----

----

| [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 September 30, 2010 (unaudited) and 2009             | 3         |
|                                                                                                                   |      |
| Unaudited Consolidated Statements of Operations for the three months ended September 30, 2010 and 2009                 | 4         |
|                                                                                                                   |      |
| Unaudited Consolidated Statements of Cash Flows for the  three months ended September 30, 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         | 19        |
|                                                                                                                   |      |
| Item 3.  Quantitative and Qualitative Disclosures About Market Risk                                          | 24        |
|                                                                                                                   |      |
| Item 4. Controls and Procedures                                                                                        | 25        |
|                                                                                                                   |      |
|                                                                                                                   |      |
| PART II – OTHER INFORMATION                                                                                      |   26 |
|                                                                                                                   |      |
| Item 1.  Legal Proceedings                                                                                   | 26        |
|                                                                                                                   |      |
| Item 1A. Risk Factors                                                                                                  | 26        |
|                                                                                                                   |      |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                                         | 26        |
|                                                                                                                   |      |
| Item 3.  Defaults Upon Senior Securities                                                                     | 26        |
|                                                                                                                   |      |
| Item 4.  (Removed and Reserved)                                                                              | 26        |
|                                                                                                                   |      |
| Item 5.  Other Information                                                                                   | 26        |
|                                                                                                                   |      |
| Item 6.  Exhibits                                                                                            | 27        |
|                                                                                                                   |      |

----

|                                                                             |   | September 30, |       |   | June 30, |   |
|----------------------------------------------------------------------------------|--------|---------------|------------|--------|----------|--------|
|                                                                             |   | 2010          |       |   | 2010     |   |
| Assets                                                                           |   | (Unaudited)   |       |   |     |   |
| Current assets:                                                                  |   |          |       |   |     |   |
| Cash and cash equivalents                                                        |   | $             | 2,829,020  |   |     | $      | 6,221,273 |   |
| Restricted cash                                                                  |   |          | 3,855,884  |   |     |   | 4,744,084 |   |
| Accounts receivable, net of allowance for doubtful accounts of $1,305,286        |   |          | 11,727,252 |   |     |   | 10,915,611 |   |
|   and $1,284,360 at September 30, 2010 and June 30, 2010, respectively |   |          |       |   |     |   |   |   |
| Inventory                                                                        |   |          | 8,952,276  |   |     |   | 8,298,177 |   |
| Trade notes receivable                                                           |   |          | 399,207    |   |     |   | 515,150 |   |
| Other receivables                                                                |   |          | 1,237,519  |   |     |   | 484,003 |   |
| Advance payments                                                                 |   |          | 3,521,081  |   |     |   | 3,670,469 |   |
| Prepaid expenses and other current assets                                        |   |          | 598,988    |   |     |   | 299,713 |   |
| Total current assets                                                             |   |          | 33,121,227 |   |     |   | 35,148,480 |   |
|                                                                             |   |          |       |   |     |   |   |   |
| Property and equipment, net                                                      |   |          | 12,109,509 |   |     |   | 11,201,241 |   |
|                                                                             |   |          |       |   |     |   |   |   |
| Other noncurrent assets:                                                         |   |          |       |   |     |   |   |   |
| Intangible assets, net                                                           |   |          | 3,079,635  |   |     |   | - |   |
| Deferred loss on sales of assets                                                 |   |          | 1,884,896  |   |     |   | 1,899,277 |   |
| Prepaid expenses                                                                 |   |          | 902,022    |   |     |   | 952,676 |   |
|                                                                             |   |          |       |   |     |   |   |   |
| Total assets                                                                     |   | $             | 51,097,289 |   |     | $      | 49,201,674 |   |
|                                                                             |   |          |       |   |     |   |   |   |
| Liabilities                                                                      |   |          |       |   |     |   |   |   |
| Current liabilities:                                                             |   |          |       |   |     |   |   |   |
| Accounts payable and accrued expenses                                            |   | $             | 3,915,947  |   |     | $      | 2,401,560 |   |
| Trade notes payable                                                              |   |          | 3,251,977  |   |     |   | 4,659,370 |   |
| Short-term bank loans                                                            |   |          | 2,994,000  |   |     |   | 2,946,000 |   |
| Current portion of long-term debt                                                |   |          | 2,631,599  |   |     |   | 2,589,409 |   |
| Income tax payable                                                               |   |          | 189,718    |   |     |   | 127,169 |   |
| Other current liabilities                                                        |   |          | 164,765    |   |     |   | 167,728 |   |
| Total current liabilities                                                        |   |          | 13,148,006 |   |     |   | 12,891,236 |   |
| Long-term debt                                                                   |   |          | 3,189,543  |   |     |   | 3,049,115 |   |
| Total liabilities                                                                |   |          | 16,337,549 |   |     |   | 15,940,351 |   |
|                                                                             |   |          |       |   |     |   |   |   |
| 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                            |   |          | 1,200      |   |     |   | 1,200 |   |
| Common stock, $0.001 par value, 300,000,000 shares authorized,                   |   |          |       |   |     |   |   |   |
|   36,368,334 shares issued and outstanding at September 30, 2010       |   |          |       |   |     |   |   |   |
|   and June 30, 2010, respectively                                      |   |          | 36,368     |   |     |   | 36,368 |   |
| Series A preferred stock                                                         |   |          | 2,484,226  |   |     |   | 2,484,226 |   |
| Series B preferred stock                                                         |   |          | 1,390,853  |   |     |   | 1,390,853 |   |
| Additional paid-in capital                                                       |   |          | 23,184,206 |   |     |   | 23,184,206 |   |
| Retained earnings                                                                |   |          | 2,753,328  |   |     |   | 1,776,028 |   |
| Statutory reserves                                                               |   |          | 1,551,089  |   |     |   | 1,551,089 |   |
| Accumulated other comprehensive income                                           |   |          | 3,250,489  |   |     |   | 2,731,043 |   |
| Total stockholders’ equity                                                 |   |          | 34,652,820 |   |     |   | 33,156,074 |   |
| Noncontrolling interest                                                          |   |          | 106,920    |   |     |   | 105,249 |   |
| Total equity                                                                     |   |          | 24,759,740 |   |     |   | 33,261,323 |   |
|                                                                             |   |          |       |   |     |   |   |   |
| Total liabilities and equity                                                     |   | $             | 51,097,289 |   |     | $      | 49,201,674 |   |

