UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



FORM 10-Q



(Mark One)



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

For the quarterly period
ended June 30, 2013



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

For the transition period
from ______to______



Commission File Number: 000-53089



CHINA NORTHERN MEDICAL DEVICE, INC.

(Exact name of registrant as specified in
its charter)



|Nevada                                                         |  | 30-0428006                          
|-------------------------------------------------------------- |  | ------------------------------------
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employee Identification No.)



|70 Daxin Road, Daowai District
        Harbin City, Heilongjiang Province
        People’s Republic of China |  | 150020    
|------------------------------------------------------------------------------------------------------------ |  | ----------
|(Address of principal executive offices)                                                                     |  | (Zip Code)



(+86) 451- 8228-0845

(Registrant’s
telephone number, including area code)



Not Applicable

(Former name, former address and former
fiscal year, if changed since the last report)



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 issuer was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. YesxNoo



Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YesxNoo



Indicate by check mark whether the registrant is a large accelerated
filer, 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:



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



Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YesoNox



Indicate the number of shares outstanding of each of the issuer’s
classes of common stock: As of August 8, 2013, 3,550,000 shares, par value $0.0001 per share, of our common stock were issued and
outstanding.


















CHINA NORTHERN MEDICAL DEVICE, INC.



FORM 10-Q



June 30, 2013



INDEX





|                               | Page Number                                                                           
|------------------------------ | --------------------------------------------------------------------------------------
|PART I - FINANCIAL INFORMATION |                                                                                       
|                               |                                                                                       
|Item 1.                        | Financial Statements.                                                                 
|Item 2.                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk.                           
|Item 4.                        | Controls and Procedures.                                                              
|                               |                                                                                       
|PART II - OTHER INFORMATION    |                                                                                       
|                               |                                                                                       
|Item 1.                        | Legal Proceedings.                                                                    
|Item 1A.                       | Risk Factors.                                                                         
|Item 2.                        | Unregistered Sales of Equity Securities and
Use of Proceeds.                          
|Item 3.                        | Defaults Upon Senior Securities.                                                      
|Item 4.                        | Mine Safety Disclosures.                                                              
|Item 5.                        | Other Information.                                                                    
|Item 6.                        | Exhibits.                                                                             
|                               |                                                                                       
|SIGNATURES                     | 18                                                                                    

































2







CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATION



This Quarterly Report on Form 10-Q (this
“Report”) contains “forward-looking statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). Forward-looking statements discuss matters that are not historical facts. Because they discuss future
events or conditions, forward-looking statements may include words such as “anticipate,” “believe,” “estimate,”
“intend,” “could,” “should,” “would,” “may,” “seek,” “plan,”
“might,” “will,” “expect,” “predict,” “project,” “forecast,”
“potential,” “continue” negatives thereof or similar expressions. Forward-looking statements speak only
as of the date they are made, are based on various underlying assumptions and current expectations about the future and are not
guarantees. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results,
level of activity, performance or achievement to be materially different from the results of operations or plans expressed or implied
by such forward-looking statements.



We cannot predict all of the risks and
uncertainties. Accordingly, such information should not be regarded as representations that the results or conditions described
in such statements or that our objectives and plans will be achieved and we do not assume any responsibility for the accuracy or
completeness of any of these forward-looking statements. These forward-looking statements are found at various places throughout
this Report and include information concerning possible or assumed future results of our operations, including statements about
potential acquisition or merger targets; business strategies; future cash flows; financing plans; plans and objectives of management;
any other statements regarding future acquisitions, future cash needs, future operations, business plans and future financial results,
and any other statements that are not historical facts.



These forward-looking statements represent
our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other
factors. Many of those factors are outside of our control and could cause actual results to differ materially from the results
expressed or implied by those forward-looking statements. In light of these risks, uncertainties and assumptions, the events described
in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Report.
All subsequent written and oral forward-looking statements concerning other matters addressed in this Report and attributable to
us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred
to in this Report.



Except to the extent required by law, we
undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events,
a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.



CERTAIN TERMS USED IN THIS REPORT



When this report uses the words “we,” “us,”
“our,” and the “Company,” they refer to China Northern Medical Device, Inc. “SEC” refers to
the Securities and Exchange Commission.















3







Part I – Financial Information



Item 1. Financial Statements.





CHINA NORTHERN MEDICAL DEVICE, INC

(A Development Stage Company)



