UNITED STATES

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

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 ~~March~~December 31, 2008

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

For the transition period from __________________ to __________________

Commission File Number: 000-51818

ENVIRONMENT ECOLOGY HOLDING COMPANY OF CHINA

COMPANY OF CHINA

(Exact name of small business issuer as specified in its charter)

FLORIDA	20-4200300
Florida		20-4200300
(State or other jurisdiction of	(IRS Employer Identification No.)
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)
incorporation or organization)

391 Hua Yu Lane, Dong Xin Street

Xi'an, Shaanxi Province, P.R.China (Address of principal executive offices)

(~~Address~~8629) 8826-5109 of (Issuer's ~~principal~~telephone ~~executive offices~~number)

Check whether the issuer (~~8629~~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 last 90 days. ~~8826-5109~~ YESx •NO ¨

~~(Issuer's~~Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer, “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule ~~telephone~~ 12b-2 ~~number)~~of the Exchange Act.

~~Indicate by~~Large ~~check~~accelerated ~~mark~~filer ~~whether~~¨ ~~the~~Accelerated ~~registrant~~filer ~~(1)~~¨ ~~has~~Non-accelerated ~~filed~~filer ~~all~~¨ ~~reports~~Smaller ~~required~~reporting ~~to be filed~~company 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 [ ]x

Indicate by check mark whether the registrant is a ~~large~~shell ~~accelerated~~company ~~filer,~~(as ~~an accelerated~~defined ~~filer,~~in aRule ~~non~~12b-~~accelerated~~2 ~~filer,~~of orthe aExchange ~~smaller reporting company~~Act). YES¨ NO x

~~Large accelerated~~State ~~filer~~the [number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 33,162,114 shares issued and ~~] Accelerated~~ outstanding ~~filer~~as [of ]February 19, 2009 and additional 50,000,000 shares issued and held in an escrow account as collateral for the investment transaction between the issuer and Trafalgar Capital Specialized Investment Fund, Luxembourg.

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]

Number of shares of common stock outstanding as of May 19, 2008: 30,662,114

Number of shares of preferred stock outstanding as of May 19, 2008: 100,000

Table of Contents

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

The discussion contained in this 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 Consolidated 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.

2On this Form 10Q quarterly report, the registrant, Environment Ecology Holding Company of China, is hereinafter referred as "we", or "Company", or "EVEH".

TABLE OF CONTENTS PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS 4 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION 15 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 18 ITEM 4. CONTROLS AND PROCEDURES 18 PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS 18 ITEM 1A.RISK FACTORS 18 ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS 18 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 18 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 18 ITEM 5. OTHER INFORMATION 18 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 18 SIGNATURES ~~19 INDEX TO EXHIBITS 20~~

3ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

~~Table of~~ENVIRONMENT ~~Contents~~ECOLOGY HOLDING COMPANY OF CHINA (Unaudited and Unreviewed) Condensed Consolidated Financial Statements For The Six Months Ended December 31, 2008

~~ITEM 1. CONSOLIDATED~~ENVIRONMENT ~~FINANCIAL STATEMENTS~~ECOLOGY HOLDING COMPANY OF CHINA

INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~(UNAUDITED)~~Condensed Consolidated Balance Sheets as of December 31, 2008 and June 30, 2008 Condensed Consolidated Statements of Operations And Comprehensive Income for the Six Months ended December 31, 2008 Condensed Consolidated Condensed Consolidated Statements of Cash Flows for the Six Months ended December 31, 2008 Notes to Condensed Consolidated financial Statements

		Page
Environment Ecology Holding Company of China
Condensed Consolidated Balance Sheets as of March 31, 2008 and June 30, 2007		F-5
Condensed Consolidated Balance Sheet (Unaudited and Unreviewed)
Condensed Consolidated Statements of Operations And Comprehensive Income for the three and nine months ended March 31, 2008		F-6
As of December 31, 2008 and June 30, 2008
Condensed Consolidated Statements of Cash Flows for the three and nine months ended March 31, 2008		F-7
(Expresed in US Dollars, except for number of shares)
Condensed Consolidated Statements of Stockholders’ Equity for the nine months ended March 31, 2008		F-8
				December 31, 2008		June 30, 2008
Notes to Condensed Consolidated Financial Statements		F-9 to F-14
ASSETS				(Unaudited)		(Audited)
CURRENT ASSETS
	Cash and cash equivalents		$	2,390,163	$	6,420,881
	Billed accounts receivable			1,395,125		1,533,342
	Unbilled accounts receivable			2,409,680		1,568,800
	Other receivables and prepayments			-		41,667
		TOTAL CURRENT ASSETS		6,194,968		9,564,690
FIXED ASSET
	Proporty, plant & machinery			399,681		442,322
	Investment deposit			4,376,878		-
	Investment in plantation			1,321,934		-
	Technical knowhow			154,650		162,985
		TOTAL NON-CURRENT ASSETS		6,253,143		605,307
		TOTAL ASSETS	$	12,448,111	$	$ 10,169,997
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
	Accounts payable		$	-	$	-
	Income tax payable			119,970		132,827
	Deferred tax liabilities			918,600		810,684
	Amount due to stockholders			93,267		34,836
	Other payables and accrued liabilities			1,533,364		651,968
		TOTAL CURRENT LIABILITIES		2,665,201		1,630,315
NON-CURRENT LIABILITIES
	Redeemable debenture			1,012,236		1,186,737
TOTAL LIABILILITES				3,677,437		2,817,052
MINORITY INTEREST				468,519		360,081
STOCKHOLDERS' EQUITY
	Perferred stock, $0.001 par value; 100,000 shares authorized; 100,000 shares issued and outstanding			100		100
	Common stock, $0.001 par value; 100,000,000 shares authorized; 30,662,114 and 28,662,114 shares issued and outstanding respectively			33,162		33,162
	Additional paid-in capital			2,736,549		2,736,549
	Deferred compensation			-		-
	Subscription receivable
	Accumulated other comprehensive income			648,932		630,329
	Statutory reserve			431,332		278,606
	Retained earnings			4,452,080		3,314,118
		TOTAL STOCKHOLDERS' EQUITY		8,302,155		6,992,864
		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	12,448,111	$	$ 10,169,997
The accompanying notes are an integral part of these consolidated financial statements

Environment Ecology Holding Company of China
Condensed Consolidated Statement of Operations and Comprehensive Income (Unaudited and Unreviewed)
*For The Three And Six Months Ended December 31, 2008 AND 2007*
*(Expresed in US Dollars, except for number of shares)*

				3 months ended December 31,				6 months ended December 31,
				2008		2007		2008		2007

REVENUES:				5,466,052		2,030,058		10,512,416		3,186,022

COST OF REVENUES:				3,527,252		1,379,544		7,437,280		2,141,361

		GROSS PROFIT		1,938,800		650,514		3,075,136		1,044,661

OPERATING EXPENSES:
	Consulting and professional fees			-		91,357		-		317,969
	Research and development			-		93,180		-		93,180
	(Reversal of) allowance for doubtful accounts			-		(106,116)		-		(106,116)
	General and administrative			511,494		35,827		643,865		177,968
		TOTAL OPERATING EXPENSES		511,494		114,248		643,865		483,001

		INCOME FROM OPERATIONS		1,427,306		536,266		2,431,271		561,660

OTHER INCOME:(expenses)
	Other income			-		-		-		-
	Interest expense			(207,678)		-		(419,359)
	Interest income			831		782		1,578		819
		TOTAL OTHER INCOME (EXPENSES)		(206,847)		782		(417,781)		819

INCOME FROM OPERATIONS				1,220,459		537,048		2,013,490		562,479

Income tax expense				(345,559)		(101,230)		(614,936)		(192,644)
Minority interest				(59,801)		(33,949)		(107,866)		(45,141)

		NET INCOME	$	815,099	$	401,869	$	$ 1,290,688	$	324,694

Other comprehensive income:
Foreign currency translation gain				134		85,578		18,603		121,405

Comprehensive income			$	815,233	$	487,447	$	1,309,291	$	446,099

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

~~Table~~ Environment Ecology Holding Company of ~~Contents~~China

~~ENVIRONMENT ECOLOGY~~CONSOLIDATED ~~HOLDING~~STATEMENTS ~~COMPANY~~ OF ~~CHINA~~STOCKHOLDERS’ EQUITY (UNAUDITED AND UNREVIEWED)

~~(FORMERLY DISPATCH~~FOR ~~AUTO~~THE ~~PARTS~~PERIODS ENDED DECEMBER 31, ~~INC.)~~2008

~~CONDENSED CONSOLIDATED~~(Currency ~~BALANCE~~expressed ~~SHEETS~~in United States Dollars (“US$”), except for number of shares)

AS OF MARCH 31, 2008 AND JUNE 30, 2007

	Series “A”									Accumulated
	Preferred Stock			Common stock				Additional		other
	No. of			No. of				paid-in		comprehensive		Statutory		Retained		Total
	share		Amount	share		Amount		capital		income		reserve		earnings		equity

Balance as of
June 30, 2008	100,000	$	100	33,162,114	$	33,162	$	2,736,549	$	630,329	$	278,606	$	3,314,118	$	6,992,864


Net income
for the period	--		--	--		--		--		--		--		1,290,688		1,290,688


Provision of
statutory
reserve	--		--	--		--		--		--		152,726		152,726		--


Foreign
currency
adjustment	--		--	--		--		--		18,603		--		--		18,603


Balance as of
December 31, 2008	100,000	$	100	33,162,114	$	33,162	$	2,736,549	$	648,932	$	431,332	$	4,452,080	$	8,302,155

~~(Currency expressed~~The inaccompanying ~~United~~notes ~~States~~are ~~Dollars~~an ~~(“US$”),~~integral ~~except~~part ~~for~~of ~~number~~these ~~of shares)~~consolidated financial statements

		March 31, 2008				June 30, 2007
	Environment Ecology Holding Company of China Condensed Consolidated Statement of Cash Flows (Unaudited and Unreviewed) For The Six Months Period Ended December 31, 2008
		(unaudited)				(audited)
						6 months ended December 31, 2008
ASSETS
						Total
Current assets:
						USD
Cash and cash equivalents		$	2,968,254			$	2,775,361
Cash Balance, Beginning of Year						6,420,881.25
Billed accounts receivable, net			498,419				103,953
CASH FLOWS FROM OPERATING ACTIVITIES:
Unbilled accounts receivable			1,940,517				98,804
	Net income					1,290,687.65
Amount due from stockholders			-				39,080
	Adjustments to reconcile net income to net
Other receivables and prepayments			-				2,100
	cash provided by (used in) operating activities:
Total current assets			5,407,190				3,019,298
		Depreciation				45,577.00
Property, plant and equipment, net			454,988				470,960
		Amortization				8,756.00
Intangible asset			170,887				-
		Discount of finance cost				244,440.00
TOTAL ASSETS		$	6,033,065			$	3,490,258
		Stock-based compensation				-
LIABILITIES AND STOCKHOLDERS’ EQUITY
		Rental expenses, non-cash				-
Current liabilities:
		Deferred tax (benefit) expenses				105,851.00
Accounts payable		$	-			$	393,455
		Minority interest				107,866.00
Deferred tax liabilities			590,958				-
		Changes in operating assets and liabilities
Income tax payable			349,366				201,545
				Billed accounts receivable		142,179.00
Amount due to stockholders			35,264				-
				Inventory		-
Other payables and accrued liabilities			358,592				79,724
				Unbilled accounts receivable		(836,998.00)
Total current liabilities			1,334,180				674,724
				Income tax credit		-
MINORITY INTEREST			239,290				141,044
				Other receivables and prepayments		-
Commitments and contingencies
				Prepayment		41,667.00
Stockholders’ equity:
				Receipt in advance		(61,542.00)
Preferred stock, $0.001 par value; 100,000 shares authorized; 100,000 shares issued and outstanding			100				100
				Income tax payable		(13,198.00)
Common stock, $0.001 par value; 100,000,000 shares authorized; 30,662,114 and 28,662,114 shares issued as of March 31, 2008 and June 30, 2007			30,662				28,662
				Other payables and accrued liabilities		941,482.57
Additional paid-in capital			2,191,732				1,151,049
			NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES			2,016,768.22
Deferred compensation			(119,179	)			(236,250	)
CASH FLOWS FROM INVESTING ACTIVITIES
Stock subscription receivables			(765,000	)			-
		Payments to investment deposit				(4,377,645.00)
Accumulated other comprehensive income			467,731				168,372
		Expenditure in plantation investment				(1,322,165.00)
Statutory reserves			239,955				155,661
		Purchase of property, plant and equipment				(1,792.00)
Retained earnings			2,413,594				1,406,896
			NET CASH (USED IN) INVESTING ACTIVITIES			(5,701,602.00)
Total stockholders’ equity			4,459,595				2,674,490
CASH FLOWS FROM FINANCING ACTIVITIES
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	6,033,065			$	3,490,258
		Repayment of debenture				(418,940.66)
		Advance from stockholders				58,389.31
		Amount due from stockholders				-
		Amount due from inter-co				-
		Amount due to inter-co				-
			NET CASH PROVIDED BY FINANCING ACTIVITIES			(360,551.35)
Foreign currency translation adjustment						14,666.88
			NET INCREASE IN CASH AND CASH EQUIVALENTS			(4,030,718.25)
CASH AND CASH EQUIVALENTS:
			End of period		$	2,390,163.00
						0.00
Supplemental disclosures of cash flow information:
Cash paid for interest					$	60,764
Cash paid for income taxes					$	628,134
				The accompanying notes are an integral part of these consolidated financial statements

~~See accompanying~~NOTE ~~notes~~- to1 BASIS ~~condensed~~OF ~~consolidated financial statements.~~PRESENTATION

5The accompanying unaudited and unreviewed condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, the consolidated balance sheet as of June 30, 2008 which has been derived from audited financial statements and these unaudited and unreviewed condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended December 31, 2008 are not necessarily indicative of the results to be expected for the entire fiscal year ending June 30, 2009 or for any future period. These unaudited and unreviewed condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended June 30, 2008.

~~Table of~~NOTE ~~Contents~~- 2 ORGANIZATION AND BUSINESS BACKGROUND

~~ENVIRONMENT~~Environment Ecology Holding Company of China (the “Company”) was incorporated under the laws of the State of ~~ECOLOGY~~Florida ~~HOLDING~~on ~~COMPANY~~September OF14, ~~CHINA~~1989 as “First New York Investments, Inc.” On November 25, 1996, the Company changed its name to “Computer Access International, Inc.” On March 31, 2005, the Company changed its name to “Dispatch Auto Parts, Inc.” On November 2, 2007, the Company further changed its name to “Environment Ecology Holding Company of China.”

~~(FORMERLY DISPATCH~~The ~~AUTO~~Company, ~~PARTS~~through its subsidiaries, ~~INC~~mainly engages in the provision of landscape engineering service in the PRC.)

~~CONDENSED~~On November 8, 2006, the Company entered a stock exchange transaction with Shaanxi Lv Bao Environmental Eco Industry Management Ltd. (“Lv Bao”) ~~CONSOLIDATED~~and ~~STATEMENTS~~the OFtransaction ~~OPERATIONS~~was effectively completed on February 6, 2007. Lv Bao was registered as a limited liability company in the People’s Republic of China (the “PRC”) on August 11, 2006 with its principal place of business in Xian City, Shaanxi Province, the PRC. Its registered capital is Renminbi Yuan (“RMB”) 5,000,000 (equivalent to $628,773). Its principal activity was investment holding in Shaanxi Li Bao Sheng Tai Ke Ji Gu Fen You Xian Gong Si (“Li Bao”). Upon completion of the plan of exchange, Lv Bao became a wholly-owned subsidiary of the Company.

~~AND~~On August 30, 2006, the owners of Lv Bao entered into an exchange agreement with the owners of Li Bao. This exchange transaction involved that Li Bao’ s equity owners transferred the aggregate equity interest of 93.57% of the registered capital of Li Bao ( equivalent to RMB65,500,000) to Lv Bao . The transaction was an ~~COMPREHENSIVE~~exchange ~~INCOME~~of shares and no cash or other assets were exchanged in the transaction was taken place. Following the completion of the equity transfer, Li Bao became an operating subsidiary of Lv Bao with 93.57% controlling interest.

