| Delaware(State or other jurisdictionof incorporation or organization) | 11-2166744(I.R.S. EmployerIdentification Number) |
|-----------------------------------------------------------------------|--------------------------------------------------|

| No.8 Ji Yang Road, Xinzhou District Shangrao City, Jiangxi Province, China | 334000     |
|---------------------------------------------------------------------------------|------------|
| (Address of principal executive offices)                                        | (Zip Code) |

| Large accelerated filer | o | Accelerated filer         | o |
|-------------------------|---|---------------------------|---|
| Non-accelerated filer   | o | Smaller reporting company | x |

----

TABLE OF CONTENTS

| PART I - FINANCIAL INFORMATION |  Page |
|--------------------------------|------------|
|                           |       |   |   |
|                           | Item 1.    | Financial Statements. | 3 |
|                           | Item 2.    | Management’s Discussion and Analysis of Financial Condition and Results of Operations. | 18 |
|                           | Item 3.    | Quantitative and Qualitative Disclosures About Market Risk. | 24 |
|                           | Item 4.    | Controls and Procedures. | 24 |
|                           |       |   |   |
| PART II - OTHER INFORMATION    |       |
|                           |       |   |   |
|                           | Item 1.    | Legal Proceedings. | 25 |
|                           | Item 1A.   | Risk Factors. | 25 |
|                           | Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds. | 26 |
|                           | Item 3.    | Default upon Senior Securities. | 26 |
|                           | Item 4.    | Mine Safety Disclosures. | 26 |
|                           | Item 5.    | Other Information. | 26 |
|                           | Item 6.    | Exhibits. | 26 |
|                           |       |   |   |
| SIGNATURES                     |       | 27 |

----

Table of Contents

| DIONICS, INC.              |
|----------------------------|
| FINANCIAL STATEMENTS       |
|                       |
| TABLE OF CONTENTS          |
|                       |
| Period Ended June 30, 2012 |
|                                                                                                                                              | Page   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                              |   |
| Balance Sheets as of June 30, 2012 (unaudited) and December 31, 2011                                                                              | 4      |
|                                                                                                                                              |   |
| Statements of Operations and Comprehensive Income for the six and three months ended June 30, 2012 (unaudited) and June 30, 2011 (unaudited) | 5      |
|                                                                                                                                              |   |
| Statements of Cash Flows for the six months ended June 30, 2012 (unaudited) and June 30, 2011 (unaudited)                                    | 6      |
|                                                                                                                                              |   |
| Notes to the Financial Statements                                                                                                                 | 7-17   |

----

Table of Contents

| Dionics Inc.                             |
|------------------------------------------|
|   CONSOLIDATED BALANCE SHEETS       |
|   (AMOUNTS EXPRESSED IN US DOLLARS) |

|                                                            |   | June 30,    |          |   | December 31, |   |
|-----------------------------------------------------------------|--------|-------------|---------------|--------|--------------|--------|
|                                                            |   | 2012        |          |   | 2011         |   |
|                                                            |   | (unaudited) |          |   |         |   |
| ASSETS                                                          |   |        |          |   |         |   |
| Current Assets                                                  |   |        |          |   |         |   |
| Cash and cash equivalents                                       |   | $           | 1,256,096     |   |         | $      | 419,921 |   |
| Accounts receivable                                             |   |        | 2,302,343     |   |         |   | 503,697 |   |
| Related party receivable                                        |   |        | 209,215       |   |         |   | 2,905,211 |   |
| Prepaid lease                                                   |   |        | 115,949       |   |         |   | 261,540 |   |
|                                                            |   |        |          |   |         |   |   |   |
| Total Current Assets                                            |   |        | 3,883,603     |   |         |   | 4,090,369 |   |
|                                                            |   |        |          |   |         |   |   |   |
| Prepaid deposit                                                 |   |        | 5,949,467     |   |         |   | - |   |
| Other receivable                                                |   |        | -             |   |         |   | 84,297 |   |
| Property and equipment, net                                     |   |        | 378,011       |   |         |   | 337,924 |   |
| Land use rights, net                                            |   |        | 172,408       |   |         |   | 173,315 |   |
| Groves and orchard                                              |   |        | 14,744,155    |   |         |   | 14,614,340 |   |
| Inventories                                                     |   |        | 5,903,363     |   |         |   | 7,934,833 |   |
|                                                            |   |        |          |   |         |   |   |   |
| TOTAL ASSETS                                                    |   | $           | 31,031,007    |   |         | $      | 27,235,078 |   |
|                                                            |   |        |          |   |         |   |   |   |
| LIABILITIES AND OWNERS’ EQUITY                            |   |        |          |   |         |   |   |   |
| Current liabilities                                             |   |        |          |   |         |   |   |   |
| Short-term loan                                                 |   | $           | 221,912       |   |         | $      | 220,178 |   |
| Accounts payable                                                |   |        | 200,626       |   |         |   | 369,207 |   |
| Deferred Revenue                                                |   |        | 10,895        |   |         |   | 43,240 |   |
| Other payables                                                  |   |        | 257,891       |   |         |   | 181,501 |   |
| Related party payable                                           |   |        | -             |   |         |   | 882,745 |   |
| Obligation under capital lease - current                        |   |        | 9,325         |   |         |   | 8,728 |   |
| Total Current liabilities                                       |   |        | 700,649       |   |         |   | 1,705,599 |   |
|                                                            |   |        |          |   |         |   |   |   |
| Long-term liabilities                                           |   |        |          |   |         |   |   |   |
| Obligation under capital lease - non current                    |   |        | 352,011       |   |         |   | 369,785 |   |
| Total long-term liabilities                                     |   |        | 352,011       |   |         |   | 369,785 |   |
|                                                            |   |        |          |   |         |   |   |   |
| Total liabilities                                               |   |        | 1,052,660     |   |         |   | 2,075,384 |   |
|                                                            |   |        |          |   |         |   |   |   |
| Equity                                                          |   |        |          |   |         |   |   |   |
| Preferred stock, $0.01 par value, 1,000,000 shares authorized,  |   |        |          |   |         |   |   |   |
| 50,000 shares issued and outstanding at June 30, 2012           |   |        |          |   |         |   |   |   |
| and December 31, 2011, respectively                             |   |        |  500     |   |         |   |  500 |   |
| Common stock, $0.01 par value, 50,000,000 shares authorized, at |   |        |          |   |         |   |   |   |
| June 30, 2012 and December 31, 2011, respectively               |   |        |  478,833 |   |         |   |  200,000 |   |
| Additional paid in capital                                      |   |        | 1,699,402     |   |         |   | 1,978,235 |   |
| Retained Earnings                                               |   |        | 26,543,056    |   |         |   | 21,925,494 |   |
| Accumulated other comprehensive income                          |   |        | 1,256,556     |   |         |   | 1,055,465 |   |
| Total Equity                                                    |   |        | 29,978,347    |   |         |   | 25,159,694 |   |
|                                                            |   |        |          |   |         |   |   |   |
| TOTAL LIABILITY PLUS EQUITY                                     |   | $           | 31,031,007    |   |         | $      | 27,235,078 |   |

