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, 2000.

                                       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 December 31, 2000 the Company had  3,364,138  outstanding  shares of
common stock.



<PAGE>

















                              ROYCE BIOMEDICAL INC.

                                  Vancouver, BC

                          INTERIM FINANCIAL STATEMENTS
                                   (unaudited)

                   For the Six Months Ended December 31, 2000




<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, 2000 and the interim  statements  of loss and  deficit,  changes in
shareholders'  equity and cash flows for the three 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 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
February 7, 2001




<PAGE>


                                                                  Exhibit "A"
                                ROYCE BIOMEDICAL INC.
                                Interim Balance Sheet
                                     (unaudited)
                                  December 31, 2000
                                    (US Dollars)


                                                December 31,     June 30,
Assets                                             2000            2000
                                                -----------     ----------
Current:
   Cash                                        $      27,198  $    137,655
   Accounts receivable                                 1,413           824
   Prepaid expenses                                      500           513
                                              --------------    ----------
                                                      29,111       138,992
Product licence fees (Note 4)                         -                 --
Loan receivable - Director (Note 5)                   84,667            --
                                                --------------------------

                                                 $   113,778    $  138,992
                                                 ===========    ==========

Liabilities
Current:
   Accounts payable and accrued liabilities      $    73,217 $      77,476
   Loan payable                                      100,000        50,000
                                                 -----------     ---------
                                                     173,217       127,476
Loan payable to a related party (Note 6)              37,509        37,509
                                                 -----------      --------
                                                     210,726       164,985
Shareholders' Equity
Share Capital (Note 7)                                14,296        14,296
Contributed Surplus (Note 7)                       2,322,006     2,322,006
Deficit, per Exhibit "B"                          (2,433,250)   (2,362,295)
                                                  -----------   -----------
                                                     (96,948)       (25,993)
Going Concern (Note 8)
Commitments (Note 9)
                                                $    113,778  $    138,992
                                                ============  ============












                             See accompanying notes


<PAGE>




- See accompanying notes -
                                                                   Exhibit "B"
                                ROYCE BIOMEDICAL INC.
                        Interim Statement of Loss and Deficit
                                     (unaudited)
                     For the Six Months Ended December 31, 2000
                                    (US Dollars)


                          Three Months   Three Months   Six Months   Six Months
                            Ended           Ended         Ended        Ended
                         December 31,   December 31,  December 31,  December 31,
                             2000            1999          2000        1999
-------------------------------------------------------------------------------

Sales                      $      -      $      -       $     -
     $     52,000
Cost of sales                     -             -             -           19,923

Gross Margin                      -             -             -           32,077

Expenses:
   Consulting fees               14,250         12,540        24,750      58,096
   Office and sundry (sundry)     1,380            (80)        2,052       1,049
   Professional fees              4,315         12,017        14,937      15,517
   Rent                             633          2,227         2,133       3,727
   Stock transfer agents fees     2,750            925         3,362         925
   Telephone                        492            123           823         427
   Travel and promotion           2,931          4,236         7,898       7,427
   Wages and benefits             7,500          5,968        15,000      18,618
                                -------        -------        ------      ------
                                 34,251         37,956        70,955     105,786

Net Loss                         34,251         37,956        70,955      73,709
Deficit, beginning            2,398,999      2,270,337     2,362,295   2,202,710
                              ---------      ---------     ---------   ---------
Deficit, ending, to
 Exhibit "A"                 $2,433,250     $2,308,293    $2,433,250  $2,276,419
                               ==========   ==========    ==========  ==========


Loss per share           $         0.01   $       0.01   $      0.02  $     0.03
                         ==============  =============   ============  ========











                             See accompanying notes


<PAGE>




- See accompanying notes -
                                                                    Exhibit "C"
                                ROYCE BIOMEDICAL INC.
                Interim Statement of Changes in Shareholders' Equity
                                     (unaudited)
                     For the Six Months Ended December 31, 2000
                                    (US Dollars)


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

Balance at June 30, 1999        3,271,916    $14,019  $2,305,683   $(2,202,710)
Shares issued for services
   rendered                        92,222        277      16,323            --
Net Loss, per Exhibit "B"              --         --          --       (73,709)
                           ----------------------------------------------------

Balance at December 31, 1999    3,364,138    $14,296  $2,322,006   $(2,276,419)
                                =========    =======  ==========   ============

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

Balance at December 31, 2000    3,364,138    $14,296  $2,322,006   $(2,433,250)
                                =========    =======  ==========   ============



















