UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

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

                 For the quarterly period ended July 31, 2008

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

      For the transition period from _________________ to _________________

                        Commission file number 333-141384


                           Aspen Racing Stables, Inc.
        (Exact name of small business issuer as specified in its charter)

            Nevada                                               98-0517550
  (State or other jurisdiction of                              (IRS Employer
   incorporation or organization)                            Identification No.)

                 243 Cranfield Green SE, Calgary Alberta T3M 1C4
                    (Address of principal executive offices)

                   (403) 370-1176 (Issuer's telephone number)


            Indicate  by check mark  whether the  registrant:  (1) has filed 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) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant is a large  accelerated  filed, an
accelerated filer, a non-accelerated  filer or a smaller reporting company.  See
the definitions of "large accelerated filer,"  "accelerated filer," and "smaller
reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filed [ ]        Accelerated filer [ ]
Non-accelerated filer [ ]          Smaller reporting company [X]


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

As of Sept. 9, 2008, registrant had outstanding 1,750,000 shares of common stock



<PAGE>

Item 1 - FINANCIAL STATEMENTS



Aspen Racing Stables Inc.
(A Development Stage Company)

July 31, 2008

                                                                           Index



Balance Sheets...............................................................F-1

Statements of Operations.....................................................F-2

Statements of Cash Flows.....................................................F-3

Notes to the Financial Statements............................................F-4



<PAGE>
<TABLE>
<CAPTION>

Aspen Racing Stables Inc.
(A Development Stage Company)
Balance Sheets
(Expressed in US dollars)


                                                                   July 31,      October 31,
                                                                     2008           2007
                                                                       $              $
                                                                  (Unaudited)
<S>                                                                <C>           <C>

ASSETS

Current Assets

  Cash                                                               45,493        189,361

  Investment in horses (Note 3)                                     110,000           --

  Prepaid expenses                                                    --              139
----------------------------------------------------------------------------------------------

Total Assets                                                       155,493        189,500
==============================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable and accrued liabilities                             8,654          8,632

Due to related party (Note 4(b))                                     3,684          3,684
----------------------------------------------------------------------------------------------
Total Liabilities                                                   12,338         12,316
----------------------------------------------------------------------------------------------
Commitments and Contingencies (Note 1)

Stockholders' Equity

Preferred Stock, 10,000,000 shares authorized, $0.001 par value
None issued and outstanding                                           --             --

Common Stock, 100,000,000 shares authorized, $0.001 par value
1,750,000 shares issued and outstanding (Note 6)                     1,750          1,750

Additional Paid-in Capital                                         303,250        303,250

Donated Capital (Note 4(a))                                         21,000         14,250

Deficit Accumulated During the Development Stage                  (182,845)      (142,066)
----------------------------------------------------------------------------------------------

Total Stockholders' Equity                                         143,155        177,184
----------------------------------------------------------------------------------------------

Total Liabilities and Stockholders' Equity                         155,493        189,500
==============================================================================================






  (The Accompanying Notes are an Integral Part of These Financial Statements)
                                       F-1

<PAGE>



Aspen Racing Stables Inc.
(A Development Stage Company)
Statements of Operations
(Expressed in US dollars)
(Unaudited)


                                           Accumulated from
                                            March 10, 2006       Three Months       Three Months        Nine Months     Nine Months
                                         (Date of Inception)        Ended               Ended              Ended           Ended
                                             to July 31,           July 31,           July 31,           July 31,        July 31,
                                                 2008                2008               2007               2008            2007
                                                  $                   $                   $                  $               $



Revenue                                        100,000                --               100,000                --         100,000

Cost of sales                                  100,929                --              (100,929)               --        (100,929)
------------------------------------------------------------------------------------------------------------------------------------
Gross Profit                                      (929)               --                  (929)               --            (929)
------------------------------------------------------------------------------------------------------------------------------------

Expenses

Donated rent (Note 4(a))                         7,000                 750                 750               2,250         2,250
Donated services (Note 4(a))                    14,000               1,500               1,500               4,500         4,500
General and administrative                       6,349                 605               3,734               1,062         4,379
Professional fees                               75,889               9,151              12,914              32,967        31,459
Stable fees                                      2,450                --                  --                  --            --
Write down on investments in horses             76,228                --                  --                  --          76,228
------------------------------------------------------------------------------------------------------------------------------------
Total Expenses                                 181,916              12,006              18,898              40,779       118,816
------------------------------------------------------------------------------------------------------------------------------------
Net Loss For the Period                       (182,845)            (12,006)            (19,827)            (40,779)     (119,745)
====================================================================================================================================

Net Loss Per Share - Basic and Diluted                               (0.01)              (0.01)              (0.02)        (0.08)
====================================================================================================================================