~~FOR~~The above two consecutive transactions have been accounted for as a reverse acquisition and recapitalization of the Company, through a wholly-owned subsidiary, Lv Bao, whereby Li Bao is deemed to be the ultimate accounting acquirer (legal acquiree) and the Company to be the ultimate accounting acquiree (legal acquirer). ~~THE~~The ~~THREE~~accompanying ~~AND~~consolidated ~~NINE~~financial ~~MONTHS~~statements ~~ENDED~~are ~~MARCH~~in 31substance those of Li Bao, ~~2008~~with ~~AND~~the ~~2007~~assets and liabilities, and revenues and expenses, of the Company being included effective from the date of stock exchange transaction. The Company is deemed to be a continuation of the business of Li Bao, through its immediate holding company, Lv Bao.

~~(Currency~~Starting from January 1, 2008, the Company has commenced in the operation in Walnut plantation. ~~expressed~~EVEH, inLv ~~United~~Bao ~~States~~and ~~Dollars~~Li Bao are hereinafter referred to as (the “~~US$~~Company”)).

~~(unaudited)~~NOTE - 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

	Three months ended March 31,						Nine months ended March 31,
	2008			2007			2008			2007
REVENUES, NET:
Projects	$	5,807,891		$	385,966		$	8,993,913		$	2,447,211
Products		1,316,520			-			1,316,520			-
		7,124,411			385,966			10,310,433			2,447,211
COST OF REVENUE:
Projects		3,990,155			241,609			6,131,516			1,573,202
Products		824,062			-			824,062			-
		4,814,217			241,609			6,955,578			1,573,202
GROSS PROFIT		2,310,194			144,357			3,354,855			874,009
OPERATING EXPENSES:
Consulting and professional fees		90,325			13,200			408,294			56,150
Research and development		21,503			-			114,683			-
Allowance for doubtful accounts		475,801			-			369,685			-
General and administrative		93,553			94,101			271,521			314,842
Total operating expenses		681,182			107,301			1,164,183			370,992
INCOME FROM OPERATIONS		1,629,012			37,056			2,190,672			503,017
OTHER INCOME:
Interest income		622			50			1,441			296
INCOME BEFORE INCOME TAXES		1,629,634			37,106			2,192,113			503,313
Income tax expenses		(810,231	)		(80,038	)		(1,002,875	)		(212,999	)
Minority interest		(53,105	)		(5,223	)		(98,246	)		(26,887	)
NET INCOME (LOSS)	$	766,298		$	(48,155	)	$	1,090,992		$	263,427
Other comprehensive income:
- Foreign currency translation gain		177,954			39,766			299,359			46,013
COMPREHENSIVE INCOME	$	944,252		$	(8,389	)	$	1,390,351		$	309,440
Net income per share – Basic and diluted	$	0.02		$	(0.00	)	$	0.04		$	0.01
Weighted average number of shares outstanding during the period – Basic and diluted		30,662,114			27,438,128			30,225,750			26,308,025

Use of estimates

~~See accompanying~~In ~~notes~~preparing tothese ~~condensed~~ consolidated financial statements, management makes estimates and assumptions that affect the reported amount of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates.

6l Basis of consolidation

~~Table~~ The consolidated financial statements include the financial statements of ~~Contents~~EVEH and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

~~ENVIRONMENT ECOLOGY~~l ~~HOLDING~~Revenue ~~COMPANY OF CHINA~~recognition

~~(FORMERLY~~The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectibility is probable. The Company assesses collectibility based upon our clients’ financial condition and prior payment history, as well as our performance under the contract. ~~DISPATCH~~The ~~AUTO~~Company ~~PARTS,~~recognizes ~~INC~~these revenues in the period that the service is provided.)

~~CONDENSED CONSOLIDATED~~(a) Contract ~~STATEMENTS OF CASH FLOWS~~revenue

~~FOR~~The Company applies the percentage-of-completion method under SOP 81-1 “Accounting for Performance of Construction-Type and Production-Type Contracts”, to recognize revenues ~~THE~~for ~~NINE~~landscape ~~MONTHS~~design ~~ENDED~~and ~~MARCH~~engineering 31projects that require significant modification or customization subject to the customers. The Company records a provision in those instances in which the Company believe a contract will probably generate a net loss and the Company can reasonably estimate this loss. If the Company cannot reasonably estimate the loss, ~~2008~~the ~~AND~~Company ~~2007~~limits the amount of revenue that the Company recognizes to the costs the Company has incurred, until the Company can estimate the total loss. Advance payments from customers and amounts billed to clients in excess of revenue recognized are recorded as receipt in advance.

(~~Currency expressed~~b) inSale ~~United~~of ~~States Dollars (“US$”))~~products

The Company derives revenues from the sales and production of walnut products. The Company recognizes its revenues net of value added taxes (~~unaudited~~“VAT”). The Company is subject to VAT at the rate of 6% on the invoiced value of sales. Output VAT is borne by customers in addition to the invoiced value of sales while input VAT is not allowed for deduction from the invoiced value of purchases.

	Nine months ended March 31,
	2008			2007
Cash flows from operating activities:
Net income	$	1,090,992		$	263,427
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Minority interest		98,246			26,887
Depreciation		64,597			78,909
Allowance for doubtful accounts		369,685			-
Rent expense, non-cash		19,663			-
Stock-based compensation		375,091			210,000
Deferred tax expense		532,700			74,360
Changes in operating assets and liabilities:
Billed accounts receivable		(739,370	)		260,856
Unbilled accounts receivable		(1,757,815	)		(671,991	)
Other receivables and prepayments		2,100			-
Accounts payable		(409,641	)		-
Income tax payable		159,103			(147,410	)
Other payables and accrued liabilities		98,956			421,735
Net cash (used in) provided by operating activities		(95,693	)		516,773
Cash flows from investing activities:
Purchase of property, plant and equipment		(10,532	)		(163,958	)
Net cash used in investing activities		(10,532	)		(163,958	)
Cash flows from financing activities:
Cash received from reverse acquisition		-			628,773
Repayments of advances from stockholders		62,881			120,895
Net cash provided by financing activities		62,881			749,668
Effect of exchange rate changes on cash and cash equivalents		236,237			46,013
NET CHANGE IN CASH AND CASH EQUIVALENTS		192,893			1,148,496
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		2,775,361			563,374
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	2,968,254		$	1,711,870
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest expenses	$	-		$	-
Cash paid for income taxes	$	843,772		$	286,049

(c)

Interest income

~~See accompanying~~Interest ~~notes~~income tois ~~condensed~~recognized ~~consolidated~~on ~~financial~~a ~~statements~~time apportionment basis, taking into account the principal amounts outstanding and the interest rates applicable.

7l Cost of revenue

~~Table~~ Cost of ~~Contents~~revenue primarily includes purchase of raw materials for landscape design and engineering projects, manufacturing cost of walnut products, sub-contracting charges and direct overhead.

~~ENVIRONMENT ECOLOGY~~l ~~HOLDING~~Cash ~~COMPANY~~and OFcash ~~CHINA~~equivalents

~~(FORMERLY~~Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of Six Months ~~DISPATCH~~or ~~AUTO~~less ~~PARTS,~~as ~~INC~~of the purchase date of such investments.)

~~CONDENSED CONSOLIDATED~~l ~~STATEMENT~~Billed OFand ~~STOCKHOLDERS’~~unbilled ~~EQUITY~~accounts receivable and allowance for doubtful accounts

~~FOR~~The Company generally bills its customers under its long term contracts pursuant to billing schedules contained in the contracts or, upon completion of agreed milestones or deliveries, with each milestone or delivery typically having a value specified in the contract. An allowance for doubtful accounts is established and ~~THE~~determined ~~NINE~~based ~~MONTHS~~on ~~ENDED~~managements’ ~~MARCH~~assessment of known requirements, aging of receivables, payment history, the customer’s current credit worthiness and the economic environment. As of December 31, 2008, an allowance for doubtful accounts was is not required.

~~(Currency~~ ~~expressed~~Unbilled inaccounts ~~United~~receivable ~~States~~comprise ~~Dollars~~principally ~~(“US$”),~~amounts ~~except~~of revenue recognized on contracts for ~~number~~which ~~of shares)~~invoices have not been issued. It is expected that all unbilled accounts receivable balances will be billed in the next twelve months.

~~(unaudited)~~l Walnut plantation

	Series “A” Preferred Stock				Common stock
	No. of shares		Amount		No. of shares		Amount		Additional paid-in capital		Deferred compensation			Stock subscription receivable			Accumulated other comprehensive income		Statutory reserve		Retained earnings		Total equity
Balance as of July 1, 2007		100,000	$	100		28,662,114	$	28,662	$	1,151,049	$	(236,250	)	$	-		$	168,372	$	155,661	$	1,406,896	$	2,674,490
Fair value of stock options issued for services, non-cash		-		-		-		-		258,020		(106,433	)		-			-		-		-		151,587
Common stock issued for options exercised		-		-		2,000,000		2,000		763,000		-			(765,000	)		-		-		-		-
Rent expenses for office maintained by shareholder, non-cash		-		-		-		-		19,663		-			-			-		-		-		19,663
Recognition of stock-based compensation expenses for the period		-		-		-		-		-		223,504			-			-		-		-		223,504
Net income for the period		-		-		-		-		-		-			-			-		84,294		1,006,698		1,090,992
Foreign currency translation adjustment		-		-		-		-		-		-			-			299,359		-		-		299,359
Balance as of March 31, 2008	$	$ 100,000	$	100	$	30,662,114	$	30,662	$	2,191,732	$	(119,179	)	$	(765,000	)	$	467,731	$	239,955	$	2,413,594	$	4,459,595

Walnut plantation, which includes purchase cost of leasehold land, land improvement cost and saplings, is stated at acquisition cost less accumulated amortization of leasehold land and includes no estimated future reforestation cost. The cost of walnut plantation harvested is based on the volume of walnut harvested in relation to the estimated volume of walnut recoverable. Leasehold land is amortized using the straight-line method over the terms of lease due 2039. The Company estimates its walnut inventory using statistical information and data obtained from physical measurements and other information gathering techniques. The cost of walnut saplings purchased and reforestation costs are capitalized at the time of acquisition. Walnut plantation carrying costs are expensed as incurred. The value of the walnut plantation will be reviewed each reporting period and should be tested for impairment.

~~See accompanying~~l ~~notes~~Property, toplant ~~condensed~~and ~~consolidated financial statements.~~equipment

8Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

Table of Contents

	Depreciable life	Residual value
Leasehold improvement	10 years	5%
Plant and machinery	10 years	5%
Motor vehicles	10 years	5%
Office equipment	5 years	5%

~~ENVIRONMENT~~Expenditure for repairs and maintenance is expensed as incurred. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. ~~ECOLOGY~~ Depreciation ~~HOLDING~~expense ~~COMPANY~~for OFthe ~~CHINA~~Six Months ended December 31, 2008 and 2007 were $22,694 and $26,051, respectively.

~~(FORMERLY DISPATCH~~l ~~AUTO~~Intangible ~~PARTS, INC.)~~asset

~~NOTES~~Intangible asset refers to the purchased technical know-how in the Walnut plantation technology acquired from the Research Center in the PRC, an independent third party at its historical cost. Purchased technical know-how includes secret formulas, manufacturing processes, technical and procedural manuals to operate the walnut TO plantation ~~CONDENSED~~business. ~~CONSOLIDATED~~Amortization ~~FINANCIAL~~is ~~STATEMENTS~~calculated on the straight-line basis over the expected useful life of 10 years. Amortization expense for the Six Months ended December 31, 2008 and 2007 were $4,372 and $0, respectively.

~~FOR THE~~l ~~NINE~~Valuation ~~MONTHS~~of ~~ENDED~~long-lived ~~MARCH 31, 2008 AND 2007~~assets

~~(Currency expressed~~Long-lived inassets ~~United~~primarily ~~States~~include ~~Dollars~~property, plant and equipment, walnut plantation and intangible asset. In accordance with Statement of Financial Accounting Standard ("SFAS") SFAS No. 144, “~~US$~~Accounting for the Impairment or Disposal of Long-Lived Assets”)), the Company periodically reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flow analysis. Determining the fair value of long-lived assets includes significant judgment by management, and different judgments could yield different results. There has been no impairment as of December 31, 2008 or 2007.

~~(unaudited)~~l Research and development

~~NOTE－1~~Research ~~BASIS~~and OFdevelopment ~~PRESENTATION~~costs are expensed as incurred in the development of new processes including significant improvements and refinements of existing products. Such costs mainly relate to labor and material cost. The Company incurred $498,604 and $0 of such costs during the Six Months ended December 31, 2008 and 2007.

~~The accompanying~~l ~~unaudited~~Comprehensive condensed consolidated financial statements have been prepared in accordance with both generally accepted accounting principles for interim financial information, and the instructions to Form 10-Q and Rule 10-01of Regulation S-X. Accordingly, they do not include all of theinformation and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying unaudited condensed consolidated financial statementsreflect all adjustments (consisting of normal recurring accruals) that are, in the opinion of management, considered necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year.income

~~The condensed consolidated financial statements~~SFAS ~~and~~No. ~~related disclosures~~130, ~~have~~“Reporting ~~been~~Comprehensive ~~prepared~~Income”, ~~with~~establishes ~~the~~standards ~~presumption~~for ~~that~~reporting ~~users~~and display of ~~the~~comprehensive ~~interim~~income, its components and accumulated balances. ~~financial~~Comprehensive ~~information~~income ~~have~~as ~~read~~defined orincludes ~~have~~all ~~access~~changes toin ~~our~~equity ~~annual~~during ~~audited consolidated financial statements~~the ~~for~~period ~~the~~from ~~preceding fiscal year~~non-owner sources. ~~Accordingly,~~ ~~these~~Accumulated ~~condensed~~comprehensive ~~consolidated financial statements~~income, ~~should~~as bepresented ~~read~~ in ~~conjunction~~ ~~with~~ the accompanying consolidated ~~financial statements~~statement ~~and~~of ~~the~~stockholders’ ~~related notes~~equity ~~thereto~~consists ~~contained~~ of changes in ~~theAnnual Report~~ unrealized gains and losses on ~~Form~~foreign ~~10-KSB~~currency ~~for~~ translation. This comprehensive income is not included in the ~~yearended June 30,~~computation ~~2007~~of income tax expense or benefit.

~~NOTE－2~~l ~~ORGANIZATION~~Income ~~AND BUSINESS BACKGROUND~~taxes

~~Environment Ecology~~The ~~Holding~~ Company ofaccounts ~~China (the~~for income tax using SFAS No. 109 “~~Company~~Accounting for Income Taxes”~~) was incorporated under~~, ~~the~~which ~~laws of~~requires the ~~State~~asset ofand ~~Florida~~liability onapproach ~~September~~for ~~14,~~financial ~~1989~~accounting ~~as“First New~~and ~~York~~reporting ~~Investments, Inc~~for income taxes.” OnUnder ~~November 25,~~this ~~1996~~approach, deferred income taxes are provided for the ~~Company~~estimated ~~changed its~~future ~~name~~ tax effects attributable to ~~“Computer Access~~ ~~International, Inc.”~~temporary Ondifferences ~~March~~between ~~31,~~financial ~~2005~~statement carrying amounts of assets and liabilities and their respective tax bases, and for the ~~Company~~expected ~~changed~~future ~~its~~tax ~~name~~benefits tofrom ~~“Dispatch~~loss ~~Auto~~carry-forwards ~~Parts~~and provisions, ~~Inc~~ if any.” OnDeferred ~~November~~tax 2,assets ~~2007,~~and liabilities are measured using the ~~Company~~enacted ~~further~~tax ~~changed~~rates ~~its~~expected ~~name~~in tothe ~~“Environment~~years of ~~Ecology~~recovery ~~Holding~~or ~~Company~~reversal and the effect from a change in tax rates is recognized in the consolidated statement of ~~China~~operations and comprehensive income in the period of enactment.” A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized.

