|                                               |                                                                                               |
|----------------------------------------------------|----------------------------------------------------------------------------------------------------|
| þ                                             | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934  |
|                                               |                                                                                               |
| For      the quarterly period ended March 31, 2008 |
|                                               |
| OR                                                 |
|                                               |                                                                                               |
| o                                                  | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |

|                                                                    |   |                                          |
|-------------------------------------------------------------------------|--------|-----------------------------------------------|
| Nevada                                                                  |   | 26-0162321                                    |
| (State      or other jurisdiction ofincorporation      or organization) |   | (I.R.S.      EmployerIdentification      No.) |
|  c/o American Union      Securities, Inc.                          |   |                                          |
| 100      Wall Street 15th      Floor                                    |   |                                          |
| New      York, NY                                                       |   | 10005                                         |
| (Address      of principal executive offices)                           |   | (Zip      Code)                               |

|                                                                   |                                               |   |                                                               |
|------------------------------------------------------------------------|----------------------------------------------------|--------|--------------------------------------------------------------------|
| Large      accelerated filer      o           |                                               |   | Accelerated      filer     o              |
|                                                                   |                                               |   |                                                               |
| Non-accelerated      filer        o | (Do      not check if a smaller reporting company) |   | Smaller      reporting company     þ |

----

| CHINA      DASHENG BIOTECHNOLOGY COMPANY AND SUBSIDIARIES            |
|----------------------------------------------------------------------|
| CONSOLIDATED      BALANCE SHEETS                                     |
|                                                                 |   |   |   |   |   |
|                                                                 |   |   |   |   |   |
|                                                                 |   |   |   |   |   |
|                                                                 | March      31, 2008 |   |        June      30, 2007 |
|                                                                 | (Unaudited) |   |   |   |
|  ASSETS                                                         |   |   |   |   |   |
|  CURRENT      ASSETS:                                           |   |   |   |   |   |
|  Cash                                                           | $ |     3,340,487 |   | $ |          1,316,569 |
|  Accounts      receivable, net                                  |   |     4,076,600 |   |   |          3,180,325 |
|  Inventories                                                    |   |        717,458 |   |   |             833,436 |
|  Due      from related parties                                  |   |     3,705,655 |   |   |          3,149,966 |
|  Prepayments      and other current assets                      |   |     1,513,276 |   |   |          2,425,593 |
|                                                                 |   |   |   |   |   |
|  Total      Current Assets                                      |   |   13,353,476 |   |   |        10,905,889 |
|                                                                 |   |   |   |   |   |
|  REAL      ESTATE                                               |   |     1,350,620 |   |   |          1,244,160 |
|                                                                 |   |   |   |   |   |
|  PROPERTY,      PLANT AND EQUIPMENT, net                        |   |     1,670,224 |   |   |          1,730,439 |
|                                                                 |   |   |   |   |   |
|  PATENT      AND PURCHASED FORMULAE, net                        |   |          14,261 |   |   |               64,454 |
|                                                                 |   |   |   |   |   |
|  LAND      USE RIGHT, net                                       |   |     1,514,958 |   |   |          1,446,059 |
|                                                                 |   |   |   |   |   |
| Total      Assets                                                    | $ |   17,903,539 |   | $ |        15,391,001 |
|                                                                 |   |   |   |   |   |
|  LIABILITIES      AND STOCKHOLDERS' EQUITY                      |   |   |   |   |   |
|  CURRENT      LIABILITIES:                                      |   |   |   |   |   |
|  Accounts      payable                                          | $ |        835,556 |   | $ |             953,033 |
|  Accrued      expenses and other current liabilities            |   |        890,535 |   |   |          1,544,128 |
|                                                                 |   |   |   |   |   |
|  Total      Current Liabilities                                 |   |     1,726,091 |   |   |          2,497,161 |
|                                                                 |   |   |   |   |   |
|  LONG-TERM      PAYABLE, LAND USE RIGHT                         |   |     1,427,320 |   |   |          1,314,814 |
|                                                                 |   |   |   |   |   |
|  LONG-TERM      DEBT                                            |   |                    - |   |   |          1,103,521 |
|                                                                 |   |   |   |   |   |
|  MINORITY      INTEREST                                         |   |     1,949,601 |   |   |          1,342,504 |
|                                                                 |   |   |   |   |   |
| Total      Liabilities                                               |   |     5,103,012 |   |   |          6,258,000 |
|                                                                 |   |   |   |   |   |
|  COMMITMENTS      AND CONTINGENCIES                             |   |   |   |   |   |
|                                                                 |   |   |   |   |   |
|  STOCKHOLDERS'      EQUITY:                                     |   |   |   |   |   |
| Preferred      stock, $0.001 par value, 1,000,000 shares authorized, |
|  none      issued or outstanding                                |   |                    - |   |   |                         - |
| Common      stock, $0.001 par value, 74,000,000 shares authorized,   |
|  30,000,000      shares issued and outstanding                  |   |          30,000 |   |   |               30,000 |
|  Additional      paid-in capital                                |   |     4,023,522 |   |   |          4,023,522 |
|  Statutory      reserves                                        |   |     1,866,885 |   |   |          1,049,826 |
|  Retained      earnings                                         |   |     5,151,250 |   |   |          3,371,464 |
|  Accumulated      other comprehensive income:                   |   |   |   |   |   |
|  Foreign      currency translation gain                         |   |     1,728,870 |   |   |             658,189 |
|                                                                 |   |   |   |   |   |
| Total      Stockholders' Equity                                      |   |   12,800,527 |   |   |          9,133,001 |
|                                                                 |   |   |   |   |   |
| Total      Liabilities and Stockholders' Equity                      | $ |   17,903,539 |   | $ |        15,391,001 |
|                                                                 |   |   |   |   |   |