Weighted Average Shares Outstanding                              1,750,000           1,458,333           1,750,000     1,458,333
====================================================================================================================================



(The Accompanying Notes are an Integral Part of These Financial Statements)



                                      F-2
<PAGE>

Aspen Racing Stables Inc.
(A Development Stage Company)
Statements of Cash Flows
(Expressed in US dollars)
(Unaudited)


                                                    Accumulated From
                                                    March 10, 2006       Nine Months     Nine Months
                                                   (Date of Inception)      Ended           Ended
                                                       to July 31,         July 31,       July 31,
                                                          2008               2008           2007
                                                            $                 $               $



Operating Activities

 Net loss for the period                                (182,845)         (40,779)        (119,745)

   Adjustments to reconcile net loss to net cash
   used in operating activities:

     Cost of sales                                          --               --            100,929
     Donated rent                                          7,000            2,250            2,250
     Donated services                                     14,000            4,500            4,500
     Write-off of investment in horses                    76,228             --             76,228

Changes in operating assets and liabilities:

    Prepaid expenses                                        --                139             (139)
    Accounts payable                                       8,654               22          (11,365)
-------------------------------------------------------------------------------------------------------
Net Cash Flows Used In Operating Activities              (76,963)         (33,868)         (52,658)
=======================================================================================================
Investing Activities

      Expenditures on investment in horses              (286,228)        (110,000)         (58,549)
      Proceeds from the sale of horses                   100,000             --               --
-------------------------------------------------------------------------------------------------------
Net Cash Flows Used in Investing Activities             (186,228)        (110,000)         (58,549)
-------------------------------------------------------------------------------------------------------
Financing Activities

Advances from a related party                            197,103             --             96,903
Repayment to a related party                            (193,419)            --               --
Proceeds from issuance of common stock                   300,000             --              5,000
Proceeds from stock subscriptions                          5,000             --               --
-------------------------------------------------------------------------------------------------------
Net Cash Flows Provided By Financing Activities          308,684             --            101,903
=======================================================================================================
Increase (Decrease) in Cash                               45,493         (143,868)          96,012

Cash - Beginning of Period                                  --            189,361               47
-------------------------------------------------------------------------------------------------------
Cash - End of Period                                      45,493           45,493           96,059
=======================================================================================================
Supplemental Disclosures
Interest paid                                               --               --               --
Income taxes paid                                           --               --               --
=======================================================================================================
</TABLE>


  (The Accompanying Notes are an Integral Part of These Financial Statements)



                                      F-3
<PAGE>

Aspen Racing Stables Inc.
(A Development Stage Company)
Notes to the Financial Statements
(Expressed in US dollars)
(Unaudited)


1.   Development Stage Company

     Aspen Racing Stables Inc. (the "Company") was  incorporated in the State of
     Nevada on March 10, 2006. The Company is a Development  Stage  Company,  as
     defined  by  Statement  of  Financial  Accounting  Standard  ("SFAS")  No.7
     "Accounting and Reporting by Development Stage Enterprises".  The Company's
     principal  business  is the  purchase,  breeding,  training,  and resale of
     horses. During the year ended October 31, 2006, the Company purchased seven
     foals and  commenced  breeding and training of the foals with the intention
     of reselling the horses as yearlings. On May 25, 2007, the Company sold the
     horses.  During the nine month  period  ended July 31,  2008,  the  Company
     purchased one foal and commenced breeding and training of the foal with the
     intention of reselling the horse as a yearling.

     These  financial  statements  have been prepared on a going concern  basis,
     which implies the Company will continue to realize its assets and discharge
     its liabilities in the normal course of business.  The  continuation of the
     Company  as a going  concern  is  dependent  upon the  continued  financial
     support  from its  shareholders,  the  ability  of the  Company  to  obtain
     necessary  equity financing to continue  operations,  and the attainment of
     profitable  operations.  As at July 31, 2008,  the Company has  accumulated
     losses of $182,845 since inception.  These factors raise  substantial doubt
     regarding  the  Company's  ability to  continue as a going  concern.  These
     financial  statements do not include any adjustments to the  recoverability
     and   classification  of  recorded  asset  amounts  and  classification  of
     liabilities  that  might be  necessary  should  the  Company  be  unable to
     continue as a going concern.

     On March 16, 2007,  the Company filed an SB-2  Registration  Statement with
     the United  States  Securities  and Exchange  Commission  that was declared
     effective on June 12, 2007, to issue 291,667 post  reverse-split  shares of
     common stock at $1.03 per share for gross proceeds of $300,000.