BALANCE SHEETS



|                                                                                                                                                      |  | June 30,    |          |   | December 31, |  
|----------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------- | -------- | - | ------------ | -
|                                                                                                                                                      |  | 2013        |          |   | 2012         |  
|                                                                                                                                                      |  | (unaudited) |          |   |              |  
|                                                                                                                                                      |  |             |          |   |              |  
|ASSETS                                                                                                                                                |  |             |          |   |              |  
|Current Assets:                                                                                                                                       |  |             |          |   |              |  
|Cash and cash equivalents                                                                                                                             |  | $           | 89       |   |              | $
|Prepaid office rent                                                                                                                                   |  |             | –        |   |              |  
|Total Current Assets                                                                                                                                  |  |             | 89       |   |              |  
|                                                                                                                                                      |  |             |          |   |              |  
|Total Assets                                                                                                                                          |  | $           | 89       |   |              | $
|                                                                                                                                                      |  |             |          |   |              |  
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                  |  |             |          |   |              |  
|                                                                                                                                                      |  |             |          |   |              |  
|Current Liabilities:                                                                                                                                  |  |             |          |   |              |  
|Accounts payable and accrued expenses (Note 6)                                                                                                        |  |             | 17,868   |   |              |  
|Loan from a shareholder (Note 7)                                                                                                                      |  | $           | 2,900    |   |              | $
|Total Current Liabilities                                                                                                                             |  |             | 20,768   |   |              |  
|                                                                                                                                                      |  |             |          |   |              |  
|Stockholders' Equity:                                                                                                                                 |  |             |          |   |              |  
|Preferred stock, par value $0.0001, 5,000,000 shares authorized; none issued and
    outstanding as of June 30, 2013 and December 31, 2012            |  |             | –        |   |              |  
|Common stock, par value $0.0001, 100,000,000 shares authorized; 3,550,000 shares issued and outstanding as of
    June 30, 2013 and December 31, 2012 |  |             | 355      |   |              |  
|Additional paid-in capital                                                                                                                            |  |             | 349,645  |   |              |  
|Deficit accumulated during the development stage                                                                                                      |  |             | (370,679 | ) |              |  
|Stockholders' deficiency                                                                                                                              |  |             | (20,679  | ) |              |  
|Total Liabilities and Stockholders' Deficiency                                                                                                        |  | $           | 89       |   |              | $



See Notes to Financial Statements





4







CHINA NORTHERN MEDICAL DEVICE, INC

(A Development Stage Company)



STATEMENT OF OPERATIONS



|                                                  |  |                            |           |   |                          |   |           |                     |  |   |             |   |  | For the Period |          
|------------------------------------------------- |  | -------------------------- | --------- | - | ------------------------ | - | --------- | ------------------- |  | - | ----------- | - |  | -------------- | ---------
|                                                  |  |                            |           |   |                          |   |           |                     |  |   |             |   |  | March 26, 2007 |          
|                                                  |  | For the Three Months Ended |           |   | For the Six Months Ended |   |           | (inception) through | 
|                                                  |  | June 30,                   |           |   | June 30,                 |   |           | June 30,            | 
|                                                  |  | 2013                       |           |   | 2012                     |   |           | 2013                |  |   | 2012        |   |  | 2013           |          
|                                                  |  | (unaudited)                |           |   | (unaudited)              |   |           | (unaudited)         |  |   | (unaudited) |   |  | (unaudited)    |          
|                                                  |  |                            |           |   |                          |   |           |                     |  |   |             |   |  |                |          
|Revenues                                          |  |                            |           |   |                          |   |           |                     |  |   |             |   |  |                |          
|Sales                                             |  | $                          | –         |   |                          | $ | –         |                     |  | $ | –           |   |  | $              | –        
|Costs of Sales                                    |  |                            | –         |   |                          |   | –         |                     |  |   | –           |   |  |                | –        
|Gross Profit                                      |  |                            | –         |   |                          |   | –         |                     |  |   | –           |   |  |                | –        
|                                                  |  |                            |           |   |                          |   |           |                     |  |   |             |   |  |                |          
|Operating Expenses                                |  |                            |           |   |                          |   |           |                     |  |   |             |   |  |                |          
|Office rent                                       |  |                            | 1,200     |   |                          |   | 1,200     |                     |  |   | 2,400       |   |  |                | 2,400    
|Office expenses                                   |  |                            | 4,524     |   |                          |   | 2,008     |                     |  |   | 6,988       |   |  |                | 2,103    
|Consultancy Fees                                  |  |                            | –         |   |                          |   | –         |                     |  |   | –           |   |  |                | –        
|Professional fees                                 |  |                            | 1,000     |   |                          |   | 3,000     |                     |  |   | 5,600       |   |  |                | 4,120    
|Total Operating Expenses                          |  |                            | 6,724     |   |                          |   | 6,208     |                     |  |   | 14,988      |   |  |                | 8,623    
|                                                  |  |                            |           |   |                          |   |           |                     |  |   |             |   |  |                |          
|Income (Loss) from Operation                      |  |                            | (6,724    | ) |                          |   | (6,208    | )                   |  |   | (14,988     | ) |  |                | (8,623   
|                                                  |  |                            |           |   |                          |   |           |                     |  |   |             |   |  |                |          
|Other Income (Expenses)                           |  |                            |           |   |                          |   |           |                     |  |   |             |   |  |                |          
|Interest Income                                   |  |                            | –         |   |                          |   | –         |                     |  |   | –           |   |  |                | –        
|Total Other Income (Expenses)                     |  |                            | –         |   |                          |   | –         |                     |  |   | –           |   |  |                | –        
|                                                  |  |                            |           |   |                          |   |           |                     |  |   |             |   |  |                |          
|Income (Loss) before Provision for Income Tax     |  |                            | (6,724    | ) |                          |   | (6,208    | )                   |  |   | (14,988     | ) |  |                | (8,623   
|                                                  |  |                            |           |   |                          |   |           |                     |  |   |             |   |  |                |          
|Provision for Income Tax                          |  |                            | –         |   |                          |   | –         |                     |  |   | –           |   |  |                | –        
|                                                  |  |                            |           |   |                          |   |           |                     |  |   |             |   |  |                |          
|Net Income (Loss)                                 |  | $                          | (6,724    | ) |                          | $ | (6,208    | )                   |  | $ | (14,988     | ) |  | $              | (8,623   
|                                                  |  |                            |           |   |                          |   |           |                     |  |   |             |   |  |                |          
|Basic and fully diluted earnings (loss) per share |  | $                          | (0.002    | ) |                          | $ | (0.002    | )                   |  | $ | (0.004      | ) |  | $              | (0.002   
|                                                  |  |                            |           |   |                          |   |           |                     |  |   |             |   |  |                |          
|Weighted average shares outstanding               |  |                            | 3,550,000 |   |                          |   | 3,550,000 |                     |  |   | 3,550,000   |   |  |                | 3,550,000



