----

----

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

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

|                  Florida        |          65-0636168       |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
|  (State or Other Jurisdiction of incorporation or organization)                                                                               | (I.R.S. Employer I.D. No.)                                                                 |

----

|              |                                                                                                                                         | Page No |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------|---------|
| Part I            | Financial Information                                                                                                                        |    |
|              |                                                                                                                                         |    |
| Item 1.           | Financial Statements:                                                                                                                        |    |
|              | Condensed Balance Sheet – September 30, 2010 (unaudited) andJ une 30, 2009                                                             | 2       |
|              | Condensed Statements of Operations and Other Comprehensive Income (Loss) – for the Three Ended September 30, 2010 and 2009 (Unaudited) | 3       |
|              | Consolidated Statements of Cash Flows – for the Three Months Ended September 30, 2010 and 2009 (Unaudited)                        | 4       |
|              | Notes to Consolidated Financial Statements (Unaudited)                                                                                       | 5       |
| Item 2.           | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                             | 10      |
| Item 3            | Quantitative and Qualitative Disclosures about Market Risk                                                                                   | 14      |
| Item 4.           | Controls and Procedures                                                                                                                      | 14      |
|              |                                                                                                                                         |    |
| Part II           | Other Information                                                                                                                            |    |
|              |                                                                                                                                         |    |
| Item 1.           | Legal Proceedings                                                                                                                            | 15      |
| Items 1A.         | Risk Factors                                                                                                                                 | 15      |
| Item 2.           | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                  | 15      |
| Item 3.           | Defaults upon Senior Securities                                                                                                              | 15      |
| Item 4.           | Reserved                                                                                                                                     | 15      |
| Item 5.           | Other Information                                                                                                                            | 15      |
| Item 6.           | Exhibits                                                                                                                                     | 15      |
|              |                                                                                                                                         |    |
|   Signatures |