----

|                                                        |   | For the Three Months Ended |       |
|-------------------------------------------------------------|--------|----------------------------|------------|
|                                                        |   | September 30,              |       |
|                                                        |   | 2010                       |       |   | 2009 |   |
|                                                        |   |                       |       |   |   |   |
| Sales                                                       |   | $                          | 16,185,647 |   |   | $ | 16,561,920 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Cost of sales                                               |   |                       | 12,625,157 |   |   |   | 11,837,612 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Gross profit                                                |   |                       | 3,560,490  |   |   |   | 4,724,308 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Operating expenses                                          |   |                       |       |   |   |   |   |   |
| Selling, general and administrative                         |   |                       | 2,232,495  |   |   |   | 2,888,343 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Income from operations                                      |   |                       | 1,327,995  |   |   |   | 1,835,965 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Other income (expenses):                                    |   |                       |       |   |   |   |   |   |
| Interest expense, net                                       |   |                       | (150,736   | ) |   |   | (97,051 | ) |
| Non-operating expense, net                                  |   |                       | (12,567    | ) |   |   | (3,512 | ) |
|                                                        |   |                       |       |   |   |   |   |   |
| Total other income (expenses)                               |   |                       | (163,303   | ) |   |   | (100,563 | ) |
|                                                        |   |                       |       |   |   |   |   |   |
| Income before provision for income taxes                    |   |                       | 1,164,692  |   |   |   | 1,735,402 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Provision for income taxes                                  |   |                       | 187,436    |   |   |   | 242,838 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Net income                                                  |   |                       | 977,256    |   |   |   | 1,492,564 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Less: Net income attributable to noncontrolling interest    |   |                       | (44        | ) |   |   | (56 | ) |
|                                                        |   |                       |       |   |   |   |   |   |
| Net income attributable to Jpak Group, Inc.                 |   |                       | 977,300    |   |   |   | 1,492,620 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Undistributed income attributable to preferred stockholders |   |                       | 453,987    |   |   |   | 654,946 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Net income attributable to common stockholders              |   |                       | 523,313    |   |   |   | 837,674 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Other comprehensive income                                  |   |                       |       |   |   |   |   |   |
| Foreign currency translation adjustment                     |   |                       | 519,446    |   |   |   | 32,030 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Comprehensive income                                        |   | $                          | 1,496,746  |   |   | $ | 1,524,650 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Basic earnings per common share                             |   | $                          | 0.01       |   |   | $ | 0.03 |   |
| Diluted earnings per common share                           |   | $                          | 0.01       |   |   | $ | 0.03 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Weighted average number of common shares outstanding        |   |                       |       |   |   |   |   |   |
|      Basic                         |   |                       | 36,368,334 |   |   |   | 25,005,000 |   |
|      Diluted                       |   |                       | 67,918,795 |   |   |   | 44,555,461 |   |