                             See accompanying notes



<PAGE>





                                                                 Exhibit "D"
                                ROYCE BIOMEDICAL INC.
                           Interim Statement of Cash Flows
                                     (unaudited)
                     For the Six Months Ended December 31, 2000
                                    (US Dollars)


                                                Six Months           Six months
                                                   Ended                Ended
                                               December 31,         December 31,
                                                   2000                 1999
                                                ----------        -------------
Operating Activities:
   Net Loss, per Exhibit "B"                    $ (70,955)           $ (73,709)
   Adjustment for -
     Common shares issued for services rendered         --              16,600
                                               -----------            --------
                                                  (70,955)             (57,109)
   Changes in non-cash working capital -
     (Increase) Decrease in accounts receivable      (589)             (52,000)
     (Increase) Decrease in prepaid expenses           13              199,300
     Increase (Decrease) in accounts payable
         and accrued liabilities                   (4,259)               8,600
     Increase (Repayment) in loan payable          50,000               50,000
                                                   ------               ------
Cash flows from (used in) operating activities    (25,790)             148,791

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

Financing Activity:
   Repayment of note to related party                  --                 (431)
                                            -------------             ---------
Net Increase (Decrease) in cash                  (110,457)             148,360
Cash, beginning                                   137,655               37,400
                                                 --------             --------
Cash, ending                                   $   27,198             $185,760
                                               ==========             ========


Supplemental Disclosure of Cash Flow Information:

Non-cash transaction -
   92,222 common shares were issued for $16,600 in services rendered during 1999




                             See accompanying notes



<PAGE>


                                                                   Exhibit "E
                              ROYCE BIOMEDICAL INC.
                      Notes to Interim Financial Statements
                                   (unaudited)
                                December 31, 2000
                                  (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 accompanying  unaudited interim financial  statements have been prepared
    in accordance with generally accepted accounting  principals and Form 10-QSB
    requirements.  Accordingly,  they do not include all of the  information and
    footnotes required by generally accepted accounting  principles for complete
    financial statements. In the opinion of management, the accompanying interim
    consolidated  financial  statements  contain all adjustments  (consisting of
    only normal  recurring  accruals)  necessary to present fairly the Company's
    financial  position as of December 31, 2000,  and its results of  operations
    for the three and six month  periods  ending  December 31, 2000 and its cash
    flows for the  six-month  period  ending  December 31, 2000.  The results of
    operations  for the interim  periods are not  necessarily  indicative of the
    results to be expected for the fiscal year. For further  information,  refer
    to the financial  statements  and related  footnotes for the year ended June
    30, 2000 included in the Company's annual report on Form 10-KSB.

    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 and short-term  deposits  integral to the
        company's cash management.

    b)  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.

    c)  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.



<PAGE>


                                                                 Exhibit "E"
                                ROYCE BIOMEDICAL INC.            Continued
                      Notes to Interim Financial Statements
                                   (unaudited)
                                December 31, 2000
                                  (US Dollars)



3.  Financial Instruments:

a)    Fair Values -

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

    b)  Liability Risk -

        The company does not have significant risk for the repayment of advances
        from a related party because under  agreements with other  shareholders,
        the related party has agreed not to demand repayment.

                                                December 31,     December 31,
4.  Product Licence Fees:                           2000           1999
                                                ----------       ---------

    Product licence fees, at cost                 $10,000        $10,000
    Less:  Accumulated amortization                10,000         10,000

                                                 $     --       $     --

5.  Loan Receivable to a Director:

    The company was a defendant in a lawsuit  that arose from the company  being
    enjoined  in a claim by the  plaintiff  against a director  of the  company.
    During the period,  the lawsuit  was  settled by the  director.  The company
    assisted the director in the settlement through a loan of $84,667.  The loan
    to the  director  is due April 9, 2002 and  bears  interest  at 7.5% for the
    period June 9, 2001 through to April 9, 2002.

