UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended December 31, 2010

Commission File Number 000-51503

Scrap China Corporation

(Exact Name of registrant as specified in its charter)

Utah	81 - 0674073
(State or other jurisdiction of Incorporation or organization)	(I.R.S. Employer Identification No.)

4804 Skycrest Park Cove, Salt Lake City, Utah	84108	801-531-0404
(Address of principal executive offices)	(Zip Code)	(Registrant's telephone number)

www.scrapchina.com

(Web Address)

(Copies to:)

Steve Taylor, 4804 Skycrest Park Cove, Salt Lake City, Utah, 84108 801 578-3283

Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

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

Large Accelerated Filer ( ) Accelerated Filer ( )

Non-Accelerated Filer ( ) Smaller Reporting Company ( x )

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

State the number of shares outstanding of the issuer’s classes of common equity, as of the latest practicable date: February 11, 2011 – 7,710,843

SCRAP CHINA CORPORATION

FORM 10-Q

QUARTER ENDED December 31, 2010

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements

	Condensed Balance Sheets – December 31, 2010 and June 30, 2010 (Unaudited)	3

	Condensed Statements of Operations for the Three and Six Months Ended December 31, 2010 and 2009 and for the period from June 15, 2005 (Date of Inception) Through December 31, 2010 (Unaudited)	4

	Condensed Statements of Cash Flows for the Six Months Ended December 31, 2010 and 2009 and for the period from June 15, 2005 (Date of Inception) Through December 31, 2010 (Unaudited)	5

	Notes to Condensed Financial Statements (Unaudited)	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	7

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	8

Item 4T.	Controls and Procedures	8


PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	8

Item 1A.	Risk Factors	8

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	8

Item 3.	Default Upon Senior Securities	9

Item 4.	Submission of Matters to a Vote of Security Holders	9

Item 5.	Other Information	9

Item 6.	Exhibits	9

Signatures		10

SCRAP CHINA CORPORATION

PART I – CONDENSED FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SCRAP CHINA CORPORATION
(A Development Stage Company)
CONDENSED BALANCE SHEETS
(Unaudited)

	December 31,			June 30,
	2010			2010
ASSETS
Current Assets
Cash	$	273		$	291
Total Assets	$	273		$	291

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accrued liabilities	$	16,605		$	9,750
Payable to related parties		189,480			185,976
Total Current Liabilities		206,085			195,726
Stockholders' Deficit
Common shares - par value $0.001 per share; 250,000,000 shares authorized;
7,710,843 shares issued and outstanding, respectively		7,711			7,711
Additional paid-in capital		2,289			2,289
Deficit accumulated during development stage		(215,812	)		(205,435	)
Total Stockholders' Deficit		(205,812	)		(195,435	)
Total Liabilities and Stockholders' Deficit	$	273		$	291

See the accompanying notes to the condensed unaudited financial statements

SCRAP CHINA CORPORATION
(A Development Stage Company)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

													For the period from
	For the Three Months Ended						For the Six Months Ended						June 15, 2005 (date of
	December 31,						December 31,						inception) through
	2010			2009			2010			2009			December 31, 2010
Sales	$	-		$	-		$	-		$	-		$	-
Operating Expenses
Selling, general and adminstrative expenses		7,033			2,061			10,377			8,392			215,812
Total Operating Expenses		7,033			2,061			10,377			8,392			215,812
Net Loss	$	(7,033	)	$	(2,061	)	$	(10,377	)	$	(8,392	)	$	(215,812	)

Basic and Diluted Net Loss per Share	$	-		$	-		$	-		$	-
Weighted-Average Common
Shares Outstanding		7,710,843			7,710,843			7,710,843			7,710,843

See the accompanying notes to the condensed unaudited financial statements

SCRAP CHINA CORPORATION
(A Development Stage Company)
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)

							For the period from
	For the Six Months Ended						June 15, 2005 (date of
	December 31,						inception) through
	2010			2009			December 31, 2010
Cash Flows From Operating Activities:
Net loss	$	(10,377	)	$	(8,392	)	$	(215,812	)
Changes in assets and liabilities:
Accrued liabilities		6,855			(3,850	)		16,605
Net Cash From Operating Activities		(3,522	)		(12,242	)		(199,207	)

Cash Flows From Investing Activities:		-			-			-

Cash Flows From Financing Activities:
Payable to related parties		3,504			12,224			189,480
Proceeds from sale of common stock		-			-			10,000
Net Cash From Financing Activities		3,504			12,224			199,480

Net Change in Cash		(18	)		(18	)		273
Cash at Beginning of Period		291			327			-
Cash at End of Period	$	273		$	309		$	273

See the accompanying notes to the condensed unaudited financial statements

SCRAP CHINA CORPORATION

(A Development Stage Company)

NOTES TO CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1–ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Organization and Nature of Operations — On June 15, 2005, Scrap China Corporation (“the Company”) was organized under the laws of the State of Utah. The Company is considered a development stage enterprise and is in the process of raising capital to fund operations. As such, the Company has, since inception, spent most of its efforts in developing its business plan and in raising capital to fund its operations. The Company has relied upon cash flows from equity issuances and advances from related parties to sustain operations. The Company is continuing to mature its business plan and is proceeding to raise capital in order to execute the proof of concept phase for the Company’s operations.