----

|                                                                                         |   | For the Three Months Ended |       |
|----------------------------------------------------------------------------------------------|--------|----------------------------|------------|
|                                                                                         |   | September 30,              |       |
|                                                                                         |   | 2010                       |       |   | 2009 |   |
|                                                                                         |   |                       |       |   |   |   |
| Cash flows from operating activities:                                                        |   |                       |       |   |   |   |
| Net income                                                                                   |   | $                          | 977,256    |   |   | $ | 1,492,564 |   |
| Adjustments to reconcile net income to net cash                                              |   |                       |       |   |   |   |   |   |
|   provided by (used in) operating activities:                                      |   |                       |       |   |   |   |   |   |
| Depreciation and amortization                                                                |   |                       | 341,021    |   |   |   | 382,499 |   |
| Loss on disposal of fixed assets                                                             |   |                       | 9,165      |   |   |   | 2,354 |   |
| Non-cash payments of rent                                                                    |   |                       | 28,911     |   |   |   | - |   |
| Changes in assets and liabilities:                                                           |   |                       |       |   |   |   |   |   |
| Accounts receivable                                                                          |   |                       | (626,169   | ) |   |   | (2,289,303 | ) |
| Inventory                                                                                    |   |                       | (512,655   | ) |   |   | (1,088,422 | ) |
| Trade notes receivable                                                                       |   |                       | 122,841    |   |   |   | (87,966 | ) |
| Other receivables                                                                            |   |                       | (736,665   | ) |   |   | (71,260 | ) |
| Advance payments                                                                             |   |                       | 337,004    |   |   |   | (2,315,404 | ) |
| Prepaid expenses and other current assets                                                    |   |                       | (247,447   | ) |   |   | (148,704 | ) |
| Accounts payable and accrued expenses                                                        |   |                       | 1,460,432  |   |   |   | 1,640,738 |   |
| Income tax payable                                                                           |   |                       | 59,749     |   |   |   | 75,283 |   |
| Other current liabilities                                                                    |   |                       | (5,628     | ) |   |   | 413,469 |   |
| Total adjustments                                                                            |   |                       | 230,559    |   |   |   | (3,486,716 | ) |
|                                                                                         |   |                       |       |   |   |   |   |   |
| Net cash Provided by (used in) operating activities                                          |   |                       | 1,207,815  |   |   |   | (1,994,152 | ) |
|                                                                                         |   |                       |       |   |   |   |   |   |
| Cash flows from investing activities:                                                        |   |                       |       |   |   |   |   |   |
|       Advance payments for fixed assets                        |   |                       | (130,326   | ) |   |   | - |   |
| Additions to property and equipment                                                          |   |                       | (1,023,164 | ) |   |   | (198,913 | ) |
|       Proceeds from disposal of fixed assets                   |   |                       | 5,802      |   |   |   | - |   |
|       Acquisition of intangible assets – land use rights |   |                       | (3,032,962 | ) |   |   | - |   |
| Loan receivable                                                                              |   |                       | -          |   |   |   | 43,983 |   |
|                                                                                         |   |                       |       |   |   |   |   |   |
| Net cash used in investing activities                                                        |   |                       | (4,180,650 | ) |   |   | (154,930 | ) |
|                                                                                         |   |                       |       |   |   |   |   |   |
| Cash flows from financing activities:                                                        |   |                       |       |   |   |   |   |   |
|       Restricted cash                                          |   |                       | 953,888    |   |   |   | (2,445,022 | ) |
| Issuance (repayment) of trade notes payable                                                  |   |                       | (1,465,474 | ) |   |   | 1,990,955 |   |
| Proceeds from long-term debt                                                                 |   |                       | 67,999     |   |   |   | 1,036,973 |   |
|                                                                                         |   |                       |       |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                          |   |                       | (443,587   | ) |   |   | 582,906 |   |
|                                                                                         |   |                       |       |   |   |   |   |   |
| Effect of foreign currency translation on cash                                               |   |                       | 24,169     |   |   |   | 7,930 |   |
|                                                                                         |   |                       |       |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                                    |   |                       | (3,392,253 | ) |   |   | (1,558,246 | ) |
|                                                                                         |   |                       |       |   |   |   |   |   |
| Cash and cash equivalents –  beginning                                       |   |                       | 6,221,273  |   |   |   | 2,969,699 |   |
|                                                                                         |   |                       |       |   |   |   |   |   |
| Cash and cash equivalents – ending                                                     |   | $                          | 2,829,020  |   |   | $ | 1,411,453 |   |
|                                                                                         |   |                       |       |   |   |   |   |   |