| See      accompanying notes to the Consolidated Financial    Statements. |
|--------------------------------------------------------------------------|

----

| CHINA      DASHENG BIOTECHNOLOGY COMPANY AND SUBSIDIARIES       |                                                                                                                                                                                                                                                                             |
|-----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED      STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |                                                                                                                                                                                                                                                                             |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
|  (UNAUDITED)                                               |                                                                                                                                                                                                                                                                             |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                            |                                               For the Three Months Ended |   | For      the Nine Months Ended |   |
|                                                            |                     March 31, 2008                                                                                                                                                                         |   |   |                           March 31, 2007 |   |   |                   March 31, 2008 |   |   |            March 31, 2007 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |
|  NET      REVENUES                                         |                                                                                                                                                                                                                                                                             | $ | 3,706,091 |   |   | $ | 2,592,846 |   |   | $ | 11,421,215 |   |   | $ | 6,950,808 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  COST      OF GOODS SOLD                                   |                                                                                                                                                                                                                                                                             |   | 1,945,490 |   |   |   | 1,301,512 |   |   |   | 6,135,328 |   |   |   | 4,086,516 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  GROSS      PROFIT                                         |                                                                                                                                                                                                                                                                             |   | 1,760,601 |   |   |   | 1,291,334 |   |   |   | 5,285,887 |   |   |   | 2,864,292 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  OPERATING      EXPENSES:                                  |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Selling      expenses                                     |                                                                                                                                                                                                                                                                             |   | 202,689 |   |   |   | 173,825 |   |   |   | 603,492 |   |   |   | 415,096 |   |
|  General      and administrative expenses                  |                                                                                                                                                                                                                                                                             |   | 904,209 |   |   |   | 214,198 |   |   |   | 1,388,148 |   |   |   | 604,330 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total      operating expenses                             |                                                                                                                                                                                                                                                                             |   | 1,106,898 |   |   |   | 388,023 |   |   |   | 1,991,640 |   |   |   | 1,019,426 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  INCOME      FROM OPERATIONS                               |                                                                                                                                                                                                                                                                             |   | 653,703 |   |   |   | 903,311 |   |   |   | 3,294,247 |   |   |   | 1,844,866 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  OTHER      (INCOME) EXPENSE:                              |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest      expense                                     |                                                                                                                                                                                                                                                                             |   | (2,474 | ) |   |   | 41,197 |   |   |   | 39,286 |   |   |   | 64,277 |   |
|  Interest      income                                      |                                                                                                                                                                                                                                                                             |   | (720 | ) |   |   | 2,011 |   |   |   | (7,449 | ) |   |   | - |   |
|  Other      income (expense)                               |                                                                                                                                                                                                                                                                             |   | (1,319 | ) |   |   | (1,571 | ) |   |   | 58,468 |   |   |   | 1,823 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total      other (income) expense                         |                                                                                                                                                                                                                                                                             |   | (4,513 | ) |   |   | 41,637 |   |   |   | 90,305 |   |   |   | 66,100 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  INCOME      BEFORE INCOME TAXES                           |                                                                                                                                                                                                                                                                             |   | 649,190 |   |   |   | 944,948 |   |   |   | 3,203,942 |   |   |   | 1,778,766 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  INCOME      TAXES                                         |                                                                                                                                                                                                                                                                             |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  INCOME      BEFORE MINORITY INTEREST                      |                                                                                                                                                                                                                                                                             |   | 649,190 |   |   |   | 944,948 |   |   |   | 3,203,942 |   |   |   | 1,778,766 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  MINORITY      INTEREST                                    |                                                                                                                                                                                                                                                                             |   | (215,623 | ) |   |   | (173,297 | ) |   |   | (607,097 | ) |   |   | (456,664 | ) |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  NET      INCOME                                           |                                                                                                                                                                                                                                                                             |   | 433,567 |   |   |   | 771,651 |   |   |   | 2,596,845 |   |   |   | 1,322,102 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  OTHER      COMPREHENSIVE INCOME:                          |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Foreign      currency translation gain                    |                                                                                                                                                                                                                                                                             |   | 542,545 |   |   |   | 192,711 |   |   |   | 1,070,681 |   |   |   | 399,283 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  COMPREHENSIVE      INCOME                                 |                                                                                                                                                                                                                                                                             | $ | 976,112 |   |   | $ | 964,362 |   |   | $ | 3,667,526 |   |   | $ | 1,721,385 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME PER COMMON SHARE                                |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|  -      BASIC AND DILUTED:                                 |                                                                                                                                                                                                                                                                             | $ | 0.01 |   |   | $ | 0.03 |   |   | $ | 0.09 |   |   | $ | 0.04 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Weighted      Common Shares Outstanding                   |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  -      basic and diluted                                  |                                                                                                                                                                                                                                                                             |   | 30,000,000 |   |   |   | 30,000,000 |   |   |   | 30,000,000 |   |   |   | 30,000,000 |   |
|                                                            |                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|  See      accompanying notes to the Consolidated Financial    Statements. |
|--------------------------------------------------------------------------------|