     In August 2007,  the Company issued  291,667 post  reverse-split  shares of
     common  stock,  pursuant to the SB-2,  for cash  proceeds of $300,000.  The
     proceeds  were used to repay the initial cash  financing  of the  Company's
     operations  and  outstanding  amounts  owing to  creditors.  The  remaining
     proceeds will be used to purchase additional horses and for working capital
     purposes.


2.   Summary of Significant Accounting Policies

a)       Basis of Presentation

         These financial  statements and related notes have been prepared by the
         Company in accordance with accounting  principles generally accepted in
         the United  States,  and are  expressed  in US dollars.  The  Company's
         fiscal year-end is October 31.
b)       Interim Financial Statements

         The  interim  unaudited  financial  statements  have been  prepared  in
         accordance with accounting  principles generally accepted in the United
         States for interim financial  information and with the instructions for
         Securities  and Exchange  Commission  ("SEC") Form 10-QSB.  They do not
         include all of the  information  and  footnotes  required by  generally
         accepted  accounting  principles  for  complete  financial  statements.
         Therefore,  these  financial  statements  should be read in conjunction
         with the Company's audited  financial  statements and notes thereto for
         the year ended October 31, 2007,  included in the Company's  Form 10KSB
         filed on February 15, 2008 with the SEC.

         The financial statements included herein are unaudited;  however,  they
         contain all normal  recurring  accruals and  adjustments  that,  in the
         opinion of  management,  are necessary to present  fairly the Company's
         financial  position at July 31, 2008, and the results of its operations
         and cash flows for the nine months  ended July 31,  2008 and 2007.  The
         results of  operations  for the nine months ended July 31, 2008 are not
         necessarily  indicative  of  the  results  to be  expected  for  future
         quarters or the full year.



                                      F-4
<PAGE>

Aspen Racing Stables Inc.
(A Development Stage Company)
Notes to the Financial Statements
(Expressed in US dollars)
(Unaudited)


2. Summary of Significant Accounting Policies (Continued) c) Use of Estimates

         The  preparation  of  financial  statements  in  conformity  with  U.S.
         generally accepted  accounting  principles  requires management to make
         estimates and  assumptions  that affect the reported  amounts 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.  The Company regularly evaluates estimates
         and assumptions related to useful life and recoverability of investment
         in horses,  donated expenses, and deferred income tax asset valuations.
         The Company  bases its  estimates  and  assumptions  on current  facts,
         historical  experience and various other factors that it believes to be
         reasonable under the circumstances, the results of which form the basis
         for  making   judgments   about  the  carrying  values  of  assets  and
         liabilities  and the accrual of costs and expenses that are not readily
         apparent from other  sources.  The actual  results  experienced  by the
         Company  may  differ   materially  and  adversely  from  the  Company's
         estimates.  To the extent  there are material  differences  between the
         estimates and the actual results,  future results of operations will be
         affected.

d) Basic and Diluted Net Income (Loss) Per Share

         The Company  computes net income  (loss) per share in  accordance  with
         SFAS No. 128, "Earnings per Share". SFAS No. 128 requires  presentation
         of both basic and diluted  earnings  per share (EPS) on the face of the
         income  statement.  Basic EPS is computed by dividing net income (loss)
         available to common  shareholders  (numerator) by the weighted  average
         number of shares outstanding  (denominator) during the period.  Diluted
         EPS gives effect to all dilutive  potential  common shares  outstanding
         during the  period  using the  treasury  stock  method and  convertible
         preferred stock using the  if-converted  method.  In computing  Diluted
         EPS, the average stock price for the period is used in determining  the
         number of shares  assumed to be  purchased  from the  exercise of stock
         options or warrants. Diluted EPS excludes all dilutive potential shares
         if their effect is anti  dilutive.  As at July 31, 2008, and 2007 there
         are no dilutive potential common shares.

e)       Comprehensive Loss

         SFAS No. 130, "Reporting  Comprehensive  Income," establishes standards
         for the reporting and display of comprehensive  loss and its components
         in the financial statements.  As at July 31, 2008 and 2007, the Company
         has no items that represent a comprehensive  loss and,  therefore,  has
         not  included  a  schedule  of  comprehensive  loss  in  the  financial
         statements.

f)       Cash and Cash Equivalents

         The Company  considers all highly liquid  instruments  with maturity of
         three months or less at the time of issuance to be cash equivalents.

g) Investment in Horses

         The value of the horses include all direct  acquisition  costs incurred
         and are  recorded  at the  lower  of  cost or  market  until  they  are
         available for sale.  As the Company  purchases the horses as foals with
         the  intention  of  breeding,  training,  and  selling  the  horses  as
         yearlings  (one-year  olds), all costs associated with the acquisition,
         breeding,  and training of the horses are capitalized.  During the nine
         month period ended July 31, 2008,  the Company  purchased  one foal for
         $110,000.