----

Table of Contents

|   Dionics Inc.                                            |
|----------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
|   (UNAUDITED - AMOUNTS EXPRESSED IN US DOLLARS)           |

|                                           |   | For the three months ended June 30, |        |   | For the six months ended June 30, |   |
|------------------------------------------------|--------|-------------------------------------|-------------|--------|-----------------------------------|--------|
|                                           |   | 2012                                |        |   | 2011                              |   |   | 2012 |   |   | 2011 |   |
| Revenue                                        |   |                                |        |   |                              |   |   |   |   |   |   |   |
| Revenue from third parties                     |   | $                                   | 6,075,758   |   |                              | $      | 10,517,205 |   |   | $ | 13,289,687 |   |   | $ | 11,303,134 |   |
|                                           |   |                                | 6,075,758   |   |                              |   | 10,517,205 |   |   |   | 13,289,687 |   |   |   | 11,303,134 |   |
|                                           |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Costs of Sales                                 |   |                                | 2,593,186   |   |                              |   | 3,689,155 |   |   |   | 4,056,069 |   |   |   | 3,866,456 |   |
|                                           |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                   |   |                                | 3,482,572   |   |                              |   | 6,828,050 |   |   |   | 9,233,618 |   |   |   | 7,436,678 |   |
|                                           |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses                             |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Selling Expenses                               |   |                                | 286,778     |   |                              |   | 36,314 |   |   |   | 475,173 |   |   |   | 62,928 |   |
| General and Administrative Expenses            |   |                                | 453,189     |   |                              |   | 35,619 |   |   |   | 494,514 |   |   |   | 75,080 |   |
| Total operating expenses                       |   |                                | 739,967     |   |                              |   | 71,933 |   |   |   | 969,687 |   |   |   | 138,008 |   |
|                                           |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                         |   |                                | 2,742,605   |   |                              |   | 6,756,117 |   |   |   | 8,263,931 |   |   |   | 7,298,670 |   |
|                                           |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expenses)                        |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Subsidy income                                 |   |                                | 3,003       |   |                              |   | - |   |   |   | 3,003 |   |   |   | - |   |
| Interest income (expenses)                     |   |                                | 28,033      |   |                              |   | 479 |   |   |   | 28,707 |   |   |   | 484 |   |
| Interest income from related party             |   |                                | 71,989      |   |                              |   | - |   |   |   | 119,391 |   |   |   | - |   |
| Interest (expenses) to related party           |   |                                | (22,873     | )      |                              |   | (355,611 | ) |   |   | (24,438 | ) |   |   | (464,086 | ) |
| Interest (expenses) for capital lease and bank |   |                                | (11,895     | )      |                              |   | (10,829 | ) |   |   | (24,438 | ) |   |   | (21,417 | ) |
| Total other income (expenses)                  |   |                                | 68,257      |   |                              |   | (365,961 | ) |   |   | 102,225 |   |   |   | (485,019 | ) |
|                                           |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Income before provision for income taxes       |   |                                | 2,810,862   |   |                              |   | 6,390,156 |   |   |   | 8,366,156 |   |   |   | 6,813,651 |   |
|                                           |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                     |   |                                | -           |   |                              |   | - |   |   |   | - |   |   |   | - |   |
|                                           |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                     |   | $                                   | 2,810,862   |   |                              | $      | 6,390,156 |   |   | $ | 8,366,156 |   |   | $ | 6,813,651 |   |
|                                           |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income                     |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment        |   |                                | 44,654      |   |                              |   | 222,874 |   |   |   | 201,091 |   |   |   | 282,184 |   |
|                                           |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                     |   | $                                   | 2,855,516   |   |                              | $      | 6,613,030 |   |   | $ | 8,567,247 |   |   | $ | 7,095,835 |   |
|                                           |   |                                |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average basic shares outstanding      |   |                                | 20,306,410  |   |                              |   | 20,000,000 |   |   |   | 20,153,205 |   |   |   | 20,000,000 |   |
| Weighted average diluted shares outstanding    |   |                                | 530,106,410 |   |                              |   | 529,800,000 |   |   |   | 529,953,205 |   |   |   | 529,800,000 |   |
| Basic EPS                                      |   | $                                   | 0.14        |   |                              | $      | 0.32 |   |   | $ | 0.42 |   |   |   | 0.34 |   |
| Diluted EPS                                    |   | $                                   | 0.01        |   |                              | $      | 0.01 |   |   | $ | 0.02 |   |   |   | 0.01 |   |

