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

| [       ] | TRANSITION      REPORT PUSUANT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|----------------|------------------------------------------------------------------------------------------------|

| DELAWARE                                                            |   | 43-1401158                      |
|---------------------------------------------------------------------|--------|---------------------------------|
| (State of Other      Jurisdiction of incorporation or organization) |   | (I.R.S. Employer      I.D. No.) |

| Large      accelerated filer o |   | Accelerated      filer o |   | Non-accelerated      filer oreporting      company) |   | Smaller      reporting company ý |
|-------------------------------------|--------|---------------------------------------|--------|----------------------------------------------------------|--------|--------------------------------------------|

----

|   | QUARTERLY      PERIOD ENDED June 30, 2008 |
|--------|-------------------------------------------|

| PART      1 - FINANCICAL INFORMATION |
|--------------------------------------|
|                                 |   |   |
|                                 |   | Page |
| Item      1:                         | Financial      Statemtents |                                                                                                                                      3 |
|                                 |   |   |
| Item 2:                              | Management's      Discussion and Analysis of Financial Condition |                                                                                                                                         10 |
|                                 | and Results of      Operations |   |
|                                 |   |   |
| Item 3:                              | Quantitative and      Qualitative Disclosures About Market Risk |                                                                                                                                    11 |
|                                 |   |   |
| Item 4T:                             | Controls and      Procedures |                                                                                                                                    11 |
|                                 |   |   |
| PART      11 - OTHER INFORMATION     |
|                                 |   |   |
| Item 1:                              | Legal      Proceedings |                                                                                                                                    12 |
|                                 |   |   |
| Item 1A:                             | Risk    Factors |                                                                                                                                         12 |
|                                 |   |   |
| Item 2:                              | Unregistered Sales      of Equity Securities and Use of Proceeds |                                                                                                                                    12 |
|                                 |   |   |
| Item 3:                              | Defaults Upon Senior      Securities |                                                                                                                                         12 |
|                                 |   |   |
| Item 4:                              | Submission of      Matters to a Vote of Security Holders |                                                                                                                                    12 |
|                                 |   |   |
| Item 5:                              | Other      Infomration |                                                                                                                                         12 |
|                                 |   |   |
| Item 6:                              | Exhibits |                                                                                                                                         12 |

----

| Item      1. | Financial      Statements |
|--------------|---------------------------|