----

|                                                                                                                                                                                   |   |              |        |   |    |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|---------|--------|
| AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES                                                                                                                                       |
| CONSOLIDATED BALANCE SHEETS                                                                                                                                                            |
|                                                                                                                                                                                   |   |              |        |   |    |   |
|                                                                                                                                                                                   |   |              |        |   |    |   |
|                                                                                                                                                                                   |   | September 30      |        |   | June 30 |   |
|                                                                                                                                                                                   |   | 2010              |        |   | 2010    |   |
|                                                                                                                                                                                   |   |  (Unaudited) |        |   |    |   |
| ASSETS                                                                                                                                                                                 |
| CURRENT ASSETS:                                                                                                                                                                        |   |              |        |   |    |   |
|      Cash                                                                                                                                                     |   | $                 | 3,450,647   |   |    | $      | 3,985,710 |   |
|      Accounts receivable, net                                                                                                                                 |   |              | 2,261,219   |   |    |   | 1,724,198 |   |
|      Loan receivable                                                                                                                                          |   |              | 415,545     |   |    |   | 748,790 |   |
|      Inventory                                                                                                                                                |   |              | 1,397,839   |   |    |   | 1,564,975 |   |
|      Deposits with suppliers                                                                                                                                  |   |              | 486,764     |   |    |   | 475,042 |   |
|      Prepaid expenses and sundry current assets                                                                                                               |   |              | 485,254     |   |    |   | 421,391 |   |
| TOTAL CURRENT ASSETS                                                                                                                                                                   |   |              | 8,497,270   |   |    |   | 8,920,106 |   |
|                                                                                                                                                                                   |   |              |        |   |    |   |   |   |
| LONG - TERM ASSETS                                                                                                                                                                     |   |              |        |   |    |   |   |   |
| Property and equipment, net of accummulated depreciation                                                                                                                               |   |              | 26,460,534  |   |    |   | 25,569,782 |   |
| Other intangible assets                                                                                                                                                                |   |              | 1,426,137   |   |    |   | 1,431,182 |   |
| Goodwill                                                                                                                                                                               |   |              | 19,279,940  |   |    |   | 19,012,321 |   |
| Deferred tax assets                                                                                                                                                                    |   |              | 3,331,045   |   |    |   | 3,394,103 |   |
| TOTAL LONG-TERM ASSETS                                                                                                                                                                 |   |              | 50,497,656  |   |    |   | 49,407,388 |   |
|                                                                                                                                                                                   |   |              |        |   |    |   |   |   |
| TOTAL ASSETS                                                                                                                                                                           |   | $                 | 58,994,927  |   |    | $      | 58,327,494 |   |
|                                                                                                                                                                                   |   |              |        |   |    |   |   |   |
|                                                                                                                                                                                   |   |              |        |   |    |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                   |
|                                                                                                                                                                                   |   |              |        |   |    |   |   |   |
|                                                                                                                                                                                   |   |              |        |   |    |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                   |   |              |        |   |    |   |   |   |
|      Short-Term borrowings                                                                                                                                    |   | $                 | 1,045,072   |   |    | $      | 293,746 |   |
|      Accounts payable                                                                                                                                         |   |              | 3,122,749   |   |    |   | 2,965,514 |   |
|      Current portion of long term debt - other                                                                                                                |   |              | 47,775      |   |    |   | 46,999 |   |
|      Current portion of long term debt - related parties                                                                                                      |   |              | 96,228      |   |    |   | 94,760 |   |
|      Accrued expenses and taxes payable and other sundry current liabilities                                                                                  |   |              | 2,113,302   |   |    |   | 2,076,555 |   |
|      Loan payable - Bank                                                                                                                                      |   |              | 8,211,284   |   |    |   | 8,078,019 |   |
| TOTAL CURRENT LIABILITIES                                                                                                                                                              |   |              | 14,636,410  |   |    |   | 13,555,593 |   |
|                                                                                                                                                                                   |   |              |        |   |    |   |   |   |
| LONG-TERM DEBT-- RELATED PARTIES                                                                                                                                                       |   |              | 6,433,532   |   |    |   | 6,329,118 |   |
|                              -- OTHER |   |              | 2,258,598   |   |    |   | 2,221,943 |   |
| WARRANT AND DERIVATIVE LIABILITIES                                                                                                                                                     |   |              | 1,690,817   |   |    |   | 1,913,534 |   |
|                                                                                                                                                                                   |   |              |        |   |    |   |   |   |
| Common stock, par value $0.001, 100,000,000 shares authorized,                                                                                                                         |   |              |        |   |    |   |   |   |
| 46,494,903 shares issued and outstanding  at September 30,2010 and June 30, 2010                                                                                             |   |              | 46,495      |   |    |   | 46,495 |   |
|                                                                                                                                                                                   |   |              |        |   |    |   |   |   |
| Additional paid in capital                                                                                                                                                             |   |              | 49,736,600  |   |    |   | 49,594,553 |   |
| Accumulated deficit                                                                                                                                                                    |   |              | (16,252,539 | )      |    |   | (15,598,600 | ) |
| Other comprehensive income                                                                                                                                                             |   |              | 735,721     |   |    |   | 525,555 |   |
| TOTAL STOCKHOLDERS' EQUITY OF THE COMPANY                                                                                                                                              |   |              | 34,266,277  |   |    |   | 34,568,003 |   |
|                                                                                                                                                                                   |   |              |        |   |    |   |   |   |
| NONCONTROLLING INTEREST IN SUBSIDIARIES                                                                                                                                                |   |              | (290,707    | )      |    |   | (260,697 | ) |
| TOTAL EQUITY                                                                                                                                                                           |   |              | 33,975,570  |   |    |   | 34,307,306 |   |
|                                                                                                                                                                                   |   |              |        |   |    |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                             |   | $                 | 58,994,927  |   |    | $      | 58,327,494 |   |
|                                                                                                                                                                                   |   |              |        |   |    |   |   |   |

