U. S. Securities and Exchange Commission
                          Washington, D. C. 20549

                               FORM 10-QSB

[X]    	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

        For the quarterly period ended March 31, 2006

[ ]    	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

        For the transition period from _____ to _____

                        Commission File No. 3-52472

                       PINGCHUAN PHARMACEUTICAL, INC.
               ---------------------------------------------
               (Name of Small Business Issuer in its Charter)

         North Carolina                               58-2258912
     -------------------------------------------------------------------
     (State or Other Jurisdiction of          (I.R.S. Employer I.D. No.)
      incorporation or organization)

131 Shizi Street, Nangang District, Harbin Heilongjiang F4, P.R. China 150000
-----------------------------------------------------------------------------
                   (Address of Principal Executive Offices)

                Issuer's Telephone Number: 011-86451-8271-3712

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities Exchange
Act of 1934 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  [ ]

Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act)    Yes  [ ]       No  [X]

APPLICABLE ONLY TO CORPORATE ISSUERS:  Indicate the number of shares
outstanding of each of the Registrant's classes of voting stock, as of
the latest practicable date:
                             May 11, 2006
                             Common Voting Stock: 71,996,407

Transitional Small Business Disclosure Format (check one):   Yes [ ]  No [X]

<PAGE>

PART I     FINANCIAL INFORMATION

                        PINGCHUAN PHARMACEUTICAL, INC.

                          CONSOLIDATED BALANCE SHEET
                                 (UNAUDITED)
                                                               March 31,
                                                                 2006
                                                             -----------
ASSETS
 Current Assets:
  Cash and cash equivalents                                  $     25,106
  Accounts receivable, net                                         49,394
                                                                ---------
 Total current assets                                              74,500

Consulting fees receivable from a related party
 (Note 4)                                                          39,820
                                                                ---------
 Total Assets                                                $    114,320
                                                                =========

LIABILITIES AND STOCKHOLDERS' EQUITY
 Current Liabilities:
 Accounts payable and accrued expenses                       $     11,649
 Taxes payable                                                     19,257
 Loan from shareholders (Note 5)                                   17,041
                                                                ---------
 Total Current Liabilities                                         47,947
                                                                ---------
Commitments and Contingencies (Note 8)                                  -

Stockholders' Equity:
 Preferred stock, $0.001 par value, 5,000,000
  shares authorized; none issued and outstanding                        -
  as of March 31, 2006
 Common stock, $0.001 par value, 150,000,000 shares
  authorized; 71,996,406 shares issued and
  outstanding (Note 4)                                             71,996
 Additional Paid-in capital                                       301,073
 Accumulated deficiency                                          (310,345)
 Accumulated other comprehensive income                             3,649
                                                                ---------
 Stockholders' Equity                                              66,373
                                                                ---------
 Total Liabilities and Stockholders' Equity                  $    114,320
                                                                =========


See Notes to Financial Statements
                                     -2-
<PAGE>

                         PINGCHUAN PHARMACEUTICAL, INC.

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (UNAUDITED)

                                                  For the Three Months Ended
                                                           March 31,
                                                     2006              2005
                                                  ---------------------------
Revenues
 Service income                                   $   60,943     $   67,867

Operating Expenses
 Consulting fees paid with stock                           -        200,000
 Professional fees                                     8,500          3,300
 Payroll                                              12,666         12,107
 Office rent                                           1,688          1,688
 General and administrative                            1,071          1,049
                                                   ---------       --------
 Total Operating Expenses                             23,925        218,144
                                                   ---------       --------
Income (Loss) from Operation and before
 provision for Income Tax                             37,019       (150,277)

Provision for Income Tax                              15,578         18,054
                                                   ---------       --------
Net loss                                              21,441       (168,331)
                                                   ---------       --------
Other Comprehensive Income
 Effects of Foreign Currency Conversion                1,151              -
                                                   ---------       --------
Comprehensive Income (Loss)                       $   22,591     $ (168,331)
                                                   =========       ========

Basic and Fully Diluted Earnings Per Share        $        -     $        -
                                                   =========       ========

Weighted average shares outstanding               71,996,406     71,496,074
                                                  ==========     ==========



See Notes to Financial Statements.
                                      -3-

<PAGE>
                        PINGCHUAN PHARMACEUTICAL, INC.