See Notes to Financial Statements





5









CHINA NORTHERN MEDICAL DEVICE, INC

(A Development Stage Company)



STATEMENT OF CASH FLOWS



|                                                                                                    |  |                          |         |   |                     |   |         | For the Period | 
|--------------------------------------------------------------------------------------------------- |  | ------------------------ | ------- | - | ------------------- | - | ------- | -------------- | 
|                                                                                                    |  |                          |         |   |                     |   |         | March 26, 2007 | 
|                                                                                                    |  | For the Six Months Ended |         |   | (inception) through |  
|                                                                                                    |  | June 30,                 |         |   | June 30,            |  
|                                                                                                    |  | 2013                     |         |   | 2012                |   |         | 2013           | 
|                                                                                                    |  | (unaudited)              |         |   | (unaudited)         |   |         | (unaudited)    | 
|Operating Activities                                                                                |  |                          |         |   |                     |   |         |                | 
|                                                                                                    |  |                          |         |   |                     |   |         |                | 
|Net income (loss)                                                                                   |  | $                        | (14,988 | ) |                     | $ | (8,623  | )              | 
|                                                                                                    |  |                          |         |   |                     |   |         |                | 
|Adjustments to reconcile net income (loss) to net cash
    provided (used) by operating activities: |  |                          |         |   |                     |   |         |                | 
|                                                                                                    |  |                          |         |   |                     |   |         |                | 
|Changes in operating assets and liabilities:                                                        |  |                          |         |   |                     |   |         |                | 
|                                                                                                    |  |                          |         |   |                     |   |         |                | 
|Decrease (Increase) in prepaid office rent                                                          |  |                          | 800     |   |                     |   | –       |                | 
|Increase (decrease) in accounts payable and accrued expenses                                        |  |                          | 11,264  |   |                     |   | (6,779  | )              | 
|Net cash provided (used) by operating activities                                                    |  |                          | (2,924  | ) |                     |   | (15,402 | )              | 
|                                                                                                    |  |                          |         |   |                     |   |         |                | 
|Investing Activities                                                                                |  |                          |         |   |                     |   |         |                | 
|                                                                                                    |  |                          |         |   |                     |   |         |                | 
|Net cash (used) by investing activities                                                             |  |                          | –       |   |                     |   | –       |                | 
|                                                                                                    |  |                          |         |   |                     |   |         |                | 
|Financing Activities                                                                                |  |                          |         |   |                     |   |         |                | 
|                                                                                                    |  |                          |         |   |                     |   |         |                | 
|Proceeds from issuance of common stock                                                              |  |                          | –       |   |                     |   | –       |                | 
|Loans from a shareholder                                                                            |  |                          | 2,900   |   |                     |   | 15,500  |                | 
|Net cash provided (used) by financing activities                                                    |  |                          | 2,900   |   |                     |   | 15,500  |                | 
|                                                                                                    |  |                          |         |   |                     |   |         |                | 
|Increase (decrease) in cash                                                                         |  |                          | (24     | ) |                     |   | 98      |                | 
|                                                                                                    |  |                          |         |   |                     |   |         |                | 
|Cash at beginning of period                                                                         |  |                          | 113     |   |                     |   | 35      |                | 
|Effects of exchange rates on cash                                                                   |  |                          | –       |   |                     |   | –       |                | 
|Cash at end of period                                                                               |  | $                        | 89      |   |                     | $ | 133     |                | 
|                                                                                                    |  |                          |         |   |                     |   |         |                | 
|Supplemental Disclosures of Cash Flow Information:                                                  |  |                          |         |   |                     |   |         |                | 
|Cash paid (received) during year for:                                                               |  |                          |         |   |                     |   |         |                | 
|Interest                                                                                            |  | $                        | –       |   |                     | $ | –       |                | 
|Income taxes                                                                                        |  | $                        | –       |   |                     | $ | –       |                | 



See Notes to Financial Statements





6









CHINA NORTHERN MEDICAL DEVICE, INC

(A
Development Stage Company)



NOTES TO FINANCIAL STATEMENTS



Note
1 -BASIS OF PRESENTATION



The
accompanying unaudited financial statements as of June 30, 2013 and for the three and six months ended June 30, 2013 and 2012
have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”)
for interim financial information. They do not include all of the information and footnotes for complete financial statements
as required by GAAP. In management's opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary
for a fair presentation have been included. The results of operations for the three and six months ended June 30, 2013 and 2012
presented are not necessarily indicative of the results to be expected for the full year. These financial statements should be
read in conjunction with the Company’s audited financial statements and notes thereto for the fiscal year ended December
31, 2012.



