SECURITIES AND EXCHANGE COMMISSION
            WASHINGTON, DC 20549

                FORM 10-QSB

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended JUNE 30, 2001

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to


       Commission file number 0-8161

               DIONICS,  INC.
(Exact name of Small Business Issuer as Specified in its
    Charter)

Delaware                                 11-2166744
(State or Other Jurisdiction       (I.R.S. Employer
of Incorporation or                  Identification
Organization)                               Number)

             65 Rushmore Street
          Westbury, New York 11590
  (Address of Principal Executive Offices)

               (516) 997-7474
(Issuer's Telephone Number, Including Area Code)

Check whether the Issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the
past 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

     Yes    X              No


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

Common, $.01 par value per share: 3,683,678
      outstanding as of August 1, 2001
    (excluding 164,544 treasury shares).

<PAGE>

         FORWARD-LOOKING STATEMENTS

     This report contains certain forward-looking statements
that are based upon the beliefs and assumptions of, and
information available to, the management of Dionics, Inc. (the
"Company") at the time such statements are made.  Words such as
"expects", "anticipates", "intends", "plans", "believes",
"seeks", "estimates", or variations of such words and similar
expressions are intended to identify such forward-looking
statements.  The statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions which are difficult to predict.  Therefore, actual
outcomes and results may differ materially from what is
expressed or forecasted in such forward-looking statements.
The Company undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new
information, future events or otherwise.



      PART I - FINANCIAL INFORMATION

               DIONICS, INC.


       Index to Financial Information
         Period Ended June 30, 2001



     Item                          Page Herein

     Item 1 - Financial Statements:

     Introductory Comments              3

     Condensed Balance Sheet            4

     Condensed Statement of Operations  6

     Statement of Cash Flows            8

     Notes to Financial Statements      9


     Item 2 - Management's Discussion
     and Analysis or Plan of Operation  14


<PAGE>


               DIONICS, INC.


               June 30, 2001


     The financial information herein is unaudited.  However,
in the opinion of management, such information reflects all
adjustments (consisting only of normal recurring accruals)
necessary to a fair presentation of the results of operations
for the periods being reported.  Additionally, it should be
noted that the accompanying condensed financial statements do
not purport to be complete disclosures in conformity with
generally accepted accounting principles.
     The results of operations for the six months ended June
30, 2001 are not necessarily indicative of the results of
operations for the full fiscal year ending December 31, 2001.
     These condensed statements should be read in conjunction
with the Company's financial statements for the year ended
December 31, 2000.


<PAGE>

DIONICS, INC.

BALANCE SHEETS

                                     JUNE 30,       DECEMBER 31,
                                      2001             2000

                                   (UNAUDITED)      (UNAUDITED)


                           A S S E T S

CURRENT ASSETS:
Cash                                 $  666,700       $ 688,600
Accounts Receivable Trade
(Less Estimated Doubtful Accounts
of $10,000 in 2001 and $10,000 in
2000) - (Note 2)                        440,400         372,100
Inventory - Notes 2 and 3               635,800         604,700
Prepaid Expenses and Other Current
     Assets                              22,200          27,700

     Total Current Assets             1,765,100       1,693,100



PROPERTY, PLANT AND
EQUIPMENT - (Notes 2, 4 and 5)
(At Cost Less Accumulated
Depreciation of $1,678,568
in 2001 and $1,675,700 in 2000)          73,500          76,300



DEPOSITS AND OTHER ASSETS -
 (Notes 2 and 4)                         42,900          44,800


     Total                           $1,881,500      $1,814,200





All amounts have been rounded to the nearest $100.

<PAGE>




DIONICS, INC.

BALANCE SHEETS


                                    JUNE 30,    DECEMBER 31,
                                     2001           2000
                                  (UNAUDITED)    (UNAUDITED)

                   L I A B I L I T I E S

CURRENT LIABILITIES:
Current Portion of Long-Term
Debt - (Note 5)                   $   94,000    $   93,900
Accounts Payable                      93,200        82,600
Accrued Expenses                      73,300        48,500
Deferred Compensation Payable -
 Current (Note 4)                    318,700       156,400

  Total Current Liabilities          579,200       381,400


Long-Term Debt Less Current
Maturities - (Note 5)                611,100       644,900

Deferred Compensation Payable -
Non Current - (Note 4)               177,400       419,200

 Total Liabilities                 1,367,700     1,445,500

CONTINGENCIES AND COMMENTS

                    SHAREHOLDERS' EQUITY

Common Shares - $.01 Par Value
Authorized 5,000,000 Shares
Issued 3,848,222 Shares in 2001
and 3,848,222 in 2000 (Note 6)        38,400        38,400
Additional Paid-in Capital         1,522,800     1,522,800
Accumulated (Deficit)               (826,800)     (971,900)

                                     734,400       589,300
Less: Treasury Stock at Cost
164,544 Shares in 2001 and
164,544 Shares in 2000              (220,600)     (220,600)

   Total Shareholders' Equity        513,800       368,700


       Total                      $1,881,500    $1,814,200


All amounts have been rounded to the nearest $100.