~~On November 8~~The Company also adopts Financial Accounting Standards Board ("FASB") Interpretation No. (FIN) 48, ~~2006~~"Accounting for Uncertainty in Income Taxes" and FSP FIN 48-1, ~~the~~which amended certain ~~Company entereda stock exchange~~provisions ~~transactionwith~~of ~~Shaanxi~~FIN Lv48. ~~Bao Environmental Eco~~FIN ~~Industry~~48 ~~Management~~clarifies ~~Ltd~~the accounting for uncertainty in income taxes recognized in the financial statements in accordance with SFAS No. (109, “LvAccounting ~~Bao~~for Income Taxes.”) ~~and~~FIN 48 provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the ~~transaction~~position ~~was~~will ~~effectively~~be ~~completed~~sustained onupon ~~February~~examination, 6including resolutions of any related appeals or litigation processes, ~~2007~~based on the technical merits. LvIncome ~~Bao~~tax ~~was~~positions ~~registered~~must asmeet a ~~limited liability~~more-likely-than-not ~~company~~recognition inthreshold at the ~~People’s~~effective ~~Republic~~date ofto ~~China~~be (recognized upon the ~~“PRC”)~~adoption of FIN 48 and in subsequent periods. This interpretation also provides guidance on ~~August~~measurement, 11derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. ~~2006~~In connection with ~~its~~the ~~principal~~adoption ~~place~~ of ~~business~~FIN 48, the Company analyzed the filing positions in ~~Xian~~all ~~City,~~of ~~Shaanxi~~the ~~Province~~federal, state and foreign jurisdictions where the ~~PRC~~ Company and its subsidiaries are required to file income tax returns, as well as all open tax years in these jurisdictions. ~~Its~~The ~~registered~~Company ~~capital~~adopted isthe ~~Renminbi~~policy ~~Yuan~~of ~~(“RMB”)~~recognizing 5interest and penalties,~~000~~ if any,~~000~~ ~~(equivalent~~related to ~~$628,773). Its~~ ~~principal~~unrecognized ~~activity~~tax ~~was~~positions ~~investment~~as ~~holding~~income intax ~~Shaanxi Li~~expense. ~~Bao~~The ~~Sheng~~Company ~~Tai~~did Kenot Jihave Guany ~~Fen~~unrecognized ~~You~~tax ~~Xian~~positions ~~Gong~~or Sibenefits ~~(“Li~~and ~~Bao”). Upon~~there ~~completion~~was ofno ~~the~~effect ~~plan~~on ofthe ~~exchange, Lv Bao~~financial ~~became a~~condition ~~wholly-owned~~or ~~subsidiary~~results of operations for the ~~Company~~ Six Months ended December 31, 2008.

~~On August 30,~~The ~~2006,~~Company ~~the owners~~conducts ofmajor Lvbusinesses ~~Bao entered intoan exchange agreementwith~~in the ~~owners~~ ofPRC Liand ~~Bao.~~is ~~This~~subject ~~exchange transaction~~to ~~involved~~tax ~~that~~in Lithis ~~Bao’s equity owners transferredthe aggregate equity interest of 93~~jurisdiction.~~57% of~~ ~~the~~As ~~registered~~a ~~capital~~result of Liits ~~Bao~~business ~~(equivalentto RMB65~~activities,~~500,000)~~ tothe LvCompany ~~Bao. The~~files ~~transaction~~tax ~~was an exchange~~returns ofthat ~~shares~~are ~~and~~subject ~~no cashor~~to ~~other~~examination ~~assets~~by ~~were exchanged in~~ the ~~transaction~~local ~~was~~and ~~taken place.~~foreign ~~Upon~~tax ~~the completion of the equity transfer, Li Bao became an operating subsidiaryof Lv Bao with 93~~authority.~~57% controlling interest.~~

~~These transactions~~l ~~have~~Net ~~been accounted~~income ~~for~~per as a reverse acquisition and recapitalization of the Company, through a wholly-owned subsidiary, Lv Bao, whereby Li Bao is deemed to be the ultimate accounting acquirer (legal acquiree) and the Company to be the ultimate accounting acquiree (legal acquirer).share

The Company, ~~through~~calculates ~~its~~net ~~subsidiaries,~~income ~~mainly~~per ~~engages~~share in accordance with SFAS No. 128, “Earnings per Share”. Basic income per share is computed by dividing the ~~provision~~net ofincome ~~landscape~~by the ~~engineering~~weighted-average ~~service~~number inof common shares outstanding during the ~~PRC~~period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

~~In September~~l ~~2007,~~Foreign Licurrencies Bao acquired the technical know-how on the Walnut Plantation Technology from an independent party, the Research Center in the PRC. Starting from January 1, 2008, the Company has commenced in the operation in Walnut plantation.translation

~~The Company,~~Transactions Lvdenominated ~~Bao~~in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and ~~Li Baoare~~liabilities ~~hereinafter~~denominated ~~referred~~in currencies other than the functional currency are translated into the functional tocurrency asusing (the ~~“Company”)~~ applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statement of operations.

~~NOTE－3~~ The ~~SUMMARY~~reporting OFcurrency ~~SIGNIFICANT~~of ~~ACCOUNTING~~the ~~POLICIES~~Company is the United States dollars ("US$"). The Company's subsidiaries in the PRC maintain their books and records in its local currency, Renminbi Yuan ("RMB"), which is functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with SFAS No. 52, “Foreign Currency Translation”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statement of stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective period:

l Basis of presentation

	December 31, 2008	June 30, 2008

Month-end RMB:US$ exchange rate	6.855	7.496
Average monthly RMB:US$ exchange rate	6.864	7.560

~~These accompanying~~l ~~condensed consolidated financial statements~~Stock-based ~~have been prepared in accordance with generally accepted accounting principles in the United States of America.~~compensation

lThe ~~Use~~Company adopts SFAS No. 123(R), “Share-Based Payment” using the fair value method. Under SFAS No. 123(R), the stock-based compensation is measured using the Black-Scholes Option-Pricing model on the date of ~~estimates~~grant. The fair value of stock-based compensation that is expected to vest is recognized using the straight-line method over the requisite service period.

~~In preparing~~The ~~these~~Company ~~condensed consolidated~~also ~~financial~~applies ~~statements, management~~Emerging ~~makes estimates~~Issues ~~and~~Task ~~assumptions~~Force ~~that~~No. ~~affect~~96-18 ~~the~~“Accounting ~~reported~~for ~~amounts~~Equity ofInstruments ~~assets~~that ~~and liabilities~~are inIssued ~~the~~to ~~balance~~other ~~sheets~~than ~~and~~Employees ~~revenues~~for ~~and~~Acquiring, ~~expenses~~or ~~during~~in ~~the~~conjunction with selling, goods or services” ~~periodsreported. Actual~~ ~~results~~(“EIFT ~~may~~96-18”), ~~differ~~with ~~from~~respect ~~these~~to options and warrants issued to non-employees. ~~estimates.~~

l ~~Basis~~Related ~~of consolidation~~parties

~~The condensed~~Parties, ~~consolidated~~which ~~financial statements~~can ~~include~~be ~~the~~a ~~financial~~corporation ~~statements~~or ofindividual, are considered to be related if the Company has the ability, Lvdirectly ~~Bao~~ or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to Li ~~Bao~~common control or common significant influence.

~~All significant~~l ~~inter-company~~Segment ~~balances and transactions within the Company have been eliminated upon consolidation.~~reporting

lSFAS ~~Revenue~~No. ~~recognition~~131 “Disclosures about Segments of an Enterprise and Related Information” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. Commencing from January 1, 2008, the Company operates two reportable segments: Landscape Business and Plantation Business.

~~The Company~~l ~~recognizes~~Fair ~~revenue~~value ~~when persuasive evidence~~ of ~~an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectibility is probable. The Company assesses collectibility based upon our clients’~~ financial ~~condition~~ ~~and prior payment history, as well as our performance under the contract. The Company recognizes these revenues in the period that the service is provided.~~instruments

(The Company values its financial instruments as required by SFAS No. 107, “Disclosures about Fair Value of Financial Instruments”. The estimated fair value amounts have been determined by the Company, using available market information and appropriate valuation methodologies. The estimates presented herein are not necessarily indicative of amounts that the Company could realize in a) current market exchange. ~~Contract~~The Company’s financial instruments primarily include cash and cash equivalents, billed and unbilled accounts receivable, amount due to a stockholder, other receivables and prepayments, income tax payable and other payables and accrued liabilities. ~~revenue~~As of the balance sheet date, the estimated fair values of financial instruments were not materially different from their carrying values as presented due to short maturities of these instruments.

~~The Company~~l ~~applies~~Recently ~~the~~issued ~~percentage-of-completion~~accounting method under SOP 81-1 “Accounting for Performance of Construction-Type and Production-Type Contracts”, to recognize revenues for landscape design and engineering projects that require significant modification or customization subject to the customers. The Company records a provision in those instances in which the Company believe a contract will probably generate a net loss and the Company can reasonably estimate this loss. If the Company cannot reasonably estimate the loss, the Company limits the amount of revenue that the Company recognizes to the costs the Company has incurred, until the Company can estimate the total loss. Advance payments from customers and amounts billed to clients in excess of revenue recognized are recorded as receipt in advance.standards

9The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

~~Table~~In December 2007, the FASB issued SFAS No. 141 (Revised 2007), "Business Combinations" ("SFAS No. 141R"). SFAS No. 141R will change the accounting for business combinations. Under SFAS No. 141R, an acquiring entity will be required to recognize all the assets acquired and liabilities assumed in a transaction at the acquisition-date fair value with limited exceptions. SFAS No. 141R will change the accounting treatment and disclosure for certain specific items in a business combination. SFAS No. 141R applies prospectively to business combinations for which the acquisition date is on or after the beginning of ~~Contents~~the first annual reporting period beginning on or after December 15, 2008. Accordingly, any business combinations the Company engages in will be recorded and disclosed following existing GAAP until January 1, 2009. The Company believes that SFAS 141R should not have a material impact on the consolidated financial position or results of operations. In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements--An Amendment of ARB No. 51, or SFAS No. 160" ("SFAS No. 160"). SFAS No. 160 establishes new accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. SFAS No. 160 is effective for fiscal years beginning on or after December 15, 2008. The Company believes that SFAS No. 160 should not have a material impact on the consolidated financial position or results of operations.

~~ENVIRONMENT~~In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS No. 161"). SFAS No. ~~ECOLOGY~~ 161 ~~HOLDING~~requires ~~COMPANY~~companies OFwith ~~CHINA~~derivative instruments to disclose information that should enable financial-statement users to understand how and why a company uses derivative instruments, how derivative instruments and related hedged items are accounted for under FASB Statement No. 133 "Accounting for Derivative Instruments and Hedging Activities" and how derivative instruments and related hedged items affect a company's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The adoption of this statement is not expected to have a material effect on the Company's future financial position or results of operations.

In May, 2008, the Financial Accounting Standards Board (~~FORMERLY~~"FASB") issued SFAS No. 162, "The Hierarchy of Generally Accepted Accounting Principles," ~~DISPATCH~~ ("SFAS ~~AUTO~~No. ~~PARTS~~162"). SFAS No. 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 accepted accounting principles (GAAP) in the United States (the GAAP hierarchy). SFAS No. 162 will be effective 60 days following the SEC's approval of the Public Company Accounting Oversight Board's amendments to AU Section 411, ~~INC~~"The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles." The FASB has stated that it does not expect SFAS No. 162 will result in a change in current practice. The application of SFAS No. 162 will have no effect on the Company's financial position, results of operations or cash flows. Also in May 2008, the FASB issued SFAS No. 163, "Accounting for Financial Guarantee Insurance Contracts--an interpretation of FASB Statement No. 60" ("SFAS No. 163"). SFAS No. 163 interprets Statement 60 and amends existing accounting pronouncements to clarify their application to the financial guarantee insurance contracts included within the scope of that Statement. SFAS No. 163 is effective for financial statements issued for fiscal years beginning after December 15, 2008, and all interim periods within those fiscal years. As such, the Company is required to adopt these provisions at the beginning of the fiscal year ended December 31, 2009. The Company is currently evaluating the impact of SFAS No. 163 on its financial statements but does not expect it to have an effect on the Company's financial position, results of operations or cash flows. In May 2008, the FASB issued FSP APB 14-1, "Accounting for Convertible Debt Instruments that may be Settled in Cash upon Conversion (Including Partial Cash Settlement)" ("FSP APB 14-1"). FSP APB 14-1 applies to convertible debt securities that, upon conversion, may be settled by the issuer fully or partially in cash. FSP APB 14-1 specifies that issuers of such instruments should separately account for the liability and equity components in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. FSP APB 14-1 is effective for financial statements issued for fiscal years after December 15, 2008, and must be applied on a retrospective basis. Early adoption is not permitted. The Company is assessing the potential impact of this FSP on the convertible debt issuances.

~~NOTES~~ TO In ~~CONDENSED~~June ~~CONSOLIDATED~~2008, ~~FINANCIAL~~the ~~STATEMENTS~~FASB issued FASB Staff Position ("FSP") EITF 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities" ("FSP EITF 03-6-1"). FSP EITF 03-6-1 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting, and therefore need to be included in the earnings allocation in computing earnings per share under the two-class method as described in SFAS No. 128, Earnings per Share. Under the guidance of FSP EITF 03-6-1, unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings-per-share pursuant to the two-class method. FSP EITF 03-6-1 is effective for financial statements issued for fiscal years beginning after December 15, 2008 and all prior-period earnings per share data presented shall be adjusted retrospectively. Early application is not permitted. The Company is assessing the potential impact of this FSP on the earnings per share calculation. In June 2008, the FASB ratified EITF No. 07-5, "Determining Whether an Instrument (or an Embedded Feature) is Indexed to an Entity's Own Stock" ("EITF 07-5"). EITF 07-5 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument's contingent exercise and settlement provisions. EITF 07-5 is effective for financial statements issued for fiscal years beginning after December 15, 2008. Early application is not permitted. The Company is assessing the potential impact of this EITF 07-5 on the financial condition and results of operations.

~~FOR THE~~NOTE ~~NINE~~- ~~MONTHS~~4 FACILITIES ~~ENDED~~OPERATING ~~MARCH 31, 2008 AND 2007~~RIGHT

In August 2008, the Company entered the agreement to purchase the operating rights of 38 public restroom facilities for a cash consideration of $4,376,304 (~~Currency~~equivalent to RMB30,000,000). These ~~expressed~~ public restroom facilities are located in ~~United~~Xi’An ~~States~~City, ~~Dollars~~Shaanxi ~~(“US$”))~~Province, the PRC, in which the Company has exclusive rights to operate and manage these facilities for a certain period of time. For the Six Months ended December 31, 2008, no revenue was generated from the operating rights since the Company has not completed the transfer of the legal titles and it is expected to be commenced the operation in the next quarter.

~~(unaudited)~~NOTE - 5 WALNUT PLANTATION

~~(b)~~Walnut ~~Saleof~~plantation ~~products~~consisted of the following:

The Companyderives revenues from the sales and productionof walnut products. The Companyrecognizes its revenues net of value added taxes(“VAT”). The Company is subject to VAT at the rate of 6% on the invoiced value of sales. Output VAT is borne by customers in addition to the invoiced value of sales whileinput VAT is not allowed for deduction from the invoiced value of purchases.

		December 31, 2008	June 30, 2008

Leasehold land and improvement cost	$	1,156,659	$	--
Saplings		21,006		--

Walnut plantation	$	1,177,665	$	--

~~(c)~~In ~~Interest~~September ~~income~~2008, the Company acquired a number of leasehold farmland in Yangling City, Shaanxi Province, the PRC and commenced the walnut plantation business.

