----

----

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

| o | 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 | o | Accelerated Filer         | o      |
|-------------------------|---|---------------------------|--------|
| Non-accelerated filer   | o | Smaller reporting company | þ |

----

----

**ExplanatoryNote**

 

We are filing this Form 10-Q/A for the periodended September 30, 2011 (“Amended Report”) pursuant to comments from the Securities and Exchange Commission, datedJanuary 5, 2012 regarding the acquisition of Qingdao Jiexin Recycling Resources Technological Developments Co., Ltd. The only changeto the original Form 10-Q filed on November 14, 2011 (“Original Report”), is reflected in paragraph 5 of Note 1 –Organization and Nature of Business of the Financial Statements. This Amended Report does not reflect events occurring after thefiling of the Original Report, nor does it modify or update those disclosures presented therein, except with regard to the modificationsdescribed in this Explanatory Note. As such, this Amended Report continues to speak as of November 14, 2011. Accordingly, thisAmended Report should be read in conjunction with the Original Report and our other reports filed with the SEC subsequent to thefiling of our Original Report, including any amendments to those filings. 

 

In addition, pursuant to Rule 12b-15 underthe Securities Exchange Act of 1934, as a result of this Amended Report, the certifications pursuant to Section 302 and Section 906of the Sarbanes-Oxley Act of 2002, filed and furnished, respectively, as exhibits to the Original Report have been re-executedand re-filed as of the date of this Amended Report and are included as exhibits hereto.

----

|                                                                             |   | September 30, |       |   | June 30, |   |
|----------------------------------------------------------------------------------|--------|---------------|------------|--------|----------|--------|
|                                                                             |   | 2011          |       |   | 2011     |   |
| Assets                                                                           |   | (Unaudited)   |       |   |     |   |
| Current assets:                                                                  |   |          |       |   |     |   |
| Cash and cash equivalents                                                        |   | $             | 1,209,311  |   |     | $      | 5,574,130 |   |
| Restricted cash                                                                  |   |          | 20,747,726 |   |     |   | 12,904,460 |   |
| Accounts receivable, net of allowance for doubtful accounts of $1,355,071        |   |          | 20,057,214 |   |     |   | 14,369,228 |   |
|   and $1,339,485 at September 30, 2011 and June 30, 2011, respectively |   |          |       |   |     |   |   |   |
| Inventory                                                                        |   |          | 12,550,906 |   |     |   | 10,655,991 |   |
| Trade notes receivable                                                           |   |          | 148,675    |   |     |   | 30,940 |   |
| Other receivables                                                                |   |          | 166,319    |   |     |   | 627,444 |   |
| Advance payments                                                                 |   |          | 928,103    |   |     |   | 773,833 |   |
| Prepaid expenses and other current assets                                        |   |          | 242,330    |   |     |   | 515,229 |   |
| Total current assets                                                             |   |          | 56,050,584 |   |     |   | 45,451,255 |   |
|                                                                             |   |          |       |   |     |   |   |   |
| Property and equipment, net                                                      |   |          | 23,208,633 |   |     |   | 18,706,975 |   |
|                                                                             |   |          |       |   |     |   |   |   |
| Other noncurrent assets:                                                         |   |          |       |   |     |   |   |   |
| Advance payments – non current                                             |   |          | 734,451    |   |     |   | 592,489 |   |
| Intangible assets, net                                                           |   |          | 3,155,027  |   |     |   | 3,134,678 |   |
| Deferred loss on sales of assets                                                 |   |          | 2,271,671  |   |     |   | 2,302,922 |   |
| Prepaid expenses                                                                 |   |          | 1,144,902  |   |     |   | 1,111,259 |   |
|                                                                             |   |          |       |   |     |   |   |   |
| Total assets                                                                     |   | $             | 86,565,268 |   |     | $      | 71,299,578 |   |
|                                                                             |   |          |       |   |     |   |   |   |
| Liabilities                                                                      |   |          |       |   |     |   |   |   |
| Current liabilities:                                                             |   |          |       |   |     |   |   |   |
| Accounts payable and accrued expenses                                            |   | $             | 10,487,134 |   |     | $      | 5,402,866 |   |
| Trade notes payable                                                              |   |          | 20,695,883 |   |     |   | 12,513,972 |   |
| Short-term bank loans                                                            |   |          | 3,130,000  |   |     |   | 3,094,000 |   |
| Current portion of long-term debt                                                |   |          | 3,701,047  |   |     |   | 3,899,818 |   |
| Income tax payable                                                               |   |          | 92,024     |   |     |   | 9,986 |   |
| Other current liabilities                                                        |   |          | 244,044    |   |     |   | 116,110 |   |
| Total current liabilities                                                        |   |          | 38,350,132 |   |     |   | 25,036,752 |   |
| Long-term debt                                                                   |   |          | 10,735,611 |   |     |   | 9,883,005 |   |
| Total liabilities                                                                |   |          | 49,085,743 |   |     |   | 34,919,757 |   |
|                                                                             |   |          |       |   |     |   |   |   |
| 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, 2011       |   |          |       |   |     |   |   |   |
|   and June 30, 2011, 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                                                       |   |          | 23,903,645 |   |     |   | 23,903,645 |   |
| Retained earnings                                                                |   |          | 2,932,161  |   |     |   | 2,252,319 |   |
| Statutory reserves                                                               |   |          | 1,826,236  |   |     |   | 1,826,236 |   |
| Accumulated other comprehensive income                                           |   |          | 4,792,949  |   |     |   | 4,374,319 |   |
| Total stockholders’ equity                                                 |   |          | 37,368,699 |   |     |   | 36,270,227 |   |
| Noncontrolling interest                                                          |   |          | 110,826    |   |     |   | 109,594 |   |
| Total equity                                                                     |   |          | 37,479,525 |   |     |   | 36,379,821 |   |
|                                                                             |   |          |       |   |     |   |   |   |
| Total liabilities and equity                                                     |   | $             | 86,565,268 |   |     | $      | 71,299,578 |   |
|                                                                             |   |          |       |   |     |   |   |   |

