| Delaware                                         | 75-2926439               |
|--------------------------------------------------|--------------------------|
| (State or other jurisdiction      | (I.R.S. Employer    |
| of incorporation or organization) | Identification No.) |

----

| Large Accelerated Filer   ̈                                                                                      | Accelerated Filer   ̈   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|
| Non-Accelerated Filer   ̈ (Do not check if a smaller reporting company)  | Smaller Reporting Company x |

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|                                                                                                                       | PAGE   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|
| PART I - FINANCIAL INFORMATION                                                                                                  | 3      |
|                                                                                                                            |   |
| ITEM 1. FINANCIAL STATEMENTS                                                                                                    | 3      |
|                                                                                                                            |   |
| Consolidated Balance Sheets as of March 31, 2011 (Unaudited) and December 31, 2010 (Audited)                                    | 3      |
|                                                                                                                            |   |
| Consolidated Statements of Income and Other Comprehensive Income for the Three Months Ended March 31, 2011 and 2010 (Unaudited) | 4      |
|                                                                                                                            |   |
| Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2011 and 2010 (Unaudited)                            | 5      |
|                                                                                                                            |   |
| Notes to Consolidated Financial Statements (Unaudited)                                                                          | 6      |
|                                                                                                                            |   |
| ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                             | 20     |
|                                                                                                                       |   |
| ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                              | 27     |
|                                                                                                                            |   |
| ITEM 4. CONTROLS AND PROCEDURES                                                                                                 | 27     |
|                                                                                                                            |   |
| PART II - OTHER INFORMATION                                                                                                     | 27     |
|                                                                                                                            |   |
| ITEM 6. EXHIBITS                                                                                                                | 27     |

----

|                                                                                                                                                                     |   | March 31, |        |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
|                                                                                                                                                                     |   | 2011           |        |   | 2010              |   |
|                                                                                                                                                                     |   | (Unaudited)    |        |   | (Audited)         |   |
| ASSETS                                                                                                                                                                   |   |           |        |   |              |   |
|                                                                                                                                                                     |   |           |        |   |              |   |
| CURRENT ASSETS:                                                                                                                                                          |   |           |        |   |              |   |
| Cash                                                                                                                                                                     |   | $              | 9,691,411   |   |              | $      | 10,155,522 |   |
| Accounts receivable, trade-related parties, net of allowance for doubtful accounts of $4,152,284 and $3,869,617 as of March 31, 2011 and December 31, 2010, respectively |   |           | 11,279,779  |   |              |   | 10,012,861 |   |
| Inventories                                                                                                                                                              |   |           | 6,801,856   |   |              |   | 5,703,349 |   |
| Other receivables                                                                                                                                                        |   |           | 942,959     |   |              |   | 1,045,952 |   |
| Other receivables-related parties                                                                                                                                        |   |           | 17,327,387  |   |              |   | 17,376,522 |   |
| Employee advances                                                                                                                                                        |   |           | 127,314     |   |              |   | 170,842 |   |
| Prepaid expenses, net                                                                                                                                                    |   |           | 356,817     |   |              |   | 415,208 |   |
| Prepaid taxes                                                                                                                                                            |   |           | 3,689,268   |   |              |   | 3,646,140 |   |
| Total current assets                                                                                                                                                     |   |           | 50,216,791  |   |              |   | 48,526,396 |   |
|                                                                                                                                                                     |   |           |        |   |              |   |   |   |
| PROPERTY, PLANT AND EQUIPMENT, net                                                                                                                                       |   |           | 72,098,917  |   |              |   | 72,037,542 |   |
|                                                                                                                                                                     |   |           |        |   |              |   |   |   |
| OTHER ASSETS:                                                                                                                                                            |   |           |        |   |              |   |   |   |
| Construction in progress                                                                                                                                                 |   |           | 130,736,007 |   |              |   | 128,715,283 |   |
| Construction deposits                                                                                                                                                    |   |           | 20,177,749  |   |              |   | 12,490,855 |   |
| Intangible assets, net                                                                                                                                                   |   |           | 12,991,801  |   |              |   | 12,987,000 |   |
| Other assets                                                                                                                                                             |   |           | 10,302,761  |   |              |   | 10,721,040 |   |
| Total other assets                                                                                                                                                       |   |           | 174,208,318 |   |              |   | 164,914,178 |   |
|                                                                                                                                                                     |   |           |        |   |              |   |   |   |
| Total assets                                                                                                                                                             |   | $              | 296,524,026 |   |              | $      | 285,478,116 |   |
|                                                                                                                                                                     |   |           |        |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                     |   |           |        |   |              |   |   |   |
|                                                                                                                                                                     |   |           |        |   |              |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                     |   |           |        |   |              |   |   |   |
| Accounts payable                                                                                                                                                         |   | $              | 14,719,467  |   |              | $      | 14,120,791 |   |
| Advances from customers-related parties                                                                                                                                  |   |           | 7,546,016   |   |              |   | 8,688,877 |   |
| Wages and benefits payable                                                                                                                                               |   |           | 1,584,986   |   |              |   | 1,613,782 |   |
| Short-term debt                                                                                                                                                          |   |           | 7,610,000   |   |              |   | 3,024,800 |   |
| Income taxes payable                                                                                                                                                     |   |           | 717,129     |   |              |   | 490,782 |   |
| Contractor deposits                                                                                                                                                      |   |           | 195,485     |   |              |   | 209,376 |   |
| Contractor payables                                                                                                                                                      |   |           | 26,888,982  |   |              |   | 28,134,711 |   |
| Other payables                                                                                                                                                           |   |           | 1,109,025   |   |              |   | 1,113,416 |   |
| Other payables-related parties                                                                                                                                           |   |           | 5,337,033   |   |              |   | 1,417,516 |   |
| Total current liabilities                                                                                                                                                |   |           | 65,708,123  |   |              |   | 58,814,051 |   |
|                                                                                                                                                                     |   |           |        |   |              |   |   |   |
| NON-CURRENT LIABILITIES                                                                                                                                                  |   |           |        |   |              |   |   |   |
| Long term debt                                                                                                                                                           |   |           | 18,568,400  |   |              |   | 18,451,280 |   |
| Deferred income                                                                                                                                                          |   |           | 11,400,523  |   |              |   | 11,473,853 |   |
| Total non current liabilities                                                                                                                                            |   |           | 29,968,923  |   |              |   | 29,925,133 |   |
|                                                                                                                                                                     |   |           |        |   |              |   |   |   |
| Total liabilities                                                                                                                                                        |   |           | 95,677,046  |   |              |   | 88,739,184 |   |
|                                                                                                                                                                     |   |           |        |   |              |   |   |   |
| EQUITY:                                                                                                                                                                  |   |           |        |   |              |   |   |   |
| Shareholders' equity of the Company:                                                                                                                                     |   |           |        |   |              |   |   |   |
| Common stock, $0.001 par value, 250,000,000 shares authorized, 71,333,586 issued and outstanding, respectively                                                           |   |           | 71,334      |   |              |   | 71,334 |   |
| Paid-in-capital                                                                                                                                                          |   |           | 18,428,796  |   |              |   | 18,349,908 |   |
| Statutory reserves                                                                                                                                                       |   |           | 16,465,144  |   |              |   | 16,465,144 |   |
| Retained earnings                                                                                                                                                        |   |           | 130,711,559 |   |              |   | 127,957,951 |   |
| Accumulated other comprehensive income                                                                                                                                   |   |           | 24,405,648  |   |              |   | 23,393,626 |   |
| Total shareholders' equity of the Company                                                                                                                                |   |           | 190,082,481 |   |              |   | 186,237,963 |   |
| Noncontrolling interest                                                                                                                                                  |   |           | 10,764,499  |   |              |   | 10,500,969 |   |
| Total equity                                                                                                                                                             |   |           | 200,846,980 |   |              |   | 196,738,932 |   |
| Total liabilities and equity                                                                                                                                             |   | $              | 296,524,026 |   |              | $      | 285,478,116 |   |