Note
2 -ORGANIZATION AND BUSINESS
BACKGROUND



China
Northern Medical Device, Inc. ("CNMD" or the "Company") was incorporated on March 26, 2007 under the laws
of the State of Nevada.  The Company has selected December 31 as its fiscal year ending.



The
Company has not yet generated revenues from planned principal operations and is considered a development stage company as defined
in the Accounting Standards Codification ("ASC") 915, "Development Stage Entities", issued by the Financial
Accounting Standards Board ("FASB") . The Company plans on becoming involved in the business of marketing medical devices
and providing consulting services to medical device manufactures in the People's Republic of China ("PRC") and North
America . There is no assurance, however, that the Company will achieve its objectives or goals.



Note
3 -GOING CONCERN



The
Company incurred net losses of $14,988 for the six months ended June 30, 2013, and $13,627 for the year ended December 31, 2012.
In addition, the Company had a working capital deficiency of $20,679 and a stockholders' deficiency of $20,679 at June 30, 2013.
These factors raise substantial doubt about the Company's ability to continue as a going concern.



There
can be no assurance that sufficient funds required during the next year or thereafter will be generated from operations or that
funds will be available from external sources such as debt or equity financings or other potential sources. The lack of additional
capital resulting from the inability to generate cash flow from operations or to raise capital from external sources would force
the Company to substantially curtail or cease operations and would, therefore, have a material adverse effect on its business.
Furthermore, there can be no assurance that any such required funds, if available, will be available on attractive terms or that
they will not have a significant dilutive effect on the Company's existing stockholders.



The
accompanying financial statements do not include any adjustments related to the recoverability or classification of asset-carrying
amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.



During the
period March 26, 2007 (inception) through June 30, 2013, the Company relied heavily for its financing needs on its CEO/director,
Mr. Wu, Jinzhao, as more fully disclosed in Note 7.





7









CHINA NORTHERN MEDICAL DEVICE, INC

(A
Development Stage Company)



NOTES TO FINANCIAL STATEMENTS



Note
4 - CONTROL BY PRINCIPAL STOCKHOLDER/OFFICER



The chief executive
officer owns beneficially and in the aggregate, the majority of the voting power of the Company. Accordingly, the chief executive
officer has the ability to control the approval of most corporate actions, including approving significant expenses, increasing
the authorized capital stock and the dissolution, merger or sale of the Company's assets.



Note
5 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Basis of Presentation



The accompanying financial statements
have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP")
and are presented in U.S. dollars.



Subsequent
Events



The Company evaluated subsequent events
through the date of the issuance of these financial statements. We are not aware of any significant events that occurred subsequent
to the balance sheet date but prior to the filing of this report that would have a material impact on our financial statements.



Use
of Estimates



The
preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the 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 revenue and expenses during the reporting period.  Actual
results when ultimately realized could differ from these estimates.



Cash and Cash
Equivalents



Cash and cash equivalents
include cash on hand, deposits in banks with maturities of three months or less, and all highly liquid investments which are unrestricted
as to withdrawal or use, and which have original maturities of three months or less.



Concentrations
of Credit Risk



Financial instruments that subject the Company to concentrations
of credit risk consist primarily of cash and cash equivalents. The Company maintains its cash and cash equivalents with high-quality
institutions.  Deposits held with banks in PRC may not be insured or exceed the amount of insurance provided on such
deposits.  Generally these deposits may be redeemed upon demand and therefore bear minimal risk.





8







CHINA NORTHERN MEDICAL DEVICE, INC

(A
Development Stage Company)



NOTES TO FINANCIAL STATEMENTS









Note
5 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Fair Value of Financial Instruments



The
carrying value of financial instruments including cash and cash equivalents, receivables, prepaid expenses, accounts payable,
and accrued expenses, approximates their fair value due to the relatively short-term nature of these instruments.



Impairment
of Long-life Assets



Long-lived
assets and certain identifiable intangibles are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison
of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered
to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the
fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to
sell.



Revenue
Recognition



The Company recognizes revenue when the
earnings process is complete and persuasive evidence of an arrangement exists. This generally occurs when products are shipped
to unaffiliated customer or picked up by unaffiliated customers in the Company's warehouse, both title and the risks and rewards
of ownership are transferred or services have been rendered and accepted, the selling price is fixed or determinable, and collectability
is reasonably assured.



Advertising Costs



The
Company expenses advertising costs as incurred or the first time the advertising takes place, whichever is earlier, in accordance
with the FASB ASC 720-35.  Advertising costs were immaterial for the six months ended June 30, 2013 and 2012, respectively.



Research
and Development Costs



The
Company charges research and development costs to expense when incurred in accordance with the FASB ASC 730, “Research and
Development”. Research and development costs were immaterial for the six months ended June 30, 2013 and 2012, respectively.



Related
parties



For the purposes of these financial statements, parties are considered to be related if one party has the ability,
directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating
decisions, or vice versa, or where the Company and the party are subject to common control or common significant influence. Related
parties may be individuals or other entities.