~~Interest income~~NOTE is- ~~recognized~~6 AMOUNT onDUE aTO ~~time apportionment~~A ~~basis, taking into account the principal amounts outstanding and the interest rates applicable.~~STOCKHOLDER

lThe ~~Cost~~amount ofdue ~~revenue~~to a stockholder, Mr. Liu, Sheng Li represented unsecured advances which was interest-free and repayable in next twelve months. The imputed interest on the amount due to a stockholder was not significant.

~~Cost of revenue~~NOTE ~~primarily includes purchase of raw materials for landscape design and engineering projects, manufacturing cost of walnut products, sub~~-~~contracting~~ ~~charges and direct overhead.~~7 LITIGATION

lOn ~~Cash~~February 09, 2009, Trafalgar Capital Specialized Investment Fund (the “Trafalgar”) filed a civil lawsuit against Company in the Circuit Court of the 17th Judicial Circuit in Broward County, Florida. In its Complaint, Trafalgar asserted that Company “has defaulted on a debenture and ~~cash~~a ~~equivalents~~security agreement” and asked the court to allow Trafalgar to foreclose on Company’s assets and properties.

~~Cash and~~NOTE ~~cash~~- ~~equivalents~~8 SUBSEQUENT are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.EVENTS

lOn ~~Billed~~February 09, 2009, Trafalgar Capital Specialized Investment Fund (the “Trafalgar”) filed a civil lawsuit against Company in the Circuit Court of the 17th Judicial Circuit in Broward County, Florida. On February 13, 2009, Company received the service of process of this lawsuit. In its Complaint, Trafalgar asserted that Company “has defaulted on a debenture and ~~unbilled~~a ~~accounts~~security ~~receivable~~agreement” and ~~allowance~~asked ~~for~~the ~~doubtful~~court ~~accounts~~to allow Trafalgar to foreclose on Company’s assets and properties.

~~The Company~~On ~~generally~~February ~~bills~~09, ~~its customers~~2009, ~~under~~Zhong ~~its~~Yi ~~long~~(Hong ~~term~~Kong) ~~contracts~~CPA ~~pursuant~~Company toLimited ~~billing~~(“Zhong ~~schedules contained~~Yi) inresigned as the ~~contracts or,~~Company’s ~~upon~~certifying ~~completion~~accounting firm. As of ~~agreed~~the ~~milestones~~date orof ~~deliveries,~~this ~~with~~Form ~~each~~10Q ~~milestone or delivery~~quarterly ~~typically~~report, ~~having~~Company ais ~~value~~still ~~specified~~looking into ~~the~~engage ~~contract.~~a Annew ~~allowance~~certifying ~~for~~accounting ~~doubtful~~firm. ~~accounts~~Since ~~is established~~Company ~~and~~has ~~determinedbased on~~not ~~managements’assessmentof known~~engaged ~~requirements, aging~~a ofnew ~~receivables,~~certifying ~~payment~~accounting ~~history~~firm, the ~~customer’s current~~financial ~~credit~~statements ~~worthiness~~contained ~~and~~in ~~the economic~~this ~~environment.~~Form As10Q ofquarterly ~~March~~report ~~31,~~were ~~2008,~~not ~~the~~reviewed ~~Company~~by ~~has~~an ~~determined~~independent ~~an allowance$498,419 for~~registered ~~doubtful accounts~~public accounting firm.

~~Unbilled accounts~~ITEM ~~receivable comprise principally amounts of revenue recognized on contracts for which invoices have not been issued~~2. It ~~is expected~~MANAGEMENT'S ~~that~~DISCUSSION ~~all~~AND ~~unbilled~~ANALYSIS ~~accounts~~OF ~~receivable~~CONSOLIDATED ~~balances~~FINANCIAL ~~will~~CONDITION beAND ~~billed~~RESULTS ~~in the nexttwelvemonths.~~OF OPERATION

lAs ~~Property~~used herein the terms "we", ~~plant~~"us", "our," the “Registrant,” “EVEH” and ~~equipment~~the "Company" means, Environment Ecology Holding Company Of China, f/k/a Dispatch Auto Parts Inc., a Florida corporation. These terms also refer to our subsidiary corporations, Shaanxi Lv Bao Environmental Eco Industry Management Ltd. ("Lv Bao"), and Shaanxi Li Bao Sheng Tai Ke Ji Gu Fen You Xian Gong Si (“Li Bao”), both of which organized and existing under the laws of the Peoples’ Republic of China acquired in February 2007. GENERAL DESCRIPTION OF BUSINESS We were incorporated on September 14, 1989 under the name First New York Investment, Inc. On November 25, 1996, we filed an amendment to the Articles of Incorporation with the Secretary of State of Florida to change the corporate name to Computer Access International, Inc. On or about March 4, 2005, we formed a wholly-owned subsidiary, Dispatch Auto Parts II, Inc. ("Dispatch II") and invested $6,000 to pay for Dispatch II's organizational expenses and funding of the initial operations of Dispatch II. After the incorporation, we changed our corporate name to Dispatch Auto Parts, Inc. and began the wholesale business for automotive parts and accessories. Dispatch II was disposed on February 14, 2007 pursuant to the agreement between us, Dispatch II and Daniel Slocum, our former president. On May 8, 2007, we filed an amendment to the Articles of Incorporation with the Secretary of State of Florida to change the corporate name to Environment Ecology Holding Company of China for more accurate description of our current operations and to be consistent with our marketing efforts in the landscaping construction and design industry. On November 8, 2006, EVEH (accounting acquiree) executed a Plan of Exchange with Lv Bao (accounting acquirer), the shareholders of Lv Bao and the Majority Shareholder of the EVEH, pursuant to which EVEH issued the new 26,000,000 investment shares of Common Stock and 100,000 shares of our Preferred Stock to the Lv Bao shareholders pursuant to Regulation S under the Securities Act of 1933, as amended, in exchange for all of their shares of registered capital of Lv Bao. As a result, Lv Bao, and its 93.57&percnt;-owned subsidiary, Li Bao, became the subsidiaries of EVEH. The transaction was treated for accounting purposes as a capital transaction and recapitalization by the accounting acquirer and as a re-organization by the accounting acquiree. Since the completion of the Plan of Exchange, which was on February 6, 2007, we have continued operations of Li Bao. The Company is experienced in urban landscaping industry. The landscaping projects include landscape construction and maintenance for public parks, communities, schools, memorials, convention centers, squares, hotels, highway's side view, and so on, some of which were granted as landmarks in the local cities. The detailed services cover:

~~Property, plant~~• ~~and~~gardeners ~~equipment~~• ~~are~~landscape ~~stated~~contractors at• ~~cost~~landscape ~~less~~architects ~~accumulated~~• ~~depreciation~~irrigation ~~and accumulated~~experts ~~impairment~~• ~~losses,~~pest ifmanagement ~~any.~~professionals/applicators ~~Depreciation~~• isarborists ~~calculated~~• onsod ~~the straight-line~~growers ~~basis~~• ~~over~~golf ~~the~~course ~~following~~maintenance ~~expected~~staff ~~useful lives from the date on which they become fully operational~~ and ~~after~~suppliers ~~taking~~• ~~into~~groundskeepers ~~account~~• ~~their estimated~~botanical ~~residual values:~~gardens

	Depreciable life	Residual value
Leasehold improvement	10 years		5	%
Plant and machinery	10 years		5	%
Motor vehicles	10 years		5	%
Office equipment	5 years		5	%

Before the commencement of the landscape construction, the Company provides the clients with floor plans, effect layout, and construction blueprint, and gets the approval for their design from the clients. The Company has its own designers experienced in landscaping. The effects from humanism, history and local climate will be integrated in the design. The Company also has self-owned equipment for landscape construction and maintenance projects, including five large tractors, two lawn mowers, three automatic sprinkling irrigators, one compactor, two watering trucks, two separating-sowing machines, drilling machines and various trucks for different functions.

~~Expenditure~~ In September 2007, the Company acquired the technical training for ~~maintenance~~Walnut ~~and~~Plantation ~~repairs~~Technology isfrom ~~expensed~~an asindependent ~~incurred~~party, the Research Center in the PRC.

lCRITICAL ~~Intangible~~ACCOUNTING ~~asset~~POLICIES

~~Intangible asset~~l ~~refers~~Use toof the purchased technical know-how in the Walnut plantation technology acquired from the Research Center in the PRC, an independent party at its historical cost. Purchased technical know-how includes secret formulas, manufacturing processes, technical and procedural manuals, with an indefinite useful life. In accordance with SFAS No. 142, “Goodwill and Other Intangible Assets”, if an intangible asset is determined to have an indefinite useful life, it should not be amortized until its useful life is determined to be no longer indefinite. The asset’s remaining useful life should be reviewed each reporting period. If such an asset is later determined to have a finite useful life, the asset should be tested for impairment. That asset should then be amortized prospectively over its estimated remaining useful life and accounted for in the same way as intangible assets subject to amortization. An intangible asset that is not subject to amortization should be tested for impairment at least annually.estimates

~~The Company~~In ~~evaluates~~preparing ~~the~~these ~~recoverability~~consolidated offinancial ~~identifiable~~statements, ~~intangible~~management ~~assets~~makes ~~whenever events~~estimates orand ~~changes~~assumptions ~~in circumstances indicate~~ that anaffect ~~intangible~~the ~~asset’s~~reported ~~carrying~~ amount ~~may not be recoverable. Such circumstances could include, but are not limited to: (1) a significant decrease in the market value~~ of anassets ~~asset,~~and ~~(2) a significant~~liabilities ~~adverse change~~ in the ~~extent~~balance orsheets ~~manner~~and inrevenues ~~which~~and anexpenses ~~asset~~during ~~is used, or (3) an accumulation of costs significantly in excess of~~ the ~~amount~~periods ~~originally expected for the acquisition of an asset~~reported. ~~The~~Actual Company measures the carrying amount of the asset against the estimated undiscounted future cash flows associated with it. Should the sum of the expected future net cash flows be less than the carrying value of the asset being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying value of the asset exceeds its fair value. The fair value is measured based on quoted market prices, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Company to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from ~~assumed~~these ~~and~~estimates. ~~estimated amounts.~~

l ~~Valuation~~Basis of ~~long-lived assets~~consolidation

~~Long-lived assets~~The ~~primarily~~consolidated ~~include~~financial ~~property,~~statements ~~plant~~include ~~and equipment and intangible asset. In accordance with SFAS No. 144, “Accounting for~~ the ~~Impairment or Disposal~~financial ofstatements ~~Long-Lived Assets”, the Company periodically reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount~~ of ~~the~~EVEH ~~assets~~and may not be fully recoverable or that the useful lives are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its ~~estimated~~ ~~fair value based on a discounted cash flow analysis~~subsidiaries. ~~Determining~~ ~~the~~ ~~fair~~All ~~value~~significant ~~of long~~inter-~~lived~~company ~~assets~~balances ~~includes significant judgment by management,~~ and ~~different~~ ~~judgments~~transactions ~~could~~within ~~yield~~the ~~different~~Company ~~results.~~have ~~There has~~ been noeliminated ~~impairment as~~upon ~~of March 31, 2008~~consolidation.

l ~~Comprehensive~~Revenue ~~income~~recognition

~~SFAS No. 130, “Reporting Comprehensive~~The ~~Income”,establishes standards~~Company ~~for~~recognizes ~~reporting~~revenue ~~and display~~when persuasive evidence of ~~comprehensive~~an ~~income~~arrangement exists, ~~its~~delivery ~~components~~has ~~andaccumulated~~occurred, ~~balances. Comprehensive income~~the asfee ~~defined~~is ~~includes all~~fixed ~~changes~~or indeterminable ~~equity~~and ~~during~~collectibility ~~the~~is ~~periodfrom non-owner sources~~probable. ~~Accumulated comprehensive~~The ~~income,~~Company asassesses ~~presented~~collectibility inbased ~~the~~upon ~~accompanying~~our ~~condensed consolidated statement of stockholders~~clients’~~equity consists~~ offinancial ~~changes~~condition ~~in unrealized~~and ~~gains~~prior ~~and losses~~payment onhistory, ~~foreign~~as ~~currency~~well ~~translation.~~as ~~This~~our ~~comprehensive~~performance ~~income~~under isthe ~~not~~contract. ~~included~~The Company recognizes these revenues in the ~~computation~~period ofthat ~~income~~the ~~tax~~service ~~expense~~is ~~or benefit~~provided.

l(a) Contract ~~Income taxes~~revenue

The ~~Companyaccounts for~~ ~~income~~Company ~~taxes~~applies inthe ~~interim periods~~percentage-of-completion asmethod ~~required~~under by SOP 81-1 “Accounting ~~Principles~~for ~~Board~~Performance ~~Opinion~~of ~~No.~~Construction-Type 28and Production-Type Contracts”, ~~“Interim~~to recognize revenues ~~Financial Reporting”~~for landscape design and ~~as interpreted~~engineering byprojects ~~FASB~~that ~~Interpretation~~require ~~No.~~significant ~~18,~~modification ~~“Accounting for Income~~or ~~Taxes~~customization insubject ~~Interim~~to ~~Periods~~the customers.” The ~~Companyhas determined~~ anCompany ~~estimated~~records ~~annual effective~~a ~~tax~~provision ~~rate.~~in ~~The~~those ~~rate~~instances in which the Company believe a contract will beprobably ~~revised,~~generate ~~if necessary~~a net loss and the Company can reasonably estimate this loss. If the Company cannot reasonably estimate the loss, asthe ofCompany limits the ~~end~~ amount of ~~each~~revenue ~~successive~~that ~~interim~~the ~~period~~Company ~~during~~recognizes to the costs the Company~~’s fiscal~~ ~~year~~has toincurred, until the Company’s can ~~best~~estimate ~~current~~the ~~estimate~~total loss. ~~The estimated~~ ~~annual~~Advance ~~effective~~payments ~~tax~~from ~~rate is~~customers ~~applied~~and toamounts ~~the~~billed ~~year-~~to~~-date~~ ~~ordinary~~clients ~~income~~in atexcess ~~the~~of ~~end~~revenue ofrecognized ~~theinterim~~are ~~period~~recorded as receipt in advance.

~~The Company~~(d) ~~accounts~~Sale for income tax using SFAS No. 109 “Accounting for Income Taxes”, which requires the asset and liability approach for financial accounting and reporting for income taxes. Under this approach, deferred income taxes are provided for the estimated future tax effects attributable to temporary differences between financial statement carrying amounts of assets and liabilities and their respective tax bases, and for the expected future tax benefits from loss carry-forwards andprovisions, if any. Deferred tax assets and liabilities are measured using the enacted tax rates expected in the years of recovery or reversal and the effect from a change in tax rates is recognized in the condensed consolidated statement of operations and comprehensive income in the period of enactment. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized.products

The Company ~~also~~derives ~~adoptsthe provisions~~revenues offrom the ~~Financial Accounting~~sales ~~Standards~~and ~~Interpretation~~production ~~No. 48, “Accounting for Uncertainty~~of inwalnut ~~Income Taxes”(“FIN 48”)~~products. ~~FIN~~ 48The ~~prescribes~~Company arecognizes ~~recognition threshold~~its ~~and~~revenues ~~measurement~~net ~~process~~of ~~for~~value ~~recording~~added intaxes ~~the~~(“VAT”). ~~financial statements~~The ~~uncertain~~Company ~~tax positions~~is ~~taken~~subject orto ~~expected~~VAT toat bethe ~~taken~~rate inof a6% ~~tax~~on ~~return.~~the ~~FIN~~invoiced 48value ~~also~~of ~~provides guidance~~sales. onOutput ~~de-recognition,~~VAT ~~classification,~~is ~~interest~~borne ~~and~~by ~~penalties,~~customers ~~accounting~~ in ~~interim~~addition ~~periods,~~to ~~disclosures~~the ~~and~~invoiced ~~transitions.~~value ~~The Company adopted FIN~~of 48sales ~~and hasdetermined that~~while ~~the~~input ~~adoption~~VAT ~~did~~is not ~~have~~ anallowed ~~impact~~for ondeduction from the ~~Company’s financial~~invoiced ~~position,~~value ~~results~~ of ~~operations,~~ ~~or cash flows~~purchases.