----

|                                                        |   | For the Three Months Ended |       |
|-------------------------------------------------------------|--------|----------------------------|------------|
|                                                        |   | September 30,              |       |
|                                                        |   | 2011                       |       |   | 2010 |   |
|                                                        |   |                       |       |   |   |   |
| Sales                                                       |   | $                          | 24,357,736 |   |   | $ | 16,185,647 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Cost of sales                                               |   |                       | 21,514,314 |   |   |   | 12,625,157 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Gross profit                                                |   |                       | 2,843,422  |   |   |   | 3,560,490 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Operating expenses                                          |   |                       |       |   |   |   |   |   |
| Selling, general and administrative                         |   |                       | 2,220,766  |   |   |   | 2,232,495 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Income from operations                                      |   |                       | 622,656    |   |   |   | 1,327,995 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Other income (expenses):                                    |   |                       |       |   |   |   |   |   |
| Interest Income                                             |   |                       | 44,919     |   |   |   | 27,705 |   |
| Interest expense                                            |   |                       | (176,378   | ) |   |   | (178,441 | ) |
| Non-operating income, net                                   |   |                       | 280,438    |   |   |   | (12,567 | ) |
|                                                        |   |                       |       |   |   |   |   |   |
| Total other income (expenses)                               |   |                       | 148,979    |   |   |   | (163,303 | ) |
|                                                        |   |                       |       |   |   |   |   |   |
| Income before provision for income taxes                    |   |                       | 771,635    |   |   |   | 1,164,692 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Provision for income taxes                                  |   |                       | 91,836     |   |   |   | 187,436 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Net income                                                  |   |                       | 679,799    |   |   |   | 977,256 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Less: net loss attributable to noncontrolling interest      |   |                       | (43        | ) |   |   | (44 | ) |
|                                                        |   |                       |       |   |   |   |   |   |
| Net income attributable to Jpak Group, Inc.                 |   |                       | 679,842    |   |   |   | 977,300 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Undistributed income attributable to preferred stockholders |   |                       | 315,809    |   |   |   | 453,987 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Net income attributable to common stockholders              |   | $                          | 364,033    |   |   | $ | 523,313 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Basic earnings per common share                             |   | $                          | 0.01       |   |   | $ | 0.01 |   |
| Diluted earnings per common share                           |   | $                          | 0.01       |   |   | $ | 0.01 |   |
|                                                        |   |                       |       |   |   |   |   |   |
| Weighted average number of common shares outstanding        |   |                       |       |   |   |   |   |   |
|      Basic                         |   |                       | 36,368,334 |   |   |   | 36,368,334 |   |
|      Diluted                       |   |                       | 67,918,795 |   |   |   | 67,918,795 |   |