9







CHINA
NORTHERN MEDICAL DEVICE, INC

(A Development Stage Company)



NOTES TO FINANCIAL STATEMENTS



Note
5 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Income
Taxes



The
Company accounts for income tax in accordance with FASB ASC 740, "Income Taxes", which requires the asset and liability
approach for financial accounting and reporting for income taxes.  Deferred tax assets and liabilities are recognized
for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax
rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The
effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the
enactment date.  A valuation allowance related to deferred tax assets is recorded when it is more likely than not that
some portion or all of the deferred tax assets will not be realized.



The
Company has accumulated deficiency in its operation.  Because there is no certainty that we will realize taxable income
in the future, we did no record any deferred tax benefit as a result of these losses.



Effective
January 1, 2007, the Company adopted a new FASB guidance, which clarifies the accounting for uncertainty in income taxes recognized
in an enterprise’s financial statements. The new FASB guidance prescribes a recognition threshold and measurement attribute
for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  The
new FASB guidance also provides guidance on de-recognition of tax benefits, classification on the balance sheet, interest and
penalties, accounting in interim periods, disclosure, and transition.  In accordance with the new FASB guidance, the
Company performed a self-assessment and concluded that there were no significant uncertain tax positions requiring recognition
in its financial statements.



The
Company accounts for income taxes in interim periods in accordance with  FASB ASC 740-270, "Interim Reporting".
The Company has determined an estimated annual effect tax rate. The rate will be revised, if necessary, as of the end of each
successive interim period during the Company’s fiscal year to its best current estimate. The estimated annual effective
tax rate is applied to the year-to-date ordinary income (or loss) at the end of the interim period.



Earnings
(Loss) Per Share



The Company reports earnings per share in accordance with FASB ASC 260, “Earnings Per Share.”
FASB ASC 260 requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology
used in computing such earnings per share.  Basic earnings (loss) per share is computed by dividing income (loss) available
to common shareholders by the weighted-average number of common shares outstanding during the period.  Diluted earnings
per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional
common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares
were dilutive.  There are no potentially dilutive securities outstanding (options and warrants) for the six months ended
June 30, 2013 and 2012, respectively.





10







CHINA NORTHERN MEDICAL DEVICE, INC

(A
Development Stage Company)



NOTES TO FINANCIAL STATEMENTS



Note
5 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Comprehensive Income



FASB
ASC 220, “Comprehensive Income", establishes standards for reporting and display of comprehensive income, its components
and accumulated balances.  Comprehensive income as defined includes all changes in equity during a period from non-owner
sources.



Segment
Reporting



FASB
ASC 820 “Segments Reporting” establishes standards for reporting information about operating segments on a basis consistent
with the Company’s internal organization structure as well as information about geographical areas, business segments and
major customers in financial statements. The Company currently plans on operating in one principal business segment.



Fair
Value of Measurements



Accounting
principles generally accepted in the United States define fair value as the exchange price that would be received for an asset
or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an
orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are
prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize
the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:



|Level 1: | Unadjusted
quoted prices in active markets for identical assets or liabilities                                                                                                                                                                                                                                                     
|-------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         |                                                                                                                                                                                                                                                                                                                                    
|Level 2: | Input
    other than quoted market prices that are observable, either directly or indirectly, and reasonably available.  Observable
    inputs reflect the assumptions market participants would use in pricing the asset or liability and are developed based on
    market data obtained from sources independent of the Company.
|         |                                                                                                                                                                                                                                                                                                                                    
|Level 3: | Unobservable
inputs.  Unobservable inputs reflect the assumptions that the Company develops based on available information about
what market participants would use in valuing the asset or liability.                                                                                                                             



An asset or liability’s level within the fair value hierarchy is based on the lowest level of any
input that is significant to the fair value measurement.  Availability of observable inputs can vary and is affected
by a variety of factors.  The Company uses judgment in determining fair value of assets and liabilities and Level 3
assets and liabilities involve greater judgment than Level 1 and Level 2 assets or liabilities.





11









CHINA NORTHERN MEDICAL DEVICE, INC

(A
Development Stage Company)



NOTES TO FINANCIAL STATEMENTS



Note
5 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Recent Accounting Pronouncements



In January 2013, the Financial Accounting
Standards Board (“FASB”) amended its guidance on the presentation of comprehensive income. Under the amended guidance,
an entity must present information regarding reclassification adjustments from accumulated other comprehensive income in a single
note or on the face of the financial statements. This is required for both annual and interim reporting. The amendment becomes
effective for reporting periods beginning after December 15, 2012 and is applied prospectively. Early adoption is permitted. The
Company has elected to adopt this guidance during the year ended December 31, 2012. This guidance did not have an impact on the
Company’s consolidated financial position, results of operations or cash flows as it is disclosure-only in nature.



In
July 2012, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update No. 2012-02 (“ASU
2011-12”), Testing Indefinite-Lived Intangible Assets for Impairment. Under this standard, entities testing long-lived intangible
assets for impairment now have an option of performing a qualitative assessment to determine whether further impairment testing
is necessary. If an entity determines, on the basis of qualitative factors, that the fair value of the indefinite-lived intangible
asset is more-likely-than-not less than the carrying amount, the existing quantitative impairment test is required. Otherwise,
no further impairment testing is required. This ASU is effective beginning January 1, 2013, with early adoption permitted under
certain conditions. The adoption of this standard did not have a material impact on the Company’s financial position, results
of operations, and cash flows.