----

----

----

|                          |   | September 30, 2010 |      |   | June 30, 2010 |   |
|-------------------------------|--------|--------------------|-----------|--------|---------------|--------|
|                          |   |               |      |   |          |   |
| Raw materials                 |   | $                  | 5,892,597 |   |          | $      | 6,595,076 |   |
| Work in process               |   |               | 585,621   |   |          |   | 314,794 |   |
| Finished goods                |   |               | 2,271,928 |   |          |   | 1,237,290 |   |
| Parts and supplies            |   |               | 202,130   |   |          |   | 151,017 |   |
|                          |   |               |      |   |          |   |   |   |
|     Total |   | $                  | 8,952,276 |   |          | $      | 8,298,177 |   |

----

|                           |   | September 30, 2010 |      |   | June 30, 2010 |   |
|--------------------------------|--------|--------------------|-----------|--------|---------------|--------|
|                           |   |               |      |   |          |   |
| Advance payments for inventory |   | $                  | 1,566,604 |   |          | $      | 1,287,924 |   |
| Advance payments for equipment |   |               | 1,954,477 |   |          |   | 2,382,545 |   |
|                           |   |               |      |   |          |   |   |   |
|     Total  |   | $                  | 3,521,081 |   |          | $      | 3,670,469 |   |

|                             |   |               |            |   |          |   |
|----------------------------------|--------|--------------------|-----------------|--------|---------------|--------|
|                             |   | September 30, 2010 |            |   | June 30, 2010 |   |
|                             |   |               |            |   |          |   |
| Buildings                        |   | $                  | 4,749,800       |   |          | $      | 4,673,651 |   |
| Machinery and equipment          |   |               | 14,451,355      |   |          |   | 12,007,708 |   |
| Machinery—capital lease    |   |               | 1,437,120       |   |          |   | 1,414,080 |   |
|     Subtotal |   |               | 20,638,275      |   |          |   | 18,095,439 |   |
| Less: Accumulated depreciation   |   |               |  9,863,565 |   |          |   |  9,425,588 |   |
|                             |   |               | 10,774,710      |   |          |   | 8,669,851 |   |
| Add: Construction in progress    |   |               | 1,334,799       |   |          |   | 2,531,390 |   |
|                             |   |               |            |   |          |   |   |   |
|     Total    |   | $                  | 12,109,509      |   |          | $      | 11,201,241 |   |