----

|                                                  |   | For the Three Months Ended |      |
|-------------------------------------------------------|--------|----------------------------|-----------|
|                                                  |   | September 30,              |      |
|                                                  |   | 2011                       |      |   | 2010 |   |
|                                                  |   |                       |      |   |   |   |
| Net income                                            |   | $                          | 679,799   |   |   | $ | 997,256 |   |
|                                                  |   |                       |      |   |   |   |   |   |
| Other comprehensive income                            |   |                       |      |   |   |   |   |   |
| Foreign currency translation adjustment               |   |                       | 419,905   |   |   |   | 521,161 |   |
|                                                  |   |                       |      |   |   |   |   |   |
| Total other comprehensive income                      |   |                       | 419,905   |   |   |   | 521,161 |   |
|                                                  |   |                       |      |   |   |   |   |   |
| Comprehensive income                                  |   |                       | 1,099,704 |   |   |   | 1,498,417 |   |
|                                                  |   |                       |      |   |   |   |   |   |
| Less: comprehensive income attributable to the        |   |                       |      |   |   |   |   |   |
|   noncontrolling interest                   |   |                       | 1,232     |   |   |   | 1,671 |   |
|                                                  |   |                       |      |   |   |   |   |   |
| Comprehensive income attributable to Jpak Group, Inc. |   | $                          | 1,098,472 |   |   | $ | 1,496,746 |   |

