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

                                   FORM 10-Q

(Mark One)
[X]  Quarterly Report Pursuant To Section 13 Or 15(d) Of The Securities
     Exchange Act Of 1934

For the quarterly period ended: June 30, 2010

                                       or

[ ]  Transition Report Pursuant To Section 13 Or 15(d) Of The Securities
     Exchange Act Of 1934

For the transition period from ______________ to _______________

                       Commission File Number: 001-34711

                          CHINA JO-JO DRUGSTORES, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                    Nevada                                       98-0557852
--------------------------------------------------------------------------------
(State or other jurisdiction of incorporation of            (I.R.S. Employer
                origination)                          Identification Number)

Room 507-513, 5th Floor A Building, Meidu Plaza
Gongshu District, Hangzhou, Zhejiang Province
      People's Republic of China                                  N/A
--------------------------------------------------------------------------------
(Address of principal executive offices)                      (Zip code)

                               +86 (571) 88077078
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since 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 registrant
was  required  to  file  such  reports), and (2) has been subject to such filing
requirements  for  the  past  90  days.  Yes [X]  No [ ]

Indicate  by  check mark whether the registrant 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). Yes[ ] No [ ]

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 [ ]              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).  Yes  [  ]  No  [X]

                     APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate  the  number  of  shares outstanding of each issuer's classes of common
stock,  as  of  the  latest  practicable  date:  13,500,002  shares  issued  and
outstanding  as  of  August  9,  2010.

                                       1
<PAGE>

<TABLE>
<CAPTION>
                               TABLE OF CONTENTS

                        TO QUARTERLY REPORT ON FORM 10-Q
                      FOR THE QUARTER ENDED JUNE 30, 2010

                                                                                                             Page
  <S>                              <C>                                                                        <C>
PART I     FINANCIAL INFORMATION                                                                                4
Item 1.    Financial Statements (unaudited)                                                                     4
           Consolidated Balance Sheets                                                                          4
           Consolidated Statements of Income and Other Comprehensive Income (unaudited)                         5
           Consolidated Statements of Shareholders' Equity                                                      6
           Consolidated Statements of Cash Flows (unaudited)                                                    7
           Notes to the Consolidated Financial Statements                                                       8
Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations               27
Item 3.    Quantitative and Qualitative Disclosures about Market Risk                                          35
Item 4.    Controls and Procedures                                                                             35

PART II    OTHER INFORMATION                                                                                   36
Item 1.    Legal Proceedings                                                                                   36
Item 1A.   Risk Factors                                                                                        36
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds                                         36
Item 3.    Defaults Upon Senior Securities                                                                     36
Item 4.    Reserved                                                                                            36
Item 5.    Other Information                                                                                   36
Item 6.    Exhibits                                                                                            36
Signatures                                                                                                     39
</TABLE>

                                       2
<PAGE>

                 CAUTION REGARDING FORWARD-LOOKING INFORMATION

All statements contained in this Quarterly Report on Form 10-Q ("Form 10-Q") for
China  Jo-Jo  Drugstores,  Inc., other than statements of historical facts, that
address  future  activities,  events  or  developments  are  forward-looking
statements,  including,  but  not  limited  to,  statements containing the words
"believe,"  "anticipate," "expect" and words of similar import. These statements
are  based  on  certain  assumptions  and  analyses  made  by us in light of our
experience  and  our  assessment  of  historical  trends, current conditions and
expected future developments as well as other factors we believe are appropriate
under  the  circumstances.  However,  whether actual results will conform to the
expectations  and  predictions of management is subject to a number of risks and
uncertainties  that  may  cause  actual  results  to  differ  materially.

Such  risks  include,  among  others,  the following: national and local general
economic  and  market conditions: our ability to sustain, manage or forecast our
growth;  raw  material  costs  and  availability;  new  product  development and
introduction;  existing government regulations and changes in, or the failure to
comply with, government regulations; adverse publicity; competition; the loss of
significant  customers  or suppliers; fluctuations and difficulty in forecasting
operating  results;  changes in business strategy or development plans; business
disruptions;  the ability to attract and retain qualified personnel; the ability
to  protect  technology;  and  other  factors  referenced  in  this and previous
filings.

Consequently,  all  of the forward-looking statements made in this Form 10-Q are
qualified  by these cautionary statements and there can be no assurance that the
actual  results  anticipated  by  management  will  be  realized  or,  even  if
substantially  realized,  that  they  will  have the expected consequences to or
effects  on  our  business  operations.

                                       3
<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

<TABLE>
<CAPTION>
                                            CHINA JO-JO DRUGSTORES, INC AND SUBSIDIARIES
                                         (FORMERLY KNOWN AS KERRISDALE MINING CORPORATION)
                                                    CONSOLIDATED BALANCE SHEETS

                                                                                                        JUNE 30,         MARCH 31,
                                                                                                          2010             2010
                                                                                                     ---------------   -------------
                                                                                                       (Unaudited)
                                                                                                     ---------------

                                            ASSETS
                                            ------


CURRENT ASSETS
          <S>                                                                                               <C>               <C>
 Cash                                                                                               $    15,774,697   $     801,593
 Restricted cash                                                                                            807,941         746,703
 Accounts receivable, trade                                                                               1,446,093       1,228,294
 Inventories                                                                                              3,963,780       3,770,411
 Other receivables                                                                                          246,484         282,073
 Advances to suppliers                                                                                   10,179,812       6,850,240
 Other current assets                                                                                     1,630,603       1,331,167
                                                                                                    ----------------   -------------
  Total current assets                                                                                   34,049,410      15,010,481
                                                                                                    ----------------   -------------

PROPERTY AND EQUIPMENT, net                                                                               1,326,425       1,186,292
                                                                                                    ----------------   -------------

OTHER ASSETS:
 Long term deposit                                                                                        2,321,115       2,311,661
 Prepaid - noncurrent                                                                                     5,671,660       5,508,963
                                                                                                    ----------------   -------------
  Total other assets                                                                                      7,992,775       7,820,624
                                                                                                    ----------------   -------------

     Total assets                                                                                   $    43,368,610   $  24,017,397
                                                                                                    ================  ==============

                 LIABILITIES AND SHAREHOLDERS' EQUITY
                 ------------------------------------

CURRENT LIABILITIES
 Short term loans                                                                                   $     1,473,000   $     880,200
 Notes payable                                                                                            1,587,026       1,464,241
 Accounts payable, trade                                                                                  3,348,229       2,330,317
 Other payables                                                                                             166,488         225,716
 Other payables - related parties                                                                           880,107         935,000
 Taxes payable                                                                                            1,140,709       1,235,083
 Accrued liabilities                                                                                        439,804         257,091
                                                                                                    ----------------   -------------
  Total current liabilities                                                                               9,035,363       7,327,648
                                                                                                    ----------------   -------------

Purchase option derivative liability                                                                        344,507               -
                                                                                                    ----------------   -------------
  Total liabilities                                                                                       9,379,870       7,327,648
                                                                                                    ----------------   -------------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY
 Common stock; $0.001 par value; 500,000,000 and 250,000,000
  shares authorized; 13,500,002 and 10,000,000 shares issued
  and outstanding as of June 30, 2010 and March 31, 2010,
  respectively                                                                                               13,500          10,000
 Paid-in capital                                                                                         15,921,489         877,884
 Statutory reserves                                                                                       1,309,109       1,309,109
 Retained earnings                                                                                       17,007,480      14,855,016
 Accumulated other comprehensive loss                                                                      (262,838)       (362,260)
                                                                                                    ----------------   -------------
  Total shareholders' equity                                                                             33,988,740      16,689,749
                                                                                                    ----------------   -------------

     Total liabilities and shareholders' equity                                                     $    43,368,610   $  24,017,397
                                                                                                    ================  ==============
</TABLE>


                                       4
<PAGE>

<TABLE>
<CAPTION>
                                    CHINA JO-JO DRUGSTORES, INC AND SUBSIDIARIES
                                  (FORMERLY KNOWN AS KERRISDALE MINING CORPORATION)

                          CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
                                                     (UNAUDITED)

                                                                                  Three months ended June 30,
                                                                                2010                   2009
                                                                         ------------------- ------------------------
             <S>                                                                   <C>                 <C>
REVENUES                                                                         15,207,428               11,681,464

COST OF GOODS SOLD                                                               10,593,532                8,657,568
                                                                         ------------------- ------------------------

GROSS PROFIT                                                                      4,613,896                3,023,896
                                                                         ------------------- ------------------------

SELLING EXPENSES                                                                    823,358                  477,777
GENERAL & ADMINISTRATIVE EXPENSES                                                   773,762                  365,210
                                                                         ------------------- ------------------------
OPERATING EXPENSES                                                                1,597,120                  842,987
                                                                         ------------------- ------------------------

INCOME FROM OPERATIONS                                                            3,016,776                2,180,909

OTHER INCOME (EXPENSE), NET                                                         (57,532)                   6,635
CHANGE IN FAIR VALUE OF PURCHASE OPTION DERIVATIVE LIABILITY                         57,944                        -
                                                                         ------------------- ------------------------

INCOME BEFORE INCOME TAXES                                                        3,017,188                2,187,544

PROVISION FOR INCOME TAXES                                                          864,724                  588,383
                                                                         ------------------- ------------------------

NET INCOME                                                                        2,152,464                1,599,161

OTHER COMPREHENSIVE INCOME
   Foreign currency translation adjustments                                          99,422                   (1,420)
                                                                         ------------------- ------------------------

COMPREHENSIVE INCOME                                                     $        2,251,886  $             1,597,741
                                                                         =================== ========================

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES                              12,653,848                7,900,000
                                                                         =================== ========================

BASIC AND DILUTED EARNING PER SHARE                                      $             0.17  $                  0.20
                                                                         =================== ========================
</TABLE>

                                       5
<PAGE>

<TABLE>
<CAPTION>
                                            CHINA JO-JO DRUGSTORES, INC AND SUBSIDIARIES
                                         (FORMERLY KNOWN AS KERRISDALE MINING CORPORATION)

                                          CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY



                                                                                    Retained Earnings      Accumulated
                                                   Common Stock                  -----------------------      other
                                                Number of             Paid-in    Statutory                comprehensive
                                                  shares    Amount    capital    reserves   Unrestricted  income/(loss)     Total
                                                ---------- ------- ------------ ---------- ------------- -------------- ------------
          <S>                                       <C>       <C>       <C>          <C>          <C>           <C>          <C>
BALANCE, March 31, 2009                          7,900,000 $ 7,900 $   669,700  $1,309,109 $   5,033,275 $    (362,437) $ 6,657,547

 Net income                                                                                    1,599,161                  1,599,161
 Foreign currency translation adjustments                                                                       (1,420)      (1,420)

                                                ---------- ------- ------------ ---------- ------------- -------------- ------------
BALANCE, June 30, 2009 (Unaudited)               7,900,000 $ 7,900 $   669,700  $1,309,109 $   6,632,436 $    (363,857) $ 8,255,288
                                                ========== ======= ============ ========== ============= ============== ============

 Shares issued for reorganization on
  September 17, 2009                             2,100,000   2,100      (2,100)                                                   -
 Stock-based compensation                                              202,120                                              202,120
 Shareholder contribution                                                8,164                                                8,164
 Net income                                                                                    8,222,580                  8,222,580
 Foreign currency translation adjustments                                                                        1,597        1,597

                                                ---------- ------- ------------ ---------- ------------- -------------- ------------
BALANCE, March 31, 2010                         10,000,000 $10,000 $   877,884  $1,309,109 $  14,855,016 $    (362,260) $16,689,749
                                                ========== ======= ============ ========== ============= ============== ============

 Issurance of common stock                       3,500,000   3,500  15,446,056                                           15,449,556
 Fractional shares due to the one-for-two
   reverse split                                         2                                                                        -
 Reclassification of purchase option to
   derivative liabilities                                             (402,451)                                            (402,451)
 Net income                                                                                    2,152,464                  2,152,464
 Foreign currency translation adjustments                                                                       99,422       99,422

                                                ---------- ------- ------------ ---------- ------------- -------------- ------------
BALANCE, June 31, 2010 (Unaudited)              13,500,002 $13,500 $15,921,489  $1,309,109 $  17,007,480 $    (262,838) $33,988,740
                                                ========== ======= ============ ========== ============= ============== ============
</TABLE>

                                       6
<PAGE>

<TABLE>
<CAPTION>
                                  CHINA JO-JO DRUGSTORES, INC AND SUBSIDIARIES
                                (FORMERLY KNOWN AS KERRISDALE MINING CORPORATION)

                                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                   (UNAUDITED)

                                                                                    Three months ended
                                                                                         June 30,
                                                                               2010                  2009
                                                                        ------------------   --------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
                   <S>                                                         <C>                   <C>
  Net income                                                            $       2,152,464    $         1,599,161
  Adjustments to reconcile net income to net cash
    provided by (used in) operating activities:
     Depreciation and amortization                                                148,584                121,033
     Stock compensation                                                            40,529                      -
     Change in fair value of purchase option derivative liability                 (57,944)                     -
  Change in operating assets
     Accounts receivable, trade                                                  (211,953)               124,975
     Inventories                                                                 (177,259)                97,471
     Other receivables                                                             36,600                 17,455
     Advances to suppliers                                                     (3,288,775)              (552,270)
     Advances to suppliers - related parties                                            -                (93,389)
     Other current assets                                                        (256,265)              (244,132)
     Long term deposit                                                                  -               (296,553)
     Prepaid rent - noncurrent                                                    (16,938)                     -
  Change in operating liabilities
     Accounts payable, trade                                                    1,004,479               (203,057)
     Other payables and accrued liabilities                                        81,500                  9,195
     Notes payable                                                                116,344                      -
     Taxes payable                                                                (99,041)              (125,237)
                                                                        ------------------   --------------------
       Net cash provided by (used in) operating activities                       (527,675)               454,652
                                                                        ------------------   --------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of equipment                                                          (127,334)                (7,668)
  Additions to leasehold improvements                                            (315,375)              (170,893)
                                                                        ------------------   --------------------
       Net cash used in investing activities                                     (442,709)              (178,561)
                                                                        ------------------   --------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Restricted cash                                                                 (57,958)                     -
  Proceeds from equity financing                                               15,449,516                      -
  Proceeds from short-term loans                                                  586,920                      -
  Other payables-related parties                                                  (54,942)                     -
                                                                        ------------------   --------------------
       Net cash provided by financing activities                               15,923,536                      -
                                                                        ------------------   --------------------

EFFECT OF EXCHANGE RATE ON CASH                                                    19,952                   (245)
                                                                        ------------------   --------------------

INCREASE IN CASH                                                               14,973,104                275,846

CASH, beginning of period                                                         801,593                996,302
                                                                        ------------------   --------------------

CASH, end of period                                                     $      15,774,697    $         1,272,148
                                                                        ==================   ====================


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
  Cash paid for interest                                                $          17,352    $                 -
                                                                        ==================   ====================
  Cash paid for income taxes                                            $         837,658    $           584,945
                                                                        ==================   ====================
</TABLE>

                                       7
<PAGE>

                 CHINA JO-JO DRUGSTORES, INC. AND SUBSIDIARIES
               (FORMERLY KNOWN AS KERRISDALE MINING CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 JUNE 30, 2010
                                  (Unaudited)

Note  1  -  DESCRIPTION  OF  BUSINESS  AND  ORGANIZATION

China  Jo-Jo  Drugstores,  Inc.  ("Jo-Jo  Drugstores"  or  the  "Company"),  was
incorporated  in  Nevada  on  December  19,  2006,  originally  under  the  name
"Kerrisdale  Mining Corporation." On September 24, 2009, the Company changed its
name  to  "China  Jo-Jo  Drugstores,  Inc."  in connection with a share exchange
transaction  as  described  below.