|                                                                                                                                                        CHINA HUAREN ORGANIC PRODUCTS INC. AND SUBSIDIARY |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED      BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   | June      30, 2008 |   | December      31, 2007 |
| Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   | Unaudited |   | Audited |
| Current      Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Cash      and equivalents | $ |                       14,510 | $ |                       76,658 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Accounts      receivable, net of allowance for doubtful amounts of    $48,567 |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | and      $45,668 , respectively |   |                  4,808,161 |   |                  4,521,106 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Inventories |   |   |   |                     300,373 |   |                     762,972 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Prepaid      expenses |   |                  1,572,500 |   |                  1,591,952 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Other      current assets |   |                         8,019 |   |                            110 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | Total      Current Assets |   |                  6,703,563 |   |                  6,952,798 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| Property      and Equipment, Net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                         9,211 |   |                       10,670 |
| Deposit      for Purchase of Fixed Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  3,927,424 |   |                  3,692,950 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | Total      Assets |   |                10,640,198 |   |                10,656,418 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and Stockholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Current      Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Accounts      payable and accrued expenses |   |                       98,824 |   |                       87,732 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Loan      from officers/stockholders |   |                       93,670 |   |                       90,132 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Tax      payable |   |   |   |                  1,677,889 |   |                  1,570,078 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Other      current liabilities |   |                            481 |   |                         5,127 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | Total      Current Liabilities |   |                  1,870,864 |   |                  1,753,069 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| Stockholders'      Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Series      C preferred stock, $0.01 par value, 150,000 shares    authorized |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 100,000  shares      issued and outstanding |   |                         1,000 |   |                         1,000 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Common      stock,$0.01 par value,100,000,000 shares authorized |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 14,699,853      shares issued and outstanding |   | 146,999 |   |                     146,999 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Additional      paid-in capital |   | 6,043,876 |   |                  6,043,876 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Reserve      fund |   |   | 259,244 |   |                     259,244 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Retained      earnings |   | 766,752 |   |                  1,447,838 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Accumulated      other comprehensive income |   | 1,551,463 |   |                  1,004,392 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | Total      Shareholders’ Equity |   |                  8,769,334 |   | 8,903,349 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | Total      Liabilities and Stockholders’ Equity | $ |                10,640,198 | $ | 10,656,418 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                      CHINA      HUAREN ORGANIC PRODUCTS INC. AND SUBSIDIARY |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED      STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME      (LOSS)  (UNAUDITED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   | Three      Months Ended June 30, |   | Six      Months Ended June 30, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   | 2008 |   | 2007 |   | 2008 |   | 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   | Unaudited |   | Unaudited |   | Unaudited |   | Unaudited |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | $ |                             - | $ |              1,345,385 |   |                             - | $ |              6,580,678 |
| Cost      of Goods Sold                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |                             - |   |                 789,864 |   |                             - |   |              5,773,838 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Gross      Profit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |                             - |   |                 555,521 |   |                             - |   |                 806,840 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Selling      expenses |   |   |                     2,331 |   |                     3,102 |   |                     4,912 |   |                   73,048 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | General      and administrative expenses |   |                   47,781 |   |                   99,712 |   |                   61,835 |   |                 164,086 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Total      Operation Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |                   50,112 |   |                 102,814 |   |                   66,747 |   |                 237,134 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      Income  From Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                  (50,112) |   |                 452,707 |   |                  (66,747) |   |                 569,706 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income (Expenses)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Interest      income |   |   |                     4,656 |   |                     4,228 |   |                     9,180 |   |                     8,423 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Other      expense, net |   |   |                  (45,673) |   |                  (32,629) |   |                  (80,582) |   |                  (77,463) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Loss      on disposal of inventory |   |                (542,937) |   |                             - |   |                (542,937) |   |                             - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Total      Other Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |                (583,954) |   |                  (28,401) |   |                (614,339) |   |                  (69,040) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      Income  Before Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                (634,066) |   |                 424,306 |   |                (681,339) |   |                 500,666 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                             - |   |                 140,021 |   |                             - |   |                 165,220 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net      (Loss)  Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $ |                (634,066) | $ |                 284,285 |   |                (681,086) | $ |                 335,446 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      Currency Translation Adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                 189,733 |   |                 124,251 |   |                 547,071 |   |                 209,474 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      (Loss) Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $ |                (444,333) |  $ |                 408,536 |   |                (134,015) |  $ |                 544,920 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net      (Loss) Income  Per Common Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|  -Basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | $ |                      (0.04) |  $ | 0.02 |   |                      (0.05) |  $ | 0.02 |
|  -Diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | $ |                      (0.04) |  $ | 0.02 |   |                      (0.05) |  $ | 0.02 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      Common Shares Outstanding*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|  -Basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |            14,699,853 |   |            14,699,853 |   |            14,699,853 |   |            14,699,853 |
|  -Diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |            14,999,850 |   |            14,999,850 |   |            14,999,850 |   |            14,999,850 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| *      As restated to reflect recapitalization and the subsequent reverse stock      split.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                 CHINA HUAREN ORGANIC PRODUCTS INC. AND SUBSIDIARY |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |  Six      Months Ended June 30, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |  2008 |   |  2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |  Unaudited |   |  Unaudited |
| Cash      Flows From Operating Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
| Net  (Loss)      Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $ |                 (681,086) |  $ |                   335,446 |
| Adjustments      to Reconcile Net Income to Net Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |
| Provided      by Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Bad      debt adjustment |   |   |                            - |   |                     20,358 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Depreciation |   |   |                       2,076 |   |                       6,145 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Loss      on disposal of inventory |   |                   542,937 |   |                            - |
| Changes      in operating assets and liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Accounts      receivable |   |   |                            - |   |              (4,026,577) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Inventories |   |   |                   (47,727) |   |                4,417,882 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Other      receivable |   |   |                        (575) |   |                            - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Employee      travel and operation advance |   |                            - |   |                     15,248 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Advances      to suppliers |   |   |                     (7,290) |   |                     49,478 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Prepaid      expenses |   |   |                   113,333 |   |                   194,259 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Accounts      payable and accrued expenses |   |                       5,192 |   |                     67,777 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Customer      deposit |   |   |                            - |   |                   (75,052) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Tax      payable |   |   |                            - |   |                   423,251 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Other      current liabilities |   |   |                     (4,675) |   |                          642 |
| Net      Cash (Used in) Provided by Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                   (77,815) |   |                1,428,857 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| Cash      Flows From Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Proceeds      from repayment of related party advance |   |                            - |   |                     37,441 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Payment      for deposit of purchase of fixed assets |   |                            - |   |              (1,513,948) |
| Net      Cash Used in Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                            - |   |              (1,476,507) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| Cash      Flows From Financing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Proceeds      from officers/shareholders loans |   |                     72,896 |   |                       2,202 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Payment      for loan to officers/shareholders |   |                   (74,937) |   |                       1,885 |
| Net      Cash (Used in) Provided by Financing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                     (2,041) |   |                       4,087 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| Net      Decrease in Cash and Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   (79,856) |   |                   (43,563) |
| Effect      of Exchange Rate Changes on Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                     17,706 |   |                     (3,026) |
| Cash      and Equivalents, at Beginning of Period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                     76,660 |   |                     86,266 |
| Cash      and Equivalents, at End of Period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $ |                     14,510 |  $ |                     39,677 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| See      notes to consolidated financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |

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|                               |   |                                                                                                                                                    |                                                                                              |                                                                                                         |
|------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
|                               |   |                                                                                                                                                    |                                                                                              |                                                                                                         |   |
|                               |   |                                                                                                                                                    | June      30, 2008                                                                                |                                                                                                         |  December      31, 2007 |
|                               |   |                                                                                                                                                    | Unaudited                                                                                         |                                                                                                         | Audited |
| Finished      goods                | $      |                258,038                                                       | $                                                                                                 |                242,633            |
| Work      in process               |   |                          - |                                                                                              |                480,532            |
| Packaging      materials and other |   |                  42,335                                            |                                                                                              |                  39,807 |
|                               |   |                                                                                                                                                    |                                                                                              |                                                                                                         |   |
| Total                              |   | $                                                                                                                                                       |                300,373 | $                                                                                                            |                762,972 |
|                               |   |                                                                                                                                                    |                                                                                              |                                                                                                         |   |

|                                              |   |                                                                                                                              | June      30, 2008                                                                      |                                                                                                                              | December      31, 2007                                                                  |
|---------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
|                                              |   |                                                                                                                              | Unaudited                                                                               |                                                                                                                              | Audited                                                                                 |
| Prepaid      office rent                          | $      |                      379 |  $                                                                                 |                      267 |
| Prepaid      lease fee for the right to use lands |   |              1,572,121                                           |                                                                                    |              1,591,685                                           |
|                                              |   | $                                                                                                                                 |              1,572,500 |  $                                                                                                                           |              1,591,952 |
| Total                                             |   |                                                                                                                              |                                                                                    |                                                                                                                              |                                                                                    |

|                                | Estimated      Life |   | June      30, 2008 |   |   | December      31, 2007 |   |
|-------------------------------------|---------------------|--------|--------------------|--------|--------|------------------------|--------|
|                                |                |   | Unaudited          |   |   | Audited                |   |
| Office      equipments              | 5      years        |   | $                  | 23,322 |   |                   | $      | 21,930 |   |
| Subtotal                            |                |   |               | 23,322 |   |                   |   | 21,930 |   |
| Less:      Accumulated depreciation |                |   |               | 14,111 |   |                   |   | 11,260 |   |
| Total                               |                |   | $                  | 9,211  |   |                   | $      | 10,670 |   |
|                                |                |   |               |   |   |                   |   |   |   |

|                                                  |   | June      30, 2008 |      |   | December      31, 2007 |   |
|-------------------------------------------------------|--------|--------------------|-----------|--------|------------------------|--------|
|                                                  |   | Unaudited          |      |   | Audited                |   |
| Deposit      for purchase office building             |   | $                  | 1,478,123 |   |                   | $      | 1,389,876 |   |
| Deposit      for purchase land use right from village |   |               | 2,449,301 |   |                   |   | 2,303,074 |   |
| Total                                                 |   | $                  | 3,927,424 |   |                   | $      | 3,692,950 |   |
|                                                  |   |               |      |   |                   |   |   |   |

| Quarter      Ending June 30,                                                                                                                                                                                                                                                                                                                      |   |   |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|
| 2009                                                                                                                                                                                                                                                                                                                                              |   | $      | 147,308   |   |
| 2010                                                                                                                                                                                                                                                                                                                                              |   |   | 145,792   |   |
| 2011                                                                                                                                                                                                                                                                                                                                              |   |   | 145,792   |   |
| 2012                                                                                                                                                                                                                                                                                                                                              |   |   | 145,792   |   |
| 2013                                                                                                                                                                                                                                                                                                                                              |   |   | 145,792   |   |
|               Thereafter                                                                                                                                                                                                                                                                                  |   |   | 6,281,193 |   |
|                                                         Total minimum payments required |   | $      | 7,011,669 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |   |      |   |

