U.S. SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549



                               FORM 10-QSB




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



             For the quarterly period ended March 31, 2005


                       Commission File Number: 000-50936


                               Birch Branch, Inc.
       ----------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)


         Colorado                                      84-1124170
----------------------------                ---------------------------------
(State of other jurisdiction of             (IRS Employer Identification No.)
 incorporation or organization)


                2525 Fifteenth Street, Ste 3H, Denver, CO 80211
          ----------------------------------------------------------
          (Address of principal executive offices including zip code)


                             (303) 480-5037
                        --------------------------
                        (Issuer's telephone number)



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

                            Yes X             No___


As of March 31, 2005, the Registrant had 1,287,393 shares of common stock, no
par value per share, outstanding.

Transitional Small Business Disclosure Format (check one): Yes__    No X






                                   INDEX


                                                                     Page
                                                                    Number

Part I.       Financial Information

     Item 1.  Financial Statements

              Balance Sheet as of March 31, 2005
              (unaudited) and June 30, 2004                           3

              Statements of Operations, Three Months
              Ended March 31, 2005 and 2004 (unaudited)               4

              Statements of Operations, Nine Months
              Ended March 31, 2005 and 2004 (unaudited)               5

              Statements of Cash Flows, Nine Months
              Ended March 31, 2005 and 2004 (unaudited)               6

              Notes to Financial Statements                           7

     Item 2.  Management's Discussion and Analysis of
              Financial Conditions and Results of
              Operations                                              8

Part II.      Other Information                                      10

Signatures                                                           11



























                                     2


                              BIRCH BRANCH, INC.
                       (A Development Stage Company)
                               BALANCE SHEETS

                                   ASSETS

                                                  March 31,       June 30,
                                                     2005           2004
                                                 (Unaudited)    (See Note 1)
                                                ------------     -----------

Current Assets
 Cash                                           $     2,980      $    2,980
                                                -----------      ----------
Total Current Assets                                  2,980           2,980

Real estate, land                                    55,595          55,595
Real estate, construction in progress               357,196         222,166
                                                -----------      ----------
Total Assets                                    $   415,771      $  280,741
                                                ===========      ==========

                     LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
 Accounts payable, related party                      9,279               -
 Accrued real estate taxes                            2,008             603
                                                -----------      ----------
  Total Current Liabilities                          11,287             603

Advance payable, related party                      333,053         216,235
Accrued interest payable, related party              23,051           5,931
                                                -----------      ----------
Total Liabilities                                   367,391         222,769


Stockholders' Equity:
 Preferred Stock, no par value,
  50,000,000 shares authorized,
  none issued and outstanding                             -               -
 Common Stock, no par value,
  500,000,000 shares authorized
  1,287,393 shares issued and
  outstanding                                        65,613          65,613
Accumulated (deficit)                                (5,173)         (5,173)
Accumulated (deficit) during development stage      (12,060)         (2,468)
                                                -----------      ----------
Total Stockholders' Equity                           48,380          57,972
                                                -----------      ----------

Total Liabilities and Stockholders' Equity      $   415,771      $  280,741
                                                ===========      ==========




The accompanying notes are an integral part of the financial statements.

                                     3


                               BIRCH BRANCH, INC.
                         (A Development Stage Company)
                           STATEMENTS OF OPERATIONS
                                  (Unaudited)

                                      Three Months Ended
                                     March 31,    March 31,
                                      2005           2004
                                  ------------   -----------


Revenues                          $          -   $         -
                                  ------------   -----------

Expenses
   Accounting and auditing               1,500             -
   Other                                   695           302
                                  ------------   -----------
                                         2,195           302
                                  ------------   -----------
Net (Loss)                        $     (2,195)         (302)
                                  ------------   -----------

Per Share                         $        nil   $       nil
                                  ============   ===========

Weighted Average Number of Shares
 Outstanding                         1,287,393     1,287,393
                                  ============   ===========

























The accompanying notes are an integral part of the financial statements.

                                    4




                             BIRCH BRANCH, INC.
                        (A Development Stage Company)
                           STATEMENTS OF OPERATIONS
                                 (Unaudited)

                                                               For the Period
                                                                From July 1,
                                                               2002 (date of
                                                              commencement of
                                                                development
                                       Nine Months Ended      stage) through
                                    March 31,      March 31,     March 31,
                                      2005           2004          2005
                                  -----------    -----------  --------------

Revenues                          $          -   $         -   $         -
                                  ------------   -----------   -----------

Expenses
   Accounting and auditing               6,560             -         6,560
   Real estate taxes                     2,744           925         5,162
   Other                                   288            25           338
                                  ------------   -----------   -----------
                                         9,592           950        12,060
                                  ------------   -----------   -----------
Net (Loss)                        $     (9,592)         (950)      (12,060)
                                  ------------   -----------   -----------

Per Share                         $        nil   $       nil   $       nil
                                  ============   ===========   ===========

Weighted Average Number of Shares
 Outstanding                         1,287,393     1,287,393     1,287,393
                                  ============   ===========   ===========






















The accompanying notes are an integral part of the financial statements.