On  September  17, 2009, the Company completed a share exchange transaction with
Renovation Investment (Hong Kong) Co., Ltd. ("Renovation HK"), and Renovation HK
became  a  wholly-owned  subsidiary  of  the  Company.  On the closing date, the
Company  issued  7,900,000  of its common stock (taking into account the 1-for-2
reverse  stock  split effected on April 9, 2010) to Renovation HK's stockholders
in  exchange  for 100% of the capital stock of Renovation HK. Prior to the share
exchange  transaction,  the  Company had 2,100,000 shares of common stock issued
and outstanding (taking into account the 1-for-2 reverse stock split effected on
April 9, 2010). After the share exchange transaction, the Company had 10,000,000
shares  of  common  stock  outstanding  (taking into account the 1-for-2 reverse
stock  split  effected  on April 9, 2010) and Renovation HK's stockholders owned
79%  of  the issued and outstanding shares. The management members of Renovation
HK  became  the  directors  and  officers  of  the  Company.  The share exchange
transaction  was  accounted  for  as  a reverse acquisition and recapitalization
whereby  Renovation  HK is deemed to be the accounting acquirer (legal acquiree)
and  the  Company the accounting acquiree (legal acquirer) and, as a result, the
consolidated  financial  statements  of  the Company (the legal acquirer) is, in
substance, those of Renovation HK (the accounting acquirer), with the assets and
liabilities,  and  revenues and expenses of the Company being included effective
from  the  date  of  the  share  exchange  transaction.  As  the  share exchange
transaction  was  accounted  for  as a reverse acquisition and recapitalization,
there  was  no  gain  or  loss  recognized  on  the  transaction. The historical
financial  statements  for  periods  prior  to  September  17, 2009 are those of
Renovation  HK  except  that the equity section and earnings per share have been
retroactively  restated  to  reflect  the  reverse  acquisition.

Renovation HK was incorporated on September 2, 2008, under the laws of Hong Kong
Special  Administrative  Region  ("Hong Kong"). Renovation HK has no substantive
operations  of  its  own  except  for  its holding of Zhejiang Jiuxin Investment
Management Co., Ltd. ("Jiuxin Management"), its wholly owned subsidiary. Through
Jiuxin  Management,  the  Company  controls  three  companies  through  certain
exclusive  agreements discussed below, that operate a chain of pharmacies in the
People's  Republic  of  China ("PRC" or "China"), namely, Hangzhou Jiuzhou Grand
Pharmacy  Chain  Co.,  Ltd.  ("Jiuzhou  Pharmacy"),  Hangzhou  Jiuzhou Clinic of
Integrated  Traditional  and  Western  Medicine  ("Jiuzhou Clinic") and Hangzhou
Jiuzhou  Medical  and  Public  Health  Service Co., Ltd. ("Jiuzhou Service", and
collectively  with  Jiuzhou  Pharmacy  and  Jiuzhou  Clinic  as  "HJ  Group").

Jiuxin  Management  was  established  in the PRC by Renovation HK on October 14,
2008,  as a wholly foreign owned enterprise ("WFOE"), with registered capital of
$4,500,000.  As  of  June  30,  2010,  Renovation  HK transferred all registered
capital  to  Jiuxin  Management,  and  Jiuxin  Management  has  no  substantive
operations of its own except for entering into certain exclusive agreements with
HJ  Group  and  performing  its  obligations  thereunder.

Jiuzhou  Pharmacy  is  a  PRC  limited liability company established in Zhejiang
Province  on  September  9,  2003  with  registered  capital  of  $605,000  (RMB
5,000,000),  engages  in  the  retail sales of prescription and non prescription
drugs,  traditional  Chinese  medicine  and  general  merchandise  in  the  PRC.

Jiuzhou  Clinic is a PRC general partnership established in Zhejiang Province on
October  10,  2003.  It  is  engaged  in  providing both traditional and western
medical  services  in  the  PRC.

                                       8
<PAGE>

Jiuzhou  Service  is  a  PRC  limited  liability company established in Zhejiang
Province  on  November 2, 2005 with registered capital of RMB 500,000 ($60,500).
It is engaged in providing medical-related management consulting services in the
PRC.

On April 7, 2010, Jiuzhou  Pharmacy  was  granted  an  Internet   Pharmaceutical
Transaction  Sevice  Qualification Certificate ( the "Certificate") by the State
Food  and  Drug  Administration  of  Zhejiang  Province.  The Certificate allows
Jiuzhou  Pharmacy to engage in online retail pharmaceutical sales throughout the
PRC.

All  three  HJ  Group  companies  have been under the common control of the same
three owners (the "Owners") since their respective establishment dates, pursuant
to  agreements  amongst  the  Owners  to  vote  their  interests  in  concert as
memorialized  in a voting agreement. Based on such voting agreement, the Company
has  determined that common control exists among the three HJ Group companies in
accordance  with  the  guidance  of  definition  of  common  control  accounting
standard.  Operationally,  the Owners have operated the three HJ Group companies
in  conjunction  with  one another since each company's respective establishment
date.  Each  HJ  Group  company  holds  the  licenses and approvals necessary to
operate  its  business  in  China.

The  paid-in  capital of all three HJ Group companies was funded by the majority
shareholders of Renovation HK. PRC law currently has limits on foreign ownership
of  companies in certain industries, including those of HJ Group. To comply with
these  foreign  ownership  restrictions,  on  August  1, 2009, Jiuxin Management
entered  into  following  exclusive  agreements  with  HJ  Group  and the Owners
(collectively  the  "Contractual  Arrangements").

The  Company  has  concluded  that  Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou
Service  are each a Variable Interest Entity (VIE) and that the Company's wholly
owned  subsidiary, Jiuxin Management, absorb a majority of the risk of loss from
the activities of these three companies, and enables the Company, through Jiuxin
Management, to receive a majority of their respective expected residual returns.
Such  conclusion  is  based  on  the  terms  of  the Contractual Arrangements as
follows:

(1)  Under  the  Consulting  Services  Agreement,  Jiuxin Management will
     provide  exclusive  consulting and services to HJ Group for a quarterly fee
     in  the  amount  of each HJ Group company's quarterly net income after tax.
     The Company has the right to receive the expected residual gains of each HJ
     Group  company,  and  there  is no cap on such expected residual gains. The
     Company is also obligated to absorb the risk of loss from the activities of
     each  HJ Group company. The Company is not protected from such risk of loss
     and  is  not  guaranteed  a return by HJ Group or by other parties involved
     with HJ Group. The consulting services agreement shall remain in effect for
     the  maximum  period  of time permitted by law, unless sooner terminated by
     Jiuxin  Management  or  if  either Jiuxin Management or an HJ Group company
     becomes  bankrupt  or  insolvent, or otherwise dissolves or ceases business
     operations.

(2)  Under the Equity Pledge Agreement, the Owners have pledged their rights,
     title  and equity interest in HJ Group as security for Jiuxin Management to
     collect  its  fees from each HJ Group company under the Consulting Services
     Agreement.  On  May  18,  2010,  all  the  owners effectively completed the
     registration  of  their  equity  pledge  to  Zheijiang Management Co., Ltd.

(3)  Under the Operating Agreement, Jiuxin Management has exclusive authority of
     all  decision-making  relating  to  HJ  Group's  ongoing  major operations,
     including  establishing  compensation  levels  and  hiring  and  firing key
     personnel.  In  order  to  ensure  HJ  Group's  normal  operation,  Jiuxin
     Management  agrees  to  act  as the guarantor for HJ Group in any contract,
     agreement  or  transaction  with  third  parties  relating  to  HJ  Group's
     operations,  and  to  guarantee  HJ  Group's  performance of such contract,
     agreement  or  transaction.  As  a counter guarantee, each HJ Group company
     agrees  to  pledge  all  of  its  assets  including  receivables  to Jiuxin
     Management  which  have  not  been  pledged  to  any  third  parties at the
     execution  date  of this agreement. The operating agreement shall remain in
     effect  unless  terminated  by  Jiuxin  Management.

                                       9
<PAGE>

(4)  Under the Proxy Agreement, the Owners have authorized any designee of
     Jiuxin  Management  to  exercise  all  of their respective voting rights as
     owners  of  HJ  Group.  The  voting  rights proxy agreement shall remain in
     effect  for  the  maximum  period  of  time  permitted  by  law.

(5)  Under  the  Option  Agreement, the Owners have granted Jiuxin Management
     the  exclusive right and option to acquire all of their equity interests in
     HJ  Group.  The  option  agreement  shall  remain in effect for the maximum
     period  time  permitted  by  law.

Accordingly,  the  Company  accounts for each of these three companies as a VIE.

As  a  result  of  the  Contractual  Arrangements, which obligate the Company to
absorb all of the risk of loss from HJ Group's activities and enable the Company
to receive all of HJ Group's expected residual returns, the Company accounts for
each  HJ  Group  company  as  a variable interest entity ("VIE") under Financial
Accounting  Standards  Board  (FASB)'s  accounting  standard.  Accordingly,  the
financial  statements of HJ Group are consolidated into the financial statements
of  the  Company.

Note  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

The  reporting  entities
------------------------

The Company's consolidated financial statements of reflect the activities of the
Company and the following subsidiary and VIEs:

                                              Percentage of
Subsidiaries           Incorporated in        Ownership
-----------------  -------------------------  --------------------------------
Renovation HK            Hong Kong            100%
Jiuxin Management           PRC               100%
Jiuzhou Pharmacy            PRC               VIE by Contractual Arrangements
Jiuzhou Clinic              PRC               VIE by Contractual Arrangements
Jiuzhou Service             PRC               VIE by Contractual Arrangements

Basis  of presentation and consolidation
----------------------------------------

The  accompanying  consolidated  financial statements are prepared in accordance
with  accounting  principles generally accepted in the United States of America.
The  consolidated  financial  statements include the financial statements of the
Company,  its  wholly-owned  subsidiaries  and  its  VIEs.  All  significant
inter-company  transactions  and  balances between the Company, its subsidiaries
and  VIEs  are  eliminated  upon  consolidation.

Consolidation  of  variable  interest  entities
-----------------------------------------------

In  accordance  with  the consolidation of Variable Interest Entities standards,
variable  interest  entities  (VIEs) are generally entities that lack sufficient
equity  to  finance  their  activities without additional financial support from
other parties or whose equity holders lack adequate decision making ability. All
VIEs  with  which  the  Company  is  involved must be evaluated to determine the
primary beneficiary of the risks and rewards of the VIE. The primary beneficiary
is  required  to  consolidate  the  VIE  for  financial  reporting  purposes.

The  Company  has  concluded  that  Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou
Service  are  each  a VIE and that the Company's wholly owned subsidiary, Jiuxin
Management,  absorb  a majority of the risk of loss from the activities of these
three companies, and enable the Company, through Jiuxin Management, to receive a
majority of their respective expected residual returns. Such conclusion is based
on  the  terms  of  the  Contractual  Arrangements  as  described  in  Note  1.

                                       10
<PAGE>

Accordingly,  the  Company  accounts for each of these three companies as a VIE.

Additionally,  as  the  three  HJ  Group companies are under common control, the
consolidated  financial statements have been prepared as if the transactions had
occurred  retroactively  as  to  the  beginning of the reporting period of these
consolidated  financial  statements.

Control  is defined under the accounting standard defining common control as "an
individual,  enterprise,  or  immediate  family  members  who  hold more than 50
percent  of  the  voting ownership interest of each entity." Because Lei Liu, Li
Qi,  and  Chong'an Jin collectively own 100% of HJ Group and have agreed to vote
their  interests  in concert since the establishment of each HJ Group company as
memorialized  in  a  voting  agreement,  the  Company  believes that these three
individuals collectively have control of HJ Group in accordance with EITF 02-05.
Accordingly,  the  Company  believes  that  Jiuzhou Pharmacy, Jiuzhou Clinic and
Jiuzhou  Service  were  constructively  held  under  common  control  by  Jiuxin
Management  as  of  the  time  the  Contractual  Agreements  were  entered into,
establishing  Jiuxin Management as their primary beneficiary. Jiuxin Management,
in  turn,  is  owned  by  Renovation  HK.

Although  the Company recognizes the consolidation of VIEs standard but does not
provide  for  retroactive  accounting  treatment,  HJ  Group  in  substance were
controlled  by the same three individuals on September 9, 2003, October 10, 2003
and  November  2,  2005,  the  establishment  dates of Jiuzhou Pharmacy, Jiuzhou
Clinic and Jiuzhou Service, respectively. Such common control condition resulted
in  the  share  exchange  transaction  to be a capital transaction in substance,
reflected  as  a  recapitalization, and the Company has accordingly recorded the
consolidation  of  Renovation  HK  at  its  historical  cost.

Use  of  estimates
------------------

The  preparation  of  consolidated  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,
disclosure  of  contingent  assets  and liabilities at the date of the financial
statements,  and  the  reported  amounts  of  revenues  and  expenses during the
reporting  period. For example, the Company estimates its allowance for doubtful
accounts  and  useful  lives  of  plant  and  equipment.  Because  of the use of
estimates  inherent  in  the  financial  reporting process, actual results could
differ  from  those  estimates.

Fair  values  of  financial  instruments
----------------------------------------

The  accounting  standards  regarding  fair  value  of financial instruments and
related  fair  value  measurements defines fair value, establishes a three-level
valuation  hierarchy  for  disclosures  of  fair  value measurement and enhances
disclosures  requirements for fair value measures. The carrying amounts reported
in  the  balance  sheets  for  current receivables, payables, notes payables and
short  term loans qualify as financial instruments and are a reasonable estimate
of  fair  value  because  of the short period of time between the origination of
such instruments and their expected realization and their current market rate of
interest.  The  three  levels  are  defined  as  follow:

     --   Level  1  inputs  to  the  valuation  methodology  are  quoted  prices
          (unadjusted)  for  identical  assets or liabilities in active markets.

     --   Level  2 inputs to the valuation methodology include quoted prices for
          similar  assets and liabilities in active markets, and inputs that are
          observable for the assets or liability, either directly or indirectly,
          for  substantially  the  full  term  of  the  financial  instruments.

     --   Level  3  inputs  to  the  valuation  methodology  are  unobservable
          and significant  to  the  fair  value.

In connection with the public offering of the Company's common stock that closed
on  April  28,  2010,  the  Company  agreed  to  issue its underwriters, Madison
Williams  and  Company and Rodman & Renshaw, LLC, an option for $100 to purchase
up to a total of 105,000 shares of common stock (3% of the shares sold) at $6.25
per  share (125% of the price of the shares sold in the offering). The option is
exercisable  commencing  on  October  23,  2010  and  expires on April 22, 2015.

                                       11
<PAGE>

The  Company is treating the common shares underlying the option as a derivative
liability  as  the  strike price of the option is denominated in U.S. dollars, a
currency  other  than  the  Company's functional currency, the Chinese RMB. As a
result,  the option is not considered indexed to the Company's own stock, and as
such,  all  future  changes  in  the  fair  value  of  the option are recognized
currently  in  earnings  until  such time as the option is exercised or expired.