                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)

                                                     For the Three Months Ended
                                                              March 31,
                                                     --------------------------
                                                         2006           2005
                                                      ---------      ---------
Operating Activities
 Net income (loss)                                   $   21,441     $ (168,331)

 Adjustments to reconcile net income (loss) to
  net cash provided (used) by operating activities:
  Contributed rent                                        1,688          1,688
  Stock issued for consulting expense                         -        200,000
 Changes in operating assets and liabilities:
  (Increase)/Decrease in accounts receivable             30,684        (49,997)
  (Increase)/Decrease in consulting for receivable
   from a related party                                  14,885         19,210
  Increase/(Decrease) in accounts payable and
   accrued expenses                                     (18,204)         9,859
  Increawe/(Decrease) in taxes payable                   19,257         10,928
                                                      ---------      ---------
 Net cash provided (used) by operating activities        69,753         23,358
                                                      ---------      ---------
Financing Activities
 Repayment of notes payable                                   -         (6,000)
 Loan from shareholders                                       -         47,806
 Repayment of loan from shareholders                    (74,130)             -
                                                      ---------      ---------
 Net cash provided (used) by financing activities       (74,130)        41,806
                                                      ---------      ---------
Increase (decrease) in cash                              (4,377)        65,164
Effects of exchange rates on cash                        (2,132)             -
 Cash at beginning of period                             31,615          1,431
                                                      ---------      ---------
 Cash at end of period                               $   25,106     $   66,595
                                                      =========      =========
Supplemental Disclosures of Cash Flow Information:
 Cash paid (received) during year for:
  Interest                                           $        -     $        -
                                                      =========      =========

  Income taxes                                       $        -     $        -
                                                      =========      =========

Supplemental Cash Flow Information:
 Issuance of 1.000,000 shares of common stock
  par value $0.001 per share for consulting service  $        -     $  200,000
                                                      =========      =========



See Notes to Financial Statements.
                                      -4-

<PAGE>
                        PINGCHUAN PHARMACEUTICAL, INC.

                        NOTES TO FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

The consolidated financial statements of Pingchuan Pharmaceutical, Inc. and
subsidiary (collectively, the "Company"), included herein were prepared,
without audit, pursuant to rules and regulations of the Securities and
Exchange Commission.  Because certain information and notes normally included
in financial statements prepared in accordance with accounting principles
generally accepted in the United States of America were condensed or omitted
pursuant to such rules and regulations, these financial statements should be
read in conjunction with the financial statements and notes thereto included
in the audited financial statements of the Company as included in the
Company's Form 10-KSB for the year ended December 31, 2005.

Note 2- ORGANIZATION AND OPERATIONS

     Pingchuan Pharmaceuticals, Inc. ("Pingchuan") was organized under the
laws of the State of North Carolina on July 20, 1996. The Company is authorized
to issue 50,000,000 shares of common stock of $0.001 par value and 50,000,000
shares of preferred stock of $0.001 par value. Pingchuan is a non-operative
holding company of Heilongjiang Pingchuan Yi Liao Qi Xie You Xian Gong Si
(Heilongjiang Pingchuan), a corporation organized and existed under the laws
of the Peoples' Republic of China ("PRC") and is primarily engaged in the sale
of medical equipment and the providing of consultation services in the
pharmaceutical business.

     On June 22, 2004, Pingchuan (formerly Xenicent, Inc.) executed a Plan of
Exchange ("the Agreement") with all the shareholders of Heilongjiang Pingchuan
to exchange 70,000,000 shares of common stock of the Company for 100%
of the registered capital of Heilongjiang Pingchuan. On July 28, 2004, Xenicent
changed its name to Pingchuan Pharmaceutical, Inc. ("Pingchuan Pharmaceutical")
and increased its authorized shares of common stock from 50,000,000 to
150,000,000 by filing Articles of Amendment with the Secretary of State in
the State of North Carolina.

                                     -5-
<PAGE>
                       PINGCHUAN PHARMACEUTICAL, INC.

