UNITED STATES
 SECURITIES
AND EXCHANGE COMMISSION
 Washington, D.C.
20549
  FORM
10-Q
  [X]
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT OF
1934:
  For
the Quarterly Period ended September 30, 2008
  [  ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE EXCHANGE
ACT
  For the
transition period from __________________ to __________________
 
 Commission
File Number: 0-52407
 
 ENVIROSAFE
CORPORATION
  (Exact
name of registrant as specified in its charter)
 
 Nevada
              94-3251254(State
      or other jurisdiction of
              (IRS
      Employer Identification No.)incorporation
      or organization)
  8/F,
Tower B, National Software Industry Zone,
 Gao
Tang Xin Jian Zone, Tian He District
 Guangzhou,
P.R.China  510663
 (Address
of principal executive offices)
 
 (8620)
6108-8998 - Tel
 (8620)
6108-8999 - Fax
 (Issuer's
telephone number)
  Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months
(or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.
 Yes [X]
No [  ]
  Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.
  Large
accelerated filer [
]                                                                           Accelerated
filer   [ ]
  Non-accelerated
filer  [
]                                                                           Smaller
Reporting Company [X]
 
 
 Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes [  ] No [X]
 
 As of the
close of business on November 12, 2008, 2,767,714 shares of our common stock,
par value $.0001 per share, were outstanding.
 
 As of the
close of business on November 12, 2008, 1,350,000 shares of our preferred stock,
par value $.0001 per share, were outstanding.
  Copies
to:
 Jared P.
Febbroriello, Esq. LL.M. - Principal
 JPF
Securities Law, LLC
 19720
Jetton Road, 3rd Floor
 Cornelius,
NC 28031
 Phone:
(704) 897-8334
 Fax:
(888) 608-5705
  CAUTIONARY
STATEMENT REGARDING FORWARD LOOKING INFORMATION
 
 The
discussion contained in this Form 10-Q under the Securities Exchange Act of
1934, as amended, contains forward-looking statements that involve risks and
uncertainties. The issuer's actual results could differ significantly from those
discussed herein. These include statements about our expectations, beliefs,
intentions or strategies for the future, which we indicate by words or phrases
such as "anticipate," "expect," "intend," "plan," "will," "we believe," "the
Company believes," "management believes" and similar language, including those
set forth in the discussions under "Notes to Financial Statements" and
"Management's Discussion and Analysis or Plan of Operation" as well as those
discussed elsewhere in this Form 10-Q. We base our forward-looking statements on
information currently available to us, and we assume no obligation to update
them. Statements contained in this Form 10-Q that are not historical facts are
forward-looking statements that are subject to the "safe harbor" created by the
Private Securities Litigation Reform Act of 1995.
  
  
 
 TABLE OF CONTENTSPART
      I. FINANCIAL INFORMATIONITEM 1.FINANCIAL
      STATEMENTS
              3ITEM 2.MANAGEMENT'S DISCUSSION AND
      ANALYSIS OR PLAN OF OPERATION
              11ITEM
      3. QUANTITATIVE ANDQUALITATIVE DISCLOSURES ABOUT MARKET
    RISK
              13ITEM 4.CONTROLS AND
      PROCEDURES
              13PART
      II. OTHER INFORMATIONITEM 1.LEGAL
      PROCEEDINGS
              13ITEM
      1A. RISK FACTORS
              13ITEM 2.CHANGES IN SECURITIES AND USE OF
      PROCEEDS
              13ITEM
      3. DEFAULTS UPON SENIOR SECURITIES
              13ITEM
      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
              13ITEM 5.OTHER
      INFORMATION
              13ITEM 6.EXHIBITS AND REPORTS ON FORM
      8-K
              13SIGNATURES
              14INDEX TO
      EXHIBITS
              15
  2
 Table of Contents
 
 ITEM 1. FINANCIAL
STATEMENTS
  PagesCondensed
      Consolidated Balance Sheets
                
                4Condensed
      Consolidated Statements of Operations and Comprehensive Income
      (Loss)
                
                5Condensed
      Consolidated Statements of Cash Flows
                
                6Notes
      to Condensed Consolidated Financial Statements
                
                7
  3
 Table of Contents
  Envirosafe
Corporation
 Condensed
Consolidated Balance Sheets
 As
of September 30, 2008 and December 31, 2007
 (Stated
in US Dollars)
  September
      30,
                
                
                December
      31,2008
                
                
                2007(Unaudited)
                
                
                (Audited)ASSETSCurrent assetsCash and cash
      equivalents
                
                $
                190,894
                
                
                $
                136,441Trade receivables (Net of
      allowance for doubtful accountsof $54,757 in 2008 and $29,259
      in 2007)
                
                
                1,366,370
                
                
                
                550,046Other receivables and
      prepayments
                
                
                327,878
                
                
                
                84,540Inventories (Note
      4)
                
                
                295,592
                
                
                
                415,522Total current
      assets
                
                
                2,180,734
                
                
                
                1,186,549Property, plant and equipment,
      net
                
                
                64,401
                
                
                
                76,613TOTAL
      ASSETS
                
                $
                2,245,135
                
                
                $
                1,263,162LIABILITIES
      AND STOCKHOLDERS’ EQUITYLIABILITIESCurrent
    liabilitiesTrade payables
                
                $
                40,901
                
                
                $
                641,689Other payables and accrued
      expenses
                
                
                162,715
                
                
                
                132,788Amount
      due to a director (Note 5)
                
                
                31,666
                
                
                
                189,087Secured
      bank loan (Note 6)
                
                
                437,630
                
                
                
                -Income tax
    payable
                
                
                300,237
                
                
                
                5,024Total current
      liabilities
                
                
                973,149
                
                
                
                968,588TOTAL
      LIABILITIES
                
                
                973,149
                
                
                
                968,588COMMITMENTS
      AND CONTINGENCIES (Note 7)STOCKHOLDERS’
      EQUITYCommon stock - $0.0001 par
      value 50,000,000 sharesAuthorized, 2,767,672 and 2,500,000 shares
      issuedand outstanding in 2008 and 2007 (Note 8)
                
                
                277
                
                
                
                250Preferred stock - $0.0001 par
      value 10,000,000 sharesAuthorized, 1,350,000 shares issued and
      outstandingin 2008 and 2007 (Note 9)
                
                
                135
                
                
                
                135Additional paid up capital
                
                
                116,326
                
                
                
                120,416Statutory and other
      reserves
                
                
                50,803
                
                
                
                50,803Accumulated other comprehensive
      income
                
                
                84,852
                
                
                