----

|                                                             |   | Three months ended March 31, |       |
|------------------------------------------------------------------|--------|--------------------------------------------------|------------|
|                                                             |   | 2011                                             |       |   | 2010 |   |
| REVENUE-RELATED PARTIES                                          |   | $                                                | 13,050,225 |   |   | $ | 11,403,363 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| COST OF SALES-RELATED PARTIES                                    |   |                                             | 4,136,399  |   |   |   | 3,440,881 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| GROSS PROFIT                                                     |   |                                             | 8,913,826  |   |   |   | 7,962,482 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES                     |   |                                             | 4,870,886  |   |   |   | 3,497,547 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| INCOME FROM OPERATIONS                                           |   |                                             | 4,042,940  |   |   |   | 4,464,935 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| Interest expense                                                 |   |                                             | (131,636   | ) |   |   | - |   |
| Interest income                                                  |   |                                             | 7,992      |   |   |   | 1,872 |   |
| Other expense                                                    |   |                                             | (529,185   | ) |   |   | (253,710 | ) |
| OTHER EXPENSE, NET                                               |   |                                             | (652,829   | ) |   |   | (251,838 | ) |
|                                                             |   |                                             |       |   |   |   |   |   |
| INCOME BEFORE PROVISION FOR INCOME TAXES                         |   |                                             | 3,390,111  |   |   |   | 4,213,097 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| PROVISION FOR INCOME TAXES                                       |   |                                             | 446,299    |   |   |   | 609,502 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| NET INCOME                                                       |   |                                             | 2,943,812  |   |   |   | 3,603,595 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| LESS: Net income attributable to the noncontrolling interest     |   |                                             | (190,204   | ) |   |   | (342,057 | ) |
|                                                             |   |                                             |       |   |   |   |   |   |
| NET INCOME ATTRIBUTABLE TO THE COMPANY                           |   |                                             | 2,753,608  |   |   |   | 3,261,538 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME:                                      |   |                                             |       |   |   |   |   |   |
| Foreign currency translation adjustment                          |   |                                             | 1,012,022  |   |   |   | 14,970 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY                 |   |                                             | 3,765,630  |   |   |   | 3,276,508 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| COMPREHENSIVE INCOME ATTRIBUTABLE TO THE NONCONTROLLING INTEREST |   |                                             | 257,361    |   |   |   | 343,398 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| COMPREHENSIVE INCOME                                             |   | $                                                | 4,022,991  |   |   | $ | 3,619,906 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| EARNINGS PER SHARE, BASIC AND DILUTED                            |   | $                                                | 0.04       |   |   | $ | 0.05 |   |
|                                                             |   |                                             |       |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF SHARES, BASIC AND DILUTED             |   |                                             | 71,333,586 |   |   |   | 71,333,586 |   |