----

|  CHINA      DASHENG BIOTECHNOLOGY COMPANY AND SUBSIDIARIES |
|-----------------------------------------------------------------|
|  CONSOLIDATED      STATEMENTS OF CASH FLOWS                |
|                                                            |
|  (UNAUDITED)                                               |
|                                                            |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   | For      the Nine Months Ended |
|                                                            |   |   |   |   | March      31, 2008 |   |   | March      31, 2007 |

|  CASH      FLOWS FROM OPERATING ACTIVITIES:                       |                                                                      |                                            |   |                                                                                                                |   |
|------------------------------------------------------------------------|---------------------------------------------------------------------------|-------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|--------|
|  Net      income                                                  |                                                                      |                                            |   |                                                                                                                |   |   |   |   |   | $ |                2,596,845 |   |   |   |   |   |   | $ |                1,322,102 |   |
|  Adjustments      to reconcile net income to net cash provided by |                                                                      |                                            |   |
|                                                                   |  (used      in) operating activities                                 |                                            |   |                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |  Depreciation      expense                                           |                                            |   |                                                                                                                |   |   |   |   |   |   |   |                   236,690 |   |   |   |   |   |   |   |                   290,757 |   |
|                                                                   |  Amortization      expense                                           |                                            |   |                                                                                                                |   |   |   |   |   |   |   |                   110,544 |   |   |   |   |   |   |   |                   106,198 |   |
|                                                                   |  Minority      interest in net earnings of consolidated subsidiaries |                                            |   |                   456,664 |   |
|                                                                   |  Changes      in operating assets and liabilities:                   |                                            |   |                                                                                                                |   |   |   |   |   |   |
|                                                                   |                                                                      |  Accounts      receivable                  |   |                                                                                                                |   |   |   |   |   |   |   |   |                 (512,552) |   |   |   |   |   |   |   |              (1,949,784) |   |
|                                                                   |                                                                      |  Inventories                               |   |                                                                                                                |   |   |   |   |   |   |   |   |                   196,945 |   |   |   |   |   |   |   |                 (121,176) |   |
|                                                                   |                                                                      |  Prepayments      and other current assets |   |                1,119,869                 |   |   |   |   |   |   |   |              (1,418,798) |   |
|                                                                   |                                                                      |  Accounts      payable                     |   |                                                                                                                |   |   |   |   |   |   |   |   |                 (310,613) |   |   |   |   |   |   |   |                   719,920 |   |