On April 22, 2010, the issue date of the option, the Company classified the fair
value  of  this  option  as  a  liability  resulting in a decrease of additional
paid-in capital of $402,451 and the establishment of a $402,451 option liability
to  recognize  the option's fair value. The Company recognized a gain of $57,944
from  the  change  in  fair value of option liability for the three months ended
June  30,  2010.  There  was  no  option  outstanding  as  of  March  31,  2010.

This  option  does  not  trade  in an active securities market, and as such, the
Company  estimates  the fair value of this option using the Black-Scholes Option
Pricing Model ("Black-Scholes Model") on the date that the option was originally
issued  and  as  of  June  30,  2010  using  the  following  assumptions:

                                  Underwriter Purchase Option (1)
                                   June 30,         April 22,
                                     2010             2010
                                  (Unaudited)      (Unaudited)
                                  ------------- -------------------
Stock price                       $      4.20   $            4.78
Exercise price                    $      6.25   $            6.25
Annual dividend yield                       0%                  0%
Expected term (years)                    4.81                5.00
Risk-free interest rate                  1.79%               2.57%
Expected volatility                       120%                120%

(1) As of June 30, 2010, the option to purchase 105,000 had not been exercised.
    The option cannot be exercised until October 23, 2010.

Expected volatility is based on historical volatility. Historical volatility was
computed  using daily pricing observations for recent periods that correspond to
the  term  of  the option. The Company believes this method produces an estimate
that  is  representative  of  future  volatility  over the expected term of this
option. The Company has no reason to believe future volatility over the expected
remaining  life  of  this  option is likely to differ materially from historical
volatility.  The expected life is based on the remaining term of the option. The
risk-free  interest  rate  is based on U.S. Treasury securities according to the
remaining  term  of  the  option.

As required by the FASB's accounting standards, financial assets and liabilities
are  classified  in  their  entirety  based on the lowest level of input that is
significant  to  the  fair  value  measurement. Depending on the product and the
terms  of the transaction, the fair values option liability were modeled using a
series  of  techniques,  including  closed-form  analytic  formula,  such as the
Black-Scholes  Model,  which  does  not entail material subjectivity because the
methodology  employed does not necessitate significant judgment, and the pricing
inputs  are  observed  from  actively  quoted  markets.

The  fair  value  of  the 105,000 shares underlying the option outstanding as of
June  30,  2010  was  determined  using  the Black-Scholes Model, defined in the
FASB's  accounting standard of fair value measurement as level 2 inputs, and the
Company  recorded  the  change in earnings. As a result, the option liability is
carried  on  the  consolidated  balance  sheets  at  fair  value.

                                       12
<PAGE>

The  following  table  sets forth, by level within the fair value hierarchy, the
Company's financial assets and liabilities that were accounted for at fair value
as  of  June  30,  2010:

<TABLE>
<CAPTION>
                                                      Carrying Value at    Fair Value Measurement at
                                                          June 30,                  June 30,
                                                            2010                      2010
                                                      -----------------  ------------------------------
                                                                         Level 1    Level 2    Level 3
                                                                         ---------  --------  ---------
              <S>                                         <C>            <C>        <C>       <C>
Purchase option derivative liability (unaudited)          $ 344,507      $    --    $344,507  $      --

</TABLE>

Revenue  recognition
--------------------

Revenue from sales of prescription medicine at the drugstores is recognized when
the  prescription  is  filled  and  the  customer  picks  up  and  pays  for the
prescription.

Revenue  from  sales of other merchandise at the drugstores is recognized at the
point of sale, which is when the customer pays for and receives the merchandise.

Revenue  from medical services is recognized after the service has been rendered
to  the  customer.

Revenue from sales of merchandise to non-retail customers is recognized when the
following  conditions  are  met: 1) persuasive evidence of an arrangement exists
(sales  agreements  and  customer  purchase  orders  are  used  to determine the
existence  of  an  arrangement); 2) delivery of goods has occurred and risks and
benefits  of  ownership  have  been  transferred,  which  is  when the goods are
received by the customer at its designated location in accordance with the sales
terms;  3)  the  sales  price is fixed or determinable; and 4) collectability is
probable.  Historically,  sales  returns  have  been  immaterial.

The  Company's  revenue is net of value added tax ("VAT") collected on behalf of
PRC  tax  authorities  in respect of the sale of merchandise. VAT collected from
customers,  net  of  VAT  paid  for purchases, is recorded as a liability in the
balance  sheet  until  it  is  paid  to  the  relevant  PRC  tax  authorities.

Cash
----

Cash  consists  of  cash  on  hand,  cash  in  the drugstores and cash at banks.

Restricted  cash
----------------

The  Company's  restricted  cash  consists of cash in a bank as security for its
notes  payable.  The  Company has notes payable outstanding with the bank and is
required  to  keep  certain  amounts  on  deposit that are subject to withdrawal
restrictions.  The notes payable are generally short term in nature due to their
short maturity period of six to nine months; thus, restricted cash is classified
as  a  current  asset.  As  of  June 30, 2010, restricted cash and notes payable
amounted  to  $807,941  and  $1,587,026,  respectively.  As  of  March 31, 2010,
restricted  cash  and  notes  payable  amounted  to  $746,703  and  $1,464,241,
respectively.

Accounts  receivable
--------------------

Accounts  receivable  represent  amounts due from banks relating to retail sales
that  are  paid  or settled by the customers' debit or credit cards, amounts due
from  government  social  security  bureaus  relating  to retail sales of drugs,
prescription  medicine,  and  medical  services  that are paid or settled by the
customers'  medical  insurance  cards, and amounts due from non-retail customers
for  sales  of  merchandise.

Management  regularly reviews aging of receivables and changes in payment trends
by  its customers, and records a reserve when they believe collection of amounts
due  are  at  risk.  Accounts  considered  uncollectible  are  written  off.
Historically,  the  amount  of  bad  debt  write-off has been immaterial and the
Company  has  been  able  to  collect  substantially  all amounts due from these
parties.  At  June 30, 2010 and March 31, 2010, management concluded all amounts
are  collectible  and  allowance for doubtful accounts was not deemed necessary.

                                       13
<PAGE>

Inventories
-----------

Inventories  are stated at the lower of cost or market. Cost is determined using
the weighted average cost method. Market is the lower of replacement cost or net
realizable value. The Company carries out physical inventory counts on a monthly
basis  at each store and warehouse location to ensure that the amounts reflected
in  the  consolidated financial statements at each reporting period are properly
stated  and valued. The Company records write-downs to inventories for shrinkage
losses  and damaged merchandise that are identified during the inventory counts.

Property  and  equipment
------------------------

Property  and  equipment  are stated at cost, net of accumulated depreciation or
amortization.  Depreciation  is  calculated on the straight-line method over the
following  estimated  useful  lives of the assets, taking into consideration the
assets'  estimated residual value. Leasehold improvements are amortized over the
shorter  of  lease  term  or  remaining  lease  period of the underlying assets.
Following  are  the  estimated  useful lives of the Company's other property and
equipment:


                                                          Estimated Useful Life
                                                          ---------------------
Leasehold improvements                                               3-10 years
Motor vehicles                                                          5 years
Office equipment & furniture                                          3-5 years

Maintenance,  repairs  and  minor  renewals  are charged to expense as incurred.
Major  additions  and  betterment  to  property  and  equipment are capitalized.

Impairment  of  long  lived  assets
-----------------------------------

The  Company evaluates long lived tangible and intangible assets for impairment,
at  least  annually,  but more often whenever events or changes in circumstances
indicate  that  the  carrying  value  may  not be recoverable from its estimated
future  cash flows. Recoverability is measured by comparing the asset's net book
value  to  the  related  projected  undiscounted  cash  flows from these assets,
considering  a  number  of  factors  including  past operating results, budgets,
economic  projections,  market trends and product development cycles. If the net
book  value  of the asset exceeds the related undiscounted cash flows, the asset
is  considered impaired, and a second test is performed to measure the amount of
impairment  loss. Based on its review, the Company believes that, as of June 30,
2010  and  March  31,  2010,  there  was  no  impairment.

Income  taxes
-------------

The Company records income taxes pursuant to the accounting standards for income
taxes.  The  accounting  standards  for  income taxes require the recognition of
deferred  income  tax  liabilities  and  assets  for  the  expected  future  tax
consequences  of  temporary  differences  between income tax basis and financial
reporting  basis  of assets and liabilities. Provision for income taxes consists
of  taxes  currently  due  plus  deferred  taxes.

A  tax  position is recognized as a benefit only if it is "more likely than not"
that  the  tax  position  would  be  sustained  in a tax examination, with a tax
examination being presumed to occur. The amount recognized is the largest amount
of tax benefit that is greater than 50% likely of being realized on examination.
For tax positions not meeting the "more likely than not" test, no tax benefit is
recorded.  The  accounting  standard  also  provides guidance on de-recognition,
classification,   interest   and  penalties,   accounting  in  interim  periods,
disclosures,  and  transition.  The  adoption  had  no  affect  on the Company's
financial  statements.  There  were no deferred tax amounts at June 30, 2010 and
March  31,  2010.

The  charge  for  taxation  is based on the results for the year as adjusted for
items,  which are non-assessable or disallowed. It is calculated using tax rates
that  have  been  enacted  or  substantively  enacted by the balance sheet date.

Deferred  tax  is  accounted  for  using  the  balance sheet liability method in
respect  of  temporary differences arising from differences between the carrying
amount  of  assets  and  liabilities  in  the  financial  statements  and  the
corresponding  tax  basis  used  in the computation of assessable tax profit. In
principle,  deferred  tax  liabilities  are recognized for all taxable temporary
differences,  and  deferred  tax  assets are recognized to the extent that it is
probable  that  taxable  profit  will  be  available  against  which  deductible
temporary  differences  can  be  utilized. Deferred tax is calculated at the tax
rates that are expected to apply to the period when the asset is realized or the
liability  is  settled.  Deferred  tax  is  charged  or  credited  in the income
statement, except when related items are credited or charged directly to equity,
in  which  case  the  deferred  tax  is  also  dealt  with  in  equity.

                                       14
<PAGE>

Value  Added  Tax  (VAT)
------------------------

Sales  revenue  represents the invoiced value of goods, net of a value-added tax
(VAT).  All  of  the  Company's  products  are  sold in the PRC are subject to a
Chinese  value-added tax on the gross sales price. The value-added tax rate vary
from  0%  to 17%, depending on the type of products sold. This VAT may be offset
by  VAT paid by the Company on raw materials and other materials included in the
cost  of  producing or acquiring its finished products. The Company recorded VAT
payable  and  VAT  receivable  net  of  payments  in  the accompanying financial
statements.  The  VAT  tax  return  is filed offsetting the payables against the
receivables.

Stock  Based  Compensation
--------------------------

The  Company  accounts for equity instruments issued in exchange for the receipt
of  goods  or  services  from  other  than  employees  in accordance with FASB's
accounting  standards  regarding  accounting  for  stock-based  compensation and
accounting  for  equity  instruments that are issued to other than employees for
acquiring  or  in conjunction with selling goods or services. Costs are measured
at  the  estimated  fair  market  value  of  the  consideration  received or the
estimated  fair  value  of  the  equity  instruments  issued,  whichever is more
reliably  determinable. The value of equity instruments issued for consideration
other  than  employee  services  is  determined  on the earlier of a performance
commitment  or completion of performance by the provider of goods or services as
defined  by these accounting standards. In the case of equity instruments issued
to  consultants,  the fair value of the equity instrument is recognized over the
term  of  the  consulting  agreement.

Advertising  and  promotion  costs
----------------------------------

Advertising  and  promotion  costs  are  expensed  as  incurred. Advertising and
promotion  costs amounted to $39,419 and $97,432 for the three months ended June
30,  2010  and  2009, respectively. Advertising costs consist primarily of print
and  television  advertisements.

Pre-opening  costs
------------------

Expenditures  related  to the opening of new drugstores, other than expenditures
for  property  and  equipment,  are  expensed  as  incurred.

Vendor  allowances
------------------

The  Company  accounts  for  vendor allowances by reducing the carrying value of
inventories  and are subsequently transferring the amounts to cost of goods sold
when  the  inventories  are  sold,  unless  those  allowances  are  specifically
identified  as  reimbursements for advertising, promotion and other services, in
which  case  they  are  recognized as a reduction of the related advertising and
promotion  or  other  service  costs.

For the three months ended June 30, 2010 and 2009, the Company recognized vendor
allowances of $269,979 and $46,802 in cost of goods sold, respectively.

Distribution  costs
-------------------

Distribution   costs  represent  the  costs  of  transporting  merchandise  from
warehouse  to  stores.  These costs are expensed as incurred and are included in
sales,  marketing  and  other  operating  expenses.

                                       15
<PAGE>

Operating  leases
-----------------

The  Company leases premises for retail drugstores, warehouse, offices, and land
under  non-cancelable operating leases. Operating lease payments are expensed on
a straight-line basis over the term of lease. A majority of the Company's retail
drugstore  leases  have  a  3  to  10-year  term  with a renewal option upon the
expiration  of  the  lease.  The  Company  has historically been able to renew a
majority  of its drugstores leases. Under the terms of the lease agreements, the
Company  has  no legal or contractual asset retirement obligations at the end of
the lease. Land leased from  government  is amortized on  a straight-line  basis
over  a  30-year  term.

Commitments  and  contingencies
-------------------------------

Liabilities for loss contingencies arising from claims, assessments, litigation,
fines  and  other  sources are recorded when it is probable that a liability has
been  incurred  and  the  amount  of the assessment can be reasonably estimated.
Historically,  the  Company  has experienced no product liability or malpractice
claims.

Foreign  currency  translation
------------------------------

The  Company  uses  the  United  States  dollar  ("U.S.  dollars"  or "USD") for
financial reporting purposes. The Company's subsidiaries and VIEs maintain their
books  and  records  in their functional currency, being the primary currency of
the  economic  environment  in  which  their  operations  are  conducted.

In general, for consolidation purposes, the Company translates the subsidiaries'
and VIEs' assets and liabilities into U.S. dollars using the applicable exchange
rates prevailing at the balance sheet date, and the statement of income and cash
flows are translated at average exchange rates during the reporting period. As a
result,  amounts  related to assets and liabilities reported on the statement of
cash flows will not necessarily agree with changes in the corresponding balances
on  the  balance  sheet.  Equity  accounts  are  translated at historical rates.
Adjustments  resulting  from  the  translation  of  the  subsidiaries' and VIEs'
financial  statements  are  recorded  as accumulated other comprehensive income.

The  accounting  standard, "Reporting Comprehensive Income", requires disclosure
of  all  components  of  comprehensive  income and loss on an annual and interim
basis.  Comprehensive  income  and  loss is defined as the change in equity of a
business  enterprise  during  a  period  from  transactions and other events and
circumstances  from  non-owner  sources.  The  Company's  accumulated  other
comprehensive  income  and  loss  only  consist  of  changes in foreign currency
exchange  rates.  Accumulated  other  comprehensive  loss  in  the  statement of
shareholders'  equity  amounted to $262,838 and $362,260 as of June 30, 2010 and
March  31,  2010,  respectively. The balance sheet amounts with the exception of
equity  at June 30, 2010 and March 31, 2010 were translated at 1 RMB to $0.14730
USD  and  at  1 RMB to $0.14670 USD, respectively. The average translation rates
applied  to  income  and  cash flow statement amounts for the three months ended
June  30,  2010  and 2009 were at 1 RMB to $0.14673 USD and at 1 RMB to $0.14663
USD,  respectively.