----

| AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES                            |   |
|-----------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) |   |
|   (Unaudited)                                                          |   |
|                                                                        |   |   |   |   |   |   |
|                                                                        |   | For the three months ended |   |
|                                                                        |   | September 30, |   |
|                                                                        |   | 2010 |   |   | 2009 |   |
|                                                                        |   |   |   |   |   |   |
| SALES                                                                       |   | $ | 1,740,673 |   |   | $ | 1,446,663 |   |
| COST OF SALES                                                               |   |   | 827,295 |   |   |   | 450,143 |   |
| GROSS PROFIT                                                                |   |   | 913,379 |   |   |   | 996,520 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                                                         |   |   |   |   |   |   |   |   |
|   Research and development expense                                |   |   | 85,448 |   |   |   | 113,303 |   |
|   General and administrative expenses                             |   |   | 909,057 |   |   |   | 877,484 |   |
|   Selling expenses                                                |   |   | 511,821 |   |   |   | 260,894 |   |
|   Depreciation and amortization                                   |   |   | 152,044 |   |   |   | 109,217 |   |
|       TOTAL COSTS AND EXPENSES                |   |   | 1,658,370 |   |   |   | 1,360,898 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                                        |   |   | (744,991 | ) |   |   | (364,378 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE):                                                     |   |   |   |   |   |   |   |   |
|   Interest expense, net of interest income                        |   |   | (374,781 | ) |   |   | (592,084 | ) |
|   Change in fair value of warrant and derivative liabilities      |   |   | 222,717 |   |   |   | (2,142,159 | ) |
|   Gain on foreign currency transactions                           |   |   | 0 |   |   |   | 0 |   |
|   Loss on disposal of assets                                      |   |   | 0 |   |   |   | (21,416 | ) |
|      TOTAL OTHER INCOME (EXPENSE)                  |   |   | (152,064 | ) |   |   | (2,755,659 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE INCOME TAXES                                           |   |   | (897,055 | ) |   |   | (3,120,037 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| Income taxes (credit)                                                       |   |   | (202,596 | ) |   |   | (809,253 | ) |
| NET INCOME ( LOSS)                                                          |   |   | (694,459 | ) |   |   | (2,310,784 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| Net loss attributed to non-controlling interest                             |   |   | (40,519 | ) |   |   | (16,175 | ) |
| INCOME (LOSS) ATTRIBUTABLE TO THE SHAREHOLDERS OF THE COMPANY               |   |   | (653,939 | ) |   |   | (2,294,609 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME ( LOSS) :                                        |   |   |   |   |   |   |   |   |
|   Foreign currency translation adjustment                         |   |   | 220,674 |   |   |   | 37,678 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME (LOSS)                                                 |   |   | (433,266 | ) |   |   | (2,256,931 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
| Other comprehensive income attributable to non-controlling interest         |   |   | 10,508 |   |   |   | 0 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY                     |   | $ | (443,774 | ) |   |   | (2,256,931 | ) |
|                                                                        |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   |   |   |   |
| BASIC AND DILUTED EARNINGS (LOSSES) PER COMMON SHARE                        |   | $  | (0.01 | ) |   | $ | (0.05 | ) |
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING                               |   |   | 46,475,780 |   |   |   | 43,705,662 |   |

----

|                                                                                                            |   |                       |      |   |   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------------------|-----------|--------|--------|--------|
| AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES                                                                |
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                           |
| (Unaudited)                                                                                                     |
|                                                                                                            |   | For the three months ended |      |
|                                                                                                            |   | September 30,              |      |
|                                                                                                            |   | 2010                       |      |   | 2009   |   |
|                                                                                                            |   |                       |      |   |   |   |
| OPERATING ACTIVITIES:                                                                                           |   |                       |      |   |   |   |
|  Net income (loss)                                                                                         |   | $                          | (653,939  | )      |   | $      | (2,294,609 | ) |
|   Adjustments to reconcile net loss to net cash used in operating activities:                         |   |                       |      |   |   |   |   |   |
|       Depreciation and amortization                                               |   |                       | 283,679   |   |   |   | 284,634 |   |
|       Deferred tax assets                                                         |   |                       | (202,596  | )      |   |   | (809,253 | ) |
|       Loss on desposal on assets                                                  |   |                       | -         |   |   |   | 21,416 |   |
|       Non-cash interest expense related to                                        |   |                       |      |   |   |   |   |   |
|           debentures and warrants                             |   |                       | -         |   |   |   | 44,780 |   |
|       Stock issued for services                                                   |   |                       | 142,048   |   |   |   | 202,227 |   |
|       Change in fair value of warrants and derivative liability                   |   |                       | (222,717  | )      |   |   | 2,142,159 |   |
|       Loss attributable to non-controlling interest                               |   |                       | (40,519   | )      |   |   | (16,175 | ) |
|   Changes in operating assets and liabilities:                                                        |   |                       |      |   |   |   |   |   |
|        Accounts receivable                                                   |   |                       | (509,708  | )      |   |   | (241,022 | ) |
|        Inventories                                                           |   |                       | 192,954   |   |   |   | (159,213 | ) |
|        Prepaid expenses and sundry current assets                            |   |                       | (59,890   | )      |   |   | (18,417 | ) |
|        Accounts payable                                                      |   |                       | 108,312   |   |   |   | 115,423 |   |
|        Accrued expenses, taxes and sundry current liabilities                |   |                       | (15,265   | )      |   |   | 485,074 |   |
| NET CASH USED IN OPERATING ACTIVITIES                                                                           |   |                       | (977,641  | )      |   |   | (242,976 | ) |
|                                                                                                            |   |                       |      |   |   |   |   |   |
| INVESTING ACTIVITIES:                                                                                           |   |                       |      |   |   |   |   |   |
|   Acquisition of property and equipment                                                               |   |                       | (723,945  | )      |   |   | (293,018 | ) |
|   Payments of loan to unrelated parties                                                          |   |                       | 345,597   |   |   |   | - |   |
|   Proceeds from sale of assets                                                                        |   |                       | -         |   |   |   | 950,626 |   |
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                                                             |   |                       | (378,3478 | )      |   |   | 657,608 |   |
|                                                                                                            |   |                       |      |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                                                           |   |                       |      |   |   |   |   |   |
| Proceeds from bank loan                                                                                         |   |                       | 746,480   |   |   |   |   |   |
|   Other borrowings                                                                                    |   |                       | -         |   |   |   | (210,257 | ) |
|   Repayment of loans from related party                                                          |   |                       | -         |   |   |   | (1,121 | ) |
|   Sale of common stock                                                                                |   |                       | -         |   |   |   | 5,000,000 |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                                                       |   |                       | 746,480   |   |   |   | 4,788,622 |   |
|                                                                                                            |   |                       |      |   |   |   |   |   |
| EFFECT OF EXCHANGE RATE ON CASH                                                                                 |   |                       | 74,446    |   |   |   | (57,895 | ) |
|                                                                                                            |   |                       |      |   |   |   |   |   |
| INCREASE (DECREASE) IN CASH                                                                                     |   |                       | (535,063  | )      |   |   | 5,145,359 |   |
| CASH – BEGINNING OF PERIOD                                                                                |   |                       | 3,985,710 |   |   |   | 1,271,922 |   |
| CASH – END OF PERIOD                                                                                      |   | $                          | 3,450,647 |   |   |   | 6,417,281 |   |
|                                                                                                            |   |                       |      |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                                              |   |                       |      |   |   |   |   |   |
|   Non-cash financing activities:                                                                      |   |                       |      |   |   |   |   |   |
|      Conversion of 33MM RMB AOB loan  and accrued interest into common stock |   |                       | -         |   |   |   | 4,830,847 |   |

