----

----

| [x] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|----------------------------------------------------------------------------------------------------|

| [  ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----------|-----------------------------------------------------------------------------------------------|

| Nevada                                                        |   | 20-1977020                        |
|---------------------------------------------------------------|--------|-----------------------------------|
| (State or other jurisdictionof incorporation or organization) |   | (IRS Employer Identification No.) |

| Large Accelerated Filer |   |   | Accelerated Filer         |   |
|-------------------------|--------|--------|---------------------------|--------|
| Non-accelerated filer   |   |   | Smaller reporting company | X      |

----

| PART I - FINANCIAL INFORMATION                                                                                          |   3  |
|-------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                                                                    |      |
| Item 1.  Financial Statements                                                                                 |   3  |
|                                                                                                                    |      |
|       Consolidated Balance Sheets at March 31, 2010 (unaudited) and 2009                  | 3         |
|                                                                                                                    |      |
| Unaudited Consolidated Statements of Operations for the three and nine months ended March 31, 2010 and 2009             | 4         |
|                                                                                                                    |      |
| Unaudited Consolidated Statements of Cash Flows for the  nine  months ended March 31, 2010 and 2009 | 5         |
|                                                                                                                    |      |
| Unaudited Notes to Consolidated Financial Statements                                                                    | 6         |
|                                                                                                                    |      |
| Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations          | 17        |
|                                                                                                                    |      |
| Item 3.  Quantitative and Qualitative Disclosures About Market Risk                                           | 22        |
|                                                                                                                    |      |
| Item 4T. Controls and Procedures                                                                                        | 23        |
|                                                                                                                    |      |
|                                                                                                                    |      |
| PART II – OTHER INFORMATION                                                                                       |   24 |
|                                                                                                                    |      |
| Item 1.  Legal Proceedings                                                                                    | 24        |
|                                                                                                                    |      |
| Item 1A. Risk Factors                                                                                                   | 24        |
|                                                                                                                    |      |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                                          | 24        |
|                                                                                                                    |      |
| Item 3.  Defaults Upon Senior Securities                                                                      | 24        |
|                                                                                                                    |      |
| Item 4.  (Removed and Reserved)                                                                               | 24        |
|                                                                                                                    |      |
| Item 5.  Other Information                                                                                    | 24        |
|                                                                                                                    |      |
| Item 6.  Exhibits                                                                                             | 25        |
|                                                                                                                    |      |