h)       Financial Instruments

         Financial instruments, which include cash, accounts payable and accrued
         liabilities,  and amounts due to a related  party,  were  estimated  to
         approximate  their  carrying  values due to the immediate or short-term
         maturity of these financial  instruments.  The Company's operations are
         in Canada  which  results in exposure to market  risks from  changes in
         foreign currency rates. The financial risk is the risk to the Company's
         operations that arise from  fluctuations in foreign  exchange rates and
         the degree of  volatility of these rates.  Currently,  the Company does
         not use  derivative  instruments  to reduce  its  exposure  to  foreign
         currency risk.



                                      F-5
<PAGE>

Aspen Racing Stables Inc.
(A Development Stage Company)
Notes to the Financial Statements
(Expressed in US dollars)
(Unaudited)


2. Summary of Significant Accounting Policies (continued)

 i) Income Taxes

         Potential  benefits  of income  tax losses  are not  recognized  in the
         accounts  until  realization  is more likely than not.  The Company has
         adopted SFAS No. 109 "Accounting for Income Taxes" as of its inception.
         Pursuant  to SFAS No. 109 the  Company is required to compute tax asset
         benefits for net operating losses carried forward. Potential benefit of
         net  operating  losses  have not  been  recognized  in these  financial
         statements because the Company cannot be assured it is more likely than
         not it will utilize the net operating  losses carried forward in future
         years.

j)       Foreign Currency Translation

         The Company's  functional  and reporting  currency is the United States
         dollar.   Monetary  assets  and  liabilities   denominated  in  foreign
         currencies  are  translated  in  accordance  with SFAS No. 52  "Foreign
         Currency  Translation",  using  the  exchange  rate  prevailing  at the
         balance sheet date.  Gains and losses  arising on settlement of foreign
         currency  denominated  transactions  or  balances  are  included in the
         determination of income.  Foreign  currency  transactions are primarily
         undertaken  in  Canadian  dollars.  The Company has not, to the date of
         these  financials  statements,  entered into derivative  instruments to
         offset the impact of foreign currency fluctuations.
k)       Revenue Recognition

         The  Company  recognizes  revenue  from  the sale of  it's'  horses  in
         accordance with Securities and Exchange  Commission  Staff Bulletin No.
         104,  "Revenue  Recognition  in  Financial   Statements".   Revenue  is
         recognized  only  when the price is fixed or  determinable,  persuasive
         evidence  of an  arrangement  exists,  the  horses  are  available  for
         immediate delivery, and collectability is assured. On May 25, 2007, the
         Company  disposed of its entire  purchased  horse  inventory  for total
         revenue of $100,000.

l)       Recently Issued Accounting Pronouncements

         In May 2008, the Financial  Accounting  Standards Board ("FASB") issued
         SFAS No. 163, "Accounting for Financial Guarantee Insurance Contracts -
         An  interpretation of FASB Statement No. 60". SFAS 163 requires that an
         insurance  enterprise  recognize a claim liability prior to an event of
         default when there is evidence that credit  deterioration  has occurred
         in an insured financial obligation.  It also clarifies how Statement 60
         applies to  financial  guarantee  insurance  contracts,  including  the
         recognition  and  measurement to be used to account for premium revenue
         and  claim  liabilities,   and  requires  expanded   disclosures  about
         financial guarantee insurance contracts.  It is effective for financial
         statements  issued for fiscal years  beginning after December 15, 2008,
         except  for  some   disclosures   about  the   insurance   enterprise's
         risk-management  activities.  SFAS 163 requires that disclosures  about
         the risk-management activities of the insurance enterprise be effective
         for the  first  period  beginning  after  issuance.  Except  for  those
         disclosures, earlier application is not permitted. The adoption of this
         statement  is not expected to have a material  effect on the  Company's
         financial statements.

         In May 2008,  the FASB issued SFAS No. 162, "The Hierarchy of Generally
         Accepted  Accounting  Principles".  SFAS 162  identifies the sources of
         accounting principles and the framework for selecting the principles to
         be used in the preparation of financial  statements of  nongovernmental
         entities  that are  presented in  conformity  with  generally  accepted
         accounting  principles  in the United  States.  It is effective 60 days
         following the SEC's approval of the Public Company Accounting Oversight
         Board  amendments to AU Section 411, "The Meaning of Present  Fairly in
         Conformity With Generally Accepted Accounting Principles". The adoption
         of this  statement  is not  expected  to have a material  effect on the
         Company's financial statements.