Concentrations  and  credit  risk
---------------------------------

The  Company's  operations  are  all  carried  out  in the PRC. Accordingly, the
Company's  business,  financial  condition  and  results  of  operations  may be
influenced  by the political, economic and legal environments in the PRC, and by
the  general state of the PRC's economy. The Company's operations in the PRC are
subject  to  specific  considerations  and  significant  risks  not  typically
associated with companies in the North America and Western Europe. These include
risks  associated  with,  among  others,  the  political,  economic  and  legal
environments  and  foreign  currency  exchange.  The  Company's  results  may be
adversely  affected by changes in governmental policies with respect to laws and
regulations,  anti-inflationary  measures,  currency  conversion  and remittance
abroad,  and  rates  and  methods  of  taxation,  among  other  things.

Certain  financial  instruments,  which  subject the Company to concentration of
credit  risk,  consist  of  cash  and  restricted  cash. The Company balances at
financial  institutions  located  in  Hong Kong and China. The Company maintains
balances  at  financial  institutions  which, from time to time, may exceed Hong
Kong Deposit Protection Board insured limits for the banks located in Hong Kong.
Balances  at  financial institutions or state-owned banks within the PRC are not
covered  by  insurance.  As of June 30, 2010 and March 31, 2010, the Company had
deposits  totaling  $4,884,053 and $1,533,175 that are not covered by insurance,
respectively.  The  Company  has not experienced any losses in such accounts and
believes  it  is  not  exposed  to  any  significant  risks  on its cash in bank
accounts.

                                       16
<PAGE>

For  the  three  months ended June 30, 2010 and 2009, all of the Company's sales
and  purchases  arose in the PRC. No major customers accounted for more than 10%
of  the  Company's  total  revenues for the three months ended June 30, 2010 and
2009,  respectively.

For the three months ended June 30, 2010, two vendors collectively accounted for
32%  of the Company's total purchases and 26% of total inventory prepayment. For
the three months ended June 30, 2009, two vendors collectively accounted for 30%
of  the  Company's  total  purchases  and  1%  of  total  accounts  payable.

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

In  December  2009,  FASB  issued  ASU  No. 2009-16, Accounting for Transfers of
Financial  Assets.  This  Accounting Standards Update amends the FASB Accounting
Standards  Codification  for  the issuance of FASB Statement No. 166, Accounting
for  Transfers  of  Financial  Assets-an amendment of FASB Statement No. 140.The
amendments  in  this  Accounting Standards Update improve financial reporting by
eliminating  the  exceptions  for  qualifying  special-purpose entities from the
consolidation  guidance  and  the  exception  that permitted sale accounting for
certain  mortgage  securitizations when a transferor has not surrendered control
over  the  transferred  financial  assets.  In  addition, the amendments require
enhanced  disclosures  about the risks that a transferor continues to be exposed
to  because  of  its  continuing  involvement  in  transferred financial assets.
Comparability  and  consistency  in  accounting for transferred financial assets
will  also  be improved through clarifications of the requirements for isolation
and  limitations  on  portions  of  financial  assets that are eligible for sale
accounting.  The  Company  adopted  this  standard and the standard did not have
material  effect  on  the  Company's  consolidated  financial  statements.

In  December,  2009,  FASB  issued  ASU  No.  2009-17, Improvements to Financial
Reporting  by  Enterprises  Involved  with  Variable  Interest  Entities.  This
Accounting  Standards  Update  amends the FASB Accounting Standards Codification
for  the  issuance  of FASB Statement No. 167, Amendments to FASB Interpretation
No.  46(R).  The  amendments  in  this  Accounting  Standards Update replace the
quantitative-based risks and rewards calculation for determining which reporting
entity,  if  any,  has  a  controlling financial interest in a variable interest
entity  with  an  approach focused on identifying which reporting entity has the
power  to  direct  the  activities  of  a  variable  interest  entity  that most
significantly impact the entity's economic performance and (1) the obligation to
absorb  losses  of  the  entity  or  (2)  the right to receive benefits from the
entity.  An  approach  that is expected to be primarily qualitative will be more
effective  for  identifying  which  reporting entity has a controlling financial
interest  in  a  variable  interest  entity.  The amendments in this Update also
require  additional  disclosures  about  a  reporting  entity's  involvement  in
variable interest entities, which will enhance the information provided to users
of financial statements. The adoption of this ASU did not have a material impact
on  its  consolidated  financial  statements.

In  January  2010,  FASB issued ASU No. 2010-01- Accounting for Distributions to
Shareholders  with  Components  of Stock and Cash. The amendments in this Update
clarify  that  the  stock  portion of a distribution to shareholders that allows
them  to elect to receive cash or stock with a potential limitation on the total
amount  of  cash  that all shareholders can elect to receive in the aggregate is
considered  a share issuance that is reflected in EPS prospectively and is not a
stock  dividend for purposes of applying Topics 505 and 260 (Equity and Earnings
Per  Share).  The amendments in this update are effective for interim and annual
periods  ending  on  or  after  December  15,  2009,  and should be applied on a
retrospective  basis. The adoption of this ASU did not have a material impact on
its  consolidated  statements.

In  January  2010,  FASB  issued  ASU No. 2010-02 - Accounting and Reporting for
Decreases  in  Ownership of a Subsidiary - a Scope Clarification. The amendments
in  this  Update affect accounting and reporting by an entity that experiences a
decrease  in ownership in a subsidiary that is a business or nonprofit activity.
The  amendments also affect accounting and reporting by an entity that exchanges
a  group  of  assets  that  constitutes  a business or nonprofit activity for an
equity  interest  in another entity. The amendments in this update are effective
beginning  in  the  period  that an entity adopts SFAS No. 160, "Non-controlling
Interests in Consolidated Financial Statements - An Amendment of ARB No. 51." If
an  entity  has previously adopted SFAS No. 160 as of the date the amendments in
this  update  are  included  in  the   Accounting  Standards  Codification,  the
amendments in this update are effective beginning in the first interim or annual
reporting  period  ending  on or after December 15, 2009. The amendments in this
update  should  be  applied  retrospectively  to the first period that an entity
adopted SFAS No. 160. The adoption of this ASU did not have a material impact on
its  consolidated  statements.

                                       17
<PAGE>

In  January 2010, FASB issued ASU No. 2010-06 - Improving Disclosures about Fair
Value  Measurements.  This  update  provides  amendments to Subtopic 820-10 that
requires new disclosure as follows: 1) Transfers in and out of Levels 1 and 2. A
reporting entity should disclose separately the amounts of significant transfers
in  and  out  of  Level  1  and Level 2 fair value measurements and describe the
reasons  for  the  transfers. 2) Activity in Level 3 fair value measurements. In
the  reconciliation  for  fair value measurements using significant unobservable
inputs (Level 3), a reporting entity should present separately information about
purchases,  sales,  issuances, and settlements (that is, on a gross basis rather
than  as one net number).This update provides amendments to Subtopic 820-10 that
clarify existing disclosures as follows: 1) Level of disaggregation. A reporting
entity  should  provide  fair  value  measurement  disclosures for each class of
assets  and  liabilities.  A  class  is  often a subset of assets or liabilities
within  a  line  item in the statement of financial position. A reporting entity
needs  to  use  judgment  in  determining  the appropriate classes of assets and
liabilities.  2)  Disclosures about inputs and valuation techniques. A reporting
entity should provide disclosures about the valuation techniques and inputs used
to   measure  fair  value  for   both  recurring  and  nonrecurring  fair  value
measurements.  Those  disclosures  are required for fair value measurements that
fall  in  either  Level  2  or Level 3.The new disclosures and clarifications of
existing  disclosures  are  effective  for  interim and annual reporting periods
beginning  after  December 15, 2009, except for the disclosures about purchases,
sales,  issuances,  and  settlements  in the roll forward of activity in Level 3
fair  value  measurements.  Those  disclosures  are  effective  for fiscal years
beginning  after  December 15, 2010, and for interim periods within those fiscal
years. The Company adopted the disclosures standards, except for the disclosures
to  be  adopted  for  fiscal  year  beginning  after  December 15, 2010, and the
adoption  of  this  ASU  did  not  have  a  material  impact on its consolidated
financial  instruments.

In  February  2010, the FASB issued ASU 2010-09, "Subsequent Events (Topic 855):
Amendments  to Certain Recognition and Disclosure Requirements," or ASU 2010-09.
ASU  2010-09  primarily  rescinds  the  requirement  that, for listed companies,
financial  statements  clearly disclose the date through which subsequent events
have  been evaluated. Subsequent events must still be evaluated through the date
of  financial  statement  issuance; however, the disclosure requirement has been
removed  to avoid conflicts with other SEC guidelines. ASU 2010-09 was effective
immediately  upon  issuance  and  was  adopted  in  February  2010.

In  April  2010,  the  FASB  issued  Accounting  Standards  Update  2010-13,
"Compensation-Stock  Compensation  (Topic  718):  Effect  of  Denominating  the
Exercise  Price  of a Share-Based Payment Award in the Currency of the Market in
Which  the  Underlying  Equity  Security  Trades,"  or  ASU 2010-13. ASU 2010-13
provides amendments to Topic 718 to clarify that an employee share-based payment
award  with  an  exercise  price  denominated in currency of a market in which a
substantial  porting  of  the  entity's  equity  securities trades should not be
considered  to contain a condition that is not a market, performance, or service
condition.  Therefore, an entity would not classify such an award as a liability
if it otherwise qualifies as equity. The amendments in this Update are effective
for fiscal years, and interim periods within those fiscal years, beginning on or
after December 15, 2010. The Company does not expect the adoption of ASU 2010-17
to  have  a  material  impact  on  its  consolidated  financial  statements.

                                       18
<PAGE>

Reclassification
----------------

Certain  prior  period  amounts have been reclassified to conform to the current
period  presentation.  These  classifications  have  no  effect  on  net income.

Note  3  -  OTHER  CURRENT  ASSETS

Other  current  assets  consist  of  the  following:

<TABLE>
<CAPTION>
                                                         June 30,
                                                           2010               March 31,
                                                       (unaudited)              2010
                                                   --------------------- -------------------
            <S>                                            <C>                   <C>
Prepaid rental expense                             $          1,352,933  $         1,205,881
Lease rights transfer fees (1)                                  100,330               92,021
Prepaids and other assets                                       177,340               33,265
                                                   --------------------- -------------------
   Total                                           $          1,630,603  $         1,331,167
                                                   ===================== ===================
</TABLE>

(1)  Lease rights  transfer  fees are money paid  by the Company to secure store
     rentals in coveted areas. These additional  costs of acquiring the right to
     lease new store locations are capitalized and amortized over the  period of
     the initial lease term.

                                       19
<PAGE>

Note 4 - PROPERTY AND EQUIPMENT

Property  and  equipment as of June 30, 2010 and March 31, 2010 consisted of the
following:

<TABLE>
<CAPTION>
                                                                     June 30,
                                                                       2010       March 31,
                                                                    (unaudited)      2010
                                                                    ------------ ------------
        <S>                                                              <C>         <C>
Leasehold improvements                                              $ 2,755,828  $  2,588,627
Office equipment and furniture                                          509,717       379,668
Motor vehicles                                                          162,665       162,665
                                                                    ------------ ------------
Total                                                                 3,428,210     3,130,960
Less: Accumulated depreciation and amortization                       2,101,785     1,944,668
                                                                    ------------ ------------
Property and equipment, net                                         $ 1,326,425  $  1,186,292
                                                                    ============ ============
</TABLE>

Total depreciation expense for property and equipment for the three months ended
June  30, 2010 and 2009 was $148,584 and $121,033, respectively. No depreciation
expense was included in cost of goods sold for the periods presented because the
Company's  business does not involve manufacturing of merchandise and the amount
of depreciation of property and equipment utilized in acquiring, warehousing and
transporting  merchandise  to  locations  ready  for  sale  is  not  material.

Note 5 - ADVANCES TO SUPPLIERS

Advances  to  suppliers  is  money  deposited or advanced to outside vendors for
future  inventory  purchases.  Most  of  the Company's vendors require a certain
amount  of  money to be deposited with them as a guarantee that the Company will
receive  its  purchase on a timely basis. This amount is refundable and bears no
interest. As of June 30, 2010 and March 31, 2010, advances to suppliers amounted
to  $10,179,812  and  $6,850,240,  respectively.

Note  6  -  LONG  TERM  DEPOSITS

Long  term  deposits  includes  money  deposited  or  advanced  to landlords for
securing  retail store leases for which the Company does not anticipate applying
or being returned within the next twelve months. Most of the Company's landlords
require  a  minimum  of  six  months'  rent  being paid up front plus additional
deposits.  As  of June 30, 2010 and March 31, 2010, long term deposit for retail
leases  amounted  to  $2,321,115  and  $2,311,661,  respectively.

                                       20
<PAGE>

Note  7  -  PREPAID  -  NONCURRENT

Prepaid  -  noncurrent  consist  of  the  following:

<TABLE>
<CAPTION>

                                                                     June 30,
                                                                       2010       March 31,
                                                                   (unaudited)      2010
                                                                   ------------- -----------
              <S>                                                         <C>        <C>
Prepayment for lease of land use right - noncurrent (1)            $  4,234,875  $ 4,254,300
Prepayment for new entity (2)                                         1,031,100    1,026,900
Prepayment for construction                                             159,986            -
Lease rights transfer fees-noncurrent                                   205,728      227,763
Prepaids and other assets                                                39,971            -
                                                                    ------------- ----------
   Total                                                           $  5,671,660  $ 5,508,963
                                                                   ============= ===========
</TABLE>

(1)  Prepayment  for  lease  of  land  use  right  is  a payment made to a local
     government  in connection with entering into a 30-year operating land lease
     agreement.  As of June 30, 2010 and March 31, 2010, the balance amounted to
     $4,234,875  and  $4,254,300,  respectively.

(2)  In  connection  with  the  same  lease   agreement,  the   Company  prepaid
     $1,031,100  (RMB  7,000,000)  to  establish  a  new entity, Hangzhou Jiuxin
     QianHong  Agriculture  Development  Ltd.  On  August 10, 2010,  the  entity
     was  established  with  registered  capital of $1,480,000 (RMB 10,000,000).

Note  8  -  STATUORY  RESERVE

Statutory  reserves represent restricted retained earnings. Based on their legal
formation,  all  PRC entities are required to set aside 10% of their net incomes
as  reported  in  their  statutory  accounts on an annual basis to the Statutory
Surplus  Reserve  Fund  (the  "Reserve  Fund").  Once the total set-aside in the
Reserve  Fund  reaches  50%  of  an  entity's  registered  capital,  further
appropriations  are  discretionary. The Reserve Fund can be used to increase the
entity's registered capital upon approval by relevant government authorities and
to  eliminate its future losses under PRC GAAP upon a resolution by its board of
directors.  The  Reserve Fund is not distributable to shareholders except in the
event  of  liquidation.

Appropriations  to  the above statutory reserves are accounted for as a transfer
from  unrestricted earnings to statutory reserves. During the three months ended
June 30, 2010 and 2009, the Company made total appropriations to these statutory
reserves  of  $0  and $0, respectively. The Company fulfilled the 50% registered
capital  requirement  as  of  March 31, 2009. Therefore, during the three months
ended  June  30,  2010  and  2009, no additional appropriations to the statutory
reserves  were  made  from  unrestricted  earnings.