----

|                                                                                    |   | Three months ended March 31, |        |
|-----------------------------------------------------------------------------------------|--------|--------------------------------------------------|-------------|
|                                                                                    |   | 2011                                             |        |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                   |   |                                             |        |   |   |   |
| Net income                                                                              |   | $                                                | 2,943,812   |   |   | $ | 3,603,595 |   |
| Adjustments to reconcile net income to cash provided by (used in) operating activities: |   |                                             |        |   |   |   |   |   |
| Deferred income                                                                         |   |                                             | (145,776    | ) |   |   | - |   |
| Provision for doubtful accounts                                                         |   |                                             | 257,427     |   |   |   | 202,247 |   |
| Depreciation                                                                            |   |                                             | 1,117,611   |   |   |   | 417,469 |   |
| Amortization                                                                            |   |                                             | 85,020      |   |   |   | 83,557 |   |
| loss on assets written off                                                              |   |                                             | 655,611     |   |   |   | - |   |
| Gain on sale of assets                                                                  |   |                                             | -           |   |   |   | (15,082 | ) |
| Rental expense borne by a related party                                                 |   |                                             | 84,834      |   |   |   | 81,749 |   |
| (Increase) decrease in assets:                                                          |   |                                             |        |   |   |   |   |   |
| Accounts receivable, trade-related parties                                              |   |                                             | (1,457,625  | ) |   |   | 4,933,543 |   |
| Other receivables                                                                       |   |                                             | 109,344     |   |   |   | 93,577 |   |
| Other receivables-related parties                                                       |   |                                             | 141,586     |   |   |   | (1,200,159 | ) |
| Inventories                                                                             |   |                                             | (1,050,293  | ) |   |   | 304,560 |   |
| Employee advances                                                                       |   |                                             | 44,495      |   |   |   | 13,935 |   |
| Prepaid expense                                                                         |   |                                             | 60,774      |   |   |   | 64,017 |   |
| Increase (decrease) in liabilities:                                                     |   |                                             |        |   |   |   |   |   |
| Accounts payable                                                                        |   |                                             | 500,706     |   |   |   | (819,926 | ) |
| Advances from customers-related parties                                                 |   |                                             | (1,194,866  | ) |   |   | 4,034,448 |   |
| Wages and benefits payable                                                              |   |                                             | (38,897     | ) |   |   | (416,798 | ) |
| Other taxes payable                                                                     |   |                                             | 202,713     |   |   |   | 550,140 |   |
| Other payables                                                                          |   |                                             | (11,159     | ) |   |   | 19,487 |   |
| Other payables-related parties                                                          |   |                                             | 3,900,777   |   |   |   | 1,079,414 |   |
| Net cash provided by operating activities                                               |   |                                             | 6,206,094   |   |   |   | 13,029,773 |   |
|                                                                                    |   |                                             |        |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                   |   |                                             |        |   |   |   |   |   |
| Investment in Life Resources                                                            |   |                                             | -           |   |   |   | 3,000,000 |   |
| Proceeds from disposal of a subsidiary                                                  |   |                                             | -           |   |   |   | 700,000 |   |
| Construction deposits                                                                   |   |                                             | (7,783,013  | ) |   |   | (562,642 | ) |
| Contractor deposits                                                                     |   |                                             | (15,180     | ) |   |   | - |   |
| Addition to construction in progress                                                    |   |                                             | (2,729,380  | ) |   |   | (9,112,590 | ) |
| Equipment deposits                                                                      |   |                                             | (427,179    | ) |   |   | (1,558,192 | ) |
| Proceeds from sales of properties                                                       |   |                                             | -           |   |   |   | 2,621,021 |   |
| Purchase of equipment and automobiles                                                   |   |                                             | (163,060    | ) |   |   | (88,505 | ) |
| Net cash used in investing activities                                                   |   |                                             | (11,117,812 | ) |   |   | (5,000,908 | ) |
|                                                                                    |   |                                             |        |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                   |   |                                             |        |   |   |   |   |   |
| Proceed from short term debt                                                            |   |                                             | 4,554,000   |   |   |   | - |   |
| Net cash provided by financing activities                                               |   |                                             | 4,554,000   |   |   |   | - |   |
|                                                                                    |   |                                             |        |   |   |   |   |   |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH                                                 |   |                                             | (106,393    | ) |   |   | (3,895 | ) |
|                                                                                    |   |                                             |        |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH                                                         |   |                                             | (464,111    | ) |   |   | 8,024,970 |   |
|                                                                                    |   |                                             |        |   |   |   |   |   |
| CASH, beginning of period                                                               |   |                                             | 10,155,522  |   |   |   | 1,848,328 |   |
|                                                                                    |   |                                             |        |   |   |   |   |   |
| CASH, end of period                                                                     |   | $                                                | 9,691,411   |   |   | $ | 9,873,298 |   |
|                                                                                    |   |                                             |        |   |   |   |   |   |
| Supplemental disclosures of cash flow information                                       |   |                                             |        |   |   |   |   |   |
| Cash paid during the period for:                                                        |   |                                             |        |   |   |   |   |   |
| Interest                                                                                |   | $                                                | 342,018     |   |   | $ | - |   |
| Income taxes                                                                            |   | $                                                | 223,653     |   |   | $ | 213,625 |   |