                                       F-6
<PAGE>


         In  March  2008,  the FASB  issued  SFAS No.  161,  "Disclosures  about
         Derivative  Instruments  and Hedging  Activities - an amendment to FASB
         Statement  No.  133".  SFAS No. 161 is  intended  to improve  financial
         standards  for  derivative   instruments  and  hedging   activities  by
         requiring enhanced disclosures to enable investors to better understand
         their effects on an entity's financial position, financial performance,
         and cash flows.  Entities are required to provide enhanced  disclosures
         about: (a) how and why an entity uses derivative  instruments;  (b) how
         derivative instruments and related hedged items are accounted for under
         Statement 133 and its related  interpretations;  and (c) how derivative
         instruments  and related  hedged  items  affect an  entity's  financial
         position,  financial  performance,  and cash flows. It is effective for
         financial  statements  issued for fiscal years beginning after November
         15,  2008,  with  early  adoption  encouraged.  The  adoption  of  this
         statement  is not expected to have a material  effect on the  Company's
         financial statements.




















                                      F-7
<PAGE>

Aspen Racing Stables Inc.
(A Development Stage Company)
Notes to the Financial Statements
(Expressed in US dollars)
(Unaudited)

2. Summary of Significant  Accounting  Policies  (continued) l) Recently  Issued
   Accounting Pronouncements (continued)

         December 2007, the FASB issued SFAS No. 141R, "Business  Combinations".
         This statement replaces SFAS 141 and defines the acquirer in a business
         combination  as  the  entity  that  obtains  control  of  one  or  more
         businesses in a business  combination  and  establishes the acquisition
         date as the date that the acquirer achieves control. SFAS 141R requires
         an acquirer to recognize the assets acquired,  the liabilities assumed,
         and any  noncontrolling  interest in the  acquiree  at the  acquisition
         date,  measured  at their fair  values as of that date.  SFAS 141R also
         requires  the  acquirer to recognize  contingent  consideration  at the
         acquisition  date,  measured  at its  fair  value  at that  date.  This
         statement is effective for fiscal  years,  and interim  periods  within
         those fiscal years, beginning on or after December 15, 2008 and earlier
         adoption is prohibited.  The adoption of this statement is not expected
         to have a material effect on the Company's financial statements.

         In  December  2007,  the  FASB  issued  SFAS No.  160,  "Noncontrolling
         Interests  in  Consolidated   Financial   Statements   Liabilities  -an
         Amendment  of ARB No. 51".  This  statement  amends ARB 51 to establish
         accounting and reporting standards for the Noncontrolling interest in a
         subsidiary and for the deconsolidation of a subsidiary.  This statement
         is effective for fiscal years,  and interim periods within those fiscal
         years,  beginning on or after December 15, 2008 and earlier adoption is
         prohibited.  The  adoption of this  statement is not expected to have a
         material effect on the Company's financial statements.

         In February  2007, the FASB issued SFAS No. 159, "The Fair Value Option
         for Financial Assets and Financial Liabilities - Including an Amendment
         of FASB Statement No. 115". This statement  permits  entities to choose
         to measure many financial  instruments  and certain other items at fair
         value.  Most of the  provisions  of SFAS No. 159 apply only to entities
         that elect the fair value  option.  However,  the amendment to SFAS No.
         115 "Accounting for Certain  Investments in Debt and Equity Securities"
         applies to all entities with available-for-sale and trading securities.
         SFAS No. 159 is  effective  as of the  beginning  of an entity's  first
         fiscal year that begins  after  November 15,  2007.  Early  adoption is
         permitted as of the beginning of a fiscal year that begins on or before
         November  15,  2007,  provided  the  entity  also  elects  to apply the
         provision of SFAS No. 157, "Fair Value  Measurements".  The adoption of
         this  statement  is not  expected  to  have a  material  effect  on the
         Company's financial statements.

m)       Reclassification

         Certain items within the financial  statements  have been  reclassified
         for presentation purposes.


3.   Investment in Horses

     During the nine month  period  ended July 31,  2008,  the Company  incurred
     $110,000 (2007 - $nil) of direct  acquisition  and $nil (2007 - $58,549) of
     indirect development costs related to breeding and training of one horse.


4.   Related Party Transactions

     a)   During  the nine  month  period  ended  July  31,  2008,  the  Company
          recognized  a total of $2,250  (2007 - $2,250) of donated rent at $250
          per month and $4,500 (2007 - $4,500) of donated management services at
          $500 per month provided by the President of the Company.

     b)   As at July 31,  2008,  the  Company  owes $3,684  (October  31, 2007 -
          $3,684)  for  shareholder  advances.  These  advances  are  unsecured,
          non-interest bearing, and are due on demand.