                                    5


                              BIRCH BRANCH, INC.
                        (A Development Stage Company)
                           STATEMENTS OF CASH FLOWS
                                (Unaudited)

                                                              For the Period
                                                               From July 1,
                                                              2002 (date of
                                                             commencement of
                                                               development
                                       Nine Months Ended      stage) through
                                   March 31,      March 31,      March 31,
                                    2005            2004           2005
                                  ----------     ---------   ---------------

Cash Flows from Operating
Activities:
  Net (loss)                      $ (9,592)      $   (950)      $  (12,060)
  Adjustment to reconcile net
   (loss) to net cash provided
    by operating activities:
     Increase in accounts payable
      and accrued expenses           9,592           -               9,636
                                  --------       --------       ----------
Net Cash (Used in) Operating
Activities                            -              (950)          (2,424)
                                  --------       --------       ----------
Cash Flows from Investing
Activities                            -              -                -
                                  --------       --------       ----------
Cash Flows from Financing
Activities
 Additional paid-in capital           -               950            2,424
                                  --------       --------       ----------
Net Cash Provided by Investing
Activities                            -              -               2,424
                                  --------       --------       ----------
Increase (Decrease) in Cash           -              -                -

Cash, Beginning of Period            2,980          2,980            2,980
                                  --------       --------       ----------
Cash, End of Period               $  2,980       $  2,980       $    2,980
                                  ========       ========       ==========
Interest Paid                     $   -          $   -          $     -
                                  =========      ========       ==========

Income Taxes Paid                 $   -          $   -          $     -
                                  =========      ========       ==========

Schedule of non-cash financing and investing activities:

Construction in progress
financed by advances payable
from related party including
accrued interest                  $ 356,104      $   -          $  356,104
                                  =========      =========      ==========


The accompanying notes are an integral part of the financial statements.

                                    6


                                BIRCH BRANCH, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                           March 31, 2005 (Unaudited)


(1)  Unaudited Financial Statements

The balance sheet as of March 31, 2005, the statements of operations for the
three month and nine month periods ended March 31, 2005 and 2004 and the
statements of cash flows for the nine month periods ended March 31, 2005 and
2004, have been prepared by Birch Branch, Inc. (Company) without audit,
pursuant to the rules and regulations of the Securities and Exchange
Commission.  Certain information and footnote disclosures, normally included
in the financial statements prepared in accordance with accounting principles
generally accepted in the United States of America, have been condensed or
omitted as allowed by such rules and regulations, and the Company believes
that the disclosures are adequate to make the information presented not
misleading.  The results of operations for the three months ending March 31,
2005 are not necessarily indicative of results expected for the full year
ending June 30, 2005.  In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position, results of operations and changes in financial position at
March 31, 2005 and for all periods presented, have been made.

It is suggested that these statements be read in conjunction with the June 30,
2004 audited financial statements and the accompanying notes included in the
Company's Report on Form 10-SB, filed with the Securities and Exchange
Commission.

(2)   Related party transactions

As of March 31, 2005, the Company's President has advanced $333,053 plus
accrued interest at 8% per annum of $23,051 to the Company for the
construction in progress.  In addition, $1,092 has been advanced by a related
party, for a total of $357,196 in construction in progress.  The Company's
President has agreed to fund up to an additional $15,855 plus interest to
provide for the estimated completion costs of the Studio.  Upon completion of
the construction, the advance will be converted to a mortgage note payable
collateralized by the land and building owned by the Company.  The mortgage
loan will accrue interest at 8% per annum with the total note and accrued
interest due five years from the date of completion of the construction.
Construction note interest is being capitalized during the construction
period.  Immaterial real estate taxes on this property, subject to the
construction in progress, are expensed as incurred.

At March 31, 2005, the Company owed $9,279 to a related party, of which $1,092
was related to the construction in progress as stated above.










                                      7



                                    ITEM 2
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS

Certain statements in this Management's Discussion and Analysis of Financial
Condition and Results of Operations which are not historical facts are
forward-looking statements such as statements relating to future operating
results, existing and expected competition, financing and refinancing sources
and availability and plans for future development or expansion activities and
capital expenditures.  Such forward-looking statements involve a number of
risks and uncertainties that may significantly affect our liquidity and
results in the future and, accordingly, actual results may differ materially
from those expressed in any forward-looking statements.  Such risks and
uncertainties include, but are not limited to, those related to effects of
competition, leverage and debt service financing and refinancing efforts,
general economic conditions, changes in laws and regulations, and risks
related to merger and acquisition activities.  The following discussion and
analysis should be read in conjunction with the financial statements and notes
thereto appearing elsewhere in this report.