----

|                                                                         |   | March 31,   |       |   | June 30, |   |
|------------------------------------------------------------------------------|--------|-------------|------------|--------|----------|--------|
|                                                                         |   | 2010        |       |   | 2009     |   |
|                                                                         |   | (Unaudited) |       |   |     |   |
| Assets                                                                       |   |        |       |   |     |   |
| Current assets                                                               |   |        |       |   |     |   |
| Cash and cash equivalents                                                    |   | $           | 8,748,785  |   |     | $      | 2,969,699 |   |
| Restricted cash                                                              |   |        | 2,854,799  |   |     |   | 3,403,868 |   |
| Accounts receivable, net of allowance for doubtful accounts of $1,495,875    |   |        |       |   |     |   |   |   |
|   and $1,496,723 at March 31, 2010 and June 30, 2009, respectively |   |        | 11,279,038 |   |     |   | 9,063,973 |   |
| Inventory                                                                    |   |        | 8,483,069  |   |     |   | 5,353,193 |   |
| Trade notes receivable                                                       |   |        | 942,810    |   |     |   | - |   |
| Other receivables                                                            |   |        | 1,307,100  |   |     |   | 1,205,983 |   |
| Advance payments                                                             |   |        | 2,901,920  |   |     |   | 503,143 |   |
| Prepaid expenses and other current assets                                    |   |        | 220,083    |   |     |   | 246,344 |   |
| Prepaid other taxes                                                          |   |        | -          |   |     |   | 266,664 |   |
| Total current assets                                                         |   |        | 36,737,604 |   |     |   | 23,012,867 |   |
| Property and equipment, net                                                  |   |        | 12,738,860 |   |     |   | 13,107,216 |   |
| Other assets                                                                 |   |        | 105,505    |   |     |   | - |   |
|                                                                         |   |        |       |   |     |   |   |   |
| Total assets                                                                 |   | $           | 49,581,969 |   |     | $      | 36,120,083 |   |
|                                                                         |   |        |       |   |     |   |   |   |
| Liabilities                                                                  |   |        |       |   |     |   |   |   |
| Current liabilities                                                          |   |        |       |   |     |   |   |   |
| Accounts payable and accrued expenses                                        |   | $           | 3,790,364  |   |     | $      | 3,277,973 |   |
| Trade notes payable                                                          |   |        | 3,343,388  |   |     |   | 3,212,704 |   |
| Advance payments from customers                                              |   |        | 455,799    |   |     |   | 327,898 |   |
| Short-term bank loans                                                        |   |        | 2,934,000  |   |     |   | 2,344,000 |   |
| Current portion of long-term debt                                            |   |        | 1,511,010  |   |     |   | 951,811 |   |
| Income tax payable                                                           |   |        | 303,230    |   |     |   | 167,429 |   |
| Other current liabilities                                                    |   |        | 69,938     |   |     |   | 97,827 |   |
| Total current liabilities                                                    |   |        | 12,407,729 |   |     |   | 10,379,642 |   |
| Long-term debt                                                               |   |        | 4,421,993  |   |     |   | 1,985,075 |   |
| Total liabilities                                                            |   |        | 16,829,722 |   |     |   | 12,364,717 |   |
|                                                                         |   |        |       |   |     |   |   |   |
| Equity                                                                       |   |        |       |   |     |   |   |   |
| Stockholders’ equity                                                   |   |        |       |   |     |   |   |   |
| Series A convertible preferred stock, $0.0001 par value, 5,608,564           |   |        |       |   |     |   |   |   |
|   shares authorized, issued and outstanding                        |   |        | 561        |   |     |   | 561 |   |
| Series B convertible preferred stock, $0.0001 par value, 5,000,000           |   |        |       |   |     |   |   |   |
|   shares authorized, issued and outstanding                        |   |        | 500        |   |     |   | 500 |   |
| Series C convertible preferred stock, $0.0001 par value, 12,000,000          |   |        |       |   |     |   |   |   |
|   shares authorized, issued and outstanding                        |   |        | 1200       |   |     |   | - |   |
| Common stock, $0.001 par value, 300,000,000 shares authorized,               |   |        |       |   |     |   |   |   |
|   36,368,334 and 25,005,000 shares issued and outstanding at March |   |        |       |   |     |   |   |   |
|   31, 2010 and June 30, 2009, respectively                         |   |        | 36,368     |   |     |   | 25,005 |   |
| Series A preferred shares                                                    |   |        | 2,484,226  |   |     |   | 2,484,226 |   |
| Series B preferred shares                                                    |   |        | 1,390,853  |   |     |   | 1,390,853 |   |
| Warrants                                                                     |   |        | -          |   |     |   | 4,634,678 |   |
| Placement agent warrants                                                     |   |        | 1,172,487  |   |     |   | 1,172,487 |   |
| Additional paid-in capital                                                   |   |        | 22,011,719 |   |     |   | 11,473,104 |   |
| Retained earnings (deficit)                                                  |   |        | 1,940,854  |   |     |   | (1,106,478 | ) |
| Statutory reserves                                                           |   |        | 1,010,026  |   |     |   | 1,010,026 |   |
| Accumulated other comprehensive income                                       |   |        | 2,598,475  |   |     |   | 2,565,276 |   |
| Total stockholders’ equity                                             |   |        | 32,647,269 |   |     |   | 23,650,238 |   |
| Noncontrolling interest                                                      |   |        | 104,978    |   |     |   | 105,128 |   |
| Total equity                                                                 |   |        | 32,752,247 |   |     |   | 23,755,366 |   |
|                                                                         |   |        |       |   |     |   |   |   |
| Total liabilities and equity                                                 |   | $           | 49,581,969 |   |     | $      | 36,120,083 |   |

----

|                                                     |   | For the Three Months Ended |       |   | For the Nine Months Ended |   |
|----------------------------------------------------------|--------|----------------------------|------------|--------|---------------------------|--------|
|                                                     |   | March 31,                  |       |   | March 31,                 |   |
|                                                     |   | 2010                       |       |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |
| Sales                                                    |   | $                          | 12,876,271 |   |                      | $      | 11,968,137 |   |   | $ | 42,604,455 |   |   | $ | 27,507,254 |   |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                            |   |                       | 10,125,261 |   |                      |   | 8,637,784 |   |   |   | 31,994,077 |   |   |   | 20,840,352 |   |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                             |   |                       | 2,751,010  |   |                      |   | 3,330,353 |   |   |   | 10,610,378 |   |   |   | 6,666,902 |   |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                       |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative                      |   |                       | 1,948,808  |   |                      |   | 3,152,896 |   |   |   | 6,642,627 |   |   |   | 6,777,984 |   |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations                            |   |                       | 802,202    |   |                      |   | 177,457 |   |   |   | 3,967,751 |   |   |   | (111,082 | ) |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expenses):                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                                    |   |                       | (104,741   | )      |                      |   | (55,803 | ) |   |   | (296,797 | ) |   |   | (163,420 | ) |
| Non-operating income, net                                |   |                       | 228        |   |                      |   | 487 |   |   |   | 86,594 |   |   |   | 14,257 |   |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Total other income (expenses)                            |   |                       | (104,513   | )      |                      |   | (55,316 | ) |   |   | (210,203 | ) |   |   | (149,163 | ) |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before provision for income taxes          |   |                       | 697,689    |   |                      |   | 122,141 |   |   |   | 3,757,548 |   |   |   | (260,245 | ) |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                               |   |                       | 143,148    |   |                      |   | 167,372 |   |   |   | 710,510 |   |   |   | 167,372 |   |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                        |   |                       | 554,541    |   |                      |   | (45,231 | ) |   |   | 3,047,038 |   |   |   | (427,617 | ) |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Less: net (loss) attributable to noncontrolling interest |   |                       | (149       | )      |                      |   | (378 | ) |   |   | (294 | ) |   |   | (937 | ) |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) attributable to JPAK                   |   |                       | 554,690    |   |                      |   | (44,853 | ) |   |   | 3,047,332 |   |   |   | (426,680 | ) |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Undistributed income attributable to preferred           |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|   stockholders                                 |   |                       | 257,672    |   |                      |   | - |   |   |   | 1,379,110 |   |   |   | - |   |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) applicable to common                   |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|   stockholders                                 |   |                       | 297,018    |   |                      |   | (44,853 | ) |   |   | 1,668,222 |   |   |   | (426,680 | ) |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss)                        |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                  |   |                       | 8,011      |   |                      |   | (40,888 | ) |   |   | 33,199 |   |   |   | (80,171 | ) |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                              |   | $                          | 562,701    |   |                      | $      | (85,741 | ) |   | $ | 3,080,531 |   |   | $ | (506,851 | ) |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per common share                   |   | $                          | 0.01       |   |                      | $      | (0.00 | ) |   | $ | 0.05 |   |   | $ | (0.02 | ) |
| Diluted earnings (loss) per common share                 |   | $                          | 0.01       |   |                      | $      | (0.00 | ) |   | $ | 0.05 |   |   | $ | (0.02 | ) |
|                                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|   outstanding                                  |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|      Basic                      |   |                       | 36,368,334 |   |                      |   | 24,805,000 |   |   |   | 31,489,511 |   |   |   | 24,805,000 |   |
|      Diluted                    |   |                       | 68,442,656 |   |                      |   | 24,805,000 |   |   |   | 57,651,605 |   |   |   | 24,805,000 |   |