                       NOTES TO FINANCIAL STATEMENTS

Note 2- ORGANIZATION AND OPERATIONS (continued)

Going Concern

     As reflected in the accompanying consolidated financial statements,
the Company has an accumulated deficit of $310,345 at March 31, 2006 that
includes an operating loss of $136,263 for the year ended December 31, 2005.
Additionally, the Company has only two customers, one of which is a related
party.  The loss of either customer would have a material adverse effect on the
Company's financial position and results of operations.  These factors raise
substantial doubt about its ability to continue as a going concern.  In view of
the matters described above, recoverability of a major portion of the recorded
asset amounts shown in the accompanying consolidated balance sheet is dependent
upon continued operations of the company, which in turn is dependent upon the
Company's ability to raise additional capital, obtain financing and succeed in
its future operations.  The financial statements do not include any adjustments
relating to the recoverability and classification of recorded asset amounts or
amounts and classification of liabilities that might be necessary should the
Company be unable to continue as a going concern.

     Management has taken the following steps to revise its operating
and financial requirements, which it believes are sufficient to provide the
Company with the ability to continue as a going concern.  The Company is
actively pursuing additional funding and a potential merger or acquisition
candidate and strategic partners, which would enhance stockholders' investment.
Management believes that the above actions will allow the Company to continue
operations through the next fiscal year.

Note 3- SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

     The accompanying consolidated financial statements include the
accounts of the Company and its wholly owned subsidiary, Heilongjiag
Pingchuan.

Use of Estimates

     The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

                                     -6-
<PAGE>
                      PINGCHUAN PHARMACEUTICAL, INC.

                      NOTES TO FINANCIAL STATEMENTS

Note 3- SIGNIFICANT ACCOUNTING POLICIES (continued)

Cash and Cash Equivalents

     For purpose of the statements of cash flows, cash and cash
equivalents include cash on hand and demand deposits with a bank with a
maturity of three months or less.

Accounts Receivable

     The Company extends unsecured credit to its customers in the ordinary
course of business but mitigates the associated risks by performing credit
checks and actively pursuing past due accounts. An allowance for doubtful
accounts is established and recorded based on managements" assessment of the
credit history with the customer and current relationships with them. As of
December 31, 2005 and 2004, the Company considers all its accounts receivable
to be collectable and no provision for doubtful accounts has been made in the
financial statements.

Fair Value of Financial Instruments

     Statement of Financial Accounting Standards No. 107, Disclosure About
Fair Value of Financial Instruments, requires certain disclosures regarding
the fair value of financial instruments. Trade accounts receivable, accounts
payable, and accrued liabilities are reflected in the financial statements
at fair value because of the short-term maturity of the instruments.

Revenue Recognition

     The Company provides consultation services to a related company and
one other customer based on a negotiated contract basis. The Company recognizes
service based revenue from it contracts when the service has been performed,
the customer has approved the completion of services and collectibility is
reasonably assured.

     Consulting revenues were derived from two customers.  An unrelated
third party, provided 55% of revenues and has one more year left on its
contract.  The balance of the revenues 45%, were provided by a company owned
by directors of the Company.

                                     -7-
<PAGE>

                       PINGCHUAN PHARMACEUTICAL, INC.

                       NOTES TO FINANCIAL STATEMENTS

Note 3- SIGNIFICANT ACCOUNTING POLICIES (continued)

Income Taxes

     The Company accounts for income taxes under the Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes"
("Statement 109"). Under Statement 109, deferred tax assets and liabilities are
recognized for the future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and liabilities and
their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled.
Under Statement 109, the effect on deferred tax assets and liabilities of a
change in tax rates is recognized in income in the period that includes
the enactment date.

     PRC income tax is computed according to the relevant laws and
regulations in the PRC. The Company"s applicable tax rate has been 33%.

Fair Value of Financial Statements

     The respective carrying value of certain on-balance sheet financial
instruments approximates their fair values. These financial instruments
include cash, accounts payable and accrued liabilities, indebtedness to
related parties and notes payable.  Fair values were assumed to approximate
cost or carrying values as most of the debt was incurred recently and the
assets were acquired within one year.   Management is of the opinion that the
Company is not exposed to significant interest, credit or currency risks
arising from these financial instruments.