<PAGE>


DIONICS, INC.

CONDENSED STATEMENT OF OPERATIONS



                                        THREE MONTHS ENDED
                                             JUNE 30,
                                        2001         2000
                                    (UNAUDITED)    (UNAUDITED)


SALES                              $  639,600      $  617,700


COST AND EXPENSES:
Cost of Sales (Including Research
and Development Costs)                424,400         375,800

Selling, General and Administrative
Expenses                              110,100         109,500


  Total Costs and Expenses            534,500         485,300

NET INCOME FROM OPERATIONS            105,100         132,400


DIVIDENDS AND OTHER INCOME              5,700           6,800

                                      110,800         139,200
OTHER DEDUCTIONS:
Interest Expense                       25,200          23,700

NET INCOME FOR THE PERIOD BEFORE
INCOME TAXES                           85,600         115,500

INCOME TAXES                              200             -0-

NET INCOME FOR THE PERIOD          $   85,400      $  115,500



NET INCOME PER SHARE -
Basic                              $    .0232      $    .0314


Diluted - Note 6                   $               $    .0310


Average Number of Shares
Outstanding Used in Computation
of Per Share Income -
Basic                                3,683,678      3,683,678

Diluted    - Note 6                                 3,724,703


All amounts have been rounded to the nearest $100.

<PAGE>


DIONICS, INC.

CONDENSED STATEMENT OF OPERATIONS




                                       SIX MONTHS ENDED
                                           JUNE 30,
                                       2001           2000
                                   (UNAUDITED)    (UNAUDITED)


SALES                                $1,209,900    $1,126,400


COST AND EXPENSES:
Cost of Sales (Including
Research and Development Costs)         789,900       712,000

Selling, General and Administrative
Expenses                                238,200       216,000


Total Costs and Expenses              1,028,100       928,000



NET INCOME FROM OPERATIONS              181,800       198,400


DIVIDENDS AND OTHER INCOME               13,400        13,000

                                        195,200       211,400

OTHER DEDUCTIONS
Interest Expense                         48,700        51,200


NET INCOME FOR THE PERIOD BEFORE
INCOME TAXES                            146,500       160,200

INCOME TAXES                              1,400           -0-


NET INCOME FOR THE PERIOD            $  145,100    $  160,200

NET INCOME PER SHARE -
Basic                                $    .0394    $    .0435

Diluted - Note 6                     $             $    .0421



Average Number of Shares
Outstanding Used in Computation
of Per Share Income -
 Basic                                 3,683,678     3,683,678


 Diluted - Note 6                                    3,801,676



All amounts have been rounded to the nearest $100.

<PAGE>




DIONICS, INC.

STATEMENT OF CASH FLOWS



                                            SIX MONTHS ENDED
                                                 JUNE 30,
                                            2001         2000
                                           (UNAUDITED)  (UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income                                  $ 145,100  $ 160,200
Adjustment to Reconcile Net Income to
Net Cash Used for Operating Activities:
Depreciation and Amortization                   2,800      3,700
Changes in Operating Assets and Liabilities:
(Increase) in Accounts Receivable             (68,300)   (17,100)
(Increase) in Inventory                       (31,100)   (73,200)
(Increase) Decrease in Prepaid Expenses and
Other Current Assets                            5,500      4,100
Decrease in Deposits and Other Assets           1,800      1,600
(Decrease) Increase in Deferred Compensation
Payable                                       (79,400)    21,700
Increase in Accounts Payable                   10,600    (37,000)
Increase in Accrued Expenses                   24,800      6,400

Net Cash Provided from Operating Activities    11,800     70,400

CASH FLOWS (USED FOR) FINANCING ACTIVITIES:
Repayment of Debt                             (33,700)   (28,900)

CASH FLOWS (USED FOR) INVESTING ACTIVITIES:
Purchase of Fixed Assets                         -0-      (2,200)

NET INCREASE (DECREASE) IN CASH               (21,900)    39,300

CASH - Beginning of Period                    688,600    526,500

CASH - End of Period                        $ 666,700  $ 565,800



All amounts have been rounded to the nearest $100.