There  are  no legal requirements in the PRC to fund these statutory reserves by
transfer  of  cash  to  any restricted accounts, and the Company does not do so.
These  statutory  reserves  are  not  distributable  as  cash  dividends.

Note  9  -  TAXES

Income  Tax
-----------

The  Company  is  registered in Nevada whereas its subsidiary, Renovation HK, is
registered  in  Hong  Kong,  and conducts all of its business through Renovation
HK's  subsidiary,  Jiuxin  Management, and the three PRC VIEs, Jiuzhou Pharmacy,
Jiuzhou  Clinic  and Jiuzhou Service. Jiuxin Management and the VIEs are subject
to  PRC  tax  laws.

                                       21
<PAGE>

Beginning  January  2008, the Chinese Enterprise Income Tax ("EIT") law replaced
China's  former  income  tax laws. The standard EIT rate of 25% replaced the 33%
rate  previously applicable to PRC enterprises. Therefore, starting from January
2008  Jiuzhou  Pharmacy  has  been  subject  to  an  effective  tax rate of 25%.

Jiuzhou Clinic and Jiuzhou Service are subject to the regular income tax rate of
25% in calendar year 2009 and 2010.

Penalties  and  interest  incurred  related  to  underpayment  of income tax are
classified  as income tax expense in the year incurred. No significant penalties
or  interest  relating to income tax were incurred during the three months ended
June  30,  2010  and  2009.  GAAP  also  provides  guidance  on  de-recognition,
classification,  interest  and  penalties,  accounting  in  interim  periods,
disclosures  and  transition.

The  following  table  reconciles  the U.S. statutory tax rates to the Company's
effective  tax  rate  for  the  three  months  ended  June  30,  2010  and  2009
(unaudited):

<TABLE>
<CAPTION>
                                                                          2010       2009
                                                                     ---------- ----------
                           <S>                                           <C>          <C>
U.S. Statutory rates                                                        34%        34%
Foreign income not recognized in USA                                       (34)       (34)
China income taxes                                                          25         25
Other (a)                                                                    4          2
                                                                     ---------- ----------
Effective tax rate                                                          29%        27%
                                                                     ---------- ----------
</TABLE>

     (a)  The  4%  and  2%  for  the  three months ended June 30, 2010 and 2009,
          respectively,  represents the  expenses  incurred  by the Company that
          were  not  subject  to  PRC  income  tax.

Jo-Jo  Drugstores  is  incorporated in the U.S. and has incurred a net operating
loss  for  income  tax purposes for 2010. As of June 30, 2010, the estimated net
operating  loss  carryforwards for U.S. income tax purposes amounted to $379,000
which  may  be  available  to  reduce  future  years'  taxable  income.  These
carryforwards will expire, if not utilized by 2030. Management believes that the
realization  of  the benefits arising from this loss appears to be uncertain due
to the Company's limited operating history and continuing losses for U.S. income
tax  purposes.  Accordingly, the Company has provided a 100% valuation allowance
at  June  30,  2010.  The valuation allowance at June 30, 2010 was $129,000. The
Company's  management  reviews  this  valuation allowance periodically and makes
adjustments  as necessary. The Company had no net operating loss as of March 31,
2010.

The  Company  has  cumulative undistributed  earnings of foreign subsidiaries of
approximately   $15,513,643  as  of  June  30,  2010,   which  are  included  in
consolidated  retained  earnings and will continue to be indefinitely reinvested
in  international  operations.  Accordingly, no provision has been made for U.S.
deferred  taxes  related  to  future  repatriation  of these earnings, nor is it
practicable  to  estimate  the  amount  of  income  taxes  that would have to be
provided  if  we  concluded  that  such earnings will be remitted in the future.


Value  Added  Tax
-----------------

Sales of products are subject to VAT ranging from 0% to 17%. VAT on sales and on
purchases  amounted to $2,454,477 and $1,987,825 for the three months ended June
30, 2010, respectively, and $1,894,552 and $1,461,063 for the three months ended
June  30,  2009,  respectively.

Sales  and  purchases  are recorded net of VAT collected and paid as the Company
acts  as  an  agent for the government. VAT taxes are not impacted by the income
tax  holiday.

Taxes  payable  at  June 30, 2010 and March 31, 2010 consisted of the following:

<TABLE>
<CAPTION>
                                                                     June 30,
                                                                        2010      March 31,
                                                                    (unaudited)     2010
                                                                    ------------ -----------
                <S>                                                     <C>          <C>
VAT                                                                 $   252,238  $   341,989
Income tax                                                              856,435      875,868
Others                                                                   32,036       17,226
                                                                    ------------ -----------
Total taxes payable                                                 $ 1,140,709  $ 1,235,083
                                                                    ============ ===========
</TABLE>

                                       22
<PAGE>

Note 10 - SHORT TERM LOANS

Short  term loans represent amounts due to various banks and are normally due on
demand  or within one year. These loans generally can be renewed with the banks.
Short  term  bank  loans  at  June 30, 2010 and March 31, 2010, consisted of the
following:

<TABLE>
<CAPTION>
                                                                June 30, 2010      March 31,
                                                                  (unaudited)         2010
                                                               ------------------ -----------
                <S>                                                  <C>              <C>
Two loans with Hangzhou Bank, due September 2010 with annual
 interest at 4.86%, secured by the personal properties of
 certain of the Company's shareholders                         $       1,178,400   $  586,800
Hangzhou Bank, due July 2010 with annual interest at 4.86%,
 secured by the personal properties of certain of the
 Company's shareholders                                                  294,600      293,400
                                                               ------------------ -----------
Total                                                          $       1,473,000   $  880,200
                                                               ================== ===========
</TABLE>

All short term loans were repaid subsequently to June 30, 2010. Interest expense
for  the  three  months  ended  June  30,  2010 and 2009 amounted to $17,352 and
$18,211,  respectively.

Note  11  -  POSTRETIREMENT  BENEFITS

Regulations  in  the  PRC  require  the  Company  to  contribute  to  a  defined
contribution  retirement  plan  for all permanent employees. The contribution is
based  on  a percentage of an employee's current compensation as required by the
local  government.  The  Company  contributed  $13,076 and $15,429 in employment
benefits  and  pension  during  the  three  months ended June 30, 2010 and 2009,
respectively.

Note  12  -  RELATED  PARTY  TRANSACTIONS  AND  ARRANGEMENTS

Amounts  receivable  from  and  payable  to  related  parties  are summarized as
follows:

<TABLE>
<CAPTION>
                                                                        June 30,
                                                                          2010       March 31,
                                                                       (unaudited)     2010
                                                                      ------------- -----------
           <S>                                                             <C>         <C>
Amount due to directors (1):                                          $    880,107  $   935,000
                                                                      ============= ===========
</TABLE>

(1)  As  of  June  30,  2010  and  March  31,  2010,  amount  due  to directors
     represents  contributions  from  Li Qi ,Chong'an Jin, and Lei Liu to Jiuxin
     Management  to enable Jiuxin Management to meet its approved PRC registered
     capital  requirements.  Such contributions  are to  be  returned  to  these
     directors  upon  demand.

Note  13  -  EARNINGS  PER  SHARE  and  CAPITAL  TRANSACTIONS

Stock-based  compensation
-------------------------

On  September  1,  2009,  pursuant  to  agreements  entered  on  July  30, 2009,
shareholders  of Renovation HK sold shares of Renovation HK to service providers
including  the Company's chief financial officer and legal counsel which shares,
after  the  share  exchange transaction between the Company and Renovation HK on
September 17, 2009,  collectively  represented 2.50% of the Company's issued and
outstanding  common  stock.

Using  the  fair  value  of  services provided as of March 31, 2010, the Company
estimated  that the total stock compensation expense to be recognized from these
transactions was $202,120. The Company recognized $126,325 as stock compensation
expense  for the year ended March 31, 2010. The remaining $75,795 was applied to
accrued  legal  fees,  which were expensed during the year ended March 31, 2009.

On March 15, 2010, the Company agreed to issue 6,897 shares (taking into account
the  1-for-2 reverse stock split effected on April 9, 2010) of restricted common
stock  to  a  director.  The  shares  are to be issued in quarterly installments
beginning  on  March  31, 2010, and $9,976 was recorded as director compensation
expense  for  the  three  months  ended  June  30,  2010.

On April 9, 2010, the Company effected a 1-for-2 reverse split of its issued and
outstanding  common shares and a proportional reduction of its authorized common
shares.  Therefore,  all  share  and  per  share  amounts  used in the Company's
consolidated  financial  statements  and  notes  thereto have been retroactively
restated  to  reflect  the  1-for-2  reverse  stock  split.

                                       23
<PAGE>

On  May 1, 2010, the Company agreed to issue 2,340 shares of common stock to its
legal  counsel,  and $3,744 was recorded as service compensation expense for the
three  months  ended  June  30,  2010.

On  May  14,  2010,  the Company entered into an agreement pursuant to which the
Company  agreed  to  issue 10,000 shares of restricted common stock to its chief
financial  officer upon the adoption of a stock incentive plan (the "Plan"). The
shares  are  to vest in five installments and distributed to the chief financial
officer  at  the end of the agreement's term, and $8,169 was recorded as officer
compensation  expense  for  the  three  months  ended  June  30,  2010.

The  Company also agreed under the agreement to issue 4,000 shares of restricted
common stock from the Plan as a bonus to its chief financial officer and $18,640
was  recorded  as compensation expense for the three months ended June 30, 2010.

Shareholders  Contribution
--------------------------

On  June  8,  2009,  the  three  Owners of Jiuzhou Pharmacy acquired 100% equity
interests of Kuaileren Pharmacy Co., Ltd. ("Kuaileren") from its owner for stock
consideration.  On  August  21,  2009,  the  three Owners contributed their 100%
equity  interests  of  Kuaileren  to  Jiuzhou  Pharmacy,  and Kuaileren became a
wholly-owned subsidiary of Jiuzhou Pharmacy. The registered capital of Kuaileren
is  $15,000  (RMB 100,000). The transfer of the equity interest has been treated
as a contribution to owner's equity and has been valued at $8,164, the estimated
fair  value  of  the  equity  interest  transferred.

Earnings  per  share
--------------------

The  Company  reports  earnings  per  share in accordance with the provisions of
FASB's related accounting standard. This standard 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 per share
excludes  dilution  and  is  computed  by  dividing  income  available to common
stockholders  by  the  weighted  average  common  shares  outstanding during the
period.  Diluted  earnings  per  share takes into account the potential dilution
that  could  occur  if  securities or other contracts to issue common stock were
exercised  and  converted  into  common  stock.

The  following  is  a reconciliation of the basic and diluted earnings per share
computation:

<TABLE>
<CAPTION>
                                                                       Three Months Ended
                                                                            June 30,
                                                                       2010           2009
                                                                    (unaudited)   (unaudited)
                                                                    ------------ --------------

               <S>                                                      <C>            <C>
Net income for earnings per share                                   $ 2,152,464  $    1,599,161
Weighted average shares used in basic computation
Basic and diluted                                                    12,653,848       7,900,000
Earnings per share
                                                                    ------------ --------------
Basic and diluted                                                   $      0.17  $         0.20
</TABLE>

For  the  three  months  ended  June  30,  2010,  105,000  shares underlying the
outstanding  purchase  option  were excluded from the diluted earnings per share
calculation as they are anti-dilutive. For the three months ended June 30, 2009,
there  was  no  purchase  option  outstanding.

All  share  and  per  share amounts used in the Company's consolidated financial
statements  and  notes  thereto  have been retroactively restated to reflect the
1-for-2  reverse  stock  split  effected  on  April  9,  2010.

Note  15  -  SEGMENTS

The  Company  sells  prescription  and  over-the-counter  medicines, traditional
Chinese  medicines,  which  are  medicines  derived  from Chinese herbs, Chinese
herbs,  dietary  supplement,  medical instruments and sundry items. The class of
customers,  selling  practice  and  distribution  process  are  the same for all
products.  The  Company's  chief operating decision-makers (i.e. chief executive
officer  and  his  direct  reports)  review financial information presented on a
consolidated  basis,  accompanied by disaggregated information about revenues by
product  lines  for  purposes  of  allocating resources and evaluating financial
performance.  There  are  no  segment  managers  who  are  held  accountable for
operations,  operating  results  and  plans  for  levels or components below the
consolidated  unit  level.  Based  on  qualitative  and  quantitative  criteria
established  by  the  accounting  standard,  "Disclosures  about  Segments of an
Enterprise  and  Related  Information,"  the  Company  considers  itself  to  be
operating  within  one  reportable  segment.

                                       24
<PAGE>

The  Company  does  not  have  long-lived  assets  located  outside  the PRC. In
accordance with the enterprise-wide disclosure requirements of FASB's accounting
standard,  the  Company's net revenue from external customers by main segment is
as  follows:

<TABLE>
<CAPTION>
                                                                         Three Months Ended
                                                                              June 30,
                                                                          2010         2009
                                                                      (unaudited)  (unaudited)
                                                                      ------------ ------------

                <S>                                                        <C>          <C>
Prescription Drugs                                                    $ 6,162,598  $  4,498,498
Over-The-Counter (OTC) Drugs                                            5,441,859     2,560,209
Nutritional Supplements                                                 1,731,081       525,937
Traditional Chinese Medicine Products                                   1,290,891     1,230,105
Sundry Products                                                           371,263     2,592,740
Medical Devices                                                           209,736       273,975
                                                                      ------------ ------------
Total                                                                 $15,207,428  $ 11,681,464
                                                                      ============ ============
</TABLE>

Note  16  -  COMMITMENTS  AND  CONTINGENCIES

Operating  lease  commitments
-----------------------------

The  Company  recognizes lease expense on a straight line basis over the term of
the lease in accordance to the accounting standard. The Company has entered into
various  tenancy  agreements for its store premises and for the land that it has
leased  from  a  local  government to be used potentially for the cultivation of
Chinese  medicinal  herbs.

One  of the Company's retail spaces and its corporate office are leased from Lei
Liu,  a director of the Company, under long-term operating lease agreements from
August  2008  to  August 2010 and from January 2008 to March 2012, respectively.
The  rent expense for the retail space and the corporate office are $406,814 and
$42,531 for the three months ended June 30, 2010 and 2009, respectively. For the
three months  ended  June  30,  2010  and 2009, rent paid to Mr. Liu amounted to
$44,190  and  $0,  respectively.

The  Company's  commitments for minimum rental payments under its leases for the
next  five  years  and  thereafter  are  as  follows:

Years ending March 31,                                                Amount
--------------------------------------------------------------------- ----------
2011                                                                  $1,411,140
2012                                                                   1,698,291
2013                                                                   1,477,275
2014                                                                   1,235,845
2015                                                                     844,088
Thereafter                                                               853,504

Rental  expense  for  the  three months ended June 30, 2010 and 2009 amounted to
$432,428  and  $257,454,  respectively.

As  of  June  30,  2010  and  March  31,  2010,  prepayment on retail spaces and
corporate  office  rental  expense  amounted  to  $1,352,934  and  $1,205,881,
respectively.