5.   Commitment

     The Company entered into a Management Agreement dated March 7, 2008, with a
     manager who will provide certain services related to the purchase, training
     and managing race horses to be acquired for a term of eighteen months.  The
     Manager will pay all expenses incurred in conjunction with the horse racing
     operations,  and will receive 50% of all net revenues from the horse racing
     operations.



                                      F-8
<PAGE>

Aspen Racing Stables Inc.
(A Development Stage Company)
Notes to the Financial Statements
(Expressed in US dollars)
(Unaudited)

6.   Subsequent Events

     a)   On August 15, 2008, the Company sold its horse for $110,000.

     b)   On  August  21,  2008,  the  Company  entered  into a  Stock  Purchase
          Agreement  with KUN RUN  Biotechnology  LTD.  ("KUN RUN"), a Hong Kong
          corporation  and its  principal  shareholder,  pursuant  to which  the
          Company will acquire all of the outstanding  capital stock of KUN RUN.
          The terms of the  agreement  include the  Company  effecting a reverse
          stock-split  in which one new share  will be issued  for each  3.42857
          shares  outstanding.  In consideration for the transfer to the Company
          of 100% of the issued and  outstanding  shares of KUN RUN, the Company
          will issue  24,250,000  post reverse split shares of common stock,  of
          which  1,000,000  post reverse split shares will be placed into escrow
          pending the results of KUN RUN for the year ending  December 31, 2008.
          KUN  RUN  is  the  99.12%  parent   corporation   of  Hainan   Zhonghe
          Pharmaceuticals Co., Ltd., which produces  pharmaceutical  products in
          Hainan,   People's   Republic  of  China.   Closing  will  occur  upon
          satisfaction of the conditions set forth in the Agreement.

     c)   On September 8, 2008,  the Company  effected a reverse  stock-split of
          the issued  and  outstanding  common  stock in which one new share was
          issued for each 3.42857 shares  outstanding.  As a result,  the issued
          and  outstanding  share capital  decreased  from  6,000,000  shares of
          common stock to 1,750,000  shares of common  stock.  All share amounts
          have been retroactively adjusted for all periods presented.












                                      F-9
<PAGE>


Item 2. Management's Discussion and Analysis and Plan of Operations


This Item 2 and the July 31,  2008  Quarterly  Report  on Form 10-Q may  contain
"forward-looking  statements." In some cases,  you can identify  forward-looking
statements by terminology such as "may," "will," "should,"  "could,"  "expects,"
"plans,"  "intends,"   "anticipates,"   "believes,"   "estimates,"   "predicts,"
"potential"  or  "continue"  or the negative of such terms and other  comparable
terminology.  These  forward-looking  statements  include,  without  limitation,
statements about our market opportunity, our strategies,  competition,  expected
activities and  expenditures as we pursue our business plan, and the adequacy of
our  available  cash  resources.  Although  we  believe  that  the  expectations
reflected in any forward-looking  statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.  Actual results
may differ  materially from the predictions  discussed in these  forward-looking
statements.  Changes in the  circumstances  upon  which we base our  predictions
and/or forward-looking statements could materially affect our actual results.

We do not  undertake  any  obligation  to  publicly  update any  forward-looking
statement, whether as a result of new information,  future events, or otherwise,
except as required by law.  Such  forward-looking  statements  involve known and
unknown  risks,  uncertainties  and other  factors  which  may cause our  actual
results or  achievements  to be materially  different from any future results or
achievements  expressed  or implied  by such  forward-looking  statements.  Such
factors include the factors  described in our audited  financial  statements and
elsewhere in the Company's  annual audited  financial  statements for the period
ended  October 31, 2007 included in our Annual Report for the year ended October
31, 2007.

Further,  in connection  with,  and because we desire to take  advantage of, the
"safe harbor"  provisions  of the Private  Securities  Litigation  Reform Act of
1995, we caution readers  regarding  certain  forward looking  statements in the
following  discussion  and  elsewhere in this report and in any other  statement
made by, or on our behalf,  whether or not in future filings with the Securities
and Exchange Commission.  Forward looking statements are statements not based on
historical  information  and  which  relate to  future  operations,  strategies,
financial  results  or  other  developments.   Forward  looking  statements  are
necessarily based upon estimates and assumptions that are inherently  subject to
significant business,  economic and competitive uncertainties and contingencies,
many of which are beyond our control and many of which,  with  respect to future
business decisions, are subject to change. These uncertainties and contingencies
can affect actual  results and could cause actual  results to differ  materially
from  those  expressed  in any  forward  looking  statements  made by, or on our
behalf.

The following  should be read in conjunction  with our annual audited  financial
statements included in our Annual Report for the year ended October 31, 2007.