10(e) Interest income

~~Table of~~Interest ~~Contents~~income is recognized on a time apportionment basis, taking into account the principal amounts outstanding and the interest rates applicable.

~~ENVIRONMENT ECOLOGY~~l ~~HOLDING~~Cost ~~COMPANY~~of ~~OF CHINA~~revenue

~~(FORMERLY DISPATCH~~Cost ~~AUTO~~of ~~PARTS~~revenue primarily includes purchase of raw materials for landscape design and engineering projects, ~~INC~~manufacturing cost of walnut products, sub-contracting charges and direct overhead.)

~~NOTES TO~~l ~~CONDENSED~~Cash ~~CONSOLIDATED~~and ~~FINANCIAL~~cash ~~STATEMENTS~~equivalents

~~FOR THE~~Cash ~~NINE~~and ~~MONTHS~~cash ~~ENDED~~equivalents ~~MARCH~~are 31carried at cost and represent cash on hand, ~~2008~~demand ~~AND~~deposits ~~2007~~placed with banks or other financial institutions and all highly liquid investments with an original maturity of Six Months or less as of the purchase date of such investments.

~~(Currency expressed~~l inBilled ~~United~~and ~~States~~unbilled ~~Dollars~~accounts ~~(“US$”))~~receivable and allowance for doubtful accounts

The Company generally bills its customers under its long term contracts pursuant to billing schedules contained in the contracts or, upon completion of agreed milestones or deliveries, with each milestone or delivery typically having a value specified in the contract. An allowance for doubtful accounts is established and determined based on managements’ assessment of known requirements, aging of receivables, payment history, the customer’s current credit worthiness and the economic environment. As of December 31, 2008, an allowance for doubtful accounts was is not required.

Unbilled accounts receivable comprise principally amounts of revenue recognized on contracts for which invoices have not been issued. It is expected that all unbilled accounts receivable balances will be billed in the next twelve months.

~~(unaudited)~~l Walnut plantation

lWalnut ~~Net~~plantation, ~~income~~which ~~(loss)~~includes ~~per~~purchase ~~share~~cost of leasehold land, land improvement cost and saplings, is stated at acquisition cost less accumulated amortization of leasehold land and includes no estimated future reforestation cost. The cost of walnut plantation harvested is based on the volume of walnut harvested in relation to the estimated volume of walnut recoverable. Leasehold land is amortized using the straight-line method over the terms of lease due 2039. The Company estimates its walnut inventory using statistical information and data obtained from physical measurements and other information gathering techniques. The cost of walnut saplings purchased and reforestation costs are capitalized at the time of acquisition. Walnut plantation carrying costs are expensed as incurred. The value of the walnut plantation will be reviewed each reporting period and should be tested for impairment.

~~The Company~~l ~~calculates net income (loss) per share in accordance with SFAS No. 128~~Property,~~“Earnings~~ ~~per Share”.~~plant Basic income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share is computed similar to basic income (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and ~~if the additional common shares were dilutive.~~equipment

lProperty, ~~Foreign~~plant ~~currencies~~and ~~translation~~equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the condensed consolidated statement of operations.

	Depreciable life	Residual value
Leasehold improvement	10 years	5%
Plant and machinery	10 years	5%
Motor vehicles	10 years	5%
Office equipment	5 years	5%

~~The reporting~~Expenditure ~~currency~~for ofrepairs ~~the~~and ~~Company~~maintenance is ~~the~~ ~~United~~expensed ~~Statesdollar ("US$")~~as incurred.~~The Company's~~ ~~subsidiaries~~When inassets ~~the~~have ~~PRC~~retired or sold, Li ~~Bao~~the cost and ~~Lv Baomaintain~~related ~~theirbooks and~~accumulated ~~records~~depreciation inare ~~thelocal currency,~~removed from the ~~Renminbi (“RMB”), which~~accounts and any resulting gain or loss is ~~functional~~recognized ~~currency~~in asthe ~~being~~results of operations. ~~the~~Depreciation ~~primary~~expense ~~currency~~for of the ~~economic~~Six ~~environment in~~Months ~~which~~ended ~~these entities~~December ~~operate~~31, 2008 and 2007 were $22,694 and $26,051, respectively.

~~In general,~~l ~~for~~Intangible consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with SFAS No 52, “Foreign Currency Translation”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded asa separate component of accumulated other comprehensive income within the statement of stockholders’equity.asset

~~Translation of~~Intangible ~~amounts~~asset refers to the purchased technical know-how in the Walnut plantation technology acquired from ~~RMB~~the ~~into~~Research ~~US$~~Center in the PRC, an independent third party at its historical cost. Purchased technical know-how includes secret formulas, manufacturing processes, technical and procedural manuals to operate the walnut ~~has~~plantation ~~been~~business. ~~made~~Amortization atis calculated on the ~~following~~straight-line ~~exchange~~basis ~~rates~~over the expected useful life of 10 years. Amortization expense for the ~~respectiveperiod:~~Six Months ended December 31, 2008 and 2007 were $4,372 and $0, respectively.

	2008	2007
Months end RMB:US$ exchange rate	7.0222	7.6248
Average monthly RMB:US$ exchange rate	7.3222	7.8285

Valuation of long-lived assets

lLong-lived ~~Stock~~assets primarily include property, plant and equipment, walnut plantation and intangible asset. In accordance with Statement of Financial Accounting Standard ("SFAS") SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”, the Company periodically reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives are no longer appropriate. Each impairment test is based ~~compensation~~on a comparison of the undiscounted cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flow analysis. Determining the fair value of long-lived assets includes significant judgment by management, and different judgments could yield different results. There has been no impairment as of December 31, 2008 or 2007.

~~The Company~~l ~~adopts~~Research ~~SFAS~~and No. 123(R),“Share-Based Payment” using the fair value method. Under SFAS No. 123(R), the stock-based compensation is measured using the Black-Scholes Option-Pricing model on the date of grant. The fair value of stock-based compensation that is expected to vest is recognized using the straight-line method over the requisite service period.development

lResearch ~~Related~~and ~~parties~~development costs are expensed as incurred in the development of new processes including significant improvements and refinements of existing products. Such costs mainly relate to labor and material cost. The Company incurred $498,604 and $0 of such costs during the Six Months ended December 31, 2008 and 2007.

~~Parties, which~~l ~~can~~Comprehensive be a corporationor individual,are considered to be related if the Companyhas the ability, directly or indirectly, to control the other partyor exercise significant influence over the other partyin making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.income

lSFAS ~~Segment~~No. 130, “Reporting Comprehensive Income”, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during the period from non-owner sources. Accumulated comprehensive income, as presented in the accompanying consolidated statement of stockholders’ equity consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.

~~SFAS No.~~l ~~131~~Income “Disclosures about Segments of an Enterprise and Related Information”establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. As of March31, 2008, the Company operates one reportable segment.Starting from January 1, 2008, the Company has commenced the business in the Walnut plantation in the PRC.taxes

lThe ~~Fair~~Company ~~value~~accounts offor income tax using SFAS No. 109 “Accounting for Income Taxes”, which requires the asset and liability approach for financial ~~instruments~~accounting and reporting for income taxes. Under this approach, deferred income taxes are provided for the estimated future tax effects attributable to temporary differences between financial statement carrying amounts of assets and liabilities and their respective tax bases, and for the expected future tax benefits from loss carry-forwards and provisions, if any. Deferred tax assets and liabilities are measured using the enacted tax rates expected in the years of recovery or reversal and the effect from a change in tax rates is recognized in the consolidated statement of operations and comprehensive income in the period of enactment. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized.

The Company ~~values~~also ~~its~~adopts ~~financial~~Financial Accounting Standards Board ("FASB") Interpretation No. (FIN) 48, "Accounting for Uncertainty in Income Taxes" and FSP FIN 48-1, which amended certain ~~instruments~~provisions asof ~~required~~FIN by48. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in the financial statements in accordance with SFAS No. ~~107~~109, “~~Disclosures~~Accounting for Income Taxes.” FIN 48 provides that a tax benefit from an uncertain tax position may be recognized when it is more ~~about Fair~~likely ~~Value~~than not that the position will be sustained upon examination, including resolutions of ~~Financial~~any ~~Instruments”~~related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized upon the adoption of FIN 48 and in subsequent periods. This interpretation also provides guidance on measurement, derecognition, classification, interest and ~~The~~penalties, ~~estimated~~accounting ~~fair~~in ~~value~~interim ~~amounts~~periods, ~~have~~disclosure and transition. ~~been~~In ~~determined~~connection bywith the adoption of FIN 48, the Company analyzed the filing positions in all of the federal, ~~using~~state ~~available~~and ~~market~~foreign ~~information~~jurisdictions where the Company and ~~appropriate~~ ~~valuation~~its ~~methodologies~~subsidiaries are required to file income tax returns, as well as all open tax years in these jurisdictions. The ~~estimates~~Company ~~presented~~adopted ~~herein~~the ~~are~~policy of recognizing interest and penalties, if any, related to unrecognized tax positions as income tax expense. The Company did not have any unrecognized tax positions or benefits and there ~~necessarilyindicative~~was no effect on the financial condition or results of ~~amounts~~ ~~that~~operations for the ~~Company~~Six ~~could~~Months ~~realizein a~~ended ~~current~~December ~~market exchange~~31, 2008.

The Company~~’s financial~~ ~~instrumentsprimarilyinclude cashand~~conducts ~~cash~~major ~~equivalents, billed~~businesses ~~accounts receivable, unbilled~~in ~~accounts~~the ~~receivable,~~PRC ~~other receivable,~~and ~~amount~~is ~~due~~subject to ~~stockholders, income~~ tax ~~payable~~in this jurisdiction. As a result of its business activities, ~~deferred~~ the Company files tax ~~liabilities, other~~returns ~~payables~~that are subject to examination by the local and ~~accrued liabilities~~foreign tax authority.

~~As of~~l ~~the~~Net ~~balancesheet date,~~income ~~the~~per ~~estimatedfair values of financial instruments were not materially different from their carrying values as presented due to short maturities of these instruments.~~share

lThe ~~Recently~~Company calculates net income per share in accordance with SFAS No. 128, “Earnings per Share”. Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued ~~accounting~~and ~~standards~~if the additional common shares were dilutive.

~~The Company~~l ~~has~~Foreign ~~reviewed~~currencies all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.translation

~~In February~~Transactions ~~2007,~~denominated in currencies other than the ~~FASB~~functional ~~issued~~currency ~~SFAS No.~~are ~~159,~~translated ~~"The~~into ~~Fair~~the ~~Value~~functional ~~Option~~currency ~~for~~at ~~Financial~~the ~~Assets~~exchange ~~and~~rates ~~Financial~~prevailing ~~Liabilities" ("SFAS~~at ~~No.~~the ~~159").~~dates ~~SFAS~~of Nothe transaction. ~~159~~Monetary ~~permits~~assets ~~entities~~and toliabilities ~~choose~~denominated toin ~~measure, on~~currencies ~~an item-by-item~~other ~~basis,~~than ~~specified~~the ~~financial~~functional ~~instruments~~currency ~~and~~are ~~certain~~translated ~~other~~into ~~items~~the functional currency using the applicable exchange rates at ~~fair~~ ~~value.~~the ~~Unrealized~~balance ~~gains~~sheet ~~and~~dates. ~~losses~~The onresulting ~~items~~exchange ~~for~~differences ~~which~~are recorded in the ~~fair~~consolidated ~~value~~statement of operations. ~~option~~ ~~has~~The ~~been~~reporting ~~elected~~currency ~~are~~of ~~required~~the toCompany beis ~~reported~~the United States dollars ("US$"). The Company's subsidiaries in ~~earnings~~the atPRC ~~each~~maintain ~~reporting date.~~their ~~SFAS~~books ~~No.~~and ~~159~~records in its local currency, Renminbi Yuan ("RMB"), which is ~~effective~~functional currency as being the primary currency of the economic environment in which these entities operate. In general, for ~~fiscal~~consolidation ~~years~~purposes, ~~beginning~~assets ~~after~~and ~~November~~liabilities 15of its subsidiaries whose functional currency is not US$ are translated into US$, ~~2007~~in accordance with SFAS No. 52, “Foreign Currency Translation”, using the ~~provisions~~exchange ofrate ~~which~~ on the balance sheet date. Revenues and expenses are translated at ~~required~~average torates beprevailing ~~applied~~during ~~prospectively~~the period. The ~~Company~~gains ~~believes~~and ~~that~~losses ~~SFAS~~resulting ~~159 should not~~from ~~have~~translation of financial statements of foreign subsidiaries are recorded as a ~~material~~separate ~~impact~~component onof ~~the~~accumulated ~~consolidated~~other ~~financial position~~comprehensive orincome ~~results~~within the statement of stockholders’ equity. ~~operations.~~Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective period:

In December 2007, the FASB issued SFAS No. 141 (Revised 2007), "Business Combinations" ("SFAS No. 141R"). SFAS No. 141R will change the accounting for business combinations. Under SFAS No. 141R, an acquiring entity will be required to recognize all the assets acquired and liabilities assumed in a transaction at the acquisition-date fair value with limited exceptions. SFAS No. 141R will change the accounting treatment and disclosure for certain specific items in a business combination. SFAS No. 141R applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. Accordingly, any business combinations the Company engages in will be recorded and disclosed following existing GAAP until January 1, 2009. The Company expects SFAS No. 141R will have an impact on accounting for business combinations once adopted but the effect is dependent upon acquisitions atthat time. The Company is still assessing the impact of this pronouncement.

	December 31, 2008	June 30, 2008

Month-end RMB:US$ exchange rate	6.855	7.496
Average monthly RMB:US$ exchange rate	6.864	7.560

~~In December~~l ~~2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements~~Stock-~~-An Amendment~~based of ARB No. 51, or SFAS No. 160" ("SFAS No. 160"). SFAS No. 160 establishes new accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. SFAS No. 160 is effective for fiscal years beginning on or after December 15, 2008. The Company believes that SFASNo.160 should not have a material impact on the consolidated financial position or results of operations.compensation

~~In March~~The ~~2008,~~Company ~~the~~adopts ~~FASB issued~~ SFAS No. ~~161,~~ ~~"Disclosures about Derivative Instruments and Hedging Activities"~~ 123(~~"SFAS No. 161"~~R)., ~~SFAS 161 requires companies with derivative instruments to disclose information that should enable financial~~“Share-~~statement~~Based ~~users~~Payment” tousing ~~understand~~the ~~how~~fair ~~and~~value ~~why a company~~method. ~~uses derivative~~Under ~~instruments,~~SFAS ~~how derivative instruments and related hedged items are accounted forunder FASB Statement~~ No. ~~133 "Accounting for Derivative Instruments and Hedging Activities" and how derivative instruments and related hedged items affect a company's financial position~~123(R), ~~financial~~ ~~performance~~the ~~and~~stock-based ~~cash~~compensation ~~flows. SFAS 161~~ is ~~effective~~measured ~~for~~using ~~financial statements~~the ~~issued~~Black-Scholes ~~for~~Option-Pricing ~~fiscal~~model ~~years and~~on ~~interim~~the ~~periods~~date ~~beginning~~of ~~after November 15, 2008~~grant. The ~~adoption~~fair value of ~~this statement~~stock-based iscompensation ~~not~~that is expected to ~~have~~vest ais ~~material~~recognized ~~effect~~using on the ~~Company's~~straight-line ~~future financial~~method ~~position~~over orthe ~~results~~requisite ofservice ~~operations~~period.

11The Company also applies Emerging Issues Task Force No. 96-18 “Accounting for Equity Instruments that are Issued to other than Employees for Acquiring, or in conjunction with selling, goods or services” (“EIFT 96-18”), with respect to options and warrants issued to non-employees.

~~Table of~~l ~~Contents~~Related parties

~~ENVIRONMENT~~Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to ~~ECOLOGY~~ common ~~HOLDING~~control ~~COMPANY~~or OFcommon ~~CHINA~~significant influence.