----

|                                                                                                                    |   | For the Nine Months Ended March 31, |       |
|-------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|
|                                                                                                                    |   | 2010                                |       |   | 2009 |   |
|                                                                                                                    |   |                                |       |   |   |   |
| Cash flows from operating activities:                                                                                   |   |                                |       |   |   |   |
| Net income (loss)                                                                                                       |   | $                                   | 3,047,332  |   |   | $ | (426,680 | ) |
| Adjustments to reconcile net income (loss) to net cash                                                                  |   |                                |       |   |   |   |   |   |
|   provided by (used in) operating activities:                                                                 |   |                                |       |   |   |   |   |   |
| Noncontrolling interest                                                                                                 |   |                                | (294       | ) |   |   | (937 | ) |
| Depreciation                                                                                                            |   |                                | 1,168,485  |   |   |   | 909,320 |   |
| Share-based payment                                                                                                     |   |                                | -          |   |   |   | 405,000 |   |
| Loss (gain) on disposal of fixed assets                                                                                 |   |                                | 2,355      |   |   |   | (332 | ) |
| Provision for bad debts                                                                                                 |   |                                | -          |   |   |   | 1,395,887 |   |
| Changes in assets and liabilities:                                                                                      |   |                                |       |   |   |   |   |   |
| Accounts receivable                                                                                                     |   |                                | (2,201,790 | ) |   |   | (2,442,127 | ) |
| Inventory                                                                                                               |   |                                | (3,121,290 | ) |   |   | 2,202,674 |   |
| Trade notes receivable                                                                                                  |   |                                | (942,425   | ) |   |   | - |   |
| Other receivables                                                                                                       |   |                                | (99,430    | ) |   |   | (135,496 | ) |
| Advance payments                                                                                                        |   |                                | (741,029   | ) |   |   | (1,032,099 | ) |
| Prepaid expenses and other current assets                                                                               |   |                                | 26,568     |   |   |   | (192,744 | ) |
| Prepaid other taxes                                                                                                     |   |                                | 266,919    |   |   |   | 227,088 |   |
| Other assets                                                                                                            |   |                                | (105,461   | ) |   |   | - |   |
| Accounts payable and accrued expenses                                                                                   |   |                                | 507,918    |   |   |   | (1,399,169 | ) |
| Advance payments from customers                                                                                         |   |                                | 127,401    |   |   |   | 29,730 |   |
| Income tax payable                                                                                                      |   |                                | 135,517    |   |   |   | 167,372 |   |
| Other current liabilities                                                                                               |   |                                | (28,010    | ) |   |   | (18,565 | ) |
|                  Total adjustments |   |                                | (5,004,566 | ) |   |   | 115,602 |   |
|                                                                                                                    |   |                                |       |   |   |   |   |   |
| Net cash used in operating activities                                                                                   |   |                                | (1,957,234 | ) |   |   | (311,078 | ) |
|                                                                                                                    |   |                                |       |   |   |   |   |   |
| Cash flows from investing activities:                                                                                   |   |                                |       |   |   |   |   |   |
| Advance payments for fixed assets                                                                                       |   |                                | (1,656,081 | ) |   |   | - |   |
| Additions to property and equipment                                                                                     |   |                                | (784,748   | ) |   |   | (1,335,995 | ) |
| Proceeds from disposal of fixed assets                                                                                  |   |                                | -          |   |   |   | 48,352 |   |
|                                                                                                                    |   |                                |       |   |   |   |   |   |
| Net cash used in investing activities                                                                                   |   |                                | (2,440,829 | ) |   |   | (1,287,643 | ) |
|                                                                                                                    |   |                                |       |   |   |   |   |   |
| Cash flows from financing activities:                                                                                   |   |                                |       |   |   |   |   |   |
| Proceeds from short-term debt                                                                                           |   |                                | 586,560    |   |   |   | - |   |
| Issuance (repayment) of trade notes payable                                                                             |   |                                | 126,246    |   |   |   | (1,065,535 | ) |
| Proceeds from long-term debt                                                                                            |   |                                | 2,990,884  |   |   |   | 533,810 |   |
|       Additional paid-in capital                                                          |   |                                | 5,916,500  |   |   |   | - |   |
|                                                                                                                    |   |                                |       |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                                                     |   |                                | 9,620,190  |   |   |   | (531,725 | ) |
|                                                                                                                    |   |                                |       |   |   |   |   |   |
| Effect of foreign currency translation on cash                                                                          |   |                                | 7,890      |   |   |   | (146,649 | ) |
|                                                                                                                    |   |                                |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents and                                                                |   |                                |       |   |   |   |   |   |
|   restricted cash                                                                                             |   |                                | 5,230,017  |   |   |   | (2,277,095 | ) |
|                                                                                                                    |   |                                |       |   |   |   |   |   |
| Cash and cash equivalents and restricted cash –  beginning                                              |   |                                | 6,373,567  |   |   |   | 7,218,904 |   |
|                                                                                                                    |   |                                |       |   |   |   |   |   |
| Cash and cash equivalents and restricted cash – ending                                                            |   | $                                   | 11,603,584 |   |   | $ | 4,941,809 |   |
|                                                                                                                    |   |                                |       |   |   |   |   |   |
| Supplemental schedule of non cash activities                                                                            |   |                                |       |   |   |   |   |   |
| Advance payments reclassed to construction in progress                                                                  |   | $                                   | -          |   |   | $ | 80,548 |   |