----

|                                                     |   | For the Three Months Ended |       |
|----------------------------------------------------------|--------|----------------------------|------------|
|                                                     |   | September 30,              |       |
|                                                     |   | 2011                       |       |   | 2010 |   |
|                                                     |   |                       |       |   |   |   |
| Cash flows from operating activities:                    |   |                       |       |   |   |   |
| Net income                                               |   | $                          | 679,799    |   |   | $ | 977,256 |   |
| Adjustments to reconcile net income to net cash          |   |                       |       |   |   |   |   |   |
|   provided by (used in) operating activities:  |   |                       |       |   |   |   |   |   |
| Depreciation and amortization                            |   |                       | 410,334    |   |   |   | 341,021 |   |
| Loss on disposal of fixed assets                         |   |                       | 28,960     |   |   |   | 9,165 |   |
| Non-cash payments of rent                                |   |                       | -          |   |   |   | 28,911 |   |
| Gain on acquisition of a subsidiary - Jiexin             |   |                       | (206,291   | ) |   |   |   |   |
| Changes in assets and liabilities:                       |   |                       |       |   |   |   |   |   |
| Accounts receivable                                      |   |                       | (4,962,007 | ) |   |   | (626,169 | ) |
| Inventory                                                |   |                       | (927,460   | ) |   |   | (512,655 | ) |
| Trade notes receivable                                   |   |                       | (117,135   | ) |   |   | 122,841 |   |
| Other receivables                                        |   |                       | (17,483    | ) |   |   | (736,665 | ) |
| Advance payments                                         |   |                       | (80,462    | ) |   |   | 337,004 |   |
| Prepaid expenses and other current assets                |   |                       | 286,019    |   |   |   | (247,447 | ) |
| Accounts payable and accrued expenses                    |   |                       | 4,956,403  |   |   |   | 1,460,432 |   |
| Income tax payable                                       |   |                       | 81,754     |   |   |   | 59,749 |   |
| Other current liabilities                                |   |                       | (293,891   | ) |   |   | (5,628 | ) |
| Total adjustments                                        |   |                       | (841,259   | ) |   |   | 230,559 |   |
|                                                     |   |                       |       |   |   |   |   |   |
| Net cash provided by (used in) operating activities      |   |                       | (161,460   | ) |   |   | 1,207,815 |   |
|                                                     |   |                       |       |   |   |   |   |   |
| Cash flows from investing activities:                    |   |                       |       |   |   |   |   |   |
| Advance payments for fixed assets                        |   |                       | (134,792   | ) |   |   | (130,326 | ) |
| Additions to property and equipment                      |   |                       | (4,215,193 | ) |   |   | (1,023,164 | ) |
| Proceeds from disposal of fixed assets                   |   |                       | -          |   |   |   | 5,802 |   |
| Acquisition of intangible assets – land use rights |   |                       | -          |   |   |   | (3,032,962 | ) |
| Acquisition of a subsidiary - Jiexin, net of cash        |   |                       | (757,888   | ) |   |   | - |   |
|                                                     |   |                       |       |   |   |   |   |   |
| Net cash used in investing activities                    |   |                       | (5,107,873 | ) |   |   | (4,180,650 | ) |
|                                                     |   |                       |       |   |   |   |   |   |
| Cash flows from financing activities:                    |   |                       |       |   |   |   |   |   |
| Restricted cash                                          |   |                       | (7,677,387 | ) |   |   | 953,888 |   |
| Issuance (repayment) of trade notes payable              |   |                       | 8,019,874  |   |   |   | (1,465,474 | ) |
| Proceeds from long-term debt                             |   |                       | 492,457    |   |   |   | 67,999 |   |
|                                                     |   |                       |       |   |   |   |   |   |
| Net cash provided by (used in) financing activities      |   |                       | 834,944    |   |   |   | (443,587 | ) |
|                                                     |   |                       |       |   |   |   |   |   |
| Effect of foreign currency translation on cash           |   |                       | 69,570     |   |   |   | 24,169 |   |
|                                                     |   |                       |       |   |   |   |   |   |
| Net decrease in cash and cash equivalents                |   |                       | (4,364,819 | ) |   |   | (3,392,253 | ) |
|                                                     |   |                       |       |   |   |   |   |   |
| Cash and cash equivalents –  beginning   |   |                       | 5,574,130  |   |   |   | 6,221,273 |   |
|                                                     |   |                       |       |   |   |   |   |   |
| Cash and cash equivalents – ending                 |   | $                          | 1,209,311  |   |   | $ | 2,829,020 |   |

----

QingdaoJiexin Recycling Resources Technological Development Co., Ltd. (“Qingdao Jiexin”) was established on August 29, 2008,in the city of Qingdao, PRC. On July 20, 2011, Qingdao Renmin contributed RMB 5,000,000 (approximately $773,500) and acquired 100%interest in Qingdao Jiexin. As a result, Qingdao Jiexin became a wholly-owned subsidiary of Qingdao Renmin. The fair value of theidentifiable assets acquired and liabilities assumed of $979,791 exceeded the fair value of the purchase price of the businessof $773,500. As a result, the Company reassessed the recognition and measurement of identifiable assets acquired and liabilitiesassumed and concluded that the valuation procedures and resulting measures were appropriate. Accordingly, the Company recognizeda gain of $206,291 associated with the acquisition. The gain is included in the line item “Non-operating income” inthe Consolidated Statements of Operations for the three months ended September 30, 2011. For the threemonths ended September 30, 2011, the Company consolidated the financial statements of Qingdao Jiexin and eliminated the intercompanytransactions, including the RMB 5,000,000 (approximately $773,500) investment in Qingdao Jiexin.