----

----

----

----

| Estimated dividends     | None   |
|-------------------------|--------|
| Expected volatility     | 66.83% |
| Risk-free interest rate | 0.19%  |
| Expected term (years)   | 0.96   |

----

|                              |   | September 30 |      |   | June 30 |   |
|-----------------------------------|--------|--------------|-----------|--------|---------|--------|
|                              |   | 2010         |      |   | 2010    |   |
|                              |   |         |      |   |    |   |   |   |
| Shi Jia Zhuang Finance Bureau (a) |   | $            | 298,592   |   |    | $      | 293,746 |   |
| Bo Hai International Trust (b)    |   |         | 746,480   |   |    |   | 0 |   |
|                              |   | $            | 1,045,072 |   |    | $      | 293,746 |   |

|                                                                                                                                                                                                                                    |   | September 30 |      |   | June 30 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|---------|--------|
|                                                                                                                                                                                                                                    |   | 2010         |      |   | 2010    |   |
|                                                                                                                                                                                                                                    |   |         |      |   |    |   |   |   |
| Bank Note in the amount of 30 million RMB with Bank of Communications of China bearing an annual floating rate of  5.841%, set to be 10% higher than the interest rate of the China People Bank rate, maturing April 22, 2011 |   | $            | 4,478,882 |   |    | $      | 4,406,192 |   |
|  Bank Note in the amount of 25 million RMB with China Citic Bank bearing an annual floating rate of  5.841%, set to be 10% higher than the interest rate of the China People Bank rate, maturing May 4, 2011             |   | $            | 3,732,402 |   |    | $      | 3,671,827 |   |
|                                                                                                                                                                                                                                    |   | $            | 8,211,284 |   |    | $      | 8,087,019 |   |
|                                                                                                                                                                                                                                    |   |         |      |   |    |   |   |   |

|                                                                                                                            |   | September 30 |      |   | June 30 |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|---------|--------|
|                                                                                                                            |   | 2010         |      |   | 2010    |   |
|                                                                                                                            |   |         |      |   |    |   |   |   |
| Loans payable bearing interest at 10% and 20%per annum and maturing on March and September 2012                                 |   | $            | 2,258,598 |   |    | $      | 2,221,943 |   |
| Loans from unrelated third parties maturing on various dates through August 2011 and bearing interest at an average rate of 10% |   |         | 47,775    |   |    |   |   46,999 |   |
|                                                                                                                            |   | $            | 2,306,373 |   |    | $      | 2,268,942  |   |
|  Less current portion                                                                                                      |   |         | 47,775    |   |    |   | 46,999 |   |
|                                                                                                                            |   | $            | 2,258,598 |   |    | $      | 2,221,943 |   |
|                                                                                                                            |   |         |      |   |    |   |   |   |