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|                                               |   | June      30, 2008 |      |   | December      31, 2007 |   |
|----------------------------------------------------|--------|--------------------|-----------|--------|------------------------|--------|
|                                               |   | Unaudited          |      |   | Audited                |   |
| Value-added      tax                               |   | $                  | 593,229   |   |                   | $      | 557,813 |   |
| Income      tax                                    |   |               | 1,025,806 |   |                   |   | 964,564 |   |
| Delaware      franchise taxes                      |   |               | 30,654    |   |                   |   | 21,186 |   |
| Individual      income tax withholdings            |   |               | 6,515     |   |                   |   | 6,126 |   |
| City      construction, education, and other taxes |   |               | 21,685    |   |                   |   | 20,389 |   |
| Total                                              |   | $                  | 1,677,889 |   |                   | $      | 1,570,078 |   |
|                                               |   |               |      |   |                   |   |   |   |

----

| Item      2. | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |
|--------------|-------------------------------------------------------------------------------------------------------|

| ·   | There      are thousand of individuals involved in selling our products – but we      incur no payroll obligation for them. They are owners or employees of the      companies that distribute for us.  So our selling expenses were      less than 2% of revenue in the first six months of 2007 and have been less      than 4% of our revenue since we began operations in  2005. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      manufacturing activity is completely outsourced to enterprises dedicated      to organic agricultural manufacturing.  As a result, during the      first six months of 2007 our general and administrative expense equaled      less than 2.5% of our revenue.  During the first six months of      2008 and 2007 our depreciation expense – often a major factor in      agribusiness operations – were only $2,076 and 6,145, respectively, since      we own no manufacturing equipment. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

| PART      II   ‐   Other Information                                |   |                                                              |   |   |   |
|---------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|--------|--------|
|                                                                                                    |   |                                                              |   |   |   |   |   |
| Item      1.                                                                                            |   | Legal      Proceedings                                            |   |   |   |   |   |
|                                                                                                    |   | None                                                              |   |   |   |   |   |
|                                                                                                    |   |                                                              |   |   |   |   |   |
| Item      1A.                                                                                           |   | Risk      Factors                                                 |   |   |   |   |   |
| A      smaller reporting company is not required to provide the information      required by this Item. |
|                                                                                                    |   |                                                              |   |   |   |   |   |
| Item      2.                                                                                            |   | Unregistered      Sales of Equity Securities and Use of Proceeds. |   |
|                                                                                                    |   | None                                                              |   |   |   |   |   |
|                                                                                                    |   |                                                              |   |   |   |   |   |
| Item      3.                                                                                            |   | Defaults      upon Senior Securities                              |   |   |   |   |
|                                                                                                    |   | None                                                              |   |   |   |   |   |
|                                                                                                    |   |                                                              |   |   |   |   |   |
| Item      4.                                                                                            |   | Submission      of Matters to a Vote of Security Holders          |   |   |
|                                                                                                    |   | None                                                              |   |   |   |   |   |
|                                                                                                    |   |                                                              |   |   |   |   |   |
| Item      5.                                                                                            |   | Other      Information                                            |   |   |   |   |   |
|                                                                                                    |   | None                                                              |   |   |   |   |   |
|                                                                                                    |   |                                                              |   |   |   |   |   |
| Item      6.                                                                                            |   | Exhibits                                                          |   |   |   |   |   |
|                                                                                                    |   |                                                              |   |   |   |   |   |

| 31     | Certification      of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 302 of the Sarbanes-Oxley Act of  2002 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 32     | Certification      of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002 |
|   |                                                                                                                                                         |

| Date:      August 19, 2008 | By:      /s/ Yushu    Cao |
|----------------------------|---------------------------|

|   |                            Mrs.      Yushu Cao, Chief Executive Officer |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                and Chief Financial Officer |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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