                                       25
<PAGE>

Logistics  Services  Commitments
--------------------------------

The Company renewed its agreement for logistics services ("Logistics Agreement")
with  Zhejiang  Yingte  Logistics  Co., Ltd. ("Yingte") to provide logistics and
other  related  services  from January 1, 2010 to December 31, 2010. Pursuant to
the  Logistics  Agreement,  Yingte  accepts  goods from the Company's suppliers,
stores the goods and then delivers the goods to the Company's store locations as
directed  by  the  Company,  and the Company is required to pay Yingte 1% of the
purchase price of the delivered goods. The Company is obligated to pay a minimum
of  RMB  2,900,000  annually (1% of RMB 290 million, the total minimum amount of
goods  to  be  delivered  under  the  Logistics  Agreement).

As  of June 30, 2010 and March 31, 2009, the Company did not have any contingent
liabilities.

Legal  Proceedings
------------------

In December 2009, Jiuzhou Pharmacy filed suit against The Ventana Group, LLC and
Michael  Hom  in  the  California  Superior  Court  for the County of San Mateo,
alleging  breach of contract of an agreement entered into with the defendants in
2008 and seeking damages of $25,000. The suit was subsequently amended to remove
Michael  Hom  as  a  defendant. In May 2010, Jiuzhou Pharmacy sought for default
judgment  against  the  defendants,  which was granted on July 14, 2010. Jiuzhou
Pharmacy  is in the process of executing the judgment against The Ventana Group,
LLC.

Note  17  -  SUBSEQUENT  EVENT

In  connection  with the land use right lease agreement with a local government,
Hangzhou  Jiuxin  Qianhong  Agriculture  Development  Co., Ltd. ("Qianhong") was
established with registered capital of $1,480,000 (RMB 10,000,000) on August 10,
2010.  As  of  June  30, 2010, the Company prepaid $1,031,100 (RMB 7,000,000) of
registered  capital  (Note  7),  and  the  remaining $444,000 (RMB 3,000,000) of
registered  capital  was  contributed  on  August  9,  2010.

The  Company  has  performed an evaluation of subsequent events through the date
these  consolidated  financial  statements  were  issued.

                                       26
<PAGE>

Item  2. Management's Discussion and Analysis of Financial Condition and Results
         of  Operations.

The following management's discussion and analysis should be read in conjunction
with  our  consolidated financial statements and the notes thereto and the other
financial  information  appearing  elsewhere  in  this  item.  In  addition  to
historical  information,  the  following  discussion  contains  certain
forward-looking  statements  within  the "safe harbor" provisions of the Private
Securities  Litigation Reform Act of 1995. These statements relate to our future
plans,  objectives,  expectations  and  intentions.  These  statements  may  be
identified  by  the  use  of  words  such  as  "may", "will", "could", "expect",
"anticipate",  "intend",  "believe",  "estimate", "plan", "predict", and similar
terms  or  terminology,  or  the  negative  of  such  terms  or other comparable
terminology.  Although  we  believe  the  expectations  expressed  in  these
forward-looking  statements are based on reasonable assumptions within the bound
of  our  knowledge  of  our business, our actual results could differ materially
from  those discussed in these statements. Factors that could contribute to such
differences  include,  but  are  not  limited  to,  those discussed in the "Risk
Factors"  section of the Company's current report on Form 8-K filed with the SEC
on  September  24,  2009.  We  undertake  no  obligation  to update publicly any
forward-looking  statements  for  any  reason  even  if  new information becomes
available  or  other  events  occur  in  the  future.

Our  financial  statements  are  prepared in U.S. Dollars and in accordance with
accounting  principles  generally  accepted  in the United States. See "Exchange
Rates"  below  for  information concerning the exchanges rates at which Renminbi
("RMB")  were  translated  into  U.S. Dollars at various pertinent dates and for
pertinent  periods.

Overview

     China  Jo-Jo  Drugstores,  Inc.  ("Jo-Jo  Drugstores" or the "Company") was
incorporated  in  Nevada  on  December  19,  2006,  originally  under  the  name
Kerrisdale  Mining  Corporation.  On September 24, 2009, The Company changed its
name  to  "China  Jo-Jo  Drugstores, Inc." in connection with the share exchange
transaction  described  below.

     On  September  17, 2009, the Company completed a share exchange transaction
with  Renovation  Investment  (Hong  Kong) Co., Ltd. ("Renovation"), a Hong Kong
company,  and Renovation became a wholly-owned subsidiary of the Company. On the
closing  date,  the  Company  issued  7,900,000  of  its  common  stock  to  the
stockholders  of  Renovation  in  exchange  for  100%  of  the  capital stock of
Renovation.  Prior  to the share exchange transaction, the Company had 2,100,000
shares  of  common  stock  issued  and  outstanding.  After  the  share exchange
transaction,  the  Company  had  10,000,000  shares  of  common stock issued and
outstanding,  of  which  79%  were  owned by the stockholders of Renovation. The
management  members  of  Renovation  became  the  directors  and officers of the
Company.  The  share  exchange  transaction  was  accounted  for  as  a  reverse
acquisition  and  recapitalization  and, as a result, the consolidated financial
statements  of  the  Company  (the  legal  acquirer)  is, in substance, those of
Renovation  (the  accounting  acquirer),  with  the  assets and liabilities, and
revenues  and expenses, of the Company being included effective from the date of
the  share  exchange  transaction.

     Renovation  is  a  holding  company  that,  through  its  wholly-owned  PRC
subsidiary,  Zhejiang  Jiuxin  Investment  Management  Co.,  Ltd.  ("Jiuxin
Management"),  controls the three HJ Group companies in the PRC, namely Hangzhou
Jiuzhou  Grand  Pharmacy  Chain Co., Ltd. ("Jiuzhou Pharmacy"), Hangzhou Jiuzhou
Clinic  of  Integrated  Traditional  and  Western  Medicine  General Partnership
("Jiuzhou  Clinic"),  and  Hangzhou Jiuzhou Medical & Public Health Service Co.,
Ltd.  ("Jiuzhou  Service",  and  with  Jiuzhou  Pharmacy  and  Jiuzhou  Clinic
collectively as "HJ Group"), by a series of contractual arrangements. All of our
business  operations  are  carried  out  by  HJ  Group.

Developments  during  the  Quarter

     On  April  7,  2010,  Jiuzhou Pharmacy became the first company in Zhejiang
Province   to   be  granted  an  Internet   Pharmaceutical  Transaction  Service
Qualification  Certificate  (the  "Certificate")  by  the  State  Food  and Drug
Administration  of Zhejiang Province. The Certificate allows Jiuzhou Pharmacy to
engage in online retail pharmaceutical sales throughout the People's Republic of
China.

     On  April  9,  2010,  the  Company  effected a 1-for-2 reverse split of its
issued  and  outstanding  common  shares  and  a  proportional  reduction of its
authorized  common  shares.

                                       27
<PAGE>

     On  April  28,  2010, the Company completed a registered public offering of
3.5  million  shares  of  common stock at a price of $5.00 per share, with gross
proceeds  to  the  Company  of  approximately  $17.5 million, prior to deducting
underwriting  discounts,  commissions  and  offering  expenses.

     On  May  18,  2010,  the  three  owners  of  Jiuzhou Pharmacy completed the
registration  of  their  pledge  obligations  under the Equity Pledge Agreement,
which  is  a  part  of  the  contractual  arrangements,  with  the  local  State
Administration  of  Industry  and  Commerce.

     In  connection with the 30-year lease that we entered into in February 2010
with  The  People's Government of Qianhong Village in Lin'an, Zhejiang Province,
we  have  established Hangzhou Jiuxin Qianhong Agriculture Development Co., Ltd.
("Qianhong")  as  a wholly-owned subsidiary of Jiuxin Management with registered
capital  of RMB 10 million (approximately $1.48 million) on August 10, 2010. RMB
7 million (approximately $1,031,100) of the registered capital was prepaid as of
June  30,  2010,  and  the balance of RMB 3 million (approximately $444,000) was
paid  on  August  9,  2010.

Critical Accounting Policies and Estimates

     In  preparing  our  consolidated  financial  statements  in accordance with
accounting  principles  generally accepted in the United States, we are required
to  make  judgments,  estimates  and  assumptions  that affect: (i) the reported
amounts  of  our  assets  and liabilities; (ii) the disclosure of our contingent
assets  and  liabilities  at  the  end  of  each reporting period; and (iii) the
reported  amounts  of  revenue  and  expenses  during  each reporting period. We
continually  evaluate  these  estimates  based on our own historical experience,
knowledge  and  assessment  of  current  business  and  other  conditions,  our
expectations  regarding the future based on available information and reasonable
assumptions,  which  together  form our basis for making judgments about matters
that  are not readily apparent from other sources. Since the use of estimates is
an  integral  component  of  the financial reporting process, our actual results
could  differ  from  those  estimates.

     We believe that any reasonable deviation from those judgments and estimates
would  not  have  a  material  impact  on  our financial condition or results of
operations.  To  the  extent that the estimates used differ from actual results,
however,  adjustments  to  the statement of operations and corresponding balance
sheet  accounts  would  be  necessary. These adjustments would be made in future
financial  statements.

     When  reading  our  financial  statements,  you  should  consider:  (i) our
critical  accounting  policies;  (ii)  the  judgment  and  other  uncertainties
affecting  the  application  of  such  policies;  and  (iii)  the sensitivity of
reported  results  to  changes  in  conditions  and  assumptions. We believe the
following  accounting  policies  involve  the  most  significant  judgment  and
estimates  used in the preparation of our financial statements. We have not made
any material changes in the methodology used in these accounting policies during
the  past  eighteen  months.

Revenue  recognition
--------------------

     Revenue from sales of prescription medicine at the drugstores is recognized
when  the  prescription  is  filled  and  the customer picks up and pays for the
prescription.

     Revenue  from sales of other merchandise at the drugstores is recognized at
the  point  of  sale,  which  is  when  the  customer  pays for and receives the
merchandise.

     Revenue  from  medical  services (which is nominal) is recognized after the
service  has  been  rendered  to  the  customer.

     Revenue  from  sales  of  merchandise to non-retail customers is recognized
when  the following conditions are met: 1) persuasive evidence of an arrangement
exists  (sales agreements and customer purchase orders are used to determine the
existence  of  an  arrangement); 2) delivery of goods has occurred and risks and
benefits  of  ownership  have  been  transferred,  which  is  when the goods are
received by the customer at its designated location in accordance with the sales
terms;  3)  the  sales  price is fixed or determinable; and 4) collectability is
probable.  Historically,  sales  returns  have  been  immaterial.

                                       28
<PAGE>

     Our  revenue  is  net of value added tax ("VAT") collected on behalf of tax
authorities in respect of the sale of merchandise. VAT collected from customers,
net  of  VAT paid for purchases, is recorded as a liability in the balance sheet
until  it  is  paid  to  the  tax  authorities.

Vendor  allowances
------------------

     The  Company  accounts  for  vendor  allowances  according  the  accounting
standards,  Accounting  by  a  Customer  (Including  a  Reseller)  for  Certain
Consideration  Received  from  a  Vendor,  and  by  Reseller to Sales Incentives
Offered  to  Consumers  by  Manufacturers. Vendor allowances reduce the carrying
value of inventories and subsequently transferred to cost of goods sold when the
inventories  are  sold,  unless  those allowances are specifically identified as
reimbursements for advertising, promotion and other services, in which case they
are  recognized  as  a reduction of the related advertising and promotion costs.

     Slotting  allowances are a major portion of total allowances. With slotting
allowances,  the  vendors  reimburse  the  Company  for  the cost of placing new
product  on  the  shelf. The Company has no obligation or commitment to keep the
product  on  the  shelf  for  a  minimum  period.

     A small portion of vendor allowance also includes advertising and promotion
allowances  for  the promotion of vendors' products in stores. The promotion may
be  any  combination  of  a temporary price reduction or a feature in print ads.

Depreciation  and  Amortization
-------------------------------

     Our  non-current  assets  include  property  and  equipment,  leasehold
improvements,  long  term  deposits, and long term prepayment. We depreciate our
equipment  assets using the straight-line method over the estimated useful lives
of the assets. We make estimates of the useful lives of the equipment (including
the salvage values), in order to determine the amount of depreciation expense to
be  recorded  during any reporting period. We amortize leasehold improvements of
our retail drugstores and other business premises over the shorter of lease term
or  remaining  lease  periods.  Our  leases  have  a  three to ten year term. We
estimate  the  useful  lives  of our other property and equipment at the time we
acquire  the  assets  based  on our historical experience with similar assets as
well  as  anticipated  technological and other changes. If technological changes
were  to  occur  more  rapidly  than  anticipated  or  in  a different form than
anticipated,  we  may  shorten  the  useful  lives  assigned  to these assets as
appropriate,  which will result in the recognition of increased depreciation and
amortization  expense  in  future  periods.  There  has  been  no  change to the
estimated useful lives and salvage values during the three months ended June 30,
2010  and  2009.

Impairment  of  Long-Lived  Assets
----------------------------------

     We  evaluate  our long lived tangible and intangible assets for impairment,
at  least  annually,  but more often whenever events or changes in circumstances
indicate  that  the  carrying  value  may  not be recoverable from its estimated
future  cash flows. Recoverability is measured by comparing the asset's net book
value  to  the  related  projected  undiscounted  cash  flows from these assets,
considering  a  number  of  factors  including  past operating results, budgets,
economic  projections,  market trends and product development cycles. If the net
book  value  of the asset exceeds the related undiscounted cash flows, the asset
is  considered impaired, and a second test is performed to measure the amount of
impairment  loss.  Based  on  our  review, we believe that, as of June 30, 2010,
there  was  no  impairment.

Inventories
-----------

     We  state  our inventory at the lower of cost or market. Cost is determined
using  the weighted average cost method. Market is the lower of replacement cost
or  net  realizable  value.  We carry out physical inventory counts on a monthly
basis  at  each  store  and  distribution  location  to  ensure that the amounts
reflected  in the consolidated financial statements at each reporting period are
properly  stated  and  valued.  We record write-downs to inventory for shrinkage
losses  and damaged merchandise that are identified during the inventory counts.
The inventory write downs for the three months ended June 30, 2010 and 2009 have
been  immaterial.

                                       29
<PAGE>

Recent  Accounting  Pronouncements

In  December  2009,  FASB  issued  ASU  No. 2009-16, Accounting for Transfers of
Financial  Assets.  This  Accounting Standards Update amends the FASB Accounting
Standards  Codification  for  the issuance of FASB Statement No. 166, Accounting
for  Transfers  of  Financial  Assets-an amendment of FASB Statement No. 140.The
amendments  in  this  Accounting Standards Update improve financial reporting by
eliminating  the  exceptions  for  qualifying  special-purpose entities from the
consolidation  guidance  and  the  exception  that permitted sale accounting for
certain  mortgage  securitizations when a transferor has not surrendered control
over  the  transferred  financial  assets.  In  addition, the amendments require
enhanced  disclosures  about the risks that a transferor continues to be exposed
to  because  of  its  continuing  involvement  in  transferred financial assets.
Comparability  and  consistency  in  accounting for transferred financial assets
will  also  be improved through clarifications of the requirements for isolation
and  limitations  on  portions  of  financial  assets that are eligible for sale
accounting.  The  Company  adopted  this  standard and the standard did not have
material  effect  on  the  Company's  consolidated  financial  statements.

