   606,326    $   300,177    $    20,541    $   927,044
                           ===========    ===========    ===========    ===========
</TABLE>

Included in property and equipment is approximately $55,833 of assets, which are
leased under non-cancelable leases and accounted for as capital leases, which
expire through September 2011. The accumulated depreciation included in the
property and equipment for these leases is approximately $21,960.

Depreciation and amortization expense for the years ended December 31, 2009 and
December 31, 2008 was $190,724 and $121,999, respectively.

NOTE 7 SHORT TERM AND LONG TERM LOAN PAYABLE

On November 19, 2009, Sancon SH, a 70% owned subsidiary of the Company,
purchased a vehicle with loan from Mercedes-Benz Auto Finance Limited. The total
loan principle amount is $84,411, unsecured, with annual interest rate of 7.6%
and payment term of thirty-six (36) months. The payment is to be made in
thirty-six (36) equal monthly installments of $2,630 each from December 2009 to
November 2011. The Company classified the loan balance under current and
noncurrent liabilities respectively in the accompanied financial statements. As
of December 31, 2009 and 2008, short term loan payable amounted to $26,199 and
$0 and long term loan payable amounted to $56,117 and $0 respectively.

For the year ended December 31, 2009, Sancon SH accrued and paid interest $535
for the loan.

The following is the future payment schedule of the long term loan:

Loan payable to Mercedes-Benz Auto Finance Limited, interest at 7.6% annually,
equal monthly installment payment of $2,630 each


                                      F-16
<PAGE>

2010                                                     $              31,560
2011                                                                    31,560
2012                                                                    28,930
                                                         ---------------------
Total                                                    $              92,050
                                                         =====================


NOTE 8. RELATED PARTY TRANSACTIONS

The amount due to related parties comprised of loan from Mr. Jack Chen, CEO, Mr.
David Chen, former CEO and major shareholder, and Jimmy Yiu, independent
director of the Company.

Included in the amount due to related parties, there are loans due to Mr. David
Chen of $6,216 and loans due to Mr. Jimmy Yiu, independent director of the
Company, amounting to $5,021 and loans due to Mr. Jack Chen of $409,267. The
amounts are interest, unsecured and due on demand.

The shareholder's loan of Mr. Jack Chen included amount due from him of $15,000
and amount due to him of $424,267, the net amounting to $409,267. The offsetting
amounts due to and due from Mr. Jack Chen are appropriate and comply with FASB
Interpretation No. 39(ASC 210).

NOTE 9. SEGMENT REPORTING

During the years ended December 31, 2009 and 2008, the Company is organized into
two business segments: (1) material recycling, (2) waste service. The following
table presents a summary of operating information and certain year-end balance
sheet information for the years ended December 31, 2009 and 2008:

                                                For the Years Ended December 31,
                                                    2009                2008
                                                 ------------      ------------
Revenues from unaffiliated sources:
                Material Recycling               $  2,185,146      $  2,408,359
                Waste Service                       8,811,955         8,161,471
                                                 ------------      ------------
                               Consolidated      $ 10,997,101      $ 10,569,830
                                                 ============      ============

Net income (loss):
                Material Recycling               $     15,000      $     88,305
                Material Trade                         (1,884)               --
                Waste Service                       2,240,172         1,862,502
                Un-allocated                         (159,600)         (298,294)
                                                 ------------      ------------
                               Consolidated      $  2,093,688      $  1,652,513
                                                 ============      ============

Identifiable assets:
                Material Recycling               $    916,399           761,133
                Material Trade                             --           156,964
                Waste Service                       5,424,918         2,970,350
                Un-allocated                            5,113             8,528
                                                 ------------      ------------
                               Consolidated      $  6,346,430      $  3,896,975
                                                 ============      ============

Depreciation and amortization:
                Material Recycling               $    103,713      $     55,913
                Waste Service                          87,011            66,086
                Un-allocated                               --                --
                                                 ------------      ------------
                               Consolidated      $    190,724      $    121,999
                                                 ============      ============

Capital expenditures:
                Material Recycling               $     38,123      $    174,174
                Waste Service                         158,879           293,519
                                                 ------------      ------------
                               Consolidated      $    197,002      $    467,693
                                                 ============      ============


                                      F-17
<PAGE>

NOTE 10. STOCKHOLDER'S EQUITY

On October 15, 2007, the Company entered into a ten years service agreement with
Lyons Capital LLC. In connection with this agreement, Lyons Capital LLC will
receive 300,000 shares of Restricted, RULE 144 Stock, for services rendered or
to be rendered in the future. The Company issued shares on March 10, 2008 and
recorded at the fair market value of $156,000. This amount will be amortized
over a period of ten years from January 01, 2008. For the year ended December
31, 2009, the Company recorded $15,600 in consulting expense. The unamortized
amount of $124,800 is included under deferred compensation as at December 31,
2009.