                45,292Retained
    earnings
                
                
                1,019,593
                
                
                
                77,678TOTAL
      STOCKHOLDERS’ EQUITY
                
                
                1,271,986
                
                
                
                294,574TOTAL
      LIABILITIES AND STOCKHOLDERS’ EQUITY
                
                $
                2,245,135
                
                
                $
                1,263,162
 
 See the
accompanying notes to condensed financial statement
 
 4
 Table of Contents
  Envirosafe
Corporation
 Condensed
Consolidated Statements of Operations and Comprehensive Income
(Loss)
 For
the three and nine months ended September 30, 2008 and 2007
 (Unaudited)
 (Stated
in US Dollars)
  Three
      months ended
                
                
                Nine
      months endedSeptember
      30,
                
                
                September
      30,(Unaudited)
                
                
                (Unaudited)2008
                
                
                2007
                
                
                2008
                
                
                2007Sales
                
                $
                695,307
                
                
                $
                44,690
                
                
                $
                2,576,508
                
                
                $
                359,263Cost
      of sales
                
                
                (231,858
                )
                
                
                (61,731
                )
                
                
                (1,170,573
                )
                
                
                (284,346
                )Gross
      profit (loss)
                
                
                463,449
                
                
                
                (17,041
                )
                
                
                1,405,935
                
                
                
                74,917Operating
      expensesGeneral
      and administrative expenses
                
                
                (126,551
                )
                
                
                (31,648
                )
                
                
                (236,613
                )
                
                
                (88,594
                )Research
      and development expenses
                
                
                (43,762
                )
                
                
                (21,898
                )
                
                
                (106,193
                )
                
                
                (89,077
                )Selling expenses
                
                
                (19,545
                )
                
                
                (15,162
                )
                
                
                (55,007
                )
                
                
                (92,030
                )Total
      operating expenses
                
                
                (189,858
                )
                
                
                (68,708
                )
                
                
                (397,813
                )
                
                
                (269,701
                )Net
      operating income (loss)
                
                
                273,591
                
                
                
                (85,749
                )
                
                
                1,008,122
                
                
                
                (194,784
                )Other
      income (expenses)Subsidy income form the PRC authorities for general
    operations
                
                
                68,778
                
                
                
                11,701
                
                
                
                233,567
                
                
                
                39,542Interest income
                
                
                247
                
                
                
                40
                
                
                
                456
                
                
                
                149Other income
                
                
                194
                
                
                
                -
                
                
                
                18,632
                
                
                
                -Interest
      expenses
                
                
                (9,133
                )
                
                
                -
                
                
                
                (23,310
                )
                
                
                -60,086
                
                
                
                11,741
                
                
                
                229,345
                
                
                
                39,691Income
      (loss) before taxes
                
                
                333,677
                
                
                
                (74,008
                )
                
                
                1,237,467
                
                
                
                (155,093
                )Income
      taxes (Note 10)
                
                
                (74,473
                )
                
                
                (64
                )
                
                
                (295,552
                )
                
                
                (9,175
                )Net
      income (loss)
                
                $
                259,204
                
                
                $
                (74,072
                )
                
                $
                941,915
                
                
                $
                (164,268
                )Other
      comprehensive incomeForeign
      currency translation adjustments
                
                
                651
                
                
                
                3,435
                
                
                
                39,560
                
                
                
                11,952Total
      comprehensive income (loss)
                
                $
                259,855
                
                
                $
                (70,637
                )
                
                $
                981,475
                
                
                $
                (152,316
                )Earnings
      (loss) per share (Note 11)Basic
                
                $
                0.10
                
                
                $
                (0.03
                )
                
                $
                0.37
                
                
                $
                (0.07
                )Diluted
                
                $
                0.00
                
                
                
                N/A
                
                
                $
                0.01
                
                
                
                N/AWeighted
      average number of shares outstanding (Note 11)Basic
                
                
                2,680,388
                
                
                
                2,500,000
                
                
                
                2,560,790
                
                
                
                2,500,000Diluted
                
                
                70,180,388
                
                
                
                N/A
                
                
                
                70,060,790
                
                
                
                N/A
  See the
accompanying notes to condensed financial statements
  5
 Table of Contents
  Envirosafe
Corporation
 Condensed
Consolidated Statements of Cash Flows
 For
the nine months ended September 30, 2008 and 2007
 (Unaudited)
 (Stated
in US Dollars)
  Nine
      months ended
                  September
      30,(Unaudited)2008
                
                
                2007Cash
      flows from operating activitiesNet income
    (loss)
                
                $
                941,915
                
                
                $
                (164,268
                )Adjustments to reconcile net
      income (loss) to net cashused in operating
      activities:Depreciation
                
                
                25,079
                
                
                
                21,391Provision
      for doubtful debts
                
                
                23,055
                
                
                
                18,887Provision
      for obsolete inventories
                
                
                2,424
                
                
                
                18,242Changes in operating assets and
      liabilities:Trade
      receivables
                
                
                (786,533
                )
                
                
                20,045Other receivables and
      prepayments
                
                
                (216,993
                )
                
                
                (255,490
                )Inventories
                
                
                142,293
                
                
                
                (18,719
                )Trade
      payables
                
                
                (630,528
                )
                
                
                230,851Other payables and
      accrued expenses
                
                
                18,412
                
                
                
                (9,753
                )Income tax
      payable
                
                
                288,819
                
                
                
                10,012Net
      cash flows used in operating activities
                
                
                (192,057
                )
                
                
                (128,802
                )Cash
      flows from investing activitiesPayments to acquire property,
      plant and equipment
                
                
                (8,094
                )
                
                
                (5,199
                )Net
      cash flows used in investing activities
                
                
                (8,094
                )
                
                
                (5,199
                )Cash
      flows from financing activitiesCash acquired from the Exchange
                
                
                13,532
                
                
                
                -New
      bank loan
                
                
                428,639
                
                
                
                -(Repayment to) advances from a director
                
                
                (197,355
                )
                
                
                99,012Net
      cash flows provided by financing activities
                
                
                244,816
                
                
                
                99,012Effect
      of foreign currency translation on cash and cash
    equivalents
                
                
                9,788
                
                
                
                1,779Net
      increase (decrease) in cash and cash equivalents
                
                
                54,453
                
                
                
                (33,210
                )Cash
      and cash equivalents - beginning of period
                
                
                136,441
                
                
                
                63,065Cash
      and cash equivalents - end of period
                
                $
                190,894
                
                
                $
                29,855Supplemental
      disclosures for cash flow information:Cash paid for:Interest
                
                $
                10,451
                
                
                $
                -Income taxes
                
                $
                6,733
                
                
                $
                -
  See the
accompanying notes to condensed financial statements
  6
 Table of Contents
  Envirosafe
Corporation
 Notes
to Condensed Consolidated Financial Statements
 For
the three and nine months ended September 30, 2008 and 2007
 (Unaudited)
 (Stated
in US Dollars)
  1.
                Corporate
      information
 
 Envirosafe
Corporation (the “Company”) was incorporated in the state of Delaware in 1996.
Its shares were traded on the OTC Bulletin Board of the United States of
America.
 