|  |   |  Accrued      expenses and other current liabilities |   |   |   |   |   |   |   |   |   |   |                 (2,010,476) |   |   |   |   |   |   |   |                   (1,253,659) |   |
|--|--------|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|
|  NET      CASH PROVIDED BY (USED IN) OPERATING      ACTIVITES                                                                                                                                                                         2,034,349 |   |                   (1,847,776) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|

|  CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                      |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Purchases      of property, plant and      equipment                                                                                                                                                                                                                (28,405) |                                                                                                      |   |                   (15,577) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Purchase      of land use right                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                      |   |   |                              - |   |   |   |                   (91,050) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                      |   |   |   |   |   |   |   |   |   |
|  NET      CASH USED IN INVESTING      ACTIVITIES                                                                                                                                                                                                                (28,405) |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                 (106,627) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                      |   |   |   |   |   |   |   |   |   |
|  CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Proceeds      from long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                      |   |                              - |   |   |   |                   595,608 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Repayment      of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                      |   |              (1,197,946) |   |   |   |                 (204,578) |   |

|  |         Amounts received frmo (paid to) related parties |   |   |                              938,601 |   |   |   |                   597,979 |   |
|--|-------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------|--------|

| NET      CASH PROVIDED BY (USED IN) FINANCING      ACTIVITIES                                                                                                                                                                               (259,345) |   |                   989,009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|--------|
|   |   |   |   |                 |   |   |   |               |   |
|--------|--------|--------|--------|--------------------------------------------------------------------------------------------|--------|--------|--------|--------------------------------------------------------------------------------|--------|
| EFFECT      OF EXCHANGE RATE CHAGES ON CASH |   |   |   |             277,319 |   |   |   |        100,065 |   |
|---------------------------------------------|--------|--------|--------|---------------------------------------------------------------------------------|--------|--------|--------|---------------------------------------------------|--------|
| NET      INCREASE (DECREASE) IN CASH                         |                     |   |                2,023,918 |                                                                                                |                                                                                                                                                                            |   |                 (865,329) |                                                                                                |
|--------------------------------------------------------------|--------------------------|--------|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|
|                                                         |                     |   |                                                                                                |                                                                                                |                                                                                                                                                                            |   |                                                                                                      |                                                                                                |   |   |   |
|  Cash      at beginning of period                       |                     |   |                                                                                                |                1,316,569 |                                                                                                                                                                            |   |                                                                                                      |                1,901,815 |   |
|                                                         |                     |   |                                                                                                |                                                                                                |                                                                                                                                                                            |   |                                                                                                      |                                                                                                |   |   |   |
|  Cash      at end of period                             |                     |   | $                                                                                                   |                3,340,487 |                                                                                                                                                                            |   | $                                                                                                         |                1,036,486 |   |
|                                                         |                     |   |                                                                                                |                                                                                                |                                                                                                                                                                            |   |                                                                                                      |                                                                                                |   |   |   |
|  SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION: |
|                                                         |  Interest      paid |   |                                                                                                | $                                                                                                   |                              - |   |                                                                                                      | $                                                                                                   |                              - |   |
|                                                         |  Taxes      paid    |   |                                                                                                | $                                                                                                   |                              - |   |                                                                                                      | $                                                                                                   |                              - |   |

| See      accompanying notes to the Consolidated Financial    Statements. |
|--------------------------------------------------------------------------|