----

----

| Subsidiary            |   | Jurisdiction of Formation |   | % Ownership |   |
|-----------------------|--------|-------------------------------------|--------|------------------|--------|
| Tianshi Holdings |   | British Virgin Islands    |   |             | 100.0  | % |
| Biological            |   | P.R.C.                              |   |             | 80.0   | % |
| Life Resources        |   | P.R.C.                              |   |             | 100.0  | % |

----

|                                                   |   | Balance at               |      |   | Increase of provision |   |    | Balance at         |   |
|--------------------------------------------------------|--------|-------------------------------|-----------|--------|---------------------------------|--------|---------|-------------------------|--------|
|                                                   |   | Beginning of Period |      |   | for Doubtful Accounts |   |    | End of Period |   |
| Three month period ended March 31, 2011                |   |                          |      |   |                            |   |    |                    |   |
| Reserves and allowances deducted from assets accounts: |   |                          |      |   |                            |   |    |                    |   |
| Allowance for doubtful accounts:                       |   | $                             | 3,869,617 |   |                            | $      | 282,667 |                    |   | $ | 4,152,284 |   |
|                                                   |   |                          |      |   |                            |   |    |                    |   |   |   |   |
| Three month period ended March 31, 2010                |   |                          |      |   |                            |   |    |                    |   |   |   |   |
| Reserves and allowances deducted from assets accounts: |   |                          |      |   |                            |   |    |                    |   |   |   |   |
| Allowance for doubtful accounts:                       |   | $                             | 1,419,178 |   |                            | $      | 202,441 |                    |   | $ | 1,621,619 |   |

----

|                                                   |   | Balance at   |      |   |                            |   |   |                     |   |
|--------------------------------------------------------|--------|-------------------|-----------|--------|---------------------------------|--------|--------|--------------------------|--------|
|                                                   |   | Beginning of |      |   | Increase of provision |   |   | Balance at End |   |
|                                                   |   | Period            |      |   | for Doubtful Accounts |   |   | of Period           |   |
| Three month period ended March 31, 2011                |   |              |      |   |                            |   |   |                     |   |
| Reserves and provisions deducted from assets accounts: |   |              |      |   |                            |   |   |                     |   |
| Provision for prepaid expenses:                        |   | $                 | 1,056,551 |   |                            | $      | 6,706  |                     |   | $ | 1,063,257 |   |
|                                              |   |              |      |   |                            |   |   |                     |   |   |   |   |
| Three month period ended March 31, 2010                |   |              |      |   |                            |   |   |                     |   |   |   |   |
| Reserves and provisions deducted from assets accounts: |   |              |      |   |                            |   |   |                     |   |   |   |   |
| Provision for prepaid expenses:                        |   | $                 | 1,018,474 |   |                            | $      | 139    |                     |   | $ | 1,018,613 |   |

|                                     |         | Estimated Useful Life |
|------------------------------------------|--------------|---------------------------------|
| Buildings and improvements               |         | 20 years                        |
| Machinery and equipment                  |         | 10 years                        |
| Computer, office equipment and furniture |         | 5 years                         |
| Automobiles                              |    | 5 years                         |