Note
6 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES



Accounts
payable and accrued expenses consist of the following:



|                                            |  | June 30,    |        |  | December 31, |  
|------------------------------------------- |  | ----------- | ------ |  | ------------ | -
|                                            |  | 2013        |        |  | 2012         |  
|                                            |  | (unaudited) |        |  |              |  
|                                            |  |             |        |  |              |  
|Accrued professional fees                   |  | $           | 11,600 |  |              | $
|Accrued office rent                         |  |             | 1,600  |  |              |  
|Accrued office expenses                     |  |             | 4,668  |  |              |  
|Total accounts payable and accrued expenses |  | $           | 17,868 |  |              | $





12







CHINA NORTHERN MEDICAL DEVICE, INC

(A
Development Stage Company)



NOTES TO FINANCIAL STATEMENTS



Note 7 - LOAN
FROM A SHAREHOLDER



Loan from
a shareholder are loans from a shareholder/CEO, Mr. Wu, Jinzhao, to finance the Company’s operation due to lack of cash
resources.  These loans are unsecured, non-interest bearing and have no fixed terms of repayment, therefore, deemed
payable on demand. Cash flow from this activity is classified as cash flows from financing activity. The total borrowing from
Mr. Wu was $200,000 for the period March 26, 2007 (inception) through December 31, 2012.  On December 31, 2012, the
Company entered into debt conversion agreement with Mr. Wu, pursuant to which $200,000 of debt owed to Mr. Wu by the Company was
contributed to additional paid-in capital of the Company. The borrowing from Mr. Wu was $2,900 and $15,500 for the six months
ended June 30, 2013 and 2012, respectively.



Note
8 - CAPITAL STOCK



The
Articles of Incorporation authorized the Company to issue 5,000,000 shares of preferred stock with a par value of $0.0001, and
100,000,000 shares of common stock with a par value of $0.0001.  No shares of preferred stock have been issued.  Upon
formation of the Company, 3,000,000 shares of common stock were issued for $40,000.



The
Company completed a public offering on March 14, 2008.  The Company issued 550,000 shares of common stock to 40 PRC
citizen shareholders for $110,000.  The number of common stocks issued and outstanding immediately after the offering
was 3,550,000.



On
December 31, 2012, the Company entered into debt conversion agreement with Mr. Wu, pursuant to which $200,000 of debt owed to
Mr. Wu by the Company was contributed to additional paid-in capital of the Company.



Note
9 - OFFICE LEASE



The Company rents office premise and
attached facilities for its headquarters. The lease is for a one-year period ended May 31, 2014.  Rental expense amounted
to $2,400 and $2,400 for the six months ended June 30, 2013 and 2012, respectively.



Note
10 - COMMITMENTS AND CONTINGENCIES



The
Company faces a number of risks and challenges not typically associated with companies in North America and Western Europe, since
its assets exist solely in the PRC, and its revenues are derived from its operations therein.  The PRC is a developing
country with an early stage market economic system, overshadowed by the state.  Its political and economic systems are
very different from the more developed countries and are in a state of change.  The PRC also faces many social, economic
and political challenges that may produce major shocks and instabilities and even crises, in both its domestic arena and in its
relationships with other countries, including the United States.  Such shocks, instabilities and crises may in turn
significantly and negatively affect the Company's performance.





13







Item 2. Management’s Discussion and Analysis of Financial
Conditions and Results of Operations



The following discussion and analysis of
the results of operations and financial condition of China Northern Medical Device, Inc. for the period ended June 30, 2013 and
2012 shall be read in conjunction with the financial statements and notes. Our discussion includes forward-looking statements based
upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual
results of the timing of events could differ materially from those projected in these forward-looking statements as a result of
a number of factors, including those set forth under the Risk Factors, Special Note Regarding Forward-Looking Statements and Business
sections in our Form 10-K as filed with the Securities and Exchange Commission on September 30, 2011. We use words such as “anticipate,”
“estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,”
“believe,” “intend,” “may,” “will,” “should,” “could,”
and similar expressions to identify forward-looking statements.



BUSINESS OVERVIEW



We were incorporated on March 26, 2007
under the laws of Nevada. Our activities have been limited to develop our business plan. We intend to sell medical devices with
an emphasis on portable medical devices designed for home treatments. Our initial focus will be in the northern regions of China.
We intend to seek strategic relationships with medical device manufacturers both in China and North America with the aim to be
their sales and distribution agent in Northern China. We also intend to assist Chinese medical device manufacturers on the development
of the North American market. Eventually, we may seek to acquire an existing medical device manufacturer to enhance our operations.



Our internal marketing research indicates
that the population in Northern China is often subject to ordinary and ineradicable illness due to the geographic and climate factors
of the region. We believe the local health care system is not postured to provide home medical devices to those in need in a timely
manner. We believe that current enterprises employ poor marketing techniques and have not exploited the potential market for medical
devices. We intend to implement a strong marketing program and establish our brand. We intend to conduct detailed research to understand
the purchasing behavior in Northern China which will be followed by an advertising regime consisting of TV advertisement, outdoor
advertisement, promotions in shopping malls and other methods of advertising.