----

Table of Contents

| Dionics Inc.                                  |
|-----------------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS         |
| (UNAUDITED - AMOUNTS EXPRESSED IN US DOLLARS) |

|                                                                                |   | For the six months ended June 30, |       |
|-------------------------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                                                |   | 2012                              |       |   | 2011 |   |
| Cash flows provided from operating activities:                                      |   |                              |       |   |   |   |
| Net income                                                                          |   | $                                 | 8,366,156  |   |   | $ | 6,813,651 |   |
| Adjustments to reconcile net income to net cash provided from operating activities: |   |                              |       |   |   |   |   |   |
| Depreciation and Amortization                                                       |   |                              | 15,124     |   |   |   | 10,496 |   |
| Inventory write-off                                                                 |   |                              | 36,271     |   |   |   | 90,650 |   |
| Changes in other operating assets and liabilities:                                  |   |                              |       |   |   |   |   |   |
| Accounts receivable                                                                 |   |                              | (1,793,991 | ) |   |   | (3,645,325 | ) |
| Prepaid expenses                                                                    |   |                              | 147,594    |   |   |   | 144,840 |   |
| Inventories                                                                         |   |                              | 2,056,908  |   |   |   | 849,507 |   |
| Accounts payable                                                                    |   |                              | (171,424   | ) |   |   | 1,323,305 |   |
| Deferred revenue                                                                    |   |                              | (32,673    | ) |   |   | (30,065 | ) |
| Other payables                                                                      |   |                              | 74,932     |   |   |   | 12,515 |   |
| Net cash provided by operating activities                                           |   |                              | 8,698,897  |   |   |   | 5,569,574 |   |
|                                                                                |   |                              |       |   |   |   |   |   |
| Cash flows (used in) provided by investing activities:                              |   |                              |       |   |   |   |   |   |
| Groves and orchard                                                                  |   |                              | (14,680    | ) |   |   | (80,904 | ) |
| Receipt from related party loan                                                     |   |                              | 11,346,859 |   |   |   | - |   |
| Loan to related party                                                               |   |                              | (8,708,287 | ) |   |   | - |   |
| Receipt from third party loan                                                       |   |                              | 84,928     |   |   |   | - |   |
| Loan to third party                                                                 |   |                              | -          |   |   |   | (3,684,959 | ) |
| Purchase of equipment                                                               |   |                              | (50,264    | ) |   |   | (23,127 | ) |
| Prepaid deposit for office building                                                 |   |                              | (5,947,189 | ) |   |   | - |   |
| Net cash (used in) investing activities                                             |   |                              | (3,288,633 | ) |   |   | (3,788,990 | ) |
|                                                                                |   |                              |       |   |   |   |   |   |
| Cash flows (used in) provided by financing activities:                              |   |                              |       |   |   |   |   |   |
| Treasury stock                                                                      |   |                              | (3,748,594 | ) |   |   | - |   |
| Receipt from related party loan payable                                             |   |                              | 371,888    |   |   |   | 3,430,478 |   |
| Payment to related party payable                                                    |   |                              | (1,181,947 | ) |   |   | (5,051,955 | ) |
| Capital lease payment                                                               |   |                              | (20,151    | ) |   |   | (19,293 | ) |
| Net cash (used in) financing activities:                                            |   |                              | (4,578,804 | ) |   |   | (1,640,770 | ) |
| Effect of exchange rate on cash and cash equivalents                                |   |                              | 4,715      |   |   |   | 4,062 |   |
| Net increase in cash and cash equivalents                                           |   |                              | 836,175    |   |   |   | 143,876 |   |
|                                                                                |   |                              |       |   |   |   |   |   |
| Cash and cash equivalents, beginning of year                                        |   |                              | 419,921    |   |   |   | 138,614 |   |
| Cash and cash equivalents, end of year                                              |   | $                                 | 1,256,096  |   |   | $ | 282,490 |   |
|                                                                                |   |                              |       |   |   |   |   |   |
| Supplementary cash flow information:                                                |   |                              |       |   |   |   |   |   |
| Cash paid for interest                                                              |   | $                                 | 24,438     |   |   | $ | 21,417 |   |
| Cash paid for income tax                                                            |   | $                                 | -          |   |   | $ | - |   |