 Subsequent
to the balance sheet date, the Company redomiciled from Delaware to
Nevada.  Additionally, on October 9, 2008, the Company’s board of
directors authorized and approved a reverse stock split (the “Reverse Split”) of
the Company’s common stock on the basis of one share for eight shares currently
authorized or issued and outstanding.  Accordingly, the number of
authorized shares of common stock decreased from 400,000,000 shares to
50,000,000 shares and the number of issued and outstanding shares decreased from
22,141,375 shares to 2,767,672 shares.  The Company has retroactively
adjusted all the share information to reflect the reverse stock split in the
condensed consolidated financial statements.
 
 The
Company is an investment holding company, whose only asset is 100% equity
interest in ADDE Education Hldgs Limited (“ADDE”). ADDE is a corporation
organized and existing under the laws of Hong Kong Special Administrative Region
of People’s Republic of China (the “PRC”) and is an investment holding company
whose only asset is 100% equity interest in Guangzhou Haoyu Educational
Technology Company Limited (“Haoyu”).  Haoyu was established in the
PRC on March 27, 2001 as a
domestic enterprise.
 
 On March
1, 2008, ADDE entered into an agreement with the then sole stockholder of Haoyu
to acquire the stockholder’s entire interest in Haoyu (the “Transfer”) at a
consideration of Renminbi (“RMB”) 1 million.  Haoyu was wholly owned
by the spouse of ADDE’s sole stockholder before the consummation of the
Transfer.  The Transfer was subsequently approved by the government
bureau in May 2008.  Haoyu re-registered as a wholly foreign owned
enterprise and obtained its business license in August 2008.
 
 On March
4, 2008, a Plan of Exchange (the “Exchange”) was executed between and among the
Company, ADDE, the majority stockholder of the Company and the stockholder of
ADDE.  The Exchange was consummated on July 31, 2008, pursuant to
which 2,500,000 (after taking into account the Reverse Split) shares of the
Company’s common stock and 1,350,000 shares of the Company’s preferred stock
were issued to the stockholder of ADDE.  Thereafter, ADDE and Haoyu
became the Company’s wholly-owned subsidiaries and the former stockholder of
ADDE owned 93.2% of the Company’s issued and outstanding shares.
 
 The
Exchange and the Transfer have been respectively accounted for as reverse
acquisition and recapitalization of the Company and ADDE whereby ADDE is deemed
to be the accounting acquirer (legal acquiree) and the Company to be the
accounting acquiree (legal acquirer) under the Exchange, and Haoyu is deemed to
be the accounting acquirer (legal acquiree) and ADDE to be the accounting
acquiree (legal acquirer) under the Transfer. The condensed consolidated
financial statements are in substance those of Haoyu, with the assets and
liabilities, and revenues and expenses, of the Company and ADDE being included
effective from the respective consummation dates of the Exchange and the
Transfer.
 
 2.
                Description
      of business
 
 The
Company’s primary business operations are conducted through Haoyu, which is
specialized in the research and development of educational products and
technology applications.  Haoyu is located in the Guangzhou Province
of the PRC with three manufacture bases for research and development
purpose.
 
 The
educational software developed by Haoyu is in conformity to the new educational
purpose.  The software uses the advanced technology of data
collection, sensor and wireless control and video image with handy appearance,
which can virtually upload the live experiment and analyze the information
collected.  Teachers and students can have the experiments done
automatically instead of the traditional method by hand.
 
 Haoyu
also engages in the trading of hardware and computer products such as monitors
and computer notebooks.
  3.  Summary
of significant accounting policies
 
 Basis of
presentation
 
 The
accompanying condensed consolidated financial statements of the Company and its
subsidiaries have been prepared in accordance with accounting principles
generally accepted in the United States of America for interim financial
information.  Accordingly, they do not include all the information and
notes necessary for comprehensive financial statements.
 
 In the
opinion of the management of the Company, all adjustments, which are of a normal
recurring nature, necessary for a fair statement of the results for the three
and nine month periods have been made.  Results for the interim
periods presented are not necessarily indicative of the results that might be
expected for the entire fiscal year.  These condensed financial
statements should be read in conjunction with the audited financial statements
for the year ended December 31, 2007 of Haoyu included in the Company’s Form 8-K
filed with the Securities and Exchange Commission on August 13,
2008.
 
 Principles of
consolidation
 
 The
consolidated financial statements include the financial statements of the
Company and its subsidiaries.  All significant inter-company accounts
and transactions have been eliminated in consolidation.
 
 Use of
estimates
 
 In
preparing financial statements in conformity with accounting principles
generally accepted in the United States of America, management makes estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the dates of the financial
statements, as well as the reported amounts of revenues and expenses during the
reporting periods.  These accounts and estimates include, but are not
limited to, the valuation of trade receivables, other receivables, inventories,
warranty reserve, deferred income taxes and the estimation on useful lives of
property, plant and equipment.  Actual results could differ from these
estimates.
  7
 Table of Contents
  Envirosafe
Corporation
 Notes
to Condensed Consolidated Financial Statements
 For
the three and nine months ended September 30, 2008 and 2007
 (Unaudited)
 (Stated
in US Dollars)
  3.  Summary
of significant accounting policies (Cont’d)
 Concentrations of credit
risk
 
 Financial
instruments that potentially subject the Company to significant concentrations
of credit risk consist principally of cash and cash equivalents, and trade and
other receivables.  As of September 30, 2008 and December 31, 2007,
substantially all of the Company’s cash and cash equivalents were held by major
financial institutions located in the PRC, which management believes are of high
credit quality.  With respect to trade receivables, the Company
extends credit based on an evaluation of the customer’s financial
condition.  The Company generally does not require collateral for
trade and other receivables and maintains an allowance for doubtful accounts of
trade and other receivables.  The Company had three customers that
individually comprised 10% or more of net revenue for the nine months ended
September 30, 2008 :-
 
 Customer
A                                                                                     $643,210
(25%)
 Customer
B                                                                                     $401,320
(16%)
 Customer
C                                                                                     $373,034
(14%)
 
 Allowance for doubtful
accounts
 
 The
Company establishes an allowance for doubtful accounts based on management’s
assessment of the collectibility of trade receivables.  A considerable
amount of judgment is required in assessing the amount of the
allowance.  The Company considers the historical level of credit
losses and applies percentages to aged receivables categories.  The
Company makes judgments about the creditworthiness of each customer based on
ongoing credit evaluations, and monitors current economic trends that might
impact the level of credit losses in the future.  If the financial
condition of the customers were to deteriorate, resulting in their inability to
make payments, a larger allowance may be required.
 