|                           |   |               |        |   |          |   |
|--------------------------------|--------|--------------------|-------------|--------|---------------|--------|
|                           |   | September 30, 2010 |        |   | June 30, 2010 |   |
|                           |   |               |        |   |          |   |
| Land use rights                |   | $                  | 3,084,776   |   |          | $      | - |   |
| Less: accumulated amortization |   |               |  5,141 |   |          |   |  - |   |
|                           |   |               |        |   |          |   |   |   |
|     Total  |   | $                  | 3,079,635   |   |          | $      | - |   |

----

|                          |   | September 30, 2010 |          |   | June 30, 2010 |   |
|-------------------------------|--------|--------------------|---------------|--------|---------------|--------|
|                          |   |               |          |   |          |   |
| Accounts payable              |   | $                  | 3,654,704     |   |          | $      | 2,105,829 |   |
| Accrued expenses              |   |               |  261,243 |   |          |   |  295,731 |   |
|                          |   |               |          |   |          |   |   |   |
|     Total |   | $                  | 3,915,947     |   |          | $      | 2,401,560 |   |

|                                                                                                                                                                                                                                                                                           |   | September 30, |      |   | June 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                           |   | 2010          |      |   | 2010     |   |
|                                                                                                                                                                                                                                                                                           |   |          |      |   |     |   |
| 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.   |   | $             | 598,800   |   |     | $      | 589,200 |   |
|                                                                                                                                                                                                                                                                                           |   |          |      |   |     |   |   |   |
| 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. |   | $             | 2,395,200 |   |     | $      | 2,356,800 |   |
|                                                                                                                                                                                                                                                                                           |   |          |      |   |     |   |   |   |
| Total short-term bank loans                                                                                                                                                                                                                                                                    |   | $             | 2,994,000 |   |     | $      | 2,946,000 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                        |   | September 30, |      |   | June 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                        |   | 2010          |      |   | 2010     |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |          |      |   |     |   |
| 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.                                                                                                                    |   | $             | 4,684,113 |   |     | $      | 4,439,622 |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |          |      |   |     |   |   |   |
| On November 27, 2009, the Company entered into a sale-leaseback transaction with International Fareastern Leasing Co., Ltd., which was accounted for as a financing arrangement in the amount of approximately $1.4 million. The annual principal and interest payment is $404,950 and the term of the arrangement is four years. Refer to Note 18 for further information. |   | $             | 1,137,029 |   |     | $      | 1,198,902 |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |          |      |   |     |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |          |      |   |     |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                       |   | $             | 5,821,142 |   |     | $      | 5,638,524 |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |          |      |   |     |   |   |   |
| Less: Current portion of loans                                                                                                                                                                                                                                                                                                                                              |   |          | 2,220,051 |   |     |   | 2,184,459 |   |
|           Current portion of obligation under capital lease                                                                                                                                                                                                                                                               |   |          | 411,548   |   |     |   | 404,950 |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |          |      |   |     |   |   |   |
|                Total Current portion                                                                                                                                                                                                                                                             |   |          | 2,631,599 |   |     |   | 2,589,409 |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |          |      |   |     |   |   |   |
| Total long-term portion                                                                                                                                                                                                                                                                                                                                                     |   | $             | 3,189,543 |   |     | $      | 3,049,115 |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |          |      |   |     |   |   |   |