----

----

|                          |   | March 31, 2010 |          |   | June 30, 2009 |   |
|-------------------------------|--------|----------------|---------------|--------|---------------|--------|
|                          |   |           |          |   |          |   |
| Finished goods                |   | $              | 2,214,236     |   |          | $      | 939,428 |   |
| Raw materials                 |   |           | 5,734,403     |   |          |   | 3,912,953 |   |
| Parts and supplies            |   |           | 185,273       |   |          |   | 84,806 |   |
| Work in process               |   |           |  349,157 |   |          |   |  416,006 |   |
|                          |   |           |          |   |          |   |   |   |
|     Total |   | $              | 8,483,069     |   |          | $      | 5,353,193 |   |

----

|                             |   |           |             |   |          |   |
|----------------------------------|--------|----------------|------------------|--------|---------------|--------|
|                             |   | March 31, 2010 |             |   | June 30, 2009 |   |
|                             |   |           |             |   |          |   |
| Buildings                        |   | $              | 4,654,614        |   |          | $      | 4,463,528 |   |
| Machinery and equipment          |   |           |  17,401,165 |   |          |   |  16,817,851 |   |
|     Subtotal |   |           | 22,055,779       |   |          |   | 21,281,379 |   |
| Less: Accumulated depreciation   |   |           |  9,352,127  |   |          |   |  8,174,163 |   |
|                             |   |           | 12,703,652       |   |          |   | 13,107,216 |   |
| Add: Construction in progress    |   |           | 35,208           |   |          |   | - |   |
|                             |   |           |             |   |          |   |   |   |
|     Total    |   | $              | 12,738,860       |   |          | $      | 13,107,216 |   |

|                          |   | March 31, 2010 |          |   | June 30, 2009 |   |
|-------------------------------|--------|----------------|---------------|--------|---------------|--------|
|                          |   |           |          |   |          |   |
| Accounts payable              |   | $              | 3,581,773     |   |          | $      | 3,032,577 |   |
| Accrued expenses              |   |           |  208,591 |   |          |   |  245,396 |   |
|                          |   |           |          |   |          |   |   |   |
|     Total |   | $              | 3,790,364     |   |          | $      | 3,277,973 |   |

