UNITED STATES
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB
(Mark One)

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

         For the quarterly period ended DECEMBER 31, 2001

                                       OR

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

         For the transition period from _______ to ________.

         Commission File Number 0-29895


                             ROYCE BIOMEDICAL, INC.

         Nevada                                           98-0206542
-------------------------                           ------------------------
State or other jurisdiction                           (I.R.S.) Employer
of incorporation                                      Identification No.

                             Royce Biomedical, Inc.
                           1100-1200 West 73rd Avenue
                       Vancouver, British Columbia V6P 6G5
                     Address of principal executive offices

                                 (604) 267-7080
               Registrant's telephone number, including area code

                                       N/A
                  Former address of principal executive offices

Indicate by check mark whether the Registrant (1) has files all reports required
to be filed by Section 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) had been subject to such filing
requirements for the past 90 days.

                  Yes                X                    No      ________
                           -----------------

                  As of February 12, 2002 the Company had 5,051,683 outstanding
shares of common stock.


<PAGE>



















                              ROYCE BIOMEDICAL INC.

                                  Vancouver, BC

                          INTERIM FINANCIAL STATEMENTS

                   For the Six Months Ended December 31, 2001




<PAGE>





                              ROYCE BIOMEDICAL INC.
                      INDEX TO INTERIM FINANCIAL STATEMENTS



Review Engagement Report
Interim Balance Sheet                                           Exhibit "A"
Interim Statement of Loss and Deficit                           Exhibit "B"
Interim Statement of Changes in Shareholders' Equity            Exhibit "C"
Interim Statement of Cash Flows                                 Exhibit "D"
Notes to Interim Financial Statements                           Exhibit "E"



                           ---------------------------


<PAGE>


                            REVIEW ENGAGEMENT REPORT

To The Directors of Royce Biomedical Inc.:

         We have reviewed the interim balance sheet of Royce Biomedical Inc. as
at December 31, 2001 and the interim statements of loss and deficit, changes in
shareholders' equity and cash flows for the six months then ended. Our review
was made in accordance with generally accepted standards for review engagements
and accordingly consisted primarily of enquiry, analytical procedures and
discussion related to information supplied to us by the company.

         A review does not constitute an audit and consequently we do not
express an audit opinion on these interim financial statements.

         Based on our review, nothing has come to our attention that causes us
to believe that these interim financial statements are not, in all material
respects, in accordance with generally accepted accounting principles.


                                          "Cinnamon Jang Willoughby & Company"

                                           Chartered Accountants

Burnaby, BC
January 31, 2002






<PAGE>



                                                                 Exhibit "A"
                              ROYCE BIOMEDICAL INC.
                              Interim Balance Sheet
                                   (unaudited)
                                December 31, 2001
                                  (US Dollars)


                                               December 31,         June 30,
                                                  2001                2001
                                               (unaudited)
Assets
                                              ----------------------------------

Current:
    Cash                                     $      11,543        $      59,177
    Accounts receivable                             13,145                7,519
    Prepaid expenses and deposits                  100,518              100,518
    Loan receivable from a director                 79,304               82,894
                                               ------------         ------------
                                                   204,510              250,108
Product license fees (Note 4)                            -                    -
                                              $    204,510         $    250,108
                                              ============         ============

Liability

Current:
    Accounts payable and accrued liabilities  $     64,970        $      73,532
                                              -------------        -------------


Shareholders' Equity

Share Capital (Note 5)                              15,983               15,983
Contributed Surplus (Note 5)                     2,657,827            2,657,827
Deficit, per Exhibit "B"                         2,534,270            2,497,234
                                                 ---------            ---------

                                                   139,540              176,576
Going Concern (Note 6)
Commitments (Note 7)
                                              $    204,510         $    250,108
                                              ============         ============









- See accompanying notes -


<PAGE>





                                                               Exhibit "B"
                              ROYCE BIOMEDICAL INC.
                      Interim Statement of Loss and Deficit
                                   (unaudited)
                   For the Six Months Ended December 31, 2001
                                  (US Dollars)



<TABLE>
<S>                                                  <C>                 <C>               <C>                  <C>

                                                 Three Months        Three Months       Six Months          Six Months
                                                   Ended              Ended              Ended               Ended
                                                 December 31,        December 31,       December 31,        December 31,
                                                    2001                2000               2001                2000
                                                                     (unaudited)                           (unaudited)
                                                 ---------------------------------------------------------------------------------

Sales                                          $        -          $        -         $        -          $        -
Cost of Sales                                           -                   -                  -                   -
                                               ----------         -----------        -----------        ------------

Gross Margin                                            -                   -                  -                   -