----

|                          |   | September 30, 2011 |       |   | June 30, 2011 |   |
|-------------------------------|--------|--------------------|------------|--------|---------------|--------|
|                          |   |               |       |   |          |   |
| Raw materials                 |   | $                  | 9,221,165  |   |          | $      | 8,423,431 |   |
| Work in process               |   |               | 1,196,045  |   |          |   | 675,738 |   |
| Finished goods                |   |               | 1,773,387  |   |          |   | 1,296,126 |   |
| Parts and supplies            |   |               | 360,309    |   |          |   | 260,696 |   |
|                          |   |               |       |   |          |   |   |   |
|     Total |   | $                  | 12,550,906 |   |          | $      | 10,655,991 |   |

----

|                           |   | September 30, 2011 |      |   | June 30, 2011 |   |
|--------------------------------|--------|--------------------|-----------|--------|---------------|--------|
|                           |   |               |      |   |          |   |
| Advance payments for inventory |   | $                  | 928,103   |   |          | $      | 773,833 |   |
| Advance payments for equipment |   |               | 734,451   |   |          |   | 592,489 |   |
|                           |   |               |      |   |          |   |   |   |
|     Total  |   | $                  | 1,662,554 |   |          | $      | 1,366,322 |   |

|                             |   | September 30, 2011 |       |   | June 30, 2011 |   |
|----------------------------------|--------|--------------------|------------|--------|---------------|--------|
|                             |   |               |       |   |          |   |
| Buildings                        |   | $                  | 4,352,613  |   |          | $      | 4,928,620 |   |
| Machinery and equipment          |   |               | 16,305,257 |   |          |   | 14,435,629 |   |
| Machinery—capital lease    |   |               | 3,208,250  |   |          |   | 3,370,395 |   |
|     Subtotal |   |               | 23,866,120 |   |          |   | 22,734,644 |   |
| Less: Accumulated depreciation   |   |               | 11,660,730 |   |          |   | 11,040,592 |   |
|                             |   |               | 12,205,390 |   |          |   | 11,694,052 |   |
| Add: Construction in progress    |   |               | 11,003,243 |   |          |   | 7,012,923 |   |
|                             |   |               |       |   |          |   |   |   |
|     Total    |   | $                  | 23,208,633 |   |          | $      | 18,706,975 |   |

|                           |   |               |         |   |          |   |
|--------------------------------|--------|--------------------|--------------|--------|---------------|--------|
|                           |   | September 30, 2011 |         |   | June 30, 2011 |   |
|                           |   |               |         |   |          |   |
| Land use rights                |   | $                  | 3,224,900    |   |          | $      | 3,187,808 |   |
| Less: accumulated amortization |   |               |  69,873 |   |          |   | 53,130 |   |
|                           |   |               |         |   |          |   |   |   |
|     Total  |   | $                  | 3,155,027    |   |          | $      | 3,134,678 |   |

----

|                          |   | September 30, 2011 |          |   | June 30, 2011 |   |
|-------------------------------|--------|--------------------|---------------|--------|---------------|--------|
|                          |   |               |          |   |          |   |
| Accounts payable              |   | $                  | 9,783,925     |   |          | $      | 4,745,322 |   |
| Accrued expenses              |   |               |  703,209 |   |          |   |  657,544 |   |
|                          |   |               |          |   |          |   |   |   |
|     Total |   | $                  | 10,487,134    |   |          | $      | 5,402,866 |   |

|                                                                                                                                                                                                                                                                                                  |   | September 30, |      |   | June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                  |   | 2011          |      |   | 2011     |   |
|                                                                                                                                                                                                                                                                                                  |   |          |      |   |     |   |
| On January 14, 2011, the Company obtained a loan from Qingdao City Commercial Bank, out of which, the principal is to be paid in full by January 13, 2012. Interest is to be calculated using an annual fixed rate of 6.1005% and paid monthly. The loan was secured by the Company's property.       |   | $             | 626,000   |   |     | $      | 618,800 |   |
|                                                                                                                                                                                                                                                                                                  |   |          |      |   |     |   |   |   |
| On January 18, 2011, the Company obtained a loan from Qingdao City Commercial Bank, out of which, the principal is to be paid in full by January 18, 20112. Interest is to be calculated using an annual fixed rate of 6.1005% and paid monthly. The loan was secured by the Company's property.      |   | $             | 1,252,000 |   |     | $      | 1,237,600 |   |
|                                                                                                                                                                                                                                                                                                  |   |          |      |   |     |   |   |   |
| On January 26, 2011, the company obtained a loan from Qingdao City Commercial Bank, out of which, the principal is to be paid in full by January 26, 2012. Interest is to be calculated using an annual fixed rate of 6.1005% and paid monthly. The loan was secured by the Company’s property. |   | $             | 1,252,000 |   |     | $      | 1,237,600 |   |
| Total short-term bank loans                                                                                                                                                                                                                                                                           |   | $             | 3,130,000 |   |     | $      | 3,094,000 |   |