 Based on
the above assessment, during the reporting periods, the management establishes
the general provisioning policy to make allowance equivalent to 5% of gross
amount of trade receivables due from 1 to 2 years, 10% of gross amount of trade
receivables due from 2 to 3 years and 15% of gross amount of trade receivables
due over 3 years.  Additional specific provision is made against trade
receivables to the extent which they are considered to be doubtful.
 
 Bad debts
are written off when identified.  The Company does not accrue interest
on trade receivables.
 
 Historically,
losses from uncollectible accounts have not significantly deviated from the
general allowance estimated by the management and no significant additional bad
debts have been written off directly to the profit and loss.  This
general provisioning policy has not changed in the past since establishment and
the management considers that the aforementioned general provisioning policy is
adequate and not too excessive and does not expect to change this established
policy in the near future.
  Inventories
 
 Inventories
are stated at the lower of cost or market.  Cost is determined on a
first in first out basis and includes all expenditures incurred in bringing the
goods to the point of sale and putting them in a saleable
condition.  In case of manufacturing inventories, cost includes an
appropriate share of production overheads based on normal operating
capacity.  In assessing the ultimate realization of inventories, the
management makes judgments as to future demand requirements compared to current
or committed inventory levels.  The Company estimates the demand
requirements based on market conditions, forecasts prepared by its customers,
sales contracts and orders in hand.
 
 In
addition, the Company estimates net realizable value based on intended use,
current market value and inventory ageing analyses.  The Company
writes down the inventories for estimated obsolescence or unmarketable
inventories equal to the difference between the cost of inventories and the
estimated market value based upon assumptions about future demand and market
conditions.
 
 Based on
the above assessment, the Company establishes a general policy to make a 10%
provision for inventories aged over 1 to 2 years, a 25% provision for
inventories aged over 2 to 3 years and a 35% provision for inventories aged over
3 years.
 
 Revenue
recognition
 
 Revenue
from sales of the Company’s products is recognized when the significant risks
and rewards of ownership have been transferred to the customers at the time when
the products are delivered to and accepted by them, the sales price is fixed or
determinable and collection is reasonably assured.
 
 Government
grant
 
 Subsidy
income for both reporting periods represents refund of value-added tax from
State Administration of Taxation of the PRC for the sales of software products
and is recognized in the statements of operations and comprehensive income
(loss) when the income is received.
 
 Warranty
 
 The
Company maintains a policy of providing after sales support for certain products
by way of a warranty program. The Company provided 3 years warranties for the
software products to certain customers.  Further, the relevant
customers are allowed to defer the settlement of certain percentage (normally
5%) of the billed amount for certain period of time (normally three year) after
acceptance of the Company’s products under the warranty program.  As
of September 30, 2008 and December 31, 2007, such receivables amounted to
$14,974 and $14,035 respectively and are included in trade
receivables.
 
 Since the
aforementioned products were well developed, the Company did not encounter any
claims from such customers.  Accordingly, the Company did
not maintain a warranty reserve during the reporting
periods.  However, the Company will periodically assess the estimation
of its warranty liability and recognize the reserve when necessary based on the
actual experience.
  8
 Table of Contents
  Envirosafe
Corporation
 Notes
to Condensed Consolidated Financial Statements
 For
the three and nine months ended September 30, 2008 and 2007
 (Unaudited)
 (Stated
in US Dollars)
  3.  
Summary of significant accounting policies (Cont’d)
  Recently issued accounting
pronouncements
 
 In May
2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted
Accounting Principles”.  SFAS 162 identifies the sources of accounting
principles and the framework for selecting the principles used in the
preparation of financial statements of nongovernmental entities that are
presented in conformity with generally accepting accounting principles in the
United States.  This statement will be become effective 60 days
following the SEC’s approval of the Public Company Accounting Oversight Board
amendments to AU Section 411 “The Meaning of Present Fairly in Conformity With
Generally Accepted Accounting Principles”.  The management does not
expect the adoption of this statement will have any material effect on the
Company’s financial statements.
 
 
 4.
                
                Inventories
                
                September
      30,
                
                
                December
      31,2008
                
                
                2007(Unaudited)
                
                
                (Audited)Raw
      materials
                
                $
                9,402
                
                
                $
                20,041Finished
      goods
                
                
                332,871
                
                
                
                436,914342,273
                
                
                
                456,955Provision
      for obsolete inventories
                
                
                (46,681
                )
                
                
                (41,433
                )$
                295,592
                
                
                $
                415,522
 
 Provision
for obsolete inventories charged to the statements of operations for the nine
months ended September 30, 2008 and 2007 amounted to $2,424 and $18,242
respectively.
  5.   Amount due to a director
 
 The
amount is interest-free, unsecured and repayable when the Company is in a
position to do so.
  6.   Secured
bank loan
 
 The bank
loan is denominated in RMB and repayable within one year.  It carries
interest at 110% of the benchmark rate of the People’s Bank of China (the
“PBOC”) for six-month to one-year short-term loans per annum.
 
 The bank
loan is secured by a guarantee put up by an independent party and a deposit of
$21,881 (RMB150,000) placed with the
bank in the name of the guarantor, with no other covenants.  The
guarantor received $12,859 from the Company for issuing the
guarantee.  The Company had also paid the required deposit to the bank
on behalf of the guarantor.  The receivable due from the guarantor was
included in other receivables and prepayments under current assets as of
September 30, 2008.
 
 7.   Commitments and contingencies
 
 The
Company had no commitments or contingencies as of September 30, 2008 and
December 31, 2007.
  8.   Common stock
 
 On August
1, 2008, the Company issued 2,500,000 (after taking into account the Reverse
Split) shares of its common stock to the sole stockholder of ADDE to effect the
Exchange (Note 1).
 
 The
Company’s issued and outstanding number of common stock immediately prior to the
Exchange was 267,672 (after taking into account the Reverse Split) shares, which
had been accounted for at its net book value at the time of the Exchange.
  9.   Preferred
stock
 
 On August
1, 2008, the Company issued 1,350,000 shares of preferred stock to the sole
stockholder of ADDE to effect the Exchange (Note 1).
 