----

|                                                                           |   | March 31, |      |   | June 30, |   |
|--------------------------------------------------------------------------------|--------|-----------|-----------|--------|----------|--------|
|                                                                           |   | 2010      |      |   | 2009     |   |
| On January 22, 2009, the Company obtained a loan from Qingdao City             |   |      |      |   |     |   |
| Commercial Bank, out of which, the principal is to be paid in full by January  |   |      |      |   |     |   |
| 22, 2010. Interest is to be calculated using an annual fixed rate of 5.31%     |   |      |      |   |     |   |
| and paid monthly. The loan is secured by the company's property and            |   |      |      |   |     |   |
| equipment.                                                                     |   | $         | -         |   |     | $      | 2,344,000 |   |
|                                                                           |   |      |      |   |     |   |   |   |
| On January 18, 2010, the Company obtained a loan from Qingdao City             |   |      |      |   |     |   |   |   |
| Commercial Bank, out of which, the principal is to be paid in full by January  |   |      |      |   |     |   |   |   |
| 18, 2011. Interest is to be calculated using an annual fixed rate of 5.31%     |   |      |      |   |     |   |   |   |
| and paid monthly. The loan is secured by the company's property.               |   | $         | 586,800   |   |     | $      | - |   |
|                                                                           |   |      |      |   |     |   |   |   |
| On February 11, 2010, the Company obtained a loan from Qingdao City            |   |      |      |   |     |   |   |   |
| Commercial Bank, out of which, the principal is to be paid in full by February |   |      |      |   |     |   |   |   |
| 11, 2011. Interest is to be calculated using an annual fixed rate of 5.31%     |   |      |      |   |     |   |   |   |
| and paid monthly. The loan is secured by the company's property.               |   | $         | 2,347,200 |   |     | $      | - |   |
|                                                                           |   |      |      |   |     |   |   |   |
| Total short term bank loans                                                    |   | $         | 2,934,000 |   |     | $      | 2,344,000 |   |
|                                                                           |   |      |      |   |     |   |   |   |

----

|                                                                          |   | March 31, |      |   | June 30, |   |
|-------------------------------------------------------------------------------|--------|-----------|-----------|--------|----------|--------|
|                                                                          |   | 2010      |      |   | 2009     |   |
| The Company obtained loans from employees, upon which interest is             |   |      |      |   |     |   |
| payable at an annual fixed rate of 10%.  Interest payments are made |   |      |      |   |     |   |
| semi-annually with no principal payments due until May 31, 2010,              |   |      |      |   |     |   |
| as per the terms of the loan agreement.                                       |   | $         | 4,660,659 |   |     | $      | 2,936,886 |   |
|                                                                          |   |      |      |   |     |   |   |   |
| On November 27, 2009, the Company has entered into a contract with a          |   |      |      |   |     |   |   |   |
| third party to obtain a non-interest bearing mortgage loan collateralized by  |   |      |      |   |     |   |   |   |
| their equipment. The Company received the contractual amount of               |   |      |      |   |     |   |   |   |
| approximately $1.4 million and agreed to pay back the loan in 48              |   |      |      |   |     |   |   |   |
| installments over four years.                                                 |   | $         | 1,272,344 |   |     | $      | - |   |
|                                                                          |   |      |      |   |     |   |   |   |
| Total                                                                         |   | $         | 5,933,003 |   |     | $      | 2,936,886 |   |
|                                                                          |   |      |      |   |     |   |   |   |
| Less: Current portion                                                         |   |      | 1,511,010 |   |     |   | 951,811 |   |
|                                                                          |   |      |      |   |     |   |   |   |
| Total long-term loans                                                         |   | $         | 4,421,993 |   |     | $      | 1,985,075 |   |

----

----

----

| Net income                                              |   | $      | 554,690 |   |
|---------------------------------------------------------|--------|--------|---------|--------|
| Less dividends paid to:                                 |   |   |    |   |
|   Common shareholders                         |   |   | -       |   |
|   Series A convertible preferred shareholders |   |   | -       |   |
|   Series B convertible preferred shareholders |   |   | -       |   |
|   Series C convertible preferred shareholders |   |   |  - |   |
| Undistributed 2009 earnings                             |   | $      | 554,690 |   |

|  Basic earnings per share amounts: |   |   |   |   |            |   |   |            |   |   |            |   |
|-----------------------------------------|--------|--------|--------|--------|-----------------|--------|--------|-----------------|--------|--------|-----------------|--------|
|                                    |   |   |   |   | Series A        |   |   | Series B        |   |   | Series C        |   |
|                                    |   | Common |   |   | convertible     |   |   | convertible     |   |   | convertible     |   |
|                                    |   | Stock  |   |   | preferred stock |   |   | preferred stock |   |   | preferred stock |   |
|                                    |   |   |   |   |            |   |   |            |   |   |            |   |
| Distributed earnings                    |   | $      | 0.00   |   |            | $      | 0.00   |            |   | $      | 0.00            |   |   | $ | 0.00 |   |
| Undistributed earnings                  |   |   | 0.01   |   |            |   | 0.02   |            |   |   | 0.01            |   |   |   | 0.01 |   |
|   Totals                      |   | $      | 0.01   |   |            | $      | 0.02   |            |   | $      | 0.01            |   |   | $ | 0.01 |   |

|                                |   | Distributed & |    |   |   |   |       |      |   |
|-------------------------------------|--------|-------------------|---------|--------|--------|--------|------------|-----------|--------|
|                                |   | Undistributed     |    |   |   |   |       |      |   |
|                                |   | earnings to       |    |   |   |   |       |      |   |
|                                |   | Common            |    |   | Common |   |       | Earnings  |   |
|                                |   | Stock             |    |   | Shares |   |       | Per Share |   |
|                                |   |              |    |   |   |   |       |      |   |
| As reported - Basic                 |   | $                 | 297,018 |   |   |   | 36,368,334 |      |   | $ | 0.01 |   |
| Warrants                            |   |              | -       |   |   |   | 523,861    |      |   |   | - |   |
|                                |   |              | 297,018 |   |   |   | 36,892,195 |      |   | $ | 0.01 |   |
| Series A preferred stock conversion |   |              | 91,610  |   |   |   | 11,217,128 |      |   |   | - |   |
| Series B preferred stock conversion |   |              | 68,058  |   |   |   | 8,333,333  |      |   |   | - |   |
| Series C preferred stock conversion |   |              | 98,004  |   |   |   | 12,000,000 |      |   |   | - |   |
| Diluted earnings for common stock   |   | $                 | 554,690 |   |   |   | 68,442,656 |      |   | $ | 0.01 |   |