In  December,  2009,  FASB  issued  ASU  No.  2009-17, Improvements to Financial
Reporting  by  Enterprises  Involved  with  Variable  Interest  Entities.  This
Accounting  Standards  Update  amends the FASB Accounting Standards Codification
for  the  issuance  of FASB Statement No. 167, Amendments to FASB Interpretation
No.  46(R).  The  amendments  in  this  Accounting  Standards Update replace the
quantitative-based risks and rewards calculation for determining which reporting
entity,  if  any,  has  a  controlling financial interest in a variable interest
entity  with  an  approach focused on identifying which reporting entity has the
power  to  direct  the  activities  of  a  variable  interest  entity  that most
significantly impact the entity's economic performance and (1) the obligation to
absorb  losses  of  the  entity  or  (2)  the right to receive benefits from the
entity.  An  approach  that is expected to be primarily qualitative will be more
effective  for  identifying  which  reporting entity has a controlling financial
interest  in  a  variable  interest  entity.  The amendments in this Update also
require  additional  disclosures  about  a  reporting  entity's  involvement  in
variable interest entities, which will enhance the information provided to users
of financial statements. The adoption of this ASU did not have a material impact
on  its  consolidated  financial  statements.

In  January  2010,  FASB issued ASU No. 2010-01- Accounting for Distributions to
Shareholders  with  Components  of Stock and Cash. The amendments in this Update
clarify  that  the  stock  portion of a distribution to shareholders that allows
them  to elect to receive cash or stock with a potential limitation on the total
amount  of  cash  that all shareholders can elect to receive in the aggregate is
considered  a share issuance that is reflected in EPS prospectively and is not a
stock  dividend for purposes of applying Topics 505 and 260 (Equity and Earnings
Per  Share).  The amendments in this update are effective for interim and annual
periods  ending  on  or  after  December  15,  2009,  and should be applied on a
retrospective  basis. The adoption of this ASU did not have a material impact on
its  consolidated  statements.

In  January  2010,  FASB  issued  ASU No. 2010-02 - Accounting and Reporting for
Decreases  in  Ownership of a Subsidiary - a Scope Clarification. The amendments
in  this  Update affect accounting and reporting by an entity that experiences a
decrease  in ownership in a subsidiary that is a business or nonprofit activity.
The  amendments also affect accounting and reporting by an entity that exchanges
a  group  of  assets  that  constitutes  a business or nonprofit activity for an
equity  interest  in another entity. The amendments in this update are effective
beginning  in  the  period  that an entity adopts SFAS No. 160, "Non-controlling
Interests in Consolidated Financial Statements - An Amendment of ARB No. 51." If
an  entity  has previously adopted SFAS No. 160 as of the date the amendments in
this  update  are  included  in  the   Accounting  Standards  Codification,  the
amendments in this update are effective beginning in the first interim or annual
reporting  period  ending  on or after December 15, 2009. The amendments in this
update  should  be  applied  retrospectively  to the first period that an entity
adopted SFAS No. 160. The adoption of this ASU did not have a material impact on
its  consolidated  statements.

                                       30
<PAGE>

In  January 2010, FASB issued ASU No. 2010-06 - Improving Disclosures about Fair
Value  Measurements.  This  update  provides  amendments to Subtopic 820-10 that
requires new disclosure as follows: 1) Transfers in and out of Levels 1 and 2. A
reporting entity should disclose separately the amounts of significant transfers
in  and  out  of  Level  1  and Level 2 fair value measurements and describe the
reasons  for  the  transfers. 2) Activity in Level 3 fair value measurements. In
the  reconciliation  for  fair value measurements using significant unobservable
inputs (Level 3), a reporting entity should present separately information about
purchases,  sales,  issuances, and settlements (that is, on a gross basis rather
than  as one net number).This update provides amendments to Subtopic 820-10 that
clarify existing disclosures as follows: 1) Level of disaggregation. A reporting
entity  should  provide  fair  value  measurement  disclosures for each class of
assets  and  liabilities.  A  class  is  often a subset of assets or liabilities
within  a  line  item in the statement of financial position. A reporting entity
needs  to  use  judgment  in  determining  the appropriate classes of assets and
liabilities.  2)  Disclosures about inputs and valuation techniques. A reporting
entity should provide disclosures about the valuation techniques and inputs used
to  measure  fair  value  for  both  recurring   and  nonrecurring  fair   value
measurements.  Those  disclosures  are required for fair value measurements that
fall  in  either  Level  2  or Level 3.The new disclosures and clarifications of
existing  disclosures  are  effective  for  interim and annual reporting periods
beginning  after  December 15, 2009, except for the disclosures about purchases,
sales,  issuances,  and  settlements  in the roll forward of activity in Level 3
fair  value  measurements.  Those  disclosures  are  effective  for fiscal years
beginning  after  December 15, 2010, and for interim periods within those fiscal
years. The Company adopted the disclosures standards, except for the disclosures
to  be  adopted  for  fiscal  year  beginning  after  December 15, 2010, and the
adoption  of  this  ASU  did  not  have  a  material  impact on its consolidated
financial  statements.

In  February  2010, the FASB issued ASU 2010-09, "Subsequent Events (Topic 855):
Amendments  to Certain Recognition and Disclosure Requirements," or ASU 2010-09.
ASU  2010-09  primarily  rescinds  the  requirement  that, for listed companies,
financial  statements  clearly disclose the date through which subsequent events
have  been evaluated. Subsequent events must still be evaluated through the date
of  financial  statement  issuance; however, the disclosure requirement has been
removed  to avoid conflicts with other SEC guidelines. ASU 2010-09 was effective
immediately  upon  issuance  and  was  adopted  in  February  2010.

In  April  2010,  the   FASB   issued  Accounting   Standards  Update   2010-13,
"Compensation-Stock  Compensation  (Topic  718):  Effect  of   Denominating  the
Exercise  Price  of a Share-Based Payment Award in the Currency of the Market in
Which  the  Underlying  Equity  Security  Trades,"  or  ASU 2010-13. ASU 2010-13
provides amendments to Topic 718 to clarify that an employee share-based payment
award  with  an  exercise  price  denominated in currency of a market in which a
substantial  porting  of  the  entity's  equity  securities trades should not be
considered  to contain a condition that is not a market, performance, or service
condition.  Therefore, an entity would not classify such an award as a liability
if it otherwise qualifies as equity. The amendments in this Update are effective
for fiscal years, and interim periods within those fiscal years, beginning on or
after December 15, 2010. The Company does not expect the adoption of ASU 2010-17
to  have  a  material  impact  on  its  consolidated  financial  statements.

                                       31
<PAGE>

Results  of  Operations

The  following  table  summarizes our results of operations for the three months
ended  June  30,  2010  and  2009.

<TABLE>
<CAPTION>
                                                                  Three Months Ended
                                                                       June 30,
                                                           2010                        2009
                                                --------------------------- ---------------------------
                                                               Percentage                  Percentage
                                                                   of                          of
                                                   Amount     total revenue   Amount       total revenue
                                               ------------   ------------- -----------    -------------
          <S>                                       <C>           <C>           <C>           <C>
Revenues                                        $15,207,428      100.0%     $11,681,464     100.0%
Gross Profit                                    $ 4,613,896       30.3%     $ 3,023,896      25.9%
Selling Expenses                                $   823,358        5.4%     $   477,777       4.1%
General and Administrative Expenses             $   773,762        5.1%     $   365,210       3.1%
Income from Operations                          $ 3,016,776       19.8%     $ 2,180,909      18.7%
Other Income (Expense), Net                     $   (57,532)      (0.4)%    $     6,635       0.1%
Change in Fair Value of Purchase Option
  Derivative Liability                          $    57,944        0.4%     $         -         -%
Income Tax Expenses                             $   864,724        5.7%     $   588,383       5.0%
Net Income                                      $ 2,152,464       14.2%     $ 1,599,161      13.7%
</TABLE>

Revenue.  Our  revenue  increased  by $3,525,964 or 30.2% to $15,207,428 for the
three  months  ended  June  30, 2010 from $11,681,464 for the three months ended
June 30, 2009 due to the opening of new store locations and increased same store
sales.  Of  this  increase, $1,135,750 or 7% of the increase was attributable to
new  stores,  with  the  remainder primarily attributable to our maturing stores
that  we  opened  during  the  three  months ended June 30, 2010. We operated 31
stores  as  of  June  30, 2010, as compared to 19 stores as of June 30, 2009. We
anticipate  that  our  overall  revenue  will  continue  to  increase as we open
additional  stores.

Gross  Profit.  Our  gross profit increased by $1,590,000 or 52.6% to $4,613,896
for  the  three  months ended June 30, 2010 from $3,023,896 for the three months
ended  June 30, 2009. Our gross margin increased from 25.9% for the three months
ended  June  30,  2009  to  30.3%  for the three months ended June 30, 2010 as a
result  of  selling  more over-the-counter drugs. We anticipate that our overall
gross  profit  will continue to increase as our sales increase. Additionally, we
anticipate  that  our  gross  margin  will increase as we will be able to obtain
better  pricing  terms from our suppliers and achieve further economies of scale
as  a  result  of purchasing larger quantities of products. However, in order to
increase  sales  volume we may lower our prices which may have an adverse effect
on  our margins. We presently do not privately label any of our products and are
constantly adjusting our product mix to meet customer demand and to maximize our
gross  margin.

Selling  Expenses.  Our  selling  expenses  increased  by  $345,581  or 72.3% to
$823,358  for  the  three months ended June 30, 2010 from $477,777 for the three
months  ended  June  30,  2009. The increase in selling expenses was primarily a
result of operating additional store locations. Selling expenses as a percentage
of  our  revenue  increased slightly to 5.4% for the three months ended June 30,
2010  from  4.1%  for  the  three months ended June 30, 2009. We expect that our
selling expenses will increase as we continue to expand our store network within
the  city  of  Hangzhou  as  well as into other cities within Zhejiang Province.

General  and  Administrative  Expenses.  Our general and administrative expenses
increased  by $408,552 or 111.9% to $773,762 for the three months ended June 30,
2010  from  $365,210  for  the  three  months  ended  June 30, 2009. General and
administrative expenses as a percentage of our revenue increased to 5.1% for the
three  months ended June 30, 2010 as compared to 3.1% for the three months ended
June  30,  2009.  The  increase in general administrative expenses relate to our
operating as a US publicly traded company during the three months ended June 30,
2010.  As  we  continue  to open drugstores in Hangzhou and to expand into other
cities  within  Zhejiang Province, further develop our infrastructure, and incur
expenses  related to being a U.S. public company, we anticipate that our general
and  administrative  expenses  will  increase  in  absolute dollars as well as a
percentage  of  total  revenues.

Income  from  Operations.  As a result of the increased gross margin, our income
from  operations  increased  by  $835,867  or  38.3% to $3,016,776 for the three
months  ended  June 30, 2010 from $2,180,909 for the three months ended June 30,
2009. Our operating margin for the three months ended June 30, 2010 and 2009 was
19.8%  and  18.7%,  respectively.

                                       32
<PAGE>

Income  Taxes. Our income tax expense increased to $864,724 for the three months
ended  June 30, 2010 from $588,383 for the three months ended June 30, 2009 as a
result  of  increased  operating  income.  Our effective tax rate increased from
26.9%  for  the  three  months ended June 30, 2009 to 28.6% for the three months
ended  June  30,  2010.

Net Income. As a result of the foregoing, our net income increased to $2,152,464
for  the  three  months ended June 30, 2010 from $1,599,161 for the three months
ended  June  30,  2009.

Liquidity

Three  months  ended  June  30,  2010

     For  the  three  months  ended  June  30,  2010,  we used cash in operating
activities of $527,675, as compared to cash generated by operating activities of
$454,652  for  the  three  months ended June 30, 2009. The decrease is primarily
attributable  an  increase in advances paid to suppliers of $2,736,505 offset by
an  increase  in  net  income of $553,303 and an increase in accounts payable of
$1,207,536  from  the  three  months  ended  June  30,  2009  to  June 30, 2010.

     We used $442,709 in investing activities during the three months ended June
30,  2010,  as  compared to cash used in investing activities of $178,561 during
the  three  months ended June 30, 2009 as a result of our store expansion during
the  three  months  ended  June  30,  2010.

     Cash  provided by financing activities was $15,923,536 for the three months
ended  June 30, 2010, as compared to cash provided by financing activities of $0
for  the  three  months  ended  June 30, 2009. The increase is due to the equity
offering which raised $15.4 million in net proceeds, after deducting underwriter
discount,  commission,  and  offering  expenses.

     As of August 13, 2010, we had cash of $13,915,167. Our total current assets
as  of  June  30,  2010  were  $34,049,410  and  our  total current liabilities,
excluding the $344,507 derivative liability, were $9,035,363 which resulted in a
net  working  capital  of  $25,014,047  as  of  June  30,  2010.

Capital  Resources

     In  April  2010,  we  sold  3.5  million shares of common stock in a public
offering at a price of $5.00 per share for gross proceeds of approximately $17.5
million.  We  anticipate  that  our existing capital resources will enable us to
continue  to  add  new  drugstores  in  Zhejiang  Province.  However,  if make a
significant acquisition that cannot be financed with our working capital, we may
need  additional  capital.

Contractual Obligations and Off-Balance Sheet Arrangements

Contractual  Obligations

     When we open store locations, we typically enter into lease agreements that
are  generally  between  three  to ten years. Our commitments for minimum rental
payments under our leases for the next five years and thereafter are as follows:

Three months ending June 30,
----------------------------
            2011             $    1,411,140
            2012                  1,698,291
            2013                  1,477,275
            2014                  1,235,845
            2015                    884,088
         Thereafter                 853,504

                                       33
<PAGE>

Logistics  Services  Commitments

     We use a third party service provider, Zhejiang Yingte Logistics Co., Ltd.,
("Yingte")  to  accept  goods from our suppliers and to deliver the goods to our
store  locations.  On  January 1, 2010 we entered into a one year agreement with
Yingte  and  are obligated to pay 1% of the purchase price of the goods received
from  our  suppliers by Yingte during the term of the agreement, from January 1,
2010  to  December  31,  2010,  with  a  contractual  minimum  of 2,900,000 RMB.

Off-balance  Sheet  Arrangements

     We  do  not  have  any  outstanding  financial guarantees or commitments to
guarantee the payment obligations of any third parties. We have not entered into
any  derivative  contracts  that  are  indexed  to  our shares and classified as
stockholder's  equity  or  that  are not reflected in our consolidated financial
statements.  Furthermore,  we do not have any retained or contingent interest in
assets  transferred to an unconsolidated entity that serves as credit, liquidity
or  market  risk support to such entity. We do not have any variable interest in
any  unconsolidated  entity  that  provides financing, liquidity, market risk or
credit  support to us or engages in leasing, hedging or research and development
services  with  us.

Exchange  Rates

     HJ  Group  maintains  its books and records in Renminbi ("RMB"), the lawful
currency  of  the  PRC.  In  general,  for  consolidation  purposes, the Company
translates  HJ  Group's  assets  and  liabilities  into  U.S.  Dollars using the
applicable  exchange  rates  prevailing  at  the  balance  sheet  date,  and the
statement of income is translated at average exchange rates during the reporting
period.  Adjustments  resulting  from  the  translation  of HJ Group's financial
statements  are  recorded  as  accumulated  other  comprehensive  income.