 The
preferred stock, at the option of the holder, is convertible at any time after
one year from the date of issuance into 50 shares of fully paid and
non-assessable shares of common stock without further consideration.  The
holders of preferred stock are entitled to vote together with the common stock
on all matters presented to a vote on an as converted basis, which is each
preferred shares convertible into 50 shares of common stock.  The
dividends on outstanding shares of preferred stock shall be paid or declared and
set apart for payment before any dividends shall be paid or declared and set
apart for payment on common shares with respect to the same dividend
period.  The board of directors is empowered to fix and determine the
designations, powers, preferences and rights of the shares of each series and
the qualifications, limitations or restrictions thereof.
  10.  Income
taxes
 
 The
Company is subject to the United States of America Tax law at tax rate of
34%.  It has no assessable profit for both reporting
periods.  The Company has not provided deferred taxes on undistributed
earnings of its non-U.S. subsidiaries as of September 30, 2008 as it is the
Company’s current policy to reinvest these earnings in non-U.S.
operations.
 
 ADDE is
subject to Hong Kong profits tax.  No provision for Hong Kong profits
tax has been made as ADDE had no taxable income for the reporting
period.
 
 Commencing
from the fiscal year 2008, Haoyu is subject to the PRC Enterprise Income Tax
(“EIT”) at the statutory rate of 25% (under the new law as detailed below) on
the profits as reported in its PRC statutory financial statements adjusted by
profit and loss items that are not taxable or deductible.
  9
 Table of Contents
  Envirosafe
Corporation
 Notes
to Condensed Consolidated Financial Statements
 For
the three and nine months ended September 30, 2008 and 2007
 (Unaudited)
 (Stated
in US Dollars)
  10.  Income
taxes (Cont’d)
 
 PRC’s
legislative body, the National People’s Congress, adopted the unified EIT Law on
March 16, 2007. This new tax law replaces the existing separate income tax
laws for domestic enterprises and foreign-invested enterprises and became
effective on January 1, 2008. Under the new tax law, a unified income tax
rate is set at 25% for both domestic enterprises and foreign-invested
enterprises. However, there will be a transition period for enterprises, whether
foreign-invested or domestic, that are currently receiving preferential tax
treatments granted by relevant tax authorities. Enterprises that are subject to
an enterprise income tax rate lower than 25% may continue to enjoy the lower
rate and will transit into the new tax rate over a five year period beginning on
the effective date of the EIT Law. Enterprises that are currently entitled to
exemptions for a fixed term may continue to enjoy such treatment until the
exemption term expires. Preferential tax treatments may continue to be granted
to industries and projects that qualify for such preferential treatments under
the new law.
 
 Income
taxes in the statements of operations and comprehensive income (loss) for the
reporting periods represent provision for EIT for the Company’s continuing
operations in the PRC.
 
 In July
2006, the FASB issued Interpretation No. 48, “Accounting for Uncertainty in
Income Taxes” (“FIN 48”).  This interpretation requires recognition
and measurement of uncertain income tax positions using a “more-likely-than-not”
approach.  The Company adopted FIN 48 on January 1,
2007.  The management evaluated the Company’s tax positions and
considered that no additional provision for uncertainty in income taxes is
necessary as of September 30, 2008.
 
 11.   Earnings (loss) per share
 
 The
following table sets forth the computation of basic and diluted earnings (loss)
per share for the periods indicated :-
 
 Three
      months ended September 30, (Unaudited)
                
                
                Nine
      months ended September 30, (Unaudited)2008
                
                
                2007
                
                
                2008
                
                
                2007Numerator
      :-Net
      income (loss)
                
                $
                259,204
                
                
                $
                (74,072
                )
                
                $
                941,915
                
                
                $
                (164,268
                )Denominator
      :-Weighted
      average common shares used to computebasic
      earnings (loss) per share
                
                
                2,680,388
                
                
                
                2,500,000
                
                
                
                2,560,790
                
                
                
                2,500,000Dilutive
      potential shares from conversion of preferred shares
                
                
                67,500,000
                
                
                
                N/A
                
                
                
                67,500,000
                
                
                
                N/AWeighted
      average common shares used to computediluted
      earnings (loss) per share
                
                
                70,180,388
                
                
                
                N/A
                
                
                
                70,060,790
                
                
                
                N/AEarnings
      per share - Basic
                
                $
                0.10
                
                
                $
                (0.03
                )
                
                $
                0.37
                
                
                $
                (0.07
                )Earnings
      per share - Diluted
                
                $
                0.00
                
                
                
                N/A
                
                
                $
                0.01
                
                
                
                N/A
 
 The basic
and diluted earnings (loss) per share is calculated using the net income
(loss) and the weighted average number of shares outstanding during the
reporting periods.  All share and per share data have been adjusted to
reflect the recapitalization of the Company in the Exchange and the Reverse
Split.
  12.  Defined contribution plan
 
 The
Company has a defined contribution plan for all qualified employees in the
PRC.  The employer and its employees are each required to make
contributions to the plan at the rates specified in the plan.  The
only obligation of the Company with respect to retirement scheme is to make the
required contributions under the plan.  No forfeited contribution is
available to reduce the contribution payable in the future years.  The
defined contribution plan contributions were charged to the condensed statements
of income.  The Company contributed $14,404 and $6,038 for the nine
months ended September 30, 2008 and 2007 respectively.
  13.  Related party transactions
 
 Apart
from the transaction as disclosed in note 5 to the condensed financial
statements, the Company had no other material transactions carried out with its
related parties during the reporting periods.
 