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Table of Contents

|   | 1. | Basis of presentation |
|--------|----|-----------------------|

|   | 2. | Organization and principal activities |
|--------|----|---------------------------------------|

----

Table of Contents

|   | 3.  | Retained Earnings and Statutory Surplus Reserve |
|--------|----------|-------------------------------------------------|

|                         |   | June 30, |       |   | December 31, |   |
|------------------------------|--------|----------|------------|--------|--------------|--------|
|                         |   | 2012     |       |   | 2011         |   |
| PRC statutory reserve funds  |   | $        | 2,178,735  |   |         | $      | 1,074,068 |   |
| Unreserved retained earnings |   |     | 24,364,321 |   |         |   | 20,851,426 |   |
|                         |   | $        | 26,543,056 |   |         | $      | 21,925,494 |   |

|   | 4.  | Concentration of credit risks |
|--------|----------|-------------------------------|

----

Table of Contents

|   | 5. | Cash and cash equivalents |
|--------|----|---------------------------|

|         |   | June 30, |      |   | December 31, |   |
|--------------|--------|----------|-----------|--------|--------------|--------|
|         |   | 2012     |      |   | 2011         |   |
|         |   |     |      |   |         |   |
| Cash on hand |   | $        | 91,664    |   |         | $      | 62,403 |   |
| Cash in bank |   |     | 1,164,432 |   |         |   | 357,518 |   |
| Total        |   | $        | 1,256,096 |   |         | $      | 419,921 |   |

|   | 6. | Accounts receivable |
|--------|----|---------------------|

|                   |   | June 30, |      |   | December 31, |   |
|------------------------|--------|----------|-----------|--------|--------------|--------|
|                   |   | 2012     |      |   | 2011         |   |
|                   |   |     |      |   |         |   |
| Due from third parties |   | $        | 2,302,343 |   |         | $      | 503,697 |   |
| Total                  |   | $        | 2,302,343 |   |         | $      | 503,697 |   |

|   | 7. | Other receivable |
|--------|----|------------------|

|                                |   | June 30, |   |   | December 31, |   |
|-------------------------------------|--------|----------|--------|--------|--------------|--------|
|                                |   | 2012     |   |   | 2011         |   |
| Shangrao Xinchen Guarantee Co.,Ltd. |   | $        | -      |   |         | $      | 84,297 |   |
| Total                               |   | $        | -      |   |         | $      | 84,297 |   |

----

Table of Contents

|   | 8. | Related party transactions |
|--------|----|----------------------------|

| Related Parties                     |   | Relationships                                               |
|-------------------------------------|--------|-------------------------------------------------------------|
|                                |   |                                                        |
| Jiangxi Jiahe Electronics Co., Ltd. |   | The Company's shareholder owns 85% of the shares of Jiangxi |
| Li Xiaoling                         |   | Shareholder of the Company                                  |

|   | a. | Related party receivable |
|--------|----|--------------------------|

|                                                     |   | June 30, |    |   | December 31, |   |
|----------------------------------------------------------|--------|----------|---------|--------|--------------|--------|
|                                                     |   | 2012     |    |   | 2011         |   |
| Jiangxi Jiahe Electronic Co., Ltd. (loan)                |   | $        | -       |   |         | $      | 2,876,447 |   |
| Jiangxi Jiahe Electronic Co., Ltd. (interest receivable) |   |     | -       |   |         |   | 28,764 |   |
| Li Xiaoling                                              |   |     | 209,215 |   |         |   | - |   |
| Total                                                    |   | $        | 209,215 |   |         | $      | 2,905,211 |   |

|   | b. | Related party payable |
|--------|----|-----------------------|

|                                         |   | June 30, |   |   | December 31, |   |
|----------------------------------------------|--------|----------|--------|--------|--------------|--------|
|                                         |   | 2012     |   |   | 2011         |   |
| Li Xiaoling (the shareholder of the Company) |   |     | -      |   |         |   | 882,745 |   |
| Total                                        |   | $        | -      |   |         | $      | 882,745 |   |

----

Table of Contents

|   | 9. | Inventory |
|--------|----|-----------|

|                        |   | June 30, |      |   | December 31, |   |
|-----------------------------|--------|----------|-----------|--------|--------------|--------|
|                        |   | 2012     |      |   | 2011         |   |
| Plants and products         |   |     |      |   |         |   |
| Stump & Bonsai          |   | $        | 2,134,096 |   |         | $      | 3,556,453 |   |
| Arbor                       |   |     | 2,136,821 |   |         |   | 2,562,415 |   |
| Globes                      |   |     | 809,342   |   |         |   | 839,001 |   |
| Saplings                    |   |     | 13,238    |   |         |   | 87,396 |   |
| Root carvings               |   |     | 35,699    |   |         |   | 36,300 |   |
| Dry piles & gloomy wood |   |     | 774,167   |   |         |   | 853,268 |   |
|                        |   | $        | 5,903,363 |   |         | $      | 7,934,833 |   |