In addition to implementing a strong marketing
and branding campaign, we intend to establish multiple venues for the sale of our products including an e-commerce platform, establish
a sales network in major cities and cooperate with local shops and business entities to sell our products.



We intend to seek and obtain marketing
agreements and licenses from various sources so we can in turn sell home medical devices in the Northern China region. We will
focus on both American and Chinese medical device manufacturers with the goal being a marketing or sales agreement that allows
us to market their products. We expect any agreements we may enter will provide us a reasonable commission for product sales.



We have initiated questionnaires and market
sampling to determine consumer demands for home medical devices in Northern China. Once our market analysis is complete, we intend
to acquire sales licenses to the products our research indicates is most in demand.



Once we have obtained marketing and sales
agreements, we intend to promote our products through a number of venues. We have commenced efforts to establish an electronic
commerce platform for promotion and sales of products through the Internet. We have also begun to design advertisements for our
products which will be posted on websites established by professionals in the medical communities as well as for use in television
and outdoor media advertisements. We hope to establish relationships with such prominent Chinese advertisers such as Acorn International,
Inc. and Focus Media Advertisement Col., Ltd. to promote the sales of various healthcare medical devices.



We further intend to offer our services
as a consultant to current Chinese medical device manufacturers whereby we would assist companies on the development of markets
in North America, application of relevant patent rights and approval documents. Additionally, we will offer consulting services
for medical device market promotion and planning.



We intend to initially target three to
five medical and healthcare manufacturers in Northern China with capacity and brand recognition and seek to enter consulting arrangements.
We would provide such manufacturers with long-term consultation services for management and product promotion. We expect such services
will include advertising and public relations for the targeted brand, construction of sales nets and tunnels and sales team training.



At some point in the future, once operations
have commenced and the company is positioned favorably, we may consider acquiring a business or businesses that complement our
business model.





14







RESULTS OF OPERATIONS



For the three months ended June 30, 2013 and 2012



We have experienced
losses since inception. We generated $0 in revenues from operations for the three months ended June 30, 2013 and June 30, 2012
Expenses for the three months ended June 30, 2013 and 2012 were $6,724 and $6,208 respectively consisted of office rent, office
expenses and professional fees.



For the
six months ended June 30, 2013 and 2012



The Company
generated $0 in revenues from operations for the six months ended June 30, 2013 and June 30, 2012. Expenses for the six months
ended June 30, 2013 were $14, 988 which consisted of office rent, office expenses and professional fees giving us a net loss of
$14,988. For the same period in 2012, our expenses were $8,623 consisting of office rent, office expenses, and professional fees
resulting in a net loss of $8,623 from operation.



CAPITAL RESOURCES AND LIQUIDITY



At June 30,
2013 we had $89 in available cash on hand which is our only asset at this time. We had liabilities of $20,768 consisting of $17,868
in accounts payable and accrued expenses and a loan of $2,900 for a total of $20,768.



GOING CONCERN



The Company incurred
net losses of $6,724 for the three months ended June 30, 2013, and $14,988 for the six months June 30, 2013. In addition, the
Company had a working capital deficiency of $20,679 and a stockholders' deficiency of $20,679 at June 30, 2013. These factors
raise substantial doubt about the Company's ability to continue as a going concern.



There can be no assurance that sufficient
funds required during the next year or thereafter will be generated from operations or that funds will be available from external
sources such as debt or equity financings or other potential sources. The lack of additional capital resulting from the inability
to generate cash flow from operations or to raise capital from external sources would force the Company to substantially curtail
or cease operations and would, therefore, have a material adverse effect on its business. Furthermore, there can be no assurance
that any such required funds, if available, will be available on attractive terms or that they will not have a significant dilutive
effect on the Company's existing stockholders.



The accompanying financial statements do not include any adjustments related
to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result
should the Company be unable to continue as a going concern.



During the period March 26, 2007 (inception) through June
30, 2013, the Company relied heavily for its financing needs on its CEO/director, Mr. Wu, Jinzhao.



NEED FOR ADDITIONAL
FINANCING



Costs associated with being a public company
are much higher than those of a private company. China Northern, a new start-up in early development, has chosen public registration
before the business has developed a predictable cash flow. There are present registration expenses and future legal and accounting
expenses, future reporting requirements to the SEC, future exchange listing requirements, and future investor relation costs that
must be borne by a public company but not by a private company. These costs can be a burdensome expense which could adversely
affect our financial survival. The ongoing regulatory costs, reporting requirements, and management details, which must be met
when registering and maintaining a public company, may make the economic viability of China Northern very doubtful.



We have no
material commitments for the next twelve months. In the past we have relied on advances from our president to cover our operating
costs. Management anticipates that they have sufficient capital to meet our needs through the next 12 months. However, there can
be no assurances to that effect. Our need for capital may change dramatically if we acquire an interest in a business opportunity
during that period. At present, we have no understandings, commitments or agreements with respect to the acquisition of any business
venture, and there can be no assurance that we will identify a business venture suitable for acquisition in the future. Further,
we cannot assure that we will be successful in consummating any acquisition on favorable terms or those we will be able to profitably
manage any business venture we acquire. Should we require additional capital, we may seek additional advances from officers, sell
common stock or find other forms of debt financing.