General

     The Company's  principal business is the purchase,  breeding,  training and
resale  of  thoroughbred  race  horses.  As of July 31,  2008 we have  generated
$100,000 in revenues from the sale of our horses.

Three Months Ended July 31, 2008 Compared to 2007.

     Revenues.  We have  generated zero revenues for the three months ended July
31, 2008, versus $100,000 in revenues for the same period in 2007.

     Expenses.  During the three-months ended July 31, 2008, we incurred $12,006
of expenses, consisting mainly of $9,151 for professional (legal and accounting)
fees.  For the  comparable  period in 2007,  our  total  expenses  were  $18,898
consisting mainly of $12,914 for professional (legal and accounting) fees.

     Net Loss. For the three months ended July 31, 2008 our net loss was $12,006
or ($0.01) per share compared to $19,827 or ($0.01) per share for the comparable
period in 2007.

Nine Months ended July 31, 2008 compared to 2007.

Revenues.  We have  generated  zero  revenues for the nine months ended July 31,
2008, versus $100,000 in revenues for the same period in 2007.

     Expenses.  During the nine months ended July 31, 2008, we incurred  $40,779
of expenses, consisting mainly of $32,967 of professional (legal and accounting)
fees.  For the  comparable  period in 2007,  our total  expenses  were  $118,816
consisting  mainly of $76,228 for write down on investment in horses and $31,459
of professional (legal and accounting) fees.

     Net Loss.  For the nine months ended July 31, 2008 our net loss was $40,779
or  ($0.02)  per  share  compared  to  $119,745  or  ($0.08)  per  share for the
comparable period in 2007.



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<PAGE>


Subsequent Events


     a)   On August 15, 2008, the Company sold its horse for $110,000.

     b)   On  August  21,  2008,  the  Company  entered  into a  Stock  Purchase
          Agreement  with KUN RUN  Biotechnology  LTD.  ("KUN RUN"), a Hong Kong
          corporation  and its  principal  shareholder,  pursuant  to which  the
          Company will acquire all of the outstanding  capital stock of KUN RUN.
          The terms of the  agreement  include the  Company  effecting a reverse
          stock-split  in which one new share  will be issued  for each  3.42857
          shares  outstanding.  In consideration for the transfer to the Company
          of 100% of the issued and  outstanding  shares of KUN RUN, the Company
          will issue  24,250,000  post reverse split shares of common stock,  of
          which  1,000,000  post reverse split shares will be placed into escrow
          pending the results of KUN RUN for the year ending  December 31, 2008.
          KUN  RUN  is  the  99.12%  parent   corporation   of  Hainan   Zhonghe
          Pharmaceuticals Co., Ltd., which produces  pharmaceutical  products in
          Hainan,   People's   Republic  of  China.   Closing  will  occur  upon
          satisfaction of the conditions set forth in the Agreement.

     c)   On September 8, 2008,  the Company  effected a reverse  stock-split of
          the issued  and  outstanding  common  stock in which one new share was
          issued for each 3.42857 shares  outstanding.  As a result,  the issued
          and  outstanding  share capital  decreased  from  6,000,000  shares of
          common stock to 1,750,000  shares of common  stock.  All share amounts
          have been retroactively adjusted for all periods presented.

Proceeds From Initial Public Offering

     The initial public offering of the Company's  Common Stock closed on August
24, 2007, and has resulted in the sale of 1,000,000  shares at $0.30 per shares,
for gross proceeds of $300,000. The proceeds were used to repay the initial cash
financing  of  the  Company's   operations  and  outstanding  amounts  owing  to
creditors. The remaining proceeds will be used to purchase additional horses.

     We will incur  continued  reporting costs to the SEC, and proceeds from the
offering  will be used as  required  to pay for the legal and  accounting  costs
related to the filings. These are estimated to be $18,000 for our current fiscal
year and will be paid for from cash on hand.

Liquidity

     As of July 31 2008,  our cash balance was $45,493.  We did not generate any
revenues for the three  months  ended July 31, 2008.  All of our cash needs have
been met from cash on hand.  On August 15,  2008,  the Company sold it horse for
$110,000.

     With the completion of our initial public  offering,  we believe that, even
though our  auditors  have  expressed  substantial  doubt  about our  ability to
continue as a going concern, we will have sufficient financial resources to meet
our obligations for at least the next twelve months and beyond. Assuming that we
do not  increase  our current  capacity to provide  services,  our primary  cash
requirements   would  be  those  associated  with  maintaining  our  horses  and
maintaining our status as a reporting entity. We believe that on an annual basis
those costs would not exceed $100,000.  Based on this belief, we believe we will
have  adequate  financial  resources  to meet our  financial  obligations  as we
currently conduct business for at least 12 months.