Basis of Presentation — The accompanying condensed financial statements have been prepared by Scrap China Corporation and are unaudited. In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation in accordance with accounting principles generally accepted in the United States of America.

The accompanying unaudited interim financial statements have been condensed pursuant to the rules and regulations of the Securities and Exchange Commission; therefore, certain information and disclosures generally included in financial statements have been condensed or omitted. These financial statements should be read in conjunction with the Company's annual financial statements included in the Company's annual report on Form 10K as of June 30, 2010 previously filed with the SEC on September 3, 2010. The financial position and results of operations of the interim periods presented are not necessarily indicative of the results to be expected for the year ended June 30, 2011.

Business Condition — The Company has limited operating history and it has not yet been able to develop and execute its business plan. This situation raises substantial doubt about its ability to continue as a going concern. The Company plans to fund its operations by issuing equity securities or loans from related parties. Success in these efforts is not assured. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.

NOTE 2–PAYABLE TO RELATED PARTY

At December 31, 2010 and 2009, the Company owed $189,480 and $177,324, payable to Scrap.Net, Inc., and Maydao Corporation respectively, companies related through common ownership and management. During the year ended June 30, 2010, and the six months ended December 31, 2010, Scrap.Net, Inc. and Maydao Corporation paid certain expenses for travel, management and legal, and accounting expenses on behalf of Scrap China Corporation. The Company anticipates that Scrap.Net, Inc., if required, would provide additional funds; however, there is no assurance that future advances will be repaid. These advances are due on demand and bear no interest.

ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this Section and elsewhere in this Form 10-Q regarding matters that are not historical facts are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. All statements that address operating performance, events or developments that management expects or anticipates to occur in the future, including statements relating to sales and earnings growth or statements expressing general optimism about future operating results, are forward-looking statements. The forward-looking statements are based on management's current views and assumptions regarding future events and operating performance. Many factors could cause actual results to differ materially from estimates contained in management's forward-looking statements. The differences may be caused by a variety of factors, including but not limited to adverse economic conditions, competitive pressures, inadequate capital, unexpected costs, lower revenues, net income and forecasts, the possibility of fluctuation and volatility of our operating results and financial condition, inability to carry out marketing and sales plans and loss of key executives, among other things.

Plan of Operation

Scrap China Corporation is a development stage company. The Company plans to specialize in moving scrap materials into China. These materials include, but are not limited to, scrap metal, waste paper, scrap plastic, scrap glass, etc. The Company’s main focus will be on freight consolidation resulting in better economics in the transactions.

The Company is continuing to mature its business plan and is proceeding to raise capital in order to execute the proof of concept phase for the Company’s operations.

The Company is unaware of any existing or probable government regulations in the United States or China that would have any material negative impact on our business.

The Company has assessed which permits; registrations or licenses are required to import goods into China and the costs associated with them. There are a number of permits, registrations and licenses that may be required by either the Company, or by any buyer or seller that the Company deals with, in order to be in compliance with any Chinese rules, regulations and environmental laws. The Company does not anticipate any difficulties in completing this process or any difficulties in obtaining any necessary documentation that may be required.

To date the Company has determined that the following permits, registrations or licenses may be required in China:

General Administration for Quality Supervision, Inspection and Quarantine – AQSIQ

Compulsory Certificate – CCC

On June 15, 2005, upon inception of the Company, Maydao Corporation provided initial capital of $10,000 by purchasing 10,000,000 common shares (100%). On November 30, 2005, Maydao announced the spin-off of Scrap China Corporation effective January 20, 2006. The spin-off was in the form of a pro-rata share dividend to Maydao Corporation common shareholders. On January 20, 2006, the common shareholders of record of Maydao Corporation received one share of Scrap China Corporation for every ten shares of Maydao Corporation. The remaining undistributed share balance of 2,289,157 shares, was returned to the Scrap China Corporation treasury at no cost from Maydao Corporation. The balance of issued and outstanding shares of Scrap China Corporation as of December 31, 2010 was 7,710,843.