~~(FORMERLY DISPATCH~~l ~~AUTO~~Segment ~~PARTS, INC.)~~reporting

~~NOTES~~SFAS No. 131 “Disclosures about Segments of an Enterprise and Related Information” establishes standards for reporting information about operating segments on a basis TO consistent ~~CONDENSED~~with ~~CONSOLIDATED~~the ~~FINANCIAL~~Company’s ~~STATEMENTS~~internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. Commencing from January 1, 2008, the Company operates two reportable segments: Landscape Business and Plantation Business.

~~FOR THE~~l ~~NINE~~Fair ~~MONTHS~~value ~~ENDED~~of ~~MARCH~~financial ~~31, 2008 AND 2007~~instruments

~~(Currency expressed~~The inCompany ~~United~~values ~~States~~its ~~Dollars~~financial (instruments as required by SFAS No. 107, “~~US$~~Disclosures about Fair Value of Financial Instruments”)). The estimated fair value amounts have been determined by the Company, using available market information and appropriate valuation methodologies. The estimates presented herein are not necessarily indicative of amounts that the Company could realize in a current market exchange. The Company’s financial instruments primarily include cash and cash equivalents, billed and unbilled accounts receivable, amount due to a stockholder, other receivables and prepayments, income tax payable and other payables and accrued liabilities. As of the balance sheet date, the estimated fair values of financial instruments were not materially different from their carrying values as presented due to short maturities of these instruments.

~~(unaudited)~~l Recently issued accounting standards

~~NOTE－4~~The ~~BILLED~~Company ~~ACCOUNTS~~has ~~RECEIVABLE~~reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

~~The majority~~In ofDecember 2007, the ~~Company’s~~FASB ~~sales~~issued ~~are~~SFAS onNo. ~~open~~141 ~~credit~~(Revised ~~terms~~2007), ~~and~~"Business inCombinations" ~~accordance~~("SFAS ~~with~~No. 141R"). SFAS No. 141R will change the ~~terms~~accounting ~~specified~~for inbusiness combinations. Under SFAS No. 141R, an acquiring entity will be required to recognize all the ~~contracts~~assets ~~governing~~acquired and liabilities assumed in a transaction at the ~~relevant~~acquisition-date ~~transactions~~fair value with limited exceptions. ~~The Company~~SFAS ~~evaluates~~No. 141R will change the ~~need~~accounting oftreatment anand ~~allowance~~disclosure for ~~doubtful~~certain ~~accounts~~specific ~~based~~items in a business combination. SFAS No. 141R applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first ~~specifically~~annual ~~identified~~reporting ~~amounts~~period ~~that~~beginning ~~management~~on ~~believes~~or toafter December 15, 2008. Accordingly, any business combinations the Company engages in will be ~~uncollectible~~recorded and disclosed following existing GAAP until January 1, 2009. The Company believes that SFAS 141R should not have a material impact on the consolidated financial position or results of operations. If ~~actual~~In ~~collections~~December ~~experience~~2007, ~~changes~~the FASB issued SFAS No. 160, ~~revisions~~"Noncontrolling toInterests in Consolidated Financial Statements--An Amendment of ARB No. 51, or SFAS No. 160" ("SFAS No. 160"). SFAS No. 160 establishes new accounting and reporting standards for the ~~allowance~~noncontrolling ~~may~~interest bein a subsidiary and for the deconsolidation ~~required~~of a subsidiary. SFAS No. 160 is effective for fiscal years beginning on or after December 15, 2008. The Company believes that SFAS No. 160 should not have a material impact on the consolidated financial position or results of operations.

	March 31, 2008			June 30, 2007
				(audited)
Billed accounts receivable, gross	$	996,838		$	207,906
Less: allowance for doubtful accounts		(498,419	)		(103,953	)
Billed accounts receivable, net	$	498,419		$	103,953

In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS No. 161"). SFAS No. 161 requires companies with derivative instruments to disclose information that should enable financial-statement users to understand how and why a company uses derivative instruments, how derivative instruments and related hedged items are accounted for under FASB Statement No. 133 "Accounting for Derivative Instruments and Hedging Activities" and how derivative instruments and related hedged items affect a company's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The adoption of this statement is not expected to have a material effect on the Company's future financial position or results of operations.

~~For~~In May, 2008, the Financial Accounting Standards Board ("FASB") issued SFAS No. 162, "The Hierarchy of Generally Accepted Accounting Principles," ("SFAS No. 162"). SFAS No. 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 accepted accounting principles (GAAP) in the United States (the GAAP hierarchy). SFAS No. 162 will be effective 60 days following the SEC's approval of the Public ~~nine~~Company ~~months~~Accounting ~~ended~~Oversight ~~March~~Board's ~~31,~~amendments ~~2008~~to AU Section 411, ~~the~~"The ~~Company~~Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles." The FASB has ~~recorded~~stated anthat ~~allowance~~it does not expect SFAS No. 162 will result in a change in current practice. The application of SFAS No. 162 will have no effect ~~$369~~on the Company's financial position,~~685~~ ~~for~~results ~~doubtful~~of ~~accounts~~operations or cash flows.

~~NOTE－~~ Also in May 2008, the FASB issued SFAS No. 163, "Accounting for Financial Guarantee Insurance Contracts--an interpretation of FASB Statement No. 60" ("SFAS No. 163"). SFAS No. 163 interprets Statement 60 and amends existing accounting pronouncements to clarify their application to the financial guarantee insurance contracts included within the scope of that Statement. SFAS No. 163 is effective for financial statements issued for fiscal years beginning after December 15, 2008, and all interim periods within those fiscal years. As such, the Company is required to adopt these provisions at the beginning of the fiscal year ended December 31, 2009. The Company is currently evaluating the impact of SFAS No. 163 on its financial statements but does not expect it to have an effect on the Company's financial position, results of operations or cash flows. In May 2008, the FASB issued FSP APB 14-1, "Accounting for Convertible Debt Instruments that may be Settled in Cash upon Conversion (Including Partial Cash Settlement)" ("FSP APB 14-1"). FSP APB 14-1 applies to convertible debt securities that, upon conversion, may be settled by the issuer fully or partially in cash. FSP APB 14-1 specifies that issuers of such instruments should separately account for the liability and equity components in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. FSP APB 14-1 is effective for financial statements issued for fiscal years after December 15, 2008, and must be applied on a retrospective basis. Early adoption is not permitted. The Company is assessing the potential impact of this FSP on the convertible debt issuances. In June 2008, the FASB issued FASB Staff Position ("FSP") EITF 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities" ("FSP EITF 03-6-1"). FSP EITF 03-6-1 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting, and therefore need to be included in the earnings allocation in computing earnings per share under the two-class method as described in SFAS No. 128, Earnings per Share. Under the guidance of FSP EITF 03-6-1, unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings-per-share pursuant to the two-class method. FSP EITF 03-6-1 is effective for financial statements issued for fiscal years beginning after December 15, 2008 and all prior-period earnings per share data presented shall be adjusted retrospectively. Early application is not permitted. The Company is assessing the potential impact of this FSP on the earnings per share calculation. In June 2008, the FASB ratified EITF No. 07-5, ~~PROPERTY~~"Determining Whether an Instrument (or an Embedded Feature) is Indexed to an Entity's Own Stock" ("EITF 07-5"). EITF 07-5 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, ~~PLANT~~including ~~AND~~evaluating ~~EQUIPMENT~~the instrument's contingent exercise and settlement provisions. EITF 07-5 is effective for financial statements issued for fiscal years beginning after December 15, ~~NET~~2008. Early application is not permitted. The Company is assessing the potential impact of this EITF 07-5 on the financial condition and results of operations.

~~Property, plant~~Results ~~and equipment, net consisted~~ of ~~the following:~~Operations

	March 31, 2008			June 30, 2007
				(audited)
Leasehold improvement	$	167,062		$	157,348
Plant and machinery		442,712			442,713
Office equipment		189,488			188,670
Motor vehicles		40,467			40,467
Foreign translation difference		113,116			38,232
		952,845			867,430
Less: accumulated depreciation		(461,066	)		(379,780	)
Less: foreign translation difference		(36,791	)		(16,690	)
Property, plant and equipment, net	$	454,988		$	470,960

The following discussion should be read in conjunction with the consolidated financial statements included in this report and is qualified in its entirety by the foregoing.

FORWARD LOOKING STATEMENTS

~~Depreciation~~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 ~~expense~~Exchange ~~for~~Act of 1934, as amended (the ~~three~~"Exchange ~~months~~Act"), ~~ended~~that ~~March~~are 31subject to certain events, ~~2008~~risks and ~~2007~~uncertainties ~~were~~that ~~$11~~may be outside our control. The words “believe”,~~861~~ “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 ~~$18~~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,~~208~~ information regarding our expansion and possible results from expansion, ~~respectively~~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.

Depreciation expense for the nine months ended March 31, 2008 and 2007 were $64,597 and $65,593, respectively.

				3 months ended December 31,
				2008		2007

REVENUES:			$	5,466,052	$	2,030,058

COST OF REVENUES:				3,527,252		1,379,544

		GROSS PROFIT		1,938,800		650,514

OPERATING EXPENSES:
	Consulting and professional fees			-		91,357
	Research and development			-		93,180
	(Reversal of) allowance for doubtful accounts			-		(106,116)
	General and administrative			511,494		35,827
		TOTAL OPERATING EXPENSES		511,494		114,248

		INCOME FROM OPERATIONS		1,427,306		536,266

OTHER INCOME:(expenses)
	Other income			-		-
	Interest expense			(207,678)		-
	Interest income			831		782
		TOTAL OTHER INCOME (EXPENSES)		(206,847)		782

INCOME FROM OPERATIONS				1,220,459		537,048

Income tax expense				(345,559)		(101,230)
Minority interest				(59,801)		(33,949)

		NET INCOME	$	815,099	$	401,869

Other comprehensive income:
Foreign currency translation gain				134		85,578

Comprehensive income			$	815,233	$	$ 487,447

~~NOTE－6 INTANGIBLE ASSET~~Revenues

~~It represented~~Revenue for the ~~Walnut~~quarter ~~plantation~~ended ~~technology~~December ~~acquired~~31, ~~from~~2008 anwas ~~independent~~$ ~~party~~5, ~~the~~466,052 ~~Research~~as ~~Center~~compared into ~~the~~$ ~~PRC.~~2,030,058 ~~This~~for ~~technical~~the ~~know-how~~quarter isended ~~stated~~December ~~at the~~31, ~~historical~~2007, ~~cost~~representing an increase of $~~170,887~~ ~~(approximately RMB1~~3,~~200~~435,~~000)~~994 ~~with~~or an169.26 ~~indefinite~~%. ~~useful life~~The increase was mainly due to the growth of our main business operations.

~~NOTE－7~~Cost ~~AMOUNT~~of ~~DUE TO A STOCKHOLDER~~Revenue

~~The~~Cost of revenue for the quarter ended December 31, 2008 was $ ~~amount~~3,527,252 ~~due~~as compared to a$ ~~stockholder~~1, ~~Mr. Liu~~379,544 ~~Sheng~~for Lithe ~~represented~~quarter ~~unsecured~~ended ~~advances~~December 31, ~~which~~2007, ~~was~~representing ~~interest-free~~an ~~and~~increase ~~repayable~~of in$ ~~next~~2,147,708 ~~twelve~~or ~~months~~155.68%. The ~~imputed~~increase ~~interest~~was onmainly ~~the amount~~ due to athe ~~stockholder~~growth of our main business operation and the accordingly ~~was~~increase ~~not~~of ~~significant~~cost of revenues accompanying the increase of revenues.

~~NOTE－8~~Gross ~~OTHER PAYABLES AND ACCRUED LIABILITIES~~Profit

~~Other~~Gross Profit for the quarter ended December 31, 2008 was $ ~~payables~~1,938,800 ~~and~~as ~~accrued~~compared ~~liabilities~~to ~~consisted~~$ 650,514 for the quarter ended December 31, 2007, representing an increase of $ 1,288,286 or 198.04%. The increase was mainly due to the ~~following:~~growth of our main business operations.

	March 31, 2008		June 30, 2007
			(audited)
Government levy payables	$	9,592	$	29,257
Accrued payments to vendors and contract related accruals		148,559		13,863
Welfare payables		14,454		3,604
Payable for technical know-how		170,887		-
Accrued expenses		15,100		33,000
Other payables and accrued liabilities	$	358,592	$	79,724

General and Administrative Expenses

~~The accrued~~General ~~payments~~and toadministrative ~~vendors~~expenses ~~and~~for ~~contract~~the ~~related~~quarter ~~accruals~~ended ~~are~~December ~~primarily~~31, ~~the~~2008 were $ ~~accrual~~511,494 as compared to $ 114,248 for the ~~uncompleted~~quarter ~~contracts~~ended asDecember 31, 2007, representing an increase of ~~March~~$ 31397,246 ~~2008~~or 347.70 ~~These~~%. ~~accruals~~The ~~are expected~~increase was mainly due to bethe ~~paid~~growth inof our main business operation and the ~~next~~accordingly ~~quarter~~increase of cost and expenses accompanying the growth.

~~NOTE－9~~Net ~~INCOME TAXES~~Income

~~The Company~~Net isincome ~~registered~~for in the ~~United~~quarter ~~States~~ended ofDecember ~~America~~31, ~~and~~2008 ~~has~~was ~~operations~~$ in815,099. ~~2 tax~~For ~~jurisdictions:~~ the ~~United~~quarter ~~States~~ended ofDecember ~~America~~31, ~~and~~2007, ~~the~~we ~~PRC.~~recorded ~~The~~a ~~operation in the~~net ~~United~~income ~~States~~ of ~~America has incurred net operating losses for income~~$ ~~tax purposes~~401,869. The ~~Company~~substantial ~~generated~~increase ~~substantially~~of ~~its~~ net income ~~from~~was ~~its~~mainly ~~PRC operation~~due ~~through~~to the ~~subsidiaries~~growth inof ~~the~~our ~~PRC~~main ~~and~~business ~~has~~operations ~~recorded~~and ~~income~~increase ~~tax provision~~of ~~for the nine months ended March 31, 2008 and 2007~~revenue.

~~The provision~~Impact ~~for income taxes consists~~ of ~~the following:~~Inflation

	Nine months ended March 31,
	2008			2007
Current tax	$	1,558,429		$	138,639
Deferred tax (expenses) benefit		(555,554	)		74,360
Income tax expenses	$	1,002,875		$	212,999

We believe that inflation has had a negligible effect on operations during these periods. We believe that we can offset inflationary increases in the cost of revenue by increasing revenue and improving operating efficiencies.

~~The components~~Liquidity ~~of income before income taxes~~ and ~~minority~~Capital ~~interest subject to U.S. and PRC tax are as follows:~~Resources

	Nine months ended March 31,
	2008			2007
Jurisdiction:
Loss subject to U.S. tax	$	(343,103	)	$	(223,200	)
Income subject to from PRC tax		2,615,093			726,513
Income before income taxes and minority interest	$	2,271,990		$	503,313

Net cash flow provided by operating activities was $ 2,016,768 in the Six Months ended December 31, 2008. Net cash flow used in investing activities was $ 5,701,602 for the Six Months ended December 31, 2008. Net cash flow used in financing activities was $ 360,551 for the Six Months ended December 31, 2008.

12We believe we have sufficient cash to continue our current business throughout the 2009 fiscal year.

~~Table of~~OFF-BALANCE ~~Contents~~SHEET ARRANGEMENTS

~~ENVIRONMENT~~We have not entered into any other financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as stockholder’s equity or that are not reflected in our consolidated ~~ECOLOGY~~ financial ~~HOLDING~~statements. ~~COMPANY~~Furthermore, OFwe ~~CHINA~~do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us.

~~(FORMERLY DISPATCH~~ITEM ~~AUTO~~3. ~~PARTS,~~QUANTITATIVE ~~INC~~AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.)