<PAGE>



DIONICS, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2001



NOTE 1 -  BUSINESS:

The Company designs, manufactures and sells silicon semi-
conductor electronic products, as individual discrete
components, as multi-component integrated circuits and as
multi-component hybrid circuits.

The individual discrete components are predominantly
transistors, diodes and capacitors, intended for use in
miniature circuit assemblies called "hybrid micro-circuits".

Due to the rapidly changing needs of the marketplace, there are
continual shifts in popularity among the various chip
components offered by the Company.  Taken as a whole, the
category of discrete chip components for the hybrid circuit
industry is one of the three main classes of products offered
by the Company.

A second main class of products offered by the Company is
encapsulated, assembled, integrated circuits for use in
electronic digital display functions.

The third main class of products offered by the Company is a
range of hybrid circuits that function as opto-isolated MOSFET
drivers and custom Solid State Relays.



NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Basis of Accounting

Assets, liabilities, revenues and expenses are recognized on
the accrual basis of accounting.

Cash and Cash Equivalents

The Company considers money market funds to be cash
equivalents.

Merchandise Inventory

Inventory is stated at the lower of cost (which represents cost
of materials and manufacturing costs on a first-in, first-out
basis) or market.

<PAGE>


DIONICS, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2001




NOTE 2 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
        (Continued)

Property, Plant and Equipment

Property, Plant and Equipment is stated at cost less
accumulated depreciation and amortization.  Expenditures for
renewals and improvements that significantly extend the useful
life of assets are capitalized for all assets; depreciation is
provided over the estimated useful lives of the individual
asset, using the straight- line method.  The following asset
lives are in effect:

         Machine and Equipment         8 Years
         Testing Equipment             8 Years
         Furniture and Fixtures       10 Years
         Building Improvements        10 Years
         Building                     25 Years


Deferred Compensation Plan

Future payments required under a plan of deferred compensation
adopted in 1987, and revised in 2000, as well as interest
accrued thereon are being charged to operations over the period
of expected service.

Bad Debts

The Company maintains a constant allowance for doubtful
accounts of $10,000.


Deferred Mortgage Costs

Costs related to the new Money Store Commercial Mortgage and
prior costs related to the paid off mortgage with D.A.N. Joint
Venture are being amortized as follows:

a) New Costs   $35,800 360 Months Starting 1/l/2000
b) Unamortized
 Prior Cost  16,200  94 Months
            $52,000



<PAGE>


DIONICS, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2001



NOTE 3 -  INVENTORY:

Inventories are stated at the lower of cost (which represents
cost of materials and manufacturing costs on a first-in, first-
out basis) or market, and are comprised of the following:

                           June 30,   December 31,
                            2001         2000
                        (Unaudited)  (Unaudited)
     Finished Goods       $ 37,800    $ 36,000
     Work-in-Process       401,000     381,800
     Raw Materials         150,600     143,200
     Manufacturing
        Supplies            46,400      44,200

        Total             $635,800    $604,700



NOTE 4 -  DEFERRED COMPENSATION PAYABLE:

In 1987 the Company entered into an agreement, amended in 1997
and 1999, which provides for a 72 month schedule of payments to
its chief executive officer.

In connection with the refinancing of the First Union Small
Business Capital (formerly Money Store Commercial Mortgage Inc.
(see Note 5)  a modified deferred compensation payment schedule
commencing January 1, 1999 was agreed to by the Company and
it's chief executive officer.

The Company executed a mortgage subordinate to the existing
first mortgage (see note 5) secured by land and building at 65
Rushmore Street, Westbury, New York in favor of the chief
executive officer to insure amounts due him on the deferred
compensation agreement.

A new 72 month schedule consists of a 24 month period of
reduced consecutive monthly payments, to be followed by an 18-
month period of no payments except for monthly interest.  At
the end of the 42nd month, the total of the delayed payments
becomes due followed by 30 months of principal and interest
payments.

Notwithstanding the above schedule for payments, other than a
life insurance policy to cover death benefits, the Company has
not specifically designated funds with which to meet these
payment requirements.  In view of its continuing total
indebtedness as well as its need for operating capital, there
can be no assurance that the Company will be able to satisfy
the terms of this new agreement in full or in part.  Should
such unfavorable circumstances occur, the terms of the
agreement may have to again be renegotiated to better match the
Company's then-current financial circumstances.  The previously
mentioned Life Insurance policy had a cash surrender value at
December 31, 2000 of approximately $2,300, which is included in
other assets.