On May 15, 2008, the Company entered in a one year service agreement with
CEOcast, Inc to provide investor relations services. In connection with this
agreement, CEOcast will receive total 600,000 shares of Restricted, RULE 144
Stock. On August 1 and September 30, 2008, the Company issued 300,000 shares to
CEOcast separately and recorded at the fair market value of $144,000. This
amount will be amortized over a period of twelve months. As of December 31,
2008, the Company recorded $90,000 in consulting expense. The unamortized amount
of $54,000 is included under deferred compensation as at December 31, 2008. As
of December 31, 2009, the Company recorded $54,000 in consulting expense. There
is no unamortized amount under deferred compensation as of December 31, 2009.

On January 01, 2008, the Company entered in a four years employment agreement
with Mr. Jack Chen, current CEO. In connection with this agreement, Mr. Jack
Chen will receive corporate salary of $90,000 per year that paid in stock. On
August 01, 2008 and April 13, 2009, the Company issued 250,000 shares and
350,000 shares of Restricted, RULE 144 Stock to Mr. Jack Chen. The shares
recorded at the fair market value of $37,500 and $52,500 respectively. As of the
December 31, 2009, the Company recorded $90,000 in due to related parties.

NOTE 11 INCOME TAXES

The Company is registered in the State of Nevada and has operations in primarily
five tax jurisdictions - the Australia, Hong Kong, 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, 2009 and
December 31, 2008. The Company has deferred tax asset from its Australian
operations amounted to $33,057 and $22,107 respectively as of December 31, 2009
and 2008. No valuation allowance is recorded against the deferred tax asset as
at December 31, 2009 and 2008 under this entity.

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

                                                         2009          2008
                                                      -----------   -----------
Income (loss) subject to Australia                    $    21,430   $   105,559
Income (loss) subject to Hong Kong-Disposed in 2009           (50)         (505)
Income (loss) subject to China                            136,862       (56,316)
Income (loss) subject to United States                   (159,600)     (304,455)
Income (loss) subject to British Virgin Island          2,168,413     1,896,273
Gain (loss) on Disposal of a subsidiary                    (1,834)        3,820
                                                      -----------   -----------
Net income before income tax and non-controlling
interest                                              $ 2,165,221   $ 1,644,376
                                                      ===========   ===========

                                      F-18
<PAGE>


United States of America
As of December 31, 2009, the Company in the United States of America had
approximately $4,892,600 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, 2009 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, 2009
and 2008.

                                                     2009               2008
                                                  -----------       -----------
Net Operating Loss Carry forwards                 $ 4,892,600       $ 4,733,000
Total Deferred Tax Assets                           1,663,484         1,609,000
Less: Valuation Allowance                          (1,663,484)       (1,609,000)
                                                  -----------       -----------
     Net Deferred Tax Assets                      $        --       $        --
                                                  ===========       ===========

Hong Kong
For the three month periods ended March 31, 2009 and for the year ended December
31, 2008, the Company's Hong Kong subsidiary, which was disposed off on March
31, 2009 had net loss before income tax of $50 and $505. Pursuant to Hong Kong
income tax laws, the Company has recorded income tax benefit of $0 and $4,801
for the three month periods ended March 31, 2009 and for the year ended December
31, 2008.

Australia
As of December 31, 2009 and 2008 the Company's Australian subsidiary had
accumulated loss of $2,000 and $17,000. Pursuant to Australian income tax laws,
the Company has made income tax provision of $ 6,430 and $17,254 for the years
ended December 31, 2009 and 2008 respectively.

The following table sets forth the significant components of the net deferred
tax assets for operation in the Australia as of December 31, 2009 and 2008.



                                                          2009            2008
                                                         -------         -------
Net Operating Loss Carry forwards                        $ 2,000         $17,000
Total Deferred Tax Assets                                 33,057          22,107
Less: Valuation Allowance                                     --              --
                                                         -------         -------
     Net Deferred Tax Assets                             $33,057         $22,107
                                                         =======         =======


China
As of December 31, 2009 and 2008, the Company's China subsidiary had accumulated
profit of $324,513 and $222,000 respectively. The Company has net income of
$102,513 during the years ended December 31, 2009. Pursuant to Chinese income
tax laws, the Company has made income tax provision of $34,349 and $0 for the
years ended December 31, 2009 and 2008.

                                      F-19
<PAGE>

British Virgin Island
The Company's British Virgin Island subsidiary had net profit of $2,168,413 and
$1,896,273 for the years ended December 31, 2009 and 2008. There is no income
tax levied in British Virgin Island.