----

----

----

----

|   |   Year Ending June 30 |   |   |    | Amount  |   |   |
|--------|---------------------------------|--------|--------|---------|--------------|--------|--------|
|   | 2011                            |   |   | $  | 308,661      |   |   |
|   | 2012                            |   |   |    | 411,548      |   |   |
|   | 2013                            |   |   |    | 411,548      |   |   |
|   | 2014                            |   |   |    | 137,182      |   |   |
|   | Total                           |   |   | $       | 1,268,939    |   |   |

----

| Net income                                              |   | $      | 977,300 |   |
|---------------------------------------------------------|--------|--------|---------|--------|
| Less dividends paid to:                                 |   |   |    |   |
|   Common shareholders                         |   |   | -       |   |
|   Series A convertible preferred shareholders |   |   | -       |   |
|   Series B convertible preferred shareholders |   |   | -       |   |
|   Series C convertible preferred shareholders |   |   |  - |   |
| Undistributed earnings                                  |   | $      | 977,300 |   |

| Basic earnings per share amouns: |   |   |   |   |            |   |   |            |   |   |            |   |
|----------------------------------|--------|--------|--------|--------|-----------------|--------|--------|-----------------|--------|--------|-----------------|--------|
|                             |   |   |   |   | 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   |   |            |   | 0.03   |            |   |   | 0.02            |   |   |   | 0.01 |   |
|   Totals               |   | $      | 0.01   |   |            | $      | 0.03   |            |   | $      | 0.02            |   |   | $ | 0.01 |   |

----

|                                |   | Distributed & |    |   |   |   |       |      |   |
|-------------------------------------|--------|-------------------|---------|--------|--------|--------|------------|-----------|--------|
|                                |   | Undistributed     |    |   |   |   |       |      |   |
|                                |   | earnings to       |    |   |   |   |       |      |   |
|                                |   | Common            |    |   | Common |   |       | Earnings  |   |
|                                |   | Stock             |    |   | Shares |   |       | Per Share |   |
|                                |   |              |    |   |   |   |       |      |   |
| As reported - Basic                 |   | $                 | 523,313 |   |   | $      | 36,368,334 |      |   | $ | 0.01 |   |
| Warrants                            |   |              | -       |   |   |   | -          |      |   |   | - |   |
|                                |   |              | 523,313 |   |   |   | 36,368,334 |      |   | $ | 0.01 |   |
| Series A preferred stock conversion |   |              | 161,406 |   |   |   | 11,217,128 |      |   |   | - |   |
| Series B preferred stock conversion |   |              | 119,910 |   |   |   | 8,333,333  |      |   |   | - |   |
| Series C preferred stock conversion |   |              | 172,671 |   |   |   | 12,000,000 |      |   |   | - |   |
| Diluted earnings for common stock   |   | $                 | 977,300 |   |   | $      | 67,918,795 |      |   | $ | 0.01 |   |

| Net income                                  |   |   |   |   |            | $      | 1,492,620 |            |
|---------------------------------------------|--------|--------|--------|--------|-----------------|--------|-----------|-----------------|
| Less dividends paid to:                     |   |   |   |   |            |   |      |            |
| Common shareholders                         |   |   |   |   |            |   | -         |            |
| Series A convertible preferred shareholders |   |   |   |   |            |   | -         |            |
| Series B convertible preferred shareholders |   |   |   |   |            |   |  -   |            |
| Undistributed earnings                      |   |   |   |   |            | $      | 1,492,620 |            |
|                                        |   |   |   |   |            |   |      |            |
| 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                      |   |   | 0.03   |   |            |   | 0.07      |            |   |   | 0.06 |   |
|   Totals                          |   | $      | 0.03   |   |            | $      | 0.07      |            |   | $ | 0.06 |   |