 14.   Segment
information
 
 The
Company uses the “management approach” in determining reportable operating
segments.  The management approach considers the internal organization
and reporting used by the Company’s chief operating decision maker for making
operating decisions and assessing performance as the source for determining the
Company’s reportable segments.  Management, including the chief
operating decision maker, reviews operating results solely by monthly revenue of
hardware and software and the overall operating results of the
Company.  The revenue of hardware and software for the reporting
periods is as follows :-
 
 Hardware
                
                
                Software
                
                
                TotalNine
      months ended September 30,
                  (Unaudited)
                
                
                Nine
      months ended September 30,
                  (Unaudited)
                
                
                Nine
      months ended September 30,
                  (Unaudited)2008
                
                
                2007
                
                
                2008
                
                
                2007
                
                
                2008
                
                
                2007Revenue
      from external customers
                
                $
                987,674
                
                
                $
                249,887
                
                
                $
                1,583,416
                
                
                $
                107,753
                
                
                $
                2,571,090
                
                
                $
                357,640
 
 Hardware
                
                Software
                
                TotalThree
      months ended September 30,
                  (Unaudited)
                
                Three
      months ended September 30,
                  (Unaudited)
                
                Three
      months ended September 30,
                  (Unaudited)2008
                
                2007
                
                2008
                
                2007
                
                2008
                
                2007Revenue
      from external customers
                
                $200,807
                
                $37,478
                
                $489,082
                
                $5,589
                
                $689,889
                
                $43,067
 
 All of the Company’s long-lived assetsand customers are located
in the PRC.
  10
 Table of Contents
  ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
  GENERAL
DESCRIPTION OF BUSINESS
 
 As used
herein the terms "We", the "Company", "ENVS", the "Registrant," or the "Issuer"
refers to Envirosafe Corporation, and its subsidiaries, ADDE Education Hldgs
Limited (“ADDE”), a corporation organized and existing under the laws of Hong
Kong Special Administrative Region of People’s Republic of China (the “PRC”),
and Guangzhou Haoyu Educational Technology Company Limited (“Haoyu”), a
corporation organized and existing under the laws of the PRC. We were
incorporated in the state of Delaware in 1996. In October 2008, our board
decided to redomicile from the State of Delaware to the State of Nevada. Their
decision was approved by the holders of a majority of the voting rights and
common stock.
 
 On March
1, 2008, ADDE entered into an agreement with the then sole stockholder of Haoyu
to acquire the stockholder’s entire interest in Haoyu (the “Transfer”) at a
consideration of Renminbi (“RMB”) 1 million.  Haoyu was wholly owned
by the spouse of ADDE’s sole stockholder before the consummation of the
Transfer.  The Transfer was subsequently approved by the government
bureau in May 2008.  Haoyu re-registered as a wholly foreign owned
enterprise and obtained its business license in August 2008.
 
 On March
4, 2008, the Company and ADDE entered a Plan of Exchange (the “Exchange”)
between and among the Company, ADDE, the majority stockholder of the Company and
the stockholder of ADDE.  The Exchange was consummated on July 31,
2008, pursuant to which 20,000,000 shares of the Company’s common stock and
1,350,000 shares of the Company’s preferred stock were issued to the stockholder
of ADDE. Immediately upon the closing, ADDE and Haoyu became the Company’s
wholly-owned subsidiaries and the former stockholder of ADDE owned 93.2% of the
Company’s issued and outstanding shares. In addition, the Company ceased all of
its current remaining operations and adopted and implemented the business plan
of Haoyu, which is specialized in the research and development of educational
products and technology applications and located in the Guangzhou Province of
the PRC with three manufacture bases for research and development
purpose.
 
 The
educational software developed by Haoyu is in conformity to the new educational
purpose.  The software employs the advanced technology in data
collection, sensor and wireless control and portable video equipment, which can
virtually upload the live experiment and analyze the information collected.
Accordingly, teachers and students can have the experiments done automatically
instead of the traditional method by hand.
 
 The
Company is also engaged in sales of hardware and computer products such as
monitors and computer notebooks.
  RESULTS
OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,
2008
 
 FORWARD
LOOKING STATEMENTS
  Certain
statements in this report, including statements of our expectations, intentions,
plans and beliefs, including those contained in or implied by "Management's
Discussion and Analysis" and the Notes to Consolidated Financial Statements, are
"forward-looking statements", within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), that are
subject to certain events, risks and uncertainties that may be outside our
control. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”,
“will”, and similar expressions identify forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. We undertake no obligation to
update or revise any forward-looking statements. These forward-looking
statements include statements of management's plans and objectives for our
future operations and statements of future economic performance, information
regarding our expansion and possible results from expansion, our expected
growth, our capital budget and future capital requirements, the availability of
funds and our ability to meet future capital needs, the realization of our
deferred tax assets, and the assumptions described in this report underlying
such forward-looking statements. Actual results and developments could differ
materially from those expressed in or implied by such statements due to a number
of factors, including, without limitation, those described in the context of
such forward-looking statements, our expansion and acquisition strategy, our
ability to achieve operating efficiencies, our dependence on network
infrastructure, capacity, telecommunications carriers and other suppliers,
industry pricing and technology trends, evolving industry standards, domestic
and international regulatory matters, general economic and business conditions,
the strength and financial resources of our competitors, our ability to find and
retain skilled personnel, the political and economic climate in which we conduct
operations and the risk factors described from time to time in our other
documents and reports filed with the Securities and Exchange Commission (the
"Commission"). Additional factors that could cause actual results to differ
materially from the forward-looking statements include, but are not limited to:
1) our ability to successfully market the educational software on a timely basis
and in the prescribed condition; 2) our ability to compete effectively with
other companies in the same industry; 3) our ability to raise sufficient capital
in order to effectuate our business plan; and 4) our ability to retain our key
executives.
 
 CRITICAL
ACCOUNTING POLICIES
 
 Revenue
recognition
 
 Revenue
from sales of the Company’s products is recognized when the significant risks
and rewards of ownership have been transferred to the customers at the time when
the products are delivered to and accepted by them, the sales price is fixed or
determinable and collection is reasonably assured.
 
 Inventories
 
 Inventories
are stated at the lower of cost or market.  Cost is determined on a
first in first out basis and includes all expenditures incurred in bringing the
goods to the point of sale and putting them in a saleable
condition.  In case of manufacturing inventories, cost includes an
appropriate share of production overheads based on normal operating
capacity.  In assessing the ultimate realization of inventories, the
management makes judgments as to future demand requirements compared to current
or committed inventory levels.  The Company estimates the demand
requirements based on market conditions, forecasts prepared by its customers,
sales contracts and orders in hand.
 
 In
addition, the Company estimates net realizable value based on intended use,
current market value and inventory ageing analyses.  The Company
writes down the inventories for estimated obsolescence or unmarketable
inventories equal to the difference between the cost of inventories and the
estimated market value based upon assumptions about future demand and market
conditions.
 
 Based on
the above assessment, the Company establishes a general policy to make a 10%
provision for inventories aged over 1 to 2 years, a 25% provision for
inventories aged over 2 to 3 years and a 35% provision for inventories aged over
3 years.
 
 Warranty
 
 The
Company maintains a policy of providing after sales support for certain products
by way of a warranty program. The Company provided 3 years warranties for the
software products to certain customers.  Further, the relevant
customers are allowed to defer the settlement of certain percentage (normally
5%) of the billed amount for certain period of time (normally three year) after
acceptance of the Company’s products under the warranty program.  As
of September 30, 2008 and December 31, 2007, such receivables amounted to
$14,974 and $14,035 respectively and are included in trade
receivables.
 