Expenses:
    Consulting fees                                     -              14,250              3,947              24,750
    Office and sundry                               1,529               1,380                239               2,052
    Professional fees                               7,817               4,315             11,323              14,937
    Rent                                            1,496                 633              3,050               2,133
    Stock transfer agents' fees                       708               2,750              1,174               3,362
    Telephone                                         350                 491                589                 823
    Travel and promotion                              211               2,932                691               7,898
    Wages and benefits                              8,369               7,500             16,023              15,000
                                                    -----               -----             ------              ------

                                                   20,480              34,251             37,036              70,955
                                                   ------              ------             ------              ------

Net Loss                                           20,480              34,251             37,036              70,955
Deficit, beginning                              2,513,790           2,398,999          2,497,234           2,362,295
                                                ---------           ---------          ---------           ---------

Deficit, ending, to Exhibit "A"                $2,534,270          $2,433,250         $2,534,270          $2,433,250
                                               ==========          ==========         ==========          ==========

Loss per share                              $          --   $              --     $         0.01      $         0.02
                                            =================   =================     ==============      ==============

</TABLE>










- See accompanying notes -


<PAGE>





                                                                    Exhibit "C"
                              ROYCE BIOMEDICAL INC.
              Interim Statement of Changes in Shareholders' Equity
                                   (unaudited)
                   For the Six Months Ended December 31, 2001
                                  (US Dollars)



<TABLE>
<S>                                                            <C>             <C>            <C>              <C>

                                                               Common Shares                Capital
                                                             Shares           Amount        Surplus          Deficit
                                                             -----------------------------------------------------------

Balance, June 30, 2000                                      3,364,138        $14,296        $2,322,006        $2,362,295
Net Loss, per Exhibit "B"                                         --             --               --              70,955
                                                      -------------- --------------   --------------        ------------

Balance, December 31, 2000                                  3,364,138        $14,296        $2,322,006        $2,433,250
                                                            ---------        -------        ----------        ----------


Balance, June 30, 2001                                      5,051,683        $15,983        $2,657,827        $2,497,234
Net Loss, per Exhibit "B"                                          --             --              --              37,036
                                                       -------------- --------------  --------------        ------------

Balance, December 31, 2001, to Exhibit "A"                  5,051,683        $15,983        $2,657,827        $2,534,270
                                                            =========        =======        ==========        ==========

</TABLE>










<PAGE>


                                                                Exhibit "D"
                              ROYCE BIOMEDICAL INC.
                         Interim Statement of Cash Flows
                                   (unaudited)
                   For the Six Months Ended December 31, 2001
                                  (US Dollars)



<TABLE>
<S>                                                       <C>               <C>           <C>               <C>

                                                      Three Months      Three Months   Six Months       Six Months
                                                         Ended             Ended         Ended             Ended
                                                      December 31,      December 31,   December 31,     December 31,
                                                           2001            2000           2001             2000
                                                                        (unaudited)                     (unaudited)
----------------------------------------------------------------------------------------------------------------------

Operating Activities:
    Net Loss, per Exhibit "B"                            $(20,480)        $  (34,251)      $(37,036)      $  (70,955)

    Changes in non-cash working capital -
   (Increase) Decrease in accounts receivable                 (43)               (59)        (5,626)            (589)
   (Increase) Decrease in inventories                          --              1,019             --               --
   (Increase) Decrease in prepaid expenses
      and deposits                                             --                 --             --               13
   Increase (Decrease) in loan receivable
      from a director                                       3,131            (84,667)         3,591               --
   Increase (Decrease) in accounts payable
      and accrued liabilities                              (8,919)            (8,845)        (8,563)          (4,259)
   Increase (Decrease) in loan payable                         --                 --             --           50,000
                                                     ------------     -------------- --------------           ------

Cash flows used in operating activities                   (26,311)          (126,803)       (47,634)         (25,790)

Investing Activity:
    Increase in loan receivable                                --                 --             --          (84,667)
                                                   --------------     -------------- --------------          --------

Net Decrease in Cash                                      (26,311)          (126,803)       (47,634)        (110,457)
Cash, beginning                                            37,854            154,001         59,177          137,655
                                                        ---------         ----------      ---------       ----------

Cash, ending                                             $ 11,543         $   27,198       $ 11,543       $   27,198
                                                         ========         ==========       ========       ==========

</TABLE>













- See accompanying notes -


<PAGE>


                                                                 Exhibit "E"
                              ROYCE BIOMEDICAL INC.
                      Notes to Interim Financial Statements
                                   (unaudited)
                                December 31, 2001
                                  (US Dollars)





1.    Principles of Accounting and General Information:

      These financial statements have been prepared in accordance with
      accounting principles generally accepted in the United States.

      The company was incorporated on March 22, 1995 under the jurisdiction of
the State of Nevada.