15







CRITICAL ACCOUNTING POLICIES



Our financial statements and related public
financial information are based on the application of accounting principles generally accepted in the United States (“GAAP”).
GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have
an impact on the assets, liabilities, revenue and expense amounts reported. These estimates can also affect supplemental information
contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe
our use if estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base
our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances.
Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant
estimates made during the preparation of our financial statements.



Our significant accounting policies are
summarized in Note 5 of our financial statements for the quarter ended June 30, 2013. While all these significant accounting policies
impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined to
be critical are those policies that have the most significant impact on our financial statements and require management to use
a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given
current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause
effect on our consolidated results of operations, financial position or liquidity for the periods presented in this report.



RECENT ACCOUNTING PRONOUNCEMENTS



In January 2013, the Financial Accounting
Standards Board (“FASB”) amended its guidance on the presentation of comprehensive income. Under the amended guidance,
an entity must present information regarding reclassification adjustments from accumulated other comprehensive income in a single
note or on the face of the financial statements. This is required for both annual and interim reporting. The amendment becomes
effective for reporting periods beginning after December 15, 2012 and is applied prospectively. Early adoption is permitted. The
Company has elected to adopt this guidance during the year ended December 31, 2012. This guidance did not have an impact on the
Company’s consolidated financial position, results of operations or cash flows as it is disclosure-only in nature.



In
July 2012, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update No. 2012-02 (“ASU
2011-12”), Testing Indefinite-Lived Intangible Assets for Impairment. Under this standard, entities testing long-lived intangible
assets for impairment now have an option of performing a qualitative assessment to determine whether further impairment testing
is necessary. If an entity determines, on the basis of qualitative factors, that the fair value of the indefinite-lived intangible
asset is more-likely-than-not less than the carrying amount, the existing quantitative impairment test is required. Otherwise,
no further impairment testing is required. This ASU is effective beginning January 1, 2013, with early adoption permitted under
certain conditions. The adoption of this standard did not have a material impact on the Company’s financial position, results
of operations, and cash flows.



OFF BALANCE SHEET ARRANGEMENTS



We do not have any off-balance sheet arrangements,
financings, or other relationships with unconsolidated entities or other persons, also known as “special purpose entities”
(SPEs).



Item 3. Quantitative and Qualitative Disclosures About Market
Risk.



Not applicable because we are a smaller reporting company.



Item 4. Controls and Procedures.



(a) Evaluation of disclosure controls
and procedures. Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), the
Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief
Executive Officer (“CEO”), also the Chief Financial Officer (“CFO”) (the Company’s principal financial
and accounting officer), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule
13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s
CEO and CFO concluded that the Company’s disclosure controls and procedures are effective to ensure that information required
to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed,
summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated
and communicated to the Company’s management, including the Company’s CEO and CFO, as appropriate, to allow timely
decisions regarding required disclosure.



(b) Changes in internal control over
financial reporting. There have been no changes in our internal control over financial reporting that occurred during the last
quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.





16







PART II - OTHER INFORMATION



Item 1. Legal Proceedings



From time to time, the Company may become
involved in litigation relating to claims arising out of its operations in the normal course of business. We are not involved in
any pending legal proceeding or litigation and, to the best of our knowledge, no governmental authority is contemplating any proceeding
to which we are a party or to which any of our properties is subject, which would reasonably be likely to have a material adverse
effect on the Company.



Item 1A. Risk Factors.



Smaller reporting companies are not required to provide the
information required by this item.



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



None.



Item 3. Defaults Upon Senior Securities.



None.



Item 4. Mine Safety Disclosures.



Not applicable.



Item 5. Other Information.



None.



Item 6. Exhibits.



|Exhibit Number |  | Description                                                                                                                                                                               
|-------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.1           |  | Certification of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|32.1+          |  | Certification of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 
|99.1           |  | Temporary Hardship Exemption Provided by Rule 201                                                                                                                                         
|101.INS*       |  | XBRL Instance Document                                                                                                                                                                    
|101.SCH*       |  | XBRL Taxonomy Schema                                                                                                                                                                      
|101.CAL*       |  | XBRL Taxonomy Calculation Linkbase                                                                                                                                                        
|101.DEF*       |  | XBRL Taxonomy Definition Linkbase                                                                                                                                                         
|101.LAB*       |  | XBRL Taxonomy Label Linkbase                                                                                                                                                              
|101.PRE*       |  | XBRL Taxonomy Presentation Linkbase                                                                                                                                                       



* To be filed by Amendment. XBRL
(Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or
prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these
sections.

+ In accordance with SEC Release 33-8238, Exhibit 32.1 is being
furnished and not filed.





17







SIGNATURES



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



|                      | CHINA NORTHERN MEDICAL DEVICE, INC.
|--------------------- | -----------------------------------
|                      |                                    
|Date: August 14, 2013 | By:                                
|                      |                                    
|                      |                                    
|                      |                                    
|                      |                                    







































18