                                                December 31,     December 31,
6.  Loan Payable to a Related Party:                2000             1999
                                                -----------      -----------

    Knight & Day Restaurants Ltd. - The
      loan payable has no specific
      repayment terms and is non-interest
      bearing.  (See Note 2(a)).                 $ 37,509        $ 37,509

7.  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



<PAGE>


                                                                Exhibit "E"
                                ROYCE BIOMEDICAL INC.           Continued
                        Notes to Interim Financial Statements
                                     (unaudited)
                                  December 31, 2000
                                    (US Dollars)


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

    Balance at June 30, 1999                 3,271,916   $14,019     $2,305,683
    Shares issued for services rendered         92,222       277         16,323
                                           -----------  ---------  ------------

    Balance at December 31, 1999 and 2000    3,364,138   $14,296     $2,322,006
                                             =========   =======     ==========


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

           Number of                 Exercise               Expiry
             Shares                    Price                 Date

             33,333                 $ 3.90               December 31, 2001
             83,333                 $ 0.30               December 31, 2001

At December 31, 2000,  176,666 (1999 - 183,333)  common  shares were  restricted
from trading.

7.  Share Capital: (Continued)

    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.

8.  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 five years,
    including  $34,251 in the current period and has an  accumulated  deficit of
    $2,433,250  at December 31, 2000.  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.


<PAGE>

                                                                 Exhibit "E"
                                ROYCE BIOMEDICAL INC.            Continued
                        Notes to Interim Financial Statements
                                     (unaudited)
                                  December 31, 2000
                                    (US Dollars)


    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.

9.  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 they were not, 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,
    2000,  these  amounts  have not been  repaid and are  included  in  accounts
    payable and accrued liabilities.

10. 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.

                                                 2000            1999
                                                 ----            ----
    Expenses
        Consulting fees                        $15,000       $  7,500
        Wages                                   15,000         12,650

    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"
                                ROYCE BIOMEDICAL INC.            Continued
                        Notes to Interim Financial Statements
                                     (unaudited)
                                  December 31, 2000
                                    (US Dollars)

11. Income Taxes:

    The company has net losses for income tax purposes  totalling  approximately
    $2,423,460 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:

                                                   2000             1999


    Deferred tax asset, beginning of year        $819,265        $767,550
    Benefit of current year's operating
       loss carried forward                        24,834          22,550
                                               -----------     -----------

    Deferred tax asset, end of year               844,099         790,100
                                                  -------         -------

    Valuation allowance, beginning of year        819,265         767,550
    Current year's provision                       24,834          22,550
                                                ---------       ---------

    Valuation allowance, end of year              844,099         790,100
                                                  -------         -------

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

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       70,955




<PAGE>


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

      In April 1999 the Company  signed an  agreement  with Xili  Pharmaceutical
Group,  Inc. ("Xili") of the People's Republic of China to market and distribute
H. Pylori  diagnostic  test kits supplied by the Company to Xili's  customers in
China.  In  addition  to  supplying  H.  Pylori  test kits to Xili,  the Company
provides clinical data and in-person training to Xili personnel.  At the present
time the  Company  purchases  medical  diagnostic  test  systems  from  American
manufacturers.

      In November 1999 Xili began distributing 20,000 sample H. Pylori test kits
supplied by the Company to 100 hospitals in China. The Company believes that the
hospital  will use a minimum of 30 kits per day. The Company  expects to receive
approximately  $ 2.60 (net of product and  distribution  costs) from the sale of
each H. Pylori  testing  kit.  Although the  Company's  goal is to sell at least
10,000 test kits to each hospital  during the twelve months ending  December 31,
2001,  during the six months  ending  December 31, 2000 the Company did not sell
any test kits.

      The Company will analyze the results of first year sales of H. Pylori test
kits. If sales results are encouraging,  the Company plans to assemble H. Pylori
test kit components in China to reduce costs. In this regard, Chembio Diagnostic
Systems Inc. has indicated a 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 their  pharmaceutical
manufacturing plants.

      The  Company  may also  attempt to acquire  the rights to  manufacture  H.
Pylori 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.

      Utilizing  marketing  research  conducted  by  Xili,  the  Company,  if it
believes suitable  opportunities  exists, will attempt to acquire the rights and
licenses necessary to distribute other types of diagnostic test kits in China.

      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 twelve  months  ending  December 31, 2001 the
Company  will  need  approximately  $4,000,000  in  additional  capital  for the
acquisition  of a  pharmaceutical  manufacturing  facility  that will  allow the
Company to manufacture H. Pylori test kits in China. In addition,  if during the
twelve months ending  December 31, 2001 the Company suffers  additional  losses,
the  Company  will  need to  obtain  additional  capital  in order  to  continue
operations.  There can be no assurance  that the Company will be  successful  in
obtaining additional funding.

<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, 2000.




<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 14, 2001          By   /s/ Kathy Jiang
                                      -------------------------------------
                                      Kathy Jiang
                                      President and Principal Financial Officer