Foreign Currency Translation

     For the Chinese subsidiary the Chinese Renminbi ("RMB") is the
functional currency.  Assets and liabilities denominated in the RMB are
translated into U.S. dollars at end-of-period exchange rates, and the resultant
translation adjustments are reported, net of their related tax effects, as a
component of Accumulated Other Comprehensive Income (Loss) in stockholders'
equity.  Assets and liabilities denominated in other than the local currency
are remeasured into the local currency prior to translation into U.S. dollars,
and the resultant exchange gains or losses are included in income in the period
in which they occur.  Income and expenses are translated into U.S. dollars at
average exchange rates in effect during the period.

                                     -8-
<PAGE>

                      PINGCHUAN PHARMACEUTICAL, INC.

                      NOTES TO FINANCIAL STATEMENTS

Note 3- SIGNIFICANT ACCOUNTING POLICIES (continued)

Comprehensive income (loss)

     The foreign currency translation gain or loss resulting from
translation of the financial statements expressed in RMB to United States
Dollar is reported as other comprehensive income (loss) in the statements
of operations and stockholders" equity.

Earnings Per Share

     Basic earnings per share are computed by dividing income available
to common stockholders by the weighted average number of common shares
outstanding during the year. Diluted income per share is computed similar to
basic income per share except that the denominator is increased to include the
number of additional common shares that would have been outstanding if the
potential common shares had been issued and if the additional common shares
were dilutive. There are no potentially dilutive securities for 2005 and 2004.

Segments

     The Company operates in only one business segment, therefore segment
disclosure is not presented.

Interim Financial Information

The unaudited interim financial statements have been prepared in
accordance with United States generally accepted accounting
principles for interim financial information. In the opinion of
management, all adjustments considered necessary for a fair
presentation of the financial position, results of operations and
cash flows as at March 31, 2006, and 2005, have been included.
Readers of these financial statements should note that the interim
results for the three month period ended March 31, 2006 are not
necessarily indicative of the results that may be expected for the
fiscal year as a whole.

                                     -9-
<PAGE>
                      PINGCHUAN PHARMACEUTICAL, INC.

                       NOTES TO FINANCIAL STATEMENTS

Note 4- SHAREHOLDER EQUITY - STOCK ISSUANCES

     On June 22, 2004, the Company executed a Plan of Exchange pursuant
to which the Company agreed to issue 70,000,000 new shares of common stock to
the shareholders of Heilongjiang Pingchuan in exchange for 100% of registered
capital of Heilongjiang Pingchuan. The Plan of Exchange was consummated on
August 11, 2004 and recorded for accounting purposes as a reverse merger and
recapitalization of the Company.

     Additionally, the new shareholders of the Company paid $400,000 to
purchase and retire 1,300,000 shares  of the Company"s  common  stock.  These
shares were contributed back to the Company as Treasury Stock and the
cancelled.

     During April 2005, the Company issued 200,000 shares of common stock
to a consultant for his website maintenance service. The price of the
Company's common stock on April 8, 2005 was $0.20.  The Management valued the
cost of the service at $40,000.

     During April 2005, the Company issued 5,000 shares of common stock to
a consultant for services. The price of the Company's common stock on April
8, 2005 was $0.20.  The Management valued the cost of the service at $1,000.

     On March 20, 2005, the Company executed a consulting agreement, pursuant
to which the Company agreed to issue 500,000 shares of common stock for
a pharmaceutical consultation service. The agreement was consummated in 2005
when the price of the Company's common stock was $0.20.  The Management valued
the cost of this service at $100,000.

     During January, 2005, the Company issued 500,000 shares of common
stock for marketing consultation services. The price of the Company's common
stock was $0.20.  Management valued the cost of this service at $100,000.

                                    -11-
<PAGE>

                        PINGCHUAN PHARMACEUTICAL, INC.

                        NOTES TO FINANCIAL STATEMENTS

Note 5- RELATED PARTY TRANSACTIONS

Due From Related Parties

     Consulting fee receivable from a related party at March 31,
     2006 consist of:


     Heilongjiang consulting fee receivable           $ 39,820
                                                       -------
                                                      $ 39,820
                                                       =======

     The Company provides consultation services to a related company owned by
the Company's directors, based on a negotiated contract basis.  The Company
earned management fees of $14,813 and $21,860 from this related company in
the three months ended March 31, 2006 and 2005, respectively. As of March 31,
2006, $39,820 was outstanding as accounts receivable.