<PAGE>


DIONICS, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2001




NOTE 5 -  LOANS PAYABLE -

First Mortgage Loan:

A new loan agreement was entered into between Dionics, Inc. and
the Money Store Commercial Mortgage Inc. effective 12/31/1998.

The loan in the principal amount of $384,685 requires 360
monthly self liquidating payments.  Interest is calculated on
the unpaid principal balance at an initial rate of 8.23% per
annum.  The interest rate on the loan is variable depending on
an independent index related to the yield of United States
Treasury Notes.  This rate change will occur once every 60
months.

$358,232 of the above proceeds were used to satisfy the balance
of the Mortgage due D.A.N. Joint Venture in full.

Term Loans:

Term Loan A - Due D.A. N. Joint Venture.

Certain 1990 loans were replaced by a new term loan in the
principal amount of $283,850, (Term Loan A") structured over
two five-year periods.  During the first five-year period ended
3/31/99, the Company paid interest only.  During the second
five-year period commencing 4/1/99  the balance due will be
repaid over 60 equal monthly installments, plus interest at
prime plus two percent on the unpaid balance.

Term Loan C - Due D.A. N. Joint Venture.

Another Term Loan ("Term Loan C") stemming from the Original
Mortgage has a face amount of $167,500 and carries the same
interest rate and payment terms over two five-year periods as
the new $283,850 Term Loan A described in the Paragraph above.

In conjunction with the refinancing of the old mortgage D.A.N.
Joint Venture confirmed and acknowledged that the old mortgage
note was paid in full, that all accrued interest above the 2%
stated rate and the principal and any accrued interest on Term
Loan C was forgiven, discharged and cancelled.

<PAGE>


DIONICS, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2001


NOTE 6 -  STOCK OPTION PLAN

In September 1997, the Board of Directors of the Company
adopted the 1997 Incentive Stock Option Plan (the "1997 Plan")
for employees of the Company to purchase up to 250,000 shares
of common Stock of the Company.  Options granted under the 1997
plan are "incentive stock options" as defined in Section 422 of
the Internal Revenue Code.  Any stock options granted under the
1997 Plan shall be granted at no less than 100% of the fair
market value of the Common Stock of the Company at the time of
the grant.  As of June 30, 2001, options to acquire 120,000
shares of Common Stock have been granted under the 1997 Plan.
All of such options were granted on September 11, 1997 and have
an exercise price of $.38 per share.  As of June 30, 2001,
130,000 options were available for future grant.  Since the
market price of the Company's Common Stock was below the
exercise price of options, the options were Anti-Dilutive for
the current period.



NOTE 7 -  INCOME TAXES:

Provision for Corporate Federal and State Income taxes at June
30, 2001 is as follows:

                     Federal              None

                     State               $1,400

                                         $1,400


As of December 31, 2000 the Company had available a federal
operating loss carry forward of $115,200.  This net operating
loss originated in 1992 and may be carried forward and expires
as follows:

     Year of Origin  Amount   Carry Forward
                              Expires In


          1992       115,200       2007

                    $115,200





<PAGE>

Item 2.   Management's Discussion and Analysis or Plan of
          Operation

LIQUIDITY AND CAPITAL RESOURCES

     As the First Half of 2001 proceeded, the Company began
to finally feel the impact of the general and widespread
slowdown in the electronics industry. Particularly in the
Second Quarter, the severely reduced pace of incoming orders
created negative effects that permeated many aspects of the
Company's operations. In spite of the shrinking order-backlog,
however, the Company did manage to maintain its previous
quarterly shipping rates, although with less efficient
manufacturing operations. This manifested itself in slightly
higher manufacturing costs, and a slightly lower profit margin.
The most important effect, however, is the sharply reduced
order backlog available for shipping in the Third Quarter,
which presently is shaping up to show a significant reduction
from past periods, and almost certain to produce a loss for the
period. Management is doing all it can to mitigate these
negative effects, but the immediate future is expected to show
shipments reduced at least 50% from recent levels. The cure for
these problems of course lies in new orders, and there are
several significant quotations and proposals outstanding that
may soon turn things around. It is also true that this document
is being written in the early part of the Third Quarter,
traditionally the slowest period of the year for the
electronics industry. New order bookings in the month of July
were unusually low but in the first few days of August the pace
has picked up, already surpassing the total for July by August
6th. Timing for the expected turnaround is the controlling
factor, and the Company is trying to hasten the new order input
process with a variety of sales-oriented activities. New
specification sheets are being written, the Company's web-site
is being upgraded, new products are being developed, and
marketing exposure of both new and old products is being
enhanced. The Company's cash reserves, while not without limit,
are, in the opinion of Management, sufficient to see it through
to the anticipated turn-around.