----

----

----

|                   |   | March 31, |      |   | December 31, |   |
|------------------------|--------|----------------|-----------|--------|-------------------|--------|
|                   |   | 2011           |      |   | 2010              |   |
|                   |   |           |      |   |              |   |
| Raw materials          |   | $              | 1,812,201 |   |              | $      | 1,392,141 |   |
| Packaging material     |   |           | 613,024   |   |              |   | 479,651 |   |
| Miscellaneous supplies |   |           | 1,702,383 |   |              |   | 1,860,462 |   |
| Work in process        |   |           | 632,593   |   |              |   | 640,664 |   |
| Finished goods         |   |           | 2,041,655 |   |              |   | 1,330,431 |   |
| Total                  |   | $              | 6,801,856 |   |              | $      | 5,703,349 |   |

|                        |   | March 31, |    |   | December 31, |   |
|-----------------------------|--------|----------------|---------|--------|-------------------|--------|
|                        |   | 2011           |    |   | 2010              |   |
| Advance to suppliers        |   | $              | 354,817 |   |              | $      | 412,458 |   |
| Short-term prepaid expenses |   |           | 2,000   |   |              |   | 2,750 |   |
| Total                       |   | $              | 356,817 |   |              | $      | 415,208 |   |

|                                        |   | March 31, |      |   | December 31, |   |
|---------------------------------------------|--------|----------------|-----------|--------|-------------------|--------|
|                                        |   | 2011           |      |   | 2010              |   |
| Prepaid value added taxes                   |   | $              | 3,876,716 |   |              | $      | 3,822,250 |   |
| Taxes payable (except income taxes payable) |   |           | (187,448  | )      |              |   | (176,110 | ) |
| Total                                       |   | $              | 3,689,268 |   |              | $      | 3,646,140 |   |

----

|                               |   | March 31, |        |   | December 31, |   |
|------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
|                               |   | 2011           |        |   | 2010              |   |
| Buildings and improvements         |   | $              | 64,310,041  |   |              | $      | 63,687,629 |   |
| Office equipment                   |   |           | 599,314     |   |              |   | 487,179 |   |
| Computer equipment and software    |   |           | 3,196,567   |   |              |   | 2,855,978 |   |
| Machinery and equipment            |   |           | 15,497,881  |   |              |   | 15,325,589 |   |
| Automobiles                        |   |           | 5,029,852   |   |              |   | 4,998,126 |   |
| Total                              |   |           | 88,633,655  |   |              |   | 87,354,501 |   |
| Less: accumulated depreciation     |   |           | (16,534,738 | )      |              |   | (15,316,959 | ) |
| Property, plant and equipment, net |   | $              | 72,098,917  |   |              | $      | 72,037,542 |   |

|                          |   | March 31, |       |   | December 31, |   |
|-------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                          |   | 2011           |       |   | 2010              |   |
| Land use rights               |   | $              | 14,081,002 |   |              | $      | 13,992,186 |   |
| Other intangible assets       |   |           | 358,255    |   |              |   | 355,996 |   |
| Less accumulated amortization |   |           | (1,447,456 | )      |              |   | (1,361,182 | ) |
| Intangible assets, net        |   | $              | 12,991,801 |   |              | $      | 12,987,000 |   |

| Estimated amortization expense for |   |   |       |
|---------------------------------------------------|--------|--------|------------|
| the year ending December 31,  |   | Amount |       |
| 2011                                              |   | $      | 308,577    |   |
| 2012                                              |   | $      | 308,577    |   |
| 2013                                              |   | $      | 297,105    |   |
| 2014                                              |   | $      | 296,450    |   |
| 2015                                              |   | $      | 294,747    |   |
| 2016 and thereafter                               |   | $      | 11,481,544 |   |

----

| Obtained date |   | October 11, 2010 |      |   | November 12, 2010 |   |      | December 10, 2010 |   |
|--------------------|--------|----------------------------|-----------|--------|-----------------------------|--------|-----------|-----------------------------|--------|
| Amount             |   | $                          | 9,893,000 |   |                        | $      | 6,088,000 |                        |   | $ | 2,587,400 |   |

| Date   |   | October 8, 2011 |      |   | October 8, 2012 |   |      | October 8, 2013 |   |
|--------|--------|---------------------------|-----------|--------|---------------------------|--------|-----------|---------------------------|--------|
| Amount |   | $                         | 4,566,000 |   |                      | $      | 9,132,000 |                      |   | $ | 16,742,000 |   |

----

|                    |   | Three months ended March 31, |       |
|-------------------------|--------|--------------------------------------------------|------------|
|                    |   | 2011                                             |       |   | 2010 |   |
| Revenue-related parties |   | $                                                | 13,050,225 |   |   | $ | 11,403,363 |   |

|                                                                                                                                                                           |   | March 31, 2011 |       |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
| Accounts receivable, trade–related parties, net of allowance for doubtful accounts of $4,152,284 and $3,869,617 as of March 31, 2011 and December 31, 2010, respectively |   | $                        | 11,279,779 |   |                        | $      | 10,012,861 |   |
| Other receivables–related parties                                                                                                                                        |   | $                        | 17,327,387 |   |                        | $      | 17,376,522 |   |
| Advances from customers–related parties                                                                                                                                  |   | $                        | 7,546,016  |   |                        | $      | 8,688,877 |   |
| Other payables–related parties                                                                                                                                           |   | $                        | 5,337,033  |   |                        | $      | 1,417,516 |   |