     Loans from shareholders represent loans payable that are unsecured,
non-interest bearing and have no fixed terms of repayment, therefore, deemed
payable on demand.

     The Company uses office space of approximately 4,000 square feet
provided by a related company owned by the Company's directors at no charge
to the Company.  The market value of the annual rent was approximately $6,750
and the Company recorded the free rent as a contribution to capital of $1,688
in the three months ended March 31, 2006 and 2005, respectively.

Note 6- CONCENTRATIONS AND RISKS

     The Company's business operations exist solely in the PRC and are
subject to significant risks not typically associated with companies in North
America and Western Europe.  These include risks associated with, among others,
the political, economic and legal environments and foreign currency
limitations.

     The Company's results may thus be adversely affected by changes in
the political and social conditions in the PRC, and by changes in governmental
policies, laws, regulations, anti-inflationary measures, currency conversion and
remittance limitation, and rates and methods of taxation, among other things.

     The Company relies on two customers for all of its revenue.

Note 7-  COMMITMENTS AND CONTINGENCIES

     On March 6, 2006 Greentree Financial Group, Inc. ("Greentree"), a former
consultant to the Company, filed a breach of contract complaint in the Superior
Court in Mecklenberg County, North Carolina for non payment of contractual
obligations for 2004 and 2005 in the amount of $118,500 plus attorney's fees.
Company management believes it has paid Greentree the full amount it is due and
will contest the complaint.  An adverse outcome to this matter would have a
material adverse effect on the Company's financial position and results of
operations.
                                    -12-
<PAGE>

ITEM 2.    MANAGEMENT DISCUSSION AND ANALYSIS

     A Warning Concerning Forward- Looking Statements

     The information in this discussion contains forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended.  These forward-looking statements include statements
regarding our capital needs, business strategy and expectations.  Any
statements contained herein that are not statements of historical facts
may be deemed to be forward-looking statements.  Readers are cautioned
that there are risks and uncertainties which may cause actual future
results to differ from the results anticipated in these forward-looking
statements. Among the more significant risks are:

     *  The fact that Pingchuan does not have a detailed business plan, but
        provides consulting services to only two clients.

     *  The fact that Pingchuan's current business operations are not
        sufficient in size to produce significant financial results.

     *  The fact that Pingchuan lacks the capital necessary to
        substantially enlarge its business operations.

     These factors and other risks, known and unanticipated, may cause
Pingchuan's results to differ significantly from those anticipated in
this report.  Readers are cautioned not to place undue reliance on the
forward-looking statements in this report, which reflect management's
opinions only as of the date hereof. We disclaim any obligation to
publicly update these statements, or disclose any difference between its
actual results and those reflected in these statements.

     Results of Operations

     We recorded revenues of $60,943 in the first quarter of 2006,
compared to $67,867 in revenue in the first quarter of 2005. All of our
revenue represented professional service fees from (a) Harbin Pingchuan,
which has contracted to pay us through 2009 for consulting services a
professional services fee of $48,000 per year plus 15% of its sales
revenue and (b) Moscow Sing Sing Co, Ltd., which has contracted to pay us
$50,000 every 90 days through January 2007 for marketing services.

     The majority of our revenue currently comes from the Sing Sing
contract, which will terminate at the end of this year.  We expect the
growth of our business in 2006 to come primarily from increased business
at Harbin Pingchuan.  Our revenue from that source will increase,
however, only if Harbin Pingchuan is successful in obtaining the funds
that it needs in order to expand the marketing of its herbal supplements
for diabetics.  Revenue from Harbin Pingchuan for the first quarter of
2006 was significantly less than in the first quarter of 2005.

                                     -13-
<PAGE>

     Because our operations consist entirely of consulting services
performed by our management, we record no cost of sales, so all of our
revenue flows through to become gross profit.  Similarly, we incur
relatively low operating expenses.  Our selling, general and
administrative expenses in the first quarter of 2006 were $23,925,
representing only 39% of our revenue.  In the same period of 2005, we
incurred approximately equal operating expenses that we settled in cash
but an additional $200,000 in consulting fees that we paid by issuing
stock.  Because of our lack of cash resources, it is likely that we will
in the future issue stock to the individuals that are critical to our
efforts at business expansion.