 Since the
aforementioned products were well developed, the Company did not encounter any
claims from such customers.  Accordingly, the Company did not maintain
a warranty reserve during the reporting periods.  However, the Company
will periodically assess the estimation of its warranty liability and recognize
the reserve when necessary based on the actual experience.
 
 11
 Table of Contents
  Revenues
 
 Net
revenues were $695,307 and $2,576,508 for the three and nine months ended
September 30, 2008, respectively, increased by $650,617, and $2,217,245,
compared to net revenues of $44,690 and $359,263 for the same periods ended
September 30, 2007, respectively. Approximately 70% and 61% revenues for the
three and nine months ended September 30, 2008, respectively, were generated
from the sales of educational software developed by Haoyu. The software employs
the advanced technology in data collection, sensor and wireless control and
portable video equipment, which can virtually upload the live experiment and
analyze the information collected. Accordingly, teachers and students can have
the experiments done automatically instead of the traditional manual method.
This high quality control system has been recommended specifically by the
ministry of education for school experiments. We are also engaged in sales of
hardware and computer products such as monitors and computer notebooks, which
are approximately 30% and 39% of total revenues for the three and nine months
ended September 30, 2008, respectively.
 
 We expect
sales to increase during 2008 due to the enhancement of China’s education
reform, which emphasizes improving students’ practical ability. Our educational
software is specially designed to meet the new standard of China’s education
reform.
 
 Income /
Loss
 
 We had
net income of $259,204 and $941,915 for the three and nine months ended
September 30, 2008, respectively, due primarily to the increase in sales of our
educational software, resulting in sufficient gross profit to cover the
operating expenses. In addition, we had subsidy from the government, which was
$68,778 and $233,567 for the three and nine months ended September 30, 2008,
respectively. Comparatively, the net loss was $74,072 and $164,268 for the same
periods ended September 30, 2007, respectively, attributable to the small sales
revenue at the developing stage of our software.
 
 We expect
to gain more market shares and remain profitable during fiscal year 2008 due to
the enhancement of China’s education reform, which emphasizes improving
students’ practical ability. Our educational software is specially designed to
meet the new standard of China’s education reform. However, there can be no
assurance that we will achieve or maintain profitability, or that any revenue
growth will take place in the future.
 
 Expenses
  Operating
expenses for the three and nine months ended September 30, 2008 were $189,858
and $397,813, respectively, increasing by $121,150 and $128,112 compared to the
operating expenses of $68,708 and $269,701 during the same periods ended
September 30, 2007, respectively. The high operating expenses during the three
and nine months ended September 30, 2008 were due primarily to the increase in
general and administrative expenses, which were $126,551 and $236,613,
respectively, and research and development expenses, which were $43,762 and
$106,193, respectively.
 
 Cost of
Sales
  Cost
of sales consisted of cost of hardware and software at a ratio of approximately
7:3. An appropriate share of overheads based on normal operating capacity, such
as product delivery and direct labor, were included. We had $231,858 in cost of
sales, or approximately 33% of sales, and $1,170,573 in cost of sales, or
approximately 45% of sales, during the three and nine months ended September 30,
2008, respectively. Since approximately 70% of total cost of sales is in
connection with hardware, we expect to lower the cost of sales by collaborating
with more hardware suppliers to build up a buyer market favor to
us.
 Impact of
Inflation
 
 We believe that inflation has had a
negligible effect on operations during this period. We believe that we can
offset inflationary increases in the cost of sales by increasing sales and
improving operating efficiencies.
 
 Liquidity and Capital
Resources
 
 Cash flows used in operating activities
were $192,057 and $128,802 for the nine months ended September 30, 2008 and
2007, respectively. Negative cash flows from operations for the nine months
ended September 30, 2008 were due primarily to the increase in trade receivables
by $786,533, the increase in other receivables and prepayments by $216,993 and
the decrease in trade payables by $630,528, partially offset by net income of
$941,915 and increase in income tax payable by $288,819. Negative cash flows
from operations for the nine months ended September 30, 2007 were due primarily
to the net loss of $164,268, plus the increase in other receivables and
prepayments by $255,490, partially offset by the increase in trade payables by
$230,851.
 
 Cash flows used in investing activities
were $8,094 and $5,199 for the nine months ended September 30, 2008 and 2007,
respectively, which were due primarily to the purchase of property and equipment
in both periods.
 
 Cash flows provided by financing
activities were $244,816 and $99,012 for the nine months ended September 30,
2008 and 2007, respectively.  Positive cash flows from financing
activities during the nine months ended September 30, 2008 were due primarily to
the bank loan of $428,639, which were secured by a guarantor with interest at
110% of the benchmark rate of the People’s Bank of China (the “PBOC”) for
six-month to one-year short-term loans per annum. Positive cash flows from
financing activities during the nine months ended September 30, 2007 were due
primarily to the advances from a director.
 
 We project that we will need additional
capital to fund operations over the next 12 months. We anticipate we will need
an additional $250,000 in working capital during 2008 and $700,000 for the two
years thereafter.
  Overall,
we have funded our cash needs from inception through September 30, 2008 with a
series of debt and equity transactions, primarily with related parties. If we
are unable to receive additional cash from our related parties, we may need to
rely on financing from outside sources through debt or equity transactions. Our
related parties are under no legal obligation to provide us with capital
infusions. Failure to obtain such financing could have a material adverse effect
on operations and financial condition.
 
 We
had cash of $190,894 on hand as of September 30, 2008. Currently, we have enough
cash to fund our operations for about six months. This is based on current cash
flows from financing activities, working capital surplus and projected revenues.
However, if the projected revenues fall short of needed capital we may not be
able to sustain our capital needs. We will then need to obtain additional
capital through equity or debt financing to sustain operations for an additional
year. Our current level of operations would require capital of approximately
$250,000 to sustain operations through year 2008 and approximately $700,000 per
year thereafter. Modifications to our business plans may require additional
capital for us to operate. For example, if we are unable to raise additional
capital in the future we may need to curtail our number of product offers or
limit our marketing efforts to the most profitable geographical areas. This may
result in lower revenues and market share for us. In addition, there can be no
assurance that additional capital will be available to us when needed or
available on terms favorable to us.
  On
a long-term basis, liquidity is dependent on continuation and expansion of
operations, receipt of revenues, and additional infusions of capital and debt
financing. Our current capital and revenues are insufficient to fund such
expansion. If we choose to launch such an expansion campaign, we will require
substantially more capital. The funds raised from this offering will also be
used to market our products and services as well as expand operations and
contribute to working capital. However, there can be no assurance that we will
be able to obtain additional equity or debt financing in the future, if at all.
If we are unable to raise additional capital, our growth potential will be
adversely affected and we will have to significantly modify our plans. For
example, if we unable to raise sufficient capital to develop our business plan,
we may need to:
 
 ·
              Curtail
      new product launches
 
 ·
              Limit
      our future marketing efforts to areas that we believe would be the most
      profitable.
 