|                       |   | Three months ended March 31, |       |
|----------------------------|--------|--------------------------------------------------|------------|
|                       |   | 2011                                             |       |   | 2010 |   |
| Tianshi Engineering        |   | $                                                | 8,218,691  |   |   | $ | 6,783,273 |   |
| Overseas Related Companies |   |                                             | 4,831,534  |   |   |   | 4,620,090 |   |
| Total                      |   | $                                                | 13,050,225 |   |   | $ | 11,403,363 |   |

----

|                            |   | March 31, 2011 |       |   | December 31, 2010 |   |
|---------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
| Tianshi Engineering             |   | $                        | 984,290    |   |                        | $      | 1,803,688 |   |
| Overseas Related Companies      |   |                     | 14,447,773 |   |                        |   | 12,078,790 |   |
| Allowance for Doubtful Accounts |   |                     | (4,152,284 | )      |                        |   | (3,869,617 | ) |
| Total                           |   | $                        | 11,279,779 |   |                        | $      | 10,012,861 |   |

|                                             |   | March 31, |       |   | December 31, |   |
|--------------------------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                                             |   | 2011           |       |   | 2010              |   |
| Tiens Life Science Co., Ltd.                     |   | $              | 11,598,376 |   |              | $      | 11,525,219 |   |
| Tianshi Group                                    |   |           | 3,002,895  |   |              |   | - |   |
| Tianshi Engineering                              |   |           | 2,470,399  |   |              |   | 5,603,197 |   |
| All-Legend Property Service (Tianjin) Co., Ltd.  |   |           | 161,461    |   |              |   | 155,798 |   |
| All-Legend Hotel Co., Ltd.                       |   |           | 38,627     |   |              |   | 37,856 |   |
| Tianshi Yinshi Hotel                             |   |           | 38,050     |   |              |   | 37,810 |   |
| Tianshi Indonesia Logistic & Trade Co., Ltd. |   |           | 9,865      |   |              |   | 9,902 |   |
| Tianshi Taijisheng Health Management Co., Ltd.   |   |           | 5,735      |   |              |   | 5,459 |   |
| Shengshi Real Estate Development                 |   |           | 1,201      |   |              |   | 1,072 |   |
| Others                                           |   |           | 778        |   |              |   | 209 |   |
| Total                                            |   | $              | 17,327,387 |   |              | $      | 17,376,522 |   |

----

|                                                 |   | March 31, 2011 |      |   | December 31, 2010 |   |
|------------------------------------------------------|--------|--------------------------|-----------|--------|-----------------------------|--------|
| Tiens Group                                          |   | $                        | 3,535,048 |   |                        | $      | 639,529 |   |
| Tianshi Engineering                                  |   |                     | 1,448,472 |   |                        |   | 431,400 |   |
| Tianshi Germany Co., Ltd.                            |   |                     | 105,654   |   |                        |   | 99,759 |   |
| Tianjin Tianshi Global International Trade Co., Ltd. |   |                     | 97,408    |   |                        |   | 96,794 |   |
| Tianyuan Capital Development Co., Ltd.               |   |                     | 84,359    |   |                        |   | 84,359 |   |
| Beijing All-Legend Travel Co., Ltd.                  |   |                     | 66,077    |   |                        |   | 65,660 |   |
| Tianshi Administrative Committee of Industrial Park  |   |                     | 15        |   |                        |   | 15 |   |
| Total                                                |   | $                        | 5,337,033 |   |                        | $      | 1,417,516 |   |

----

|                        |   | Three months ended March 31, |       |
|-----------------------------|--------|------------------------------|------------|
|                        |   | 2011                         |       |   | 2010 |   |
| Wellness products           |   | $                            | 12,087,841 |   |   | $ | 10,165,740 |   |
| Dietary supplement products |   |                         | 962,384    |   |   |   | 1,237,623 |   |
| Total                       |   | $                            | 13,050,225 |   |   | $ | 11,403,363 |   |

----

|                             |   | Three months ended March 31, |   |
|----------------------------------|--------|--------------------------------------------------|--------|
|                             |   | 2011                                             |   |   | 2010 |   |
|                             |   | Biological                                       |   |   | Life Resources |   |   | Biological |   |   | Life Resources |   |
| U.S. Statutory rate              |   |                                             | 34.0   | % |   |   | 34.0 | % |   |   | 34.0 | % |   |   | 34.0 | % |
| Foreign income not recognized in |   |                                             | (34.0  | ) |   |   | (34.0 | ) |   |   | (34.0 | ) |   |   | (34.0 | ) |
| China income taxes               |   |                                             | 25.0   |   |   |   | 25.0 |   |   |   | 25.0 |   |   |   | 25.0 |   |
| Effect of reduced tax rate       |   |                                             | (10.0  | ) |   |   | (12.5 | ) |   |   | (10.0 | ) |   |   | (12.5 | ) |
| Total provision for income taxes |   |                                             | 15.0   | % |   |   | 12.5 | % |   |   | 15.0 | % |   |   | 12.5 | % |