----

|                                |   | Distributed & |      |   |   |   |       |      |   |
|-------------------------------------|--------|-------------------|-----------|--------|--------|--------|------------|-----------|--------|
|                                |   | Undistributed     |      |   |   |   |       |      |   |
|                                |   | earnings to       |      |   |   |   |       |      |   |
|                                |   | Common            |      |   | Common |   |       | Earnings  |   |
|                                |   | Stock             |      |   | Shares |   |       | Per Share |   |
|                                |   |              |      |   |   |   |       |      |   |
| As reported - Basic                 |   | $                 | 837,674   |   |   |   | 25,005,000 |      |   | $ | 0.03 |   |
| Warrants                            |   |              | -         |   |   |   | -          |      |   |   | - |   |
|                                |   |              | 837,674   |   |   |   | 25,005,000 |      |   | $ | 0.03 |   |
| Series A preferred stock conversion |   |              | 375,777   |   |   |   | 11,217,128 |      |   |   | - |   |
| Series B preferred stock conversion |   |              | 279,169   |   |   |   | 8,333,333  |      |   |   | - |   |
| Diluted earnings for common stock   |   | $                 | 1,492,620 |   |   |   | 44,555,461 |      |   | $ | 0.03 |   |

|                       |   | Three Months Ended September 30, |    |
|----------------------------|--------|----------------------------------|---------|
|                       |   | 2010                             |    |   | 2009 |   |
|                       |   |                             |    |   |   |   |
| Cash paid for interest     |   | $                                | 186,075 |   |   | $ | 126,967 |   |
| Cash paid for income taxes |   | $                                | 127,687 |   |   | $ | 167,429 |   |

----

----

|   | ·   | Increasing output to further penetrate the China market;              |
|--------|--------------------|----------------------------------------------------------------------------|
|   | ·   | Developing 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 September 30              |   | 2010 |       |   | 2009   |   |
|----------------------------------------------|--------|------|------------|--------|--------|--------|
| Sales                                        |   | $    | 16,185,647 |   |   | $      | 16,561,920 |   |
| Cost of sales                                |   | $    | 12,625,157 |   |   | $      | 11,837,612 |   |
| Gross profit                                 |   | $    | 3,560,490  |   |   | $      | 4,724,308 |   |
| Selling, general and administrative expenses |   | $    | 2,232,495  |   |   | $      | 2,888,343 |   |
| Other income (expense)                       |   | $    | (163,303   | )      |   | $      | (100,563 | ) |
| Income taxes                                 |   | $    | 187,436    |   |   | $      | 242,838 |   |
| Noncontrolling interest                      |   | $    | (44        | )      |   | $      | (56 | ) |
| Net income (loss)                            |   | $    | 977,300    |   |   | $      | 1,492,620 |   |
| Foreign currency translation adjustment      |   | $    | 519,446    |   |   | $      | 32,030 |   |
| Comprehensive income (loss)                  |   | $    | 1,496,746  |   |   | $      | 1,524,650 |   |

----

|                                |   | For the three months ended September 30, |       |
|-------------------------------------|--------|------------------------------------------|------------|
|                                |   | 2010                                     |       |   | 2009 |   |
| Cash flow from operating activities |   | $                                        | 1,207,815  |   |   | $ | (1,994,152 | ) |
| Cash flow from investing activities |   |                                     | (4,180,560 | ) |   |   | (154,930 | ) |
| Cash flow from financing activities |   |                                     | (443,587   | ) |   |   | 582,906 |   |

----

----

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

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

----

| 1. | Currently the Company’s Acting Chief Financial Officer and his assistant, who are experienced with US GAAP reporting, are assisting in the preparation of financial statements in conformity with US GAAP and the SEC reporting requirements. Additionally, the Company has made efforts to enhance the knowledge of US GAAP reporting of its financial staff as part of its Sarbanes-Oxley Act Section 404 compliance project (“SOX project”) and other on the job training in applying US GAAP in addition to the SOX project. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Althogh the Company does not have a Board with a majority of independent members and does not have an audit committee, it hired Mr. Wenjie Li as its independent director in July 2010.  The Company is also seeking additional independent members, including a qualified financial expert to fulfill the role of audit committee chairman.  Nevertheless, the Company cannot assure you of when it will identify a qualified candidate or when it will be able to form an indepent audit 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                  |   |

----