----

----

----

|   | Shipping and handling      costs |
|--------|----------------------------------|

|   | Advertising      costs |
|--------|------------------------|

|   | Income      taxes |
|--------|-------------------|

----

----

|   | Recently issued      accounting pronouncements |
|--------|------------------------------------------------|

| ·   | of      management’s responsibility for establishing and maintaining adequate      internal control over its financialreporting; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | of      management’s assessment of the effectiveness of its internal control over      financial reporting as of year end;and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | of      the framework used by management to evaluate the effectiveness of the      Company’s internal control over financial  reporting. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                             |   |                |    |   |               |   |    |   |
|----------------------------------|--------|---------------------|---------|--------|--------------------|--------|---------|--------|
|                             |   | March      31, 2008 |    |   | June      30, 2007 |   |
| Raw      materials               |   | $                   | 314,334 |   |               | $      | 592,207 |   |
| Work      in process             |   |                | 271,631 |   |               |   | 32,003  |   |
| Finished      goods              |   |                | 131,493 |   |               |   | 209,226 |   |
|                             |   |                | 717,458 |   |               |   | 833,436 |   |
| Less      inventory obsolescence |   |                | (-      | )      |               |   | (-      | )      |
|                             |   |                |    |   |               |   |    |   |
|                             |   |                |    |   |               |   |
|                             |   | $                   | 717,458 |   |               | $      | 833,436 |   |
|                             |   |                |    |   |               |   |

|                                                                                                                  |   |                |      |   |               |   |      |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|---------------------|-----------|--------|--------------------|--------|-----------|--------|
|                                                                                                                  |   | March      31, 2008 |      |   | June      30, 2007 |   |
| Due      from Weiye Forestry Ecosystem and Development Co., Ltd. for the sale of      forestry development rights (a) |   | $                   | 1,488,782 |   |               | $      | 1,371,432 |   |
| Due      from Dasheng Trading Co., Ltd.                                                                               |   |                | 1,680,690 |   |               |   | 198,515   |   |
| Advances      stockholders/officers (b)                                                                               |   |                | 536,183   |   |               |   | 1,580,019 |   |
|                                                                                                                  |   |                | 3,705,655 |   |               |   | 3,149,966 |   |

|   | (a) | On      March 3, 2007, the Company sold its forestry development rights to Weiye      Forestry Ecosystem and Development Co., Ltd., an affiliate of the Company,      at the Company’s cost basis. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | The      advances bear no interest and have no formal repayment  terms.                                                                                                                                  |

----

----

| Segment & Entity                  |   | Business Activity                                                                                                                                                                                                                                                                            |
|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                  |   |                                                                                                                                                                                                                                                                                         |
| Organic      fertilizer               |   |                                                                                                                                                                                                                                                                                         |
| Dasheng,      Lüshen and Elemiss |   | Manufacturing      and marketing of artificial microorganisms (“AM”), high-efficiency      microorganisms (“HM”) based biological bacterium blends, and Bulgarian      lactobacillus live stock feed additives for agribusinesses; and biological      preservative. |
|                                  |   |                                                                                                                                                                                                                                                                                         |
| Real      estate                      |   |                                                                                                                                                                                                                                                                                         |
| Dasheng                               |   | Commercial      real estate investment                                                                                                                                                                                                                                                       |

|                                     |   |                                                    |       |   |             |   |      |   |   |
|------------------------------------------|--------|---------------------------------------------------------|------------|--------|------------------|--------|-----------|--------|--------|
|                                     |   | As      of and for the nine months ended March 31, 2008 |       |
|                                     |   | Micro-organic      agent                                |       |   | Real      estate |   |      | Total  |   |
|                                     |   |                                                    |       |   |             |   |      |   |   |
| NET      SALES                           |   |                                                    |       |   |             |   |      |   |   |   |   |   |
| Unaffiliated      customers              |   | $                                                       | 11,421,215 |   |             | $      | -         |   |   | $ | 11,421,215 |   |
| Inter-segment                            |   |                                                    | -          |   |             |   | -         |   |   |   | - |   |
| Total      sales                         |   |                                                    | 11,421,215 |   |             |   | -         |   |   |   | 11,421,215 |   |
|                                     |   |                                                    |       |   |             |   |      |   |   |   |   |   |
| COST      OF GOODS SOLD                  |   |                                                    | 6,135,328  |   |             |   | -         |   |   |   | 6,135,328 |   |
|                                     |   |                                                    |       |   |             |   |      |   |   |   |   |   |
| GROSS      PROFIT                        |   |                                                    | 5,285,887  |   |             |   | -         |   |   |   | 5,285,887 |   |
|                                     |   |                                                    |       |   |             |   |      |   |   |   |   |   |
| OPERATING      EXPENSES                  |   |                                                    |       |   |             |   |      |   |   |   |   |   |
| Selling      expenses                    |   |                                                    | 603,492    |   |             |   | -         |   |   |   | 603,492 |   |
| General      and administrative expenses |   |                                                    | 1,388,148  |   |             |   | -         |   |   |   | 1,388,148 |   |
|                                     |   |                                                    |       |   |             |   |      |   |   |   |   |   |
| Total      operating expenses            |   |                                                    | 1,991,640  |   |             |   | -         |   |   |   | 1,991,640 |   |
|                                     |   |                                                    |       |   |             |   |      |   |   |   |   |   |
| INCOME      FROM OPERATIONS              |   | $                                                       | 3,294,247  |   |             | $      | -         |   |   | $ | 3,294,247 |   |
|                                     |   |                                                    |       |   |             |   |      |   |   |   |   |   |
| TOTAL      ASSETS                        |   | $                                                       | 16,552,919 |   |             | $      | 1,350,620 |   |   | $ | 17,903,535 |   |
|                                     |   |                                                    |       |   |             |   |      |   |   |   |   |   |