----

----

|                                                         |   | Three months ended March 31, |       |   |        |   |
|--------------------------------------------------------------|--------|--------------------------------------------------|------------|--------|-------------|--------|
|                                                         |   | 2011                                             |       |   | 2010        |   |   |   |   |
|                                                         |   | (Unaudited)                                      |       |   | (Unaudited) |   |   | Change |   |
| REVENUE-RELATED PARTIES                                      |   | $                                                | 13,050,225 |   |        | $      | 11,403,363 |   |   |   | 14.4 | % |
|                                                         |   |                                             |       |   |        |   |   |   |   |   |   |   |
| COST OF SALES                                                |   |                                             | 4,136,399  |   |        |   | 3,440,881 |   |   |   | 20.2 | % |
|                                                         |   |                                             |       |   |        |   |   |   |   |   |   |   |
| GROSS PROFIT                                                 |   |                                             | 8,913,826  |   |        |   | 7,962,482 |   |   |   | 11.9 | % |
|                                                         |   |                                             |       |   |        |   |   |   |   |   |   |   |
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES                 |   |                                             | 4,870,886  |   |        |   | 3,497,547 |   |   |   | 39.3 | % |
|                                                         |   |                                             |       |   |        |   |   |   |   |   |   |   |
| INCOME FROM OPERATIONS                                       |   |                                             | 4,042,940  |   |        |   | 4,464,935 |   |   |   | -9.5 | % |
|                                                         |   |                                             |       |   |        |   |   |   |   |   |   |   |
| Interest expense                                             |   |                                             | (131,636   | )      |        |   | - |   |   |   |   |   |
| Interest income                                              |   |                                             | 7,992      |   |        |   | 1,872 |   |   |   | 326.9 | % |
| Other expense                                                |   |                                             | (529,185   | )      |        |   | (253,710 | ) |   |   | 108.6 | % |
| OTHER EXPENSE, NET                                           |   |                                             | (652,829   | )      |        |   | (251,838 | ) |   |   | 159.2 | % |
|                                                         |   |                                             |       |   |        |   |   |   |   |   |   |   |
| INCOME BEFORE PROVISION FOR INCOME TAXES                     |   |                                             | 3,390,111  |   |        |   | 4,213,097 |   |   |   | -19.5 | % |
|                                                         |   |                                             |       |   |        |   |   |   |   |   |   |   |
| PROVISION FOR INCOME TAXES                                   |   |                                             | 446,299    |   |        |   | 609,502 |   |   |   | -26.8 | % |
|                                                         |   |                                             |       |   |        |   |   |   |   |   |   |   |
| NET INCOME                                                   |   |                                             | 2,943,812  |   |        |   | 3,603,595 |   |   |   | -18.3 | % |
|                                                         |   |                                             |       |   |        |   |   |   |   |   |   |   |
| LESS: Net income attributable to the noncontrolling interest |   |                                             | 190,204    |   |        |   | 342,057 |   |   |   | -44.4 | % |
|                                                         |   |                                             |       |   |        |   |   |   |   |   |   |   |
| NET INCOME ATTRIBUTABLE TO TIENS BIOTECH GROUP               |   | $                                                | 2,753,608  |   |        | $      | 3,261,538 |   |   |   | -15.6 | % |
|                                                         |   |                                             |       |   |        |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF SHARES, BASIC AND DILUTED         |   |                                             | 71,333,586 |   |        |   | 71,333,586 |   |   |   |   |   |
|                                                         |   |                                             |       |   |        |   |   |   |   |   |   |   |
| EARNINGS PER SHARE, BASIC AND DILUTED                        |   | $                                                | 0.04       |   |        | $      | 0.05 |   |   |   |   |   |

----

----

----

|                                                                                                                                                                           |   | March 31, 2011 |       |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
| Accounts receivable, trade–related parties, net of allowance for doubtful accounts of $4,152,284 and $3,869,617 as of March 31, 2011 and December 31, 2010, respectively |   | $                        | 11,279,779 |   |                        | $      | 10,012,861 |   |
| Other receivables–related parties                                                                                                                                        |   | $                        | 17,327,387 |   |                        | $      | 17,376,522 |   |
| Advances from customers–related parties                                                                                                                                  |   | $                        | 7,546,016  |   |                        | $      | 8,688,877 |   |
| Other payables–related parties                                                                                                                                           |   | $                        | 5,337,033  |   |                        | $      | 1,417,516 |   |