----

| Net income                                  |   |   |   |   |            | $      | (44,853 | )               |
|---------------------------------------------|--------|--------|--------|--------|-----------------|--------|---------|-----------------|
| Less dividends paid to:                     |   |   |   |   |            |   |    |            |
| Common shareholders                         |   |   |   |   |            |   | -       |            |
| Series A convertible preferred shareholders |   |   |   |   |            |   | -       |            |
| Series B convertible preferred shareholders |   |   |   |   |            |   |  - |            |
| Undistributed earnings                      |   |   |   |   |            | $      | (44,853 | )               |
|                                        |   |   |   |   |            |   |    |            |
| Basic earnings per share amounts:           |   |   |   |   |            |   |    |            |
|                                        |   |   |   |   | Series A        |   |    | Series B        |   |
|                                        |   | Common |   |   | Convertible     |   |    | convertible     |   |
|                                        |   | Stock  |   |   | preferred stock |   |    | preferred stock |   |
|                                        |   |   |   |   |            |   |    |            |   |   |
| Distributed earnings                        |   | $      | 0.00   |   |            | $      | 0.00    |            |   | $ | 0.00 |   |
| Undistributed earnings                      |   |   | (0.00  | )      |            |   | 0.00    |            |   |   | 0.00 |   |
|   Totals                          |   | $      | (0.00  | )      |            | $      | 0.00    |            |   | $ | 0.00 |   |

|                                |   | Distributed & |    |   |   |   |       |      |   |
|-------------------------------------|--------|-------------------|---------|--------|--------|--------|------------|-----------|--------|
|                                |   | Undistributed     |    |   |   |   |       |      |   |
|                                |   | earnings to       |    |   |   |   |       |      |   |
|                                |   | Common            |    |   | Common |   |       | Earnings  |   |
|                                |   | Stock             |    |   | Shares |   |       | Per Share |   |
|                                |   |              |    |   |   |   |       |      |   |
| As reported - Basic                 |   | $                 | (44,853 | )      |   |   | 24,805,000 |      |   | $ | (0.00 | ) |
| Warrants                            |   |              |  - |   |   |   | -          |      |   |   | - |   |
|                                |   |              | (44,853 | )      |   |   | 24,805,000 |      |   | $ | (0.00 | ) |
| Series A preferred stock conversion |   |              | -       |   |   |   | -          |      |   |   | - |   |
| Series B preferred stock conversion |   |              |  - |   |   |   | -          |      |   |   | - |   |
| Diluted earnings for common stock   |   | $                 | (44,853 | )      |   |   | 24,805,000 |      |   | $ | (0.00 | ) |

| Net income                                              |   | $      | 3,047,332 |   |
|---------------------------------------------------------|--------|--------|-----------|--------|
| Less dividends paid to:                                 |   |   |      |   |
|   Common shareholders                         |   |   | -         |   |
|   Series A convertible preferred shareholders |   |   | -         |   |
|   Series B convertible preferred shareholders |   |   | -         |   |
|   Series C convertible preferred shareholders |   |   | -         |   |
| Undistributed 2009 earnings                             |   | $      | 3,047,332 |   |
|                                                    |   |   |      |   |

| Basic earnings per share smounts: |   |   |   |   |            |   |   |            |   |   |            |   |
|-----------------------------------|--------|--------|--------|--------|-----------------|--------|--------|-----------------|--------|--------|-----------------|--------|
|                              |   |   |   |   | Series A        |   |   | Series B        |   |   | Series C        |   |
|                              |   | Common |   |   | convertible     |   |   | convertible     |   |   | convertible     |   |
|                              |   | Stock  |   |   | preferred stock |   |   | preferred stock |   |   | preferred stock |   |
|                              |   |   |   |   |            |   |   |            |   |   |            |   |
| Distributed earnings              |   | $      | 0.00   |   |            | $      | 0.00   |            |   | $      | 0.00            |   |   | $ | 0.00 |   |
| Undistributed earnings            |   |   | 0.05   |   |            |   | 0.11   |            |   |   | 0.09            |   |   |   | 0.03 |   |
|   Totals                |   | $      | 0.05   |   |            | $      | 0.11   |            |   | $      | 0.09            |   |   | $ | 0.03 |   |