The following is a reconciliation of the provision for income taxes at the U.S.
federal income tax rate to the income taxes reflected in the Statement of
Operations:

                                                          ----------------------
                                                            2009        2008
                                                          ----------------------
Tax expense (credit) at statutory rate-federal                 (34)%       (34)%
State tax expense (credit) net of federal tax                   (6)%        (6)%
Valuation allowance                                             40%         40%
Foreign income tax:
British Virgin Island                                           --          --
Australia                                                       30%         30%
Hongkong                                                      16.5%       16.5%
China                                                           25%         25%
Valuation allowance                                          (69.6)%     (70.4)%
                                                          ----------------------
Effective tax rate                                             1.9%        1.1%
================================================================================

In July 2006, the FASB issued FASB Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes," ("FIN 48"), an interpretation of FASB Statement
No. 109, "Accounting for Income Taxes," ("FASB 109") (ASC 740). FIN 48 clarifies
the accounting for uncertainty in income taxes recognized in an enterprise's
financial statements in accordance with FASB 109 (ASC 740). This Interpretation
prescribes a recognition threshold and measurement attribute for the financial
statement recognition and measurement of a tax position taken or expected to be
taken in a tax return. FIN 48 also provides guidance on derecognition,
classification, interest and penalties, accounting in interim periods,
disclosure, and transition. FIN 48 is effective for fiscal years beginning after
December 15, 2006. The cumulative effect of applying FIN 48 is to be reported as
an adjustment to the opening balance of retained earning in the year of
adoption. As of December 31, 2009, 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.

NOTE 12. DISCONTINUED OPERATIONS

DISPOSAL OF GUANG CHENG

On March 31, 2009, the company sold 100% equity interest of Guang Cheng Int'l
Trading Ltd. ("Guang Cheng") for $1,290 plus the assumption of certain
liabilities, resulting in total loss of $1,884 on discontinued operations.

Following is the Gain/Loss Calculation for disposal of Guang Cheng Int'l Trading
Ltd.


Guang Cheng Gain/Loss calculation

Net assets of the Company as on January 1, 2009                         $ 3,174

Gain/(Loss) from discontinued operations from
  January 1, 2009 through March 31, 2009                                    (50)
                                                                        -------

Total book value as of March 31, 2009                                     3,124

Proceeds from disposal                                                    1,290
                                                                        -------

Loss on Disposal                                                        $(1,834)

                                                                        -------
Total Loss on Discontinued Operations                                   $(1,884)
                                                                        =======

                                      F-20
<PAGE>

The following table summarized the statement of operation of Guang Cheng for the
three-month periods ended March 31, 2009 and for the twelve month periods ended
December 31, 2008:

                                      For the Three-Month   For the Twelve-Month
                                             Ended                 Ended
                                         March 31, 2009       December 31,2008
                                         --------------        --------------
Sales                                    $       46,519        $    2,138,066
Cost of sales                                   (45,261)           (2,093,063)
                                         --------------        --------------
Gross Profit                                      1,258                45,003
Operating expense                                (1,308)              (45,508)
Income tax expense (benefit)                         --                 4,801
                                         --------------        --------------
Net income (loss)                        $          (50)       $        4,296
                                         ==============        ==============

DISPOSAL OF DFSL

On March 31, 2008, the company sold 100% equity interest of Digital Financial
Service Limited ("DFSL") to an individual Mr. Zhu Jun for $7.8 plus the
assumption of certain liabilities, due to its continuing losses, resulting in
total gain of $1,865 on discontinued operation.

Following is the Gain/Loss Calculation for disposal of DFSL.

DFSL Gain/Loss calculation

Net assets of the Company as on January 1, 2008                         $(1,857)

Loss from discontinued operations from January 1, 2008
    through March 31, 2008                                               (1,955)
                                                                        -------

Total book value as of March 31, 2008                                    (3,812)

Proceeds from disposal                                                      7.8
                                                                        -------

Gain on Disposal                                                        $ 3,820

                                                                        -------
Total Gain on Discontinued Operations                                   $ 1,865
                                                                        =======

The following table summarized the statement of operation of DFSL for the
three-month periods ended March 31, 2008:

                                            For the Three-Month
                                                   Ended
                                              March 31, 2008
                                              --------------
Sales                                         $
Cost of sales
                                              --------------
Gross Profit
Operating expense                                     (1,955)
Other income (expense)

Income tax
                                              --------------
Net Loss                                      $       (1,955)
                                              ==============


                                      F-21
<PAGE>

NOTE 13. MAJOR CUSTOMERS AND VENDORS

Normally, the payment terms of our accounts receivable is about one month and
will not be more than two months. The Company extends credit to its customers
based upon its assessment of their credit worthiness and generally does not
require collateral. Credit losses have not been significant.

Pernod Ricard, our top customers, provided 59% of net revenue for the year ended
December 31, 2009. Total accounts receivable due from this customer was
approximately 540,029 as of December 31, 2009.

Jiangxi Zhongshun, Aperio Group and Astron are our major vendors. Total accounts
payable due to these vendors was $625,266 as of December 31, 2009.

Pernod Ricard, Wei Er Sha and San Jiang, our three top customers, provided 63%
of net revenue for the year ended December 31, 2008, respectively. Total
accounts receivable due from these customers was approximately $46,619 as of
December 31, 2008.

Three Rivers HK Ltd, Tricept Trading Limited and BAF China Ltd are our major
vendors. Total accounts payable due to these vendors was $17,999 as of December
31, 2008.

NOTE 14. NON-CONTROLLING INTEREST

The Company owned 70% interest in Sancon SH. As at December 31, 2009 and 2008
non-controlling interest amounted to $158,583 and $127,829 respectively.




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