Item 3.  Quantitative and Qualitative  Disclosures  about Market Risk. We do not
use derivative financial  instruments.  Our financial instruments consis of cash
and cash  equivalents,  accounts  receivable and accounts  payable.  Investme in
highly liquid instruments purchased with a remaining maturity of 90 days or less
at the date of purchase  are  considered  to be cash  equivalents.  The Company'
functional and reporting  currency is the United States dollar.  Monetary assets
and liabilities  denominated in foreign  currencies are translated in accordance
with  SFAS No. 52  "Foreign  Currency  Translation",  using  the  exchange  rate
prevailing at the balance sheet date.  Gains and losses arising on settlement of
foreign  currency  denominated  transactions  or  balances  are  included in the
determination of income.  Foreign currency transactions are primarily undertaken
in  Canadian  dollars.  The  Company  has not,  to the date of these  financials
statements,  entered into derivative instruments to offset the impact of foreign
currency fluctuations.



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<PAGE>

Item 4T. Controls and Procedures

     (a)  Evaluation of Disclosure Controls and Procedures

Ms.  Trixy  Sasnyiuk-Walt  , Aspen  Racing  Stables,  Inc.  President  and Chief
Executive  Officer,  evaluated the  effectiveness of the design and operation of
its  disclosure  controls  and  procedures  as  defined  in  Exchange  Act  Rule
13a-15(e).  The term  "disclosure  controls and procedures," as defined in Rules
13a-15(e) and 15d-15(e)  under the Securities  Exchange Act of 1934, as amended,
(the  Exchange  Act) means  controls and other  procedures of a company that are
designed to ensure that this information is recorded, processed, summarized, and
reported  within  the time  periods  specified  in the SEC's  rules  and  forms.
Disclosure  controls and procedures include controls and procedures  designed to
ensure that  information  required to be  disclosed  by a company in the reports
that it files or submits under the Exchange Act is accumulated and  communicated
to the company's  management,  including  its principal  executive and principal
financial officers,  as appropriate to allow timely decisions regarding required
disclosure. Based upon his evaluation of its disclosure controls and procedures,
Aspen Racing Stables'  President and chief executive officer has concluded that,
as of July 31, 2008 and as of the date of filing,  the controls,  and procedures
were effective at a reasonable  assurance  level and will continue to operate as
designed.

Aspen Racing Stables,  Inc.  maintains  certain internal controls over financial
reporting that are appropriate,  consistent with cost-benefit considerations, to
provide reasonable  assurance  regarding the reliability of financial  reporting
and the preparation of financial  statements for external purposes in accordance
with generally accepted accounting principles.

     (b)  Management's Report on Internal Control over Financial Reporting

         Our management is responsible for establishing and maintaining adequate
internal  control over financial  reporting (as defined in Rule 13a-15(f)  under
the Exchange  Act). Our management  assessed the  effectiveness  of our internal
control  over  financial  reporting  as  of  April  30,  2008.  In  making  this
assessment,  our  management  used the  criteria  set forth by the  Committee of
Sponsoring    Organizations    of   the   Treadway    Commission   in   Internal
Control-Integrated  Framework. Our management has concluded that, as of July 31,
2008, our internal control over financial  reporting is effective based on these
criteria.  This  annual  report does not  include an  attestation  report of our
registered  public  accounting  firm regarding  internal  control over financial
reporting. Management's report was not subject to attestation by our registered

public  accounting firm pursuant to temporary rules of the SEC that permit us to
provide only management's report in this annual report.

     (c)  Changes in Internal Control over Financial Reporting

There were no changes in the company's internal control over financial reporting
that  occurred  during the period  covered by this  quarterly  report  that have
materially  affected,  or  are  reasonably  likely  to  materially  affect,  the
company's internal control over financial reporting.



                                       4
<PAGE>


                          PART II -- OTHER INFORMATION



Item 1. Legal Proceedings

          None.



Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

         None.



Item 3. Defaults Upon Senior Securities

         None.



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

         None.



Item 5. Other Information

         None.



Item 6. Exhibits.


         31.1       Certification  by CEO/CFO pursuant to 18 USC Section 1350 as
                    adopted by Section 302 of the Sarbanes-Oxley Act of 2002.

         32.1       Certification  by CEO/CFO pursuant to 18 USC Section 1350 as
                    adopted by Section 906 of the Sarbanes-Oxley Act of 2002.



                                   SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

     Date: Sept. 12, 2008

                                                  ASPEN RACING STABLES, INC.



                                                  By: /s/ Trixy Sasnyiuk-Walt
                                                      --------------------------
                                                      President







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