~~NOTES TO~~ITEM ~~CONDENSED~~4. ~~CONSOLIDATED~~CONTROLS ~~FINANCIAL~~AND ~~STATEMENTS~~PROCEDURES

~~FOR THE~~Evaluation ~~NINE~~of ~~MONTHS~~Disclosure ~~ENDED~~Controls ~~MARCH~~and ~~31, 2008 AND 2007~~Procedures

~~(Currency expressed~~ We maintain “disclosure controls and procedures,” as such term is defined in ~~United~~Rule ~~States~~13a-15(e) ~~Dollars~~under the Securities Exchange Act of 1934 (the “~~US$~~Exchange Act”)), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. We conducted an evaluation under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report pursuant to Rule 13a-15 of the Exchange Act. Based on this Evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our Disclosure Controls were effective as of the end of the period covered by this report.

~~United States~~Changes ofin ~~America~~Internal Controls

~~The Company~~ We ishave ~~registered~~also inevaluated ~~the~~our ~~State~~internal ofcontrols ~~Florida~~for financial reporting, and isthere ~~subject~~have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to ~~United States~~ the date of ~~America~~their ~~tax~~last ~~law~~evaluation.

~~As of March~~PART ~~31,~~II ~~2008,~~- ~~the~~OTHER U.S. operation had $343,103 of net operating losses available for federal tax purposes, which are available to offset future taxable income. The net operating loss carry forwards begin to expire in 2028. The Company has provided for a full valuation allowance for any future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.INFORMATION

~~The PRC~~ITEM 1. LEGAL PROCEEDINGS

~~All the Company’s~~ On ~~PRC~~February ~~subsidiaries~~09, ~~are~~2009, ~~subject~~Trafalgar toCapital ~~the~~Specialized ~~Enterprise~~Investment ~~Income~~Fund, ~~Tax~~FIS ~~governed~~(“Trafalgar”) ~~by the~~filed ~~Income~~a ~~Tax~~civil ~~Law~~lawsuit ofagainst Company in the ~~People’s~~Circuit ~~Republic~~Court of ~~China~~the 17th Judicial Circuit in Broward County, Florida. ~~Under~~On February 13, 2009, Company received the ~~PRC~~service ~~Income~~of ~~Tax Laws,~~process ~~both~~of ~~companies~~this ~~are~~lawsuit. ~~generally~~In ~~subject~~its toComplaint, ~~enterprise~~Trafalgar ~~income~~asserted ~~tax~~that (Company “~~CIT”)~~has atdefaulted on a debenture and ~~statutory~~a ~~rate~~security ofagreement” ~~33%~~and ~~(30%~~asked ~~national~~the ~~income~~court ~~tax~~to ~~plus~~allow 3%Trafalgar ~~local~~to foreclose ~~income tax)~~on Company’s assets and properties.

~~On March 16,~~ITEM ~~2007, the National People’s Congress approved the Corporate Income Tax Law of the People’s Republic of China (the “New CIT Law”)~~1A. ~~The~~RISK new CIT Law, among other things, imposes a unified income tax rate of 25% for both domestic and foreign invested enterprises with effect from January 1, 2008. Starting from January 1, 2008 Li Bao is entitled to the tax rate reduction from 33% to 25% that may impact the carrying value of deferred tax assets as a result of new tax rate. Under the New CIT Law, Lv Bao, as a foreign investment enterprise continues to enjoy the unexpired tax holidays from a full exemption of income tax for the first two profit making years with a 50% exemption of income tax for the next three years.FACTORS

~~The reconciliation~~We ofare ~~income~~a ~~tax~~smaller ~~rate~~reporting tocompany ~~the~~as ~~effective~~defined ~~income~~by ~~tax~~Rule ~~rate~~12b-2 ~~based on income~~of ~~before~~the ~~income~~Securities ~~taxes~~Exchange ~~and~~Act ~~minority interest~~ of ~~PRC~~1934 ~~operations~~and ~~for~~are ~~the nine months~~not ~~ended~~required ~~March~~to ~~31,~~provide ~~2008~~the ~~and~~information ~~2007~~under ~~are~~this ~~as follows:~~item.

	Nine months ended March 31,
	2008			2007
Income before income taxes and minority interest	$	2,615,093		$	726,513
Statutory income tax rate		25	%		33	%
		653,773			239,749
Less: items not subject to tax purpose
- Difference in tax rate		138,600			-
- Provision and accrued liabilities		210,502			26,750
Income tax expenses	$	1,002,875		$	212,999

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~The following~~In ~~table sets forth~~ the ~~significant~~quarter ~~components~~ended ofSeptember ~~the~~30, ~~aggregate~~3008, ~~net deferred~~there ~~tax~~was ~~assets~~no ~~and~~unregistered ~~liabilities~~sale of ~~the~~equity ~~Company as of March 31, 2008:~~securities.

	March 31, 2008
Deferred tax liabilities:
Unbilled accounts receivables	$	590,958
Deferred tax asset:
Net operating loss carryforwards		230,355
Less: valuation allowance		(230,355	)
Net deferred tax liabilities	$	590,958

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

~~NOTE－10~~In ~~STOCK-BASED~~the ~~COMPENSATION~~quarter ended September 30, 3008, there was no default upon senior securities.

~~(a) Common~~ITEM ~~stock~~4. ~~issued~~SUBMISSIONS ~~for~~OF ~~service rendered~~MATTERS TO A VOTE OF SECURITY HOLDERS None.

~~On January~~ITEM 26, 2007, the Company issued 1,000,000 shares of common stock for business advisory services to Greentree Financial Group, Inc, in a term of 2 years effective from July 1, 2006 ending June 30, 2008, The fair value of thisstock issuance was determined using the fair value of the Company’s common stock on the grant date, at a price of $05.51 ~~per share.~~OTHER The Company calculated the cost of $510,000 at its fair value and amortized over the service period of 2 years. The Company recognized $191,250 to the statements of operations for the nine months ended March 31, 2008. As of March 31, 2008, the unrecognized cost is recorded as deferred compensation amounting to $45,000.INFORMATION

~~(b) 2007 Benefit Plan~~None.

~~On July~~ITEM ~~13, 2007, the Company approved the 2007 Benefit Plan (“2007 Plan”)~~6. ~~Pursuant~~ to the 2007 plan, the Company would grant a maximum of 5,000,000 share options to employees and non-employee eligible individuals, either as non-statutory stock option or incentive stock option.EXHIBITS

~~On August 13, 2007, the Company authorizedto grant a total of 2,000,000 options to 3 consultants for service to be rendered under the 2007 Plan~~10. ~~All of the options were exercisable at 75% of the market priceat the time of exercise for a period of~~ 1 Agreement ~~year~~with ~~from~~Shaanxi ~~grant~~Jintao ~~date~~Chengji ~~and~~Investment ~~have~~Management aCompany, ~~life of 1 year. All options will vest~~Ltd ~~immediately~~(Incorporated ~~upon the exercise hereof..~~by

~~A schedule~~reference ofin the ~~options~~Current asReport ~~of March31~~on Form 8-K filed on February 11, ~~2008is as~~ ~~follows:~~2009)

	No. of options			Weighted average exercise price
Options outstanding as of July 1, 2007		-		$	-
Granted in August 2007		2,000,000			0.3825
Exercised in August 2007		(2,000,000	)		0.3825
Options outstanding as of March 31, 2008		-		$	-
Options exercisable as of March 31, 2008		-		$	-

14.1 Code of Ethics (Incorporated by reference in the Annual Report on Form 10-KSB for fiscal year ended June 30, 2007 filed on October 15, 2007).

~~The weighted-average grant-date fair value of options granted during the periodended March~~ 31~~, 2008 were $0~~.~~129per share.These~~1 Certification ~~options were valued at an aggregate~~ of ~~$258,020~~principal atexecutive ~~the~~officer ~~weighted~~Pursuant ~~average exercise price of $0.3825 and~~ to be ~~amortized~~Rule ~~over~~13a-14 ~~a weighted average service period~~ of ~~2.2 years. The fair value for~~ the ~~options~~Securities ~~granted wasestimated at~~Exchange ~~the~~Act ~~date~~ of ~~grant using theBlack-Scholes Option Pricing model with the following assumptions:~~1934,

Risk-free interest rate (per annum)	4.75	%
Expected life (in years)	0.08
Expected volatility	0	%
Expected dividend yield	0	%

As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2 Certification of principal financial officer Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934,

~~The Company~~As ~~recognized$183,841 ofstock-based compensation~~Adopted Pursuant to ~~operations for~~Section ~~the~~302 ~~ninemonthsended March31, 2008by applying~~of the ~~fair~~Sarbanes-Oxley ~~value~~Act ~~method in accordance with SFAS No. 123(R).~~of 2002

As ~~of March31,~~ ~~2008, there~~32.1 Certification ~~was $74,179~~ of ~~unrecognized non-cash~~principal ~~compensation~~executive ~~cost~~officer ~~related~~Pursuant to ~~services~~18 toU.S.C. beSection ~~rendered in future periods~~1350, ~~which will be recognized on a straight-line basis, over a weighted average period of 1.7years.~~

~~On August~~As ~~30,~~Adopted ~~2007,~~Pursuant ~~the~~to ~~aggregate~~Section ~~amount of~~906 ~~2,000,000 options was exercised at $0.3825, which represented 75%~~ of the ~~market~~ ~~price~~Sarbanes-Oxley asAct of ~~August 31, 2007. During the period ended March31,~~2002 ~~2008,~~ 32.2~~,000,000~~ Certification ~~shares were issued with a fair value~~ of ~~$765,000~~principal ~~in exchange~~financial ~~for~~officer ~~services~~Pursuant ~~rendered.~~to ~~$2,000~~18 ~~was recorded as an increase in common stock for par value and $763,000in additional paid-in capital~~U. ~~As of~~S.C. ~~March~~Section 311350, 2008, the cash receipt from stock subscription was not received and recorded $760,000 as stock subscriptions receivables in the equity section of the consolidated balance sheet.

13As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

~~Table~~SIGNATURES ~~of Contents~~

~~ENVIRONMENT ECOLOGY~~Pursuant ~~HOLDING~~to ~~COMPANY~~the OFrequirements ~~CHINA~~of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

(FORMERLY DISPATCH AUTO PARTS, INC.)

Date: February 19, 2009	Environment Ecology Holding Company of China

	/s/Sheng Li Liu
	Sheng Li Liu
	President

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED MARCH 31, 2008 AND 2007

(Currency expressed in United States Dollars (“US$”))

(unaudited)

NOTE－11 CONCENTRATION AND RISK

(a) Major customers and vendors

For the nine months ended March 31, 2008 and 2007, 100% of the Company’s assets were located in the PRC and 100% of the Company’s revenues and purchases were derived from customers and vendors located in the PRC.

For the three months ended March 31, 2008, customers and vendors who accounted for 10% or more of revenues and purchases are presented as follows:

Customers		Revenues			Percentage of revenues				Accounts receivable, gross
Customer A			$	1,612,689		31	%			$	406,964
Customer C				1,004,443		19	%				411,399
Customer D				921,266		18	%				-
	Total:		$	3,538,398		68	%	Total:		$	818,363
Vendors		Purchases			Percentage of purchases				Accounts Payable
Vendor A			$	1,202,000		40	%			$	-
Vendor B				1,744,670		58	%				-
	Total:		$	2,946,670		98	%	Total:		$	-

For the nine months ended March 31, 2008, customers and vendors who accounted for 10% or more of revenues and purchases are presented as follows:

Customers		Revenues		Percentage of revenues		Accounts receivable, gross
Customer A		$	2,201,133	25%		$	406,964
Customer B			2,236,444	25%			20,231
Customer C			1,360,005	15%			411,399
Customer D			901,724	10%			-
	Total:	$	6,699,306	75%	Total:	$	838,594
Vendors		Purchases		Percentage of purchases		Accounts payable
Vendor A		$	2,318,015	47%		$	-
Vendor B			2,200,238	45%			-
	Total:	$	4,518,253	92%	Total:	$	-

For the three months ended March 31, 2007, customers and vendors who accounted for 10% or more of revenues and purchases are presented as follows:

Customer		Revenues			Percentage of revenues				Accounts receivable, gross
Customer A			$	174,578		100	%			$	-
	Total:		$	174,578		100	%	Total:		$	-
Vendors		Purchases			Percentage of purchases				Accounts payable
Vendor A			$	111,140		46	%			$	-
Vendor B				77,315		32	%				-
	Total:		$	188,455		78	%	Total:		$	-

For the nine months ended March 31, 2007, customers and vendors who accounted for 10% or more of revenues and purchases are presented as follows:

Customers		Revenues			Percentage of revenues				Accounts receivable, gross
Customer A			$	708,203		29	%			$	-
Customer B				410,771		17	%				-
Customer C				388,852		16	%				-
Customer D				300,608		12	%				-
Customer E				283,993		12	%				-
	Total:		$	2,092,427		86	%	Total:		$	-
Vendors		Purchases			Percentage of purchases				Accounts Payable
Vendor A			$	883,469		56	%			$	-
Vendor B				495,561		32	%				-
	Total:		$	1,379,030		88	%	Total:		$	-

(b) Credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of accounts receivable. The Company performs ongoing credit evaluations of its customers' financial condition, but does not require collateral to support such receivables.

The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in RMB and a significant portion of the assets and liabilities are denominated in RMB. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$ and RMB. If RMB depreciates against US$, the value of RMB revenues and assets as expressed in US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose to substantial market risk.

NOTE－12 COMMITMENTS

The Company currently does not have any formal rent agreements. Mr. Liu, Sheng Li, the major shareholder of the Company maintained the office premises and provided office services without charge to the Company. The Company recorded rent expense of $19,663 and $0 as a non-cash transaction at its current market fair value for the nine months ended March 31, 2008 and 2007 and credited to additional paid-in capital, respectively.

Table of Contents

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATION

As used herein the terms "we", "us", "our," the “Registrant,” “EVEH” and the "Company" means, Environment Ecology Holding Company Of China, f/k/a Dispatch Auto Parts Inc., a Florida corporation. These terms also refer to our subsidiary corporations, Shaanxi Lv Bao Environmental Eco Industry Management Ltd. ("Lv Bao"), and Shaanxi Li Bao Sheng Tai Ke Ji Gu Fen You Xian Gong Si (“Li Bao”), both of which organized and existing under the laws of the Peoples’ Republic of China acquired in February 2007.

GENERAL DESCRIPTION OF BUSINESS

We were incorporated on September 14, 1989 under the name First New York Investment, Inc. On November 25, 1996, we filed an amendment to the Articles of Incorporation with the Secretary of State of Florida to change the corporate name to Computer Access International, Inc. On or about March 4, 2005, we formed a wholly-owned subsidiary, Dispatch Auto Parts II, Inc. ("Dispatch II") and invested $6,000 to pay for Dispatch II's organizational expenses and funding of the initial operations of Dispatch II. After the incorporation, we changed our corporate name to Dispatch Auto Parts, Inc. and began the wholesale business for automotive parts and accessories. Dispatch II was disposed on February 14, 2007 pursuant to the agreement between us, Dispatch II and Daniel Slocum, our former president. On May 8, 2007, we filed an amendment to the Articles of Incorporation with the Secretary of State of Florida to change the corporate name to Environment Ecology Holding Company of China for more accurate description of our current operations and to be consistent with our marketing efforts in the landscaping construction and design industry.

On November 8, 2006, EVEH (accounting acquiree) executed a Plan of Exchange with Lv Bao (accounting acquirer), the shareholders of Lv Bao and the Majority Shareholder of the EVEH, pursuant to which EVEH issued the new 26,000,000 investment shares of Common Stock and 100,000 shares of our Preferred Stock to the Lv Bao shareholders pursuant to Regulation S under the Securities Act of 1933, as amended, in exchange for all of their shares of registered capital of Lv Bao. As a result, Lv Bao, and its 93.57%-owned subsidiary, Li Bao, became the subsidiaries of EVEH. The transaction was treated for accounting purposes as a capital transaction and recapitalization by the accounting acquirer and as a re-organization by the accounting acquiree.