     Until  July  21,  2005,  RMB had been pegged to U.S. Dollars at the rate of
RMB8.30:  USD$1.00.  On  July 21, 2005, the PRC government reformed the exchange
rate  system into a managed floating exchange rate system based on market supply
and  demand  with reference to a basket of currencies. In addition, the exchange
rate  of  RMB  to USD was adjusted to RMB8.11: USD$1.00 as of July 21, 2005. The
People's Bank of China announces the closing price of a foreign currency such as
USD$  traded  against  RMB  in  the inter-bank foreign exchange market after the
closing  of  the  market  on  each  working  day,  which will become the unified
exchange  rate  for  the  trading  against RMB on the following working day. The
daily trading price of USD against RMB in the inter-bank foreign exchange market
is  allowed  to  float  within  a band of  0.3% around the unified exchange rate
published  by  the People's Bank of China. This quotation of exchange rates does
not  imply  free  convertibility of RMB to other foreign currencies. All foreign
exchange transactions continue to take place either through the Bank of China or
other  banks authorized to buy and sell foreign currencies at the exchange rates
quoted  by  the People's Bank of China. Approval of foreign currency payments by
the  Bank  of  China  or  other  institutions  required  submitting  a  payment
application  form  together  with  invoices,  shipping  documents  and  signed
contracts.

     The  exchange  rates used to translate amounts in RMB into U.S. Dollars for
the  purposes  of  preparing  the consolidated financial statements or otherwise
stated  in  this  report  were  as  follows:

                                             June 30,   March 31,    June 30,
                                                2010       2010        2009
                                             ---------- ---------- ------------
Balance sheet items, except for the           USD1:RMB   USD1:RMB    USD1:RMB
 registered and paid-up capital, as of end    0.14730    0.14670      0.1465
 of period/year

Amounts included in the statement of          USD1:RMB   USD1:RMB    USD1:RMB
 operations, statement of changes in          0.14673    0.14664     0.14663
 stockholders' equity and statement of cash
 flows for the period/ year ended

No  representation  is  made  that RMB amounts have been, or would be, converted
into  U.S.  Dollars  at  the  above  rates.

Inflation

     We  believe  that inflation has not had a material effect on our operations
to  date.

                                       34
<PAGE>

Item  3.  Quantitative  and  Qualitative  Disclosures  About  Market  Risk

     Not  applicable.

Item  4.  Controls  and  Procedures

Evaluation  of  Disclosure  Controls  and  Procedures

     As  of  June  30, 2010, we carried out an evaluation, under the supervision
and  with  the  participation  of  our management, including our chief executive
officer  and  chief  financial  officer,  of the effectiveness of the design and
operation  of  our  disclosure  controls  and  procedures,  as  defined in Rules
13a-15(e)  and  15d-15(e) under the Securities Exchange Act of 1934, as amended.
Based  upon  that  evaluation,  our  chief executive officer and chief financial
officer  concluded that, as of the end of the period covered by this report, our
disclosure  controls and procedures were ineffective at the reasonable assurance
level.

     In  our annual  report on  Form 10-K for  the year ended March 31, 2010, we
reported  certain  weaknesses involving control activities, primarily accounting
and  finance  personnel  weaknesses. Our current accounting staff members remain
relatively  inexperienced  in  U.S. GAAP- based reporting and require additional
training  so  as  to  meet  with  the  higher  demands  necessary to fulfill the
requirements  of  U.S.  GAAP-based  reporting  and  SEC  rules  and regulations.

     The Company's management has identified the steps it believes are necessary
to  address  the  weaknesses  described  above,  and  expect  that  we  will
satisfactorily address the control deficiencies and weaknesses relating to these
matters  by the end of our fiscal year ending March 31, 2011, although there can
be  no  assurance  that  compliance  will  be  achieved  in  this  time  frame.

     Management,  including  our chief executive officer and our chief financial
officer, does not expect that our disclosure controls and internal controls will
prevent  errors  and  omissions,  even  as  the same are improved to address any
deficiencies  and/or  weaknesses. A control system, no matter how well conceived
and  operated,  can  provide  only  reasonable, not absolute, assurance that the
objectives  of  the  control  system  are  met.  Over  time, controls may become
inadequate  because  of  changes in conditions or deterioration in the degree of
compliance  with policies or procedures. Further, the design of a control system
must  reflect  the fact that there are resource constraints, and the benefits of
controls  must  be  considered  relative to their costs. Because of the inherent
limitations  in  all  control  systems,  no  evaluation  of controls can provide
absolute  assurance  that  all  control issues and errors and omissions, if any,
within  the  Company  have been detected. These inherent limitations include the
realities  that  judgments in decision-making can be faulty, and that breakdowns
can  occur  because  of  simple  error or mistake. Additionally, controls can be
circumvented by the individual acts of some persons, by collusion of two or more
people,  or  by  management  override  of  the  control.

     Our  financial reporting process includes extensive procedures we undertake
in  order  to  obtain  assurance  regarding  the  reliability  of  our published
financial  statements,  notwithstanding  the  material  weaknesses  in  internal
control.  We expanded our review of accounting for business combinations to help
compensate  for  our  material weaknesses in order to provide assurance that the
financial  statements are free of material inaccuracies or omissions of material
fact.  As  a result, management, to the best of its knowledge, believes that (i)
this  report  does not contain any untrue statements of a material fact or omits
any  material  fact  and  (ii)  the  financial  statements  and  other financial
information  included  in this report have been prepared in conformity with U.S.
GAAP and fairly present in all material aspects our financial condition, results
of  operations,  and  cash  flows.

Changes  in  Internal  Control  over  Financial  Reporting

     There  were no changes in our internal control over financial reporting (as
defined  in  Rule  13a-15(f)  of the Securities Exchange Act of 1934) during the
period  covered  by  this  Quarterly  Report  on  Form 10-Q that have materially
affected,  or  are  reasonably likely to materially affect, our internal control
over  financial  reporting.

                                       35
<PAGE>

PART  II  -  OTHER  INFORMATION

Item  1.  Legal  Proceedings.

     Except  as  described  below,  we  know of no material, existing or pending
legal proceedings against us, nor are we involved as a plaintiff in any material
proceeding  or  pending litigation. There are no proceedings in which any of our
directors,  officers or affiliates, or any registered or beneficial stockholder,
is  an  adverse  party  or  has  a  material  interest  adverse  to our company.

     On December 8, 2009, Jiuzhou Pharmacy filed suit against The Ventana Group,
LLC and Michael Hom in the California Superior Court for the County of San Mateo
(Case Number CV490272), alleging breach of contract of an agreement entered into
with  the  defendants  in  2008  and  seeking  damages  of $25,000. The suit was
subsequently  amended  to  remove  Mr.  Hom as a defendant. In May 2010, Jiuzhou
Pharmacy  sought for default judgment against the remaining defendant, which was
granted  on  July  14, 2010. Jiuzhou Pharmacy is in the process of executing the
judgment  against  the  defendant.

Item  1A.  Risk  Factors.

     As  of and for the three months ended June 30, 2010, there were no material
changes  in  our  risk  factors  from those disclosed in Part I, Item 1A, of our
annual  report  on  Form  10-K  as  of  and  for  the year ended March 31, 2010.

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

     None

Item  3.  Defaults  upon  Senior  Securities.

     None

Item  4.  Reserved.

Item  5.  Other  Information.

     None

Item  6.  Exhibits.

                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit
Number   Description
-------  ----------------------------------------------------------------------------------
 <S>                                        <C>
2        Share Exchange Agreement among Kerrisdale Mining Corporation ("Kerrisdale"),
          certain of its stockholders, Renovation Investment (Hong Kong) Co., Ltd.
          ("Renovation") and its shareholders dated September 17, 2009 (1)
3.1      Articles of Incorporation of Kerrisdale (2)
3.2      Certificate of Amendment to Articles of Incorporation of Kerrisdale filed with the
          Nevada Secretary of State on July 14, 2008 (3)
3.3      Articles of Merger between Kerrisdale Mining and China Jo-Jo Drugstores, Inc.
          filed with the Nevada Secretary of State on September 22, 2009 (1)
3.4      Bylaws (2)
3.5      Text of Amendments to the Bylaws (3)
3.6      Certificate of Change Pursuant to NRS 78.209 with an effective date of April 9,
          2010 (8)
4        Specimen of Common Stock Certificate (2)
10.1     Consulting Services Agreement between Zhejiang Jiuxin Investment Management Co.,
          Ltd. ("Jiuxin Management") and Hangzhou Jiuzhou Grand Pharmacy Chain Co., Ltd.
          ("Jiuzhou Pharmacy") dated August 1, 2009 (1)
</TABLE>

                                       36
<PAGE>

<TABLE>
<CAPTION>
 <S>                                        <C>
10.2     Operating Agreement among Jiuxin Management, Jiuzhou Pharmacy and its owners dated
          August 1, 2009 (1)
10.3     Equity Pledge Agreement among Jiuxin Management, Jiuzhou Pharmacy and its owners
          dated August 1, 2009 (1)
10.4     Option Agreement among Jiuxin Management, Jiuzhou Pharmacy and its owners dated
          August 1, 2009 (1)
10.5     Voting Rights Proxy Agreement among Jiuxin Management, Jiuzhou Pharmacy and its
          owners dated August 1, 2009 (1)
10.6     Consulting Services Agreement between Jiuxin Management and Hangzhou Jiuzhou
          Clinic of Integrated Traditional and Western Medicine (General Partnership)
          ("Jiuzhou Clinic") dated August 1, 2009 (1)
10.7     Operating Agreement among Jiuxin Management, Jiuzhou Clinic and its owners dated
          August 1, 2009 (1)
10.8     Equity Pledge Agreement among Jiuxin Management, Jiuzhou Clinic and its owners
          dated August 1, 2009 (1)
10.9     Option Agreement among Jiuxin Management, Jiuzhou Clinic and its owners dated
          August 1, 2009 (1)
10.10    Voting Rights Proxy Agreement among Jiuxin Management, Jiuzhou Clinic and its
          owners dated August 1, 2009 (1)
10.11    Consulting Services Agreement between Jiuxin Management and Hangzhou Jiuzhou
          Medical & Public Health Service Co., Ltd. ("Jiuzhou Service") dated August 1,
          2009 (1)
10.12    Operating Agreement among Jiuxin Management, Jiuzhou Service and its owners dated
          August 1, 2009 (1)
10.13    Equity Pledge Agreement among Jiuxin Management, Jiuzhou Service and its owners
          dated August 1, 2009 (1)
10.14    Option Agreement among Jiuxin Management, Jiuzhou Service and its owners dated
          August 1, 2009 (1)
10.15    Voting Rights Proxy Agreement among Jiuxin Management, Jiuzhou Service and its
          owners dated August 1, 2009 (1)
10.16    Amendment to Consulting Services Agreement between Jiuxin Management and Jiuzhou
          Pharmacy dated October 27, 2009 (4)
10.17    Amendment to Operating Agreement between Jiuxin Management and Jiuzhou Pharmacy
          dated October 27, 2009 (4)
10.18    Amendment to Option Agreement between Jiuxin Management and Jiuzhou Pharmacy dated
          October 27, 2009 (4)
10.19    Amendment to Voting Rights Proxy Agreement between Jiuxin Management and Jiuzhou
          Pharmacy dated October 27, 2009 (4)
10.20    Amendment to Consulting Services Agreement between Jiuxin Management and Jiuzhou
          Clinic dated October 27, 2009 (4)
10.21    Amendment to Operating Agreement between Jiuxin Management and Jiuzhou Clinic
          dated October 27, 2009 (4)
10.22    Amendment to Option Agreement between Jiuxin Management and Jiuzhou Clinic dated
          October 27, 2009 (4)
10.23    Amendment to Voting Rights Proxy Agreement between Jiuxin Management and Jiuzhou
          Clinic dated October 27, 2009 (4)
10.24    Amendment to Consulting Services Agreement between Jiuxin Management and Jiuzhou
          Service dated October 27, 2009 (4)
10.25    Amendment to Operating Agreement between Jiuxin Management and Jiuzhou Service
          dated October 27, 2009 (4)
10.26    Amendment to Option Agreement between Jiuxin Management and Jiuzhou Service dated
          October 27, 2009 (4)
10.27    Amendment to Voting Rights Proxy Agreement between Jiuxin Management and Jiuzhou
          Service dated October 27, 2009 (4)
10.28    Director Offer Letter with Marc Thomas Serrio dated March 15, 2010 (6)
10.29    Indemnification Agreement with Marc Thomas Serrio dated March 15, 2010 (6)
10.30    Loanout Agreement with Worldwide Officers, Inc. dated May 14, 2010 (9)
10.31    Indemnification Agreement with Mr. Bennet Tchaikovsky dated May 14, 2010 (9)
</TABLE>

                                       37
<PAGE>

<TABLE>
<CAPTION>
 <S>                              <C>
31.1     Section 302 Certification by the Corporation's Chief Executive Officer *
31.2     Section 302 Certification by the Corporation's Chief Financial Officer *
32.1     Section 906 Certification by the Corporation's Chief Executive Officer *
32.2     Section 906 Certification by the Corporation's Chief Financial Officer *
99.1     Agreement between Jiuzhou Pharmacy and Yingte Logistics Co., Ltd. ("Yingte
          Logistics") dated January 1, 2009 (1)
99.2     Form of CFO Services Agreement entered into between Jiuzhou Pharmacy and Worldwide
          Officers, Inc. on July 30, 2009 (5)
99.3     Agreement between Jiuzhou Pharmacy and Yingte Logistics dated January 1, 2010 (7)
99.4     Project Agreement between The People's Government of Qianhong Village, Lin'an,
          Zhejiang Province (the "Qianhong Local Government") and Jiuzhou Pharmacy dated
          February 27, 2010 (10)
99.5     Security Deposit Agreement between the Qianhong Local Government and Jiuzhou
          Pharmacy dated February 27, 2010 (10)


*        Filed herewith
(1)      Incorporated by reference from the Registrant's Registration Statement on Form SB-
          2 filed on November 28, 2007.
(2)      Incorporated by reference from the Registrant's Current Report on Form 8-K filed
          on July 15, 2008.
(3)      Incorporated by reference from the Registrant's Current Report on Form 8-K filed
          on September 24, 2009.
(4)      Incorporated by reference from the Registrant's Current Report on Form 8-K filed
          on October 30, 2009.
(5)      Incorporated by reference from the Registrant's Registration Statement on Form S-
          1/A filed on January 27, 2010.
(6)      Incorporated by reference from the Registrant's Current Report on Form 8-K filed
          on March 16, 2010.
(7)      Incorporated by reference from the Registrant's Registration Statement on Form S-
          1/A filed on March 23, 2010
(8)      Incorporated by reference from the Registrant's Current Report on Form 8-K filed
          on April 14, 2010.
(9)      Incorporated by reference from the Registrant's Current Report on Form 8-K filed
          on May 17, 2010.
(10)     Incorporated by reference from the Registrant's Annual Report on Form 10-K filed
          on June 29, 2010.
</TABLE>

                                       38
<PAGE>

                                   SIGNATURES

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


                                             China Jo-Jo Drugstores, Inc.
                                             (Registrant)

Date: August 16, 2010                        By: /s/ Lei Liu
                                                 ===============================
                                                 Lei Liu
                                                 Chief Executive Officer


Date: August 16, 2010                        By: /s/ Bennet P. Tchaikovsky
                                                 ===============================
                                                 Bennet P. Tchaikovsky
                                                 Chief Financial Officer


                                       39