----

|                                                                                                                                                                                                                                                                                                                                                   |   | September 30, |       |   | June 30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                   |   | 2011          |       |   | 2011     |   |
|                                                                                                                                                                                                                                                                                                                                                   |   |          |       |   |     |   |
| 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 February 07, 2012, as per the terms of the loan agreement.                                                                                          |   | $             | 6,318,293  |   |     | $      | 5,385,107 |   |
|                                                                                                                                                                                                                                                                                                                                                   |   |          |       |   |     |   |   |   |
| 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 $437,658 and the term of the arrangement is four years. Refer to Note 18.    |   | $             | 762,661    |   |     | $      | 843,561 |   |
|                                                                                                                                                                                                                                                                                                                                                   |   |          |       |   |     |   |   |   |
| In December 2010, two other sale-leaseback agreements established on November 27, 2009 went into effect, which represents financing arrangement in the total amount of approximately $1.65 million, received in two allotments. The annual principal and interest payment is $497,705 and the term of the arrangement is four years. Refer to Note 18. |   | $             | 1,095,704, |   |     | $      | 1,366,155 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | September 30, |             |   | June 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2011          |             |   | 2011     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |             |   |     |   |
| On April 28, 2011, the Company obtained a loan from Bank of Qingdao. The Principle is to be paid in full by April 28, 2016. The interest rate is a variable rate equal to 15% per annum above the floating base interest for loans of the same term promulgated by the PRC’s central bank, China People’s bank. The average annual interest rate for the three month ended September 30, 2011 was approximately 7.6475%. Interest is paid monthly. The loan was designated to finance the construction of Qingdao Likang. The loan was secured by the Company’s construction in progress and guaranteed by the Company’s subsidiary-Qingdao Renmin. |   | $             |   6,260,000 |   |     | $      | 6,188,000 |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $             | 14,436,658       |   |     | $      | 13,782,823 |   |
| Less: Current portion of loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | 2,489,915        |   |     |   | 2,688,686 |   |
| Current portion of obligation under capital lease                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          | 1,211,132        |   |     |   | 1,211,132 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |             |   |     |   |   |   |
| Total Current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | 3,701,047        |   |     |   | 3,899,818 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |             |   |     |   |   |   |
| Total long-term portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $             | 10,735,611       |   |     | $      | 9,883,005 |   |

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| Year Ending June 30 |   | Amount |      |
|---------------------|--------|--------|-----------|
| 2012                |   | $      | 885,550   |   |
| 2013                |   |   | 885,550   |   |
| 2014                |   |   | 755,958   |   |
| Total               |   | $      | 2,527,058 |   |

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| Net income                                              |   | $      | 679,842 |   |
|---------------------------------------------------------|--------|--------|---------|--------|
| Less dividends paid to:                                 |   |   |    |   |
|   Common shareholders                         |   |   | -       |   |
|   Series A convertible preferred shareholders |   |   | -       |   |
|   Series B convertible preferred shareholders |   |   | -       |   |
|   Series C convertible preferred shareholders |   |   |  - |   |
| Undistributed earnings                                  |   | $      | 679,842 |   |

|                   |   |   |   |   | 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   |            |   |   | 0.02            |   |   |   | 0.01 |   |
|   Totals     |   | $      | 0.01   |   |            | $      | 0.02   |            |   | $      | 0.02            |   |   | $ | 0.01 |   |