2.    Accounting Policies:

      a)   Cash -

           Cash consists of bank accounts integral to the company's cash
management.

      b)   Foreign Currency Translation -

           Assets and liabilities of Canadian operations are translated into
           United States currency at exchange rates prevailing at the balance
           sheet date for monetary items and at rates prevailing at the
           transaction date for non-monetary items. Revenue and expenses, except
           amortization are converted at the average exchange rates for the
           year. Amortization is converted at the same rate as the related
           assets.

           Foreign exchange gains or losses on monetary assets and liabilities
are included in operations.

      c)   Use of Estimates -

           The preparation of financial statements in conformity with generally
           accepted accounting principles requires management to make estimates
           and assumptions that affect the amounts reported in the financial
           statements and accompanying disclosures. Although these estimates are
           based on management's best knowledge of current events and actions
           the company may undertake in the future, actual results may differ
           from the estimates.

3.    Financial Instruments:

      Fair Values -

      Unless otherwise noted, cash, accounts receivable, deposits, loan
      receivable from a director and accounts payable and accrued liabilities
      are stated at amounts that approximate their book value.






<PAGE>




Exhibit "E"
                         ROYCE BIOMEDICAL INC. Continued
                      Notes to Interim Financial Statements
                                   (unaudited)
                                December 31, 2001
                                  (US Dollars)




                                                  December 31,        June 30,
                                                     2001               2001
                                                  (unaudited)
                                                 -------------------------------

4.    Product License Fees:

      Produce license fees, at cost                 $10,000           $10,000
      Less:  Accumulated amortization                10,000            10,000
                                                  ---------         ---------

                                                  $      --           $    --
                                                  =========         =========
5.    Share Capital:

      Authorized -
           100,000,000 Common shares with a par value of $.001 each 5,000,000
               Preferred shares with a par value of $.001 each


<TABLE>
                <S>                                                      <C>            <C>             <C>

                                                                         Common Shares              Contributed
      Issued and Outstanding -                                         # Shares         Amount        Surplus
                                                                       --------------------------------------

      Balance, at June 30, 2000 and December 31, 2000                  3,364,138       $14,296       $2,322,006
      Shares issued for cash                                           1,500,000         1,500          298,500
      Shares issued for debt                                             187,545           187           37,321
                                                                     -----------     ---------     ------------

      Balance,  at June 30, 2001 and December 31, 2001                 5,051,683       $15,983       $2,657,827
                                                                       =========       =======       ==========

</TABLE>


      The following options for the purchase of common shares are outstanding:

           Number of  Exercise      Expiry
            Warrants                Price                    Date
           --------------------------------------------------------------

                33,333              $3.90               December 31, 2001
                83,333               3.91               December 31, 2001
             7,500,000               0.20               December 31, 2001
             2,000,000               0.20               December 31, 2001
               250,000               0.20               March 31, 2002

      At December 31, 2001, 2,678,656 (2000 - 2,398,889) common shares were
restricted from trading.

           Granting of stock options to employees and directors may give rise to
           a charge to income for compensation. In accordance with APB 25 under
           which stock options are measured by the intrinsic value method,
           employee and director compensation cost is limited to the excess of
           the quoted market price at date of grant over the option price.
           Alternatively, in accordance with SFAS-123, stock options could be
           valued using a fair market value method such as the Black-Scholes
           option pricing model. At the date the options were granted, there
           were no available market prices, therefore, it is not possible to
           determine the value of the options.



<PAGE>




                                                                 Exhibit "E"
                         ROYCE BIOMEDICAL INC. Continued
                      Notes to Interim Financial Statements
                                   (unaudited)
                                December 31, 2001
                                  (US Dollars)


6.    Going Concern:

      While the financial statements have been prepared on the basis of
      accounting principles applicable to a going concern, the occurrence of
      significant losses to date raises substantial doubt upon the validity of
      this assumption.

      The company has experienced significant losses over the past six years,
      including $37,036 in the current period and has an accumulated deficit of
      $2,534,270 at December 31, 2001. The company's continued existence as a
      going concern is dependent upon its ability to continue to obtain adequate
      financing arrangements and to achieve and maintain profitable operations.

      If the going concern assumption was not appropriate for these financial
      statements, then adjustments may be necessary in the carrying value of
      assets and liabilities, the reported net loss and the balance sheet
      classifications used.

      The company has financed its activities primarily from the proceeds of
      various share issues and loans from related companies. As a result of the
      company being in the early stages of operations, the recoverability of
      assets on the balance sheet will be dependent on the company's ability to
      obtain additional financing and to attain a level of profitable operations
      from the existing facilities in production and/or the disposition thereof.

7.    Commitments:

      During the year ended June 30, 1997, the company issued shares to a number
      of investors in British Columbia, Canada at $1.42 ($2.00 Canadian).
      Pursuant to the British Columbia Securities Act, an Offering Memorandum
      should have accompanied the issuance of these shares. As this did not
      occur, the shareholders were offered the opportunity to rescind the
      purchase of the shares for a refund of the entire purchase price. Requests
      from shareholders to rescind 14,250 common shares were received within the
      required time limit. The company is required to refund an amount of
      $20,347. At December 31, 2001, these amounts have not been repaid and are
      included in accounts payable and accrued liabilities.