----

|                                |   | Distributed & |      |   |   |   |       |      |   |
|-------------------------------------|--------|-------------------|-----------|--------|--------|--------|------------|-----------|--------|
|                                |   | Undistributed     |      |   |   |   |       |      |   |
|                                |   | earnings to       |      |   |   |   |       |      |   |
|                                |   | Common            |      |   | Common |   |       | Earnings  |   |
|                                |   | Stock             |      |   | Shares |   |       | Per Share |   |
|                                |   |              |      |   |   |   |       |      |   |
| As reported - Basic                 |   | $                 | 1,668,222 |   |   |   | 31,489,511 |      |   | $ | 0.05 |   |
| Warrants                            |   |              | -         |   |   |   | 129,882    |      |   |   | - |   |
|                                |   |              | 1,668,222 |   |   |   | 31,619,393 |      |   | $ | 0.05 |   |
| Series A preferred stock conversion |   |              | 594,250   |   |   |   | 11,217,128 |      |   |   | -- |   |
| Series B preferred stock conversion |   |              | 441,476   |   |   |   | 8,333,333  |      |   |   | -- |   |
| Series C preferred stock conversion |   |              | 343,384   |   |   |   | 6,481,751  |      |   |   | - |   |
| Diluted earnings for common stock   |   | $                 | 3,047,332 |   |   |   | 57,651,605 |      |   | $ | 0.05 |   |

| Basic EPS for the nine months ended March 31, 2009 was computed as follows: |   |   |   |   |            |   |     |            |
|-----------------------------------------------------------------------------|--------|--------|--------|--------|-----------------|--------|----------|-----------------|
| Net income                                                                  |   |   |   |   |            | $      | (426,680 | )               |
| Less dividends paid to:                                                     |   |   |   |   |            |   |     |            |
| Common shareholders                                                         |   |   |   |   |            |   | -        |            |
| Series A convertible preferred shareholders                                 |   |   |   |   |            |   | -        |            |
| Series B convertible preferred shareholders                                 |   |   |   |   |            |   |  -  |            |
| Undistributed earnings                                                      |   |   |   |   |            | $      | (426,680 | )               |
|                                                                        |   |   |   |   |            |   |     |            |
| Basic earnings per share amounts:                                           |   |   |   |   |            |   |     |            |
|                                                                        |   |   |   |   | Series A        |   |     | Series B        |   |
|                                                                        |   | Common |   |   | Convertible     |   |     | convertible     |   |
|                                                                        |   | Stock  |   |   | preferred stock |   |     | preferred stock |   |
|                                                                        |   |   |   |   |            |   |     |            |   |   |
| Distributed earnings                                                        |   | $      | 0.00   |   |            | $      | 0.00     |            |   | $ | 0.00 |   |
| Undistributed earnings                                                      |   |   | (0.02  | )      |            |   | 0.00     |            |   |   | 0.00 |   |
|   Totals                                                          |   | $      | (0.02  | )      |            | $      | 0.00     |            |   | $ | 0.00 |   |

|                                |   | Distributed & |     |   |   |   |       |      |   |
|-------------------------------------|--------|-------------------|----------|--------|--------|--------|------------|-----------|--------|
|                                |   | Undistributed     |     |   |   |   |       |      |   |
|                                |   | earnings to       |     |   |   |   |       |      |   |
|                                |   | Common            |     |   | Common |   |       | Earnings  |   |
|                                |   | Stock             |     |   | Shares |   |       | Per Share |   |
|                                |   |              |     |   |   |   |       |      |   |
| As reported - Basic                 |   | $                 | (426,680 | )      |   |   | 24,805,000 |      |   | $ | (0.02 | ) |
| Warrants                            |   |              |  -  |   |   |   | -          |      |   |   | -- |   |
|                                |   |              | (426,680 | )      |   |   | 24,805,000 |      |   | $ | (0.02 | ) |
| Series A preferred stock conversion |   |              | -        |   |   |   | -          |      |   |   | -- |   |
| Series B preferred stock conversion |   |              |  -  |   |   |   | -          |      |   |   | -- |   |
| Diluted earnings for common stock   |   | $                 | (426,680 | )      |   |   | 24,805,000 |      |   | $ | (0.02 | ) |

----

|                       |   | Nine Months Ended March 31, |    |
|----------------------------|--------|-----------------------------|---------|
|                       |   | 2010                        |    |   | 2009 |   |
|                       |   |                        |    |   |   |   |
| Cash paid for interest     |   | $                           | 446,551 |   |   | $ | 300,148 |   |
| Cash paid for income taxes |   | $                           | 547,609 |   |   | $ | - |   |

----

----

| ● |   | Increasing output to further penetrate the China market;            |
|---------|--------|--------------------------------------------------------------------------|
| ● |   | Offering bundled packaging materials and liquid filling machines;   |
| ● |   | Increasing sales to selective Asian and other markets;                   |
| ● |   | Partnering with top milk producers;                                      |
| ● |   | Establishing brand names and brand awareness; and                        |
| ● |   | Enhancing the Company’s competitive advantages through R&D.    |