|   | 10. | Groves and orchard |
|--------|-----|--------------------|

|                 |   | June 30, |       |   | December 31, |   |
|----------------------|--------|----------|------------|--------|--------------|--------|
|                 |   | 2012     |       |   | 2011         |   |
| Groves and Orchard   |   |     |       |   |         |   |
| Camellia trees       |   | $        | 2,416,692  |   |         | $      | 2,397,802 |   |
| Chinese firs         |   |     | 1,689,482  |   |         |   | 1,601,931 |   |
| Roses                |   |     | 1,654,917  |   |         |   | 1,641,982 |   |
| Chestnut trees       |   |     | 4,847,508  |   |         |   | 4,809,618 |   |
| The original ecology |   |     | 4,135,556  |   |         |   | 4,163,007 |   |
|                 |   | $        | 14,744,155 |   |         | $      | 14,614,340 |   |

|   | 11. | Prepaid lease |
|--------|-----|---------------|

|                                |   | June 30, |    |   | December 31, |   |
|-------------------------------------|--------|----------|---------|--------|--------------|--------|
|                                |   | 2012     |    |   | 2011         |   |
| Prepaid leases – Wu Fu Base   |   | $        | 42,401  |   |         | $      | 84,140 |   |
| Prepaid leases – Zao Tou Base |   |     | 38,835  |   |         |   | 100,338 |   |
| Prepaid leases – Shi Shi Base |   |     | 34,713  |   |         |   | 77,062 |   |
| Total                               |   | $        | 115,949 |   |         | $      | 261,540 |   |

|   | a) | On November 16, 2002, the Company entered into a lease agreement with the local government of Wu Fu Mountain as the Company’s nursery cultivation base. The lease contract is for 30 years starting from November 16, 2002 to November 16, 2032 for RMB535,000 per year. The total rental is RMB16,050,000 (about $1.9 million ). The Company is required to prepay an annual rental of RMB535,000 (about $0.08 million ) in advance for the following year. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | On October 20, 2002, the Company entered into a lease agreement with the local government of Zao Tou Town as the Company’s nursery cultivation base. The lease contract is for 30 years starting from October 20, 2003 to October 20, 2033 for RMB438,000 per year. The total rental is RMB13,140,000 (about $1.6 million). The Company is required to prepay an annual rental fee of RMB438,000 (about $0.07 million) and the minimum lease payment for the capital leased greenhouses of RMB200,000 (about $0.03 million) in advance for the following year. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | c) | On April 1, 2006, the Company entered into a lease agreement with the local government of Shi Shi Town as the Company’s nursery cultivation base. The lease is for 50 years from April 1, 2006 to April 1, 2056 for RMB390,000 per year. The total rental is RMB19,500,000 (about $2.4 million). On January 1, 2007, the Company entered into another lease agreement with the local government of Shi Shi Town for the expansion of the nursery base. The lease is for 50 years from January 1, 2007 to January 1, 2057 for RMB100,000 per year. The total rental is RMB5,000,000 (about $0.6 million). The Company is required to prepay an annual rental of RMB490,000 (about $0.07 million) in advance for the following year. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12. | Prepaid deposit |
|--------|-----|-----------------|

|            |   | June 30, |      |   | December 31, |   |
|-----------------|--------|----------|-----------|--------|--------------|--------|
|            |   | 2012     |      |   | 2011         |   |
| Prepaid deposit |   | $        | 5,949,467 |   |         | $      | - |   |
| Total           |   | $        | 5,949,467 |   |         | $      | - |   |

| Fiscal year ending:      |   | Amount |      |
|--------------------------|--------|--------|-----------|
| 2012                     |   | $      | 2,644,205 |   |
| 2013                     |   |   | 4,627,352 |   |
| Total payment commitment |   | $      | 7,271,557 |   |

|   | 13. | Property and equipment, net |
|--------|-----|-----------------------------|

|                           |   | June 30, |     |   | December 31, |   |
|--------------------------------|--------|----------|----------|--------|--------------|--------|
|                           |   | 2012     |     |   | 2011         |   |
| Base Greenhouses               |   | $        | 437,123  |   |         | $      | 432,808 |   |
| Base Tools and Equipment       |   |     | 19,695   |   |         |   | 23,786 |   |
| Office Equipment               |   |     | 5,611    |   |         |   | - |   |
| Motor Vehicles                 |   |     | 48,045   |   |         |   | - |   |
| Total                          |   |     | 510,474  |   |         |   | 456,594 |   |
| Less: accumulated depreciation |   |     | (132,463 | )      |         |   | (118,670 | ) |
| Total fixed assets, net        |   | $        | 378,011  |   |         | $      | 337,924 |   |