|                                     |   |                                                     |       |   |             |   |      |   |   |
|------------------------------------------|--------|----------------------------------------------------------|------------|--------|------------------|--------|-----------|--------|--------|
|                                     |   | As      of and for the three months ended March 31, 2008 |       |
|                                     |   | Micro-organic      agent                                 |       |   | Real      estate |   |      | Total  |   |
|                                     |   |                                                     |       |   |             |   |      |   |   |
| NET      SALES                           |   |                                                     |       |   |             |   |      |   |   |   |   |   |
| Unaffiliated      customers              |   | $                                                        | 3,706,091  |   |             | $      | -         |   |   | $ | 3,706,091 |   |
| Inter-segment                            |   |                                                     |       |   |             |   | -         |   |   |   |   |   |
| Total      sales                         |   |                                                     | 3,706,091  |   |             |   | -         |   |   |   | 3,706,091 |   |
|                                     |   |                                                     |       |   |             |   |      |   |   |   |   |   |
| COST      OF GOODS SOLD                  |   |                                                     | 1,945,490  |   |             |   | -         |   |   |   | 1,945,490 |   |
|                                     |   |                                                     |       |   |             |   |      |   |   |   |   |   |
| GROSS      PROFIT                        |   |                                                     | 1,760,601  |   |             |   | -         |   |   |   | 1,760,601 |   |
|                                     |   |                                                     |       |   |             |   |      |   |   |   |   |   |
| OPERATING      EXPENSES                  |   |                                                     |       |   |             |   |      |   |   |   |   |   |
| Selling      expenses                    |   |                                                     | 202,689    |   |             |   | -         |   |   |   | 202,689 |   |
| General      and administrative expenses |   |                                                     | 904,209    |   |             |   | -         |   |   |   | 904,209 |   |
|                                     |   |                                                     |       |   |             |   |      |   |   |   |   |   |
| Total      operating expenses            |   |                                                     | 1,106,898  |   |             |   | -         |   |   |   | 1,106,898 |   |
|                                     |   |                                                     |       |   |             |   |      |   |   |   |   |   |
| INCOME      FROM OPERATIONS              |   | $                                                        | 653,703    |   |             | $      | -         |   |   | $ | 653,703 |   |
|                                     |   |                                                     |       |   |             |   |      |   |   |   |   |   |
| TOTAL      ASSETS                        |   | $                                                        | 16,552,919 |   |             | $      | 1,350,620 |   |   | $ | 17,903,535 |   |
|                                     |   |                                                     |       |   |             |   |      |   |   |   |   |   |

----

----

|                    |   |                                                                                                   |
|-------------------------|--------|--------------------------------------------------------------------------------------------------------|
|                    |   | China      Dasheng Biotechnology Company                                                               |
|                    |   |                                                                                                   |
|                    | By:    | /s/      JiJun      Qi                                                                                 |
|                    |   | JiJun      Qi                                                                                          |
|                    |   | Chief      Executive Officer and President(Principal      Executive, Financial and Accounting Officer) |
| Date:      May 20, 2008 |   |                                                                                                   |

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