On September 30, 2009, Maydao Corporation re-organized, resulting in the centralization of all of its recycling operations and websites into Scrap.Net Inc., a wholly owned subsidiary of Maydao Corporation.

On November 30, 2009, Maydao Corporation sold Scrap.Net, Inc. to Inter-Continental Recycling, Inc., a related party through common ownership. The effect of this re-organization and sale resulted in the amount owing from the Company to Maydao Corporation to being transferred to Scrap.Net Inc.

The Company anticipates that Scrap.Net Inc, if required, will provide additional funds; however, there is no assurance of future advances from this related party. Terms for repayment have not been established and the advances are due on demand and bear no interest.

The Company does not anticipate the purchase of any significant equipment or buildings during the development stage.

The Company does not expect any significant change in employees.

Off-Balance Sheet Arrangements

None

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a “smaller reporting company” (as defined by Item 10 of Regulation S-K), the Company is not required to provide information required by this Item, as defined by Regulation S-K Item 305(e).

ITEM 4T. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures: We evaluated the effectiveness of the design and operation of our “disclosure controls and procedures” as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of the end of the period covered by this report. This evaluation (the “disclosure controls evaluation”) was done under the supervision and with the participation of management, including our chief executive officer (“CEO”) and chief financial officer (“CFO”). Rules adopted by the SEC require that in this section of our Quarterly Report on Form 10-Q we present the conclusions of the CEO and the CFO about the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report based on the disclosure controls evaluation.

Objective of Controls: Our disclosure controls and procedures are designed so that information required to be disclosed in our reports filed or submitted under the Exchange Act, such as this Quarterly Report on Form 10-Q, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Our disclosure controls and procedures are also intended to ensure that such information is accumulated and communicated to our management, including the CEO and CFO, and the Board of Directors as appropriate to allow timely decisions regarding required disclosure.

Management’s Report on Disclosure Controls and Procedures: Based upon the disclosure controls and procedures evaluation, our CEO and CFO have concluded that as of the end of the period covered by this report; our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting: There were no changes in our internal control over financial reporting during the quarter ended December 31, 2010 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Neither the Company, nor any of its officers, directors or greater than 10% beneficial shareholders, are involved in any litigation or legal proceedings involving the business of the Company.

ITEM 1A. RISK FACTORS

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

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

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

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

On December 14, 2010, Scrap China Corporation (the “Company”) held its Annual Meeting of Shareholders at The Little America Hotel, 500 South Main Street, Salt Lake City, Utah.

The following information are the results of the matters voted on by the shareholders at the Annual Meeting.

1.	Election of Directors

Paul Roszel, Richard Ivanovick and James Roszel were elected to the Board of Directors for the ensuing year.

Name	For	Against/Withheld	Abstain	Broker Non-Votes
Paul Roszel	5,279,589	0	0	0
Richard Ivanovick	5,279,589	0	0	0
James Roszel	5,279,589	0	0	0

2.	Ratification of the appointment of Hansen, Barnett & Maxwell, P.C. as the Company’s independent registered public accounting firm for the coming year.

For	Against/Withheld	Abstain	Broker Non-Votes
5,279,589	0	0	0

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

Index to Exhibits

Exhibit 3.1 – Articles of Incorporation (1)

Exhibit 20 – Resolution of Board of directors re: Acquisition of Shares (1)

Exhibit 31.1 – Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 31.2 – Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32.1 – Certification of Chief Executive Officer pursuant to U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Exhibit 32.2 – Certification of Chief Financial Officer pursuant to U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(1) Incorporated by reference herein filed as exhibits to the Company's Registration Statement on Form 10SB previously filed with the SEC on August 18, 2005, and subsequent amendments made thereto.

Reports on Form 8-K

Filed on December 16, 2010

Item 5.07 Submission of Matters to a Vote of Security Holders

Filed August 18, 2010

Item 8.01 Other Events

Effective August 15, 2010, Scrap China Corporation has re-located.

The new head office address for the Company is as follows:

Scrap China Corporation		Mailing Address:
4804 Skycrest Park Cove	or	P.O. Box 58228
Salt Lake City, Utah		Salt Lake City, Utah
USA 84108		USA, 84158
Telephone: 801 531 0404
Fax: 801 531 0707
Website: www.scrapchina.com
Email: info@scrapchina.com

SIGNATURES

Pursuant to the requirements of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	Scrap China Corporation




February 11, 2011	/s/ Paul Roszel
	Paul Roszel, President and Chairman of the Board of
	Directors




February 11, 2011	/s/ Richard Ivanovick
	Richard Ivanovick, C.A., Chief Financial and
	Accounting Officer

Scrap China CORP 10-Q