Designing all-solid heterogeneous catalysts with frustrated Lewis pairs (FLPs) has aroused great attentions recently because of its appealing low dissociation energy for H2 molecule and thus a promotion of hydrogenation reaction is expected. The sterically encumbered Lewis acid (metal site) and base (nitrogen site) in the cavity of single transition metal atom doped M/C2N sheet makes it potential candidate with FLP, while a comprehensive understanding of its intrinsic property and reactivity is still required. Calculations show that the complete dissociation of H2 molecule into two H* at the N sites requires two steps, i.e., heterolytic cleavage of H2 molecule and the transfer of H* from metal site to N site, which are highly related to the acidity of the metal site. The Ni/C2N and Pd/C2N, which outperform over the other 8 transition metal atom (M) anchored M/C2N candidates, possess low energy barriers for the complete dissociation of H2 molecule, with values of only 0.30 and 0.20 eV, respectively. Furthermore, both Ni/C2N and Pd/C2N catalysts can achieve semi-hydrogenation of C2H2 into C2H4, with overall barriers of 0.81 and 0.75 eV, respectively, lower than many reported catalysts. It is speculated that M/C2N catalysts with intrinsic FLPs may also find applications in other important hydrogenation reaction.