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|   | 14. | Land use rights |
|--------|-----|-----------------|

|               |   | June 30, |    |   | December 31, |   |
|--------------------|--------|----------|---------|--------|--------------|--------|
|               |   | 2012     |    |   | 2011         |   |
| Feng Ling Tou Base |   | $        | 105,586 |   |         | $      | 106,197 |   |
| Long Hu Base       |   |     | 66,822  |   |         |   | 67,118 |   |
| Total              |   | $        | 172,408 |   |         | $      | 173,315 |   |

|   | 15. | Short-term loan |
|--------|-----|-----------------|

|                                      |   | June 30, |    |   | December 31, |   |
|-------------------------------------------|--------|----------|---------|--------|--------------|--------|
|                                      |   | 2012     |    |   | 2011         |   |
| Bank loan from Shangrao Bank Fumin Branch |   | $        | 221,912 |   |         | $      | 220,178 |   |
| Total                                     |   | $        | 221,912 |   |         | $      | 220,178 |   |

|   | 16. | Other payables |
|--------|-----|----------------|

|                  |   | June 30, |    |   | December 31, |   |
|-----------------------|--------|----------|---------|--------|--------------|--------|
|                  |   | 2012     |    |   | 2011         |   |
| Commission payable    |   | $        | 217,703 |   |         | $      | 69,073 |   |
| Staff welfare payable |   |     | 38,643  |   |         |   | 42,286 |   |
| Customer deposit      |   |     | 1,545   |   |         |   | 70,142 |   |
| Total                 |   | $        | 257,891 |   |         | $      | 181,501 |   |

|   | 17. | Commitment and Contingencies |
|--------|-----|------------------------------|

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|   | 18. | Lease commitments |
|--------|-----|-------------------|

|   | (a) | Capital lease as lessee |
|--------|-----|-------------------------|

|                                            |   | June 30, |    |   | December 31, |   |
|-------------------------------------------------|--------|----------|---------|--------|--------------|--------|
|                                            |   | 2012     |    |   | 2011         |   |
| Greenhouse capital lease                        |   | $        | 361,336 |   |         | $      | 378,513 |   |
| Current portion                                 |   |     | 9,325   |   |         |   | 8,728 |   |
| Capital lease obligations, less current portion |   | $        | 352,011 |   |         | $      | 369,785 |   |

| Fiscal year ending:                         |   | Amount |     |
|---------------------------------------------|--------|--------|----------|
| 2012                                        |   | $      | 15,851   |   |
| 2013                                        |   |   | 31,702   |   |
| 2014                                        |   |   | 31,702   |   |
| 2015                                        |   |   | 31,702   |   |
| 2016                                        |   |   | 31,702   |   |
| Thereafter                                  |   |   | 538,934  |   |
| Total minimum lease payment                 |   |   | 681,593  |   |
| Less: Amount representing interest          |   |   | (320,257 | ) |
| Present value of net minimum lease payments |   | $      | 361,336  |   |
| Less current portion                        |   |   | (9,325   | ) |
| Long-term portion                           |   | $      | 352,011  |   |

|   | (b) | Operating lease as lessee |
|--------|-----|---------------------------|

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|    Description of Lease |   |   Date of Lease |              |    Term |     | BasicAnnualRentalAmount |   |    | FutureMinimumRentalAmounts |   |
|----------------------------------------|--------|---------------------------|-------------------|------------------------|----------|-------------------------|--------|---------|----------------------------|--------|
| Wu Fu Base                             |   |                      | 11. 16. 2002      |                   | 30 years |                    | $      | 84,802  |                       |   | $ | 1,725,006 |   |
| Shi Shi Base                           |   |                      | 4.1.2006/1.1.2007 |                   | 50 years |                    |   | 77,669  |                       |   |   | 3,403,469 |   |
| Zao Tou Base                           |   |                      | 10. 20. 2003      |                   | 30 years |                    |   | 69,427  |                       |   |   | 1,476,363 |   |
| Company Base                           |   |                      | 11. 1. 2006       |                   | 6 years  |                    |   | 1,585   |                       |   |   | 793 |   |
| Company office rental                  |   |                      | 1.1.2007          |                   | 8 years  |                    |   | 17,652  |                       |   |   | 44,129 |   |
|                                   |   |                      |              |                   |     |                    | $      | 251,135 |                       |   | $ | 6,649,760 |   |

| Fiscal year ending:          |   | Amount |      |
|------------------------------|--------|--------|-----------|
| 2012                         |   | $      | 125,568   |   |
| 2013                         |   |   | 249,550   |   |
| 2014                         |   |   | 249,550   |   |
| 2015                         |   |   | 231,898   |   |
| 2016                         |   |   | 231,898   |   |
| Thereafter                   |   |   | 5,561,296 |   |
| Total minimum lease payments |   | $      | 6,649,760 |   |

|   | 19. | Income tax |
|--------|-----|------------|

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|                  |   | June 30, |       |   | June 30, |   |
|-----------------------|--------|----------|------------|--------|----------|--------|
|                  |   | 2012     |       |   | 2011     |   |
| Tax at statutory rate |   | $        | 2,091,539  |   |     | $      | 1,703,413 |   |
| Tax exemption         |   |     | (2,091,539 | )      |     |   | (1,703,413 | ) |
|                  |   | $        | -          |   |     | $      | - |   |

|                  |   | June 30, |     |   | June 30, |   |
|-----------------------|--------|----------|----------|--------|----------|--------|
|                  |   | 2012     |     |   | 2011     |   |
| Tax at statutory rate |   | $        | 702,716  |   |     | $      | 1,597,539 |   |
| Tax exemption         |   |     | (702,716 | )      |     |   | (1,597,539 | ) |
|                  |   | $        | -        |   |     | $      | - |   |

|     |   | June 30, |   |   | June 30, |   |
|----------|--------|----------|--------|--------|----------|--------|
|     |   | 2012     |   |   | 2011     |   |
| Current  |   | $        | -      |   |     | $      | - |   |
| Deferred |   |     | -      |   |     |   | - |   |
| Total    |   | $        | -      |   |     | $      | - |   |