     For the first quarter of 2006 we realized net income (before gains
from currency translations) of $21,441, compared to a net loss of
$168,331 in the first quarter of 2005.  At our current level of
operations, we expect to continue to realize profits, albeit modest,
except during periods when we issue stock for services.  Our plan,
however, is to expand operations, which is likely to affect our
profitability.

     Liquidity and Capital Resources

     On March 31, 2006 Pingchuan Pharmaceutical had $26,553 in working
capital, an improvement of $35,913 from the working capital deficit that existed
at December 31, 2006.  The primary reason for the improvement is the fact that
the Company utilized the cash received during the quarter from its consulting
contracts to reduce the balance of its loans from shareholders.

     Pingchuan realized $69,753 in net cash from operations during the first
quarter of 2006, due to payments on its two consulting contracts.  While this
level of cash flow is sufficient to sustain our current level of operations,
the low level of operations currently carried on will not produce sufficient
cash to fund an expansion of operations.  Therefore, unless additional capital
is obtained or the Company's relationship with Harbin Pingchuan provides
increased cash flow to Heilongjiang Pingchuan, the Company will not have the
resources necessary to expand its operations.

                                     -14-
<PAGE>

     In order to expand operations, the Company will have to invest
funds in marketing, capital equipment and related infrastructure items.
Currently the Company lacks the capital resources necessary to make those
investments.  Accordingly, the Company is currently exploring
opportunities to raise capital.  At present it has secured no commitments
from investors.

     Off-Balance Sheet Arrangements

     We do not have any off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial
condition or results of operations.

ITEM 3.    CONTROLS AND PROCEDURES

     Evaluation of Disclosure Controls and Procedures.  Yao Qitai, our
Chief Executive Officer, and Zhang Chunman, our Chief Financial Officer,
carried out an evaluation of the effectiveness of the Company's
disclosure controls and procedures as of March 31, 2006.  Pursuant to
Rule13a-15(e) promulgated by the Securities and Exchange Commission
pursuant to the Securities Exchange Act of 1934, "disclosure controls and
procedures" means controls and other procedures that are designed to
insure that information required to be disclosed by the Company in the
reports that it files with the Securities and Exchange Commission is
recorded, processed, summarized and reported within the time limits
specified in the Commission's rules.  "Disclosure controls and
procedures" include, without limitation, controls and procedures designed
to insure that information the Company is required to disclose in the
reports it files with the Commission is accumulated and communicated to
our Chief Executive Officer and our Chief Financial Officer as
appropriate to allow timely decisions regarding required disclosure.
Based on their evaluation, Messrs. Yao and Zhang concluded that the
Company's system of disclosure controls and procedures was effective as
of March 31, 2006 for the purposes described in this paragraph.

     Changes in Internal Controls.  There was no change in internal
controls over financial reporting (as defined in Rule 13a-15(f)
promulgated under the Securities Exchange Act or 1934) identified in
connection with the evaluation described in the preceding paragraph that
occurred during the Company's first fiscal quarter that has materially
affected or is reasonably likely to materially affect the Company's
internal control over financial reporting.

PART II    OTHER INFORMATION

Item 1. Legal Proceedings

     On April 6, 2006 GreenTree Financial Group, Inc. commenced an
action in the General Court of Justice of the State of North Carolina
(County of Mecklenberg) titled "GreenTree Financial Group, Inc. v.
Pingchuan Pharmaceuticals, Inc."  GreenTree Financial Group alleges that
it performed services under contract for Pingchuan Pharmaceutical, Inc.,
and is owed $118,500.  Pingchuan Pharmaceutical denies that any money is
due to GreenTree Financial Group, and has moved to dismiss the complaint
for failure to state a claim.

Item 6.	Exhibits

     31.1    Rule 13a-14(a) Certification - CEO
     31.2    Rule 13a-14(a) Certification - CFO
     32      Rule 13a-14(b) Certification


                                 SIGNATURES

       Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this Report to be signed on
its behalf by the undersigned thereunto duly authorized.

                                 PINGCHUAN PHARMACEUTICAL, INC.


Date: May 12, 2006               By:  /s/ Hu Zhanwu
                                 ---------------------
                                 Hu Zhanwu, President