8.    Related Party Transactions:

      In addition to the transactions described elsewhere in the financial
      statements, the company had the following transactions with officers and
      directors of the company.


<TABLE>
           <S>                    <C>                   <C>                   <C>                     <C>

                             Three Months          Three Months           Six Months              Six Months
                                  Ended                 Ended                 Ended                   Ended
                             December 31,          December 31,           December 31,            December 31,
                                   2001                 2000                  2001                     2000
                                                   (unaudited)                                    (unaudited)
                             -------------------------------------------------------------------------------------

        Expenses -
        Consulting fees       $         -                $7,500           $          -               $15,000
        Wages                       7,769                 7,500                 14,823                15,000

</TABLE>


     These  transactions are in the normal course of operations and are measured
at the exchange  amount,  which is the amount of  consideration  established and
agreed to between the parties

<PAGE>

                                                                Exhibit "E"
                                                                Continued

                              ROYCE BIOMEDICAL INC.
                      Notes to Interim Financial Statements
                                   (unaudited)
                                December 31, 2001
                                  (US Dollars)


9.    Income Taxes:

      The company has net losses for income tax purposes totaling approximately
      $2,524,530 which may be applied against future taxable income. The
      potential benefit arising from these losses has been recognized as a
      deferred tax asset. To the extent that those benefits may not be realized,
      a valuation allowance is provided for. The company's deferred tax balances
      are as follows:


<TABLE>
                <S>                                                             <C>                  <C>

                                                                            December 31,          June 30,
                                                                                  2001              2001
                                                                            (unaudited)
                                                                            ------------------------------------

      Deferred tax asset, beginning of year                                     $862,500           $819,265
      Benefit of current year's operating loss carried forward                    12,963             43,235
                                                                             -----------         ----------

      Deferred tax asset, end of year                                            875,463            862,500
                                                                                 -------            -------

      Valuation allowance, beginning of year                                     862,500            819,265
      Current yea's provision                                                     12,963             43,235

      Valuation allowance, end of year                                           875,463            862,500
                                                                                 -------            -------

                                                                          $            -         $            -
                                                                          ==============         ==============

</TABLE>


           As the company has no history of profits, management believes that it
           is more likely than not some or all of the deferred tax asset will
           not be realized and has provided a full valuation allowance against
           the deferred tax asset. The right to claim these losses expire as
           follows:

                                2010                          $173,000
                                2011                           599,000
                                2012                           748,000
                                2013                           508,976
                                2014                           163,944
                                2015                           159,585
                                2016                           134,989
                                2017                            37,036





<PAGE>




                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                    FINANCIAL CONDITION AND PLAN OF OPERATION

         At the present time the Company plans to assemble medical diagnostic
test kits in China to reduce costs. The Company plans to purchase the main
components for its test kits from manufacturers in the United States. In this
regard Osborn Scientific Group has indicated its willingness to sell to the
Company components that would allow the assembly of H. Pylori and other
diagnostic kits in China. Xili has agreed to supply the required assembly space
in one of its pharmaceutical manufacturing plants.

         The Company may also attempt to obtain the necessary approvals to
manufacture the components of the H. Pylori and other test kits in China. Rather
than building its own manufacturing facility, the Company would pursue the
acquisition of a subsidiary of Xili that manufactures pharmaceutical products.

         During the six months ended December 31, 2001 the Company had a net
loss of $(37,036). During this same period the Company's operations used $47,634
in cash. The Company satisfied its cash needs during this period with cash on
hand as of September 30, 2001.

      The Company does not have any available credit, bank financing or other
external sources of liquidity. Due to historical operating losses, the Company's
operations have not been a source of liquidity. In order to obtain capital, the
Company may need to sell additional shares of its common stock or borrow funds
from private lenders. During the year ending June 30, 2002 the Company will need
approximately $4,000,000 in additional capital for acquisition of a subsidiary
of Xili that manufactures pharmaceutical products and manufacturing H. Pylori
test kits in China. In addition, if during the year ending June 30, 2002, the
Company suffers additional losses, the Company will need to obtain additional
capital in order to continue operations.









<PAGE>







                                     PART II
                                OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

         No exhibits are filed with this report


(b)      Reports on Form 8-K

         The Company did not file any reports on Form 8-K during the quarter
ending December 31, 2001.
































<PAGE>


                                   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.



                                            ROYCE BIOMEDICAL, INC.



Date:  February 12, 2002            By  /s/ Kathy Jiang
                                        ---------------------------------
                                            Kathy Jiang
                                            President and Principal Financial
                                            Officer