|   | 20. | Stockholder Equity |
|--------|-----|--------------------|

|   | 21. | Earnings per share |
|--------|-----|--------------------|

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|                                                               |   | For the Six Months Ended June 30,   |        |
|--------------------------------------------------------------------|--------|-------------------------------------|-------------|
|                                                               |   | 2012                                |        |   | 2011 |   |
| Net income attributable to common stockholders                     |   | $                                   | 8,366,156   |   |   | $ | 6,813,651 |   |
| Basic weighted average outstanding shares of common stock          |   |                                | 20,153,205  |   |   |   | 20,000,000 |   |
| Weighted number of dilutive shares                                 |   |                                | 509,800,000 |   |   |   | 509,800,000 |   |
| Diluted weighted average common stock and common stock equivalents |   |                                | 529,953,205 |   |   |   | 529,800,000 |   |
| Earnings per share:                                                |   |                                |        |   |   |   |   |   |
| Basic                                                              |   | $                                   | 0.42        |   |   | $ | 0.34 |   |
| Dilutive                                                           |   | $                                   | 0.02        |   |   | $ | 0.01 |   |
|                                                               |   |                                |        |   |   |   |   |   |
|                                                               |   |                                |        |   |   |   |   |   |
|                                                               |   | For the Three Months Ended June 30, |        |
|                                                               |   |                                | 2012        |   |   |   | 2011 |   |
| Net income attributable to common stockholders                     |   | $                                   | 2,810,862   |   |   | $ | 6,390,156 |   |
| Basic weighted average outstanding shares of common stock          |   |                                | 20,306,410  |   |   |   | 20,000,000 |   |
| Weighted number of dilutive shares                                 |   |                                | 509,800,000 |   |   |   | 509,800,000 |   |
| Diluted weighted average common stock and common stock equivalents |   |                                | 530,106,410 |   |   |   | 529,800,000 |   |
| Earnings per share:                                                |   |                                |        |   |   |   |   |   |
| Basic                                                              |   | $                                   | 0.14        |   |   | $ | 0.32 |   |
| Dilutive                                                           |   | $                                   | 0.01        |   |   | $ | 0.01 |   |

|   | 22. | Treasury stock purchases |
|--------|-----|--------------------------|

|   | 23. | New accounting pronouncements |
|--------|-----|-------------------------------|

|   | 24. | Subsequent events |
|--------|-----|-------------------|

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|                                     |   |  For the Six Months Ended June 30, |       |   |  Dollar Increase(decrease) |   |   | % increase (decrease) |
|------------------------------------------|--------|-----------------------------------------|------------|--------|---------------------------------|--------|--------|-----------------------|
|                                     |   | 2012                                    |       |   |                            |   |   | 2011                  |   |   |   |   |   |   |   |   |   |   |
| Sales                                    |   | $                                       | 13,289,687 |   |                            |   | 100    | %                     |   | $ | 11,303,134 |   |   |   | 100 | % |   |   | 1,986,553 |   |   |   | 18 | % |
| Cost of Sales                            |   |                                    | 4,056,069  |   |                            |   | 31     | %                     |   |   | 3,866,456 |   |   |   | 34 | % |   |   | 189,613 |   |   |   | 5 | % |
| Gross profit                             |   |                                    | 9,233,618  |   |                            |   | 69     | %                     |   |   | 7,436,678 |   |   |   | 66 | % |   |   | 1,796,940 |   |   |   | 24 | % |
| Selling Expenses                         |   |                                    | 475,173    |   |                            |   | 4      | %                     |   |   | 62,928 |   |   |   | 1 | % |   |   | 412,245 |   |   |   | 655 | % |
| General and Administrative Expenses      |   |                                    | 494,514    |   |                            |   | 4      | %                     |   |   | 75,080 |   |   |   | 1 | % |   |   | 419,434 |   |   |   | 559 | % |
| Income from opeartions                   |   |                                    | 8,263,931  |   |                            |   | 62     | %                     |   |   | 7,298,670 |   |   |   | 65 | % |   |   | 965,261 |   |   |   | 13 | % |
| Susidy income                            |   |                                    | 3,003      |   |                            |   |   |                  |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                          |   |                                    | 148,098    |   |                            |   | 1      | %                     |   |   | 484 |   |   |   | 0 | % |   |   | 147,614 |   |   |   | 30499 | % |
| Interest expenses                        |   |                                    | (48,876    | )      |                            |   | 0      | %                     |   |   | (485,503 | ) |   |   | -4 | % |   |   | 436,627 |   |   |   | -90 | % |
| Income before provision for income taxes |   |                                    | 8,366,156  |   |                            |   | 63     | %                     |   |   | 6,813,651 |   |   |   | 60 | % |   |   | 1,552,505 |   |   |   | 23 | % |
| Provision for income taxes               |   |                                    | -          |   |                            |   | 0      | %                     |   |   | - |   |   |   | 0 | % |   |   | - |   |   |   |   |   |
| Net income                               |   | $                                       | 8,366,156  |   |                            |   | 63     | %                     |   | $ | 6,813,651 |   |   |   | 60 | % |   |   | 1,552,505 |   |   |   | 23 | % |