Since the completion of the Plan of Exchange, which was on February 6, 2007, we have continued operations of Li Bao. The Company is experienced in urban landscaping industry. The landscaping projects include landscape construction and maintenance for public parks, communities, schools, memorials, convention centers, squares, hotels, highway's side view, and so on, some of which were granted as landmarks in the local cities. The detailed services cover:

• gardeners • landscape contractors • landscape architects • irrigation experts • pest management professionals/applicators • arborists • sod growers • golf course maintenance staff and suppliers • groundskeepers • botanical gardens

In September 2007, the Company acquired the technical training for Walnut Plantation Technology from an independent party, the Research Center in the PRC. Starting in January 1, 2008, the Company commenced Walnut plantation operations.

RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2008

The following discussion should be read in conjunction with the consolidated financial statements included in this report and is qualified in its entirety by the foregoing.

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.

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CRITICAL ACCOUNTING POLICIES

Revenue recognition

The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectibility is probable. The Company assesses collectibility based upon our clients’ financial condition and prior payment history, as well as our performance under the contract. The Company recognizes these revenues in the period that the service is provided.

(a) Contract revenue

The Company applies the percentage-of-completion method under SOP 81-1 “Accounting for Performance of Construction-Type and Production-Type Contracts”, to recognize revenues for landscape design and engineering projects that require significant modification or customization subject to the customers. The Company records a provision in those instances in which the Company believe a contract will probably generate a net loss and the Company can reasonably estimate this loss. If the Company cannot reasonably estimate the loss, the Company limits the amount of revenue that the Company recognizes to the costs the Company has incurred, until the Company can estimate the total loss. Advance payments from customers and amounts billed to clients in excess of revenue recognized are recorded as receipt in advance.

(b) Saleof products

The Companyderives revenues from the sales and production of walnut products. The Companyrecognizes its revenues net of value added taxes(“VAT”). The Company is subject to VAT at the rateof 6% on the invoiced value of sales. Output VAT is borne by customers in addition to the invoiced value of sales whileinput VAT is not allowed for deduction from the invoiced value of purchases.

Interest income is recognized on a time apportionment basis, taking into account the principal amounts outstanding and the interest rates applicable.

Billed and unbilled accounts receivable

The Company generally bills its customers under its long term contracts pursuant to billing schedules contained in the contracts or, upon completion of agreed milestones or deliveries, with each milestone or delivery typically having a value specified in the contract. An allowance for doubtful accounts is established and determinedbased on managements’assessment of known requirements, aging of receivables, payment history, the customer’s current credit worthiness and the economic environment. As of March 31, 2008, the Company has determined an allowance$498,419 for doubtful accounts.

Unbilled accounts receivable comprise principally amounts of revenue recognized on contracts for which invoices have not been issued. It is expected that all unbilled accounts receivable balances will be billed in the nexttwelvemonths.

Property, Plant, and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

	Depreciable life	Residual value
Leasehold improvement	10 years		5	%
Plant and machinery	10 years		5	%
Motor vehicles	10 years		5	%
Office equipment	5 years		5	%

Expenditure for maintenance and repairs is expensed as incurred.

RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the financial statements included in this report and is qualified in its entirety by the foregoing.

Revenues

Net revenues for the three and nine months ended March 31, 2008 were $7,124,411 and $10,310,433, respectively, consisting of the revenues from landscaping projects, which were $5,807,891 and $8,993,913 for the three and nine ended March 31, 2008, respectively, and the revenues from sales of products, which were $1,316,520 for both periods ended March 31, 2008. The increase in revenues from landscaping projects by $5,421,925 and $6,546,702 for the three and nine months ended March 31, 2008, respectively, compared to net revenues of $385,966 and $2,447,211 for the three and nine months ended March 31, 2007, respectively, primarily attributable to the new contracts with total contract amount of approximately $10,000,000 signed within the current fiscal year starting from June 30, 2007. The revenues were recognized based on the percentage of completion. The Company had no revenues from sales of products for the same periods ended March 31, 2007 due to the operation in Walnut plantation commencing on January 1, 2008.

The Company encountered the risk from concentration due to approximately 75% of total revenues from the four customers for both three and nine months ended March 31, 2008. The table below shows the summary of each customer.

	Percentage of Revenues
Name of Customers	For the three months ended March 31, 2008			For the nine months ended March 31, 2008			Projects	Contract Amount		Contract Period
Xi An High-Tech Industrial Development Zone		7	%		25	%	Landscaping Construction	$	2,782,630	April 7, 2007 - December 30, 2008
Shaanxi Truck Manufacture Co. Ltd.		31	%		25	%	Landscaping Construction	$	1,973,510	December 1, 2007 - April 1, 2009
Shaanxi Chi-Yu River Resorts		19	%		15	%	Landscaping Construction	$	3,237,332	December 1, 2007 - April 30, 2009
Beijing Jian Gong Group Olympics National Park		18	%		10	%	Sales of plants		N/A	N/A

All the projects were protected by the enforceable contracts. The Company usually provides the clients with full services including design, construction and maintenance. The Company has its own designers experienced in landscaping. The effects from humanism, history and local climate will be integrated in the design. The documents provided by the Company include the floor plan, effect layout, construction blueprint. The profit margin due to the project design ranges from 1% to 5%, which was included in the contract price without separate charge. The construction will be conducted by the Company after the construction blueprint is approved by the clients. The profit margin due to the project construction is approximately 30%.

The lifecycle of a project is determined by the project's magnitude, which would be clearly described in the contracts case by case. In most cases, the construction periods could cover two years, including construction in the first year and maintenance in the second year. The Company applies the percentage-of-completion method to recognize revenues for the projects. Therefore, approximately 90% of the contract amount will be recognized in the first year according to the percentage of completion, and approximately 10% of the contract amount will be recognized in the second year of the project reflecting the maintenance services.

As shown in the table, most of the projects will not be completed within the next twelve months, providing the Company with sufficient cash flows from operation based on the contracts on hand. The Company believes the more projects completed, the more new customers obtained in the future due to the growth of the Company's experiences and reputation. However, if the Company fails to bring the new customers after the completion of the current projects, the Company will be unable to maintain profitability. The Company may need to rely on financing from related parties and outside sources through debt or equity transactions. The Company's related parties are under no legal obligation to provide the Company with capital infusions. Failure to obtain such financing could have a material adverse effect on operations and financial condition. In addition, the Company's growth potential will be adversely affected and the Company will have to significantly modify its plans. For example, if the Company is unable to raise sufficient capital to develop its business plan, the Company may need to limit the Company's future marketing efforts to areas that the Company believes would be the most profitable.

Table of Contents

Cost of Revenue

Cost of revenue primarily includes purchase of raw materials, sub-contracting charges and direct overhead. Cost of plants and direct labor would be examples of cost of revenue. In addition, cost of revenue will be affected by the amendment of initially approved proposals due to either the clients' request or overages encountered during the construction process. Such overages will include additional underground construction, the complexity of the environment, and the survival rate of the plants. During the three and nine months ended March 31, 2008, we had $4,814,217 and $6,955,578 in cost of revenues, respectively, of which the cost of landscaping projects were $3,990,155, or 68.7% of the corresponding revenues, and $6,131,516, or 68.2% of the corresponding revenues, respectively. The cost of revenues from the sales of products was $824,062, or 62.6% of revenues, for both three and nine months ended March 31, 2008. Comparatively, for the three and nine months ended March 31, 2007, we had $241,609 and $1,573,202 in cost of revenues, respectively, which were approximately 62.6% or 64.3% of revenues in the corresponding periods. The cost of revenue as a percentage of landscaping projects revenue was slightly increased during the three and nine months ended March 31, 2008, compared to the same periods ended March 31, 2007, primarily attributable to more government projects taken during the three and nine months ended March 31, 2008, which have smaller profit margin than those of non-government projects. The Company does not expect such increasing trend to continue in the future because the Company expects to lower the cost of revenue by diversifying the raw materials to different suppliers, controlling the charges of sub-contracting, and devoting more time to consulting services.

Income / Loss

The Company had net incomes of $766,298 and $1,090,992 for the three and nine months ended March 31, 2008, respectively, compared to the net loss of $48,155 and net income of $263,427 for the same periods ended March 31, 2007. The net incomes for both three and nine months ended March 31, 2008 were due primarily to the increase in revenues, resulting sufficient gross profit to cover the operating expenses. The net loss for the three months ended March 31, 2007 due primarily to the non-cash consulting expenses, which were $60,000 for the three months ended March 31, 2007. The non-cash consulting expenses were the result of the issuance of 1,000,000 shares of common stock for services. The shares were valued based on the market price on the date of the stock grant, resulting in total expenses of $510,000 for services rendered, which was booked pro rata within the relative service periods. The net income for the nine months ended March 31, 2007 was primarily attributable to sufficient gross profits to cover the operating expenses in this period.

Expenses

Selling, general and administrative expenses for the three and nine months ended March 31, 2008 were $681,182 and $1,164,183, respectively, increased by $573,881 and $793,191, compared to operating expenses of $107,301 and $370,992 for the same periods ended March 31, 2007, respectively. The increases in operating expenses in the three and nine months ended March 31, 2008 were primarily attributable to the non-cash compensation, which were $375,091 for the nine months ended March 31, 2008, of which $191,250 resulting from the issuance of 1,000,000 shares of common stock for business advisory services in a term of 2 years effective from July 1, 2006 ending June 30, 2008, valued based on the market price on the date of the stock issued and booked pro rata within the relative service periods, and $183,841 resulting from a total of 2,000,000 options granted to 3 consultants for services to be rendered under the 2007 Benefit Plan, which were valued at the date of grant using the Black-Scholes option pricing model and booked pro rata within the relative service periods. In addition, the Company recorded allowance for doubtful accounts of $475,801 and $369,685 for the three and nine months ended March 31, 2008, respectively, after the evaluation for the uncollectibility of specifically identified amounts.

The other selling, general and administrative expenses during the three and nine months ended March 31, 2008 were $93,553 and $271,521, respectively, including salaries, traveling and office expenses, bank charges in both periods. The Company also had research and development expense of $21,503 and $114,683 accrued in connection with the application of the Walnut plantation technology for the three and nine months ended March 31, 2008, respectively.

Impact of Inflation

The Company believes that inflation has had a negligible effect on operations during these periods. The Company believes that the Company can offset inflationary increases in the cost of revenue by increasing revenue and improving operating efficiencies.

Liquidity and Capital Resources

Cash flows used in operating activities were $95,693 for the nine months ended March 31, 2008, compared to cash flows of $516,773 from operation for the nine months ended March 31, 2008. Cash flows used in operations during the nine months ended March 31, 2008 were due primarily to the increases in billed and unbilled accounts receivable by $739,370 and $1,757,815, respectively, the decrease in accounts payable by $409,641, partially offset by the net income of $1,090,992.

Billed accounts receivable as of March 31, 2008 increased from $103,953 to $498,419. The majority of the Company’s sales are on open credit terms and in accordance with terms specified in the contracts governing the relevant transactions. The Company evaluates the need of an allowance for doubtful accounts based on specifically identified amounts that management believes to be uncollectible. If actual collections experience changes, revisions to the allowance may be required. Based upon the aforementioned criteria, the allowance for doubtful accounts was $369,685 for the nine months ended March 31, 2008.

The Company applies the percentage-of-completion method under SOP81-1 to recognize revenues for landscape design and construction projects. There were six major contracts with total contract value of approximately $7,487,545 completed during nine months ended March 31, 2008 on which $1,761,331 of invoices were unbilled, which will be billed as soon as the clients agree with the progress of the projects.

For these contracts, contract costs of completed contracts have been fully incurred and the extent of progress toward completion was almost finished. Therefore, the total contract amount had been fully recognized in accordance with the percentage-of-completion method. Unbilled accounts receivable as of March 31, 2008 comprised principally amounts of revenue recognized on contracts for which invoices have not been issued.

During the nine months ended March 31, 2007, cash flows from operations were due primarily to the net income of $263,427, the collection of billed accounts receivable by $260,856, less an increase in unbilled accounts receivable of $671,991 and the increase in other payables and accrued liabilities by $421,735, partially offset by the increase in unbilled accounts receivable by $671,991 during the nine months ended March 31, 2007.

Cash flows used in investing activities for the nine months ended March 31, 2008 and 2007 were $10,532 and $163,958, respectively, due primarily to the purchase of property and equipment during both periods.

Cash flows provided by financing activities were $62,881 and $749,668 for the nine months ended March 31, 2008 and 2007, respectively, due primarily to advance from a shareholder for both periods. In addition, during the nine months ended March 31, 2008, the Company had cash of $628,773 received from reverse acquisition.

The Company projects that the Company will need additional capital to fund operations over the next 12 months. The Company anticipates the Company will need approximately $2,000,000 for the two years thereafter.

Overall, the Company has funded its cash needs during the nine months ended March 31, 2008 from the receipt of revenues. If the Company is unable to maintain profitability, the Company may need to rely on financing from related parties and outside sources through debt or equity transactions. The Company's related parties are under no legal obligation to provide the Company with capital infusions. Failure to obtain such financing could have a material adverse effect on operations and financial condition.

The Company had cash of $2,968,254 on hand and a working capital of $4,073,010 as of March 31, 2008. Currently, the Company has enough cash to fund its operations for about six months. This is based on the projected revenues and working capital. However, if the projected revenues fall short of needed capital the Company may not be able to sustain its capital needs. The Company will then need to obtain additional capital through equity or debt financing to sustain operations for an additional year. The Company's current level of operations would require capital of approximately $2,000,000 per year thereafter. Modifications to the Company's business plans may require additional capital to operate. For example, if the Company is unable to raise additional capital in the future, the Company may need to curtail is number of projects offers or limit its marketing efforts to the most profitable geographical areas. This may result in lower revenues and market share for the Company. In addition, there can be no assurance that additional capital will be available to the Company when needed or available on terms favorable.

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. The Company's current capital and revenues are insufficient to fund such expansion. If the Company chooses to launch such an expansion campaign, the Company will require substantially more capital. The funds raised from this offering will also be used to market the Company's products and services as well as expand operations and contribute to working capital. However, there can be no assurance that the Company will be able to obtain additional equity or debt financing in the future, if at all. If the Company is unable to raise additional capital, the Company's growth potential will be adversely affected and the Company will have to significantly modify its plans. For example, if the Company is unable to raise sufficient capital to develop its business plan, the Company may need to limit the Company's future marketing efforts to areas that the Company believes would be the most profitable.

Demand for the products and services will be dependent on, among other things, market acceptance of the Company's products, landscaping market in general, and general economic conditions, which are cyclical in nature. Inasmuch as a major portion of the Company's activities is the receipt of revenues from the landscape design and engineering projects, the Company's business operations may be adversely affected by the Company's competitors and prolonged recession periods.

The Company's success will be dependent upon implementing its plan of operations and the risks associated with its business plans. The Company was engaged in landscape construction and design industry. The Company plans to strengthen its position in landscaping markets. The Company also plans to expand its operations through aggressively marketing its projects.

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ITEM 3. QUANTITATIVE ANDQUALITATIVE DISCLOSURES ABOUT MARKET 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 first quarter of 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.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not aware of any pending or threatened legal proceedings, in which we are involved. In addition, we are not aware of any pending or threatened legal proceedings in which entities affiliated with our officers, directors or beneficial owners are involved.

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 Annual Report ended June 30, 2007 on Form 10-KSB. There have been no material changes from the risk factors previously disclosed in our Annual Report ended June 30, 2007 on Form 10-KSB.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

None.

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

None.

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.

	ENVIRONMENT ECOLOGY HOLDING COMPANY OF CHINA
Date: May 20, 2008	By:	/s/ Liu, Sheng Li
		Liu, Sheng Li President

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INDEX TO EXHIBITS

Exhibit No.		Description
31.1		Certification of Chief Executive Officer
31.2		Certification of Chief Financial Officer
32.1		Statement required by 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Statement required by 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002

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