----

| Three Months Ended March 31                  |   | 2010 |       |   | 2009   |   |
|----------------------------------------------|--------|------|------------|--------|--------|--------|
| Sales                                        |   | $    | 12,876,271 |   |   | $      | 11,968,137 |   |
| Cost of sales                                |   | $    | 10,125,261 |   |   | $      | 8,637,784 |   |
| Gross profit                                 |   | $    | 2,751,010  |   |   | $      | 3,330,353 |   |
| Selling, general and administrative expenses |   | $    | 1,948,808  |   |   | $      | 3,152,896 |   |
| Other income (expense)                       |   | $    | (104,513   | )      |   | $      | (55,316 | ) |
| Income taxes                                 |   | $    | 143,148    |   |   | $      | 167,372 |   |
| Noncontrolling interest                      |   | $    | (149       | )      |   | $      | (378 | ) |
| Net income (loss)                            |   | $    | 554,690    |   |   | $      | (44,853 | ) |
| Foreign currency translation adjustment      |   | $    | 8,011      |   |   | $      | (40,888 | ) |
| Comprehensive income (loss)                  |   | $    | 562,701    |   |   | $      | (85,741 | ) |

----

| Nine Months Ended March 31                   |   | 2010 |       |   | 2009   |   |
|----------------------------------------------|--------|------|------------|--------|--------|--------|
| Sales                                        |   | $    | 42,604,455 |   |   | $      | 27,507,254 |   |
| Cost of sales                                |   | $    | 31,994,077 |   |   | $      | 20,840,352 |   |
| Gross profit                                 |   | $    | 10,610,378 |   |   | $      | 6,666,902 |   |
| Selling, general and administrative expenses |   | $    | 6,642,627  |   |   | $      | 6,777,984 |   |
| Other income (expense)                       |   | $    | (210,203   | )      |   | $      | (149,163 | ) |
| Income taxes                                 |   | $    | 710,510    |   |   | $      | 167,372 |   |
| Minority interest                            |   | $    | (249       | )      |   | $      | (937 | ) |
| Net income (loss)                            |   | $    | 3,047,332  |   |   | $      | (426,680 | ) |
| Foreign currency translation adjustment      |   | $    | 33,199     |   |   | $      | (80,171 | ) |
| Comprehensive income (loss)                  |   | $    | 3,080,531  |   |   | $      | (506,851 | ) |

----

|                                |   |   | For the nine months ended March 31, |   |
|-------------------------------------|--------|--------|-------------------------------------|--------|
|                                |   |   | 2010                                |   |   |   | 2009 |   |
| Cash flow from operating activities |   | $      | (1,957,234                          | )      |   | $ | (311,078 | ) |
| Cash flow from investing activities |   |   | (2,440,829                          | )      |   |   | (1,287,643 | ) |
| Cash flow from financing activities |   |   | 9,620,190                           |   |   |   | (531,725 | ) |

----

----

| (a) | Evaluation of disclosure controls and procedures |
|-----|--------------------------------------------------|

|   |   |
|--------|--------|

| (b) | Changes in internal control over financial reporting |
|-----|------------------------------------------------------|

| 1. | Currently we do not have sufficient in-house expertise in US GAAP reporting.  Instead, we rely very much on the expertise and knowledge of our Acting Chief Financial Officer and his assistant in US GAAP conversion.   Although we have not identified any material errors with our financial reporting or any material weaknesses with our internal controls, no assurances can be given that there are no such material errors or weaknesses existing.  To remediate this situation, we are seeking to recruit experienced professionals to augment and upgrade our financial staff to address issues of timeliness and completeness in US GAAP financial reporting.  |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | For the remediation measures that have recently been implemented, they are relatively new and their operating effectiveness still needs to be monitored carefully. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | We do not have a Board with a majority of independent members and we do not have an audit committee. Currently the Board acts in the role of the audit committee.  In addition, none of the Board members are qualified as a financial expert and they rely on the financial expertise of our Acting Chief Financial Officer.  To remediate this situation, our Board is currently seeking additional independent members, including a qualified financial expert to fulfill the role of audit committee chairman.  However, we cannot assure you of when we will find such candidates and when we will be able to form such a committee. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Exhibit No. |   | Description                                                                                                                                                   |
|------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1              |   | Articles of Incorporation, as amended (Incorporated by reference to Exhibit 3.1 to our Annual Report on Form 10-K filed on September 29, 2008)                |
|             |   |                                                                                                                                                          |
| 3.2              |   | Bylaws (Incorporated by reference to Exhibit 3.2 to our Annual Report on Form 10-K filed on September 29, 2008)                                               |
|             |   |                                                                                                                                                          |
| 31.1             |   | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                       |
|             |   |                                                                                                                                                          |
| 31.2             |   | Certification of the Acting Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                |
|             |   |                                                                                                                                                          |
| 32.1             |   | Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.        |
|             |   |                                                                                                                                                          |
| 32.2             |   | Certification of the Acting Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

----

|   |   | JPAK GROUP, INC.  |                                                         |
|--------|--------|------------------------|--------------------------------------------------------------|
|   |   |                   |                                                         |   |
|   |   | By:                    | /s/  Yijun Wang                                    |   |
|   |   |                   | Yijun WangChief Executive Officer, Chief Accounting Officer, |   |
|   |   |                   | President & Director                                     |   |
|   |   |                   |                                                         |   |
|   |   | By:                    | /s/  Dongliang Su                                  |   |
|   |   |                   | Dongliang SuActing Chief Financial Officer                   |   |

----