Overview

The Company was organized on September 28, 1989 under the laws of the state of
Colorado.  Until November 12, 2002, the Company was a wholly owned subsidiary
of Pride Holdings, Inc.  Pride Holdings is a wholly-owned subsidiary of Pride,
Inc. (PRIDE).  Pride, Inc. was a wholly-owned subsidiary of Prime Rate Income
& Dividend Enterprises, Inc. (PIDV).  On November 12, 2002, the directors of
PIDV approved, subject to the effectiveness of a registration with the
Securities and Exchange Commission, the spin-off of PRIDE to the PIDV
shareholders of record on November 26, 2002 on a pro rata basis, exclusive of
shares issued to U.S. Medsys Corp (USMS) shareholders effective November 12,
2002.  PIDV entered into a share exchange agreement with USMS whereby USMS
became a wholly-owned subsidiary of PIDV.  This business combination completed
in November, 2002, was accounted for as a reverse acquisition of PIDV since
the former controlling shareholders of USMS controlled PIDV after the
transaction.  Since USMS's business is not related to the real estate and
mortgage investment business of PRIDE, the PIDV directors decided it was in
the best interest of PIDV and PRIDE and PIDV's shareholders to spin-off PRIDE.
The conditions of the business combination agreement with USMS stipulate that
PRIDE would be spun-off to PIDV shareholders.  The shares of PRIDE are being
held by Michael L. Schumacher, President, for the benefit of PIDV
shareholders, in escrow with instructions to distribute the PRIDE shares once
the PRIDE Form 10-SB is effective with the Securities and Exchange Commission.
Management of PRIDE intends to continue operations of PRIDE in the same manner
as prior to the spin-off and does not anticipate any additional corporate
transactions which might impact the continuing interest of the shareholders.

Simultaneous with the spin-off of Pride, Inc., the directors of Pride and
Pride Holdings, Inc. determined that Birch Branch should also be distributed
in the same manner to the same qualified PIDV shareholders.  Birch Branch is
the owner of five residential lots comprising a total of eight acres in
Nebraska.  Since Birch Branch desired to develop this property and needed
additional capital to fund this development and since Pride and Pride
Holdings, Inc. are not in the real estate development business, it was
determined that it was in the best interest of Pride's shareholders to
spin-off Birch Branch to the same PIDV qualified shareholders.  The shares of


                                    8


Birch Branch, Inc. are being held by Ann Porath, Attorney at Law, Wellington,
Florida, for the benefit of the PIDV qualified shareholders.  The shares will
not be distributed to the PIDV qualified shareholders until such time the
shares are registered under a Securities and Exchange Commission, 1933
Exchange Act registration or until such time an appropriate exemption from
such registration has been determined to be appropriate.

Birch Branch is principally in the real estate investment business.  Birch
Branch owns real estate in Nebraska.  At November 12, 2002, Birch Branch had
tentative plans to build a replica of a historic artist's studio (Studio) on
one of the Nebraska lots, but had not commenced construction at that time.
The tentative plans called for using the Studio as a private museum and as a
bed and breakfast type rental facility.  Construction began on the Studio in
2004 and currently is approximately 95% complete.  Since there are five lots
included in this property, the remaining four lots are being held as
investments for potential future development or sale.

Results of Operations

The Company generated no revenues during the quarter ended March 31, 2005, and
management does not anticipate any revenues until the capital improvements are
completed, or following the conclusion of a merger or acquisition, as
contemplated by the Company's business plan.

The Company has minimal capital.

At March 31, 2005, the Company had commitments of approximately $15,000 for
capital expenditures related to the completion of the Studio.





























                                     9



                          PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities

         None.

Item 3.  Defaults upon Senior Securities

         None.

Item 4.  Submission of Matters to a Vote of Security Holders

         None.

Item 5.  Other Information

         None.

Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits.

         31.1   Certification of Chief Executive Officer      Filed herewith
                and Chief Financial Officer pursuant          electronically
                to Section 302 of the Sarbanes-Oxley
                Act of 2002

         31.2   Certification of Vice-President pursuant      Filed herewith
                to Section 302 of the Sarbanes-Oxley          electronically
                Act of 2002

         32.1   Certification of Chief Executive Officer      Filed herewith
                and Chief Financial Officer pursuant          electronically
                to 18 U.S.C. Section 1350

         32.2   Certification of Vice-President pursuant     Filed herewith
                to 18 U.S.C. Section 1350                    electronically

         (b)  Reports on Form 8-K.  None














                                     10



                                  SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this quarterly report to be signed
on its behalf by the undersigned, thereunto duly authorized.

Birch Branch, Inc.



By: /s/ Michael Schumacher
    Michael Schumacher, President,
    Treasurer, Chief Executive Officer
    Chief Financial Officer and Director


Date:  May 16, 2005


By: /s/ George A. Powell
    George A. Powell, Vice-President,
    Secretary and Director

Date:  May 16, 2005

































                                   11