 Demand
for the products and services will be dependent on, among other things, market
acceptance of our educational software, China’s educational market in general,
government policies and general economic conditions, which are cyclical in
nature. Inasmuch as a major portion of our activities is the receipt of revenues
from the sales of our products, our business operations may be adversely
affected by our competitors and prolonged recession periods.
 
 Our
success will be dependent upon implementing our plan of operations and the risks
associated with our business plans. We are dedicated to developing lab
experiment products that employ the advanced technology in data collection,
sensor and wireless control and portable video equipment, which can virtually
upload the live experiment and analyze the information collected. We plan to
strengthen our position in China’s educational market. We also plan to expand
our operations through aggressively marketing our products and our concept.
  12
 Table of Contents
  ITEM 3. QUANTITATIVE ANDQUALITATIVE DISCLOSURES ABOUTMARKET RISK
 
 The
information to be reported under this item is not required of smaller reporting
companies.
  ITEM
4. CONTROLS AND PROCEDURES.
  We
maintain disclosure controls and procedures designed to ensure that information
required to be disclosed in reports filed under the Securities Exchange Act of
1934 (“Exchange Act”) is recorded, processed, summarized and reported within the
specified time periods. Our Chief Executive Officer and our Chief Financial
Officer (collectively, the “Certifying Officers”) are responsible for
maintaining our disclosure controls and procedures. The controls and procedures
established by us are designed to provide reasonable assurance that information
required to be disclosed by the issuer in the reports that it files or submits
under the Exchange Act are recorded, processed, summarized and reported within
the time periods specified in the Commission’s rules and forms.
  During the nine months ended September 30, 2008, our Certifying Officers
evaluated the effectiveness of our disclosure controls and procedures as of the
end of the period covered by this report. Based on the evaluation, the
Certifying Officers concluded that our disclosure controls and procedures were
effective to provide reasonable assurance that information required to be
disclosed by us in the reports that we file or submit under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified
in the applicable rules and forms, and that it is accumulated and communicated
to our management, including the Certifying Officers, as appropriate to allow
timely decisions regarding required disclosure. These conclusions
notwithstanding you are advised that no system is 100%
foolproof.
 
 Changes
in Internal Control over Financial Reporting
  There
were no changes in the our internal control over financial reporting that
occurred during the period covered by this report that have materially affected,
or are reasonably likely to materially affect, our internal control over
financial reporting.
 
 PART
II. OTHER INFORMATION
 
 ITEM
1.      LEGAL PROCEEDINGS
 
 None.
  ITEM
1A. RISK FACTORS
  Information
regarding risk factors appears in Part I, “Item 2. Management’s Discussion
and Analysis of Financial Condition and Results of Operations” under the
captions “General Description of Business” and “Cautionary Note Regarding
Forward-Looking Statements” contained in this Quarterly Report on Form 10-Q and
in “Item 1A. RISK FACTORS” of our 2007 Annual Report on Form 10-KSB. There
have been no material changes from the risk factors previously disclosed in our
2007 Annual Report on Form 10-KSB.
  ITEM
2.      CHANGES IN SECURITIES
 
 Pursuant
to the Plan of Exchange, dated March 4, 2008, between and among the Company,
ADDE, the majority stockholder of the Company and the stockholder of ADDE,
20,000,000 shares of the Company’s common stock and 1,350,000 shares of the
Company’s preferred stock were issued to the stockholders of ADDE on July 31,
2008.
 
 On October 9, 2008,the Board of
Directors of the Company authorized and approved a reverse stock split of the
common stock of the Company on the basis of one (1) share for each eight (8)
shares currently authorized or issued and outstanding. Accordingly, the number
of authorized shares of common stock decreased from 400,000,000 shares to
50,000,000 shares and a Certificate of Change was filed with the Secretary of
State on Nevada on October 13, 2008.
  ITEM
3.      DEFAULTS UPON SENIOR SECURITIES
 
 None.
 
 ITEM
4.      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
 
 None.
 
 ITEM
5.      OTHER INFORMATION
 
 None.
 
 ITEM
6. EXHIBITS AND REPORTS ON FORM 8-K
 
 (1)
              Exhibits: Exhibits required to be attached
      by Item 601 of Regulation S-B are listed in the Index to Exhibits
      Beginning on page 8 of this Form 10-Q, which is incorporated herein by
      reference.
  Reports on
Form 8-K filed in the third quarter of 2008
 
 (1)
              On
      August 1, 2008, we filed a current report on Form 8-K to announce the
      completion of the transaction with ADDE EDUCATION HLDS LTD., a corporation
      organized and existing under the laws of Hong Kong Special Administrative
      Region of People’s Republic of
China.
 
 (2)
              On
      August 8, 2008, we filed a current report on Form 8-K to announce the
      appointment of our Chief Financial
Officer.
 
 (3)
              On
      August 13, 2008, we filed an amendment to the current report, which was
      initially filed on August 1, 2008, on Form 8-K/A to correct the
      information regarding the appointment of our Chief Financial
      Officer.Reports on Form 8-K filed
      subsequent to the third quarter of 2008(4)
              On
      October 9, 2008, we filed a current report on Form 8-K to announce the
      change in our Chief Financial Officer.(5)
              On
      October 21, 2008, we filed a current report on Form 8-K to announce the
      change in our registrant’s certifying
  accountant.
  13
 Table of Contents
  SIGNATURES
 
 Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, there
unto duly authorized.
  
 ENVIROSAFE
      CORP.Date:
      November 14, 2008
              By:
              /s/ Guo,
      Yan BinGuo,
      Yan Bin
                President
  14
 Table of Contents
  INDEX
TO EXHIBITS
  Exhibit
      No.
              
              Description31.1
              
              Certification of Chief
      Executive Officer31.2
              
              Certification of Chief
      Financial Officer32.1
              
              Statement required by 18
      U.S.C. Section 1350, as adopted pursuant to section 906 of the
      Sarbanes-Oxley Act of 2002.32.2
              
              Statement required by 18
      U.S.C. Section 1350, as adopted pursuant to section 906 of the
      Sarbanes-Oxley Act of
2002