----

|                                                                                                      |   | September 30 |          |   | June 30 |    |
|-----------------------------------------------------------------------------------------------------------|--------|--------------|---------------|--------|---------|---------|
|                                                                                                      |   | 2010         |          |   | 2010    |    |
|                                                                                                      |   |         |          |   |    |    |   |   |
| Loans maturing between March and December 31, 2012 bearing interest from 5% to 25% per annum              |   | $            | 6,433,532     |   |    | $       | 6,329,118 |   |
|  Loans maturing on various dates through August 17, 2011, bearing interest at an average rate of 10% |   |         |   96,228 |   |    |    |  94,760 |   |
|                                                                                                      |   | $            | 6,529,760     |   |    | $  | 6,423,878 |   |
|  Less current portion                                                                                |   |         | 96,228        |   |    |    | 94,760 |   |
|                                                                                                      |   | $            | 6,433,532     |   |    | $       | 6,329,118 |   |

|                                       |   | Three months ended September 30, |     |
|--------------------------------------------|--------|----------------------------------|----------|
|                                       |   | 2010                             |     |   | 2009 |   |
|                                       |   |                             |     |   |   |   |
| U.S. Statutory rate                        |   | $                                | (313,969 | ) |   | $  | (1,092,013 | ) |
| Tax rate difference between China and U.S. |   |                             | 81,038   |   |   |   | 8,088 |   |
| Operating loss, 100% valuation allowance   |   |                             | 30,335   |   |   |   | 274,672 |   |
| Effective tax rate                         |   |                             | (202,596 | ) |   |   | (809,253 | ) |
|                                       |   |                             |     |   |   |   |   |   |

|                                |   | Three months ended September 30, |     |
|-------------------------------------|--------|---------------------------------------|----------|
|                                |   |                                  | 2010     |   |   |   | 2009 |   |
| Current                             |   |                                  | -        |   |   |   | - |   |
| Deferred - United States            |   |                                  | (30,335  | ) |   |   | (274,672 | ) |
| Deferred - China                    |   |                                  | (202,596 | ) |   |   | (809,253 | ) |
| Valuation allowance - United States |   |                                  | 30,335   |   |   |   | 274,672 |   |
| Total                               |   |                                  | (202,596 | ) |   |   | (809,253 | ) |

----

----

----

----

----

----

| Contractual Obligations             |   | Total  |       |   | Less than 1 Year |   |      | 1-3 Years |   | 4-5 Years |      | After 5 Years |
|-------------------------------------|--------|--------|------------|--------|-----------------------|--------|-----------|-----------|--------|-----------|-----------|---------------|
| Loans Payable –               |   |   |       |   |                  |   |      |      |   |      |      |          |
| Banks                               |   | $      | 8,211,284  |   |                  | $      | 8,211,284 |      |   | $         | -         |          |   |   |   |
| Affiliates                          |   |   | 9,881,205  |   |                  |   | 1,189,075 |      |   |      | 8,692,130 |          |   |   |   |
|                                |   |   |       |   |                  |   |      |      |   |      |      |          |   |   |   |
|      TOTAL |   | $      | 18,092,489 |   |                  | $      | 9,400,359 |      |   | $         | 8,692,130 |          |   |   |   |

----

|       31.1 | Rule 13a-14(a) Certification – CEO |
|------------------------------------------|------------------------------------------|

|       31.2 | Rule 13a-14(a) Certification – CFO |
|------------------------------------------|------------------------------------------|
|    32 | Rule 13a-14(b) Certification  |
|-----------------|------------------------------------|

| Date: November 15, 2010 | By: /s/                                    | Zhenjiang Yue     |
|-------------------------|-------------------------------------------------|-------------------|
|                    | Zhenjiang Yue, Chief Executive Officer          |
|                    |                                            |              |
| Date: November 15, 2010 | By: /s/                                    |  Guoan Zhang |
|                    | Guoan Zhang, Chief  Financial Officer |

----