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|                                |   | Distributed & |    |   |   |   |       |      |   |
|-------------------------------------|--------|-------------------|---------|--------|--------|--------|------------|-----------|--------|
|                                |   | Undistributed     |    |   |   |   |       |      |   |
|                                |   | earnings to       |    |   |   |   |       |      |   |
|                                |   | Common            |    |   | Common |   |       | Earnings  |   |
|                                |   | Stock             |    |   | Shares |   |       | Per Share |   |
|                                |   |              |    |   |   |   |       |      |   |
| As reported - Basic                 |   | $                 | 364,033 |   |   |   | 36,368,334 |      |   | $ | 0.01 |   |
| Warrants                            |   |              | -       |   |   |   | -          |      |   |   | - |   |
|                                |   |              | 364,033 |   |   |   | 36,368,334 |      |   | $ | 0.01 |   |
| Series A preferred stock conversion |   |              | 112,279 |   |   |   | 11,217,128 |      |   |   | - |   |
| Series B preferred stock conversion |   |              | 83,414  |   |   |   | 8,333,333  |      |   |   | - |   |
| Series C preferred stock conversion |   |              | 120,116 |   |   |   | 12,000,000 |      |   |   | - |   |
| Diluted earnings for common stock   |   | $                 | 679,842 |   |   |   | 67,918,795 |      |   | $ | 0.01 |   |

| 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 |   |

|                   |   |   |   |   | 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 |   |

|                       |   | Three Months Ended September 30, |    |
|----------------------------|--------|----------------------------------|---------|
|                       |   | 2011                             |    |   | 2010 |   |
|                       |   |                             |    |   |   |   |
| Cash paid for interest     |   | $                                | 176,378 |   |   | $ | 186,075 |   |
| Cash paid for income taxes |   | $                                | 9,798   |   |   | $ | 127,687 |   |

----

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|   ● | 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.      |

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| Three Months Ended September 30              |   | 2011 |       |   | 2010   |   |
|----------------------------------------------|--------|------|------------|--------|--------|--------|
| Sales                                        |   | $    | 24,357,736 |   |   | $      | 16,185,647 |   |
| Cost of sales                                |   | $    | 21,514,314 |   |   | $      | 12,625,157 |   |
| Gross profit                                 |   | $    | 2,843,422  |   |   | $      | 3,560,490 |   |
| Selling, general and administrative expenses |   | $    | 2,220,766  |   |   | $      | 2,232,495 |   |
| Other income (expense)                       |   | $    | 148,979    |   |   | $      | (163,303 | ) |
| Income taxes                                 |   | $    | 91,836     |   |   | $      | 187,436 |   |
| Noncontrolling interest                      |   | $    | (43        | )      |   | $      | (44 | ) |
| Net income attributable to Jpak Group, Inc.  |   | $    | 679,842    |   |   | $      | 977,300 |   |
| Foreign currency translation adjustment      |   | $    | 419,905    |   |   | $      | 501,161 |   |
| Comprehensive income (loss)                  |   | $    | 1,099,704  |   |   | $      | 1,498,417 |   |

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|                                                 |   | For the three months ended September 30, |       |
|------------------------------------------------------|--------|------------------------------------------|------------|
|                                                 |   | 2011                                     |       |   | 2010 |   |
| Cash flow provided by (used in) operating activities |   | $                                        | (161,460   | ) |   | $ | 1,207,815 |   |
| Cash flow used in investing activities               |   |                                     | (5,107,873 | ) |   |   | (4,180,560 | ) |
| Cash flow provided by (used in) financing activities |   |                                     | 834,944    |   |   |   | (443,587 | ) |

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

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

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| 1. | Currently we do not have sufficient in-house expertise in US GAAP reporting. 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. | Although 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 independent audit committee.  |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3. | For the remediation measures that have recently been implemented, they are relatively new and their operating effectiveness still needs to be monitored carefully.                                                                                                                                                                                                                                                                                                                                                                  |

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| 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. |

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|   | JPAK GROUP, INC. |                                        |
|--------|------------------|---------------------------------------------|
|   |             |                                        |   |
|   | By:              | /s/ Yijun Wang                              |   |
|   |             | Yijun WangChief Executive Officer,          |   |
|   |             | President & Director                    |   |
|   |             |                                        |   |
|   | By:              | /s/ Yongbo Wang                             |   |
|   |             | Yongbo (Esther) WangChief Financial Officer |   |

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