     Working Capital at June 30, 2001 was $1,185,900 compared
to $1,311,700 at December 31, 2000 and $1,220,000 at June 30,
2000. Management has also continued its search for additional
Working Capital to further the growth of the Company. Contacts
are always active with potential lenders or acquirers but,
particularly in the present environment, no assurance of
success can be given. For the immediate future, however, the
Company is well able to support its ongoing operations.

RESULTS OF OPERATIONS

     Sales in the Second Quarter of 2001 rose 3.5% from the
same period last year, reaching $639,600 in the current period
versus $617,700 in the Second Quarter of 2000. Contributing to
the current shipping level, however, were some less efficiently
manufactured items at the bottom of the order backlog list, and
manufacturing costs for those items were higher than normal. As
a result, the Gross Profit margin dropped from 39.2% in the
Second Quarter of 2000 down to 33.6% in the current period.
Selling, General & Administrative Expenses remained essentially
unchanged in the Second Quarter of 2001, representing 17.2% of
Sales as opposed to 17.7% of Sales in the same period last
year.

     In the Second Quarter of 2001, the Company showed a Net
Profit from Operations of $105,100 as compared to $132,400 in
the same period last year, the difference stemming from
slightly higher manufacturing costs in the current period.
After accounting for Interest and Other Income, as well as
Income Taxes, the Company showed a NET PROFIT of $85,600 in the
Second Quarter of 2001 as compared to $115,500 in the same
period last year.

     For the First Six-Months of 2001, Sales volume rose
7.4%, reaching $1,209,900 as compared to $1,126,400 in the
First Six-Months of 2000. Gross Profit Margin dropped slightly
to 34.7% in the current period as compared to 36.8% in the same
period last year. Selling, General & Administrative Expenses
rose slightly to 19.7% in the current period as compared to
19.2% in the same period last year.


<PAGE>


     For the First Six-Months of 2001 the Company showed a
NET PROFIT of $145,100, down 9.4% from the $160,200 level of
the same period in 2000.

     With regard to the longer-term picture, although the
Company has been in a turnaround-and-growth process for a
number of years now, the string of consecutive annual
improvements is almost certain to be broken by the effects of
the 2001 economic slump. All efforts are now being devoted to
minimizing near-term negative financial effects and to recover
upward momentum as quickly as possible. Unfortunately, customer
guidance is currently very limited and so the Company must
operate on instinct and the best judgment of Management. Cash
reserves are substantial and there is surely no immediate
reason for alarm. Furthermore, the Company has several active
quotations out for new products about which Management is very
optimistic. In the past, comments have been made in this report
about the diminishing risks of failure. The current picture
prompts us to admit that at present those risks have increased
somewhat, but still not to a level worthy of more than mild concern.

THE PRECEDING TEXT CONTAINS FORWARD-LOOKING STATEMENTS WHICH
REFLECT MANAGEMENT'S BEST JUDGMENT OF CURRENTLY AVAILABLE
INFORMATION. SHOULD CERTAIN ASSUMPTIONS FAIL TO MATERIALIZE, OR
UNEXPECTED ADVERSE EVENTS OCCUR, THE COMPANY MAY NOT REACH
MANAGEMENT'S GOALS.

<PAGE>
       PART II  -  OTHER INFORMATION


Item 1.        Legal Proceedings

               None


Item 2.        Changes in Securities

               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

               (a)  Exhibits.  There are no exhibits
               applicable to this Form 10-QSB.

               (b)  Reports on Form 8-K.  Listed below are
               Current Reports on Form 8-K filed by the
               Company during the fiscal quarter ended
               June 30, 2001:

               None


<PAGE>
                 SIGNATURES


     In accordance with the requirements of the Exchange Act,
the Registrant caused this Report to be signed on its behalf by
the undersigned, thereunto duly authorized.

                    DIONICS, INC.
                    (Registrant)


Dated:    August 9, 2001      By: /s/ Bernard Kravitz
                                  Bernard Kravitz,
                                  President

Dated:    August 9, 2001      By: /s/ Bernard Kravitz
                                  Bernard Kravitz,
                                  Principal Financial Officer