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|                                     |   |                                      |      |       |   |   |       |   |   |   |       |   |   | Dollar Increase |   |   | % increase |
|------------------------------------------|--------|-------------------------------------------|-----------|------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|-----------------|--------|--------|------------|
|                                     |   |  For the Three Months Ended June 30, |      | (decrease) |   |   | (decrease) |
|                                     |   | 2012                                      |      |       |   |   |       | 2011   |   |   |       |   |   |            |   |   |       |   |
| Sales                                    |   | $                                         | 6,075,758 |       |   |   | 100        | %      |   | $      | 10,517,205 |   |   |            | 100    | %      |       |   | -4,441,447 |   |   |   | -42 | % |
| Cost of Sales                            |   |                                      | 2,593,186 |       |   |   | 43         | %      |   |   | 3,689,155  |   |   |            | 35     | %      |       |   | -1,095,969 |   |   |   | -30 | % |
| Gross profit                             |   |                                      | 3,482,572 |       |   |   | 57         | %      |   |   | 6,828,050  |   |   |            | 65     | %      |       |   | -3,345,478 |   |   |   | -49 | % |
| Selling Expenses                         |   |                                      | 286,778   |       |   |   | 5          | %      |   |   | 36,314     |   |   |            | 0      | %      |       |   | 250,464 |   |   |   | 690 | % |
| General and Administrative Expenses      |   |                                      | 453,189   |       |   |   | 7          | %      |   |   | 35,619     |   |   |            | 0      | %      |       |   | 417,570 |   |   |   | 1172 | % |
| Income from opeartions                   |   |                                      | 2,742,605 |       |   |   | 45         | %      |   |   | 6,756,117  |   |   |            | 64     | %      |       |   | -4,013,512 |   |   |   | -59 | % |
| Susidy income                            |   |                                      | 3,003     |       |   |   |       |   |   |   | -          |   |   |            |   |   |       |   |   |   |   |   |   |   |
| Interest income                          |   |                                      | 100,022   |       |   |   | 2          | %      |   |   | 479        |   |   |            | 0      | %      |       |   | 99,543 |   |   |   | 20781 | % |
| Interest expenses                        |   |                                      | (34,768   | )          |   |   | -1         | %      |   |   | (366,440   | )      |   |            | -3     | %      |       |   | 331,672 |   |   |   | -91 | % |
| Income before provision for income taxes |   |                                      | 2,810,862 |       |   |   | 46         | %      |   |   | 6,390,156  |   |   |            | 61     | %      |       |   | -3,579,294 |   |   |   | -56 | % |
| Provision for income taxes               |   |                                      | -         |       |   |   | 0          | %      |   |   | -          |   |   |            | 0      | %      |       |   | - |   |   |   |   |   |
| Net income                               |   | $                                         | 2,810,862 |       |   |   | 46         | %      |   | $      | 6,390,156  |   |   |            | 61     | %      |       |   | -3,579,294 |   |   |   | -56 | % |

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|                                                 |   | For the Six Months Ended June 30, |       |   | Dollar |   |       | % increase |   |
|------------------------------------------------------|--------|-----------------------------------|------------|--------|--------|--------|------------|------------|--------|
|                                                 |   | 2012                              |       |   | 2011   |   |       | Increase   |   |   | (decrease) |   |
| Net cash provided by operating activities            |   | $                                 | 8,698,897  |   |   | $      | 5,569,574  |       |   |   | 3,129,323 |   |   |   | 56 | % |
| Net cash (used in) investing activities              |   |                              | (3,288,633 | )      |   |   | (3,788,990 | )          |   |   | 500,357 |   |   |   | -13 | % |
| Net cash (used in) financing activities:             |   |                              | (4,578,804 | )      |   |   | (1,640,770 | )          |   |   | (2,938,034 | ) |   |   | 179 | % |
| Effect of exchange rate on cash and cash equivalents |   |                              | 4,715      |   |   |   | 4,062      |       |   |   | 653 |   |   |   | 16 | % |
| Net cash inflow                                      |   | $                                 | 836,175    |   |   | $      | 143,876    |       |   |   | 692,299 |   |   |   | 481 | % |

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| 31.1 | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(Rules 13a-14 and 15d-14 of the Exchange Act). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(Rules 13a-14 and 15d-14 of the Exchange Act). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18U.S.C. 1350). |
|------|-------------------------------------------------------------------------------------------------------------------------|

| 32.2  | Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18U.S.C. 1350). |
|------------|-------------------------------------------------------------------------------------------------------------------------|

| 101 *        ** | The following financial information from our Quarterly Report on Form 10-Q for the quarter ended June 30,2012 formatted in Extensible Business Reporting Language (XBRL): (i) the Balance Sheets, (ii) the Statements of Operations and Comprehensive Income, (iii) the Statements of Changes in Stockholders’ Equity, (iv) Statements of Cash Flows, and  (v) Notes to Financial Statements. |
|----------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Date: August 14, 2012 | Dionics, Inc.                       |
|-----------------------|-------------------------------------|
|                  |                                |
|                  | By:                                 | /s/ Liu Shuzong |
|                  | Liu ShuzhongChief Executive Officer |

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