|                            |   | Three months ended March 31, |       |
|---------------------------------|--------|------------------------------|------------|
|                            |   | 2011                         |       |   | 2010 |   |
| Tianshi Engineering             |   | $                            | 8,218,691  |   |   | $ | 6,783,273 |   |
| Overseas Related Companies |   |                         | 4,831,534  |   |   |   | 4,620,090 |   |
| Total                           |   | $                            | 13,050,225 |   |   | $ | 11,403,363 |   |

|                            |   | March 31, 2011 |       |   | December 31, 2010 |   |
|---------------------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
| Tianshi Engineering             |   | $                        | 984,290    |   |                        | $      | 1,803,688 |   |
| Overseas Related Companies      |   |                     | 14,447,773 |   |                        |   | 12,078,790 |   |
| Allowance for Doubtful Accounts |   |                     | (4,152,284 | )      |                        |   | (3,869,617 | ) |
| Total                           |   | $                        | 11,279,779 |   |                        | $      | 10,012,861 |   |

----

|                                             |   | March 31, |       |   | December 31, |   |
|--------------------------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                                             |   | 2011           |       |   | 2010              |   |
| Tiens Life Science Co., Ltd.                     |   | $              | 11,598,376 |   |              | $      | 11,525,219 |   |
| Tianshi Group                                    |   |           | 3,002,895  |   |              |   | - |   |
| Tianshi Engineering                              |   |           | 2,470,399  |   |              |   | 5,603,197 |   |
| All-Legend Property Service (Tianjin) Co., Ltd.  |   |           | 161,461    |   |              |   | 155,798 |   |
| All-Legend Hotel Co., Ltd.                       |   |           | 38,627     |   |              |   | 37,856 |   |
| Tianshi Yinshi Hotel                             |   |           | 38,050     |   |              |   | 37,810 |   |
| Tianshi Indonesia Logistic & Trade Co., Ltd. |   |           | 9,865      |   |              |   | 9,902 |   |
| Tianshi Taijisheng Health Management Co., Ltd.   |   |           | 5,735      |   |              |   | 5,459 |   |
| Shengshi Real Estate Development                 |   |           | 1,201      |   |              |   | 1,072 |   |
| Others                                           |   |           | 778        |   |              |   | 209 |   |
| Total                                            |   | $              | 17,327,387 |   |              | $      | 17,376,522 |   |

----

|                                                 |   | March 31, 2011 |      |   | December 31, 2010 |   |
|------------------------------------------------------|--------|--------------------------|-----------|--------|-----------------------------|--------|
| Tiens Group                                          |   | $                        | 3,535,048 |   |                        | $      | 639,529 |   |
| Tianshi Engineering                                  |   |                     | 1,448,472 |   |                        |   | 431,400 |   |
| Tianshi Germany Co., Ltd.                            |   |                     | 105,654   |   |                        |   | 99,759 |   |
| Tianjin Tianshi Global International Trade Co., Ltd. |   |                     | 97,408    |   |                        |   | 96,794 |   |
| Tianyuan Capital Development Co., Ltd.               |   |                     | 84,359    |   |                        |   | 84,359 |   |
| Beijing All-Legend Travel Co., Ltd.                  |   |                     | 66,077    |   |                        |   | 65,660 |   |
| Tianshi Administrative Committee of Industrial Park  |   |                     | 15        |   |                        |   | 15 |   |
| Total                                                |   | $                        | 5,337,033 |   |                        | $      | 1,417,516 |   |

| Lease Agreement                                           |   | Monthly rent |   |
|----------------------------------------------------------------|--------|-------------------|--------|
|                                                           |   |              |   |
| Lease Agreement for Health Products Production Equipment       |   | $                 | 11,680 |   |
| Lease Agreement for Personal Care Product Production Equipment |   | $                 | 6,183  |   |

----

----

| Date: May 16, 2011 |                                                                      |
|--------------------|---------------------------------------------------------------------------|
|               |                                                                      |
|               | /s/ Jinyuan Li                                                            |
|               |                                                                      |
|               | Jinyuan Li                                                                |
|               | Chief Executive Officer, Acting Chief Financial Officer and President     |
|               | (Principal Executive Officer, Principal Financial and Accounting Officer) |

----

| Exhibit No. |   | Description                                                                                                                                                    |
|------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                           |
| 10.1             |   | Agreement, dated January 1, 2011 by and between Tianjin Tianshi Biological Development Co., Ltd. and Tianjin Tianshi Group Co. Ltd.                            |
|             |   |                                                                                                                                                           |
| 10.2             |   | Agreement, dated January 1, 2011 by and between Tianjin Tiens Life Resources Co., Ltd. and Tianjin Tianshi Group Co. Ltd.                                      |
|             |   |                                                                                                                                                           |
| 31.1             |   | Certification of the Principal Executive Officer and the Principal Financial and Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|             |   |                                                                                                                                                           |
| 32.1             |   | Certification of the Chief Executive Officer and Acting Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                      |

----